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tv   Bloomberg Markets Americas  Bloomberg  June 21, 2018 10:00am-11:00am EDT

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vonnie: here are the top stories we are covering. as chinaade turmoil doubles down on its promise to hit back if president trump goes through with additional tariffs. india is following the eu in stopping retaliatory lending. opec reality check. its threatsed off on to block agreements between the organization and its allies to raise crude reduction. -- crude production. and the intel ceo, brian krzanich resigning.
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let's go straight to that story. stock is down 1.6%. the s&p and dow are both down minimally. joining us to talk about this is garrett.berg reporter, we aren't going to litigate what he did. he broke a rule that was just discovered. explain what he did for intel, up 57% year-over-year. he is a well-respected ceo, the company facing tough markets moving into new areas such as ai and self driving vehicles. big questionsll about whether intel could continue to go another 50 years at this rate. this is not a good time to have an unexpected ceo change. vonnie: how does management look was theat krzanich person who put key people in key places, carried out key deals
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reporter:. reporter:they have now put their cfo in as interim ceo, robert swan. intel has always appointed a ceo from within with a clear succession strategy. there is no heir apparent right not clear if they will go outside of the company for the first time. vonnie: could we see swan sticking? does he have what is required? for aer: he was at ebay long time, 10 years, with a distinguished career as a cfo. that doesn't mean he's necessarily the right person to be in charge of these major strategic changes in the years to come. about how theo us industry evolves and intel strategy evolves. caroline: is it still looking for areas to make acquisitions?
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you saw the mobile deal a little while ago. ,eporter: that was a big deal obviously to get into the self driving car space, the maker of sensors. that's something krzanich was doing and they will have to keep doing to stay in the position they've been in. vonnie: we've got an update, performance for the company. profits still looking good today. are looking good, and i think that is why the stock is not down as much as it would be with an unexpected ceo change. they kind of threw that in their to dampen the news. given that the strategy intel was potentially pursuing could remain for the next several years, who might be a suitable replacement? we've seen plenty of companies look for ceos lately and it doesn't seem that easy. willter: the company
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likely look inside. nobody is questioning whether krzanich's strategy was right. i just got off the phone with analysts who say that intel is a big machine and they will keep crunching along whether they have this ceo or another one. 13e: there are 25 buys, holds, and -- the majority are positive. the stock is down .9%, market down overall fractionally. isning to trade, india joining china and the european union in raising tariffs. ramos,joined by ernesto the head of equities at bmo asset management. how does trade play into your
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strategy, if at all? we manage across all styles in capitalization ranges in the u.s.. the good thing about the value fund relative to the more growth growthy fund, which is as high as it has been -- trading at about six points lower than growth in terms of historical perspective, and that is about a 12 year low. the second thing that is popular relative to growth with value fact that valued companies tend to be more domestically focused relative to growth. right now, the biggest center of economic growth in the world is the u.s.. the rest of the world seems to be slipping into lower growth, europe, being one example. to thet to be exposed u.s. and in the less expensive part of the market.
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by the way, the small-cap areas as well. risks of theay the federal reserve, trade protectionism, and chaos in the executive branch. i would say we are three for what makes the values high now? ernesto: there are always risks, and the market keeps climbing despite the risks, climbing the closer be of worry. that doesn't mean -- the proverbial wall of worry. you take theinto account and focus on the less risky areas. we think value is less risky than growth because it is less exposed to trade. maybe more exposed to interest rate risks. on the other hand, interest rates are rising on the short end. on the longer and, starting to decline, less of a threat to the
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stocks that are more interest rate sensitive. day, the u.s.the market is showing 30% earnings , close to 10%8 for 2019. that is still where you want to be exposed. exposed: many have been to the auto sector. i'm noticing how -- has been drawing down the rest of the market. what other sectors, companies are you shying away from as we see trade tensions continue to escalate? ernesto: we want to be domestically focused. companies such as bank of , andca, conoco phillips united rentals, with a fair amount of business in canada, still within the outside of the biggest trade wars happening with china.
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we want to remain domestically focused. as a matter of fact, i was reading a piece yesterday. everyone hundred billiollars of tariffs tha the u.s. imposes on goods and services will take about 0.1% of , worldwide growth, down. so it will have a meaningful impact. unfortunately, it seems to be one of donald trump's core beliefs, that trade wars are actually wars, as opposed to or differences in terms of accounts, because a trade deficit is actually an account surplus. there's two sides to that coin and there's not necessarily a loser and a winner. andie: you mention europe
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the potentially slowing growth on this side of the atlantic. bmo, have globally exposed funds. talk to me about italy, geopolitics and the way in which concerns about skeptic voices in the italian government, relationships with the eu. how do you view europe? ernesto: italy is just one more example of this rupture happening around the world in terms of not only trade, but economic unions. all of these disruptions, at the end of the day, our taxes on global growth. consumers will end up paying , growth will be impeded by borders, by different currencies, so all of the good that has taken place over the last 40 or 50 years, of europe coming together, is starting to
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crack. i don't know how far that will go, whether it will eventually destroy the european union, i don't think so and i don't hope so, but it is surely starting to crack. -- certainly not a positive thing. ernesto ramos, head of equities at bmo asset management corp.. thank you for joining us. now for first word news. >> saudi arabia is taking the side of consumers at the opec anna, trying to convince the cartel oil ministers to -- prices at the pump. opposition from iran seems to be wavering. increase insisted no in production, but now appears willing to discu numbers. the global trade fight got worse, with china accusing the
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u.s. of trade abuses, reiterating that they would hit back if new tariffs are imposed by president trump. -- has joined the european union in announcing retaliatory tariffs on u.s. goods. the trump administration may merge the education and labor department, the centerpiece of a plan to remake the federal bureaucracy. the plan will also include changes to the way low income americans get benefits from the government. the history -- the wife of benjamin netanyahu has been charged with fraud involving of almostsuse $100,000 of official fonts for catering services. wrongdoing, and the prime minister says the family is the victim of a global witchhunt. global news, 24 hours a day on air and on tictoc on twitter. powered by more than 2700 journalists and analysts in more than 120 countries. vonnie: thank you. picking up steam, the dow and
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s&p 500 down by five, 6/10 of a percent apiece. the s&p 500 l leading theaggards. caroline: let's check in on the other european markets on this side of the atlantic. a down day, concerns about trade tensions. looking in particular at how was affected. the drumbeat between china and , emergingng up markets getting hit the hardest by almost one percentage point. you can see what is happening in italy, what i was talking about in europe, 1.9%, a more euro skeptic tone. not being too affected in the 10 year, the euro off by 1/10 of a percent. cornelltalking to the
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henry cornell later. this is bloomberg. this is bloomberg. ♪ ♪
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caroline: live from london, i'm caroline hyde. vonnie: this is bloomberg markets. caroline: we've got a great guest, cornell capital has raised 1.3 billion dollars for its first multi-asset investment fund. the firm is managed by a former goldman sachs group executive looking business in asia. joining us is jason kelly and the leader in private equity
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investments. reporter: i'm here with henry cornell, whose name is on the door of the firm he founded. -- a real pioneer in the early 90's, we were talking about that off set. $1.3 billion. this is a big first time find. what is the thinking behind this particular poll? after going through a bit of a crisis of what to be when i we thoughtnoticed -- that using our rolodex is and accumulated decades of experience, we could create some unique opportunities, so we came together and went off to the races. there have been a number
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of first-time funds out this year, 12 by ourount and in the research we've been doing. what is the appetite you are sensing from people for this type of fund? henry: it is a differentiating market. wast of the dinging i got that this was a first-time fund. when you look at the color of my hair, that is an interesting comment. but we were able to convince ourselves and our investors that we would have a unique take on the market. no one had to prove themselves that we would make money or invest. when you are out on the investors, what is the b challenge in terms of putting money to work in a private equity style model? for highey are looking returns, patience and discipline, but there is a market that is frothy. years ago, i was paying eight
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times for a business, and now it goes for 12. jason: from a deal perspective, where are you looking? where are these pockets of opportunity? the senior leadership has -- in consumer, energy, and financials. are about 40% committed at this point. we had a long closing, but we had three transactions. one in the insurance-based where we bought a subsidiary of the , in the of the hartford life annuity business. we will build it up and keep it in connecticut. we bought world kitchen, now known as corel brands which owns pyrex. it is a durable product. then we made an investment in commodity, carbon
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black, used in every tire in the country. it is a business i gained some fascination with some 15 years is, a new technology that 50% cheaper, and more importantly, produces hydrogen as a byproduct. put this in the context of the broader private equity business. you were involved in merchant banking back in the day, a quaint term it feels like at this point. the private equity industry has grown into something tremendously large. we hear $15 billion, $20 billion plus in fonts at this point. where is the place for a more mono-line private equity shop at this point? henry: when i started, there were probably -- now there's 5000 people and $500 billion in capital. i get the joke of expansion in
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size. what we are trying to do is take lessons of a lifetime, partnering with management, a focused portfolio that can build things up and out, and because the senior leadership team at our firm has spent a lot of time in asia, and we have a hong kong office, being able to bring american companies to asia and expand their presence is a core competency of hours. we are trying to be unique in a market filled with a lot of competitive pressure. let's talk about asia, at the front of mind for many people. consumers, business people, government. ariffs,he t the geo-economic headwinds. here in china,-- specifically? henry: i think if you were buying something in the states,
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the -- review of any purchase by a foreign company is getting tougher. china has been a little restraint given the rhetoric in the last month or two. i'm ultimately optimistic. for better or worse, china and the states are married. s they can havepats like any normal -- they can have spats. the you worry about your ability to get into china and do deals, even someone with your pedigree? worry anymore about doing business in china as i do with the states. people would joke, are you worried about corruption in china? i say that it could be an issue, but have you looked at the new york state legislature? you showed up in beijing in 1992 after spending cointreau years in japan.
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in 1992, beijing was different from today. lesson thatbiggest an investor needs to understand about doing business in china? anywhere, you need a sense of humor, patience, and a wide perspective. i was fortunate when goldman sent me to china back then, to open up the business. beijing was all bicycles. there were no cars. you could roll a nickel down the boulevard and not hit anybody. and you noticed the greatest wealth creation in history. blue suits, bicycles to cars. veryng skyscrapers, and a sophisticated group of professionals in the government side and business side. jason: it sounds like you are sanguine about the relative danger or obstacle of this sort , trade war,t whatever we want to call it.
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how long do you think it lasts? predict.'s hard to i think there are legitimate trade issues on both si i think a quiet conversation could result them. i'm not sure if being public accomplishes the goal. for aen you been around while, you know this is going to pass. there's so much embedded positive relationships between china and the states that that is not going to dissipate if you have a couple of headlines that look funky. jason: you mentioned the growth of the private equity industry, funds, men and women out there who are other breaking off from a larger firm or have -- just coming straight out trying to raise money. what is your best advice to them? henry: give it the best shot in terms of your strategy. what you do, what you've done, why you will be relatives --
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important relative to the market. our track record. 30 years old, very deep and broad. how are we going to extrapolate? now, if you are literally just receiving books from investment bankers and you don't have an edge, you are just throwing money out the window. we are trying to create transactions where appropriate. we will participate in auctions, but only when we have an angle. in the last five years since i started this, we've gotten many more silver matters -- silver than gold. we have a perspective that it will take five years, 10 years to build out and build up a lot of these businesses we are investing in. to talk about getting books from bankers, presumably bidding wars. you worry about valuations for the rest of the year and into 19? henry: valuations are high.
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coming in light, and people are willing to pay up. i think the dirty secret is when you are dealing with a bond market and fixed income portfolios that are low single-digit returns, and an equity market that is much higher, that private equity industry is willing to bid returns, 12% to 15% which, when you look at the overall portfolio for any pension, fund, or institution, that is a good return. moree trying to take on risk, but have more view about how to build the business organically and through acquisition. how soon do you think you can take advantage of the selling side of this and dispose of those assets? investmentave one we've already made, contemplating at capital event. it is to make a material
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acquisition that will change the entire future and hope of the company. that will, i think, hopefully inspire the market. everything we are doing now is in the building phase. thankfully, our investors are patient. we aren't looking to sell anything at the moment, but build it. investors much did beat you up on fees and are looking for different ways to pay less for high-quality by design, wey: only went to folks who we have a long relationship with. because they were kind enough to , they basically said we will support you, and them ally, i was giving happy discount on fees that still left enough to build the team, build the company, and made them very happy as well. -- that is's a music music to many investors' ears.
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congratulations on the new funds. wonderful stuff. thanks, jason, and henry cornell , senior partner at cornell capital. is bloomberg's executive editor for global tv. breaking news, amazon down 1.2%. it's your -- the supreme court has ruled that states can require internet tax collection. this is an overturning of the ruling from the early 90's that wasn't sure -- the court has sided with traditional retailers. one of the beneficiaries has been amazon. here's the picture for amazon and some of the other online retailers like ebay, wayfarer down 3%. looking at some of the traditional leaders having trouble with the online channel, you can see they are benefiting from the decision.
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for more implications, let's bring in greg ferro. amazon has fought this decision to do and nail. greg: it's a significant decision. investknow exactly that this is going to hurt them. the hunt the scenes, there's an interesting development. states will presumably get more money now, and a lot of states are strapped for cash despite the good economy. a newould lead to infusion of tax money for many states. talk about what it means for amazon. and best of it -- is the bellwether. that's were the focus should be. although it is a short-term hit, amazon is now an established behemoth in the online space and will not go away.
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themcould have impacted far more negatively had it occurred 15 years ago or 10 years ago, but it is such a juggernaut that i don't think this will be crippling the way it would have been earlier before amazon had become so widely -- vonnie: is it possible to put a figure on it? i can.n't think we will definitely have a short-term impact. look more atve to how it will be hitting the likes of wayfarer. amazon has try to stay it already chooses to pay taxes in many states, that it might not be impacted as much as wayfarer, but the -- to begin with. >> i am not as familiar with them, but this will, as you -- amazon has stayed ahead of this and will not be impacted
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as much as some of the other online retailers. vonnie: give us the repercussions on the other side, brick-and-mortar stores. how much have they been pushing to see rebalancing in the payment of tax? to behink it is going positive for them, but i don't think it will be a panacea but i do not think it is a panacea that will fix the retail industry's problems. retail has some systemic issues, and this will not turn the entire aircraft carrier around. there: i want to ask if is any recourse europe this is the final decision now? the final if this is decision now? the final it is decision. lawyers get paid to go around other rulings, but this won't be able to be addressed until the next supreme court years from now. we are waiting to hear from other companies.
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our thanks to greg farrell. and we have more breaking news on the european side of the equation. deutsche telecom is now a unit in it. cut atll be planning to least 10,000 jobs. this is to lower costs by 2021 to the tone of 620 million euros. this coming from a company spokesperson at deutsche telekom. significant for the deutsche group. the let's get back to another ch story. huge news in intel ceo. theing us on the phone is global head of technology infrastructure at new street research. theprice target, $70 on intel shares, one of the highest on the street. talk to us about the krzanichions of losing
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as the ceo. he has contributed a lot in terms of diversifying the business. he has taken the company into new business segments, like mobile and the car industry. and from the memory business as well. this has been defined a lot as the head of the company, and this is the hiring of botswana a couple of shares ago. brian living this spot currently, we have to keep moving forward in the transformation. i think two things are important, like the diversity should get some praise, so hopefully something like an outsider could be the next ceo
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of the company. that would be a very important relationship for intel. and on the diversification front, what i would say is brian has built a lot, and for his successor, it will be time to stop thinking about rationalizing this and concentrating on the smaller number of debts and getting the organization more functional in the next 10 years. what fundamentally and the pending or $70 call, has that in any way changed? remain intrategy place, and potentially do you see robert swan remaining at the helm? i think you will need probably to start looking at the infliction in the study, but not the change. brianyou can see [inaudible]
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making investments in many, many different areas. i think the next step to the strategy, like bending it a bit and taking a slight inflection, will be not to keep running after all opportunities, but trying to rationalize the path going forward. so the succession of brian should build on what brian has and at theate --, same time, i believe a more positive intel. caroline: pierre, before this broke, what were you looking for in the very near future? it was on a guide path that most analysts were happy with, but were you looking for m&a, and is this changing things for competitors in any way? intel is a very large bird. we know how the couple since the landscape is structured. it has a very strong position.
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until had a very broad and experienced management team, so i think the company can smooth the transition. i think bob swan, in terms of right now, has the skill in place to keep running the business. course, in challenging situations, they have to bring to the market that new technologies we are depending on. to 2019, theow initial and of 2018 kind of they willd that means have a short window of opportunity to get in traction on the market with their new things, but all of these are going to be affected by the change at the head of intel for the reason i just gave you. it is a strong management team, and the company is on a very, very steady pace on that kind of time horizon.
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-- : caroline: our thanks to the gld of technology infrastructure at new street research. jumping is on there with us at intel. price is now down one point 5%. also breaking news, amazon falling, along with other online retailers. the supreme court came out with a decision today that was widely awaited. states also falling, along with other online can require internet tax collection. we are joined now by greg sorin, outside of the supreme court. it was a 5-4 decision, greg, but not entirely unexpected given the makeup of the court these days. greg: when the court agreed to hear this case, there was an expectation that it was ready to take this step, that this role was outdated and needed to be overturned. but the argument seemed like the court was hesitant to take that
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step and wanted to leave it to congress instead by a narrow majority, 5-4. they said we are throwing out the physical presence rule. states now have broad authority to require internet stores to collect sales tax. anything amazon and company can do? can go to congress. like taxing someone that only makes a handful of sales in a state. it was a minimum00,000 to apply for its role. there is also retroactive taxation. there is not clarity on whether that state will do that. but retailers and others can go to congress to trying get them to address this as well. of course, some of the non-online specialists are rallying around this. it is a one-time adjustment, greg, and after that business goes on as usual. i am sure that amazon will try to do something about this, but
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for now, it looks like pretty much immediately everybody in every state will have to start paying more for their online goods. am i reading this correctly? is in aah, and amazon unique place. amazon does collect sales taxes everywhere it doesn't sell directly, but it also has the amazon marketplace, where third-party sellers are responsible for collecting the taxes. not all of them do collect the taxes. it will be a change for them. retailers, like wayfarer and overstock who are involved directly in this case, they will probably have to pretty quickly start collecting taxes in states where they currently do not collect taxes. vonnie: a wonderful summary, thank you for that. so much breaking news. let's bring it back to the breaking news earlier, the british pound most in more than two weeks. economistchief
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unexpected we supported a rate hike, boosting products -- prospects for tighter policy in the coming months. with us now is a u.k. economist. great to have you here. this third vote calling for a hike. it has not changed the overall poll, but there is more voicing of discontent. absolutely. what we saw in the minutes -- let's go back a step, actually. the bank hypothesized a slowdown in growth in the third quarter. but now what it thinks is it is right. it thinks it is temporary. anthony believes he has seen enough and we need high rates now. you still have six members of the committee that are not convinced, but in the coming weeks -- over the coming weeks, we think they will be convinced. there is more data to come. will cannot relatively strongly and prove that growth is likely to rebound in the second quarter. and we do think that the bank,
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at the moment at least, is on track to lift rates in august. theie: and that could take market off, really, because it was less than 50% of the market views that we could see a rate hike as soon as august? dan: and with the data that has come out, that is some fair pricing. it seems very mixed. but what we have seen today in the minutes is the bank thing to the feds look, we think there is enough here for a hypothesis. our hypothesis is to be on track. the growth slowdown appears to be temporary. the slight slowdown we saw and wage growth as well in the recent figures, we do not think that as much of a problem. we think this will move back onto an upward trend. so essentially they have crossed over some of the weakness and said look, we think our judgment is on track. we think that puts them on course for an august hike. see how markwill carney discusses this later today. the, talk to us about
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threats continuing to cause the equation of the u.k. economy. we have theresa may winning some sort of a victory, dampening down the rebellion thus far, but the eu at the moment is a this is a holdover. how much does this remain for the -- the u.k.? the bank of england's perspective, they are a bystander in this. as the data starts to deteriorate, they will change their tone significantly. aftermath of the brexit vote as well, the economy was more resilient. it seems at the moment like we are muddling through, but that political uncertainty and cloud is not lifted, and people are now talking about march 2019. you have the transition at the end of 2020, and it is highly unlikely that it will be sorted out by then anyway. it will be there for a long time and the bank has to navigate the data as they see it. caroline: and today, the market navigates the news by pushing the pound up.
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that was dan hansen, joining us from bloomberg. this is bloomberg. ♪
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vonnie: time for the bloomberg where we divide context and background on interest. today, opec has a beating in vienna. -- meeting in vienna. it has been jolting the world. the 14 member quelled -- club of oil exporters is a successful case of a cartel. another challenge for long-term survival as the u.s. releases record supplies of shale oil and as the planet turns to renewable energy. opec is again deploying the most trusted tool, welding output to
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push up here is the situation. in 2016, opec members reached a packed to cut production. the even joined forces with fierce opec competitor. by 2015, the gamble had paid off. the surplus was eliminated and oil was at a high. the danger now is whether the success backfires. president donald trump has complained about rising oil has asked the u.s. some opec producers to pump more. here is the background. opec accounts for 30% of world output, controls the bubble -- old of global reserves, and operates most profitable fields on the planet. yet as so-called petro states, -- rely ons reply high oil prices to fund government spending. the burden is intensified in some places, like venezuela, by corruption and mismanagement. opec has expanded its met that membershipsroducing
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with non-opec countries, which some might say become permanent. its middle eastern numbers can produce a crude at a third crossed -- third of a cost of u.s. shale, but the share of the market is a lot more now than in the 1970's heyday. but the threat of shale has not diminished, and rowing popularity of electric cars and renewable energy could mean demand for oil peak sooner than expected. you can read about opec and more of our quick takes on the bloomberg. fantastic -- caroline: fantastic, thank you so much. let's look at thailand. it is trying to be a source of stability in emerging markets selloff. they held rates betty yesterday -- rates steady yesterday, but this could reduce outflows in the nation and change the bank with the policy. bank'sks policy -- policy.
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what brings you to the united kingdom? you are drumming up investment opportunities in thailand from the u.k.? time weis the first have come to t european union. it is following the fact that the eu hadthe year, reestablished a relationship with thailand, and we are looking for opportunities to come here. that we can come to england and also to france, and this is a good time for us to have a source to bring investors from europe to interests in thailand. we are thinking we have a lot of in terms ofs infrastructure projects, promotion of new industry. theline: particularly in eastern corridor. i'm interested you are going to the eu and the u.k., just as the u.k. is looking to extricate itself from the eu.
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brexit and the ongoing lack of clarity their affect potential business opportunities for thailand in the u.k.? >> i think this is a good opportunity for both of us. with britain leaving the -- renewave to really the trade relationships with countries around the world. in the past, you have done everything through the european union. and once they leave, they have to start talking to people in various regions around the world. when they came here yesterday -- when we came here yesterday, we said thailand would be very happy to enter into an agreement with the u.k., either on a bilateral basis or a multilateral basis. we have the whole region, 600 million people, a very good market. it is growing at 7% in some of the countries. so the point of view of england, this is probably the right market to get into.
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-- if talking to other nations at the same time is difficult, we can talk to thailand alone. caroline: what about the geopolitics the world faces right now? your biggest trading partner is china. are you worried about a slowdown or trade tensions? the u.s. is your third biggest trading partner. what about the issues of trade? is on everyone around the world, including thailand. if you look at the stock in change, the capital falls, and everything is jittery after the announcement from american markets. run, think over the long we will still see a good profit in the economy. early in the last 12 months, we have seen the good of the export sector picking up in price, potentially. five years ago, thailand had zero exports for five years.
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early last year, it started to goingp, and it is now 11%, 12% on the year. quite good so far. and american markets for us is 10%. caroline: that won't change. >> very small. america is not that big anymore. china might be 12%. if they have conflict between them, it will impact thailand. but it might also be profitable for thailand also, because when exports from china cannot get into american markets, there will be more chance for our product to go there. a bunch of potential and locations. it has been wonderful having you in the studio with us. ofwish you well on the west your tour. that is the minister for the thai prime minister's office. this is bloomberg. ♪
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caroline: this is bloomberg markets. time for our futures in focus. all eyes on oil. crude compromised potentially ahead, opec and its allies are nearing an agreement ahead of their meeting in vienna. that sent brent futures sliding at one point as iran seems closer to accepting a saudi deal to increase oil output. scheiber joins us now. are you expecting some compromise tomorrow? i think tomorrow's meeting is inevitable. it is the force reckoning that supply will eventually return. the consensus seems to be between 500000 and 700,000 barrels a day. depends on the timetable. but what consensus does not realize is that saudi arabia and oil policy has not been predictable. the latest reversal seem to be tied to iran. you also have four countries
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with spare capacities. so i do not think the meeting will be as straightforward and easy as people think. ofhink 700,000 barrels a day production could drop wti by two dollars tomorrow. where do you see the trading range going forward? some are talking if we do not see a copper my steel, oil could return as high as $100 a barrel, but you remain in the trading range? i have been short oil all the way up. i believe it will remain in this volatile, but narrow trading range. even if a predictable consensus outcome does not result tomorrow, i think eventually will. the meetingt think will be as predictable and straightforward as people want it to be. also, keep in mind you have an gola and iraq adding production iraq addingd
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production and russia wanting to do so as well. i'm hoping we will have a favorable outcome tomorrow. caroline: by the game of chess. you. shover, thank vonnie: time for the stock of the hour. for w, it is amazon. shares are lower on the supreme statesecision to allow to tax online retailer sales. abigail doolittle joins us with more. lower. amazon is tell us about what some of the implications are for amazon? abigail: it is not as low as some of these e-commerce stocks on the scotus decision to allow states to tax sales on e-commerce sites. it comes as a bit of a surprise, and it is not just aids, but -- states, but cities as well. this came from north dakota and wayfarer. a strong decision from the
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supreme court, with the supreme court saying that nobody has any doubt that south dakota has the right to do this taxing, but amazon has been prepared for this. they have been taxing on a state last since the end of year, and if you happen to the bloomberg we can break it down, because it is on their own goods. the green bars here is their own store. they have already been collecting these taxes. theyct, there is talk that are well prepared for it. this is another area that could be a bit of a surprise. but ebay, overstock, they really could be a bit of a surprise. vonnie: they are off their lows. we should mention, thanks to abigail doolittle. from new york, this is bloomberg. ♪
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mark: there is 30 minutes left in the trading day in europe. from bloomberg's european headquarters, i'm mark barton. quinn, thisvonnie
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is the european close on bloomberg markets. ♪ mark: have a look at today's top stories. a shakeup at intel, the chief executive is out in the chipmaker said he had a contentious -- a consensual relationship with employee. the boe said it's chief economist is causing death is calling for a rate increase and daimler blames trade tensions for lower suv sales and we will talk to an analyst to says trade policy may not be the driving force behind the company's outlook. have a look at what's happening to european equities. they are falling but were rising earlier in our down for the fourth day of five. it's a risk off day


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