so the reason why opec -- there may not have been an opec oil embargo, but there were opec price increases to compensate for the decline of the u.s. dollar following the shock in 1971, the delinking of dollar to dollar to gold. our senses were that oil prices were too low. it was unfair to producing nations. they were giving a nonrenewable resource at such a low price. this means if you have sustained low oil prices, obviously the middle east will become more important in terms of oil production, because it makes no sense to produce anywhere else. you can't make money off of it. ironically, low oil prices tend to increase opec's power. high oil prices may benefit opec in the short term. i mean, opec enjoys an increase in oil revenue over the 1970's. but that actually created a long-term problem for them, because you might want to bear in mind -- every boom lays the seeds for the next bust, and vice versa. an oil boom, having high oil prices leads to finding new sources of oil, which leads to low oil prices, and the cycle repeats itself. so basically that is how it affects opec's role. righ

well it's open we have opec on one side and then we have the so-called opec plus group on the other that includes $23.00 nations also russia and especially russia seems to be hesitant to actually cut oil production because what we've seen in the past is when opec plus did cut oil production the u.s. did not actually the united states were pumping more and more oil when opec plus them stabilized the prices and well we've seen it in the past couple of months that the united states actually became the biggest oil producer on the planet and so as i said especially russia might be hesitant to cut rates again. ok and i look we're seeing the price of a barrel of crude already under $50.00 how low do you think that this can actually go well it is clearly possible that we could to retest the lows that we saw at the end of 2018 oil back then was at around $45.00 so that is the best years intermediate oil that trades here in new york so that would mean another drop of 10 percent is clearly possible and what we see what's happening with all right now it's not just the demand side out of china we als

more importantly, senior sources will say any suggestion there is a pressure between the opec and non-opecropriate. what we've heard is while there is some concern about russia's position, the suggestion that the group is fractured in any way is not true. on the other hand, it will be important to see what they'll do on the leading as had been suggested or will they move to not necessarily go that deep, instead choosing to assess the coronavirus into the future. >> that is something to look out for. we also asked this question to the bahrain oil minister not a member but sometimes acting as an observer. an important voice in terms of what the opec group would do he told me he would endorse a cut at this stage in order to stabilize the market amid the outbreak i asked him about the situation in bahrain this morning that confirmed the sixth case stemming from iran which would amplify concerns listen in. >> they've been ready for it now it is a means of containment. we have a committee looking out for this they have the right means and centers to make sure it does not spread it does have an i

that means opec is going to become less and less influential, than opec+ will become less and less influentialorward. so i think all the signs that annemarie was pointing to our four more downward pressure on oil going forward. nejra: we have had a record of run of losses in copper. one analyst saying the virus impact has barely been priced into commodities. basically they talk about the outbreak going to die to have a massive human and economic impact, disrupting supply chains, creating headwinds for chinese demand and imports, that have barely been priced into the commodity markets. they include copper, palladium and others in that. they say those metals in which china is a big net importer will see major increases in inventory. if what they are saying is right that the commodity markets have barely priced it in what, impact does it have for an allocator across assets? benjamin: it says stay away from those commodity assets. but i think it depends on how quickly you get this recovery and what china does in the us to military efforts. if china goes back -- does india -- goes -- you get this r

all eyes lead to opec.o focus, the loser, down some 14% as the sales met estimates, but they see a challenging year ahead. a lot of it has to do with the hp integration. francine: thanks so much. alphabet post fourth quarter revenue that missed analyst estimates. sales of youtube disappointed on wall street. stock fell more than 4% on extended trade. still with us is jim o'neill. bloomberg now is opinion's european tech collin miss. they disclose for the first time what their business was doing, alphabet. -- they had been talking about the profits with youtube without actually breaking out how good are badly it was doing, and then the moment they do reveal it has 15 billion dollars in annual revenue, they say that is not quite as great as we thought it was. that excludes some subscriptions. paying $10 a month, for you to coreum, but ultimately the is not as strong as people thought. makes more than $8,000 per month. important is that for alphabet? : google still makes 82% of revenue from ads. that is a lot

we've had calls earlier that opec might blow the roof off here and go deeper than that one suggestion we'll see cuts about 1 million barrels plus and here weighing in on what needs to be done as a result of the loss from the coronavirus. >> i think about 500,000 barrels a day. i think if china is successful in containing the virus by march, then we estimate the demand to decline in china by 440,000 barrels a day year on year but there are ripple effects on other asian markets that will likely flip into the negative territory in the first quarter. we'll see demand disruption likely that is the best case sken orrio if we assume the containment by early march. as y as. >> the demand we have seen has sent oil prices down double digits throughout the course of january. we have seen oil recovering from those recent lows. still nowhere near what it was at the end of last year. this technical committee will likely see this cut. saudi arabia will be pushing to ensure this cut goes ahead russia has been more reserved preferring to extend the deal beyond the march deadline and over deepening cut

plus, how opec is dialing up its response to the crisis in the oil markets.s, big changes at the top for wework as it installs a new chief executive. later on, tracking the technicals what the charts from friday's selloff could be telling investors for the rest of the year a very busy hour still ahead when "worldwide exchange" returns. ♪ yes i'm stuck in the middle with you, ♪ no one likes to feel stuck, boxed in, or held back. especially by something like your cloud. it's a problem. but the ibm cloud is different. it's open and flexible enough to manage all your apps and data securely, anywhere, across all your clouds. so it can help take on anything from rebooking flights on the fly, to restocking shelves on demand, without getting in your way. ♪ ♪ the unparalleled landscape of park city, or the famed peaks of whistler, you've faced the hassle of lugging your gear through the airport. with ship skis, you're just a few clicks away from having your skis, snowboard and luggage shipped from your doorstep to your destination. with unrivaled pricing, real time tr

the past month the price of bring crude is full of about 15 percent prompting the world's oil cartel opec to consider for the production cuts well today we're seeing a slight recovery in the cost of crude but sure if that's a sign of what's to come let's bring in joseph gottschall a he's head of oil and gas analysis at fitch solutions so someone sneezes suddenly oil prices slump just explain that 1st of all this china connection with the rest of the world. sure no problem what we see going into the end of 2019 was a stabilization in china's economy that was in do in part to the signing of the u.s. china trade deal which kind of reassured markets and kind of provided some stability for the economic outlook for china sue for 2020 we know we had some. issues potentially with growth but we figured that the chinese economy would stabilize but coronavirus is really not china back the imports as you mentioned earlier $3000000.00 barrels in january down from the month before those are really the issues that we're looking at now so the questions around how the coronavirus will impact chinese deman

let's send it now to dan murphy at opec.is a big deal for those oil producing countries. >> that's right. prices stabilizing but not after doing the texas tumble after the coronavirus continues to spread beyond china reaction here as they come into their meeting next week, we spoke with the energy minister to get his reaction to that price decline from last night. the impact it is having on the oil market opec isn't out of ideas just yet when it comes to managing and the economy as a result of this virus. listen in. >> we do communicate with each other. we use every opportunity to talk with each other. the uae because he's visiting from this conference and opec was here because he's at the english conference we had a good chat we did not run out of ideas. we haven't lost our funds. >> opec is meeting next week the energy minister didn't offer any suggestions. it is important to point out just last week, russia's minister has not decided how to respond. that meansnext week's meeting is going to be a live one. we are monitorin

the next step, the opec meeting in early march, within opec plus other countries have reduced productionn the last quarter's. russia has increased. before we have credible otherwise i do not think the oil price -- anna: what about the impactanna: -- anna: what about the impact, i was looking -- economist at bloomberg or send this rise in inflation will not last because of the strength of the dollar and the fall in commodity prices. do we expect weakness in oil prices generally will pull down inflation globally? how they are looking and one to the other, inflation expectations in the u.s. are on one side, and the oil price on the other. inflation expectations have been falling, the reality of last months. expectations have fallen recently in line with the fall of the oil price in the u.s. they both move together, and falling inflation expectations, back to the first question, it is an open door to act aggressively. anna: to cut rates? alain: you said it. anna: what is your expectation there, this is a fast-moving story around the coronavirus. in terms of the impact it is having on the eco

now we move to the under demand side of it so opec, looks at whether they cut or the saudis cut.one doesn't make a difference to me, cuts couldn't send it up, i think we're over supplied and now under demand. >> where do we get, we're in the u.s., what price of oil do we see production get cut meani meaningful meaningful meaningfully >> you nailed it oil is a four letter word, debt. there's a couple hundred in debt outstanding. you can hate cartel -- opec was a four letter word for years, they're a cartel, price fixers they wish they could get together and say stop the madness. there are companies that have net debt three, four, five times to ebitda. some stocks down 30% this year they have to keep drilling short answer, karen, i don't think there is a price -- >> on the way -- brian and karen, on the way up they say 50 you see a massive amount of supply come on 42 is a major level in wti crude and every $10 or so, that's where you see the real issues come on when production comes back on. >> and by the way, it's not just oil. if you're out there and talking about natural gas at

we are waiting to see what comes out of opec+.virus story dominating the headlines, i have to think that the demand story it's worse for here. what does that mean for crude? scott: how much is this going to affect demand across the board? it is a very big factor. down,he extended shut u.s. companies are's adjusting -- companies are suggesting they shut down, it doesn't seem like that demand is going to increase anytime soon until we can get this coronavirus under control. until that happens, we have to wait and see what is going to come out with this coronavirus and if that could be subsided one way or another. until that happens, we don't expect to see any of those big imports to china happen anytime soon. china can fulfill that trade what -- that phase i trade deal, that is why you are seeing action on the downside .retty much across the board the hardest hit market i am looking at is the hog market, with the african swine fever running rampant, still spreading, even hitting germany right now. until those imports can come in, we

you think opec goes it alone at the opec plus deal starts coming into more focused? will: to some extent opec will be going it alone. one of the things we have afforded today is that buying saudi arabian crude cuts demand already so they have offered crude in april. there is a mechanism there that the saudi exports will decline anyway and the saudis will probably be comfortable with that and happy with that trend. i think russia stays in. the real question is how much they contribute or are they just lending moral support and pledging not to increase productionwhere saudi cuts back. one thing to say about russia is it is a more complicated process for them. there is not a centralized oil company. was meetingvak russian oil companies in moscow and that is presumably part of the process. guy: thank you for much, indeed. will kennedy joining us. let's go back to hong kong. we fixed our issues with sophie kamaruddin. signs thee we seeing number of patients are finally stabilizing? theie: we saw a drop in number of reported cases, some encouraging signs as experts are loo

opec is feeling the pain from the coronavirus. forecast forashing global oil demand.t has curbed oil use in china, and that leaves open facing a renewed glut. officials with u.s. reportedly accusing huawei technologies of being able to tap into mobile phone networks. according to "the wall street journal," those officials believe the chinese companies are using backdoors designed for use by law enforcement. huawei rejecting these allegations. the trump administration has urged allies to bar huawei from their networks. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm viviana hurtado this is bloomberg -- i'm viviana hurtado. this is bloomberg. romaine: coming up, we are going to talk about the roller coaster ride for japanese corporate in today's wall street beat. this is bloomberg. ♪ viviana: you are watching "bloomberg daybreak." bitcoin appears to have decisively breached $10,000 for the first time since september. for the six day in a row, the digital currency rising,

saudi arabia once opec and its allies -- saudi arabia wants opec and its allies to cut production, but into a roadblock from russia. saudis see an output cut is a way to shore up falling prices, but russia is pushing back. lower oil prices don't affect the russian budget as much. he was the little-known mayor of a small indiana town. now, pete buttigieg is claiming victory in his first test for democratic presidential contenders. he maintained his lead in the iowa caucuses after a second batch of results was released. bernie sanders was a close second. joe biden finished a disappointing fourth behind elizabeth warren. next up for the democrats is the new hampshire primary tuesday. a firm is launching a private equity fund, part of a strategy to broaden appeal as a financial advisor from larger investors. partners will manage the private equity fund. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. vonnie: thank you. we are talking m&a and ipo's next. you

opec plus.tin holds the cards here. world's putin is the energy czar and that is definitely taking place right now. matt: great to get some time with you. thanks very much. our intrepid oil reporter on the ground in riyadh following that developing story for us. deutsche telekom is close to finishing its deal with sprint. this is a deal that has been speculated on for two decades in one form or another. now, it has been approved. as soon they get the price right, they are going to do it. they say that will add to profit this year again. we will talk to the ceo. for now, the shares are rising. this is bloomberg. ♪ ♪ matt: welcome back to "bloomberg markets: european open." 50 minutes into the session and we are still seeing gains across the board. not quite the strength of which we saw earlier. biggeste will post its budget deficit since at least 1997 to tackle immediate headwinds from the coronavirus outbreak, as well as broader growth risks. the deputy prime minister, who is also the country's

the top opec official secretary-general saying he is seeing renewed commitment between opec and its allies that is starting to build speculation that next week we could see a cut. remember, the group has been somewhat divided with saudi really pushing for this urgency over the last few weeks while the russian oil minister, their position has been more about waiting to see the data and then making an impact, but we know from the technical committee that they said they could see a 600,000 a barrel -- 600,000 barrel a day cut, that is what they said would be the potential, but now the ft is saying that one million barrels a day is on the table. i was in riyadh just a few weeks ago, and his royal highness, the saudi energy mr. heim close doors compared the impact of the coronavirus on demand disruption as a house on fire. he said you could use a garden hose or call the fire brigade. i think next week they are going to call the fire brigade. much.nk you very are they going to call the fire brigade? >> for instance, one major mistake was last weekend. the g20 had their first financial -- financi

annmarie: i want to ask you about opec.act was compared to a house on fire, you can use a fire hose are called the fire brigade. what would you suggest? in terms of a supply cut? >> in terms -- the market was balanced before these events came to pass. we are trying to correct for that 200 million barrel demand loss. cuts, to bring the market back to balance and leave a positive impact for the second half of the year, i think what opec have been talking ifut is a reasonable measure their objective is to bring the market into balance and correct for the demand loss. vitolthat was the ceo of speaking to annmarie hordern. she is back and with us on set. riyadh, whatpec in did we learn? annmarie: i think we know now especially talking to russell hardy at vitol, and they are the biggest trading company about seven billion barrels a day. they know where the market is going. isis obvious the coronavirus hitting demand, and 4 million barrels are coming off because of this. he is optimistic about where the prices are going. reliant o

opec and its allies found a further curb production as the coronavirus affect demand.'s bring out our asia energy reporter. we are starting to see the selloff in crude. i suppose there is a lot of debate this week because it would be incredibly hard to make assessments not knowing how long this threat will continue. >> it is a good question. the cut would be significant for the market, but as you say, so much uncertainty around how this virus situation is going to play out. it could be that we get a situation where no amount of cut is going to affect the impact on global demand, so we are very much in a watch and wait mode. i want to say, this has not been agreed yet. russia, as is its usual modus operandi, is playing hard to get in terms of getting additional cuts off the line. we will wait and see. the russian energy minister has gone back to moscow to discuss with his superiors if they want to sanction that cut, and it strikes me there is a certain amount of weight and see there as well. will this be the key driver in the short-term, what happens with the virus and

oil cartel opec is considering causing i put to you the coronavirus the group believes demand for crude will be significantly lower this year than previously thought that is due in part to waiting to mont in china opec has yet to bring forward its early march meeting to discuss the cups. british oil giant b.p. says it will make drastic cuts on carbon emissions by 2050 as part of the biggest overhaul in the company's history new chief executive bernard looney says the company must change profoundly because the world is changing fast so our society's expectations. german chemical firm b.s.s. is building a factory to make electric car batteries the size in the state of brandenburg near the capital berlin will be based just 100 kilometers from tesla's 1st european factory both sites will open in 2022 b.s.'s expect to make enough box these to equip 400000 cars a year. now we all know that good things take time and that's certainly true when it comes to food as farmers grapple with climate change and other environmental challenges the focus is shifting more towards sustainable organic yields

the international oil cartel opec is considering our food costs due to the corona of the organization predicts demand for crude oil this year will be $200000.00 barrels per day less than previously thought that's due in part to waning demand in china opec has yet to bring forward its early march meeting to discuss the culls. german chemical fun is building a factory to make electric car batteries the site in the state of the capsule berlin will be based just 100 kilometers from tesla's 1st planned european factory both sites will open in 2022. expects to make enough batteries a year to equip equip $400000.00 cars. the e.u. is calling it the most extensive trade agreement it's ever reached with an emerging economy to deal with vietnam approved today in the european parliament would slash tariffs on goods and services and would further cement vietnam status as an upcoming economic player but they also lost serious concerns. sports shoes should soon get cheaper for european buyers german sporting goods maker added as has been producing sneakers in hoochie minh city for years footwear is

now to some of the other stories making news around the world oil cartel opec is considering cutting i put you to the coronavirus the group believes demand for crude will be significantly lower this year than previously thought that is due in part to waning demand in china opec has yet to bring forward its early march meeting to discuss the company. british oil giant b.p. says it will make drastic cuts on carbon emissions by 2050 as part of the biggest overhaul in the company's history new teeth executive bernhard lu news says the company must change profoundly because the world is changing fast and so our society's expectations. now we all know that good things take time and that certainly true when it comes to food as farmers grapple with climate change and other environmental challenges the focus is shifting more towards sustainable organic yields and our next report will meet a farmer who spent 30 years cultivating the perfect blend of high quality nutrient rich soil. brussel sprouts one of the few vegetables harvested in the middle of winter in the german state of chalets becaus

mainly from opec. so it doesn't issue in china it will have. a fact on oil. the main issue. hasn't. is that really still do not know if. china is a dollar we cause of the us all if that is. correct that china that he was planning to have huge amounts of. right now he's on hold due to. all of that if if right now he says it's like oh so out of this he really battles that. it was ok to screw half by. us we could maybe she'd at 1.5 of those he is good that they are now. putting. if 90. now so that. the yeah lucky maybe a. factor will be born. to interrupt i think they're running out of time for this service often or market analyst from barry commodities found in singapore thank you very much the world's biggest gambling hop macau will close its casinos for 2 weeks because of the coronavirus as well but house chief executive saying announced their suspension after visitor numbers plunged nearly 80 percent in recent days like how is the only place in china that allows gambling and the lunar new year is normally a boom period the virus has seen billions of dollars wide off the market valu

this as opec discussed the situation as pressure resins to been production cuts from opec+.t a story out of riyadh. and marie horton is there. -- annmarie hordern is there. let's talk about how worried what is opec+ is about happening with the coronavirus. annmarie: good afternoon. i think there is a big distinction there on what opec and saudi think versus what the wider groupthink. that's mostly because of the divergence we are seeing from saudi arabia and russia. riyadh has been pushing for more urgent action. we even saw them wanting to push up this march meeting to february, and a technical committee saying they think 6000 barrels a day should be something the group considers to cut. we haven't heard what moscow thinks yet. do they think it is enough? do they think it is not worth doing? moscow has been a more wait-and-see approach, why we see the saudis really want to act a bit more urgently. at this meeting, it was behind closed doors for the press, but we did hear from people that his royal highness compared to the impact of coronavirus to a house burning on fire. he

we've seen that pattern over the last three years since the opec alliance has begun.he symposium, coronavirus and demand story will likely be weighing on everyone's mind. obviously it is a short-term that is hitting the oil market and demand side of the story. lagging by about 30% due to the impact of the virus. the iea already said that for this quarter oil consumption will decline. the first time in more than a decade. it is what is weighing on the mind of the prince as he sets to arrive here in riyadh. thank you so much. is still with us. seven days of gains for brent, heading for its longest run in almost a year. how much longer can the oil market stay supportive? jub: in the short term as you discussed, it's all about the virus. were still trending -- trading at relatively diverse levels in the oil market. that's really what the market will be looking for. the high-frequency data that investors are focused on our things like congestion data for china which you can get quite quickly. we haven't seen much of a rebound in that but we knew it was going to requite wit

could cut production again it's not only opec that's feeling the pinch china has also turned away gas tank is slashing gas prices in half and just like oil there's a glass of gas on the market yet unlike opec there's no collective resolve to control prices but over the last 2 days. cade's a group of 12 gas exporting nations have been working to break the link with oil prices right now 34 percent of gas is traded on the markets but despite controlling 70 percent of the world's reserves they're no closer to using that economic muscle to control prices and his the reason why gas is seen as such an important mix in global trade while hydrocarbons like oil will see a decline in use over the next few decades l.n.g. is seen as an interim solution to our dependence on crude oil problem is big produces like australia united states norway don't take the form seriously because has yet to carve out a role the gas exporting countries form is based in doha and its general secretary is the former russian energy minister i caught up with that year recent urine and began by asking about the impact of

that leaves opec facing a renewed glut.duced projections for demand growth in the first quarter by one third. boris johnson is criticizing the u.k.'s extradition treaty with the united states has imbalanced . his government continues to demand a diplomats wife who fled the country following a fatal car crash. u.k. politicians have complained about the extradition treaty, which came into force under tony blair's labor government and the 2007. pope francis is not saying whether he will approve the ordination of married men to address a shortage of priests in the amazon. the pontiff sidestepped the issue that has dominated debate in the catholic church recently. urged bishopsis to send missionaries to the amazon. former massachusetts governor deval patrick has dropped his bid for the white house. patrick entered the democratic race just three months ago. he is ending his campaign after failing to secure 1% of the vote in the new hampshire primary. patrick was the last black presidential candidate in the contest for the democra

all eyes for commodity investors is really on what opec is going to do.further production cuts might look like and how that could bolster the oil market. oil is still deeply and correction territory. even if you are the like -- look at the likes of copper, we have seen gains in the past couple of days. but not nearly making up for the losses we saw over the past month. haslinda: thank you. tookal banks across asia action this week. the philippines join thailand and cutting its key rates. in japan and australia, they joined the fed as highlighting the virus as a threat. any rate cuts her off the table for now. seems like several banks do not want to become off guard. >> and a lot of these cases, when the consumer demand is falling, you want expenditure response. the central bank can move faster. to to me, a response would have to come from the fiscal side. seemsda: the government pretty reluctant to put that in place. it.here is no way around especially when we are talking about the outsized role china plays in the global economy. shery: is it time to star

in the united states if you look production, we've been pretty much flat for the last three weeks opec to worry about. next week they meet. march 5th and 6th. if they don't announce a cut, a seven figure out, got to be over a million barrels a day. they say 5, 6, 700 barrels a day and russia's on the fence saying well, we don't know yet, then oil's going to slide to $40. that's another edge of the word the because that will hurt a lot of frackers and you'll see production drop a lot. >> but it reminds me of natural gas. all those producers need to pump in order to stay profitable even if that's driving the price down and you wonder if we're going to keep setting a lower like we have with nat gas. >> it's possible but i don't see the money flowing into the space as it did in 11, 12, 2013. you know profits looked to be that they were going to be outside the moon here as far as the frackers go, but that hasn't happened at all in fact, most frackers are not profitable at this point you know, there's a few places, eagle ford, a few other places that could produce in the low 40s, but not too

russia has signaled they would be willing to join opec in this matter.odities are taking a hit. fornk you so much that. let's get more on a selloff to we are joined by our mliv strategists. let's get to you for us. china is obviously sending the right signal and the clearest signal of 10 basis point cuts and this repo is significant. >> it is an aggressive an early move. exactly what traders wanted to see. over the weekend they would say they would inject more money. there are good to their word and gave that injection. they lowered the repo rates by 10 basis point's, which is a significant cut. most of last year, when they were changing rates was only by five basis points at the time. that is a strong message that was well taken. when they did it, that is really when the shanghai indices started to bottom out a little bit. it is still a bad day in shanghai, but it could have been a lot worse if the pboc held back and if they have not lowered the rate by so much. market stay with -- markets still may want more. they may have ammunition to deliver. the rr

that as hopes for an extraordinary opec plus meeting feign.session. the arab world dallas back criticism of president trump's middle

zoom video that's how you're going to opec in the future. from your computer in your sp p slippers thanks, we appreciate it it's not just zoom another stock trading higher on this bad day is gilead the company has a drug that's been mentioned as a treatment for coronavirus. meg is here with more. >> the drug is experimental and the world health organization scientist said it's the only drug right now they think may have real efficacy against the novel coronavirus. that sent shares up as much 7% at one point today the drug is in clinical trials in china but they had trouble recruiting patients because multiple studies are being run on medicines the w.h.o. says are less promising it's not yet approved for any condition, but it has shown promise in other coronaviruses that cause sars and mers last month, it was used to treat the first u.s. patient with novel krohn kroeb in the u.s., but one patient isn't enough to conclude how well the drug works. robin saying in a note this afternoon that data from the two trials is expegted in april, but does

crude climbs oil into $51 a barrel even as opec slashes its forecast for global demand.et's get you started with a check of the markets. we are seeing risk on sentiment with u.s. stocks has a record -- had a record high. we are seeing the s&p 500 being .ed higher and energy stocks oriole is still above $51 a barrel despite the fact that opec slashed its forecast for global demand this year. we are seeing the dow getting 7/10 of 1%. we are seeing more optimism given that we are seeing the spread of the coronavirus slowing down. -- two came to who wave hubei province, we saw the lowest number of new cases this month. still worth mentioning that there is uncertainty. to mention, we are seeing this slump in industrial production continuing in europe. take a look at this chart. yenou want to hedge, the might be a better option than gold. at least, it would be a cheaper option. morgan stanley saying that "be a better that when it comes to hatching to arrest get the moment. >> want to show you another chart. this is the s&p 500, its valuation relative to its 20 day moving avera

opec had a together. so a small set back and the market will come back. >> and do you mean the price for your company, what is your break even for profitability and what would you guess is kind of the break even for the whole region >> the midland in west texas is the lowest break even anywhere of all the shale plays pioneer is around $45 a barrel and the companies has you know, we're all focused on free cash flow and return on capital there has been a shift in all the up stream companies, pioneer will throw at about $5 billion or free cash flow over the next five years so we're only putting about 70% of the revenue back into the ground and the rest is going it buybacks and dividends. >> would it help you if opec cut its crude allocations? >> i don't think that tell rush into it. if it lasts longer and there was no vaccine coming quickly, i think opec would probably cut half a million barrels a day i think saudi would like to see brent get back up to about $65 to $70 >> let me ask you a long range questio

are opec reacting quick enough?cause it they start to cut production they are impacting supplies for april delivery. the dilemma why it has taken so long to come out with the recommendation of 600,000 barrels a day last night's because they know -- last night is because they know there is nothing they can do about china. it is a contango in the front end and moves into a backwardation. they have to realize all they can do is clean up any type of surplus that ends up being generated. francine: what are we doing -- there has been so many factory shutdowns. extra barrels get sent to china. what happens to them? do they get turned back? jeffrey: they have taken force majeure on some of those. the way we are thinking about it as they are likely to build inventory inside china. we do not know the exact magnitude of the demand shutdown because they are likely feeding this into storage facilities. tom: you mentioned force majeure, do you just assume -- and i'm talking about goldman sachs as a shop -- that there will be appl

crude, you have throw in opec going higher, too.ut now if it's starting to spread to the globe, the market is going to wonder can they really save the commodity prices my answer to that, by the way, is yes but as of today, it doesn't feel like people feel that way. >> i love that compare and contrast between copper and crude, jim jim bitcoin is not up today. gold is. it was up even the move. if you want to go forward and take a different point of view, i expect a lot of central bank action of none of it how should you be placing your betds? >> i expect a lot of central bank action. i've expected that for about a month. that's why i've been long gold i've been talking about buying ten-years, too i'm still comfortable on those months ago, i thought people thought maybe it was a store of value when when you loob at it, it has 30% moves every couple of days on occasion to me, it seems like something that volatile doesn't belong where i go to main times of pan. steve mnuchin mepgsed this yesterday and i think the market is ignoring that

it is a bit like me in an oil pack at opec.att: you in an oil pack, an anthill, thank you very much for that. the kind ofs about frenzied behavior we are seeing amongst the decision-makers and the concern about demand. joining us now is global head of debt syndicate at ubs. we have seen that kind of frenzied activity in the debt market as well. in terms of buyers, investment-grade debt, i was reading a little bit earlier int we saw 23, 20 $4 billion inflows last month. that makes it one of the biggest months ever. what's going on? yearvery busy start to the . particularly in europe. more than 230 billion of issuance, a number which we never had before. as you rightly say, this is down to the fact we seem very strong on inflows over the course of the past couple weeks, actually months, driven by very strong returns. anna: how much is the coronavirus making a difference? either to issuance or the money available to invest? this is clearly making a lot of people seek some relative safety. armin: it is definitely in the short term

i think all eyes will be on opec the question is what do they do next week? they prepare d to bring the big guns in to pull that production there's been dispute between the russians and saudis on how aggressive they want to act. the saudis want a cut back we were here basically a month ago talk bing about the fact we wanted to get ahead of the situation. the russians are are rhett sant. we want to see what happens. maybe we should wait longer. the saudis are like if your house is on fire, you call the fire department. this is all going to play out next week at the opec meeting. >> we were talking with brian next week. several of the nations that are major producers are either out of the market or so crippled they're not producing supplies some have been long lasting cases like venezuela. >> iran. >> iran has been hit hater hard >> this is the weight of adjustment of the burden falls on a few countries primari primarily, saudi arabia. they're going to cut 500,000 barrels to china there are signs they're going alone. they're not going to wait for the rest of op

opec plus one. what do you expect them to do and can they arrest this slide by cutting production?. they're going to have to react this is why you need a swing producer when you have a negative shock to demand like this the russians, your plus one, they're dragging their feet. they're not happy about it they just want to extend the current quotas president putin hasn't forgotten february of 2016, $26 a barrel he doesn't want to go the way of the soviet union which was crushed by an oil price collapse in the late 1980s. we think putin will order the energy minister to probably go along with a cut the question, tyler, is will the opec plus cut be big enough given the demand collapse and the still strong production we're seeing we don't think so. so even with an opec plus cut of 600,000 barrels a day or maybe even less next week, we still think oil is headed down >> is there a point that you are looking for, bob, where there might be a sort of generational buying opportunity in oil stocks or the drillers, the explorers, whatever >> absolutely there is my prayer is lord, make me bullis

hopes for an emergency opec plus meeting are now fading.audi arabia has given up on its push for a gathering this month, but russia is not keen. the alliance is likely to stick with the scheduled meeting in march as the outbreak continues. goldman sachs has cut its crew demand by almost half. the eu is set to launch a grand plan for technology and a challenge to the u.s. and china on the many new rules for artificial intelligence. and plans to make data centers carbon neutral as a part of the eu digital strategy. it will serve to rein in u.s. and chinese companies, potentially to the benefit of european businesses. and, the u.k. is setting up its goals for post-brexit trade talks. brexit negotiator speaking in brussels today. that is as the two sides of work to flesh out an agreement by the end of the year. the u.k. says it is not seeking special treatment, but wants a deal similar to those agreed by the eu with other countries. global news 24 hours a day on air and on quick take, powered by more than 2700 journalists and analysts in more t

we are going to be a next week, we will discover what action opec+ might take. oil and you look at the super cycle in commodities and oil, what shifted for you? nanette: the oil market for us is always one where demand is in some sense the driving force, then supply is adjusting to it. it is the market that gets balanced -- it is a market that gets balanced relatively, with a couple of months of delay. my expectation is that if we are now in a period where people are adjusting their growth outlook -- for example, we have revised our growth outlook for china down from 5.9% for 2020 to 5.5% growth, that has implications for oil demand and hence it is likely that oil supply will be adjusting down in terms of production. but thisis a delay, balancing mechanism in the oil market is what is also the stabilizing eventually "prices. manus: let us see what balance in things to bear next week. she stays with us nannette , hechler-fayd'herbe of credit suisse, in the house. e. >> good morning from bloomberg european headquarters in london, i am nejra cehic with manus cranny