and it was not only a decision by opec it was a decision by opec and by russia a nominal ally of iran to increase oil production so simply saying it's a choice between saudi and iran is that's misleading the second is that the american pressure combined with internal iranian problems is already having an effect so two of india's largest refiners one which is owned by the russians have said they're going to stop taking iranian oil from november shippers and insurers are already saying we aren't going to move the oil starting in the autumn now the iranian state line will be we can find a private market we can find private buyers and move this one that's not very easy to do given the sophistication you need to move or oil in an international market and two if they start trying to move well privately it's not only trying to defy the u.s. is trying to defy opec most trouble just how much pressure is under now we've already spoken about india is not going to buy as much oil if any oil from iran not sure what china's going to do what about european nations i mean they're even more susceptibl

number one, opec has a deal.t can't just increase production without effectively breaking the deal it just made two, some opec members can't raise output, like venezuela they are pushing as much out as they can because that opec deal covers all members it may be tough to push through changes three, libya may be much worse than first thought the daily output is down huge due to fighting at the ports opec nations may not be the only ones to blame for rising prices. canadian output is down by 350,000 barrels a die. and five, continued trucking issues meaning we in the united states can't add more production from the permian basin all of this at a time when demand is strong so demand up, supply down, so this may not just be an opec story. we'll have more on oil in a bit. >>> let's talk about all of this and more with gina sanchez you thought we would bring you on to talk about trade what do you think about oil? the president going after it that's a big tax on the u.s. consumer >> it is the general rule of thumb is oi

meeting many of the opec countries called outside your review and the u.a.e. for essentially trying to implement trump's agenda then i am glad. we've heard the u.a.e. is saying now that it's going to increase its production i mean is there a political rather than a market forces driven decision. of course it's political because we have to remember why economic diversification to is taking place in the middle east it is taking place because of the law or prices caused by the us shale industry and the u.a.e. and saudi arabia the only reason they're really pushing it is because remember the us has softened its stance on the qatar blockade the us is demanding that saudi arabian you eat take a greater hold over issues in the middle east the u.a.e. and saudi arabia are pursuing a policy of appeasement to the us but they have the reserves to be able to do so but venezuela and nigeria iran these other opec countries do not have the reserves to be able to continue this sort of policy they want the prices to stay up and there is a lot of anger over this recent move towa

the president piling pressure on opec.t is almost like he has gone to opec and going, when a going to cut? the commodity complex generally a little bit weaker this morning. let's get to first word news update here is juliette saly. tte: angela merkel and the bavarian sister party are set to hold joint talks in berlin later today in an attempt to brother -- broker a compromise in their dispute over migration policy. resolution to their standoff. the head of the bavarian csu said he had proposed resigning from merkel's cabinet but have the threat on hold to allow the talks to continue. >> everyone knows it's serious. i would like the christian democratic party and christian social union to begin working together. together we are very strong and people expect patience from us. important.is also lopezte: andreas manuel been elected as mexico's first left-wing president in recent times. the earliest figures announced by the electoral board gave lopez obrador 53% of the vote handing a crushing defeat to the business from a parti

pressure on opec all that idea of the oil exports not coming from iran or remember the opec countries the whole reason a lot of these countries are in crises in the first place is because of the u.s. shale oil industry which brought prices down in the first place the u.s. has previously warned countries they must stop all imports from november or face sanctions from america no exceptions our focus is on getting as many countries importing iranian crude down to zero as soon as possible we are also working with oil market participants including producers and consumers. to ensure market stability iran has warned any boycott of the oil industry could push prices higher it company provides around two percent of global supply or three million barrels a day the u.s. is already concerned about rising prices at the weekend u.s. president donald trump called saudi arabia's king solomon and said they do agree that the saudis would boost production but there's no sign that prices are dropping particularly as the global economy is growing and demand for energy is up india south korea turkey all u.

opec's too many surprises in that report. jacob, has defended the oil cartel against a trump's demands for higher oil output, saying opec doesn't shoulder the blame. what's your take on this? i think, you the blame. what's your take on this? ithink, you know, lots the blame. what's your take on this? i think, you know, lots of what is going on is the trump administration is planning a statement that it wa nts to is planning a statement that it wants to impose sanctions that it will ring iranian oil exports down to zero, a couple of billion barrels off the market, prices reacted and there is concern if that happens you will see a tighter oil market and substantially higher prices. the trump administration's aims here are to get opec, saudi arabia, the uae and a couple of other producers to add additional production capacity. briefly, some experts are saying higher oil prices are a bigger threat to the united states than the ta riffs threat to the united states than the tariffs and trade war with china. what's your view on this

we were the king of opec. now, why did the good folks in texas, who normally want to limit government and produce oil, why did they agree to heavy-handed intervention in the market? to stabilize prices. to vanquish that boom/bust we saw from the '20s and '30s. now, some folks thought that opec took over from us in 1972 and they lost it in 2008. now, some folks thought maybe shale oil would be the new swing producer. we saw that failed. $28 brent, $26 wti in 2016. that didn't work out too well. others think this new entity formed by saudi arabia and russia will be the new opec. i have my doubts but we can discuss this. the bottom line is this, but we haven't seen in four generations this type of volatility. no swing producer, nobody regulating supply, no peace in oil prices. now, turning to the here and now, as chairman alluded, we have forces pushing prices down. supply is growing faster than demand. the iea, the eia, opec, we were barrel counters, all of us see the market loosening up as we go into next year.

within opec, within the non- opec countries, mr. bordoff you mentioned that really it is only saudi arabia that has true spare capacity. your suggestion that u.s. shale oil is not necessarily spare capacity or that swing supply that is needed. so can i have a conversation about this, where do we go if we do have this severe disruption that iran can clearly contribute to an addition to whatever else we have seen and how does the global spare capacity factor in and what assurance do we have that we've got enough to take us through. >> thank you, chair. the question about where the additional supply can come from in the short term, we have to take note of the fact that the vienna reduction cuts agreement by opec and the non-opec producing company they are still maintained. of course they are producing a lot less than their target. also they're coming from the unintended production declines in countries like venezuela. the fundamental agreement we reached in the last june meeting, was that they will increase production and lower the lev

two, it goes against everything about opec. am sure opec members must have looked at this in horror. .hey backed away from it they seem to have backed away from the exact agreement to go to 2 million barrels more. , and find it extraordinary i thought a deal would be done in terms of opec, but the fact is there is good demand for oil. anna: indeed, that goes to that point. you talk about a long-term perspective, and maybe trump can find a bloomberg in the white house. you through this to our attention in your note. the fact that we have seen such a wrapup in chinese demand year after year. alan: people talk a lot about the supply, but they don't talk about the hidden demands. you get the same in terms of oil demand essentially. unlike many other commodities, it is relentless. china and india, india has a similar perspective. the world economy is in good shape, but you have this structural move to more oil into the economies in terms of china that is supporting oil. ourfundamentals for us, prices too low? not necessarily. what i

on the other hand, opec and nonopec doing their best to put more supply into the market. that, i think overall the net sentiment still remains bullish. haidi: if you take a look at the plan to injection an additional one million barrels, does that take the market into some sort of equilibrium? >> the one million barrels per day came after first of all a lot of internal conflict within opec. so again let us remember iran and a few others within opec, vens way lark iraq, and syria included, are against theaven one million barrels per day hike. the saw key, the russians, a few arab neighbors of saudi arabia that are capable of increasing output are probably going to be a bit cautious. the other thing to bear in mind is that you compare the one million barrels per day if they indeed -- it's going to take time for them to put that into the market and on the other hand look at libya and canada, just these two unforeseen outages alone in the last couple of weeks have taken nearly 1.4 million barrels per day out of the market. u have the market looking at production in venezuela,

vonnie: donald trump turning up the heat on opec. he tweeted the opec monopoly must remember gas prices are up and they are doing little to help. they are driving prices higher as the united states defends its members for little dollars. answered asas been the saudi's lowered oil pricing. us, was this a direct response? >> we have seen this a couple of times. opec or the saudi's have read the tweets and responded with speed to what they are hearing. it was interesting. what they have done is reduce $.20 a barrel but it is indicative of where they see the supply demand going. a pricing level that is only followed by the rest of the middle east. what are the politics here? saudi arabia doesn't want to look to partner is as though it is letting washington call the shots but it appeared to be reacting. i ran singh are not helping anything. is this a clinically good move? >> trump called it a two way street. it is a three way street if you bring in iran. the saudi's are continuing to be happy about the fact the u.s. is re-imposing sanctio

does he want the saudis to break from opec?i think the president wants lower gasoline prices heading into the summer. how that comes about, i don't think is particularly his concern. does he wants to see the end of opec? i think quite clearly, he has done for many many years. i think he needs to be really careful what he wishes for, because without the spare capacity that countries like saudi arabia and one or two others in opec hold, we would have no ability to deal with any of the disruptions, even the ones we have seen in the last couple of weeks. >> saudi arabia cutting oil prices for the month of august, following donald trumps tweet asking opec do more to stabilize prices. the president tweeting "they are doing little to help with anything, there are driving prices higher. this must be a two-way street, reduce pricing now." has the president gotten what he wants to some extent with the actions were learning from saudi aramco this morning? >> it is a little marginal, but it is significant. in essence, they will only cut pr

. >>> president trump sending another warning to opec as oil prices rise. but will his strategy actually help ease prices at the pump >>> in for kelly evans what's old is new again. amazon looking to reportedly publish a toy catalog just like sears used to do we'll explain why. "the closing bell" starts right now. >> good afternoon and welcome to the "closing bell" everyone. and michelle, thank you for being here with us we'll get to all those stories we mentioned in a moment, but first let's check in on the markets. we are back near the highs of the session and have been for the last couple of hours that means the dow is up 0.6% or 141 points and we've got bigger gains there for the other three indices. >> we're going to have much more on the markets in a moment but first trade continues to be a major focus for investors. we'll have more from beijing and have a look at the tariffs said to be imposed on china and from china. and we're going to start first with phil. >> and we'll talk about china in just a bit, but let's first talk about what's been moving a

this is bloomberg. ♪ julia: president trump turning up the heat on opec, tweeting the opec monopoly mustrices are up and they are doing little to help. if anything, they are driving prices higher as the u.s. defense many of its members for very little dollars you'd this must be a two-weight street, reduce pricing now. tining us is tamara asner essner, nasdaqar and lows, and julian emanuel is still with us. president trump, has he had that much impact on prices? >> the iranians are doing the part this morning with comments that they might close the straits of her rose, an -- straits of hormuz. what we have seen is that opec has been extremely effective in providing a floor a prices. now that we are in a precarious state of global supply around the world, the question is, can they provide a ceiling on prices? they are just as much concern with prices rising too far, too fast, as they are one prices are too low. julia: he even points to the saudi's, saying you need to do double what was agreed at opec. that is more than the saudi's capacity.. it limits addressing other shocks the market fac

the only intervention again will be what opec added for production.w that premium five ork into we think six dollars. ramy: this is the seasonality function. go ahead and take a look at the june number, 10.6% is the rise for wti crude. last time it was this green, back in 2000. that was 18 years ago. looking ahead, what is your forecast for where wti and brent might be by the end of this year? only have a look at the calendar year, we have got the beauty i between $70 and $80. you can see when our trading is in our range. we are not expecting to see any further major rallies in the oil price because we expect to see u.s. reduction continuing to rise. on the brent we are keeping it $74 and $84. we are trading within our range right now. over the course of the rest of this year, if we are going to see any rallies, we expect it to be modest, and not expect to see them breakthrough the top end of our ranges through 2018. ramy: switching to another commodity, i want to talk about copper. this is a big bellwether in terms of growth for china. hop into the b

opec numbers simply can't raise output. plus, libyan output is causing concerns canadian output is down as well and pipelines are slowing production what does this mean? rcb capital markets, great to have you with us this is a strange brew you have to figure out. >> yes. >> what does this mean in the short term for oil prices? is the path of least resistance higher or lower at this point? >> i think the path of least resistance is higher, simply because this market is tightening president trump continues to tweet. there's really not a will the that opec can do in terms of putting additional barrels on the market rapidly saudis and iraq have pledged to put more on the market again, that's going to take some time as you pointed out, libya is now down by 850,000 barrels because of problems with their eastern ports. we have venezuelan production continuing to drop and we haven't even had the iran energy sanctions kick back in yet. so, this market has significant supply disruptions and it's a real question of who can put barrels

president donald trump has accused the oil cartel opec of manipulating markets the u.s. isn't part of the fifteen member group of president trump is pressuring its ally and opec stop would use the saudi arabia to increase oil output in its city on fox television trump said opec to stop its manipulation of the market because the u.s. was protecting many of the members the white house has been backtracking on trump's tweet earlier in the week which appeared to pop pressure on allies saudi arabia trump wrote saudi arabia's king solomon had agreed to produce more oil while also suggesting it was one of the opec countries being protected by the us how do you know castro has more from washington. president donald trump increased his pressure on saudi arabia by appearing on fox news and saying that he was one hundred percent sure that opec is manipulating the oil market he went on to say that quote they better stop it because we're protecting those countries many of those countries and it is no secret that the country he is referring to there is saudi arabia trance appearance o

. >> still to come, a divided opec . ♪ it's 830 a.m. here in sydney.ts are opening up just in 90 minutes time. futures pointing lower by a 10th of 1%. in new york it's just past 6:30 p.m.. you're watching daybreak australia. >> as the trump administration steps up its trade war, u.s. trade just china are said to have ground to a halt. we are told there have been three rounds of formal negotiations since may but treasury secretary steven mnuchin. communications have dried up and there are no immediate plans to resume contact. china said president trump's disregard for rules could have catastrophic consequences for the wto. situation is an issue. he said the wto collapses the world economy would decline by two have percent and 60% of global trade could that disappear. president trump also has his eye on nato. not content with parading his allies about defense spending being 2% of gdp, he is now proposing doubling the target. he made a suggestion in a closed-door session in brussels. it is described as not the most pleasant atmosphere. solvent wealth fund

the last time we spoke we had this big opec meeting and i'm just curious to hear whether or not in your view the decision taking to increase output production is welcome and how much extra production you're factoring in. >> well, the decision to increase production so that the opec group as a whole match the actual commitment is very welcome because there's considerable uncertainly over the next few months about the level of exports in iran of course there's considerable uncertainty about the situation in venezuela and recently a renewed conflict in libya so the instability in libya is another factor so the prospect of higher supply from members, which we have already seen signs of of course, that's going to ensure stability of oil supply to markets over the next few months. >> now president trump who obviously is in europe now send a multitude of tweets directly at the opec over the last couple of weeks or so demanding that they do something on the output side to help bring oil prices lower. do you think these type of tweets are effective >> well, what the president has in the back of

basically, opec seeing strong non-opec supply coming next year.ly would be enough to meet demand. where does that wind up leaving saudi arabia's spare capacity? where will that leave them next year if brazil can make up for that? david: you have some real curtailment of production. alix: right, but if we can do it, where does that leave the market situation? coming up, lisa erickson of u.s. bank wealth management will be joining us. this is bloomberg. ♪ alix: upping the ante. president trump pushing the trade feud with china to the brink. china vows to fight back. rattled markets. s&p futures headed for the biggest drop in weeks. pay up. president trump tells nato allies to pony up their share for defense spending as alliance leaders gather for a brussels summit. you are looking live at the family photo of world leaders at the summit gets underway. kind of awkward. david: welcome to "bloomberg daybreak." i'm david westin, here with alix steel. one of the most interesting nato meetings i can remember. president trump will go to england and then a m

producers this weekend. >> opec is manipulating and they allowed less than we thought last week.y have to put out another 2 billion barrels in my opinion. because we don't want that happening. don't forget, the one negative to the iran deal, you lose a lot of oil they got to make up for it who is their big enemy iran think of it. iran they have to do it i have a very good relationship with the king and the crown prince of saudi arabia and the others around. and they're going to to put out more oil >> so that was president trump there essentially seeming to punt off the question of higher oil prices to opec after he had already said he had a productive conversation with king salman over the weekend the saudis keeping pretty mute about this we heard from saudi officials speaking to the "wall street journal," we didn't agree to any specific number here so i think that the question, of course, going forward for markets and for the saudis and iranians themselves, trying to tell the difference between the tough trump talk and the trump action, brian? >> hadley, correct me if i'm wrong,

employer to implode as a trade organization while so far we have two sides to the same conflict within opec we have the saudis and the russians who happen to be the top order exporters so they have a lot of clout in the decision making of this organization and then we have their ideas and their allies so if we look deeper i think this is another confirmation of an ongoing trend where would lead that is like trump like c.c. like in hammond been to them and all those who are willing to be members of the club of the powerful and by moving this way or pushing this way they are ignoring or kind of jumping over all these treaties and international organisations so unfortunately we are now in a world where by lack the deliberations between strongly that is more significant than the traditional kind of alliance and global diplomacy. rebels are losing ground in southern syria with several tiles of villages accepting government rule syrian and russian forces have been waging an intense bombing campaign on that a province for almost two weeks and talks to end the fighting have failed the free syrian a

president trump is turning up the heat on opec.is doing little to reduce gasoline costs. he said, if anything, opec is driving prices higher, while the u.s. defends many of its members. in thailand, rescuers are trying to drain water from a flooded cave before they can extract 12 boys and their soccer coach. right now the only way out is diving. americans celebrated their countries 242nd birthday in traditional style last night. fireworks exploded across the nation. boston was where bloomberg provided exclusive coverage of the boston pops fireworks spectacular. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. tom: thank you so much. manyurve flattening and signals. w futures up, 128. curve stable right now. lots of people talk about strong euro. oil with a lift. in, flattening out the yield curve. the mexican peso, because we care. germane care about carmakers with the threat of tariffs on a trans-atlantic

here more than 50% higher than a year ago and the over achievement by opec and non-opec producers and for more than 3 billion barrels january 2017 and below the five-year average. from the low point and nearly $80 per per barrel in may 2018's going forward and the global oil demand growth. but there are signs of stress with oil price increase. and to originally reduced or eliminated subsidies and translate to the higher prices at the pump. and to see sharp rises in their price of oil. and it has escalated to inadvertence the impact of the economy. there is several major supply uncertainties. we cannot know how much uranium oil will be removed but the recent indication that the oil production in venezuela is continuing it is only 1.3 per day and could be below that by the end of this year. the recent strikes a goes to about half per day but the situation is improving and we cannot be sure. the disruptions are happening including iraq and canada in the north cm brazil. under such market conditions decisions by the signatories to increase production is welcome but it comes at the expense

to agree to new terms of the nuclear deal it wants to save the nuclear deal the reason trump wants opec wants all prices to go down is because it is impacting his policy of imposing tariffs on the e.u. and on other countries it's affecting the u.s. economy domestically in a way he did not foresee so the e.u. will be keen to ensure trump feels maximum pressure from his policies in order to get him to back down on issues such as the tariff so they will be very keen to ensure that iran comes on board that iran is not threatened that iran has some sort of life so in other words is the world versus trump saudi arabia and the u.a.e. jordan's foreign minister says dozens of trucks loaded with humanitarian aid are waiting for the go ahead to pass into syria him and soften the calls for a cease fire as soon as possible to avoid what he calls a humanitarian catastrophe hundreds of thousands of civilians have been forced from their homes in recent days by russian syrian offensive chance stratford is in the israeli occupied golan heights with more. well you can see there on the horizon is one of a

you talk about russia and saudi arabia i think opec, non-opec still have more cohesion than they've haddecades, really and i think what's good for both sides is actually working. putting more barrels online ten days ago was actually good for markets. energy is defensive in this take >> good discussion, guys up 13% the energy sector in the last three months. dan, thank you be sure to catch fast money beginning 5:00 p.m. eastern time one top tesla watcher has a big prediction for the auto maker, and he will reveal what they are on that show >>> now we've got some news coming out of the white house. >> reporter: that's right. the white house press briefing broke up, and i had the opportunity to ask the press secretary, sarah huckabee sanders here, putting out a statement today say the president continues to undermine the economic progress that he'd made with these tariffs and trade action and here's what sarah huckabee sanders had to say when i asked her that question. >> the president is focused on protecting american workers and industries and creating a fair playing field. that's what h

back to opec >>> let's bring in john.ricing the opec monopoly must remember gas prices are up and they are driving prices higher as the united states defends many of their members for very little money. this must be a two-way street, reduce pricing now earlier this morning iran's opec governor said president trump's tweets have increased prices by at least $10, and is quoted as saying please stop this method joining us john kildoff, cnbc contributor. good to have you can us. >> good morning, melissa >> all things a racket >> that was a good one that was a good one. >> i try >> do you buy that, his tweets have increased prices by ten bucks a barrel >> i don't know if i do or don't but i love that president trump is rattling their cage so badly. i mean they are just reacting to all of this to a person over there, severely, and this latest protest about ten bucks a barrel, i think what has raised prices ten bucks a barrel is more the administration's policy about getting their exports completely cut off to the rest of the wo

just take opec as an example. i know one of its characteristics on where it's going to make investments is the degree to which the investment or the activity would support reinforced foreign-policy more broadly. how do you see that playing out right now? how are you engaging with the white house on foreign policy priorities? i posed the question to everyone and katrina, how do you think about the development assistance activities being partnered and closely tied up with the administration government's broader foreignpolicy initiatives . >> the nsc put up a national security paper. opec and.development finance is mentioned in there and we're not going to Ãthe chinese dollar for dollar or anyone else but it's been active in regions and our primary focus is indo pacific , northern triangle, latin america. >> is a piece of our portfolio. we are a last resort in a lot of these places so a lot of these places want to go to afghanistan or iraq so that's one reason we exist is to go into regions that are a little choppy.

opec issues and a output outlook. canada's central bank this -- announces a rate hike. fox stepping up the bidding for sky. >> it could go higher from here. scarlet: experts share their analysis of the global economy. changing policy, there will be stress on spreads. if we lose those animal spirits, we have an issue. scarlet: heavy hitters in tech and media weigh-in from media valley. it is not yet finished. >> it is disruptive at some level, but positive. everything.d amazon is changing everything, facebook and google. scarlet: it is all straight ahead on "bloomberg best." welcome. i am scarlet fu. ," your "bloomberg best review of the analysis and interviews from bloomberg television around the world. after a marathon meeting last week, theresa may announced her cabinet was finally united behind a plan for britain's divorce from the european union, but the solidarity didn't last through the weekend. the u.k. brexit secretary david davis and his deputy have quit, plunging theresa may into a crisis. the resignations come two days after the prime minister announced she h

and non opec producers a great last month to boost output after reducing production last year to ease a global glut. societe generale is buying the equity markets and commodities business of germany's. acquisition still needs regulatory approval and would enable the french institution to expand its operations in europe's largest economy the news comes after speculation germany's biggest the most trouble linda dodge a bank had been considering a merger with comments. let's talk about this with the red bulls in our financial correspondent in frankfurt conrad is this becoming a trend we have seen it with deutsche bank now comments dropping riskier parts of its business yes fan you know after the financial crisis the regulators introduced stricter rules stricter regulations stricter capital requirements for the banking sector in order to reduce systemic risk and for some bags especially the weaker ones in terms of capital this means that they simply cannot continue certain risky trading activities this is the case to some extent for bank and in the case of course that's bank here this is

well so far we have two sides to the same conflict within opec we have the saudis and the russians who happen to be the top order exporters so they have a lot of clout in the decision making of this organization and then we have their ideas and their allies so if we look deeper i think this is another confirmation of an ongoing trend where would lead that is like trump like c.c. like him and been cement all those who are willing to be members of the club of the powerful and by moving this way or pushing this way they are ignoring or kind of jumping over all these treaties and international organizations so unfortunately we are now in a world where bilateral relations between strongly that is more significant than the traditional kind of alliance and global diplomacy. rebels are losing ground in southern syria with several towns and villages accepting government rule syrian addressin forces have been waging an intense bombing campaign there a province for almost two weeks on talks to end the fighting a failed the free syrian army says it refuses to surrender. and possible. with the cele

for every dollar that opec has invested, the private sector has invested $2.76. in indonesia, opec has teamed up with usaid and renewable wind farms for clean power to 75,000 indonesian households, and our challenge corporation is promoting good government in indo-pacific nations. right now mcc is spending $500 million to build hundreds of kilometers of lines into nepal and recognizes that country's energy potential today at the forum. $350 million contract with the government of mongolia to develop new long-term sources of water supply. in addition to helping mongolia fulfill a critical human need this will position the country to attract new investment and stimulate private sector-led growth. i know that the mongolia foreign minister intended to be here today, but unfortunately was called away for business. this mcc program will benefit mongolia, the region, and the world. i could go on much longer and give you more examples. american companies have been a force for prosperity and good throughout the indo-pacific region. our good faith as partners are evident i

. >> president trump has renewed his attack on opec, saying the cartel is driving prices higher and doing little to help. that many of the group members are spending very little money. futures gained fractionally, extending crude's 15% rally since early june. the policy tightening ways may soon wash up in bangkok. minutes from last month's pink -- bank of thailand meeting show officials discussing the appropriate timing for a rate hike. the bard weakened more than life percent against the dollar in the second quarter. u.k. police say two more people have been poisoned in southern england with the same nerve agent that british authorities say was used in march 2 attack former russian spy service group --led -- sergei screwball sergei skripal and his daughter. secretary of state mike pompeo returns to north korea on .hursday the white house said pyongyang was no longer a nuclear threat. day onnews 24 hours a air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> thank you. isn't stocks paring gains. when you look at

they do not want to overdo it. >> opec are doing their part. the market needs time. the market. there are things outside our hands. politics as well as how much production is coming from shale oil and canadian sand. predict. >> in thailand, the third rescue operation has begun. the official overseeing the mission said he hopes they will come out today. for the eight boys rescued after being trapped for more than two weeks were described as being in good health. global news, 24 hours a day on air and @tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . let's check on the markets in asia. a mixed session in asia. slightly tilted upwards. fearse been talking about of an escalation in the trade war, traders focusing on fundamentals. the focus in japan. china is down and we are seeing weakness in the australian market. declinereflected in a of 0.4%. i want to run you through the biggest movers in these markets. this companyld be in japan, a refinery announcing a merger tod

he is pressing opec members to show any supply gap that will arise when u.s.anctions curtail iranian crude exports. the opec representatives said capping the sdr would be a mistake and push oil prices higher. double news, 24 hours a day, on , inand at tictoc on twitter more than 120 countries. i am yvonne man. this is bloomberg. rishaad: let's get back to our top story. barb athed yet another his traditional allies. pres. trump: i think the european union is a foe, what they do to us in trade. you would not think of the european union, but they are a foe. russia is a foe in certain respects. china is a foe economically. that does not mean they are bad. it does not mean anything. it means they are competitors. rishaad: two of those apparent foes meet in beijing for the annual thank you-china summit -- e.u.-china summit. jodi schneider is with me here in hong kong. let's start with those donald trump comments, first of all. e.u. as aid label the over the interview weekend. this is earlier after having been provocative on several fronts. he had confronted -- rish

he's referring to the president when he tweeted last wednesday about opec pretty much saying that opecs and if anything are driving up prices higher. we know opec consists of 1 15* nations. they -- 15 nations. they work on petroleum policies. there's a lot of tension in the middle east. certain arab countries are siding with the united states. that's creating tensions with iran. you have saudi arabia that said they're willing to put spare capacity back onto the market. russia said we're willing to increase output, so if you have supply increasing, hoping the price will drive down. we've seen, we're going to bring that on the screen right now, the price of oil has climbed higher. there was a note i saw within the last 24 hours from morgan stanley, they believe that price is going to climb to $85 a barrel. why is that happening? you have sanctions in iran, libya, venezuela. you have an outage in fort mcmurray canada. that is contributing to possibly a weaker supply, demand climbing higher, so there's concerns that it's going to go a little higher. iran, though, fighting back, saying if t

ok issues its -- opec issues is outlook. contents keeps stepping up the bidding for sky. >> it could go higher from here. .mily: experts share >> there will be stress on sprint. >> we are not complacent on the possible risks. >> if we lose the animal spirit, and we have an issue. emily: tech and media weigh-in from sun valley. what they are doing is disruptive. it is positive. >> facebook changed everything. amazon is changing everything. emily: it is all straight ahead on bloomberg best. hello and welcome. i am scarlet fu. this is the best. after a marathon meeting last week, theresa may announce her cabinet was finally united behind a plan for britain' is divorce from the european union. at the solidarity did not last through the weekend. >> david davis and his deputy have quit, plunging theresa may into a crisis. after resignation comes the backing for a plan to keep close ties with the european union. is this a crisis or not? >> one of the worst in the last year. lot depends on what happens in the next few hours. what wi