bob dudley: surprises are happening all over the world.surprised by what is happening in the u k and even the referendum in columbia, which has gone in another direction. that was a surprise. i think we are in for moore 17.rises in 20 we are a long-term industry, we need to think 10-15 years outside we will navigate and work through this. bp finally has its discipline back and we will adapt to whatever the circumstances. angie: we are getting more on the bp deal with abu dhabi, with robin mills. we were talking about the structure of the deal, vp trading shares for a stake in the offshore deal. walk us through again the strategy. we saw them do something different when they took their own state. -- stake. paid in cash.hey now, we were not far into the oil crisis event and companies felt like they had more cash on hand. bp is paying in stock and that is a defensive move to raise capital and defend cash, bringing in one of its largest investors in the stock. gets a very long-term investor, potentially, with very deep pockets. we heard that t

manus: bob dudley there speaking with tracy alloway. he joins us now from abu dhabi. y, great to see you this morning. well done on the interview with bob. he sounds pretty optimistic. this confidence, this view of trying to grow, where does that confidence comes from? tracy: it was a pretty amazing turnaround if you think to the past year or so when we had a lot of the oil majors including bp having to mock ball project because of -- mothball project because of the lower oil price. he says it is time for bp to grow. they are looking at seven or eight major projects. where does the confidence come from? you heard bob dudley talking about opec. there has been some hard work undertaken by the oil majors to bring down their own costs in the face to of lower crude price. dudley affirming that bp can cover its own spending and dividends without having to tap capital market. to $55 a barrel, down from a previous estimate of $50 a barrel. that speaks to the changes that have been undertaken in the oil business model. anna: he was in town to sign a deal with and abu dhabi nati

dudley had to say. boban another 160,000 barrels a day in addition to the ones we produce in abu dhabi, so continuing a very long-term relationship. that is important for us. the economics are good for us, for shareholders. strategic brings in a owner of the company, which i'm also pleased. tracy: that was bob dudley here in on the dobby, talking to us about a very, very big deal -- in abu dhabi, talking to us about a very big deal. matt: tracy alloway from that very good deal out of abu dhabi. joining us now, amrita sen. what you think about the deal bob dudley cut in abu dhabi? they have been working on it for a long time. amrita: there has been some disagreement in 2014. they managed to put that aside. it is absolutely a stored. i think a lot of oil majors, not just bp, they are looking ahead and seeing the project buying is really thin and we need to get some projects up and running because i think there is a potential upside, even beyond the 50 to $60 that he talks about and most people talk about. tha

tracy alloway sat down with bob dudley in bob dudley and ask if this deal is a sign it is time for oiles ramping up investment. one has to have some confidence in the price. we're getting down to an efficient level. we've been saying we will balance our funds in 2017. a year ago, we were saying $60. now we can do it at $55. i think we're going to remain very disciplined about the capital we spend, the projects we select. it is time for bp to start growing now. we've worked through so many difficulties. i think the company is well positioned for growth. >> we recently saw a historic deal for opec. we saw a potentially more historic deal by non-opec producers to join in with production cuts. how do you feel about opec and the future of oil? think it is very significant. countries non-opec seriously talking about reducing their output. some people have said that opec is not a real organization anymore, doesn't actually bring things together, and i think opec is an important organization. this agreement is significant. you can already see it in the notices going out from the middle east. i

tracy alloway asked ceo bob dudley why the deal has taken so long? herebeen for 75 years, important work that bp has been doing, a strategic relationship with abu dhabi. to be honest, given the strategic framework and our obligations in the u.s., it took a while to get to the point where we could make this investment with abu dhabi. dhabi will be an owner of about 2% of bp. anotherit will mean 160,000 barrels a day. continues aes of -- very, very long-term relationship. and for bpit brings in a strategic owner of the company, which i'm very pleased about. bp has worked here a long time. i would like to think that bp has shown what we can do technically. with adnoc which is going through their own transformation as a company and we will bring resources into it and we have got a lot of experience managing really big flooding, and the technical things we will bring and i think that's one of the things we bring, as well as a deep sense of responsibility at about the privilege of working with the national resources of abu dhabi. -- in many, the ways, the

bob dudley: it is very significant.eriously talking about reducing . some people have said opec is not a real organization anymore, it does not actually bring things together. i think opec is an important organization. this agreement is significant. you can see it. i know because we work in russia, there is a schedule of reducing output from russia, so i think it is serious. oil prices between $50 and $60 is very realistic for 2017, and growth continues in china and america. reporter: donald trump has been nominated rex tillerson. is he right? excellent for is knowing how to get things done, around the world. .e is a very serious person i think he will do a great job, not just because i am in the oil and gas industry. this is a man that knows the world and how to global management. reporter: we know donald trump is potentially more friendly to the oil and gas industry than his predecessors. what does that mean for you? bob dudley: surprises are all over the world. people were surprised with the campaign in the u.k., eve

with what the bob dudley. : it will mean additional barrels per day.erm relationship -- continue will cover remote relationship, that's good that continuing a very long-term relationship, that is important for us. for bp, it brings in the strategic owner. us is thejoining acoustic group. great have you with us area typically, a message and deals for price. what is the message for price and for signal out of this one? guest: up. the market iss doing. it is manufacturing it because when you see these types of activities, it means it is consolidating and more control over use and they can let this grind up to the upside. that's what we're seeing. opec putting a price on. what is the risk of the floor next ripped out? guest: i do not think it is a risk into the end of the year. it challenges, we conceive $46, back into play. there are pundits calling $48. i do not think the probability is their right now. probably less than 20% we will challenge the floor. jonathan: great have you with us. breaking news. david: breaking news. beentine lagarde has convicted

in my discussion with bob dudley, he said now is a good time to ramp up investment.e have seen the historic deal with opec and non-opec producers. should we take this particular deal as a sign that we might get to the doctor and investment? -- the big upturn in investment? robin: at some point capital spending has to turn around. there has to be investment in new production. oil prices have recovered somewhat on the back of the opec deal. i don't think the floodgates are going to open. i think this will be cautious and careful. about the outlook more. bp saying that he can cover its own spending and dividends without having to borrow with oil at 55 euros -- $55 per barrel per year. that is down from the previous assessment, $60 per barrel. how is bp achieving that spending? robin: like the other major oil committees, just a focus on cost. cutting all of the nonessentials, but also deflation. the cost of drilling rigs has come down dramatically. i think this will be a long multi-your process squeezing out cost. it does take a long time to reduce structural cost. it wi

in my discussion with bob dudley, he said now was a good time to ramp up investment.ompany will still be quite considerate in terms of deals and any ramp up in spending, but oil has turned the corner. we have seen the historic deal with opec and non-opec producers. it should we take this as a sign that we might finally get the upturn in investment? robin: that is three consecutive years of spending by the industry. that is almost unprecedented, so i think at some point in capital spending must turn around. and there has to be investment in new production. oil prices have recovered busier on the back of the opec deal, so , yes, we may be seeing more spending next year, but i do not think the floodgates are going to open. they will continue to be cautious on what they look at. tracy: let's look at that outlook a bit more. bp saying they can cover their own spending and dividends without having to borrow, with $50 to $55 a barrel per year down from an earlier , estimate of $60 a barrel. how is bp achieving that spending? robin: like all of the major oil companies, it is

scarlet: that was bp ceo bob dudley.s begun speaking at the university of baltimore. in, she talks about american living standards rising economic gains. yellen: there are also indications that wage growth is picking up, and weekly earnings for younger workers have made strong gains over the past couple of years. that is probably one reason why younger workers reported feeling significantly more optimistic about the job market compared with 2013, according to a survey published just today by the federal reserve. challenges do remain. scarlet: that was fed chair janet yellen. you can watch the rest of her remarks at the bloomberg live go. this is bloomberg. ♪ scarlet: it's 2:00 p.m. in new york, and 7:00 p.m., and julie hyman. oliver: and i'm oliver renick. welcome to "bloomberg markets." julie: covering stories out of washington, is simple, and abu dhabi. tone to the markets today, exhausted by the assassination of a russian envoy in turkey's capital. gold, the yen come and treasuries catching a bid as investors look for

rishaad: bob dudley speaking with tracy alloway.ump has caused further tension with china over the seizure of an underwater drone. we have more on the drone of trauma next. ♪ donald trump has exacerbated tensions with china over its seizure of the u.s. navy drone. the president-elect that the unmanned vessel had been stolen, but that china should keep it. what is china's reaction to trump? >> it would be, there is speculation it would have in a reaction to what trump had to say on taiwan, and others speculating it was a reaction to scooping this and drone out of -- water was a reaction to yes, that's right. weeks in sydney last talking, and he made some remarks about the south china sea, which could have been considered to be aggressive from the point of view of the chinese , but to be honest, i don't buy either of those. i think this was purely opportunistic. the chinese had an opportunity to seize the drone and probably had been wanting to get hold of one of these drones for eye while so they could have a look at it. >> john mccai