hot oil and asia. -- hot oil being an issue. someone who wants to work to bring the federal government to bear not just on leading oil, but in large part partner with oil companies. a curmudgeon, not so much a charismatic figure as henry luce might be, but buys into this vision of big oil and an expanded federal state partnering on an international stage. others of course are going to partner as well and help frame the initiative of the civil religion of crude. we can look to the rockefeller family, especially john d rockefeller junior. have talked a lot about rockefeller senior, have not spent much time on junior yet. it is junior that obviously takes over the family business after world war i. but he recognizes quite early on that his is not a gift for management. how do you follow in your father's footsteps in this case? this is when standard is being broken up as well into many parts. we see people taking ownership of standard new jersey. rockefeller junior channels his energies, as well as funds into philanthropy. this will

two sectors we have been looking at, major oil and independent oil. this is a period in which the nation itself is kind of awakened to a new role in global politics. in 1941 it was stated that the u.s. was entering a new era of global leadership. it was the american century dawning in the early 1940's and playing out during world war ii. we will look at at how oil combined with religion helps create competing visions of american in authority on the global stage. if you recall prior to spring break, we had been spending time in the interwar period, looking at oil and some of these scandals that are murdered -- that emerged. we look at the competition of corporate and labor politics at the time, challenges that arise from surplus in terms of regulation of oil. period,n the interwar u.s. oil is going through fits and starts and difficult circumstances. nevertheless, as we are proceeding today, we will see that despite the fits and starts, the u.s. sees its oil initiatives expanding rapidly. that will accelerate into the 1940's. just soou an outline you a

oil statistics really show that oil production on public lands is up 59% since 2008. offshore production is at a record high. companies have more than 7500 approved drilling permits that they're not using and 26 million acres of public land under lease to be developed. shows you from 2008 through right through 2015 the federal onshore oil production and how it's increased every single year up to 2015. and 2016 was slightly below 2015 but above all the other years. so in closing, i just want to say our new quest for energy dominance, whatever that means, means that never -- nothing is enough. we must do more. hunting, fishing, camping, hiking, boating, offroading, grazing and all the use of our public lands are now second to second class oil and gas is dominant. so, mr. chairman, we have an opportunity on this subcommittee to ensure that energy's policies reflect the multiple uses of our public lands for the benefit of all of our constituents, not just the special interests of a few billionaires. mr. chairman, i just want to say in closing, i understand your desire tha

mentioned about the oil this we just crude oil in the world sometimes you get stories about oil but the real story about oil is this very deep one that we all take for granted that we will buy oil from whoever can seize the wells by force now that law makes no sense from an ordinary standpoint i mean if an armed gang takes over the shell station down the street no one thinks the british law should give the gang the right to sell off the petrol and heap of money but when saddam's hunta to go over iraq in a coup many years ago every country's law said it was legal to buy iraq's oil from britain supports it i would say you did it reverse good and then but let me just say when isis took over some of those same wells it became legal to buy iraq's oil from isis that's the law that incentivizes authoritarians and civil war years to take control of the oil over seas and that's what gives them unaccountable power oil is the largest source of countable power in the world if you can keep controls over those holes in the ground you get a huge funnel of money from the world and that money comes in w

or when they buy anything that's made for more oil were transported by oil. which is almost everything we buy but if our entire infrastructure is designed by politicians you know you'll be a little be a big fossil fuel going to blame us as consumers in the west for propping up the dictates is from saddam hussein to the gulf persian gulf a doctor says surely no i don't blame consumers of course we don't want to send our money to ruthless autocrats and violent civil war years and oil producing states the problem is deep the problem is an old archaic law left over from the days of the atlantic slave trade that forces us to send our money essentially to whoever can control by force in foreign countries this old law in every country says that for the oil of other countries might makes right so for example years ago when gadhafi took over libya in a coup british law said it was legal to buy libya's oil from get off the and then years later when rebels took over some of those same wells british law every country's laws that it was legal to buy libya's oil for the re

wall street bought a tremendous amount of oil betting on higher oil prices.reet did was over emphasize opec spindly ability to dictate price and what they did -- opec's ability to dictate price. specifically united states becoming the world swing producer. there has been good cohesion on production quota, when you look at opec, much greater than historical norms, but to that point, you have libya and nigeria, where production has been very strong and they are not the holding to the quota. you juxtapose that with rising shale production and to a greater extent, opec's ability has been minimized and hence, where we had these lower oil -- the demised. hence, why we have lower oil prices. vonnie: how far can that rise? pointt is an excellent and part of what i said before how the narrative has been turned over its head year-over-year. counts wereil rig down 80%. they had lost more than 1300 rigs since the record was set in fall of 2014. since last summer, those recounts are up -- rig counts are up 140%. we had 1300 rigs exercised out of the market and have only a

oil producers who continue to it being cash negative. everybody loses money at $40 oil. saudi arabia, nigeria, u.s. oil companies, everybody uses that loses money, and we still see increased amounts of reduction from most of the major oil companies here in the united states, and when they cannot drill a well, they put it into storage in a duct, which leaves on thef excess inventory market for when oil does rise. every time you see a push forward in oil, they will come into edge and see some of these -- ductsockeds come into play. that negativity has caused oil to sink pretty strongly. >> this has been a big shift in the oil market, but someone is already ready to come in. you have libya, nigeria, somebody on the fringes coming in. it is it all shale at this point? >> what has changed over the course and were think i've gotten it wrong in terms of this particular oil bust, it is not like 97 -- 1997, it is not like 2000 seven. this wholesale reconstruction of the oil companies that we saw during the two previous busts, and a lot of these companies going bankrupt and out of

oil falls prey to the bears.de is down some 20% this year, despite opec's attempt to prop it up. and it could have further to go. plus... on edge over brexit: germany's industrial giants fear for the future of their multi—billion dollar uk market. we report from the port city of bremen. welcome to world business report. i am rachel horne. we also have the story on the excessive borrowing by china's biggest companies. we start with the price of oil, because, once again, despite the best efforts of the oil producing nations to prop it up, it is on the slide. let's show you what's been happening. this week the talk‘s all been about this guy — he's back. traders refer to a "bear market" when the price of an asset falls 20% from its recent peak. it often signals a loss of confidence and further falls to come. since the start of the year, crude has done just that. it is down over 20%. it was $56 per barrel in january, and it is down over 20%. it was $56 per barrel injanuary, and is now below $45 in the middle of this w

biggest picture here is oil, oil, and again, oil. it is the case for the fx traders. out imagine the correlation that would matter is oil. will likely bely sold. we will maintain a cautious outlook for oil in the near term. i am trying to dig deeper to get through all the results to see exactly what that means. how do you view this inflation and? -- inflation? >> the main problem is the implication of what it really says. the norwegian central bank is tentative as attentively, rather than on the caution. pau: very much, oil will tends to this on the way down. it is not about opec anymore, rgisbout how many shale are functioning -- rigs are functioning in the u.s.. only now, we see what has been happening over the last six months. francine: thank you so much. they are staying with us. we heard from the bank governor, mr. olson, saying that the key policy rate will remain at today's level in the period ahead. maybe that is one of the impacts we are seeing on the currency. that is get straight to the bloomberg first word news. here at sebastian salek. sebastian: the firs

oil driving higher after a drawdown in the past week. oil has entered a bear market. are the numbers enough to get oil back in the green? uber is currently without a driver. travis kalanick has resigned as to investors turned up the heat. what will his absence mean for uber's business? let's have a look at where european equities are trading just under 30 minutes to the close. i wouldn't equities in a second. i want to look at sterling volatility. we have seen the pound spiking after in pc member said -- after mbc members that he could vote for a rate increase as early as this month. sterling set for the biggest decline in a week. usually on the mpc.dovish side of the you can see it rising at the end of the chart, hitting a ties level since april. action at gilt, more on the front end. we have seen the front end of the two-year get yield rising eight basis points with a 10 year yield rising for basis points. here i have shown the curve of two verses 10, you can see the flattening off. it is certainly at its flattest level of the year since november. we will talk about

oil prices fell nearly 4% on u.s.nventory data for gasoline showing more supply than expected today things stabilized. wti 44.7 flat at this hour. ten-year treasury note, we got that 25 basis point hike we saw the dollar and yield curve slip a bit ahead of the decision it recovered some ground afterwards the low on the ten-year was 2.10 now 2.14, but lower than the 2.2 level we've been around for the prior week. >>> shifting the discussion to stocks in asia china's central bank leaving rates unchanged despite the fed rate hike. back in march the peoples bank of china uped its overnight rate hours after the fed raised rates. this time not the case the shanghai closing flat. hang seng down 1.2%. the nikkei down 0.2%, this ahead of the bank of japan meeting tomorrow in europe, the swiss national bank announcing it is keeping interest rates unchanged the snb believes the swiss franc is significantly overvalued. swiss franc up 4.5% against the dollar year to date. the bank of england policy decision is due at 7:00 a.m. eas

oil driving higher after a drawdown in the past week. oil has entered a bear market.rs enough to get oil back in the green? uber is currently without a driver. travis kalanick has resigned as to investors turned up the heat. what will his absence mean for uber's business? let's have a look at where european equities

a month ago oil around 752.s minyan and now the stories are all about overproduction and world imbalance everywhere. scarlet: for our equity week in review, we have achieve equity strategist for bloomberg intelligence. i want to start with a chart here that picks up on joe plus point, which is oil pieces and the affect its head. line is wti. clearly investors are looking past drop in oil prices, new bear market in oil prices. could this signal the commodity is not a meaningful indicator for you. we go back to the trend that was in place before the financial crisis, similar to the late 1990's when the two could move in different directions. is this a shift? straight it'sis been going on for much of the last several years. if you go back to the 1990's when oil prices were $10 a barrel and the s&p energy sector was about 10% of the index, oil prices could move on any number of days. they have in the period of 1996 yto 1998. i think we are in a similar situation today. we've already been through our oil prices and b

we started one of their key oil fields.upt some of the ambitious plans for the plans for survival that opec has? that,hink when we look at we have every right to start to pick up that production. as with nigeria, nigeria has concerns out there are in their coming back to the table. i think when we look at the supply, there were various carveouts. it is interesting to see nigeria in terms of its apply and it increased supply. it, you can see that we are expecting more to come online. the price of crude has are restated up relatively well. i started to question how long is likely take before we do get a quick selloff to the outside. about's talk a little bit the isolation of qatar. we do know that the scope of the qatar shipping been has been fluctuating a little bit. qataris a restriction on muscles and also more general bands to have all ships car. what is the risk that your hearing there? just given the fact that most make stops in saudi arabia, what would be the impact of the oil exports? >> when you look at it across the

the crude oil stocks that make money from crude oil being higher were getting hit worse than the commodity itself. we think a lot of the fast money right now is betting on a rebound. i know tom lee has made a similar call. and it's a little bit of an outlier but that's where the big institutional money, sue, is going right now, into big stocks like exxonmobil, which i do not own, but that group, including fracking stocks which were down harder but we're betting on a rebound. >> the steel sector is much smaller than energy, your choices as an individual investor are more limited. >> these two, i own both of these, u.s. steel and ak steel. u.s. steel is symbol x, ak steel is akx. both of these have been seeing some decent money flow after a big selloff. they were betting on the infrastructure spending that president trump talked about. it didn't happen. they came all the way back down to where they were before the election. now people are betting maybe something happens in the second half of the year and they want to get in for the last month of the second quarter. >> so as we say, this is t

so much to cover today from oil to saudi.u are a bloomberg customer, you can watch the program using tv . as well as the video stream, which is the most important part, right, seeing the two of us onscreen? [laughter] matt: you see the information you can get out of the bloomberg terminal. the charts that we use, the functions that we use, all on the right side of your screen. the guest am, ask question. you can put in a question to peter. click on that link and our producers will patch it through to us. guy: you can also find us on the terminal. matt: you can i.b. us directly. saysrobert kaplan shrinking the balance sheets should start. the u.s. yoga, flatter. all of that, next -- the u.s. yield curve, flatter. all of that, next. this is bloomberg. ♪ guy: matt has gone shopping. can i explain why? let us take a look at what is happening with the pound. we are 126, the cable rate. you are an american and you get the option of doing it by euros as well. matt: it looks good to me. while i am here in london, obviously. to be

we start off with oil.ur next guest said to buy when oil hits 40 bucks. >>. >> they are a trade. we were on saying these stocks were a buy in low to mid-40s on oil and a sell it's just there's an opportunity >> so, julian is back. do you buy stocks now that oil is low >> if you believe that either the economy is about to slow down in a significant way, or you believe that there isn't likely to be any sort of incremental supply response as oil moves towards 40, you have to look at the sector again. we go back to this entire idea that again, supported by you know, an oil price that we see as range bound and when you think about it on a broader index level, the fact is that the energy sector is now trade near an all time low as a percentage of the s&p 500. so, we think there's an opportunity. >> why should we believe oil will go higher we're at a time when we've seen two o cuts and oil is back to where we were prior to the november opec cut. then also we're at a seasonable period where oil should be strong isn

lauren: oil prices hitting a 10 oil yesterday continue to fall today by another time. $42.44 a barreltrain to tropical storm cindy turney deadly. we will have a live report from louisiana during the hour. drain three who will be the next ceo of over? charlie gasparino to replace travis kalanick. train to the new york yankees sending their losing streak. in basketball, big news for the nba draft. we will tell you what teams are making deals. lauren: 5:01 a.m. in new york. good morning. i'm lauren simonetti. cheryl: i'm cheryl casone. you are watching "fbn:am," your first look at morning markets and breaking news. and whether in politics. lauren: senate republicans will unveil their version of the new health care bill this morning. the measure to rollback the obamacare expansion of medicaid and penalties on people not buying insurance coverage and eliminate taxes to help pay for obamacare. cheryl: in cedar rapids, iowa, president trump seemed optimistic about senate bill. >> we have a very slim 52-48. that means that basically can't lose anybody. i think it may help, can't guarantee any

for the longest time, opec and oil producers, they benefited on this lack of transparency in the oilody knows exactly what global production, what global demand, where supplies are everywhere in the world. is the mosthe u.s. transparent market in the world as far as data. fastest growing production, it is the last place in the world that supplies are going to draw down. saudi arabia says that everywhere else in the world except for the u.s. is -- crew supplies are drawing down. people want to see it in the only transparent market available and it is not happening in the u.s.. it is a catch-22, opec used to do -- benefit from this. they are not be squarely hurt by it. >> i know you used to be in houston, you know that the shale story is as much a story about capital markets and lose finance conditions as anything else, what are the chances? give us some color on what the finance picture looks like for shale drillers, are investors ready to put their money in these companies? drifting oil prices toward $40 per barrel? this was right after the financial crisis hit the u.s., people were

after taking heat on oil prices.ech the second-best performer on the s&p, helping the index close pretty much unchanged. dow industrial average down about 57 points. sectors in the s&p down 1.6% on the fall in oil prices. let's get to first word news with courtney collins in new york. courtney: brings it dominated -- brexit dominated the u.k. program by theresa may. thew bills to ease withdrawal from the european union. it telestrates the prime minister's weak position since the snap election, forced to ditch unpopular proposals and sticks to bills she thinks she can win in parliament. the saudi stock exchange market jumped the most on three catalysts. the promotion of the king's son to crown prince. previously enacted benefits would be restored to workers for the state. banks with the biggest winners, although all members of the index advanced. the mexican finance minister says the central bank is probably near the end of its tightening cycle and may be able to cut rates by the end of the year. told bloomberg inflat

crude oil falling again.out a note saying, can we just summarize your note? >> go ahead. >> too much darn oil >> there is too much oil these are reasons, traders are getting very nervous here. reports that libyan production is going to continue to go higher libyans are ramping up also that nigeria is ramping its exports these are the two countries we've been watching for some time that inventory report, less bullish than it seems. a slight draw down in crude and gasoline but not as steep as we would expect to see at this time of year. finally, some headlines coming out of reuters that opec delegates are dismissing the idea of deeper production cuts so actually down to a session low of 42.13 ten-month low. can you see here we bounced from there. but still 2.6% drop. back to you. >> jackie, i have a feeling we haven't seen the last of you for a while. now a cnbc update with contessa brewer >> house majority whip steve scalise has been upgraded to fair condition a week after being shot in northern virginia durin

the price outlook doesn't oil.oil very shortly. let's get the bloomberg business flash with juliette saly. juliette: the foxconn chairman has vowed to press on with the bid for toshiba's semiconductor business. the deal could cost $27 billion and ushered them into the memory trip business. he will decide by next month on which u.s. state will be the location for a $7 billion this lay making plant. tokyo ins plummeted in the first trading on the stock this week. there were reports it was planning to file for bankruptcy protection as soon as this week. it would pave the way for its takata,the airbag maker who said no decision had been made on the bankruptcy filing. wants ordersing and expressed some interest for 420 planes were as much as billions of dollars. playmakerse u.s. first entry in five years in the aviation industry's annual showcase. frankfurt ascked the headquarters for it european union operations after the u.k. -- they will start preparations this month to form a base in the german financial center. the

they talked about oil stabilizing and going up only when the deep water oil wells begin to run out.e are no new ones to take the place. when it comes to supply and demand, schlumberger knows more than anyone. they saw the downturn in crude coming, saying, there is no bottom coming in 2017. if you wan the to chart their words, take a look at its stock which took a downturn when it refused to call a bottom on its conference call. that's unlike everyone else in the industry. why? the real deep water wells, the ones that have far more capacity to produce oil. the single good shale prospect today are still in fabulous shape. there's been no need to drill new ones. worse, even our own country, the big offshore wells are producing monster amounts of crude right now. the ones that were drilled off the maconda oil spill -- that's almost 300,000 barrels a day more than last year, you want to know where that glut is? there you go. you may think we can put back on production at some point? the opposite is happening. the one thing that's in the oil bull's favor, and schlumberger has been telling

so, you know, you can love oil and embrace coal. think truly will come to pass with the markets and these names that our investors are watching for? >> well, i think the thing for the investor to look at is which is the company that's using technology to lower their cost? it wasn't president obama who developed the fracking and shell revolution that was industry that did that. and now, you know, what president trump is saying is we're going to kind of help that along by, you know, getting you the tools that you need to lower your cost. when he talks about the pipelines and the natural gas export facility, that's enabling the producers to get the market overseas, which is going to help with u.s. influence overseas in the geopolitical sense. so he's looking at it, if you will, from in the ground to the wellhead through the midstream to the export facilities as this big issue worldwide to make america more influential in the america markets. liz: well, we want to thank andy with your brain and all the oil knowledge. we appreciate it. a

they continue to tie in versus the oil price -- tighten versus the oil price. going on here? when i look at this chart i think reach for yield. there is probably a case for that. it is a dilemma we have worked with your it -- worked with. we looked back at prices at the end of 2013. you look where the prices are now. points whereasis they were previously. other than saudi which is 20 basis points wider. what you had is a deterioration in oil prices from 110 down to -- wet the prices have see this as a consequence of the global liquidity in the market. that liquidity is spilling over into the region as well. what you are having is credit , thenglobally compressing gcc follows that, notwithstanding what we see as a steady deterioration in the environment in the region. that is the dilemma where we have credit space getting tighter and tighter and oil prices are significantly below where they were back in 2013 and 2014. you also have to think, back then they might've stole some contagion from the arab spring. see,ugh we do not politically much of an improvement in

oil fields.think about that on new production, that was -- represents about 100,000 barrels of new oil a day, just waiting to spring into the market. think of it like a spigot just waiting to turn on to flood the market. -- flood the market yet again, as soon as it starts recovering. yvonne: is this decline about supply? we are heading into the summer driving season. we should enjoy the warmer weather. lynn: you are absolutely right, we should be driving around and taking road trips. that is usually what we do this time of year. but, the government data is showing that our demand for gasoline is falling this year. it is well below your earlier levels. at least in part, that is because punk prices are higher pricesey were -- pump are higher than they were a year ago. we saw them average $.40 a gallon above what they were in 2016. gasoline demand, which will in turn cap the crude demand that the refineries here. many road trips this summer. thank you for joining us live from san francisco on the oi

that could bring oil prices down to $30 a barrel. galp, given a year or so, will look impressive. wlofrnlg >> who don't you like in the sector >> we downgraded bp to a sell. stat is also sensitive, and exxon. i like shell, i think shell also will struggle to perform with these headwinds. >> great speaking to you you stay there, we'll get you out ochtd stf the studio in a f minutes time we are at wall so we can graphic i will shly graphically show yos going on ian reid, thank you very much. >>> a lawmaker from northern ireland's dup says he believes there's a good chance his party will reach an agreement with the conservatives by next thursday jeffrey donaldson said talks to form a coalition with the ruling party were progressing well. the uk chancellor echoed that sentiment saying he's confident the two sides can reach a deal the dup are one of these tough, tough negotiating northern ireland parties, a bit like sinn fein, they have years of tough negotiating. that's why the british government is finding it hard to nail them down >>>

oil falls prey to the bears. crude is down some 20% this year — despite opec's attempt to prop it up — and it could have further to go. also in the programme, we'll cross live to asia where the world's biggest bank has moved to calm fears over the level of debt held by chinese companies. it's caused some cautious sentiment on the asian markets that flat lined up on the asian markets that flat lined up the end of their trading session. here's the european markets at the start of friday. and we will look ahead to wall street as well. the british prime minister offers to ensure the post—brexit rights of three million eu citizens living in the uk. later we'll have a wrap up of this week's big economic stories with our correspondent andrew walker. research in the daily telegraph has found well—qualified people who voluntarily talked about theirflaws injob interviews were more likely to win the role. today we want to know, what are your weaknesses? being gay perfectionist is not allowed! get in touch — just use the has

just said, libya is producing more crude oil, you've got nigeria producing a lot more crude oil.clearly producing more than we have ever have and will be producing more six months from now and a year from now than we are producing now and the problem will be with the fact the new saudi crown prince, a very smart guy and fellow we need to keep our eye on, because i think he's going to be one of the most important people over the next 20 years, has been in the past told you that he understands that crude oil over the course of the next 20 to 40 years is going to be a worthless commodity. it will be supplanted by something else, a new technology, and he continues to supply crude as he can, so opec as a force to be reckoned can. i think its era is passed. crude is a little oversold -- yeah, go ahead >> just on that point, all right, this is also the crowned prince who is in charge of the aramco ipo, so he has a good incentive to keep the price of oil higher, no he'd like to keep the price of oil higher he wants to sell to somebody else because he understands 40 years from now aramco

with a look at what low oil prices from the move in oil. lauren: a new report shows that test for self driving car is not to blame for an accident that killed the driver last year. cheryl: amazon jumping on the try before you buy a bandwagon. but guess what, there is a hitch. lauren: thoroughly says. los angeles dodgers overpower the mets ahead of the nba draft. train to 85:01 a.m. in new york. this was a come at june 24th. i'm cheryl casone. lauren: i am lauren simonetti. you are watching reporter, your first look at morning markets and breaking news. train to breaking news this morning with a major shakeup at uber. kalanick with the major shakeup. lauren: tracee carrascas joining us. reporter: txo yesterday came under pressure after hours of drama who felt time off wasn't enough. after millions of dollars into the company and seen the valuations swelled to 70 billion, leading the charge, wanted to pick a shareholder, a benchmark which one of its partners bill burley is on uber's board. kalanick to step down in the letter delivered to him

the world's biggest oil producers tried to fix the problem, but as jackie d the fg cracks. >> crude oil lower again on concerns about oversupply, which is not what is supposed to be happening now. opec is committed to cutting output this year, but some member countries like libya and nigeria, are cheating. >> i think there's a couple of different reasons for oil decline and they can't all cull min nate in the perfect storm. first, is that opec didn't have the control they once did, so when b they agreed to production cuts, they declined. then i think the market believes opec members would become frustrated with the situation and that exacerbated the move lower. we've talk about for year, , t. everybody is talking about the bearish reasons for crude to go lower. i'm starting to worry about this now because it seems like it's on one side of the boat. >> adding to the prrk, demand is not rising and it should be this time of year. over is 00 degree temperatures on parts of the west coast combined with continued rain on the east coast, keeping travelers at home. finally, north american produ

the oil futures now do that too. but oil futures now trading a gore rhythmically.t kind of trading freaks people out and causes more trading. which cause everything to get hit. while it's true that the opec production cuts haven't done anything to stem the glut, the demand for oil is not declining as the bears would you have believe. do you know that 22% of the power in texas is being replaced by noticeable wind the depletion of oil wells is receding on a pace. big products may not have been replacing their production, but sooner or later they're going to have to, but not yet, because prices are going to rally. but every time oil approaches $50, the american oil companies start selling those futures. rusty points out that future out five years still show futures at $50 a barrel in oil. if there isn't more drilling away from the u.s. soon, that glut is going to disappear by next year. which brings me to the oil stocks, if you look at a lot of the big ones in the oil service industry if the stock is at $43 it will make you money although the long term downer will mak

you have oil at 48 tenths.hen it comes to political risk and markets, you have record highs industries, being repressed everywhere around your markets. however this is 5100 volatility, relative to the european. stocks ftse versus euro 50. it's ratcheted by 60% over the last week, the highest versus the european peers in nearly two years. that gives you some kind of sense of the angst that we perhaps belie the headline index that you are looking at here thist it caught my eye morning what jeffrey said, it's a conservative collection to use -- to lose and they are doing their best to do so. making a point that there was one phrase that will resonate, enough is enough. i reflected on the polls that showed in terms of the trust factor, qataris have that relative to the labor peers over the last couple weeks. of 1%, i am off to digital radio with airline had cap. >> thanks manus. dab digital is really focused on capital. there is an interesting thing happening in the market, different sitting between oil companies.

that should help oil.t time we had this big decline, it was at the end of an eight year war between iran and iraq. it magnifies the fact that investors are so focused on the global supply glut. relative to the near term, we may be catching a breather here. hop into the bloomberg and take a look at g #btv 299. this is a one-year chart of oil that comes from a bloomberg commodity strategist. it shows this moving trading range. right now, we do appear to be bouncing off the top of it. i spoke with mark newton and he said that the near-term looks bullish. he thinks we could see a little bit of a pullback, something that both aspects would be supported by this moving range of oil. mark: despite the recent rebound, there are still challenged with where to put their money in the era of low prices. jason kelly is joining us now with perspective from one of the world's largest energy private equity firms. we are joined by alex kruger, the newly appointed ceo of first reserve. great to be with you coul. alex: thanks

tonight oil takes a dip again opec has shifted into high gear with its cost american producers have gone in the opposite direction and our heads are spinning as we enter into the summer vacation time as families everywhere hit the road also boeing debuts a sleek new model and calls it the wave of the future only thing is general electric says it's not into supplying its engines also driven to distraction my guest brian pruitt a contributor read say break sound the most expensive u.s. house race in history is taking place today we break down the local national and international implications of this and how it's distracting lawmakers from actually getting business done in the nation's capital to stand by the us starts right now. in the broadest measure of trade the u.s. deficit hit its highest level in a year according to first quarter reports the department of commerce says the deficit rose to one hundred sixteen point eight billion dollars in january in the january through march period that's a hike of two point four percent from one hundred fourteen billion dollars in the last three mon

of oil.he airlines are all down. you almost think it starts to hurt the portfolio, even if they don't own oil stocks. >> yeah. at some point that's true. i do believe this whole thing about oil is supply related, not demand related. and you're right. some of these issues are down. it flattened the yield curve, dropped expectations. i mean, look at the numbers around the world. they've been all very good. at or above expectations except for the last three months. inflation numbers have been seriously low. so that is worrying. but the stock market doesn't seem to care, and you also have to realize that there's no new news about oil. it's all the same old recycled news about opec's relevance and opec and russia and the u.s. becoming more efficient with high inventory levels. so the market doesn't seem to care. i mean, some day i guess it will. but i still think there's reason for this market, oil market to go higher, and i've been saying it and elliott's right. i just think right now -- >> you'v

oil prices front and center.hose low prices a drag on energy stocks for sure also keeping yields lower. wti, 42.44, down about 0.2%. brent crude below $45 a barrel nat gas higher this morning. >> that meant energy was the worst performing sector but only just beating banks in terms of the under-performance. energy down 1.6% banks down over 1% focus on them again today ahead of the stress test results asian equities at this hour, mixed performance. china had a tough day down about a third of a percent the shin zen com shenzhen comp . european trade is soft across the board today. oil prices falling yesterday down about 0.6% for france and the uk germany outperforming. only down 0.3% >> the broader market picture. treasuries this morning. mentioned lower yields 2.14 on the ten-year yield buying of treasuries the bond market is not buying the inflation story the fed is trying to tell it's oil and commodities across the board. kit juckes of socgen pointing out cocoa futures are at a low as well. there's the ten we're

the oil movers on the day, we will see the oil is down. slightly down by 4/10 of 1%. after the inventory report where there was a bigger brought down the expected, initially oil spiked higher but at this point investors will focus on u.s. production. that will focus on the energy related names. we have a lot of downgrade. one of them i want to focus on is 4.7%. this is global securities, cutting stocks to a cell. i spoke to rebecca friedlander and he said it had to do with takingt that people were their oil down to $40 a barrel. basically on u.s. production concerns. and that is the most bearish call on the street. we do see some of this red activity, the selling activity once again for the energy sector. turning to what is helping the nasdaq, let's look at the big tech names. microsoft and facebook rating higher, both of 7/10 of 1% or more. nothing to specific fundamentally but a little bit of a rebound from yesterday. and we have anz, up nearly 8% for a second day in a row. ing is really benefiting from the fact that they have launched a server for rothwell in compe

joe: i am curious,conor mentioning oil -- i am curious, conor mentioning oil.is the relationship between oil and equities mean these days? ben: the big thing is, why are the oil prices rising? if we have higher inflation, that could take the equities market down. not many people are preparing for that these days. forof the worst periods 1992.managers was 1986 to stocks were still up 7% nominally, inflation took away the entire return and that period. if oil prices are rising from higher inflation, that could be a key risk to the market. joe: conor, what is your read on inflation? we have talked for a long time about generalized inflation or raise -- wage inflation. it tends to disappoint on headline numbers. do people need to change their models or is it a matter of getting the time wrong? conor: we are seeing it on the unemployment rate. we have not seen it, or there are mixed views on wage growth. after that would be inflation. the next phase of the higher wage growth and lower profit margins. if we see that pressure, it would give the impetus to corporations

we have oil down 2%.from the very highest despite the the february market report could have been considered bullish. nonetheless, investors still a little bit nervous. energy.chesapeake increasings citing liquidity concerns versus liquidity inventory. analysts think the stock has more than 30% downside from the current level. love this chart. we hop into the bloomberg. it is the one your chart. the moving line here is the 33 day moving average, something not too long, not too short. we can see that oil has been trading in this range. right now, we are at the bottom of this range, suggesting traders are going to step up and desk intoill see oil the top of the range. >> thanks for that. now let's turn to the latest on uber. resign overick nine. replace david joining us now, cory johnson who is in san francisco and bloomberg new -- newcomer who broke the slightest news. the -- it help about bonner been is the cofounder of cpe. he is someone who can step in and hit the ground running. he was the first person

production is up in the states especially you're looking at oil rigs popping up everywhere just. when you look at the past few weeks the number of rigs that have gone up we know that there are over seven hundred and it's been a steady increase of most more rigs we've seen gone up in the past thirty years so this is something that we haven't seen in a while of course this production puts a little bit of a monkey wrench in opec plans to lower oil prices by lowering production and then when you look at non opec countries such as nigeria also pumping up their production well then you really have a problem and with so much oil on the market obviously prices are lower all about supply and demand of course it is one of the things that's interesting too is that people cite libya as having as political strife that so many of us know about. that is exempt from these rules some nations have written off that nation. as having to sort of go along to prevent what's with the oil come back there never mind people just written off libya right now when. it's this when you when you look at libya i

>> i would say at current oil prices it doesn't justify it. you can push back some of those marginal frontier projects. >> what price do you need? >> 60 or above certainly. >> let's talk about other commodities. do you think this will have a knock-on effect for the likes of coal? yesterday in the u.s. we saw coal stocks jumping on the back of this. is this a reaction that has legs, that is sustainable? >> it's interesting, because the u.s. we're getting energy supply response from oil, from gas, and coal. still coal is the marginal ton. we're seeing continued-goal to gas switching. you're seeing switching to gas away from-goal. international markets do not need coal. european coal imports are likely to fall by half over the next 18 months as we have a lot of lng coming in. it will only price somewhere with the carbon tax that has to be europe. >> is president trump diluted in thinking he could kick start, we start the cole industry in the u.s.? at some point he has to deliver results, and in the form of jobs. he's promising thousands of new jo

it could have led to a spike in oil prices because it isa led to a spike in oil prices because it isupplier— nearly 27 % of supply. since 2014, it has been a bearish. 20 of stock in the world, oversupply and in this case the biggest concern for the market has been that this might derail the agreement with him 0pec and curtail supplies. some saying it will not because production capacity of qatar is 600,000 barrels per day. because production capacity of qatar is 600,000 barrels per daym because production capacity of qatar is 600,000 barrels per day. it is a very small producer. the bigger danger is the cohesion. it is difficult for 0pec danger is the cohesion. it is difficult for opec to cut supply. if qatar has a retaliatory measure and walks out of the deal and some members decide to do the sake but the likelihood of that is very small. if that happens, at which point we see a spike in oil prices? i think the saudis would step into a short. —— ensure. they would make sure it is not derail the opec agreement. but there are always factors in the market. let's say violence breaking o

petersburg talking about oil trying to figure out if they can cooperate and manage oil prices.w is starting to through the pipeline the previous administration blocked. more supply delivered cheaper. the interior secretary started signing texts that say let's start explore for oil in alaska again. those are two long-term macro supply trends not supported for the price of oil. we have been about $50 for the last two years. that might be the high water mark. vonnie: are you saying those projects might have an impact on the price of oil in the near term? >> in the near term, kind of. there will not be supply disruption and u.s. oil will continue to flow. it is more of a macro supply story. the demand side is not good at all. the bond market is telling you they do not think there is growth, inflation, and they are not sure there is global recovery going on. bond prices are rallying. the demand side does not look great and there's plenty of supply. vonnie: is the market anticipating a grind lower or will this be the bottom falls out of the price at some point? >> i think it will be

state law now requires new oil wells be drilled at least 500 feet from homes.a mckenzie, a professor at the university of colorado school of public health, has been researching this for years, and she says it's not drilling new wells near homes that's the only problem. >> it was actually more common for homes to be built near to where an oil and gas well already existed rather than an >> reporter: in fact, inside energy analysis has found between 2010 and 2015, the number of people living in areas with more than 10 wells per square mile increased by nearly 50,000 in colorado, most noticeably along the front range north of denver. and while the state mandates that 500 foot setback for new wells, there's no state regulation for how far new homes must be constructed from already-existing oil wells. laura goodwin says she bought her home with the understanding that utilities and oil and gas companies were doing everything they could to protect nearby families. >> that's why they get to drill, that's why they get the oil, that's why get the permits-- because they ar