like ae prepared to act non-opec coalition. they acted very often on their own within opec.hey are not prepared to do that any longer. they see that as a road to ruin for saudi arabia. they remember what happened in the early 1980's when saudi production fell from 10 million barrels a day to 2 billion barrels a day -- 2 million barrels a day. when does the dynamic change? clear agreement within opec that any cuts will be shared among members. and when there is sufficient action from outside opec to give some kind of credibility to -- we willhank you so much be hitting oil a lot harder later this hour, talking to the former vice chairman of bank of america, no managing his own energy consultant firm. -- now managing his own energy consultant firm. of martin spencer out after failing to revise a sales. -- marks & spencer failing to revive sales. ♪ betty: live from new york and london, this is the european close. facing retailers are some challenges. bases announcing layoffs -- macy's announcing they will lay off or relocate thousands of employees. the problems are also over in

all the opec numbers.ven the best funded saudi arabia are suffering in terms of much lower income. but over the long term we're definitely seeing a big reduction in investment not only in the u.s. but in all sorts of parts of the world in oil production. that will be with us three, five, seven years, which probably means higher prices to come. >> and what about those who might benefit from those oil prices. >> well, consumers around the world are going to benefit. in particular i think oi oil-importing countries, it has benefited from low energy prices. the danger is if low prices are going to be followed by much higher and volatile prices over the next couple of years, that's not helpful for consumers or producers. >> thank you very much for your expertise. thank you. >>> still to come this half hour, the u.k. parliament debates whether to ban donald trump from entering the country. and more than 100 people are guaranteed in sierra leone over ebola fears. the only way to get better is to challenge yoursel

what he says that is, indeed, venezuela is seeking a meeting of both opec and non-opec producers.hey are the initiator of this effort to have a meeting. russia has agreed it would dissipates in a meeting if it was to take place, but there is no set agenda for the meeting. nor any confirmation that the meeting will take place or who would actually be there. so, early days, really, to be talking about a coordinated cut when it comes to oil supply. francine: did he give you an indication of what it would take to talk about coordinated cuts? when i look at the price of oil because it was rising on expectations that russia and opec producers would meet. it is now still rising but less than it was six minutes ago. great interview and great acts to have to the energy minister in russia. what is a scenario where he would consider -- points.ere are two the first one is he indicated that not only russia but many countries are more prepared to join in a coordinated cut than they were a year ago. that is some movement there. he says the low oil prices have changed the mood. the concern they w

, non-opec meeting, and of course it is denied by various opec delegates, showing the skittishness of the market. yesterday we talked about europe's second-biggest drug maker. it derived more of its earnings from companies that high high -- that have countries with high levies. europe's second-biggest clothing retailer, also down by 5%. we've had unusually mild winter weather here in europe. that has prompted discounts as well. the company said it will get no wrists bite from the strong dollar in the first quarter. from the strong dollar in the first quarter. johnnie walker whiskey, smirnoff, captain morgan rum, you know this company -- betty: what are you talking about? mark: you can't kid a kidder. basically earning speed, but they underwhelmed analysts. it's all happening, and earnings dictating the move of the stoxx 600 today. betty: also in the u.k. there were economic numbers that showed the economy has got some good momentum behind it, right? mark: we, the u.k. -- i am the u.k. we grew by 4%. it is a very unbalanced company, principally the driving factor its services. we have

the russian energy minister willing to meet with opec to coordinate on oil output, but a group of opec delegates said that no talks are planned. russia had stated in the goal of keeping crude production stable even as prices tumbled. alive?ld we keep hope joining me from london is julian lee. with me in the studio is tracy alloway. there were a number of reports that came out of moscow, suggesting that russia may be prepared to talk about possible .utput cuts with opec countries there was some suggestion that had apparently been made by saudi arabia for an across-the-board 5% cut. that sparked a rally in prices. then we saw more news come out and that, in fact, this 5% cut was something that saudi arabia had suggested at a previous meeting. it does not appear to have been proposed at the previous two meetings, so that means it is at least one year out of date. various sources within opec said that there were no plans for a meeting in february or any other time before the next opec meeting in june. that there was a certain amount of perhaps hopeful talk coming out of moscow, rather than

crude oil prices have been sliding and there's so low that opec -- they are so low that opec will be talking about them at their meeting in march. only last month, around the time when opec ministers have their last meeting in vienna, a barrel of brent crude was going for $43 per barrel. among concerns of a slowdown in china growing, prices continue to slide, and now they are very near the already dollar per barrel mark. more details in this report. -- the $30 per barrel mark. more details in this report. reporter: it will affect british oil rigs. 4000 workers at the british energy giant bp are expected to lose their jobs. there are no signs that oil prices will recover anytime soon. much will depend on whether opec changes its policy and slashes production levels. >> opec has a strategy to have high market power, high market share. each country is producing oil at its limits with the u.s. and russia. there may be an oil power game right now and we will see who will win. reporter: but this game has a price and opec members are well aware of that. cheaper oil is sending prices down ar

so the opec country could not agree in the past.nchor: the russian minister mentioned a figure as well. 5% less production. what affect would that have? guest: the russian proposal would bring the oil price to up a level. because the oil supply exs or the oversupply of oil which we have right now in the market would decline about this proposal. and that would indeed bring the oil market to a more balanced level and the oil price would increase if all opec country, including russian, -- russia, also agree on this proposal. anchor: many thanks. 6.8 billion euros. that's a lot of money and that's the loss that deutsche bank's c.e.o. had to explain to investors today. it's worse than anything germany's biggest lends heir reported since the financial crisis. it's the biggest loss in company history. it used to be one of the big boys in european finance and their stock traded at around $ 100 euro. just look at this dismal picture. after deutsche sold a lot of dodgy mortgages to kick-start the 2008 financial crisis, the share prices gave i

countries prior to the scheduled meeting of june, that they want a meeting, some countries and opeceting as soon as possible, as early as march some are saying to kind of discuss as i say the impact that this is having on these countries. nigeria is in particular troubled as it were simply because it relies so heavily on sale of oil for its income, more than 80% of the government's budget is made up from oil sales and recently the country put together the budget and found that it benchmarked oil at around 38 a barrel and now we are reporting overseas it's much lower than that and looking at around 31 so the question is arising here how will nigeria meet its budget requirements for the coming year. there are reports emerging that the minister for petroleum and oil in the uae is dismissing some comments by the nigerian minister saying that opec won't do anything artificial but what nigeria's oil minister is basically calling for is perhaps a rethink of the strategy. so far opec produces around 31.5 million barrels of oil every single day and even with the plummeting price of oil for o

on the back of ryan's interview, opec was gaining when we were asked acting opec and non-opec to cut,initely paring some of the gains today. coming up in the next hour, harry tchilinguirian of bnp paribas will join us. this is "bloomberg surveillance" on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. the conversation today is focusing on the doj and the price of oil. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's why if we're ever late for an appointment, we'll credit your account $20. it's our promise to you. we're doing everything we can to give you the best experience possible. because we should fit into your life. not the other way around. the bank of japan surprises, and here is the reaction. japanese yen significantly weaker against the dollar and against the euro. the japanese government bond at record lows this morning. bloomberg's first word new spirit vonn

on opec and non-opec members to solve the oil stocks.nd we could see actually an underestimate issue going down the road as companies continue to cut back. meanwhile, we're getting comments from the ne ceo, the italian maker, he said if it persists, it will be extremely damaged. another concern where are around $31 a barrel. >> we'll be back right and teller. that's it for today. from nancy and myself. smart de. cloud is up. analytics is up. seems like everything is up except your budget. introducing comcast business enterprise solutions. with a different kind of network that delivers the bandwidth you need without the high cost. because you can't build the business of tomorrow on the network of yesterday. >>> good morning. let's make a deal. johnson controls reportedly in advanced talks to buy tyco. the price tag could reach $20 billion. >> the big cleanup, the east coast digging out, airlines trying to get back on schedule. this after the second biggest storm in new york city history. >>> and super bowl 50 is set. broncos and panthers

another interesting thing from opec is they mentioned that opec --elf is supplying markets the oversupply is around 600,000 barrels a day. they did not mention iran in their commentary. they are bringing extra barrels into the market. rishaad: but they have huge challenges, the iranian oil industry. ben: they certainly do. levelsriced around these . they cannot just push these barrels into the market. they need to provide an incentive for people to take them. in 2012, when they were the second-biggest producer in opec, it was easy for them. now that those barrels have not been in the market for a while, refineries have been reconfigured and they really need to provide an incentive. rishaad: thank you very much for that. angie: checking other headlines for you this morning, rio tinto says it is going to cut its iron ore output amid the global supply glut. the ceo says the company is "handling a challenging market backdrop." last week, he said the output for iron ore would remain muted. checking shares in sydney right now, climbing .25%. o is expected to post its first ever annual loss toda

the opec governor saying opec would be willing to cooperate with other producers outside of opec. $30 strongest talk. the market liked it. >> it is interesting. opec really wanting to stick it to you. we have had such a phenomenal go of it. all of the fracking that has really just let that sector on fire. it has been challenged in the face of these much lower oil prices. do you feel that that damage has been done? >> remember, i do not think that they have the control that they once had. they can manipulate and just drive oil a little bit higher. 1000 u.s. riggs went off-line in the last year. only about 880. we are defiled the suffering. i think that there is a bigger picture. there is a bigger problem. i think that there is bigger issues out there. >> i do not know about 50 within the next year. we have a major change in the united states. we are an exporter by law. years of not being able to export oil and gas. if you wanted to buy or liquefied natural gas from anywhere in the world under a long-term contract, what would be the single most reliable source in the contract? right her

opec still thinks it's not the only one. other regions honorable can be canada and parts of asia as they need to cut spending in order to keep them afloat. >> you can get more on that story on our digital destination. bringing together the best of bloomberg news, bloomberg television, and digital content in one address. why some mining towns in australia are running out of water. how the economy became a standout among the emerging markets. we are checking other headlines for you this morning. countries, companies, and individuals hit by the slump in oil. his net worth has increased $120 million so far this year. the industry is benefiting from cheap crude as margins swell at its refining complex. shares have been up strongly until they fell 5% on monday. research from the world economic forum says robotics and artificial intelligence and lose 5 million jobs by the end of the decade. they surveyed 15 economies around the world. those jobs will be created, but many more will be lost. they were lines between the physical, digi

opec and non-opec producers must tackle, and the oil market must go through this significant market readjustment is after we saw opec not cutting back production. this is a play in market share. all majorsaying that oil producers must sit down to solve the glut. this is once again what we are hearing from opec, an oversupply problem. they don't want to be the ones losing market share. they want the other producers to sit down at the table, so they cut together. will this happen? crispin: we now have to draw a distinction between opec and saudi arabia. that this whole oversupply policy -- and it is a policy -- cannot change until the saudis change it. at the moment it seems to me that there is no indication that the saudi government is moving in that direction. an talk as much as he likes about sitting down with the russians, but until the saudis yes, weound and say, will reverse the policy that we have pursued consistently, i would remain of the view that oversupply is likely to be the state of the market for some time. francine: thank you so much. entertaining africa. a multimillion dollar deal

have lifted.s it makes any production cut from opec less likely this year.hy the oil prices coming down. francine: in terms of the tensions between saudi arabia and iran, they have been going on for some while. why has ve they stirred up now? >> the timing is interesting. was executed. it came as a shot. i do not think iran was expected it. it has been an issue that has been ongoing since he was convicted. the timing is interesting considering the fact that the implementation of the iran nuclear deal comes up in a couple weeks. francine: we saw tensions escalate. we had the sheik being executed then you have the saudi embassy attacked and we had a little bit of remorse, from the u.n. ambassador and mr. rouhani has taken to twitter. >> we have expressions of regret at the united nations. was quick to criticize the people that attacked the embassy. 50 people have been arrested. in the last few minutes, rouhani again oncized saudi twitter saying that saudi arabia cannot cover up its crimes by severing relations. the response, or the adequate response to critici

supply to support prices, with which opec has been identified over the last 30 years. there are three main reasons why that is so. one reason is that shale oil has changed the perception of supply into a question of support abundance. it is unlocked huge resources not just the u.s. but potentially elsewhere in argentina and russia. this has likely changed the view of major producers like saudi arabia about how best to optimize revenue from the resources. the saudi oil administrator in the last 18 months or so has repeatedly come back to the idea of what he called black swan, the idea that in 20 years demand will not be there in saudi arabia might see a huge ocean of oil that is not worth as much as before. so this is essentially seemingly incentivized producers to speed up the pace of extraction of the resource and maximize their revenue by setting more now and keeping less for future generations. another way in which shale oil has changed the picture is by shrinking the trade map for crude oil. the u.s. doesn't need to import as much as before. it is also the case of

production which is causing the current and not saudi or opec production, it's mainly the jump in u.son that caused over supply and over supply is not huge and estimated to be 1.7 and less than two million barrels a day so if we take total production of 100 million and 2% of all oil producers agree to reduce the production by 2% that disappears and of course we still have stocks at record levels but at least the daily over supply disappears. >> very large reserves in the gulf country so to an extent they can set it up and how long can this go on before it starts causing a real problem for countries particularly? >> it built the budget at around $40 a barrel and if oil goes to $30 that translates to about $20 million but saudi arabia has about $600 billion of reserves so that is less than 10% so saudi arabia is in a very good position to work around this and country like middle east and russia and heading into recession that may have a huge problem financing the difference. so these countries especially russia, large producer should cooperate if they want to support oil prices and stop

in 1973, opec was hardly out of the headlines. embargo on delivers to the big oil countries meant the price shot up. in the united states, it became known as the first oil short have shortage. the same thing is happening today in reverse. there's no guarantee an emergency meeting of opec will result in a higher price. for today, enjoy pump price without heed for the effect it can have on 2016. >>> there are 17 days to go before the iowa caucuses. the gloves have come off between two top republican candidates. donald trump and ted cruz clashed. the rising tensions dominated the forum, leaving little final for others to make an impression. >> i've spent my entire life defending the constitution before the u.s. supreme court and i'll tell you, i'm not bog to be taking legal advice from donald trump. >> thursday night, the long simmering smackdown between ted cruz and donald trump finally boiled over. the gloves came off when moderators asked cruz whether he's qualified to be president because he was born in canada, something trump ra

will opec and russia get together? spike yesterday as russia's oil minister says opec and other producers need to do -- need to discuss out the. ryan chilcote is with us to tell us what is really going on. ryan: the answer, it depends on whether i go to vienna or not. manus: vienna in february. it is cold. ryan: the russian energy minister came out yesterday and suggested there may be a meeting in the works between russia and opec indiana in february. inin the end a -- in vienna february. saudi initiative if there was one. what a spike we saw in the oil price. we have heard this chat for the last few days. it kicked off with the iraqi oil minister's comments. people dispel the idea pretty quickly after it was floated by the energy minister. manus: this is brent crude over the last month. the more significant point is lows.e bank 20% from the we have whipped around -- my question is, do you think what we see this month, if russia and opec get their act together and cut things, have the oil markets capitulated? lena: it

opec, they also sit on the side by side. hani: i think that opec is becoming much less relevant.ed as a cartel a long time, so it is not that relevant. when you look at production, production restraint, the big thing to look at is what saudi arabia and the core opec countries do. that is key. tom: we are going to come back. i know you have something with michael purves to get to on oil, and hani sabra as well. brendan greeley is at the annual meetings of the american economic association. he will speak with laureate robert shiller of yale university. dow futures -1.02. this is "bloomberg surveillance ." ♪ tom: at the bloomberg terminal, we keep you abreast of the markets -- equities, bonds, currencies, commodities. the equity weaker, the strong dollar. the shock and all of distant -- the shock and awe of disinflation. we have a smart morning must-read. francine, what do you have? francine: we picked nouriel roubini writing in "project syndicate." he says -- he starts off saying what could go wrong, but -- francine: this is a pretty bold call because we see a lot of concern in eur

we just saw some conversations coming in from the nigerian opec team talking about how they think opecl look to convene some kind of meeting soon. this will have an impact on their budgets. arabian cbs has climbed to the highest since 2009. does that seem sensible to you? it is starting to be concerning for a lot of countries. you're getting to the point where a lot of oil production is not suitable anymore. the question becomes, who blinks and stops continuing production? at some point, supply will have to be reduced. gas -- oneked one guest last week -- the nigerians just building on that. the nigerians actually expect a $40 to $50 oil price band. they are hoping for the saudi price at the same level. anna: charles, thank you so much for joining us this morning. manus: still coming up on "countdown," we had a cracker for you. exquisite conversation. ♪ the only way to get better is to challenge yourself, and that's what we're doing at xfinity. we are challenging ourselves to improve every aspect of your experience. and this includes our commitment to being on time. every time. that's

now the only other way you are going to get prices up is if opec and non-opec producers agree to cutduction. but iran and saudi arabia are bitter enemies. these two have to come to the table, and they have to agree to cut production, and then you have to get countries like russia to do the same. >> patty thank you very much. >>> the u.s. is easing travel and export restrictions in cuba. the obama administration announcing effective tomorrow key parts of the decade's long sanctions regime will be removed, allowing airlines to share flight information, and the change also makes it easier to export u.s. goods. >>> and president obama plans to announce changes to employer sponsored retirement funds next month. giving tax cuts to businesses that automatically enroll their employees in 401k plans. the white house saying the move would help 30 million americans who would not have access to their retirement savings if not for these changes. >>> this morning two of the activists behind those undercover videos of planned parenthood are themselves facing charges. it was the unexpected result of

we hear what we touched on with the opec secretary, saying it is up to opec and not opec producers whoust tackle it together. this is what you were saying -- if you are rusher and you look at this, will you take a risk? what is the floor? is it $20, $15? larry: kid is hard to know what exactly it is. the real indicator to watch his inventory. everybody is producing, consumption is not keeping up. next the supply is selling the storage tank and increasing -- we will reach capacity before too long, probably in the spring or summer. at that point, the curve will sell off, and that will be the biggest indicator we have reached the bottom. the secretary said that lets opec and not opec talking together. they cannot put opec together -- the saudis and arabians are not talking -- francine: hold on. wasderstand, but saudi at the table -- javier: saudi arabia needs russia and iran at the same table. -- the idea ofnt summing up the itty-bitty countries, they equal in iran uctions. prod had to they affect the dynamics going forward? javier: one problem with all these companies reaching the crunch

opec cannot do this alone. -- we need to do is bring opec members to begin to talk. john: what are the consumptions for crude? on the screen 28 for w.t.i. the curve. the whole crude curve has shifted lower all the way out to 2020. you have to see optimistic to see $50 a barrel. what are your basic asuppingses? >> in terms of numbers? all, in the year you'll see the impact of production out of top shale. you'll see the iranian oil eventually bringing into the market. you're going to see the natural decline of almost two million barrels by virtue of money invest. -- investment. but again, i think the second half of the year holds more promise in terms of favor markets. john: going back to production targets. there will be a large majority of viewers watching this program right now saying, opec can never get together and make a decision on targets ever again. they had a target before for 18 straight months they exceeded the target. it was hardly binding. the political situation between saudi and iran. can they get together and become relevant again? >> everybody wants t

opec itself saying it will cooperate with other non-opec members if they can get a deal somehow, anda; their oil imports in december up 9.3%. yes, a lot of that went into the strategic reserve in china, but still china buying oil. so a lot of bull, bullish news today for oil to, and that's, you know, that's why we've gone up so much, and that's why stocks went up so much as well. so everybody's happy. liz: isn't it interesting, the chinese no matter what's to going on in their world are sucking up commodities and putting them away for a rainy day. >> reporter: they're getting it cheap. i mean, they're smart. that's real smart. liz: smart and scary sometimes too. thank you very much, jeff flock. >>> look, oil is just a part of the story. you heard jeff mention the fed was overshadowed, but it's only day one of a day two meeting. the first day of the two-day meeting, tomorrow's decision day. so will they or won't they? will they ever even hike rates? forget tomorrow, at all this year? fox business' senior correspondent charlie gasparino here. >> i don't think they're going to do it thi

absolutely no meeting land between russia and opec. if they were to get together, theoretically, collectively, they produce 40 million barrels of oil. they could have a big impact on the market. betty: they certainly could, but isn't russia going full steam ahead with their production? ryan: they are. that is the irony in all of this. rusty production as the price of oil has declined, -- rossi and russia production is the pricen of oil has declined, they are fighting to pull in revenue. for need those oil sales 40% of their budget. the idea they would get together with saudi arabia i think is really a big askk. it is difficult for the russians to cut production in the winter. if you suck production at a you, you may -- at a rig, may have issues. you cannot turn it on and off. believe that the saudis are not being sincere they were going to cut of the russians would play along. they think the saudi's are out to get them. that the saudi's are out to get the russia economy. they are not going to run to a meeting with the saudi's and think

opec countries produce around 31.5 million barrels of oil every single day, but the fall in the price terrible impact on countries like nigeria, algeria, and venezuela that rely so much on oil sales and less of an impact on the very wealthy oil-producing countries like saudi arabia, which make up the bulk of the oil that is exported and sold. and this is all being brought to a head, because nigeria's government has just put together the national budget. it came to around $301 billion for the year 2016, and they benchmarked the budget against an oil price of $38 per barrel. we're reporting today of course that it is falling to 31, some say it will even go as low as 20. so how will nigeria meet its obligations? it is under huge pressure to find money. it is talking about borrowing, but what would be easier if opec came up with another strategy that would help to bolster the price of oil, and this also puts the president who came to power last year under immense pressure to fulfill one of his campaign promises which was basically to diversify nigeria's economy away from oil. many governm

oil that comes from opec countries. for one reason or another, not clear to many analysts, the saudis are resisting cutting back production in order or as a strategy to bolster the price of oil. the effect of all of this is huge challenges ahead in terms of how to finance nigeria's budget. >> thank you. our nigeria correspondent live from nigeria. >>> many are forced into illegal jobs facing abuse, the group's latest report said lebanese authorities are blocking many syrians from renewing residency permits. that means they can't legally work and can't go to the police when they experience abuse. some refugees report being underpaid, some even say they've been sexually exploited by their employer. caroline malone reports. >> hussein looks younger than 13 and works as an adult. he is employed in a garage to support his family, refugees from aleppo who escaped after their home was destroyed in syria's civil war. he feels a sense of responsibility to feed his parents and four younger siblings. >> i've been working for two y

most important will be the next opec meeting.obably it will be a very different picture than what we saw in december. have theypec has -- been making themselves irrelevant? guest: they are never irrelevant. seen oil prices getting down like this, the incentives to cheat become huge. guest: that is for sure but there is the strategy and the adding to there strategy are the people that can turn the market. rishaad: you said the investment landscape is changing. you do not think the bond market is one that should be looked at given the liquidity which you say is no longer cyclical. it is structural. guest: it is part of the market have it now. that.ors can benefit from in the low investment grade segments, illiquidity is an issue but you can catch a very interesting yield at weak moments as well. also liquidity is a double sword anyway. rishaad: trying to get rid of the bond at the end of the day, [indiscernible] .hat is has rebuffed a rare attack from the u.s. as president obama's envoy question settlement policies and its commitme

. ♪ >>> nigeria's oil minister is calling for an emergency meeting of opec because of falling prices.now hit a low not seen in more than a decade, and they are forecast to go further down. in 2008 a barrel of oil cost more than $147. now it has fallen to around $30 per barrel. that's great news for us, filling up our cars or heating our homes, but it's bad news for the oil-producing countries like saudi arabia which has resisted pressure from some of its opec partners to cut production in the hope it would lift prices. none of these countries are getting enough for their oil to cover their costs. one of those countries nigeria. our correspondent joins us now from the capitol, abuja. first of all this is the minister of state who manages the day-to-day functioning of this crucial ministry for nigeria addressing the meeting in the gulf. >> reporter: that's right. it was during this meeting, martine, that he said perhaps opec needed to re - re -- restrategize its approach. so far opec countries which produce around 21.5 million barrels of oil every single day have decided not to cut prod

opec is the central bank of oil. my thinkculty now is there was a tendency to assume that a lot of this was on the supply side. we are starting to see some investors and analysts question whether we have a demand problem. between analyst commentary come out looking at places like china where oil demand has been quite resilient. they figure it will slow down in the new year. that could be a massive change for markets. narrativeing the shift from supply-side concerns more to the demand side. david: do you agree with that? >> there some concern about global growth, clearly. that is hitting all commodities. the answer is supply. opec getting its act together. some of this correction has already happened. demand is a factor here, but not the main factor. david: i wanted to ask you about the news we heard this week that saudi aramco might be waiting in an ipo.eighing what effect would that have on the oil market? >> i don't think you will have a major effect on prices per se. it has an effect on the finances of saudi arabi

what opec is saying is that the lack of investment into non-opec output, particularly into maintenanceields, business so we going to lead to an involuntary decline in opec output. they hope to increase the size of the involuntary decline from the report a month ago. i guess the market is looking for any bit of news to cling onto. ryan: iran's return to the market was well telegraphed. we had brent fall, 7% on friday. going forward, where is the surprise with iran? they telegraphed to the whole world they would raise production by half a million barrels. we've got 45 seconds, but what will surprise us in 2016? julian: the surprises from iran are going to be if it fails to meet those targeted it has been very adamant that they would make those targets. it is been very adamant that they would do regardless of price. the big surprise perhaps will be if it does not do it could we have already got many analysts saying that they expected to be able to do half of what they have said. there a great deal of uncertainty out there. caroline: meanwhile, rsi says brent oversell. thank you very much,

opec nations led by saudi arabia are trying to strike a deal with non-opec countries to reduce global prosecution. some of the biggest producers russia are unlikely to agree to a production cut. look for these oil prices to continue for the foreseeable future despite this move by opec to cut production. and by far, the most important corporate earnings report that wall street is watching for is coming out this afternoon. that would be coming from apple. we already know that iphone sales slowed late last year. ipad and mac book sales havebjv-| been lackluster. market watchers believe if apple can turn in a strong report this afternoon, it might give the whole stock market a badly needed jolt of confidence in what has been a shaky start this year so far. that report comes out at 4:00. >> apple's been down quite a bit. >> they have been, yes. >> thank you for that. >> see you tomorrow. >>> we're going to get back to breaking news right now in westchester county. we're in chopp 4 right overhead with more. >> reporter: as you said, this happened just outside the tappen hills school in west

some signs there was more perhaps cooperation on the cards between opec and non-opec players. but then members came out and said, not true, squashed any speculation. that brought the oil price back a little bit. still, once again, russia saying they are interested in discussing. >> an old report put forth a suggestion like that a couple months back. but it's true. they can take the pain of some $30 oil per barrel for some time but not forever. then it starts to pinch in all areas. >> and some concerns, too, that even though you're squeezing out the north american production, the shell producers are getting more efficient as time goes on so they break even. still, we had this comment cong from the kremlin that russia is interested in discussing the oil market situation. oi prices, as you can see, brent and wti both up about 1%. i think there are a lot of nonbelievers out there when it comes to any moment between opec and non-opec. >> there's a great piece on cnbc.com called "why russians and saudis could cut oil output." take a read of that online. i'll tweet it afterwards. >>

there's no guarantee, and opec will do anything to up the price of oil. and all sides seem not willing to budge. enjoy the cheap prices but the effect that it will have on the global economy in 2016. if countries like nigeria get their way, there's talk of it in march. >> thank you. and mothers of missing schoolgirls in nigeria are losing faith that they will ever be rescued. we have more now. >> reporter: her daughter, dorcas, is one of 200 schoolgirls kidnapped by boko haram more than two years ago, and she and the others are still missing. esther and want family members in support of the missing girls are march together president's office, demanding more information on what the government is doing to find them. nurse marks exactly 21 months since they were taken. >> we want to hear more. we are working on it. >> for how long they working on it. [ unintelligible ] >> reporter: there have been many demonstrations like this, calling for the government to do more. many thought the new government, which came to power last may, would find the girls. during t

opec cannot do this all alone.we need to do, we need to get opec and non-opec members and they need to talk. , >> i spent a large part of my career doing m&a deals where the oil prices were between $10 and $20 a barrel. >> a lot of people forget that. >> yeah, exactly. and there is a lot of consolidation the took place and some of the big companies were built. we're talking exxon, shell, bp, they were built when oil was $10 or $20 per barrel. i think this is a period when people are going to look to aggressively pursue consolidation and rationalization. >> the energy market at this point is naturally clear where we are heading to. i think this creates a lot of economies for total and lots of companies. however, i think the positive side of it, we need to look at this as supply and demand economics and we need to overcome the current drop in price for crude oil, for example. the challenges for companies to focus on growth and to focus on long-term, and i think that is the way you can overcome the current challenges

you have saudi arabia and iran, the biggest opec producers. why aren't we seeing more of a tightening right now? >> shows that this is going to continue. people are looking for the next meeting in june and if the tensions continue i don't see a deal where opec is going to cut oil production. that's why we are seeing weakness in the oil market. >> nicole: some of the stories remain the same, you're talking about the weakness in oil, we are talking about the weakness in china, where is the bright spot for 2016. people have to park their money somewhere, where should they put it? >> i think that shows progress in ability. and also likewise with the uk. therefore people can continue to invest. so i think the bright spot, germany, uk and u.s. economies, you're going to see volatility. the u.s. and uk. >> nicole: we are closely watching the stock market as steep selloff in asia. looking like this. close to 300. we are still seeing down arrows here across the board in the u.s. s&p futures down 30. and nasdaq futures down 76. all of which are down abo

demands by other opec members to cut production have fallen on deaf ears. russia is pumping a post-soviet record amount of crude. since the beginning of this year alone, the price of brent crude has fallen around 7%, despite rising tensions between iran and saudi arabia. >> we believe that taking steps to create tension in the middle east is not a sign of strength but of weakness. we have to counter these actions by taking wise and sensible steps but unfortunately our actions have not been met by an acceptable response from our neighbors in saudi arabia. the trend to escalate tension needs to stop. but it doesn't appear that will happen. as iran returns to the global community, its influence on the oil market will increase but the saudis are likely to continue pumping large amounts of crude so they don't lose market share to their arch enemies. ben: to the annual global event for tech heads, the consumer electronics show. but strangely enough this time around, it's car companies stealing the headlines in las vegas. electric and self driving vehicles are all

arabia, of course, which is bitter enemies with it's fellow opec member, iran. so who is going to want to start cutting production first? are they going to trust each other, and not just within opec, but you also have to get nonopec oil producers. so the world just got smaller this week. >> yes. >> in politics the largest l.g.b.t. organization in the u.s. is now backing hillary clinton for president. the human rights campaign announcing their endorsement today which clinton is expected to accept next week. many fear if a conservative president last year's ruling will be overturned. if you log on to your twitter account, we want to show you what you would have seen. suffering a total outage lasting several hours. the problem beginning around 3:00 a.m. users were unable to share their updates on their smart phones or computer as shut down of twitser significant for it's 300 million users. the site is back up, and running. michigan's governor delivering the state of the state address tonight, live for many in flint dealing with the water crisis may be too little to

libby opec, russia, countries like venezuela? or will it be us, the united states? we took an important step toward winning that battle last month by lifting the four-year-old ban on oil exports. opec is fighting to defend their market share and exert their historical dominance over oil markets and energy prices. they're actually working to undermine our energy industry. as a consequence of president obama's nuclear agreement with iran, this state sponsor of terrorism will now be able to increase its oil exports at a moment when our moderate sunni allies and their partners feel increasingly threatened by iranian belligerents. as a result, saudi arabia has opened this big it to maintain its own levels of exports. letting your pins power base on the world stage is the fact that so much of europe depends on oil and gas from russia. gas is relying on oil and dollars to fund its brutal terrorist activities in the middle east and the on. part of defeating eiffel will include militarily denying them oil, revenues, which they are using to fund their operations. we cannot do

that they are ready to work with non-opec producers to cut production. this is a very, very big hurdle, because you even have a serious rivalry within owe poke between saudi arabia and ran. you'd have to get non-opec producers like russia onboard to agree to cut production and buoy praises. that's a very, very big hurdle. what are the fundamentals of the oil market right now? you have acute oversupply, and slowing demand and fears over slowing demand from china especially. these are the fundamentals right now that are really weighing on oil prices. >> is the fact that we are getting used to these market swings a good thing now for the stability of the overall market? after all, the dow can drop 500 points and close up 100 points. are we getting more used to the market swings, the mood swings of the market? >> i mean you can call them mood swings, but exsupreme value at this time is unnerving and signals to investors unnerved. they don't have a clear path forward and are very nervous about the future. >> dow up 90 points. stay tuned, because things change

saudi, opec's biggest producer with the opec, the 800-pound gorilla with opec. the reaction is that this could interrupt the flow of oil, prices would rise. but now we're seeing reality set in. the basic reality is that there is a global glut of oil. and that has been depressing prices. so whereas--basically if you're a consumer at the pump, don't worry about your gas prices going up. >> just your 401k going down. >> yes, and the u.s. shale oil has been under pressure, they've done everything they can to increase productivity and cut costs, but this year is when the rubber hits the road. where you have such low prices for oil, it's more expensive to produce oil than it is for saudis to produce oil. here is it is more expensive. shale oil costs are more expensive. there is a lot of pressure, and you'll see that bear out in the mining sectors of the employment report that we'll get on friday. >> that's why we ask you all these questions. thank you. >>> coming up next, puerto rico, and how severe the economy is for the island. and overflowing of the mississippi. we

russia and opec, the other non-opec producers, do not trust one another.y are engaged in the battle for market share. in some cases they are on the opposite side of geopolitical conflict. the energy ministers said there has to be some guarantee, some trust check system. he was not clear what it could be. he said he would not have to be legally binding, but a very sound agreement. stephanie: hold on. walk me through this. the participants. are we talking about blood brother pinkie swear? they're never going to trust each other. ryan: there are a lot of reasons why it is fanciful to think there would be a deal. for one, the first and foremost, you would have to have the russians and saudis as a part of it. they don't trust each other. the russians think the saudis have it in for them. when talking about cooperating with countries outside of opec, they do not think that is a sincere comment. the russians think the saudis want to destroy the russian economy. david: global conspiracy is harder than it looks. an opechis is production by nation. saudi arabia is t

if this is a production war, opec is winning.: if you have the saudi arabian companies' goal to be putting american businesses out of business, can we fight back? >> an oil export ban should have been done years ago. and we finally did that. so that is the first step. the other step is basically to continue to produce a lot of oil and try to keep our guys in business. one of the things i hate about this sell-off in oil. for years we have been trying to become energy independent and we were well on our way. but for the first time in six years since the shale gas revolution started we imported more oil year over year for the first time. that's not the direction we need to be going in this country. jenna: how do we change that? >> the best way to change it is to put a tariff on opec oil. they are dumping oil in this marketplace. if this were any other good or producer we would be screaming for fair trade. we would be in front of the world. but when it comes to oil there is nothing like that. i think that would be one thing to do. er

back in 1973, opec was hardly out of the headlines.bargo on deliveries from the big oil countries meant the price of a barrel shot up $3 more here in the united states, it became known as the first oil shock. the same thing is happening today but in reverse. there is no guarantee an insurgent meeting of opec will do anything to drive up the price of oil. all sides semen willing to budge. so as it stands enjoy cheap pump prices but do spare a thought for the affect it might all have on the global economy in 2016. john terrett, al jazeera, new york. >>> we could hear as soon as today about bill changes in how the u.s. government manages coal. the climate change would force federal official to his consider the environmental cost of mining and burning coal when making decisions on how to use land. president obama repeated his vow to try to do more to reduce greenhouse gas emissions in his state of the union address this week. >> one of the biggest players in the financial housing bubble has settled with the federal government. goldman sach

. >>> the opec group predicted the price of crude oil will make a recovery.at its peak a barrel of oil would cost $147. by late 2014 it dropped to just over $80 but still had much further to fall. it would drop to $28 before rebounding to $31. it is at those levels because the market is oversupplied. there is fear to be mor fear because of the lifting of sanctions of iran that it will increase production per day. >>> they are is concern about china's economy. >> consumers around the world will benefit, and oil-importing countries like india is growing strongly, it's really benefited from low energy prices. the danger though is if low prices now are going to be followed by much higher and volatile prices over the next couple of years. that's not really helpful for consumers or producers. i think the strategy is working but it's bringing a lot of pain with it in terms of the revenue for all the opec members even the best funded saudi arabia are suffering from much lower income. but we're seeing a big reduction in investment in parts of the world fo, which means

the next scheduled opec meet as good going to be june 2nd.arket is discounting the fact that we'll see an emergency meeting although you never know ooech and even if russia and opec were willing to cut it what about here in the united states? that's another piece of this effort. we saw a slight drop in production. people were enthusiastic but it's so small it's not encouraging at this point and we need more evidence here. the skeptics are saying it's a short covering today and it's a rumor driven rally. we need more evidence. >> up next, how can you make sure your voice is safe and secure? we'll do just that when squawk alley returns. >> a lot of break news this morning. this one on iran. >> sanctions have been lifted on iran. making the pact a few moments ago. covers 118 new aircraft from airbus. includes pilot training, airport operations and other support. so the deal was just signed. back to you john. >> thank you, sue. >> voice technology could move beyond asking siri for directions. it could be your home car and banking information but