WEBVTT - Iran Says Hormuz Talks Underway, Stocks Rise as Oil Plunge

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, Radio News.

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<v Speaker 2>Good morning, I'm Karen Moscow and I'm John Tucker.

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<v Speaker 3>Here are these stories we're following today.

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<v Speaker 4>John, we begin with new developments in the Middle East.

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<v Speaker 4>President Trump says talk to the Ron will begin this

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<v Speaker 4>afternoon after he called off a planned attack on Iran.

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<v Speaker 4>The President says he stepped back from the latest attacks

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<v Speaker 4>following appeals from Saudi Arabia and other US allies in

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<v Speaker 4>the region. And here's what he told reporters yesterday on

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<v Speaker 4>BOARDI Air Force One.

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<v Speaker 5>We're talking to them in the form of a negotiation.

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<v Speaker 5>It begins tomorrow afternoon, and we'll see you. But sure,

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<v Speaker 5>I'd love to do that, save a lot of lives,

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<v Speaker 5>save a lot of a lot of unnecessary power, to

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<v Speaker 5>be honest with you, or take many many years to

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<v Speaker 5>have a build it back if it good. But I

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<v Speaker 5>don't think it would be even build a boat back.

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<v Speaker 5>So we had a we had an attack that would

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<v Speaker 5>be the biggest attack since World War Two.

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<v Speaker 4>And President Trump suggested a deal on reopening the straight

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<v Speaker 4>up horror moves may be close. We get more from

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<v Speaker 4>Bloomberg opinion columnist Mark Champion.

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<v Speaker 6>He needs a deal, but he needs a deal that

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<v Speaker 6>looks like a win for him, and that's going to

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<v Speaker 6>be hard because at the moment, all that's being discussed

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<v Speaker 6>is the status of the Strait of Hormuz, which was

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<v Speaker 6>opened before the war and is only an issue now

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<v Speaker 6>as a result of the war. It's not exactly a

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<v Speaker 6>victory if you end up with an outcome where none

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<v Speaker 6>of the things that you said you were going to

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<v Speaker 6>the war have been dealt with, such as the nuclear program,

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<v Speaker 6>but you have got a deal to reopen the Strait

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<v Speaker 6>of Hormuz that gives Iran control that it didn't have

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<v Speaker 6>before the war.

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<v Speaker 4>And Bloomberg opinion columnist Mark Champion this morning, an Iranian

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<v Speaker 4>Foreign Ministry spokesman says Aroun currently has no negotiations with

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<v Speaker 4>the US.

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<v Speaker 3>And Karen in Washington, the acting Attorney General Todd Blanch

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<v Speaker 3>says he is formally rescinding an order creating an anti

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<v Speaker 3>weaponization fund. Let's get to tales from Bloomberg's Monica Ricks.

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<v Speaker 2>Acting Attorney General Todd Blinch has issued a formal announcement

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<v Speaker 2>scrapping an anti weaponization fund that could have paid one

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<v Speaker 2>point eight billion dollars to President Trump's allies, including January

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<v Speaker 2>sixth rioters, and he further clarified the scope of the

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<v Speaker 2>president sweeping immunity deal with the IRS. That move could

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<v Speaker 2>now potentially clear the way for his confirmation as Attorney General.

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<v Speaker 2>A Senate Judiciary vote's been rescheduled for tomorrow after Blanche

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<v Speaker 2>reached an agreement with Senator John Cornyan, who'd been a holdout,

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<v Speaker 2>insisting Blanche get rid of that fund permanently. Monica Ricks

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<v Speaker 2>Bloomberg Radio.

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<v Speaker 4>Right, Monica, thank you, Abile Key. Senators have unveiled a

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<v Speaker 4>short term a spending bill to avoid a government shot

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<v Speaker 4>down during the middle of campaign season. The bill would

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<v Speaker 4>keep federal agencies funded past the midterm elections through December eleventh.

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<v Speaker 4>The Senate is likely to vote on the measure before

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<v Speaker 4>leaving Washington at the end of the week for its

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<v Speaker 4>traditional August recess. By extending government funding now, lomickers can

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<v Speaker 4>use the ensuing months to work out their differences on

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<v Speaker 4>funding for the full year.

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<v Speaker 3>Let's turn to the markets, where futures are higher as

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<v Speaker 3>we begin a new trading month. This year's favorites the

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<v Speaker 3>chip stocks, coming off a pretty rough July. The Philadelphia

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<v Speaker 3>Stock Exchange a semiconductor index, the socks plunge twenty one

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<v Speaker 3>percent that was its worst month in eighteen years, and

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<v Speaker 3>today in South Korea, the Cosby Index that's a bell

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<v Speaker 3>weather for AI investments, fill more than five percent after

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<v Speaker 3>surging a record eighteen percent on Friday, John the.

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<v Speaker 4>US is rushed to the aid of Japan to help

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<v Speaker 4>prop up their ailing currency, its first joint action intervention

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<v Speaker 4>on the en in fifteen years, and Treasury Secretary Scott

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<v Speaker 4>Bessen posted on x both the US and Japan will

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<v Speaker 4>not hesitate to intervene again. Japan's Finance Minister, Santsuki Kadayama

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<v Speaker 4>back that statement up when she spoke to reporters this

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<v Speaker 4>morning in Tokyo.

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<v Speaker 7>We will not hesitate to conduct further joint intervention. The

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<v Speaker 7>Japanese Ministry of Finance and the US Treasury will take

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<v Speaker 7>decisive actions if any disorderly movements are detected, and those

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<v Speaker 7>actions will be implemented. I am telling you that we

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<v Speaker 7>are prepared to take actions at all times.

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<v Speaker 4>And Japan's Finance minister, speaking through an interpreter. The rare

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<v Speaker 4>coordinated intervention comes as the yen has been hovering around

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<v Speaker 4>multi decade lows. Following the intervention, the yen is strengthening.

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<v Speaker 4>It's up three tenths of up percent this morning against

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<v Speaker 4>the dollar at one fifty six point ninety six.

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<v Speaker 3>And on the economic Friday in the US, investors they're

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<v Speaker 3>going to be looking ahead to Friday. That's when we

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<v Speaker 3>get the jobs report for the month of July. And

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<v Speaker 3>let's get a preview now from Bloomberg's Michael McKee.

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<v Speaker 8>Investors bets on a rate increase next month, hang on

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<v Speaker 8>a strong enough economy to absorb an increase in the

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<v Speaker 8>cost of borrowing. The Fed's first measure of that is

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<v Speaker 8>the July jobs report out Friday. The labor market scorecard

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<v Speaker 8>is likely to be acceptable. Most economists haven't formalized their

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<v Speaker 8>forecasts yet, and the employment readings in this week's ISM,

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<v Speaker 8>manufacturing and services reports and Wednesday's ADP survey may lead

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<v Speaker 8>some to make adjustments going into the week. However, the

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<v Speaker 8>consensus is for little change in hiring, something just short

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<v Speaker 8>of one hundred thousand or so. Unemployment is expected to

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<v Speaker 8>be unchanged at four point two percent. Those kinds of

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<v Speaker 8>numbers would reassure the Central Bank, not guaranteeing a rate move,

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<v Speaker 8>but making one possible. Michael McKee, Bloomberg Radio All.

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<v Speaker 4>Right, Michael, thank you. We have word this morning of

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<v Speaker 4>a possible transatlantic mega deal in the drug making industry.

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<v Speaker 4>We get more with Bloomberg's Charlie Pellett.

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<v Speaker 9>Sources Tall Bloomberg the UK's AstraZeneca has explored an acquisition

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<v Speaker 9>of Bristol Myers Squib, which is based in New Jersey.

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<v Speaker 9>It's a potential mega deal that would create one of

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<v Speaker 9>the world's largest drug makers. Bloomberg News says the companies

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<v Speaker 9>have held early stage discussions about combining, but it's unclear

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<v Speaker 9>if those discussions are ongoing. Bristol Myers Squib has a

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<v Speaker 9>market cap of one hundred and thirty three point four

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<v Speaker 9>billion dollars. Astra Zeneca has a value of one hundred

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<v Speaker 9>and ninety five point nine billion pounds or about one

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<v Speaker 9>hundred thirty three billion dollars in New York. Charlie Pellett,

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<v Speaker 9>Bloomberg Radio, All right.

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<v Speaker 4>Charlie, thank you. And in early trading, shares of astra

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<v Speaker 4>Zeneca they're down about six percent, while Bristol's Bristol Myers

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<v Speaker 4>Squib those shares they're up eight point seven percent.

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<v Speaker 3>Yeah, let's get an update on Europe's wildfire season in Greece,

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<v Speaker 3>deadly fires west of Athens are mainly under control. This morning.

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<v Speaker 3>About five hundred firefighters tackle that place. It's burned more

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<v Speaker 3>than twenty four thousand acres. A heat wave has eased

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<v Speaker 3>in southwest France, helping firefighters to contain blazes near Bordell.

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<v Speaker 3>Fire activity is also eased in Spain, while UK firefighters

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<v Speaker 3>have been working to control a wildfire in southeastern England.

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<v Speaker 3>A meteorologists warned the weather patterns support weeks of hot,

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<v Speaker 3>dry conditions. The dangerous fire season may linger well into

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<v Speaker 3>the fall.

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<v Speaker 4>And we have a programming note here. John. Bloomberg Radio

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<v Speaker 4>is introducing a new feature exclusively for Bloomberg dot Com

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<v Speaker 4>subscribers and terminal clients. You can help shape our conversations

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<v Speaker 4>by submitting questions for our analysts and experts to answer

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<v Speaker 4>live on air. Subscribers, you can go to Bloomberg dot

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<v Speaker 4>com slash ask Radio descending questions and you may just

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<v Speaker 4>hear them asked on the air. That's Bloomberg dot Com

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<v Speaker 4>slash ask Radio.

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<v Speaker 9>All right, thanks Karen.

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<v Speaker 3>That brings us to five eight on Wall Street Time

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<v Speaker 3>for a look at some of the other stories making

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<v Speaker 3>news in New York and around the world. For that

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<v Speaker 3>we're joined by Bloomberg's Michael Barr. Good morning, John. We

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<v Speaker 3>have devastating wildfires in the US as well. In eastern Washington.

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<v Speaker 3>State authorities say wildfires force the evacuation of sixty thousand

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<v Speaker 3>people in the Spokane area, including patients at its US

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<v Speaker 3>Veterans Affairs Hospital. The fires have destroyed at least six

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<v Speaker 3>hundred homes, businesses, and other structures. US Unager Maria Catwell

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<v Speaker 3>was at the scene of one burned out neighborhood.

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<v Speaker 10>We now know that there are thousands of Washingtonians in

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<v Speaker 10>Spokane area that had to be evacuated.

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<v Speaker 7>We know there are hundreds of homes that have been destroyed.

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<v Speaker 11>The fires have burned more than eight point two square miles.

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<v Speaker 11>They've been among dozens of fires across the western US.

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<v Speaker 11>No deaths have yet been reported from the fires in

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<v Speaker 11>the Spokane area. Republican Ohio Senator Bernie Moreno called on

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<v Speaker 11>his ex son in law, Ohio Representative Max Miller to

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<v Speaker 11>resign in the US House amid allegations of physical violence

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<v Speaker 11>against Miller's former wife and daughter on social media. Miller

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<v Speaker 11>denied the allegations. Miller also says that he will remain

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<v Speaker 11>in the race and win in November.

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<v Speaker 12>Every one of these allegations traces back to a single source,

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<v Speaker 12>my former wife. I filed for divorce in August of

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<v Speaker 12>twenty twenty four. That October, she admitted under oath that

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<v Speaker 12>I had never harmed our daughter.

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<v Speaker 11>As for the allegations against Miller, President Trump said he

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<v Speaker 11>would look at it, saying so far its accusations. A

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<v Speaker 11>flight attendant strike at Canada's second largest airline could impact

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<v Speaker 11>the US. West Jet Airlines serves more than a dozen

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<v Speaker 11>US States. Bargaining Committee member Cameron Jones says they went

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<v Speaker 11>on strike Sunday following failed talks.

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<v Speaker 3>The goal is that we're expecting the federal government to

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<v Speaker 3>protect our right to strike and allow bargaining to happen

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<v Speaker 3>at the bargaining table as it's designed to do under

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<v Speaker 3>the Candid Labor Code.

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<v Speaker 11>One big stumbling block, the union says WestJet uses one

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<v Speaker 11>method to pay flight attendants when the aircraft is in motion,

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<v Speaker 11>and another to compensate for groundwork. Flight attendants argue the

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<v Speaker 11>system is unfair, saying it results in as many as

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<v Speaker 11>thirty five hours a month of unpaid work. Global News

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<v Speaker 11>twenty four hours a day, and whenever you want it

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<v Speaker 11>with Bloomberg News Now. I'm Michael Barr, and this is Bloomberg.

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<v Speaker 13>Thanks Michael.

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<v Speaker 4>Time now for our Bloomberg Sports update, and for that

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<v Speaker 4>we bring in John stash Hour.

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<v Speaker 10>Hotest even baseball has used to be. The Boston Red

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<v Speaker 10>Sox twenty three and three since July ThReD finished a

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<v Speaker 10>shocking sweep of the Dodgers in LA. The Red Sox

0:09:58.640 --> 0:10:01.600
<v Speaker 10>hit four solo home runs and one eight to four.

0:10:01.679 --> 0:10:05.880
<v Speaker 10>Baseball trade deadline six Eastern today, veteran Kevin Gossman just

0:10:05.880 --> 0:10:09.040
<v Speaker 10>got traded by Toronto to the Cubs. The Mets traded

0:10:09.080 --> 0:10:12.680
<v Speaker 10>pitcher Freddie Peralta to Tampa Bay, and the Washington Nationals

0:10:12.720 --> 0:10:16.120
<v Speaker 10>traded slugging first base from Luis Garcia Junior to the Yankees.

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<v Speaker 10>That's you Bloomberg Sports Update.

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<v Speaker 4>Stay with us more from Bloomberg day Break coming up

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<v Speaker 4>after this.

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<v Speaker 1>Coast to coast on Bloomberg Radio, nationwide on Sirius Exam,

0:10:29.840 --> 0:10:32.680
<v Speaker 1>and around the world on Bloomberg dot Com and the

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<v Speaker 1>Bloomberg Business app. This is Bloomberg Daybreak.

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<v Speaker 4>And good morning. I'm Karen Moscow. Alongside John Tucker and

0:10:39.800 --> 0:10:43.200
<v Speaker 4>President Trump said knew Iran talks should begin this afternoon

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<v Speaker 4>this after he called off a planned attack on Iran,

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<v Speaker 4>partially in response to police from US allies in the

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<v Speaker 4>Middle East, including Saudi Arabia.

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<v Speaker 5>We entered a fact that would be the biggest attack

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<v Speaker 5>since World.

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<v Speaker 4>War Two, and Trump suggested a deal on reopening the

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<v Speaker 4>straight of horror moves may be closed. Meanwhile, at a

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<v Speaker 4>foreign minister spokesman said Iran is currently not negotiating with

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<v Speaker 4>the US. And for more on all this, we're joined

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<v Speaker 4>by Patrick Sykes, Bloomberg News Middle East Breaking News Editor Patrick.

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<v Speaker 4>Good morning, Patrick, get us up to date on the

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<v Speaker 4>latest here.

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<v Speaker 13>Please, Yeah, the latest.

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<v Speaker 14>Just an hour or so ago, we had the Iranian

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<v Speaker 14>Foreign Ministry spokesman pushing back on that statement from Trump.

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<v Speaker 14>Iran is basically trying to distinguish between two sets of talks.

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<v Speaker 14>It's saying, we are indeed speaking with the Omanis about

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<v Speaker 14>the Strait of Foremus and what safe passage might look

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<v Speaker 14>like in future, but we are not currently negotiating, you know,

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<v Speaker 14>with the US.

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<v Speaker 13>In the kind of format that we saw to end

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<v Speaker 13>the war.

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<v Speaker 14>That being said, I think the fact that there is

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<v Speaker 14>clearly some diplomatic momentum in that O'mani track is a

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<v Speaker 14>positive and it could be that that is what sort

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<v Speaker 14>of unlocks the much thornia the bigger macro dialogue between

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<v Speaker 14>Tehran and Washington, because, as we know, since the cease

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<v Speaker 14>far unraveled, it's really been the status of that waterway safety,

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<v Speaker 14>what navigation, what governance will look like after the war.

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<v Speaker 14>That's been the sticking point the whole way through. So

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<v Speaker 14>if Iran and Arman are able to reach some kind

0:12:19.280 --> 0:12:22.200
<v Speaker 14>of bilateral understanding on that, the hope is that that

0:12:22.240 --> 0:12:25.280
<v Speaker 14>will then ease things up for the bigger talks with

0:12:25.360 --> 0:12:25.800
<v Speaker 14>the US.

0:12:26.280 --> 0:12:29.840
<v Speaker 4>And there's different reports on what directions they might be

0:12:29.960 --> 0:12:33.079
<v Speaker 4>going on when it comes to these talks about the

0:12:33.080 --> 0:12:35.360
<v Speaker 4>Strait of Horror moves. So is there any idea of

0:12:35.920 --> 0:12:38.600
<v Speaker 4>which idea is coming out as the one that might

0:12:38.679 --> 0:12:39.480
<v Speaker 4>get an agreement.

0:12:41.120 --> 0:12:45.480
<v Speaker 14>It sounds oddly like something like the data's quote before

0:12:45.520 --> 0:12:50.200
<v Speaker 14>the war in terms of navigation, I not using I

0:12:50.400 --> 0:12:54.240
<v Speaker 14>using a sort of middle route between the Omani and

0:12:54.400 --> 0:12:56.120
<v Speaker 14>the Iranian coasts.

0:12:56.160 --> 0:12:57.400
<v Speaker 13>That was the case before the war.

0:12:57.440 --> 0:13:00.280
<v Speaker 14>Obviously, since the war we had Iran insisting that ships

0:13:00.320 --> 0:13:02.960
<v Speaker 14>go close to its sure through a northern route and

0:13:03.120 --> 0:13:08.280
<v Speaker 14>Arman later trying to arrange a southern route. That being said,

0:13:08.320 --> 0:13:12.440
<v Speaker 14>while the ships might return to navigating something like the

0:13:12.480 --> 0:13:16.560
<v Speaker 14>same corridor that they did before, that's not to say

0:13:16.600 --> 0:13:19.880
<v Speaker 14>that the governance of those transits will be the same.

0:13:19.960 --> 0:13:22.840
<v Speaker 14>It still does look like very much that Iran is

0:13:22.840 --> 0:13:26.800
<v Speaker 14>insisting on a roll on a sort of veto power

0:13:27.280 --> 0:13:32.880
<v Speaker 14>over ships and their right of passage in the future

0:13:33.040 --> 0:13:36.760
<v Speaker 14>governance set up. So it's not to say that it'll

0:13:36.800 --> 0:13:39.720
<v Speaker 14>be free navigation as we knew it before.

0:13:39.720 --> 0:13:41.480
<v Speaker 13>February twenty eighth, And.

0:13:41.520 --> 0:13:43.800
<v Speaker 4>Just quickly, what do we know about these talks? Just

0:13:43.880 --> 0:13:46.680
<v Speaker 4>after doing that, President Trump is speaking about do we

0:13:46.720 --> 0:13:48.560
<v Speaker 4>know anything about them? And who's taking part?

0:13:49.840 --> 0:13:53.480
<v Speaker 14>No, And Iran was very keen to say this morning that, look,

0:13:53.559 --> 0:13:57.720
<v Speaker 14>the Iranian foreign minister is on a personal religious pilgrimage today.

0:13:58.120 --> 0:14:01.800
<v Speaker 14>The rest of the Iranian negotiating team remain in Iran.

0:14:02.240 --> 0:14:04.960
<v Speaker 14>So he's signaling that, you know, there's no trips planned

0:14:05.000 --> 0:14:08.520
<v Speaker 14>to Islama, Bid, to Geneva, Kata, any of those sort

0:14:08.520 --> 0:14:12.720
<v Speaker 14>of mediator locations that we've seen come up in the

0:14:12.720 --> 0:14:15.840
<v Speaker 14>course of the war. It may simply be that Trump

0:14:15.960 --> 0:14:20.160
<v Speaker 14>is referring to, you know, a phone call, a exchange

0:14:20.200 --> 0:14:24.480
<v Speaker 14>of messages of the kind that we've seen has never

0:14:24.520 --> 0:14:27.480
<v Speaker 14>really stopped, So it may just be a much lower

0:14:28.360 --> 0:14:30.560
<v Speaker 14>level kind of exchange that he's talking about.

0:14:30.800 --> 0:14:33.760
<v Speaker 4>All right, Patrick Sich, Thank you. Patrick Sikes's Bloomberg News

0:14:33.800 --> 0:14:37.120
<v Speaker 4>Middle East breaking news editor. Oil is following this morning

0:14:37.160 --> 0:14:39.800
<v Speaker 4>after President Trump said new talk to Iran would begin

0:14:39.880 --> 0:14:42.240
<v Speaker 4>today after he called off a planned attack on the

0:14:42.320 --> 0:14:46.760
<v Speaker 4>Islamic Republic. Brent this morning is down almost five percent.

0:14:47.280 --> 0:14:49.640
<v Speaker 4>Is at eighty three dollars sixty seven cents a bear.

0:14:49.680 --> 0:14:52.600
<v Speaker 4>All this after swinging through a roughly a thirty two

0:14:52.640 --> 0:14:54.960
<v Speaker 4>dollars range last month. We want to get more with

0:14:55.000 --> 0:14:59.240
<v Speaker 4>Mike mcglowan, senior commodity strategist with Bloomberg Intelligence. Mike, good morning,

0:15:00.080 --> 0:15:02.120
<v Speaker 4>Let's talk a bit about these swings. Is this just

0:15:02.160 --> 0:15:04.360
<v Speaker 4>the way things are going to be as the situation

0:15:04.480 --> 0:15:05.600
<v Speaker 4>and Iran continues.

0:15:06.280 --> 0:15:08.880
<v Speaker 15>Yes, Good morning, Karen. I think it's going to continue

0:15:08.880 --> 0:15:11.040
<v Speaker 15>to be this way. But we have to keep in

0:15:11.120 --> 0:15:14.080
<v Speaker 15>mind the number one motivation of the leader of the

0:15:14.080 --> 0:15:17.440
<v Speaker 15>world's largest energy producer and net exporter, and mister Trump

0:15:17.480 --> 0:15:20.560
<v Speaker 15>needs lower energy prices by midterms. Now, he didn't get

0:15:20.600 --> 0:15:23.960
<v Speaker 15>the unconditional surrender I think he expected within two weeks

0:15:23.960 --> 0:15:25.960
<v Speaker 15>of the start of the conflict with Iran. But now

0:15:25.960 --> 0:15:27.800
<v Speaker 15>he's doing the work around and he has to find

0:15:27.840 --> 0:15:29.960
<v Speaker 15>some way to get prices lower. So that's the ten

0:15:30.360 --> 0:15:32.360
<v Speaker 15>on a one to ten scale, which matters str energy

0:15:32.360 --> 0:15:34.440
<v Speaker 15>and you're seeing that now you mentioned Brent. I like

0:15:34.480 --> 0:15:36.560
<v Speaker 15>to focus on WTI. Right now, the price is about

0:15:36.600 --> 0:15:39.320
<v Speaker 15>seventy nine dollars a barrow. For the last twenty years,

0:15:39.680 --> 0:15:42.200
<v Speaker 15>the highest volume price, the apex of the Bell curve

0:15:42.240 --> 0:15:45.120
<v Speaker 15>a tradeing, is around seventy dollars a barrew. So despite

0:15:45.120 --> 0:15:49.080
<v Speaker 15>this pretty significant conflict, Crudel hasn't really moved much from

0:15:49.120 --> 0:15:50.880
<v Speaker 15>those levels. In fact, I think put in a high

0:15:50.880 --> 0:15:52.080
<v Speaker 15>this year. I think by the end of the year

0:15:52.080 --> 0:15:54.040
<v Speaker 15>it's going to be heading much lower. And the key

0:15:54.080 --> 0:15:56.600
<v Speaker 15>thing to make that go lower is, okay, some kind

0:15:56.600 --> 0:15:59.000
<v Speaker 15>of deton and Iran, But if the stock market has

0:15:59.040 --> 0:16:01.520
<v Speaker 15>a little bit of pickupfully, that'll be a pressure factor

0:16:01.560 --> 0:16:02.240
<v Speaker 15>for crude oil too.

0:16:02.720 --> 0:16:05.720
<v Speaker 4>Yeah, you see oil as low as forty dollars a barrel,

0:16:05.760 --> 0:16:06.280
<v Speaker 4>Is that correct?

0:16:06.280 --> 0:16:07.280
<v Speaker 13>And as that still hold?

0:16:07.680 --> 0:16:10.040
<v Speaker 15>Oh yeah, Well I started making that call twenty twenty

0:16:10.040 --> 0:16:12.320
<v Speaker 15>three on the way down after it peaked at one thirty.

0:16:12.320 --> 0:16:14.920
<v Speaker 15>This year's high was one twenty and high in two

0:16:14.920 --> 0:16:17.880
<v Speaker 15>thousand and eight was one forty seven. See that trend,

0:16:18.080 --> 0:16:20.880
<v Speaker 15>lower highs and lower lows. The lows have been forty cents.

0:16:20.960 --> 0:16:23.920
<v Speaker 15>The significance is during that whole period, most of that period,

0:16:24.000 --> 0:16:26.840
<v Speaker 15>US was a net importer. Now on a normal basis,

0:16:26.840 --> 0:16:29.400
<v Speaker 15>if prices state is high, by the end of twenty

0:16:29.480 --> 0:16:32.360
<v Speaker 15>twenty eight, the surplus them supplying demand of crude oil

0:16:32.360 --> 0:16:34.120
<v Speaker 15>and liquid fuels out of the US and Canada will

0:16:34.120 --> 0:16:36.760
<v Speaker 15>approach ten million barrels a day. By the way, that's

0:16:36.800 --> 0:16:41.240
<v Speaker 15>about what China was importing before this conflict. So there's

0:16:41.240 --> 0:16:44.480
<v Speaker 15>a major paradigm shift in the world. The Western hemisphere

0:16:44.520 --> 0:16:46.080
<v Speaker 15>with the US and the Middle is now the price

0:16:46.160 --> 0:16:49.400
<v Speaker 15>maker status In crudel, it is an oversupplied market with

0:16:49.480 --> 0:16:51.560
<v Speaker 15>a bit of an admiration at the moment in the Gulf,

0:16:51.720 --> 0:16:53.840
<v Speaker 15>and as we get to normalize a little bitle switch

0:16:53.880 --> 0:16:57.080
<v Speaker 15>back to overslid ply this oversupplied market. Keything their members

0:16:57.080 --> 0:16:59.880
<v Speaker 15>commodities always go their cost of production, and the US

0:17:00.360 --> 0:17:03.040
<v Speaker 15>the largest producer. That's around fifty five.

0:17:02.920 --> 0:17:03.640
<v Speaker 13>Dollars of barrow.

0:17:04.040 --> 0:17:06.520
<v Speaker 4>All right, and we've got less than a minute here, Diesel.

0:17:06.600 --> 0:17:08.840
<v Speaker 4>We did hear from Goldman Sax this morning warning about

0:17:08.840 --> 0:17:11.080
<v Speaker 4>a diesel crunch because of what's going on in Russia.

0:17:11.560 --> 0:17:12.560
<v Speaker 4>Are you watching diesel?

0:17:13.000 --> 0:17:13.119
<v Speaker 13>Oh?

0:17:13.160 --> 0:17:16.600
<v Speaker 15>Absolutely, well, those are different markets diesel and dispolit's gasoline.

0:17:16.680 --> 0:17:19.000
<v Speaker 15>So diesel is at five dollars and thirty six hours

0:17:19.480 --> 0:17:22.200
<v Speaker 15>five dollars and thirty six cents a gallon. Before the crisis,

0:17:22.200 --> 0:17:25.120
<v Speaker 15>it was just around three fifty and same as US

0:17:25.160 --> 0:17:28.160
<v Speaker 15>average gasoline price three hours and ten cents. Before the crisis,

0:17:28.200 --> 0:17:30.520
<v Speaker 15>it was about four hours. The thing is, now that's

0:17:30.560 --> 0:17:33.240
<v Speaker 15>cutting off the man. It's a bit of a different market.

0:17:33.400 --> 0:17:35.240
<v Speaker 15>But by the time we get the midterms, he needs

0:17:35.280 --> 0:17:37.199
<v Speaker 15>those prices lower, and I fully expect that we'll be

0:17:37.240 --> 0:17:38.920
<v Speaker 15>lower by time we get the midterms. It's just how

0:17:38.960 --> 0:17:42.880
<v Speaker 15>he figures it out. Could involve some kind of export restrictions,

0:17:43.080 --> 0:17:44.400
<v Speaker 15>but right now they're high.

0:17:45.080 --> 0:17:48.520
<v Speaker 4>This is Bloomberg Daybreak, your morning podcast on the stories

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