have we run up too fast or did they simply get it wrong and undershoot? plus two billionaire investors hoping to put their portfolios into overdrive, placing big bets on general motors. should you follow their lead or does the company still have challenges ahead they can't deal with? >>> a beagle named miss p strutted away with the last big prize, westminster's dog show. >> my choice, for the best in show, is the beagle. [cheers and applause] tbut at t. rowe price,et is never clear. we can help guide your retirement savings. our experience is one reason 100% of our retirement funds beat their 10-year lipper averages. so wherever your long-term goals take you, we can help you feel confident. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. call us or your advisor. t. rowe price. invest with confidence. liz: the s&p closed at a new record high yesterday. didn't really do much today but what happened yesterday broke several banks year-end 2015 targets nearly 11 m

just as we don't want to overshoot 2% on the high side, we don't want to chronically undershoot 2% on the low side either. and so before raising rates, we will want to feel confident that the recovery will continue and that inflation is moving up over time. there are also, of course, risks of waiting too long to remove accommodation. we have a highly accommodative policy that's been in place for some time. we have to be forward looking. as the labor market tightens, wage growth and inflation can pick up to the point we would overshoot our inflation objective and conceivably there could be financial stability risks and we want to be attentive to those as well. >> right. >> so this is ball lapsing of costs and risks that we're trying to make in a deliberate and thoughtful fashion. >> i appreciate that. it's that balance that i hope your wisdom and those of your fellow board members can get just about right because i could see entering and choking off recovery before middle-class families actual feel its gains and trapping a too low inflation or deflation set of circumstances. i apprecia

we are undershooting right now to shave off capacity.ually, you are right. 2016, it looks like a constructive markets. a lot of the key projects are looking like a does not going to come online. >> short-term, we have had -- we have stabilized it looks like for the near term. where have we touched? >> well -- i mean, a tough question. where is the bottom? the focus it should run a what the cap would be. at the $60 a there'll u.s. shell will come back again. just to get -- we could possibly touching their to get a shakeup -- touch there to get a shakeup. again, we do not expected this to rebound because there are so many entries as in the moment. >> thank you. barclays commodities analyst. we have plenty more. will be tough to the ceo of bp. bob dudley. ryan chilcote is on the ground. that interview is about to happen. >> we will see you in a moment. ♪ >> welcome back. bp reported earnings. rising as much ast 5.8%. >> ryan chilcote sitting down with them ceo of bp, bob dudley. >> i am sitting down with mr. dudley. a good day for mr. dudle

if wages undershoot expectations in the next parliament as they have done in this parliament that is be an additional 9 billion pounds of spending on social security. at a time when we need to the reducing our budget deficit, we can't continue to spend more and more. there's a number of things we can do to make sure that work always pays so fewer people have to rely on benefits. we've said that we would increase the national minimum wage during the course of the next parliament to eight pounds. that would be a 3000 pound pay rise for somebody on minimum wage. that would mean more people can afford to pay the rent, the bills, put food on the table without housing benefits and tax credits. i think somebody who is in work shouldn't have to rely on house benefits to pay the rent. at the moment, more people are having to do that. >> when used speak to a lot of economists, they say 6% unemployment is a very good figure. especially when you look at the rest of europe. so it is all part of the recovery. it is slowly getting there. >> the reason why real rages pick up is because of the sharp

brendan: we are constantly undershooting the inflation target as well.ve got to move on to the next block. new numbers from the said give us a protective on the student loan situation. the perspective is things do not look good. we will show you in today's single best chart. this is "bloomberg surveillance ." ♪ tom: good morning, everyone. "bloomberg surveillance." i am tom keene. let's get to brendan greeley our single best chart. brendan: new york fed has been looking at student loan defaults. it may get worse. that is the single best chart. 2009 graduates have not yet seen the end of it, so what you are looking at is a cohort of graduates by graduation year. you see 2005 2007, there is a protectable pattern. they are both living the same direction. that scary white line has that a different slope and the others that is 2009 graduates, and what the fed has said is the ultimate nine-year default rates for student loans tend to be about twice what they are at five years, so that line, the 26% right now for default for 2009 graduates is going to get much

just as we don't want to overshoot 2% on the high side we don't want to chronically undershoot 2% onhe low side either. before raising rates, we will want to feel confident that the recovery will continue and inflation is moving up over time. there are also risks of waiting too long to remove accommodation. we have a highly accommodative policy that has been in place for some time. we have to be forward-looking as the labor market tightens. growth and inflation can grow to overshoot our objective and conceivably there could be financial stability risks. we want to be attentive to those as well. this is a balancing of cost and risk that we are trying to make in a deliberate and thoughtful way. >> i appreciate that. it is that balance that you and your fellow board members can get just about right. i can see entering and choking off recovery before middle-class families actually feel its gains. trapping a too low deflation or inflation set of circumstances. let me ask you another question. i have heard several commentators say the interest rate increase by the fed would signal confiden

just as we don't want to overshoot 2% on the high side, we don't want to chronically undershoot 2% on the low side either. so before raising rates, we will want to feel confident that the recovery will continue and that inflation is moving up over time. there are also, of course, risks of waiting too long to remove accommodation. we have a highly accommodative policy that's been in place for some time. we have to be forward-looking. him as the labor market tightens, wage growth and is inflation can pick up to the point we would overshoot our inflation objective and him conceivably there could be financial stability risks and we want to be attentive to those as well. so this is a balancing of costs and risks that we're trying to make in a deliberate and thoughtful fashion. >> i appreciate that. it's that balance that i hope your wisdom and those of your fellow board members can get just about right. because i could see entering and choking off recovery before middle class families actually feel its gains and trapping a too-low inflation or deflation set of circumstances. i appreciate t

our 2% objective and just as we don't want to overshoot the 2% on the high side we don't want to undershootfeel confident that the recovery will continue and that inflation is moving up over time. there are also risks of waiting too long to remove accommodation. we have a highly accommodative policy that's been in place for some time. we have to be forward looking. as the labor market tightens, wage growth and inflation can pick up to the point we would overshoot our inflation objective and conceivably, this could be financial stability risks and we want to be attentive to those as well, so, this is balancing of costs and risks that we're trying to make deliberate and thoughtful. >> i appreciate that. it's that balance i hope your wisdom and those of your fellow board members can get just about right because i could see entering and choking off recovery before middle class families feel its gains and trapping a too low inflation or deflations at a certain sense so i appreciate that. let me ask you one other question. the i've i've heard several commentators say that the interest rate increa

just as we don't want to overshoot 2% on the high side, we don't want to chronically undershoot 2% on the low side either. so before raising rates, we will want to feel confident that the recovery will continue and that inflation is moving up over time. there are also, of course, risks of waiting too long to remove accommodation. we have a highly accommodative policy that's been in place for some time. we have to be forward-looking. as the labor market tightens wage growth and inflation can pick up to the point we would overshoot our inflation objective and conceivably there could be financial stability risks and we want to be attentive to those as well. so this is a balancing of costs and risks that we're trying to make in a deliberate and thoughtful fashion. >> i appreciate that. it's that balance that i hope your wisdom and those of your fellow board members can get just about right. because i could see entering and choking off recovery before middle class families actually feel its gains and trapping a too-low inflation or deflation set of circumstances. i appreciate that. let me