there is a new ticker for baker hughes.s is bloomberg. ♪ mark: live from bloomberg world headquarters in london and new york, i am mark barton vonnie:. this is bloomberg markets. powering consolidation in the energy industry, ge oil and gas is celebrity a merger this morning. the he began trading last week. the deal makes ge the largest shareholder in the new company. the ticker is bhge and alix steel has more from the exchange. mark: alix: i am here with lorenzo simonelli. great to see you. >> it's great to be here. alix: this week, we had a lot of big people talking about where oil was going. they say it could take until the end of the decade until there are better times in the industry. >> i wish i had a crystal ball. seeing is what the pundits call lower for longer. we look at the macro trend and there is the demand for electricity and a demand for oil and gas. we see positive macro trends. is drivingus productivity. we brought together the two countries to enable us to go full strength and help our customers in the pro

baker hughes, a ge company, lorenzo simonelli. >>> disney stores plans for its parks.e pull customer insights from the data in real time? wait, our data center and our clouds can't connect? michael, can we get this data to...? look at me...look at me... look at me... you used to be the "yes" guy. what happened to that guy? legacy technology can handcuff any company. but "yes" is here. so, you're saying we can cut delivery time? yeah. with help from hpe, we can finally work the way we want to. with the right mix of hybrid it, everything computes. at the lexus golden opportunity sales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. >>> disney is offering a sneak peek of its star wars land models currently under development at theme parks in florida and california they'll transport guests to a never before seen planet one of the attractions lets guests take the controls of the millennium falcon on a secret mission. >> wish we could go there right now. they've had a

the company will be named baker hughes ge company, and will trade on the new york stock exchange under the ticker bhge on wednesday. >> if you're a homeowner or looking to buy a home, you probably know that prices continue to rise in the first half. as the number of houses on the market fell. it was a simple supply/demand equation, will the same story carry through for the rest of the year. diana olick takes a look. >> a lack of home listings has been the lead story in the first half of this year, keeping home sales at a slower pace than expected. especially on the lower end of the market. take a look. sales of homes priced below $100,000 are way down. the higher end of the market is seeing a big jump in sales, but only because there are more listings, and buyers are less cash strapped. this is unlikely to change in the second half, even as seasonal demand falls off. it's a great opportunity for the nation's home builders. builders are hoping nor deregulation under the trump administration. tough regulation accounts for one quarter of the cost of putting up each o home. the possibility

at 12.20 an oun-- 1,220 per oune >> we had 23 straight weeks of baker hughes gains in oil rig countshat got broken we saw a drop in rig counts. you wonder whether the current pricing dynamic will affect some of that spigot action on the u.s. fracking side of things >> we get the baker hughes number today it will be also interesting to see if we have continued to see an increase in jobs within mining and within the energy sector as well >>> some key fed speak overnight. vice chair stanley fischer has a warning for washington the fed vice chair said gamesmanship by poll signals over the nation's debt ceiling could prove catastrophic he is calling on government policymakers to do more to boost business investment and jump start a dismal productivity rate he did not address monetary policy directly in those comments >>> in other central bank speak, cleveland fed president loretta mester said the fomc should implement the plan to shrink its portfolio of assets sooner rather than later. in an interview, mester suggests it would be "totally appropriate" for the central bank to initiate the

. >> that's an index >> it's an index >> what did you think of the baker hughes deal when it happened >> i don't know enough about baker hughes whatever i would say about it, i don't have enough information about that and i'm not -- again, i know what i know i don't know what i don't know i don't know enough. for me to say something, you might as well ask anybody. probably they know more than me. >> but that sort of is a smack in the face to those who are trying to pick certain levels where you see, you know, transactions taking place that companies think are going to be good for their bottom lines and they get smacked across the face because they do it at the wrong time. >> scott, everything is about timing like pete said exxon mobil, they wait -- >> in energy it seems to be more precious than almost anywhere else. >>y, look at it. exxon waits 2 1/2 years from the xto purchase, how do they look >> geniuses, right the thing about when you buy the commodity space, it's not just a business, it's a timing of when you're in and out, right and the problem is that most of these big companie

among companies reporting on friday is the world's largest publicly traded oil producer, baker hughescan airlines. joining us is james bevan, chief investment officer at ccla investment management. thank you for coming in. let's pick up thank you for coming in. let's pick up talking about us gdp. we had that 1. 496 up talking about us gdp. we had that 1. 4% figure for the first three months. president trump and his advisors hoping for 3% for the second three months of the year. we have had strong data, some strong corporate earnings out, do you think they might do it? absolutely not. it's great to hope but that is not a number that i can get to. i think if you stretch all the numbers and say let's be optimistic, you could say we get to 2. 9 but actually if you think about the lower case numbers we have also seen, could be as low as 2. we have also seen, could be as low as2.2 we have also seen, could be as low as 2. 2 buti we have also seen, could be as low as 2. 2 but i don't think we are going to see three. the run rate for the us economy is much lower and i think this is going to be

francine: speaking of adjustments, this month' ge closed a deal to combine with baker hughes.ct offerings. are we going to see more deals like that in the future? nick: i think this gives them what they need. ge touched to her three of the north american upstream independent and baker hughes touches mine. two of the next two major root waves, outsourcing of service, and predictive seismic to increase the output of wells. ge has and now it has access to customers the need that. francine: will they make any acquisitions? nick: i think you are going to see a lot of fallout in terms of consolidation that is going to continue to accelerate. i think halliburton may be a buyer and i would think siemens would be a buyer and baker hughes ge, you can about the four in the club. tom: nick heymann, i am going to bring up a chart from ge. the is going back to ml -- old ceo's tenure. is the nick heymann world undervalued after what you saw the take out of french's mustard this week? we are taking up consumer companies, seven times sales. do we understand the valuation of some of these core

the baker hughes index showing 765.crude up to a total of also, gold futures off the back of the newsround inflation, while weaker than expected data feeding into the dollar. the biggest gain since may. also, gcc yields unchanged. dollar -- contested regulations for the mining industry also helping. we are two hours away from the opening of the emirates market .nd abu dhabi let's get a recap of which companies stood out. member rank returns. you can see the last five trading days, take a look. also qatar national bank up. bloomberg's interview with the ceo helped feed into some of that. also the materials box under pressure. we will get more into the key scenes. let's check on for short headlines around the world. >> good morning. the trump administration has taken the trouble been dispute after the supreme court. the supreme court to bar grandparents from coming into the u.s., he is seeking verification. -- clarification. federal judge in hawaii last week ruled that several types of relatives, including grandparents, should be excluded from the ban. the white house has taken the figh

the mergers of ge's oil and gas business with baker hughes closed today, second only incisive schlumbergernew company trades of the taker bht on wednesday. on wednesday. barclays executives will leave not guilty to fraud charges. on $432uit focuses million paid to the cutter investment -- qatar investment authority. and that is your business flash update. "what'd you miss?" releases today with eyes and meditation coming out and we look ahead to data point later this week, including fed minutes on wednesday. here with the data is matt boesler. the takeaway was largely positive when you look at today's data, today's economic data. matt: especially with the eyes manufacturing report we got today, very strong data. a lot about take in the percentage of u.s. manufacturers who are reporting that orders are expanding and i'm writing this chart which shows exactly that. the white line shows percentage of u.s. manufacturers that are reporting an uptick in new orders. scarlet: 3.5%. matt: the blue line shows the percentage of u.s. manufacturers supporting an uptick in inventories. the fact that this

jackie >> good afternoon, brian that's right baker hughes reported to see an increase in rig count. seven more oil rigs added for the week and up to 763 this is up from 412 last year. remember, we had 23 straight weeks that the number was going down last week, we had a slight bump. this week, a slight bump, as well this is certainly supportive, constructive traders went to see a trend here and see it build up a little bit more you can see momentum to the downside today and they continued to slide session low was $43.78 but two weeks in a row now that we are going up. back over to you. >> thank you very much now a market flash. >> hi. we are watching shares of tesla. added to earlier gains after updating the quarterly vehicle and production report. tesla now says that in addition to second quarter deliveries about 3,500 vehicles in transit to discuss merles at the end of the quarter. these will be counted in third quarter deliveries shares as you can see rebounding slightly after falling as much as 15% in week through yesterday on lower than expected second quarter deliveries and new

the baker hughes rig count is providing early week in visio some, but i am not buying it myself. think that was the least effective production cut from opec, and six dollars a barrel lower. is whole of the marketplace looking at the sensitivity of the u.s. shale market to lower prices. there ishink large-scale capacity coming off at the $45 to $50 range. you would probably have to see sub-$40. are they prepared to take that short-term pain? i don't believe they are. manus: the saudis don't seem to be in the mood for that. one of our top stories, opec , the total estimated production of opec. ae is now producing more than million are also day. by the time opec in november, there will be screams unless something dramatic happens, if the market continues in this bandwidth, you will hear clamor for them to do more, but is there an appetite? >> there is little appetite with stretched finances and a lot of opec countries. also through nigeria in their. a number of countries exempt from the production cap who for geopolitical reasons were given leeway. will pressure come on them to

the baker hughes rig count did come out not so long ago, adding 12 rigs to the u.s. fleet of 952. this after a bullish department of energy report yesterday that were looking at. let's take a look at the influence of the rig count on worry -- oil, one more for investors. this is a one-year chart. in blue, we have oil. in white, we have the rig count rising. this is a big piece of the u.s. inventory productions that is weighing on oil, not being offset by those opec cuts. this is important to keep an eye on this. julia: abigail, we will see you shortly. let's get to the latest on the g-20 summit in homburg, germany -- hamburg, germany. the meeting with vladimir putin and donald trump lasted for two hours, and ended in an agreement for a cease-fire in syria. this cease-fire has been in the works for a lot longer than those to our talks come but we also got a denial from prudent -- putin on election meddling as well. an interesting two hours. >> an interesting result as well. wouldms like a cease-fire take a lot more negotiation than sot a two-hour meeting, maybe this was coordinated

. >> yeah you on friday missed lorenzo from ge baker hughes, the new. >> that will teach you. >> talking about the oil and gas business. >> i may not have been here even if i had taken the day off i could not speak on friday morning which my wife was thrilled about but you guys would take negative. >> by the way, up a percent and a half as people talk about whether or not they have finally found their legs again here. >> i think oil can go. didn't take down 43. i think it can go back to 50 at the same time that is the five years futures curve it's always hard to get past there because so many of our oil companies then start selling futures furiously in order to be able to make their cash flow projections. >> finally on ge we have been talking about them all morning but it will be interesting to see if, in fact, at some point a board seat does materialize at ge. >> there's talk of that. >> where one would expect they would not necessarily fight given a brand new ceo unlike what they're doing at png. >> mention procter & gamble and the desire to have any target. remember the $2 price. >> a

baker hughes is telling us we added two rigs here in the united states. oil rigs total 766. compare this to last year at this time. 392. so we added rigs for the third week in the last four. that makes sense when you see oil prices chtrading just under $50. but at the same time it's the same problem that pushes us down as we saw earlier in the low 40s. that certainly becomes a problem. that's really what the producers have to watch. >> we are watching that. you are right, it is my favorite time of week which says that my life is incredibly pathetic. jackie, thank you. >>> coming up, amazon's earnings missed the company keeps spenniding li a drunken lottery winner is it time to pull back? heck no, buy the stock we'll find out why coming up flexshares etfs are built around the way investors think. with objectives like building capital for the future, managing portfolio risk and liquidity and generating income. that's real etf innovation. flexshares. built by investors, for investors. before investing consider the fund's investment objectives, risks, charges and expenses. go to

we actually had some data from -- on from baker hughes that the rigs have declined so we could actually see these divergent paths come and meet in a way that is positive for il prices. yvonne: seems like a turning point. a lot of companies are reporting on tuesday. particularly the food chains as well as the auto makers. su: yeah. two big food chains, mcdonald's and chipotle. let's start with mcdonald's. check out the stock prices up about 25% year to date. one of the stronger performers. two years ago people were saying mcdonald's is old school, over. chipotle is the way of the new. mcdonald's has been up 70% over two years. wow. analysts expect continued strong same store sales and fresh initiatives such as ordering systems, fresh beef, delivery, all of that has sustained sales growth. second quarter adjusted expecting to come in at a dollar 62. general motors under pressure. again, it could slash car models to combat slum pleasing sales. that is the big story hanging over the company tas reports second quarter results. can the company's sales base overcome weakness in the u.s.? then

>> we added two oil rigs according to baker hughes for the week so that's two weeks in a row that we're moving back higher remember, we had the opec output cut and here in the united states they added, added, added for like 23 weeks. all of a sudden we had one down week it was a head fake for the market and now we're going back up again one analyst i spoke to said, sure, why not? at $46, u.s. producers are still profitable so that could continue to happen until prices become more depressed. we are up about 1% on the day, this didn't move the needle much, a little hort-covering a we go into the weekend and there will be up days throughout the summer but overall the feeling is if nothing really changes, these oil prices are headed lower. back to you. >> jackie, thank you. >>> coming up, the latest projections show social security will tab out in 17 years unless we fix whatever its problems are. but our next guest says there's not really a problem calls it a phony crisis and that we should leave it alone is he right? we'll debate that one next ddos campaigns, ransomware, malware attacks...

at 1:00, the figure the crude market will be paying attention to -- baker hughes.ng to see how it plays out today. david: now an update on headlines outside the business world. emma chandra is here. emma: in hamburg, protests resume before the start of the g-20 summit. police used water cannons to clear the block streets -- blocked streets. melania trump was unable to leave the play she was staying for security reasons. meanwhile, trump is being urged to get tough with vladimir putin when they meet later today. yesterday, trump said it could be russia's move metal, but it could be others -- it could be rashad that -- russia that meddled, but it could be others. suspectia is the chief of a nuclear facility. this could eventually disrupt the u.s. powered it -- power supply. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am emma chandra. alix: love that slow-mo handshake. david: not sure who won. jonathan: that is a major obsession. alix: remember the macron one? jonathan: if that is the biggest take away f

part and it will be pretty good obviously, they have the oil bet, but i think that they did the baker hughesso let's see. the company is saying don't believe what you read or hear, you will be rewarded it is not as bad as the analysts say. >> and then as far as the earnings season that's coming up, when it's -- prediction when it's all said and done, will it justify stock prices, do you think, in terms of the last three months and the outlook >> yes >> it will >> yes yes, i think so, because we're going to start with the financials that's a very important group. it will be good. technology should be very, very good health care, they haven't resolved any of the costs, obviously, and this company has made fortunes with this environment. i'll take those three. don't really need anything else. >> very good and then you saw the tesla, does kind of look like from the front, good looking car. >> very good looking >> $35,000, this could do it, right? this could justify that evaluation >> if, indeed, that they can mass produce, then i think that the bears who were in control of it last week will be r

. >> but hugh, it's unlikely that donald trump would select those kinds of people like howard baker on ken dubberstein, they were not the kind of people that he knew or was confident in or believed in. >> well, there are two cabinet secretaries on thin ice right now. the attorney general, sessions and secretary of state tillerson about whom rumors are swirling today. if either of those go, expect a hard-liner, meaning a combative personality who knows their stuff, say judge ludig from bowing, maybe ruddy geulianee but i can't see him getting confirmed by the senate for the attorney generalship, look for a john bolton over at state, not a bob corker. and i also think where i would disagree a little bit with folks, we're forgetting justice gorshuch,-- gor disz such, that say monumental accomplishment, it will change the law in the united states for 30 plus years, if i were the president i would gup stairs to the second floor, throw the door open on white house counsel mcgan's office and demand my 20 circuit court nominees by the end of next week. because the way to keep conservatives wit