for opec-plus in its history. tom: i want to fold that into what sam stovall just said. how much of our audience is folding in 7.2% inflation in six months? if you have oil here, can you get inflation down to that stovall level? jonathan: we know that people's ideas of future price growth is shaped by energy. we also know that when you go to pay your rent and you are negotiating what that looks like each year, that story is getting harder and harder for people to meet. that will be sticky, and that is the call into year-end. even if energy comes in, this fit has more work to do. lisa: it is not just rats, medical spence is -- expenses that people are seeing with inflation. i want to hear the communication from opec-plus as to why they made such a small move. is it because of a lack of demand or constrained supply? jonathan: it cannot be there targets. according to the team at bloomberg, we are not sure if we get a press conference from opec after the decision. it will be interesting to see what the white house has

that opec meeting. you said how much of the going give a nod to president biden? the meeting with saudi arabia was successful, that they got what they wanted, the u.s., in terms of increased output. my question, how much can these oil producers increase production at a time when they are bumping up against their peak? 10:00 a.m., u.s. ism service index the month of july. how much do we see an ongoing softening in the service sector that is supposed to be rebounding? this is supposed to be the rotation from goods to services? we have seen the rotation away from goods, but even services is showing signs of pulling back. we saw that with certain travel stocks coming off their high is because there was a weakening in the underpinning data as people pull back on discretionary spending. we are getting a lot of earnings but also a host of fed speak. we will hear from patrick harper, mary daly, all of them coming out to talk about this, does it make sense to see the point to yield curve going down to the most i

opec-plus says it will look at the data at the time and decide then.t is unlikely that we see any particularly aggressive move in terms of hiking supply simply because they can do it. although the saudi say they have about a million barrels a day of spare production capacity and the uae says the same. that is untested. at least in the case of saudi arabia they are pretty much at their highest levels historically, and other members of the cartel clearly can't go much higher. but we could see another hike, let's say another 100,000 barrels a day of increase at the next meeting. francine: paul wallace there covering middle east energy and commodities for us. surveillance early edition is up next. we will look at oil and get gilts in light of the bank of england's decision later. this is bloomberg. ♪ this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime moments. two tickets to nascar! yes! find rewards like these and so many more in the xfinity app.

market watchers, and the opec -- we watched the opec meeting. we'll drill into that story next. bloomberg. ♪ francine: welcome back to the open. 53 minutes into the european trading day. some investors we saw yesterday -- u.s. china relations today is a banking treasuries, yesterday it was sparked by hawkish federal reserve comments. we are getting data, france's pmi coming in 53.2. oil watchers, skeptical that opec-plus will answer president joe biden's call for more oil supplies when it meets today. expecting them to reserve its remaining capacity for another time. we have our energy and commodities reporter. are we likely to see opec-plus he'd bidens request? bloomberg.com >> as you said, the opec watchers we surveyed this week think note, they think opec will announce no increase in -- in oil production for september. that will stick to august levels. there are some analysts expecting something. goldman sachs said they see some increase. they did not say how much, they expected to be pretty modest. they say there is a chance. francine: the market is so tight, it would make s

the opec-plus did offer an increase.t is the smallest increase in years, they should be grateful that there is a symbolic gesture. many analysts foresaw and expected this, is opec noted in its own communicate, they delivered -- that would just be an implosion. the undoing of a fist bump. that is a -- >> if you look at the actual production going on, which they claim, the actual production in the market, it is already higher than 3 billion barrels per day. as we go through the summer months, every month is another 650,000 barrels a day. these are not being met. by the end of the year, the production level will be around 4 billion barrels. will they follow through? it is a symbolic gesture, which should be appreciated. manus: everyone is able to produce a thousand barrels on top. the only two producers that have materially stepped up their production are saudi arabia and the uae. the question is, will they incrementally get to 12 million and how long can they stay there? what do you think the longer-term capacity is where

manus: i think there is both the opec set of challenges, the opec-plus set of challenges, that is a majort has evolved here in vienna over the past number of years. the family of opec itself in terms of missing production targets, and at the same time being global in terms of reach into america. i think it's very much that global role that he needs to ensure he has everybody on site, and all lines of communication are open. dani: what about his background, what is his experience and what does the oil market think of him? manus: this is a man of great precision and data. he understands more truth and he dares speak. but he has traded oil, he has been in the trenches. he knows that every line of news can trade this -- can move this market. he is a veteran global, quiet gentlemen, i would say. dani: great stuff, manus cranny there in vienna. that's it for this hour, as we close out, equity markets continue to push higher as new oil markets are still trading around of february low. that is the context for manus' interview in just a few hours. i will stick around and mark cudmore joins us out

i think it was an important gesture for opec-plus to come up with an increase, even -- opec did not have that. they have been steadily adding to their quota since july. the last few months added money to their production. they were going to stick at these levels through the remainder of the year. any additional increase that was agreed upon was a really important gesture. what is really important to take away from the event today is number one, we are all seeing it is equating to 35,000 barrels a day of production on the market which comes from saudi arabia and the uae, so almost a nonevent. what it does tell you what highlight is that we are in a world of tight capacity because even when we are trying to add 100,000 barrels a day, you can only add a fraction of that the oil market. in a time where there are concerns and stocks are going to rise, even in this backdrop of fundamental weakness, there is an underlying tightness of supply. it is going to put some pressure on prices. >> the markets tend to break out , worried about the supply crunch. the meeting noted that availability necess

get that small production increase from opec plus. a lot of concerns around the demand outlook. shery: let's bring in our next guest who says sentiment in asia is likely to suffer on nancy pelosi's visit and the ongoing pandemic headlines. he is olivier d'assier. good to have you with us. on a week like this where you have so many different factors for investors to digest from fed speak, setting up for the boe's more aggressive tightening. not to mention pelosi's visit to taiwan. do you find opportunities to buy into a fire sale, or do you try and unload some of those shares that have rallies? >> i think the fire sale hasn't come yet. q1 investors were overly bearish and felt inflation was winning. in q2, central banks got more aggressive. by the end of q2, they fell it could end in a draw. that gave us the impetus for july to rebalance portfolios, position for a worst-case scenario, go back to a base case scenario. the earnings season we have now is confirming that. not as bad as people feared. consumers have been willing to pay high

saudi arabia meets today with the other members of opec plus to decide on their next move.iddle east business correspondent sameer hashmi has more. another opec plus meeting but this one is a crucial one that comes with them if as of august producing the same amount you are back most members of opec plus in the uae only to members which have limited spare capacity. that boils down to them whether they will be able to boost production substantially to balance the market and bring down oil prices. it's very unlikely they are going to make a substantial increase in production, that's what experts think the reason for that is so much uncertainty about oil prices where they would be in a few months from now because of various factors, or in ukraine, the looming crisis of rising interest rates, all these factors could bring down oil prices, the saudi immoralities don't want to be in a situation with they substantially increase production right now but then had to look at cutting back oil surprise in a few month if demand goes down because it's not really easy to shift gears and s

opec may keep its fuel output unchanged in september or maybe raise it slightly.i wonder whether or not this opec meeting will put out enough headlines to drive oil prices kind of meaningfully back above that $100-per-barrel market. >> that's a good question. it comes after president biden's visit to saudi arabia. we're expecting one of two things to happen, which you just mentioned. either a small increase in production or holding on for one more month even with the volatility, it's hard to set policy amid so many changing factors they might choose to give themselves a little more time and think about what the next step will be. >> consequent ch chally, is tha going to drive the top economic discussion at opec plus today and this week? >> absolutely. the group is going to be looking at fundamentals and demand from asia in particular, china. that's something that's being watched very carefully already we have an idea what opec thinks about 2023 demand. there's still a growth in oil demand, but it's smaller compared to last year, which means that the call on opec,

opec-plus will meet about 13 minutes later.ain events have so many people, after that meeting between the crown prince and the president of the united states. will joe biden get anything whatsoever? tom: this is well said. is that the dominant theme or is that a sideshow? i would suggest because of europe, what we saw with the photo op, all of a sudden, maybe the biden discussion is secondary. jonathan: i would say the regional buyers from this perspective, i have to say you would have to be looking at the recession story that is emerging worldwide. china has difficulties. europe is suffering. the united states in the minds of many people is heading in the wrong direction. could you see a deceleration in demand? lisa: that is what i'm curious about. if they emphasize that, the slow down, could that basically be an indication of just what you are saying? they don't want to release all of their supplies in a time of cooling growth. jonathan: as they monitor the opec-plus. tom: we were supposed to be there, weren't we? jonathan: y

it's opec.le the russians even allow any additional supply given that we are in the death of war? yields rise, yen rallies for the fourth day, the hedges are covering their shorts, now back to the lowest level since 2021. short positions about a third of what they were at the peak. this risk off narrative being built in terms of yen rallying, bitcoin down nearly 2%, we will keep an eye on bond markets. in terms of the rest of the narrative, let's get your first word headlines. juliette saly is with me in singapore, jules? juliette: england has won a major international football tournament for the first time in 50 years. after extra time, the lionesses be germany for the first time. it is the biggest when since the men's team brought home the world cup in 1966. it was watched by a record crowd of 87,000 at wembley, underscoring the massive growth of the women's game. the latest chinese data shows the country's rebound is fragile. factory activity contracted in july as property sales continue to s

plus, opec on alert. crude gains up and saudi arabia warns that the alliance could cut production to support prices. francine: we are seeing pressure across the futures board as treasuries are thinking that the federal reserve will come up with hawkish comments from jay powell. the focus is on the tightening monetary policy and what that means not only for growth but for global markets. tom: the speech and more hawkish commentary is expected from jackson hole. losses of 2.6% on the nasdaq yesterday. they are also inspiring some hedge fund positioning as well. the pressure that we saw and different moves in bonds. the ftse 100 is down 0.2% and we continue to watch fx as well. the sterling that came through yesterday on the back of king dollar. over in spain, losses of 28 points and that energy picture as well. we saw that in germany. 700 euros per megawatt hour. the most levels ever in germany compared to 45 euros per megawatt hour last year. u.s. futures building on the downside of yesterday. euro-dollar

which opec acknowledged? would you describe the 100,000 barrel at? -- add? christof: a subtle gesture for the president coming by, and it was a reminder to everybody that opec+ likes high prices and they want to keep russia in the fold. in the last thing russia needs is lower prices. manus: do you think russia held back, restricted the amount delivered at the opec committee meeting ? christof: what we are seeing is a cooling off of high demand for cheap russian oil in india, and china. there is a three-way move that shows the eu is stopping import of seabourn russian crude. we see russian crude directed to asia. now russian product is being exported to the middle east. on february 5, there is a stop to refined products from russia. manus: they are blocked out of europe and diverting their flow? christof: the products embargo is february 5. nobody buys oil to drink it, it is derived demand, europe needs products to be refined. now it is a three-way trade to replace these direct links to russia. manus: how blea

we have that opec plus meeting. but as well, the u.s.oline report showing the stockpiles there are growing. that is something that led to the decline. joseph stiglitz has been speaking to us about what that decline in energy prices means for disinflation. >> we will go through disinflation in the future. i can't tell you when it is going to happen if the russian war comes to an end, the energy prices will come down and that will be a strong disinflation every part. >> the fed is laser focused on bringing inflation down. brazil just lifted a key rate by two basis points and we have a bank of england decision looming as well. let's get more from our policy editor kathleen hayes. let me start with you on the fed and getting inflation down. that seems to be the focus and no talk about any of this. >> i think we got another now in the coffin of that pivot argument. the last 24 hours, we have seen a total of about six fed bank presidents pledging to stick with the tough inflation hikes. even if there is a recession, i am still laser focused on

andrew james with the latest on opec. to the power crisis in germany in europe, in germany, power over 700 euros per megawatt hour for the first time. there is a crisis over the reliance on russian oil supplies. chancellor schulz is in canada. he emphasized the government is working hard to wean its dependence off russian imports. >> we are deciding on making it more easy for companies to switch the fuel they use, for instance, going back to oil, although it has consequences for climate the next one or two years, but to reduce the necessity of importing gas. manus: let's get to birgit jennen. here we are, germany -- i had a guest yesterday and he said in the front page in germany, they no longer have cobra charts, they have energy storage charts. we have entered real crisis levels, heavily? birgit: you will be really difficult, there is no doubt. germany is facing in the coming months a shortage in energy. we have to see how the winter is. the government is looking closely at the temperature, in autumn. they still have to

there is the opec story. there is the treasury yield story. and the taiwan story still playing out in the spot market. as you can see, it is more asian fx stronger against the u.s. dollar. but the yield story is picking up. on the back of what happened with the overnight. rishaad: it is not quite the golden cross, we are a long way from that, but it is nearly a bull market. 19% gain for the nasdaq now. we have u.s. gdp, that is clearly not what we're looking at the moment, but paypal reported better than anticipated earnings, and assuming substantial buybacks and that is supporting those stocks. and some services data to the upside as well. durable goods orders, horribly volatile figure. we will keep that gdp number there. small expansion in the second quarter. it will not dwell on it. let's look at the tech side of things in your part of the world now. david: yes, 5% movement in alibaba, the head of the earnings which, i think the significance of this one is by the way, well-flagged on alibaba. the stock will probably see the first drop in qu

let's talk about opec.t said in the third quarter it will cut the amount on the market by about 1.2 5 million barrels today. that is more than .5 million barrels per day less than opec's 13 members pumped in july. so, it trimmed the forecast and boosted its view of non-opec supply. we are getting very different views from the international energy agency that boosted the forecast for global oil growth because of soaring natural gas prices and heat waves that caused many industries to shift over to natural gas. it sees little chance that opec-plus will increase outlook. you just saw in that bloomberg chart that many of the big oil producers, mainly the saudi's, are already pumping at capacity. many analysts say it's not that they are unwilling to put more oil on the market, they are actually unable. it is interesting that the iea believes the most recent move by opec-plus to only put a minimum 100,000 barrel hike in terms of output per day in september, they believe that was largely symbolic and may actually

that's in contrast to you, it's late alliances, which appear to be losing global influence. opec secretary general described russia as a vital member in the alliance. this, despite continuing western sanctions on moscow's crude and r t visits moscow's new neon facility. as russia ramped up its production amid an acute global shortage of semiconductors. a good morning, it's just gone. 7 am and the russian capital from where we're joining you live this tuesday morning. i'm paula paula. and it's a pleasure to be with you. you. it says it sees no problem in the potential visit of its health speaker to tie one, despite beijing labeling to move a breach of its sovereignty. that's the mid report said nancy pelosi will land on the island on tuesday with washington. thank. she has every right to do so. this is very much a precedent in the sense that the previous speakers visited taiwan. many members of congress go, let's taiwan including this year. and so if the speaker does decide to visit an china tries to create some kind of a crisis or otherwise escalate tensions, that would be entirely on visi

this is all about what we are seeing with supply so opec-plus could be forced to act. all eyes on what is happening in the european energy prices. look at this chart on the bloomberg. there was panic overnight when it came to the gas prices and power prices soaring. more politicians came out, really wanting people to brace for tough times ahead. we continue to see this pessimism over where the economy is headed and the dozen p.m. saying that potential europe could see 10 tough winters ahead. >> the euro hitting the lowest since 2002. we are seeing a pretty risk obsession here. new zealand is online as well in the red. commodities could take a hit. technical indicators suggesting we could see a bit of a downturn. a lot of this is based on how hawkish the fed is at jackson hole later this week. that has driven a lot of investors back. let's change over and take a look at other risk assets. bitcoin has also been slumping over the past few sessions. down around nearly 10%. a lot of this is down to what is happening in the chinese economy. a lot of those here. you can see w

opec surge capacity, i already discussed it earlier. it is very limited.aves very little room for market sentiment. if there is any geopolitical factor, any interruption, disaster -- there are a lot of uncertainties, and we have very little room for unexpected events to happen in the market, because the spare capacity is low. in reality, who can add oil to the market sides saudi arabia and the uae, which are near the bottom of their production line? having iranian and venezuelan oil, it is a big question to answer, it seems at this point we really don't have so many options left. guy: nope, certainly seems we are going toward the bottom of the barrel on that front. sara vakhshouri, svb international founder and president, thank you very much. the breaking news as we have been speaking to sara, from dow jones, the sec is investigating melvin capital's disclosure after his firm shuttered this year after retail traders targeted the company's shorts. that was part of the meme story last year. the sec is now contacting investors. we will bring you more details

from non-opec countries. what is driving the uncertainty is u.s. oil production. the public producers are more clear in their guidance and what they are expecting for output. but we are seeing some growth from private producers production in recent months with higher prices. caroline: jenny atkins, great to have time with you. coming up, filling the gap. banks pulling back from financing by out. details. this is bloomberg. ♪ caroline: this is bloomberg markets. i'm telling height with jon erlichman. one of the great stories on the terminal, taking on the big banks, a fund for large-cap loads. our reporter joins us on this story and why apollo is doing this. >> we are seeing an interesting development in the past couple of months, it is getting for -- getting tough for bio financing to get done. there's widespread concern about the potential for recession, rising interest rates and that is causing wall street banks to pull back from extending their balance sheet to get the deals done and from investors who are

opec is out of capacity. see this as a slap in the face to the biden administration, i see it as more of a shrug or, we are powerless to move. it is saudi arabia that has spare capacity left. they don't have any spare capacity and they are worried about it. there is a real worry about it out there. if it weren't for the $1 million -- one million barrel per day, we would be higher. jonathon: walk me through the next three years. if we don't get a recession and china comes back online, what does the market actually look like? >> i was thinking about that. 2023 and beyond looks very, very strong. one thing that is notable is we are seeing week u.s. demand. people are blaming that on government conspiracies and nonsense. if you look at vehicle travel, they are high. it has not necessarily changed. it is a change in the kind of vehicles they drive, more electric vehicles. it is more efficient cars than traffic jams or anything else. people are less wasteful with gasoline. lisa: are you saying that happens more dra

interruptions to supply, but opec remains pessimistic. eight those plan -- we will talk to ballet ceo bobby lee about what could be one of crypto's most significant changes. oil being driven up. the weekly gain, we have the bloomberg commodity index up 11.5% of low since july 6. we have markets in focus. we saw that reaction to that cpi read, overdone. upon markets in focus as well. david: absolutely. when you look at yields, australia's a good example of how that has changed from wednesday. we are back up again in double digits for australia. japan, top left, don't let that distract you from that is a market that is a reopening today. a bit of catch-up there. there is some strength coming through in the hong kong dollar. a quarter 1% on the upside on asia-pacific. we are on track for a weekly gain which, if things remain the same, we will be on track for a fourth straight week, the longest since early 2021. yvonne: right. you talked about how when it comes to china, we saw may be a bit more momentum yesterday and may be we are poised to

that continues you have opec plus meeting on wednesday. last number of meetings for two years since they made the covid demand cut which they have been rubber stamping agreement with tweaks around the edges that is ending wednesday's opec plus meeting may be the most important in two years. now they will start outside of the planned deal and start individually making plans month to month or longer term. that will be wednesday we will cover that on cnbc all day on wednesday. >>> outside of that, other things are happening elon musk counter suing twitter. that is escalating the fight with him and the company he wanted to buy and take private for $44 billion. how long ago that seems. two months ago lawsuit filed late friday confidentially under court rules, the redacted lawsuit could be made public this week. he filed after the delaware court ordered a five-day trial to begin in october. we think the media may have interest in that. >>> good news for the world. ukraine's first grain exporting cargo ship left the port of odessa today that is a

do we believe opec plus --? >> we just have this token increase the last opec meeting.ident biden had been to saudi arabia. i think the expectation was we might have opec holding steady but i don't think people thought a cut was on the table. i do think today's statement caught people by surprise. >> what are these liquidity concerns? >> if you look at it, we have had major liquidation of net lines in the market. and from a standpoint the prince feel like it's exacerbating the market. that said i think the real interesting question will be does this really translate into any production policy change? the big issue was opec not hitting its production target. they were under performance. the question is will we see barrels coming off the cup saudia bravery of want to cut off on production. >> certain areas i am seeing the president is ready to give away the store on concessions to iran. weatherbee a deal and how much oil will not bring? >> administration officials are saying that they are still having hurdles to overcome but that they are closer than they were even a week

opec's new chief says oil markets face a risk of a squeeze this year.ion capacity is dwindling. they spoke with manus. >> i think we are looking at economic growth levels deteriorating to historical levels for now. you're right that we are seeing signs of potentially a crisis. i do not know what winter will look like. utility bills skyrocketing in europe and the u.k. and germany and governments are acting to take the burden off consumers. this boils down to investment. lack of investment, chronic underinvestment for several years is taking us here. that is the major issue. i think it requires a holistic solution. it cannot just be solved by telling opec to produce more. this is a dichotomy. looking at the g7 statement calls on opec to act responsibly to add supply to the world but at the same time asks for stopping funding of fossil fuel investments. how can you have both? manus: do we need energy -- do we need to accept that energy is delayed not denied? >> transitioning out of the use of coal, the world uses coal so we need to agree on the definition

oil in focus, we have opec-plus meeting later today.rstand they will be setting policy for september but not buckling from pressure to raise output. haidi: nancy pelosi's taiwan visit has prompted china to announce missile tests, some of the most provocative actions in decades. john kirby says washington is prepared to manage beijing's response. >> that united states will not seek and does not want a crisis. we are prepared to manage what beijing chooses to do. at the same time, we will not engage in saber rattling. we will operate in the western pacific as we have done for decades. haidi: for more, let's bring in our taipei bureau chief and stephen engle. on the ground, what are you hearing in terms of expectations for the agenda? reporter: the focus is speaker pelosi's visit, all about chips and human rights. she starts off the day with a visit to taiwan's legislature, she is here to conduct diplomacy. then, she moves on to the presidential office where she is scheduled to meet with the president, they will meet for about an hour and

so opec's not going to get this job done. they're in bed with russia.a and india are buying, china and india are buying most of russia's output. if we want to get control over energy, energy prices we need to produce it here at home like senator cassidy just said. we have the best standards, the best technology, the best environmental protections and that is where we need to unleash american energy is right here at home. elizabeth: but the biden white house, they inherited trump's powerful u.s. energy sector, right? we were energy independent and they inherited a v-shaped recovery. they're claiming that gas is going down when they're releasing oil from the strategic reserves. this is the national security issue. president biden is draining the reserves to levels last seen in 1985, as he undercuts u.s. energy. this is a bailout on the taxpayer's nickel of his bad polls on a downward slide. what do you think? >> you're right. he is misusing the strategic petroleum reserve. you're right, it is at a 40-year low almost, down since the mid 1980s, worse than t

big meeting of opec+. let's see if the saudis plan to produce if more oil as president biden begged hem too more -- them to last month. $95 a barrel. in tuesday's primaries, two big wins for trump-endorsed candidates. in arizona, blake masters. in michigan, juda dixon, trump backed her, and she will join us at 10:00 this morning. a surprise in kansas. voters rejected an amendment that could have paved the way for the state legislature to ban abortion. later, i'm going to editorialize about pipelines. you can't build a pipeline these days because the greenie lawyers won't let you. it is wednesday, august 3rd, 2022. "varney & company" is about to begin. ♪ ♪ these are the days when anything goes. ♪ if every day is a winding road. ♪ i get a little bit closer ♪♪ stuart: every day's a winding road. lauren: we're struggling. finish a little bit slow. to the weekend, perhaps, hump day, halfway through. stuart: yeah, not wild. what do you think? >> i interviewed sheryl crow. she's a nice lady. stuart: here we go. s

quotas and opec is also worried about what is hay head. remember the full european sanctions on russian oil do not kick in until december 5th got partial sanctions now, full ones kicking in on the 5th opec making a very vague opec-esque type reference to what may happen by saying basically, quote, all right, well, you know, we've got these -- we want to make sure that we've got some oil in case we get some external supply shock or whatever it is that severely limited capacity. so what they're saying there, tyler, is that we don't really know what's going to happen at the end of the year with russia if there is a supply shock, a couple million barrels a day of russian oil simply come off the market, that if there is any spare capacity, opec wants to be able to meet that demand then, not now. 100,000 barrels per day, barely an increase at all. >> they basically want to keep a rainy day fund or so they say because the acute moment may not be here right now, it may come in the winter, which is possible, i suppose, right >> yeah, because you've

opec might have to curtail production. other opec countries have joined in behind saudi arabia. running readout is an energy reporter. -- joining meat now is an energy reporter. gas is up. >> a couple things. everybody knows about the tension between russia and europe right now. on top -- on top of that, there are planned and unplanned outages. the same time, u.s. export has delayed resources to november. russia has decided to cancel one shipment to an asian customer because of issues. triggers are very concerned that this is an increase in competition. green buyers, maybe chinese buyers trying to draw its way. that is pushing prices for everything up. even u.s. national gas prices. they hit $10 earlier this week. manus: this is where it begins to get really tight. abided administration is banking on gas prices. the equivalent of over a thousand. let's take a little deeper into the opec story. saudi arabia have been concerned about disconnect in futures. mentioning the word cut. they are uttering their support. what do we know? >> we are still waiting to see how it turns out. si

that's how opec's new secretary general described moscow's role in the group. the world's largest oil exporters brush as a big main and highly influential player in the world energy map and its membership in opec plus is vital for the success of any agreement the opec chief added that the organization is not in competition with moscow. he reiterated that the oil price fight began before the ukraine crisis broke out with spare capacity shortages being one of the reasons for the increase. the remarks come ahead of the open class meeting on wednesday with discussions on new market management strategy on the agenda. the group is likely to key oil output unchanged in september, despite us cause to boost applies. and saudi arabia, the middle eastern oil power house, economic growth hit nearly 12 percent in the 2nd quarter. that says russia is rebooting it's oil exports from the you focusing on asia with little serious disruption. moscow said to have produced more oil in the 3rd quarter of the year, despite the use partial ban on russian crude, feared mohammed mirandi

copper prices went up and there was no opec and proper.minum prices and other prices going up and no equivalent of opec. if opec was so powerful why were they able to control prices after the 1970s? the distortions in the oil market in the 70s were a resultf of a weak dollar. seventy opec or urgent demand for oil. >> but there was less supply or do you have other data? >> in the 1970s there wasn't a sudden shortage. what you find is currency weakens and you walk through in the book when you have that sort of distortion, people will do anticipatory buying because they figure they won't be able to get it and b we see that play out during covid lockdowns, people feel when i went to get paper towels for thist or that so you have anticipatory buying and in artificial search which then is calm down, it plays out that's what you saw in the 70s, not so much supply and demand -- oil is an international market so when they said we won't sell oil to the u.s., there are plenty -- you would sell it to holland and then went? oil flows where demand is so

that's in contrast to us, late alliances, which appear to be losing global influence. opec's equity general describes russia as in point home in the alliance. this despite continuing western sanctions on moscow's crude and r t visits moscow's new neon facility. as russia ram stopped with production and made an acute global shortage of semiconductors with good morning it's just got 5 am in the russian capital from where we joining your live. this tuesday morning, i'm policy and it's a pleasure to be with you for you a says that sees no problem and the potential visit of it is how speaker to tie one despite beijing labeling the move, a breach of its sovereignty, that submit reports at nancy pelosi will land on the island on tuesday with washington saying she has every right to do so. this is very much precedent in the sense that the previous speakers visited. many members of congress go taiwan including this year. and so if the speaker does decide to visit and china tries to create some kind of crisis or otherwise escalate tensions, that would be entirely on beijing. there is no reason for be

and again, we are not members of the opec plus. we do not belong to opec plus. but they made an announcement the first week of june and they said they would increase 50% in july and august. they did that. this is one month, if you think about it. this is a one month increase. but the president will continue to do the work. if you think about his trip to the middle east. it was important to go. you think about the announcement about the human truth -- yemen truth, that was a war that started eight years ago. by having that truth, going on six months, we are saving thousands of lives. that matters as well. we think the trip was certainly worth it. it also allowed israel to come back to be included in the middle east region, which is also important. so, when it comes to gas prices and oil production and meeting supply, we will work on that. you've seen the president take the steps, 20 think, about the strategic petroleum reserve how he was a -- any think about the strategic petroleum reserve, how he was able to rally our allies. we see that as incredibly important.

steven, many scenarios are being put forward on the table today for opec's decision.he question is, is now the right time in the jaws of recession to add more? they've added back 10 million which is what they took off. is now the moment to turn on the spigot. >> according to analysts we surveyed, no. now is not the moment to do that. when you look at what saudi arabia has been saying for month they don't see a crude oil supply crunch. they see a refinery crunch. which is why you saw gasoline prices rise so much. now gasoline prices are falling. oil prices have weakened down to basically prewar levels. and the market is looking to be in a better situation than it was even just last month. so when saudi arabia and other members come together, the analysts we've surveyed don't think there'll by any -- there'll be any increase for september that could also be doing not getting any anger out of russia which is having sanctions against them, and they would lose market share if saudi arabia or other countries boost the jut put that. being said there are some scenarios presen

chronic underinvestment to limited capacity those are opec's words, the supplier to the world and they't produce much more oil and we'll continue to see demand potentially rise especially as china comes back on and the economy continues to open back up and people continue to fly, you will continue to get additional is up supply and when inventories are low and the market is undersupplied, so prices go higher and that's how we get to a much higher oil price when we go through the end of the year. >> how much mischief is russia goinging to play both in oil and natural gas? >> probably more natural gas and as you know, europe really reli relies on russian natural gas and it is used during the winter heating season if russia shuts off the volumes of natural gas to europe there's a potential that europe will run out of natural gas this winter and hence why everywhere in the world needs more reliable u.s.-supplied oil and natural gas. >> if i can go back, rob, to your first point and you were talking about all of the reasons that you think oil prices will go to $115 a barrel and people conti

yvonne: that was the opec secretary general speaking to bloomberg. take a look at markets as we get closer to the japanese lunch break. markets digesting those fomc minutes. what kind of guidance did we get? are they done with the big hikes? are smaller hikes to come? it feels like yields are higher, but coming off in the u.s. at the short end of the curve. dollar is stronger against most asia fx. marginal, but decent declines in the south korean won. in japan lower by .8%. david: yes. coming up, we have this interview, saying they have achieved a small annual profit. that will be in a couple of minutes. millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network and most recommended wireless carrier. that's a whole lot of happy campers out there. and it's never too late to join them. get $450 off any new purchase of an eligible samsung device with xfinity mobile. or add a line to your plan today at xfi

saudi arabia is the largest oil producer in opec-plus. meets next month to consider output targets. d iran nuclear deal is closer than ever to being revived. the biden administration will soon make a proposal to the eu. the eu says it is encouraged to ron seems to have dropped demands. israel central bank has surprised most economists by delivering its biggest rate in two decades. the bench rate was raised to 2%. it is the longest cycle of hikes in israel since 2008. officials have been racing to get ahead of inflation, accelerated amid an economic upswing. the pakistan central bank has kept its benchmark target rate at 15%, close to a loan for $1.2 billion. pakistan is grappling with one of asia's top inflation rates, which prompted the central bank to raise rates. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. >> we are watching the commodities space with asian gas prices jumping following the bell. how are

in december, can you get me a ex act date for opec?it -- amrita thank you so much, the cofounder of energy aspects. coming up, we will talk more about energy. you kate regulator is set to announce a new price cap as households grapple with rapidly rising bills. this is bloomberg. ♪ manus: it's daybreak europe. i'm manus cranny in dubai. energy bills in the u.k. are set to rise further, the announcement of a price capital, in a few minutes. let's get to our reporter. it is will mathis, what do you we expect? >> we are expecting the cap to g o somewhere between 3,500 and 3,600 pounds, it is currently 1,500 so it is only going to keep rising. this is the beginning of the long-term period of really high power and gas prices in the u.k. manus: what will this next prime minister reasonably be able to do? what will truss do, because she is in the lead? >> she is signaling she will be more. whatever she does will probably mean spending a lot of money to try and shield people from these prices. there is really nothing you can do to stop the pri

saudi arabia says opec-plus may be forced to cut production. the market disconnected from fundamentals. and headaches continue. david: yes. one goes away and another pops up. certainly the strong dollar a symptom may be of underlying concerns. reconsidering really how much the fed can give us, if at all. a massive move up. massive move up, power crisis in europe overnight. have a look where we are. the commodities story on that very note. oil prices back on the back of the news the saudi's may need to consider the disconnect. maybe some production cuts. we will see what happens. >> we talk about energy, we talk about oil. the energy crisis in europe unrelenting. perhaps europe will see 10 very difficult winters. not surprising that is pushing energy prices way hi. german power prices slashing records. the warning perhaps should be heated. i think further steps need to be taken pretty soon. david: you are having to pick what to use your energy on. it is either too expensive or in two short supply. both options are a problem in terms of recession

markets tanking yesterday on europe fears >>> crude oil prices come down recently, could opec actually cut production we spoke with the saudi energy minister the key take aways ahead. >>> apple looking to diversify the supply chain away from china ahead of the next iphone launch in september. >>> former president trump challenging the legality of the mar-a-lago search which uncovered more than 300 classified documents. >>> later on, fall from grace. one pandemic stock winner is cut down to size this morning. it is happening on this tuesday, august 23rd. you are watching "worldwide exchange." >>> well, good morning, good afternoon or good evening. welcome from wherever in the world you may be watching. i am brian sullivan. thanks for joining us. let's jump in and get to the tuesday money with u.s. stock futures showing a bounce back. right now all of the major averages up .20% dow up 60 points we are in the green. now wall street coming off some of the biggest declines of the year largely by what we warned you about at the end of last week. huge options expirations and new options posit

and copper aluminum prices other prices were going up and there was no equivalent of opec and if opec was so for why why weren't they able to control prices after the 1970s? so the distortions you saw in the oil market in the 70s or a result of a weak dollar not suddenly opec or a huge surge in demand for oil. there was less supply for oil in the 70s or do you disagree do you do you have other data? well in in the 1970s there wasn't some sudden shortage of oil what you find is when a currency weakens and we walk you people through in the book when when when you have that kind of a distortion people will do some anticipatory buying because they figure they won't be able to get it and we see sort of that play out a little bit during the covid lockdowns. so many people feel. oh, we're not going to be able to get paper towels. we're not going to be able to get this we're not being able to get that and so you have anticipatory buying so you get an artificial surge which then when things calm down play out, so that's what you saw in the 70s was not so much supplying demand you what and and

opec doesn't expect to dip into surplus this quarter. it bolstered estimates for non-opec supplies.forecast for demand. the revision is a diversions from the international energy agency that boosted its demand for oil. all off schultz his promised citizens a package to offset inflation. he says the government has the situation under control but he is warning that winter will be tough. as the war in ukraine goes on, the government has struggled to address the reliance on russian gas. kim jong-un has revealed he was seriously ill with a high fever during the recent covid outbreak. they're claiming south korea for the outbreak. hong kong's population has fallen by 1.6% with 120 thousand people leaving the city in the past 12 months. that is the third straight annual decline. the government cited district covid restrictions as a factor. hong kong has only seen a few population declines since the 1960's. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm vonnie quinn. this is bloomberg. >> as global

manus: russia was in that opec-plus meeting.y lobby hard against a more substantial increase? was this the most you can do without fracturing opec-plus? >> i think we have demonstrated that we have been very close with russia in this alliance is 27 and. the russians have played a critical role in supporting the stability of the market. the meeting was very short and swift. that is a sign that there was no division. it was a clear, unanimous devote. in 15 minutes, we were done and dusted. manus: that is part of the argument, isn't it? people are questioning that you are not proactive or on the front foot and you have this almost pacifist role at the moment. >> in july and august, we went on the agreed plan to step up. in july and august, we decided to be more active and moved to increasing by 650,000 by both months. that is a sign we are willing to be more proactive when necessary. it is not a fixed plan. that is the beauty of our monthly meetings. we can regularly evaluate to do. manus: the new opec secretary general they're spe