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Speaker 1: Broadcasting live to New York, Bloomberg to Washington, d C,

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Speaker 1: Bloomberg to Boston, Bloomberg twelve hundreds to San Francisco, Bloomberg

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Speaker 1: to the country at General one, and around the globe

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Speaker 1: the Bloomberg Radio Bust, Bloomberg dot Com. This is Bloomberk Surveillance.

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Speaker 1: Good morning. I'm Michael McKee along with Tom Keane. Where

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Speaker 1: two hours away from the opening of trading this week,

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Speaker 1: and it looks like we're going to open lower, but

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Speaker 1: we shall see. A couple of stories breaking in the

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Speaker 1: last hour follow Global Management agreeing to buy a grocery chain,

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Speaker 1: fresh Market. They're gonna pay fifty a share in cash.

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Speaker 1: It's about one point four billion dollars. And Starwood Hotels

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Speaker 1: says it got a seventy six dollar a share cash,

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Speaker 1: none binding proposal from a consortium of companies. This came

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Speaker 1: in March tenth, last week. That would be a seven

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Speaker 1: point nine percent premium. Now they had agreed to sell

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Speaker 1: to Mary Marriott is giving them a waiver to discuss

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Speaker 1: this latest offer. It expires at midnight on March seventeenth.

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Speaker 1: And speaking of hotels, over the weekend, Blackstone agreeing to

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Speaker 1: sell strategic hotels and resorts to China's a Bang insurance company.

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Speaker 1: That's a six and a half billion dollar deal. They

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Speaker 1: only bought the company about three months ago. Will continue

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Speaker 1: to follow those stories as the morning goes on, but

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Speaker 1: in the meantime, we're going to check in with Michael

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Speaker 1: Barr and get the latest World of National Headquarters headlines.

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Speaker 1: Thank you very much. Mike Turkey's air force conducted air

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Speaker 1: strikes on Kurdish rebels in northern Iraq today, hours after

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Speaker 1: a suicide car bombing and anchorriculed thirty seven people and

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Speaker 1: heightened tensions with the Kurdish rebels. Yesterday's car bombing and

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Speaker 1: anchor it took place just two hundred yards from the

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Speaker 1: office of Turkey's Prime Minister. An Amtrak train with about

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Speaker 1: a hundred twenty eight passengers and fourteen crew members derailed

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Speaker 1: in southwest Kansas, sending about twenty people to the hospital.

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Speaker 1: Amtrak says the t was traveling from Los Angeles to

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Speaker 1: Chicago early this morning when it derailed about twenty miles

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Speaker 1: west of Dodge City. Republican presidential candidates are readying their

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Speaker 1: closing arguments in Ohio, Illinois, Missouri, North Carolina, and Florida

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Speaker 1: with a trove of delegates at stake. The number of

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Speaker 1: delegates up for grabs tomorrow account for more than a

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Speaker 1: quarter of the one thousand, two hundred thirty seven necessary

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Speaker 1: for nomination. A top performance by front runner Donald Trump

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Speaker 1: can make him nearly unbeatable for the nomination. Global News

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Speaker 1: twenty four hours a day, powered by our twenty four

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Speaker 1: hundred journalists and more than a hundred fifty news bureaus

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Speaker 1: from around the world. I'm Michael Barr, Mike. Thank you, Michael.

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Speaker 1: Time now for the Bloomberg NBC Sports Update to Bay

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Speaker 1: Katina Auto Group. Bloomberg NBC Sports Update with Rob Bushkin,

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Speaker 1: heyod Morning Mike. For basketball fans, it's the best time

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Speaker 1: of the year. It's marsh Madness. Selection Sunday was kind

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Speaker 1: to a half dozen New York and New Jersey teams.

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Speaker 1: Seaton Hall, the upstart winner of the Big East Tournament,

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Speaker 1: draws perennial power Gonzaga in the six verses eleven matchup.

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Speaker 1: Fairly Dickinson rounds out the New Jersey list, while Syracuse,

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Speaker 1: Iona Buffalo, and Stony Brook represent New York. The tournament's

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Speaker 1: officially underway Tuesday, but starts in full on Thursday, as

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Speaker 1: a road to Houston goes through Brooklyn, where Barkley Center

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Speaker 1: will host opening Round games next weekend the Knicks. They

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Speaker 1: take advantage of a slow start in l A by

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Speaker 1: the Lakers to win that game eight seven. Retiring Lakers

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Speaker 1: legend Kobe Bryant says he'll miss all that is Madison

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Speaker 1: Square Garden. You know he love going to the garden. Man.

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Speaker 1: He's just theres so much history there, and you know,

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Speaker 1: I'm gonna miss that, miss the fact that you know,

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Speaker 1: they have something great. I didn't get a chance to.

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Speaker 1: It's probably say goodbye um to the top. Um. I'm

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Speaker 1: certainly going to miss going to the garden and play there.

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Speaker 1: Carmelo at six in the win, the Nets lose to

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Speaker 1: the Bucks and on the ice Rangers they fall to

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Speaker 1: Pittsburgh five three. Yankees shout out the Mets. They shut

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Speaker 1: out Miami. And that's your NBC Bloomberg Sports Update. Mike,

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Speaker 1: thank you, I've got your brackets filled out. Um. Going

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Speaker 1: to be a very interesting tournament this year. A lot

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Speaker 1: of people say no real favorite could go anyway. So uh,

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Speaker 1: maybe we'll do a surveillance bracket ahead here on Bloomberg

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Speaker 1: Radio welcome back to Bloomberg Surveillance I Michael mc key

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Speaker 1: along with Tom Keane. As I mentioned, it looks like

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Speaker 1: a down open in the United States, S and P

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Speaker 1: features off by four points to tenths of a percent

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Speaker 1: down features of down sixteen. That's a tenth of a percent.

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Speaker 1: Europe still higher, the stock six three points up three

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Speaker 1: quarters of a percent. The Bloomberg n j I T

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Speaker 1: STEM Report brought to you by a New Jersey Institute

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Speaker 1: of Technology partnering with government and industry to apply the

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Speaker 1: university's world class research assets to innovate and spur economic growth.

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Speaker 1: Learn more at n j I T dot e d

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Speaker 1: U Here's Bob Michael, thank you, and at seven thirty

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Speaker 1: five on Wall Street, Here's what's making news and science, technology,

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Speaker 1: engineering and math. Airbnb will soon give people a running

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Speaker 1: out rooms and homes to its website, a better way

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Speaker 1: to find out how the strangers showing up with their

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Speaker 1: properties are behaving. A new tool will let neighbors way

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Speaker 1: in with feedback on Airbnb properties nearby, according to the

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Speaker 1: head of Airbnb in Japan, the future will be rolled

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Speaker 1: out globally in a few weeks. Venture capital firms bet

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Speaker 1: tens of millions of dollars that startups offering affordable Valet

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Speaker 1: parking to harry urban nights would flourish in the on

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Speaker 1: demand economic pioneered by Uber Parking. Valet is working for

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Speaker 1: companies with names like lux Zerks and Valet anywhere became

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Speaker 1: a common site and the congested precincts of San Francisco, Chicago,

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Speaker 1: and New York, among other places, it turns out it's

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Speaker 1: hard to make money parking cars. Two startups quickly imploded,

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Speaker 1: three more shifting away from the on demand model and

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Speaker 1: selling their services to companies instead of consumers. And Shaun Parker,

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Speaker 1: who co founded the music sharing service Napster and returned

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Speaker 1: to online music a decade later as a backer of Spotify,

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Speaker 1: is defending music streaming. In an interview with Bloomberg Television's

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Speaker 1: Emily Chang, he suggested artists such as Taylor Swift may

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Speaker 1: not have a problem with streaming as much as their

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Speaker 1: man true so, he says, have a job of squeezing

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Speaker 1: every last dime out. I've talked to a lot of

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Speaker 1: other artists who who's managers are on a vandetta, who

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Speaker 1: love streaming and they just want their music to be

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Speaker 1: heard as widely as possible. Sean Parker speaking to Bloomberg Television,

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Speaker 1: and that is this morning's Bloomberg and j I t

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Speaker 1: Stem Report. Michael, thank you very much as long for

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Speaker 1: talking about stuff like that. We could do that. You

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Speaker 1: can go to iTunes and you can download Bloomberg Surveillance

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Speaker 1: podcasts UM and then it is the best way to

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Speaker 1: share files all. The International Energy Agency said last week

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Speaker 1: that it looked like we have a floor in for

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Speaker 1: oil prices, and oil prices were elevated for the past week,

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Speaker 1: at least until today. Now West Texas is off by

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Speaker 1: two point four percent, Brandton is down below forty dollars again,

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Speaker 1: down one point nine percent on the day. Paul Sanky

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Speaker 1: is a senior oil and gas analyst at Wolf Research.

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Speaker 1: He joins US now and Paul, everything seemed to be

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Speaker 1: moving in the direction the i A was suggesting, till

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Speaker 1: I Ran came out and said we're going to ramp

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Speaker 1: up our oil sales over the weekend. Um, is this

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Speaker 1: a one day story? As people digest what they say,

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Speaker 1: are they actually going to be able to produce more?

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Speaker 1: And we go back to where we were of supply

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Speaker 1: growing faster than demand, Well, we don't really know, to

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Speaker 1: be honest with you. Good morning. By the way, UM,

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Speaker 1: it's tough with Iran. The level of true understanding of

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Speaker 1: what's going on there is very limited. I've been looking

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Speaker 1: at it in some detail and actually the National Oil

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Speaker 1: Company's website was last updated in so even speaking to

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Speaker 1: major companies such as x On and asking them about

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Speaker 1: what they thought Iran could export, there's a very high

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Speaker 1: degree of uncertainty. And the main problem here is is

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Speaker 1: that we're in the US turnaround season and we can't

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Speaker 1: take any more barrels. So this idea that Iran is

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Speaker 1: something more on into the market is enough just to

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Speaker 1: push us down again today. As you said, let's push

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Speaker 1: us down to in terms of Brant thirty nine sixty three.

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Speaker 1: Is gonna push us further than that? Are we're gonna

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Speaker 1: go back and threaten the lows that we had seen?

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Speaker 1: Or is this about where we go while people try

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Speaker 1: to figure out what happens next. I think we always

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Speaker 1: thought that first half of this year would be the low.

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Speaker 1: The problem is we're in March, so you know, I

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Speaker 1: think there's still risk in April, possibly less than May,

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Speaker 1: and striving season starts. We're not convinced that we've for

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Speaker 1: sure seen the bottom. But you know, we've rallied pretty

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Speaker 1: well off the extreme lows that we saw earlier this year,

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Speaker 1: and I think it's fair to say, if you're a

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Speaker 1: long term investor, we've seen we're putting in the lows

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Speaker 1: for aud I think that's reasonable. Well, there's a concomitive

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Speaker 1: question to that is what could be the highs? Where

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Speaker 1: could we go from here? Well, I view all as

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Speaker 1: a boom and bust business, So my view is that

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Speaker 1: over time will actually run out of available supply growth

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Speaker 1: given the scale of spending cuts that we've seen here,

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Speaker 1: and given the issues that the major government companies are facing.

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Speaker 1: And my view of where demand destruction is is actually

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Speaker 1: back towards eighty or a hundred dollars of barrel. I've

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Speaker 1: come off the hundred a bit recently because things have

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Speaker 1: been so weak, but demand destruction for me is back

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Speaker 1: up towards you know, over three fifty a gallon at

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Speaker 1: the US pump, and I think you'll get there over

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Speaker 1: the next three years. Really that would be a shock

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Speaker 1: to drivers. Does it happen a couple of cents at

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Speaker 1: a time, or do we see a spike somewhere. No,

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Speaker 1: I think it happens a couple of cents at the time.

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Speaker 1: There's a major overhang in terms of inventory. Um, you know,

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Speaker 1: I think we're going to grind our way back there,

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Speaker 1: and it it really feels like there's so much available oil,

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Speaker 1: as I say, particularly in inventory right now, that we're

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Speaker 1: not going to suddenly spike back up. It could jump

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Speaker 1: with an OPEC cut, which would obviously be a bit

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Speaker 1: of a surprise to the market, especially given the Iranian

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Speaker 1: news and the fact that the Iranians really don't get

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Speaker 1: on a tour with the Saudis. So I think the

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Speaker 1: risk of a of a of a jump is more

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Speaker 1: related to OPEC cuts than a than the cycle working

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Speaker 1: and demand beginning to exceed supply in the way that

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Speaker 1: it will this year. Well, that's just very quickly in

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Speaker 1: thirty seconds, if you could. Um, when you say demand destruction,

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Speaker 1: how much do we got out? Well, the issue is

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Speaker 1: that we're so aggressively cutting capital expendisher globally for all supply,

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Speaker 1: and then we have, unlike any other commodity of commodity

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Speaker 1: and oil that declines and supply naturally. The key question

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Speaker 1: for us that whether whether how bearished we wanted to

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Speaker 1: be with oil was has demands reacted to low prices?

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Speaker 1: Has demand got stronger because the price is low. The

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Speaker 1: day that doesn't happen, that's the end of the oil age.

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Speaker 1: But in fact, in this cycle, last year and this

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Speaker 1: year again, especially looking at US gasoline demand, there has

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Speaker 1: been an aggressive demand response and knowing that the supply

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Speaker 1: side naturally corrects itself and will aggressively increase its correction

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Speaker 1: as spending cuts roll through. We're convinced that you're going

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Speaker 1: back to high prices over the next three years. Well,

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Speaker 1: let's come back with Paul Sanky, senior oil and gas

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Speaker 1: analysted Well Research. Looking at prices right now, gasoline retails

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Speaker 1: for one a gallon. That's up from one seventy one

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Speaker 1: about a week or so ago, but still far from

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Speaker 1: the three dollars he's talking about. Bloomberg Surveillance is Up

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