wti, 42.44, down about 0.2%.rent crude below $45 a barrel nat gas higher this morning. >> that meant energy was the worst performing sector but only just beating banks in terms of the under-performance. energy down 1.6% banks down over 1% focus on them again today ahead of the stress test results asian equities at this hour, mixed performance. china had a tough day down about a third of a percent the shin zen com shenzhen comp . european trade is soft across the board today. oil prices falling yesterday down about 0.6% for france and the uk germany outperforming. only down 0.3% >> the broader market picture. treasuries this morning. mentioned lower yields 2.14 on the ten-year yield buying of treasuries the bond market is not buying the inflation story the fed is trying to tell it's oil and commodities across the board. kit juckes of socgen pointing out cocoa futures are at a low as well. there's the ten we're yield ever lower. as for the u.s. dollar, the dollar/yen reversed after this time this morning. it was hi

i mentioned oil prices you can see wti crude up about a percent. above the 43 handle. some could be short covering, don't have a lot of fundamental changes happening in the market. energy was just down precipitously. crude lost 4%, marking the fifth straight week of losses for the commodity. we're seeing a bounce back today. you can see french is higher almost at 46 dollar level. gold hitting the low of 1236.5 lowest since may 17th. it is now below 200 day moving average. >> if you look atl last week, focused on three sectors, energy, tech, health care. all in all flat. interesting to see moving forward with the summer with lighter volumes if you don't get individual props, tech or health care markets, little more messy. as we stand, flat in light of big declines of oil prices. >> volume was heavy friday heaviest of the year because of that rebalancing so much for a quiet summer with both headlines >>> speaking overnight in sydney, if they wait too long, the economy will overheat. the labor market could turn into a risk for the u.s. economy. >>> to the top corporate st

wti down 2%. wti at 47.33.rent down as well. 49.57. >> the interesting thing on oil, obvious that this would react in that way, permitting more supply to come on from the frackers, does this allow more demand for the fossil fuel -- >> or projects which may have been limited. >> it's reacted in terms of it boosts supply rather than demand, either way, i think the moves are small. 2% or so for what was the groundbreaking climate change deal of our time. biggest energy consuming -- >> even energy ceos wanted to keep the u.s. in the deal, have a seat at the table and a leadership position. >>> asian equities in the headlines today. the bank of japan hitting a new milestone. its balance sheet topped 500 trillion yen, tripling since the boj started its aggressive stimulus back in 2013. roughly the same size of the balance sheet of the fed now. either way, decent moves in asian markets. japan is a heavy consumer of s of fossil fuels. for the week as a whole, we're flat coming to this, german dax up a little, france is

that's a move mirrored by wti crude down to 47.41. let's look at what the oil makers across europe are doing. most are in the red. shell off by a third of a percent. repsol in spain outperforming. let's talk more about what this means for the commodity space with colin hamilton, head of commodities research at mccory. the fears about new drilling coming online and increasing the glut in the market, are those fears justified? >> no those fears are very justified. we're looking at a u.s. oil exit that may exit 1.5 million barrels higher than last year. wells have been drilled that are basically ready to go. if the regulatory environment eases, these companies can hedge out. banks are forcing them to, there's a good degree of confidence you will get that oil response in the u.s. >> how difficult or easy is it to start new drilling? with some of these projects it can take years or months, but you say many of these projects are ready to be worked on? >> yes, u.s. onshore is kind of like a top. you can get into it quite easy. wells have bee

i think they'll be ready for 2018 >> do you think we could slip below $40 from here on wti >> dependsn where sentiment goes i think sentiment is ahead of fundamentals i think this market is much more constructive on supply and demand we are in a bear sentiment trap. i think there is the potential we could drift lower >> glad we found you in sydney >> a great live shot behind you. >> talking saudi arabia on "worldwide exchange. >> exactly >> thank you >> now to china, a long-awaited decision msci agreed to add mainland chinese stocks to the index. eunice yoon is in shenzhen tell us about the reaction to this big decision. >> in this case it was fourth time lucky the msci finally decided to include chinese domestically traded shares into the all influential em index in theory this means foreign investors can get access to 222 high cheeinese mainland stocks. these are weighted in consumers, financials that's why we saw a rally in those stocks today the overall reaction was very positive the chinese stock markets rallied to a 1 1/2 year high the stock market regulator said this is a vote

down towards $44 a share for wti crude. down a third of a percent now.is up 1% still some supply headline pressure on crude as it sits at the bottom end of the range. the u.s. dollar has been on a weakening path that's against the euro. 113.6. it has been weakening against the yen. 112 against the yen. roughly flat against the pound sterling gold has been a bit stuck, i would argue. now at 12.52 up $5 an houns today pretty much range bound. >>> on the agenda, first on the earnings front monsanto, general mills and paychex reporting before the opening bell and the ecb central bank forum continues in portugal. there's a panel discussion with mario draghi, bank of england governor mark carney and bank of japan governor, kuroda become in the u.s., one piece of data to watch, may pending home sales. >>> healthcare has been a standout, up 15% year to date. will these gains hold? time for sectornomics. landon dowdy has more. >> the healthcare sector has been on a tear so far this year. second behind tech julia emanuel of ubs thinks tech will perform deeper into

a barrel of wti. this is bloomberg. ♪ vonnie: welcome to "bloomberg markets."e top stories from bloomberg around the world. steve mnuchin says the administration remains focused on getting a tax overhaul plan done. this year. later this afternoon, now included in the index. africa'struggle. we are pretty much at the halfway stage of the trading day . >> we got a pullback today. downg back

yvonne: they are saying 30 for wti.ns changing the house of saud as well, not really impacting. what else have we got coming on? haslinda amin is in bangkok. yvonne: she just did a great interview with the president of the stock exchange. rishaad: we have got the thai industry minister, talking to him about their infrastructure push. they have airports equipped to take 35 million visitors per year. they want to get that up to 90 million, so that will cost a lot of money. we will ask how they do it. we do have haslinda doing that. we will be taking a closer look at corporate governance in china. offformer boss being carted or having tea, i don't know. what is going on with on bank and corporate china. betty: always a hot topic. thank you so much. we will see you in a few moments. this is bloomberg. ♪ ♪ david: what propelled you to one want to join this company? brian: i always wanted to work for my dad. david: did he say you could start at the bottom and work your way up, or did he say you could start at number two? bria

the market on wti is headline here. wti tumbles more than 20% from the february peak. bear market on brent is the headline across the bloomberg over the last 22 hours. the cannot go up and that is one of the reasons we see wti retreating. that dance between opec and the u.s. producers is key to where the market goes from here. one commentator i spoke with was saying that actually, it is this rig count that matters. that is not yet having an impact. i also spoke to a guest on daybreak we said the u.s. producers are managing to make money at much lower levels are low.nterest rates a lot of fascinating conversations about what makes money and what does not in the oil market. guy: thank you so much, indeed, anna. a quick look at the markets right now. just to walk us around what is happening in europe. i have my mov screen set up as a percentage story. ex-dividend. poly metal, no clear theme. it might be a note out on some of these energy stocks, but also clearly what is happening with oil probably a factor as well. here are the gainers. again, i am not going to get a clea

has jumped this week had a nice percentage point move higher that sends it back above $45 s a barrel wtit 45.39 brent up a percent as for the u.s. dollar whacked this quarter, this month, this week and it's a story of euro strength 1.14 more than a one-year high there. euro having a strong quarter the dollar is weaker against the yen this morning watching for signs of risk aversion and the pound is weaker today. sitting below the key 1.30 level. let's see if gold prices are responding gold is off maybe taking its cue from that, about a tenth of percent. let's talk about yesterday's selloff. all of a sudden you get a vix spike, larry mcdonald is here, author of "bear traps report." you have been expecting this for a long time, it hasn't come, but now here we are. what is the primary driver >> it's a rotation from everybody long growth and now we're seeing a move back to value. you had central bankers around the world that have grown more -- pulling back in combination at least verbally. they have to the yet done so >> are they really >> the comments to me, when you're looking at mario dra

now declining 0.2% for wti. ♪ emily: i am emily chang, and this is "bloomberg technology."sing its biggest regulatory battle yet. receiving a record fine of from european union enforcers who say the search engine giant abused its dominance to muscle out smaller search rivals. shares in alphabet have declined in the past two sessions. for more on what is next for google, let's go to war tech editor. what are the next steps for google right now? alistair: it is all about damage control. the main lawyer at google said the company is considering appealing. they have not said they will appeal yet. the other steps they will take, they have 60 days to show the european competition sheets that they are working on a fix, to appease demands. after 90 days, they have to have that ready to go. that is not a long time to completely change their search engine. emily: this could have a much longer term impact on how alphabet and google do business. talk about the broader implications here. alistair: broadly speaking, google has never had to change the way it does its search engine for reg

the momentum today, up 0.3 for wti. 45.96. dollar up last year 0.4% not a huge movement today. third of a percent against the euro and the yen the pound is flat this morning slightly down. still not managing to rebound after a 1.7% fall off the back of that surprise result leading to no clear majority in the uk parliament gold prices down 0.7% last week. flat this morning at 1,271. >> this week the fed is front and center today the monthly federal budget statement, tomorrow the producer price index, and day one of the fed meeting. on wednesday, look for retail sales, cpi, the fed statement and the latest economic proje projections and janet yellen's news conference. thursday, impors prices, philly fed survey, and friday housing starts >>> to ongoing tensions in the middle east. it's been a week since several arab states cut ties with qatar, accusing the country of funneling money to terrorist groups how are those sanctions impacting the region's economy hadley gamble sat down one-on-one with qatar's finance minister to find out hi, hadley >> the finance minister in qatar saying

under $44 a barrel on wti 42.19. you can see we will trade this case on oversupply in. that is next. this is bloomberg. ♪ >> live from new york, and london, i am vonnie quinn. nejra: i am nejra cehic. this is bloomberg markets. we are looking at oil. time for futures in focus. oil dropping to a seven-month low as libyan output climbs to a highest levels in four years. joining us to discuss the latest move in crude is todd horwitz, chief strategist at trading. to the program. are we in panic setting? we are seeing drops of 3% in this session. mr. horowitz: good afternoon for you. i think we are in some sort of an overcrowded trade. i think you are now seeing too many people on the short side of the trade. we are going lower but you will probably see some sort of balance or. we continue to push lower without any chance of a bid and that is an indication that too many treasuries are trying to push it down based on too much supply, based on the opec manipulation, the whole deal doesn't spell good to begin with but now we are seeing them paying the price for it. at some poin

wti at 47.84. we will get a live report from dubai in just a couple minutes. >>> in london, as you know, on saturday, seven people were killed dozens were injured when three men drove a van into pedestrians on -- in this case, it was the london bridge -- then attacked people with knifes in a busy neighborhood. it's the third terror attack in the uk this year, comes days after manchester and just ahead of thursday's parliamentary election. let's get to wilfred frost in london good morning, will. >> reporter: good morning, joe. seven people dead, as attackers crossed london bridge and stabbing further individuals in borough market just behind me. we've learned this morning from the met police commissioner that the identity of all three attackers is now known. and that they have a domestic center of gravity, they were not from directly overseas. this is the third attack in the uk in the last 73 days. theresa may said that they are not directly linked. but that they were, quote, bound by a single evil

we will see how much lower wti crude can go. now, first word news.resident saysed he is glad about this month's interest rate hike and is willing to be patient over mixed economic data. however, he may be more skeptical about a more neutral rate of 3% in coming years. though inflation remains a concern, he says it is sufficient to take the slack out of the labor market. >> inflation has been sluggish in the united states. that is not all bad, by the way, for those of us who lived through the 1970's. getting to 2% inflation has been uneven and sluggish. >> treasury secretary stephen mnuchin says the u.s. government would only introduce ultralong bonds if there is a market for regular issuances. a group is assessing investor demand for debt, at 50 and 100 years. committee including jpmorgan, bank of america, and goldman sachs will also give feedback. >> it is something we are seriously considering. i do think it is a tool that the government should strongly consider. are reaching out through the borrowing committee and investors to see what the demand

yesterday in crude it seems like we're back down below 48 wti crude. is bouncing a little bit right there. over to other markets, take a look at the ten year. this has been a real focus of a lot of attention at about 2.15. this is the level it hit the day after the u.s. election and it actually shot from about 2% right up to 2.15. so it has spent some time. in case they think there's something with the yield curve. that's still holding steady around 2.15 and change at the ten year note. dollar has also been a little bit on the defensive. not major moves right now but definite lit not sitting far below the low of the dollar index. you see the japanese yen is strengthening under 1.10. the british pound ahead of the elections is pretty steady at around 1.29 and looking to gold, it's been hovering just below the $1300 mark as bitcoin plumbs the $3,000 level. you see it down just 0.15%. so far today 12.95. >>> australia just tied a major world economic record. new numbers show the australian economy grew for 103 straight quarters. that recession, that ties

wti 44.7 flat at this hour.en-year treasury note, we got that 25 basis point hike we saw the dollar and yield curve slip a bit ahead of the decision it recovered some ground afterwards the low on the ten-year was 2.10 now 2.14, but lower than the 2.2 level we've been around for the prior week. >>> shifting the discussion to stocks in asia china's central bank leaving rates unchanged despite the fed rate hike. back in march the peoples bank of china uped its overnight rate hours after the fed raised rates. this time not the case the shanghai closing flat. hang seng down 1.2%. the nikkei down 0.2%, this ahead of the bank of japan meeting tomorrow in europe, the swiss national bank announcing it is keeping interest rates unchanged the snb believes the swiss franc is significantly overvalued. swiss franc up 4.5% against the dollar year to date. the bank of england policy decision is due at 7:00 a.m. eastern. at the same time investors are digesting retail sales figures, rising 0.9%. that's short of estimates. let's

wti falls back below 45 brent crude up a third of a percent. 47. 47.47. index has been super weak soaring to 114 we're at the highest levels in over a year for the euro the dollar is firmer against the yen. and the pound continues to flex its muscles against the dollar 1.29 9 go gold prices under pressure down 0.2%. >>> back to the morning's top story. the fed clearing capital plans for 34 of america's biggest financial institutions the move prompting many of them to immediately announce new dividend increases and buyback announcements. citi doubling its quartly dividend to 32 cents a share and announcing a 15$15.6 billion stc buyback program. jpmorgan also announcing its biggest buyback ever at 19$19.4 billion. morgan stanley announcing plans to raise its dividends s by 25% huge moves here. billions being returned to bank share holders in the forms of dividends and buybacks >> the bigger take here according to the "journal" and gerard cassidy of rbc, this is the first time since the stress test began that all tirms gfirm healthy grades, they had enough b

wti under $43. the market stunned by that report saying crude inventories rose.il given up the biggest gains in a month. futures heading down by 12 points. trade, another 1% lower for wti. iser draghi and yellen, next corroded speaking today. we back above 112 territory. that should be good for stocks. we are seeing a bit of weakness when it comes to nikkei futures. we will see how things go. looking pretty mixed so far. a lot of news flow coming out of headlines playing into the markets and wall street overnight. betty: stocks following the most in six weeks, following washington, and of course that cyber attack that seems to be more severe than wannacry from last month. more on how investors have digested this. -- in light attack of analysts say that cyber risk is already built into the market. there were a lot of crosscurrents, economic reports, the concern about janet yellen remarks. let's get to some of the big movers. hugebet, google's parent, $2 billion fine because of the way they have structured their search engine. hightherapeutics raising against the t

i am looking at wti. now, let's talk more on the u.k. and the u.k. may, will produce a logistical agenda for her party. the plans will be read out implement by the queen but unusually, this year's queen's speech will cover a two-year program as stripped of some of the pageantry. anna edwards is close to westminster. what are we expecting or what are people hoping to hear about brexit? anna: it comes down to how much granularity we got in the speech. it is written by the governor and delivered by the queen as set out an agenda for two years because there is such a loving legislation they need to cover with leaving the european union. it could be on the legal matters, the great repeal bill will take eu law and put it in u.k. law and we will hear more. if we got and indications of how hard or soft the brexit will be at philip hammond things it seems softer for the logo transition. that is a debate here. -- for the longer transition. they say they may have to pare back manifesto ideals. tom: the northern ireland coalition with prime minister may, i guess

crude inventories and gasoline inventories, a little bit of reprieve for wti after that slide. it's back above $46 a barrel. $46.11. up almost 1%. brent, $48.49, up 1%, as well. nat gas pops at about .25%. >> energy stocks one about 2%, but not dragging the entire market back. >> things are different. the credit market is a little calmer. it feels like it's all about supply and about the u.s., right? >> exactly. so not a gross negative, necessarily. some data out of asia driving equities there, japan revised down so 1%. and china reporting stronger than expected trade data for may. exports are up 8.7% while imports grew 14.8%. you see equity markets in asia overnight, japan giving back just a little bit overnight. you see the yen, let's see -- >> it was stroker a little bit overmight. >> it was stronger. it's actually just moving minimally, just lightly firmer right now, just under 110. >> there was that headline that the boj was looking to change its communication around exit, but according to the folks overnight, didn't signal that anything is coming soon. so maybe a little b

wti trading down over 4.5%, slipping under $46 a barrel. stockpiles unexpectedly rose more than expected. prices have been on the rise this week as tensions in the middle east raise prices about oil production, leading to fairly muted trade on wall street. major indices have been sticking close to flatline although little bit of bounceback about .25%. investors keeping a close eye on political events in washington. european markets closed down ahead of a meeting from european central bank that is widely expected to cut his relation outlook on thursday. the u.k. general election also guiding trade on thursday. puerto rico is dealing with google austerity measures after declaring bankruptcy. no one is under any illusions about the tough times ahead. martin pollard has the story. reporter: next week, this university should once again be bustling with activity. classes are set to resume after students voted to in a 50 day strike over drastic funding cuts. it's all part of an effort to rescue the island from the bankruptcy it declared last month

wti just closing in a bear market, crude down 21% from its february peak.lly ending the session down 2.2%. the data tomorrow will be critical. the bti trading just below $43 a barrel. $43ti trading just below a barrel. ♪ julia: this is "bloomberg markets." scarlet: let's head to julie hyman for today's sectors by to report. -- sectors spider report. the consumer discretionary etf is down 1.2%. retail down 1.9%. once again, we can blame this on amazon. amazon is part of both of these etf's. amazon today announcing it is rolling out something called amazon wardrobe. we have a lot of different online retailers that will send you a box of stuff that you then figure out what you want to keep and send back. amazon will let you try on stuff before you actually purchase it. many other retailers are falling. specifically,ers just as we saw the broad decline in groceries after they announced they were buying whole foods. jcpenney, chicos come all declining. they have their own challenges in the background. the news that amazon is getting even more into these companie

wti lower by 2%.ecline of 80 cents. $43.40 if you want it delivered in july. >>> coming up, judy marks joins us on the president's job push and insensitives f s incentivc apprenticeships. and a look at yesterday's winners and losers are you ok? what happened? dad kinda walked into my swing. huh? don't you mean dad kind of ruined our hawaii fund? i thud go to the thothpital. there goes the airfair. i don't think health insurance will cover all... of that. buth my fathe! without that cash from - aflac! - we might have to choose between hawaii or your face. hawaii! what? haha...hawaii! you might have less coverage than you think. visit aflac.com and keep your lifestyle healthy. aflac! ♪ >>> good morning welcome back to "squawk box. let's look at the u.s. equity futures at this hour things are flat, but you have to remember we were looking at major gains for the market yesterday. both the dow and s&p 500 at new highs. the nasdaq saw the best day it has seen back to november of last year. this morning thin

the rebound has been unconvincing in oil and wti crude, not so -- >> just holding right there. >> 4572. that tended to not last. the rally we get in the 5:00 a.m. in the oil prices. brent crude oil below $48. $47.93. here is the currency board. this is the -- this is never dull. this is always the place where you see the political shocks manifest. the british pound is the one you want to watch. almost 2% move lower. biggest move we have seen for the pound since back in october. it only takes us back to levels since mid-april. >> within the band of a lot of the gaming out of the scenarios, that wolf has been talking about, a hung parliament was something expected to -- something like this move in the pound. >> absolutely. right. and interestingly, you're seeing the pound weaken in the footse 100. the dollar is stronger against the yen. that bodes well for risk appetite. not like you're seeing a massive flight from safety to quality that we see for instance in more global surprises like brexit, like the original reaction to president trump's surprise presidency, that overnight -- >> mark

as scarlet showed earlier, you can see the wti short positioning has increased dramatically over the. these are basically net neutral positions. that sets the stage at some point for the later part of the start to the for a upside with the continuing of calls for places in q3. what creates this shift in sentiment that you are talking about? we had an analyst last week who said that sentiment hasn't been this bad for 20 or 30 years. can any amount of good news shift that quickly? or are you suggesting that something will give us the both.ent that we need? there are fundamental drivers that keep us in a more to position. we think it's a weaker outlook in q4 and q1, but in terms of the dynamic of the second half of the year, the market will be driving in cory's and if there is anything that drives prices it's where those inventories are going. fundamentally the positioning is arguably stretched in one way. the positioning is arguably stretched in onei wantg lookingolumn about opec bewildered. they seem to have lost touch with reality. minister saying that higher prices are needed to pay

specifically around oil. 42.93 on wti.it, but we are still below the $43 a barrel mark. the supply picture very much in focus for us. .25%, upprice up by for a third day, climbing from a one-month low. let's have a look at where we are in the rest of the risk radar. futures, i mentioned we had a tepid day, up by .1% and on u.s. trade. we heard from one jet -- fed speaker, james bullard speaking with "the washington post or coke unnecessarily aggressive. getting news out of irish allied bank. looking to see where this would price. we are getting this ipo, and iconic ipo, pricing at 4.40 euros per share. that is done line across the bloomberg right now. some analysis in the last hour about how significant this is, taking this bank from public ownership at the height of the financial crisis back to the market many years after the crisis. turning a page in irish financial history. let's get a first word news with juliette saly. in the u.s., senate republican leaders have issued a health care proposal aimed at winning over vote

i have the chart of wti over the last four years. is where we are this year and this is the previous three years. there has been a pattern but in late 2014 we saw crude oil tumble and since then the pattern has been broken. what does the demand picture look like? everyone talks about supply all the time and how it drives so much of the pricing under pressure, but the demand is not quite picked up the way it has supposed to, has it? >> at what we have seen in the u.s. is very sluggish demand. people have been looking for years to outside places like china where they thought this -- extra shale oil would end up. so much of what's happening is the focus on the developed markets and in the u.s. the sluggishness year has really been hindering the ability to soak up the excess oil. >> people are losing confidence in what opec is saying because .he data is not backing it up we were talking about this habit of saying that we are still in but cautiousness is increasing. are we potentially heading to a new lower range of this point? is it too

i see we have nearby wti at near $45.ut that's diagnose to be hard-pressed to push beyond that much at all. >> it's energy week in washington and the president is expected to make a speech at the department of energy storm with the focus expected to be on exports of crude ago well as crude products i'm wondering what you think the impact would be on this market >> first of all, isn't it amazing we are now talking about the united states being an exporter of crude oil, being an exporter of in when i was in undergradual -- dennis, i'm sorry to interrupt we're going to break in to show some video of the president welcoming the world champion chicago cubs let's listen to his remarks, also about health care well, i guess that was -- that was a nice little event. we missed the moment where he was asked a question about health care. obviously his answer was quick and short. back to dennis and let him finish his thought what do you want to do, folks? let's go to the tease. thank you, dennis. we're sorry we had to interrupt. >>> w

have a much lower break even price point around $50 a barrel, the eia also lowered its forecast for wtirent prices for 2018 by 2.5%. over at sears rumors are they are planning to close additional 66 sears and kmart stores as they continue to seek return to profitability, the news came out on tuesday afternoon. sears has already planned to close 180, they announced earlier so this comes on top of that. and finally over to apple launching their first original online tv show, it will feature celebrities such as jessica alba and gwyneth paltrow to design new apps and called planet of the apps. back to you. >> wow. thank you very much. gigi, they have honest and fitting that we'll see this lifestyle app. >> they know what they are doing. it will be good. straight ahead, a new class of astronauts welcomed to nasa in an out-of-this-world way. a cringe worthy scene on the red carpet. what is trending this morning. you'll want to watch this next up on "early today." people do. i never joined in. that wasn't fair to any of us. i was covered. i tried lots of things over the years. but i didn't giv

wti up 42 cents. back above $46 at $46.14. >> let get you caught up on the big top stories of the day. polls are now officially open for the uk election. the ruling conservative party led by prime minister theresa may looking to increase 17-seat majority that it currently holds in the house of commons. the latest poll says the labor party is unlikely to win a majority, but could force a hung parliament where neither side holds more than half the seats. we're going to get a live report from london in just a couple of minutes where will is handinging out. in europe, the ecb will announce its latest rate decision. the central bank is expected to maintain its $2.6 trillion bond buying program and subzero interest rates. inflation has remained below ecb targets and wage growth has been sluggish despite a strong run in a decade. washington watch, we are here now less than four hours away from what is being described as the main event, former head of the fbi joem james comey director's testimony on capitol h

wti around 6.7 of 1% after saudi arabia, and egypt cut it's tie with qatar.y're concerned about their own national security and the qatar support for the muslim brotherhood and implicit support for iran as well and that's why they say they are doing this. of course qatar hit back saying totally unwarranted as well. elsewhere we've had horrific terror attacks in london over the weekend. the prime minister said that overall her strategy is greater international regulation of the internet. well facebook of course is a huge part of that internet. they want to create a hostile environment for terrorists on their social media site and you mention wonder woman. the latest wonder woman doing great and indeed for time warner, $100 million in the box office in usa and canada over the weekend. a big hit for time warner. back to you. >> pretty impressive. thank you. coming up, john oliver's tribute to the spirit of britain. plus one teen's love for pizza gets her an ivy league acceptance letter. we'll bring you her story next. as unfathomable as the universe. a world tha

thanks cutting forecasts for wti. -- banks cutting forecasts for wti.ou look at iron ore, is this the best of look at the strength or weakness of china? >> that is right. in a couple weeks, we are over $60 a ton again. that is driven by the amount of chinese steel mills. they are turning about a decent amount and restocking inventories. if we looka, data -- at economic data, we have -- if we look at economic data, we have stronger pmi. francine: what is the longer question you have? it is the strength of china? >> that is always a concern. or, there is an issue around a supply at low cost supply. we have a new mine started in brazil recently that is turning out low-cost iron ore. hp improve investment in more capacity in australia and the last week. there structural oversupply is in the market. low commodity prices, is that a first order condition for better economic growth or is it a second order condition that mucks up investment? we saw it in the past when lower oil prices hurt the u.s. economy. it has a positive effect, but a negative effect on inve

is it crude oil prices can get much above wti, past $50 a barrel again? i suspect probably not. >> reporter: also in 2008, energy companies were about 15% of the s&p. now they're about 6%. so the earnings impact is less than it was before. the general consensus now that crude can still fall, but it won't take the market down with it. for "nightly business report," i'm jackie de-angeles. >>> still ahead, why bmw's biggest plant in the world is about to get a little bit bigger. >> reporter: bmw is expanding in south carolina. how many jobs are being added? how much money is being pumped into this plant? and what does it mean for bmw in the united states? i'm phil lebeau. that story coming up on "nightly business report." >>> shares of arroni came under pressure today after the manufacturer said it will stop selling a type of panel suspected to have contributed to the spread of that deadly fire through a london apartment building a few weeks ago. arconic, created by alcoa's separation into two companies, saw its stock fall about 6%. morgan brennan has more o

brent and wti gaining ground. keep an eye onmetals.for rio tinto's coal assets. executives are thinking about matching the bid or improving the bid from glencore. we do have that to watch out for. when it comes to treasury yields, down in the last session. we are seeing yields falling across asia markets in early trade. >> i will pick it up from here. making a run after entering the bear market. is that a signal for where oil is going? >> it is three consecutive sessions of gains. noteis interesting to about oil is that since the start of the year, it has been diverting from equity markets. a few years back, you had energy and oil prices leading declines or gains in equity markets. that does not seem to be happening. seeing the msci world at the highest level on record, equity markets across the world. we are seeing msci emerging markets trailing that, but still that divergence with oil seems to be growing, especially this year. >> thank you. let's get to first word news with rainy inocencio. narendra modi visiting the white house lett

look at the impacted wound up having on wti. worst when we have seen since the end of december. goldman sachs had an interesting report out yesterday -- the reason why the market got oil so wrong. i have seen downgrades in price estimates from bank of america citigroup, socgen, wobbly right now. stewart wallace joins us to discuss -- walk me through the goldman note and talk about the biggest reason why analysts in the market got oil so wrong so far this year. stewart wallace: i don't think there is a single reason. it is very nice they are saying we got it wrong. they are not the only ones to do that. this is a pretty sorted groups of -- group of banks that said we got it wrong. what were the main factors -- two big ones that bring -- spring to mind, libya and nigeria. these are cayenne it -- chaotic countries. it is hard to tell what will happen next. in the thing, shall -- the market has not adjusted to the speed with which shall could come back. under normal circumstances, you 10-yearr a three to leadtime. fivehale it is thr

he's very young. 31 wti down another 12 cents today. 43.39. lead story in the "wall street journal" today is about how oil prices returned to the bear market despite the best efforts of saudi arabia and opec. >>> uber's ceo travis kalanick resigning after share holders staged a revote. bill gurley of benchmark capital tweeting there won't be many pages in the travis kalanick, very few entrepreneurs had a lasting impact on the world. gurley was reportedly one of the major investors that demanded that kalanick resign joining us is a partner from lead edge capital, the firm invested in uber at a $40 billion valuation. brian, thank you for joining us. >> sure. >> was this the only path forward for uber in your view? >> no. look, the board has an obligation to serve all stakeholders to serve as checks and balances to make sure the company is run properly you have a board here incredibly experienced who made the determination that the right thing to do to move forwardis have new leadership. that's fine. there's no problem with that i think in our mi

time for our features an in focus segment could mark: wti trading little changed on the day.ed seifried joins us. what is going on with oil? 50-60ne was telling us dollars. why are we below $50? opecnobody believes this cut stands. a bit of skepticism. plus, the u.s. is coming out strong with production. the margins are good across the board. the products are strong, we've tightened a bit, but profit margins are very good there. overall, it is just a negative bear market. we failed on the announcement of the opec announcement, we failed at key resistance of that $52 mark. that was a key area to fail. we've been responding to that. we were down fairly sharply yesterday. we are waiting and seeing what the eia has to say later today. mark:we were down fairly sharply what takes us down to $40? some say $40 is a possibility. what could take us down there again? ted: from a technical perspective from in the short-term, $46.50 is our target. without any real news coming into factor that. if the numbers aren't quite bullish today, we could get that quickly. in the longer term, i'm th

. >> wti at 44 bucks that's a lot -- a lot of that is because u.s.ringing on supply, they've managed to become even more profitable, and drop the cost per barrel, that they drill. what do you think about wti at 44 lower than where you thought it was going to be. >> it is oil would come close to $60 by year end, and we were knocking on the door. but you know, it -- we're in a period of adjustment let's look at what caused that what caused that was opec countries decide e ed to drown producers. that didn't happen they overproduced by 2 million barrels a day for two years. we've got a huge overhanging of inventory that has to be worked off. that's what caused this. it wasn't u.s. production. okay that was -- there was a piece of it they saw what we could do here and it scared them so they decided to cut, and correct the market, but you know, we're in a period of adjustment they don't know how much to cut, and so it may take us a little bit until we get it right. but they need to correct this market, and they're trying to do that it's in their best inter

advise of what wti has done, you can see that every wednesday, when the inventory data comes out, oilke a significantly -- wednesday is the oil markets these very time of the week. what are the chances that we break out of this downward spiral in price? so long as investors and traders seem to be squarely focused on this u.s. inventory and production story? >> it is a great point. a lot of the banks and analysts are coming around to your way of thinking. for the longest time, opec and oil producers, they benefited on this lack of transparency in the oil market. nobody knows exactly what global production, what global demand, where supplies are everywhere in the world. is the mosthe u.s. transparent market in the world as far as data. fastest growing production, it is the last place in the world that supplies are going to draw down. saudi arabia says that everywhere else in the world except for the u.s. is -- crew supplies are drawing down. people want to see it in the only transparent market available and it is not happening in the u.s.. it is a catch-22, opec used to do -- benefit fr

sometimes you see wti crude, it is in direct inverse correlation with how much production has risen in.s. and how much export as are presented by the yellow line. so one big factor is the u.s. no matter what opec does, the effect could be? vivek: in terms of the u.s. story, absolutely. the longer-term story has been u.s. shale. surprising how much supply they have added as opec and non-opec countries with belonged -- beyond $50 a barrel. if these countries are targeting price but the larger cost of u.s. shale is lower than that. you are defeating more shared. how can that strategy be sustainable? we have doubts. with the u.s. story, we are looking for $40 or $45 a barrel. betty: i got your point. i want to move on quickly to iron ore. you actually see a short-term rebound in iron ore prices, even though we have seen inventories in china hitting yet another record, houses: for another price. calling fore another price. vivek: mid 2018, prices falling to $45. the reason we are optimistic in the short run is the opening of a steel mill. the steel sector is very keen to the story. they are

bull it's now above $10 and if it's going to stay above $10 you have to say, oh, well i missed that wti crude, half a horrendous couple of weeks, our analyst who so nailed that crude will go $10 higher, could be right that crude has bottomed out there's lower inventories and it has become a destroyer of everything it touches these days the possibilities for an actual rally higher have finally increased. here's the bottom line, while we still collectively real from the most disruptive deal in ages, amazon merging with whole foods, let's focus on a group of companies that could decide the direction of the market next week adobe and accensure are trading wildly that's where you could get some discounts in the weeks ahead >>> coach is up 30% already this year, with 2 acquisition, is a turn around in the bag and a major merger, because remember it is merger friday and there's action in this market that's driving old school observers. is there action in your portfolio? i'll reveal it just ahead. so stick with cramer [vo] when it comes to investing, looking from a fresh perspective can make al

we are seeing now of the price of wtis is much different than what we saw a year and a half ago.this could be something worth worrying about >> i don't think the credit market is reflecting the danger. a year and a half ago, we came up a period of wti crude the market market is not close to reflecting that thursday, we got now and we are rerunning our number 2018. the averaging company is over three times. that's going to be uncomfortable, too >> a few days ago we did a story here in the united states depending on where you are in the country and there is a spread of 50 to 65 bucks depending as opposed to the middle east where some barrel out of the ground of 5 bucks the u.s. number, it is gone down, right? to what level are we now at the even level of the united states? >> great question and it is an important one, a big part of our thesis why we think $40 is right. >> we came out two weeks ago, it is $40 a barrel is the break even price it is very interesting and i had a lot of client feedback today from this report of two big energy conferences going on and the feedback from i

crude fluctuating ahead of the release and wti fell into the bear market.t to mention the trade representative prepared comments that said as soon as august 17. ♪ vonnie: live -- nejra: live from bloomberg world had go to new york and london, i am nejra cehic. vonnie: i am vonnie quinn. critical numbers especially as oil sells off this month, dipping into a bear market. we've got julie hyman with us. julie: we might have a drawdown in oil but not gasoline. 2.4 5 million barrels dropped in crude as well as gasoline third the fact that there is -- there. fuel, actually larger than estimated, 1.1 million barrels. on balance, it seems like a altra port. gains just before we came out. now it is more than 1% higher here. above $44 per barrel at least at the moment. the two headliners that are probably the most important is a drop down in crude oil at almost two -- barrels. even here at the start of the summer driving season. thank you p or do we will keep an eye on the price of crude. king solomon has removed his nephew is conference and named his 31-year-old son

the reason it's so interesting right now, if you look at wti, down around 14% year to date.heou look at the price of etf's, individual stocks of these high-yield energy companies, they are down about 25%. high-yield bonds are up around two or 3% on the year. so the market is telling you something. the question is what is the market telling you? debt is overvalued, equity is undervalued, or perhaps that debt investors expect a higher oil price and equity investors expect lower oil prices, or maybe it is an earnings story. we are assessing that. we have certainly added to a couple of shorts in the energy space. vonnie: i know a lot of infrastructure is in investment grade. are you finding any offshore plays here given the president propagate histo infrastructure ideas? bruce: there will be some terrific investments to be made in the coming years because this country is short, as great as we are and as productive we are, we are short probably three chilean in infrastructure. the president throws out a number of a one trillion need that the government should spend. that is proba

we are back about $45 per barrel, up 1% on crude, but it is the bear market in wti and brent that haseen dominating all markets for the past couple of days. the stoxx 600 is weaker on the third day, heading for the worst three-day drop in a month. in terms of the worst performers earlier it was the energy stocks. they have been the worst performing this year, financials performing down 8/10 of 1%, utilities falling behind. heading higher, up 1.5%. what's interesting is comparing oil against metals prices. this chart is normalized in the red line there, where you can see the normalization, showing that you could ask whether the aboutin oil is also concerns in an economic slump, but metals prices would suggest not. you are seeing a lot of gains in industrial metals, with losses for crude. i also wanted to show ,ou their norwegian kroger central banks keeping ranks unchanged, actually scrapping its bias, as it said, oil prices over. finally, just showing you the guilt year builds. we have seen it yield lower, down three basis points, exactly 1% there, dipping below that earlier, vonnie.

that there seeing is technical levels we are going through, that combination yesterday, closing in on wtilso it is not just the oil prices but the structure of the oil market worse than it was before opec cuts. we are back to square one. nejra: so alex has brought us a desk prop but you have a chart, g #btv 299 which perhaps tells a different story? >> it is pretty interesting because that is a great chart that speaks to the oversupplied situation for oil but traders could be looking for something different. look at this chart. it comes to us from commodity strategist at bloomberg michael malone. it shows us that oil is a range. the 33 day moving average. mike says that is neither too short or too long. the green line is 10% below that and the orange line above that, and we see that over the last year or so that oil is really staying in that moving envelope of range, really suggesting that we could see oil continue to stay within that range. perhaps traders are looking to make a profit and this is a great way if they do. it is pretty reliable over the near-term. vonnie: abigail, can i ask

we saw a selloff that's moderated >>> oil is higher for the fourthization fourth session in a row wti a barrel. up 0.8%. brent is up almost a full percent. 46.25. gold is higher with the back of the weaker u.s. dollar it's up 0.4% that dollar board, it is weaker against the euro on the back of draghi comments. weaker against the yen as well >> mario draghi making some market moving headlines at the ecb forum in portugal. let's get straight to annette with the latest. >> thank you very much yes. we just had the draghi speech in portugal it was astonishing about how optimistic he is about the economy and about reflationary pressure in the eurozone that's the key sentence here, here not that worried about inflation. which is low in the eurozone, and one of the reasons why the ecb is reinstating and saying they need the ultra loose monetary policy stance in order to support inflation but take a listen to what mario draghi, the president of the european central bank said about where we stand, when it comes to economic growth and inflation. >> all the signs now point to a strengthening and