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Speaker 1: Global business news twenty four hours a day. If Bloomberg

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Speaker 1: dot Com, the radio, plus mobile labs 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: This updates brought to you buy cbo E VIX options

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Speaker 1: and futures. See disclosures and learn more at cbo e

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Speaker 1: dot com. Slash Powerful Outcomes VIX Global Equity is extending

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Speaker 1: the climbs as a sliding oil price wags on industry

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Speaker 1: groups from banks to commodity producers, and drags down emerging markets.

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Speaker 1: We check the markets every fifteen minutes throughout the trading day.

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Speaker 1: On Bloomberg SNP EMNY futures down eighteen points, Dow EMNI

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Speaker 1: futures down a hundred fifty nine, NAS documenty futures down

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Speaker 1: fifty five The acts in Germany's down two and a

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Speaker 1: half percent, ten Your treasury up eight thirty seconds, The

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Speaker 1: yield one point six nine percent yield on the two

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Speaker 1: year points seven two percent. NIMEX scrude oil down three

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Speaker 1: and a half percent, or a dollar twelve to thirty

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Speaker 1: dollars seventy five cents of barrel comex gold up one

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Speaker 1: point two per cent or fourteen dollars ten cents at

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Speaker 1: twelve thirty six, the Euro at all our oh nine

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Speaker 1: six six, the N one eleven point eight zero lows.

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Speaker 1: Posting fourth quarter sales that beat analysts estimates, following larger

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Speaker 1: rival home depot and taking advantage of a year's long

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Speaker 1: real estate rally that's spurring consumers to spend on their homes.

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Speaker 1: Chesapeake Energy saying it intends to pay a half billion

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Speaker 1: dollar dead that's coming due in three weeks after exceeding

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Speaker 1: its first quarter target for asset sales. It shares are

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Speaker 1: down four percent this morning, and that's a Bloomberg business flash.

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Speaker 1: Tom and Mike Karen moscow Well the news of the morning. Jackluke,

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Speaker 1: the Treasury Secretary, tellinggard David Weston there is not a

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Speaker 1: crisis out there that the G twenty needs to respond to.

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Speaker 1: We were talking with dianahl Leva just a moment ago

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Speaker 1: from Lombard Street. She agrees there's not an economic crisis.

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Speaker 1: US doing better than most people think, Europe doing better

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Speaker 1: than most people think. Is there a political crisis, a

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Speaker 1: geopolitical crisis out there and there's Core is the founder

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Speaker 1: of Court and a Lytics, and he joins US now

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Speaker 1: to follow up again on the Secretary's remarks. And there's

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Speaker 1: a lot going on. We've got a face off between Iran,

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Speaker 1: Saudi Arabia, the US, Europe, Russia in Syria. Uh, and

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Speaker 1: you've got issues in Ukraine popping up again. A lot

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Speaker 1: of questions about whether or not there is a geo

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Speaker 1: political threat to the global economy. What do you think, Well,

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Speaker 1: there's certainly UM some concern there. Uh. The extent to

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Speaker 1: which it hits the economy as another is another issue.

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Speaker 1: But the UM I mean right now, the US and

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Speaker 1: Russia are under negotiations about Syria and um exactly what

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Speaker 1: the ground reality is going to be there. Remarkably, negotiations

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Speaker 1: are getting down to the point of how much territory

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Speaker 1: is news RUG gonna hold, how much territories isis going

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Speaker 1: to hold? In The question really is UM what you

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Speaker 1: will these entities, these terrorist entities actually listen to whatever

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Speaker 1: the US and Russia say. My I would say doubtful.

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Speaker 1: And there's I am really enlightened to know how you

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Speaker 1: link oil dynamics and the global oil opec non opec

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Speaker 1: us industry into your international relations. How's it fit in

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Speaker 1: right now? Well, the U S and Saudi Arabia are

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Speaker 1: very close allies on this, and UM, some of the

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Speaker 1: speculation that I've heard is that somehow Saudi Arabia's decision

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Speaker 1: to keep pumping oil and even increase pumping oil over

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Speaker 1: the last year or so is in parts to punish Russia. Now, uh,

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Speaker 1: total speculation. I haven't really seen evidence on that, but

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Speaker 1: I think it's an interesting, uh interesting theory. Well, where

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Speaker 1: where does that end up? At this point, we've got

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Speaker 1: more I understand they're starting to turn away oil at Cushing,

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Speaker 1: some grades of oil and it just don't have a

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Speaker 1: storage left. So how does this play out? So Arabia

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Speaker 1: has said that they're willing to go down to twenty

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Speaker 1: barrel uh in order to let the market work. UM.

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Speaker 1: Their point is that, uh, you know, they can produce

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Speaker 1: at very very low levels. The U S. Shale producers

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Speaker 1: cannot produce, cannot produce at those low levels, and so

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Speaker 1: they rightfully have market share at their old at their

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Speaker 1: old market share levels. UM. So they're looking to squeeze

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Speaker 1: out um the U S shale producers. I ran once

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Speaker 1: the game market share, So there's a market share battle

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Speaker 1: going on right now, and that's why we see oil

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Speaker 1: keep dropping. And there's within international relations, the migrant issue

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Speaker 1: and the refugee issue is front and center across all

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Speaker 1: of Europe. Can you fold that into the present market dynamics?

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Speaker 1: I mean, I I don't buy the idea it's all Brexit,

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Speaker 1: all Brexit that just are all Super Tuesday for that matter.

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Speaker 1: But how does the crushing scale of the migrant refugee

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Speaker 1: debate fold into if it does euro economics? Well, the

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Speaker 1: I mean the refugees. UM. Some people argue that the

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Speaker 1: refugees can produce, can yield more labor um in Europe UM.

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Speaker 1: But Europe is already awashing in labor. I mean there's

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Speaker 1: a lot, there's you know, there's a lot of the

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Speaker 1: southern European countries that have very high unemployment rates. And

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Speaker 1: so when you have all these refugees flooding in UM

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Speaker 1: from war torn countries, UM, it's really a destabilizing factor.

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Speaker 1: It's leading to a lot of disagreement among the EU countries. UM.

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Speaker 1: People are questioning Schengen, which is the freedom of movement

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Speaker 1: between uh, you know, of of people between the countries

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Speaker 1: of the EU. UH it's playing into the Brexit or

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Speaker 1: British Exit uh movement in Britain. It's very it's very disaggregating,

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Speaker 1: very disistabilizing. And I think Putin, who you know, is

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Speaker 1: in part responsible for the refugee exodus out of Syria

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Speaker 1: because he supports I mean, his own planes are bombing

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Speaker 1: villages there, and he's supporting Assads planes bombing villages and

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Speaker 1: that's what's creating this exodus. So in part, you know

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Speaker 1: this he it's playing into his desire to destabilize Europe

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Speaker 1: and maybe punish Europe for what it's doing. Mike, and

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Speaker 1: I mean, Mike, we've got a little bit of strength

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Speaker 1: in the tape. It's been a really ugly two hours

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Speaker 1: and there's a little bit of a bid to the tape.

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Speaker 1: But you do you wonder, Mike, the international relations overlay

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Speaker 1: goes on in Europe trying to find marginal growth. I

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Speaker 1: would think migratin refugees could almost be growth stimulating. Well,

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Speaker 1: we're not there yet, as Andrews, there's some there's a

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Speaker 1: little bit of a fallacy in that. Actually, the concern

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Speaker 1: some people have Andrews is that by the summertime, when

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Speaker 1: the migrant christ crush is expected to be in full

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Speaker 1: swing because the weather is good enough for them to

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Speaker 1: really try to get across the Mediterranean. That we're going

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Speaker 1: to see maybe even Greece back in a Grexit mode.

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Speaker 1: I think it's possible. I mean Greece has Greece has

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Speaker 1: threatened to scupper the deal, uh, any kind of British

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Speaker 1: deal UM in terms of keeping Britain happy in the

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Speaker 1: in the EU UM and you know the SEISA, which

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Speaker 1: is the British the very left wing British UM party

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Speaker 1: that's now in power, has been friendly with Putin in

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Speaker 1: the past. We remember, uh, you know a while ago

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Speaker 1: when the Prime Minister Cyprus was visit and Putin is

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Speaker 1: threatening to take money from Putin instead of UH deal

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Speaker 1: with the Troy, C, I, M S and the others.

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Speaker 1: So it's it's you know, the reason is not a

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Speaker 1: friendly party for the EU. What about the US presidential

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Speaker 1: election we have I don't even want to characterize Undres.

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Speaker 1: There's like five degrees from fancy schools and we're gonna

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Speaker 1: sink into the morass of the US. We're not going

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Speaker 1: to sink. We're going to try to stay away from

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Speaker 1: the morass. But you have candidates running around talking about

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Speaker 1: how terrible things are in this country with no plan

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Speaker 1: to do anything about it except to make people angry.

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Speaker 1: How much of a threat is that to global order? Well,

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Speaker 1: I mean I think that internationally people really despise Trump,

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Speaker 1: and so he's on the front and center on the

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Speaker 1: TV all the time, and uh, it's we're really not

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Speaker 1: showing our best side, uh to world public opinion when

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Speaker 1: we when when he says things that are anti immigrant

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Speaker 1: or um, you know, close to racist. So it's a

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Speaker 1: it's um, you know, it's not it's not our best side,

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Speaker 1: but it is a democracy and that's that's. Uh, that's

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Speaker 1: a plus. At least, does it have knock on effects

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Speaker 1: to policy, to the world order that we're going to

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Speaker 1: have to deal with? What? What what sort of knock

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Speaker 1: on effects you thinking about? Well, I'm I'm just wondering,

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Speaker 1: if you know, if it limits our ability to gain

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Speaker 1: international cooperation on some of these key issues we're talking about.

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Speaker 1: I think so, I mean, it's definitely it's a it's

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Speaker 1: it kind of um, you know, people look at us

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Speaker 1: in wonder. I thank I think there's a big question,

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Speaker 1: you know, how how will the next president respond to Russia.

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Speaker 1: How will the next president respond to China? Um, everyone's

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Speaker 1: looking at how these presidents are they tough on Russia?

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Speaker 1: Likely to be tough on Russia or not. Bernie Sanders

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Speaker 1: is very very soft on Russia and China. Um, you know,

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Speaker 1: I think Hillary Clinton will be similar on Russia and

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Speaker 1: China to what Obama did. Maybe she'll have a bit

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Speaker 1: of more of a chip on her shoulder and she'll

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Speaker 1: have to prove herself a bit more so she might

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Speaker 1: be marginally tougher. Um. You know. Trump will be tough

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Speaker 1: on China and soft on Russia. And he said he

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Speaker 1: he loves he likes Putin on his course, thank you

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Speaker 1: so much, on his core with Corey Analytics, Mike, that

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Speaker 1: was interesting. I mean an international relations take on our

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Speaker 1: domestic politics and particularly what we're seeing in the markets

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Speaker 1: this morning. Let me go granular with you right now

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Speaker 1: and have surveillance correction. Thank you, Bob sin Um. The

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Speaker 1: interday low and not a record low. The record low

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Speaker 1: was like a year ago or low. We almost went

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Speaker 1: down to zero in the German tenure. But we hit

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Speaker 1: a recent low on the German tenure early this morning.

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Speaker 1: Just for half a cup of coffee, right now, a

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Speaker 1: little bit of a rebound point one four seven percent

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Speaker 1: on a German tenure, and you can take that across

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Speaker 1: really everything out there. A little bit of a sire

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Speaker 1: relief Future's negative eighteen up to negative sixteen. Another hour

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Speaker 1: of Bloomberg surveillance