we will offset the dilution from the script >> that was bob dudley talking earlier this morning we're joined by nick coleman i want to ask about that concept of holding on to a cash pile versus a buyback can bp afford to hold off on fresh investment can it give that money back to shareholders do you think? >> those exploration numbers, the reserve replacement ratio is a nice number to have, still there's a long way from converting a discovery into something you really want to invest in. you still have to prove there's value in that decembiscovery you heard bob dudley emphasizes stability, steadiness, caution on the spending. that's probably appropriate at a time like this given what's happening in the stock markets we have seen some other companies starting to open the taps on spending a bit exxonmobil last week said it was going to increase its capex this year the emphases for the european companies is still very much pretty cautious really bp is dropping, saying it will drop its capex slightly. >> why are they doing it is it luck >> there were gas discoveries in egypt, a low-cost pl

we are going to speak to bob dudley of bp.att, let's talk about these markets and figure out what is going on. we know it has been ugly for equities. australia down by 3.2%. roughly.i down 10% futures are making a comeback a little bit. interesting to see the chinese taking a little bit of action. maybe to limit the losses for investors there. keep an eye on what is happening with the dollar. let's show you what is happening in the commodities space. we are about to speak to bob dudley. brent is trading down. by .86. the bloomberg commodity index is down by .3 of 1%. what we are seeing is a move down. we've got a half hour to go until the start of european trading. matt: take a look at futures. it looks rough. when you look at european features, we have seen a recovery in s&p 500 futures. .2%.own only remember, they were down only .09% yesterday. is.u.s. markets, that european features still down. 3% in someture down change. dax features down 3% and change. big drops across the board and futures. .- in futures investors are go

bob dudley joins manus cranny here in london. good morning and over to you . u this morning. 10 days ago, we had the good news with your results. the big words in the corridors around here is transition. you just cannot the podium talking about it. my question is this. this big oil running too quickly to the exit on big oil? is there just too much of a focus on transition? bob: no, i don't think so. it's all about a balance and we are certainly investing the majority of our capital in what we do well today and transitioning overtime. this is going to be a slow transition. there's going to be a need for oil and gas come all forms of energy. 2 billion more people and the planet and huge growth in asia and africa for electric power alone. no, we need to be prudent and involved. we know a lot about these new technologies and have to be economic for our shareholders. you will see all of it. manus: i read with interest what you are doing. forgive me if i paraphrase here -- you are doing smaller deals. you are not blowing the bank on a $2 billion deal. you are choosin

bob dudley is in the building. they have a nice set of numbers.increases -- net increases. that will be one of the questions when he sits down with guy. one of the bright spots is the rapid rebound in projects according to the tliv blog on the at the moment. season kicksne that company. we are mentioning these individual stocks. the overriding theme is futures are weaker. the ftse 100 futures down by 2.8% right now. manus: we have managed to turn a bit of green on the screen. the u.s. equity futures down. the s&p indicating a lower opening. mliv said if there is a hard hat to be bought, go and buy it. do not panic. ♪ guy: tuesday, the sixth of february. welcome to "bloomberg markets: european open." i am guy johnson, alongside matt miller. he is over in berlin. cash trade less than 30 minutes away. ♪ guy: stocks are smashed. equities traded lower in the united states and asia. european features pointing to an ugly start. s&p and futures pushing higher. volatility spikes.

we speak to bob dudley.it of a sense of what we are about next with the middle east markets. open one hour away. we take a look at which stocks are going to be key for you to watch. this is bloomberg. ♪ ♪ yousef: here are some of the ideas to give in mind ahead of the open. they have released their 2017 earnings this morning. was 5.87.that revenue the company says it sees stable revenue in 2018. customer base rose 5% last year to 57 million. this is a stock that has three buys, for holds. -- four hold. 5.5% with a return potential of 5.2%. this is one of the largest companies in middle east. -- in the middle east. the company was previously rated buys, oncets, seven out. previously won your performance. short of their 10%. also, other news to keep in mind, name holding, getting and it did -- an ejection regulator to list on the dubai financial market. the company has been keen to push that on but also the liquidity on the markets are drug get more details over the coming days and weeks. in terms of corporate

we caught up with bob dudley. ebitda fromr repsol, 6.7 billion euros.ciled billion. and in terms of what they are delivering. do they bid or not bid? bid for a new way nobles company. juliette saly has your first word news. the new chairman of the federal reserve has open the door to central banks raising interest rates four times this year. that is as jerome powell acknowledged strong economic policymakers to rethink their plans. >> while many factors shape the outlook some of the headwinds have turned into tailwinds. in particular, fiscal policy has become more stimulated of and foreign demand for u.s. exports is on a firmer trajectory. party lawmakers have backed an amendment calling for britain to seek post ties to the eu after it leaves the block. the size of the rebellion is enough to wipe out prime minister theresa may's slim working majority. china'sseen manufacturing gauge fall that most in five years as the spring festival holiday curved output and orders fell. the pmi dropping. missing estimates. top officials are gathering to reship the gove

bob dudley, chief executive of bp spoke with bloomberg's manus cranny in london. of mexico still in there. by 2021, we will be in the $35 to $40 range i can say confidently in terms of the breakeven point. it wasuple of weeks ago, bullish. you are in the studio just a couple of weeks ago and your word changes constantly. where's the bandwidth. it you can give me a price if you want to, but where is the is at 40 to 50? where do you see the longer-term trajectory given the challenges from the u.s. as an exporter? bob: the key is the responsiveness of the shale. they are a shock absorber on the upside in the low side of the oil production. it is such a response of market in north america. in terms of 50 to 65, it is probably the van that we will drift within till the end of the decade. flex even have a hedge together. and you have a very specialist knowledge. the unitedy between states of america and russia, in my humble opinion, is hitting new lows. you have a substantial knowledge of this. square this away for me. are the risks rising if you are holding? how do you

this group between opec and non-opec -- that will be a big topic this we will beusly speaking to bob dudleye big drivers in terms of the bond market. let's get that strengthening currency. -- as the europe, next european federal bank vice president. the decision puts spain back on the executive board after a six-year hiatus, coming at a crucial time for the ecb as it prepares to unwind unprecedented monetary stimulus after a decade of controversial decisions. through,anish went pledging to defend the independence of the ecb. but this is from a politician this time and that makes me very an easy. >> well, you are not the only one, manus. they are very aware that the , hele who don't like this is now sitting as a central banker where he is supposed to be independent from any kind of political interference. he set up the end of the day you have to set monetary policy for the entire euro area. we understand moving any conflicts of interest in the coming days, we don't know exactly whether it is imminent, and at the same time he also hinted that there are no conditions to the appointment. there

this is really firing on all cylinders, to grab that phrase from bob lovely. dudley. and there the growth is no surprise with the japanese and japan is well strong in robotics. markets -- you look is technologyt and one of the sugar markets around. i want to drill in that a thele bit more and who owns .arket the retail investing in japan adds to the position and they have 17% of the market. it is moderately under-owned, in a relative sense. comingee global managers ignored.nd it is often global managers can ignore and underweight it. we are going down the road of reappointment and they are trying to weaken the yen. >> the equity markets are traditionally hedges and we take neutral read on this and hedge and it hasexposure more to do with the risk when i arrive. >> we don't know what to do with that and i would not put too with the trade numbers. because we have a bit of a dip going on there grew byrts -- exports 12%. what happened next in the dollar dictated by the equity week. up next on daybreak, the second-highest post going head-to-head. they dashed on the runners

he is bob dudley, live from petroleum week in london. that is 5:15 new york time, 10:15 in london.berg. ♪ francine: good morning, everyone. tom keene is off for president'' day. let's get to the first world news with sebastian. sebastian: president trump issued a week in blizzard of tweets over the investigation into russian meddling into the election. russia,ot criticize even after special counsel robert mueller came out with indictments for 13 russians were allegedly leading social media efforts to attack hillary clinton. there's a report former trump campaign aide rick gates has agreed to plead guilty and corporate with a special counsel's investigation. gates will admit to fraud related charges in order to agree to testify is former trump campaign manager paul manafort. goldman sachs warning that will be a surge in the cost of servicing american debt. expansion, historic and economic growth along with rising bond yields. goldman says that will eventually put u.s. in worst position than in the 1990's. in the u k, make or break week for the pound is it is likely to be driven by e

bob dudley has told bloomberg's manus cranny it will be a slow transition.does not expect a lot of volatility during that process. >> i think the key is the responsiveness of the shales. there is a shock absorber on the upside and the lower side of the oil process. there is such a response of market in north america. i think in terms of $50 to $65 is the ban we will drift within over the decade. nejra: that is the bloomberg business flash. francine: now, let's talk about the dollar, the weakness in the currency could prove to be a boon for global trade. oxford economics said the dollar's fomite at 3% to world trade, noting that other witness increases cross-border lending and boosts equities. now, who will be the biggest winners from the dollar's weakness? for more on all of this, we are joined by jean boivin. when you look at first of all, markets, i do not know how much you worry about trade wars, and that would be another incentive for the correction of the market -- dollar weakness means trade is ok and growth is ok. are you confident about the future? j

oil and gas over here, down 1% and we'll be speaking to bob dudley, the ceo of bp tomorrow broadly all in all, negative session. we got the data which was constructive very quickly. look at the euro, knocking on the door of 125. once again this is another challenge for equity markets and especially scomborexporters. >> sri jegarajah let's get back to questions now everybody's minds is the market the one that everyone is waiting for. mark santoli joins us. >> becky, i think it's the dip that everyone told themselves that they wanted and told themselves they were ready for this is how they feel, they're not comfortable. they're sometimes sharper than you would like and sometimes confusing what exactly is causing it i do think you have to go with the assumption this is more than just a pullback in the market that everybody agreed was incredible overextended and a need for backing off this is more normal, what we had going up 7.5% in 18 days, that's abnormal, that's extraordinarily calm in strong markets i would point out for context, dow loss of 665 points or so on friday, was a top-ten p

badly down, but as they improve throughout the sgs we r session we rallied as well i spoke with bob dudley of bp this morning bp yields are about 6.5% at the moment they think they got their balance sheet back on track. cash flow is fine. 6.5% dividend. the biggest falling sector, 2.4%, banks also getting hit again today. ironic because so many people say to me when the fed raises rates we get more net interest margins, better nims for the financial sector and they should be a ramal rallying sector, but falling heavily. maybe they will enjoy the volatility we're getting out of this market. interesting to note telecoms and utilities, seen as slightly defensive sectors, they, too are under a lot of pressure. healthcare down 1.6% if you want to know who is on the orient express, people say look at the market structure we don't have many specialists in marketmakers anymore. back to you. >> we will continue to check in and see what's happening overseas and here. if you are watching this morning, look at the boards again. we've been all over the place. down as much as 600 points on the dow, just