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tv   Bloomberg Markets Americas  Bloomberg  April 11, 2017 12:00pm-1:01pm EDT

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from bloomberg world headquarters in new york, we will you from washington to san francisco and moscow. his are the top stories on the bloomberg. geopolitics, janet yellen is weighing on investors minds. stocks are sliding. apple is the biggest waste decline or. come up this hour, david westin will be speaking with steve schwarzman and jack welch from the white house after their meeting with donald trump. later, we will have the north american debut of the lamborghini. it just smashed the record.
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foroes on sale this summer $250,000. we're halfway into the trading day. taylor: we are improving a little bit. as you see, the nasdaq is down 1%. of course, .7% in the dow jones, i am going to stick with the transportation index. we've been talking about that united airlines story. the video went viral. that's not the only thing that is pulling down that sector. the fedex freight she came out. they want to look at an aviation style standard for self driving trucks and automation. that is something pulling down the shares. i want to go back to the financials. we've been talking about some of those i.t. companies.
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we are heading into bank earnings thursday. take a look at how the financials are doing there. fargo is continuing with the fallout from that bank accounts scandal. as we head into bank earnings, analysts are saying yields should be helping. that leads to my next chart. looking at the correlation between the yield and the financials. the yield is coming in a little bit today. still going back about a year, you will see that correlation. as we head to bank earnings thursday, this is something we are looking at. vonnie: thank you for that. donald trump welcome ceos to the white house for discussions about strategy for federal agencies. let's head over to the reporter
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at the white house word -- white house. the second formal meeting with many ceos, is this a hint that we might get some actual policy and frameworks in the next week or two? it's possible. in earlydent has been stages of crafting plans when it comes to tax reform. the present has been seeking a lot of input on that as well as his upcoming infrastructure plan. $1talked about spending trillion in a partnership fund for a massive new infrastructure stimulus program. withems like this meeting 20 ceos from companies from walmart to gm was him getting an what from a certain set of stakeholders about what these plans might look like. it remains to be seen what the white house is doing with these ideas.
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it's part of the process. right now, the president's agenda is mostly in a rout in congress. how does that make you more popular with the people needs to win over in congress? you the ceos have any leverage western mark >> these are from major companies that are across the country. they have influence with representatives in the house. i will give you one example. one of the big fights on capitol hill right now is the border adjustment tax, whether it's going to be included in a major tech -- tax reform bill. one of the companies fighting is walmart the ceo met with president trump today. houseare members in the and senators who are skeptical of this. the legislative
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process. this white house is very eager for a big victory. a's on track to not have major legislative accomplishment. vonnie: heralding yesterday ,wearing-in of justice gorsuch that's not a legislative victory. they have another fight ahead of them. does this have to be gotten over? before have to be done they can move on to a really go she is? whatever it's going to be in terms of taxes or budgets western mark >> yes. returns four days before the government will shut down.
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they have yet to pass a bill to the house. they have not passed a bill through the senate. they have yet to cope with a proposal. this could be a challenge. we have appropriators working behind the scenes to get this done. there is some optimism from democrat and republican leaders. there could be provisions that scuttle something like the funding of planned parenthood if the white house for a border wall that good alienate democrats. they need least am at -- eight democrats in the senate. we are not going to hear anything about something like taxes were infrastructure until the government funding is done. numbers are back home in their districts. vonnie: assuming republicans get to gather and the on what they are going to present, you have to win them over to a certain extent. deadlineleverage the in order to get some of his preferred proposals passed?
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>> he said -- could legislate that. if he wants to, he can play some hardball and say if you don't include the border wall funding, i'm not owing to sign this. at this budget, cut this agency or not going to sign the bill. it would be unusual for a sitting president to threaten to shut down the federal government that he oversees. that is not something that has tended to happen before when his party covers both chambers of congress. we have many government shutdowns over the last half-century. it would be politically tricky for him to do that. he could if he really wanted to. vonnie: how much political will is therefore the border wall and
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that adjustment tax mark >> let's start with the wall. that is something he compared -- camping very emphatically on. the skepticism you see on the republican side is due to the fact there are parts of the border where it will be difficult to build a wall. there is the rio grande river. there are legislators the want all parts of it to be a wall. maybe it could be offense. we won't soon -- get behind that. this makes it very difficult. the border adjustment tax, they are waging a very fierce battle to kill us. this is before gets off the ground. paul ryan is committed to this. after public and seem to have some level of support. it's not clearly haven't
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appeared senate republicans are very unenthusiastic it's difficult to see how this gets through the upper chamber. we don't were the president stands on this. he is spoken in the usually about it. he has not said despite many attempts by the republicans supportive of the see of him to say where he stands, he's not said it. vonnie: if i could move away a little bit in the background, we have rex tillerson in moscow. this is happening the same time. the president is focused on the mystic issues today. later on, those ceos go home. he will talk to rex tillerson. big partnow, i think a of what he is dealing with is the diplomatic fallout from president trump's missile strikes in syria and response to the use of chemical weapons. this was president obama's
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redline that he did not end up enforcing. congress did not him him authority. president trump is made a significant about face, very sharp change in foreign policy after spending the last two years speaking emphatically against u.s. intervention in the middle east. he described it as something that backfires. he described it as a waste of money. this was a big reversal for him to do that. secretary tillerson is doing the fallout. russia is involved in that region. i suspect that will be a big part of the conversation. vonnie: of course, the g-7 statement today, they made comments and there was a response from russia as well. what's going to change the political landscape following these attacks and syria? weekything changing this in any fundamental ways?
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this is being taken in by that amir putin for example area we are going to go back to the status quo. >> the relationship between the united states and russia or the relationship he seemed to want to have with russia, a friendlier relationship, it seems to be strained. we don't know how russia is going to respond. we don't a what the ultimate strategy in syria is going to be. will he followed this up with further military action western strike far, his missile got a lot of support in congress from democrat to said it was proportional and it shouldn't go unpunished. they are insisted he go back to congress to get authorization. a lot of open questions are
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going to be determining the answer to your weston. could he continued to launch attacks of his own people with chemical weapons? that could provoke president trump and to further action. thank you. let's check in with the first word news. as reporting, the secretary of state is in moscow with a message. russia should sever its ties with syrian president bashar al-assad. >> they have aligned themselves with an unreliable partner. they had signed the chemical weapons accord them cells. the russian government has signed it. now, they have made the russians look not so good. >> he was in italy to meet with
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foreign ministers from the group of seven nations. eight members of extremists cells of arrested in connection with the bombing on the subway in st. petersburg. that's according to the country's intelligence chief. this is russia's second-largest city and it killed 13 passengers and injured dozens of others. no one has claimed responsibility. 10 targetedrains of for wanting. the suspect in that truck crash killed four people admits he committed the crime. that is according to the associated press with cited -- which cited his lawyer. his application for asylum was reject it last year. u.s. attorney general jeff sessions will take a tour of the border with mexico today during a visit to arizona. he will tour rough terrain it, 70 miles south of tucson.
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he has made immigration enforcement a key justice department priority. he will speed up deportations of immigrants in the country illegally or convicted of federal crimes. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, this is bloomberg. i am mark crumpton. vonnie: thank you. coming up, david westin will be speaking to steve schwarzman and jack welch from the white house. as is bloomberg. ♪
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vonnie: this is bloomberg markets. the meeting at the white house
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with donald trump and the ceos included infrastructure. reportmanagement has examining the infrastructure in the united states. joining me now to discuss is the chief investment strategist at ubs. take us to the report. what does this say about infrastructure western mark -- infrastructure? we have a massive need to needs to be met. it is a competitive threat to the u.s. economy. we identified a number of areas where we think the u.s. has to make investments that are critical for a vibrant economy. we will take a step further. we talk about where the sources of capital will come from. we face capital constraints of interloper in we have budget challenges. we have an aging population. we talk about tapping into some
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private ones, whether it's a private public partnership. it's not just about where we see the need, but where we see the potential funding sources. retail could get involved with us. is ubs putting together some products that could open this whole area up? mike: it's too early to talk about any structure. what we are focused on is how we can vocus and access the private capital that has the means and the understanding to engage in this type of investment in its more likely to be limited to the high worth segments of the wealth population. there is $43 trillion of private and itthat could be set
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could be allocated for infrastructure projects. vonnie: where is all this money hiding? mike: it has been available for investment. incentives, there has not been the attractiveness for private investors to earn a reasonable rate of return. we see a lot of these projects viewed from the lengths of the public side. throughd to be met government. i think taking a more expansive approach to this use of funds, it will let private capital to access some of those opportunities. vonnie: what rate of return are investors seeking? what would you need to offset they would have to be competitive with alternatives. for example, if you're talking about portfolio returns, our expectation is in the mid to high single digits.
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some of these will be in that range. some will be higher. we have a real demand right now for incremental return, especially clients looking to replace lost income. we could see a replacement or follow-up on the bond program. what i think you will see is capital that is looking for incremental income that will invest in these types of securities. vonnie: thank you for that. we expect an update shortly. back to the presidents meeting with more than a dozen ceos. it is led by steve schwarzman. let's head over to the white house where david is with schwartzman. david: we're joined here by steve blackstone -- schwartzman. was he transmitting or receiving? steve: he does both.
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in this case, he was more receiving. these are terrific meetings. we have a group of remarkable ceos. it's not a photo op. we work between readings. in this case, we had a one-hour meeting for the meeting with the president with five cabinet secretaries. they had an agenda in terms of telling us what they are doing. do job was to help them their objectives better. we will share our knowledge base. we can talk about other areas and as infrastructure issues on education and trade. handledthe five areas one of those as well. there was a remarkable degree of interaction and positive sums
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and outcomes. we reported to the president. the secretary as well as people panels, he of those has a lot of editorial comments. he has observations and has people do things that were discussed in the group. please therybody was outcome of the meeting. >> it's not just taxes. mark: there are other issues that we need for a proper agenda. what do you think -- what do you take away western mark what message did you receive? steve: there is a lot of good stuff. we ought to go get it. he is on board with that. the people at the senior levels of the administration and the cabinet. david is there a sense of
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urgency from the president? as we've seen with syria and north korea, the longer it takes to get things done, the more you get distracted. is there a ticking clock? steve: these are very motivated people. there is no mas growing. they want to achieve things. that's why they are in the government voluntarily. the people who are in the corporate world, they are doing it to get something done. that's the motive or in everybody is on the same page. himself, he likes getting things that as quickly as possible. he is an action oriented person. sense, it's not sitting around discussing issues without action plans. david: you have to implement the action plan.
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did you get a sense of the timetable with tax reform western mark when will we have a plan coming out of the white house for tax reform is to mark steve: it's very complicated. if the numbers were easy, someone would rigid and send it to you. to a copy something in that area, there has to be something taken away. there has to be revenue to finance the tax cuts. there are different ideas. thinking about the trade-off. deliver it,uch more logical approach than trying to pass health care in 17 days. that is not going to happen. this is good for everyone. i also think there will be a circle back on health care.
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the publicity on that three weeks ago, it's dead and gone. it has difficulty being dead and gone. i think there is work going on in the house, how long that will take i don't know. people are talking and ultimately they should be able to get something out of the house, whether it goes anyplace in the senate. that is your call. david: what about the sequencing? will they hold tax reform up to get the health care? steve: it would be better from a scoring perspective. i think that's in the land of the unknown. can think of that happening. bonus. it makes life easier. sounds a president is looking at a comprehensive
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approach, not just tax cuts. people have said we can get tax cuts done faster. and ienses the president assume you would rather have tax reform, even if it takes longer. steve: when you're dealing and months, that's not long. that's only long until -- on television. it's not in the context of the kind of legislation issues. is ank reducing taxes fallback. david: is there any element that you regard as essential western i don't look at it that way. i don't know that anyone is in charge of that world did we sort of work with what comes out of the system.
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it's individuals who are powerless to affect that overall outcome. david: you have spent time with the president more than once. you come away from this meeting with a sense of up to mazuma? the end of the calendar year, , d have a sense of optimism by the end of the calendar year we could have tax reform? : i think you'll have something. knowing howcap of comprehensive it could be. we will see when we see. david: that is fair enough. let's turn to trade. there was a concern about the president and there seems to be less of one there. he mentioned nafta. do you have a sense that trade is less a threat to growth than
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it might've been? steve: what they are looking for is where they call it reciprocity. countrye dealing with a and they are charging you 30% costs, whether it's tariffs or other types of charges to bring something in, we charge 5%. we are as advantage by 25%. that doesn't sound fair. it's hard to make the argument on the other side. you can get that by the other people reducing or you increasing. is let's justtem compete and the best country wins. you have to have a level playing field. the playing field is not us a surly level in every case. ross who is heading the
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trade stuff is spending a lot of time to get to all the different areas, different countries and different issues to have reciprocity and equality so you hopefullyrade which from my perspective will expand. the world does better when trade is expanding. it's got to be equally balanced geterms of what it takes to into your country versus my country. it's a vault into a different system. americans have been on the short end of that for some after world war ii where united states with 75% of global adp. anybody getting better was a good thing david: one of the areas you care about is china. you have been to china a lot. did you come away with the sense
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of how things went? deadline.s the steve: i don't know, but i would doubt that would happen. floridathe meetings in at mar-a-lago were good meetings. i was there for some of it. trumpent xi and president seem to establish pretty good relationship. because therent will be a lot of issues that won't be easily decided but need to be decided by both parties. i think the chinese have a perspective on this that they are aware that this is important. it's important to the united states. there are other important things like north korea and the two
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countries are inextricably bound. we have to come to good outcomes. to do that, that ultimately need to be tiebreakers in each of the two countries. that is delegated to the present of thos president of those countries despite whatever system gets used to the final .et of trades and if the two individuals have a sense of trust and understand each other better, and the chinese system, that's very important. in our system as we have learned, it's also important. david: steve schwarzman, thank you so much for being with us. vonnie. you, vonnie: fantastic interview with steve schwarzman. let's go now to taylor riggs with the check of the markets. taylor: we are still seeing a little bit of a risk off trade today with the majors down, but
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often lows of the session, which is good. you will see nasdaq still down the most, down almost 100 points at one point. we are doing great on the dow. we going to the imac function on the terminal and you will see sector by sector, 10 out of 11 sectors are all in the red, led by the financials and the i.t. about thelked financials with wells fargo, bank of america being down ahead of earnings. wells fargo still continuing to face some fallout from the think fake account scandal. let's go a little bit back into the i.t. sector. we were talking about apple there. they are down for the fifth day of the road, the longest streak since november on concerns over their chips. two semi conductor chips that they are looking at our dialogue. they have lost a third of their value at one point. they have recovered on news that
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apple was making their own ships. they get 74% of their revenue from apple. i want to look at serous larger -- serous logic. wrapping up, i want to stick with the tech came. we will go over to facebook and snapchat. snap is struggling a little bit after news that facebook and instagram were trying to come out with a product to compete more with snapchat. it is called direct. i've never heard of it. snape is down about 10% in the last seven days, down six of the last eight days. still good to know that snap is still up about 21% since their ipo and they have not dipped below that ipo price yet. still the major averages down for the day. vonnie: i just sent you an answer graham direct. just kidding. that's taylor riggs. for more on dialogue at apple now, our bloomberg technology
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editor joins us from san francisco. a massive drop alastair. why on earth would apple drop in the first place? basically apple is taking components that they used to buy from other companies and designing them themselves in house. there's loads of reasons why apple would do this. battery life on your iphone and everyone was always complaining about battery life and they are going to design their own ships internally for power management. ultimately if it does a better job than dialogue, your iphone battery will last longer. vonnie: apple is taking similar steps with other suppliers. we saw that massive drop last week with another company. are there suppliers left that are terrified now? suppliersquite a few who are falling in trading today as well. a big european chipmaker is down quite a bit. irrus logic is down today as
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well. a couple weeks ago, imagination technologies was the one that got hit hard. it's the same story that not only does apple design the same component in house, but they actually hire some of the best people from its suppliers to pull this off, which is kind of a double blow for suppliers. vonnie: they used to be that if a supplier had a great idea or if a company was a potential competitor in some way that apple would just buy them or another company would buy them. why don't they just acquire these companies and trim the fat? is it a different strategy? alistair: they probably work out financially which one is best to go with. imagination technology fell more than 50% on the news that apple was going to do its own graphic chips. if it did wantre to buy imagination technology later has a $.50 price cut.
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beyond that, the more important point is that apple wants to control as much of what goes into an iphone or a mac as possible. thereason is because computing stuff we are doing on these devices in the future is going to take a lot of computing power. really put something together really well with a lot of other people's components off the shelf. these are applications for speed and security and applications as well -- applications as well for customers of apple. i guess it's good and bad in many ways. where are experts coming down when it comes to your personal information and apple having control over it? alistair: that's another religion point. really good point. the one of the reasons that apple started designing its own ships is that it has a special one where it a lot of the user information on the device rather than sending it to the cloud. the hardware steps
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to make sure that users's data stays on these devices. if you compare it to a company like google, google is quite happy to send most of our information and store that in the cloud. differentiating point for apple and it's going to push hard on the hardware and software side. vonnie: i do want to ask about qualcomm as well. we got a response from qualcomm to apple's allegation that qualcomm reached the market for chips. explain qualcomm's response. alistair: it is the same issue where apple is putting pressure on its suppliers and trying to cut costs to do more things itself. when you're talking about the company as a size as qualcomm, it's harder to do than a company like dialogue. like qualcomm's chip technology directly. forctually pays royalties
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a selection of technologies that qualcomm controls. it makes a lot more complicated. apple has been asking regulators to look into qualcomm, whether it's breaching antitrust rules. qualcomm today really hit that hard on that and made quite a lot of allegations that apple threatened it, lied to regulators about what qualcomm gets up to. vonnie: call come down 2% today. apple down 1.2%. it is a down market. thanks to alastair bar, bloomberg technology editor out there and san francisco. bloomberg first word news with mark crumpton. elementary school in san bernardino, california that was the scene of a murder suicide yesterday is closed for the time being. school district officials say classes that north park elementary are canceled for at least a day and tomorrow. the closure comes the day after a man walked into his estranged wife's classroom and opened
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fire, killing her and an eight-year-old student could he . he then fatally shot himself. a nine-year-old student wounded in the shooting remains hospitalized. china is calling on the unite states to stick to the paris agreement on climate change, saying it is willing to discuss policies that president trump said he will scrap. china was joined by south africa, brazil, and india, who also gold they're concerned that president trump's comments on climate are unsettling the international fight against global warming. more than 100 perspective candidates have signed up so far for the first day of registration for iran's presidential election. ron'ss according to i news -- iran's need is agency -- news agency. apply,nian national camp although they do not include dissidents or women for the formal candidate list. the current president is able to run for another term.
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the election in iran will be held may 19. former president barack obama will take part in a protestant conference in berlin next month with german chancellor angela merkel. that is marking the 500th and of theversary reformation and will take place in front of brandenburg gate, where mr. obama delivered a speech as president in 2013. the discussion on "shaping democracy and taking responsibility at home and the world" is held every two years. global news toy for hours a day powered by more than twice 600 journalists and analysts are more than 120 countries, imr come to. this is bloomberg. vonnie: coming up tomorrow, a conversation with christine lagarde live from brussels. , it's a quarter million dollar car that can take you from zero to 62 miles per
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hour in just almost three seconds. we will show you the entry level lamborghini huracan perform ante. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn. oil is spiking after "the wall street journal" reports that saudi arabia wants opec to suspend production cuts. the daybreak team talk with ed morse. tensions inim how syria are affecting the markets. >> there's actually as much bearish news in the move on
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syria as there is bullish moves. there's not much that can spill over into the oil arena. on the bearish side, given the parties involved, gives rise to thinking about whether the russian government and the saudi government will actually see i do i coming into the next chance to renew the oil price production cut coming next month. alix: it's really about saudi's and russia aligning and syria right in the middle. what is the probability that you put now on a deal being extended? "bloomberg markets." ed: we still have an 80% probability and we think the likelihood is great. the interesting key prices up this year is greater than whatever chess boards they are playing on. you have to remember that the price today is what the price was before the selloff in march. it's about the same price that it was the algiers meeting last attended 20th. -- september 28. prices have not been willing to go up above that and we think
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they will be willing to go up above that when the refinery runs globally going up. with a real bite in the production cuts hitting the market, they did not hit in q1. it's the time it takes to get oil from the middle east to east asia and to the u.s.. alix: that really ties into your call where you saw the potential in the back half of the year for brent to hit in the 60's. if we do not get a deal, you have a much more bearish case. ed: we do indeed the cousin we will have the compounding of the physical markets getting much, much looser in the third and fourth quarter. and we will have the financial markets getting more bearish for having the price down. alix: what's that price? ed: that price could be $45 without an agreement. alix: we were just like there a few weeks ago. ed: we didn't get quite there . yeah, it would have an impact around the world. they would even have an impact on this current boom that we are seeing in the u.s. where at a
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minimum we are seeing a hundred thousand barrels a day of production growth from the beginning to the end of 2017 and potentially even more in 2018. that would slow down the momentum considerably on the u.s. side. alix: we do not wind up seeing that fall off. if shale has proven anything, they can still can sustained 26 or 30, but they can still survive and they are in a much better place than they were two years ago. why do you think shale will be much more sensitive to the downside? ed: we have a $50 magic number to do hedging and to get producers to lock in. producers were running off a period remarkable cost deflation and we are in a period cost reflation. we have come across up, stand cost going up, and labor cost going up strongly at the moment. alix: we saw hiring in the mining industry up the highest since 2011 on friday.
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what is it also say that we are $53 in wti52 and about u.s. shale that has come online? what you expect in the base case? ed: we expect another 700,000 barrels a day of production growth in u.s. by the end of the year. that could be higher depending on how many completion of drills or uncompleted wealtlls there are. there are ducks in the permian and a drill of uncompleted well numbers. the head count on that is also going up. that sustains momentum going forward as well in terms of greater production growth. alix: that would be a huge call. where w are we with that inventory normalization with the waiting in the sidelines here? the big story was that the asian demand was pulling crude in the asian basin and making one for u.s. exports. where is that story now? ed: that arc is pretty much closed. that was pretty much heavier and
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more sour crude's going to east asia, china, japan, korea, you name it. we will see that coming off. on the inventory question, we saw strong inventory drops on the product side. any week now, it might be in tomorrow's data. we should see a draw starting on u.s. crude that will be sustainable. the question you ask is what do we think about getting back to normal? nobody really knows what normal is. the opec countries talk about normal as a five year average from the past. if we look at the last five is at global oil demand the best 7 million barrels a day. if you look at refinery requirements to hold crude oil, we are not very much above what that five-year average is, but which she been -- we should be way above it. as refiners globally need to produce more crude, the amount
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of inventory they have to hold has to go up. that 7 million barrels a day when imply well over 100 million barrels on that base case of inventory, getting back to the five-year average would get us well below what we consider to be inappropriate more. citi's headorse, of local commodity research. the lamborghini huracan performante recently became the fastest sports car in the world with speeds of more than 202 miles per hour. we will hear how this new vehicle is aimed at exciting drivers. bloomberg pursuits is next. this is bloomberg. ♪
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vonnie: this is "bloomberg markets." i am vonnie quinn.
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the word luxury and the name lamborghini are nearly synonymous. two new technologies are helping to make the italian sports car company's newest model, the lamborghini huracan performante, the fastest in the world. the huracan performante made world records in speeds at the historic and difficult nurnberg racetrack in germany, beating out porsche 918 spider. 62 milesrom zero to per hour and three seconds. for more on the vehicle's north american debut is alessandra for musket, ceo of lamborghini america. i just had a little tutorial on how to say that. congratulations. it's beautiful. it is your entry-level lamborghini, which sells for almost a quarter million dollars? that's accessible or no? >> the new huracan performante
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is a great car. the name itself comes from thatrmance and it means r.i.m juniors -- our engineers were try to get an engine with not only just a horsepower more and a lighter car, but they even developed a potential solution that is taking an aerodynamic solution to make this car so fast and so special. vonnie: even the glue is aerodynamic. it has been called a wing on wheels and some of the reviews i've read. that is pretty decent. who do you think will buy this car? you had 1000 plus deliveries in north america last year. what do you hope to grow that to and how many do you think this car will take? alessandro: we expect to reach the same numbers of last year . in terms of expectation for this car, we have already collected a
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large quantity of orders basically. we have entirely sold out already and the car was just launched three or four weeks ago in geneva. now we are going to have a debut in the u.s. market. this would be a considerable part of this year and also for next year. vonnie: does this signify any type of entry into racing? are you considering maybe a formula one team? alessandro: in terms of racing, we are already present because that weour series make have been performing for the last 7-8 years. last year, we also entered into the gt three segment, so elevating the presence of lamborghini into the racing environment. vonnie: i say that because porsche is obviously big and racing and you be porsche and speed. they must of felt great.
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-- it must have felt great. alessandro: you are right. when it comes to formula one, never say never. at the moment, we are focused on a project that is our suv that is going to come next year. the company is more focused on that, but you never know. vonnie: i was just going to ask about the suv. it's not the first thing that would've come to mind, but is it going to be a fast suv or luxurious suv? alessandro: first of all, it would maintain the dna of lamborghini. it would be a super sport suv and something that today is not present in the market with all the typical characteristics of the lamborghini cutting age technology and bloomberg any design. to ask about the policies in the united states at the moment. any issues around lamborghini surrounding this because you do sell at least 1000 deliveries?
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alessandro: we are always well awake and check what's going on in the markets. we arei would say she i not seeing any affect in the past few weeks. far, that we are confident that we will do really well in the united states. vonnie: operations continue on the huracan performante. check it out. it's a phenomenal automobile. he is the north american cielo of automobile lamborghini. for the finest things in life like travel, watches, dining, and property, go to ni pursuits. ♪
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pimm: it is 1:00 in washington. from bloomberg's world
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headquarters, i am pimm fox. kevin: i'm kevin cirilli. david gura is on assignment this week. imm: let me give you the top stories we're watching at this hour. secretary of state rex tillerson is arriving in moscow today and bring a tough talk ahead of his meetings. he is saying russia must give up "it's unreliable ally, syria." this is following that chemical weapons attack in syria last week. tensions weighing on investors minds with u.s. stocks edging lower. lingering concerns over the developments in syria and rising concerns over north korea feeling a bid for haven assets, such as the japanese yen, strengthening past 110 to the u.s. dollar for the first time since november. president donald trump's message to corporate america -- job creation is at the top of the agenda. he made


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