outstanding quarter, up 15% for the year wti is up around 11% or 12%.atural gas prices, as we were discussing, have spiked significantly during this cold weather snap 2.964. quick look at metals prices, copper up over 40% or so 16 straight sessions of gains, but down half a percent this morning. 3,290. or 3.29. gold up 12 % for the year. 1,298. dollar board slipped this week back to lows not seen since november the early recovery in the dollar that we saw in the early part of december, slipping away during the course of this week and late last week. bitcoin prices around the $14,000 mark we got close to 20,000 earlier in the month and on december 22nd hit a low below this level. so sort of stabilized over the course of the last week. >>> sticking with bitcoin, the cryptocurrency having an incredible run, up more than 1400%. but will the rally hold in 2018? here's seema mody with your bitcoin playbook >> reporter: with cryptocurrencies capturing the attention of investors from wall street to main street, here's what to watch for as they go more mainstrea

jumped significantly yesterday still up there near that 60 mark for wti. all right.et's have a look at markets around the rest of the world hong kong was closed yesterday for the boxing day holiday most other markets open yesterday. everything open today. shanghai down a percent or so, but elsewhere slight gains for hong kong and japan. european was mixed yesterday for the christmas holiday. in general we're looking at strong gains for the month germany slightly higher. as you can see, low volumes and flat let's have a look at the broader markets. treasuries have climbed in the week i've been off 10-year treasury note up 2.5% than it was -- takes so long to cross up into 2.4% now to 2.47% the passage of that tax bill supporting a rise higher in yields didn't really support a rise in the dollar last week similar slipped during the course of last week. this morning the euro and the pound both about a quarter of a percent higher the dollar is weaker this morning as well. let's have a look at gold. gold is probably in the mid-1200s. when it's coming, i haven't checked it

wti crude the vti falling.arkets in dubai and abu dhabi were close, but saudi arabia is index up off of the rally and oil prices last week. that was the biggest gain for the tadawul in two months. 0.5%, bank up stocks leading gains after international reserves in foreign currency liquidity improved in october despite the blockade. to debra for the first word headlines. >> it is crunch time for brexit talks. debra: theresa may will have lunch with jean-claude juncker later on the day the eu has set is the final deadline for concessions if she wants talks to move on to trade by year end. senior british official has told bloomberg that the role of the european court of justice in enforcing the rights of citizens has emerged as the greatest obstacle and negotiations. the confederation of british industry says the u.k. economies lukewarm growth will continue for some time and may even weaken in coming years. 1.5%bi sees expansion of and 1.3% in 2019, the worst annual performance since 2009 when the economy shrank. i

wti slipping this morning a bit, down 0.4%, $57.1 the price of wti. the dollar board rallied last week, the index up over the week no individual single-day moves, but by the end of the week, nicely higher, which is worth noting given that equities and yields didn't work in the same vain today the dollar is a bit weaker against the euro, but not too much happening with the woupoun and the yen. gold prices up about 0.3% or so today. they did fall noticeably last week, down some 2.5% the price at 1,252. >>> the week ahead on wall street is full of economic data. tomorrow look for the november producer price index the fed also kicks off a two-day meeting. on wednesday we'll get cpi as well as that fed decision, where they are largely expected to hike rates again latest economic forecast, also janet yellen's news conference will be on wednesday on thursday, retail sales and import prices, and then friday we've got industrial production. on the earnings front this week, there are three notable names reporting results, all on thursday look for numbers from a

wti higher by about 0.6% at $57.38, brent higher by just over 0.1% at $63.39.-date, we know wti is down about 0.5% going into today's session, brent down less than that, down about 0.1% so we'll see what happens. they will be on pace for the third negative week in a row, if, indeed, we are still lower to end the week. take a look at what's going on with the price of gold we talked a lot about bitcoin. gold has sort of lost some of the focus, but we should pay attention to it. it is higher here today and actually saw the biggest gain in three weeks yesterday. so, something of note there, up about 0.7% week to date. take a look at the dollar. dollar a little bit weaker that guided some of the asian trade overnight as the dollar was weaker with respect to the yen. you can see that the euro is stronger here against the u.s. dollar the dollar is weaker against the yen and the pound is weaker against the dollar >>> lastly, let's check on bitcoin. i mentioned it earlier we didn't show you the price we'lllook at futures for the cboe, higher by more than 9.5%, and over

wti is upsay. we are washing for shares of toshiba. rating at positive. -- i of the big movers mentioned these korean engineering firms -- really lifting the index in south korea. a lot of movers because of interest from westfield. up and your biggest pop down. aussie dollar, two charts i want to bring up. 50 day crossing below. a downside momentum coming in that market. one story is this -- you're getting a lot of negative surprises when it comes to data 47.ustralia, this is your city economic surprise index for australia. here is your currency at the moment. forecastour median from the analysts we have hold so far. something has to give at some point. i am guessing we will get an adjustment to lower incomes, especially if we see more downside when it comes to the aussie currency. yvonne: thank you so much david. let's talk some politics. alabama has not sent a democratic senator to washington in a generation. between roy moore and doug jones, it is anyone's race. we are live from montgomery, alabama. we are about to get the results i

lower today, wti crude down 0.4% i would point out wti up nearly 2% this week we'll see how things shape friday, if that changes the weekly performance of oil. turning to gold, yesterday gold saw a gain of 0.8% it's up also about 1.5% so far this week. the gains continue, up another dollar at 1,271 we are seeing euro weakness and dollar strength on the heels of spanish catalonia election results. last trade for euro, 1.1852. the dollar/yen, 113.37 dollar strength there. cable, pound sterling, 1.3378, the last trade there >>> bitcoin also, we mentioned it before, losing a quarter of its value overnight. down about 37% if you look at the futures market from their peak to trough bitcoin coinbase prices off about 7% 14,450 the last trade there. >> coin base says it resolved an incident that caused all buy and sell orders to be disabled that was a concern or a story we were watching yesterday when bitcoin was moving to the down side. switching to political news, lawmakers striking a last-minute deal to avert a government shutdown the house and senate passing a temporary spending measure that

today at 57.3 for wti.ollar board for you which was markedly higher at the start of the day yesterday as were equities, sold off a bit as did equities ended up 0.2% for the day as a whole. today mixed picture. slightly stronger against the dollar and the yen markedly stronger against the pound which had a seesaw session yesterday, as courtney mentioned. as we look at the intraday from yesterday, it jumped early yesterday on thoughts they might have reached a settlement on the irish border and citizens rights, about two hours later, the dup in northern ireland, the government partners for the conservatives decided they didn't support the deal so we sold off again and continued that selloff again today bitcoin, just to round things up, what's the latest on the price? we are at 11,620 >> there's a pair of economic reports on the wall street agenda the october trade deficit is out at 8:30 a.m. eastern time followed by the ism manufacturing index. auto zone and hg supply report before the opening bell. dave & bu

wti again resuming its upward trend after the christmas holiday, not to mention data showing the rigady for a second week. the broader market, we are ,eeing the dow not doing much round 24,756 what s&p 500 a little bit of down. energy leading the gains but the industrials are what is gaining ground. the dollar unchanged at the moment and run member of many major markets shut flows related to position and -- these japanese yen unchanged but pretty weak. 113.21. coming up, analysts cut iphone shipment forecast over lackluster demand. more on apple not so merry christmas. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. laura: this is bloomberg markets. i am laura keller. shery: i am shery ahn. apple -- and

a lot of strength for dubya ti -- wti, back above $50 a barrel.seeing the impact of record levels of exports. we still have strong refinery demand going into the end of the year. if you talk to most analysts, they are fairly skeptical about how much upside there is. certainly in the first half of 2018. as the saudi oil minister says, this is a season of the year when we are expecting to see stock builds, opec expecting to see less -- it's not really seeing a period of price strength. mark: what are the big things for you in 2018 when it comes to the oil market? >> rebalancing. does the opec deal do its work? mark: doesn't do it by the end of the year? >> it depends on who's outlook you take. opec says yes. the international agency says no. goldman says it could happen sooner than we expect. others say it won't happen in 2018. thing two, u.s. shale production, u.s. production generally. how quickly will that growth? , thow much of the opec discipline will be offset? mark: a lot to think about in 2018. thinkinge will be about that in 20 team. does 2

vonnie: once the correlation of a barrel of wti?s is one of the interesting market reactions we've seen, the spread between york oil prices and london oil prices have widened to seven dollars a barrel, the widest since 2015. this is having an impact on the u.k. market for oil and not in new york. it is specific to the north sea. vonnie: once this crack gets fixed, will it sharply come back down? will: it's hard to say. it comes against a background of a strong market for brent in particular. demand is good from asian likemers who buy grades brent. was positivesion for investors. there is a list background against all of this. we may get some selloff. it's not the only thing in the market right now. mark: thank you for joining us on this extraordinary 24 hours in the energy market. coming up, it is battle of the short -- charts. we will find up next. this is bloomberg. ♪ vonnie: it is time now for our a battle of the charts. we look at some of the most compelling charts of the day and what they may mean for investors. you can always

wti holding on to $58. shanghai looking good, but there has been a switch out of metals, including aluminum. showing space is something spunky in the korean market. the yield on the 2-year note up 13.8 basis points. we saw that huge fluctuation last week in the five-year and 10 year notes in korea as well. region iss around the a switch out of tech players, but they did well yesterday. tie one's index was supported by ai. likes of hon h a switch out of some other insurance stocks in hong kong doing well over the past year. to the upside, samsung electronics is supported, even though we are we seeing weakness in seoul, korea, and bhp billiton in sydney up to present there. we can't go without talking the year,word of bitcoin. this is an interesting function for bloomberg subscribers. it shows you essentially the movement tween the cash and the cboe contracts. the premium to lock in the price next month is now below $1000. it is a topic that continues to divide analysts. yesterday analyst's still reiterating

kenny, popping oil today with that pipeline in libya blowing up we hit 60 bucks for a time on wti, firstime in 2 1/2 years here there was a time when the equity market overall would have responded to that but that's not the case now. >> well, it doesn't seem to be the case it might be partly because of where we are in the year, right, just with two or three days left in the trading year. but look, that popping oil not because of that pipeline burst in liba, but also the saudis came out and they're talking oil up what i don't get about the said yahoo thi saudi thing is they're talking about oil eight years from here, so i'm not sure how that plays into the picture, but one way or the other, you're right, i think we see a little pop in oil but then again, once into the new year, the oil backs up again, the producers are producing fine here and as oil gets to this price, they'll produce even more. >> and sort of on that note, rick, while it's notoriously hard to figure out what's going on with the u.s. dollar, the "journal" has a big article today saying repatriation's going to boost it, bu

so that might put a cap on any kind of rally for wti.ejra: and despite the risks we have talked about, volatility has been low with the oil price. one story called anejra: volatiy vacuum. analysts are extending that to continue in 2018? yes, because opec and saudi arabia are capping it and shale is setting a floor. the band might be wide, and you might see a spike into the 70's, but that is a short-lived spike. as i have been talking about, the marginal barrels of oil -- how much it costs to get that barrel out of the ground. goldman sachs think that will have to be the base price for oil for the entire world. so that volatility might not be good for the hedge fund managers and. -- managers. 1.12 billion feet drawn out. but natural gas futures, this is the chart, still below that three dollar mark. hiking a little bit today. alix: there are a couple stories going on here. 85 inventories are now billion cubic feet below the five-year average. on an inventory level, it is getting tight. this is showing you what is happening by region. that

brent, which is what most international oil is priced in, not wti, was up overnight.lly it was priced into the market. but as you say, the nine—month extension has already been priced into the market. what could move oil prices from current levels 7 could move oil prices from current levels? i think a very large expansion in us production, which may be driven by the pricing that we are seeing now. also geopolitical tensions. you mentioned saudi arabia and iran. there are any number of permutations of that among the opec members. also i think the direction of the us dollar going into 2017 — 2018 may have a part to play as well. and you mentioned about us oil production, and it is currently soaring, fast approaching 10 million barrels per day. and this is a concern for 0pec. barrels per day. and this is a concern for opec. yes, and i think this is part of the reason they don't want prices to climb too much further from here, don't want prices to climb too much furtherfrom here, because that would encourage more us production and probably weigh on declines among the opec

wti, 5 p gold prices are flat today 1266 is the price of gold.ar board, which slipped a bit yesterday, not seeing much happening today. the euro did just turn around by 0.3% it was down a little up a little after we got the germanñ ifo business sentiment data, which was belowok expect+ts but very high. last month a record all-time high that boosted the euro fractionally the dollar markets, bitcoin to round things off, standing at 19,000 depending on which futures market you look at flat roughly speaking for the day. >> the ceo of one surging cryptocurrency stock is sounding the alarm on the crypt o craze. >> that's right. even the ceo of a cryptocurrency play does not think value is justified. shares of longfin have jumped 1,240% in two days after agreeing to buy another cryptocurrency zedo. they dropped 18% following comments that tceo and the te chairman said on fast money. he said longfin's $3 billion plus market cap is not a reality. >> it's not justified.cmcf1 o i'm developing a goodw31 count. this market cap is not justified. if you

today, wti 56.6.old prices, if we check in on those, standing at the moment -- no dollar first for you. the dollar interesting yesterday, did slip significantly not just when the decision was announced but continued to slip throughout janet yellen's news conference and ended down about 0.7%. today, the dollar board coming for you -- nope. dollar board we have the dollar sort of flat against the euro ahead of an ecb decision recovering a bit against the yen. pound is rallying after a vote in parliament yesterday that gave a possibility of a slightly softer brexit deal bitcoin to round things off, which has been around 17,000 mark, stays there. fractionally higher today. >>> the federal reserve raising rates another quarter point yesterday and sticking with the forecast of three more for next year let's bring in zack carabel head of global strategy at investnet and a cnbc contributor good morning >> good morning. >> let's start with the fed side of things. the main takeaway for you is what that we're st

look for the wti to have more of a rubber band snap that. am looking for this technically to make a push to new highs again. the trend is still strong and the dollar continues to decline, so that could be a positive as well. nejra: bitcoin gaining again today as volatility has come down a bit since the future started trading on the cboe. when we get the futures start on the cme, will we see that premium narrow a bit between the futures and the stock price? alan: that is one of the functions of the futures market, is that you can offset what is happening in cash, and hedge and speculate. that is an advantage. the number one advantage is the price discovery process. we want to know where the market is trading at any time. that is what the futures markets allow you to see, as opposed to bitcoin, which is on multiple exchanges at totally different prices. not only the price discovery, the transparency, but what i am looking for is the ability to use these markets any time, day or night. but you are shifting. you are taking that counterparty risk

a decent start to the week, following a tricky set of performances last week 5 8.4 is the price of wtirude. the dollar board was flat yesterday. fractionally higher which did give it a sixth positive session in a row, but only slightly higher today not too much happening again. you can see it's a bit weaker by 0.1% against the euro and the yen. bitcoin prices for you, keeping a close eye on those had a great first day post the formal introduction on the futures market today giving up a bit of ground. 3.3% that's a small move when it comes to bitcoin the price of the future, 79.30 >>> listening to what bitcoin.com ceo roger ver said yesterday on "fast money. >> i'm concerned about bitcoin, because people were saying they wanted high fees and unreliable transactions if that's the case, people won't use it >> joining us now is brian kelly, fast money trader good morning >> good morning, wilf. >> we heard there that he was saying there's high transaction fees unreliable trades yet coming on the day we got the first cbo futures markets. what's your take on that and the fact that now we have

wti went to 60. it is an inflation story. we will talk about what is happening in the pips market.et's get a bloomberg first word news update. here is sophie kamaruddin. sophie: let's stick to the commodities claim. -- oil is trading higher after an explosion. aha explodedun by w yesterday. to expectia set oil to jump to help the kingdom report its first budget surplus in a decade. copper his surged to the highest level after china ordered the combat airr to help pollution. demand.y optimism about nine days forat it the topat makes basement performer. and the producer price rebound appeared to soften. compared withfits the purported 25.1 percent in october. the yuan allete it's sanctions and are being seen as unlikely ownun' nuclearg ambitions. sthe new restrictions are more likely to hurt ordinary people in the isolated nation, experts said. and gaining $1 trillion as stock markets shrugged off economic social and political divisions. that is more than four times last year's gain. 20% increaseh a for the msci. global news 24 hours a day, powered by more than 2700 journalists and a

the last trade for wti crude, $58 per barrel that's off 0.2%.s for the brent crude futures, they're up almost 2 %. $64.42 bigger picture global factors playing into that. the pipeline in the north sea and tensions in the middle east. as for the gold price chart. we have been seeing a bit of action on the currency commodity side of thing, people have been talking about the crypto $1,269 the last trade. just about flat so far on the day. >>> the dollar, despite tax reform, has not been on the move to the upside. dollar here in today's trade higher against the yen at 113 113.43 the pound is higher against the green back the key economic data is the uk gdp print due tomorrow >>> let's look at bitcoin and where it is trading. there has been a lot of talk about bitcoin getting diluted by other alternative tokens or coins, if you will, like bitcoin cash, ethereum, litecoin futures down 300 points here bitcoin futures on the cboe market down 90. let's talk more about the currency market. eric valoria from wells fargo securities thanks for joining us. le

probably wti in the low 60s to maybe low 50s back and forth in that range a lot of new oil will come on line. remember part of this big ramp up is because of the pipeline down in libya so you took 550,000-barrels off and the opec move, they want to be able to sell more oil now, just the opposite of taking it off. once aramco comes out the saudis have done their deal and got price where they want it for the brent and i'm not that big of a bull for 2018 and the oil complex. lauren: well you know, there's the thinking that the shale producers haven't produced enough and we might not have enough supply to cover our needs what do you say about that larry >> well i think right now, looking at the market i would continue to tilt my portfolio towards value, away from growth and momentum, something that would really benefit especially the financials or the sub sector , inflationary issues when you consider the tax cuts when you consider higher interest margins, consider regulation, also going into industrials, materials, and even energy. even if wti is down $50 a barrel the fundamentals are s

>> we think that wti and brent are going to be well above that level. i mean, we think that the forward curve is 15% too low and let me make a couple of points about that first on the demand side, we have a goldilocks scenario in place, global gdp is in positive territory and the u.s. which is 25% of gdp will have lower taxes next year and our economics team believes that will lead to better economic growth which bodes well for oil demap the demand side is not talked about as much because the focus of the debates is on the supply side as you pointed out it's on u.s. shale hand whether or not cooperation between opec and non-opec can continue. so we fully believe that u.s. shale output us going to rise by at least a million barrels per day next year. after having said that, we think that the market is going to need that supply and then maybe some more when you consider that the rest of non-opec and opec are unlikely to increase production by very much at all in 2018, so our bottom line on crude oil is that while oil prices are higher by a full 40% since

wti trading north of $60 a barrel. the nikkei closed fairly flat going into year-end.as had a cracking year and in some ways, it will be interesting to see if that is a feature of next year. climbeddutch -- s&p close.e . not expecting a lot. the market could be fairly quiet today and lacking a little bit of liquidity. there could be interesting year-end twists. let's see what we can expect. is where we are on the ftse 100. keep an eye on the minors. you saw copper rollover after a crashing run. the oil story could be one to watch out for. the ibex opening up just north of 1000. now dipping into negative territory. at a headline level, there have been very little moves this year. below that level, the sector story is where all of the action is. let's take you to the sector story and talk a little bit about what the map is telling us. it has been this rotation that has been so important in whether you have outperformed benchmarks and delivered the alpha. we will talk about that later in the program. volatility at a headline level has been compressed, but the sector rotat

mark, that's when xle and all the individual names start to take off to the up side with the brent and wtipread that we continue to see at $7 a part that is very good for u.s.-based companies to export that oil overseas and make profit there and obviously a bunch of those top 10 holdings are the kind of names you'd like to see get the prophetability with they expert. they did not move when oil first moved. now they're playing catch up with oil sitting at 60 i love names like occidental >> why don't you head over to explain. >> energy worst performer in 15. it's volatile stuff and if you get it wrong, it urts had. so you got two lines. they speak for themselves. so over the past five years this is tech and this is energy you're talking about -- well, almost a 10 bag or spread. let'szero in tighter here's the past five years and this is telling. lunch. not only lunch 40% spread on the year here comes the year to date chart and we'll look at a few others this is -- well, this is the chart we just had. it's the same spread let's go on to the next and see what we pull up here so now we've got i

even as we have seen wti bounce, the stocks have gone sideways. of that ample production you are talking about? vincent: we talked about a tight range. 40 some odd on the low end, 60 on the higher end governing that price. and for that reason -- the output of production is so prolific from various plays. it is there, we know it is there, and the operators are using technological advancements to get this stuff out. we are looking at the relative price as 40-60 as a long way from where we were in triple digits not long ago. looking at the variables that could change her to find 2018, what about opec? did they have influence anymore? vincent: they do in the margin, really that is marginal producer. the u.s. is bringing on as depleting that inventory. so drilling uncompleted we lls. so allowing them to respond more quickly to price movement. is the key and 2017, 2018 as well. i think that is the big surprise that opec has probably globally over the past year or so. julie: as you look at 2018, how closely are you watching geopolitical risk? -- not had

if you look at the week, it has been a choppy week overall for wti. down more than 1.5% in the past five days, the worst week since early october. they have been in all -- unable to shake off this week's inventory report, which showed inventoriesoline and expansion of u.s. crude production. to metals, gold briefly spiked higher, but ended the day down, as you can see, off by a quarter of 1%. falling about 2.5% for the week as the dollar strengthened and anticipate the rate hike at the fomc meeting next wednesday. if you have inside the terminal, these bars show the weekly percentage changes on gold prices, and that bar on the far right is the biggest weekly drop four-ball since may. it is also the third straight week of declines for the metal. let's get a check on the first word news with mark crumpton. presiding over the ceremonial swearing-in is kirstjen nielsen is ever marry of homeland security at the white house, president trump praised his declining immigration rates to the u.s.. vice president pence administer the oath of office with much of th

all the individual names start to take off to the up side the other thing you have with the brent and wtipread that we continue to see at $7 a part that is very good for u.s.-based companies to export that oil overseas and make profit there and obviously a bunch of those top 10 holdings are the kind of names you'd like to see get the profitibility with that. they did not move when oil first moved. now they're playing catch up with oil sitting at 60 i love names like occidental they are the top ten holder in the xle. >> carter, head over to the board and explain. >> energy worst performer in 15. best performer in '16, now bottom of the barrel in '17. it's volatile stuff and if you get it right, you win, if you get it wrong, it hurts so you got two lines they speak for themselves. i want to look at the spread between the winner and the loser. so over the past five years this is tech and this is energy you're talking about -- well, almost a 10 bag or spread. let's zero in tighter. here's the past five years and this is telling. lunch. not only lunch down a little bit versus tech. 40% spread

so that could be a problem. >> finally, art, oil, any impact at all we're above 60 on wti?think it will remain strong in the first quarter but then i think things change. >> art cashin, thank you here's the opening bell the last trading day of the year. back at headquarters here at the big board, global credit income 2024 target term fund >> got it. >> memorize that. >> it has a recent listing they are celebrating. at nasdaq, times square alliance co-producer of the times square new year's eve which will be up in a couple of days. there we are, more green than red on that board right now. >> the upper drift of the last couple of days seems like it's about to continue. gathered strength through much of yesterday and had that strong close. one veryminor kind of rooting interest element here. everybody knows tech has been the best performing sector this year, far and away up 30% in the s&p 500, the race for second is nip and tuck, between consumer discretionary and materials, very small sector but it's kind of interesting. >> you could argue it's just amazon. >> a lot is amazo

the xle and individual names take off to the upside the other thing we have there with the brent and wti spread that we continue to see at $6, $7 a part, that's very good for u.s.-based companies to export that oil overseas and make some profit there and obviously in the xle, a bunch of those top ten holdings are those names you would like to see get that profitability when they export it's been a huge boost they did not move earlier in the year, now they're playing catch-up with oil above 55, sitting here at 60 i love names like occidental >> carter says there's going in the charts signaling more gains next year. carter, head over to the plasma to explain >> we'll see what we can figure out here energy, worst performer in '15, best performer in '16, bottom of the barrel again in '17. it's volatile stuff. if you get it right, you win, if you get it wrong, it hurts let's try to make the case for energy here. so you have two lines. they speak for themselves. i want to just look at the spread between the winner and the loser. over the past five years, this is tech and this is energy you're

having climbed above that $60 mark for wti you can see it's slightly below. let's call it not much of a move this morning, flat or so and 2.42 on the ten-year note yield. let's get to our road map this morning. in it, it does start with those two trading days that are left for the year u.s. futures are pointing to a higher open, buoyed by gains in the utility and real estate sector >> and the cryptocurrency tumbling after new regulation talk in south korea. and it's the year of the global ipo, 2017 saw the most companies going public since the financial crisis a lot of them right here on the nyc from china certainly, we've got a whole spate of those let's talk broadly, though, about stocks right now, as you saw, poised to open with some gains, one day after all three major indices broke what was a two-day losing streak. the dow and s&p are on track for their best year since 2013 meantime, bitcoin is moving lower after south korea imposed new restrictions on the cryptocurrency trading that was to kucurb speculation south korea had been a very large market in t

are up -- >> wait a minute, we've been stuck below $60 a bill on wti forever, and you know, wti today2 cents i'm not trying to poke big holes in your argument here, but it seems like somebody's buying these stocks today for some reason and i'm just trying to figure out what that might be >> well, you know, today was the latest d.o.e. inventory number and it came in bullish, it's been bullish for many months now, energy stocks have been generally bouncing back, at least going back to the opec meeting in late november so, today, you know, is just one, one example of that commodity trade, but to be clear, it's a commodity trade, not a tax trade. >> okay. >> angelo, i am curious what the solar impact will be this is an area where there is so much help given by incentives over the years, and now there's all these issues about, you know, chinese dumping. so how do you see the industry emerging after the tax reform passes >> yeah, absolutely, so as far as the solar space is concerned, i mean the life flood of the industry continues to hoover around access to financing and tax equity has been

and you see wti down let's get to the road map this morning. it starts with the tax effect.ore companies including barclay's and shell outlining major tax linked changes to the bottom lines in the first quarter. >>> the race is on for fed vice chair former bush era advisers reportedly in the running. >>> tesla t is in a direct challenging a tesla pickup could hit the road but does tesla already have model 3 problems? stocks look to rebound from yesterday's decline. a number of companies reacting to tax reform. barclay's expects a writedown of 1.3 billion on the annual post tax profits. royal dutch shell sees a charge of $2.5 billion for its fourth quarter earnings and expecting a one time benefit of 250 million bmw also expecting a positive impact on net profit we should point out, of course, if you have deferred tax losses, they lose value given you could have written off as much as 35%, now only 21% essentially the value goes down. >> the first wave of adjustments really is accounting based shifts it's not so much what are you going to do with the money, will it fall to th

theblue line is wti and white line is energy stocks versus the s&p. does that gap close next year?ter: we think it could, and it is started to close in the last few weeks. the white lineenergy stocks in genee under owned by investors because it has been the worst performing sector, or one of the worst this year. as we move into 2018 and see this reflation trade starting to take shape in the market, we think energy stocks are poised to do well in the new year. alix: how would you be playing that? walter: there is a variety of ways. explorationon -- companies, domestic and global. you could look at bp on the integrated oil side, conoco phillips on the e&p side, and also the service names have been extremely hard this year and we think are due for a rebound in 2018. a global operator would do well. david: follow that segmentation. where do you see the biggest opportunity? the service companies as opposed to the e&p, where are the biggest opportunities? to go: if you expect oil higher, the lower down on the --lity side the more integrated is probably a more stable move down to e&p's li

dominic: if you look at brent prices, targeting 67 and on the wti, 553.ns of 5% to 6%. but these will not be sufficient for the decline we have seen in prices. if you look at speculative accounts, the ratio from a long to short are blown out, historically. some good news on the supply front. we have seen good news from the u.s., that story can turn quickly quite sour. betty: give us more detail about the demand picture for oil. dominic: demand this year was phenomenal. at one point, six or even more. everyone underestimated the demand side this year. if you look at the agencies that came in with a meager outlook, and have to revise it up. even in the latest report it was revised higher. if you look at global growth, it will not accelerate next your anymore. and some economies, decelerate. china, one of the main drivers, needs to be cautious. having a target of 1.4 million barrels is good. the demand side is supportive of prices, but the supply-side will react more fearfully in 2018," call for a cut. betty: i want to talk about commodities. there have been

what are you looking for out of wti for the first quarter of taking?: it has been a whimpy market this year. are 53.ge we going back to 2015, the average is 52. it has been a quiet market. that speaks to the overabundance of supply. the question is, will there be demand? u.s. tax cuts might help. saudi arabia, they have a big change in leadership, a war in , and that is not over yet maybe they are sniffing around in the u.s. shale fields. i think saudi arabia as the head of opec and one of the major oil producers, i am interested to see what happens with leadership there. that is really going to set the supply town for the rest of 2018. vonnie: happy holidays to you and everyone else at the cme. brian is at performance trust capital. mark: a look at some of the biggest business stories in the news right now. qualcomm is firing another shot at broadcom. is chipmaker's board opposing broadcom's nomination of 11 new nominees. the stages is being set for a blockbuster deal in the commercial jet business. considering a is deal that would expand boeing's rea

we are announcing energy stocks leading the gains with the wti now past 56.7 at the moment and brent$62. we are investors being focused on tax reform. also on the potential government shutdown that could come anytime now. get the latest on global politics and what is happening with tax reform at the moment in your inbox. coming up on bloomberg markets, janet henderson fund manager will join us live. what he has to say about bitcoin and the flattening of the yield curve. tv is the function you have to look at for the latest interviews. breaking news.t this is bloomberg. scarlet: it is to club p.m. in new york. i'm scarlet fu. julia: and i am julia chatterly. welcome to "bloomberg markets." ♪ scarlet: we're live in bloomberg world headquarters in new york over the next hour. cure of the top stories we're covering on the bloomberg and around the world. bill gross on bitcoin. he says he will not by the cryptocurrency until votto cools. -- lava cools. thinking about concessions that his investment bank firm. more highlights from that interview. speaking of concession planning, one of

is it having any impact on wti? >> we saw that it was up about $.60.ht on the open around 8:00, it backs off sharply. i was disappointed. i think the long-term to breakions would be through 59 and then shoot up from there. trend traders are all looking for that is the way forward. the impact of this is 400-6000 barrels per day and you have caught their who output over to asia by 100,000 barrels as well. the reality is u.s. production should continue to build upward and that should weigh in on prices. i like tactical shorts on that market, selling call options up in the 60's and using that money to finance on the downside. and really with the news coming out, if bullish news does not make the market rally significantly, it tells you there is a problem with the fundamental story there. vonnie: are you switching your calls substantially? it sounds like you had been bullish at a certain point but you are now giving up on that? >> yes, we had been range bound, just a strong resistance than i do not see the crude oil justifying the move upward. i thought tod

. $60 in the wti. what the markets are doing is settling back and looking for trade bottoms.t happens is, if tax cuts go through, once we hit through that phase of it, the market will look at the u.s. and say good growth. china is replacing the u.s. as the largest importer as we are speaking right now. 6% rangenomy is in a of growth. europe is coming on. with the fomc and the european central bank and other central banks still saying on a policy of growth overall, i think the outlook for oil is still pretty good. hearing the two opec countries that are considering backing away means stability is coming to the market, not that they want to drive prices down, but the u.s. is stealing market share. there is no question about that. mark: always glad to see you. "bloombergn -- markets,", we are getting here why nothing is off the table white -- when it comes to brexit. this is bloomberg. ♪ ♪ partythe u.k. labour wants to allow second referendum if it wins. joe mcdonald spoke exclusively with bloomberg. we have to reach a traditional british compromise and bring both sides together

this is the wti calendar for 2018. it is the benchmark against which shale operators execute.at $58 a barrel, highest since the start of 2017. these shale producers can all but guarantee availability. ryan, how worried are you about the return of u.s. shale? ryan: i am absolutely not worried. opec is not worried about shale producers. tracy: should they be? ryan: no. it is a cartel. a cartel is very strong. it has been operating for decades and decades. they are holding back the reins on things. this is complex beyond just the increase in prices. volatility hurt a lot. 56% to 60%. and later on, 65%. it dropped 18%. that is important to consumers of oil. i think this is where opec shows it is holding the reins back. it is controlling the markets and volatility and price levels. shale producers do not have that luxury. it is not a cartel. tracy: but they presumably piggybacked on top of opec. do you agree? some producers should be a little bit worried about some of the shale plans for 2018 and going forward. an outlookal for beyond united states, non-opec supply will increase by

not seeing a halo effect for wti. mark: thank you very much.he fragile brexit truce as already been tested. david davis calling the compromise over the irish border something that is not legally enforceable. the eu referring to the deal as a gentleman's agreement. theresa may says as about the u.k. taxpayer will soon see the benefits of leaving the eu. turning us now is our market columnist for bloomberg gadfly. are there doubts out there after the reactions of the news on friday? what does it tell us, the movement down in yields and sterling falling? not read too much into the move down in gilt. cpi coming out tomorrow will probably show that we will be below 2.9. no letter needs to be written to mr. carney. at the end of the year, we have one small option link on wednesday. this is a good sign the deal is holding up. the gentleman's agreement shows to my mind that despite histrionics over the weekend, this is holding. that is quite a vote of confidence in u.k. markets. mark: he said nothing is off the table. that tends to be the labour party

goldman sachs raising its 2018 outlook for the wti crude price barrel, also raising brent to $62 a barrel to the ceo egypt's second biggest pharmaceuticals distributor as it looks to expand with ipo cash. this is bloomberg. ♪ ♪ welcome back. biggestsecond pharmaceutical distributor plans to invest millions of dollars to expand its storage hubs using the proceeds from an ongoing initial public offering. is offering 40% of the shares in the local market for $90 million and plans to add 20 new distribution centers. curious, why ipo now? mean and the timing why did you use this moment to do it? >> i think the market now in for ais ready pharmaceutical company. the sector is appealing. is a very defensive sector. year,growing 17% year on egyptally the changes in in the last six years. it is a solid defensive sector. has a few stocks trading in the health care business. i would say the stock would be a contractedas we are sq's tradingn 9500 in egypt with total sq's a little bit more than 10,000. this at a are doing time when investors have expressed some interest in egyptian assets, including s

and yet, natural gas has been , but natural- wti gas has been languishing.ook at what investors have been asking us, we can put that into buckets. how can things get better from here for crude, and how can things get worse for natural gas? after two really horrible winter seasons. we did not see the demand on the last two seasons, and yet we stand here today and natural gas storage is roughly 3.3 tcf in the ground, 2% below the five-year norm, so things are looking a little better. we think sentiment has washed out. we understand where the production growth is coming from. it is fairly well discounted. we have the production growth in appalachia, to the northeast, and we have associated gas production. we can discount all of this and look ahead to january and february, which tends to drive a lot of the heating demand here in the u.s., and take a look at the next two weeks. even with this modest cold snap we are seeing, the rise 7% in natural gas, it seems there is optimism more for natural gas than there is for crude. for crude, we understand elevated storag

that being said, technically we have february wti breaking out of the space here.l it 54.30 to 56.20 the next up side is 63.30ish a lot of players that i speak to -- wall street has a short-term memory. >> i was going to say, roberto that's an important point you're making the giant jump in rig counts we saw this year, we added about 300. it came down a little bit at the end of the year. >> yes. >> that production, we probably won't even necessarily see many of the numbers until the middle or back half of next year, correct? >> that's correct. that's correct i think one of the items that we've been talking about with clients is that the u.s. shale machine is going to blow north of 10 million barrels a day. there's a lot of production that comes online whether you look at it with those rigs coming on and drilling the big ducs in inventory which can get turned on in a second. the big saudi aramco, it could be like all bets are off and the saudis go back to looking for market share that's a wonderful dynamic to have. >> great points. joining us by phone. happy new yea

brent crude, take a look at that, currently higher for brent and wti.ell.stockpiles 10 year yields for paper at the upper end of the range. resilient in light of a testy brexit conversation. of the bigd one stories, the strongest since march. it has pared some gains, but still below the level against the u.s. dollar. let's check in on the first word headlines with debra mao. africa's ruling anc has elected its new leader after a bitter campaign to replace jacob zuma. the 65-year-old union veteran was part of the previous regime, but managed to events delegates he has become a performer. he is one of south africa's richest people. six people have died after an amtrak train derailed in washington state. have beenices suspended south of seattle. president trump tweeted that the incident strengthened his case for increased investment in if a structure. the associated press quotes an official as saying pulmonary signs may be the train struck something. saudi arabia is preparing what is expected to be an expansionary budget for next year. state media has rele

it shows the wti calendared strip for 2018, the benchmark by which shale producers hedge their production you have the rig count below it picking up slightly. are the shale guys going to come back? opec deliver them a massive christmas gift? robin: i think so. i think the decision reached was what the shale guys were expending, that they would expand their cuts. now that that is confirmed, you see strong futures prices that gives them a chance to lock in prices well above the levels from which they are profitable for next year. we will see stronger support of the drilling. you have to bear in mind, this has been strong production growth despite the prices are very low. tracy: the other question i have for you is we have the agreement extended by nine months with a review in june. opec deliver them a massive christmashow seriously should we that review given the? hovering over russia's participation in the entire thing? robin:how seriously should we te that the nine-month thing has been a sleight-of-hand. there is always going to be a review in june anyway. russia wanted to get a three-mon

that's been dragged along by the price of oil and what wti has been doing basic resource up 0.2% we had that big move in copper in yesterday's trading zooming in a bit, real estate down 0.9%, almost down 1%. that's a very interest rate sensitive sector we saw a bit of weakness in u.s. session overnight, and yesterday's session because of the rise in interest rate yields, that sector is continuing to struggle a bit utilities also struggling on the down side, down 0.6% back to our main story it's a done deal president trump and republican lawmakers celebrated after giving the house -- after the house gave final approval to the biggest tax overhaul in 30 years. sending the 1$1.5 trillion bill to trump's desk for his signature and giving him his biggest legislative victory so far. the bill will cut corporate taxes from 35% to 21%. there are similar cuts for taxpayers but on a smaller scale. trump called the bill a christmas present for hard working americans. >> the heart of our bill is a tremendous amount of relief for the middle class and a doubling of the child tax credit and a near doub

. -- look at the wti and look at what is happening. up 1.5%.s s&p futures called up .7%.is what fair value look. look look at actual market numbers. we are expecting a strong start. here is the breakdown of the market in terms of i met. you have financials. let's see how they rally. industrials may be as well. keep an eye on the china dumping story. strength coming through into the financials and industrials trading strongly. you in terms of the move screen what is going on. here we go. here are the movers. chrysler strongly bid this morning. akzonobel is down. we are watching carefully what is going on. the levels are important. we are seeing a market trading strongly off the back of this idea that we are getting some positive momentum coming into the u.s. tech story. -- u.s. tax story. there is this issue of the investigation into russian meddling into the 2016 election. that suggests a potential case of obstruction of justice against the president. that is according to top democrats. one of those suits on the senate judiciary committee, diane feinstein. her comments ca

vonnie: speaking of stability, we have seen a little of the oil market, wti particularly, what do we later when we get stockpiles? bob: i think you will see another crude oil drop in small in thearger than api gasoline inventories, and smaller from the crude inventories then we saw yesterday. there's not much of it correlation between the two. the long-term supply story is not going away. you have money pouring in from private equity and wall street into shale again, so that is a change. you have money into offshore operations in places like brazil, where it is less reported. so the production is going to come online at this price point. but the opec cut is working. we will probably see a pop toward $60 and stabilization in this range. longer-term, we are looking over for longer. vonnie: bobby chino, to you -- c -- bob iaccino , thank you. mark: next, we will speak with alejandra diaz de leon. this is bloomberg. ♪ ♪ vonnie: i am vonnie quinn. you are watching bloomberg markets. mexico central bank raised its interest rate for the first time since june. it could signal more rate hikes

back profits earned overseas without penalty >> and we've got crude oil hovering near 2 1/2 year highs wtiit 60 bucks a barrel. how should we look at energy in 2018, how will that affect the bottom line? >> our long term view is that there is a permanent cap placed based upon the efficiency of fracking but we're very near or at that cap already. but that said, transportation industry is really revolutionized itself and everyone is better at collecting a more complete fuel charge, so they are less affected by higher rates of fuel. >> and in terms of technology, something i just touched on in that playbook for 2018, a lot of technology taking root here. we have the electronic logging devices regulation that just took effect last week for trucking for example positive train control which will be in all of the railroads or supposed to be by the end of next year. >> we'll see >> also drone delivery potentially for packages and some of these other technologies what do you see as sort of the bhegest driving force in terms of tech shifts in 2018 >> well, technology is indeed going to be sort -- co