Latest / Bloomberg Intelligence / Bloomberg's Loh on Enbridge Deal, Niquette on Ohio Race (Audio)

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Bloomberg's Loh on Enbridge Deal, Niquette on Ohio Race (Audio) · Bloomberg Intelligence

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  Speaker 1: Global business news twenty four hours a day at Bloomberg
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  Speaker 1: This is a Bloomberg Business flag from Bloomberg World Handquarters.
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  Speaker 1: I'm Charlie Pellett's stocks are holding onto the gains in
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  Speaker 1: inching higher after a number of companies announced deals after
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  Speaker 1: the Labor Day holiday. Energy companies making the biggest gains
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  Speaker 1: as investors hope for a deal that could limit oil
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  Speaker 1: production and send prices and company profits higher. Right now,
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  Speaker 1: West Texas Intermedia crewed up one percent, advancing forty three
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  Speaker 1: cents of arrel forty eighty seven right now on West
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  Speaker 1: Texas Intermedia crued. Brent Crew down six tenths of one percent,
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  Speaker 1: Gold rallying twenty seven dollars announced to thirteen fifty, up
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  Speaker 1: by two percent, and the tenure of eighteen thirty seconds
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  Speaker 1: at yield one point five four percent, SMP five hundred,
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  Speaker 1: indecks up three to eighty three, a gain of one
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  Speaker 1: tenth of one percent down, Industrials up twenty four a
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  Speaker 1: gain of one tenth of one percent ends and to
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  Speaker 1: stack up by three tents of one percent. I'm Charlie Pellot,
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  Speaker 1: and that's a Bloomberg Business Flash. You're listening to Taking
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  Speaker 1: Stock with pim Box on Bloomberg Radio. The shares of
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  Speaker 1: Spectra Energy are higher by nearly fifteen percent today after
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  Speaker 1: Canada's Enbridge says that it is buying the Houston based
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  Speaker 1: company for a twenty eight billion dollar price tech it's
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  Speaker 1: going to create the largest energy pipeline and storage company
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  Speaker 1: in North America. Here to tell us more, Tim Low,
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  Speaker 1: energy reporter for Bloomberg News. Tim, thanks very much for
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  Speaker 1: coming in. Tell us Why does Canada's Enbridge want this deal? Sure, well,
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  Speaker 1: thanks for having me. The primary reason is, you know,
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  Speaker 1: coming out of this energy downturn that we've been undergoing
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  Speaker 1: a lot of the pipeline companies, the midstream sector. Uh,
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  Speaker 1: there's a sense that there's security and being bigger and
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  Speaker 1: being faster, being you know, stronger should there be another downturn,
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  Speaker 1: and this is a play at that. Uh. It would
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  Speaker 1: you know, the biggest ever by by a Canadian company
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  Speaker 1: in another country. So they're really sitting their sites pretty
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  Speaker 1: high with this one. So Tim is part of this
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  Speaker 1: that given uh expense, given all the regulator hurdles you
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  Speaker 1: have to jump through, and then most famously Keystone Excel
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  Speaker 1: being blocked that it's just hey, why try to buy buy,
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  Speaker 1: especially if you're already big to snap up the existing
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  Speaker 1: ones as fast as you can. Absolutely, it kind of
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  Speaker 1: sort of like the old adage, you know, you don't
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  Speaker 1: appreciate what you have until crisis hits. There's a it's
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  Speaker 1: getting harder and harder to to build these pipelines, these huge,
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  Speaker 1: massive infrastructure projects that can span half a continent, um
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  Speaker 1: through whether it's environmentalist sentiment trying to prevent the projects
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  Speaker 1: from being built, uh, regulatory hurdles. So um, there's sort
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  Speaker 1: of a maybe a new appreciation for the pipelines that
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  Speaker 1: already exist and as you said, easier to buy than
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  Speaker 1: to build, Easier to buy than to build. Indeed, is
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  Speaker 1: there any regulatory issue that we need to be mindful of. Well,
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  Speaker 1: it'll have to go through all the usual regulatory um hurdles, um,
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  Speaker 1: you know, shareholder votes. But the sentiment that I've kind
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  Speaker 1: of talking to investors and analysts today is pretty bullish
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  Speaker 1: on this. I think it makes sense, Uh, it'll be
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  Speaker 1: good for shareholders, and there doesn't seem to be a
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  Speaker 1: whole lot of concern. I just love what the Spectra's
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  Speaker 1: CEO said, will be the FedEx of the pipeline business.
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  Speaker 1: We ship, we pick up, we store product absolutely. And
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  Speaker 1: what he might have added to that is you know
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  Speaker 1: where exactly And that's part of the point, which is everywhere.
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  Speaker 1: UH and Bridge obviously is a huge player in Canada.
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  Speaker 1: Specter has been putting a lot of resources into assets
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  Speaker 1: along the Mexican border. UH and they have, you know,
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  Speaker 1: some of the premier pipelines in the US. So this
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  Speaker 1: will really create a company. Some are calling it what
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  Speaker 1: could be, you know, the first super major UH pipeline company.
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  Speaker 1: It's one of the reasons why they're doing this deal
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  Speaker 1: because over the summer, the Canadian High Court next a
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  Speaker 1: project that approval for end Bridge to build a pipeline
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  Speaker 1: to the west coast of Canada to export their oil.
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  Speaker 1: Some people think that might have something to do with it. UH.
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  Speaker 1: And again it plays into the sort of theory that
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  Speaker 1: it's getting easier just to you know, cobble together assets
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  Speaker 1: rather than try to build new ones. Um. Tim, just
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  Speaker 1: a quick comment if you would, on a story that
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  Speaker 1: was brought to my attension but mostly today, but you've
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  Speaker 1: already written your team started written about it last week
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  Speaker 1: about a North Dakota pipeline involves four states, it's facing protest,
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  Speaker 1: it's potentially it may not be blocked, but I guess
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  Speaker 1: it just for our listeners who may not be following that. Again,
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  Speaker 1: it just kind of illustrating why this is so important
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  Speaker 1: to buy existing pipelines. Absolutely. In fact, there were arrests
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  Speaker 1: made last week at some of the protests. It's the
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  Speaker 1: code of access pipeline. UH spearheaded from Energy Transfer, which
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  Speaker 1: is a company that you know, tried to follow a
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  Speaker 1: similar playbook when they tried to purchase Williams Company last year.
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  Speaker 1: That deal inevitably fell through, um and UM. But yeah,
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  Speaker 1: so the sort of the environmental movement is more organized
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  Speaker 1: than in the past. They're able to Keystone was a
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  Speaker 1: prime example. And what did UH Trans Canada end up
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  Speaker 1: doing after the Keystone didn't come through earlier this year,
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  Speaker 1: they went out and they bought Columbia Pipeline Group, So
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  Speaker 1: similar playbook. All right, well, Tim, well, thank you so
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  Speaker 1: very much as you as a story develops, will look
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  Speaker 1: forward to having you back on taking stock. Thank you
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  Speaker 1: so much. Energy reporter for Bloomberg News. Now let's get
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  Speaker 1: to Mark n Catt, Government reporter for Bloomberg News in Columbus,
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  Speaker 1: Ohio today, Donald Trump, Hillary Clinton getting ready to go
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  Speaker 1: to battle in the battleground states. Two months now left
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  Speaker 1: before the election. This is Clutch time mark welcome back. So, uh,
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  Speaker 1: where what are you seeing today? Who are you talking to? Well,
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  Speaker 1: we're kind of following up the Labor Day unofficial kickoff
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  Speaker 1: of the final sprint to the election. Obviously we have
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  Speaker 1: a much longer campaign cycle, but you know, traditionally a
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  Speaker 1: lot of people start paying attention after the summer vacations
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  Speaker 1: and are over in school starts after Labor Day, and
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  Speaker 1: we're sort of following what states the campaigns are targeting. Um. Today,
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  Speaker 1: Donald Trump is in the battleground states of Virginia and
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  Speaker 1: North Carolina. Hillary Clinton is in Florida. But yesterday all
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  Speaker 1: four principles on both sides were in Ohio, maybe the
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  Speaker 1: key battleground states and former as in Bill Clinton was
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  Speaker 1: also in Ohio yesterday sort of for Labor Day events.
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  Speaker 1: And what we're seeing is sort of the map really
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  Speaker 1: sort of focused on the key states are going to
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  Speaker 1: really decide this election, and in the case of Donald Trump,
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  Speaker 1: particularly in the industrial Midwest states like Ohio and Pennsylvania,
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  Speaker 1: that he really needs to win if he's gonna get
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  Speaker 1: electoral votes needed to win the presidency. Mark, there are
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  Speaker 1: what sixty four days to go before the election, in
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  Speaker 1: just seventeen days before the first early voting begins. What
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  Speaker 1: kind of organization does Donald Trump and Hillary Clinton have,
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  Speaker 1: let's say, in Florida right now. Well, we're seeing stories emerged,
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  Speaker 1: including one that my colleagues at Bloomberg Politics put out
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  Speaker 1: the last week, that suggests Donald Trump is far behind
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  Speaker 1: Hillary Clinton in terms of the so called ground game.
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  Speaker 1: This is the get out to vote machinery, registering voters
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  Speaker 1: and getting your supporters to the polls, including getting folks
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  Speaker 1: to vote early to bank those votes. And the reporting
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  Speaker 1: we're seeing on the ground is that, you know, Hillary
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  Speaker 1: Clinton has a pretty robust campaign organization and state like
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  Speaker 1: Florida and also in Ohio where I'm based, in some
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  Speaker 1: cases just sort of uh taking and expanding the ground
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  Speaker 1: game operation that Barack Obama ran in two thousand and
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  Speaker 1: eight and two thousand twelve in those states, and Trump
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  Speaker 1: is behind trying to sort of gear up uh ground
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  Speaker 1: game operations in these states, in part because Trump is
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  Speaker 1: sort of outsourced the ground game activity that a campaign
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  Speaker 1: usually coordinates or or uh participates into the Republican National
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  Speaker 1: Committee or the Republican parties in these states. And that
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  Speaker 1: just means it was a late start and also fewer
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  Speaker 1: resources that are being devoted to the ground game, Mark,
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  Speaker 1: can you tell? Um? And then as you look at
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  Speaker 1: the battleground states and what Hillary Clinton is doing now,
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  Speaker 1: she was sort of pulling back and raising a lot
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  Speaker 1: of money. Now she's going to come out swinging again.
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  Speaker 1: Are are she being asked much about the latest FBI
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  Speaker 1: memo on her email us? Just this is it only
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  Speaker 1: you know, political junkies and reporters who are so interested
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  Speaker 1: in this is voting public to get a sense that
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  Speaker 1: they are paying attention to this, we'll see. I mean,
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  Speaker 1: I think you're right, there's there's a there's a sense
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  Speaker 1: that a lot of this has already baked in that
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  Speaker 1: you know, the people who are paying attention have already
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  Speaker 1: accounted for this. Either they care or they don't care
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  Speaker 1: about the email scandals involving Hillary Clinton and also the
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  Speaker 1: questions about her involvement with the Clinton Foundation and her
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  Speaker 1: time as Secretary of State. But like I said before,
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  Speaker 1: we were sort of the phase of the campaign now
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  Speaker 1: where you know, people who haven't been paying attention and
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  Speaker 1: not unlike political junkies you know, living and breathing this campaign,
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  Speaker 1: are really sort of looking and tuning in for the
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  Speaker 1: first time. UM. And we'll see, if you know, how
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  Speaker 1: much way those particular issues have on them. And I
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  Speaker 1: think a lot is going to be determined, frankly by
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  Speaker 1: the debates this cycle. Um. A lot of voters already
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  Speaker 1: know Hillary Clinton and Donald Trump, and to the extent
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  Speaker 1: that they haven't paid attention, I think the debates will
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  Speaker 1: will help crystallize for them, you know, one way or
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  Speaker 1: the other, how they feel about the issues that are
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  Speaker 1: important or help them decide the race, including you know,
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  Speaker 1: their views about the email situation with Hillary Clinton and
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  Speaker 1: as well as the use of the Clinton Foundation. Just
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  Speaker 1: quickly market third parties, whether it be libertarian or Green Party,
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  Speaker 1: Are they going to have an effect on the election results?
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  Speaker 1: They could, And they're sort of a parlor game going
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  Speaker 1: on right now to determine sort of who do they hurt?
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  Speaker 1: If if you sort of start from the premise that
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  Speaker 1: you know, it's unlikely a third party candidate could win
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  Speaker 1: an election, you know, where does the votes go or
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  Speaker 1: come from? Uh? If if it will goes to a
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  Speaker 1: Green Party or libertarian, does it pull votes from Hillary Clinton,
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  Speaker 1: for example, or help Donald Trump? UM and and we're
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  Speaker 1: starting to see, you know, analysis, even at the state
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  Speaker 1: level and in these battleground states about you know what
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  Speaker 1: impact the third party vote can have. Thanks very much
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  Speaker 1: for joining us. Mark and Nutt is a government reporter
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  Speaker 1: for Bloomberg News. He's joining us from the battle ground
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  Speaker 1: state of Ohio. He's in Columbus. He can be followed
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  Speaker 1: on Twitter at m niquette. You're listening to taking Stock.
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  Speaker 1: I'm pim Fox, my co host Kathleen Hayes, and this
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  Speaker 1: is Bloomberg. Yeah,