Broadcasting live to New York Bloomberg eleventh to Washington, d C. Bloomberg to Boston, Bloomberg twelve hundred to San Francisco Bloomberg nine to the country ju Exam Channel one nine and around the globe the Bloomberg Radio plus appen Bloomberg Got Gone is taking stock. I'm Kathleen Hayes along with Pim Fox.
An apparent agreement at Opek to curtail production has been responded to in markets around the world, not the least of which because it could mean higher oil prices that could boost inflation, that could help central banks like the Bankage of Campan. We're gonna be speaking to John Kilda from again Capital. Guess we'll be speaking about the price of oil and what happens next. But right now we
know what happens next. We're going to Charlie Pellett in the Bloomberg newsroom, and I think very much Pim Fox, thank you, Kathleen Hayes. Let us begin with crude oil, because we have got oil at a one month high. After all, Peck agreed to reduce production for the first time in eight years, surprising traders a big shock. Yesterday. They were expecting members to maintain output. Here's where we
stand in terms of crude. West Texas Intermediate up one two percent right now, up fifty six cents w t I for sixty of barrel. Brent crude up six tenths of one percent hard by twenty nine cents of barrel for ninety eight right now on Brent stocks following banks are retreating amid growing concern that Deutsche banks woes will spread to the global financial sector, a topic we were just discussing right here on Bloomberg. Shares of Deutsche Bank.
They're down now by six point nine percent. Bloomberg Exclusive. This morning, Bloomberg Radio and Television sat down with US Treasury Secretary Jack lou in Mexico City. U S Mexico relationship is very important. It's important as an economic relationship. It's important as a security relationship in the region. The US relationship with the Western hemisphere for our entire history has been central to our sense of our security interests
and our economic interests. More positive views unemployment, The Laborty Department said jobless claims did rise last week by three thousand to two hundred fifty four thousand, that estimates were for an advance up to two hundred sixty thousand gold up to thirty ounce. The thirteen twenty one again there of two tenths of one percent. The ten year up five thirty seconds with the yield of one point five
five percent. Costco reports after the closing bell Costco shares trading Laura now by one point two percent, again recapping equities lower twenty eight minutes to go ahead of the close, the SMP down fifteen, a drop of seven tenths of one percent, and right now thirty two on Wall Street to look at the other stories. Thank you, Charlie from the Bloomberg Newsroom. I'm Jill Schneider. This news update is brought to you by the Jeep Grand Cherokee, the most
awarded suv ever. The Grand Cherokee continues to raise the bar with its luxurious interior and legendary four by four capability. Drive one your local Jeep dealer today. A rush hour commuter train traveling at a high rate of speed, crashed through a barrier at the busy Hoboken station this morning, killing one person and injuring more than one hundred others. That's according to Jersey Governor Chris Christie, who briefed the media along with New York Governor Andrew Cuomo a short
time ago. New Jersey Transit employee Michael Larson was about thirty feet away and saw the accident unfolding at speed. It went over to block basically through the air, traveled about another came to arrest when it went hit the wall of Luke Pomo was sitting on another train and also saw the crash happen. All these metal on the ground and hips, furst and waterflown everywhere. The National Transportation Safety Board is investigating. India has retaliated for a deadly
strike against its soldiers. Bloomberg's Michael Barr has more. India has hit back after an attack on Indian soldiers earlier this month. In the has says it has attacked terrorist camps just across the border in Pakistan. According to India's Director General the Military Operations, heavy casualties were inflicted on militants. It is the biggest military escalation sent to standoff in nineteen. On September eighteenth, an attack on an Indian army camp
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More at eight r dot org recapping equities lower oil higher, SMP down fourteen A dropped there of seven tenths of one percent. West Texas Intermediate crude up now by one point three percent. I'm Charlie Pellett. That's a Bloomberg business flash. You're listening to taking stock with Kathleen Hay's and Pim Box on Bloomberg Radio. Oh yes, let's talk about oil and find out about this new agreement. Will it hold? Let's find out more from John killed Off he is
founding partner again a capital John, this opeque agreement. Just explain it to us. Iran doesn't actually have to observe the new caps well, that the devil is in the details and we haven't necessarily met the devil yet because we won't know the quota table until they get together on November. So there are stories swirling that they'll be exemptions for Iran, Nigeria and Libya because of the outages they suffered and because of the Ran sanctions regime that
just getting out of. So um. It looks like the Saudis are going to have to bear almost fully the production cut. We don't know if they're going to be up for that. And also too before they announced their table of production limits, they're looking to read chat to an open producers such as Russia, and Russia has just been going, uh like gangbusters, increasing their production. There was a great story on the Bloomberg. You guys have been
covering this extremely well. Just last month they raised production four hundred thousand barrels a month on month. So there's a lot of work to be done here. Of course, it was Saudi Arabia a couple of years ago adopted a policy of just you know, helping to flood the world with oil. You know, push the price low enough, you'll you'll push out a lot of the marginal producers, you know, shell producers in the States, for example. That worked to an extent, but now fully and of course
some might say it. You know, it was a they shot themselves in their own foot. Uh do you know anything about the inner conversations? What's what's the chatter in in the energy market among oil experts like you about what Saudi Arabia is thinking? Now, this is a big mistake, has gone far enough? What? What? What do you think? This is the strength of the argument that this is totally blown up in their face. UM and Iran emerging
from this as the strongest player UH in OPEC. UH sociaty financial position has deteriorated very rapidly to having to go to market to raise debt and the I p O, the Saudi Aramco Crown Jewel and they're they're not paying suppliers, they're they're not giving out raises, they're not giving out bonuses. Uh. They've hit the end of the road much more quickly than I think they realized. And I also don't think they'd be sitting here two and a half years later
when they embarked on this. I think they thought they were gonna be able to wash out the U S shale industry much more effectively and also break the back of others with an OPEC so this has gone really off the rails for them. It's an embarrassment really and uh and that the position that I Ran is it is quite interesting because because of the way they hunker down to ride out the sanctions, regime set them up
beautifully for these tough times. So their economy is actually growing four percent, while all the other oil based economies are in significant contraction. So John Kildeff, I want to try to understand what's going on behind the scenes here.
Iran will pump more oil and then they'll spend some of that money to back the Bashar al Assad regime in Syria, while the Saudis will pump their oil and they will continue to use that money to support the rebels who are fighting the bush are Al Assad regime, and Russia will continue to pump oil and spend that money fighting the rebels on behalf of the bush are Al Assad regime. Does that make sense absolutely? It's the extent you see Russia on the same side of this.
You're not going to get any really hard agreement in a way now a land has turned the table on the Saudis and that they're able to keep the price low, still make money, still cover their budget same with the Russians. The Russians are now budgeting for four to five dollar oil. Uh, so they too can can ride this out. And it's the Saudis who cannot ride this out, who needs a higher price to really keep things together, and so far
their side of that fight. So they're going to have the least resources of the salities to help with the rebels. And so I think that's why you're seeing a very well timed ratcheting up, unfortunately of the bombing of Aleppo and other parts of Syria. So what is your forecast for the price of oil? Now? Where's it going? Well? I think it's it's still going to go lower. I think what you've seen here is is the short covering rally.
I think a lot of folks have gotten scared out because of the at least came to an agreement OPEC that is, but it's short lives. The fact that we didn't get over forty eight dollars a barrel today UH set us up for another technical failure here, So prices should trend down. I think we go below forty before we go anywhere else. I don't see the market coming
into balance until late next year. Uh. Particularly with the increased production that we're going to get from from the SEC countries we mentioned Russia, O, Libyan, Nigeria, and even Iraq and Iran for that matter. By the way, the Iraqis are screaming over the d L are very upset about it because it looks like they're supposed to take
a big hit on their recent production hike as well. John, just quickly give you about thirty seconds tell us about the importance and the change that having the US as a swing oil producer makes to the market. Well, I know there's a big debate as to whether or not we are or can be energy independent. UH was certainly an energy player. I you know, this has been a miracle. UH.
And the technology and advancements keep coming. They keep sleep the frackers, the shale players keep reducing their costs of drilling. They are back in the game, and I think it's it's an amazing story that's gonna continue to help profitable economy. John killed us, thank you so very much for joining us today founding partner of Again Capital. Yes, there seems to be some kind of deal led by Saudi Arabia in OPEC to cut back on production. But John says
prices are going to keep falling anyway. I'm Kathleen Hayes along with pim Fox, and this is Bloomberg. Coming up on taking stock. We're gonna hear from Peter Cheer Breen Capital, find out about winning and losing trades. Also talk about Deutsche Bank that shares it down six and a half percent. This is Bloomberg.