from bloomberg world headquarters in new york, i am betty liu. here's what we're watching at this hour. the dollar is rising again following its biggest weekly loss since may. what it means for the market and the fed's upcoming interest rate decision, the hike we are all waiting for. overseas, celebrations in the streets of venezuela as the opposition wins a majority in congress or the first time in 16 years. how the government is addressing the deep economic challenges, and what does this mean for investing in emerging markets? shares of chipotle are tanking, down more than 21%. shares of curie green mountain are soaring -- keurig green mountain our surrey that -- are

soaring. buy.is a lot of k cups to ramy inocencio has the latest. to date rebounds on friday and we're back down again. ramy: investors are giving up some of their gains, but today the stronger dollar is a bit of a wait on the markets. the s&p down by about 11.7 points. i into my bloomberg terminal, want to show you the health of the s&p. , andan play along at home you can see the energy sector is the biggest lag or. --lagger. it has accelerated losses, down about three and a quarter percent.

you can see all the other sectors from consumer discretionary to financials and health care down by only half a percent or so. the energy sector definitely taking a beating. you can check out all of securities. based on the weight on the s&p, exxon is down by about two and a half percent and chevron down 3.2%. definitely energy taking a hammering. betty: because oil is back down below $40 a barrel, right? and: oil is falling again, this is for the second time in a row it is below the $40 a barrel mark, all because opec pushed aside the output quota of 30 million barrels a day as member nations tried to hold onto market shares. they will only revisit the quote is back in june. nymex crude is down by nearly 4%. year to date, the price of oil

as we all know has fallen by more than a quarter. down by nearly 28%, and if you think that is bad, look over the past two years. oil has fallen by nearly 61%. back in 2014 eight fell about 46% alone, it's worst annual performance since 2008 during the great recession. let's take a look at williams company, down by nearly 12%. chesapeake energy down by 7%. betty: thank you so much. let's check in now with david gora from our news desk. david: seeking to reassure americans in quiet critics, president obama made a naturally tell of -- nationally televised speech to talk about the battle with the islamic state. he called the san bernardino

shooting "a new phase in the fight against terrorism." last night's speech was only the third delivered from the oval office. the woman who carried out the mass shooting with her husband details havefew emerged about her life in pakistan where she lived from to7 two 2014 before she left the united states on a pharmacy visa. she got a pharmacy degree in 2013. of a stabbingd and london is in court today, charged with attempted murder. he had images associated with the islamic state on his mobile phone. accusingovernment is the us-led coalition of launching airstrikes on the syrian army.

the u.s. denies the claim, outng the alliance carried for strikes against oil wells, all of them miles away. set to arrive in texas soon after the state eased on its fight to stop them. nine refugees are scheduled to arrive in houston on thursday. governors of about 30 states oppose receiving refugees after the terror attacks in paris. that is look at our first word news. breaking stories at the new bloomberg.com. betty: thank you so much, david guerrera at the news test. -- news desk. that is a little bit stronger than their earlier forecast of the euro actually falling or weakening 290 five cents against the dollar in the next 12 months.

the investment bank has changed in position after the ecb says it would send the total tumbling and we saw it strengthen about 3%. what does this say about the market's confidence in the currency market? i want to bring in mark chandler. also with us is rachel evans. mark, i want to start with you because they say the ecb change not going toy are let the currency weekend as much as everyone thought they would. is kind of awkward for me to comment about another bank's strategy. our forecast for the end of this year has been one of five, and we did not expected to go through parity this year. we do not have it going through parity until close to the middle of next year. betty: why is that? marc: we place much more

emphasis on the diversion seem. the ecb did cut rates and ease policy last week. must likely they will raise rates and tighten policy going forward, and i know some of my colleagues -- even if the first rate hike is priced in, what about the next one? the federal reserve has told us that they expect the rate hike to be appropriate once a quarter, or every other meeting next year. the march hike is not priced yet. i think it should be a greater chance than 50/50. chance, andut a 40% i think it should be something well over 50% given the strength of the jobs data and signals of the federal reserve. page, i am looking at our and you are absolutely right about that. rachael, i think mark brings up some good points and i am curious overall.

doubts theink anyone dollar will weaken and the euro will strengthen, it is a question of how much. rates, the ecb did cut however it did disappoint market expectations. stock are trying to take and think about exactly how far and how fast we could see the euro weakened. betty: what is really behind that strengthened euro last week? was it people covering perhaps some of their positions? rachel: market positioning was very stretched going into the ecb meeting. us petitioning growth have been high since may. there was a lot of running for the exits, trying to cover those positions as you pointed out. marc: i wonder if there would

,ave been a rumor by the fact no matter what the ecb would have done because of the positioning. in those commitment of traders you refer to, the gross long position -- most people focus on a net position and there is a huge net short position -- but if you look at the gross position that separates the long from the short, long positions are the currency futures. contracts are gross long. it is not as if anyone thinks the euro is going to fall. some people do, obviously. betty: but not everybody. marc: many people have called the bottom of the euro. that is an interesting point because forecasters call for the euro to rally into next year. that contrasts quite significant lately -- quite significantly

with this idea of parity. betty: i want to throw in another topic, and that is china. they have taken over this working group of the g20 where they are looking at perhaps making the global economy a little less reliant on the dollar. let's face it, we have seen the impact of the dollar on commodity currencies. what do you make of that? marc: they are the rotating leadership, and the chinese take over at next year. u.s.may be the end of the and china joining the sgr. does this take anything away from the u.s.? i say no. positionof the rmb's is coming out of europe, not the dollar. the chinese talk a good game with having a substitute for the dollar. betty: they are saying let's make the fcr the currency of

choice. marc: i think it is completely impractical. nobody believes it will replace the dollar. it is not even supplementing the dollar. it is agreed to by the imf, and this is the kind of vote the chinese have very little voting stake in. the u.s. has a veto on most decisions which require 85%. chinese, these claims about the chinese wanting to replace the dollar with the sdr's long-term thinking, and it will not impact most of us in our time as investors. betty: thank you so much for joining us, mark chandler. ,lso thank you to rachel evans our bloomberg four x reporter. much more ahead, venezuela's opposition wins a majority in congress for the first time in 16 years.

we will examine what it means for venezuela. and the rest of the emerging market. chipotle in crisis, the company scrapping its 2016 forecast. chipotle would do anything to move past this helps care. hillary clinton weighing in on how to rein in wall street. those stories and much more on bloomberg television. ♪

betty: good morning, and welcome back to "bloomberg markets." time for the bloomberg business flash. a new survey finds business economists slightly less bullish about prospects for economic growth next year. is a growthforecast

of 2.4% next year, down slightly from its september survey, however they expect the jobs market to continue strengthening, with unemployment dropping next year. it stands at 5%. ge abandoning plans to sell its appliances to electrolux. the deal was estimated at $3.3 billion and the move comes during a legal battle to get the acquisition approved by regulators. the justice department saying the deal was bad for consumers and that the public was well served by the antitrust case. you can always get more business news at bloomberg.com. i want to have back to our markets desk where ramy inocencio is looking at some of the company movers. it seems like we are all kind of affected by chipotle. ramy: i think most of us are.

i am not a big fan, i am not sure if i'm allowed to say that. betty: you are a healthy guy. ramy: investors are not happy with what is happening with chipotle. investors really losing their appetite after the fast food chain filed this report on friday with the sec with an update on the e. coli fallout. chipotle is down about three and a half percent. they say comparable restaurant sales will be between minus eight and -11%, noting nonrecurring expenses between $6 million. part of this is to replace food and part of it is to analyze food samples. chipotle rescinding its 2016 outlook for comparable sales increases. cut toting has been market perform from outperform. another stock that is moving,

not in food but in the auto industry's, pep boys is getting a boost. stakecahn disclosed a 12% in the company and pep boys is up by nearly two and half percent. n is saying they should sell their business to auto plus, which he controls. in a regulatory filing of his own, he says pep boys real business retail parts is and ask equipped synergistic acquisition. in other acquisition news, a $13.9 billion deal in coffee. uprig greenmount coffee is by nearly 74%. it has been acquired by an investment group led by jab holding company. one share has been priced at

$92, which is a 78% premium from its friday close. interestingly, going into coffee is not new. it has brands including stumptown and intelligentsia coffee. betty: and pete's coffee. thank you so much. let's turn back to emerging markets. that is kind of the big deal as of late. celebrations in the streets as venezuela's opposition won a majority in 16 years for the first time. voters turned against the government. it presents lots of challenges for those who have iron stomachs. gary guerra brand has told me last week that there is still opportunity beyond the u.s. borders. gary: the u.s. is viewed as stable, strong, steady growth, low single digits forever.

it is visibility and there is a liquidity and safety that the u.s. contracts. e.m. has always been the opposite and now there is such a dichotomy between the two, and it makes for those of us in the business of investing in emerging markets that much more rewarded for being disciplined. betty: those who are disciplined will become the winners. miami is kathryn mooney via. bloomberg -- and bloomberg is caught tia. -- caught tia. on venezuela, tell us the significance. ia: we have to see how much majority they get because if it is less than 66%, people are not that bullish and a lot of it has to do with the symbolism behind this, and exactly how far they

can go in terms of weakening the president. any majority can call for a recall referendum but the stronger they have in congress, the more they can do. they can appoint new supreme court officials, change the constitution, and go after stronger problems. betty: as someone who follows closely not just events in venezuela, but china and other emerging markets, they have been roiled by the stronger dollar. when you look at what happened in venezuela, what do you say? >> they specifically are taking more of a hit from the surge in the u.s. dollar that we have seen so far. i agree that the u.s. is going

to be so so in the disciplined investor will find valley -- value in some of these undervalued asset classes. i think there are some opportunities. we have never considered 2015 a real high probability of default , and the next payment is coming up in february. beyond that, the next payment is coming in the second half of the year. i think this is very positive. the majority would be more effective in terms of undermining and actually reversing these detrimental policies that have really cripple the economy over the past almost 20 years in venezuela. i think there is opportunity. betty: they would say you can make money in high times and in low times. these are certainly turning points, particularly in brazil. estevez, we have some pictures of him being hauled off to jail.

week,as saying to us last this is the equivalent of lloyd blankfein being pulled into jail. it is incredible. katia: you have had a lot of stars fall in brazil over the last couple of years. he represents this golden boy. he is relatively young, under 50. he is the youngest self-made billionaire in brazil. we have these pictures of him being hauled off to jail, and road aleagues in rio spectacular piece over the weekend about the conditions he is facing. infested, squatting over toilets. it is jail. kathryn: it is jail. betty: thank you so much. much for joining me

this morning. still ahead, president obama's message to silicon valley -- we need your help to fight terrorism. more on his oval office speech after the break. ♪

betty: we are just getting word that the u.s. department of homeland security is going to be announcing a replacement for our warning system to alert citizens and country -- companies of terrorist threats. this comes in light of the president's address last night on terrorism. megan, what do we know about this new system? to put in place a system that will be better for them to be able to alert people of the threat of national and international terrorism. this comes in the wake of paris

shootings and what we saw in california last week. quickly, the big take away from obama's speech last night, what is going to be actionable? megan: very little details on the strategy we are using. enhanced scrutiny of the visa waiver program which allows people for more than 35 different countries to enter the u.s. without a visa, and cooperation with tech companies. and what more they can do to step up in the fight against terror. you.: megan murphy, thank our washington bureau chief. ♪ sure, tv has evolved over the years.

it's gotten squarer. brighter. bigger. it's gotten thinner. even curvier. but what's next?

for all binge watchers. movie geeks. sports freaks. x1 from xfinity will change the way you experience tv. betty: live from bloomberg world headquarters in manhattan, you are watching bloomberg television. i am betty liu. david gora has more from our

news desk. david: thousands of employees of san bernardino county are getting ready to return to work. investigators are still looking into what led them to led site k -- syed farook and tashfeen malik to open fire. loretta lynch has announced the civil rights investigation into the chicago police department. this comes after video was released of a white chicago police officer murdering a black teenager. mayor rahm emanuel has fired the city's top cop. joe biden is in ukraine. he announced $190 million in u.s. assistance. he said ukraine's currency has stabilized and that the journey since economic protests are "nothing short of inspiring."

the warring parties in yemen agreed to start peace talks this week. could be announced in days. nearly 6000 people have been killed since the civil war broke out nine months ago. the rebels control the capital and other cities. a coalition of gulf states led by saudi arabia has been bombing the rebels. former president jimmy carter is cancer free. he revealed four months ago that the melanoma had spread to his brain. you can get more on these and other breaking stories 24 hours a day at the new bloomberg.com. betty: thank you so much. continuing its struggle to contain damage from an e. coli outbreak at its restaurant.

shares are plunging again after the chain revoked its forecast for the next fiscal year. they did that on friday. 20% after the illness was first reported and the stock has dropped as well. i want to bring in craig g iamona. they have taken back their forecast. >> they are reporting their first ever quarterly drop since they went public in 2006. it's the first time we are getting a really clear look at the damage that this e. coli outbreak has inflicted. betty: it's incredible. i thought they had contained this. >> there was initially a sense that it was contained. they closed those restaurants and cleaned them. the cdc said it is in additional state.

it's not under control. there's no culprit. all the analysts are saying without a culprit they can't really move on. they can't get closure and it's really lingering out there. betty: who are they working with? >> the cdc is investigating. they hired a laboratory out of seattle. they announced a lot of that on friday. they have announced plans to inspect the supply chain and get it under control. saying this is what it was, it's very difficult to get closure. betty: is part of why the shares are falling -- the shine is coming off on chipotle and investors are looking at the stock and saying, maybe it's a little too expensive. >> that was going on before it all broke out. their sales were up 17% last year. they had a 2.6 percent sales gain before this hit.

there were concerns about this company reaching middle-age. betty: is it overpriced? >> now it's really slowing down. this has put a ton of pressure on them. betty: what is chipotle saying? >> they have a buyback. they announced that friday to take some pressure off the stock. we will see if that helps. i really think this e. coli thing is going to be the headline for them until there is some kind of closure. betty: thank you so much. i want to bring in jeff bloomberg managing editor for global deals. there is a deal happening in the drinks space. the $14 billion acquisition of keurig green mountain by this group called jb. ab. >> if you drink coffee, you coffee even if you

don't know it. they bought caribou coffee. bought de master blend. mandalay coffee company. premium. a 78% the shares has been as high as almost 160 a year ago. they got down to 40 just last month. 92 is right in the middle of that. betty: doesn't that raise a question of why they are paying this premium if stock has been on the decline? >> i think they have -- i think they are trying to keep anyone away from trying to compete. is this a good price? it's $60 below where it was a year ago. betty: so it could be a bargain. >> people have been complaining

that their new sales -- keurig it hasn'tcold thing, been selling as well. and people are complaining that their coffee doesn't taste all that great. betty: what is jab going to do with keurig? >> sometimes people compare them to the 3g group. its three guys. the reimann family over in europe. they just let them run themselves. they don't force a lot of cost cuts or mergers. that's probably going to be the same with greenmount and. mountain. try to they are going to figure out what they can go into besides the singleserve business. and there will be other products that come along. betty: is anybody else interested in keurig?

>> not as far as we can tell. 99% of the time deals go without a competitor. betty: and with a deal price that high. thank you, jeff mccracken. much more ahead on bloomberg markets. hillary clinton tackling wall street. how does she plan to rein in financial instituteions? and grammy nominations are announced. kendrick lamar seems to be the big winner so far. and opec's tossing aside any idea of limiting oil production. his opec still an influential cartel -- is opec still an influential cartel? ♪

time for the bloomberg business flash. -- moves to simplify the legal structure of its european banking organizations. that's according to people with knowledge of the matter. a combination of citibank europe and the u.k. citibank international would have $57 billion in assets. well over the threshold for oversight. the new ceo for barclays is considering deeper cuts. that would mean elimination of another 20% of the bankers. those cuts would be in addition to an existing program to reduce staff by 7000 through 2016. commonwealth bank will start to wind down its equities team later this month. the lender is entering an

alliance with goldman sachs to offer clients access to global equity markets. an undisclosed number of jobs will be affected by the units closure. you can always get more business news at bloomberg.com. time to get you caught up on all the action around the world. in asia. start most of the markets rose after the u.s. jobs report on monday. that boosted optimism. china is stepping up its measures to limit market volatility. shery ahn reports from hong kong. year, theg next trading session for stock futures will begin 10 minutes later in one with the cash markets and and 15 minutes earlier. volatility has been surging as volumes -- futures hovered near record lows last week. the time advantage will prevent wild movements on the futures from affecting the spawn markets.

this comes on other measures to curb volatility. china is starting a stock market circuit breaker next year. a move of 5% will trigger a 15 minute halt. a move of 7% will close the market for the rest of the day. now to europe. bloomberg's mark barton is standing by. what gives? we are declining and you guys are rebounding. >> the tables have turned finally. after our biggest weekly drop in three months. look at europe today. we are trading higher. strategists are still bullish on european stocks. j.p. morgan chase -- they think the recovery will bear fruit. the overweighted starts on the likes of the euro stocks. pointoxx 50 values that -- 14.7 times estimated earnings.

can't get away from what happens in vienna on friday, sending oil below $40. look at the big decline. all the energy stocks in europe today. check out the big declining stock. look at electrolux. the appliance maker. thatys the deal to sell it supplies business isn't going to happen. it's got the jitters because of regulatory concerns in the united states. electrolux down by 13.5%. abouteek we were talking that infamous call about the euro last thursday saying it would move 3%. of course it rose 3%. i know you were chatting with one of the currency guys about that earlier. robin brooks has raised his euro estimate.

he says he's lost faith with officials wholeheartedly pursuing reflation or policies. stat today ise about the european bond market. bonds fell on thursday. yields rose on thursday. check out yields on some of the main 10 year bonds across europe . before the ecb meeting, over $2 trillion of european debt was yielding less than zero. $1.52the meeting, just trillion of debt. that tells you the effect of draghi's disappointment. basically he said -- if we need to do more, we will do more. betty: i know. and everyone is reassessing from the debt markets to robin brooks. we are going to reassess the

european markets with you in the next hour. i will see you in a little bit. back to the u.s. markets. we are seeing a continued selloff. we are near are loads of the session. abigail doolittle's live from the nasdaq. >> stocks are lower here at the nasdaq. we are some winners trade significantly higher including keurig greenmount and. mountain. it has been announced that the company has entered a definitive agreement under which the jab investment group will acquire keurig for $92 per share in $92 per share in cash. airlines,g to the american airlines and jetblue both are up nicely. a wall street analyst who wishes

anonymous and george ferguson agreed to lower oil is why these stocks are trading higher. it is about 60% of an airlines cost. berge ferguson jetblue could outperforming because there's no international exposure and this company has a niche market. it supports airfares to florida and the islands. shares are up nearly 70% today. betty: thank you. hillary clinton published an op-ed in the new york times this morning titled, "how to rein in wall street." she says she would fight for tough new rules and more accountability that go well beyond dodd-frank. how is she going to execute

this? joining me is jennifer epstein. outlined sounded tough. what she outlined today in the times is something she has also written about for bloomberg view. it's are set of proposals. she is reiterating them. because republicans in congress are working on a spending bill and trying to insert different measures that would roll back parts of dodd-frank. goingtrying to say, i'm to be strong on dodd-frank and urging congressional democrats and president obama to stay firm on that as well. on top of that, she's trying to get back some of the attacks that she's gotten from bernie sanders and martin o'malley and other democrats who are saying -- she's not tough enough on wall street. so she can say, look at me. i am tough. dodd-frank is just the beginning. something she has said for

months, but just reiterating it again. she's also rolling out a plan on inversion. betty: i know on wednesday she's some more tax measures. just on what she said today in the op-ed, let's bring that up. she's talking about imposing a risk-free on banks with assets of more than $50 billion. giving the government more authority to break up tanks. -- breakup banks. -- she hashis already said this. is any of this going to go through congress? does she have any chance? >> it would depend on the dynamics of congress. headingthat things look into the 2016 election is that republicans are likely to maintain the majority in the house and senate.

it's going to be a fight the same way it was for president obama after the first two years when democrats ran both chambers. this is not going to be a slamdunk. anything that does get through is going to be hard-fought and there's going to be lots of changes and it's probably not going to look all that much like what she's talking about right now. on wednesday, what are we going to hear about inversions? supports something the obama administration also supports, which is raising the threshold to 50% of a company that can go overseas. and on top of that, she is also proposing this exit tax. so if a company decides to go through with an inversion -- the campaign cited pfizer for example -- they would be threatened with an exit tax. they haven't said how much that would be.

the idea is, if you try to go overseas in your entirety, you would pay such a big tax policy that it wouldn't be worth it. betty: thank you so much, jennifer epstein. much more ahead on bloomberg markets. the grammy nominees are just out. if you aren't a dell or coldplay or coldplay, how do most artists get money out of their music? ♪

betty: welcome back. i'm delly loop -- i'm billy live -- i'm betty liu. onlyrammys aren't the music platform that kendrick lamar is doing all right in. he set a streaming record on spotify earlier this year. bringing in $1.3 million in royalties on one single day. sweeneyus now is paul

of bloomberg intelligence. also andrew hampp, a former correspondent for billboard magazine. i think the number we just quoted with kendrick lamar shows that you can still make a lot of money on streaming. in many waysercut what we have seen coldplay and taylor swift and adele do? >> there's a lot more money that they feel like is being left on the table. talk to someone like a dell or adeplay or taylor swift -- le or coldplay or taylor swift. are they getting fairly compensated? you are starting to see bigger names withhold their content. greedyit sounds a little from these big artists. >> it can be, but it makes sense when you look at the math.

who isst like adele, technically signed through an indie label in the states, she stands to make as much as five dollars per album sale. that's $15 million in revenue that could have otherwise and depleted by streaming. in those first weeks, those are crucial for the coldplays and beyonces who ned that first big week. it makes a little bit more sense. we have seen some nuances with the artist stakeholders -- chris martin of coldplay being one of those. we are seeing that play out a little bit more when it comes to release weeks. betty: is this going to really hurt spotify? and theime, spotify other streamers absolutely need to have the best content as quickly as they can. it's a competitive marketplace in terms of streaming services,

not to mention the terrestrial services. there's a lot of competition and there are only so many adeles out there. they don't happen is strictly as they used to with the bigger selling -- betty: maybe it will always be limited to the biggest stars. >> i think some of the second-tier or third tier acts are looking for distribution anyway they can get it. probably less focused on the per unit economics and more on the broader distribution of their music. betty: i want to bring up this chart. it's kind of an unfair comparison because apple is more than just about apple music. but i want to show just how much pandora has fallen. and get that sense of maybe with the on boarding of apple music willats music subscribers

start being converted to apple music. is this a challenge for spotify as well? >> i definitely think this was the year that things moved from radio like streaming to on-demand, which is why apple music came into the market. look at what pandora did last month. on that is betting behavior that people want to hear a specific song, not things that sound like a song. betty: andrew hampp, thank you so much. and paul sweeney, thank you as well. let's turn back to oil. oil is tumbling this morning, driving down the market. we're going to talk about the influence of opec. ♪

11:00 in new york. 4:00 in london. midnight in hong kong. welcome to bloomberg market.

good morning. i'm betty liu. here's what we're watching at this hour. plunging after opec abandon its production limit. we will look at how low oil prices could really go. and then we will get more insight on what's causing all the turmoil among opec ministers. we will hear from terry duffy. electroluxof tumbling after ge pulls the plug on a $3.3 billion deal. we will look at what the regulatory concerns were that ultimately killed the deal. we are about 90 minutes into the trading session. the markets desk. it is really the energy shares pulling the index is down. >> definitely.

we are seeing an acceleration in the losses over the past few hours. we are seeing session lows for all of our markets. the s&p 500 is down by nearly 1%. the dow and nasdaq not too far behind. we are actually giving up most of the gains we got from last friday and that good jobs report for november. energy is still the biggest laggard. down by about 4.6%. it's all energy securities. the williams company is down by about 12%. not doing well at all. betty: consumer discretionary is moving up. right now it's at a flat

line. i have to tell you about one standout. that's with keurig. keurig green mountain company is basically the best performer in consumer staples and in the s&p as a whole. it will be inquired by an investor group led by jab holding's which already owns a bunch of other coffee brands like caribou. one share has been priced at $92. that deal is worth about $13.9 billion. that is pushing the stock price up by about 73%. let's also look at companies in the same orbit as keurig. international is down by international is down.

a quick look at some of the commodities. oil is down for the second day in a row by 4.25%. natural gas is also down by 3.6%. the lowest since october in part because of a warmer eastern half this winter. thank you. i want to check in with courtney donohoe at the new sticks -- news desk. >> the chicago police department -- there was a shooting of a black teenager by a white officer. it's prompting a federal investigation of the entire chicago police department. lynchey general loretta announced today that the justice department will conduct a civil rights probe. the release of the video

showing the murder sparked widespread protests. toor rahm emanuel plans discuss police accountability during a news conference this afternoon. he fire the department superintendent last week. twoman accused of stabbing people at a subway stop near london is charged with attempted murder. the 29-year-old man appeared in a london court today. police say the incident was terrorism. the man threatened people with a knife while shouting this is for syria. elections in france and venezuela could signal major changes on the horizon. in france, the far right party made its biggest gains ever during the regional elections. that is a setback for president francois hollande. the national is pushing an anti-immigration agenda. and in venezuela, the opposition takes control of the legislature for the first time in 16 years. voters don't think the ruling socialist can fix the countries

economic crisis. sending groceries to the international space station. a capsule with supplies should reach the astronauts on wednesday. supplieshadn't sent since april. on these andore other breaking stories 24 hours a day at the new bloomberg.com. betty: thank you, courtney donohoe. oil is tumbling this morning after friday's chaotic opec meeting in vienna. mohamed el-erian weighed in on this. he said, far from adding an element of stability, and internally divided opec will contribute to further volatility in oil markets with prices remaining low for longer than many had anticipated. i want to bring in julian lee in london. in houston.esley

mohammed is basically saying, we're going to see volatile prices. the question is, how low for long? >> exactly. that's the million-dollar question. nobody can put their finger on it. that's exactly the problem with the market. they can't get comfortable enough to know how low will this go. wentany more jobs to cut, to get confidence and when to start drilling again. neededn adapt costs as based on the price of oil at a stable rate. if it's not stable, they almost rather not drill at all. betty: they are in no man's land in terms of certainty. given that, does that mean that opec is becoming more or less influential in the oil market

given what we saw on friday? >> this is exactly what opec it needs.feels a sense of uncertainty among his rival producers. facing a situation where the price of oil has fallen. they have adopted this policy a year ago of maintaining market share, of refusing to underwrite high-cost production. in vienna on friday can be seen as an escalation of that policy. rather than maintain a fictitious output ceiling that nobody is anywhere close to a hearing to. they have decided what in their view is the sense of thing and that is to abandon any kind of ceiling and allow their members to produce as they wish. most of them are already producing at or very close to capacity anyway. ones, you look at the big

none of them wants to cut production. saudi arabia started this policy in the first place. iran is looking at the end of sanctions and the ability to add a million barrels a day. iraq has already added three quarters of a million barrels over the last 12 to 18 months. there is no appetite. , the fact thatat they are kind of like -- you know what, you guys deal with it. we're just not going to put any numbers out anymore. does that mean that the markets don't listen as carefully going forward to what opec is going to say? >> i think the market will always listen to what opec says because they are still the only group of countries that have ever shown any attempt to manage the market by restricting supply. and several of the opec member countries, principally the gulf

arab countries, are the only countries in the world with any spare capacity who can raise their output quickly. nobody else can do. ist opec feels it has to do create an environment in which the growth in non-opec supplies close down to a sufficient level that there is room for growth in their own output. chart thate got a there are not just losers here in the oil markets. there are also some winners. asian refiners are seeing some of the best margins ever. given the plunge in oil prices. do they come out is the biggest winners so far? >> perhaps so. when you factor in that they can -- that oil is cheaper elsewhere based on the differential, then it's very possible. you've seen the middle east grow. whereas the u.s. is cutting back. you have this difference in the

price of the brent oil versus wti. there's definitely a difference. betty: what are ceos saying? what are these guys saying about when they think oil prices are going to rebound? >> widely speaking, i seem to hear a lot of people pointing to the second quarter of 2016 for went to watch this supply demand gap shrinking and getting tighter. at least as far as -- maybe not calling the bottom, but starting to see slowdown. and possibly a very slow uptake ick be in the -- upt maybe in the second half of 2016. betty: thank you, david wethe

and julian lee. to explain why opec can't seem to agree on anything. and mario draghi defending his ecb decision. calling off that deal to sell its appliance division to electrolux. what all of this means for ge and the swedish company. ♪

betty: good morning. welcome back to bloomberg market. time for the bloomberg business flash. russia's junkand status. the cost of guarding russia against default climbed for a second straight week because

slumping oil prices. credit default swaps suggest that russia should be four steps lower than its current rating. one level short of investment grade. to streamlineve its european banking operations will probably leave it under direct ecb supervision. andining citibank europe the uk's citibank international would leave $57 billion in assets. fordespread recall of fusions. the gas tanks may crack and leak, possibly leading to fires. nearly 452,000 vehicles are affected, most of them in the u.s. you can always get more business news at bloomberg.com. desk.o the markets is top of thee charts. >> chipotle is top of the charts

-- on the bottom of the charts for this. it's actually now at its session low. to fully last friday releasing an fec report filing that -- sec report filing that. nonrecurring expenses will fall between $6 million and $8 million to replace food. stock is down by 3.5%. in biotech, bloomberg i/o as well as global blood are both plunging after revealing disappointing data on sickle cell disease studies over the weekend. bloomberg shares are down by nearly 33%. global blood therapies is down by 19%. it had been down by nearly 25%.

both fell short of the 30% efficacy rate desire for these solutions. over to the energy sector. it is the worst performing sector on the s&p down by about 4.6%. morganarten -- tinder down by nearly 7%. this is it eight consecutive down day. thank you. andran oil market observer pulitzer prize-winning author weighed in on why opec can't seem to agree on anything. he was joined by cme group chairman harry duffy on bloomberg. >> it's been a question for some time whether it's a cartel because it only controls 30% of the market. right now it's not a cartel by

any definition. what it is is a fractious trade association that can't agree on basic matters. >> is it having any effect on oil prices at this point? >> i think it's made affected by what it's not doing. this is an organization divided not only about oil prices but over the nuclear agreement with politics, theical struggle for dominance in the region. there is no trust and they are in very different positions. iran is saying he wants to come back into the market. the others don't particularly want to make room. do you see oil volatility prices being just as high in 2016? >> i don't see why that would change. we saw a dramatic move. if you look at this in the united states, you talk to people who are in the business, when oil is $92 a barrel, they

say their input costs would be $80 a barrel. when it got to dollars, their input costs were $70 -- when it their input costs were $70. ange,the input costs ch people get back into the business. >> because this new factor -- the u.s. being the producer thatr than opec countries, adds to the volatility because are talking about the impact of decisions that have been made by thousands of individual producers. --isn't it fair to say that it's a bipartisan issue right , but the president thinks it's a bad one. that would put more into the system which could actually help with the volatility and keep

prices that helped the u.s. consumers continue to put more money in their pocket. >> daniel, that was for you. >> that was for me? it's clear that this ban is kind of left over from the 1970's when we had price control and it's kind of ridiculous for the united states to go around telling the rest of the world, we believe in open markets and free trade and have this arbitrary ban. if we lifted it we would see exports increased. consumers wouldn't be particularly affected. they will still have low gasoline prices because gasoline prices are really set by the world market, not by lower u.s. prices. >> you've got to be concerned by sudden swings. if we see these producers fall into deeper distress in 2016, there could be really treacherous market. -- it's nofferent

different when the market cut its prices by 50%. we are always prepared for a high volatility market. that's why we spend billions of dollars on safeguards. this could lead to real turmoil in some countries that are not particularly wealthy and highly dependent on oil. venezuela, nigeria. >> there are three at the top of the list. venezuela yesterday entered a new period in which power is now divided again. maduro now has to deal with a congress that might even have a super majority. venezuela has 200% inflation. contracting next year in terms of its economy. that's a very dangerous place and we get a lot of our oil from venezuela. it's very similar in quality to the oil we get from canada.

second is nigeria. the third one is iraq. 95% of its revenues come from oil and the imf came out with a report that said iraq faces an existential threat as a nation. keep your eye on that country, too. >> what does this mean for them? it was thought earlier that this would get putin's back against the wall. ruble has come down at the same time. so a lower oil prices and have the same impact on their budget. 42% of their budget is oil and gas. probably this year russia will contract under 5%. it's not the kind of crisis that was expected six or eight months ago. we have sanctions on russian a. russia is putting sanctions on

turkey. this could continue to spiral. betty: that was cme group chairman harry duffy and dan juergen earlier on bloomberg . still ahead, super mario plays defense. thing that the stimulus package was a recalibration, not a revolution in the market. we will discuss all of that in the european close. ♪

betty: we are moments away from the european close. mark, you've got the trajectory of the trade so far today in europe. can see, we were up about as much as 1.4%. we started declining before the u.s. session got underway.

the fact that your declining has pushed it even lower. still up .5%. last week the index fell over 3%. it was the worst week in three months because of what happened on thursday when the ecb failed to meet expectations. draghi said on friday that it wasn't a revolution, it was a recalibration. betty: are people reassessing that maybe they overreacted to draghi?e -- dra was a packaget it that wasn't meant to address market expectations. we most important segment, will do more if we need to do more. the strategists are bullish. they think that it's a buy recommendation despite the declines we saw thursday.

gemma godfrey is the founder of moola.ala -- gu one, betty,favorite danger. [laughter] betty: there is danger in the markets. >> and also erickson is the big declining stock today. the swedish appliance maker. ge hasn't got the willpower to go ahead with its supply sale. that's the big news -- electrolux should i say. the market closes next. stay with us. ♪ ♪

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(the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. betty: welcome back. i am betty liu. it is 11:30 a.m. in new york. session,up the trading i want to bring in mark barton

joining me for the european close. mark: stocks bouncing back from the biggest weekly losses in three months, which many investors perceived as overdone. the european close starts right now. ♪ betty: we will take you from new york to london to stockholm in the next half hour. mostly a rally here in the european markets. mark: european stocks bounced back today. investors are shrugging off last week. was it really a dream with the ecb did or did not do? onpped back a little bit friday, draghi said he is not dealing with expectations. he will do