you see companies cutting capex.ddition to that story is the total production has state up here. u.s. crude production is staying up here. hardly rolling over at all. you saying the saudi's are pumping at an all-time high -- when are we going to start to see that distraction in the fundamentals for future supply feed into the production numbers? gary: there are long lead times in this business. u.s. shale has great momentum. production has already started to decline. we think the data is overstating production in places like texas. you will see more of that in the weeks ahead. production will start to edge lower. we are talking about production growth of 1.6 million barrels a day in the u.s. alone. it drops to 800 a day in the second quarter. the rate of growth is going to slow. that is one bucket. it is a small bucket. you have the opec bucket, which is like 31 million. everyone is worried about iran. the other bucket is that 45 million barrels a day of non-opec non-shale. there's momentum from capex during $100 oil

the industry has cut 1100 rigs capex. billion in this year alone.de the point that capex outside the u.s. is still growing, which is fascinating to me. to see if thatg non-opec supply falls. scarlet: all about protecting market share. alix steel will be back for the market close. let's go to our top stories. videoreleased dash cam showing the arrest of a black woman in a controversial texas case. sandra the land was pulled over outside of houston because she did not use her blinker when changing lanes. the trooper used a stun gun on her when she refused to get out of her car. she was arrested and was found dead a few days later. officials say she hanged herself, but family members dispute that. sands casino is in court over plans to restructure $20 billion in debt. caesars still does not have support from the creditors it needs to go ahead with the plan. golfer jordan spieth will not let a little superstition stand in his way of a good time. take a look at this picture from facebook. traveling back to the u.s. with zach johnson. spieth is the one dr

a lot of tech capex is suspect. it tells me the qqq needs to come down and converge to apple.: this chart shows energy versus s&p, i believe against the euro? steve: i would like traders to realize -- this goes far back, all the way back to the year 2000. ift i want to convey here is you are trading energy, you are really trading the u.s. dollar. when you are trading a lot of things, you are trading the u.s. dollar. you may think you are not a currency guy or girl, but you are. your currency versus -- relative to energy stocks relative to the s&p. over the last 15 years, an incredibly strong correlation in verse to the u.s. dollar. dollar up, energy stocks down, and vice versa. energy stocks are having a hard time. i don't believe it's because the fundamentals have changed. i think it's about currency. joe: thanks for coming on, steve. alix: still ahead, adultery site ashley madison has been hacked. how much could the breach cost the company? the answer when we get back. ♪ alix: i am alix steel. joe: i am joe weisenthal. "what'd you miss?" on ashley madison -- before the break

in the first half of 2015, energy-related capex in the united states is probably drag down economic growth i 0.75%. vonnie: if the long-term investments are not happening what should investor do? steven: right now, we are at peak summer driving demand. refiners are pulling in in the united states half a million heralds per day which is more than usual for seasonal reasons to pull up a demand and you are seeing a week price even with this it for gary boost. there are other things like the iran deal so you could very easily see into the third and fourth quarters further declines in the oil price which hurts this investment dynamic. tom: you are getting into low territory with oil. brendan: one thing that is different about this oil crash is the physics of how they get it out of the ground. it's much easier to turn the tap on and off as necessary. steven: this is not a bad thing for american producers who find that they will be profitable at lower oil price levels than anyone imagined. there are economies around the world that are not exploiting that and have lots of difficulties like securit

we are getting a reading on capex comeing in at $8.3 billion. scarlet: we were talking about production. why is it significant to meet production target? alix: big oil has had a tough time growing. it is important that they keep these production targets study. exxon has had an aggressive growth profile for a major. expectations are down sequentially. last quarter, they made about 4.2 billion oils -- barrels of oil equivalently. matt: how is it going to look going forward if they start reducing workforce labor? alix: we should make a distinction that exxon is in the best case scenario. they are an outlier. they did have a big monkey on their back in the form of xp l energy acquisition -- xpo energy acquisition from a few years ago and there is still an oversupply , but they are in a cash flow world better than anybody else. they might not need to cut from their dividend. scarlet: there is annexed on exceptionalism that we are talking about. vonnie:alix: yes. they are cutting their share of buybacks in half. it is all about dividends. matt: we hav

a lot of oil sector investment has been in the united states, there are as well -- capex as well.t could come in week two as well. anna: twitter shares rose and then quickly fell on concerns of the company's slowing growth. caroline is here with the details. caroline: if you look at the numbers, we see second quarter results beating estimates. sales up 61%. the net loss is shrinking. user growth is stalling, up 1% 360 million users. compare that to facebook. clearly, it is not keeping up with competitors. jack dorsey is the interim ceo taking me home after the castillo -- costello. there is no word if jack dorsey will quit. the reality is we can see the share price, how volatile it is, we saw its bike up 11% and shanking back down after 12 hours and we thought down 12% again. let's have a look at what the future means, what will they do to turn this around? they need to reach a mass market. this is what we are hearing from managing -- management. the focus is on new products, project lightning is one. it is all about getting real-time viewers. they get new viewers coming into expe

capex cuts and a little more on buybacks. i think you've got a very important level at 79 to 80.s going to hold this level. if not your rhys sak down to 72. over the course of 18 months you want to own this thing. >> sachlt eabs. >> zillow. letter z is going lower. it's going to 40 bucks over the next 12 months. it's a big -- big call out of cowan and i think in general that some growth is not accelerating the way it needs to to keep this multii am where it is. >> brian kelly. >> i think we could get a little bit of weakness in the dollar potentially to hedge the long dollars. buy gdx for a counter trend rally. >> guy. >> pfizer drug for a number of reasons we're not going to get into. go ahead, mel. >> i just want to say we have a very special guest tonight. my mother, victoria, is here with her friends, miranda, tom, anthony, iris, daisy. so welcome. hi, mom. that does it for us here on "fast." see you back here monday at 5:00 for more "fast money." meantime, don't go anywhere. "options action" starts right after the break with another special guest, brian kelly. stay tuned. ♪

it puts it under one big umbrella and would reduce duplication when it comes to capex. shows you that they're consolidating a lot of these assets under state supervision. no advisers have been hired just yet. it is a very interesting business model. back to you. rishaad: china is tightening its grip on online lenders. the pboc introduced a number of new rules on sunday that it says are aimed at promoting healthy industry growth. tim is now here with a look. you have a lot of papers with you here as well. lots of numbers as well. tim: it is interesting, on the online front, the debt financing idea. the online source is reasonably small within the grand scope of things. it is part of the overall picture, 360 odd billion dollars a couple weeks ago. as we were chatting, the dow down 230 billion. it has dropped a lot. relative to the free float of the market cap, it is still 6.5%. it is a big number. it is one of the risk factors that continues to be -- rishaad: what do we have here? tell me about these. incredibly volatile. what do people say? a lot of commentary other that

brendan: we are talking about supply and demand, capex spending. oil is a normal commodity.kdown of cartel pricing in oil? nouriel: there has been a breakdown mostly because of outside there have been a significant number of new producers from africa latin america to africa. brendan: opec can never get its pricing powerback? nouriel: if saudi arabia decided they want to cut supply they could have some pricing power. it is not zero or full to your to their power has been reduced over time. they still have a significant amount of power, saudi arabia. they may decide to essentially cut production. i think they did it not just for their own enemies whether it is iran or for example russia, but also for economic reasons/. if you have to much production by high-cost producers, and shale oil in the united states, and lower prices means you get rid of high marginal cost for yourself, you have a larger market share. it is a rational decision. reduce prices, they are evening out. vonnie: australian oil, they are talking about a rate cut you know the aussie dollar is down. does the rba

capex is falling. people look at what it stands on. iran is coming into the picture.e are going to see whether they can fulfill what people are wanting them to do on nuclear issues. iran, you aren also going to see the opec meetings. rishaad: that is crucial. what about these metals guys? are they looking at some sort of improvement? in terms of the prices, someone was saying that base metals is where he's least bearish, but he's still bearish, i suppose. >> i would say the cost for the metals, the basic elements are supply and demand. if you look at supply, the supply is for steel to increase, and the demand. so far, we have not seen a recovery for demand from china yet. in that sense, metal prices may stay pressured. rishaad: thank you very much indeed. let's have a look at some of the other stories we are watching for you. the financial times, it is selling the economist. the magazine wasn't included in the sale to the nikkei group. it appears it is disposing of its holdings to continue its transformation into an education company. $620 valued at about million. pea

conference for oil and gas and here in london, that is going to be another crucial point and in terms of capex expecting is cut, curts and cuts. manus: are we in for a price war now? is that what we're looking at? >> iran is in the position from the beginning of 2016. it has estimated vared, 30 million barrels, whatever it is of oil sitting on ships. that oil could be released very quickly subject to quality checks and so forth. we don't know whether iran will dump everything quickly. they will want to export more. there is more coming from iraq and saudi arabia. we are going to be in a for a fight for market share. francine: guys, thanks so much. manus: here is what else is on our radar this tuesday morning. volatile trading again in china. the shanghai composite closed down 1.7% after sinking as much as 5% and even rebounding into positive territory. the index dropped more than 8% yesterday. that was amid concerns the government efforts to prop up the shares are unsustainable. francine: volkswagen has purr passed toyota. it puts the german company three years ahead of its target. they sold 5

and capex came in below $600 million. the street was looking north of $700 million. that's a good thing. tim made the point this had a huge run-up since google in the beginning of july, traded down 91 1/2 when i did the 4:00 show. i still think the stock goes north of 100. people say at 35 times forward earnings. it's expensive. i don't think it is. >> you mentioned the bob peck. let's bring him in. suntrust's bob peck has a buy rating on the stock, $125 price target. bob, what did you make of the quarter? >> great numbers across the board. on the user side mobile grew 23%. importantly u.s. also grew. the daily users maintained that 65% penetration rate, u.s. and mobile grew 29%. ad revenues up 55%, though. for a size base that's absolutely tremendous rp rpus increased. as guy said the margins expanded 200 bips. looking for 53 or so. incremental margins on the ebidta side were 62%. they're growing top line extremely fast. and doing it more profitably. i think the only reason the stock's down is the stock's up 25% over the last three months or so. a lot of expectation

that sounded almost all our capex. the level of $60 or less than $60 per barrel is a very important achievement that shows how much eni is resilient. francine: shell this morning saying it is preparing for a prolonged downturn. you seem to have done that six months ago. you were one of the first ones to cut costs at the expense of the dividend. do you now feel vindicated? mr. descalzi: i don't look at that. asust look at our result very impressive and i think that we made the right move in restructuring and cutting our dividends. now we can confirm without any problems. [indiscernible] i think we are on the right way to reach a good result by the end of the year. another point that i might stress, in a year where everybody cut cost and we cut cost, we reduce our cost. we were out to increase our production by 10%. that is a historical number for us. we are quite happy about what is happening. francine: despite the very difficult environment, you've managed to kind of look at the pitfalls. when do you expect this concer

if wti gets to $60 you see shale production come back and move back into shale -- and capex move back let's talk about some other topical moves in the market. we are asking questions on twitter as to whether a government and china should be trying to influence the direction of the chinese stock market, what are your thoughts? guest: i am not sure whether they should. whether they will or not might be more important. i think they will. anna: ucb's actions as designed to limit the falls on the stock market -- you see these actions as designed to limit the falls on the stock market? guest: they have been very proactive on the margin side of things lending, reserve requirements. the next leg they have to get into is on the fiscal side of things. all the monetary stimulus liquidity is going into the bank accounts and the stock market. you need to get into the real economy. anna: asking on twitter, what effect this will have on other stock markets. if we saw any other market losing 2.8 trillion dollars in value we would be asking where is the fallout next. does that happen in china? guest:

we'll hit the stride for corporate japan and we'll see how capex developments are going and how they're dealing with the weaker yen and how they're adjusting to abenomics and how corporate governance is doing as well after the toshiba. that's where we stand. back to you. >> thank you. let's change gears. let's talk about the bank of england. we're getting those minutes in about 20 minutes time. ahead of that interesting comments from one of the mpc members. he says the time for a rate hike is coming and it's quote, highly likely that rates will continue to rise over the next few years. worth noting though that he's not one of the well-known hawks that have in the past voting at the boe meeting for a hike in rates rates. but still worth pointing out the comments. >> huawei bucking the trend with an impressive first half performance higher. 69% despite the slow down in china. this as the tech firm targets the higher end of the market. it's on track to meet shipment growth this year. >> we're not done with the tech news just yet. lg electronic shares jumping 15% at one point. google could

. >> capex coming in lower than expected. and digging through the numbers here. upside surprises in the past several quarters. but they were better than expected. the percentage of users who access facebook daily is 65%. that's right in line with last quarter's numbers. that means 65% of people who access facebook do so on a daily basis. pretty impressive as it grows to 1.5 billion users, basically. >> those shares still in the red, and we will be speaking with the cfo in a few minute's time. casino giant wynn out with the results. kate rodgers with the numbers. >> kind of an ugly report here for the second quarter. the hotel and casino giant reporting eps of 74 cents. the street had been looking for 96 cents on revenues. $1.04 billion on the quarter. the street had been looking for $1.07 billion for the quarter. now in terms of the property revenues for the quarter, macau, what a lot of investors are looking for here. $617 million in macau for the second quarter. now, that is a 36% decrease from the year prior. in las vegas $424 million for the quarter, that's d

. >> cherry-pick date we had customer confidence number 190, durable goods down 3% year over year capexle is falling there is a lot of late cycle stuff looks good employment house good story within the story do you think the fed is going to the ray of rates slow down recovery in you see houses. >> that is the threat. >> i think the fed i think the fed is conscious of the financial markets what a rate hike will mean probable the reason wait to december to raise. >> fed commentary today going to get gdp reports tomorrow, and the expectations are what .4, 2.6%. >> the date is making their cognizant of the political risk jobs being good gdp a good number, just because it was bad number in prior quarter then i want to is going to be bad in the third quarter? so again that is my case, like you do really see a federal reserve deflation barked two three gdp number one bad jobs' report, by the way, next week away from this fed fading like a flower. >> you think the jobs' report is going to be bad. >> peak would sever -- something that you can measure not an opinion it is a fact. >> what is worki

. >> a lot of people have been expecting we will see capex pick up second paf of the year about it secondcessarily begin all that strong, after a terrible first quarter. >> new orders are looking a little better and none residential structures behalf of the of business capital investment looking somewhat better but it is still -- pretty bad shape. >> certainly fragile with this fragility we see the europe and china wouldn't that mean that the federal reserve will have to now think about perhaps the impact on u.s. and maybe push out this let's go off a little longer, do you think we are going to see higher interest rates this year. >> yes. >> you do you think fed will move. >> not necessarily. >> the market is going to move then? >> okay, so you don't necessarily think that janet yellen and company will raise rates in september. >> i refuse to discuss that issue. publicly. >> i knew you would i had to ask though dr. greenspan. >> you know what people are note focusing on we have a bond bond market double whether that decides to work its way off, we're in trouble people don't realize that.

and rig count moving down 1,000 rigs shut down that is the reason that really squashed any idea of capexnding second half update second half of the year right now expecting earnings to be down second quarter, by 4.3%, maybe they are on upside expecting a decline, a horrible first quarter second quarter earnings beginning in earnest tomorrow alcoa reports second quarter where are we in this recovery. >> by the way, robert just saying that september rate hikes off the table, he is saying during -- thinking about it until december interesting perspective. >> wasn't in the market. >> europe nonregulate a hallucinogen part what is heaping with greece jim rogers yesterday saying he believers u.s. is going to be heavily influenced by outcome in greece we could potentially see a recession in the next six months, in the united states, bold call, these are things that are out there right now, that is the level of uncertainty in the stock market, why we are sort of taking a breathe frer record highs. >> china we talked about how it is down tremendously, a what is it 20% past couple months huge drop

we'd rather see capex going up rather than down.intel has concerns about it's own intermediate term out look. that's why they made such a desperated by for altera. >> thank you for joining us this morning. great talking to you. >> thank you, becky. >> netflix stock this morning. that stock on a bit of a tear. however, it's worth noting these folks are spending a lot of money. i mean a lot of money. so strategically you have to be betting that this is all going to workout. why is everybody so enthusiastic? >> well i think what we're see as good that netflix has created a product that people like as much or more than pay tv so it's priced below that. they have a lot of room to grow revenue per subscriber, so grow subscribers domestically and internationally and they don't face a lot of pressure to grow their content as aggressively. what we saw in the quarter is evidence that what we were seeing in survey data is playing out. sub growth was better than expected. the margin with were better than expected and expense outlook was better