half of that is coming from opec i'd like to see us gets off that opec oil, but we are -- we're importing about half of the oil we use. we use about 18 million barrels a day, and half of it is imports. so you look at where the imports are safe. go ahead and wrap it up and do a norse american energy allyian, and then you can get rid of opec. you don't have to have any concerns about it. but it still gnaws on me that buys oil from opec, especially that out of the mideast, and now all of it is from the mideast. >> could this situation end up blowing up opec? as we realize to your point that you've made many times, that we need the security -- could russia implode opec? >> could they implode opec? tell me how that would be accomplished. >> basically the u.s. would start torts that security, energy security, to your point, is that vital, and that we would then accelerate oil and gatt production, thus eroding opecs oil influence? >> well, there's no question we're eroding, i think opec influence right now, we are starting to see that adding a million barrels a year is -- a day, but i mean year

enough, what opec means for the u.s.er is, 10 years ago when oil prices were shooting higher, it was great for me because i got to go to cnn every opec meeting. for got to go to vienna every opec meeting. now i get to go to pittsburgh. not that there's anything wrong with pittsburgh. you in studio.e thank you for explaining that to us. >> coming up, from hollywood hot wheels, and movie producer who was going to build his own cars. you can buy one if you have enough money. ♪ >> last reagan's car options have pebble beach failed to deliver new record price for the ferarri gto, maybe because of an action. they did not even produce a sale from steve mcqueen plus porsche. what does this disappointment mean for classic cars as a hot new asset class for investors? for the answer, we ask wall street's most noted car collector. he is building his own cars with a new company. thank you for joining us. it is a one off. an internet legend. but you actually have two versions of this ferarri. whiche the road version is beneficial one

i think the kind of bought short happened in 1970 and 71 when the opec stand broke up and bangladesh was created that the united states is winning the cold war. it may have been possible for india to get over the soviet union and counter to china and focus internally in the 1991 forms as you know enabled india to go from a statement nation even those democracy to becoming a high-tech power in the world. >> there seems to be two ways to get rich in the world. one is the epic of conquest take it from somebody else any others epic of wealth creation. >> you have approximately one minute left with this witness. >> very well. you think the chinese and russians and other large powers in the world even though they have benefited from the ethic of wealth creation have given up on the epic of conquest? >> sadly in the case of russia does not appear to be the case. the economy which started to show promise in early 2000 is now is john mccain pointed out that gas station depended most solely on oil revenues than they do think wrapping territory is the way to make themselves a great power. this

opec doesn't have as much market power as it used to.han it used to because u.s. and canada has a lot more. >> all right, keeping and i out for us on why the world is awash in oil. you so much. we are back on the markets went to begin -- once again in 30 minutes. "market makers" is up next. >> sales are stalled in 6000 workers are losing their jobs with cisco. you'll hear from the ceo john chambers. >> lights out in atlantic city. how the resort town has gone from gambling mecca to mess. -gen, thehem the post generation after the millenials. likely to change the way retail and tech do business. it is "market makers." i am erik schatzker. >>

the opec ceo. dana heinz, glad to have you here. .haron baron bok [indiscernible] is that even close? >> [inaudible] >> beautiful, better than close. the nigerian minister of power is here. the gabonese minister of energy ,nd hydraulic made -- resources we are glad to have everyone of you here. on behalf of nancy pelosi, the democratic leader, and although he has not empowered me to do so, on behalf of john boehner -- [laughter] [applause] but then again he is not here to say that i can't do it. so, we welcome all of you here. i want to welcome all the u.s. ceos. ceos, glad you are u.s. we want to tell you that and want you to remain that. thank you for your introduction, representative. and thank you for your work. george, i was going to tell you a funny story. i was six years old. it was summer. we were at the beach. the mother of one of my little friends came up to my mother and said -- jean -- my mother's name -- what were you doing in africa when steny was born? my mother look at the other qui

you can see the nonmove, opec, the collapse in 1986, and up, up we go.et, that is the emotion, inflation adjusted, of what we're living. right there is where brendan bought his rabbit diesel. >> i have a passat diesel. >> excuse me. >> so with brent trading at 103, is there too much complacency being priced into al:? >> i think saudi still has buffer to react to additional supply losses, but we're getting close to the point where we loosen the big country, there's not going to be enough room to make up that shortfall. in some ways, yes. but then remember, monetary he'sing, all this big currency fluctuations, they've actually kept asset values pretty steady, and al: has also been very steady. when you talk about complacency, this is about volatility. volatility is low, because price movements are actually very, very low, and the market cannot price anything but recent volatile knit my mind. >> francisco, thank you so much, a primer on al:. right now, brent crude, 102.80 a barrel. >> coming up -- oprah to george w. bush have taken the ice bucket challenge.

they don't even bother discuss it with the rest of opec. that is what is known.you are seeing is demand. oil is dying.e of under $100. >> jobs. >> to 30. that is what you are looking for. the longest stretch of gain since 1997. the fed downgraded what they is.k he -- the rate the unemployment rate estimated to be 6.1%. >> is a function of the me sheen. -- of the machine. nine metrics and six are at prerecession levels. iag has reported results. $380 million -- 380 million euros. up from 245 same time last year. they are sticking to their 500 million euro guidance. they want to make this year, more million euros than they did last year. >> lufthansa cap there's. -- cap there's. theirs. billion by the end of next and -- next year. >> the other interesting thing is iberia. they turned a profit last quarter. not a lot of money. 35 billionit was a euro loss. >> of the low cost your -- airlines. versus 27 million for-profits. easterooks like the holidays were not bad. cost-cutting continues. they laid off a couple thousand people in spain to bring about these results.

then a huge percent of the oil supply so if we want the oil and back to the 90% of the oil of the opec then they call the shots. get out of israel, or we are going to cut off the oil. so we want a civilized plan or the alternative energy and oil production later down the road so we are not in the same situation in 20 years or back in thet the 1970s. >> and so what about you? >> well, it is amazing we are all on the same page here. >> yes. >> as it has been said, we only rely and consume about 4% of the saudi oil, but we have been working as a country, but the main concern here has to also be our european allies, because in europe, they are the allies and countries like france and germany rely on the middle eastern oil, a we need to help them to make a difference because china and russia are going to have huge, huge amounts of energy that they need to fuel the populations going forward and where is that coming from and how can we align ourselves to be secure in the future? >> well, i hope it does. and gary, k, you were in israel, and you said, let them keep it? >> yes, first off if thou

africa under president obama and every dollar invested by opec has sparked on average $2.60. there is no private sector investment. u.s. trade and development agency has funded over 100 projects expected to generate over $1 billion in u.s. exports while building up the infrastructure of subsahara and africa. in each of these areas president obama will announce very shortly significant new initiatives. we're also focused on energy. i need not tell this audience 2/3 of africans still go without electricity. if we can help power africa that will empower the people of africa to grow their economies. that's why under president obama's leadership, as he will discuss later today, the united states is helping to mobilize private investment and offer financing to help americans provide for -- excuse me, to help afrikaater frricans provid yourself, clean, abundant, affordable electricity which is badly needed. today the united states will sign a $500 million millennium challenge corporation compact with ghana to strengthen the energy sector. let me give you an example of u.s. efforts t

given that exporting crude has been legal since the opec crisis and it's something that kinder morgan to get in on too as rich told me in the "squawk on the street" interview. how about energy transfer equity? ete. which owns the general partner and thus the incentive distribution rights, that's the stuff that rich kinder got rid of today and region ji partners. right now it's 7.2% because the company temporarily relinquished it. and its payout next year will increase dramatically. remember it's ete that's the one. there's a bunch of one. if you hold on ete could become one of the highest yielders in the space over the next couple of years. i like yield. then there's atlas energy. remember this one? atls. that leon cooperman recommended last month that we profiled just, well, two weeks ago. atlas energy is the general partner to atlas resource partners, an oil and gas producer and atlas pipeline partners and that's gathering, processing and treatment services. atlas is relatively cheap stock. and it should be able to raise the distribution dramatically over the next few years. that's

we do have a very well supplied market here, iea saying that opec's output in july up to a five-montho chi china's oil demand going lower year on year, down 2 % in the month of july, supporting other weak china data as well, and in the u.s., demand falls off this time of year, that's why the prices are lower, now dropping under $97 a barrel. brept prices lower as well over the course of the last few days, brent prices at a 13-month lociing the opec numbers go up, not so much worry about geopolitical tensions at the moment until there's a supply disruption. back to you guys. >> i want to highlight that 6789 that's fascinating, jackie. five or six years ago, trouble in the middle east, shot up to $150 a barrel. >> exactly. >> very, very different this time below a hundred dollars a barrel, talking about supplies, the other main factor is the united states imports far less international oil than it did say five years ago. >> right. all excellent points, prices now acting very rationally to the geopolitical newsment traders said until we see something happen making us pause for worry, we'

are better late than never, they're not going to stem the tide of the disintegration of what was opec'srgest oil producer. so, you know, i wouldn't judge, i wouldn't be reassured by the markets today. frankly it looks pretty bleak to me. david: all right. by the way, talking about the president's strategy, some people wonder whether there is a strategy vis-a-vis iraq at all. john boehner, the head of the house says, that the president's authorization of airstrikes is appropriate but like many americans, i'm dismayed by the ongoing absence of a strategy for couplerring the grave threat isis poses to the region. is he on target there? >> yeah, i think so but i would broaden it to say it is not just isis that's a threat to the region. think i the bigger threat is iran and, you know, it pretty complicated pretty quickly but short version of it is, isis is a sunni movement. it is not very big. only got 5,000, maybe 6,000 fighters. the reason isis is moving like a knife through butter in iraq is because the 20% of the population which are sunni are supporting it. and the reason they're suppor

pol opec say says there was a mum of 7.4 billion barrels a day being produced. that number is expected to raise 25% to 9.3 million barrels a day. despite that, there is concern over oil production in the next few years. iraq was expected to dramatically boost its output which is in doubt. >> iraq is a very, very important aspect. iraqi production has to rise to meet the collective amount in the world. >> russia is another wild card. the round of sanctions will put pressure on its oil industry. russia says it will begin drilling in the arctic with exxon. analysts say any sudden cut off in the display will trigger a shortage in the oil markets. mary snowy, al jazeera. >>> we're going to help you try grasp why the market reacts or in this case why it doesn't. dr. andrew menaker ask a psychologist who consults with moneying managers. one can compare it to the game of poker. he joins me now to explain. so let's take your poker analogy. how does this all work? how is this a poker game here? >> sure. well if you talk to a money manager off the record what they will tel

launched airstrikes, a cloud of uncertainty hangs over opec's second largest oil producer.ome i am production has been afshld. the main fields in the south produce roughly 3 million barrels of oil a day. globally there was more oil on the market last month with an increase of 170,000 barrels per day, the highest level in five months. saudi arabia and libya are the main reasons. some oil fields and ports were re-opened after fighting and strikes shut them down last rikes shut them down last year. >> russia is another wild card. the latest round of sanctions will put pressure on its oil industry. but it's not clear to what degree it will be affected. russia says it will begin drilling in the arctic with exxon. with so many countries in turmoil at one time can analysts say any sudden cut-off to supply could trigger a sharp reaction in the oil markets. mary snow, al jazeera. bank of america is finalizing a settlement with the u.s. justice department for its role in the 2008 financial crisis. the projected $17 billion deal would be the largest of its kind. patricia sabga has mor

. >> from our friends at opec. >> they were our friends perhaps in those days, but no longer. >> allf them? >> in addition, you have to look at libya, egypt, syria, hamas, and israel. you look at iraq, iran, this is are all oy-heavy regions of the world. why we would rely upon them when we have all this natural resource in the ground and domestic north america is just a mystery or to put it differently, it's a failure of political leadership to come to grips with the nation's future. >> do you see that failure as having a solution, as clearing anytime soon, or is it a logjam in the foreseeable future? >> it's jammed up completely. >> an anti-hydrocarbon white house, a anti-hydrocarbon senate, a pro-hydrocarbon house and it's all mixed up. there are enough bills sitting in the senate waiting for action from the house to remedy this situation over the next five years. but nothing's happening, and nothing will happen, i believe in the next two years, unfortunately. unless the senate changes, perhaps, but then we still have the white house to deal with. this failure of political leadersh

trade and development industry and our president and ceo of opec, elizabeth littlefield. so we are here, of course, as part of the u.s.-africa leaders' summit. the largest gathering any american president has ever hosted with african heads of state and government. this summit reflects a perspective that has guided my approach to africa as president. even as africa continues to face enormous challenges, even as too many africans still endure poverty and conflict, hunger and disease, even as we work together to meet those challenges, we cannot lose sight of the new africa that's emerging. we all know what makes africa such an extraordinary opportunity. some of the fastest growing economies in the world. a growing middle class, expanding sectors like manufacturing and retail. one of the fastest growing telecommunications markets in the world. more governments are reforming, attracting a record level of foreign investment. it is the youngest and fastest growing continent with young people that are full of dreams and ambition. you know, last year in south africa, i held a town

think they are hoping iraq is the largest oil producer in opec today.y are expecting to see no disruption which seems to me a little complacent. we have not mentioned syria or libya or even nigeria. i would expect the risk premium to be built back into crude oil moving forward. >> how do you look at european equities versus u.s. equities at this point? are big links between the german economy in the russian economy and the ukrainian it, and he, not least of which when you look at the gas relationship. is the selling of german assets, is that wanted to you? >> i do find it a bit overdone. the sanctions today are not really publishing. yet we hear about reprisal sanctions. russia is much more focused on food. germany does not export a lot of food to russia. i think that is the big issue. i think people are worried about escalation. for me, that is the opportunity. there are certain areas, terminate particular, within european equities that are very attractive right now. has ad look amateur that russian operation and has been massacred over the month of ju

the person gives to member a with opec member a will give it to member b. if the person even implies for making the contribution to a, the press wants to go to b, that's it marked. how is this going to be don't? >> macdonald and colorado said that earmarking is not the outer limit of the government's authority to limit and the reason it's all of this can be done with winks and nods and subtlety. so i don't think it's the case of earmarking woodwork to prohibit the. i also think when we're talking about an aggregate limit, they are part of an overall system of regulation. and i think that they were to keep the circumvention risk in check, and work to make sure that you don't have that kind of problem that you identified. >> what would you think, because listening to your dialogue, and you heard, there's a pretty tough, we tried to construct a market that are close and council says no, i've got that part wrong. they may be right, and we can't do this figuring out all these factual things in an hour, friendly. they may be right, i'm not sure. there hasn't been

world where from a opec was the only place for spare capacity and now texas become spare capacity.tic will affect the price but -- not affect the price of brent. >> true. .> shameless plug we are going to be talking about these things in "market makers." let me talk you about the international tour mile we have seen. -- let me talk to you about the international turmoil we have seen. people are creeped out by iraq, ferguson, hertz . of problems out there. you do not see it reflected in equity prices. isa big chunk of investing what is the best relative use of a dollar? when i look at a 10-year treasury, when i look at a 1%man bund yielding under and i look at where inflation rates are, i say, i'm not getting paid much in terms of your term returns in fixed income. the reason why those interest rates are so low is that people are so freaked out that they keep driving themselves into those vehicles. >> you could argue you are getting freaked out. germany is not growing again. their reported gdp last week. , there is ant constant interplay of what we are going to talk about the news o

how could it impact opec? let's talk about this.es research at us fromank joins frankfurt. good morning. the move out and oil this in oil -- the move up this morning is catching headlines. how significant is the fact that we are seeing the geopolitical risk being priced in? >> until a couple days ago, the on at did not truly react support side to the geopolitical risk. starting from yesterday over the course of the last 24 hours, the prices are up two dollars. it seems even an immediate affect on the possible supplies in a very short to medium term. the market is trying to price that in already. and what isement going on right now in the north 's iraq is taking putin escalation to a new level. -- is putting this escalation on a new level and becoming more visible to the market. geopolitical risks were already present. >> when i look at the dec contracts and the beginning of 2015. the market is taking a step the contact table but is not pricing in a significant steepening of the story. we're not going to see significant higher prices

the geopolitical, as to why the markets are uncertain around that, is because generally the husband opect sure which way does going to go. and the ability for that -- >> did he say convexity? >> he did. >> we are trying to be calculus-three in august. >> the ability to it escalated to something that would really impact the economy is high. is the correlation right now between your world and the full faith and credit 10-year yield? theyle related? -- are correlated? >> off and on. is au look at that, there negative correlation, and that is different from what you've seen in the last couple of years where you have had both the yield market or the treasury market rally when you see equities rise. isay what you are seeing more of a historical negative correlation when there is a risk off trade, you see people buy treasuries and sell equities. >> is the pressure coming from the bond flows themselves like high-yield outflows or is it a function more of the leverage that was sitting in spread trades and things like that coming off? and 2007d say in 2006 it was a very different market. there you

trade thedevelopment agency, and president and ceo of opec. here as part of the u.s. africa leaders summit, the largest gathering any american president has ever hosted with african heads of state. ae summit reflects perspective that has guided my approach as president. as africa continues to face enormous challenges and to many conflict,endure poverty, hunger, disease, we cannot lose sight of the new africa that is emerging. we all know what makes africa such an extraordinary opportunity. it is one of the fastest-growing economies of the world with a growing middle-class, expanding like manufacturing and retail, one of the tellst-growing teli communication sectors in the world, a rapidly growing foreign investment. it is a continent full of young andle with dreams ambitions. last year in south africa i held a town hall with young men and women from across the continent, including some who joined us by video from uganda, and one young ugandan woman spoke for many when she said to me we are looking for equal business partners and commitments, not aid. we want to do bus

of opec, elizabeth littlefeel. so we are here. of the u.s. part africa leaders summit. the largest gathering any has everpresident hosted with african heads of government. this summit reflex a enter techive that has guided my president. africa as even as africa continues to face even as toollenges, many africans still endure hunger and conflict, disease, even as we work together to meet those challenges, we cannot lose sight that'snew africa emerging' we all know what makes trunt extra, such opportunity. expanding sectors like manufacturing and retail. growinghe fastest telecommunicationings markets in the world. reforming,ments are attracting a record level of investment. it last year in south africa i held a town hall with young men and women including some who joined us by video from uganda. and one young woman spoke for many for instance when she said to -- frins when she said we are looking to the world for equal business partners and commitments and not necessarily aid. we want to do business at home and be the ones to own our own markets. that's a sentiment we he

trade and development usaid, like opec, light are critical towards our goals. there are things i see that are confusing, such as this discussion of not reauthorizing u.s. xm. $1 billionthorized of power generation financing for the continent of africa. it is u.s. firms supplying u.s. manufactured goods and services that are coming in under these programs. so to the members of congress, i ite you to reauthorize because failure to do so is effectively voting against the development of africa. if you take a look at turkey, brazil, those economies that have passed through basic developments and begun the real industrialization process, you a linear that there is basis to their borrowing. look at the amount of applications from sub-saharan africa and from north africa. look at brazil, turkey. we want to get into the -- >> we want to give the others a chance to introduce their company. >> absolutely. [applause] >> good afternoon. my company is from tanzania, focusing on clean energy. the issue of power deficiency in africa is well documented. it is the description of

first, opec backed off on demand forecasts saying global production is up and as the equity markets arethe last week or so, traders saying global demand forecasts could come down as well. these prices are going to see volatility and you'll see something major have to happen overseas to send up up higher. normally this time of year, a lot lower. >> jackie thank you noor. >>> breaking flus from the faa. decided no aircraft, no civilian aircraft should fly over iraq airspace for fairly obvious reasons. to recap, the faa here, reg later here in the united states suggesting that u.s. airlines should not fly over iraq. though why any pilot even at 30,000 feet would want to attempt that i'm not sure after ukraine. >>> market, up 54 points on the dow. art cashin joins us director for praises and cnbc contributor. you said something important in the break to us explaining the trades we just talk and. today's not actually from your perspective about iraq. it's about the ukraine? >> yeah. the iraq situation could be far more dramatic in the future but for today it's all about the ukraine, and it i

opec dollar invested by has sparked, on average, $2.60 in additional private sector investment..s. trade and development agencies are funding over 100 projects expected to generate over one billion dollars in u.s. exports while building on the infrastructure of sub-saharan africa. in each of these areas, president obama will announce very shortly significant new initiatives. we are also focused on energy. , need not tell this audience two thirds of africans still regularly go without electricity. if we can help you power africa, that will empower the people of africa to grow their economies. that is why under president obama's leadership, as he will discuss later today, the united states is helping to mobilize private investment and offer financing to help americans provide for -- to help africans provide for yourselves. clean, affordable, abundant electricity, which is badly needed. today, the united states will sign a 500 million dollar millennium challenge corporation contact with donna to strengthen its energy sector. let me give you an example of u.s. efforts to help our af

if you don't want to stay in the united states, your best bet is to utilize opec. they have done tremendous work in the solar industry. it's a bridge between one country and another. i think you have a good advantage there. the import export bank is another one if you were utilizing equipment in the united states. my guess is you don't want to rely on equipment in the united states unless you have a competitive advantage. >> we will run short on time. what i'm going to do is take three questions. please try and keep them brief so we can get them in. we have two on the wall over here and then you, sir, in the blue shirt. >> julia piper. wonder if you can address what's going to happen with disposing of the panels. i under they have long lifetimes but what's going to happen in addressing climate change, low carbon energy. is there an environmental issue being created? >> as mentioned before, china will be a biggest market for solar. in question will be, we talk about the trade issue between u.s. and china. is there room for american company to do business in chinese

i think it looks like the big trade balance improvement came with opec.e imports stuff. just right around the time people think of imports when it comes to the holidays, back to school, that kind of stuff. with we want to see that go up. you are right, a big change in the petrolium balance what will happen, we need to see what the impact is on the third quarter. >> so where are you on that? where do you think the third and fourth quarter are going to be? >> i think around 3%. i want to see if workers will help spending and this will be some demand driven here. >> where are you on the minimum waenl? >> i report on this story, byron, i would love to see people make more in a way that doesn't reduce the number of jobs the poorest people get. so i'm interested to see, i'm looking carefully at places they're raising it, like washington to see if it does, endeechltd i read a bunch of studies, they're all over the play, i like the goal. i'm not sure the means necessarily are the ones to get there. let's talk about the disease the ebola in africa, a second patien