love the permian. think there is a great job being done around structuring the capital structure, but overall, it is a lot of debt, a lot of cash out the door, and it doesn't leave occi in a position if you have a down cycle in the commodity to be defensive and that is a big change. they have been a big dividend payer for a long time. it is a big change for their shoulder base. -- shareholder base. alix: in the stock price, chevron does the buyback, they walk away and their stock is up. occi's stock has just gotten hammered. is this idiosyncratic? leslie: it depends on the asset. as you heard mike wirth say, he is not ruling out m&a, but he says they will not be stupid which is what investors like to , hear. as you mentioned, this is a huge premium for a deal. this was a fight occidental more or less picked. they went after anadarko very frequently and often and continued to raise the cash portion to make this as palatable as possible to anadarko, and they initially were rejected. whether anyone will s

we've got over 2.2 million acres in the permian.uced about 300,000 barrels a day on average. 2023, weive years, will be producing over 9000 -- over 900,000 barrels a day in that acreage, a tripling of production. we don't need to do anything in the permian unless it is really value adding. alix: in the meantime, you got $74 billion in cash and unused shares. do you feel like it is burning a little bit of a hole in your pocket? michael: you can never feel that way in our industry, alix. you got to look at the downside on the price cycle. you've got to look at steady and well executed capital investments. you can never let money burn a hole in your pocket. alix: i really appreciate your time on a very busy day for you. th, ceo of chevron, walking away with anadarko with abel and billion dollar -- with a $1 billion breakup fee. guy: fantastic interview. really interesting things coming out of that in terms of the structure of the market right now and where the next m&a story is going to take that company. let's check where european mar

love the permian. i think there is a great job being done around structuring, the capital structure, but overall, it is a lot of debt, a lot of cash out the door, and it doesn't leave off -- leave oxy in a position if you have a down cycle in the commodity to be defensive and that is a big change. they have been a big dividend payer for a long time. alix: in the stock price, chevron does the buyback, they walk away and their stock is up. oxy's stock has just gotten hammered. is this idiosyncratic? leslie: it depends on the asset. as you heard mike worth say, he is not ruling out m&a, but he says they will not be stupid about it, which is what investors like to hear. as you mentioned, this is a huge premium for a deal. this was a fight occidental picked. they went after anadarko very frequently and often and continued to raise the cash portion to make this as political as possible to anadarko, and they initially were rejected. whether anyone will start these kinds of bidding wars going forward, i think

giant and our bill petroleum what will this mean for the two hundred fifty thousand acre of in the permian basin artie's haven't heard joins us to drill into the details and finally right here begin this list and over how to do drivers in new york city you regulations up for ride healing services to a living wage our correspondent allison hale of it up behind the wheels to hear a true story all that directly ahead but first let's have some headlines. made a twenty nine thousand leads our global report today as violence erupts in paris ahead of marches to commemorate international workers day clashes between protesters and police started well before the official march was set to begin a spokesperson for french president emanuel told the financial times that mr mcclellan ordered extreme firmness against disorder and violence the masses on the streets were a mix of yellow bus movement style words union members and black bloc anarchists and while the yellow bus movement has clearly waned in recent weeks it's notable that the diverse marchers and protesters came out in such strength just a week

are you playing all of the m&a in the permian? leslie: it is tough to play but the next part of the cycle is taking up the costs. we have been bringing down costs at the wellhead level, making our factory in united states more defensive, but we have too many companies with too much overhead. in my mind, m&a makes sense and i plan to see it. who is the best candidate? i don't have insight into that but i do think this is going to be a 2019, 2020 story. alix: reducing leverage and reducing costs and reducing overhead, how do you play those themes? leslie: as you know, we are typically on the credit side of this and we are playing in some of the more distressed names in credit and the less known basins where we see the deleveraging story picking up. they have done so much, names have done a lot as far as getting their wellhead costs down and that is leading to a meaningful deleveraging. going down to less than two times levered going into 2020 and that is attractive. alix: other names on the list? tina: the names we hear most often a

shale since both companies have a holdings in the permian basis now occidental oxy as they call it and history reportedly may seek to sale and darko stake in pipeline affiliated western mainstream midstream partners as part of the ten billion dollars plan asset sales that would be part of the anadarko deal also buffett's commitment to invest ten billion dollars in oxy to finance to end a darker deal is a classic move by buffett highly favorable to him and costly to the company now the structure of the deal is actually very similar to a profitable transactions that buffett's company did with goldman sachs and during the two thousand and eight financial crisis now it's very rare for buffett to participate in any bidding war for any company that's just not his style the last time he did do that though was in twenty sixteen supporting quicken loans dot tried on successfully to buy yahoo internet assets in another reason that buffett company is interested in getting involved in his deal well kristie is that berkshire has actually relatively limited investment in oil and gas stocks and energ

has been steady production out of the permian.pec has flattened out based on moves but part of your other story is what is happening in iran. a 10e last 30 days, we saw million barrel decline in iran. 8.9 with opec, but iran was leaving the drawdown in the last 30 days. alix: do we have any read on how that is combined with your global inventory data? kevin: not yet but it is a factor people are trying to focus on, like people talk about dark ships and other shipments of a rainy -- uranium product. there are sources we are trying to pull that picture together but it is important to realize when looking at what the u.s. government is talking about, about 14% of the iranian economy is energy. it is well diversified so it has other sources of economic activity that can take hits from sanctions. in the market, convergence and different prices. on the one hand, the flat place -- price rolling over and then crisis spreads blowing out. if your inventory data, which one is right? kevin: not necessarily which one is right. our thesis is ca

conocophillips has a big position in the eagle ford, the bakken, the permian.e finding ways to use those technologies in all of those areas and new areas. alix: what about digital? greg: we break it into three big buckets. one is data analytics. the second is back office focus, merging digital technologies. those are things like digital robotics, inventory, management, things like that. accounting principles. we are also looking at operations-focused emerging digital technologies. all of those areas are areas that are maturing rapidly. we are working with technology startup companies, with the big cloud providers, aws, microsoft, google. working with traditional emp service companies. we are taking a best in breed approach so we are not locking ourselves down to just one company, but really trying to find the best. alix: that was my interview with greg about -- level, conocophillips cto. it is more sought after than dorothy's ruby slippers. ruby chocolate is joining the ranks of dark, milk, and white chocolate. the rosie treat will soon be sown by a chicago-bas

eldar: it's a lot more than the permian, right?hat doesn't make any change to the sentiment. what we see, the entry into the program is still high, a high cost. but it has toe, be meaningful in terms of entry. as we see it now, it's not what we're looking for. annmarie: i want to ask you about politics in norway. i was there when they were divesting from oil companies. i know that has no bearing on equinor, but there is political debate. we recently saw the labour party to no longer push for exploration on the loft and islands. norway is no longer the most stable oil regime. how worried are you about this? there's really able political support for the industry. that's really important when it comes to some of the discussions. there are different views on oil and gas of session, the longevity -- of session, the -- obsession, the longevity of that. think this should be worked thisd get more facts on but there's been an intense political debate on the sensitivities and how we as industry can cope with that. it's important to separate

would have big positions in the eagle ford, the permian, and up in canada.nding ways to use those technologies in all of those areas and new areas. alix: what about digital? greg: we break it into three big buckets. one is data analytics. second one is back office focus, merging digital technologies. those are things like digital robotics to handle inventory, management, things like that. accounting principles. we are also looking at operations focused emerging digital technologies. all of those areas are areas which are maturing rapidly. we are working with technology startup companies, with the big cloud providers, aws, microsoft, google, working with traditional emp service companies. we are taking a best in breed approach so we are not locking ourselves down to just one company, but really trying to find the best. alix: that was my interview with greg lavelle, conocophillips cto. it is more sought after than dorothy's ruby slippers. and a whole lot sweeter. ruby chocolate is set to make waves on the palate of american consumers, joining the ranks of dark

i do get product from the permian to the consumer?he american petroleum institute, making sure we have a pipeline infrastructure that can transport this resource from where it is to where it needs to be. ask where the m&a will be, you want to buy a company that has a midstream asset where you can get the oil out. what do you like? sarah: i agree with that. what we refine in this country is heavy sour. we have a mismatch in terms of the crude slate with what our refinings are. the pipeline assets and infrastructure assets will continue to be important. there has also been this idea that somehow as we move to an electric car, we will have less demand for oil. and is an overtime question people are putting that timeline so close from a psychological standpoint when i do not believe it is that close from a physical standpoint. there is an undervaluation and some of those assets especially the commodityove that will be overlooked. the other point i was making, the iga says our energy mix will be 50% natural gas and oil even after 2020. the

the permian basin is is producing record levels of oil and gas.also comes with other compounds which are used to make last experience the compounds make their way from the permian to the gulf coast. before they are exported, they are stored. that is where caliche storage comes in. it is building two storage facilities to hold petrochemicals. one in beaumont, texas, the other in louisiana. they can hold a capacity of 67 million tons. it may take a while as it will cost $500 million and will build three caverns. its customers pay a monthly fee for the right to use the storage space and they are currently finding three to five-year contracts. it is backed by spectrum energy capital. only a third of the first cavern is contracted and the company has big hopes. i recently caught up with dave and asked him about those expansion plans. >> we have the ability to drill and create 11 caverns. we have drilled and created the first cavern, the ethylene cavern, that is in service. the next cavern will store y grade, and that will be in service mid-2020. those

regardless of what happens with anadarko, we could be seeing a wave of permian m&a anyway. been going on the last few weeks, this pursuit of anadarko has forced a lot of people to reassess what is going on in the permian. a lot of investors have been pretty active in the oil and gas arestry and some of those beginning to openly agitate for consolidation among these mid tier players. vonnie: the way occidental has gone out of this is to eliminate some of the risk. why did it take chevron's bid for all of this to happen if occidental was so obsessed with the deal? -- it turnsental out occidental was involved with making overtures to anadarko as fallback -- as far back as december early 2017. they have made various suggestions. all of which have been rebuffed. ,e do not know the full details but there is tension in the anadarko board. there were remarks about what the occidental management sees as a lack of motivation to get things done even though they have the superior offer. it is clear anadarko is more comfortable with chevron. chevron is a much bigger company. perhaps it

at the end of the day, whether in the permian, doubling down in other areas, you are getting high freenerated assets in the gulf of mexico, the dj basin in colorado. obviously, hopefully leveraging some of the synergies occidental has talked about in the permian to provide this highly visible, multi-decade period of cash flow growth. shery: as we saw this corporate drama play out, we also heard obtained ihas minority stake in occidental. will the industry go back to the old ways of tons of spending and deals? >> it's a good question but i think we are this existential point where the industry cannot. come inending on deals the way of benefiting from the scale you have an returning more capital to shareholders. but the endgame for a lot of the e&p companies, oil and gas space come is to return capital to the shareholders, start competing with others with dividend, free cash yields, deemphasizing this production growth metric that's only have chased for so long. -- that so many have chased for so long. to see anything you want from occidental to shore up its balance sheet, given they hav

the permian is early cycle where they are still working out how to drill the well. playing with different kind of techniques to increase the amount of oil they get out of the well and contain the parent-child wells with less interaction as big oil becomes big tech. i recently caught up with greg and asked him how technology was improving drilling performance. >> we are seeing big impacts. it is something where you don't have to wait multiple years to test an idea. the thing that really helped, is that we went from a world where it took maybe half a decade to a decade to bring a concept or technology out of the lab and into the field, to a place where we are doing it in a matter of months. alix: some of the but will -- buzzwords are things like spacing, how far can you space them apart, do it remotely and drill remotely, recoveries increasing the amount of oil you get out. what are technologies you're looking at two help in those areas? greg: we have been able to put together technologies around completion design, stacking of the wells or how we lay them out geometri

a major update to the friday night fights taking place in oil in the permian basin and a big bet on your pet. what wal-mart just did that could leave its competitors barking mad. it is tuesday, may 7th, as worldwide exchange begins right now. >> welcome from wherever in the world you may be watching. wow, what a difference a day makes. yesterday the markets indicated that they were going to tank at the open dow futures down 500 right now, yes, we are in the red. dow futures off 1 11 we are red, but compared to what with we had yesterday, this doesn't look too bad of course, the markets in the money really reacting to just one thing right now. let's go to eunice with more >> the commerce department announce reasonable doubt that the chinese vice premier would be attending the trade talks in washington on thursday and friday with the trade representative robert lighthizer and steven mnuchin there had been some concern that the chinese vice bream or even a whole delegation wouldn't show up in washington after president trump had tweeted his tariff threat, and overnight lighthizer had announ

kelly: they could try to take somebody else out in the permian.ons. there is other opportunities. presented this as an opportunistic offer and now if it gets into this bidding war, it is looking like they need to do it. tom: did total steel the african assets? kelly: i don't know that it stole them, but it was a great acquisition for total. this company has done well with countercyclical acquisitions and this gives it an enormous presence in africa and that crown jewel, that mozambique lng. francine: do these big mergers work? kelly: the biggest merger in recent history was the shelby jean merger. shell-bg merger. .t has been going gangbusters there integrated gas division has been getting more than its upstream division and they have an enormous share in lng trading which is expected to surpass the oil specter -- sector. tom: the conversation of the day, looking at a solid economy and maybe he will mention the word "patience." we will hang on every word from ida in aclar conversation with michael mckee. we are looking for anything forward on the

we want to talk about the permian boom, and we will, but now we're going to frame it with these tariffsmexican oil, can that give a u.s. shale boom another leg higher >> i think it could be a positive impact for the u.s. players on two levels. first, mexico's an important energy trading partner we export about 1.2 billion feet of natural gas to mexico ask a million barrels per day of products it is an opportunity both for natural gas and oil related products, businesses that touch upstream as well as midstream and downstream. >> 12.2 million barrels, much of that is in the permian what you try to do at your firm is try to raise money to help service these companies exist, and we've seen a lot of them go away do we have the money do we have the manpower to increase our production, charlie? >> brian, there's really two challenges the first is capital right now as a percent of the s&p, energy has been trading at its lowest level since the dot com boom in 2000 it's at 5% s&p at one of its lowest levels. from a capital perspective, the public markets have not been very friendly to oil and ga

>> absolutely. >> and what is it about the permian basin that you like?i don't like a desert just for its own sake. >> i asked warren this earlier today -- if it's such a great deal, the permian basin is such a great deal, why didn't you just buy anadarko? >> nobody asked us to. >> yeah. well, and that may sound strange, but who knows if they'd come to us we knew -- we do usually wait until people come to us. it isn't like we -- if we wanted to buy in the field, we necessarily, you know, would start dialing and flying around and everything that -- >> occidental knows a lot about the basin, and we don't. of course, we like having somebody with us that knows something about it. >> yeah, when we were at solomon, we had something called anglo american that some -- >> angle of persian? isn't it anglo persian >> something like that yeah -- >> anglo british or something. whatever it was, it was neither. >> anglo swiss, actually anglo swiss. they came to the directors and had a big plan for drilling in russia and we were going to put up a lot of money and send it

peggy: it underscores the value of this permian basin. that is where these two companies, chevron and occi, are really battling for triumph. david: bloomberg's marty schenker and polygons -- and peggy collins, thank you for being with us. you can find all of these charts and more by browsing g tv on your terminal. a few miles above the earth, there we have it right now, the international space station. we have spacex's dragon cargo craft, which has now been captured the international space station. they are going to be docking and offloading 5500 pounds of equipment. alix: apparently there is a robotic installation to the earth facing port module that will begin in a couple of hours. this is the 17th commercial resupply mission to the iss. david: it is so extraordinary we almost don't remark anymore. it is like a shuttle to new york , they are going up so often. and they make money off of it. we focus on elon musk and tesla and the difficulties making money, but this private company has been very successful. alix: and of course, the

and the permian, you had kind of a pullback to the extent that permian production picks back up when are open. possible we are looking at the wrong part of energy, and should be looking toward some of the renewable companies? thomas: i think you are looking at the future when you take into account the oil price and what drives it. the big challenge there is the price. what are you willing to pay for it? right now there's a bit of a premium built into those. david: thank you so much for being with us. enan of ubsmas dig asset management. he is staying with us. coming up, trade takes its toll on deere. detractor company cuts guidance as farmers shy away from big-ticket purchases. this is bloomberg. ♪ david: time now to look at three companies worth watching this morning. amazon has taken a big investment in deliveroo, a british company that delivers food, really going after uber eats. out with its ipo, part of the issue was they bump up against the amazons of this world. this illustrates the point. this could potential he pose a problem for uber eats. alix: what is interesting is the b

. -- permian. out in of the oil coming droves is blocked in by pipelines.he morecomes pipelines they need to move it to the coast, get it on tankers, but we are fee -- seeing forecasts of export something like 5 million barrels a day, a huge increase on what they are doing. more ofhe u.s. becoming a player in the international market. maybe his price estimates are inching up a little bit, but you heard him talk about their acquisition in the permian in shale. we have more of a bidding war for anadarko. there is a lot of interest in the oil passion. there is a lot of oil coming out of the united states. over the meteor to longer-term, that will loosen the market and give it more flexibility. gives us adudley fairly wide price target. where do you reckon we go on the price of oil? there is a number of hurdles to get over. >> late 60's. manus: ok, and the you think trying to get around zero, in terms of the waivers, no extension of the waivers, how much of that is already in tuned in the price of where we are with the political side of the story. >> that is al

oil giant and argo petroleum what will this mean for the two hundred fifty thousand acre of in the permian basin artie's haven't heard joins us to drill into the details and finally right here became a live and over how far a new driver is in new york city due to new regulations that force rides hailing services to pay a living wage our correspondent alex mahela it behind the wheels to a true story all that directly ahead but first let's have some headlines. made a twenty nine thousand leads our global report today as violence erupts in paris ahead of marches to commemorate international workers day clashes between protesters and police started well before the official march was set to begin. a spokesperson for french president emmanuel macron told the financial times that mr mcallen ordered extreme firmness against disorder and violence the masses on the streets were a mix of yellow vests movement style words union members and black bloc anarchists and while the yellow vest movement has clearly waned in recent weeks it's notable that the diverse marchers and protesters came out in such st

this is now the future of oil, the permian. tom: we will see.vron response. annmarie hordern, thanks for that brief. kit juckes of socgen with us through the hour as we see the markets through the move. -505 on the dow futures. coming up on "bloomberg daybreak," driving forward the conversation in petroleum. can we drive higher? stay with us. worldwide, this is bloomberg. ♪ >> i want higher interest rates. i think these are unrealistically low p of the problem we got a supply and demand. unfortunately, there's more supply than demand. i look at 3.6% unemployment. it does not get any better than that. do not remember when it was ever there before pay the biggest challenge we have and the biggest risk we have is dealing with entitlements in america and dealing with the debt. this debt is not limitless. when you have a $500 billion trade deficit with china, that is not good. the foreignut when governments do not want anymore of our -- any more of our debt. these institutions need to put these in norma's sums of money to work. tom: kenneth langone,

i have the oil service index and there had been a lot of activity in the permian and north american companiesave a lot of things potentially as a tailwind and that hasn't played out in the equity and there are obviously real concerns rid there. if you're trying to make it a directional bet keep it simple like uso and if you trade in the futures trade those. >> for more on pgz ones ak, go to cnbc.com. sign up for the newsletter mike reads it to his kids every night before bed so what are you waiting for? here's what'si coming up ♪ ♪ >> it's been game over for the video game stocks, but mike ko says there's one name in the bunch that may be a one up he'll break down the trade >> calling all action plans and reach into your pocket, not your phone and eetwt you are your action, if it's not, we'll stwr on air when "options action" returns. ♪♪ ♪♪ ♪♪ i'm not really a, i thought wall street guy.ns. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade,

oil giant and argo petroleum what will this mean for the two hundred fifty thousand acre a in the permian basin artie's haven't heard joins us to drill into the details and finally right here became the live and over how far a new driver is in new york city due to new regulations that ford ride hailing services that pay a living wage.

oil giant and arco petroleum what will this mean for the two hundred fifty thousand acre of in the permian basin artie's haven't heard joins us to drill into the details and finally right here became the live and over how far a new driver is in new york city due to new regulations up for ride healing services to pay a living wage our correspondent alex mahela bit behind the wheels to zero through the story all that directly ahead but first let's have some headlines. made a twenty nine thousand leads our global report today as violence erupts in paris ahead of marches to commemorate and are now.

going on right now in the permian basin as well turning to another area of your expertise from oil toprecious metals there is this case of the former precious metals trader j.p. morgan john edmunds mr edmunds pled guilty last year to trying to manipulate markets for a six year period at morgan from twenty two thousand and nine to twenty fifteen just this week his sentencing was postponed for another six months now edmonds says he learned those illegal tactics from other more senior traders at morgan and his case resulted in a blizzard of lawsuits against the firm so what is the current and future impact of this case on confidence in metals markets or is there still a corrosion of confidence in them in the markets. i think people close to markets are always concerned about short term manipulation if they can manipulate a bit a market as large as life bore that is global interest rates the ability to manipulate a smaller market like precious metals is of course always always present now many people in the gold trade like to blame what they see is low gold prices on manipulation i would

so i think when you've got that kind of backing it's a big boost to the permian basin i mean when buffett says this is the real deal and is willing to spend that kind of money i just don't think the story is a whole lot bigger than those ten billion dollars one hundred thousand shares that eight percent dividend i mean he's willing to spend the money to invest in that area so he's bullish on the area and so again i don't think chevron comes back with a counteroffer i think they'll look elsewhere but this is a very good boost for the area and i think it's very bullish for investment and it's interesting news for folks that are looking to invest in that area not just buffett but folks. thinking is this the real deal it sure is right and right here we want to get i want to get your take on some breaking news today the u.s. state department's secretary of state mike pale was rescheduling a sit down with chancellor angela merkel and this news came just hours before they were about to meet a u.s. spokesperson cited generic pressing issues in the relationship but we know one pressing issue in th

prize of the bidding war is anadarko's sole access to more than nine hundred square miles in the permian basin and the acquisition well may also want all the top players in the second largest oil producing field in the world despite technically winning the war oxy is now down six percent and trading at a fifty two week low. time now for a quick break but hang here because when we return what is the social impact of the . technology. joins us from singapore to break it all down. here are the numbers of the closing bell. there's an international economic forum is a unique event in today's business world. over the last twenty one years the forum has become a leading global platform for discussing the keys economic issues facing russia emerging markets the world. business community members attend a forum to address today's vital issues. watch our special forum coverage on r.t. . the see on his attorney when i. was a little kid. it. was a rule you. got to know people it's you posting it's with me. that's the thought of you. if you're. going to. give. this is a sticker from the water bottle fo

prize of the bidding war is anadarko's sole access to more than nine hundred square miles in the permian basin and the acquisition will may also get until the top player in the second largest oil producing field in the world despite technically winning the war oxy is now down six percent in trading at a fifty two week low. time now for a quick break but hang here because while we retire what is the social impact of watching technology. founders fund joins us from singapore to break it all down and as we go to break here are the numbers of the closing the. during the great depression which i'm old enough to remember that was most of my family were unemployed working. there wasn't it was bed you know much worse objectively than today but there was an expectation of the things were going to get better. there was a real sense of hope. there isn't today today's america was shaped by the turn principles of concentration of wealth and power. reduced democracy attack solo do no engineer elections manufacture consent and other principles according to. one set of rules for the rich. that's what ha

a major update to the friday night fights taking place in oil in the permian basin and a big bet on your pet.

are unlocking the full oil and gas potential of the permian basin in texas and new mexico and sendingto you. you are taking it over, doing a good job, and shipping it all over. we ended the moratorium that stopped new coal leasing on federal lands. the full to responsible are doing an incredible job. -- the folks responsible are doing an incredible job. i withdrew from the one-sided paris climate accord. [applause] pres. trump: you just take a look at paris. the president is a friend of mine. sometimes i call him up, how are you doing in paris? not so good. the yellow vests. all about the accord because they were charging people tremendous amounts of money and sending out all over peopleld to countries have never heard of. i saved $1 trillion by not going with the paris accord, and i thought i would take a lot of heat, and instead we have been praised for not doing it. [cheers and applause] the paris accord was an agreement that would have shutdown clean energy production in america while allowing top or in polluters to do whatever the hell they wanted -- top four in top foreign pollu

they were in a bidding war with chevron for the top reduce her in the permian basin. korea may have conducted its first ballistic missile launch as a -- since 2014 as a challenge. this is appears -- this is what appears to be the firing of a short-range missile. chief asia correspondent stephen engle is watching this and it seems kim jong-un again wants attention. this was almost predictable given or following kim being left at the altar by donald trump in hanoi in the second nuclear summit that didn't give any progress. since then kim jong-un has blessed to the white house as exhibiting bad faith -- blasted the white house as exhibiting that faith. that is what he said to vladimir putin recently. you could have predicted this. it is a direct challenge to trump's bottom line here at jim has expressed frustration -- bottom line.ump's kim expressed frustration. in south korea, condemning this, saying it was a new tactical weapon and artillery traveling 150 miles. a south korean spokeswoman condemning it as well. and south korea is on holiday today, unlikely to get immed

wirth, well, what about buying something else, perhaps permian. said, listen, i don't need to do a deal and i'm going to continue to be disciplined if something comes along that meets the return parameters we like, as was the anadarko deal at 65, they might move but they're going to do 300,000 barrel a day in the permian now going up to 900,000 in the next four years without any acquisition in that region anadarko down, perhaps in the hopes -- hopes dim completely on any bidding war here chevron up, occi is down. >> down about 7.5% so far this year i guess the question is going to be whether it will pay off for a company like of course dentccida big risk, a big backer in warren buffett and making a bold play and whether investors will buy in. >> that's going to be the key. we're not going to know the answer for some time the deal itself will not close and you have to move forward from there making it very clear she would not back down, being extraordinarily aggressive in securing that money from warren buffett as sara alluded to, 10 billion at 8%

beyond that certainly the trend continues to be higher the problem with the permian is just off the charts. that's why you are finally seeing activity from the exxonmobils, the chevrons, the steel with anadarko. objection dental petroleum. >> they can turn off their transponder in nondollars. they have to do it in non-dollars. india needs their oil. japan needs their oil. china needs their oil. i'll tell you, in libya, everybody seemds to be backing general there. that could fall and be set up. >> doesn't sound like you think prices are going to spike. >> sounds like -- >> i also think maduro will be out the door here, too, and the market is going do react negatively price-wise. >> he is finished. we're going to -- he will be out the door i would say within three months at the latest he is hanging out and holed up now in the military base in venezuela why. he is almost done. the military was involved in that his exit almost earlier in the week, so that's going to resolve itself the big strek of the market is going to be iran for who reasons. a, if they are foreclosed much more than maybe w

we can see permian production surging. the government expected to grow 23% next month.ll, plenty of supply in the u.s., which is causing softness. you can find my chart on the bloomberg at gtv . vonnie: nice work. guy, you're next. guy: we're going to talk about iron ore. iron ore, the benchmark contract has gone through $100. there are a bunch of reasons for this. we need to separate the supply side from the demand side. , they are seeing the furnaces supercharged at the moment. huge quantities of iron or. what we have portside is twinkling supplies. at some point, those supplies will not be replenished at a big enough rate. the bigger factor is what is happening on the supply side. we had a brazilian official earlier suggesting brazilian iron ore production will be down 10% this year. barclays thinks it could go to 110%. there couldoblems, be further shots when it comes to the supply side. iron ore three $100 a battle. guy: it is not -- vonnie: is not too much to suggest both of these charts were phenomenal. i will give guy johnson the win. power,up on balance of

a major update on the big battle brewing in the permian basin we are all over the monday morning futures selloff 500 as atn inanthtrump turns up the he ocha d e trade war. a full impact on your money when "worldwide exchange" returns >>> welcome back to cnbc if you are just waking up. at 5:20 this morning we have a major selloff underway in the futures. dow futures are down 510 points. s&p and nasdaq are off a similar percent. stocks tumbling in china as well with the shenzhen composite, effectively the chinese nasdaq down over 7% as president trump threatens to raise tariffs on current tariffs and implement new tariffs on $300 billion worth of chinese good in china they threaten to walk away from talks. much more on that all day long on cnbc. that is not the only news today. also potentially pressuring dow futures. boeing shares are down 3% in the free market. that's on reports that the aircraft maker did not tell u.s. regulators about a disabled safety alert on the 737 max for more than a year boeing in a statement saying that the alert was inadvertently made optional instead of standa

let's take a look at the battle for the permian. who was the winner? we heard chevron saying they will not increase their bid to buy anadarko. that allows occidental to prevail, but chevron walked away with a $1 billion termination fee. the ceo told alix steel that was a win for them. david: thanks so much. it turns out chevron is the one story today that does not lead back to china trade. up, trade is in the spotlight. we talked with democrat majority -- on the his parties mission going on with china. that is next. this is bloomberg. ♪ david: this is balance of power on bloomberg television. we turn to mark crumpton with bloomberg first word news. mark: nancy pelosi says the house is not rushing to a vote on holding attorney general william barr in contempt of congress for not providing robert mueller's full report on his russian investigation. nancy pelosi pelosi said she will follow methodical process. the house judiciary committee approved a contempt citation against william barr for failing to comply with a subpoena for the full report in the unde

to get, nor are we getting sufficient supplies out of mexico and a lot of what we produce in the permianip offshore and export it, because our refineries are not set to handle the light grade of oil that is coming off. there is a little bit of imbalance. that pets pressure on the supply of gas even and the supply of diesel. with americans loving their mobility, and vehicle miles traveled continue to climb that puts extra pressure on the gasoline and diesel price that will stay that way as long as the economy is robust as it is. neil: we have our own oil production, 14 million-barrels a day. i don't know what blend that is that would affect the prices here but do you look for a summer spike then in prices? >> yes. i think we will see prices continue to creep up from a domestic market standpoint. i don't think they will skyrocket but i do think they will creep up on a steady basis until we reach the summer peek. i'm not sure what that will come out? is it $3, just under or over $3 a gallon but i think we'll be close to that pretty soon. the thing we have trouble with is the logistics in th

occidental has been saying, trying to win this prize for many years and get much larger in the permianng that we're going to have to look at and we'll get a response from anadarko in the next four or five days. matt: mohammed, thanks very much for it joining us -- for joining us. up next, we'll bring you some of the stocks on the news, including telenor, after talks to merge their asian operations. and we'll continue to give you updated with the latest of china's foreign ministry briefing in beijing. this is bloomberg. ♪ matt: welcome back to bloomberg markets. this is the european open. 43 minutes into the trading day. take a look at the gmm here. just shows you exactly how poorly equity indexes are faring. you look at the left-hand column , you can see black boxes and the cac 40, the euro stocks, the omx, and the smi indexes. what that tells you is that those indexes are falling more than three standard deviations from their typical 90 day average, so making bigger moves than they typically do to the downside. you can see that really all risk assets are down. you see commodities all