35 Burst results for "Oil Prices"
Saudis Take Charge of Oil Market With Surprise Output Cut
"Cutting its oil production by million barrels per day as the state of the global economy remains tenuous most other members of opec will keep their production stable. More from npr's camilla domino. Some oil producing states are eager to boost their oil output as they hope vaccines will eventually restore oil demand but saudi arabia. The leader of opec is worried about pumping too much oil too soon. So the saudis announced a surprise cut which will reduce saudi revenue but prop up oil prices overall. Here's saudi energy minister prince abdulaziz bin. Someone tweak other cartel members will hold production steady while opec ally. Russia will increase output slightly. Us producers who do not participate in opec cuts will benefit from the saudis pushing prices up already. Us crude prices hit fifty dollars for the first time. Since february camilo domino's npr news wall street. The dow is up
After Decades-Long Push, It's Not Clear Who Will Bid In Arctic Refuge Oil Lease Sale
"The trump administration has fewer than three weeks to go and is working to lock in oil drilling in the arctic. National wildlife refuge. It's holding an oil lease sale next week. Deacon handling of alaska's energy desk reports it's unclear. how much oil is under the refuge. Supporters of drilling in the arctic refugees coastal plain often point to its oil potential as a reason to develop the remote stretch of land president. Donald trump has described it as the gravesites of energy in the world. But while geologists say the rock formations oil seeps and old seismic results seem promising. The data available is still limited. We don't know very much about this area. David house neck is senior. Research geologist at the us geological survey and he helped with the agencies last assessment of oil potential and alaska's coastal plain back in the late nineteen ninety s. The usgs calculated anywhere from about four to twelve billion barrels of recoverable. Oil house. next says that's a whole of oil but also a huge range in part because it's based on seismic data from the nineteen eighty s. Technology has come a long way since then going into a lease sale in the coastal plain with the only data being thirty five year old. Two d data is quite unusual house. Neck says what's also missing from the usgs assessment is any data from actual wells in the refuge. There's been just one exploratory. Well drilled in the coastal plain also back in the eighty s on alaska native land but the results of that test well are a closely guarded secret confidentiality agreement and never an end date on it. Mark myers geologist and former commissioner of the alaska department of natural resources is one of the few people who have seen the results from the test. Well outside of the big oil companies that paid for it. So i can't comment on in terms of what i saw even though it was a lot of new york times. Investigation based on legal documents suggested the results were not promising but the amount of oil is just one factor companies will consider when deciding whether to bid in the alaska sale. Another is the money. Myer says it's already more expensive to drill in the arctic compared to say texas on top of that oil prices are still low after an oil price war and the coronavirus pandemic hit the industry. Hard low prices have fallen down to a level that we larry little capital for exploration in these companies. So that's one of the biggest negatives. There's also the controversy says weena gun. An analyst with the energy research firm would mackenzie. The refuge is home to migrating. Caribou polar bears and other wildlife and that has prompted multiple lawsuits to block drilling there. Some big banks site climate change and say they won't fund oil projects in the arctic. An amount of i guess public opinion the it wouldn't necessarily be good p for them to be seen as ruling and the article drilling and environmentally sensitive areas. But perhaps the biggest uncertainty of all is the changing administration. President elect joe biden says he opposes drilling in alaska's refuge although if leases are finalized before he takes office. It's not clear how he would stop it for npr news. I'm teagan hanlin in
Gas prices back on the rise after weeks of declines
"Drivers are paying more get more for gas at the pump that in any time since mid March, according to Triple A MPR's Camilla Domina ski reports. Gasoline is still cheaper than it was last year, but it's climbing noticeably. For the first time in months, Americans continue to drive less than usual, so demand for gas is still relatively low. That crude oil prices play a big role in setting prices at the pump and oil prices have been climbing thanks in large part to optimism about how the Corona virus vaccines might allow a return to normalcy next year. Nationwide, the average gas prices now around $2.25 as usual, it is cheaper in the south and more expensive in the
COVID-19 vaccine to blame for rising gas prices
"The corona virus vaccines might be to blame for a rising gas prices in southern Kelly. Formula. Gasbuddy, head of petroleum analysis. That's Patrick DeHaan, he tells KNX. Oil traders are betting the economy can rebound quickly. Really, What we're seeing is oil prices have continued to go up. In recent weeks on promise that the vaccine would eventually deliver higher gasoline and oil demand. But he also tells it is this that if that doesn't happen, gas prices could drop again. The average for a gallon of regular unleaded fuel in L. A county now stands at 3 19. That's the highest it's been since mid October, but 45 cents lower than a year ago before Pandemic.
Airline stocks slide as highly contagious Covid mutation in UK prompts travel restrictions
"Down this morning as the encouraging news on the stimulus agreements being overshadowed by news out of the uk that gail just mention that new and fast spreading strain of the covid nineteen is prompting. New travel restrictions. Right i mean you've got countries banning travel from the uk to include germany france. Italy canada israel the netherlands and belgium and shares of travel stocks coordinated lee Down because of that cruise ships airlines and oil companies Oil is fuel for cruise ships and airlines and so the oil companies are down on the news as is the oil price so i. The market's not as bad as it was earlier this morning and futures a dark thirty. This morning i saw The dow down five hundred points. It's down one hundred sixty seven now. That's a half percent at thirty thousand and eleven
Houston averaging lowest gas prices in the country
"Top top story. story. Houston's Houston's economy economy is is closely closely tied tied to to the the oil oil industry, industry, so so it's it's not not really really good good news news that that Houston Houston has has the the lowest lowest gas gas price price in in the the country country today. today. Lundberg Lundberg Surveys industry analyst Trilby Lundberg says today that arise in crude oil prices that's good brought a little increasing gas prices. It's still 35 cents lower than this time last year. The highest average price per gallon of regular is $3.34 No surprise that since entrance Cisco Lowest Price was found at your favorite pump in Houston Diesel also spiked
Gas Prices Increase in New Jersey
"Increased in New Jersey A med increased the band before the holidays. Triple A says The average price of a gallon of regular nd jersey on Friday was $2.32 of four cents from the week earlier. And let's say higher crude oil prices were affect ER in the increase, and now
Ex-Energy Secretary Says Fixing Climate Change Is Tough, There's No Vaccine
"President-elect biden plans to change. us climate policies or rather. Pick up where they left off. Resuming efforts disrupted under the trump administration biden talks of the united states generating all its electricity by twenty. Thirty five without emitting carbon into the atmosphere. He wants the whole economy to run on clean energy by twenty fifty. If that can be done at all it will demand changes in technology so we called someone who knows the technology well. Steven chu was a recipient of a nobel prize in physics. He was also secretary of energy in president obama's administration and he says climate change makes the pandemic look simple. There will be no vaccine magical shot for climate change and it's going to have a more profound impact on the world at large if you can imagine that than what we're going through today. Steven chu says. Markets are moving in favor of cleaner energy. President trump's administration loosened fuel economy standards for cars and promoted coal but the coal industry kept dying on. Its own and car companies. Say they are ready to go back to stricter standards. Renewable energy like wind and solar is getting cheaper while oil companies are contemplating a different future. We've been interested by the news that some oil companies are forecasting peak demand Not that their production would peak but that the demand for oil is plateauing or declining in the next few years. Yes i would say it's more plateauing will be a long plateau which is not what they would have said ten years ago. It's in part due to the fact that they are into spain. Electric vehicles will become better and better and they will as they look towards the future. I think the more forward leaning oil companies are saying well essentially by twenty seventy twenty seven five. Whatever we need to be a very different business you're going to actually use oil or natural. Gas is then. The carbon can't be released into the atmosphere in past business cycles. The market has sometimes worked against renewable energy oil prices go up wind and solar lamar attractive by comparison but then oil gets very cheap as it absolutely has been during the pandemic and oil becomes much more attractive. Is there any reason to think that cycle would be broken this time. Yeah the technology is getting better. I go back to something like electric vehicles. Which for personal transportation you can imagine those at twenty twenty five thousand dollar car. That has a three hundred fifty mile range as four times less expensive to own and operate in terms of fuel and maintenance and pretend you can charge two hundred miles in five minutes. Six minutes and means the car batteries last longer than the human bladder. Which is the key criteria. I hadn't thought about that. People are going to stop for that reason. Okay go on. Yes and so. These type of batteries will be deployed so it makes much more sense. People will gravitate towards naturally. That's why the oil companies are looking towards other uses for oil natural gas particularly chemicals plastics. What they really love is if you could use that material to make construction materials that begin to displace cement or seal or at least supplement them in and lower the carbon footprint of those things. Oh because there's a big carbon footprint with those materials does construction materials as well. Oh absolutely cement. For example is responsible. Just cement is responsible for about eight percent of the entire carbon emissions so given the changes in technology and the changes in the marketplace is the biden administration which is set these relatively ambitious climate goals for twenty thirty five and twenty fifty. Are they pushing on an open door. Then no not really because in the end to get rule acceptance is got to be better cheaper and there's a nurse and so if you look at how you make these major shifts in infrastructure. These are half a century investments. How the lifetime of a coal plant. The lives of a national as planned. Lifetime of an automobile is fifteen. Two going on twenty years now. You can retire things before their natural lifetime. But then there's a lot of resistance to do that So the question for the government is how did give this a shove. How did they move things a little faster than they might naturally move on their own. That's right the real question is what will help people make electric vehicle choice. We'll first thing would be. The technology gets so instead of keeping your old car. You really want to have something. That's just better. But how do you retire things before. The national lifetime is initially now. You have to demonstrate that this change is going to be good for not only health but the economy and everything else. It has to be cost effective and cost effective e e. Could incorporate the cost of cumin house. Hopefully the american public will have no trouble trying to understand that when it comes to your own your family your children's health. It's worthwhile one of the reasons i wanted to call you. Was that you were in the obama administration when it was attempting to get climate legislation through congress. And it didn't happen. There was tremendous political resistance. Do you think the political landscape may have changed in a way that will allow more serious investment in fighting climate change. Yes in fact. I would go further and say i think some oil companies you know. I'm on a advisory group to royal dutch. Shell and i truly believe that the company wants to see itself in a completely new business that they cannot be a carbon company that emits carbon into the atmosphere and so there's also growing awareness as the public than companies themselves in. This is a problem. We have to be part of the solution. Even if it means that. We've got to have to completely reinvent ourselves steven chu. It's a pleasure talking with you. Thank you so much. Okay my pleasure.
"oil prices" Discussed on Marketplace Morning Report with David Brancaccio
"This marketplace podcast is supported by smp global market intelligence climate change is increasingly visible and disruptive yet for most corporations and financial institutions. Climate risk is a blind spot as impede global climate intelligence helps firms uncover the future physical impacts of climate change on global business operations supply chains and multi asset investment portfolios revealing new market opportunities. To help you get ahead. In the low carbon transition as be global market intelligence as global dot com slash market intelligence. See what matters. It is still high school football season barely. So you've got your homecoming queen homecoming king and in texas homecoming mum as in the chrysanthemum. Flower there the star in what have become elaborate accessories that high school or sometimes where the day of homecoming football games. And it's kra's rachel oser lindley reports the moms have become a booming local business though the pandemic has also changed things for those who've never seen a texas homecoming mom dallas photographer. Nancy newberry explains. I described them. As a corsage dot exploded. Newberry spent years photographing texas high-schoolers with there's mums have become these gigantic eleven pieces of folk art. Imagine a big artificial chrysanthemum. Cover it with ribbons braids. Beads decades ago. The tradition started as a simple flower. Boys would give homecoming dates but gina waters head of the texas state florists association says floors today. Rarely do homecoming mums. Ten years ago. Everything switched to the mums in typical. Texas fashion mums kept getting bigger. We've gotten into some pretty huge mums shannon heart. Gonzalez's runs mums and kisses accustom homecoming mum maker outside of fort worth modest. Mumps cost thirty dollars complex. Creations can be up to five hundred currently. I have an order for what we're calling the mum dress. It's four feet wide and includes more than one thousand nine thousand rhinestones. This is something that completely engulfs. The girl on the front and the back. It's a sash. The goes from her shoulder all the way to her hip. Gonzales started making mums for friends. About fifteen years ago. Then in two thousand sixteen. Her son needed a month for his homecoming day when she saw the prices. I thought i can do better than that. And i started an online store. And they took off from there she also needed the income and it was something that she and makers like her could do from home in normally years. Gonzales says mums and kisses could sell as many as four hundred. Her earnings covered most of her son's first year of college tuition at a private school. And then when covert hit. It was a shocker earlier. In the season gonzalez sales were down. Forty two percent from last year now schools reopen. She's only down thirteen percent. The latest homecoming on her calendar is now in december. She aims to close that final sales gap before the end of the year in dallas. I'm rachel lindley for marketplace. We've got some photos of those moms at marketplace dot org for.
UK asks regulator to assess AZ-Oxford vaccine amid questions
"Astrazeneca is adding an extra trial of its covid nineteen vaccine to clear up confusion and questions over. What dosage yields the best results. Meanwhile the uk's medical regulator is set to conduct its own assessment of the safety and effectiveness of the vaccine. That brings its roll out one. Step closer the bbc's medical editor fergus. Walsh has more. The oxford astrazeneca vaccine has an overall efficacy of seventy percent. But this rose to ninety percent in a group who were mistakenly given an initial half dose of the job followed by a full one. There has been some concern. Expressed that this subgroup. Fewer than three thousand people was comparatively small and contain no one over the age of fifty five. The detailed results of the vaccine trump have been submitted for peer review in a medical journal and when published the team at oxford hopes. This will help answer. Many of the questions which have been raised astra zeneca says it already has all the data it needs to submit the vaccine for approval around the world and this should happen imminently however it is hoping to amend a separate manager trial of the vaccine in the us around a third of the thirty thousand. Volunteers have already been recruited. But among many of those remaining it wants to try the initial half does formulation as part of the study to further explore. Why giving a lower amount of vaccine could yield more protection.
Airlines, Boeing surge on upbeat vaccine news
"This morning after Pfizer announced the positive results from its covert 19 vaccine trial on that upbeat mood has the DAO in the plus column by over 1000 points Now about 1000 45. That's nearly 4%. NASDAQ ahead. 97 points SNP Gaining about 90 points now or 2.5%, in addition to airlines and Boeing stock, and cruise operators and hotels are rising as well, Marry it Shares now ahead 12% oil prices Now they're also higher on the vaccine news. Crude futures
Closing prices for crude oil, gold and other commodities
"Dow future. Is trading with the loss of 191 point 6/10 of a percent lower the NASDAQ Down 124. That's a 1% drop the S and P down some 29 points. European shares fell as Italy and France posted a record number of Corona virus cases, while Asian equities ended on the higher side the dollars, sinking to its lowest level in over two months now against a basket of currencies, while gold is in the green. While a couple of minutes ago is up about $5 an ounce It's up 3 40 right now at $1950.20 Oil prices dropping as new lockdowns in Europe sparked concerns about the outlook for demand their light sweet crude futures this morning now showing a Loss of about a dollar 17 to 37 62 US
ConocoPhillips buying Concho in $9.7B all-stock deal
"The largest shale industry deals since the collapse and energy demand earlier this year. Kanako Phillips agreed to buy control resource is for $9.7 billion. The pandemic induced oil price crash and lackluster global economic recovery have accelerated the push for consolidation across
Johnson & Johnson Pauses Covid-19 Vaccine Tests
"Street stocks are pulling back a bit after yesterday's rally, despite better than expected earnings from a wide variety of banks and financial institutions, BlackRock standing out, among them, the market's still pulling back this morning in the absence of any further stimulus evidence coming out of Washington, the market looking for more money to support the economy, even as some companies are doing better than expected with respect to corporate profits. So we have markets moving down a little bit. Europe is also on the soft side. Of course, Last night the headline that Johnson and Johnson temporarily paused its vaccine research because of an adverse impact on one of its patients. We don't know whether that person was on placebo are actually receiving the vaccine that hit the market last night, and we've seen a bit of a pullback. They're as well inflation data in line with expectations this morning and the market working through a variety of different issues. We have oil prices rebounding, gold and silver are down interest rates tipping back a little bit lower. The yield on the 10 year Treasury back to three quarters of 1% while the dollar slightly weaker against key foreign currencies here in the early going apple, introducing a new iPhone the stock down after being up big yesterday and the Tamas on Prime day as well.
Reuters Reporter On The Rise Of Single-Use Plastic During The Pandemic
"Face Shields takeout food containers bubble wrap for online orders. Plastic bags from grocery deliveries think about how much people around the world are relying on mountains of plastic to get through this pandemic we'll have that plastic is not recyclable, and even if it were the demand for recycled plastic is down plastic is made from petrochemicals and the price of oil is so low that the price of brand new plastic known as Virgin Plastic is low to Reuters investigative reporter Joe. Brock has been connecting the dots in this other pandemic, this plastic pandemic and he joins us now. Welcome. So paint us a picture here. What was the trend for single use plastics before the coronavirus pandemic? Before the pandemic, the mom single, you slapstick woods with going out but particularly the case in developing countries where you've got a rising middle class, the condemn any exacerbated that trend and winning your investigation found was that big oil companies are hoping for a continually realising demand for new plastic, which is also made from fossil fuel. So they see that as a growth opportunity for their industry, right? That's correct. You're seeing oil and gas companies struggling. During the pandemic is your price has has dropped but as a longer term trend as we move towards electric vehicles greener energy. That is an abundance of cheap oil and gas, and that needs to go somewhere for these companies to remain successful and one of the key growth areas is me plastic for developing economies and that's what we're seeing huge amounts of investments, hundreds of billions of dollars in new petrochemicals, plants as they try and take advantage of that are these same companies that are investing in producing more new plastic. Are they also investing in recycling efforts? So these companies absolutely say that they take the waste crisis extremely seriously and they won't be part of the solution. What investigation was intended to do was to interrogate that claim I'm what we found was the investments they're making in recycling a vague and those ones that could be calculated or fraction of the money that they're spending on expanding plastic production. So the situation you have is you're trying to upper floor with a hand towel while the bosses Agra flying. Then instead of tying the topples, you start increasing the pressure. Okay we'll your investigation also found that the price of new plastic had dropped significantly during this pandemic as a result of these cheaper oil prices. So what does that mean overall for the business of recycling business being catastrophic for some smaller recycling firms because covid has led to a flawed using lease plastic but dropped the price at new plastic. So it's very difficult for those companies to compete and ready operating on extremely find margins. I mean, we should remind everyone that recycling was never going to be the solution to all the excess plastic trash produced worldwide right? Exactly. I think what's important for people to understand is that only a fraction of plastic gets recycled also most bostick cannot be recycled since nineteen fifty, six point three, billion tons of plastic waste being produced ninety one percent of has not been recycled. So can I just ask you then what do you think is the answer taller this Recycling, shutting the caught, the answer, a huge amount of investment needs to go into that from governments from consumer goods, companies to the plastic producers themselves. But is another elephant in the room here, which is we need to stop producing so much single use plastic on ultimately what it comes down to is profit margins versus the good of the planet climate on some of the poorest communities in the world right. That is reporter Joe Brock from Reuters. Thank you very much for joining us today. It's been a
Shell plans to cut up to 9,000 jobs as oil demand slumps
"Royal Dutch Shell says is planning to cut up to nine thousand jobs worldwide by the end of twenty twenty two following a collapse in demand for oil the oil company says around one thousand five hundred employees have already agreed to take voluntary redundancy this year that is looking at a raft of other areas where you can cut costs such as travel his use of contract was on virtual working overruled it expects the cost cutting measures to secure annual cost savings of up to two point five billion dollars this being the slide in oil prices during the corona virus pandemic in June rival BP said it was cutting around ten thousand jobs from its workforce to cope with the impact Charles de Ledesma London
Closing prices for crude oil, gold and other commodities
"Oil prices, they went up his Angelus took the view that renewed lock down restrictions would have only limited impact on fuel demand. A crude oil futures light sweet crude of 14 cents a barrel to 39 67. Meantime, spot gold took a drop with investors. Ah, doubting over additional stimulus measures to weigh the Corona virus had economy had his speeches from Federal Reserve officials later this week. Gold futures now down to dollars and owns 2 $1908.80. Now gold. Also, just a little bit ago was showing a game. So we're seeing a reversal not only in some of the stock index futures But in the precious metal is well doubt on existing home sales is do a little bit later in the day
Wyoming Doubles Down On Its Long Support For Carbon Capture
"US coal production is down to its lowest level in half a century, but the country's largest coal-producing state is desperate to keep the industry going with support from the trump administration. Wyoming is investing big to try and clean up Kohl's carbon emissions. Wyoming public radio's Cooper has more the largest utility in Wyoming Rocky Mountain power has found. It makes economic sense to start retiring. It's coal plants early, an invest heavily and renewables across the West. That isn't going over well in a state whose economy is tied to call. At a recent public hearing county commissioner can't Connolly said when a plant is shutdown, it's not just jobs that are lost by lose. Fifty percent of the taxes is just as simple. Connolly says it doesn't have to be like this coal plants in Wyoming could stick around if utilities just considered retrofitting them to capture the carbon they emit we will change how goal America. There's no doubt about it we'll get. The idea a coal plant would be retrofitted with new tack. Its emissions would be removed and then sold, but rocky mountain power says right now that technology is too expensive and not proven utilities rick, link says its decision is an economic one. Is Driven by. Changes in the heart condition even so Wyoming is doubling down on its long support for carbon capture. This year lawmakers mandated that by twenty thirty utilities produce a certain amount of electricity from coal plants using carbon capture technology ratepayers bear the expensive that the trump administration is also trying to boost carbon capture. It's passed a federal tax credit in his funding research projects. Holly crude cut oversees several through the University of Wyoming. She envisions capturing co two emissions for a variety of profitable uses including turning them into new products. Building Materials asshole replacement. The problem is many others think the moment for Carbon Capture to help Cole has come and Gone Arizona State University's Klaus Lochner remembers giving presentations promoting carbon capture to the coal industry twenty years ago without that, he warned that climate change would be the industry's demise. Is it look if the comes around, you are not going to be allowed to build a new new coal plant because every bank in the country will know that they will not get their money back. So you bid or buy twenty trinite have the ability to build power plants that. Completely carbon neutral but that hasn't happened Energy Economists Rob. God. Says part of the reason could be politics the Republican Party which strongly supports coal actually may have hurt the industry by downplaying climate change climate change doesn't exist. There's no justification to develop low-carbon technologies like carbon capture. So in an ironic way, the Republicans, kill carbon capture as much as anybody else only one coal plant in the US created a successful business model for carbon capture. It's called Petra Nova in Texas, but that fell apart after the pandemic led to an oil price. Crash analysts, Dennis Wanstead with Institute for Energy Economics and Financial Analysis says he can no longer imagine utility saying, Hey, we really WanNa do this. We really want to build a carbon capture facility and we really WANNA put it on our thirty five year old forty-year-old coal plant improve. It's GonNa. Make Money Wyoming Governor. Mark Gordon isn't put off though he points to wind energy, which also needed help early on, but is now a fast growing industry. He says that means you don't give up for NPR news I'm Cooper mckim
Closing prices for crude oil, gold and other commodities
"Oil prices extended losses today, falling by more than 2% to their lowest point since early August as worries about weaker U. S gasoline demand and the sluggish economic recovery from the covert 19 pandemic. His denting sentiment in the oil market. Brent crude fella dollar and that puts it at $43.43 a barrel US screwed down a dollar, two cents at $40.49 a barrel.
"oil prices" Discussed on Exchanges at Goldman Sachs
"New tweak. We check in with leaders across the firm to get a quick take on what they're watching in the markets. Jake siewert global head of corporate communications here at the firm in today's guest is Sarah Kiernan have America's commodities sales and CEO of our Global Commodities. Business as part of our Global Markets Division. Welcome back to the program. Sarah thank you very much. Things have changed since last year. Yeah we don't get to do it in person this time. We'll but at least I can see your face so sorry. It's hard to escape conversation around. Everyone's watching the oil market this week in particular. What's the headline the year following? Yeah I mean. The headline is the headline thing. Just the fact that the price settled at negative thirty seven sixty three on Monday negative first time ever is hugely important and kind of a paradigm shift from Boise. Obviously commodity markets are about fundamentals. But there are some some technical issues around. The oil market twits happening beneath the hood. Explain the fundamental. State of player is fundamental story with what happened on. Monday was really the interplay of extreme weakness in the physical market and the technical dynamics of the marketing very long going into the May contract expert on Tuesday. This is the market is very meek. You know when I was there in February. We talked about demand being down freely barrels per day globally. Now it's down. Twenty million barrels per day. Twenty five percent is disappeared and in April. We were still having production at record levels. One hundred million barrels per day though is not much of an imbalance. You're GONNA have problems. You'RE GONNA run out storage so our research team has been saying for weeks that we're going to run out of storage in Spec to happen now INNOVA. But yes that'll take price driven shut-ins will be necessary of five million dollars market but you don't need a price of negative thirty seven dollars per barrel to to drive Shannon's and that really happened because the market ran into record length positioning issues because record inflows into a retail investor issues. So on Monday you had fifty five million barrels of length trying to sell into a very big physical market to avoid taking delivery on Tuesday and that drove this massive isis relation. So how are your clients thinking about this weakness in the sector and how they position themselves you obviously have corporate clients and and more financial players. How are they positioning themselves? Given the dislocation the market. Yeah I think I think. That's exactly right monitors. We have three principal types of the first start investors who are looking to gain exposure to commodities asset class and. I think they're thinking about. How do they deal with taking an abacus to their portfolio which can actually go negative unlike equities or on so we've seen USO ETF which is the biggest one trying to deal with that by pushing positions further? Heard this week and that's really talk. Oh question across type of investor we also have hedge funds tactical traders. I think they're starting now giving.
"oil prices" Discussed on Stansberry Investor Hour
"I'm also the editor of extreme value published by stands Berry Research. Today we've got a ton of value to dispense our guest and wreak. Obata tells us about his time at Lehman an I pushed back on his thoughts about the firm's actions during their demise at the last crash plus and wreak as premise that a stock has no value. He'll explain your emails always play a part including Mat L. Who wants to know about the best way to buy physical gold and as always my rant all about negative oil prices why it happened and what it means to you going forward all that and more right now on the stands berry investor. Our I.
"oil prices" Discussed on Marketplace with Kai Ryssdal
"<Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> <Music> There's a big <Speech_Music_Male> <Advertisement> chunk of what's going on <Speech_Male> <Advertisement> in this economy right now. <Speech_Male> That's all about the <Speech_Male> supply chain <Speech_Male> getting <Speech_Male> stuff from manufacturer <Speech_Male> to consumer <Speech_Male> and <Speech_Male> maybe the biggest way that <Speech_Male> shown up for consumers <Speech_Male> is in grocery <Speech_Male> stores <Speech_Male> but the thing is <Speech_Male> not oh <Speech_Male> grocery stores have the same <Speech_Male> supply chains. 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"oil prices" Discussed on Marketplace with Kai Ryssdal
"Things right now. Look economically uncertain to say the least and in times of uncertainty. It can be helpful to look for clues for signs of what is to come like this clue from the guy who's basically running the American economy right. Now My expectation is that the second quarter will be a very weak one and that's because businesses are shut down. That's fed chair Jay Powell just a couple of weeks ago. We do expect to see very low. Economic output and ink big increases in initial claims for unemployment and unemployment during the second quarter more than twenty. Two million people have filed first time claims for unemployment in the past month retail sales are way down and consumer confidence is terrible so those are known things. What's unknown is what all that's GonNa do to what Powell calls economic output which we right now are going to call gross domestic products. What's the virus doing to the production of this economy? And can we figure out what it's done already? Gdp is the total value of goods and services. This country produces a bit more than twenty one trillion dollars worth of stuff last year. We measured every quarter and right now. We're almost three weeks into cue. Two runs April through June. So we called up some economists to ask how they are thinking about GDP when everything is kind of stopped and also to get their guesses on this second quarter. We know it's going to be a pretty big hit in excess of twenty percent minus twenty five percent. That's Betsy Stevenson. At the University of Michigan Jay Bryson from Wells Fargo and Campbell Harvey from Duke Non Scientifically then a consensus of a twenty or twenty five percent. Drop annualized for the second quarter of this year. You might be looking for a reference point right now. I get that so here you go in the second quarter of last year. Gdp grew two percents and that was in the middle of a trade war between the two biggest economies on the planet. Here's Betsy Stevenson on. What economists were looking at? Now there's a bunch of things that aren't happening right now. We're not producing restaurant meals and haircuts and we're not producing constructions that we're not building new homes. So how do you turn all those things we are not producing into an actual quantifiable loss? Here's Jay Bryson he's acting chief. Economist at Wells Fargo where they do these kinds of calculations all the time and the second quarter we think you're looking at an annualized contraction between twenty and twenty five percent and the biggest driver of that contraction. Bryson says is we consumers. Just aren't spending money. So bryson going. Category by category for instance you know restaurants restaurants annual sales more than eight hundred sixty billion dollars. More than fifteen million people employed. Okay well we know. Spending in restaurants is probably going to be down. Eighty maybe ninety percent bryson makes what he calls an educated guess. Here's something he's doing with a lot of industries take airlines data. You have probably heard a time or two on this program. Just look at people going through. Tsa LINES DOWN. Ninety five percent so you can make pretty good guesses there yesterday. Tsa screened a bit more than one hundred five thousand passengers. That's compared to more than two point. Three million a year ago yesterday that means next to no ticket revenue for airlines which just agreed to a twenty five billion dollar package of loans and grants. But even with that bailout. Nobody knows when people are going to start traveling again or doing much of anything else for that matter. Frankly there's a lot more art than science right now. We have not seen anything like this. There's no playbook that we can go back on in dust off and say oh this what. It looks like when the economy completely shuts down. That's how Bryson and his colleagues at Wellsfargo are doing the math Campbell. Harvey Duke Comes Up With. A different answer would not be surprised to see minus twenty five percent. The way he got there was with the at least twenty two million people who've lost their jobs when you've got three quarters of the population saying that their income is going to be less in two thousand twenty. Then you can actually make some some calculations. Betsey Stevenson at Michigan was just a little bit less specific. We know it's going to be a pretty big hit because what she's looking for to understand how this crisis is affecting. Gdp is going to need a much longer view we saw in the two thousand and eight downturn that it took a number of years before we actually knew how bad our worst quarter in that recession was. It's quite possible that we don't know truly how big the decline in GDP is this year last. Quarter this quarter for five years. Get an estimate of what happened to first quarter. Gdp that's January to March the middle of next week remember. That is the very beginning of this crisis. We are not going to know about quarter to till the end of July..
"oil prices" Discussed on Monocle 24: The Foreign Desk
"You're listening to the foreign desk on monocle. Twenty four still with me. Are Ali Ahmed and Laura James in the second part of the show? I want to talk a bit more again. So far as we understand about where. Nbs thinks he's going with all this. And I guess we should stop this part of the show by addressing another fundamental question. Which will put to you? Laura which is how certain actually is it that he will be the next king of Saudi Arabia as things stand. It seems that there's no other possibility is very effectively quashed all domestic opposition. He has control of all of the levers of power in the country. This latest move against the remaining family members. He might conceivably put forward a threat. I didn't think they were very advanced necessarily in coup-plotting but they were the possible centers of at least criticism. That's just finished off. What was already fairly. Well ruled out the possibility of anyone challenging him because he controls security forces he controls the economic levers of power. So I think that a nestling very dramatic changes in the country. I don't think there's another option apart from his eventual succession Ali as we've been discussing. Nbs has been willing to exhibit extraordinarily ruthlessness in grasping power and maintaining power. Do we understand what he wants? That power four does he have a vision of Saudi Arabia. If for example he becomes king in the next year or two. He will still only be in his mid thirties if he lives as long as many of his relatives he may rule over. Saudi Arabia for half a century. What would he won't country to look like at the end of that. What you will see is a shift from horizontal transfer of power from brother to brother or brother cousin or cousin to cousin to father to son so it is going to be vertical system. Where Hamad bin Salman will hand the power to one of his sons and this will happen immediately maybe after King Solomon dies which. I don't think he will die anytime soon. He is in very good health except for the problem. He has with early dementia. He doesn't have any serious illness although he's eighty four you never know but It will become a vertical monarchy and because Muhammad surmise right. You cannot have thirty. Four hundred thousand members rolling family all vying for power and so I think he will take extre even more measures in terms of slimming down the ruling family to his own offspring. It's not sustainable to have so many people with titles and benefits and they are parasites on the state and it's you know it's economy and its power and it is. Kinda run if if he does not basically cut the cord and I think he will will that give Saudi Arabia which will give it extra time to survive but after all we are in the twenty century. It's very hard for any population to live under certain type of despotic rule. And they would. They would fight. Data clear indirectly Laura given everything ally has just laid out there for all that. Mbbs has attempted to present himself as a reformer as a modernizer is Saudi Arabia in. Its present form actually modernize -able or reformer bowl interesting because it depends what you mean by reform. Nps basically said Saudi Arabia urgently needs economic reform and to enable that to some extent it needs social reform. I miss my way. We're going to get it if I do what? The West calls political reform so he centralized power in political terms to try and push through this economic agenda. You lost how he sees the country in fifty s time and I would suggest that probably what he thinks is. I need still to be a country in fifty years time but going the way that Saudi Arabia was going it was not clear. A tool kind of future could happen. Post-oil era was simply nothing happening it would be a desert on economic activity would be lacking and strategic importance anymore. So I think that what he's doing is he's trying to push forward economic reform agenda which will enable that still to be country. He's saying well apart from that. Reform is an obstacle. But I think that the problem which we've already mentioned is that the economic reform agenda doesn't necessarily seem to be working. Neither was the previous model of course but that doesn't mean that he's to succeed with this one Ali. It is a curiosity or a paradox of tyrants they are still nonetheless somewhat dependent on the consent of the subjects how patient especially that young up and coming Saudi generation who had much greater exposure to engagement with the outside world than previous Saudi generations. How patient are they going to be with? Nbs to deliver the kind of Saudi Arabia that people of NBS's age and even younger might prefer to live in. I don't. He has a lot of support among the younger generation. And this is because it's you have very high degree of oppression. People are not in liberty to speak their mind given that environment you have the largest exodus of young people from Saudi Arabia to Western countries. That didn't happen. Any other. King happened under Hamad bin Salman and that said these are mostly young men and women who have their from people who call themselves ex. Muslims who call themselves L. G. D. people who became Christians and people who audaciously devout following there were hobby that you know the state religion is just because we have a problem with coverage in that country. We have maybe favorable western media that covers Salman Saudi Arabia historically so you are not aware of the amount of anger. The thing is what we see if you take a total of what ambience has done over the past few years most of what was called reform is about opening cinema or cafe. The reality is that this allstate controlled the concerts state controlled you when you bring in Mariah Carey and all these singers and pay them huge amount of money. But you do not have an any of universities anyplace to learn music. There is no department in any Saudi University to learn playwright or drama or film making these other forms that you should look for not allowing cinemas to open. That's good but it does not really give those people in that advantages that jobs that they need he should allow these business people and young people to have their startups and give them the economic freedom. If you give them your freedom singer will move otherwise. I don't see any light at the end of the tunnel. Elliott Armored Laura James. Thank you both very much for joining.
"oil prices" Discussed on Monocle 24: The Foreign Desk
"Eighty. And as we know jared Kushner the president's son-in-law and how bin Salman got together like a house on fire and between the two of them decided that they could reshape the history in the face of the Middle East and primarily they looked at the situation between the Israelis and the Palestinians and as I said the Saudis I'm very consistent and their position that there must be a two states solution that East Jerusalem. We would be the capital of the Palestinian state that they will return to the nine thousand nine hundred sixty seven boundaries Margaret Amman effectively. Through that. And then we came up with the so called the deal of the century trump would then have seemed to be a good ally but lo and behold as the Saudis and many others have discovered to their dismay is that trump is loyal only unto himself. We protect Saudi Arabia. Would you say rich rich and I love the King King? Solomon but I said King. We're protecting you. You might not be there for two weeks without us. You have to pay military. I think the when the Aramco for thirties were hit in September of last year. I think the Saudis expected the S. expected that the Americans will be right there behind them backing them as they challenge the Iranians. Because that's why I believe the Iranians where responsible lo and behold mom it's a mandlikova shoulder and Donald trump was nowhere to be seen so he has proven to be rather erstwhile friend for the Saudis. I would say that the relationship is still very strong. We must remember that. Donald Trump has given unequivocal support. Demain Vince Online. Who is heavily implicated in the killing of the journalist? Jamal Show Heat in October of twenty eighteen. It's widely believed that Mohammed bin Salman ordered that killing trump has had his back on that one and I think as long as trump remains in power this relationship which has been a long standing one really. I'd say Obama was a bit of aberration. This relationship will continue Quite strongly.
"oil prices" Discussed on Monocle 24: The Foreign Desk
"Success. Failure domestic highs will be whether he can deliver on these promises and whether this massive youth constituency which she has to some extent managed to bring behind him is still behind him in five years time because young people need to get jobs. They need to be able to get married. They can't subsist on promises forever. So I think bashes gang to be the key determinants of his credibility rather than some of the things looked at with more interested in the broad. We'll talk more in the second part of the program about M. B. S.'s vision for Saudi Arabia and also about his chances of actually implementing it. But before we get to that. Ali. I just wanted to ask you to go back to that. Extraordinary Palace intrigue. You have been laying out for us as you've correctly pointed out. This is not a new thing in the history of Saudi Arabia of the House of Saudi when it flares up like this how much to ordinary Saudis one know about it or to care about it knowing about it is very hard. The it is very secretive monarchy. Very few things they do. We don't we have to take basically cues here and there and our summation of it in terms of people care. People do care because the country is going through maybe one of the harshest economic conditions in the country nothing that the NBA has been doing has worked in terms of economic. The budget is down. The Aramco stock has collapsed. The unemployment is higher so leaning. Nothing he had talked about the promised has come to fruition. So people are disappointed. People thought including myself. Something's going to happen this opportunity but I think he had huge failing because of his personality he basically waged a war on Yemen and MS executions protesters on human rights activists. And so on. So you are looking at the person who is extremely nervous about the same time extremely you know. He has a lot of guts doing things that people don't think any Saudi ruler would do and he has the support of London Washington and A and Egypt. Oh that's support gives him really a free hand in doing basically anything he wants and he has not suffered personally any personal consequences for anything he did. He will have to face the music very soon when economic and people start speaking out especially I see. Yemen is a very important indicator if London and Washington decided to reduce their support and that front if that changes then that will really destroy his legitimacy and his basically powerful position in the country visit the people and visibly his own cousins and you will see sort of Revolves here and there. And basically you'll have a chain reaction of events that will lead to a very bad conditions in that country Elliott Lamad and Laura James. Thank you both for the moment. We'll have more from you later in the show. You're listening to the foreign desk in nineteen thirty eight. A team of engineers from standard oil of California sank a speculative well at Jebel Dhahran in the Saudi desert abutting. The Persian Gulf. They found the first fifteen hundred eighty-five of the two hundred sixty seven billion barrels of oil that Saudi Arabia is presently estimated to possess ever since then the West in general in the United States in particular has taken an extremely keen interest in Saudi Arabia. Billaud and Middle East analyst and editor of Arab digest charts the evolution of the relationship between the West and Saudi Arabia which mild mutually beneficial has not always been mutually affectionate. It is in part a western creation largely because of the discovery of oil. However if you accept that interpretation you exclude a rather extraordinary figure sewed the founder of the Modern Day Kingdom and he had already done and remarkable job defeating various tribes consolidating the Saudi peninsula as came to be called and so I think that it was both a Western invention but equally it was the might and the strength and really the wiliness of this owed that created what we now know as Saudi Arabia. Think that Western powers did underestimate Saudi Arabia that the assumption was that we created you. And we will break you. I think the really defining moment in the way in which the West see Saudi Arabia and the relationship it must be seen through the prism of the United States. And there was this remarkable meeting on a warship and the Suez Canal in February of nineteen forty five between in the sowed and Franklin Delano Roosevelt conclusion to the historic yelled conference as a plane carries President Roosevelt to Egypt solidify ties in the Middle East. An representing Saudi Arabia comes even solve and a destroyer put at his disposal first. Us vessel of its kind of passed through the Suez Canal during this wall and at that meeting Roosevelt was interested in two things and presumably centered on the vastly important question one was oil and the second was a homeland for the Jews. The full horrors of the Holocaust were just beginning to dawn on the West outfitter. Just been liberated and really you. Can you can begin to date the closeness of the relationship of America very much from that meeting. Now it'd be sodas I said was a wildly one leader. And in one thousand nine hundred fifty he threatened to nationalize oil and the result was fifty percent of what then became Saudi Aramco. And when you then continue through the decades to nine hundred sixty the creation of OPEC ordered and then we go to nineteen seventy-three. Good evening the Middle East war produced developments all over the world today. The oil producing countries of the Arab world decided to use their oil as a political weapon. They will reduce and the war. The war with the Americans backing the Israelis the result was that the Saudis then ramped up the price of petrol by five times. It was running about three dollars a barrel. It went to fifteen. The Saudis realized then that they had a real weapon in their hands and the Americans realized that the Saudis were prepared to use that weapon so it was a kind of comparable trade-off you give us the oil we've got your bags as a true and trusted ally. Saudi Arabia has grown into one of America's largest trading partners the commercial and economic power. That we exert in the world spurs enterprise and bolster stability. I'd like to take this opportunity to express admiration for the responsible manner in which Saudi Arabia has conducted its economic affairs king. And I think that that relationship I mean had its ups and his downs is every relationship between friends and allies have. That relationship held pretty firmly even through nine eleven and you recall at fifteen of the nineteen bombers were Saudi nationals but the Saudis had backed the Americans in their wars in the Middle East. They'd come through and nine hundred ninety one. They were there in two thousand and three so again. Their relationship continued. I think pretty strongly now that situation held I think until Obama Barack Obama became president back to the lead. I'm Jake Tapper. Let's turn now to our world lead chilly reception. As President Obama arrived in Saudi Arabia today for a summit of Gulf countries there were no kisses from the kingdom or even a handshake from King Salman. The way he did when he took a rather different view to the Saudis. He called them. I think what was the phrase so-called allies at one point? He was frustrated with their behavior. Here's pivoting America towards the East towards looking at China and the the emerging threat that China would pose posing aside from Iran of course and the Iran peacedale which was his legacy project that really spooked the Saudis. That America was now sitting down and working out a deal with the Iranians Alabama head. A lot of reservations about the Saudis. He did back them as the Americans can you to do in the war in Yemen. I am reaffirming our ironclad commitment to the security of our Gulf partners but the Saudis never really liked Barack Obama for a variety of reasons. I think the Iranian nuclear deal with for them. The real point where they thought right. This guy is not are true and trusted ally then trump comes along and I think that well I know that the response from the ruling family was delight protection but if you look in terms of dollars three billion dollars five hundred. Thirty three million dollars. Five hundred twenty five million dollars. That's peanuts view. Increased it eight hundred.
"oil prices" Discussed on The Journal.
"Around the time of the arrests of MBPS's political opponents. The Crown Prince was also in touch with his brother the Oil Minister of Saudi Arabia who is in Vienna at the OPEC summit so his brother is sitting there in Vienna negotiating with some of the most powerful oil economies in the world. Trying to figure out what we're going to do with oil supply in the world and layered onto that the world economy's screeching to a halt because of corona virus. The biggest oil importer in the world is China China's economy ground to a halt in the first quarter. And then you have. Yeah this OPEC meeting where the fate of part of the world's economy is being decided and on top of all that Saudi Arabia's frayed agreement with Russia. The one that had been in place since two thousand seventeen was at a breaking point so in Vienna that day. Nba says brother was at the table with Russia. Trying to renegotiate a deal that would keep global oil prices high and so they're negotiating and the last. Saudi bargaining position is. Listen we're going to keep these production levels going for three more months so just put up with us for three more months. We'll do what we've been doing for a while and in three more months will revisit this and the Russians were not agreeing to that but that was what was on the table and then there was a phone call between NBS and his brother the oil minister where NBS said you know. Three moments isn't good enough twelve months. It was pretty clear the Russians weren't gonNA agree to three more months and NBS is saying twelve more months so NBA at home is basically squeezing. His rivals is telling people you know. You better listen to me or else. And he essentially is telling the same thing to the Russians which is listen. Not only do I want to keep production where it is now. We're going to do it for another year and basically you agree with me or not. But that's what we're doing and he phoned Putin what happened there. We'll talk to him. I mean this has been a you know an interesting thing. I mean you know these. Look these guys in some ways. They're made for each other right there. Too Strong willed autocrats and they really didn't negotiate and so the Russians. Were just not going to go along with it. And there's not really much more talking. Dan The Saudis. Come out and say well. Actually we're going to do is we're going to Jack up production if you don't WANNA play with US. We're going to take our ball and go home. And if you don't want to talk to us you don't want to do our terms we're gonNA blow up the whole system and they did this past Saturday. Saudi Arabia launched an all out price war. Saudi Arabia floods the market with oil despite waning demand. They've gone nuclear here. I'M. They did everything they could over the weekend to do and achieve the objective that we're seeing right. Now which is this plummeting price. Not only did they go into the biggest decline in oil since I nine hundred ninety one. Which was the first Gulf or when that started so it was unbelievable. This price war hit as global markets. Were already incredibly worried about the corona virus epidemic. And one of the most puzzling things about Saudi Arabia's decision is that one of the countries that could be most badly hurt by declining oil. Prices is Saudi Arabia itself. What DOES THE COLLAPSE IN OIL PRICES DUE TO THE SAUDI ECONOMY? Well so the government is a dominant force in the Saudi economy and the government basically gets its money from oil. And so it's going to be tough on. They're going to be cutting the budget cutting all the subsidies all the Saudis get and It's could potentially be painful. Why would he do that? Boy I wish I knew it asserts. His power he can do this. You can argue. He threw a fit and said fine. You know we are going to pump out a lot of oil right now even though the world doesn't want it. It's the worst possible time to be jacking up. Production we're GONNA do it and basically you guys are all screwed. The question is was there some deeper strategy behind this or was he just annoyed at the Russians and he did this crazy thing. It's hard to know but you know this was pretty dramatic. I mean he's playing havoc with you know the world's most important commodity at a usually vulnerable time in the global economy for this story. The Wall Street Journal attempted to reach the parties involved and none provided comment. Meanwhile there are no signs that this oil price war will end soon. Both sides doubled down this week on Tuesday. Russia announced. It could start pumping half a million more barrels a day and on Wednesday. Saudi Arabia hit back. Unveiling plans to boost oil production by a million barrels. A day.
"oil prices" Discussed on The Journal.
"So we've got all of this piling on and there's going to be a lot of pain. What was the reaction like from Wall Street analysts and oil officials around the world? Some of the words. You don't want to repeat on a family podcast but no one had ever seen anything like it. Ken Brown is our financial enterprise editor. You saw oil prices collapse. You know causing people to lose billions of dollars investors to lose money changing dynamics for drivers for oil drillers for everything it was. You know pretty unbelievable this oil price. War couldn't have come a worse time for the global economy and the decision to set off. This war was made by one man the Crown Prince of Saudi Arabia Mohammad bin Salman. Here's a guy who is sitting in. Riyadh in this kingdom and then he can turn around and basically blow up the world oil market. He wants to be in power and he is like listen. I'm the boss is nothing you can really do about it today. On the show with the world economy on the brink. Why did the crown prince start a devastating oil fight? Welcome to the Journal. Our show about money business empowered. I'm Ryan I'm Kate Linebaugh. It's Friday March thirteenth..
"oil prices" Discussed on FT Banking Weekly
"Into his very much rich rich area of expertise and we're reputation was made. Yes and what betting is that another banks are going to be exiting this type of space. Cutting their investment banking and advisory services slashing. Their research teams off the MIFID on that they can pick up a lot of this business Kind of is dropping out by default of the more traditional listed banks so whether or not they'll be successful take a few years to find out but they've certainly been spending enough to try and make a success of it so Bob Diamond has a lot riding on this venture in the U. K. M. His Atlas Mara African Banking Group is not doing particularly well has been trading down since it was created so If he's going to get this multi pronged approach to work. Yes start showing some profits on the bottom line and he's been fairly colorful journey. Mr Ritchie is a high profile characters. Rice goes for me. Well aware exactly one of the stories about him it was. He was banned during his departure. From Barclay's selling seventy million of his bodily shares he wasn't allowed to go to Cheltenham. Where as you correctly pointed out he probably is today. So rumor has it. He stayed in his hotel room in Cheltenham. Still dressed up to the nines chatting with all his mates there so Yeah it promises to be. Certainly a more eye-catching time for Pamela Gordon. Especially since you're he'll be there and his bright suits and his Trillion sunglasses wherever he goes but you know he was a a successful banker in his own right so we shouldn't denigrate his actual talents. Moakley absolutely and we know how much is being paid disease looking to buy lottery tickets? He was once photographed. Well he won't be paid forty four million as he was famously in two thousand and ten Barclays by Imagine Him and his boss will of work taty mutually agreeable compensation package edessa. It's an Italian group to to all parties. Thank you very much indeed for that. And that's all for this week. And that's all from banking weekly. So my thanks to Stephen Morris to lure newnan and Nick Magor and especially guest this week. He's very Scotland Rhumba. You can keep up to date with all of the latest banking stories. It's www dot F. T. dot com ford slash banks and from next week lookout episodes about pulled cost behind the money. Banking weekly was produced this week by Andrew to Jarvis and bring turn.
"oil prices" Discussed on The Current
"There are as you can imagine a lot of Canadians worried about their money right now. Talk of market meltdown. These are nervous times. Deputy Prime Minister Christopher Freeland acknowledged that in question period yesterday here. She is speaking in the house. The Corona virus is having a serious impact on the global economy and on the Canadian economy. Canada's strong fiscal position Qian's we have the firepower to support our economy. And we will. Benjamin title is Deputy Chief Economist at CIBC Capital Markets. Benjamin Good morning to you. You just heard the view from the West and how rattled people? There are By what happened yesterday? How were it should Canadians? Broadly be about their investments. Right now I think that the first thing to do is not to panic. We've been sweet before joing solves and two thousand eight the crisis and when you're in it you're not sure how you can get out of it and then you get out of it and we will get out of this crisis that will be over. We don't know exactly where nobody knows. Nobody even pretends to know given the fact that each virus has its own story on however this'll path and I think that panicking now when it comes to selling your holdings in the stock market would be a mistake. Is that easier said than done when you see the market stop yesterday because the emergency brake is pulled when they dropped so quickly absolutely and people are panicking and rightly so because we haven't seen it in a long long time but against selling this point of the game is a big mistake. People do it all the time and then the regretted so. I think that we have to take a long-term perspective and if you have a long-term perspective namely beyond the next two or three or four months if a year from now you and I will be will not be talking about the virus. It is very possible that there are many many opportunities in this market today. Martin talked about how wrapped up people's investments may be in the energy sector for example. How heavily are those Canadian? Mutual companies and mutual fund companies invested into the sector. Well they're not secto is big. But it's not as big as it used to be and that's actually a good thing when it comes to this kind of Crisis in two thousand fourteen when we are the crisis in those sectors the impact on the TSA the impact on the Canadian economy as all was much more significant than it is now. Because those all is not as big. It is still significant. I'll ever again. We have to look at the duration of this crisis. We have to remember that this issue between Russia and Saudi Arabia probably will not last forever. Nobody wins in this kind of prices not the US not the Chinese not Opec and not Russia. Eventually they will come to their senses. This is a political a game that will pass and I think that a few months from now prices will go back about forty dollars about that will help about talk so again. We tend to panic and we don't see the way out but there is a way out those kinds of prices of energy. Not Good for anybody. We heard talk from Martin that he believes this will lead to a recession are we. There already do believe yes. I think that it's very possible that we are always recession. You have so many things happening at the same time you have. The energy story happening just recently. Clearly the divide was is a major issue and we don't know it probably will get worse before it gets better when it comes to the virus so it is possible that we are already in a recession and the trick is of course. What do you do so interest? Rates ARE GOING DOWN. And this is very important to communicate. Defectiveness of monetary policy is diminishing namely ability of low interest rates to help. The situation is not as it used to be that when even before the crisis that was the case because we have a generation of Canadians that never experience high. You'll even rising into swift for them. Those extremely low mortgage rates. That's the nome so it's not as exciting as it used to be. What I mean by that is that when interest rates are very low to start with. And you cut them the effectiveness there and now we have the crisis. We've seen negative interest rates in Japan Europe. And it's not helping. I really hope we will not get negative in the. Us or Canada simply not help him and therefore fiscal policy is the only solution for this kind of process and you just mentioned that the budget is coming. I'm not sure it's coming. I'm not sure that The finance minister is ready remember. This budget is already written and We have to update it so surprised if they would postpone it and come up with all kinds of measures and I think that those measures would be significant. Have listened to what Bill Maher. No the finance minister said yesterday. What I want people to know is that we have a very strong fiscal position. The Canadian economy of course has produced a significant benefits over many years. We also know that we have a very strong banking system so that is a positive. I've been in touch with banking leaders in fact pretty well. Every day and that system is strong and continues to be a source of strength for our economy We're working on on some responses right now. So I think what you'll see from us is a continued approach whereas we have measures that we think are appropriate to roll out based on the facts. And we will do so. And you'll see some things this week. Martin suggested that the finance minister was brushing off the situation that Canadians find themselves in Benjamin Towel. Is that the case taking very seriously and is absolutely right that our situation is much better than many other countries over. Fiscal situation is much. Don't get clearly. Banks are much stronger so I think we will see something coming from finance from Ottawa. Something something what you said that the budget could be delayed or perhaps postpone what what specifically could come from Ottawa. Well I don't think they will go with tax cuts because you have to go with something that you can reverse here. So maybe some sort of magic modification to the IAE system basically make sure that people get paid if they are sent home. Maybe a one of transfer of health the money to promises. I'm not so sure how to be creative. But it's something that you have to be able to reverse because this is just responding to a crisis if you start cutting taxes you cannot raise them again and that would be a mistake but going back to our position. Our position is actually very healthy. Fiscally we can allow the budget to go up and we will be okay two years ago three years ago in the. Us President Trump. Spend money that he didn't have in good times and now they will struggle to find the money to support. The economy will do it but they will get into even deeper deficit. We always good position to do so. You said that things are going to get worse before they get better that we're already perhaps in a recession. I think there are a lot of people who are encouraged by by what you're they're hearing so just in the last minute or so that we have. What should people be doing? Should they be preparing for further shock? Should they be worried about about employment? Should they be worried about? Perhaps putting some money away just in case that this kind of crisis is a wake-up call for make sure that we raise our settings. The savings rate in Canada is way too low. And if you're able to put money aside for this kind of situation so. This is a wakeup call. This is basically something that we have to learn from this crisis. I do believe that we will get out of it and I think that the many opportunities. The market's panicking now is not the right thing to do. It's possible that two three months from now they've I was stereo. Will Not be there and things will go back to normal. I suggest suggest the energy story would not be with us for too long so just follow the situation. It might get worse before it gets better because more people will be tested and we will get some results but I think that panicking now is a mistake. Benjamin tell good to speak with you. Thank you a pleasure. Thank you Benjamin. Tall deputy chief economist at CIBC Capital Markets for more CBC podcasts. Go to CBC DOT CA slash podcasts..
"oil prices" Discussed on The Jason Stapleton Program
"You can't negotiate it. No you gotta go to a realtor who's GONNA take six percent. You're going to lose another two percent a year to inflation. That's if you're lucky. It's probably going to be closer to three or four percent inflation. That means in order for you to make any money on your house at all. You've got to be appreciating that house at seven to eight percent a year year over year almost impossible. It's not an investment. A real a home is not an investment. It's only an investment after you sell it up until it's a liability. That house is a liability to you because every time something breaks every time. The market declines every time there is an expense. It doesn't put money in your pocket. It takes money out. That's what a home is a home as a way to saddle you and I know people are shocked to hear this there. They're going crazy right now. I don't care I've been talking to preaching the stuff to you for two solid years and finally we're starting to see some of the effects and so I'm going to get a little bit more aggressive with you because I think you need to hear it take. The oil market exists freaking out about oil today. What's going on with oil for? Here's a deal. Demand is way down because China. Who's the biggest importer I think? They import ten ten ten billion. What is hundred million? What is some a bunch of barrels a day and because of the Corona Virus? And that scare everything. Shut down over there. The air quality is cleared up. But they're not buying oil and so what? Saudi Arabia wanted to do. Was it wanted to decrease production keep prices high? Why does it want to do that wants to do that? Because it needs oil to be at somewhere around sixty dollars a barrel to stay profitable. I gotta look at the numbers again. That's typically where it is Maybe a little less than point is like they needed to be at a certain level to stay profitable. Russia's looking added and saying no if we cut production that's going to allow the US shale oil producers to produce a profit and we don't like the fact that America is now the number one oil producer in the world. I never mind the fact that the shale businesses largely sham in itself. But be that as it may. We're producing a lot of oil here and Russia's said you know what we don't agree with this. We think that we need to keep the prices low so we can kill the shale oil business here in America because America is the biggest threat right now. Putin is playing a long game. Sees I guess he's GonNa? He's willing to hurt himself in the short term number one because he can draw oil out of the ground cheaper than the Saudis can and secondly because he believes that in the long term. It's better to put pressure on the US. Oil Market and to eliminate that and to mitigate that than it is to make maximum profits today. The Saudis don't like this so they responded by increasing their production to drive down the price of oil to punish Russia and Russia's. Now turning around and saying okay we can play that game too and they're increasing production. This is causing oil prices to plummet down fifteen percent today. Crude oil is down fifteen percent. Why is this important? What everybody's freaking out about this? Oh my gosh. The oil markets taking on the stock market's crashing. How does this affect your life? Think about what's going to happen now. Well you'RE GONNA have a lot more dispensable income than you had yesterday because if the price of gas goes from three dollars again unaware of what it is for you guys here but if it goes from three dollars a gallon down to say a buck fifty and you are normally spend in. Save Four hundred dollars a month on gas well now. That price goes from four hundred to two hundred. That gives you an extra two hundred dollars in your pocket you see for most of us. Gasoline and oil based products are are not an option is. It's not dispense. It's it is not disposable income. It's not a discretionary spending. We have to put gas in our cars. We gotta get suzy in Johnny to and from school we gotta get to and from work. There's very little that we can do. Especially if you live outside of a major metropolitan area to cut back on the amount of gasoline the you consume you can do it to a point but overall you've got us there's a certain amount of driving it has to be done. It's non discretionary spending so what we're essentially doing when oil prices fall through the floor is we are moving non-discretionary spending into the discretionary category. It frees up cash now. What you should be doing with that. Extra money is reinvesting in yourself again. You just give yourself a two hundred dollar a month. Increase in your In your despite a disposable income you ought to be using that to grow your own human capital. What most people will do is they will spend it somewhere else so the idea that somehow the economy is going to suffer because oil prices go down is a fallacy. The oil market will suffer. People who work in the oil business will suffer. But you and I will not suffer because what is it gonNA mean? It's GONNA BE WHOA now instead of putting gas in my car. I can buy some new clothes or I can buy a new TV or electronic equipment. Or I can take the kids out for a steak dinner instead of McDonald's. That's the kind of stuff that people end up doing. They don't save money. Americans don't save human beings don't save they spend they consume and so the notion that somehow a deflationary effect on the oil market is going to negatively impact. You is crazy and yet you you look at you look at the distracter in the world today. And that's all they want to talk about how it's GonNa kill. The economy is killing the stock market. And know your course. You're freaked out because the little money that you do have is wrapped up in the stock market. Because you can't get yield. You can't get returned anywhere else and now you lost fifty percent of it now you lost twenty percents all my. Gosh. It's we all year to accumulate that money. Now it's gone. What should I do? Jason What should I do? Invest in things. You understand. That's what you should do. What have I been preaching to you? Control the source of your income get started on your own little business. It's cheaper and easier than it's ever been. We are starting to see. The rumblings people are starting to freak out loyal low oil prices declining stock market and high higher unemployment benefits me and my business. Kay I'm trying to save from the negative impacts of a recession. My business is recession proof. My business improves as more more people realize that they are not safe. This is not one of those times when I wanNA look at you and say don't doubt me I'm right. I'm always right because it doesn't ever feel good to be right when somebody else's suffering that doesn't that doesn't make me feel good. What does make me feel good? As hearing the stories of you guys who are starting to get wake up and realize what's happening and who are taking positive action to fix it. Okay because the only thing that is going to save you in the next recession is your are your knowledge in your skills. That's the only thing and right. Now you're in a really good position. Why because there is going to be a lot of time and you're going to have a little extra money. So as the market declines people freak out everybody starts to kind of tighten their belts up a little bit as oil goes down in price. You'RE GONNA have extra dispensable income. And as I said I don't think that this is worth the catalyst yet. I don't feel like we're at the tipping point where we're GONNA fall off a cliff and see a fifty sixty percent decline in the market. I think we still have negative interest rates. We still have stimulus programs. That are going to come out. We'll see the market is waiting for that. So it can rebound a we get we get sometimes you call him a dead cat bounce which is where you you see the market rally before it comes down again. There will be a point. Still where people will think. We're okay and we'll start to see a recovery and again it depends on how the Federal Reserve and the and the International Monetary Fund respond to this crisis will determine how long it takes to actually finish because if they pour more dead onto this fire which is what they're gonNA do If they inject more heroin into our economy which is what they're gonNA do There's no telling how long the market can survive survived a lot longer than I thought was reasonable or rational but then that doesn't matter does it doesn't matter what I think is reasonable rational just matters what is so you. Things are scary right now. A lot of people will be overreacting and they'll make really poor choices. You on the other hand are going to remain calm. You'RE GONNA listen to this show so you know exactly what is happening. And what's going to happen tomorrow and you will begin to prepare for the inevitable so that you can capitalize on recession rather than being victim of it. That makes sense fair enough. Okay got a super chat for those of you who are watching on. Sorry my voice horse into a Galaxy Game. This weekend in screamed a lot. So I'm for those of you who are watching on on Youtube if you'd like and subscribe and then hit the little notification bells you hear. Amigo live and then were for the rest of you were streaming. Live streamed live every show to the private facebook group and also to the facebook page while power and influence with Jason Stapleton and the Youtube Age with the same name. And if you follow Jason. On on twitter we stream into periscope as well. We got a supertanker from rocky. He said two dollars superjet an artist's setting up an se store what's recommended resource and artists sitting of an see store. Yeah just have good art and and and and start posting it on their see the big trick in the trick is to have a product that people want and to then know how to promote and market yourself see. I imagine. You're pretty good artist. I'm going to assume you are and but I bet you're not all that good at marketing or branding or sales right that that's probably not your forte. The problem is if you're going to be. There's a difference between being an artist and being a business owner who sells art K. If you're going to run a business that sells art sells your own art or other people's are it doesn't matter skill sets have to be different so if you're going to sell your own art you have to be a decent artist and then you also have to be really good at marketing and sales to things that nobody wants to focus on And so if you have the first one down and you have a product that people like and are willing to pay for the second thing you gotta learn to do is how to market and brand yourself so that people will perceive you as having a a product that they would like to own. Hey So I'll give you an example of this. So first thing yeah understands what's interesting brand and a commodity see art as art as a commodity. I can go and buy art for ten dollars. I can buy other art for ten thousand dollars. What's the difference?.
"oil prices" Discussed on The Indicator from Planet Money
"Late um you who start to see a pickup in oil dimond around the rest of the world particularly in 2016 the global economy stalls to pick up we start to see a big acceleration in global trade happening in 2016 i'm not drawing the demand for fuel was well supplies going down demand is going up so the price starts rising again that the oil price doesn't go back to anything like where was before it now stays in a range of about forty to sixty five dollars a barrel and then about a year ago opec that's the cartel fourteen oilproducing countries agrees to start cutting how much oil they produce and they're joined by russia which is not a member of opec but still a country that produces a lot of oil last summer the price of oil started climbing john says there are two reasons opec production cuts really don't kicking uh during the summer of 2017 uh and through through to the end of the year you thought to really get a big impact from from opec action at the same time the hedge fund community again stalls to become very bullish about the outlook for will so now that the prices climbed back to nearly seventy dollars a barrel the question is can keep going up john says that swings in oil prices are mainly driven by global supply and demands but that in the short run the price can overshoot because speculators like hedge funds have bet so much in one direction and john thinks that may have happened here the market waiho who who only applied on the down followed who we know that at some point the had hung will over boy and the point is will correct loa whether we reach that point yet is cool billion billiondollar question regardless of what does happen in the short term john says there's another much more important question about the longterm one of the key questions going who would he's going to be weather rule nor cracking can we all of the growth in global oil dimond uh going forward over the coup.
"oil prices" Discussed on The Indicator from Planet Money
"Um when oil prices are high john says oil producers have an incentive to increase how much oil they take out of the ground and sell it and that's what they did especially the fractures in the united states fracking of courses this newish way of getting oil out of the ground by breaking open shale rock it's controversyl for environmental reasons but what every think about it it does make it possible to produce a lot more oil than before an a key thing about fracking it's much easier to stop and start drilling a traditional well so when the price of oil shut up a few years back the fractures got to work we had a huge drilling boom um in ramble uh very hard period of oil prices we had a motor showed ruling particularly the united state across north dakota heck who who oklahoma new mexico i'm at produced a huge burden in oil hoopla by the us was producing more oil than ever at the same time despite all kinds of unrest in the middle east the oil just kept flying in june of 2014 the price of oil was a hundred and fifteen dollars a barrel a yeah here and a half later it had dropped all the way to twenty six dollars van wall one of the laundry home in oil prices on that we've ever fee this was clearly the bust phase of the boomandbust cycle that the price fell so much for so long surprised a lot of people but just like the price of oil tends to swing too high when it's going up this time it swung too low when it was going down fact the price war went so low that oil companies would actually have lost money by selling it so some of those tracker started slowing production and at the same time oil was so cheap that people started buying more we actually quite a big acceleration in in wilq oil demand growth worldwide we fear with american motoring talking to you the called mold but more importantly daunting to buy bigger vehicle me more hugh because it's so cheap in other words oils cheap so gases cheap so they buy cars that can guzzle a lot of gas abdullah.
"oil prices" Discussed on The Indicator from Planet Money
"Last june the price of oil was forty four dollars a barrel it had been around that price for about a year and then it started climbing earlier this week it hit seventy dollars and that's today's planet money indicator the price of oil is now just beneath seventy dollars i'm cici hanoch smith and i'm cardiff garcia the price of oil is a big deal how much you pay for heating or a gallon of gas or a flight home all depend on it but it's also famously volatile that in the last six or seven years it's taken an incredible rise then the show those behind him and what's gonna happen next support for this npr podcast in the following message comes from slack where work happens all over the world nomura losing time context switching more than 8000 apps seamlessly integrate with slack so that's less time jumping between tools and more time getting things done more at slack dot com there's something really important to understand about oil prices one of the things about lulu market is that right from the very beginning right from the very her welldrilled in 1859 it has been characterized by these big clunky of boom and bust that's john camp a senior analyst at writers and he says just in the past few years we have seen this massive boom and bust cycle repeat itself before the middle of 2014 we'd had three years of exceptionally high oil prices 2011 2012 2013 in the hull 2014 we'll prices averaging well over one hundred dollars a barrel which is very high in historical terms.
"oil prices" Discussed on P&L With Pimm Fox and Lisa Abramowicz
"When you look at where where energy companies are placed relative to oil prices unless you're expecting them to revert back to you know the very well levels we've seen it makes no sense there's some running room there i think that's a growth sector going forward all right mentioned you know this idea that growth versus value uh are there any industry groups in value orrin growth that do you believe have missed out and deserve a second look at it this is this is hardly a missed out trade but when you look at financials awad wanted the narrative out there has been around the interest rate curve at tower but i think the bigger story here the one that is being messed he's the deregulatory okay financials as a group have been really crippled by regulation ever since the crisis did give the simply have not been able to operate in the way that they did precrisis and by and large that's been a good back but with deregulation gonna see these companies unshackled in a lot of business opportunities that had to pass on will now be doable i think decrypt deregulation is the big story for financial's 'cause i think you'll hear about that more and more while we look forward to hearing about it from you as well brad mcmillan sheets investment officer commonwealth financial network managing more than one hundred ten billion dollar some walfare man this is bloomberg the today the fixed income demands more than a fixed approach pit mean staying ahead of ever changing markets making the most of traditional strategies that also looking beyond them not just finding opportunities for investors but creating them.