rise in oil prices probably for wti of $65 - $75 moderate rise in oil prices probably for wti of $65end and four brent crude, $67— $77, so we see modest increases because of tail winds and we believe some strong headwinds. the massive inventory that still hangs in the us of 480 million barrels plus will act as a headwinds and we suggest we will see us production increase in. there is no jetson style flying cars us production increase in. there is nojetson style flying cars or star trek style teleportation yet but this year's consumer electronics show in las vegas will showcase a huge range of new innovations, one of which is a virtual reality booth for people to play videogames without having to a headset. chris fox has a look. iam moving fox has a look. i am moving forward, i fox has a look. iam moving forward, i have fox has a look. i am moving forward, i have to shoot that, how can i do that? oh, wow. this is surprisingly scary. i have walls and pins coming at me. oh, i have to avoid the dogs now. i am really scared of dogs, so this isn't fun. whoever designed this is very sadisti

we saw wti not rising above $55 a barrel but not coming back strong and reviving fears of u.s.ng back on stream and perhaps taking the impact of those oil production cuts shery: out of the picture. oil prices fluctuating this week , falling right now. do we have any sign the cuts are working? tracy: let me give you the optimistic picture first. we had open interest on wti futures reached an all-time high yesterday, despite the iea that everyone was worried about earlier in the week. posting the best one-day gain since november when the opec was reached. that is the positive. on the downside, if you get complicated and look at wti price structure of futures, you see that is returned to the market on some parts of the future curve. that should be worrying for opec members given the thing they are trying to do with reduction cuts is reduced the global glut in crude and also make economic oil storage less profitable for producers, especially in the u.s. shale country. if contango is coming back, that could be potentially worrying fine. shery: tracy, thank you. we are counting down

. >>> 2016 saw wti's best year since 2009, and gold snapped a three-year losing streak. jackie deangelis takes us through what to expect from commodities this year. >> reporter: volatility was the name of the game in commodities. gold, oil, copper all saw massive swings. it looks liking that will continue because there's so many unknowns. gold prices will move lower. gold prices will continue to move on fed action. a dovish fed has been supportive of gold. a hawkish fed is not. the fed's actions impact the collar which impacts gold. so, with fed change coming, the expectation is that gold prices will not fare well. crude prices will move higher. crude oil saw massive swings this year. it's expected to slowly climb higher and stabilize next year. the range is expected to be between 60 and 70 but that hinges on supply decreasing and demand rising. a number of caveats could throw that equation off. crude has shocked the market the last two years. it's not impossible for it to strike again. >>> copper prices seesaw. copper is an indicator of global growth. specifically in pl

>> i want to start with the oil contracts, the wti u.s.ontracts, coming back after that drop in monday's session, up by .3%, ahead of u.s. government inventory coming through on wednesday, likely to show we saw u.s. inventories rise by 2 million barrels last week. unfortunately, the oil gas sector trading off the back of that big slump we saw in crude yesterday, so the sector off by .5%, santos in australia down by 2%. a number of the producers in off byng as well, cnook 1.2%. tracking towards the highest level we have seen since the beginning of november. you have flat movement on the shanghai composite on its lunch break. hong kong holding up well despite the weakness in energy players. the hang seng higher by .5%. elsewhere, some good movement from the southeast asian markets. india tracking well, higher by .7%. ont yen fluctuation weighing the nikkei today, down by .9%, its first trading day after being close yesterday for a public holiday. you are seeing weakness in the oil price way on the australian share market. ofs is its first lo

. >> oil this morning shy of 55 on wti. near a 12-month high.n terms of the market moves, complete reignition of the post trump election trade with equities higher, dollar stronger. it does suggest that there was some of those factors of taking those profits as the year ended, the december to january transition. this is a positive, bullish move. if it continues for the rest of this week, that's an encouraging start. it may be a one-day thing, but this is a snap back from a disappointing end last week. >>> december manufacturing pmi out at 9:45 eastern, followed by the december ism manufacturing index at 10:00 along with construction spending. >>> president-elect trump hitting back at north korea and china in cheats. north korea leader kim jong-un warned preparations for launching an intercontinental ballistic missile were in the final stage. trump tweeting in response saying that north korea has just stated that it is in the final stages of developing a nuclear weapon capable of reaching the u.s. it won't help. in a second tweet he criticized ch

wti up by a half percent to

extending that today by a half percent. 52.5 on wti.t gain for wti yesterday pushed the energy sector to be the best performing sector on the s&p. ten-year treasury note, the yield has slipped to november lows now. so definitely a retracement from the highs we saw in the first or second week of december. 2.33. dollar softer yesterday. about 0.3%. marketedly softer today, about 1% move against the yen, the mexican peso is stronger. universal dollar weakness today. albeit more of a slight rebound following record lows hit in the last couple of days. a quick look at bitcoin, it was hitting all-time highs a week ago, but a sharp pullback since then. 764. gold prices remain just above $1,200. there we go. let's get back to politics. the reaction to trump's first news conference as president-elect yesterday. we've been talking about the market impact. now as for the political impact, john harwood joins us from washington with more. he's had time to digest what was an interesting and unusual news conference. >> very interesting, sara. you guys

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mark: what would that do to the price, i do not have time to ask, time.t wti at $52.80, up next, detroitking news from to build aling plans plant in mexico saying that donald trump policies influencing the decision. at 12:20 eastern, an interview with ford ceo mark fields, an important one to tune in for. ♪ mark: live from london and new york, i am a mark barton with vonnie quinn. this is the european close on bloomberg television. state news in the auto industry. vonnie: the mexican peso headlines,the ford they are stopping plans to build a $1.6 billion plant in mexico after coming under criticism by donald trump. mark fields, the ceo, said this in a news conference in michigan. for more, we are joined by david welsh in detroit, a $1.6 billion plant but there will not be a plant in the united states to take its place. we will see expansion at an already existing plant. what does this mean for the future of ford? >> they will be shifting production from one location in mexico to another. while we cannot see, will be plant be enough to build all the vehicles they need, whether compact suv

that will have a material impact upon wti prices in the united states.he trades are 4 or 5% discounted to brent. you could take to it a 10% or 15% people aremium. that has a lot of implications. even if they take it to the a large premium, if you're using domestic crude oil, you can deduct the cost. if you're taking in foreign crude oil, you don't get to do that. so the impact will be material. valero gets all of its crude oil domestically. it will be at an vac. so the small producers will been get as the tax goes into effect. it goes to a premium. it is complicated but interesting. >> so you like valero. how about exxon? >> always as a hedger. if i had my druthers, i would rather not be involved with exxon. i would rather be involved with valero. long of valero and short of the multinationals. >> hey, will he me ask you, how much do you think is already in the spread? if we said tomorrow, no border tax, where would it go? >> it hasn't even begun to move yet. i think what is going to end up happening, the real trade to me is to buy wti. i think it is no

rishaad: five seconds, where is oil, brent, wti going to be in six months?> $45 would be my guess. rishaad: thank you very much indeed. commerzbank visiting us in hong kong. could be the yuan next big shock to come out of china. we are looking at that and finding out why. that is on the way. ♪ mostad: the world's tightly manage currency, but yuan investors think we will see an exchange rate solely determined by market forces. ,e look at the reasons, and ok present the case for the free-floating of the yuan. >> it might sound crazy, but there is a case for it. china has been fighting gravity and had to deplete reserves and keep conditions tighter than they would to defend the exchange rate, which is not a great idea when you have a slowing economy. the free-floating will not be that bad, china has massive foreign reserves, a large trade surplus, and inflation is low, so why don't you just let it go? rishaad: of course, but is there anyone seriously contemplating that could happen? surveys of strategists, positioning in the options market, it is not the base c

wti, 5247, brent, 55.44.ting to see crude rally in the face of stock weakness yesterday, especially energy stocks at the bottom with financials. that tight correlation between oil and the broader market and oil and the energy stocks is coming apart a bit. we'll see how that continues. as for the ten-year treasury note yields, yields are lower. that's been the trend as the treasury selloff paused and has gone the other way. go back in the 230s again. >> we hit a low of 2.30 yesterday. just a reminder of that weak, back in mid-december, 2.64. quite a pronounced move we've had, and steady declines. today we are back up. bank stocks are tied to the yield curve. >> so is the dollar. yields in the dollar backing off from recent highs as well. 1.0650 for the euro. it's that dollar/yen number we've been watching. flattish, looking for some direction here. the pound is stronger also versus the dollar. 1.2219. especially amazing to see the ftse 100s climb in the face of a day where the pound is strong. saw that yesterd

wti crude sitting above $53 a barrel. 53.22. brent 56.38. down fractionally.atural gas popping a third of a percent. as for the dollar, wilfred mentioned the currency, it's worth reviewing. started off the year strong, now giving it back. partly on the concerns about strengthening chinese currency. either way weaker dollar, will it mean weaker u.s. stocks? the two have been marching hand in hand. unclear whether that matters. yesterday we got a big selloff in the dollar and stocks still marched higher. you would think the weaker dollar is helpful for multinational earnings. the two have been positively correlated on this idea of stronger u.s. growth. gold quickly, let's show you. i think we should swap gold for bitcoin with a record high price. gold here is firmer, up almost 0.75%. >> almost parity between gold and bitcoin. >> amazing. gold is a much bigger market. jim mellon tweeting this morning, applauding those moves. i'm sure he's making good money on those trades. in terms of what to discuss today, fed minutes interesting yesterday. some people were esse

not doing too much -- well, up about a percent and a half, wti. rebounding from last week.ollar, as we said, soft across the board. yen up about a percent. euro up about 0.6. gold prices to round things up, up 2% last week and gaining this morning about another percent or so. >> among the top corporate news, general motors is expected to announce plans to invest $1 billion into its u.s. factories. this will include adding more than 1,000 jobs in the u.s. the news could come as early as today. the automaker faced criticism from president-elect trump for building vehicles in mexico. sources telling phil lebeau the investment had been in the works for some time now. yesterday, president-elect threatened german carmakers with a 35% tax, a u.s. import tariff. he argues german automakers are better building u.s. auto factories if they want to sell to u.s. consumers. >> it will come with a press release these days. >> in other political news those days, president-elect trump is taking issue with one part of the house republican tax plan. in an interview with the "wall street journ

wti crude now at a 12-year low. >> are investors close to throwing in the towel? funds have cut their bullish bet to the lowest since 2010. i mean, are we close to that point or not? >> we are starting to see the conditions for a bottom. but we are not there yet. >> what kind of oil price do you need to break even? >> we at 60 can balance the books effectively. >> if you had to put your money on a number -- >> which hopefully we don't. >> the price at the end of the year would be what? >> 48. you can come back and kill me because i'm sure i will be wrong. francine: the energy ministers of saudi arabia and russia agreed to freeze oil production in a meeting. what does it mean? the markets were disappointed. they wanted a cut. >> the market wanted something that was probably too much to ask for the first meeting of these two countries publicly in a month. >> the meeting of top oil producers ended with failed agreement. no deal. we are seeing crude and brent tumbling this morning. >> what happened in doha and are -- with the fixation of iran and saudi arabia, will we

wti hovering around the $52 per barrel level. brent heading south of $55 per barrel.r the ten-year treasury note yield, yields have been higher so far in the last hours or so. we just crossed back over to 2.50 on the ten-year yield. as for the u.s. dollar, which in many ways, it has been the center of the action here in trading of stocks, bonds, commodities and currencies, it's a bit stronger here heading into trump's inauguration. stronger against the yen, that bows well for stocks overall, stronger against the british pound, 1 t.2303. gold is flat to negative there. >> donald trump will take the oath of office at noon eastern today. let's talk about his first 100 days. with us now is paul shear. thank you for joining us. >> pleasure. >> in terms of the meetings you've had over the course of the week, tell us the level of optimism priced in. is there room for him to have a surprise on the upside? >>> there's room for a surprise to the upside. there are two mr. trumps, one is pro business, pro growth, rolling back regulation, fiscal stimulus, infrastructure spending.

wti futures touumbled more than 3%. that was about prime minister may suggested that britain would drastically rework trade ties with the european union. kospi is trading lower. let's check on our global economic calendar for the week. the next day brings china's trade data for 2016 mirroring on economic slowdown monthly exports and imports. both posted year on year declines for much of last year. also on friday, an update on the u.s. economy when officials announce retail sales for december. >>> every week we ask specialists to share their perspectives on the week. we hear from the senior economist at mitsubishi research and consulting. he expects the account balance to show another surplus in september. >> japan's current account balance for november is forecast to remain in the black. expanding by more than $1.7 billion compared to the same month last year. the surplus is protected to tea tol $11.2 billion. the main reason is an expected increase in japan's trade surplus. the japanese yen weakened against the dollar

wti crude futures rose on thursday. that's after saudi arabia cut out put to its lowest in almost two years. forecast suggest a record level of demand from china. moving onto markets open this hour in the asia pacific. we're seeing losses else y. australian shares down by more than .8. we're going to take a look at cl china markets when they open in less than half an hour. >>> taking can care of elderly parents isn't easy. especially if they live far away. in japan, that problem is creating demand for new kinds of home monitoring services. nhk world reports on some of the companies trying to get their foot in the door. >> reporter: a man is making a delivery. he replace the cylinder at this home every month. but today, he and his company have something else to do. they are testing the health monitoring service. >> translator: have you tried the new rice? >> reporter: 73-year-old man lives with his wife. their daughter lives in another town and she's concerned about them. so they ask basic questions to make sure he's oka

wti's advanced calls continue to add rigs. we will take a closer look when we come back.omberg. ♪ guy: welcome back. let's get your bloomberg business flash with sebastian salek. the u.k. government is no longer the largest shareholder in the banking 6%.p, it fell below according to bloomberg data, blackrock is now the biggest shareholder. it received a $20.5 billion bailout in the wake of the financial crisis. according to bloomberg data,ther volkswagen executive, who faces charges of conspiracy to defraud the u.s. that's according to "the new york times." led thechmidt, who regulatory compliance office from 2014 to 2015, is expected to be arraigned today. the lawyers did not respond to requests for comment. donald trump is facing pushback against his america first policy. he has been putting pressure on the u.s. auto industry to stop making cars in the mexico and bring jobs back home. however the general motors ceo says she won't change production plans just because the president ends a tweet. you can see the first interview of the day for the north american internation

since 1985, wti has been positive in the first quarter 75% of the time.all average return of a little bit more than a percent. some of the big xle performers, including hess and halliburton as well. taking another leg down, intraday low, moving average with some support for nat gas. we had that run-up to almost 4. definitely profit taking here. back to you. >> jackie, thank you very much. >>> be sure you are right back here tomorrow, folks. we'll be reporting live from the goldman sachs conference in orlando, florida, including a bunch of interviews, including a pretty rare and exclusive interview with chesapeake energy. doug lawler will be your exclusive guest. fast money 5:00 pm eastern, you talk about chesapeake. it's a hot stock, big balance sheet story. we'll give you the inside track. >> thank you, brian. oil moves, bringing in utilities analyst chris kelly. great to have you with us. with equities in the past year and certainly since the election, some thinking you invest in some laggards in the group. what's your take on that sort of strategy? >>

all of this could -- the wti spread. how do you see his policies affecting the industry?ce just at the border in the first minute of 2018 went something like this will go into effect, you have to believe it goes up and imports for crude, the price goes up. the american crude price goes up. that should benefit american producers just like mr. trump says. america is great. producers thatze have a market only in the united states or simply export to the states. all else equal. the second derivative i think would be most likely domestic prices go up. gasoline. why would you want to do this? what is the first thing you're going to be able to show to all the swing state voters of yours? here is a bunch of pain, let's wait for the game. -- the gain. the political risk all around this -- even though mr. trump said this is going to be great, what are the ramifications, how does a suddenly disjointed, very intricate trading regime been fined a new equilibrium over what kind of time? who are the winners and losers? even that is difficult to figure out. what seems reasonable to conje

the crude market at an 18 month high for wti.s bloomberg. ♪ vonnie: 10:00 a.m. in new york, 3:00 in hong kong. i am vonnie quinn. mark: i am mark barton. of 2017.ding date vonnie: we are just getting breaking news, the ifm number set to come out, 53.2 and julie hyman has the details. we are getting a reading of 54.7, better than predicted. selling -- showing signs of inflation. month prior.54.5 a new yorkers and the unemployment portion of the index coming up 53.1. what stands out is the price is paid component. looks like it is pointing toward signs of inflation.

in october, 50, november, low 40s, and wti finished today at $53.72.-date saw a 40% increase and the largest since 2009 where crude gained 77%. the question now, where do we go from here? going as low as this year, probably not likely. the upside is limited, but over $60 a barrel is definitely possible in 2017. opec's yes, ma'am p y yopec's implementation of its plan. >>> mike has an under the radar way to get in with a call of action. >> first, let's talk a little strategy. we're going to talk about one of the most basic strategies in options, the buy right. buy right is when you buy stock and sell calls against it. what to you want to look for? first of all, you want to be bullish on the underlying stock. you're buying it. you're going to look to collect premium by selling options. i look to collect 1% per month. obviously, if the stock is much more volatile, it might be more than that. if it's less, slightly less. i want to sell calls at a strike where i'm leaving upside, room for appreciation. we're taking a look at neufeld exploration. it's been b

wti crude at 52.92.hen in washington news, the senate passing a budget mechanism earlier this morning that's going to allow congressional republicans to repeal obamacare with a simple maj majority. president-elect trump says he's committed to offer a detailed replacement plan. >>> and apple planning a significant move into a new tv and movie content. this coming according to dow jones. the content would be available to apple music subscribers. executives are reportedly hoping to roll out the new offerings by the end of this year. i imagine apple music will become apple media or something, given it's going to be a multi -- got music, podcasts. >> growing menu. >> video. >> podcasts. >> skeptic, are you? >> that'll be the day. >> big business. podcasts are becoming a big business. >> but you're sitting there watching. >> i wasn't watching a podcast. i was just watching a periscope live -- it's like facebook live video. >> i'll take your word. >>> former exxonmobil ceo rex tillerson facing a barrage of ques

wti training $53 a barrel. automakers bringing production home.s is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. anything with a screen is a tv. stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. a look at the first word headlines. the british government having to rethink it strategy for leaving the european union after parliament must be consulted on the brexit. the prime minister argued she has the power to trigger it but the supreme

the bti -- wti me not go down as much. this may not go down as much. wti may not go down as much.ressure from day becomes a focus on trade and emerging markets that we've already had a big run-up in the dollar. higher interest rates in u.s. led to the run-up. if we have on top of that all these trade barriers, you will have dislocations that persist for a number of quarters. in the long run, everything is fine. in the short run, it will be painful. alix: what would be the downside target? francisco: we don't really have a downside target. we are talking about emerging-markets potentially going into recession here. every time i wake up and look at the emerging-market currencies , itping another 5% or 10% makes it hard for me to sleep. issue. the alix: great to get your perspective. , head of blanch commodities research at bank of america merrill lynch. --the next hour this is bloomberg. ♪ . jonathan: from new york city, a good morning to "bloomberg daybreak." i am jonathan ferro. the markets. the unwind of some of the crowded conviction traits. call it trump squeeze. health care ge

anything over $55 for wti is probably going to see more pressure coming into the market brazil, and chinai averaging at about $51 for the first quarter, $54 for the second. they are seeing an incremental gain. it's whether and how they can manage those cuts with the producers. it's a big question, here. keepy: just below $55 will them in check. thank you so much. up next, how to build a business that lasts. we will hear from the faux town founders on the challenges of their 30 year history. this is bloomberg. ♪ betty: this is daybreak asia. i am betty liu in new york. sherry: and i am shery ahn in hong kong. vietnam airlines says 2016 was a good year. profit expected to hit almost 110 million dollars. revenue climbing about 10%. by3 billion, helped passenger traffic, rose 19%. vietnam placed shares on the public market today. betty: a private survey indicates indian manufacturing has shrunk as governments withdrawal of high denomination rupee bills hit demand. purchaser managing index was lower than a year earlier. the continued slowdown could strip india of its position as one of the fas

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dollar strength weighing on crude with wti falling from an 18 month high, racing earlier gains.lier gains. this is bloomberg. ♪ wow, x1 has netflix? hey, drop a beat. ♪ show me orange is the new black ♪ ♪ wait, no, bloodline ♪ how about bojack, luke cage ♪ oh, dj tanner maybe show me lilyhammer ♪ ♪ stranger things, marseille, the fall ♪ ♪ in the same place as my basketball? ♪ ♪ narcos, fearless, cooked ♪ the crown, marco polo, lost and found ♪ ♪ grace and frankie, hemlock grove, season one of...! ♪ show me house of cards. finally, you can now find all of netflix in the same place as all your other entertainment. on xfinity x1. anything with a screen is a tv. stream 130 live channels. plus 40,000 on demand tv shows and movies, all on the go. you can even download from your x1 dvr and watch it offline. only xfinity gives you more to stream to any screen. download the xfinity tv app today. scarlet: this is "bloomberg markets." commodity markets closing in new york. let's take you look at where things in stanford we begin with crude oil, racing losses earlier in the session to end t

look at the upside price risk we have a price target on wti of $57.50. further out we see prices moderating to 55. getkey is if prices cannot to the far above 50. in thee case is 55 second half of this year and 55 and 2018. >> so 55 is enough to get that supply balance ok? >> that is the key issue. you listen to opec rhetoric. it's not about price trading ranges but the normalization of inventory. create backwardation in the curve. why is this important? going into the production cut announcement we had the opposite. back end 55 for risk capital. if opec can get that done to the curve by lower normalized inventory they benefit tremendously and it reinforces their market share strategy. the other reason is lower volatility in oil prices. they are issuing $70 billion of debt and the potential for an ipo. lower volatility leads to higher valuation of assets. >> had you see this shale rebound continuing supply up tick? >> the base case is the quarter over quarter increase is likely to be 500,000 barrels per day. there is room for that due to stronger demand

the bti earlier higher by about .4% -- wti earlier higher by about .4%.k of america is the next tory. mark: poised to boost bonuses for many bond traders. -- income america is the next story. joining us now with the latest .s laura keller the rebound in sentiment around fixed income that we experienced in the second half of last year. expectas you can see, we 10% for traders of fixed income products. that is much better than we would have expected the first half of the year when it was really terrible across every credit or currency. mark: not such good times for equity. laura: the disc record -- that is correct. 5% fewer if you are trading equities products. the stock world is not doing as well as fixed income for the end of the year. reward or this a incentive? not much of an incentive for equity traders. laura: this is a bank that is having trouble returning on equity like they wanted. they are trying to cut costs. it is a bit hard to justify these bonuses for these equity traders when in fact they've not been doing as well. vonnie: will the markets no

athave a price target on wti $57.50. for the route, we see prices moderating to 55.es significant. our base case is $55 in the second half of this year and five dollars in 2018. >> six months -- and $55 in 2018. the key issue is, you listen to is, theres revenue are several reasons why they want normalized inventory. backward motion in the forward curve. going into the production cut announcement, we had the opposite. spot prices were at $54, back and were at $55. if opec can get that done to the curve by lower normalized inventories, they benefit tremendously and it reinforces their market strategy. volatilityns, lower in oil prices. $70 of debt this year and a potential ipo of aramco. >> have you see the shale rebound in the united states continuing the supply uptick? is the quartere over quarter increased this year is likely to be 55,000 barrels per day. there is room for that thanks to stronger demand growth and supply decline. if you get numbers too much higher than that, in the $65 range, it starts to become a problem. to $60,is in the $55 the system can accomm

wti crude off and the last trade there. ice brent crude, those futures off by about 25 cents.ff by half a percent as well. >>> i mention the dollar. it is declining against some of the major currencies like the euro. 107.28 and weaker against the yen, 113.58. >> interesting move on the yen. the dollar just sinking. i guess the trump comments during the inauguration, perhaps the speculations about trade wise. >> it has been a strong rally for stocks, up for the s&p and the question now is we need see some specifics, policy behind the actual action. a lot of money has move under to stocks and there's a lot of optimism. we heard from policy makers on the economic front. now we need to figure out how it's all going to work. quickly, let's show you gold because it has been on a stronger run. it has boosted gold for four weeks in a row. >>> president trump's first 100 days in office kicking off. he will have talks soon with leaders of canada and mexico and begin renegotiating the nafta trade pact. that was a central promise of president trump's campaign and he's scheduled to meet wi

brent and wti both trading off a little bit. started by asking him what was behind these gains seen in momentum for oil cuts. >> translator: today's ministerial level meeting demonstrated that countries have been behaveing i constructively towards each other. the meeting was positive and we didn't expect things would be so positive in terms of the agreement in january and the actions of the countries exceeded our expectations, such as algeria and kuwait. there's lot of work to be done in terms of monitoring the situation because we don't have any final statistical data but we're seeing that the market is becoming significantly more bounced. and stablization of surprises, even a certain potential for rise in oil prices. >> and she also had the chance to speak to saudi arabia's oil minister. >> i think significant in the last couple of years.. i don't think there will be anywhere close to where we saw before the down turn. and as we all know there are too many variables that get in the way of what we would predict. so there are ge

wti crude is flat after successive days of gains. and china are bracing for tighter liquidity. demand for cash surges before the start of the lunar new year holiday. oney markets were extremely .ight bonds is acai selloff in december. where are we now? reporter: money markets did have a con start to the year. .ou had a purchase rate part of that is a seasonal tightness. another part of that is if you remember, the pboc kind of started this liquidity crunch. there's also a bit concern about the situation. who is injecting the most cash. ,he most on record last month the pboc itself wants the situation to get a bit better. betty: can we expect the relief to continue? reporter: there is still some factors hanging over the markets. there is chinese new year coming up. it actually falls a bit earlier than usual, at the end of january. the other point here is also the yen. the depreciation pressure is mounting. april are worried there will be more capital outflows. thing is that if the u.n.'s week, people are worried the authorities might

and brent and wti trading a bit low this morning. >>> now a two-state solution is the only way to resolvelestinian conflict. that was the key take away at a peace daconference attended by countries. the final communication made no explicit criticism to move it u.s. embassy to jerusalem. they said the wording sent a subliminal message. jerusalem is neither the capital of it the jewessish or -- >>> coming up on "street signs. "and following yesterday's socialist primary debate. find out how the former french prime minister faired. ♪ >>> hi everyone. welcome back. you're still watching "street signs." want to bring you news hitting our wires. we're seeing that the german bundesbank is below the deposit rate for the first time and the deposit rate is at 0.4%. we're seeing that taking place at the moment and we have an ecb meeting later on this week on top of everything that takes place on thursday. we'll have full coverage for you. so no change expected from the bcb. it is an exaggeration to say that there's a comeback in inflation, according to the governor of the bank of france. now speakin

wti down by 1%. brent off by 1%.ti trading at 52.59. >> let's get you caught up on some big headlines. cisco systems buying software company appdynamics for $3.7 billion. it was gearing up to be the first tech ipo of the year and was supposed to price tonight at $2 billion, but getting picked off by cisco. chuck robbins will hang out today at 9:00 to talk about that transaction. that's one of his first interviews about this deal. apple nearing a deal to manufacture products in india. a team of executives met with senior government officials in delhi. in a brief statement apple saying they appreciate the open and constructive dialogue. the tech company has been requesting tariff -- >>> alcoa with better than fourth quarter revenue. >> maybe that's why we're reporting alcoa first -- not first, usually first. now we're -- >> yeah. what happened. >> split. >> yeah. that's what happened. my 18-year joke of -- >> alcoa being first like in aa -- >> name your company acme. people don't -- that might not work anymore. >> peop

wti, brent both up a bit. nat gas making a move as well. it has been whipsawed around the last couple of weeks. >>> ecb holding its first policy meeting of the year. president mario draghi will hold his normal news conference at 8:30 a.m. eastern. last month they decided to extend the bond buying program until late 2017. look at the euro. we are trading 1.06 versus the dollar, the yen, 114, and against the pound, 1.23. in the u.s. today, fed chair janet yellen will deliver another speech. this time in stanford, she will take questions from the audience. in remarks yesterday, a hawkish yellen gave a strong signal that the central bank is close to raising rates again. >> as of last month i and most of my colleagues, the other members of the fed board in washington and the presidents of the 12 regional federal reserve banks were expecting to increase our federal funds rate target a few times a year until by the end of 2019 it is close to the estimate of 3%. >> that's a slow climb up towards that 3%. yellen warned any delay in tightening policy

on wti right now.ti shows that son lower producers increasing their bet on lower wti crude prices. it's the highest level since 2007 so why is so many people so bearish? >> shale. the battle in the oil market has shalletween opec and they producers and opec made its move last year by agreeing to cut production. we are seeing nervousness on their part about how quickly shale comes back at these prices above $50 a barrel. there are indications the industry is more efficient and they are pumping oil quickly. anna: and the timing is really important here. they said it was always going to be a matter of time before the opec actions. actions ofinst the the shale producers. >> the interesting story is the saudi arabians saying they see the opec deal only last six months which is interesting to say. it's too early to tell what the impact will be. it may be they are trying to send a message to their partners that their participation is not guaranteed or they may realize that trying to take on shale for too long

if consumers have to pay more, wti is going to cost more. there's going to be a tax.t what point do we say it's going to destroy demand? >> i think the key point is oil is one of the most inelastic commodities out there, like food. ultimately, you get a pass through the tax to the consumer at relatively high rates. in terms of thinking about the ultimate impact, i think it goes to your point. you're right. the reason why it means u.s. producers will get that price signal, increase production and add supplies on the market, putting downward pressure on prices. >> if the two big pipelines get built what does that mean for supplies of commodities? >> i look at the keystone -- at this point it's a moot point. it was first conceived u.s. mid continent was short oil. today it's long oil. it really brings into question what are the benefits of it. so when we think about what it will do to the mid continent, it will continue to create more supply in an oversupply market. >> overall, we talk about stocks and bonds a little bit. commodities have outperformed. >> yes. now you're

>> my view is that we will be able to have a robust business model in the wti range. there's been significant improvement in costs since we last talked, you know, for example, our sustaining capital down 50% per barrel, and our unit operating costs down 30%, and our volumes up 26% from this time last year and the oil sands, and so there's a lot of things that have changed, and, you know, we're really taking and taking a look at what have we been able to accomplish over two years, how do we have a stronger company in this environment going forward? >> we do appreciate your views on all kinds of things, including the trump tweets. sounds like canada's safe for now. >> we're friends. we're friends. >> right. thank you very much. looks like canada's off the hook for now, but you never know. you never know. >> you don't. thaps, brian. speaking of the president, another tweet from the president-elect sending another stock tumbling, this time toyota. reaction coming up from former secretary and arizona governor, bill richardson, who wrote a version of the book "art of the de

wti, crude in that low to mid 50s range. natural gas backing off high levels.en-year note has been kind of one of the lead markets you could argue. the high was december 13th or 12th at 2.62. backed off from there. started to resume its rise. seems like that reflation trade came back with it. looking at the dollar, we have a little bit of softness after yesterday's gains. so you see it there. euro slightly stronger against the dollar. not a strong move yet this morning but cooling off after yesterday's pop. gold has also been on the defensive here this morning down two-thirds of a percent. >> earnings will dominate today's agenda. no major economic reports expected. before the open look for results from abbott labs, boeing, yew nig united technologies. after the close, at&t, ebay, qualcomm, las vegas sans. some dow components yesterday were disappointing. >> five reported, only dupont to the upside. you had a sell-on effect with verizon, 3m, johnson & johnson, not dramatic but it seems as if the market priced in a pretty good earnings picture. the guidance has

crude up -- wti crude up. we have gold futures down a little bit. the vix is below 12.he dollar index is at 100.16, unchanged, but at a low, relatively speaking. 10 year yield, backup to 2.43%. typically that moving in connection with the dollar. higherpe, we're indices come although, i have to say it is really the dax leading the way. mark: still ahead, the case of record dealing a major blow to the u.k. prime minister theresa may, requiring her to get parliamentary approval for brexit. we will hear from a woman who initiated the case against the government the gina miller, founding partner who joins us next. this is bloomberg. ♪ ♪ bloombergrom world headquarters in new york and london, i am vonnie quinn. mark: i am mark barton. let's check in on first word news. more from our newsroom in new york. choice forld trump's sector state makes his first visit to the state department. rex tillerson makes his visit. the full senate may approve them as early as today. there are reports president trump could announce his choice for the open supreme court seat early next week. 10

wti down a third of a percent. 52.45. brent unchanged, 55.23. a lot of talk about ramping up u.s. production, flooding the market with supply. baker hughes rig counts are higher. more u.s. production means lower prices. as for the u.s. dollar, weaker yesterday. nothing extreme compared to at some point the stock market selloff. weaker again today against the euro. but not against the yen. the moves are fractional. we'll wait to see if we get more direction through the session. pound weaker against the dollar. >> as we end the month, month to date the dollar is down 2%. that's something to note as we finish the first month of the year, that there has been a clear turnaround from the post-trump election rally that we saw in the last couple months of the year. >> it's near a two-month low, the u.s. dollar. it's been somewhat of a leading indicator for stocks. treasury yields have been setting the tone more. let's show you gold. on the back of the weaker dollar, gold has been rising. gold had a strong few sessions. up about a third of a percent. political risks, some say, is bullish f

looking at weakness there in brent and wti. let's bring in our oil and gas analyst from netixis. looking at the moves today, a bit of a pare back on recent strength we've seen. we'll get a better idea of compliance soon what is your expectation? >> of course we are looking at some compliance, maybe not 100%. anybody thinking it would be 100% was thinking in a different way. when you go to the last cuts in 2009, the best compliance we got around that time was 82%. despite that, i think the message is clear from saudi arabia, you could wait, algeria, iraq as well which we were not expecting in this case to be compliant, and even russia all so far announced cuts for january. we expect that to support prices. >> are we talking more about compliance this time around than what we are with other opec meetings? i don't recall this much focus on, you know, are they going to stick to what they promised? >> it's extremely important because without this opec deal and compliance, first quarter was going to be flooded with oil. despite having this deal and compliance, we will still see a surpl

. >>> oil, wti crude trading at $51.29.ce brent crude, the more international gauge at $54.17, up about 1%. there were reports this morning of saudi supply cuts to asia, perhaps that's something that commodity traders are digesting. nat gas slightly lower. if you're looking for a big mover in the commodity space, it's palladium up 12% on the reflation trade. interesting commodity to watch. switching focus to bonds, ten-year note, slightly moving higher here. yield at 2.39%. investors digesting those comments from jeffrey gundlach overnight. also bill gross, who says that 2.6%, that's the yield to watch on the ten-year treasury note. he said that will indicate a bear market in the bond pits. the dollar has been rising against a certain number of currencies. the yen and the u.s. dollar higher by around half percent against the yen. the euro at 1.05 against the u.s. dollar. the pound has been stealing the spotlight at a ten-week low. uk industrial output rising, the trade deficit widening in the uk. that has been propelling st

for the week up until today, wti is flat.his could push it over the edge in terms of a higher week. we mentioned the sharp correction in the dollar yesterday. it is back to strengthening a bit this morning. half a percent against the dollar/yen. pushing back towards 116. stronger against the pound as well. 123.89 or 90. and we check bitcoin, a huge mover lately. a lot of people looking at the negative correlation between bitcoin and the chinese currency as the chinese currency has declined, bitcoin has run up because of the demand from the crypto currency has occurred. it crashed yesterday, down 20% after that stunning runup. down another 7.5% potentially on the back of the chinese currency strengthening. we don't really know. we don't know what's guiding it. we know that everybody is paying attention. i'll check gold. safe haven traditionally which got stronger yesterday on the back of the dollar selloff. miners rose to the top of the s&p for a change. given a bit back this morning. >> interesting on the bitcoin front, liste