fatih birol from the iea warning of more pain to come in the energy market.: welcome back to the open. we are 30 minutes into your european trading day and here are the top stories. energy crisis, the iea's fatih birol warns of even more pain to come. >> the world has never witnessed such a major energy crisis. we may not have seen the worst of it yet. tom: the euro battered, the currency edges ever closer to parity as economic concerns turbocharge the dollar. locked down fears, covered cases in shanghai had to anxiety over china's recovery. that's check in on the markets. china is a factor and has been over the last 48 hours on these u.s. and european markets. down .7% across the benchmark. stateside saw the nasdaq ending lower by 2%, the s&p closing lower by 1%. the dax waived by what is happening in the auto sector. the ftse 100 down .5%. the key data point in next 24 to 48 hours will be the cpi print out of the u.s. tomorrow. the inflation print and what that tells us, the surveys are for 8.8% and how that directs the federal reserve response as markets i

jonathan: fatih birol there, the iea executive director.morning, down .6% on the nasdaq -- s&p 500, we were down nine basis points yesterday on the session. we see that move lower going into cpi tomorrow, want to reflect on the words of the economy minister to echo what they said. should be getting ready for a total russian gas supply shut down and this is the most likely event, the fear about some of these moves with the euro-dollar within striking distance. tom: i went through the coal complex today and you are saying it not only in the move to parity, 1.012 right now, but it is mirrored in what i'm going to call usable commodities, copper, rotterdam coal, there it is. jonathan: i wonder how much more you're going to see across economies in europe for just for -- for different reasons. what about energy? tom: we will see about energy and maybe that is the next step. brent crude is down 124 to 104. the headlines from spain, harkening back to our conversation with another the other day, spain could impose tax on banks. jonathan: i have not

so it was a necessary alarm bell ringing from the iea that we are in the middle of the first global energyeah, and how much of the responsibility for this crisis that you identify, how much lies with the russia—ukraine war? because i'm mindful that prices were spiking — gas, oil prices were spiking even before that invasion. yeah, we were already seeing some high gas prices. and this was also mainly due to the russia's strategic behaviour. even before the invasion, russia reduced its gas exports to europe significantly. and already, a few months ago, before the invasion, i said clearly that the reduction of russian gas to europe might be an indication, early indication that the russia—ukraine crisis may end up here. but now, the main increase with the oil and gas prices were mainly as a result of russia's invasion of ukraine. so we have to be realistic. yeah, so when commission chief von der leyen and many other european politicians directly accuse moscow of weaponising energy, do you think they are correct? i think they make a very good point there, because if we remember, as of 2a februa

coming up, the iea chief says the global energy crisis may not have peaked.e will discuss with our guest. this is bloomberg. ♪ dani: it is "bloomberg daybreak: europe." bill ackman has told investors in the largest ever blank check company that he is returning their $4 billion after failing to find a merger deal. the billionaire investor says the efforts to find a target were thwarted in part by the unexpected recovery of capital markets during the pandemic. we spoke with someone yesterday that said there was a lot of froth in the market, it has declined, perhaps the fact that ackman is returning funds as to the idea that the bubble has been pricked. manus: absolutely, the fun fact you latched onto the we were chatting about, the number of companies that have gone public via spac's is down 65% so far this year. we will keep an eye on euro-dollar, trading at 1.00 14 this moment. millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's

with me is annabel denham, who's director of communications at the institute of economic affairs — or ieaet think tank. will come back to both. a few more titles have will come back to both. a few more titles have come will come back to both. a few more titles have come in, will come back to both. a few more titles have come in, let's will come back to both. a few more titles have come in, let's kick will come back to both. a few more titles have come in, let's kick off looking at what the front pages show at the moment. the guardian, which describes the soaring profits of energy companies as an insult to the british public — as millions of people struggle to pay higher energy bills. the daily mirror also goes with the profits of energy companies which amount to almost £11 billion. the daily express leads with a promise from rishi sunak that he'll double the number of deported foreign criminals if he becomes the next prime minister. the metro goes with details of a court case involving two met police officers and one former officer who allegedly shared messages with sarah everard's killer

that is exactly what the head of the iea said yesterday at a meeting. forward after a few years pressure will be reduced to a second rate player. and that means there is going to be huge possibilities for developing oil, new crew development, new fields, but also new refining capacity. russia was supplying $2.5 million -- that will all go away. they cannot just send that to asia. some they can, but there will be a big change. but in the meantime, who knows if there is going to be a recession, probably, and there are other problems. short-term it is very volatile, but longer-term there will be growth in the industry. there has to be. host: let's talk more about the impact of the ukraine war. i believe you need specific russian products to run some specific types of refineries. as you alluded to, you obviously need specific types of crude to produce some things. diesel, for example. we mentioned venezuela, the sanctions on iran. given that we have seen some bottlenecks around opec plus production, do you think that russian sanctions have really contribute

it started at school where i had a friend called iea. i on day she came to me half and said she was very scared at because her residence permit had not been extended own of yet because denmark had declared damascus safe for a turn or so. oh, okay, got her son at w. so we went to the media, they had their mask, that was our only child that we feel at. we go immediately. i know that you can't tell someone who's integrated here that she has to go back to damascus and cakes in a form to make it the city's not safe. and i for day or damascus exit. and i as case the public effort finally met with success last year, she got permission to stay. since that time, as many as 5 syrians contact raheem a per day, most of the women young man are not expelled because they faced conscription in boucher assad's armed forces. in often a i kept by a fairly so sometimes if i can't sleep at night because i see such terrible cases. and i take them to hans who didn't like them on ganga fig in male in focusing as political. and when i posted the half case on fac

is finished, we're not anticipating another major release again because of the requirements by the ieays of cover. so when that release winds down it will be a very important question about where are the additional supplies? because that release winds down right when we are talking about the sanctions on russia kicking in. helima, do you think governments in europe and the united states can keep their electorate, their consumers, onside with sanctions if these prices are pretty much anything are just going to continue to soar? the real question is — what comes next in terms of prices? i mean, gasoline prices have come down in the united states. the question is, when these sanctions kick in, do we once again see prices reach $5 a gallon? what does that mean for approval ratings for this administration? but i think the real pain point�*s going to come in europe — it's going to come over this issue of natural gas. if we have industrial curtailment and skyhigh electricity bills for european consumers are these consumers going to turn against the war? will they turn against their government

with me is annabel denham, who's director of communications at the institute of economic affairs, or ieaa free market think tank. welcome to you both, we already have a few titles in, let's look at them. the independent, which says soaring profits at energy companies are sparking outrage after they pass billions of pounds of profits onto shareholders. higher energy bills are also on the front of the financial times, as british gas owner centrica urges the government to support households as their profits also soar. the daily express leads with what they call an "exclusive" message from rishi sunak, who is vowing to double the number of foreign criminals who are deported if he becomes prime minister. he's been speaking with liz truss at a hustings at leeds in the last few hours. the guardian has a photo of a giant bull on its frontpage from the opening ceremony of the commonwealth games in birmingham. the metro goes with a court case involving met police who worked with sarah everard's killer, wayne cousins. the energy story is dominating a lot of the broadsheets. what do you make of the

with me is annabel denham, who's director of communications at the institute of economic affairs, or iea

coming up, a warning from the iea, the worst from the global energy crisis may be yet to come. bloomberg. guy: european markets mixed today. this is a very specific story in europe we will spend a moment talking about. the reason for that is the government is going to have a windfall tax on the spanish banking specter -- sector. this is a heavyweight sector. it is down sharply today. london is underperforming as well little bit. you've got the oil stocks trading lower. that's in reaction to what we see on the oil price. we've got some other companies that are trading down a little bit. gsk is tracking lower. there are some entered -- individual stock stories and worth focusing on. it's a patchwork in europe. investor sentiment in germany is plummeting. that is where we are oddly. i won a focus on what's happening elsewhere. it has a meaningful impact. this is euro-dollar. we are now trading at 1.0069. we are down to parity. let's call that parity. we have bounced a little off that. where we go from here is hard to determine. it is down from what is happening in the euro -- ener

rishaad: we are looking at the iea's sake about perhaps the worst is yet to calm -- perhaps the worstet to come in is not uplifting. but when you do -- >> when you look at the situation in the natural gas market, you mentioned we got this key pipeline in europe that just for 10 days for maintenance, if it doesn't turn back on, it will be very challenging to rebuild natural gas inventories for winter. enter is the peak demand season for natural gas, its use for heating for powerplant fuel and if europe doesn't have enough natural gas in europe when demand peaks, they run the risk of actually having to ration supplies. that is a much worse situation than we are right now, so the role is saying, rightfully so, that winter is in focus and it could be a lot worse this winter in the market needs to prepare, government needs to prepare and suppliers need to be with ready for that possibility. david: is an almost not a realistic expectation that between now and the time we have to stockpile up for winter that those stockpiles and inventories will stay? just give us a general state of inventor

speaking today at forum in australia, iea director says the global supply squeeze led to the prices mayy get worse. let's talk about this with samantha dart at goldman sachs samantha, one of your competitors said july 22nd, which is the day nord stream is set to come back on, may now be the most important day of the year for europe and maybe the world. would you agree or is that hyperbole? >> i think july 22nd, the day it is supposed to come back, will send a strong price signal to the market it is not the only day that matters. what i mean is this. imagine you are approaching the end of maintenance season and one or two days before that, we hear a statement from gazprom that our maintenance will have to be extended by one day or two days so, any statement between now and then or after maintenance is over can create panic and chaos in the market. by the same token, after maintenance is over, volumes come back to partial restart or full flow of the nord stream i pipeline, nothing guarantees it stays there. july 22nd is an important market mover, absolutely. is it the only date that matte

i beat iea have heard republicas own words. i am watching their own actions.ustice thomas said explicitly reconsider confirm the right to contraception. the senior senator from tennessee the griswold decision was unfounded. that alone not just talking they're already taking action. read the legislation in idaho missouri, arkansas, michigan, which would in fact outlaw plana b and iuds. talk to women who have already gone to the pharmacy only to be denied their birth control or plan b. yes, this is already happening to people. and just last week, 195 house republicans voted against the right to contraception act. and now, today they blocked it in the senate as well. the evidence of where republicans actually stand on birth control is overwhelming. they aren't standing s for wome, they are not standing for families they are not standing for a right nearly all american support. they are simply standing in ther way. i don't think the junior senator from massachusetts, the junior senator from illinois, and the junior senator from hawaii for their work with me on the

what most people don't understand about the energy companies is even iea and its best case estimatessil fuel demand only drops by 18% over the next 20 or 30 years. so fossil fuel demand is not going away it's used in all kinds of things other than cars. the idea this green washing has led people to believe these traditional energy production companies are going to be basically going out of business is just a false scenario shell is very well ininvestininvestigat invested >> all right, and let's talk about the final name on our "three stock lunch," david that's doordash this is a stock that maybe hit its heyday in the pandemic when everybody was getting takeout. is there a future? is this a buy? >> we don't think there's any future amazon went with a big competitor at a price that's not very attractive otherwise you would see dash going up on a day a competitor got a big hit for it look, this is a food delivery service. tell me what the competitive advantage is margins are negative own like 40% of the entire delivery market. the valuation is absurd. it was even more absurd in 2020 whe

today's decline is at odds with comments from key agencies, the iea saying the world has never witnessedjor energy crisis in terms of both depth and complexity meantime, opec today released its first look at 2023 and they see a tight market so a lot of different moves here wti down more than 8% at 9950. brent crude also falling below 100 bucks currently at $99 meantime, gasoline futures down another 6%, so that is one bright spot for consumers, kelly, with gas prices expected to continue to decline >> absolutely, pippa, thank you very much, pippa stevens. >>> now let's look at the rise in dividends that we've seen and some of the etfs that track them despite how rocky the markets have been, dividend payouts hit another record in the second quarter. according to s&p dow jones, companies in the s&p 500 paid out a record $140 billion in dividends last quarter they estimate that dividend payments will jump more than 10% in 2022 year on year that's the first double-digit increase since 2014 and there are a number of etfs, like the vig from vanguard, the dvy from i shares and the vym they're a

course remain a big question mark due to the eu sanctions over the war in ukraine and ahead of the iea says the next few months will be critical to see where the eu stands in terms of winter gas supplies. and let's discuss it more. let's get over to pedram javaheri at cnn weather center for the latest temperatures in the u.s. tell us what you are seeing. >> this is a remarkable heatwave even for standards across the south central united states. you look at some of the high temperatures in the past 24 hours, 110 or about 45 degrees in a few spots. these excessive temperatures are exceeding and besting records that in some cases have been standing over 100 years and other like wichita falls, about two decades. but you notice widespread coverage of the record heat impacting upwards of 75 million americans spanning over dozens of states. and the south central region, these areas of texas, oklahoma and the midwest really underneath the bulk of it, but now introducing some heat advisories across portions of the northeast which include boston and new york city where temps could feel as hot as

me are annabel denham, who's director of communications at the institute of economics affairs, the ieae free market think tank. also with me is anand menon, the director of uk in a changing europe, which produces independent social science research. thank you for coming back. we had a race of the first look at the papers. we've got so much time now so we so we have much more time. lets start with the ft — which says borisjohnson was "defiant to the end" as he announced his resignation. "leave means leave" is the metro's headline — a play on the famous tory brexit slogan. according to the mirror — that borisjohnson and his wife are planning to hold one last party at chequers. the daily mail has a picture of borisjohnson being consoled by his wife carrie. the paper highlights anger from some mps that mrjohnson has been forced out. next to the times that says the prime minister has thrown in towel — starting a bitter sucession contest. the telegraph reports on the calls from senior tories for a caretaker leader to avoid months of political uncertainty and finally the i says 11 tories are

worldwide set to spend a record their 10 trillion this year on energy consumption that's according to the ieaof gdp. looking forward, we're hearing more about an all of the above approach to energy policy as countries look to shore up their supplies transforming the system will take decades and cost 150 trillion according to barclays, and in the meantime, clean energy spending on track for a record year, as well in the u.s. some of the largest players are clearway energy, aes and nextera, and that includes honeywell and johnson controls because the bills are high for consumers and businesses alike. >> are we talking thermostats and that kind of thing or something much grander >> exactly building management systems that help you be aware of your heating and cooling. think about an office building that has the lights on at 2:00 a.m. you don't need that. these companies can help the companies understand their energy usage to opportunity miesz. >> that is a great angle in this market pippa, thank you very much our pippa stephens if you thought energy was expensive, try buying a home we'll go to a

the iea says gas use is expected to slip as reduced economic activity in asia and a sharp drop in demandboyd markets in north america. major regions in eastern australia are facing the prospect of reduced wheat consumption. growers are assessing the damage. the states fourth major flooding incident in 18 months. terminal users can read more. even as we see the energy market recovery, covid looms large in shanghai. daily cases surging to 24 cases. on the upside, the city says new cases were found within quarantine as the city launches mass testing across nine of 16 districts after detecting cases over the past two days. there are concerns the hub may find itself locked down. we will be monitoring developments. pressure on authorities to tame the outbreak given it is situated in an economically critical area. shery: we will be watching with happening in china. the start and stop economy not helping the outlook. we are getting an a half hour the hong kong pmi numbers, for june hong kong has been trying to mount the recovery after the omicron wave pushed the economy into contraction. we have

meanwhile, we have the iea executive director saying nations around the world might have not seen theorst. producers are behind on output targets for 2022. that is why we believe biden is scheduled to visit saudi arabia as he tries to tame energy prices. meanwhile, gasoline prices have dropped. that is the benefit. the demands may be lower. forecast cut by some 30% as the u.s. sees net gas supplies improving. haidi: su keenan. let's get for a look of how we are previewing markets, a lot of risk aversion right now. >> picking up on the expectation that china may not be the answer to oil markets and they could not see or keep up that level of demand, and that is being reflected in what we are seeing, the micro frequency indicator from our markets life team, passenger volumes and shanghai, the csi 300 really tracking those moves you see. does not seem what we are seeing in fundamentals. it's a further headwind for the metal space, we have seen declines across iron ore, steel, copper. all of this down to the nature of infrastructure spending, china is focused on areas of water conservatio

spending on energy consumption set to top $10 trillion for the first time on a record according to the ieaf gdp. russia's war is the latest catalyst and prices were rising ahead of the invasion thanks to years of underinvestment not enough was spent to meet existing fossil fuel demand or to move the world to renewables. ultimately securing energy supplies is a multi-decade challenge with barclays saying $150 trillion would be required. meantime, clean energy spending set to hit a record this year. prices remain high and volatile the better the case for renewables looking forward, some say there needs to be an all of the poof approach companies are spending around renewables including clearway energy and aes leslie, back to you. >> pippa, thank you so much. continuing to watch social stocks, the big headline of the morning and snap tumbling and twitter moving lower as results from both surprised the street you can see snap down more than 36%. almost 37% tech check will dig into the ag-supported impact at 11:00 a.m. eastern we'll be right back. don't go anywhere. the pursuit is on. the pursu

iea.“i he goes to college a few days a week and his accommodation well?he is trying to find employment so he can move into a flat. in afghanistan he was a youth worker and loved to cook. now his whole life takes place inside these four walls. i cook. now his whole life takes place inside these four walls.— inside these four walls. i wake up at 6:30am _ inside these four walls. i wake up at 6:30am i _ inside these four walls. i wake up at 6:30am. i am _ inside these four walls. i wake up at 6:30am. i am desperate - inside these four walls. i wake up at 6:30am. i am desperate for i at 6:30am. i am desperate for college, and i go to college. we still live in a hotel, so it's not like a feeling of home. at the moment i still feel safe and feel like we will be safe in the future here. ~ i, i, , like we will be safe in the future here.~ . .,, like we will be safe in the future here.~ . , , like we will be safe in the future here. ~ i, , , i, here. what has struck me is that life here in _ here. what has struck me is that life here in this _ here. what has struc

not these letters are for real, whether it means that europe's time is now i see today already the ieastart reducing consumption fast >> absolutely, you're right. i think the focus is on europe, both in terms of the gas story, but also keeping in mind other risk right now is italy and what impact it will have and the ecb is trying to come up, and it will go into effect when rates are going up and perhaps one of the policies being affected differently in different parts of europe. but because of political risk, it's hard to see them acting on that front so, again, europe is a concern, and also the geopolitical front, china is a concern we have heard stories about sort of strikes from some of the mortgage owners refusing to pay. so far things are not systemic right now, but everybody is watching coming back to the u.s., i think we have had high inflation and the fed will now go 75, it seems likely but the way i would phrase what is being priced is really recession priced, so you saw commodity prices dropping, and so forth, but the risk of a stagflation is not so the presumption is that t

gave, i would woud e on jul julhe mosthet mtconicco ,ee "giveee "gi me l l or gie me me death deathea iea foundation and for $10 per car, you can park your car, 10 bucks, cram as many people in the car as you can, and you get and you will be able to watch fireworks at red hill, in brookneil, virginia. the grounds are beautiful. the folks are even more beautiful, and in hard and spirit and you can go watch fireworks. there's music, there's food, there's great company, so brook neil, virginia, red hill. you can see fireworks and celebrate with patrick henry. i think that does it for us, liz peek and liz carter. thank you, ladies, so, so much. it's a pleasure to spend the morning with you. "varney" & company starts right now. ashley webster, take it away. ashley: thank you, good morning, dagen. i'm loading up the minivan and heading to virginia right after the show. good morning, everyone. dagen: you should. ashley: i'm ashley webster in of course today for stuary varney. we are entering the 4th of july holiday weekend and the airline chaos unfortunately has no end in sight. already 2,400 tr

weapons is only 5 percent of the civilian been stalking not sure that constitution, and are not what ieald really want to kw to be able to evaluate the question is what i hope the supreme court would ask invited the ruin was directed to consider the burdens on something and says how often are these weapons used in self-defense in comparison to k the use and good massacres and mass shootings that we are today earliere example of when was bt when marilyn's prohibition on assault weapons which also night of the children of the lifers we to a single example of one being used for self-defense and if that is the case, then if we take the industry and justice thomas for that matter, at their work with these are modernist sporting rifles, that i think there are two times removed it from the historical interest in self-defense. >> living as a supreme court is not asking the question of whether or not or have often these assault weapons, however we describe them are used in self-defense comes out the question dressing on their asking whether this dangerous and unusual you have 20 million of these