Saudi Arabia, Rick Davis, Chairman Powell discussed on Sound ON

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Was down today largely because of a spike in market interest rates We had the yield on the U.S. ten year treasury jumping by more than ten basis points to 2.84% In terms of equity market action the Dow was down by about 7 tenths of 1% The S&P weaker by a little more than 6 tenths of 1% and the NASDAQ composite weaker by about four tenths of 1% After the bell HP ink narrowed its adjusted EPS forecast for the full year shares her down about two tenths of 1% right now in the late session We also heard from Salesforce after the bell the company reported both subscription and support revenue were in line with estimates for Q one shares are up nearly 7.7% right now Stronger dollar with the Bloomberg dollar spot index picking up four tenths of 1% today given that spike in rates I'm Krishna that your Bloomberg business flash This is Bloomberg Sound on with Joe Matthew on Bloomberg radio You do start feeling like we're setting up a road warrior movie here right Forget about Top Gun for a second The gas is too expensive Let's assemble the panel now for some insights into all of this Bloomberg politics contributors Jeannie chansen and Rick Davis an essential part of the fastest hour in politics Jeannie I hope you had a great and long weekend If Daniel Jurgen is our adviser here as we map out of all of our solutions to the world's problems he is a pretty good one There's nothing if I heard correctly there's really just nothing The White House can do but watch the oil market much like the rest of us Yeah you say that last difficult question And he said you know maybe release some more oil They've already done that better coordination on a global scale And you know one thing I think it's important to note you know he said rightly so we're looking at two available sources where it really looking at the UAE and Saudi Arabia and you look at what the west has done Vis-à-vis those two countries in the last 5 plus years Biden describing you know Saudi Arabia is a pariah state There was the notion that the oil industry is dying You add Europe focusing on solar hydrogen all those kinds of things And so you really don't see much incentive for Saudi Arabia to cooperate at this point which is a big problem Now I'm not suggesting that we shouldn't have called him a pariah state for the human rights violations but you know you have a policy that makes it now in Saudi Arabia's gives them little incentive to cooperate with the west at this point And that's a huge huge problem when they are one of the two sources out there Therefore Rick Davis call it the Putin price hike and get on with it right If this is not something that we can really affect between now in November Yeah I noticed today in the meeting with chairman Powell There was very little conversation about gasoline prices Dancing around sort of the most obvious problem that American consumers are having right now I mean Americans are on the move They've spent two years sitting in COVID waiting for this moment to gas up the car and head for the road And now they no longer fear COVID but they fear is the price of gas And today the retail price according to triple-A hit its highest ever for unleaded in the last 5 or $4 and 62 cents Well I felt horrible report card for this administration That is an average $4 .619 per gallon to Rick Davis point here a record high from triple-A and we're gonna get more record highs if Daniel Daniel jurgens thesis is correct here right Jeannie So you gotta start deflecting if you're gonna handle this from a political standpoint unless you're finding new sources of energy That's right And you know they are you know as we talked about last week they're trying to meet with Saudi Arabia They're trying to take some steps but you know I thought gosh did I feel badly for Jerome Powell to a certain extent today Because you know you had the president parading him in front of everybody saying he won't interfere with the fed This guy now has the toughest job Maybe in the world because he has now been pointed at as the poster child for if you don't do this it's your fault you and Putin quite frankly But what else can the president do Because his hands are basically tied And so you know Jurgen sang prices go up There's no political win here for The White House but to try to deflect and to say that they're looking towards the people who have the power I love the president's quote today when he said he wouldn't interfere of course you're not going to interfere with the fed you have nothing that you can do at your disposal Man you're giving me heartburn here jeanie Imagine Rick being that guy you're sitting on the couch the president's saying you know I defer entirely Rick faces here when it comes to inflation The number one issue for Americans at home and you're thinking oh my God I think my mom's calling Yeah who knew there was a trapdoor in the Oval Office Powell right through it today I mean how would you like to sit there with the president I mean it's one thing for it though You know I think that the abject failure of leadership today in the Oval Office with chairman Powell on behalf of Joe Biden was not worth the price of admission I mean basically what Joe Biden told the American public is pound sand This is a guy who's unelected He reports to Congress I have no influence on chairman palette and I wouldn't want to have any influence on chairman Powell but he is the reason you're going to have so much pain in the grocery stores and at the pump at the gas station I mean don't blame me I mean like that's the biggest buck passing I thought the box stopped on the Oval Office desk Didn't get passed over to chairman's office What's he going to do though Sending out tweets like Donald Trump and say what's wrong with you Hike at interest rates at a time like this or I mean the alternative brings criticism as well right Oh look I mean if he agrees with pals strategy of tightening then he should say so Obviously giving support and effort to the chairman of the fed is always a positive thing He's not immune from being able to comment But at the end of the day the ball is in his court I mean I disagree with you Why wouldn't you get the you know head of Saudi Arabia the head of UAE in a meeting somewhere on Zoom or in person drop the pretense that somehow all these people are bad folks They do only one thing They pump gas And so if we have a gas problem we should be talking to them at some level of government It doesn't have to be Biden Well we are approaching the Saudis right And they're taking criticism for that Genie Obviously the whole Khashoggi story is going to come up again as soon as we start talking MBS Oh it absolutely will And you know I.

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