i want to talk about bhp billiton. they are writing down a lot of assets.re saying they did not write down enough. alix: they wrote down shell assets by $2.8 billion. they are valued at 24 billion, more than 40% of what jpmorgan thinks these assets are valued at. it is a huge discrepancy. it is not the first time bhp has had to write down their assets. they already 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 th

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

angie: bhp billiton announcing a 9% rise in production for the third quarter and a potential hit tandaahead of earnings season. let's get to paul allen in sydney. how are the numbers stacking up? >> pretty good. we will talk about the good news. iron ore production up 14% on year to 60 million tons, narrowly beating expectations. we had the iron ore price around 52. costss been stripping out all day long. also good was petroleum, up 4% on year. third quarter, 63 million barrels. call was down slightly. was down slightly. now the bad news. bhp taking a hit to profit. $650 million. he got a preview of this last week. they had some impairment on ofle assets at a net loss $1.2 billion. numbers,he production we could give bhp -- see the market give bhp a bit of a whack. how did south 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, t

bhp billiton is doing its part, announcing there will be a fall in petroleum output by 7% over the nextopper 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 happening in the inventory market, inventory build up 2.5 million barrel build. distillate continues to build. we have been seeing this for weeks. this doesn't and crude imports are higher. record high

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

minors are taking a hit on the china news, bhp billiton and rio tinto among those falling in london tradingdown 4%, you can see others in the 5% range. britain'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

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

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

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

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