francine: with us is how the javier blas. when he sat down, we were talking about mining and oil. we had that breaking news in the last 22 minutes, the freezing oil output. that disappointed the markets. did, because traders were thinking a production cut was way too much for a first meeting. this is the first time we know publicly that the ministers of saudi arabia and russia were meeting. until now, the relationship has been quite acrimonious. they were fighting for market share. an open freeze is a starting point more to come, and the market is disappointed t, but still, you look for the next few months, probably opec and russia have different data for a bottom on the oil market. francine: john, how significant is this? when you look at the price of oil, commentators were saying, anything.on't greet they decided to freeze production. >> i think the market will take this very well, and it will probably left commodities and equities across the board. maybe that sentiment is connected to the idea that global demand is rising again, a nd we also expect the low oil price to cut suppl

javier blas, rationalize this market for me. tradinghe prices higher. hat is going on. javier: the meeting that is happening as we speak in tehran, the iranian oil minister also meeting with iraq and venezuela. you look at the markets, gives you a sense of where people are putting their bet, yesterday we had traders buying protection for march. on the downside, they were buying puts. however, look at what they were demanding for june. prices going up to $35, even $50. guy: look at the scheme on some of the put options, the put calls, and they are huge. e volatility will continue. we are still building inventory. will be seeing huge screens and a lot of reaction to headlines. every time we see now a minister traveling somewhere, it is potentially a secret meeting going on, something that will move the market. are featuringe natural gas today, which is south, to be kind. does natural gas need oil to be lower? are they linked in any way? javier: the link is the shale revolution, which started in the natural gas market in the united states, and from there it

we're joined by bloomberg's javier blas in london. nezuela may be meeting with iran right now as we speak or do talked about how important iran was to this deal. javier: it is very important. it is ongoing. it is almost 3:00, 3:30 in tehran. qatar, iran, iraq, and venezuela are holding a second day of meeting after the meetings we had yesterday involving russia and saudi arabia. what they will try to do is convince iran and iraq that they need to -- probably iran will get some maneuver to continue increasing, keep output from coming back, but this is really what will make the deal that was announced yesterday work or not really work, and then we will see a fall off and pricing in the $20 range for rent and wti. david: javier, what is in it for iran? just as i get in, you are saying, "sorry, do not come in anymore." javier: iran will be offered a special package where they can ramp up production to a certain point. the consolation tehran will have to do is do it to a certain limit and benefit from a price increase, or we continue where

javier blas is working on it with bloomberg news. to me, it's a lot of what if. maybe the story will change up in the hour. francine: yeah. we definitely have a freeze. that is why the saudis are talking about the tar minister. now let's get straight to the bloomberg first word news with vonnie. vonnie: in harris, david cameron -- in paris, david cameron failed to win over francois hollande. france heads a group of european nations, unhappy with his proposals for banks in london. the u.k. has no veto power over euro area legislation. an air raid on a hospital in syria has killed eight people. syrian rebels say russia carried out the attack. the hospital was run by doctors without borders. a warning to the president of south korea, saying that north korea will gain the capability missiles unless the world forces kim jong-il and tu- new satellite photos show china has expanded its activity in the south china sea. a helicopter base under construction, happening as president obama meets with station leaders in southern california. taiwan., vietnam, and are among the

javier blas is coming to us and now we turn to china. we have had a lot of data coming in to us. nonperforming loans have risen to the highest in a decade. enda curran joins us now. talk to us about the credit issue. enda: good morning. it is obviously another negative for china's economy. bad,the loads are going they won't want to lend and that is not the situation the government wants to have. tose banks who are prone steel makers and the call miners in particular, they are getting hurt. the government is trying to get ahead of that curve. they are considering ways to ease the provisions for banks. at the same time, the government is taking steps to get the other economy going here. they're looking for ways to introduce infrastructure spending. moving to feeta here in china since we have come back from the lunar new year. we had the chief yesterday who came out and said that china has a take policy tool kit at its hands and they can do more and they are trying to get the message across. me, but juste hearing this, they're reducing the reserves and it seems like they are riding

that javier a chart blas brought out. on the bloomberg and what it does.s is current oil versus a year out oil and -- oil. in 2000 8, 2009. we are heading back in that direction. where do you think oil is going. again, what do you need to see to convince you that maybe some of these commodity stocks are worth looking into? charles: is a good look at the 30 year charts and recognize that traders between $10 and $30 for a long period of time. oil has fallen back on its gain since 1997. it indicates to me that $20 is where it will go to. until we see something in that range, i don't think people should be thinking about investing in oil again. guy: bp pays its dividend today. for income funds, they are still a big story. charles: they should be careful. business theythe will be making money from. it will put them in a very difficult position. kissing dividends here for companies with a poor cash flow -- guy: thank you for bringing us your thoughts. charles newsome. up next, the sweetest central-bank -- the swedish central-bank split on whether bank goes next.