i find in statistics that people still, the eia lists opec countries and non-opec producers. i wonder, let's started with the doctor here, how important is opec anymore? i would -- i teach a course at georgetown world power, i teach under grad wait and graduate level, we talk about, was there an opec era? is it still on? did it only last a short time? how would you gauge opec's power? >> opec's power, please for give me for not mentioning this in the talk, the power is greatest when oil prices ironically are low, not high. because when -- if you can sustain oil prices at a low level for a long period of time, guess what, who controls the largest share of the world's cheap oil prices? who has the lowest cost of production? those tends to be producers in the middle east who dominate opec. so the reason why opec -- they might not have been an opec oil embargo but there were price increases in the early 1970s to compensate of the u.s. dollar following the nixon shock in 1971, the de-linking of the dollar to the gold, but more importantly oil prices were too low, it was unfair. th

i find in statistics that people still list opec countries and non-opec producers. how important is opec anymore? i teach a course at the graduate and undergraduate level, and we talk about was there an opec era? is it still on? does it only last a short time? how could you engage opec's power? >> opec's power, it is greatest when oil prices, ironically, are low. if you can sustain oil prices at a low level for a long period of time, who controls the largest share of the world's cheap oil prices? who has the lowest cost of production? those tend to be producers in the middle east who dominate opec. there may not have been an opec oil embargo, but there have in price increases to compensate for the decline of the u.s. dollar following the nixon shock in 1971, the delinking of dollar to gold. oil prices were unfair to producing nations, they were giving a nonrenewable resource at such a low price. if you have sustained low middle east will become more important, because it makes no sense to produce anywhere else. ironically, low oil prices tend to increase opec's powe

cooperation in whatever opec opec plus might come up with. well i think i think the u.s. participation is key here and i think we see it playing out in to 2 different ways number one some form of production restraint from the u.s. and you know you mentioned that the u.s. can't really restrain production but you know the texas railroad commission they do have the ability to limit production out of texas they have done this a stork lee it hasn't been tested for a number of decades but we do know that you know these one of the texas railroad commissioners is in favor of some sort of production restraints you need to have 2 thirds of the commissioners to be on board with it's actually happen and then we don't know actually how it works and and how it would actually function in 2020 but there's a store precedent for that so that that can happen. and you know it's not a federal government it's not like trump can order this it's more a state by state decision that we made especially in texas so that's one way you can actually have production restraint and that is jeff says some

francine: julian, can opec plus decide to stop pumping? how much less oil do they need to pump to deal with the situation? julian: if we're looking for opec plus to do it all on its own, they produce collectively somewhere about 50 million barrel as day if we need to take out 30, they need to cut their production by 60%. that's impossible. these are economies that whatever the price of oil rely on oil for the bulk of their income. there is no way, i think, that they can cut the production by 60% and governments continue to survive. this is like the pandemic, this is a global problem and it needs a global solution. needs every producer to cut production and if they don't do it voluntarily, the market will force them to do it in a haphazard manner with those least able to access storage capacity. the first ones to suffer the fallout. francine: julian, who are you talking about, who needs to cut? so if it's not only up to opec plus who has the capacity to cut, are you talking shale producers in the u.s. or is there the another big player? jul

an opec meeting again later in the air to agree further cuts. that's quite possible but the whole system of governance is changing so you see the role that the i.e.e.e. has been playing you know organizing helping organize a g. 20 meeting this is a very significant change. and there's going to be changes within the us as well so part of the issue in india us in terms of whether or not to agree to production cuts announced send managed by the new government at the state or federal level involves a conflict between the independent producers and the majors the independents support but the action cuts the majors oppose them and their public b. would not mind seeing the he independence or down their operations or put some of the assets for syria with themselves up for sale so there's a there's a lot of restructuring going on in the potentially and there was some consideration that restructuring going on before the pandemic it's likely that the recent developments we accelerate that trend and that we can see shaping of the of the a landscape in the us

finally a deal from opec-plus.n it comes to the fixation on the demand side. we are also counting down to the opening of markets in mainland china. it is a week when we get new gdp, but let and us talk through these money supply and credit numbers. the clearest signal yet beijing 's responding to the malaise caused by the pandemic. because indicated, there are so many measures of credit from the very broad and more targeted, so what out of the data stands out to you? a very good point to make. set apart from the other months we track is fairly consistent almost across the board pickup in everything from your usual measures of the formal banking sector, you are also getting massive pickup in measures of shadow finance, the otherd bankers, thing that also stood out here was a pickup in corporate bond issuance and government bond issuance. if you put those two together, we are talking over 200 billion u.s. dollars. , to put that into context. one last note on the bank lending as well. it was very broad-based. the roll

guy: that is the latest surrounding opec.are continuing to monitor crude, well-off its earlier highs. this is bloomberg. ♪ guy: welcome back. easyjet agreeing with airbus to deferred the delivery of 24 airbus aircraft, the 320 family that airbus is currently sending out to the low-cost carriers. those are going to be deferred. to be honest, airbus is taking action already to slow down the lines considerably. interesting to see citi coming that -- remains, despite the earlier hard cut. let's take a look at where european markets are as we head towards the close this thursday. feels like a friday. are we going to carry risk into the weekend? we are certainly carrying a little bit. ftse 100 up to percent. cac 40 over performing a little bit in paris. we will have full details of what is happening as we come through to the close here in europe in just a moment. this is the european close. this is bloomberg. ♪ guy: 30 seconds until the end of the week for european equities. very positive trading for the stocks on the side of the a

to cut 400000 barrels a day ended up cutting only 100000 barrels a day because at the root of the opec agreement was to have saudi arabia and russia bear the most cuts but the rest of the countries would cut by 23 percent and mexico was able to reduce their percentage cut but to only 6 percent. if that is the case why is it so important to get make the carry on board because another major oil producer and they don't seem to be cutting much in terms of global output so just why was it so important to get everybody on the same page well the key was that opec on its own was unwilling to cut production and shoulder the burden without having the 10 members of opec plus also contribute to that production cut of course russia is the biggest member of the plus group mexico was also a member as well but in addition to this $10000000.00 barrel a day cut opec flies wanted non opec members such as the us canada brazil and norway to join in to to reduce the supply. over it was that we have and because opec did not want to be if you will supporting shallum these other producers what sort of impact d

question, wequick had opec plus, is this a prelude to opec plus plus?resident has put scorn on the saudi's and others for their inability to cut production and to be able to help out the oil markets. are we now in a situation where the dust settles and we could see the crude market being managed by russia, opec, and the united states banding together? >> that's what russia once, for sure, and i'm sure saudi arabia, the same. but how you think the u.s. to join something that the u.s. would call a cartel? there are thousands and thousands of producers in the u.s., you can never get all these producers to act. what about producers in north dakota? the entire notion just doesn't make sense. while it sounds great on paper, i just don't see how that could happen. we appreciate your time this afternoon. vonnie: new york's governor is speaking right now, he says that there are 2000 rid of 73 coronavirus debts in new york so far, up from 1941 deaths yesterday. headlines.virus >> those are simply extraordinary numbers, global cases are approaching a milestone, ne

opec-plus, that's opec-plus, meaning some nations outside of opec. i also want to thank the president of mexico. he was terrific. he showed great dexterity and flexibility in getting the deal done. we thank him very much. on the energy front, we had exxon mobil, continental resources, chevron, southern company, alabama power, conocophillips, kindermorgan, and a few others, big ones, great ones. financial services, we have blackstone, stephen schwarzman, paulson and company, citadel, elliott management, vista equity partners, robert smith, fidelity investments, abigail johnson, mastercard, visa, sequoia, stevens, warren stevens, charles schwab, chuck schwab, will be here by phone.

i think the already putting pressure on seeing them true membership in opec and opec plus don't forget the huge role of nigeria angola likely to write the me if played or picked presidency right now is around managed by an african and i don't know from our geria days how shit when it comes to market forces of course that we don't really have that march when looking at how much we eat in port and how much we use china still has to come out i think between out here because their prices bed their heck there has been a continuous push among african states on how to get out on how this needs to go about not already would have been countries were very happy would get cuts and what happened at opec yesterday big deal united together and i talked to a lot many of them to accept it because you understand that if there we get more stuff the lights market it's really good for us been then what has happened is that you have the lessons learned from yesterday was in your focus on exploration and saying to got to increase young market share so that it can really really i not see throw in shipping is

that is what a lot of our opec team is trying to do, and opec-plus delegates anonymously have set a globalaround 10 million barrels today would be a realistic target. saudi arabia has been insisting the deal must be broad and want other producers on board for obstacles, trying to mop up a global surplus. the meeting will be open to all producers, not just those from opec and its allies, but it is not clear if the u.s. is prepared to join the virtual meeting or not. later today, a you do not want to miss on the all employed in -- conversation you do not want to miss on the all important unemployment numbers, larry kudlow with jonathan ferro at 2:30 p.m. london, 9:30 new york. ♪ ♪ viviana: you are watching bloomberg "surveillance." a story breaking on the bloomberg, and opec-plus delegates saying an output cut of 10 million barrel cut -- cut of 10 million barrels a day is clear. u.s. arabia will cut when and others shoulder the burden. opec-plus is putting together a meeting on monday after donald called for a historic cut. the trump administration doubling the interest rate lenders may char

, you can add them up, 3 million barrels a day from the non-opec side and the opec side, saudi arabiaproducing 3 million barrels a day by exporting 3 million barrels a day more now than march. , a 4ey take a haircut million barrel a day cut, and it is possible. you have the other gulf countries, kuwait and the uae, that is good for probably another million barrel a day cut. export theggling to same way the saudis and russia's -- russian czar, they will make russians,l cuts -- they will make incremental cuts. need to balance the market given the demand hit we are taking? if we get that, is it enough and how much space is left in the storage tanks? edward: there are two elements, how much do they cut now and what happens in the third quarter? they are looking at cuts to start in may going through june and july. that is too late in that we at a minimum see refinery demand for 60 millionby around barrels a day for the quarter as nowole and probably quite in the midst of this inventory process, down 8 billion met -- eight million barrels. the system does not allow for more than 8 million b

you have seen the opec -- the u.s.efining, reduce significantly in response to the slowdown in demand, crude exports drop, coming out of the u.s.. the shale producers will have to reduce production. we expect further production cuts to happen in the rest of 2020. we see production dropping down to 11 million barrels per day for the u.s. and that further cuts through the next year, down below 10 million barrels per day. when you look at those two years together, cuts around 3 million barrels out of the u.s. and that is what is required for the market and what it will take in terms of getting prices back to more normal levels. shery: taking into account u.s. production and refining, where do we see it going from here? >> as we see, we move in with this deal and if we have further cuts in production and the expectations the u.s. economy may,slowly open in early then we expect demand to pick up refining utilization to pick up and with the cut in production we see the wti dropping below this timeframe. air -- theof the year

and non-opec countries.nly russia, it also includes mexico and others together with saudi arabia and the rest of opec, to manage and reduce supply to get the price higher, to ease pressure on the industry and oil consumers. helena: if this happens, who --ld you say linked first would you say blank -- who --ld you say blinke firstd inked first,u say bl is this a masterstroke by donald trump or was it inevitable? through diplomacy they have met, the two sides, whether it was saudi arabia and venezuela or in this case, russia and saudi arabia on the rest of opec, and they have reached an agreement. the u.s. is both a producer of oil and a consumer. as a consumer, it wants the price to be down. president trump once the pricee to be down for his reelection, the price of gasoline at the pumps in the united states. but also the united states has major oil production, the oil industry. shale producers in texas and north dakota and others, and there are small producers, not all, but the mages have made major contribu

and that combined with currently no opec cuts being emplaced actually the opec deal that broke down this is the aftermath was that the taps being opened i mean you've just got a huge amount of supply coming onto the market at a time when demand is completely down in the dumps so that the fundamentals and there's a further impact that the there's a nuance that the w.t. i contract is expiring today so the people that own those contracts are scrambling to. get rid of that crude now because they're worried that when it's produced in may that they'll be no where to store that crude that we know what to tell you because storage is filling up. obviously part of the lack of demand i mean all of it because of the corona virus outbreak but already we're seeing countries that are slowly lifting a lot of their restrictions which will have to have an impact on the use of oil how much time do you think there is before that begins to happen for some breathing space over when it comes to storage of oil. the thing is there's 2 effects in terms of demand there is the temporary effect that we're seeing at

we were talking about the deal between the opec members cutting back supply. take a look at the high yield etf, this as the fed says they will support the fallen angel market, those credits downgraded on march 22 from bbb to bb. take a look at this curve. yields on the front end falling after thesis points fed said that they would expand their facility program, buying short-term notes from issuers as they engage in some deficit financing. i want to bring in our next guest. he has been talking about bears in hibernation as the fed is trying to increase that $2.3 trillion stimulus program. some of the small and midsized businesses. some of the jobs numbers this morning. we got reaction from fed chair jay powell. he spoke earlier. take a listen. >> we are deploying these lending powers to an unprecedented level, backed by the congress and treasury. we will continue to use these powers forcefully and aggressively until we are confident we are solidly on the road to recovery. the question for investors is whether the broad liquidity and asset purchase program's can

the price of oil which has been hit by the corona virus pandemic it follows thursday's agreement by opec and its allies to cut global production a 10 percent but the pact was stalled after mexico failed to agree to its share of cuts us president trump says the u.s. will reduce its output more to help mexico the headlines now it's inside story. will record breaking cuts in production to stop the oil. crude by saudi arabia and russia agree to the biggest of the reduction in oil. so it will be most affected. him to the program. factories shut grounded cars and trucks off the roads in many cities under lockdown demand for oil has collapsed due to the coronavirus pandemic and oil prices fell further when major producers saudi arabia and russia couldn't agree on cutting output. now they've set aside their dispute opec and the oil cartels allies agreed to a 10 percent production cut the biggest ever but the deal to switch off the top spy 10000000 barrels a day still needs approval from mexico. these circumstances require swift and timely measures all of our oil producing countries must pull eff

seet, we are waiting to what happens with opec, opec-plus global effort to stabilize the oil market. ds off by two basis points with some movement in the market. we are seeing the periphery widening out a little bit. let's continue the conversation. joining us now is john normand to give us his take. john, there is kind of a growing belief that once you start to see the peak in the number of cases, it may be starting to come into view. that is the time to step in and buy the equity market. what is your thought on that? john: equities are not the first thing i would buy because infection rates are slowing down the around the world. the first thing i would buy are the spread credit because there is a backstop over the next few weeks while we wait for curves to flatten out completely. markets in europe have that backstop right now. i feel like that is the safer way back into these markets. eight for d's going to be on the equities that someone with -- if it is going to be only equities that someone wants to buy, you can do that in two to three months time, but the path will be much more

participation is essential in getting this across the finish line the meeting with opec and other opec countries will take place on thursday. all eyes will be on whether there's some type of u.s. participation in these talks >>. >> it seems odd, maybe funny for some, ironic, we're talking about free markets driving prices in those markets and yet we're talking about a coordinated effort by a cartel, you know, a real cartel, to try to curtail or manipulate prices based upon production. as we talk about moving forward is there any sense free markets could come to the rescue if, say, large reserves in the u.s. or china or anywhere else, step up to buy oil at these prices rather than cut off the supply side of things what exactly is the argument there? >> we do see buying in china we do see signs of recovery in china. we had the proposal from president trump to use strategic petroleum here to basically store extra oil so we don't hit tank tops. the problem is even with the trump administration's proposal, that buys you a couple weeks at current price levels, given demand situation as well,

right now too big to fail is opec. it was an extraordinary weekend for opec.the new president of the cartel donald trump is his great assistant. the president helping out in those negotiations. now there is the, now what? here we have harry tchilinguirian. harry, the one thing you taught me is all is not -- whale is not one barrel. they're all different. the permian basin oil is different from the shale of western canada is different than the easy stuff in the gulf of mexico. western canada oil fell under four dollars a barrel yesterday. three dollars a barrel, folks. what does that signal? after this agreement, there's a lot of expectation for market-driven declines in production in such countries as canada, brazil, and the united states. the difficulty is what producers are going to be forced into curtailing production and possibly shutting it down completely. in canada, when you look at the heavy canadian oil shutting down operations could cost you in the billions. in the u.s., we are likely to see much more rapid response. aat economist would call contesta

prices are rising again ahead of that opec-plus. the world's top producers may be moving closer to a deal on curbing output. volatility remains a key theme. wti has seen another 24 hours of wild springs with the price $26 despite much as that record high. opec-plus meets later today. then we have that g20 oil ministers meeting. what are the expectations of a deal? oil prices have been very volatile. it is extending its gaze for a second day today. plus ministers are expected to meet later today. they are going to cut production i 1.6 million barrels per day. that equates to 15%. russia is still insisting that the u.s. should do more than just let the market reduce record production. trump is putting huge pressure on the oil superpowers. cutas said that america's -- oil prices have fallen to 18 year lows. do a survey of traders and analysts earlier yesterday. they said that they see an average of 8.5 million barrels the day of cuts from the oil purchaser -- global producer meeting. the responses anywhere from 2 million barrels per da

this is the one bit the show you can't afford to miss i'm french foreign washington coming up opec members have made a landmark deal to cut oil production as the sector has been ravaging the coronavirus we'll have expert analysis on what this is doing to markets. small businesses in the united states have been promised emergency funding to provide some relief but where is that help will break it all about it a packed show today so let's go and dive right in. we lead our global report today with talks of lifting restrictions due to the coronavirus something the world health organization officials addressed monday. wind called 19 accelerates the finest decelerates might move slowly out of the woods the way down. on the way up to means control measures must be lifted. and we control. it's not only. in spain which has been one of the hardest hit countries by the virus has started to loosen its lockdown as the curve inside borders begins to flow and construction manufacturing business is with the nation are starting to return to work but most public places will remain closed until at least the

within 2 months opec and opec plus countries will reduce production by $10000000.00 barrels for the next 6 months they will cut production by $8000000.00 barrels per day and for the 16 months after that begins 6000000 barrels will be cut per day. oil prices had gone into freefall on worries about the virus and a price war between saudi arabia and russia but low prices threatens the u.s. shale oil industry. president donald trump welcomed the deal calling it a great deal for all. but with oil tanks filling up around the world energy hungry industries shut down many analysts are warning the agreement may do little to stabilize the oil market. at all from our business department is at the table with me awful what does this deal mean for the worldwide economy well christine the 1st thing that it means really is it's a little bit of rest buy it and it's a little bit of stability for the hopefully the oil price and for the energy sector there remains to be seen exactly how markets are going to react we've had some initial reaction this morning seemingly quite positive in that some some minor r

do we see opec plus plus? is it every opec member for themselves or do you have an original iea formation? for having me. , indeed.opments we talked last week and said this month will go in the apple and the black that is what i think we are seeing now. opportunities that we can still look into in order to address the problem. think it countries, i may be a good idea that those countries who made an announcement they will cut production may well reduce their production as soon as possible without waiting for the first of may, and may even consider further cuts to what they have announced. this may be one option we have in front of us. another option could be, as some countries we have suggested, to buy oil to put in their reserves. i imagine the u.s., for example, anda, and other countries, this morning i woke up confused that the australian government decided to take advantage of the oil prices to build up the oil reserves in the amount of 100 billion u.s. dollars. this may be another option to put on the tab

i think it has to be an international coalition not just opec not just opec plus but all oil producing countries we're probably down right now in the states i know the president said that we were going to reduce production by about 3 100000 barrels a day we're probably down a 1000000 from our normal 10000000 barrels down to about 9 that probably needs to come down some more but all the other oil producing countries need to do the same until the economy recovers we have to keep in mind that a good portion of half of our crude hydrocarbon burn a day is for transportation cars buses trucks airliners all that with all but basically stopped except for trucking the demand has been just greatly reduced and so we have to produce production in order to meet make the supply demand curves cross again alex shindle our is president of energy intelligence he joins us now live via skype sir welcome to i'll just say rush did you ever think you'd see that they when effectively you have to pay people to take the oil away as opposed to buying it. thank you very. absent not i mean i think the last couple

within 2 months and opec produced production. decided to be for the next 6 months from until the end of the year they will cut production barrels or grandma about into the next 16 months after that is some getting from $221.00 until april 2022 to his own $6000000.00 barrels per day whose. and as the world faces restrictions due to the pandemic global demand for oil has fallen by around $30000000.00 barrels per day this deal comes as an inflection point amid several months of disagreements and fall out between saudi arabia and russia a spokesman for russian president vladimir putin dmitri peskov praising the deal. we consider this deal. and some other countries can reach. to understand the. u.s. president donald trump also touted the deal adding it will save thousands of american energy jobs for more on this and what equity markets are doing monday we are joined by t.j. watkins director of stocks at simpler training and boom bust co-host christine christine let's start with what is going on with oil was a stew in the markets. well

so we might not have an opec, but we have an s.e.c. and that can do the legal work around making sure that companies do what they've told investors they will do. >> that's interesting, brian and also, as we speak to ryan, he's not the only commissioner so he might be backing the idea of forcing these cuts, but it's not clear that everybody else is even onboard with that >> yeah, it takes two-thirds majority it's only three of them, by the way. never have three people been on the line for maybe as many possible jobs as these three folks have let's consider, every time we talk about rig counts, which are down huge again this week. every time we talk about production cuts, capital spending cuts, it's easy to city in this office behind a camera and forget that those are jobs, those are families, those are mortgage, those are car payments, nose are kids school there's so much on the line here by the way, opec continues to discuss -- tomorrow is g-20. our markets are closed, kelly, which means the futures markets are closed here, too so we g

supposed to be, kelly, an opec plus plus virtual meeting today. we know that got moved my sources tell me likely to thursday there's reports about possible g20 action on friday the president now talking about potential tariffs on imported oil, as well there is a ton of things that are going on can opec get together on thursday if they do, can they agree on anything that's going to be big enough kelly, might have heard of opec plus which is russia anything we do will have to take in opec plus plus plus plus. we are talking about opec, russia, norway, mexico, canada and by the way, the 9,000 or so american producers if you don't get everybody on board, the saudis, they have told me over the weekend they're not going to do anything it's a cut for all or a cut for none. >> a cut for all or a cut for none stick around on that note for all that's happening in the market, bring in greg sankey is there any hope for the sector >> there's hope because i think we are hopeful that demand will snap back pretty clear and i'm sure you're aware of the new york go

the opec+ conglomeration considers a deep output cut. we are joined by thought he be rolled, iea executive director. , iearns -- by fatih birol executive director. he warns that a cut will not be enough. what can you tell us about what has transpired the last 24 hours, from the president suggesting he knew, he had heard that russia and saudi arabia were going to agree to a multimillion barrel cut, to now today, russia saying actually, it is looking to raise the price to $30 a barrel? what do you know to be true? there are different reports from different capitals about the meeting on monday, and who is going to do what. i can tell you that to have un-opec+ meeting, and hopefully to have a constructive agreement is a good start. of oiln the amount people are speculating here. the cut by 10 million barrels is out of a meeting successful, it is not going to be a solution to the huge problem we are facing. if there was agreement, even if there was a cut, in this quarter, as a result of the huge surplus in supply, and more decline,ly, big dem

is it opec+, or is it opec+ plus? a little brazil, canada, the u.s.? annmarie: basically, they will call for this urgent meeting opec+ andt it is others that are invited. the latest is that they want to global output cut. that includes opec+, plus other producers. the united states being one, especially if president trump is touting the steel on twitter, ,ut also look to norway, brazil mexico. yes,ther big question is, donald trump is also meeting with executives today from the oil industry. i don't think there's a single executive from the oil industry in the united states that won't say these prices have been hard on them, but what is the strategy going forward? they are not going to all agree that they want to cut production. that is something the u.s. has stayed away from. we had politicians last year nopec antitrust law. even if there was to be a cut of 10 million barrels a day, or as president trump was saying, potentially as high as 15 million barrels a day, what does that do to demand? analysts say it is too little, too late. alix: 6000 shale d

president trump touted a deal with opec between saudi arabia and russia.hat was not really confirmed we are heading to that opec-plus meeting this week. this is bloomberg. ♪ haidi: wti trading lower by almost 9%. friday,er gaining 12% 25% thursday. the volatility that continues after opec-plus delayed a planned meeting -- and the spat between saudi arabia and russia. this is about who is to blame for the collapse of oil prices. the standoff continues. president trump has ramped up his threats to do oil tariffs. mr. trump: i am a big believer in our energy business. if i have to do tariffs on oil from outside or i have to do something to protect thousands and tens of thousands of energy workers and our companies that produce all of these, i will do whatever i have to do. let's bring in the nasdaq director of energy. great to have you with us. how does this end? we have been saying there is a political situation brewing and there is a political strategy to solve this if the intention is there. are we likely to get any detente? >> i think the answer to that q

up -- dips picks after an opec meeting is delayed. donald doesn't think he will have to impose tariffs on imported crude. welcome to "bloomberg daybreak: europe." looks like light at the end of the tunnel according to unicredit, but he says it is a long tunnel. the question is, how bright do you see the light? manus: and i think it depends the research that you read this morning whether it is jpmorgan saying the u.s. buyer faces -- the data we are getting through could put pressure on the vix and create a floor on equity markets. morning. nejra: if we take a look at how equities are performing, you got chinese markets closed, green on the screen in japan, a weaker yen, but we are waiting japan to declare a state of virus emergency with cases jumping. japan looking to fight the virus with a two-stage stimulus plan. u.s. futures on the front foot. we saw global equities decline on the week yesterday. -- you had bankamerica saying we are poised to retest the record low of 31 basis points. the yield, moving slightly higher. dollar strengt

ahead of tomorrow's opec-plus meeting, actually today's opec-plus meeting, russia is signaling it isby about 15%. ofer kinsella, global head fx strategy for union bancaire privee, is still with us. i'm pretty sure they are having that virtual meeting today. what effect will this have on the ruble? the two of course are very close. peter: they are. i think it will have a reasonable effect on the ruble. eyrtainly what we saw, when th took the decision to flood the oil market, the dollar-ruble moveas high as 82, a huge in a relative and absolute sense. the ruble is trading just below 75 now. the market has definitely priced in a deal, priced in production cuts. the question is what will be the scale, extent and duration of those cuts. we don't know. the market is going with the around 10a cut of million to 8 million barrels a day. that kind of just gets us back to where we were. we still have a significant overhang of supply for the market. we couldthe oil price, see $35 a barrel, i don't think it will go much higher. for the ruble, that means we could see a little more appreciation fro

back in the 1970's when opec was formed, there was talk about suing opec for antitrust laws.are saying we agree with them. bill: for the last 20 years, there has been legislation pending the house and senate, and on various occasions has passed one chamber or the other that would remove sovereign immunity from opec. it is called the nopec legislation. just last month it was passed out of the house judiciary committee, so there was a move up until this recent crisis, to try to hold opec accountable. strict a classic cartel, output in order to keep prices up, and that harms the average american consumer. under sovereign immunity, they have been protected up until now. david: expand this out more broadly. application of u.s. antitrust laws in a crisis. we have a crisis that we have never seen with this pandemic, shutting down the economy. if you were back at your old job, would you take into account , shouldantitrust laws we have a plan for this very unusual circumstance? interesting, my old friends at the ftc, justice department have done just that. two weeks ago, they put out

opec is already cutting, they had an urgent call today.ico -- president trump himself said that the u.s. would thatup for mexico's slack, they cannot cut. canada is in an interesting situation. have you gotten any verbal commitments from anyone about cuts alongside texas? we have got no formal commitments, but i have talked to my counterparts in alberta, new mexico, and other states. are saying, they ever producers recognize the challenge. we recognize we have to do something. waiting onas is this, laying the groundwork for a million. we are looking for another four million. i think that gives people the impetus to do it. i think we can move the ball if we lead. annmarie: can you do something together, or would texas have to come out first? are you looking to do something like we saw the g20 energy ministers meeting, something similar to that may be the side of the atlantic? ryan: that is why i propose the solution the way i did. we would vote on cuts. those cuts would go into effect june 1, only if others cut. it would allow us, show that

russia and saudi arabia have agreed to cut oil production output to unprecedented numbers this as an opec meeting is underway to discuss the future of oil in the age of kobe 1000 we'll get you the latest on that plus italy's prime minister gives a dire warning that the corona virus outbreak could break up the european union we're going to explain then $6600000.00 americans filed for unemployment last week bringing the total now to a staggering $17000000.00 people filing for benefits due to the mass layoffs in the country want to talk about that and more all right it's time to boost your news i q . opec and their allied oil producers held a virtual meeting today seeking an agreement on oil production cuts in response to a slowdown triggered by the coronavirus pandemic but can all the key players make a deal that will actually last r.t.s. rachel blevins has been following this story and the high level meetings taking place she's joining us now from the news room with more of the details so rachel what's going on while manila the price war between russia and saudi arabia appears to have reac

opec+ -- oil deal size versus duration. opec+ delivers. earnings angst. first quarter reporting's season kicks off this week. it will be bad. just how bad? it is a make it or break it week. investors bracing for a slew of economic data like retail sales, chinese gdp. welcome to "bloomberg daybreak: americas" on this monday, april 13. it is pretty quiet in the market. europe is closed. there's not a lot of volume. we had the best week last week in decades, so no doubt coming off of that level. yen moving higher. it is a mixed dollar story in the g10 space. hard to take any of these moves seriously when you have such weakened trading volumes. in oil, a choppy session overnight after a big gap down sunday. the direction now depends on when the global economy will be able to open up, and that will be the indicator for all of the economic data, as well as risk appetite. time for today's market moving news from our new york team. we begin with a historic price deal. plus coming to an agreement to -- to cut minutes output. ,inutes after the deal was done the sau

in the next 2 months opec and opec plus countries will reduce production by $10000000.00 barrels for the 6 months after that they will cut production by $8000000.00 barrels per day and for the subsequent 16 months 6000000 barrels will be cut per day. oil prices it down into freefall on worries about the fires and a price war between saudi arabia and russia but low prices also threaten the u.s. shale oil industry president donald trump welcomed the agreement calling it a great deal. but with oil tanks filling up around the world and energy hungry industries shut down many analysts are warning the agreement may do little to stabilize the oil markets. let's have a look at some of the other groaner virus developments elsewhere in the world spain's prime minister pedro sanchez says said his country remains at high risk of coronavirus after a 3 day decline in the death toll spiked with 619 new deaths recorded in just the last day however the same period also saw fewer new recorded infections. turkish president right chip has refused the resignation of his interior minister so the month so

we look ahead to that opec-plus meeting today.onavirus claimed another daily record number of victims today in the u.k. as well as the hard-hit states of new york and new jersey. the number of new cases in spain crept up after several days of declines. 1.5 million infections is the global tally and around 88,000 deaths. american expert anthony pouncey said the start of turnaround could come after this week. wall street banks are warning that the coronavirus pandemic could drop the global economy of more than $5 trillion of growth over the next two years, greater than the annual output of japan. the bank for international settlements has warned that disjointed government responses could make things worse. sheila patel is chairman of goldman sachs asset management. great to have you with us on the show. thank you so much for joining us. what is the outlook of goldman sachs in terms of potential hit to global growth over the next two years? some wall street banks out there calling for a $5 trillion hit in the next few years. meila: t

a concern that opec plus producers are debating 10 million barrel cuts a day.t is it for us today. i'm julianna tatelbaum >> and i'm geoff cutmore wherever you are watching from, y ve a great weekend trand relax. we'll catch up with you on monday "worldwide exchange" is coming up next. [ "one more time" by daft punk ] woo! [ laughing ] woo! play pop music! ♪ no way dude, play rock music! yeah! -woah! no matter what music you like, stream it now on pandora with xfinity. and don't forget to catch "trolls world tour". let's party people! ♪ one more time >>> breaking news, wall street set to end the week on a sour note as the number of covid-19 cases surges past the 1 million mark for the first time as president trump moves the production act as 3m and others ramp up production of medical equipment. key oil executives decen

price for and decreasing demand but it hasn't committed to any cuts for many years i used to think opec is very unfair i hated opec you will know the truth i hated it because it was a fix but somewhere along the line that broke down and it went the opposite way and we have a tremendously powerful energy industry in this country now number one in the world and i don't want those jobs being lost but experts believe even after the record cuts by opec and other produces the gloom for oil economies may not be over internationally just he says demolish the structure and so far has been 20000000 barrels a day i think it's probably more towards a 3035000000 barrels a day if you look at india alone the 3rd largest consumer of oil having decreased its consumption by 70 percent i would say it is more so 10000000 barrels a day is what's so far been priced into the market and you saw the last cluster response so we probably need more to do the trick. what began as an attempt to grab a bigger share of the market is ending after 31 days with no real wins for anyone involved some of. the there now stil