and robert shiller of daniel yergin's yale university.rom the world economic forum. what is the temperature tonight? francine: it is not as cold as it was this morning at 6:00 a.m. tom: it is cold. it is lovely. stay with us. tomorrow, from diagnosed. -- from davos. good morning. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. ♪ >> welcome to bloomberg go, live from davos. stephanie: excited to be here. our own david will meet us here shortly. he is not skiing, but his meeting. i would like to point out a very important later. today -- the story today is all about the markets. you somee bringing insight on some of the big

daniel yergin is here. he is the ihs vice-chairman of research. let's get to julie hyman standing behind a market desk. this plunge kicks off the friday morning. julie: we have some breaking economic news. the university of michigan january numbers come in ahead of estimates. up 92.9. we see an increase from december. so, just one data point. earlier, we got retail sales coming in line with estimates for the client. the most eye-popping data point is empire manufacturing in the new york area in january down 19.37%. a -19.37. the negative sentiment has recurrent -- returned. we are back down once again. as you look at the brett of the decline, it is broad. all industry groups, all subgroups are trading lower. energy is leading the plunge. along with technology, the nasdaq is showing the upside when we are moving up. a big cap on technology after a strong 2015. financials were also lower despite estimated numbers from citigroup and wells fargo. -- financials are also lower. energy is doing the worst. oil prices are selling off. belowe crude oil trad

that was daniel yergin talking about uncertainty in the oil market.elloff led by the drop in crude prices. following as much as 6.5% to its lowest level since november of 2003. that is a fresh 12 year low. if you look at where we have gone this month crude prices have no plunged 20% in january. the biggest january decline since 1991. >> i was just looking at that. i cannot believe it was down that much this year. scarlet: are we seeing a throwback of what happened in late august? joining me now is the executive editor of bloomberg markets p1 . >> it is still stuck around the 30 level. in august is shot up about 50 really quickly. i think we're not seeing a volatility event this time around. the selloff has been given that it has also been fairly orderly. joe: what are the theories as for why? thatr a start, some people -- say that investors have been better positioned going into the selloff rate we also have the issue of hedges. those hedges have been doing well. -- example u.s. had dreams treasuries are performing as expected during this selloff that

. >> daniel yergin is vice chairman of ihs, an international information company, and the pulitzer prize winning author of the prize, a history ofil. >> saudi arabia's basic strategy is to maintain its market share in a global oil market, and is actually a starting point for them. else? >> yes. >> so began a huge game of chicken, with saudi arabia and its opec partners pumping full blast, russia too. >> and the united states. you heard of bracken pumping water into shale formations to free hard to get at oil and gas. oil fracking, meant that the united states suddenly was producing a lot more oil. so much that for the first time in 40 years we are exporting it. >> u.s. oil production went from 5 million barrels a day in 2008 to 9.7 million bears a day in april of 2015, in other words, u.s. oil production almost doubled in a matter of just a few years. midland and odessa texas -- same story in north dakota. >> based on $100 a barrel oil, entrepreneurs borrowed billion dollars of dollars to buy into the bonanza. >> workers knocked to the oil patch. >> i heard about all of this big money, s

onhave to get daniel yergin to talk this up as well as a number of our hydrocarbon experts. buzz in london on aramco? francine: everyone is excited because when we heard about it yesterday, you think how much is it valued? ranging via.a wide it is interesting that aramco felt they needed to put a statement out saying they are confirming they are considering an ipo. tom: on the animal spirits of america at nominal gdp, ring up that puppy right now. it is a great chart. there is where we were. there is where we are now, back 20 some years. the green is at 6%. life is great. animal spirit. i'm sorry, michael, it has dampened. oxygen that basic the fed does not look at. they look at a real analysis versus a nominal analysis. discuss. michael: i think they look at this, but they are more focused on these measures of label markets slackened -- of labor markets slackened. we are on the core pce deflator at 1.3. headline is close to zero. if core levels are off, the headline will go back to where core is. do not expect the fed to hit its inflation target over the next generation. to

daniel yergin is here. he is the ihs vice-chairman of research.ind a market desk.