20 Burst results for "Alexander Novak"
AP News Radio
Russia says it will cut oil production over Western caps
"Virtues announced, it will cut oil production by 500,000 barrels per day next month after Western countries capped the price of its crude over its action in Ukraine. Russian deputy prime minister Alexander Novak says, as of today, we fully sell all our crude output, but as we stated before, we will not sell oil to those who directly or indirectly adhere to the price ceiling in connection with that. Russia will voluntarily cut production by 500,000 barrels a day. He adds, this will help restore market style relations analysts say one possible Russian response to the cap would be to slash production to try to raise oil prices, gasoline prices would be higher at the pump as less oil makes it to the global market. I'm Charles De Ledesma
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Ten year BTP is one and at 1.6 basis points higher this morning at four spot 48 and this is after we had that huge jump in the ten year borrowing cost for Italy yesterday, jumping by as much as 30 basis points at one stage, the biggest since March 2020, this is investors of an offloading Italian bonds. Following a surprise warning from moody's over at the nation's finances, there is a general sell off on bond markets today though the German ten year yield is two basis points higher two spot zero 5 as well. On the currency markets, the Euro is two tenths of 1% stronger against the dollar trading at 98 99, a little bit lower than it was earlier. We are looking ahead to get the minute results of the minutes from the ECB's last meeting later on as well. And on oil prices, Brent crude 9 tenths of 1% higher at $94 20 that's after the latest news from OPEC plus. That is your Bloomberg radio business flash. Now here's Danny with today's top stories. Thank you very much, Steven. We'll Fitch has cut the UK's outlook to negative a week after the S&P did the same thing citing Liz truss as large and unfunded fiscal package. The new government stimulus plans have quote negatively impacted financial markets confidence and the credibility of the policy framework, according to the ratings agency, separately millions more Britons will be pulled into higher income tax brackets over the next three years, costing twice as much as the government's personal tax cuts, according to the institute for fiscal studies. And OPEC plus members have agreed to cut their total output by 2 million barrels a day starting in November. That's in order to keep prices high, outdated baselines, though, mean actual supply will fall by about half that amount. It's still the biggest cut since 2020 and adds another risk to the global economy, the U.S. slammed the decision and says it will release another 10 million barrels from strategic reserves next month. And King Charles is expected to be crowned on June the third next year in the ceremony at Westminster Abbey. Bloomberg has learned that officials are converging on that date, although are still going on. The coronation almost 70 years after his mother was crowned, will form the centerpiece of days of celebration to mark the beginning of the monarch's reign. Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries. I'm Danny Berger. This is Bloomberg, Stephen. Danny, thank you. The leaders of 44 countries gathering in Prague today for an extraordinary summit in the shadows of the war in Ukraine for European Union leaders the focus still firmly on energy. This is Russia said capping the price of its oil exports will backfire and lead to a temporary cut in output. Deputy prime minister Alexander Novak spoke to Bloomberg television in an exclusive interview. Take a listen. As
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Let's get a check on the markets for you. The stark 600 up half of 1% is where just over an hour into the trading session here, the FTSE 100 struggling for direction up by a tenth of 1%, the cake around up by two thirds, the 14 may have been initially now turning negative down by two tenths of 1%, looking ahead towards Wall Street, futures, again struggling for direction just below the flat line in the SAP emits for the moment NASA features to end by a tenth of 1%. This as we are seeing the Euro trading at 99 12, the penetrating at one 13, 30 as the Bloomberg dollar spot index is two tenths of 1% weaker, and we are seeing somewhat of a sell off returning to the bond markets this morning as well, Danny. Let's get to some of our top stories this morning and starting here in the UK with the UK's credit outlook has been lowered to negative by the ratings agency Fitch. It's warning that the government's economic plan could increase the country's fiscal deficit. Bloomberg's UN pots reports. Another cut to the UK's credit outlook this time from global ratings agency Fitch. It's confirmed the UK's rating at double-A minus the fourth highest level, but it has cut its outlook from stable to negative. It warns the government's large fiscal stimulus announced without independent evaluation, has quote negatively impacted financial markets confidence and the credibility of the policy framework. The move adds some outlook cut from S&P and a warning from moody's in London, I'm you and pots Bloomberg daybreak Europe. We're staying in the UK research from the institute for fiscal studies says the benefit of the government's income tax cuts will be wiped out by millions of people being pushed into higher tax brackets. The government currently plans to maintain the freeze on thresholds where people start paying each tax rate until the 2025 26 fiscal year. That's a blow to prime minister Liz truss, who stated in her speech to the Conservative Party conference yesterday, that she wants taxpayers to keep more of the money they earn. I have three priorities for our economy. Growth, growth and growth, cutting taxes is the right thing to do morally and economically. High taxes mean you feel it's less worthwhile working that extra hour going for a better job or setting you up your own business. That's my Friends is why we are cutting taxes. That was the prime minister speaking during her first conference speech as Conservative Party leader and as she's heading to Prague this morning where she will urge European leaders to stand united against Russia's invasion of Ukraine. U.S. president Joe Biden has accused the OPEC plus group of oil producers of being, quote, short sighted after they agreed to slash output by 2 million barrels a day that starts in November. Many members of the oil cartel are already pumping far blow their official quotas, so supply will only fall by about half that amount, but it's still the biggest cut since 2020, speaking exclusively to Bloomberg's mantis cranny, Russia's deputy prime minister Alexander Novak defended the cut. Decision was taken to balance the market out by these costs by customers quarters of August and especially this is very important ahead of the winter season when we would also see the seasonal decline in demand by 2.5 to 3 million barrels. And this decision which has been made today helps the market to balance it out, I think it's a very weighted way to decision at a time to one. Russia's deputy prime minister Alexander Novak there speaking exclusively to Bloomberg through a translator. The decision to cut supply is seen as a blow to The White House with press secretary karine Jean Pierre telling reporters, quote, is clear that OPEC plus is aligning with Russia with their announcement. Federal Reserve bank of San Francisco president Mary Daly says market anticipation of interest rate cuts next year is misplaced. Here's what she told Michael McKee on Bloomberg television. Raising to a level that we believe is restrictive enough to bring inflation down. And then holding it there until we see inflation truly get close to 2%. And demonstrate that price stability is restored. San Francisco fed president also voicing concern about tipping the economy into a recession, saying last week that the fed needs to use extreme data dependence in order to navigate the narrow path of bringing inflation down while avoiding causing undue pain in the economy. Policymakers used rate, raise rates by three quarters of a percentage point at their meeting last month, the third such increase in a row. The WTO says global trade will slow next year as the world's major economies face strong headwinds from a cocktail of factors. Those include rising prices restricted energy supply and growing U.S. China tensions. The World Trade Organization forecasts at the global goods trade will grow by 1% next year. That's a huge revision from the previous estimate of 3.4%. Speaking to Bloomberg, the WTO's general director ngozi oko il yuya says that the global outlook is quite grim. And it's looking quite grim. A little more grim than we had thought. A real slowdown. And it's happening for several reasons. Of course, the higher energy prices in Europe arising from the war in European big factor in this and the squeeze on households spending. The WTO's forecast, which are in line with the IMF and OECD projections, mark a major slowdown from last year's 9.7% growth in global trade. Okay, well let's get more there on some of our top stories, millions more Britons will be dragged into higher rates of income tax over the next three years, costing twice as much as prime minister's Liz truss personal tax cuts. That's according to calculations by the institute for fiscal studies. They seem to run contrary to the prime minister's intention of cutting taxes for people at the
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Actions as we're seeing creates a price cut creates a very bad precedent and will primarily hit the ones who are actually doing it in the world school implementing it. We know and history has an accomplished number of examples of market interference, especially with the mechanism of price controls. Can only lead to a deficit of a certain good is that this mechanism is unacceptable to Russia. And if it is implemented, we are not going to supply countries which joined this mechanism. Okay, that was Russia's deputy prime minister Alexander Novak speaking to Bloomberg's Manus cranny there through a translator. Let's get more on this story from Bloomberg's Maria todayo, who's been covering the meeting in Prague for us today. Maria, the head of European commissioners of underlying is calling for a price cap as well. Where it does not have any likelihood of actually getting approved. Yeah, what an excellent interview from manage. Yesterday with the Russian energy minister Alexander Novak said his he says anything that looks like market intervention, price controls, Russia will not accept, in fact, it will respond to it by not supplying it. But the reality is come 2023 is minus pointed out. It does seem like Russia will be under further sanctions and potentially a price gap. Because when you look at the situation in Europe, there's now 17 countries out of a union of 27 countries that are openly calling for this price cap. Yesterday you had the head of the commissioners who have underlined who will be here today in Prague, singing in a letter that we have food pages that she sent it to ever had of state on the European side that she favors or will allow pitch a price cap that kind of moves away from what she says is speculation on the Dutch market, the GDP. She says it doesn't really reflect the real cost of gas and the European Union will have to transition away from this. The idea is they want prices down and they want them fast. But fundamentally, beyond the concept of a price gap, you can agree on it. And you can get to a point where you have consensus that there needs to be one. But the issue and this is the fundamental issue and this hour is that they don't have formula for it. But we talk about a price gap. What are we talking about? There's essentially 5 different options on the table. The formulation behind it. It's not clear. Is it a step on Russian gas? It's been on an important gas into the European Union. It's a separation of the gas you used to make electricity, like the Spanish or doing at the stage. Like what is this? And I've asked over the past 24 hours. Number of contacts. And they still say, that is the problem. We talk about a press cap. But we don't know what structure of it would be. Okay, so that's the complications over that issue. But there is also this very interesting political meeting happening today, including Liz trust, the launch of the new European political community, is this a sign of perhaps, you know, improving relations for those neighbors of the European and particularly the UK? Well, I think, you know, first of all, it's an interesting setup for this trial. And the timing to, of course, she's under a lot of domestic pressures. So I'm sure she's glad to be away from the UK for a few hours. But the fact that she's here does confirm that there is some intention at least to rekindle some of the ties. Remember a few weeks ago, she was asked is Eminem Mekong a friend of the UK or is he a foe? She was very confused on the answer. She didn't know which of the two would be. So today, maybe this is an opportunity to clarify things between them. There isn't informal meeting between the French and the UK delegation. Today that we know of, but it's on the cards based on what I hear. So the two could actually end up meet him bilaterally. And then I had a contact yesterday night who said, well, if she comes here in good faith and they won cooperation, the UK will find an open channel of communication with the EU, but this is not going to make the problems around the Irish project called go away. You know, this is a technical issue. And there needs to be a work in or a workable solution, whether today we get to a solution or anywhere near a solution, I think it's unlikely, but it could reset the tone of it. Okay, and it'll be fascinating to watch how that plays out, Maria today. And thank you for bringing us your reporting from Prague this morning ahead of that meeting and we will be watching for details later on as well. Okay, coming up next on Bloomberg daybreak, Europe we'll be getting back to our discussion about what's moving markets this morning. We'll be joined by Carson brasky global head of macro research and chief economist at ING Germany this on a day that we are getting more data from European
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Seeing oil futures extend Iranian after all but plastic reads to cut its output by the most in two years, earning a rebuke from the Biden administration at The White House, Bloomberg's minus grants, winds us now from Vienna. I mean, we went into this meeting with a set of expectations, but those got blown out of the park, didn't they? They did indeed. You know, the emirati tried to recast the stage before we all went into the building yesterday that this is not the politicization of OPEC, but petrol is politics. Gases, politics, and a 6% rally in oil is politics. It's also macroeconomics for the global central bankers, three days that rebuilt a rally underpinned to market, or did it set a collision course of a cataclysmic kind with the United States of America. That's what went through my mind as I drove over here this morning reflecting on both the conversations with his royal highness prince of de lez has been Salman. The Saudi oil minister, who would not be drawn, would not be drawn on the politics of this or the response to The White House in terms of Jake Sullivan and what he had to say, but I also sat down Joseph, we were busy last night with Novak Alexander Novak. The price cops are coming. Nobody's quite sure what they're going to be. The known unknowns to quote Donald rumsfeld. But this is Alexander Novak's take on caps and cuts. Indeed, there will have been two important decisions taken today. One, you have already mentioned, and that is the decision on cutting quotas by your country's presence and by our countries in the group. But the second decision which is just as important as the first one is actually the extension of the declaration of cooperation because it was scheduled to expire at the end of 22, but now it has been agreed that it will be extended to the end of 2023, which gives the market significantly more certainty and significantly more predictability. And that's why decision was taken to balance the market out by these costs by customers quarters of August and especially this is very important ahead of the winter season when we would also see the seasonal decline in demand by 2.5 to 3 million barrels. And this decision which has been made today helps the market to balance it out, I think it's a very weighted way to decision at a timely one. Let's look towards February 2023, you will have more sanctions, we assume you will potentially have a price cap, can you tell me with a surety what your production in February 2023 will be. You say 92 93% for 2023, but is that the worst case scenario by February with more sanctions and a price cap? Such actions as we're seeing creates the price capital creates a very bad precedent and will primarily hit the
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"With OPEC plus, and of course all the rhetoric about the fed, will they tighten further or ease back? How is that playing out in the Asian trading day today, Brian? Well, we're actually seeing some gains here today. It's a little counterintuitive because we had some tough talk from some of the fed officials. We'll play some of that for the audience in just a moment. We also had OPEC kind of throwing a monkey wrench into the plans of trying to cut inflation by agreeing to slash crude oil production to drive prices higher. Now they're agreed to cut 2 million barrels a day. They may not get to that, but in any case, it has led to oil gaining we were in the high 70s last week when this news first emerged and at the moment, WTI is trading at 88 20 a barrel up another half of 1%. So it's been a pretty good week for the price of crude oil. And that is even with word in a Wall Street Journal story that the Biden administration is preparing to scale down sanctions on Venezuela and its regime to allow more oil to get pumped there for Chevron to resume pumping oil. So that remains to be seen whether or not that happens whether that brings more oil back in, but anyway, back to the original point, S&P E minis had a bounce up about half of 1%, and that's fueled a little bit more of a rise here in Asia. The new case of two thirds of 1%, the cost has rallied more than 1% today. The ASX 200 is essentially flat here at the moment. Also, the dollar lower down two tenths of a percent for the Bloomberg dollar index and dollar yen is at one 44 59 the Euro up to 99.15 U.S. cents. And yields have come down a little, they yield on the ten year US Treasury down a couple of basis points to 3.73%. So at least at the moment, it's more of what we saw in the first two days of the week than what we saw on Wall Street overnight. Steve. Well, Brian, let's take a deeper dive into that energy story oil rallied for a third day after OPEC plus agreed to the largest supply cut since 2020. A 2 million barrel production cut reflects the extent to which the group is concerned about the outlook for energy demand. OPEC's move drew criticism from the U.S., which of course has been battling energy driven inflation. The White House saying it could release more oil from the strategic petroleum reserve to alleviate rising prices. Meanwhile, Russia says it may impose a temporary production cut in response to efforts by the U.S. and others to cap the price of Russian oil. We heard earlier from deputy prime minister Alexander Novak. Such
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"This is still a big day break at least our top stories this morning. Stocks extend a rally on hopes that central banks may be ready to temper tight policy, but the RB and Z says that they're going to stay hawkish, signaling more hikes to come. Elon Musk revives his Twitter takeover at the original price of winning a costly legal battle in sending share soaring. OPEC plus will consider its deepest dog food curves in about two years of today's meeting, RBC came out with a new note, and they're saying Saudi Arabia may go even further in throttle output. And don't miss our exclusive interview with the chairman and CEO of Cigna as he outlines the firm's priorities in the Middle East and plans for global expansion. Let's circle back to the markets in Asia, Juliet Sally has all those updates from our Singapore studio Jules. What's at the top of the agenda? Well, there's two main themes here today, Yusuf, what we are seeing in reaction to the Abbey ends in decision. And the rally that you are seeing in Asian equities as a whole continuing on that today again after we had that very solid lead come through from Wall Street and particularly in Hong Kong because remember that market was closed yesterday. So you can see the hang seng index on the lunch break up by 5 and a half percent its biggest jump since March and we're seeing particularly strong momentum coming through in those tech players so the HS tech index has been up by as much as 7% were also seeing sportwear stock surge in Hong Kong on reports that the Beijing marathon will return on November 6th. Remember Mainland China markets. So closed all week. Also seeing a good rally coming through in the likes of those kiwi assets that I mentioned, the K way just off the board there, but it has been up by as much as 1.3% against the greenback. And you can see that momentum in the bond market too as the Abbey and zid came through with yet another jumbo rate hike. And even flagged the fact that they were contemplating a 75 basis point hike. So a very different story to what we heard from the RBA yesterday, which came through with that smaller 25 basis point hike. The yield on the New Zealand two year note down some 18 basis points and as I mentioned, a strong rally in the kiwi OCBC saying that you should short the Aussie versus the kiwi as we see a divergence between the RBA and the Abbey and said Yusuf. Yeah, a little bit of a healthy contrast never hurt between two central banks, especially when they're quite close to each other. What about the rally in terms of some of the finer pockets within the bear cycle for Asia and EM? One of the houses coming out with a new thesis, what's behind it? Yeah. Well, we have seen this very big bear market rally in EM stocks in particular. The biggest or deepest since 1995, Morgan Stanley now calling time on this and on the bear market rally in Asia as well. They're saying that there are signs of capitulation from current levels and they have upgraded the regions to overweight from equal weight. They're particularly looking at some upgrades for Korea and Taiwan. So that plays into that tech story. We're talking about earlier, but they are remaining a little cautious on some of the other markets. So they've downgraded Indonesia and Singapore to equal weight and cut India and Malaysia to underweight. Let's have a look at their other call as well when it comes to the MSCI emerging market index. They're June target is now a thousand, which implies a 12% upside from where we saw it closed yesterday at a down by about 26% over the past 12 months. And when it comes to the regional benchmark index, excluding Japan, they've set that target at 500, which is about a 9% gain from where we are, Yusuf. Yeah, some important targets to keep in mind as we roll through this week. The tools, thank you for highlighting those that's truly a Sally there. I want to get to S&P Global because they released their September PMI data for Saudi Arabia, the index falling to 56.6 from 57.7 in August. That is the lowest reading since July 2022. It's still an enviable high PMI for sure if you take a look at what's been happening in Europe and in the United States. For a closer look at how the figures connect to inflation and growth dynamics, we're now joined by the chief economist and head of research at Emirates NBD. This relative moderation from very high levels in Saudi Arabia, arguably a positive thing in a highly inflation environment. Yeah, I mean, I think ultimately, growth in Saudi Arabia is very, very strong and will remain so in the third and the fourth quarter this year. We've got a huge economy that is in full throw. We've got strong domestic credit growth, investment in the kingdom as well. A number of mega projects on the way. And underway. So I think all of that is really putting Saudi Arabia and the rest of the GCC in a very good place to withstand a deteriorating global backdrop. I think the UAE probably a bit more vulnerable to that deteriorating external environment because it is a very open economy, a lot more services based so perhaps we'll see more of a slowdown next year than Saudi Arabia. The fed looks keen on resuming on its path of raising rates. It kind of not really giving much credence to what we got from the RB NZ and talk of an imminent fed pivot. As those rates rise and as that kind of percolates through into the gulf and into Saudi Arabia, where does that leave the Central Bank there? Is there a need for an adjustment that is slightly different from the United States or do you think it's pretty straightforward? I think they will broadly stick with what the fed does and move in line. There have been occasions where they've taken a little bit longer to get there. Perhaps waited a few weeks, but ultimately, I think they can only have a difference of about 25 basis points or so from the fed funds rate. But I think the main channel for transmission of high interest rates is really a strong U.S. dollar, which because the GCC currencies are pegged to the U.S. dollar erodes their competitiveness. And again, I think this is going to be a drag, particularly on the services sectors next year. And then with trade falling off in a global recession, that would also feed through to the region. But I think overall, given that they have very strong fiscal positions, they've rebuilt their balance sheets. They have the ability to continue to invest and spend in their domestic economies, which takes some of the pressure off the private sector to be that engine for growth going forward. We're counting down to the OPEC plus decision and I still can't get over the fact that the Russians are sending their deputy prime minister. Nobody Alexander Novak, who was, of course, one of the architects of the OPEC plus agreement to begin with. Are we hyping it up a little bit too much? Is it going to be fairly straightforward? Do you think we're in for a surprise? No, I think it's an important meeting. It's the first in person meeting they've had since the start of the pandemic in 2020. And given that we have such a high level delegation from the key OPEC countries, I think we are in for a change in policy. There is a surplus in Q four that we're projecting in the oil market around 500,000 barrels a day. So that's where we would expect them to start But we've also seen indications that they're considering up to 2 million barrels a day in cuts. Now that would be a very significant reduction in terms of oil supply to the market. And then
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Smart people down there like making haters. He's got the world and national news Nathan, what do you have for us? Yeah, watching some global developments, Paul the U.S. has slapped sanctions on Russia's Central Bank chief elvira nabiullina, and deputy prime minister Alexander Novak Ukrainian president Vladimir zelensky says he is ramping up his bid for Ukraine to join NATO all this after Russian president Vladimir Putin formally annexed four occupied regions of Ukraine. And vowed to defend them with all available means, Bloomberg's Anne Marie horde has more from Washington. What Putin is laying claim to is 15% about of land in Ukraine. That is the biggest laying claim of occupation of land. We have seen since World War II. Bloomberg's annual horde, President Biden's released a statement saying Russia's violating international law trampling on the United Nations charter and showing its contempt for peaceful nations everywhere. Hurricane Ian is accelerating as it takes aim at the Carolinas with top winds of 85 miles an hour, but the devastation in Florida from this storm is just starting to come into focus. The state's emergency management director says 21 people may have been killed just one of those fatalities is confirmed, governor Ron DeSantis says 1.9 million homes and businesses are still without power. Right now the hardest hit areas are already 99% without power as of this morning. Charlotte and Lee both have 85% without and de Soto is at 80% without. Sarasota call your manatee close to half of the customers there are without power. Long work ahead in Florida, governor desantis says the hardest hit county Lee doesn't have running water. Global news, 24 hours a day on air and on Bloomberg
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Man is what traders really want here is monetary policy action not one of the more than 20 economists polled by Bloomberg Believe we're actually going to get a rate hike tomorrow So in the absence of that the only things that really could cause a turnaround in the lira here are geopolitics potentially and some of the domestic policies the treasury minister has been going out and trying to get companies to freeze prices for consumers So as not to feed in that now 70% year on year inflation On the geopolitical front we're closely watching delegations of Swedish and finish officials in the country today They're going to meet with Ibrahim kalen he's a very important adviser to president Erdoğan Turkey's decision or its statements of not wanting to support Sweden and Finland's bids for NATO membership have weighed on assets according to economists So any progress there could be something that's potentially bullish for the lira But in the absence of that I mean maybe we're looking at foreign currency intervention by state banks but the economic picture just really negative for the lira right now So it doesn't seem like there's too much out there that really could stem this slide Yeah remarkable moves in the currency over the last 5 training sessions So let's get to the Russia Ukraine element because Russia is making moves to boost Iran trade I mean the U.S. sanctions What's happening on that front Do we have any numbers Well they want to get to $10 billion a year of trade They were at something like 3 billion last year and Iranian officials very much want to change that One thing that could potentially help them do so is deputy prime minister from rush Alexander Novak is in Tehran today according to local news And the focus at least for the Iranian side seems to be making the stem cells a conduit for trade from Russia to the Indian Ocean So you could potentially have a train line from the Caspian Sea going to the Indian Ocean that would help Russia export more goods You know the caveat to this however is that further cooperation between Russia and Iran yes they've been friends for a long time but it's not so great when you look at the European U.S. perspective and the potential for a return to the Iranian nuclear deal that would return Iranian oil to the market and probably boost the Iranian economy Also not productive for that deal some headlines coming out of Israel where the prime minister says that President Biden and the United States so then they're not going to remove the IRGC the Iranian revolutionary guard corps from a terrorist that was really the key sticking point in those discussions right now So nothing here that really indicates that there's any positive momentum for that deal but maybe some more momentum on terms of Russia Iranian trade Well let's talk a little bit about what's going on with you there on the grind It's about upward investment isn't it Their trophy asset hunting maybe The guitarist they want to invest 10 billion pounds in the UK over the next 5 years So just wonder what trophies they'll go for The other official readout of this talks about a litany of potential investment ideas everything from education to healthcare to life sciences but really what we're focused on from a market perspective is potential development around energy potential development of further LNG assets import assets in the UK Those already exist to a degree in sources tell me that talks between the UK and Qatar have been relatively productive over the past couple of months in terms of securing more LNG for the UK You know you put this in the context of all these meetings the Qatari emir and a delegation including the energy minister have had across Europe this week and not everyone can say that those discussions are going well In particular Germany we've heard those discussions are pretty difficult Germany not necessarily buying into this long-term contract idea You know I want to see if we start to see increasing competition even between European allies for what are ultimately finite supplies of country LNG That may be the story moving forward Yeah and it would have been good to know where the guitar is going to put their money in the UK Is it in real estate Is it another sectors Maybe they will shed more light on that in the coming day Simon thank you as always Center in Doha Remember that we're going to be live to Davos next to hear more from our Christine Lagarde exclusive We're also looking ahead to what's on the agenda today So I'm like cloud cover over Davos in a city without snow I mean I just associate Davos with snow so this is taking a little bit of time to get used to This is Bloomberg When will you be able to go to a meeting where nobody smells like hand sanitizer Who knows But we can give you the latest business and financial news Fragrance free Plus tease out some of what you just said Are there tools in the toolbox for the fed Does that point to the need for continued monetary support Bloomberg radio the Bloomberg business app and Bloomberg radio dot com You do realize the mark that this is having on a younger generation Bloomberg the world is listening Start your market day with Bloomberg surveillance The bond market it's a really interesting soup game Jonathan farrow and Lisa Abramovich Isn't your base case the.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Top stories Good morning Good morning Caroline Thank you Russia has threatened to cut natural gas supplies to Europe via the Nord stream one pipeline energy minister Alexander Novak warns the Kremlin has the right to take actions that mirror the penalties imposed on the Russian economy Meanwhile sources say the EU is mapping out proposals to cut Russian gas imports by almost 80% this year Here a research group is warning the war in Ukraine could lead to the sharpest fallen income for British households in 50 years The resolution foundation says it could drop by 4% in the next year and that inflation will exceed 8% this spring Nissan says the UK may see a recession in the second half if energy prices remain at current levels And the several suitors are said to be lining up to buy Chelsea The football club was put up for sale by Russian billionaire Roman Abramovich and according to ESPN New York Jets owner woody Johnson is preparing to submit a bid although it is unknown if his offer will meet Abramovich's $3 billion asking price separately a report from sportico says Sacramento Kings owner Vivek randeep is also put in the final touches on his bed Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than a 120 countries I'm Hannah George this is Bloomberg Caroline more foreign owners coming into scoop up European football We've seen this story before Yeah absolutely We have this time Americans though Yeah and there have been calls recently actually to have more sort of fan representation I mean let's see if that happens Thank you so much Hannah George with the update on Chelsea and much more now coming up next our colleagues in the U.S. are getting ready for Bloomberg daybreak Let's check in with Nathan Hagen Nathan and I noticed that U.S. pump prices have hit a record high What's ahead for you Prices we've never seen before It's interesting Caroline because as much pain as U.S. drivers are feeling right now many of them are saying if it stops the war in Ukraine they are willing to pay even more We're going to be discussing that as we continue following all the latest developments on the war in Ukraine as you all have been reporting Russia is now the world's most heavily sanctioned nation even more may be coming the U.S. Congress is close to a deal on banning Russian oil on top of this threat from Russia that could cut us close to a deal on banning Russian oil on top of this threat from Russia that could cut off all natural gas to Europe And we just got word from the United Nations and the number of refugees out of Ukraine has now topped 2 million We have a great lineup of experts to help us make sense of all the headlines that we're seeing throughout this war On this international women's day we're going to be joined by Julie Norman of university college London BMO senior economist Jennifer Lee will be with us Alicia Levine of BNY Mellon looking at the violent market reaction and brand university political scientist Wendy schiller as we look at the political implications here in this country of this ongoing war Hope you'll join me and Karen Moscow Bloomberg daybreak America is just a few minutes away Caroline Thank you so much Nathan I love the female lineup good stuff Bloomberg day break up next and if you're listening on London DAB digital radio you hear blue bag surveillance Well let's continue the conversation now and bring in Jane foley She's the head of FX strategy at rabobank Caroline for a conversation Jane foley great to have you with us this morning Lovely to be with you on radio Normally we see one another Dan the TV screen But here we are to the top story Russia is considering closing Europe off to gas This would be a dramatic escalation in terms of the weaponization of energy If Russia does this how do you think markets would react and how big a scale escalation would this be Good morning Good morning man as well I think we've seen already a hint about how the market would react I mean there have been threats of reports still of the possibility of blackouts and in countries such as Germany which have a fair amount of energy dependence on Russia really over the last couple of weeks and I think those reports would grow So the question is can Europe avoid recession Can Europe avoid recession even with prices the way they are even without an escalation of this energy supply issue So that is the question there I think if we were to have blackouts I think the question would be they probably can not avoid recession And I think this is why we've seen so many European currencies for instance are really being pummeled pummeled over the last ten days or so So this is a real concern The economic fog because of this crisis is hanging over various different regions but particularly over Europe because of the energy security issue Okay So that is the threat But I mean Russia clearly well aware of this Talk about $300 barrel oil That broadcasting that to the market is a kind of weapon in and of itself What does the ECB do about this Christine Lagarde speaks Thursday Well it's a difficult position for the ECB I think we all understand that We've had the conversations about stack floating We will continue to have the conversations about stack floating So at the possibility of higher inflation at 5% inflation perhaps in Europe for the rest of the year something like that And of course slower growth Now the GCP was already an a balancing act And of course it's even more in a precarious balance in that now So I don't think it can potentially drop the threats that it will have to restrain liquidity will have to provide some tightening in market conditions but of course it needs to balance that with caution because of the war caution because of this recessionary impact So we think what they may do is just give itself flexibility allow for this transition phrase allow the APP purchasing program to become a little bigger over the next couple of months And maybe just put off some of the bigger decisions on policy until a little bit later this year Jane the one thing which is giving some I don't know if you can even use the word floor to the Euro dollar trades this morning and on the crosses let's see if you quick price check there on Euro dollar trading at one O 8 to 86 So it's up ever so slightly And it's on this major story that the ease considering a massive joint bond sales This is for defense and energy Does that create a temporary floor and maybe even a little bit of a guardian shield for the ECB It certainly is good news for the Euro I mean it's reminiscent really of if we go back to the recovery fund at the start of the pandemic This is notion that Europe can actually pull together and have some coherence in fiscal policy I mean if we go back to the 1990s before the start of EMU and the Euro many economists are really concerned how you could have a monetary union without some degree of fiscal union and this has been a headwind all the way really for the Euro and what you would potentially create if you had bonds issued by triple-A issuer is the potential for the Euro to behave more in a safe haven way is somewhere for asset managers to go in terms of buying those bonds having a more liquid market for those bonds in terms of stress So it would be a game changer in terms of the structures behind at the Euro It certainly would structurally improve the outlook for the Euro over the medium and long term However it would not remove these threats that we've been talking about about energy reliance about stagflation except that they would still remain in the near term so it doesn't remove all of those clouds but it does improve the structure of the Euro It's difficult to get a picture of what is happening within Russia on the flip side of this But watching the ruble it's paired most of the gains that we saw this morning It's still a significant gain though today What happens if the isolation the pressure grows if there is if energy is weaponized what happens to the rural can Russia turn to China in any meaningful way I would be very cautious about looking at the price on the screen for the Russian ruble I don't think this is a realistic choice Because many traders in western banks can't trade with their Russian counterparts So what we're seeing is not a liquid market I've heard that the price that it would be offered if you were to do trades is different to the one that's been advertised on the screen That said we have had a conversation really for years at least since the sanctions on Crimea about other nations trying to pull out of the dollar's dominance of the payment system we've seen more invoicing in Russian rubles or at least attempts for that Certainly more invoicing in Chinese and remember the Europeans tried to pull away from the U.S..
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Live on the line Okay well one of the biggest I suppose fluctuations I've seen in 35 years has been in the nickel market We exploded from $80,000 to a $100,000 in 7 and a half minutes at 5 a.m. this morning in London And whipsaw backed by another 20,000 the exchange has halted trading on nickel as we speak Let's get to our commodities reporter Helen Robertson Helen This is I would say vandalism of a market over topped with fear How would you describe the nickel and commodities and market this morning Hi Yes obviously as you mentioned I mean we've seen some incredibly volatile price based I mean not just across metals but also obviously oil and natural gas And as I'm sure we're aware it's Russia's invasion of Ukraine That has been one of the driving factors that obviously we've seen absolutely unprecedented price bikes here that have left in the case of nickel they've left brokers basically struggling to pay down margin calls against on profitable positions And then obviously also on the physical side of things we've got genuine fears As I said right across sort of metals and agriculture and in the case of energy markets over shortages as well So that's heightening price volatility Yes absolutely Anybody get a spike a daily spike of 90% How does the then deal with this How do we go forwards given that trading has been suspended What do you think may happen next Well they've already sort of implemented sort of measures to try and to try and sort of assess sort of what's going on and also sort of to try and sort of contain the volatility Somewhat But the metal I mean even prior to sort of this most recent incident the metal had already been rallying on sort of tight supplies Based on supply shortages And that was even before Russia's invasion of Ukraine And that was sort of a longer term issue that was to do with supply chain Et cetera And then obviously right across obviously the commodities complex as well obviously if we look at what oil and natural gas have been doing over the past few days I mean even just this morning Europe's natural gas prices sort just 30% sort of basically at the open Because of comments that were made by Russia's deputy prime minister Alexander Novak yesterday essentially sort of implying that Russia was able to cut supplies to the continent by the first Nord stream pipeline So obviously as I said right across the commodities complex energy metals agriculture we've got sort of a lot of fear obviously driving these price moves but also on the physical side of things obviously there are some genuine shortages as well Helen thank you very much in just a couple of quick price checks Helen Robinson there on our commodity watch this morning Caroline hapke good to be back with you Brent crude traits at a $125 57 cents still up 2% nymex crewed a 121 39 up some 1.6% in the words of Muhammad back in the secretary general of OPEC The world doesn't have sufficient oil production capacity to replace Russia Herein lies the point Carolina about this parabolic move in the oil market And 30 standard deviation move in nickel no wonder the exchange took the unprecedented moment of allowing people who are short positions to avoid delivery of the metal This is staggering Caroline Yeah it is dark raying but you know this is what war does effectively Natural gas futures also in Europe has to be said they're up by 5.4% trading at 239 So we went through 200 yesterday UK natural gas prices also up another 4.7% So I mean here in the UK the idea has been that Britain's not as reliant on Russia perhaps as the rest of Europe is but we are relying on global natural gas prices so this is pretty crucial coming up next on Bloomberg daybreak Europe the Ukrainian president zelensky will be addressing British MPs later today after parliament fast tracked plans to harden Russian sanctions the economic Bill yesterday more on those stories with our Bloomberg opinion columnist Therese.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Morning and thank you Here in the UK MPs have voted in favor of a package of measures to toughen government powers and speed up sanctions against Russian tycoons The economic crime bill looks set to become law within days after it was rushed through the House of Commons The legislation sets up a register identifying the ultimate foreign owners of UK real estate preventing them from hiding behind a shell companies Now Russia has threatened to cut natural gas supplies to Europe via the Nord stream one pipeline energy minister Alexander Novak warns a Kremlin has the right to take action that mirrors the penalties and posed on the Russian economy Meanwhile sources say the EU is mapping out proposals to cut Russian gas imports by almost 80% this year The plans to be presented later today will include Tapping new gas supplies and increasing energy efficiency aims to deliver independence from Russia well before 2013 And U.S. lawmakers have agreed on the outline of four bipartisan legislation that could allow a ban on Russian oil imports with a vote as soon as tomorrow sources say The White House is considering moving ahead with the ban without the participation of its European allies The U.S. relies on Russia for about 3% of its crude imports and 8% of all petroleum products imports Global news 24 hours a day on air and on Bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries and Jan guerin's this is Bloomberg Caroline Thank you so much Leigh Anne Cohen with our top stories Well I want to discuss the impact of those energy focused ideas that you're talking about bringing Bloomberg reporter Sharon Cho Sharon good morning thanks for being with me It does look like more buyers in Asia and Europe are becoming wary of touching Russian energy in oil supplies because of course the U.S. is now mulling a ban on Russian oil imports What is the evolving situation now then Yes that's right Good morning So it is true that Russia is becoming even harder sell in Asia as well as Europe And as you said the U.S. is currently cracking down on the crude from Russia and the American lawmakers have announced the outline of a bipartisan legislation to that input of Russian soil into the U.S. So we are aware that Biden administration has been talked with this European allies about an oil embargo and the U.S. Secretary of State has said that The White House is in very active discussions with this European LA event Of course we know that the European Union government are still divided on the joint action and Germany is of course to such an abrupt mood of what moved by with such a talk of an input than in place Oil traders in Asia and Europe are really scrambling to buy alternatives to Russian oil and they're telling us that they're growing more wary of purchasing Russian crude weather Euros as well or so called and we heard over the weekend on Friday that Shell Europe's biggest oil company they did buy one of the Russian food curves but they came under really increasing group to me So it really makes it tough for buyers to go ahead with their purchases Yeah I mean that really good discount That purchase really did make headlines didn't it And Shelby were in focus on that So look elevated oil prices then it affects buyers and consumers around the world I mean we are 13 days just 13 days into this conflict But prices have sought So what's the impact Yes that's right Cruise prices have been skyrocketing And for the oil refiners we purchased those physical barrels of food The process that they made from processing the fuel has really collapsed I mean the pocket is still good but compared to the rise in food prices it's not enough So we are hearing from the market and traders that they are ruling processing run cuts So they will probably be taking purchasing less off the food particles because the price is just too high And for consumers these high prices of oil products like gasoline means that their cost of living is going to be really really sweet And we're already seeing U.S. gasoline in future reaching record high today for the inflation series are really becoming real So then what are the alternative supplies to Russian oil What's the outlet then for prices from here We just heard from Maria today that the EU is going to come up with some kind of package to wean itself of Russian oil but what are the alternatives Right so like we know Russia is a really has a key role in global and there's just and it takes up about 8% of global supply So it's really a massive amount And some of those targets are surprised can be those that we find from the U.S. or from the Middle East that the producers pumped in but countries are going to be really really high And we just have Goldman coming out to say that they really could price which is the global benchmark rising to a $135 a barrel for this year And that's up from their spot price forecast of $98 a barrel for this year And they also raised their outlook for next year also And we reported that oil traders are already studying prices going up to $200 a barrel this month So I think the high prices are here to stay for now Sharon thank you so much for being with me that is our Bloomberg reporter Sharon Cho with the energy impact of the war in Ukraine Let's also get to another of our top interviews this morning S&P Global vice chairman Daniel Jurgen says that although the Biden administration is not focused much on oil and gas it is now time So another perspective on the energy crisis he was speaking to Bloomberg at Sarah week about his oil outlook.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Do we survive this crisis There is no capacity in the world at the moment that can replace 7 million barrels of exports The House of Representatives could vote on a proposal to ban Russian imports as soon as Wednesday In response to the sanctions imposed over the invasion of Ukraine Russia is threatening to cut natural gas supplies to Europe via the Nord stream one pipeline Alexander Novak is Russia's deputy prime minister He said Russia has the right to take actions that mirror the penalties Novak said no decision has yet been made and the pipeline is currently operating at its full capacity Well China saw a record retreat by foreign investors in the bond market last month overseas investors sold 5 and a half $1 billion of Chinese government bonds in February This was the largest monthly cut ever and the first reduction since March 2021 This is raised speculation that some of the selling may have come from Russia's sanctions That's because those sanctions cut off the Russian Central Bank's access to much of its foreign reserves China recounted for 13% of those reserves as of last June Nearly two dozen major natural gas companies were attacked by hackers last month That's according to research by re security shared exclusively with Bloomberg The hackers managed to access computers that belong to current and former employees at those firms These include Chevron Cheniere Energy and Kinder Morgan Toby rice is CEO of EQT the largest natural gas producer in the United States He told us the number of cyberattacks on the company has also surged since Russia's invasion of Ukraine.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"8 30 a.m. in Hong Kong and here in Singapore I'm Juliette Sully And I'm dad krishnan at the Bloomberg interactive broker studio in New York We have a little bit of negativity in equity trading across the apac region We'll get Hong Kong and mainland Chinese markets up and running at the bottom of the coming hour so in about 60 minutes from now we'll take a closer look at what's in store as we check in on the price section with Brian Curtis will do that in a moment or two right now A few of this hour's top business stories Well Kay lawmakers have announced an outline of bipartisan legislation that would bar imports of Russian oil into the United States The White House has been talking with European allies about banning the use of Russia oil but governments must consider the economic repercussions for consumers On Monday Brent crude as sword rather as high as a $139 and the U.S. currently relies on Russia for about 3% of its crude imports Democratic senator Joe Manchin reiterated his desire for this to no longer be the case The United States of America should be ramping up and producing the energy of the world needs and we need In order to offset Putin's war that he's basically annihilating the and just the carnage is going on in Ukraine but it could spread further than that I'm just saying that we have the ability to help And we have the resources here to do it And we have the technology to do it better and cleaner any place in the world Please Let's get off the dime and start producing The House of Representatives could vote on a proposal to ban Russian imports as soon as Wednesday Meantime Russia is threatening to cut natural gas supplies to Europe of Vis-à-vis the Nord stream one pipeline This is part of a response to sanctions post earlier on Russia following the invasion of Ukraine Alexander Novak is a Russia's deputy prime minister He said Russia has the right to take actions that mirror the penalties imposed by the west Novak said no decision has been taking yet and the pipeline is currently operating at its full capacity One nearly two dozen major natural gas companies were attacked by hackers last month This according to research by re security shared exclusively with Bloomberg The hackers managed to access computers that belonged to current and former employees at these firms and these include Chevron shania energy and Kinder Morgan Toby Russ is CEO of EQT the largest natural gas producer in the United States He told us the number of cyberattacks on the company has also surged since Russia's invasion of Ukraine.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Stance as the omicron variant spreads rapidly across the U.S. encouraging staff to resume work in the new year from their homes News came in a memo today about Goldman As recently as last week Goldman was doubling down on its return to office plan by making vaccination booster shots compulsory A Goldman spokeswoman didn't immediately respond to a request today for comment The first trading day of the new year is nearly here A big question is the impact of the omicron variant on economic growth Jay Bryson is chief economist at Wells Fargo Yeah there has been a little bit of a pullback so far and travel There's been a little bit of a pullback in terms of people going to restaurants You know all that said I wouldn't expect a complete downturn or anything coming from I think it's a little bit more of a speed bump in the road as people get a little bit more cautious They don't travel as much They don't go out to restaurants et cetera We'll get a look at the jobs market as on Macron began to surge with the release of the December jobs report that is due this Friday Members of OPEC plus the 23 nation group led by Saudi Arabia and Russia meet on Tuesday before that gathering Russian deputy prime minister Alexander Novak said the country is comfortable with prices being between 65 and $80 a barrel for oil Crude futures have almost recovered all of the ground a lost since the end of November when the discovery of the omikron variant sent markets reeling Screwed was last quoted at 75 21 a barrel Global news 24 hours a day on air and on Bloomberg quick take powered by more than 2700 journalists and analysts in more than 120 countries I'm susannah Palmer.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"Through markets and the UK government is preparing to tighten the pandemic rules this week Boris Johnson's government buying time to determine the risks posed by the omicron virus Bloomberg's Liang guerin joins me now from London headquarters I was listening to some of the news flow yesterday on the restrictions that are coming Will they be enforced throughout Christmas Man is this is the big question as we know this is a fast moving situation But interestingly enough Sajid Java did come out yesterday speaking to domestic media to say to us listen plan for Christmas as usual they don't predict a lockdown is happening We are in a good position but however from tomorrow from Tuesday if you want to go out to the supermarket and shop for your Christmas Turkey and Prosecco for the table you're going to have to wear a face mask on public transport You also are going to have to wear a face covering And when you arrive in the UK from a foreign country you're going to have to take a PC on test on your second day and you're only going to be allowed out of isolation if that test is negative So as far as we do know manis Christmas is on the cards but this is a 21st century virus malice as we've seen It's junked on a plane from Southern Africa We now have three cases here in the UK The government is doing its best to contact trace everyone who may have come into contact with the omicron virus And the reality is Christmas we just don't know anything at the moment because the government as you did say at the top there is a buying time to find out how transmissible this variant is And if this variant Manus can evade vaccinations And I watched that interview well one of the interviews I'm sure you watch many of them on Sky News And they really did push him in terms of a 180 people have been taken off the tubes for not wearing masks and he just simply would not address the issue very much leaning into the more libertarian viewpoint which is it's about personal choice But the prime minister has had a turbulent few weeks he's at a meeting with Graham Brady who leads the core of the Conservative Party What's the political risk for bojo You know what You're so right Bojo has been under pressure He's faced a lot of heat this week and last week apologies So on Monday he gave a speech to the CBI which was pretty much a disaster where he just went on about pepper pig world of course he lost his train of thought and asked them to forgive him multiple times So the business world were really expecting Boris to come out and give them some reassurance of course after all the lockdown measures they have faced And then Manus we saw the absolutely tragic events in the channel where 27 people lost their lives trying to come here to the UK So Boris Johnson is facing lots of criticism from the labor opposition and also from within his own party And now labor are saying he's just not going far enough with the restrictions that he's put into place over the new armor cron variant They sing people should have been working from home They sang Mars should have been mandatory everywhere not just on transport and on supermarkets So Boris Johnson will face the Labor Party today They are expected to back those new measures but we just don't know what's to come Nobody knows at the moment But you remember last year this time we were hurtling towards a lockdown manager Yep thank you very much Let's see how the commons debate goes today Leanne garands there in London Breaking news lines coming in from Alexander Novak the Russian oil minister and this is on tasks at news agency There's no need for emergency measures on the oil market Of course they're set to add 400,000 barrels of oil in January The tass agency is citing the deputy prime minister mister Novak on the oil markets.
Bloomberg Radio New York
"alexander novak" Discussed on Bloomberg Radio New York
"17th fell 29 cents on the dollar to just 38.2 cents That was his biggest ever daily drop So keeping a close eye on that seems to have caused a little bit more discomfort in markets Right now gold is trading at 1769 20 and the Bloomberg dollar spot index is now flat at 11 59 Paul Thanks Brian And we are underway here in Australia We had the clocks change over the weekend so the ASX Nat down about the third of 1% in the early going Facebook services are also coming back online after users around the world reported that they were unable to access its family of social media apps for hours This includes the main social network photo sharing app Instagram and the messaging service WhatsApp The outage appeared to be related to Facebook's DNS or domain name system records an era in DNS records can make it impossible to connect to a website and Facebook had to physically reset some of the company's servers in an effort to fix the problem Facebook shares were already down after company whistle blow up Francis Hogan appeared on the news program 60 minutes She accused the social media giant of putting a profit over safety of its users White House for a secretary of sake this is the quote sorry she said quote this is the latest in a stream of revelations that shows federal regulation as needed for social media platforms Reports were in recent weeks and I think obviously the whistleblower was came forward last night in the report but about efforts to attract young users and negative effects on teenagers mental health are certainly troubling They're hardly isolated incidents Meanwhile Facebook CEO Mark Zuckerberg's personal wealth fell by more than $6 billion in just a few hours This dropped them below Bill Gates to number 5 on the Bloomberg billionaire index Yeah Facebook down almost 5% in the session And WTI crude in New York went the other direction putting on some pretty big gains The highest levels since 2014 I mentioned 77 67 a barrel a moment ago that followed OPEC plus's decision to maintain a schedule of gradual monthly production increases Ministers ratifying the 400,000 barrels a day supply hike that was scheduled for November There had been speculation that they might opt for a larger supply increase However delegates said no such proposal was actually made Russian deputy prime minister Alexander Novak said that Monday's agreement will allow OPEC to continue to normalize the market situation And the group said that the next time they meet will be November 4th Well is not 5 minutes past ten on Tuesday morning here in Sydney 5 past 7 in Hong Kong time for chick of global news And Chinese warplanes have again made sorties and record numbers close to Taiwan and Baxter's got details Yeah you're right Paul This following U.S. State.
#hottakeoftheday
"alexander novak" Discussed on #hottakeoftheday
"So what i've wanted to have on the show for a very long time is ryan sitton. Who joins us today. Ryan first of all. Thank you so much for joining glad to be here. Thanks for having me of course so so ryan you you before we get into the book that you've released. I wanted to talk a little bit about your time with our our c. And in particular you know twenty twenty was kind of a crazy year and it brought together a lot of focal points that you had focused on during your time there but certainly opec and flaring. So so let's start with opec's it's kind of relevance that the saudis surprised the market with a million barrel a day unilateral cut this week and i'm curious sort of your take on opec's approached through twenty twenty What you think. The saudis were up to versus. You know what you might have known. I know you've had a lot of conversations with them. And lastly on the topic how you think texas and opec in the united states and opec given where supply. Demand is right now. How it all comes together while that's a lot so you just want me to go for the next hour. Yeah exactly started anywhere you want with that question. Sure well you know first of all. Let me just tell you the story because as you said it was this was a unique year. Not just you know corona virus in lockdowns and those sort of things and even just in the oil and gas business not just a downturn been in the business for decades downturns and upswings are constant. What made this year unique was the fact that at some point we were probably down. I would say between thirty and thirty. Five percents of global oil consumption was gone. And we'd never seen that ever not even close. You look back in history. There were times where maybe five percent of the market kind of went out at certain periods. But it was over the course of months or even a year that we kind of leveled into that. It wasn't a matter of weeks. So this was this was unprecedented and having having been through our commission for awhile and people out while most people in texas and in the country. Don't really understand the authority that the railroad commission has when you look around the world people who are thought leaders in oil and gas they do they know that the railroad commission has the authority to prorate oil because oil production in texas because from one thousand nine hundred eighty s to the nineteen seventies. The railroad commission was arguably the most powerful price setting organization in the world because they were controlling. We're the swing producer in texas and a lot of people don't know that but it was a it was a really powerful place to be. Well we get into this virus. Market prices are dropping through the floor. There's way too much oil on the market. You're starting to hear fears of of a feeling of storage of just mass. Kinda shut in of wells and the long term damage that would do it was it was so speculative that that fears were rampant and somewhere probably a month or so a month and a half in. I get my first call from the secretary. General of opec a monarch indo and great really thoughtful. Very nice guy as you would imagine leading that kind of international organization and we start talking not so much about the oil industry but about the global impacts of the pandemic and how oil is one of many market segments are going to both be affected by this and how they might affect things on the upswing. So when things start to come back we're we're we positioned tell the short version here. Over the next few weeks i ended up connected with alexander. Novak who is the russian minister who i found equally thoughtful. I probably spent at one point an hour and a half on the phone once again..
Planet Money
Coronavirus, Oil, and Kansas
"Okay Jacob first thing. We've got to talk about here. Is OPEC the Organization of Petroleum Exporting Countries? Which is this amazing global economic thing. Yes so okay. Opec goes back to the nineteen sixties. That's when a bunch of oil. Exporting Countries all got together and they ask themselves this basic question. Why are we all competing with each other? Why are we all pumping more and more oil and selling it for lower and lower prices when instead we all just get together and agree to limit production and sell oil for a higher price? So they formed. What's called a cartel? A cartel is basically just a bunch of different people or companies who are in the same business or industry and they get together and agree to limit production and coordinate prices. Doing this form. A cartel is any industries basically. It's their dream. Come true you know. Instead of competing out in the brutal world of the free market you just carve up the market with your pals and let the prophets role. In in fact the only reason more industries don't do this don't form cartels is because it is wildly illegal if all say that airlines in America got together and decided. Let's just coordinate on routes and fares and they got caught. They would be massive legal trouble but those. Us rules don't apply to the countries and OPEC they're Muslim countries in the Middle East and Africa. And they're those oil industries are largely controlled by their governments themselves. So they're oil. Ministers can get together and decide how much oil each country is going to produce for decades OPEC was this cartel unofficially de facto lead by Saudi Arabia. That had all this power over the world's supply of oil when OPEC decided to cut back. The price went up when they decided to pump more. The price fell and then just in the past decade or so that changed fracking took off the United States and suddenly the US was producing all this oil and the US of course the oil industry is private not public the US is not part of OPEC so the rise of US oil production meant that the Saudis and the other OPEC countries could no longer cut back on production and control. The price like they used to. The cartel was just not that strong anymore so to fight back. Opec got bigger the teamed up with Russia. We don't really think of Russia as a petro state but it sort of is. I didn't really realize this before we started working on the story but along with Saudi Arabia and the US. It's one of the three biggest oil producing nations in the world. Something like half of its government. Budget comes from oil and gas revenue. People started calling this new group of Saudis and the Russians and everybody else OPEC plus sounds like a boring streaming service. Actually a pretty effective global mega cartel and in two thousand sixteen the OPEC plus countries agreed to cut production. Prices started going back up and the cartel dream was back. The cartel was working until just a few days ago when something at the cartel went horribly wrong and Mary. When we came in Monday morning we saw this stuff happening in the oil market. I asked You like. Who Should we talk to? So my immediate thought was Ed Crooks if I have to phone a friend on oil. I'm calling Ed. He used to cover energy at the times for ages. Now he's at an energy consultancy. Wood Mackenzie so on Monday. Ed came in to help us make sense of what was going on. It's one of those days that you get very very rarely In life very rarely the oil market or in any other business which is a really dramatic unexpected event. That completely changes your world. Ed says okay to understand what is just happening in the past few days with oil. Start by going back. A couple of months. Think about China's response to the corona virus. Which of course we've heard a lot about but this time think about it from the point of view of oil what we saw in China were these very very Severe measures in order to curb the spread of the virus and so there's a lot of factories closed huge restrictions on travel. People would not driving around goods. Not being trucked around people would not flying and so all of those things hit oil demand in China in particular and China is the world's biggest oil importer so in the first few months of this year the global demand for oil fell by the most since the financial crisis more than ten years ago and the price of oil just started falling so just last week. The country's in OPEC in the oil cartel got together to do what cartels do European countries got together on Thursday. And they said right. This is all plan. We need to count a production by one point five million barrels a day to the end of the year we should bring the oil market back into balance. And that way everybody. Happy and prices will stabilize so that is old school. Saudi led OPEC the next day. They go to meet with. Opec plus basically adding in the Russians. The Friday you start hearing noises from the Russian Camp. Well then not happy about this. They weren't necessarily going to go along with it. So it's getting weird. There are delays. It's clear that not all is well. It's clear that you aren't just going to have an easy agreement. Everyone coming out and smiling and shaking hands or maybe not shaking hands and saying yeah. We've all agreed on this. One point five million barrels a day cut and the time dragged on and then the meeting kind of broke up in chaos and the this was the really kind of telling a comment when the Russian Energy Minister Alexander. Novak walked out of the meeting. He said everyone can pump as much as they want. He said you can pump it will. What did you think when you heard what had happened so I thought wow with my first reaction? I thought that the edited version. I mean the whole point of a cartel is UK at pump as much as you want right exactly. That discipline is everything. A cartel needs to things. It needs as larger market share as possible as many members as possible and it needs discipline and on Friday. It seemed to lose both of those things and then in the days after the meeting Russia and Saudi Arabia both went further. They said okay. Not only. Are we not going to cut production. We are going to increase production that promise of increased supply. Even as demanded falling led to that giant fall in oil prices on Monday. There is this really basic question here. Which why these countries have this dream thing that most businesses would kill for a cartel they can rig the market in their favor. All they have to do is agree to cut production. Why didn't they do that? The absolute truth of the of the. Why did this fall apart? One is that we are still trying to find out I'll selves. We don't really know but it does have an educated guess. It's frankly the best explanation I've heard for what happened and I love it because it speaks to. What's going on here with OPEC but it gets at this really basic kind of human tension that exists in any cartel. It works like this everybody in the cartel agrees yes sure we should cut production and
Biz 1190 Overnight featuring Bloomberg Radio
What Will Apple Announce At Its September 12 Event?
"Has wolf from New York. For apple and its loyal followers. This is the week this Wednesday, the world's most valuable public company is expected to launch a whole plethora of new as well as revamped gadgets, including but not limited to a trio of new iphones, bigger, watches and revamped ipad pro, but the focus, of course, will be on those phones after all apple still gets two-thirds of its revenue from those now one will be an upgraded version of the iphone ten with a five point eight inch screen faster processor and upgraded cameras. The second will be a bigger version with a get this six and a half inch screen, and that could be called the iphone X max, which according to people familiar and the third could be the hit of them. All that's because it would be a new low cost version of the ten with a six point one inch screen and an