expect this underinvestment now for the next 18 months, two years.hen it will pick up rather quickly. that is the typical cycle. tom: what is different now from 1998? other commodity implosions, what is the distinction? that everything is floating, so we have mechanisms to adjust as we go? >> the important difference is that we really have a supply surplus now. -- when you go back to these conversations we have had the last couple decades, it has always been running out of oil. now it is the other way around. optimismou have an that we can diminish supply in a controlled and orderly manner? >> i think that is the wrong way of thinking about it. you don't want to interfere those market forces. you want it to work out through the pricing mechanism. make sure you don't obstruct in any way the supply coming downstream. let the market sorted out. there is no reason to think it will be mispriced. futures are at new lows this morning, -32. a smart conversation on value investment. howard barnes. joining us on "surveillance," on radio in boston, in new york,

francine: going to the possibility of a shock because of underinvestment, is it a 30% chance or highercause we are cutting investment so much, we get oil at 100? i wouldn't dare to predict. when i was listening to the oil producers and gas producers, they've been quite confident despite this brake pressure. there is new technology coming in shale gas exploration. producersr-cost oil still believe they can be competitive. we still see a lot of competition. francine: thank you so much for joining us. vice president of the european commission in charge of energy union. i know we have to look at the markets. today, a little better than yesterday. update us on where oil is. guy: one-story bouncing back. one of the factors behind that, mario draghi. francine maybe a little chilly in davos, but the warm weather has been contributing to poor retail sales data over the last few minutes. a significant miss. the summer retail sales falling 1% in the u.k. ae median estimate was for decline. unsurprising given how warm it is. only a few people need to buy warm coats. let me show you what else is ha

huge has been a underinvestment in that. jen speaks eloquently to how to bridge that gap and why it is imperative that we do. >> with the sense of working in your community, there's a code foralled the america brigade. 44,000 people across the country participate in their local communities and built technology for their city government, their local community. two of those active immunities are here -- communities are here. our office is on 9th street. one of our sponsors is in the back from microsoft who helps out with that community. this is activism that is digital that helps out in your community. >> we have time for two more questions. >> my name is ruth shapiro. i was watching the town hall with president obama about guns, and there seemed to be in the audience quite a few people who are very much galvanized i what i believe is completely untrue information about guns. i think the dark side or the underbelly of proliferation of information is the proliferation of untrue and destructive information with isis recruitment

there has been a huge underinvestment in that. government has been the enemy. we don't want to deal with bureaucracy. we are hit and cool and iterative and solve problems that they don't. jen speaks eloquently to how to bridge that gap and why it is imperative that we do. jennifer: there's a particular opportunity that bridges that with the sense of working in your community. that is a program called the code for america brigade. 44,000 people across the country participate in their local communities and built technology for their city government, their local community. two of the most active communities are here, in san francisco and oakland. one of our sponsors is in the back. this is activism that is digital that helps out in your community. y: we have time for two more questions. >> my name is ruth shapiro. i was watching the town hall with president obama about guns, and there seemed to be in the audience quite a few people who are very much galvanized i what i believe is completely untrue information about guns. i think the dark side or the underbelly of

and while we continue to lead the world on innovation and entrepreneurship we have historically underinvested in clean energy. in fact,fact, compared to the size of our economies we invest about one 3rd as much as competitors like china and japan. as we try to reverse this trend, we will continue our electric and heavy-duty vehicle work. we will work to invest in other important areas like the co- optimization of new fuels inventions to boost efficiency and renewable fuel use. through cross cutting r&d efforts to develop advanced high-strength materials to reduce cost and improve performance and enhance manufacturing processes for automotive use such as the ongoing work mentioned before as well as composites there and at oak ridge national labs and across the country through our institute for advanced composite manufacturing innovation. quick modernization is important to fully integrate plug-in electric vehicles in fuel cells in a safe, secure, reliable, and cost effective manner including critical cyber security work at idaho national and other laboratories. research and transportation mobi

they're underinvested.ou know, i have said we're in the seventh inning of this ball game using the baseball analogy. there's definitely some baseball to be played. it will play out over the next couple years, and we want our clients stepping in here looking at consumer discretionary, technology, industrials. cyclically sensitive sectors that are going to continue to benefit from this recovery here and abroad. >> certainly sounds like you both believe that the buy the dip old adage is alive and well. thank you very much, burns mckinney with nfj and scott wren with wells fargo investment institute. you can also go to our website which is powerlunch.cnbc.com to see how scott is playing geopolitical risk. there's quite a lot of that out there at the moment. that's powerlunch.cnbc.com. >> the shanghai composite nearly 2% higher after china's central bank boosted the yuan but it's been a nail-biter of a week. what should you do if you're interested in chinese stocks? martin schultz runs a five-star international

secondly, the people's mood over the past week when tech was extremely negative and they are underinvestedhe sector. a lot of what drives the sector is emotion and news coming out. i expect there to be significant favorable clinical data developments over the next year that now essentially washed out of many of the stocks. i think that the time is right to get back in. >> stiff knee, what's your view on the biotechs? >> selective because of the political environment, number one, number two, a lot of these stocks are not that cheap. so i do know that one of the names that len likes in gilead. it's been long rumored that they have to do a deal for this shock to get out of the funk that it's in. it's very cheap, no doubt, but i don't think people are going to pay for it unless they do -- do you see them doing a deal and what is the perfect fit in your opinion for them? >> sure. and i've said this for a while. i think gilead which is trading at eight times earnings needs to do a transformative deal like they did with pharma set four years ago in order to be able to get the growth rate back. i

and there's been a huge underinvestment in that in silicon valley for a very long time. government's been the enemy. we're hip and cool and solve problems. they don't. jen speaks eloquently as to how to bridge that gap and why it's imperative that we do. >> and if i could just add, there's a particular opportunity that sort of bridges that sense of social media in digital ca competence with that sense of hands and working in your community. the code for america brigade, there are 44,000 people that build technology for their city government, for their local community, and two of the most active communities are here in san francisco and oakland. san francisco meets on wednesday nights at our office on ninth street. one of our sponsors, who is in the back for microsoft, who helps out with that community. and open oakland is also in city hall weekly. so it's activism that's digital that helps out in your community. >> that's wonderful, thank you. we have time for two more questions. we'll take the next one. >> my name's ruth shapiro, and right before i came here, i was watc