WEBVTT - Oil Sparks Inflation Concerns; iPhone Ban?

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<v Speaker 1>Good morning.

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<v Speaker 2>I'm Nathan Hager and I'm Karen Moscow. Here are the

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<v Speaker 2>stories we're following today.

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<v Speaker 1>Oil's trading near its highest level since last November, but

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<v Speaker 1>right now ninem Ex scrud's giving back some It's trading

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<v Speaker 1>at eighty five dollars ninety nine cents a barrel. That's

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<v Speaker 1>a decline of eight tenths of one percent. The global

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<v Speaker 1>oil market is tightening, though, after OPEC plus leaders Saudi

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<v Speaker 1>Arabia and Russia announced their extending supply curves through the end.

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<v Speaker 3>Of this year.

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<v Speaker 1>Bloomberg Oil reporter Julia Fanzeri says the surprise extension will

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<v Speaker 1>tighten the market.

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<v Speaker 4>Traders are really surprised, not by necessarily the quantity, but

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<v Speaker 4>the fact that it has been extended until December. So

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<v Speaker 4>they expected that Saudi Arabia was going to extend their

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<v Speaker 4>production cuts one million barrels a day, but till December.

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<v Speaker 4>That's really going to tighten the market to the end

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<v Speaker 4>of twenty twenty three, and that's what really caught traders

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<v Speaker 4>by surprise and what sent markets soaring to above ninety

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<v Speaker 4>one dollars a barrel for Brent at one point.

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<v Speaker 1>And Bloomberg's Julia Fanzeri says oil surge is stoking a

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<v Speaker 1>fresh wave of infletion fears around the globe.

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<v Speaker 2>Well Nathan, stocks in Europe are fallen a bit. Disappointing

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<v Speaker 2>economic news this morning out of Germany, and we get

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<v Speaker 2>the latest from Bloomberg's You and Potts You in Good morning, Good.

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<v Speaker 5>Morning, Karon Nathan. Factory orders in Germany plummeted in July,

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<v Speaker 5>assigned that Europe's biggest economy continue to struggle into the

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<v Speaker 5>third quarter. Demand dropped by eleven point seven percent from

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<v Speaker 5>the previous month, far worse than the drop expected by economists.

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<v Speaker 5>Despite the data, ECB Governing Council member Klaus Cannot says

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<v Speaker 5>investors betting against the Euro Area ratich next week are

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<v Speaker 5>maybe underestimating the chances. He tells Bloomberg the meeting will

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<v Speaker 5>be a close call live in London. I'm your pots

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<v Speaker 5>Bloomberg Radio.

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<v Speaker 1>Okay you and thank you. Over in Asia, the yen

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<v Speaker 1>is trading You're a ten month low this morning. Dollar

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<v Speaker 1>strength prompt to Japan's top currency official to say he

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<v Speaker 1>would not rule out any options if currency moves continue.

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<v Speaker 1>The Chinese Central Bank also moved to defend the yuan

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<v Speaker 1>with another record strongest daily fixing.

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<v Speaker 2>Meanwhile, Nathan Chinese property stocks are trading at a one

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<v Speaker 2>month high. Investors are betting there will be more policy

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<v Speaker 2>support for the sh struggling sector. China's housing crisis has

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<v Speaker 2>produced a record wave of defaults. Authorities have recently rolled

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<v Speaker 2>out a bunch of new measures to support the industry.

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<v Speaker 1>Staying in China, Careen, there's word this morning the government

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<v Speaker 1>in Beijing is barring staff from using Apple's iPhones at work.

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<v Speaker 1>Let's get the story from Bloomberg' John Tucker, John.

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<v Speaker 6>The Well Street journalist. As staff add some central government regulators'

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<v Speaker 6>offices received instructions via chat groups and in meetings to

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<v Speaker 6>stop bringing iPhones and other foreign branded devices into the office.

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<v Speaker 6>China is Apple's biggest international market in iPhones, who among

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<v Speaker 6>the country's bestsellers and are common in both the government

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<v Speaker 6>and private sector. Foreign devices have long been discouraged the

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<v Speaker 6>insensitive agencies. Beijing in recent years stepped up a campaign

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<v Speaker 6>to reduce a reliance on technology from the US, and

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<v Speaker 6>twenty twenty two, Beijing ordered central government agencies and state

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<v Speaker 6>back corporations to replace foreign branded personal computers with domestic

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<v Speaker 6>alternatives within two years. In New yorkom John Tucker.

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<v Speaker 2>Radio, all right, John, thanks, Another high tech company is

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<v Speaker 2>in the spotlight this morning. Bloomberg News has learned Amazon

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<v Speaker 2>will likely be sued by the Federal Trade Commission later

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<v Speaker 2>this month, and we get this story from Bloomberg's Jeff Bellinger.

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<v Speaker 3>It caps a four year anti trust investigation into Amazon.

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<v Speaker 3>Sources say the suit is expected to target the online

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<v Speaker 3>retail giant's popular marketplace. That's where third party merchants, which

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<v Speaker 3>now account for more than half of the company's online sales,

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<v Speaker 3>pay a commission on each sale. Merchants have complained that

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<v Speaker 3>Amazon unfairly ties access to its marketplace with its logistics service.

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<v Speaker 3>Sources say company executives met with the FTC's three commissioners

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<v Speaker 3>in mid August to discuss the suit, though no settlement

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<v Speaker 3>was discussed. This will be the fourth complaint the agency

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<v Speaker 3>has filed this year targeting Amazon. The Biden administration, which

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<v Speaker 3>has focused on anti trust and competition as a keystone

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<v Speaker 3>of its economic policy, is stepping up pressure on big

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<v Speaker 3>tech companies. Jeff Bellinger, Bloomberg Radio.

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<v Speaker 1>Thanks, Jeff. In politics, Senate Minority Leader Mitch McConnell's back

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<v Speaker 1>at work in Bloomberg's Ed Baxster reports he did address

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<v Speaker 1>the attention his health has received.

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<v Speaker 7>Senator McConnell says he wants to put things in perspective.

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<v Speaker 8>One particular moment of my time Backholme has received its

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<v Speaker 8>fair share of attention in the press over the past week,

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<v Speaker 8>but I assure you August was a busy and productive

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<v Speaker 8>month for me and my staff back in the Commonwealth.

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<v Speaker 7>It should be noted the Congressional doctor again has said

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<v Speaker 7>that he shows no signs of stroke or Parkinson's and

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<v Speaker 7>that those moments are common in some concussion cases. McConnell

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<v Speaker 7>also said job one now deserving his full focus as

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<v Speaker 7>keeping the government open and as he puts it, the

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<v Speaker 7>lights on. I'm Ed Baxter, Bloomberg Radio.

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<v Speaker 2>All right and thanks well. It's the toughest punishment yet

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<v Speaker 2>over the attack at the US Capitol. Former Prown Boys

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<v Speaker 2>leader Henry Henriguer Tarrio has been sentenced to twenty two

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<v Speaker 2>years in prison for his role and a seditious conspiracy

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<v Speaker 2>to block the peaceful transfer of power. On January sixth,

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<v Speaker 2>twenty twenty one. Tario's lawyer Naive Hassan says he plans

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<v Speaker 2>to appeal.

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<v Speaker 9>We asked for a recommendation that's not greater than fifteen years.

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<v Speaker 9>We saw sentences that were handed down last week, and

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<v Speaker 9>that's what we thought was appropriate based upon the guidelines.

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<v Speaker 2>Until now, the longest sentence for a January sixth conspirator

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<v Speaker 2>was eighteen years. Prosecutors had been seeking thirty three years

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<v Speaker 2>behind bars for Tario all Ry, Nathan, thanks time now

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<v Speaker 2>for a look at some of the other stories making

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<v Speaker 2>news around the world. For that, we're joined by Bloomberg's

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<v Speaker 2>Amy Morris. Saymy, good morning, Good morning, Karen.

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<v Speaker 10>America's top diplomat, Anthony Blincoln, has arrived in Kief and

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<v Speaker 10>a show of US support. The surprise visit by the

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<v Speaker 10>Secretary of State comes as Ukraine's forces continue a grinding

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<v Speaker 10>counter offensive against entrenched Russian positions. Bloomberg's wrong Ross Matheson

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<v Speaker 10>says the Biden administration is sending a clear signal to

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<v Speaker 10>the world.

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<v Speaker 11>Point of Lincoln's trip to Kiev is just sort of

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<v Speaker 11>a public display of support for Ukraine, perhaps sending a

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<v Speaker 11>message just as much to Ukraine's other allies as to

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<v Speaker 11>Ukraine itself. There's been that sort of sense of creeping fatigue.

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<v Speaker 10>Bloomberg's Ross Mathis and says it is likely that Anthony

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<v Speaker 10>Blncoln will also use that trip to announce further aid

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<v Speaker 10>for Ukraine. US security assistance to that country now totals

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<v Speaker 10>more than forty three billion dollars since Russia's invasion early

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<v Speaker 10>last year. President Biden is celebrating a labor deal for

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<v Speaker 10>port workers at the White House today. He intends to

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<v Speaker 10>use the event to underscore his economic agenda, known as

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<v Speaker 10>Biden Onmics. Ohio Republican Senator jd Vance is making a

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<v Speaker 10>push to ban federal mask mandates.

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<v Speaker 12>This is coming back unless we stop it from happening.

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<v Speaker 12>That's why I introduced this legislation, and I'm going to

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<v Speaker 12>force the Democrats to vote on it. If they say

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<v Speaker 12>that mask mandates are not coming back, then come to

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<v Speaker 12>the Senate floor vote with us and say no more

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<v Speaker 12>mask mandates.

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<v Speaker 3>Let's make it bipartisan.

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<v Speaker 10>He's calling it the Freedom to Breathe Act. It would

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<v Speaker 10>also prevent industries from refusing service to people who choose

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<v Speaker 10>not to wear a face covering. Health experts are warning

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<v Speaker 10>about the triple threat of respiratory diseases picking up early

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<v Speaker 10>as we head into colder months. Doctor Larisa Pisney is

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<v Speaker 10>an infectious disease physician with you see health.

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<v Speaker 13>What we saw in the southern hemisphere, so their winter

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<v Speaker 13>is our summer. We saw that COVID peaked and then

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<v Speaker 13>flu and RSK followed, so important to think about all

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<v Speaker 13>of these now.

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<v Speaker 8>Fcture.

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<v Speaker 10>Pisney notes that respiratory disease tracking indicates a typical start

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<v Speaker 10>of cold month viruses are going to pick up four

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<v Speaker 10>to six weeks earlier. New research shows that a highly

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<v Speaker 10>mutated strain of the coronavirus is actually less of a

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<v Speaker 10>threat that previously feared. The Boston Globe reports about Israel's

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<v Speaker 10>study found the immune response is robust against all variants,

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<v Speaker 10>including this new one called BA two to eighty six

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<v Speaker 10>if you've contracted COVID since December of twenty two. New

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<v Speaker 10>boosters are set to be release east mid September. Global

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<v Speaker 10>News twenty four hours a day, powered by more than

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<v Speaker 10>twenty seven hundred journalists and analysts in more than one

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<v Speaker 10>hundred twenty countries. I'm Amy Morrison. This is Bloomberg.

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<v Speaker 6>Karen.

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<v Speaker 2>All right, Amy, thank you. It is time now for

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<v Speaker 2>the Bloomberg Sports updates. Laker's John Stashauer, John.

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<v Speaker 14>Karen Terry Francona is sixty four years old. He's been

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<v Speaker 14>a big league manager for twenty three seasons, and he

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<v Speaker 14>went on MLB Radio and certainly implied that he's going

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<v Speaker 14>to retire after the season. He's managed the Phillies to

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<v Speaker 14>the Red Sox to two World Championships into the past

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<v Speaker 14>eleven seasons he's been in Cleveland. He says he has

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<v Speaker 14>told the Guardians to start preparing. Cleveland lost at home

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<v Speaker 14>to Minnesota eight to three. That puts the Twins up

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<v Speaker 14>by seven games in the Al Central. The Red Sox

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<v Speaker 14>at Tampa Bay, they scored in the eleventh inning. They

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<v Speaker 14>were up by one in the bottom of the eleventh,

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<v Speaker 14>Swinging a try be for the redfield corner.

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<v Speaker 10>Gone, the Rays.

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<v Speaker 3>Has plugged it off w Dae with the calls.

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<v Speaker 14>The Rays win eight to six. The Orioles also with

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<v Speaker 14>an extra inning win in Tendings over the Angels five

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<v Speaker 14>to four, fourth straight win for Baltimore. They're up by

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<v Speaker 14>three and a half on Tampa Bay Giants loss of

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<v Speaker 14>the Cubs at Wrigley eleven to eight. Toronto won seven

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<v Speaker 14>to one at Oakland behind the former Oakland A pitcher

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<v Speaker 14>Chris basst Yankees a five to one win over Detroit

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<v Speaker 14>John Fellows Stanton snapping a time at the two run

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<v Speaker 14>home of the sixth and eighth first Stanton career home

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<v Speaker 14>run number four hundred US opened last night. The young

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<v Speaker 14>American Ben Shelton with a four set victory over fellow

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<v Speaker 14>American Francis Tiafo. He's off for the semifinals where he'll

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<v Speaker 14>play Novak Djokovic. Coco Goff won her match easily. John

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<v Speaker 14>Stashawa Bloomberg Sports.

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<v Speaker 3>From coast to coast, from New York to San Francisco,

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<v Speaker 3>Boston to Washington, d C.

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<v Speaker 6>Nationwide on Syrias X, the Bloomberg Business app and Bloomberg

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<v Speaker 6>dot Com.

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<v Speaker 3>This is Bloomberg Daybreak.

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<v Speaker 6>Good morning.

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<v Speaker 1>I'm Nathan Hager. The tight global energy market could get

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<v Speaker 1>even more squeezed for the rest of this year. Crude

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<v Speaker 1>oil is trading near its highest level since last November.

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<v Speaker 1>That's after Saudi Arabia and Russia both announced that they're

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<v Speaker 1>extending production cuts that have been in effect for much

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<v Speaker 1>of this year for another three months for more. Were

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<v Speaker 1>joined by Will Kennedy, Senior Executive editor for Energy and

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<v Speaker 1>Commodities at Bloomberg News. Will Good Morning, The duration of

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<v Speaker 1>this announcement on Saudi and Russian supply cuts really seems

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<v Speaker 1>to have taken the market by a bit of surprise.

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<v Speaker 6>Here.

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<v Speaker 1>Why extend those cuts into December rather than just another

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<v Speaker 1>month as many analysts were expecting.

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<v Speaker 15>Well, I think it shows Saudi Arabia's desire to keep

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<v Speaker 15>a strong grip on the oil market and to make

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<v Speaker 15>sure that prices stay relatively high. Clearly, they want to

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<v Speaker 15>make sure that the impacts of bebbage factors in the market,

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<v Speaker 15>the steady flow of crude from Iran more than offset

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<v Speaker 15>by the cuts that they in Russia are making together.

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<v Speaker 15>And it shows a willingness to really grip the oil market.

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<v Speaker 15>And I think importantly it also shows that in an

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<v Speaker 15>oil context, the alliance between read and Moscow remains strong.

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<v Speaker 1>Certainly seems that way when you see the scope of

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<v Speaker 1>apparent coordination on these announcements. Do we have a sense

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<v Speaker 1>from some of the analysts that you're speaking to about

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<v Speaker 1>what kind of price target Saudi Arabia and Russia may

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<v Speaker 1>be looking for with these prolonged production cuts.

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<v Speaker 15>I mean, Saudi Arabia will always tell you that they

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<v Speaker 15>don't make a point of targeting prices, but I think

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<v Speaker 15>if you look at the Saudi economy and the spending

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<v Speaker 15>that Saudi Arabia needs to finance, they probably need a

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<v Speaker 15>price that's closer to one hundred dollars than seventy. They're

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<v Speaker 15>probably comfortable to see oil back in the nineties, and

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<v Speaker 15>I think from their perspective, they feel that the world

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<v Speaker 15>has gone through an inflationary period where prices for most

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<v Speaker 15>things of ribs, and yet oil owe eighty to ninety

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<v Speaker 15>dollars seems high in a historical context, it's not that high.

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<v Speaker 15>I mean, in the wake of the financial crisis, more

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<v Speaker 15>than ten years ago, oil had an extended period above

0:12:10.160 --> 0:12:13.240
<v Speaker 15>one hundred dollars a barrel. So they think a ninety

0:12:13.320 --> 0:12:15.600
<v Speaker 15>day price today is not the same as a ninety

0:12:15.640 --> 0:12:16.520
<v Speaker 15>day price in the past.

0:12:16.880 --> 0:12:20.199
<v Speaker 1>You mentioned Saudi Arabia trying to keep more of a

0:12:20.280 --> 0:12:23.400
<v Speaker 1>grip on the oil market, away from some of the

0:12:23.440 --> 0:12:27.480
<v Speaker 1>supply that could be coming back from Iran. What further

0:12:27.760 --> 0:12:32.440
<v Speaker 1>rebalancing of the oil market could we see from an

0:12:32.480 --> 0:12:36.920
<v Speaker 1>extended production cut like this from the Sadis and the Russians.

0:12:37.120 --> 0:12:38.800
<v Speaker 15>Well, I think a lot of people expect the dev

0:12:38.800 --> 0:12:42.120
<v Speaker 15>aren't that many extra sources supply. I mean there have been.

0:12:42.760 --> 0:12:45.520
<v Speaker 15>The market has been relatively well supplied and been able

0:12:45.600 --> 0:12:47.839
<v Speaker 15>to meet the strong extra demand we've seen as the

0:12:47.920 --> 0:12:50.560
<v Speaker 15>whole world has fighly emerged from the pandemic. A lot

0:12:50.600 --> 0:12:53.200
<v Speaker 15>of that supplies come from Ivana. As I say, Venezuela

0:12:53.240 --> 0:12:56.360
<v Speaker 15>has managed to export more, Brazil has added a lot

0:12:56.400 --> 0:12:59.240
<v Speaker 15>of production, and US has continued to climb. But I

0:12:59.320 --> 0:13:02.040
<v Speaker 15>think most of those sources aren't going to go much

0:13:02.120 --> 0:13:05.120
<v Speaker 15>further in the short term, at least that the expectation

0:13:05.240 --> 0:13:07.920
<v Speaker 15>is that Ivan doesn't have an awful much more oil

0:13:08.040 --> 0:13:13.160
<v Speaker 15>to give that Brazil's production grateful Veacha hiatus, for example,

0:13:13.880 --> 0:13:16.240
<v Speaker 15>And in that context, I think that's why many observers

0:13:16.280 --> 0:13:18.800
<v Speaker 15>of the market think that prices could well go high

0:13:18.800 --> 0:13:23.720
<v Speaker 15>of them here, because Saudi Arabia is keeping those production

0:13:23.840 --> 0:13:27.920
<v Speaker 15>cuts in place. Demand, despite concerns about the Chinese economy,

0:13:28.200 --> 0:13:31.280
<v Speaker 15>seems fairly robust, and some of those extra sources to

0:13:31.320 --> 0:13:33.599
<v Speaker 15>supply aren't going to be sustained. And I think for

0:13:33.760 --> 0:13:35.520
<v Speaker 15>many people in the market, I mean time will tell,

0:13:35.559 --> 0:13:37.360
<v Speaker 15>but for many people in the market that could be

0:13:37.440 --> 0:13:38.840
<v Speaker 15>quite a bullish brew, and.

0:13:38.880 --> 0:13:42.040
<v Speaker 1>I guess time will tell as well how much further

0:13:42.600 --> 0:13:48.079
<v Speaker 1>price pressure this could put on a global economy that's

0:13:48.120 --> 0:13:51.720
<v Speaker 1>still struggling to deal with reining in inflation. I mean,

0:13:51.760 --> 0:13:54.079
<v Speaker 1>a move like this is going to make central bankers'

0:13:54.120 --> 0:13:56.200
<v Speaker 1>lives even that much more difficult, isn't that.

0:13:56.400 --> 0:13:58.600
<v Speaker 15>It definitely feeds in And of course the thing about

0:13:58.800 --> 0:14:02.040
<v Speaker 15>oil is it feeds fake quickly through to gasoline prices,

0:14:02.080 --> 0:14:05.000
<v Speaker 15>which is a price that everyone knows and sees quickly,

0:14:05.559 --> 0:14:09.240
<v Speaker 15>and it makes people feel poorer, even if you know

0:14:09.320 --> 0:14:11.640
<v Speaker 15>the general price level isn't vising quite as high. So

0:14:11.760 --> 0:14:14.240
<v Speaker 15>it's a political issue as well as well. We know

0:14:14.400 --> 0:14:17.160
<v Speaker 15>if oil price is at the pump or gasoline prices

0:14:17.160 --> 0:14:19.760
<v Speaker 15>at the pump start climbing for consumers around the world.

0:14:20.320 --> 0:14:23.000
<v Speaker 1>Our last minute here will Is there any way to

0:14:23.200 --> 0:14:26.680
<v Speaker 1>game out what we should expect after December when the

0:14:27.080 --> 0:14:30.240
<v Speaker 1>next potential decision comes down the line from Saudi Arabia,

0:14:30.320 --> 0:14:33.000
<v Speaker 1>Russia and potentially other members of our PEC class And.

0:14:33.040 --> 0:14:36.240
<v Speaker 15>Look, I think it's hard to say other you know,

0:14:36.880 --> 0:14:42.080
<v Speaker 15>everyone is meeting their current commitments. I think that they

0:14:42.160 --> 0:14:45.080
<v Speaker 15>will look at the market, They will look at how demand,

0:14:45.360 --> 0:14:47.560
<v Speaker 15>how strong demand has been in the final quarter of

0:14:47.640 --> 0:14:49.920
<v Speaker 15>the year. You know, they will want to assess where

0:14:49.960 --> 0:14:54.280
<v Speaker 15>the Chinese economy is how bad those property wobbles have spread,

0:14:55.000 --> 0:14:57.960
<v Speaker 15>and they'll think about what to do next. But I

0:14:58.080 --> 0:14:59.960
<v Speaker 15>suspect it's too early to say. I'm afraid.

0:15:01.760 --> 0:15:04.800
<v Speaker 1>This is Bloomberg Daybreak Today, your morning brief on the

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