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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 Sea Channel one ninety and around the globe.

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Speaker 1: The Bloomberg Radio Plus happened. Bloomberg dot Com. This is

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Speaker 1: Bloomberg Surveillance. The morning, seven thirty on Wall Street and

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Speaker 1: Michael McKee along with Tom Keane. We had some breaking

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Speaker 1: news just a short time ago. Thermo Fisher is going

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Speaker 1: to buy Fei Corporation four point two billion dollars. The

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Speaker 1: price Thermo Fisher a hundred and seven fifty a share

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Speaker 1: in cash. FBI makes electron microscope's Thermo Fisher makes mass

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Speaker 1: spectrometry systems, and experts say that to our complementary. Google

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Speaker 1: won a Jerry verdict killing Oracle's claim to a nine

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Speaker 1: billion dollar slice of the Android phone business. Oracle had

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Speaker 1: contended Google needed a license to use its Java programming

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Speaker 1: languae to develop Android. UH jury in San Francisco rejected

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Speaker 1: that argument. Apple shares still down six tents of eight

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Speaker 1: percent in early trading this morning. Snapchat, if you don't

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Speaker 1: use it, your kids do. The app sends disappearing messages

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Speaker 1: valued at eighteen billion dollars after its latest round of funding.

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Speaker 1: According to a person familiar with the matter, the financing

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Speaker 1: pads of these startups, war Chest wants to evolve from

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Speaker 1: a teen phenomenon into a mainstream media platform. We'll see now.

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Speaker 1: Let's check out with Michael Barr and get the latest

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Speaker 1: world and national headlines. Mike, thank you very much. President

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Speaker 1: Barack Obama has paid his respects to the one people

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Speaker 1: killed when the US dropped in atomic bomb on a

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Speaker 1: rosiuma Japan and nine memory of the morning of August six.

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Speaker 1: Let's never fake. President Obama later wreath at Hiroshima Peace

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Speaker 1: Memorial Park today and met with some bombing survivors. A

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Speaker 1: French vessel has arrived in the Mediterranean to help search

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Speaker 1: for the egypt airplane that crashed last week with sixty

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Speaker 1: six people on board. Meanwhile, the chief investigator in Egypt

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Speaker 1: says search teams had picked up a signal from one

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Speaker 1: of the devices on the plane that transmits its location.

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Speaker 1: It narrows the search down to a three mile radius.

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Speaker 1: A Korean air flight at Tokyo's airport had to be

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Speaker 1: evacuated after an engine fire while on the runway. No

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Speaker 1: one was injured. The Boeing seven and seventy seven, three

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Speaker 1: eighteen people on board was heading to SEUL 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 more than a hundred fifty news bureaus around

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Speaker 1: the world. Michael Bark, Thank you, Michael, Time now for

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Speaker 1: the land Rover Parcipani Bloomberg NBC Sports update with John

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Speaker 1: Stasha x By staff carry struggled and Golden States to

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Speaker 1: lopsided losses at Oklahoma City. People wondered if he was

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Speaker 1: still injured. With the two time m v P look

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Speaker 1: fine last night, thirty one point seven rebound, six assist,

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Speaker 1: five steals, Warriors stayed alive one eleven to ut the

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Speaker 1: Thunders lead to three too as they go to ok

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Speaker 1: C for Games six tomorrow. Mike D'Antoni, former Nick coach,

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Speaker 1: hired in Houston. The Rangers got a good look at

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Speaker 1: just how well the Pittsburgh Penguins were playing back in

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Speaker 1: Round one. Penguins finished the regular season winning fourteen of sixteen.

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Speaker 1: It has carried over. They won Game seven from Tampa

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Speaker 1: Bay to one. Is Rookie Bryan Rush scored twice in

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Speaker 1: the second period. So the Stanley Cup Final Pittsburgh versus

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Speaker 1: San Jose Game one Monday, Yankees Tonight, we get a

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Speaker 1: ten game road trip at Tampa Bay. They come off

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Speaker 1: two losses that followed the sixth straight wins. They managed

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Speaker 1: just three singles off j half after a Starlin Castro

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Speaker 1: home run on the first eating The Blue Jays won

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Speaker 1: three to one. The Mets host the Dodgers tonight, and

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Speaker 1: the Dodgers are starting nineteen year old lefty Julio Urias.

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Speaker 1: He's from Mexico. He's been dominant in the minor leagues.

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Speaker 1: Metsr a game behind Washington to top St. Louis two.

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Speaker 1: The one brights Harper with an upper deck home run.

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Speaker 1: With the Bloomberg NBC Sports Update, I'm John Stamp Shallow. Well,

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Speaker 1: it is uh looking like we're going to open higher

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Speaker 1: this morning. SMP features up by two points, style features

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Speaker 1: by fifteen. Little change in Europe, though. Everybody waiting for

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Speaker 1: Janet yell and speech this afternoon or appearance. It's not

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Speaker 1: a speech, it's a discussion with Greg Mankew of Harvard.

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Speaker 1: We'll see whether it produces anything. This is Bloomberg sur ailance.

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Speaker 1: I Michael McKee along with Tom Keane, and we are

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Speaker 1: looking at dollar index that is little changed, slightly higher today.

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Speaker 1: The end comes in at one year, one eleven seventy

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Speaker 1: one pound sixty two. Tom and I watching that it's

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Speaker 1: a little weaker today. It is all about Brexit obviously

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Speaker 1: until the end of June. Time now for the BLUEMBERG

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Speaker 1: n j I T STEM Report, brought to you by

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Speaker 1: a New Jersey Institute of Technology investing more than a

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Speaker 1: hundred and ten million dollars a year and applied research

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Speaker 1: to solve problems and to improve life. Learn more at

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Speaker 1: Stories of Innovation dot m j I T dot ETU.

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Speaker 1: Here's problem, Good morning, Michael. Here's what's making news in science, technology,

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Speaker 1: engineering and math. More. Now, on that copyright infringement dispute

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Speaker 1: between Oracle and Google over the Android operating system, Oracle

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Speaker 1: says it plans to appeal Google's victory. Still, legal experts

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Speaker 1: say overturning the jury verdict will be difficult and it

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Speaker 1: may give comfort to programmers who write applications that run

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Speaker 1: across different platforms without a license. Oracle contended Google should

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Speaker 1: have licensed its use of Java programming language in its

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Speaker 1: Android system, which now runs eight percent of the world's

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Speaker 1: mobile devices. Google said it used Java to innovate rather

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Speaker 1: than merely copy code. Jurors in San Francisco Federal Court

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Speaker 1: rejected the argument of Oracle and concluded that Google did

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Speaker 1: make fair use of the code under copyright law. Microsoft

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Speaker 1: researchers and the National University of Singapore will collaborate on

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Speaker 1: data science, deep learning, artificial intelligence. According to a joint statement,

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Speaker 1: the university's new Institute of Data Sciences aimed at nurturing

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Speaker 1: scientists for Singapore or a Smart Nation initiative. Microsoft chief

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Speaker 1: shut In Adela attended the signing ceremony in Singapore, and

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Speaker 1: Microsoft and Facebook are teaming up to feed the insatiable

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Speaker 1: demand for bandwidth. The two plan to build a forty

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Speaker 1: mile undersea cable stretching from Virginia to Spain. The cable

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Speaker 1: will deliver faster online and cloud services to customers of

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Speaker 1: both companies. It's to be completed by the fall of seventeen.

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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. Bob moon Well.

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Speaker 1: He is a Pulitzer Prize winner. He's an authority on

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Speaker 1: international politics and economics. He's written best selling books, and

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Speaker 1: the only thing anybody wants to know from Daniel Jorgan

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Speaker 1: is what's it gonna cost me to fill up my

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Speaker 1: tank as I drive around the country on this Memorial Day.

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Speaker 1: He's vice chairman of I h S and he is

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Speaker 1: the maybe the world's leading energy experts. Good morning to you, Dan.

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Speaker 1: I won't ask you that question, but I will ask

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Speaker 1: you where we are with oil right now. Um, it's

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Speaker 1: easy to say does it go up, does it go down?

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Speaker 1: But really the question is is kind of uh, where

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Speaker 1: are we in the balance of supply and demand that

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Speaker 1: will influence prices going forward. It's so striking to see

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Speaker 1: how different it is from just three months ago when

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Speaker 1: oil was around twenty six dollars and now, as you know,

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Speaker 1: yesterday had touched the fifty. So I think it's a

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Speaker 1: signal of the market moving back into balance that is

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Speaker 1: accelerated in that direction by outages in Canada of course,

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Speaker 1: from the from the giant fires. And then uh, worryingly,

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Speaker 1: what's happened in Nigeria, which is production is down because

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Speaker 1: of basically because of violence and UH and the brooding

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Speaker 1: concern about what happens to Venezuela. So all that's reflected

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Speaker 1: in the price and UH as as the oil exporters

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Speaker 1: get ready to go to Vienna for their next meeting

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Speaker 1: of OPEC. Yeah, that does seems to probably have lost

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Speaker 1: some of its drama. Absolutely. I mean, you know, we

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Speaker 1: remember in February was talking about the freeze UH to

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Speaker 1: try and stabilize the price. But the market itself is stabilized,

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Speaker 1: it helped by these disruptions. So it's not clear what

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Speaker 1: what would be the topic at OPEC other than uh

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Speaker 1: kind of continuing where it is and really in the

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Speaker 1: in the third quarter, we'll see a market in balance,

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Speaker 1: and even this summer we're going to see the combined

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Speaker 1: imports of US and Chinese oil into the US into

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Speaker 1: China up over million barrels a day compared to last year. Well,

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Speaker 1: it's interesting to use the word the market has stabilized.

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Speaker 1: How stable is it? We've seen an awful lot of

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Speaker 1: volatility over the last twelve months. What does stable mean

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Speaker 1: in that context? Well, I think it means that very

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Speaker 1: unlikely to see what we saw earlier this year, which

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Speaker 1: was really the bottom. And you know, I think in

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Speaker 1: sort of February we had capitulation by many producers as

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Speaker 1: they cut their budgets by uh, the independent producers. So

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Speaker 1: I think you're quite right, it's gonna be volatile. One

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Speaker 1: thing to watch is what the main Gulf producers do

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Speaker 1: in terms of stepping up production. Uh and uh, you know,

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Speaker 1: it'll be all those demands things. So it's not going

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Speaker 1: to be you know that. I don't think it's going

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Speaker 1: to be stable. It's going to be volatile. And people

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Speaker 1: read signals going in one direction or another. But I

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Speaker 1: think what happened yesterday was fifty dollars with a signal

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Speaker 1: that that we're kind of going to be moving into

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Speaker 1: the recovery phase in terms of global oil. Well, we've

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Speaker 1: dropped back now at the moment for brand, does it

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Speaker 1: breach fifty and and how high could it go? Well,

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Speaker 1: we're we've been using sane in the second half of

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Speaker 1: the year. We think oil is in a sort of

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Speaker 1: average in a fifty ish range, maybe between fifty and

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Speaker 1: fifty five. But but around you know, in that safe neighborhood,

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Speaker 1: and we got there a little earlier because of you know,

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Speaker 1: the outages that that I described before. The real question

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Speaker 1: then becomes at what price would frackers come back into

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Speaker 1: the market and upset the balance the stability. Yeah, I

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Speaker 1: just was in Houston earlier this week and talked to

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Speaker 1: a lot of them, and you know, I think that

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Speaker 1: at fifty they start to generate more cash flow. But

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Speaker 1: I think that companies and their lenders are going to

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Speaker 1: be cautious until they really see some foundation. So there's

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Speaker 1: this notion that you know, you've got to get closer

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Speaker 1: to sixty or is one CEO told me you have

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Speaker 1: to have line of sight of sixty to really be

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Speaker 1: stepping things up and to convince people and to convince

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Speaker 1: boards or directors UH to to make any major steps forward.

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Speaker 1: Let's come back with Daniel Jrgan from I AGE as

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Speaker 1: interesting speech yesterday by the Republican nominee for a president

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Speaker 1: on energy in the future. We'll get his thoughts on

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Speaker 1: that coming up here on Bloomberg Surveillance. We're cutting down

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Speaker 1: to the opening bowl, brought you by the Jeep Grand Cherokee,

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Speaker 1: the most awarded suv ever. The Grand Cherokee continues to

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Speaker 1: raise the bar with its luxurious interior and legendary four

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Speaker 1: by four capability. Drive one at your local Jeep dealer today.

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Speaker 1: Global Business News twenty four hours a day at Bloomberg

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Speaker 1: dot Com, the Radio Plus Mobile Act and on your radio,

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Speaker 1: this is a Bloomberg business flash and I'm Karen Moscow.

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Speaker 1: Thermo Fisher Scientific will by f EI for about four

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Speaker 1: point two billion dollars gaining imaging technology for the life

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Speaker 1: sciences and materials sciences industries. Global equities are headed for

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Speaker 1: their highest close in three weeks, the dollars rising against

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Speaker 1: most peers as investors wait to see whether comments from

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Speaker 1: Federal Reserve Chair Jennet Yellen will disrupt the calm that's

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Speaker 1: settled over financial markets. We check the markets every fifteen

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Speaker 1: minutes throughout the trading day. On the Bloomberg SMP E

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Speaker 1: mini futures up one and a half points now E

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Speaker 1: mini futures up fourteen and Nasdaq E mini futures are

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Speaker 1: up seven. The Dad and Germany's up a tenth of

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Speaker 1: upper set ten. Your treasury up one thirty second, the

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Speaker 1: yield one point eight two percent. Nimax screwed oil is

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Speaker 1: down one point one per cent, or fifty four cents

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Speaker 1: to forty ninety four a barrel comax gold on a

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Speaker 1: tenth of upper center a dollar ten to twelve twenty

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Speaker 1: one sixty an ounce. The Euro at dollar eleven sixty

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Speaker 1: eight again one oh nine point six four and shares

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Speaker 1: of f EI more than thirteen percent in early trading.

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Speaker 1: And Blackstone Group, the world's biggest private equity property investor,

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Speaker 1: planning to sell hotel buildings in London, Dublin and Amsterdam

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Speaker 1: for about one point one billion dollars as according to

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Speaker 1: people with knowledge of the matter. That's a Bloomberg business flash,

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Speaker 1: Tom and Mike Karen, thanks so much Bloomberg Surveillance. This morning,

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Speaker 1: buch of my interactive Broker's Investors Marketplace, an online service

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Speaker 1: where traders, investors, and institutions can meet in collaborate, enhance

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Speaker 1: your business trading experience, and expand your business. Visit i

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Speaker 1: b k R dot com slash Services is ib k

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Speaker 1: r dot com slash Services. We are honored to have

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Speaker 1: Daniel Jurgen with us today on his quest, his prize,

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Speaker 1: his commanding heights. But many of you may not know.

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Speaker 1: The book that launched Jurgen's career was Shattered Peace. It

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Speaker 1: redefined how we studied diplomacy and particularly that between uh

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Speaker 1: United States and Russia. Dr Yurgen today was a day

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Speaker 1: of remarkable moment at Hiroshima and so much of it

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Speaker 1: to me as two nations listening to each other, which

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Speaker 1: was part of the heart of your shattered peace. From

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Speaker 1: where you sit in with your years of experience, Are

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Speaker 1: the Japanese listening to the president? Are the Japanese listening

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Speaker 1: to the United States? I think that the to Hiroshima

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Speaker 1: clearly had a very big and significant impact to the

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Speaker 1: Japanese people and uh connected, I think that the Japanese

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Speaker 1: have gotten if anything, they are more concerned recently about

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Speaker 1: the relationship with you asked, there's economic, but really the

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Speaker 1: strategic because of this kind of polarization is going on

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Speaker 1: in East Asia and the controversy over China's stance in

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Speaker 1: the South China Sea, which is the highway for two

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Speaker 1: fits and world trade interesting and of course you discussed

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Speaker 1: that at length in the Prize and the Quest in

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Speaker 1: your work decades ago on the need for hydercarbons of Japan. Mike,

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Speaker 1: maybe that discourse in the moment in Harosia brings us

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Speaker 1: back to what you observed yesterday in the Dakotas in

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Speaker 1: our president presidential campaign, well, uh, Donald Trump went to

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Speaker 1: North Dakota to give a speech on what his energy

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Speaker 1: policy would be. One of the things he suggested, is

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Speaker 1: that we just start drilling more and more. And I'm

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Speaker 1: wondering it has struck me as immediately as kind of odd,

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Speaker 1: given the fact that the economy took a big hit

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Speaker 1: from the the over uh supply that we generated, and

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Speaker 1: I wonder if if that's a good idea then uh, well, yeah,

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Speaker 1: it's as you say, the world oil market has been

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Speaker 1: transformed by what's happened United States, you know, as as

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Speaker 1: we talked before OPEC is meeting. But when you think

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Speaker 1: about it, there's now there's something we can call the

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Speaker 1: Big three of world oil and two of Martin OPEC.

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Speaker 1: One is Russia and the other is in fact the

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Speaker 1: United States. I think that Mr Trump had a an

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Speaker 1: audience that welcomed his remarks in North Dakota because of

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Speaker 1: course North Dakota was a state that boomed, had the

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Speaker 1: lowest unemployment rate from the development of the box and shale,

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Speaker 1: and I think his words fell on very welcoming ears,

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Speaker 1: just the general notion of getting production going again. But if,

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Speaker 1: of course, uh, it's going to be the global price

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Speaker 1: it's going to do that. It's not going to be

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Speaker 1: words that will do it. It will respond to, you know,

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Speaker 1: to the market. Well, he said, we should have energy independence. Um,

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Speaker 1: complete American energy independence, he said, totally independent of the

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Speaker 1: need to import energy from the oil cartel or any

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Speaker 1: nation hostile to our interest. Uh, does that work? Is

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Speaker 1: that what we want? Well? I think that. Um. First,

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Speaker 1: if you look at all energy, we're largely self sufficient.

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Speaker 1: In fact, we're oversupplied if you look at gas, So

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Speaker 1: we're really good talking about oil. And our oil imports

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Speaker 1: have gone down from about six of our total supply

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Speaker 1: to where they're gonna be up now somewhat, but you

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Speaker 1: know around so we're in a much more resilient position.

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Speaker 1: But at the end of the day, there is still

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Speaker 1: only one global oil market, and you know, the price

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Speaker 1: goes up because of outages in Nigeria, and whether we're

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Speaker 1: importing oil from Nigeria or not, we're going to be

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Speaker 1: reflected here. But energy independence has been a thing that

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Speaker 1: presidents and presidential candidates have been calling for since the

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Speaker 1: nineteen seventy three oil embarkment, what President Nixon had and Uh,

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Speaker 1: for years and years and years, it looked like we

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Speaker 1: were only going to import more oil with jail turned around,

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Speaker 1: and it certainly has made our position different. And I'll

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Speaker 1: tell you, when I travel elsewhere in the world, there

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Speaker 1: is a much greater sense that there's geopolitical consequences, that

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Speaker 1: the US is in a better position and more influential

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Speaker 1: position because of what's happened with our domestic energy. Okay,

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Speaker 1: but within that goes to Mike's original question, the nirvana

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Speaker 1: of energy independence means we don't have a relationship with

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Speaker 1: strategic and tactical partners. We want to maintain those relationships,

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Speaker 1: which means we want a bilateral agreement on energy, don't

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Speaker 1: we we want? I mean, I have to become vinced

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Speaker 1: over time that the best way to actually let these

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Speaker 1: things work is actually let the market work, and that

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Speaker 1: it was after all, the market and innovation that provided

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Speaker 1: this revolution in US energy. But it was true in

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Speaker 1: Mr Trump's remarks, and he also called for the Keystone

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Speaker 1: Pipeline to be built. And of course our major source

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Speaker 1: of imported oil is in fact Canada. So you know,

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Speaker 1: I sometimes think that this term energy independence is kind

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Speaker 1: of really a metaphor. But our position as a country

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Speaker 1: overall is a lot better than it was even six

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Speaker 1: or seven years ago in terms of energy. The Republican

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Speaker 1: candidate also suggests that through some magic of his incredible abilities,

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Speaker 1: he'll be able to bring back UH coal mining jobs

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Speaker 1: and bring back coal as a major supplier of energy.

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Speaker 1: Is that likely to happen? Well, I think cole is

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Speaker 1: down for two reasons. One is, of course it is

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Speaker 1: or two looks very hard basically impossible to build a

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Speaker 1: new cold fired plant uh and and the pressure on

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Speaker 1: existing plants is increasing. But the other issue out there

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Speaker 1: is an expensive natural gas and gas is now overtaken

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Speaker 1: coal ash as a for our electric generation. You know,

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Speaker 1: it's interesting as a country, we made a huge bad

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Speaker 1: and coal in the nineteen eighties for electric generation because

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Speaker 1: it was inexpensive and because it was domestic and it

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Speaker 1: was secure. And now that position is really eroded. So

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Speaker 1: there's gonna be growth and coal conception globally, but not

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Speaker 1: in the United States. Dan, do your economists in your

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Speaker 1: financial types at HS, do they believe the balance sheets

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Speaker 1: have been cleared? Or are we setting ourselves up for

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Speaker 1: a summer you know, and I guess end of September

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Speaker 1: thirty quarter into November further carnage on balance sheets of

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Speaker 1: oil companies. Well that's you know, it's there's a combination. Ay,

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Speaker 1: there's a carna should be. There's what the regulators decided

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Speaker 1: to do. And I think if we're looking at fifty

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Speaker 1: dollar oil, that takes a lot of the pressure off

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Speaker 1: companies that there were, you know that's thirty or forty.

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Speaker 1: I think the debt problems and that's still going to

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Speaker 1: be one of the drags in terms of, you know,

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Speaker 1: kind of turning things around. And I don't think we're

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Speaker 1: going to see any increased about kind of activity where

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Speaker 1: we were adding a million barrels a day for three

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Speaker 1: years in a row more or less. But I think,

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Speaker 1: you know, so, I still think the debt is there.

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Speaker 1: And of course, Uh, the shale industry was a big

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Speaker 1: beneficiary of very low interest rates in terms of access

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Speaker 1: access to capital. Let me quickly ask you because we

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Speaker 1: just have a minute left here. So where does that

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Speaker 1: leave the US and this whole question of energy independence

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Speaker 1: and our own supplies? Uh? Is this going to last

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Speaker 1: even with the price at a level where we're not

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Speaker 1: drill and constantly. Yeah, Well, I think that we're seeing

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Speaker 1: US production go down, um and uh the high point

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Speaker 1: was April of last year, and we'll probably be down

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Speaker 1: well over a million barrels a day before things balance out.

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Speaker 1: Maybe one point two million barrels a day. So in fact,

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Speaker 1: I think we're going to see our imports go up modestly. Uh,

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Speaker 1: you know, Americans were coming up to Moral day. Americans

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Speaker 1: are driving more than ever before. Gasoline prices are still cheap,

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Speaker 1: so demand is going up and supply domestic supplies down somewhat.

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Speaker 1: And that means in fact that we'll be importing somewhat

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Speaker 1: more oil than we were this time last year. So

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Speaker 1: energy in dependence I think should be maybe seen as

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Speaker 1: a rhetorical aspiration than reflecting the you know, the real

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Speaker 1: flows of of supply and demand. Doc, You're gonna thank

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Speaker 1: you so much, Daniel. You're with HS of course perspective

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Speaker 1: from his commanding. It's great to speak to him on

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Speaker 1: this most historic day for our Pacific policy. Features up,

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Speaker 1: two down, features of fifteen tenure yield assured a little

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Speaker 1: bit in this morning. One I would not German yields

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Speaker 1: haven't talked about in this morning, but um German two

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Speaker 1: year negative point five to three and the tenure with

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Speaker 1: a little bit of weight zero point one three percent

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Speaker 1: positive zero point moving this morning. This is Bloomberg surveillance