attention to next week's meeting. betty: could the price of crude oil fall as low as two dollars a barrel? mark: we will talk with mike turner of ohio about what is next for the iranian nuclear agreement. the republican-led house has just gone on record in its vote against it. betty: good afternoon. mark: welcome back. let's begin with a look at the markets at this moment in time on this friday, september 11. stocks erasing earlier losses. s&p on its best -- on track towards best week since july.

dow industrials also up-to-date . nasdaq is up slightly. energy shares weighing on the s&p 500. -- goldman in gold sachs saying that a failure to his production fast require $20 a barrel. gold futures also falling today. cold at a one-month low. it investors hold off on making big moves before next week's fed meeting. betty: we are erasing those losses in stocks. that is bringing down the gains we have seen in the bond market.

treasuries, still buying going on. in the currency markets, the dollar is on pace for a weekly loss here. that is a different story than what we've seen with the strength of the dollar. we are at very elevated levels. that has contributed to some economists who say it's unlikely the fed will raise interest rates next week. tops get a look at the stories. ceremonies across the nation today marking the tragic events that occurred on this date 14 years ago. house, president obama and first lady michelle obama observed a moment of silence at a quarter 40 6 a.m. 8:46 a.m. victims families read the names of those killed when the twin towers collapsed. remembrances are taking place at the pentagon and the flight 93

national memorial in western pennsylvania. the attacks on september 11 killed 3000 people. mark: more than 50 people dead after a crane collapsed and crashed on a grand mosque in mecca. winds forblame strong the crane's collapse. begins september 21 and is expected to draw 3 million. betty: the mayor of baltimore will not seek reelection this year -- next year. stephanie rawlings-blake has been under fire since april following the death of freddie gray. he died from a severed spine injury after being injured in police custody. the first trial for one of the six officers starts next month. a judge ruled thursday that all six trials will be in baltimore. mark: 11 of the republican presidential candidates will make it into prime time for next

week's debate. among them will be carly fiorina. she was not among the 10 candidates picked for the main debate last month on fox. cnn compiled polls. the debate will air wednesday night at 8:00 from the ronald reagan presidential library. candidates below 2% support will take part in an earlier event. among them will be bobby jindal. are we going to depend on our conservative principles or turn to a man who believes in nothing but himself? egomaniac?t, he is great for laughs. >> donald trump topped the polls compiled by cnn with 24%. jeb bush was the only other candidate in double figures at

11%. mark: the stock market roller coaster making americans uneasy about spending. readings showed the biggest one-month decline in three years. households termed gloomier about jobs. coming up in the next half hour, how low could oil go? goldman sachs cutting its oil price forecast. below $20 in the near term. betty: will bank of america's ceo get to keep his chairman title? shareholders vote later this month. the odds appear to be in his favor. mark: the u.s. house of representatives voted not to approve president obama supported to relieve economics sanctions in iran.

is largely symbolic ahead of a crucial senate vote next week which will have a significant victory for the white house. betty: and a blow to the republicans. one representative who opposes the deal is michael turner of ohio. he is a member of several committees and joins us now from the floor of capitol hill. this was a symbolic vote. on the record that republicans are opposed to this deal. there seems to be little done now to stop it. representative turner: this is a blow for national security. opposition, an majority of both houses opposing this deal. forhouse has taken its vote registering its opposition to the iranian deal. the president has negotiated a deal.

it's bad for our security and the allies in the middle east. the president has been working with senate democrats, blocking the vote. they are unable to register their opposition. it was sent to the president's desk a bill that he would have to veto. the countries who negotiated the iranian deal, the u.s., russia, china, france, u.k. and five permanent members of the u.s. secret counsel -- a counsel. is it your contention that all of these countries have made a mistake? the iranians have pulled one over everybody's eyes? representative turner: they have looked to leadership from the nine states. secretary kerry negotiated a they tried to -- assess what iranians would give rather than what we need. it allows iran to continue to enrich, allows iran to continue

its ballistic missile programs. areof these nations concerned about every aspect of this but they did defer to the leadership of the net states this united states. -- did defer to the leadership of the united states. mark: given the tension between the united states and russia, are you telling us that russia looked toward the united states for leadership on this issue? everybodytive turner: knows that the united states was the lead negotiator and set the tone for all these negotiations. secretary kerry has made it clear that he believes he was the lead in all aspect of this. in that lead, he fell short. we could have gotten a better deal for our national security and our allies. what is the reaction in the middle east? we could easily have an arms race and those who look to the

threat of a nuclear iran. mark: you met with officials. what did they tell you? representative turner: it was very concerning. i met with the lead inspector for the iranian task force. although he is going to be handed a ledger, he believes he can ensure the control, nobody's asking him to certify the ledger. inspections.t be y willare places ther not be able to go. there is a great deal of uncertainty on the ground about what will happen in iran. part of theieve as agreement that iran has to export their enriched uranium up to 90% going to exported.

isn't that something that can be checked? representative turner: that was the point he was making. he can check what they have declared. there is no way to know exactly what they do have. the president cannot negotiate a deal that allows to complete and total this allows for complete and total inspections. itself does not give them that access, so we will never know truly what is going on in iran. , but we willintel not have the transparency, the openness that the president has promised. mark: one of the republicans running for president, donald trump's book was the art of the deal. is there not supposed to be a give-and-take? once i cannot get everything at once. representative turner: this is

about nuclear weapons. there is no margin of error here. this is not the type of deal that donald trump negotiate. this is something that go straight to the heart of national security. you have to go into those negotiations with absolutes that you must have. the president had absolutes, told us what they were and then give them up. that is foolish. mark: mike turner joining us from capitol hill to discuss the iranian nuclear deal. thank you for your time. we appreciate it. , markets on ahead track to end the week in the green. finally as investors look ahead to next week's fed meeting. ♪

betty: welcome back to the bloomberg market day. happy gold and oil toback -- let's go straight a look at the markets. we are holding steady. david: looking here at the major index, also in the green. not a huge amount of volume today. up .02%. we are on track with the s&p to have the biggest weekly gain we've had since july. i want to bring you into my bloomberg terminal to the imap function which charts the s&p by sector. the biggest winners and losers. utilities the big winner. down below, energy. this has been the case for the year as well.

utilities up for the year, energy has been down. another sector has been in homebuilding. i want to turn to this homebuilding etf. that is up .32%. a note from analysts at j.p. morgan looking at the number of home builders, mid-cap and small-cap and large cap. a variety of upgrades and downgrades. toll brothers upgraded to neutral. that is up 1.3%. i will turn to some that were downgraded. taylor morrison and the bci communities -- wci communities. thank you so much. betty: let's get a look at the top stories crossing the terminal at this hour.

russia is calling on world powers to help arm the syrian army which they describe as the most effective way to take down isis. the u.s. and nato have raised concerns over russia's military buildup inside syria. the kremlin has been a longtime backer of assad. a hungarian camera woman caught on tape kicking and as they migrants scramble across the syrian border has apologized. she says she was only defending herself when she saw the crowded -- ants breakthrough betty: trump says he settled all lawsuits against nbc.

the network severed ties with trump in june over his racist comments. that is a look at the top stories at this hour. much more ahead on the bloomberg markets entered oil extending its weekly gain. could it go as low as $20? mark: goldman sachs thinks so. ♪

mark: welcome back to the bloomberg market day. betty: the commodity meltdown continues. oil extending its weekly decline amid the global supply glut. its: goldman sachs cuts price forecast saying it could go below $20 in the near term.

we are also talking about the -- the only missed that by eight dollars a barrel. let's take these long-term forecasts for what they are. let's focus on what we know right now. everyone wants to talk about supply. it has been ugly in the u.s. oil patch. there have been more than 70,000 tax cuts this year alone. when the banks get done with the re-determinations and the credit line dries up, it's ugly now, it murderous next year. we are looking at a significant cut down in production. the u.s. does not export crude oil. no, we focus on opec. talking about saudi arabia. saudi arabia has little incentive to cut back production.

mainly because of iran. now that the deal will go forward, we are going to start to see iranian barrel sit the market. saudi will not see market share to iran. they will not finance iran's nuclear omissions. saudi will continue to produce. longer-term, saudi has the issue of alternative deals. they do not want to see you on luskin more -- they do not want to see you on musk anymore. musk anymore. people are not talking about demand enough. you are looking at the canary in the gold mine. it's not just oil prices that collapsed over the past year. it is all industrial metals. when you look at industrial you look at these economies, the majority of the economists have been contracted.

-- contracting. it is not all rainbows and unicorns out there. barrel?o below $20 a absolutely. will we go there? that is anybody's guess. supply will last year. we don't have enough demand. that paints a template for lower oil prices at this point. saudi arabia has no incentive to finance iran's nuclear ambitions. it is not all rainbows and unicorns. what does this lead you to conclude about where the price of oil is headed? >> in the short term, we are headed lower at this point. >> how low? >> i've already called it below $40. we have gotten down there. the target is the lows we hit

during the great recession, 32. theeen now and sometime in fourth quarter, i will see oil test that range by then of this year. >> talk to me about what is happening with u.s. production. windows u.s. shale hit its trough? this report saying u.s. production will fall by 385,000 barrels per day over the course of the next year. we've been expecting there to be this big glut and it hasn't happened yet. what is your outlook for u.s. production? stephen: it has happened to an extent. where the bulls got themselves into a pickle was the first quarter of this year when oil dropped to $40 a barrel. they said production would fall off. that did not occur because we had a rally in the second quarter. curve,k end of the prices did not come down with

the drop in the stock market. when the banks re-examine their credit line, they kept dishing out the feds easy money which kicked the can down the road. now we are going into the fall determination and the banks are in a less giving mood. this point, we are going to see a significant pullback in production. if we look at the job cuts in north america -- in the united states alone, 70,000 job cuts have occurred in the first eight months of this year. we are far exceeding anything we've ever seen. not -- it will be a tidal wave in the fourth quarter. very indeed going to be a poor picture for the oil patch and production going forward into and through 2016. mark: that was stephen short speaking earlier today on the

bloomberg market that. betty: certainly did not mince his words. a quick check on the headlines at this hour. party winningling a majority of seats. the party will continue its 50 years in power. faced a contested election in every district for the first time since independence mark:. the federal government ending a decades long relationship with waldorf-astoria hotel. it is now under chinese ownership. that has u.s. officials concerned about possible espionage. this which has been in the works for months but was officially announced today. it has been an interesting week. it seems all of the sentiment in global markets is aimed at the u.s. the federal reserve is meeting next week. this might be the most anticipated fed meeting in recent memory.

is the market ready? our investors ready? the thinking is shifting that because of global events, with happening in emerging markets, the fed might decide not to move on interest rates until december or maybe early 2016. extremelyreally is come extremely close. this is not a 60-40 situation. have four trading days left. before the decision. mark: we will give you all the information. have a great weekend. betty: great to see you. mark: stay with us. bloomberg market day continues in just a moment. ♪

this is a great place to work. not because they have yoga meetings and a juice bar. because they're getting comcast business internet. comcast business offers convenient installation appointments that work around your schedule. and it takes- done. - about an hour. get reliable internet that's up to five times faster than dsl from the phone company. call 800-501-6000 to switch today. perks are nice. but the best thing you can give your business is comcast business. comcast business. built for business. mark: welcome back to the bloomberg market day. thank you for staying with us. let's get it straight year cap headlines. vice president biden is making clear that his decision about

running for president is more emotional than political. the vice president. less light on stephen colbert's new late-night show and said he is not real ready to commit to a white house run. >> i do not think any man or woman should run for president unless, number one, they know exactly why they would want to be president, and two, they could look at the people out youe and say i promise you have my whole heart, my whole soul, my energy, and my passion to do this. the vice president says he and his family are still reeling from the death of his son in late may. the vice president has run for president twice. then rights activists say united states should expect more migrants fleeing the syrian war. with the obama administration say security issues slow the process. the resident wants the u.s. to take in the next fiscal year.

has accepted to her than 1500 since the war started four years ago. the white house says it's 9/11 it takes up to two years for refugees to clear security. european governments are still working on a plan to cope with the micro crisis. today austrian police closed sections of the main road between vienna and hungarian border. asylum-seekers formed a long line and are walking for the capital. of national intelligence says hackers may change strategies to disrupt financial markets. james says new cyberattacks might seek to alter electronic data, instead of just stealing it. he told the house panel thursday that hacking and expected by both criminals seeking profit, and as a tool of war to destabilize the west. big week ahead for netflix. their first original movie will be streamed at the toronto international film festival. the violent drama about an african warlord is the video streaming companies as chance

and an academy award. it is not just about glory. netflix wants to get more people accustomed to watching new, with quality films at home his 65 million plus worldwide subscribers. coming up next half hour of the bloomberg market day, will bank brian moynihanf keep his ceo and chairman titles? we will tell you about the shareholder meeting coming up this month. and we will get a look at the an prices coming up with associate researcher. we will also get more insane on china's economy. ken arpers professor and howard spoke with bloomberg this morning. >> here is a country that is growing at a phenomenal rate. a verye managing complicated economy, they have gone on for years and years, 30

five years without having any financial crisis to bring it to a halt. it is just very hard to do. when that happens, when you have a slow down, they have pockets of debt where they are obvious. housing is not such a problem, but we do not know what it is. outlet where we were in the united states in 2008, they have very large reserves compared to the gdp. they could write a clean check and clean that up. have beenn, but they writing a lot of checks with the reserves. it is not clear exactly how much liquid reserves they have free in order to stop the system at the moment. there is a lot of debate about that. a broader question about their shifting from being over 50% of gdp investment. he just cannot go out like that forever. on experts say you cannot go like that forever. we try to transform the economy it is very hard to do it if you gently put on the brakes.

ini go back to the monograph imf has the idea of regimes,owing currency do you have the confidence that china can devalue and then manage a depreciation and even reverse and appreciate in the last two weeks? inyou hit on a weakness their system. they have a lot of reserves, they have a lot of strength of the exchange rate is not as flexible as it needs to be to deal with this complex economy and these kind of changes. what i think our advice back in the day was was why don't you make a more flexible while you are strong? >> this is the arch question right now. the idea of a guy like you saying to china you need to freely float -- >> nothing happens quickly in

china. every year we have a debate about should you you move faster, slower, i think they should move faster. they have that in the plans but it has not been happening. now thee waited and economy is weak and it is much harder to do it when you are weak. >> there has been pressure for some time to devalue. and now we set your gone too far, you should come back up some. how important is this special drawing to them and to us? >> it is a lot of credibility. there is no question that is part of why they devalued. but i think you should think of it as the people inside china who would like to liberalize the market and use that as a lever to try to move things along. >> how do you play this as an investor? you go back to the calculus of buying u.s. with the multinational? or can you people bold enough of

the emerging market challenges to go out and acquire china shares or results shares? >> i currently would be extremely careful venturing into chinese share or brazilian shares. markets, i would rather perhaps by a mexican stock or a south african stock. there are other places that you can find stocks to buy. the whole chinese thing i find troubling because the data is so problematic. we do not really know what is going on there. >> i cannot agree more. i'm interested. i look at the academic studies, and they do not show it to be as bad as you would think it would be, looking at other indicators. how bad oro not know good it is. i do not know if i cannot trust the numbers. was 50%ention that it of gdp.

that has to come down to a more sustainable level, which is south of 30. >> have a years will that take? >> but a lot of years. a lot of years of slower growth. >> what replaces the plan of reduced investment? >> most economies, as they mature, maybe not all -- on jobs isiplier much less when you wait for investment to consumption. this gives to the heart of the problem, which is jobs. professorshis speaking this morning on bloomberg surveillance. tune in next wednesday we we mr. be speaking with galliano primetime exclusive. we will be with tom keene, michael mckee, and primetime surveillance will be commercial free for one hour at 6 p.m. new york time.

mark: welcome back to the bloomberg market day. let's get to a check of the markets on this friday. >> it looks like we're seeing a little bit of red, it has been in the green for most of the day. the s&p 500 down 2/10 of a percent. the s&p actually doing pretty well this week. they have not done this well since july. the dow jones industrial average o of 100th of a percent. imact to take you to the function, charting the s&p 500 by sector to see what is doing well and what is not. doing worst is energy.

that has been the story of the year. if you look in the sectors that have been doing well over the course of the year thus far, utilities have been doing the best. energy has been doing the worst. the reason for that today, oil. we had this note, from goldman sachs this morning reevaluating their forecast for oil. the big news, the headline from that is the fact that goldman is now saying we could see oil go for $20 a barrel which is pretty startling. the reason for that, production and supply. wouldtion outside opec fall by 500,000 barrels a day in 2016. big news when you look at oil. i want to talk, the energy losers specifically. murphy oil corporation down 7%. this is a producer rate transaction almost 5%. this is the company that runs floating mobile drilling rigs

not a grade time to be an outline of work. this was the subject of a downgrade by wells fargo earlier today. natural gas processing and transportation saying right now not a grade time to own five west for natural gas. there have been a lot of by bloomberg that we could be seeing a takeover of loans by energy transfer. that specter being raised once again. lastly, let's look at the 10-year note. a lot of investors are waiting to see what happens next week in washington. we are expecting the enough from janet yellen on that today fed meeting about interest rates. we are seeing very low volume today when you look in those indexes again. here we see the yield down just slightly at 2.18. back to you. mark: thank you. now is take a look at the european market close. mark barton reports from london. registered a biggest weekly gain in two months, and there's only one thing that matters now, next week's federal

reserve policy meeting. investors confident that china will stabilize its financial markets and its economy. that led to the first rise in asian shares, and the first increase in chinese shares on a weekly basis in four weeks. the stoxx 600 has rebounded 5% since dropping 5% on august the 24th. that was its biggest decline in seven years. 13%l, the benchmark is although a record. let's have a sneak peek at some of the day moving equities across europe on this friday. drugmaker, 5.4% lower late thursday. it is in talks to buy texas-based firms. a danish telecoms company in the 7.7 percent lower today.

nordic telecoms companies wrap the merger of the danish businesses and a new opposition. that means that this company is going to be less competition in glencore, one of the biggest suppliers across the european markets had its biggest weekly decline ever. week, 7%.ounded this the big news came earlier this week. their $30to reduce billion debt. stocks fell on friday, but over the weekend they rose. the biggest advance in two months. mark: reporting from london. in asia shares dropped on the news that the chairman tried to take the company private. we are in hong kong. >> it would have been the world against buyout ever, costing $70

billion. he entered talks earlier this year with an overseas partner to take his flagship company private amid debt investor does investor -- and investor discontent. bloomberg he strapped the privatization plan on his disagreement over financing terms. a spokeswoman declined to comment in tokyo on friday. reporting from hong kong. let's take a look some of the top stories bossing the bloomberg terminal at this hour. foreign ministers from the central european nations of the czech republic, hungary,: and slovakia rejected the eu's latest plan to relocate 160,000 migrants across the 28 nation bloc and introduced mandatory quotas for taking them in. they say the goal should be to gain control over the eu's external borders.

germany accepts the most migrants of any asian nation and is leading the purse -- push for quotas. 40,000 migrants are expected to write their over the coming weekend hundred thousand this year. cuba is making some special arrangements ahead of the po pe's visit saturday. they will release 3500 inmates. no political prisoners or those a houston violent crimes. they issued similar releases before papal visits in 2012 and 1998. ahead of the arrival here in the united states later this month you can now top off your text and tweets with the monkeys from the new pope no gf. interviewed today for ios and android. the pope standing next to lady liberty, posing at the lincoln memorial event on a sub.

they were commissioned by global catholic network for the #good is winning campaign. terminology start of choice thet of talking to change way we take showers, silicon valley gateways like to along with kickstarter factors are lledking to a startup ca netgear. we asked how it works. >> we decided to revisit the shower experience because one of our cofounders realize this is one of the variable cost. you have to create as good an experience or people will not use it. we've been working on for about five years. we moved to san francisco about a year ago. and we atomize water. we can break millions of tiny droplets which creates more surface area and that is how you get this immersive experience. i have never been impressed

by modern shower. i am always disappointed. i like to be in a prewar villain so i can get gallons per second. do you think this will give me the same feeling? >> into is totally different. it is halfway between a steam shower and a regular shower. a regular shower me get to three-on-two's diameter stream, and you to reposition your body. here you walk in any have a column of what investors reviewed why -- two or three feet wide. i will try one. you can buy one for 299 honors kickstarter campaign. you are looking to raise $100,000 and he won't raise 2.1 million already. >> the outpouring has been incredible. >> you have support from tim cook and campbell as well. >> we were introduced to him, and he tried it and loved it. incredibleided the

feedback along the way. we have been fortunate. >> you have sold about a thousand of them on the kickstarter campaign. aside from your average american like me who wants to try it, are you getting hotel chains, are exercise chains? >> is for the reason we are in new york. states?in the united europeans look to save water. >> 40% of our sales have been international. amazingpretty percentage. mostly in europe, australia, and asia. california is in a position to really use a product like this, considering the four-year drought they have been in. >> we are in the process of aligning those up. >> what is next? hascame from a startup that

waterless toilets, now you're saving water with shower. how important is water conservation to you? >> very important. and more than that, the way we use this to make a change in the world. it is just that i used to products that change water. the next product could be outside of the bathroom. we are going to focus on how you use water in the hall more intelligently. the only way we're going to try something that is meaningful is is the experience is better. obviously, the experience is going to better and the performance will be no better -- will be better. >> you will save fuel as well as water. is significant cost-saving. the cost not release of heating the water is more than the cost of the water health and -- water itself.

>> thank you. mark: still ahead on the bloomberg markets eight, will bank of america's brian moynihan keep's ceo and chairman titles?

mark: welcome back to the bloomberg market day. turning to bank of america and its ceo, will he keep both of his chairman's titles? hughes sun. som tothere a call by have him splite? >> corporate governance folks say winter weather what them combined because they are two different jobs. one is managing the company, the other is oversight. to have one person with those two hats, people think it is a bad idea. and is the case with most

it does not work with have them combined. mark: do we have a sense of what mr. moynihan thanks? >> he wants to have both jobs. he is loving with the shareholders to get support. the investors, is this going to be a tough fight for them? >> thing that i thought was interesting, is in the run-up to the vote we had a lot of people were saying that this is an abomination and they should separate these roles, look at the performance of the stock. however, when you look at the big institutional holders, they are actually ok combined ceo chairman. isk: is corporate america there is this human cry for people to say one job at a time? focus on one thing and let someone else take the reins?

>> this is something that has increasingly been an issue, but it probably is mostly in the pensions, corporate governance types. it is not the core of what people consider in terms of the structured movement. mark: how is the usa's performance going to factor into this? >> bad time to hold a vote. another reason why they should be sweating a little bit. they are down 10% this year alone. wouldn't the day that he took over, and the stock today, and in almost six years the stock is only moved up about 7%. that is terrible. thosethis is one of things were people say he has suffered because he has too much on his weight? theeople point to

countrywide problems. that excuse has run its course and you need to focus on growth today. mark: finally will be covering that, we will look for it on bloomberg.com. thank you. coming up in the next half hour, how low can oil go? commoditiesead of joins us, and as we head to break, a look at the markets on this friday, september 11. we are seeing a mixed day today. markets are often session highs. 7% -- ais down and 10 10th of a percent. ♪ we live in a pick and choose world.

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all of the recent volatility is the result of falling the turgor -- pulling the trigger three times. good day, from bloomberg world headquarters in new york. it is friday, let's get you a look at stocks. they turned positive at midday. they need our highs about an hour ago. we had given up some gains as we go into the last couple of hours of trading. perhaps no one wants to be too long before the fomc announcement brady look at the week, a mixed performance overall. that is a little bit off