IT IS YOURS.
NEIL: THANK YOU VERY MUCH,
STUART.
WE HAVE A BIT OF CONUNDRUM FOR
CASH AND WHAT IS GOING ON IN THE
ECONOMY.
YOU HAVE OIL PRICES TUMBLING
WELL INTO A BEAR MARKET.
YOU HAVE CONCERNS INFLATION IN
THIS COUNTRY AT LEAST AT THE
WHOLESALE LEVEL IS HEATING UP.
TRADERS ARE KIND OF WHIPSAWED ON
THAT, ONE OR THE OTHER BUT BOTH,
THAT IS KIND OF A WEIRD.
WE HAVE THE 10-YEAR NOTE GOING
DOWN IN YIELD, UP IN PRICE.
AS PARTICIPANTS FLOCK TO
QUALITY.
THE BELIEF THIS IS MAYBE WE'LL
STICK OUR CASH UNTIL ALL THIS
SETTLES OUT.
GOOD LUCK ON THAT.
PARTICULARLY THE OIL FRONT.
WHAT IS WHIPSAWING OIL IS
WHIPSAWING GLOBAL EQUITY MARKETS
AS DOMINANT PLAYER IN THE
MARKETS.
PART OF IT READ AS SLOW DOWN IN
THE GLOBAL ECONOMY.
WHETHER IT IS JUSTIFIED OR NOT.
IT IS ANYBODY'S GUESS.
PHIL FLYNN HAS PRETTY GOOD IDEA
AT THE CME.
HI, PHIL.
>> AMAZING A MONTH AGO EVERYBODY
WAS THINKING OIL WOULD GO TO
$100 A BARREL.
I THINK THIS IS GREAT NEWS FOR
THE GLOBAL ECONOMY.
PRICES WERE GETTING TOO HIGH AND
I HAVE TO GIVE CREDIT TO
PRESIDENT DONALD TRUMP.
I'M CALLING THIS PRESIDENT
DONALD TRUMP'S BIG SHORT, OKAY?
HE HOODWINKED OPEC, EXACTLY WHAT
HE DID.
HE WAS TELLING OPEC A FEW MONTHS
AGO, HEY, YOU'RE CARTEL PRICES
ARE GETTING TOO HIGH.
WE NEED MORE OIL FROM YOU.
GUESS WHAT?
WE'LL PUT TOUGH SANCTIONS ON
IRAN, A COUNTRY SOME PEOPLE IN
OPEC DON'T REALLY LIKE VERY MUCH
EVEN THOUGH IRAN IS IN OPEC.
GUESS WHAT?
WE'LL DO YOU A FAVOR.
WE'LL GIVE IRAN A VERY HARD TIME
ECONOMICALLY, RAISE OIL
PRODUCTION TO HELP US OUT.
GUESS WHAT DONALD TRUMP DID?
HEY, GUYS, FORGET THAT.
I'M GOING TO GRANT WAIVERS TO
IRAN'S BIGGEST CUSTOMERS.
THEY LEFT OPEC HOLDING THE BAG.
LET ME TELL YOU, NEIL, OPEC IS
VERY ANGRY.
THEY FEEL DONALD TRUMP PLAYED
THEM, PLAYED THEM LIKE A FOOL.
WE'RE HEARING THIS WEEKEND THAT
OPEC IS GOING TO TRY TO STEP UP
TO CUT PRODUCTION THIS SUNDAY TO
TRY TO GET PRICES TO GO BACK UP
RIGHT NOW.
BUT, DONALD TRUMP IS LOVING
THIS.
HE DOESN'T LIKE OPEC.
HE SAYS THEY'RE A MONOPOLY.
HE WANTS TO BREAK THEM UP.
THE BEST WAY TO DO IT, TRY TO
BANKRUPT THEM.
GET THEM TO SPEND A LOT OF MONEY
TO RAISE PRODUCTION, THEN BREAK
THE PRICE BY 20%.
NEIL: THEN AGAIN, YOU COULD
BANKRUPT A LOT OF U.S. OIL
INTEREST, RIGHT?
YOU HAVE TO BE CAREFUL WITH YOU
WISH FOR?
>> YEAH, THAT IS THE OTHER SIDE
OF THIS EQUATION HERE.
I KNOW AT LEAST ONE PIPELINE
COMPANY THAT WAS ACTUALLY
SPENDING A LOT OF MONEY TO TRY
TO GET THEIR PIPELINES DONE BY
THE END OF OCTOBER WITH THE
THOUGHT PROCESS THAT THEY WOULD
HAVE TO BE THERE TO REPLACE
IRANIAN CRUDE.
SO THEY DID GET CAUGHT WITH THAT
A LITTLE BIT AT THE SAME TIME.
SO YOU DO HAVE THAT BALANCE
BECAUSE THE U.S. IS A BIG ENERGY
PRODUCER.
SOME ENERGY COMPANIES WHOSE
EARNINGS WERE FANTASTIC A MONTH
AGO ARE NOT GOING TO LOOK VERY
GOOD.
BUT I'M A BIG BELIEVER, NEIL,
THIS DROP IN PRICE WHAT THE
ECONOMY NEEDS NOW.
A LITTLE BIT OF STIMULUS HERE.
WE'VE BEEN TALKING ABOUT A
SLOWDOWN POTENTIALLY IN OIL
DEMAND.
ONE OF THE REASONS WHY THAT WAS
HAPPENING BECAUSE OIL PRICES
WENT UP SO FAST INITIALLY AND
NOW WITH THAT RANK IN PRICE, IT
WILL BE LIKE GIVING THE ECONOMY
A BOOSTED STIMULUS.
SOME OF THESE COUNTRIES SLOWING
THEIR ENERGY DEMAND WILL START
RAMPING THAT UP.
EVEN THOUGH WE'RE LOOKING AT
FRONT MONTH OIL CONTRACT THOSE
PRICES ARE TANK, IF YOU LOOK AT
FURTHER OUT YEARS, PEOPLE ARE
BUYING OIL AS IT IS GOING OUT
CRAZY.
THEY DON'T THINK PRICES ARE
GOING LOWER LONGER, THEY THINK
LONG TERM THIS IS A GREAT BUYING
OPPORTUNITY.
AIRLINES, TRUCKING COMPANIES,
ARE LOCKING IN PRICES, WHICH