numbers,he production we could give bhp -- see the market give bhp a bit of a whack. 30 to do? pretty good. record aluminum production. 1.2 million tons for the quarter. tons.um, 242,000 coal rose substantially, 8.9 million tons. million.ical, 1.9 they are the largest manganese producer. they have taken some loan cash impairments of $1.3 million. 32 also be closely watched. angie: paul allen, thanks for that. the recent earthquake in the markets in china has sent tremors through corporate earnings around the world. companies selling things like fried chicken, trenchcoats, iron ore, and cognac have taken a hit. is here with details and the aftershocks of china's meltdown. yvonne: looks like it could be felt for a couple weeks as we see the biggest brands report earnings for the second order. for the past decade, china has been one of the biggest markets for these products, including cars, luxury goods, and raw materials. this could be a welcome sign for many of these companies when we see markets like brazil and russia not picking up the slack. talking about some of th

it is not the first time bhp has had to write down their assets.ready wrote down there permian and other places as well. watch this. it will get interesting as we continue to see oil prices not rebound to the $100-level. 40% higher. huge difference. matt: we will watch it i am sure. you will definitely be watching and then i will ask you about it. janet yellen is going to be speaking. she is just giving prepared remarks. you can read those anywhere, even on the internet. we will take you live to janet yellen's testimony as soon as the senate starts peppering her with questions. stay with us here on bloomberg market day. now i want to give you a look at some of your top stories -- an update on a breaking news story out of chattanooga, tennessee. there is a report that four u.s. marines and a gunman are dead following shooting incidents. the mayor calls it a horrific situation. lee university and state community college campuses are locked down. the white house says president obama has been briefed on the situation. police are planning a news confere

oversupply has been the theme and bhp is responding.he question is when miners and drillers will stop turning a product and tighten the market. bhp billiton is doing its part, announcing there will be a fall in petroleum output by 7% over the next year. copper will fall 12%. part of that is due to declining copper grades. the less good cover you have, the less production you get. they will close some minds. up 6%.re, output will be dow the point is, when you see the commodity index at 13-year lows, you are seeing the big guns take action. scarlet: maybe we will see the price respond. wti, $49.20 a barrel. brent oil falling 1.7% as well. earlier today, the global head of commodity research at macquarie group says that brent could fall to $50 a barrel, from 56 right now. >> there in mind, we are still and we are still talking about a surplus of 2 million there is a day. we are still building inventory and will continue to for the next nine months. alix: that is a pretty bold call, $50 brent. we have new data here in the u.s. about what is

fourth quarter numbers bear that out. 60 million tons produced up 14% on year, and beating bhp's ownstimates. there will be more in the coming year for 2016. strong members also from the other divisions, particularly petroleum and only copper was down slightly. we did see bhp's shares decline in trade this morning -- it was nothing to do with production numbers, though. varied in the report, they said it will be a $650 million head to underlying profit. really, nothing to do with the production, and they are completely undeterred about what higher or price is doing. they seem quite content to keep playing the volume game force long as they need to. anna: paul the governor glenn stevens spoke a little while ago in the early hours of the morning. commodity prices continue to weaken and he has been saying that further cuts to the interest rates in australia are on the table -- it would be the first time this year and there is speculation that it could continue. paul: yes. there was a lot of shadowboxing around this -- glenn stevens took questions after his predictable speech in which a

, bhp down 4%, you can see others in the 5% range.in's vodafone issuing upbeat guidance and achieving quarterly sales growth for the first time in three years. but german chemicals giant basf posting an earnings miss there the stock 600 is underperforming the s&p 500 for the week. with just a couple hours remaining in u.s. trade. europe stocks down 2.75%. the s&p down 1.5%, but still negative on the week. coming up, shares of amazon skyrocketing after the strong earnings ron report. why one analyst says he thinks the stock has nowhere to go but up. but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid. every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very b

bhp talks about goodwill impairment. as for the charges, the business $24a net operating asset of million. the primeeece, minister is facing a storm at home as he sells the bailout deal that he struck with the creditors over the weekend. the hardliners will say the cannot support it. tsipras defended the deal that withs "forced to accept" "a knife to the neck." he says that all of the mid-term financing needs will be covered. european officials are at a loss on how to create loans that will keep greece from default thing. finances are getting worse and the governments are doing nothing to help out with the funds. capital controls ravage the economy that is in the middle of a double-dip recession. yum! brands fell. fullympany is not recovered from last year. they earn more than half of the revenue from china. sales were down. they have been trying to convince chinese consumers the food is safe to eat, after a scandal accused a supplier of using outdated meat. there is more competition from local restaurant rants. -- brand

. -- bhp. the world's biggest miner. they say they will cut oil by 7% over the next year.his tells the whole story. these orange bars right here look at the liability of the oil unit. it is reaching about $8 billion as of last year. this blue bar tells the story of capital expenditures when it comes to oil. down by 6.5 billion. it is not making the money that it needs to make. more liability, you can see, with cap x following, you are continuing see them hold act, -- pull back cutting investment , in onshore unit. this could get interesting. joe: everywhere you look people are cutting back. we just heard from qualcomm cutting 15,000. capital retrenching a little bit. alix: will this be enough? with a change market dynamics? joe: i also want to talk about commodities. i looking at the terminal and am this chart, we talked a lot about gold. we talked about oil and copper. but now let's talk about the metal that everyone really cares about, zinc. zinc is caught up in the commodities selloff and it really was crushed in the last few months. truth be told, not many people talk

clouding and otherwise good picture from bhp. fourth quarter iron ore production -- guidance for the coming year raised to 247 million tons despite the low price of iron ore. the hp happy to play the volume game. good story for petroleum as well. was all really clouded by the announcement of the underlying hit. they also took a hit on the dim e-merger of south 32. reporting, a mixed bag for them. aluminum production down. manganese performing strongly for south 32. shares just a fraction off in early trade. thanks for that. let's have a look at some of the other stories we are keeping tabs on. yvonne with the wrap up. yvonne: the recent earthquake in china sending tremors. cognac, taking the hit. china bearing the blunt for some of the bad in numbers. the company said wholesalers continue hold back on cognac orders. take a look at the exposures from names like young brand. they get half of their sales from china. the french supermarket operator chinese customers are spending less when they shop. customers and investors betting fo

bhp billiton up, interesting because it's taken a ride down on its u.s. asset. it is the biggest overseas investor in u.s. shale. jonathan: iron ore, a big headache for that company as well. let's keep it on china gdp top estimates writing 7% from a year earlier. tom, sometimes economist follow the government to guidance what was behind this? tom: i think there is always that suspicion with the chinese numbers. in this case, there are a couple of genuine factors that we can point to to explain the price. the impact of the stimulus china's government has gotten serious supporting growth. three more rate cuts since 4014. -- 2014. in particular we are seeing real estate sales up, infrastructure spending is up. the second factor, more difficult to sustain is what has been going on in the equity market. we had a surge in the equity market in the second quarter. along with that came an explosion in turnover, that was positive. that was positive for banks well management businesses -- wealth management businesses. the issue for china's government is as the equity boom

bhp's gas focused hawk -- will account for the majority of the right job.ompanies president described the charges -- asit doe s not reflect its broader onshore u.s. business. breaking news. this goes back to the british financing on -- the bridge financing on greece. greek bridge finance plans seek guarantees from non euro officials. this comes down to the necessity for a bridge finance put in place before the full bailout is enacted. the e.u. says greek debt will be 165% in 2020. this is in response to the imf talking about debt sustainability. e.u. officials say one option is using the security markets program as a guarantee. profit held at the european central bank from bond sts they hold. talks are ongoing on guarantees. that ties in very clearly with the imf concerns, which they raised in their debt sustainability report announced overnight. ok, as we get more breaking heads, we will bring those to you. today marks six months from when the smb dropped its cap on the siwwiss franc. how was the currency. one man who knows a thing or two about fx, is the

the him a product's iron or a similar story for bhp, of more than 3%.well, the lowest cost iron or producer, also up by more than 3% this morning. it is not just a supply story. the other side of the coin is demand and china is just not importing the iron ore like it used to. this is a situation that rio tinto describes as the new normal and there is more supply coming on in australia as well open a mine will which will begin shipments later this year. bloom suggests the oversupply problem will persist well into national bloomberg suggests the -- bloomberg suggests the oversupply problem will persist well and to 25th -- 2017. rishaad: here is sherry. another deadline miss -- iran and world leaders working on the final details of it program in return for easing sanctions. a deal could come at any time, but for the time being, negotiators have adjourned at the final meeting here final text is expected to be larger than expected. the last obstacle was around the timing and language of the new un security council resolution that will lift penalties on an ra

it's the freeports and caterpillars and bhps. not good. >> when we look at volatility and look farther out, what are traders looking at? are they expecting a lot more to come? >> we saw implied volatility rise essentially across the board. we saw it in long-term options. and we definitely saw it in the nearer term ones. longer not as much so, but, yeah, anxiety is definitely being priced higher now than it was a week ago. and i think you can see good reasons for that. one other quick thing i would point to, even areas you don't see weakness, perennial favorites like starbucks for example essentially trading close to or on all-time highs, these are stocks trading at valuations they haven't seen in years. for a stock that a great company is doing everything right but it's at its peak valuation? i don't know. >> i think what carter is also speaking to is breath it away. we're seeing more and more concentration in disney and starbucks and it was until apple just recently. if we see the move we had in apple this week in a starbucks an

it's the freeports and caterpillars and bhps. not good. >> when we take a look at volatility and look fatherert out, whoo are traders pricing in? are they expecting more, a lot more to come? >> we saw implied volatility rise essentially across the board. we saw it in long-term options and we definitely saw it in the near-term ones. longer and not as much so but anxiety is definitely being priced higher now than its with a week ago. i think you can see good reason forz that. even the areas where you don't see weakness, perennial favorites like starbucks, for example, which is trading very close to or on its all-time highs, these are stocks trading at valuations they have wnt seen in years. 30 times earnings for a stock that's a great company, doing everything right but it's at its peak valuation? i don't know. >> i think what carter is speaking to is breadth in a way and we're seeing more and more concentration in disney and starbucks. and until apple just recently. and it we start to see the sort of move we had in apple this week

talk about the environment and the mining environment and places -- but look at places like rio and bhpno matter the price of the stuff they are pulling out of the ground, what is your thoughts on that? do you have no choice but to follow up and do the same thing? mark: first thing i would like to say is i don't make comments about specific competitors do. all i can say is we look at the market, we make a judgment about what the demand is and we make a connection decision on that basis. we have cut platinum production and diamond production. we have cut coal production. that's how we operate in the market. you should ask others what their strategy is. not me. jonathan: i will last them when they come on the show. could you characterize what is happening? mark: i think it is clear that we have an oversupply. 100 to 200 million tons. that is clearly having an effect on price. in the end, you'll have to ask others on how they intend to respond. jonathan: i will do just that, mark. as a look at the commodity markets, it kind of tells me we could be in for a. -- and for a. in for a period of

bhp billiton shares down 3%. the adr's in new york were down 4%.means we are in for more selling. there will not be a buy back coming through. futures pointed to a lower loss in australia as well. price nowron ore below 45 u.s. dollars. ad also, we heard the head of financial group in moscow. he spoke to bloomberg yesterday. he says there is going to be even worse times ahead for minors. -- miners. there will be long-term trend. a lot of selling coming through and impacting profits. angie: a lot of companies are already hurting, selling themselves in getting out of the market. $45 not supporting a lot of business strategies out there. juliette: remember when they did not think that iron ore would get through $50 when it was down 5%. now it's down another 10%. just below $45. that will have a big impact on a lot of stocks today. angie: risk is off. thanks for that. let's check in on mark's this morning. how are we feeling, everybody? let's head over to new zealand -- was check in on markets. 1.3$ d% down. 1/5 of this economy depends on china. the ne

sticking with medals bhp bhp billiton hitting the lowest level in nearly a week. they expect full year profits to get hit by write downs in it's copper trade. >> he is seeing reassuring elements coming from the investigation into ge's takeover of alstom. if approved the 12.4 billion euro deal would be ge's biggest ever acquisition. stefen. >> i understand that the last exchanges have been some what positive. this was just a few days after the ge offered some concessions to the european commission last week ge submitted it without giving the details of what was at the table. that being said the ceo of the company e-mailed indicating a few months agatha he was willing to sell off some intellectual properties in order to get the green light from european authorities but say that concessions around the services business of alstom was not an option. did not give further details. also indicated that a french government remains cautious regarding the deal between ge and alstom and especially pending this decision from the european commission. the commission is not likely

hp saying it's record capacity now with iron ore, bhp. expanding capacity. important today, as we it is the second parliamentary vote that tsipras has to get through. on tonight failed banks and speeding up the justice system. the european central bank added $900 million euros to the liquidity of the greek banks taking it to 90 billion euros. interesting to see that the greek government is aiming to complete the third bailout agreement. that full negotiation, a full negotiation by august 20. an awfully tight timetable. back to you. >> shares of apple, falling, could the company have trouble ahead from china? . here's your cnbc news update. police arresting a tunisian and is a pakistani on suspicion they were plotting attacks in italy. the men were arrested in the northern city of bruscia, that has a u.s. military presence. >>> 32 people were killed in bomb attacks across baghdad yesterday. the deadliest took place when a car bomb packed with explosives detonated in the shiite district. no one took responsibility. >>> ikea is offering a free wall-anchoring ki

bhp billiton down by .8%. rio tinto weakened by .7%.g the trend by .3% in the early session. the gold price is what we have been watching. a lot of traders quite bearish particularly in the hope seven an interest rate rise in the u.s. this year. australia's largest gold miner is up 3%. we are seeing some positive moves coming through. northern star up 4%, evolution up 4.5%. a lot of the selling already priced in with investors getting more optimistic about some of the gold players. in japan, some reports that some of the megabanks have reported gains in fees and overseas lending. here are some of the big banks. yokohoma down 1%. chiba down 1%. quite a selloff in japanese banks this morning. yvonne: just ahead, as the commodities rout continues, our next guest says there is too much pessimism. ♪ yvonne: checking headlines around the world, china: for talks with japan over joint development of oil and guess reserves in the east china sea just days after tokyo released pictures of what it says are platforms close to the median line separat

bhp billiton and rio tinto the biggest mining companies, they were pretty much unchanged in trading hereia ahead of the open in london. >> gold hit a five-year low on monday. what are producers and investors saying is driving this plunge other than dollar strength? >> that is a key question. it seems to be everybody you talk to has a different answer if at all. there are those who point to china with gold purchases. that disappointed some investors who had expectations it has to have more bully and holding. there is also less demand now that greece is working out its issues in the eurozone. i spoke to evolution mining, australia's third biggest gold producer. they pointed to the federal reserve and the comments from janet yellen, who reiterated the u.s. rates will probably rise this year. that is not a good story for gold. they see some of the larger north american gold producers starting to sweat at these prices. that may bring more sales from the north american gold producers. >> thank you very much. david is joining us with the australian perspective. let's stick with that topic. aust

is what is happening to rio tinto and bhp billiton does it not affect melbourne or sydney?f course it does. it affects employment, to begin with, and the miners have been laying off people, not just around the world but in australia also. there is a lot of pressure in australia. the relatively new government is under a lot of pressure to do something, and historically this is a country that exports mineral wells and agriculture. it is unfortunate, with the now 26 million people they have a problem of generating internal growth the way larger countries do. tom: bring up the gdp chart showing the implosion in europe, animal spirit. 50 years ago, this was -- has it really become part of the immediate global community? don: the big change in australia in the last 50 years is tourism. the first time i went there, it was like island fever. oh my god, there is somebody from out of the country we have to have a dinner party for them today. tourism is big for australia but nowhere near mineral and agriculture. brendan: one of the difficulties australia is happening in making a trans

the likes of bhp and tinto rio want to maintain market share despite falling prices. that's the real story, companies on the ground making decisions that don't make sense to a lot of people. they continue to take the stuff out of the ground and large quantities this -- despite the falling price. tom: thank you so much. these are the microeconomics of the moment. oil production is straight up. our focus is on earnings. apple is out after the hell and stephen whiting -- after the bell and's even whiting is leading in commodities. i look at this and let me ask you the first mining question -- is it one big value trap? across the citigroup research, is there an opportunity in mining or do you have to wait for more carnage? steven: we wanted to look at it as a strategic opportunity something you take advantage of over perhaps 10 years. this absolute crush in profits in the energy is going to lead to a dearth of investment. we are going to see demand for the next decade and perhaps decades beyond of continuously growing but a terrible lack of maintenance level investment in