Oil Reaches Two-Year High on Syria Tensions

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Aug. 28 (Bloomberg) -- Oil reached a two-year high and energy shares led gains in U.S. stocks amid growing concern there will be an American-led military strike against Syria and speculation a two-day slump in equities was overdone. Alix Steel reports on Bloomberg Television's "Money Moves." (Source: Bloomberg)

-- energy prices have been on the rise.

Correct in the meantime, money moves starts now.

Welcome to "money moves." we show you would hedge fund and other equities are doing.

Inching closer to the military conflict with the syrian government for its alleged use of chemical weapons against its citizens.

Cyber terror threats also in play.

We will bring you more details on how the new york times and twitter got hacked.

Today is the 50th anniversary of dr.

Martin luther king jr.'s "i have a dream" speech at the lincoln memorial.

The anniversary is being commemorated at that same site.

Within the hour, president obama, former presidents jimmy carter, and bill clinton will be speaking.

We will bring you those comments live.

We also have live coverage at bloomberg.com.

More investors are anticipating some kind of american-led military strike against syria.

Alix steel is with me now.

She is tracking stocks and commodities.

Oil is hitting a two-year high.

If the u.s. and its allies act, what kind of spike could receive in prices?

A lot of analysts are weighing in on that fair question.

This is creating a divergence.

At its widest spread in almost two years as we filter the concern through the market.

The worry is that any u.s. intervention may disrupt oil countries, like iraq, the fifth largest producer in the world.

The violence running at a five- year high.

Renewed bombings and shootings throughout the whole region.

All of the middle east, half of all proven oil reserves, produces 35% of the world's oil while supply worries dominate the oil market, it is fear dominating the gold market.

Taking a breather now, but it had climbed to a three-month high earlier in the session.

Keep in mind, this is happening mostly in the futures market.

They are virtually unchanged.

In the short term, however, there is the possibility for gold to spike up to $1,500 an ounce, according to thank you nomura.

Thank you.

Erik schatzker air has more on the merger with bats and direct edge.

How will this change the competitive landscape?

It is all about volume.

And relative size.

All the sudden, bats will be bigger than the nasdaq, but in the same league as nyse euronext.

This has profound implications.

This company will be big enough to compete with nyse and nasdaq in market data, sell and market data to customers, like big banks or hedge funds.

At some point in the future, it may be able to compete for new listings, say, the ipo business, or stealing oracle away from the nasdaq.

It is all about market share and volumes.

This is what they had to say when i ask them if the merger comes at the success of nyse or euronext.

This is all about value for the customers.

Customers have found that with bats.

Our success will be whether or not we can continue to offer value.

He wants us to believe to a degree that bats can grow the pie and will not come at the expense of his rivals but he did admit, at least in this business, it is a zero sum game to some degree.

I want to get back to this idea of volume.

Equity trading is down 30% from peak levels in 2009, so can this merger be successful, if people do not come back to the stock market?

On the one hand, yes, they say there are synergies to be had, costs to be saved as a result, but most people are waiting for equity market volume to pick up to where they once were four years ago.

I put the question to him, specifically, is what we are living in now the new normal?

I think it is the new normal.

There was a lot of impetus between 2007 and 2009 that had the markets rising.

That is playing out.

Today, people are placing their bets in a number of asset classes, and there is a lot of cash on the sidelines.

We are forecasting where we are at, going forward.

If there is a rise over time, that would be nice, but we do not count on it.

Expecting the status quo to continue, not banking on any uptick.

That is surely a disappointment to those out there, even know if it is not to him.

Thank you.

From public markets back to private ones, our next guests three brands are described as for thinking, fund seeking guys with money to spend.

Thrillist markets to guys.

He is the co-founder and ceo.

Ben, to see you.

For the few people who do not know the story, is originally started as a disruptive newsletter, best food, hotels, travel tips.

Then you involve the way beyond that into e-commerce.

I have heard you say $100 million in revenue is the goal.

Are you there?

Almost this year, and we will smoke it next year low way past that.

Unless some terrible things happen.

How are you going to do it?

It is a blend of media and commerce for us.

We have a great many business that continues to grow.

Building a big the business is tough and there is a lot of competition.

There are forces that pushed prices down as time goes on and i feel like we have this great audience that trusts us, they do what we suggest, and we recognize an opportunity not only to advertise, but augmon our products by selling directly.

A lot of people say that the secret sauce is this blend of media and e-commerce, and that is how you have a distinguished yourself.

I know that you bought jack threads.

You have also added a surcharge for some non-flash items.

Did you do that because you thought that/item did not work as a pure play?

No, it is a great way to inspire people to shop when they are not as a surly thinking about shopping.

The event-based sales are a big thing that we do , but a lot of guys do not necessarily want to be inspired to shop.

What ever is, we needed to provide the service.

We have seen is web 1.0 commerce representing an ability to get things easier and cheaper and faster.

Web 2.0 all about the inspiration.

The next generation of companies will blend inspiration commerce with a real inventory on hand.

How are you supporting the inventory for the non-flash?

We need a 100 square foot -- 100,000 square foot warehouse in brooklyn, lots of things to manage.

We turn our inventory between eight and 12 times a year.

Traditional retail is one or twice a year.

One of the other thing we are doing is a bunch of private labels.

We are creating our own merchandise, figuring out where we see the biggest demand and creating stuff for ourselves.

I know you just bought the crosby group appear this is supposed to be just a cultural piece of the puzzle.

What is next?

What might you do acquisition- wise?

We are thinking vertically right now.

Thirllist always represented food, drink, and travel.

Crosby represents an extension into having credibility in music and fashion.

I think you can expect us to think about other categories that we can not just provide entertainment and amusement for guys, useful, actionable information that helps guys figure out how to spend time and money, and on the back of that, we have always been focused on accessories, clothing, and shoes.

We are now expanding into home and grooming, taking the commerce piece and building a relationship where we understand guys purchasing behavior, and the consumption, and ultimately drive and experience differentiated from anyone else.

There is a lot of speculation that you may go public or be purchased.

Which is more likely?

I hope the the right now.

We are really focused right now having a great time.

Long-term, we understand we have a fiduciary responsibility to investors and get them liquidity.

You want to set ourselves up so that if we decide -- whatever we want to do, those margins will be available to us.

We would like to make sure we are able to go public, but that is not something on the short term.

And even if you are required, your ducks have to be in a row.

I do not want to be in the position where i am waiting for someone to do something.

I want to make the first move.

Thank you very much.

Ceo and co-founder of thirllist media group.

When we come back, investing in your backyard.

Opportunities and american farmland.

And technology changing the ways that we build homes, offices, and the roads.

The company was given an award for innovation.

As you can see, with an hour, we expect president obama to be speaking with former presidents jimmy carter and bill clinton.

They will all be at the lincoln memorial in d.c. they are commemorating the 50th anniversary of dr.

Martin luther king jr.'s "i have a dream" speech . you are looking at a shot right now on the lincoln memorial in washington, d.c. president obama along with former presidents jimmy carter and bill clinton are commemorating the 50th anniversary of the dr.

Martin luther king jr.'s "i have a dream" speech.

You can follow here with us or on bloomberg.com.

All speeches are being taken their lives right now.

When you think about alt investing, farmland may not be of the top of your mind, but there are a lot of investors in that space and it is an and correlated asset.

John taylor is with me now, one of the largest fiduciary managers in the industry.

Glad to have you with us.

Where do you see opportunity?

There is a significant part of the institutional investment community that has followed this for years, so is it too late for smaller players to be involved?

Not really, as long as you have the investment, discipline, and look at the return aspect.

Like any investor, if you just chase it and want to get in -- it is like getting into an auction, getting caught up in a moment.

As long as you are focused on the historic returns that farm land has delivered on the yield side, and then you look a long term historic appreciation rights, this is a great time to be there.

You can see this as well, as our viewers can.

We went back to the 1990's. we have the white line, which is in come, yellow is appreciation, and then people can see how these returns are tracking significant above the blue line, which is inflation.

There were years where farmland was so run up, hard to find value.

That is true, finding value is the key point.

As we look to invest, first and foremost, we are returned- driven.

As opposed to the asking price for an acre, we look at what kind of yield on the cash lease will that acre deliver us based on the purchase price?

And you have be willing to walk away if you cannot return those parameters.

We looked at the historical 20 years and you are probably at 10% annualized return, maybe 4% as current yield, the rest in depreciation.

How you get a hold of these assets?

Interestingly enough, we have been managing farms and trust for about 60 years.

I have the pleasure to have 16 full-time farm and ranch managers and we manage 900 properties.

These are guys and gals that have come from ag families and have ag degrees.

We have a pretty deep rolodex.

We are always losing out farms.

We know the neighboring farmers, we work with could brokers.

The infrastructure that we have been able to build up over that point of time gives us good access to the land.

I have heard of fortune 500 company being interested in farm land to process water or to anticipate food growth from an emerging market countries.

Where are you seeing the drive for demand?

The farm that we have focused on our traditional row crop farms.

If we look at the growing population in the world, the emerging market economies, the increasing per-capita gdp in some of those economies, we continue to see that as the demand for not only the grains, but as those protein demands increase, they are fed by those grains.

As we look at the future of this, it is based upon feeding a hungry world.

Thank you for the time, we hope you come back.

We have a quick break to take.

We will introduce you to a company, disruptive technology.

They just won the r&d world version of the oscars.

And cyber targeting.

How the new york times and twitter were hacked.

It is the r&d equivalent of then far sicker, the r&d research and development 100 recognizes disruptive technology.

The company that received the award may surprise you because it is cement and concrete.

Concrete is the second but utilize substance on the planet after water, creating a $1 trillion market.

Solidia uses a sustainable cement to create a stronger more durable concrete that costs less and is more environmentally sound.

Tom schuler is with me now, the ceo.

You are a mechanical engineer.

He said you got to break a lot of concrete.

How did you come up with this product?

The product cannot work that was done by the ceramics industry at rutgers university.

We found a great transition for it into this huge market as you mentioned, looking for a solution for challenges they have right now.

Can you make it cheaper and how can also be better for the environment?

Normally, when industrial products are cheaper, we think it will leave a bigger mess for the earth.

The challenge is how you take sustainable technologies and make them profitable.

That is how they will be adopted.

If you like the problems the industry has, a lot of energy used to make cement, putting out a lot of co2. a way to reduce debt, the same raw materials, the same kiln, but we can lower the energy bills and the amount of co2 put out.

When you go out and speak with builders, municipal governments, do they understand what you are offering?

How hard a pitch is it?

You can start the conversation by talking about sustainability, but at the end of the day, you can -- you have to provide a product that is better.

The fact that it is green really closes the sale.

You getting the most business right now?

We have opportunities around the world.

It really depends on the market.

Are they interested in the carbon market, or they an emerging market doing what they do with cell phones, skipping the wires and going to the most efficient technology they can find?

Outside the u.s., i know in germany, the netherlands, there is a big green push.

At the grocery store, you actually have to buy your bag.

One way or another, they will make you remember to bring your own shopping bag.

What is the attitude like from your asian clients?

It is a very different view in asia.

There is a lot of investment in infrastructure and they try to find a way, with all the rapid growth, to do it in a more sustainable way.

China is moving a quarter billion people.

Half the amount of resources they will require will be gigantic.

To have to be able to do that efficiently.

Congratulations on the award, tom schuler, ceo of solidia technologies.

It is 26 minutes past the hour and that means bloomberg on the markets.

Olivia sterns has more.

U.s. stocks are still rising.

They pulled back in the past half hour but are rebounding after the s&p hit a two-month low yesterday.

We have a strong surge in energy stocks because oil prices are trading at a near two-year high.

Take a look at chevron and exxon, both up more than 2%. shares in tivo also climbing after they posted a profit.

Keep in mind, they are down 6% this year.

Pulte and d.r. horton in the red.

Sales of existing homes unexpectedly fell in july.


This text has been automatically generated. It may not be 100% accurate.


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