but in -- well, the oil industry was rolling up and really dictating the rules around oil and gas drilling and discovery. there was a man named samuel insole who was doing the same in the electric utility and gas utility industry. he did something that's similar to what happened with the housing market in 2008, 2009. he actually owned, had an ownership in about 5,000 gas and electric utilities in 30 states, but there was a holding company structure or we would call it a multi-national corporation today, and the participant company kind of milked -- the parent company kind of milked these utilities charging them big rates and fees for services. meanwhile, he had investment companies, a number of them, and he sold the stock over and over and over again to these different utilities. and this all contributed to the crash of the great depression. now, i'm talking about this because it actually has a big impact on policy today. so when roosevelt came into office, there was a lot of activity around trying to curtail what the oil and gas industry was doing, what the electric utility industry was d

bush may have gone to the oil fields hoping that he would just be an oil man, but when you're teaming with oil in this country you can't escape politics, and he learned that relatively quickly. in 1954, you remind us, the supreme court made an important ruling that would help trigger george bush's interest in getting involved politically in the production and distribution of oil. >> so, the supreme court ruled that the government had the right, the ability to control natural gas prices, and natural gas and oil often come out of the same well in the ground and seen as interchangeable fuels in some instances, and so the fear and concern of oilmen like bush is now the government is going to interfere across the board and control the price of oil, too. and what is interesting about the supreme court decision is it comes out of this sort of new deal mentality that americans have the right as fdr said in 1932 when he was first running for president, that americans have a right to cheap and affordable energy, and americans have that mentality, and it hadn't really been a problem until we sta

some units of the oil producer.e, here is our reporter. what exactly are they planning to sell off? >> this was a new plan for us to hear about. unlike saudi arabia, and is thinking of selling off minority stakes. some of the support of units of the main oil company. which produces around 3 million barrels a day of oil output from kuwait. the minister was saying they are looking at companies like national tanker company that transports oil. they have about 20 tankers and oil vessels. looking at other companies that do support the services, they are not the downstream or upstream inside kuwait. outside, they are looking at companies that work in exploration. owns gas stations in some parts of europe. angie: how is this different to what sadui is doing with -- saudi is doing with aramco. asked -- they we were talking about 5% of the national old companies. that surprised a lot of people. ipoaid kuwait would never the main company or the main assets inside the country. right now, they are talking about assets inside th

tube, and i put it in her feeding tube, the oil. in the measured amount, very low dose to start, and just waited to see if it would work. and she stopped seizing. she didn't have a seizure for seven days. nothing had ever done this. >> time out. she's having 300 seizures a week, you think she's going to die, right? and you introduce this, for the very first time, and it just stops. >> yep. her seizures stopped and she didn't have a side effect. >> that was then. >> where are you going? up the trail? >> this is now. >> what are you doing? >> that squeal of joy is from 8-year-old charlotte or charlie as her family calls her, speeding through the pine trees of colorado on the zip line her father matt built. >> good zip liner. >> reading paige and charlotte's story online gave less lisa smith in virginia new hope, but also cause for concern. the use of marijuana, as a medicine, made her family uncomfortable. yet the benefits seemed to outweigh the stigma. pot, though, wasn't and still isn't legal in virginia. so the big question for the

manufacturing is related to oil and it is included in the oil sector from the pmi survey.oil output rising and remaining strong, that is supporting the manufacturing side and the tech side. yousef: how has your view on oil changed over the last couple of weeks? we have had the numbers and we talked about earlier in the show, it has really hit the oil prices, down 4.8% and then it stabilize on friday. has it changed your outlook? >> it has not really. she has only recently revised very slightly from $39 a barrel to 45 -- $44 a braille. we are still in that range and it has been indicated that she does not see a lot for the upside. movement at the end of last week was consistent with that. we see it around $50 for the rest of the year. >> so we have not mentioned brexit. brexit, we have seen a lot of commentators ratcheting down there forecast because of the uncertainty. what easy as the impact in the gulf region? >> it is limited. on the positive side, it will probably have an impact in terms of imported items from the u.k. they are a because net importer from the u.k.. so

n terms oil, european oil, where do to be in that respect? >> right now you've got to look at the potential, with the u.s. energy sector as a whole, u.s. economy as a whole, as the to adjust to the changes and circumstances, so if it means reallocating or labor, fundamentally i think the u.s. economy, u.s. corporations, tend to do that you have more restraints perhaps on the uropean side so i think if i had to pick one of the two, you'll see more of a change in or the environment. >> daniel morris. stays with us this morning program. >> let's get you your day ahead. the agenda set. this morning, we're going to et the earnings as we've bp.n saying from we also get, in the mid-afternoon, an update biggest world's economy with the u.s. pmi numbers for july. >> a whole host of corporate results. earnings from apple, twitter, mcdonald's and all on the horizon. bloomberg, h lexen bourgeois's finance minister pierre joins us on pulse," this morning at 9:30 a.m. >> up next on the program the on "countdown," majority of economists say they see the boj

big oil conspiracy, you know? even though foreign events had precipitated these shortages, they could not imagine that, you know, the inheritors of, you know, john d. rockefeller, these oil to companies, were not all-powerful. so they were quite certain that, you know, oil tankers, for example, were just waiting offshore until price, you know, until prices went up to deliver. that was sort of what most americans believed. >> yeah. >> which made it very hard for carter then to sort of propose real solutions. and as you say, generated support among liberals for continuing controls of the industry. so energy action is this liberal group, it's sort of a ralph nader type group. it's led by this guy can, james fleug, who worked for kennedy on the hill. it's financed by people you've heard of like paul nullman and robert redford -- newman and robert redford. this was the hot issue of the day, regulation. [laughter] and they run a commercial called mugging in which they have somebody dressed in arab garb with a gasoline n

oil in the homes. this led to rockefeller quickly becoming one of the wealthiest men in america, and also becoming one of the most hated men in america as they call him. the way john d. rockefeller ran his business, the way he took over other petroleum industries led to a very bad public image. his business practices were well-known as not the best in american business. it was at that point where his advisers told him he needed to appear even more charitable than he already was. he began his own campaign where when he was out on the streets walking around, meeting people, talking to people, he would get out dimes. it became a very large legend behind rockefeller dimes. to be handed a dime at the time, the early 1800s when he was doing this -- 1900s when he was doing this, he was giving away a large amount of money. when you think about the steel industry worker might even making a couple hundred dollars a week, a dime was a significant amount of money. especially when you hand it to children. children

oil has been robust, considering the oil -- world economy.s more, we don't see that changing. china is making 2.6 million cars per month. gasoline demand has to go up 8% no matter what. big changes fuel oil demand. , which wasnd supposed to be the lion's of demand growth in emerging markets, has flattened out for reasons that surprised a lot of people. the major demand is for gasoline jet fuel. no substitute there. ,urprisingly, propane butane, these are things that come about with natural gas production, we have a surge in lpg demand. that is not refinery driven. tom: we don't talk about the local key town until 7:00 a.m. this is an approximation of real oil, then adjusted for rising incomes over the many decades. pre-opec over to the left. the first surge in opec, the second surge. the spike in the middle is persian gulf one. oil is cheap. the under lowing microeconomics state the gloom kicks. the people worried about $35 or a revisit below 20 nine dollars, what is their case? edward: it is a supply case. this is a supply driven market. we

going to talk about oil.a short break. ♪ caroline: welcome back to "on the move." 30 minutes into your trading day, let's look at how the stoxx 600 is shaping up, currently trading on the downside. these are industry groups on the rise. on the downside are the banks and oil and gas companies. flat, cac 40dax up. manus: thank you very much. let's look at some of the top stocks that are moving this morning. a little bit of an inflection. yesterday,, late there tier one ratio fell. net income dropped 32%. that's their second-quarter earnings under pressure. -- we the other hand have been waiting them to hear what they need to do, and the u.k. regulator asks them to give their rivals more access to the network, that it should create a separate, broadband structure. perhaps not as bad as a hold a vestigture. bprallying some 2.88%, profita tumbles by 45%. down 1.44%. we'll stay with oil, it is one of the major stories. let's get to dubai. yousef, good day. -- what cut your eye is the chart of the hour for you? at i

the oil and gas shale and oil gas have been victims of their own success. so it's an amazing story. from 2007 through 2012 or so, we doubled the number of oil and gas production in the country. over five your. we doubled our production in this revolution that happen. all of the net new jobs in the net increase in gdp over brock obama's first term were all attributable to the oil and gas industry. so when i give talks i was in texas is a congratulations you're the people who reelected barack obama, they didn't like that but it's true, without the shale and oil gas revolution brock obama would not have been reelection. the economy still would've been in recession. so what happened now is as you said, that big boom that has turned into a bust. this is the history of the oil industry. it goes through goes through these boom and bust cycle, it is in that bust cycle right now although it's gone from 30 to $50 in last couple months. kathleen's more of an expert on this than i am. when i talk to these folks they say in a price of 50 to 60 and we can start making money, they would like price

when you see a bottle of oil, you see a lot of work of women, good quality oil.a story behind it. >> reporter: a story that begins in these moroccan tree tops. and ends in shops like ahmed and gabriel's in new york city. they could be the last few drops of an ancient hey there, heard the good news? spray 'n wash is back... and even better. it's powerful formula removes everyday stains the first time. which is bad news for stains, and good news for you. spray 'n wash. back 'n better. they should express eyes shouhow you feel. your age, there's no holding back with new olay eyes. a collection for the look of every eye concern: lift depuff brighten smooth or ultimaltely all of it. for a measurable transformation. olay eyes express every emotion, not your age. new from olay ageless your heart loves omega-3s. but there's a difference between the omega-3s in fish oil and those in megared krill oil. unlike fish oil, megared is easily absorbed by your body... ...which makes your heart, well, mega-happy. happier still, megared is proven to increase omega-3 levels in 30 da

but that oil has gone east.reas we have a little bit less oil in the west. >> since you mentioned u.s. production, we have gone from 9.6 million barrels to 8.9 million barrels. what would it take in the states to seee production return? ian taylor: it is a really difficult question and we are still trying to understand all of the economics and the different basins. some basins look great and some do not look so good at this price level. it is very difficult for us to tell. certainly, one of the reasons we think getting to $60 will be difficult is because we believe some u.s. oil basins will come back at that price level. so, it is hard to know at this point in time. we are still learning about the economics. you should ask the producers, they probably know more, better than we do. $55 ore you get to $60, you start to turn the corner. >> what do you see in may and ju ne? ian taylor: we think that number will come down a little bit more, but not significantly more. >> oh, really? ian taylor: i am always a little n

oil up by about .8%.t is just back above the $45 handle. angie: thank you. still with us from our london offices, the chief executive officer for intermarket strategy. the busiest man in the u.k., no doubt, is mark carney. he is managing his third week now. he has injected liquidity and told banks to go out and lend money. he has already said that he is going to loosen monetary policy to read, what is the expectation that he will? >> he is saying it and they are going to do it. they said, let's not care about the fiscal conditions. we are probably going to cut to 15%.x from 20% carney said that with the rainy day provisions, the rainy day has come. you have to lend. do not keep them for the rainy day. i think that means more supply of funds in the economy. we know what happens with the rising volume of money. the price of money goes down. expectations go down, whether they will reduce the base rate point 25%. some people say the pound has not fallen enough for mr. carney so he may come in to reduce that.

meanwhile, the oil market's plobs were the oil market's problems. people were trying to look at commodity and resource exposure. which banks had the most exposure to some of the big companies and they were implied to be credit problems. what we have here in an august that's different than last year, is we have china that's not going to come in. and try to devalue. if anything, what happened with the bank of japan last night, they didn't flood their market, means that japan has left, sorry, china has less pressure from a strengthening yen and dollar is weaker and the fed is out of the picture. look at this gdp print today. i don't think this is august 2015. >> that will give you an independe indication of the way the economy's going to be. say why did we rally so much? for reasons that were not related to supply mode. supply. it wasn't demand. demand's still not there. we've got a supply rut that's going last for a period of time. demand significantly needs to pick up to really. >> need the global growth. you have anemic growth here as we found out t

we're talking about oil, gas and coal. and that's a big deal. $50 trillion is a huge deal, and if you -- if we started allowing leases on those federal lands for coal, oil and gas -- and obama just recently suspended leases for coal on federal lands -- if we started allowing this to happen -- by the way we are not talking about yosemite or yell lowstone. not our national temperatures. not only could we get 50 trillion decide in increased output over the next 30 or 40 yours but we estimate the federal government could raise someone between three and four trillion dollars in royalties and income tax payments and we could use that tot reduce our national debt or build more infrastructure or whatever purpose we want, and that's a lot of money. >> i want to repeat what he said. i think -- what is public land, what is u.s. taxpayer purchased and maintains every year through taxpayer funds, there would be a net benefit for the public, like reduce thing national debt and all of those, and i also know that states would very much --

smuggling rackets keep draining oil profits. oil wells in lake maracaibo continue to decline.the oil economy tumbles, and pulls venezuela deeper into crisis, it draws attention to the perils of over-relying on oil revenues, to prop up an economy. back on lake maracaibo, fisherman jose gregorio garcia has benefited from oil's bonanza years, as well as suffered from too much oil, contaminating his fish supply. living shoreside of the once- booming oil industry garcia knows it has to change. >> ( translated ): we've seen what happens with petroleum. the price of oil rises, and falls. we've always lived off this, the good price of oil, but we have to find an alternative. >> reporter: for the pbs newshour, reporting with bruno federico, i'm nadja drost on lake maracaibo. >> sreenivasan: to hear more about this story and our reporting from venezuela check out our "outside the bubble" conversation with special correspondent nadja drost. that's on our facebook page: facebook.com/newshour. now we go back to gwen and judy in philadelphia. >> woodruff: thank you, hari. we are here at the

he is going to deal with low oil prices which hurts all oil differentbut it hurts producers differentlye are several members of iraq,ike nigeria, venezuela that need oil prices more badly the in a country like kuwait or saudi arabia and that is what opec has been dealing with for two years. saudi arabia has been driving a policy to keep pumping out as much oil as they can to drive down prices and not give a subsidy to u.s. shale and canadian. but countries like nigeria are -- and venezuela especially -- where people are lining up to cross the border just to buy groceries, they are desperate for higher oil prices. so trying to bridge that divide between these two sets of classes of members will be his greatest challenge. >> what kind of background those bar bring to the role and will it help in anyway? >> we will have to see obviously. mohammed bartender was the hammed barkindo has the experience of working with other members of opec. he is is at citibank said a great negotiator who can listen and try to pick up where different sides might find a little bit of common ground. those qualit

linked to, that is oil prices. we see very low oil prices last year.were able to get revenues last year. we are a long-term investor. as the shipping concerns, we saw a very good shipping market. to tie you down in a price range, would it be $50 or $60? give me a range so our viewers can get a better sense of what your insight is. >> i cannot really give you a number. but as far as the fund is concerned, generally speaking, performance is not really hooked up to any oil price. there, we will leave it apicorp.saadoun of still to come, the coup attempt in turkey is pushing down share prices in malaysia airports. we will tell you the connection next. ♪ angie: welcome back. this is "bloomberg markets middle east." markets across asia have been relatively quiet this monday as we count down to the istanbul open. david has the latest. one airport operators getting sold off. why? david: it is malaysia airports. it was down as much as 7% at one point and paring back losses is the other airport. the owner of the other one is on the asian side. that is the airpor

oil company here in cleveland, ohio.te, we see various product packaging for other products that were either made by or eventually made by standard oil out of the refining process of petroleum here in the cleveland area. standard oil, of course was formed by john d. rockefeller in 1870 and quickly became one of the largest petroleum companies in the united states, and john d. rockefeller was a brilliant businessman what had moved to the cleveland area with his family as a young boy. grew up in the cleveland area in boarding school, and then eventually working in various companies, and in the petroleum industry until founding his own company, standard oil company. and standard oil actually comes from john rockefeller's idea and desire to standardize kerosene. kerosene is what most homes were using as a lighting oil in their lamps, and at the time, kerosene was somewhat dangerous. there was no standardization of it. some of it would burn hotter and quicker than others, and it would lead to fires in homes, and so john d. ro

that's pressuring oil prices. now this morning morgan stanley said oil could move into the mid $30 range once again. now if that happens, earns estimates for all the oil companies will have to come down because those earnings are base ond higher oil prices. this morning the ceo of bp said he expected oil prices to average between $50 and $60 a year going into 2017. lower oil company profits is a big deal because it will likely take down estimates for the whole s&p 500. traders are expecting the estimates to turn positive in the third quarter after four consecutive quarters of negative earnings growth. so to justify stocks at historic highs, the bulls need to argue that earnings are improving and declining oil is not helping. for nightly business report, bob pisani at the new york stock tp again today the declining oil prices. produced a mix day on wall street. energy shares under pressure as investors comb through allst earnings reports in the federal reserve began a two day policy meeting. the dow jones industria

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we don't trade oil around here.aritable trust, follow along at actionalertsplus.com, has been buying none other than schlumberg schlumberger, itself. i think that's the right call. as much as i respect the other sources, to me, oil's bottoming once again. you can buy schlumberger for the accelerating recovery that the best service company on earth now says is finally upon us. doug in virginia. doug? >> caller: hey, jim, thanks for taking my call. >> of course. >> caller: i'm calling about conocophillips that was mentioned in your book "real money." what has happened since then, namely the spinoff of phillips 66 and the price of crude oil, of course, went south. >> right. >> caller: that resulted in them cutting their dividend by just over 65%. do you recommend buy, sell or hold? >> i'm not as big a conoco fan. i like the integrateds more. the splitoff -- it's funny, scott wapner's show, "halftime" and joe really likes psx, the best of the refinders. you know what, i'm going to pass on that. my charitable trust owns

oil prices went up to $55. costs have come down.he picture is more positive among the producers today than a year ago. i think the u.s. is slowly going to come back up. i think we are going to see the trough end. yousef: we like to pin down our guests in terms of their forecast. give us a number two work with. we worked with the forecast for q3. by the end of the year, where do you see oil prices? wtien: what we see is the price, $50 plus or -10%. this will bring a lot of volatility. right now, a number of hedge long, investors had bought positions hoping oil prices would increase in the future. because of situations now, for example in libya, also the way iran is talking, they are getting nervous and selling the position. we are now seeing a correction. yousef: we will bring this up shortly, including our conversation on lmg. next, we will take a closer look at that. yeah, this is bloomberg. ♪ angie: welcome back. you are watching bloomberg markets: middle east. let's get the latest from the markets. juliette: it is a pretty good s

ryan: we already knew oil profits follow oil prices.rice fell year on year, so it was no surprise there was going to be a decline. the problem with shell was that their production fell as well. they produced 120,000 barrels less than the market was anticipating. that does not sound like a lot when you are producing a few million barrels. but if you think about it, at $50 a barrel, that adds up to $6 million a day. over a 90-day period, that is $540 million. that explains half of the loss. another big business at shell is the gas business. don't forget, they are the largest lng producers out there. that, too, underperformed. really bad news at all three of shell's businesses. >> good news that total beat estimates. what is behind that? >> production is up, unlike at shell. up by just 5%, but that helps on the margins. in addition to that, they are cutting costs. that is something investors love. they had a target of $2.4 billion of cost cuts this year, and say they will beat that target. >> all of a sudden, people question oil demand. do

when you see a bottle of oil, you see a lot of work of women, good quality oil. it has a story behind it. >> reporter: a story that begins in these moroccan tree tops. and ends in shops like ahmed and gabriel's in new york city. they could be the last few drops of an ancient moroccan tradition. unable to keep up with modern demands. sara, will you marry... [phone rings again] what do you want, todd???? [crowd cheering] keep it going!!!! if you sit on your phone, you butt-dial people. it's what you do. todd! if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. i know we just met like, two months ago... yes! [crowd cheering] [crowd cheering over phone] the worst thing about toilet they don't stay in the toilet. disinfect your bathroom with lysol bathroom trigger... ...lysol power foamer... ...and lysol toilet bowl cleaner. they kill 99.9% of germs including e. coli. to clean and disinfect in and out of the toilet... ...lysol that. do you think i'm gonna crack under pressure or conquer the field? defy expectations any

we are also all over this oil slide. crude oil back in a bear market. crude oil popping a little bit right now 0.3%, opened up lower. it could be a wild next two hours. let's go or down to three hours, let's go to bob pisani downtown and take us inside the earnings numbers. oil does seem to be another thing squarely on your radar. >> yeah, the important thing here overall is july is shaping up to be a really good month overall. in fact, normally it's the best month of the third quarter. so far it's looking great here. i want to give you a quick recap of what's going on. the important thing is nasdaq tech stocks been doing well. the earnings reports generally holding up with a few exceptions. small caps are outperforming. mid caps are outperforming. oechb the big caps, the s&p up 3.7% but overall still excellent performance. broad market gains here. take a look at the sectors here. we got tech, health care, materials, consumer staples lagging here. so the group that was a big market leader early on, consumer staples lagging, others have a problem as bria

north dakota just passed them as a producer of oil. if you follow the water crisis in california, the same kind of water policies better place in california are the same type of policies they have with respect to oil. this just makes the point that you were making about the fact that we are cleaning up the environment. clean coal is here today. the amount of admissions from whole plants in terms of major pollutants that we look at. i think people get mixed up. carbon monoxide is a pollution. carbon dioxide is not. you can see dramatic reductions. some of this is certainly attributable to the epa regulations. there is a difference between smart regulations and non- smart regulations. this is just showing we are not running out of this stuff. the technologies get better all the time. let me just summarize by saying, just as an economic strategy, why does this issue matter so much in terms of america's economic future, not just our energy future? you all thought the jobs report that came out on friday with the economy growing at a slow ra

as you know, refining is the heads for oil companies good when times are bad for the oil price, it isefining, making crude into finished products that helps. there is a glut of gasoline at their. integrated oil companies made too much gasoline at the refinery and that is hitting them. what is worse than that is ep also said that they expect in the third quarter the pressure to remain on those margins. francine. francine: ryan, very quickly, at least they stuck to dividends. there was concern that a lot of these oil majors had to scale back. ryan: it came in at $.10 a share. bit.d see gear take up a about -- bps debt load at $30 billion. if that continues, you will see more concerns about that and you might hear people talking about a cut to the dividend in the future. nobody wants to do that just yet. francine: ryan chilcote, thank you so much. some of the big u.s. oil majors a little bit later. the bigger picture of global growth. let's introduce kit juckes. always great to speak to you because you have unique insight into how the market and global growth play out. when you look at t

i don't know what the difference he crudelean and hurt oil. it's just crude oil. geologic experts have said the heavier type of oil that comes from canada would not be able to permeate the aquifer because it is more of a molasses type of product. it would slow down and stop when it gets out of the pop line -- pipeline. the filtration system would stop it. the plat pipeline runs east to west through the aquifer as it has since a 1950's. of our viewers, tweets and assess the country should use what we have the most abundance of, natural gas. i like natural gas. pipelines, miles of most of that is for natural gas. natural gas is used in most of our columns and factories. it is used quite a bit. there are concerns with fracking as well as has to be looked at. ultimately, when somebody advocates all or nothing, both sides are probably wrong. we need a realistic energy mix just like you would not have one tool in the toolbox. you need more than just a hammer. mix which includes renewables and also includes nuclear and natural gas. host: we are talking about transporting

, oil closed over $50 a barrel.hen, crude is down over 7% in what traders are calling choppy trade. momentum seems to be to the downside. part of that is brexit related because future growth is being called into question. weak european demand combined with concerns about the rest of the world, specifically china, all reasons analysts are skept abl kl about the trade now. on supply side, it's not better. a report today saying the u.s. now holds more oil reserves than saudi arabia and russia, the world's two largest exporters. while that's good news for domestic policy here and energy independence, unless demand catches up to supply, there's still an oil glut. finally two notes out today that echo this sentiment. barclays and jpmorgan worried about demand and how it will impact the rebalance so more were predicting will camera in the back half of the year. >> can oil go much further? let's check in with dennis gartman. hey dennis. how low can can we go? >> well, again, i'm quite bearish of the crude oil market for a n

let's show you oil. a 5% slide in the price of oil yesterday. that didn't help the equity markets. energy was the worst performing sector. wti down. brent down to 47.73. >> comes off the back of mark carney speaking yesterday suggesting more easing to come. interesting cartoons in the paper today. partly because he suggested more easing, but a speech to calm markets and he seemed to strike a tone of i told you so with this. it's still interesting to see. this is manifesting very much in the uk bond market. the equities are getting a boost off the back of it. >> how destabilizing is the drob in the pound. yes, a weaker currency can be a good thing for the economy and experts as evidenced by some of the big company there is, but this kind of record move unprecedented move, that has got to cause some negative problems. it erodes the purchasing power of the british. could have a real impact. >> the key is the moment markets are still functioning well. no massive sort term fallout. you focus on big inflation in three, six months times. in terms of equity, it's the ones with exposures to

i think within oil we like refiners. not big oil. dividends look healthy, even though, we see investors, why they pile in. definitely don't like crude. can't see it coming through in oil in a significant period from now. refiners is where you want to be. other than that we don't like the sector. >> who's hungry? one analyst is not when it comes to the dining sector. first to michelle crusaruso-caba at the democratic convention. >> coming up top of the hour on "power lunch," mcdonald's shares. talking about diving after reporting those disappointing u.s. sales. has the fast food giant reached peak breakfast? ton of big names gearing up to report latest numbers after the bell including, of course, apple and twitter. both having a rough year. set up how to trade it and oil under pressure again lately. is it back in play bringing down the markets again? and, plus, live coverage from here, the dnc, a lot of big guests coming up and preview of what's going to happen tonight. the "halftime report" is back, right after this. > announcer: "ha

supplies and oil demand.still remains the marginal producer. they still have a lot of leverage on a price. difficult to forecast where oil will be depending on the shale industry in the united states and the china situation. what i can say is that saudi arabia still has a lot of margin to maneuver. they will still be a price stabilizer for oil. yousef: thank you for a coming on the show. corner net -- second-quarter net is rising to 125.7 million. that is just hitting the bloomberg. that is an increase of 36%. that is one of the top benchmarks in the region. they were buying some of the stake in that company. we'll see how the investors react with the bond market comes online shortly. this is come: bloomberg. ♪ angie: welcome back. plenty of earnings have today. hard to top the electronics here in asia. giving an impressive amount of money back to shareholders by samsung in korea. a lot to go through. david: it is a fairly big company. so the different businesses. most of them beat expectations. when you look

wti oil prices are in a bear market. here are the three oil charts that tell the story. global refining margins. that really shows what has happened in the last few weeks. can you pull that one up? no? there we go. you have refining margins moving basically thatis you had crude supply moving into product supply. refiners buying cheap oil and turning it into gasoline. then we had too much of the product and that has weighed on margins. the problem is that if refiners say, i don't want to work anymore, they will stop writing crude and it tilts back up in inventory. that has morgan stanley calling for the refinery driven correction to be upon us. a $30ee the potential for oil range. check out the 200 day moving average versus the oil price. that is the next chart which shows what happened over the past few days. these are the moving averages for oil. sitting right at the 200 day moving average. it is a technical level that could inside more washout and traders have to change positions. jeff curry said guys, this is fine, the market will be ok. he is looking at the time spre

headink oil prices will higher towards the end of the year. oil was as low as $26.have rebounded, almost doubled. we are consolidating currently. if you look at the fundamentals we are encouraged. they fell for the ninth consecutive week. on a downward trend. that gives hope that we can see a sustainable rebalancing by the end of the year. yousef: u.s. interest rates, we have covered that, how does that feed into the regional story? it has been beating expectations. how optimistic are you? the growth story? >> we have to be cautious. having said that you will note the imf while downgrading the thed outlook upgraded forecast from 3.1% to 3.4% on the back of expectations for higher oil prices. i think that with a solid earnings to help for 30% of the regional gives hope the markets can continue to perform. one interesting point, the dubai -- you are up 36%. still to come on the program. iran looks for out right health to become a major player. find out which companies are knocking at death's door. ♪ hoy s'oi gho, esak hoy s'oihoesakesak th la p hceot hkes. cthstcainus

first, being oil.ping into bear market territory adding more pressure on oil companies and refineries that may have thought the worst is over and even though there's no fed meeting in the u.s., central bankers from the world will be in jackson hole summit and grappling with issues like how to stimulate growth with interest rates near 0 and fears of britain's separation of the european union. yes, the brexit. meeting next thursday, governor carney is expected to cut rates and what the market is really focused is bank of england's new economic forecast which will offer investors a potentially bleak juoutlook and keep an eyen fed fund futures as expectations likely ride for a september rate hike and a lot to look forward to in the month of august, kelly. >> thank you. i wonder to what extent the gdp numbers, back ward looking and not that market sensitive but if the first half is 1% average, how can the fed raise interest rates? don't you think it pushes this out? >> this is higher. the consumer piece of

perspective if you will on the crude oil supply. oil year to date has had a wild ride as you know.of the year back on february 11, we have seen an enormous, 63% downs back in the oil prices coming into the latest inventories report. it is interesting to have some perspective. if we come back to the daily movement oil prices, if we could wring the chart up or take a look at the bloomberg to see it, we see a pullback in these prices and here is the light onn you would have expected the build and inventories. the decline is accelerating to more than 1%. numberely not a bullish for the oil prices. vonnie: and the stocks are now down. thank you. the lamarcus continue to head lower as inventory turns into -- preparing for major oil companies and in the markets. an interview this morning, alix curry from steph goldman sachs about supply and demand issues. have a listen. seen a build of product inventories, particularly gasoline and when we look at the context of the global market, you have got to ink at the context of ports nigeria and draws in saudi arabia. we estimate here in the second

domestic oil settled down at 44.19 a barrel. despite today's decline in prices, the world's two largest providers of oil field drilling services believe the worst is over. sh lumber shea's ceo said that we now appear to have reached the bottom of the cycle. earlier this week halliburton said the north american market reached its lowest point in the second quarter and that it expects modest growth the rest of the year. >> so have we really reached a bottom in oil? john killduff is here to weigh in and where he sees oil heading. he's founder partner of agen capital. do you agree with the ceo that we're at the bottom of the cycle? >> i think we're in a phase where there's renewed selling. will we hit the $26 low from february? maybe not. but there's incredible downward pressure again on prices because of record inventories of crude oil and refined products here in the u.s., record gasoline storage in europe and really a sloppy diesel fuel market in the asian market. >> why has there been so much sort of fuel in storage when product

wagon that would have been used to deliver products, various oil products for the standard oil company, and on the board we see various product packaging for other products that were made by or eventually made by standard oil out of the refining process of petroleum here in cleveland. standard oil, of course was formed by john d rockefeller in 1870 and quickly became one of the largest petroleum companies in the united states. john d rockefeller was a brilliant businessman that had moved to cleveland with his family as a young boy, grew up in the cleveland area in boarding school and eventually working in various companies in the petroleum industry until founding his own company, standard oil. from johnil comes rockefeller's idea and desire to standardize terracing. ne.terracing --kerose it was somewhat dangerous. there was no standardization of it. some of it would burn hotter and quicker than others and it would lead to fires and homes, so john d rockefeller was really interested in standardizing that in making a safe product for americans. that is really what he was able to achieve

ryan chilcote is here to break it down for us. >> we already knew oil profits follow oil prices.year on year so it was no surprise there would be a decline. the problem at shell was the production fell as well. they produced on hundred 20,000 barrels less than the market was anticipated. that does not sound like a lot when you are producing a few million barrels. at $50 a barrel, that adds up to $6 million a day. over 90 days, that is $540 million. that explain half of the loss. another big business at show is the gas business. that underperformed. really bad news at all three of show's businesses. >> they beat estimates. what is behind that? >> production is up. just 5%, but that helps on the margins. in addition, they are cutting costs. that is something investors love. target of $2.4 billion of cost cuts this year and say they will beat that target. >> all of a sudden, people question oil demand. do they have reason to do that? >> they have an underlying reason. if the world economy is sputtering, oil demand should be sputtering. actually, will demand has been robust given the

hitting peak oil and we would not be producing more oil in the future. but the federal government really never tried to increase oil production. it should not have been a surprise given all of the additional regulations put on oil production that it continued to decrease until 2007-2008 when the beginnings of the hydraulic fracturing tur occurred and oil production is up 86% now since the bottoming out in 2007. since 2010 alone oil production on private land has increased 113%. was it the rfs that created the changes? mandates? no. it was using oil from shell that completely changed the calculus. the u.s. oil production is booming. not because of the government program, not because of mandates but because of the free market. when high oil prices, people said all of these investments make sense. that was the first thing. the creators of the rfs, do not consider we could turn around oil production in the country. the second one is consumption. oil consumption seemed to be continually growing and it turns out u.s. oil consumption peaked in 2005 after the ac

and in five to seven years, we're going to need every drop of oil from those two, giant oil fields inng. >> the south africa, south america, one in guiana. what price are those profitable at? are they profitable right here? >> yes, costs have come down for drilling and developing these wells and then for the infrastructure, top side to produce that, some billions of dollars have been taken out. you look at bp, the mad dog ii project in the gulf of mexico, they've taken billions of dollars of cost out of that project. that makes these projects somewhere between $50 and $60 oil very economical, and gives them a nice return to their shareholders. >> how about onshore. you've got an example of trying to get a little more from mobi?l >> we thought this was possible. remember the recovery factor from u.s. shale is about 9%. by injecting co2 and loosening up more natural oil and gas, we can get that recovery factor to 13%, 14%, 15%. it helps in the of scoop and the stack in oklahoma. >> last question. you did say, listen, increasing demand, what gives you a feel even with cars that are using

we are some numbers from these oil majors.hey will be benefiting from the 25% increase in the oil price that we've seen. that will give some help to a company that has seen a two-year slump in oil prices. sectoro operate in this have had to delay projects and unlimited jobs, cut back on capital expenditures generally. what does all this mean for investment and dividends? b.p. has the option to reduce the dividend. they have voice plan to continue to pay the dividend and that is a top financial priority. we'll see if they move away from that 50 to $55 per barrel mark for next year. it may be crucial to make the sums add up. : global fund managers are looking at european equities for the first time in three years. have they lost faith in the region? managers arefund looking at european equity indices which are the world's biggest losers. the discount for european stocks relative to the u.s. has caused many global investors to not want to get involved with europe. last year's buyers were coming up just a little bit short. last ye

that oil has gone east, whereas we have a little bit less oil in the west. ryan: you mentioned u.s.ion. going from 9.6 million barrels to 8.9 million barrels over the year. what would it take to see production return to, you know, 9.5 million barrels? a day mr. taylor: it is a tough question. we are understanding the different economics for some basins. us tovery difficult for help your timing, certainly, you know, one of the reasons we very difficult-- for us to tell. certainly, you know, one of the reasons remain feeling -- they are coming back at different price levels. we're still learning a lot. we should ask the producers, who know them better than we do, but our sense is if you go back to 55, and you get to 60, you begin to turn the corner. ryan: and the 8.9 million barrels figure was from april. what do you see in may and june? mr. taylor: we think the number will come down a little bit more, but not significantly more. we almost feel we have approximately a stable state. i am always very nervous about reading too much into one month's production. [laughter] mr. taylor: this

>> record high, middle east oil output climbs as u.s. output slumps. >> the bank of england just hourhours away from its crucialt brexit rate decision. revamp.0 million fleet companyl's biggest saying it's rosy picture of its allergan deal. i'm angie lau in hong kong where it's just past midday noon here in hong kong. welcome to bloomberg markets middle east. we have a mixed bag in the asian markets today. , we it comes to volatility are seeing it in asia. a spot ofnding civility though, a bright spot. a little bit, angie. you've had that rally in asia. let me show you a chart that caught my attention in the last few hours. we've been keeping a close eye on developments in turkish stocks. there may be more momentum in the pipeline. basically equity investors are boosting their bets. turkish stocks still trading near the deepest discount since 2009. withumber of companies cell signals was 57. that has dropped to one. you're looking at signals waste on the moving average. what is playing into this, why are we seeing this momentum? number o