oil companies would come, open a well come and get as much oil as they possibly could.nd have very little concern about environmental issues. waste oil would run down the street into long beach. this is why would the people who lived there decided she would try to get people's losses taken care of by the oil companies and she fought for a number of years to get the oil companies to pay reparations to land that was lost and eventually, she prevailed. she got the oil companies to pony up $0.5 million to deal with losses. the signal hill is important for .he next 25 years in 1936, oil was discovered in the long beach harbor. this is the famous wilmington field which will produce even more billions of barrels of oil and so oil companies will come to the area they would authenticity for example that he 5% royalties and is basically about the city council to remake the city from a small seaside community that he thousand people now long beach could pave -- pave the streets -- water lines, police department, fire department, and really, developed it into a modern city. revenue

anthony: if you had to pick a big oil, which is the best of the big oil? >> i'd probably pick chevron. anthony: chevron. >> but big oil, i don't know what they're going to do, i don't know what their future is. they now have turned their end decline on production, they have to acquire reserves, they probably aren't going to find it, and they missed the shale play. chevron is big in west texas. anthony: do you think any of the oil companies would cut their dividend near-term? >> it will be horrible if they do. i'd rather cut capex than i would -- but exxon is consistently buying their own stock. i would stop that and increase dividends. maria: what about is this a dividend play then, mark? do you agree with that? >> you know, honestly, when it comes to which individual energy stocks i would leave that to boone. i think that cutting capex is a good idea and returning more value to shareholders via, you know, buybacks and dividends is better, because why keep investing capex if the price is so low? anthony: boone, mark, stick around, more after this.. announc

they say, fight on oil prices and not only on oil pricesw on iran is ongoing. the region is in trouble. francine: think you so much. he stays with us. we will talk about some of the other gcc countries and i want to get his thoughts on what the iea said a couple minutes ago. oil oversupply will be almost gone by the second half, because, of course, shale producers will probably not come back online as much as we thought they would. now back to some of our top stories. singapore's move towards easing as boj warned of the downside risks of negative rates. >> a key challenges is that the negative interest-rate -- therwise affects on profitability of the banking sector. the reason is that private banks will end up holding assets, including current accounts at the bank of japan, that will have a negative -- francine: t >> it is nevertheless important to recall that there are clear limits to the use of negative to positive facility rates as a policy estimate. the assistance by just passing direct cost at the margin can mitigate these concerns, but cannot dispel it al

even the story of falling oil riggs couldn't help oil prices. it was all about that april 17 oil freeze meeting perhaps not resulting in a freeze. copper had its longest losing streak in two years. sugar also down as well. brazil may cut gasoline prices. its oil control companies, and that means perhaps less ethanol demand. you have industrials, energy, ags all taking hits. those are today's market minutes. let's take a deep dive into the bloomberg. can you find the charts using the function at the bottom of the screen. >> if you are long, you are crying right now. take a look at this chart. it is a measure of the speculative longs in the future market when it comes to the vehicles -- vix. this is a max out chart. we are along record highs. it is down 45% since ins february 11 high, not even highest of the year. but we are down 45% since then. you had a lot of hedge fund guys in here, and we talked about this last week, that are getting really hurt. on top of that, you have a lot of investors pouring money into e.t.n.'s, exchange traded notes. $

decline in oil, but look at how far oil prices have climbed from the low. that we still some talk are maybe seeing a stalling from of, but there are a number analysts coming in today and young within oil stocks, actually want to come in and do some buying selectively on the pullback we're seeing in prices. oil, the other major market event to watch us what happened over the weekend in brazil. julie: and here, perhaps the reaction is a little surprising. seeing brazilian stocks rally and that is not the case today. here is the u.s. dollar going up . one thing going on is the brazilian central bank is stepping up its efforts to weaken the currency. there is the view that even s -- even if it does get impeached, the next person who takes over still has significant challenge in improving the brazilian economy. if you look at the stock market, lower today but it has rallied 41% since its low in late january and that also puts the move in context. mark: 1.4% lower at the start. of the pile bottom that earlier, the gas index was 4% lower. is some comeback for the

that is oil.is shows you, very 3-ds, the xyz or visualization of where option markets are positioned in oil. you have the strike price, -- whatty, and you have you want to look at is the smile, if you will, and how the curve actually plays out. as you make your way towards the future, the volatility tends to come down. that is the natural course of mathematics. this is very good to play around with as we approach the london open and new york. do run this function, you can play around with it depending on what floats your boat. the outlook for the price, can we just get the index up? here we go. the median forecast across 16 analysts of where they think the oil price will be at the end of the share. we are currently at $39.50. plateaued at this point. days, since the meeting ended with no agreement. says negative belowent might pull brent $40. they do see an improving supply-side picture. minister --energy 42 for west texas. .et me end on correlation that is something we have been talking about all

goes andsia goes, oil where oil goes, russia goes. rallied a little bit but looks like it is beginning to stall. it is all premised on what the saudi's will do and now they are beginning to get cold feet on that as well. andrey: russia is definitely suffering from the lower oil prices. negativeear we had a gdp growth of 3.8%, this year we expect between negative one percent to negative one part -- -1.5%. but having said this, of course russia is a big oil producer. interested inch the stabilization of oil prices. theexperts are seeing average oil price will be $48. the presumption is that it will be $30. we are looking forward to the meeting in april. be very cautiously optimistic on this. should be interested in the stabilization of oil prices. we see what is happening with sovereign oil funds in the gulf. they are all suffering. investmentess opportunities creating problems for the global economy. recently i heard how the prime minister of the republic of georgia who is not producing oil saying they are suffering because there are n

talking about a world post oil.eader verse of fine the sifyingstreams -- rediver income streams. saudi is still not exactly like the rest of the world. this that we are seeing from this interview and what impact is that having on oil? what impact is that having on the futures market? looks like we are set for a little bit of a bounce at the start of the european trading day. manus: the whole point is that you have a short positions on oil. a couple of weeks ago we were talking about how this was the -- in history. -- the shortsis are building back up again. what does that mean for the dollar? we have some cracking stories on the momentum and size and scale of the previous dollar rallies. we will have a little bit more in terms of some of the saudi views. anna: let's update you on what is happening elsewhere. down 1% on brent. gold prices retreating a little bit down .3% despite the story that guy brought us earlier regarding the renewed appetite on gold. manus: they ratcheted higher. you can see these long positions

the oil would be a little more bearish this morning if it wasn't for a major strike by oil workers in kuwait. we'll get to that in just a second. but here in doha it is hot already but it was a lot hotter yesterday in a meeting that one of the participates described as hot and very tense to stretch on more than 12 hours. 11 of the 12 opec nations along with russia failed to reach any deal to cap oil output or put a freeze on the limited output. and that is sending oil futures down this morning. basically what happened is this, in the morning everyone woke up with optimism. it was a draft deal going around that the ecuadoran patrol minister told us before the meeting began, gave him reason to be optimistic. people thought the meeting would be quick and easy. that was a description given to us earlier in the day. the meeting was certainly anything but. after the meeting ended, just moments after it ended, cnbc landed the first interview with the energy minister for nigeria and he told us that what happened is that the draft they had seen before the meeting was not the draft they had see

one thing in oil's favor is an oil straight in kuwait's cutting about 60% of the nation's production. this putsvery least, support under oil prices, if not pushes them up into the positive on the lack of that production freeze. interestingly, it has had an outside effect on energy stocks. here are the groups on the move. gettingel has been greener and greener as of the day has gone on. now we're seeing subgroups that are lower. all the interest -- industry groups in the us of you have rendered a higher and energy is up by about 1.4%. there are some analysts, including phones that goldman sachs, who have said they anticipated people would come in ,nd buy the dead, so-called today, particularly with energy stocks -- that they would buy the dip. fmc technologies and apache are some of those in a fitting from this. betty: interesting. is weakening amid this impeachment vote. julie: right, different than what we have seen as we have gotten closer to a potential impeachment would right now, the dollar is higher by more than 1% against the real. the brazilian central bank came in with attemp

but the oil is the main thing. >> okay. got to cut off the oil and we have got to keep the oil. not give it right back to them. we have got to keep the oil. >> putin, you are on record saying you believe you can convince him to be a friend of america. obviously is he expanding. >> no, i'm not saying that i am saying that i think i would possibly have a good relationship. i don't know. he said some really nice things. he called me a genius. he said trump's a genius. okay. that's nice. that's not going to persuade me one way or the other. people on the debate stage get him to disavow that why would i do that? he has been very nice to me. let me just tell you. i have no idea, bill. maybe we will, maybe we won't. if we can make a great deal for our country and get along with russia, that would be a tremendous thing. >> so you try it. >> i would certainly try. >> do you have a stick in case putin is unreasonable which he is known to be? do you have a stick? >> we always have a stick. we have the economy. we have certain things that are advantages. >> all right. all we have to do is c

this oil has the same properties as palm oil. it was developed by the university of bath in britain. chris: it wasn't that we extracted it and said we have done it. had to analyze the composition first. we found that that directly aligned with palm oil. >> is obtained using straw and other organic wastes. broken down in a kind of microwave. mixed with a specific east. as it ferments and grows oil can be extracted. the british form for the future is optimistic about the project. >> i think yeast-based materia could potentially play a significant role and particularly reduce the impact on land and a increasingly resource constrained world. >> palm oil is found in all kinds of things. asthmatics and cleaning fluids and biodiesel and many foods. more than 60 million tons of palm oil are used worldwide. it has particular properties that other oils don't have. there is a huge cost to the environment. forests in indonesia are being torched to make way for more oil palms. this hurts species such as the orangutan. if the steady rise in de

>> oil will definitely have its day in the sun. on the bullish factors for oil we have politics. decline rates got to replace five million barrels a year. we're seeing now with the lack of drilling the rigs now in the united states 355. that can't happen. for the e&p's in the oil business, you got 4000 duck wells that can be completed. so what we've seen about two million barrel a day price difference. adoption technology, these are game changers. if you look at it the amount of oil, we saw what two million barrels of day discrepancy between supply and demand. we could sigh five million barrels a day. we look at the 88 million cars sold every year. innovation tells us by 2025, cars have to be 50 more% more -- 50% more efficient. the reason i'm driving electric car is to show people the future is now. and the success that the tesla model 3 had, you can talk about that all day long. 225,000 orders. that is damning indictment on the automonthive inferrers. it's all about infrastructure. that's another thing we got to talk about. >> but then to your point, guzz this mean that with dr

even cut global oil production. the world is still producing 1 million barrels per day more than it needs. even with american output falling this year. ful the countries attending the meeting face a catch-22. they desperately need higher prices to fill their budget holes but they cannot risk slowing production because they need every dollar they can get. the biggest conflict comes between saudi arabia and iran. the saudis along with russia reportedly have agreed to cap production at current levels. and say they need iran to do the same. but so far iran has rejected any deal and continues to increase exports. iran needs the money and wants to rebuild global market share. oil ministers in tehran have no doubt recognized the saudis and russians are trying to freeze their own output at near record levels. if the two sides can put aside longstanding animosity and agree to a production cap, crude oil prices are likely to continue to rise. oil not the only place saudi arabia and iran are at odds. body are sighting in syria

for the oil markets.did see the phenomenal wealth. but this story, this exclusive, had such a movement on the oil markets as well. break it down. it seems to be about the so-called freeze with opec production. ntries and not ok countries are meeting this month whether to freeze at current levels. a few days ago until today, the perception the market was the freeze was possible, even iran was not joining. with the deputy has made is saudi arabia once every country to join the freeze, not only saudi and other opec members, but russia, iran need to participate. if they don't, then saudi will not freeze. that is in the price of oil 4% down today. also, is it a bit of a bearish call that we're seeing such a phenomenal sovereign wealth fund being built to diversify the biggest exporter of oil? is this saudi arabia telling the rest of the world -- >> if you read our stories this morning and this afternoon on the bloomberg terminal, if you read between the lines of the whole interview, the message is saudi arabia

big oil companies would come. small islands -- oil companies are conquered they would open a well and take as much oil as a cool -- they could out of the area and very little concerned about environmental issues. waste oil would run down the streets of signal hill into long beach. this is why one of the people who live there decided that she people's losses taken care of by the big oil companies. she fought for years to get the big oil companies to pay reparations to land that was lost and props our loss. eventually, she prevailed and she got the oil companies to pony up about half $1 million, about $500,000 to deal with the losses that had been suffered. although signal hill is very important for the next 25 years, a 1936, oil would be discovered in long beach harbor. this is the famous wilmington field, which would produce even more millions of barrels of oil. oil companies are come to the 85% and offer the city royalties. that would allow the city to become from a small beside community to dating the streets in

new mexico has seen oil busts before. after all, they've been producing oil here since the 1920s. so officials like to think they were ready for this one. in hobbs, they say they socked money away during the boom. so now with construction more affordable, they're spending millions on projects like a new wellness center. the state is using the downturn as a push to diversify an economy that's historically relied on oil and the federal government. >> any state, any political jurisdiction, can't put all of its eggs in one or two baskets. like new mexico has done for the last several decades. >> reporter: but out in the oil fields they say, don't count them out. >> i think we're going to see $60 this year. i wouldn't be at all surprised to see $70 next year. >> reporter: that's double the price now. here in new mexico, they know booms can go bust. but they also know they can boom again. scott cohn, "nightly business report," hobbs, new mexico. >> to learn more about hobbs, new mexico, and how it's dealing with the decline in crude prices, head to our website, nbr.com. >>> a fire erupt

anna: the oil story. really dominating a lot of the asset movement we have seen overnight in markets. let's see what this is doing to the futures as "a for the start of european equity trading. manus: we have a nice story on bloomberg about dax falling. london down by .8%. it is the demolition derby int terms of prices. rousseff, the impeachment, is hanging by a thread. let's show our viewers the fx markets. anna: the biggest move will be coming from the japanese yen. in various asset classes we are risk inome light of terms of turmoil. 107.97 on the u.s. dollar. manus: it is a risk off day. it is really moving all of these markets. anna: let's get to the bloomberg first world news. reporter: good morning. we are taking a look at brazilian lawmakers, which have voted to impeach rousseff. the opposition achieved the 2/3 majority needed to move the process onto the senate. there is a majority that would like to see rousseff suspended as she faces the impeachment trial. george osborne will ramp up his campai

an agreement on oil production.est losers is qantas. down 14% after planning to cut its domestic capacity expansion. it's biggest fallen more than two years. brazilian lawmakers have voted to impeach the president. achieve the to it two thirds majority in the lower house. the motion now goes to the senate. asian stocks are easing from four-month highs. theproducers leading decline. trading in indonesia is just getting underway. is not a great start to the trading week. we are seeing the regional index off those highs from last week. really led by losses coming through from japan. to prettylosses back much where they started this morning. down by 3%. we have seen a number of the earthquake affected companies come under pressure as well. price down byare almost 9%. weakness to on the share market around 9/10 of 1% in singapore. they are joining in that selling that we have been seeing across southeast asia. down one third of 1%. new zealand has held up quite well today. here are a few of the individual movers. the cas

let's talk about oil.l minister is a pair the -- is apparently not .ttending the meeting in doha he is sending a representative instead. how relevant is this? from joins us this morning seneca investment management. we will get your thoughts in just a moment. how relevant is this news? whether he shows up in doha is completely irrelevant. the conversations have taken place amongst the opec members. the iranian position is the one that has not changed, which is we will not join acap until we get production back to levels that they were pre-sanctions. unless he wants some air miles, all he is going to do is sit in the room and listen. iran is not going to do it. manus: this is a graphical representation of where we are in terms of production. ryan: they are not there yet. that is what the graph shows you. manus: the other story was what levels do you use at this meeting in doha? everybody has a group hug. the idea was february production levels would allow iran to continue to produce and participate. of arou

let's start by talking about oil prices. >> we saw some big gains for u.s. oil over the month. for the course of april, it is set to gain about 20%, though today, it ended down in the red. you can see a look at the oil prices. u.s. oil ending down just below the four -- the flat line. brent crude unchanged from yesterday. that international benchmark is brent crude, and it was earlier set for its biggest gain in seven years before dropping down. the international monetary fund says losses for major oil combined could reach a half trillion dollars. the figure includes 2015 and 2016. earlier, i spoke to the imf chief for the region about the prices.f lower oil >> last year, the oil exporting countries lost $400 billion in terms of oil export revenues. this year, they will lose andeen another $100 billion $150 billion, depending where oil prices settled. these are large sums for these countries. these countries have swung from having comfortable budget surpluses in 2013 to having large deficits. they will need to over the next few years balance their budgets and need to get used t

let's bring in our chief oil analyst.morning. -- front-end of the markets it has moved an awful long way in three months. how much of that is going to be priced out? where is screwed going to? the very short-term, you will see prices go just below $40, but then again you have so many unplanned disruptions -- nigeria, in his -- izuela, kuwait think that is limiting the downside. but in terms of sentiment, the lack of the deal is very negative. i wouldn't be surprised if you do see a sub $40 oil this week. -- iis this idea of a free know we have talks on resolving it today in yemen and elsewhere, but nevertheless there is a geopolitical pressure. maybe we were getting to ahead of ourselves in terms of anticipating a deal. >> oh, absolutely. from a fundamental analyst point of view, these talks make absolutely no difference to balances, because freezing out that i january levels, where they were producing at maximum in any case, how does it change balances? all these producers are starting to lose production everywhere the w

it was all about oil today. this is the stoxx 600 oil and gas index. since the 20th of january.t's when the gauge sank to a 13 year low. how it has rebounded since then. companyat day every oil is trading higher. i want to show you the technology index. just look at a few of the companies that have fallen today. what they have in common is they all supply parts for the iphone and those speculation that apple will cut iphone production. the technology gains down by a fifth of a percent. it just tells you how important apple is. what about the ripple effect with energy and oil prices? brent has been steadily rising. producers cutting back on production. that all helps continue this rally in brent. we seem to be tapering off as those talks neared. judging by what we have seen today it looks as if this is going to be bearish for oil. agreement on a production freeze. i want to get to abigail doolittle. abigail: we have the nasdaq trending moderately higher at this time. one of the worst performers all day has been the shares of netapp. this is a storage company. analysts are saying

oil taking big impact. that's down just about 3%. that drop in oil prices has u.s.tock market futures lower, checking in on stock market futures ahead of the opening bell. dow is down 36-point, s&p four and a half, nasdaq giving about 10. last day before new york primary, donald trump expected to be a big winner here but ted cruz won all delegates in wyoming over the weekend. as new york primary hours away, hillary clinton and bernie sanders square off over who has the best plan to raise minimum wage hurting the economy the least, that's a look, nicole, at what's happening now. nicole: thank you, lauren. fox news will carr has all the details. california with delegates could play -- >> california is going to decide the republican nomination. [cheers and applause] >> that's why sex tensor ted cruz spent crucial time on the west coast this week. 3,000 miles away from new york, the next big primary state on the map. ♪ ♪ >> the reason even if donald trump wins big in new york, it'l to secure 1237 delegates before june 7 when californians head to the polls. with so much

the broad strength of oil prices has matched the oil price weakness. wasg back, the worst term in oil markets, but there was turmoil in china as well. possibly china was more important because if you look at the biggest bike in the course of the last two years, it was on policy lastency august. people were worried about a similar thing taking place in january of this year. there,e oil price was but china has been the thing they have worried about more than anything else. tom: tell me about indonesia, or the other indonesia is out there -- indonesias out there. i understand they are in opec nation, but they have very interesting oil dynamics. what do they want saudi arabia to do? i'm not sure what they want saudi arabia to do, but you have former opec members who withrejoined opec, as indonesia. they have rejoined, but they're not actually exporting oil. i guess their job is to get in inside, by don't think they have this way as far as policy orientations. in the end, when you look at what has been going on, h producer after dooh relations are in disarr

and oil prices vulnerable. for "nightly business report," i'm brian sullivan in doha, qatar. >>> >> the failure of producers po agree was partly offset at least for today by a strike in kuwait by oil workers there. the nation's output was cut in half today, helping support oil prices. hadley gamble in kuwait has more on the worker demand. >> reporter: a second day of strikes by oil and gas workers in kuwait served to offset much of the price depression following failed talks between opec and non-opec producers over the weekend in doha. but that bounce in prices could be short-lived. kuwaiti production was slashed by 60% on sunday as thousands of unionized workers refused to come into work. kuwaiti officials now say they plan to return production to normal levels in the coming days in spi of kuwait's 13,000-strong oil and gas union are protesting cuts to wages and benefits as the oil-producing sovereign looks to tighten its budget. while many expat workers remain on the job, the kuwaiti government is taking a ha

bloomberg's first word oil strategy julian lee joining us from citigroup. good morning. walk us through what is the story behind this? what's going on? >> i think the fundamental story behind the story is that for 40 years saudi arabia has subsidized high cost oil producers by restricting its own output to keep the price of oil well above the cost of extraction. a year-and-a-half ago, in a global environment where oil is becoming less and less attractive in the longer term to consumers, saudi arabia turned around and said this policy has to change. --s is a fundamental shift it goes well beyond saudi arabia and iran, well beyond u.s. shale. shift in fundamental the way saudi arabia looks at the oil business in its place in it. -- ais a saudi policy

oil slides from its highest level in more than four months n's oil minister says he may not attend theng. how much does it matter? this is bloomberg "surveillance." tom, we are going to have a greatho

my chart is about oil.spent a lot of time talking about the yen, but my goal is not to win the week -- it's to elucidate and clarify for the viewer, hopefully for andrew. what we have is u.s. oil production. we see it taking here, 9.6 million barrels per day. it goes all the way down, right now heading in a clear direction. output has dropped, down close to that $ 9 million barrels per day. the blue line is the price of wti -- sorry, what oil has traded at. it gives you a sense that the u.s. oil producers in the plant regions, where you have some of the shale drilling, are feeling the pain. production is down, over half a million barrels off the market. we will see its filter through into this oil story; it could lead to a slight rally in the price. but guy, my interest is not winning, isn't having a good chart that explains things. guy: it's all about taking part, isn't it? i've heard that somewhere before. anyway, this is my chart. this i comes from the bank of nw york mellon. if i lose, he will take the

post-oil is a trading -- you see post-oil as a trading theme?s happened for a lot of the g 10 oil currencies is it they were not as currency-esque as before. look at norway which is diverse. reserve fundegians in effect, that generates a percent of gdp every year in income. generates 8% of gdp every year in income. in our view, the krone should be able to do pretty well regardless of what is happening with oil prices. a lot is fixated on the move in oil price they did you opportunity. anna: showing the returns of the various currencies. the canadian dollar, the swedish quarter -- krone are doing quite well. despite you said there is a little bit less oil. do you think they still have their way to go? >> norway has fantastic fundamentals. it did you positive carry with you normally have to take for risks. -- theseok at currencies have rebounded the commodity. in no way, sound fundamentals. but somewhere like south africa, you're worried about the story of growth. if the currency market is boeing step for step, there will be opportunities -- marke

julie: should we look at oil? let's take a look at oil prices. we did see that big drop in oil. that coincided with the drop that we saw in stocks as well. down .5% after that weekly inventories report. too: that has not dented much the fortunes -- the gauge is still the best performer on the index today. earnings very much the driver of today's gains. we are awaiting the fed, of course. oil and gas, the best performance. glaxosmithkline shares reporting the first increase in profits since 2014, we had an earnings beat as well. hiv medicines offsetting declines in advair. is norway's biggest oil company, look at the shares up by 6% today. earlier today, it announced profits fell by 37% for the first quarter. it was still a beat. profits unexpectedly rose. it reduced costs. offset the weakest oil prices in 12 years. it is 75% owned by the norwegian government. joining bp in an earnings beat. we had u.k. gdp for the first .4%.er rising showing the lopsided nature of the u.k. economy. services expanded .6%. that was lower than the previous quarter. we had construction output also d

isn't oil driving the dollar or dollar driving the oil. it is very much intertwined. oil moves for supply reasons, that will obviously rebalance the oil and dollar relationship. we also think that correlation is likely to break down a little bit. one thing we haven't discussed is what this morning means to people who are u.s. shale producers hanging on by their fingernails heavily indebted. what has this done to them? >> it has been a nice recovery in some of the high-yield names. there was hope more in the u.s. than anywhere else to get something on the books that would either increase the demand side or stop the supply side. i was kind of coming at it from the demand side when i asked the question, is there a lurking increase in demand that we are not necessarily taking into account that comes through from a weaker dollar and a stronger china and stronger u.s.? >> really good question. there is certainly that possibility. india and china are very strong sources of demand growth this year. should the dollar continued to weaken -- alix: that was michael: in. on oil ha

producing oil in alaska is a money-losing proposition. >> the average cost to produce a barrel of oil, before we pay any tax, whether it's to the federal government or to the state government, is about $52 a barrel. >> reporter: oil companies are cutting jobs and production. the transalaska pipeline is running at one-quarter of its capacity. just keeping the oil flowing at this rate, without the line freezing, is an engineering feat. >> i have woken up worried about kind of the future in and the transatlantic pipeline system. it's not just technical, it's economic. >> reporter: all this in a state that has relied on oil for as much as 90% of state revenues and one-third of all jobs. alaskans have seen low oil prices before. in fact, they've gone lower than this and always bounced back. but there's a growing fear that this time is different and that this is a new normal. not only is demand down, alaska faces new competition from shale oil. so with the state facing a $4 billion budget gap and the legislative session going into overtime, the governor has proposed a sweeping plan to make

if you look at this, we have oil here. you see back to the highs here, 2134. where was oil? 60.72 so you know that's what you're eyeballing there. i don't think we get there any time soon, but if you look here, you wind up seeing the leading, leading basically oil winds up leading the s&p. see this drops, the s&p, takes a little bit longer to drop. you see a little bit of a lag there. you see it rally. same type of thing so what we're shooting for in the s&p is this number right here. that's the real resistance because as we're climbing, when you look at the s&p, unless we breech or cross over this powerful enough then we make another high in the s&p cash. we don't want to do this. this is all for not. focus in. where did you see oil? where did you see the s&p? 47.90. tim and i have had a long going debate whether or not we cross over the $50 mark in oil, i don't think we do so, so i think that's the lid on the market. i think that's the lid on oil, but you also have a hell of a trading range here to trade against. so if you want to look here. -ins the s&p cash. these are th

francine: life after oil. saudi arabia outlines plans for crude oil. we are from the deputy crown prince earlier -- later. policymerkel for refugee . the president wraps his tour with a g5 meeting. car troubles. the emissions scandal hangs over the beijing auto show. urges clearer rules. ♪ francine: welcome to the pulse, live from bluebirds european headquarters. i'm francine lacqua. getting break news. analysts we have spoken to expecting a slightly higher number, they were respecting 107.1. let's take a look at the fallout listed the market board up. asian shares were a little bit lower in terms of what we saw earlier today. we saw all of that decline. .17 -- 111.17.11 the german evoke confidence it fell to 106.6. let's get to the bloomberg first word news with near chance. nejra: the bank of japan has become a top 10 shareholder and about 90% of the nikkei 225 companies. that is according to estimates compiled by bloomberg from public beta. vanguard which oversees more than $3 trillion. the boj's influence in stocks risks distorting valuations and u

lisa: sticking with oil, the falling price of oil has been a crucial factor in many states, includingich has the economy12th largest paired it is a top state for oil production in the u.s. joining us is the texas state controller. start with just how important is oil to the economy of texas. >> oil is an important part of our state. if you go back to the 1980's when we had the last large oil bust, texas made a fundamental decision not to look at severance taxes on oil and gas revenues to continue to be a main part of our budget right back then it was roughly 28% of all taxes collected. at the height of the boom it was only 11% of our tax collection. today it's roughly about eight or at uc fundamental decision in the legislature back then and what we see today, those revenues go into our state rainy day fund, economic stabilization fund. if you are one of those individuals that has lost your job or one of those companies, one of the 12 economic regions heavily dependent upon oil, it's very real. but as a state, texas is still posed to do very well compared to many states in our nation.

oil could be tumbling back into the 20's. lisa: and the impeachment crisis in brazil -- the president is one step closer to being removed from office. david: and a verizon is said to be the leading suitor as other companies drop out to buy yahoo! , including the business known as yellow pages.com. we are two hours from the close of trading. it's good to the markets desk julie hyman has the latest. julie: an unlikely rally. when we heard about the no hot talks collapse, the expectation was oil woodhead sharply lower and stocks would fall along with it, yet that is not what has happened. have&p and the dow each .5% -- not a runaway rally but if you look at the s&p 500, you will see what i'm talking about here. a gradual increase throughout the morning and what is interesting is as we have seen ad itslly, the dow highest and nine months, we have seen people dumping their short nuts on the s&p 500. but you have here is the measure of short positions on the s&p 500. we've seen a decrease in those positions at the fastest pace in f