from bloomberg world headquarters in new york, this is bloomberg markets. oil starting the final trade of the year, off about 30% this year. what does it mean for the future fracking? foras a merry christmas retail after that a late shopping surge lifted sales. we have a look at the biggest winners and losers. makes a zuckerberg personal appeal for free internet in india, calling it a bridge out of poverty. find out why regulators are not as excited. first, let's head to the markets desk where julie hyman has the latest. his close friends must

call him that. that is some in-depth reporting. let's look at what is going on -- we have this decline going on asoss the board, though just commodities led the major averages higher, we see energy lead declines today. now down 3.4%. we had some chinese economic data out overnight in addition to chinese stocks falling. aboute iran talking prioritizing increasing its exports. this is going back to energy stocks. smaller and mid-cap oil companies are also feeling the

pain. chesapeake energy falling today in addition to the three. brendan: sadly it is still relevant, how are metals doing? the outlier in energy today is natural gas. changingt different weather, we see copper and gold declining once again. freeport-mcmoran is down once again. troubles compounded by the fact that it chairman's parting the company. one of the founders has been an executive for a long time and he is leaving after an agreement with the board to do so.

freeport has been struggling in this looks like a reaction to that struggle. we are going to take a check on the bloomberg first word news. amy: the russian foreign minister and john kerry talked by phone today according to the russian minister. he reportedly told carrie there should not be preliminary conditions to fight against islamic state. they talked about plans to solve the arabian nuclear program issue. he said anti-russian sanctions international issues. iraq says its troops have captured a key city from islamic state. islamic state forces had been in control since may. the associated press reports iraqi troops at only taken control of one key government

complex in that city. killed at least 60 people in northeast nigeria. they attacked the city with rocket propelled grenades. troops drove off the attackers soldiers.epted in chicago, another police shooting has raised questions about the city's use of lethal force. officers shot and killed two people during lethal -- during -- last month, video showed an officer shooting a black teenager 16 times. at the world busiest airports, look at that -- they still took timeout for a party. millionthed their 100 passenger of the year, a first for any airport in the world. he won a car and plane tickets

but missed his connecting flight. dayal news 24 hours a powered by our 2400 journalists in 150 newsrooms around the world. brendan: i shudder to think of the steps i have wasted making connections in atlanta. prices are having an effect on it shale production. production will be cut by a record 557,000 barrels a day. joining us to talk about it is our energy analyst who talks -- it covers the energy sector for us. what happens when these rigs go idle? what is the time it takes to get them active? guest: it depends. for some companies with hedges in place right now, they will persist. 60% to 70% of t fleet

still on contract. almost $30,000 per day rolling off as we go into 2016. if we do not find any rigs in this market, we get to 10% by the first order. down about 35%, but that is how the cadence looks. the opec strategy or saudi strategy in opec has into to break price down the shale producers in the american west. is it even possible to break them? they are not going to be gone forever even if production bks off. guest: the credit and equity markets were open and as the windows start to tighten, some

companies are more hedged than others. aboutr you are talking large caps and mid-cap's, the high-yield sector only represents 4% of u.s. output. they will be challenged year. toward 50 or 60, all bets are off and you will remain in this lower for longer time. brendan: it's hard to imagine a world where we will get up past 40 or 50 or 60. his love incentive to invest in the shale fields. need lower prices to so a sustainable trajectory. right now, if you look at the declines in the u.s. coming next year, you get 400,000 or 500,000

barrels. you get a boost from the gulf of mexico and couple that with production offset. 2016 atgoing to enter the same tune you are oversupplied. if nothing starts to balance until 2016. are going to stay on fracking and natural gas exports. we are starting any second to export natural gas. doingo we see that medium-term to the next year? guest: i think we'll have a large impact because the exporters have that together procurement contracts, so that demand is factored in to the course of 2016. the real question is if the u.s.

, itrt business takes off will have an enormous impact. could have angas impact longer-term. thedan: walk me through difference between brent, wti and domestic natural gas prices. what same factors are keeping those prices part? natural gas is priced off of rent because there wasn't really a global market and natural gas. most gas worldwide was priced off of rent. yet a large liquid market and the entrance of henry hub is going to have a disruptive effect longer-term. can u.s. exported

liquefied natural gas compete with natural gas supply from russia? can.: to some extent, it it's just a matter of timing. give a project that started in mozambique. maybe three or four of them get completed and get the actual funding from a contract perspective. you want to have those contracts themace before you sink into moving those extra phases of the timeline along. short answer is some of it can and some of it cannot. brendan: there has been some reluctance to put the capital into that. what is on the other side of that decision? the first and second

trains will probably come into commission this year. they plan to have nine and offer an extension program. right now, the amount of capital they are looking is pretty much committed to the seven trains they have under construction. we think they will take a wait and see approach before they commit more capital. thank you very much. as we just said, we are waiting any second for lng exports to start sailing past louisiana. meang up, did good weather bad news for holiday retail? the final tally was really not so bleak. and 2015 was a standout year for t-mobile. can they carry their momentum forward into 2016? ♪

brendan: welcome back. it's time for the bloomberg business flash. the ceo of valeant pharmaceuticals is taking a medical leave. the team of executives will replace him while he is out. and cofounderrman of freeport-mcmoran is stepping down.

james moffat helped form the company in 1969 and will ease the board of directors following that carl revelations icahn had taken a stake in the company. famous dave's of america has a new ceo. he joined back in june. the restaurants are located in seven u.s. states. addedr models are being takatalist of cars with airbags. at least nine deaths are blamed on explosions caused by the airbags. changes itsne policy on kids traveling alone. $150 up to agee

15. delta and american have a same fee covering a similar age range. that's your business flash update. still ahead, it was a happy holiday for retail. we will take a look at mastercard's numbers.

brendan: welcome back to bloomberg markets. it was a very happy holiday for u.s. retailers according to data from mastercard advisors -- thanks to a late surge in shopping, sales rose 7.9%. we sat this morning and waited for these numbers to came in. what was the biggest surprise?

guest: this late surge in shopping. consumers procrastinate. they don't like to leave the house, and they finally bought women's clothing. to say: i was going america is becoming more like me until you said they bought women's clothing. guest: this crazy surge in shopping the last couple of weeks of the year. last year, the holiday kicked off around november 1. this year, november was not looking good so analysts were getting scared. got to thetinators store and realize they had to actually buy christmas gifts this year. are the procrastinators going into store or shopping online? are shopping online -- you mentioned the number 7.9 percent between black friday at christmas, which is great, but 20% in e-commerce.

the shift is going to be huge online. they were expected to be the big winner. walmart and target may be in the mid-single digits. brendan: it is a self reinforcing cycles. as people trust delivery, it and delay -- and it gets put off. we talked about the problems with fedex. people put off until the last minute and want to buy things online but you can see with this last-minute surge, a company like fedex struggling with that. amazon put out a press release saying there amazon prime services where they have the carriers that can send things same day, they said they have no problem with our own delivery

service. brendan: i want to walk through one loser -- men's apparel. why was it worse this year? i think part of it has to do with the lack of innovation. there was no hot, must have items like a pullover. people want to spend more on experiences. dining out ande travel, going to a concert. there's more competition for people's dollars. not just demand for stuff like these to be. was a demand for light sabers in the really household. thank you very much. 2015 has been a good year for the wireless carriers.

but it wasn't all the carriers, it was really just one company, the people wearing the pink -- t-mobile up 46 percent, leaving its competitors far behind. is alex sherman who periodically appears on this network to explain stories these just broken. what they were doing was driving revenue per user. in a way like opec, how close are they willing to get to the bone and drag down other carriers with them? are they taking other carriers with them or have they backed off? guest: they are no longer in this price war. leveraging much more in a way. they say we will offer you variations on how to get more data for your money, so that

means if you buy t-mobile, there are certain streaming packages where it is basically all you can eat. we are not going to charge you for the intense amount of data you consume by watching video. that's a big hurt. as anyone who uses at&t or horizon, if you watch one movie, your data gets up there in a hurry. you can put down your standup comic microphone -- i'm sorry, you do need to hold on to this. we are somehow and capable of providing you with a microphone that works. guest: i feel like guy smiley. we are going to put you in front of a brick wall. allowingk you about things like spotify to work for free on its network. this violates net neutrality and

fcc is lookinge into. guest: t-mobile has been at the vanguard of -- at first, it was price. then other carriers jumped on it. t-mobile is setting the bar and other carriers have to look at it. look at the subscribers t-mobile is gaining. you would be hard-pressed to say any carrier unless they followed the procedures at this point is in a better place than in 2016. can t-mobile continue the subscriber growth that had this year? pick: unless the others up, i would say so. and i have been talking about john leisure and his strategy all year.

guest: it is working. 30% thisoil is down year. it's not the worst performing commodity of the year. we will tell you why you should care and how to pronounce it, up next. ♪

brendan: live from bloomberg world headquarters in midtown manhattan come you are watching bloomberg markets. we've got more from our news desk. amy: british prime minister david cameron is visiting flood victims. weeks of heavy rain of swollen rivers to record levels. he's called the flooding unprecedented. dallas, a series of tornadoes killed at least 11 people. one of the twisters had winds of up to 200 miles an hour.

up to 1500 homes were damaged or destroyed. the governor of missouri has declared a state of emergency. the voting records of 191 million americans have been found online. names,ormation contained home addresses, phone numbers, dates of birth and political affiliations and a detailed voting history. a security researcher reported the breach and law enforcement was contacted. presidentialatic candidate jim webb may be moving closer to an independent run for the white house. he attacked hillary clinton for her handling of libya while she was secretary of state. he dropped out of the race in october. he's a former virginia senator and vietnam war hero. dayal news 24 hours a powered by our 2400 journalists -- 150 newsse

bureaus around the world. brendan: julie hyman has one of today's several movers. julie: if you look at what is going on with oil prices, we got economic data out of asia that has been helping push oil lower. iran saying that it is a priority to expand exports and the saudi arabian budget numbers for a decline of 3%. this is coming off of a strong week for oil but not meant to last, apparently. 36 85 is where we are on oil prices. and energy, natural gas prices rising 10%. cold weather might finally be on its way in a more sustained fashion which might be good for natural gas demand.

there is selling in the metals as well. gold prices and copper. linking it back to the asian economic data. and copper being the most linked. gold prices moving lower today. not quite wholesale commodity selling but pretty close. >> some people might be sated on turkey but markets continue to move. coming up the next half hour of bloomberg television, we tell you about the absolutely worst performing commodity. and we look at why mark zuckerberg possibly in to offer free internet around the world is creating controversy in india. president clinton is facing heat from the donald. this is bloomberg. ♪

: welcome back to bloomberg markets. some are calling for markets to fall as much as $20 a barrel for crude. it will wipe out any prospects for earnings gains this year. the chief equity strategist spoke with betty liu this morning. >> energy profits dropped 55%. the earnings contribution went from about 12% to 6%. out 5% or 6% of the actual earnings numbers. people started the year thinking earnings will be up about 6% or 7%. and all of that really can be attributive to energy alone.

you were having the price of oil, you would probably take a bit out of the expectations. it would be deja vu all over again. she talked about $20 and oil -- a barrel oil as well. there's not much more you can go in terms of earnings among energy companies. she believed when you get to that low of an oil price, it will unleash consumer spending that we haven't seen so far this year given the fall in oil prices. i think people said the exact same thing. it usually takes about 18 months ,or that drop and energy prices

it wouldn't be an immediate response. you probably have to have a pretty severe collapse in demand which would be a recession. produce ands can supply would be curtailed. even if you were to get there, that is not a prediction. but it probably would bounce fairly quickly there after. >> that was earlier today, speaking to betty liu. we will stick with commodities. oil is not the year's worst performing commodity. that distinction belongs to molybdenum. much more than the overall

bloomberg commodity index. joining me is joe who has been molybdenum. >> half of it is a byproduct of copper mining. it ins up as some sort of byproduct. it's huge source of it that does come from mines. think the metal -- thinksdy hears that and anything close to, oh, right. >> i talk to guys that deal with metals on a daily basis. >> i will pull a line from the article you wrote. metalst common use of the is to make steal harder and stronger.

as the oil rig count goes down, this is a major source of molybdenum. you see it in pipes and tubing. these go lower, lest he was being used. >> oil and fracking was the number one demand? >> not necessarily just oil and fracking but overall demand for energy and energy pulling oil out of the ground. that is a huge source of demand for molybdenum and because it's used in steal. down, thathina going is the driver here. >> collapse in china is a

collapse for, among other things, molybdenum. what countries have exposure to this? >> the world's largest producer, they think of them as a copper producer. even though producers have been cutting back, you see extraction out of copper mines keeping this surplus going. we will see it at least third 2020. nobody can back off on molybdenum until the world agrees to back down on copper.

they are not worried about a huge surplus in the same way. are they really just using it in the way that people have used oil for an opportunity to hold onto market share and cash? >> it is just something that we've had so much of it. there has been all this demand for steal in the past two decades. because of that, we see it take a hit. >> think you for walking us through what molybdenum is. mark zuckerberg is taking up a new cause.

♪ >> a debate over free internet services is brewing in india. zuckerberg writes, if we accept this, everyone deserves access to the internet, we must surely support free basic internet services. consistent with net neutrality and good for consumers. i will bring in cory johnson in san francisco. zuckerberg can be pushing free basic services just because he believes the world should have access to the internet. >> he could be. where is that christmas spirit?

it is entirely possible but let's make a guess. >> it is true that the very few services offered, facebook happens to be one of those services. it's a crazy coincidence. but the belief that internet service should be a human right is bolstered by the fact that it is in their business interest to get it in front of indian consumers. india isnership in known for its spotty service, but using this connection to get its name out there. critics of this proposal suggest a reliance on a marketing plug. to getn't be able to pay a little bit more.

offering facebook and 29 other services to limit the amount of data, it puts facebook way ahead of its competitors. it is one that has drawn some criticism of mr. zuckerberg and facebook itself. >> e has talked about it in sub-saharan africa is well. in india, there is a regulatory fight because india is not just working to move past one into g access but working to develop their own domestic handset businesses. >> and limit those services to a handful of companies.

corey: that is exactly not what is happening right here. dude be pretty much every country. they have banned these proposals because they think they fight against the idea of net neutrality. and these mobile internet plans. one concert we understand why someone who believes so much would think it is a great thing for everybody. the reason i think for so much criticism, they warranted it. google has talked about offering universal internet access. can they do it?

cory: you have seen a big expense. at millions have been spent to provide a lot more access than is out there right now. withestingly, partnering microsoft bing and not with google to do this. it is an interesting take for these guys. zuckerberg making the case. pretty unpopular in india. they really see this as an american billionaire trying to push his empire. is something fascinating about "we don't need your charity." particularly, when you look at companies like google and what they are offering. it cities are begging kugel -- g oogle to put infrastructure in place. they are running into

these places where they can't grow anymore in the united states or in western europe. >> we can talk about the internet for far too long. we now take it to kathleen hays. kathleen: we want to welcome our audience. sometimes, it is comedy. john: radio and tv at the same time. the future. i love this. : you are a bright note. we will be seeing hillary and donald going about it on simulcast but set this up for us. hillary said something donald tweeted. it was going on? the first thing is that hillary used the restroom at a democratic debate and donald

trump did not, apparently, like that. said it was disgusting. hillary clinton suggested donald trump was sexist. not just on the basis of that comment but previous comments that she regards as vaguely misogynist or maybe not so vaguely. he said that it was dangerous for her to play the gender card because her husband has a problem of abuse towards women. offng to fire back and fend accusations. not so subtly bringing up bill clinton's accusations. the fracas or whatever phrase you want to use. kind of dredging up those memories and trying to threaten

hillary clinton. kathleen: donald trump, if you love him or hate him or find him comedy or drama, think back to bob dole? let bob dole be bob dole and some supporters thought he did not show the true bob dole enough. people would say that's it for donald trump. john: voters see and hear more of candidates. they have unmediated and a more realistic view of what the candidates are.

true for trumpn that the people who like him like him because they feel as though he says what is on his mind. even when he says things they disagree with, they like the fact that he's willing to say them regardless of the consequences. among the true believers, the game of increasingly upping the ante and saying more outrageous things. she had 50% approval, 35%. he compares himself the donald aump recently saying, i have

better message for those disgruntled angry middle class holders. john: there's a lot of polling out there -- i'm not sure which you are referring to. sandersto-head polling, is outperforming clinton against a number of republican candidates. one that he's doing better than she is is donald trump. sanders and trump are similar in one respect. the are different ideologically, at they have both tapped into bipartisan discussed with the political establishment. some of that is on the far left and some of it is on the far right. when it comes to a certain category of voter who is , who feelsy anxious

-- there are tea party people. trumps support independent leading republicans like trump. youers says i understand are frustrated with the way the global economy is stacked against you. they could vote on either side. if you're going to vote for somebody that has answers, i have better policies.

sanders hitting back at saying he just wants to raise your taxes, beleaguered american worker. another story looks at the former virginia senator jim webb when the democratic presidential race back in october going on the attack against hillary clinton. he is seriously considering a run as an independent. >> that is that story. what jimre to look at webb has been saying. he is mulling over the notion of running as an independent candidate. it would kind of scratch their head a little bit. engagement, he did

not seem to have the heart for the race. getting on all the ballots is really hard. it's harder to raise money. of --ses this question house and see her he is and if he be willing to do the work necessary to be a possible third party candidate. he must think that she is vulnerable. if he's running as an independent candidate, he doesn't have to run against her until the general election.

if you were going to mount an independent challenge, you can understand that she was i'm not sure the jim webb is certainly the idea messenger or the ideal candidate . the weather is slowing down the campaigns of marco rubio in chris christie as they going to iowa. will they be out there having fun? or will they be having special places in iowa. certainly, the way you are probably going to be having -- the iowa caucuses are among the way. some of the candidates took some time off for the holidays. i think it will be a campaign night for pretty much everybody. not wastebe trying to one of those remaining days.

>> i think maybe some champagne. with john heilemann today all due respect at 5:00 wall street time. thanks to our bloomberg television viewers. ♪

>> it is 4:00 a.m. in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters in new york, i'm betty liu. markets are swinging lower as they start the final trading week of the year. crude oil is dipping, giving up some of the christmas gains. the continued oil prices, taking a look at the trend that will dominate next year's trade. candy and drugmaker surge ahead. getting a check on where the markets are trading. >> still a negative on the