wti it's lowest for six weeks.using a surge in shares to raise more than $1 billion. the surge? haslinda: the cost-cutting economist known as mr. scissors is the latest to try it in italy. dave: lots of changing parts and narratives for italy. you look at the chart to get a sense of how quickly the situation there is changing. equity markets in the asia-pacific. the at not which ended a bear market, down 1%. equity markets are down. the u.s. 10-year back below 2.9%. you are getting a bit across, you are getting a bit across fixed-income. in a lot of ways, that might be helping when you look at geopolitics really pushing some money back into fixed income, capping those yields. at the moment, a fairly low day. the other thing i want to mention is a lot of the markets in southeast asia are close. tot part of asia -- a lot consider but it is a bounty across equity markets today. aslinda: i'm looking at oil, barrel for the moment. the oil the highest in three years to posting its biggest drop in 11th months. we have rus

we want to show you the difference between the price of wti and brent crude.simple but wonderful chart. the year-long rally has hit a major speedbump with both brent and wti continuing to fall, following friday's announcement by saudi arabia and russia that they are discussing easing output curve -- output curbs. it is not clear what of the group will reach a consensus when it meets in the internet month. the difference between the two prices is now eight dollars. keep an eye on this spread. the difference in price between wti and brent crude. mess or a five-star five-star. depending on how you look at it -- manishto menacing chief investment officer at crossbridge capital. thank you for joining us on this bank holiday. would you buy italian yield? italian bonds? these, some might say tasty yields. manish: you'll get much better yield buying u.s. treasury's. for me, it is just a question of that. if you are an investor, you know you have to -- but my view is that europe has a lot coming down the line and the intelligent thing is a rate -- the italy would thing

you would see that support over wti, bridging the gap.ver, the back end of the curve towards the end of 2019 is where you see, perhaps, more weakness in wti-brent, given the fact you will see a lot more u.s. crude hitting the market as well in terms of production growth. also, some pressure on wti-brent because of logistical constraints in the u.s. such as midland pricing in the u.s. vonnie: curious as to correlation. what other commodities are you keeping and i on? is a giving you a hint of where the complex is going? on the other side of things, how ach do interest rates and sickening dollar, should itching for an, have to do with oil prices? abhishek: commodities in general are a good asset class this year. if you look at the bloomberg commodity index, it has done well. its highest marks since january. it has more to go given the fact we have seen commodities in the back and. -- back-end. you're getting better return on commodities at this time. we are getting late cycle dynamics. from the past cycles, towards the end of late cycle dyn

seeing $68 for wti. spread is thes widest we have seen in some time, and the commodity index .6%.ng lower by .2 3 -- let's get you up with first word news. haslinda amin. haslinda: good morning. italy remains without a government after a would be prime minister failed with a choice. he withdrew, saying he has done his best to form at administration. rejected ant economist who has called for in -- italy to leave the e.u. and criticized germany's dominance. china's island province is taking steps to combat speculation in real estate, and the campaign may go nationwide. they want to see the ban of flipping proxy and have been mining down payments as much as 7%. restrictions were down in april to boost the island economy. international airlines have been given more time to adjust references to taiwan, which china insists is part of the mainland. two of the planes have made changes to their website, while those who have received an extension include netted, continental, and ana. china is asking all carriers t

it's not yet you have brent at nearly $80 a barrel wti at about 71 right now. $9 discount.l in midland, texas where the permian production is most robust, $8 below that the glut there is that the oil is sort of stranded. there's not enough infrastructure to get the po duck shun out production out to the coast, they're working on that. the potential losses from venezuela, iran, the purposeful withholding by saudi arabia of oil to the open market is also producing these prices that's the situation >> all right >> john kilduff, thank you for joining us >> appreciate it >> wti crude right now trading around $71 a barrel. >>> that does it for "worldwide exchange" this morning "squawk box" is coming up next a lot of stuff to focus on with regard to the markets. thay tuned in for at >> "squawk box" is next. mom you called? oh hi sweetie, i just want to show you something. xfinity mobile: find my phone. [ phone rings ] look at you. this tech stuff is easy. [ whirring sound ] you want a cookie? it's a drone! i know. find your phone easily with the xfinity voice remote. one more way

wti hits $70. u.s. crude hits the highest level since 2014. traders brace for donald trump's decision on iran. the opec nation speaks out against higher prices. customs union compromise. moderates look to revive an argument over keeping close ties after brexit. lebanon votes. results are expected soon as the nation wants its first parliamentary election in nine years. we are in beirut and will hear from the central bank governor. good morning, everybody. this is "bloomberg daybreak: europe." manus is joining us shortly. let's talk about what's going on in this market. this is a picture in the asian session. .1%.e up by we have been fairly mixed in the asian session. theaw holidays purveyed in calendar last week, and we are back from those, so we have a full complement of markets in play, and this is the response we are seeing in the asian session. , u.s. conversations did not seem to be conclusive. big story for us today is in terms of the oil price. we will ignore that one. the oil price is entirely irrelevant to the conversation. $70 per bar

wti on the decline. is it the dollar move or something else? $60 per barrel. -- $68 per barrel.s us. a stronger dollar with geopolitical uncertainty. something else happening behind the scenes pushing the price down? >> you not only need to look at opec, the saudi's came out at the st. petersburg economic forum and said clearly that there will be a supply increase in the second half of the year, depressing brent and wti prices. opec this is a flip-flop, met and would carry on the policy. is this pressure from u.s. president? >> the opec secretary-general was blunt and said they are they sawg to the tweak from president trump in april when he said opec was at it again and he called prices artificially high. he told us today that when they saw that, they knew they had to respond. there has also been loud opposition that we have seen from democrats on the hill. a pressk, they held conference at a gas station to complain about higher gas prices into the summer driving season here -- season. vonnie: $67.80 and change and brent is down as well. a massive spread. what happens to the sp

it is coming back from the load on wti, nevertheless down 2%.reporting something slightly different, that the might not collapse altogether but the president could reimpose some sanctions and is hitting the oil markets. at 2 p.m. eastern, he makes the let's get somed more reaction from kevin cirilli. meeting withy are senators, none of them are on the foreign relation committee though. kevin: president trump, waiting for that announcement from him at 2 p.m. about the decision regarding the deal and as he mentioned, he is meeting with a couple of republican senators on something completely different. the back and forth with trade negotiations would impact agricultural states. speaking of iran, two things, european allies are out in full force from the united kingdom, germany, and france, urging president trump to reconsider suggestingn, also that he will remain in the iran nuclear disarmament deal with or without the united states earlier today. the president has informed the french president that he will in fact withdraw from the iran nuclear di

wti to the dubai oil price spread. the discount of wti to the middle east and benchmark is at its widest since december. this matters because asian buyers look at this. perhaps they will think u.s. oil is a little bit more favorable than the oil out of the middle east. 90 minutes into the trading day in the u.s. and abigail doolittle has more. looking at very small moves for the major averages. the s&p 500 and the nasdaq is slightly higher. the nasdaq of the most -- of the most -- up the most. hadier the 10 year yield been down as bonds rally for the third time in 12 sessions. at this point we have haven bonds trading off again. yields rising. that seems to be pressuring stocks at this point. the question of whether or not inflation is on the way and repricing of risk. if you were talking about oil let's take a look at an intraday chart of wti crude. all over the map here. spiking sharply higher off the lows. down almost 1% on what appears to be a bullish department of energy report where there was a bigger draw down f

worst-case scenario is a lot these producers ended up hedging wti. this is a proxy hedge because this does not protect you from the midland differential. if you have production hedged at $52 a barrel, you are still fully exposed to that midland dip. it has been anywhere between flat to $15, and potentially widening over the course of the year. if you are hedged at $52 a barrel, and the differential goes to $22 a barrel, you are now getting $32 a barrel. that is underwater $40 from your competitors. alix: and not even when you calculate brent at the end of the day. kate: if you have a two to five year time frame, the permian basin is interesting. there are four to five formations of thickness you can drill. there are fantastic operators in the permian, everybody that you want to be investing with. it will take two years for this pipeline situation to resolve. it is a super low-cost basin. if you have a two year to five year time horizon, if you can look through these differential issues, you can look through the hamper structure issues and these diffe

why such a big spread between wti and brent at the moment? >> i think the issue is there's a lot of incremental production coming online in the permian basin that goes into the wti key hub. there's not enough transportation capacity to get that oil down to the gulf coast to be exported >> when we look at the prices generally, they're not really going down do you see $100 a barrel as a realistic prospect down the line >> i think there's a prospect for it, but that would mean a situation where the u.s. imposes sanctions on iran that takes a million barrels a day offline, where venezuela slides, and demand stays strong. >> how worried should people be about the situation in venezuela and their production capacity. could you see that slipping to almost zero? >> it's possible it's hard to say zero but venezuela is losing 50,000 barrels per day per month and it's going down in a straight line there's a lot of incremental potential issues venezuela needs to buy light crude to blend with heavy crude, if they don't have the financial capability do tha

a discount, if you will, with wti trading at $72.66. ice brent crude at $79.74. lot of analysts say this is due to the oversupply situation we're seeing in western texas. look at currencies, the stronger dollar has been a big story. the impact it will have not only on multinationals but earnings a different story today. you can see the dollar giving up gains against the japanese yen at 111 euro at 118. looking at gold, which is actually higher, 1,293 up $2 right now. dom? >> we'll have more on the markets in a moment. first big trade news breaking out of china let's get to eunice yoon live in beijing with the details what can you tell us >> china offered its latest conciliatory gesture when it comes to the trade dispute in the past hour the finance ministry said china is cutting tariff force cs for cars and cas for cars, the tariffs drops from 20% to 15% for car parts, that drops to 6%. those will kick in on july 1st the move comes after reports that the u.s. and china have been heading for a deal on zte, this is the chinese telecomsmaker that's been in near coll

wti oil down 1.3%.were down about 3% before president trump's speech there, the defense names, a lot of them up 1.5%, 2%, and. >>> speaking to reporters at the white house, iran decision puts sanctions back in place that existed at the time of the deal immediately. no new deals permits, sanctions effective immediately, and saying it would be a mistake, people would be mistaken to assume this decision is a precursor to u.s. boots on the grounds in iran. >> and yet, and yet, bringing back john, there are things from the treasury, even though the sanctions are reimposed immediately, indicating certain transactions would be allowed to continue for 180 days, unless i'm misreading this. >> what i saw as well. >> unless i'm misreading it, referencing to petroleum transactions have also some set period of 90 to 100 days effectins may not be as immedia as tomorrow. >> there's two ways of slicing or dicing this my opinion, it could get nasty from here. buckle up. i really had thought that president trump would tr

take a look at futures in australia, the energy sector continues to be in focus today with the wti, goldmanachs saying oil could hit the target of $82. sydney futures like positive and .7463.dollar at and he had a mixed session when it comes to the u.s. dollar against the g10 peers. 71.28, theude highest in more than three years, in addition to concerns tightening, crude is trading at over $77 a barrel. indexue book commodities sees a lift coming through in energy prices and looking at a gain of 6/10 of 1%. also we have chinese inflation numbers coming through that will feed into the asian session. let's get the first world news with courtney collins. courtney: iran's leaders have dismissed the u.s. withdrawal from its nuclear pact with their supreme leader calling president trump silly and superficial. he said on national television a troublesome creature left the party. >> i don't think they should do that. i would advise iran not to start a nuclear program and did i would advise it strongly. there would be severe consequences. courtney: president trump says he will be at andrews air base

we are seeing this spread between wti and brent crude.en some of the geopolitical tensions now russian mark -- tensions now? >> a lot of the opec production adding to that. let's not forget they are running some infrastructure constraints quickly. we think by august, there could be some risk. those spreads could remain so long as we have that problem and the incentives are there deathly for the u.s. to export that crude to asia and markets outside of the u.s., but you are also going to have capacity constraints. it could definitely stay there in the market for a while. >> the oil market -- does it remain that way or do you see a reversal in the next two years? now, it would indicate markets are seeing definite it conditions. so far, that view is held in the markets, so in terms of when that changes, we need to see opec act and i think that would be the key trigger in which we see a given move from the .arket, but that is a risk curious, was in the u.s. supposed to be a swing producer? it seems like the saudi's are kind of in control on wh

you mentioned wti, that's about 5.5% of losses over the last three trading days.at they will take more oil off the table to focus on venezuelan crude, but 8 million barrels they have taken off the market, there is quite a bit that has decompensated from the growth in the u.s. shale industry. what will the critical is the amount, and whether they will be able to reach that elusive consensus that has often occurred at these opec meetings over the last two decades. goldman sachs is sticking to their bullish call. was the same way a fabulous bloomberg article describes it, it is an attempt by russia and saudi arabia not to change things around, but to maintain the status quo. the other issue is absolutely key, between brands and wti, that is a divergent story. what is going on? friend is more exposed to a reshuffle. pressure oil policy, wti suffering because not just of how it holds up but how much supply will come through the rising rig count, up another 15. matt: very interesting. i was looking at the spread earlier and wondering what was going on. brent is up .5%,

wti above $70. we are talking to mr. varoufakis in a moment. greek's biggest banks emerging unscathed from -- the national bank of greece, also, surviving the test adverse scenario, which pitted them against a fresh recession. almost 20 billion euros of funds set aside to shore up lenders is now free for other purposes. bankis the ftse asset index, a measure of greece's biggest banks. on the eighth anniversary -- anniversary of the bailout, luck, is trying its raising money on its own in the future. august 20 is the exit day. a lot of uncertainty still surrounding how easily athens can return to normalcy. a big question is will greece get debt relief? the euro area has agreed see's the terms greece faces on some of its -- has agreed to knees the terms greece -- agreed to ease the terms greece faces. debt ratio far exceeds the euro area average. very quickly, the quiet -- the final chart is e.m. earnings. analyst expectations for emerging-market equity earnings peaking a month ago before its pre-week selloff, which deepened last week amid renewe

wti crude is off the lows of the session. gasoline inventories are much larger drawdown.3.8 million barrels last week and that's another week in a row. downery utilization came to the positive. it was negative last week and went positive this week. once again, wti a at $71.12 per barrel which is at rates that most of us have the klein. speaking of oil, crude trading is just a little down today with rising supply. e has forecast higher demand. let's talk to an airline ceo for mexico city. of aeromexico and thanks for joining us. have you hedged for the cost of fuel? >> as you mentioned, it's likely good news that prices are coming down a little bit but still, they are well above last year. saw was the last time we these $80 brent prices? that was four years ago. the airline industry was different for years ago and the other variables were different. peso wasn, the trading at 13 and now it's close to 20. there is pressure on yields so it's a challenging environment versus four years ago. there are macro concerns surrounding mexico united, one of the major u.s. airlines retr

wti, it is following and the lowest level since may 1.rabia saying that supply would likely be boosted in the second half. >> big move in oil. for first word news -- defense secretary says that there is "a possibly some good news about a u.s.-north korea summit." mattis said diplomats are working to get a summit on track. he is called the recent back-and-forth between president trump and north korea the, --ual give-and-take paren give-and-take." president trump told the graduates in annapolis that, "the best way to prevent war is to be fully prepared for war." the president praised the military saying you do not give up, you do not give in. has askedme minister for looking into irregularities in the election. there have been complaints earlier this month in which electronic voting systems were used for the first time. this great movie mobile harvey weinstein has surrendered -- movie mogul has rendered to new york city police. against him after months of allegations of sexual assault. global news, 24 hours a day powered by more than 2,700

wti continues the decline. higher now it may be time to put the oil back on, especially when you consider half a million barrels of iranian oil could come off-line at the end of the year and venezuela is -- recall, the russians complied with this production cut, but they were never really happy about it. the saudis have a vested interest in keeping praises higher some are speculating it could have to do with the relation of the united states. they implies there's more up side to the prices if the saudis attempt to balance this with more supply it could key the all eyes on -- and the average glad price, that's according to triple a. they fall a bit less quickly. also capital founding partner, good morning, guys >> you think the degree -- i think the saudis have to walk a very fine line i think this is all about pleasing donald trump in a -- they very much wanted the u.s. out of the nuclear deal. so i think it's going to be a fine line. >> john, are you there >> pretty much maybe in my life, but i will also say t

wti, west texas intermediate and as you take a look at this, a lot of contraction and supply going onay not be producing very soon, 3.8 million-barrels into the marketplace every day, opec constraining production is too, so that's been big pressure on prices. cheryl: brent prices will affect europe, this isn't how we opened at all, the ftse is barely in the green. pressure in europe. dax down. gerri: mix. cheryl: coming up, finally some justice as the fcc hits robo caller with massive million dollar fine, you go justice department. not too late on getting on mother's day deal, mother's day is this weekend. you're watching fbn:am. ♪ ♪ you said you're not like me, ♪ ♪ never drop to your knees, ♪ ♪ look into the sky for a momentary high, ♪ ♪ you never even tried till it's time to say goodbye, bye ♪ ♪ everybody fights for a little bit of light, i believe. ♪ geico motorcycle, great rates for great rides. >> those hostages came out with respect. we didn't pay for them. we are going set the table. we are going to make a great deal for the world. cheryl: three americans freed from north korea

those crude prices move around a bit in the course of the last few weeks gasoline prices are higher wtiff by a half percent. brent crude, those world benchmark gauges, off a bit. as for the global market picture, looking at asia overnight, the nikkei off by a percent. the hang seng is up by 0.31% the kospi is off by a quarter of a percent. in europe, early going, but stable markets presenting themselves there mostly green the dax in germany up by 0.2%. the cac in france up by a half percent. just fractional, very marginal weakness for the ftse 100. contessa >> if you dive into the sectors, european automakers and asian automakers are lower after the u.s. launchedan investigation into auto imports. we're getting fresh reaction from china, you're seeing how honda is down 4% in trading overseas let's get to eunice yoon live in beijing with the latest. what's the reaction in china >> hchina reacted sharply to the latest announcement by the u.s. on the latest tariff threat. they say we oppose the u.s. abuse of trade policy in the name of national security. this will severely undermine the gl

wti near the $75 level what that means for your money and what you're paying at the pump. >>> and check this out a pair of pesky pelicans crash pepperdine's graduation. >> try saying that five times fast >> i will practice the video is completely viral. you can see why. we'll bring you full details when "worldwide exchange" returns. mr. elliot, what's your wifi password? wifi? wifi's ordinary. basic. do i look basic? nope! which is why i have xfinity xfi. it's super fast and you can control every device in the house. [ child offscreen ] hey! let's basement. and thanks to these xfi pods, the signal reaches down here, too. so sophie, i have an xfi password, and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. >>> oil prices holding firmly above $68 a barrel crude spiked late yesterday after israel said it had proof that iran was lying about its nuclear weapons program. iran denies the claims let's bring in john kilduff. how big a deal is this looming renegotiation, renewal, reupping of the iran deal on may 12th and what netanyahu did yesterday saying that iran is ba

brent and wti crude are touching since 2014.en ramy inocencio is here to tell us what to watch.ou. we are looking ahead to later this week in st. petersburg. that would be the st. petersburg international economic forum. it will not just be world leaders. it will also be energy ministers , the prime among them vladimir putin, emmanuel macron, shinzo abe. most important right now, the energy minister of russia as well as saudi arabia, alexander novak and delete also lay. fale.alid a they have been described as having a bromance because you cannot have one without the other talking about the trajectory of oil. i want to show you my chart here. looking at what i have called the temptation to produce, this is in your own gtv library. the one line here is that production target for oil. for russia you can see that is under 11 million barrels a day, but it is above that now. when you look at a relative to brent crude futures, it is now on the $75 handle. some folks are thinking this might rise higher, but you can see there is pressure to produce as this increases and people want more

is coming out crude is about 1% weaker and wti is just below that all important $70 mark we were at 3.5-year highs yesterday. >>> shire shares this morning trading higher after takeda agr agreed to buy the company. the pharma company will spend 1 $61 billion for shire. takeda expects cost synergies of 1$1.4 billion, and insists the combined company will become an industry leader. we are joined by jonathan roundtree. will this make them an industry leader >> that's a tough one. they'll be bigger. we have two relatively underperforming stocks in the past year. i think investors have been concerned about that as to whether this conglomeration of therapy areas will thak make th leader >> why do you think the share prices have been underperforming so badly why are investors taking a bearish look on this >> the problem roots in m&a becoming very expensive in pharma as a whole. so companies struggling with patent expiries and innovation not working are looking to m&a as a solution. you end up with two companies that have found their way and lost that juice that is going to get them to the next

the nasdaq the big story is oil and gas i'm not just saying that as a guy who likes to go to texas wti is up 0.81%. over 72. brent crude a hair away from $80 a barrel natural gas making a move higher as well. >>> sticking with oil and another big cnbc exclusive we sat down in houston with the devon energy ceo and talked about everything from the u.s. oil boom to where he thought crude prices were headed but we also asked about an important story that's only starting to come to light, why some companies in the permian basin have to sell their oil at a discount here's what he told us >> the growth has been so much, it's outpaced the growth in pipeline capacity out of the basin. in order to get it moved, you have to be willing to take a discount that will be remedied, but in the short-term it's caused a differential to go up. again, we anticipated that issue. we have a lot of long haul capacity out, straight to the gulf coast and the rest we locked in our basis differential at wti prices >> how much of your production is locked in for transportation? >> 90% of our oil out of the permian i

haidi: we spoke earlier about wti trading close to $73, the highest since 2014.hat is creating a huge jet fuel expense for airlines. what is their hedging plans looking like? su: they are kind of in a gym because they have not been hedging. you can see the rising oil. close to $73. almost 20% gain year to date, but let's go into the bloomberg because for the jet fuel, it has been almost that 50% increase since the start of the year. look at this. jet fuel prices at the highest since 2014. if we go into the airline stocks, they are under pressure. there is concern as we start into the long holiday weekend. the good news for american travelers is the fares are fairly low. they have not really been priced in, but you don't have a lot of ways for the airlines to go other than raise prices. they cannot really add seats and they have not done the hedging they used to do back in 2014 because the price of oil has been so low. rude awakening. betty: in the. su keenan there. congress has approved a sweeping overhaul of u.s. bank relations. that is the most significant chan

wti is up 45% since this time last year. brent crude is up about 50%.nes yesterday when brent crossed 80. we are focused on geopolitics, watching the middle east the second sis the iranian barrels, when those will start coming offline and how much they will spook the market higher then you have a situation in venezuela where their production is decreasing at the same time and demand forecasts are robust around the world so this is a picture to see these prices go higher memorial day is when it starts, july 4th is the peak we have a lot of time until then to see not only $3 or past that. >> jackie, stick around. let's bring in helema croft. we talked about venezuela, the economic, humanitarian and oil disaster they have elections this weekend. iraq has elections this weekend. your latest note is titled "what's happening. what is happening with those two nations? >> everyone is watching venezuela. venezuela has been the big production loss story this year. we talk about geopolitics, but it's become a market reality story. venezuelan production is about 1.

wti is discounting at its lowest levels relative to dubai.hina particular mix sense. we will be looking at the u.s. crude exports at a capacity of roughly 2.5 million barrels a day to do so. we think we will see those numbers in the weeks to come. francine: you just want a number from perry. -- harry. >> it would be lovely to have other people do your work for you on these things all the time. if you look at the ecb over the last few years, they have been very sensitive about changing policy around turning points in oil. we think the market is underestimating ecb hawkishness because of the recent rise in oil price. francine: i remember two years ago we were looking at peak oil demand 2020. peaks the concepts of come and go. the first came in supply. then we had the innovation of shale. the next peak argument is around demand as people are getting enthused about electric vehicles. when you look at the needs of emerging markets and the conventional car fleet, that is not going to go away anytime soon. tom: is the oil dollar correlation still th

we are seeing a bit of a negative effect with crude down 1% for wti this morning.ously some concern in the market about which way trump will turn. yvonne: there's so many scenarios at this moment and it is too early to gauge where he is going to go with this on tuesday, whether to extend the deadline for leaving or staying with the accord. of thes to be a lot version views, how do think his decision on sanctions is going to dictate the oil market next two sessions? it is very much the focus, around opec's third-largest producer. heavyweight and come back in the last two years. all eyes are on what could happen. i think in the market, they have taken trumps tweet and the lack of anything evocative in there to mean that he may be open to negotiation, which is obviously why oil has come back a bit today. some traders are saying if in the court is agreed, if in a is agreed, oil to remain above $70, and the cap extend further. remain, and will see which way trump will go. yvonne: perry williams turning us from sydney, and you can see president trump's announcement like

seeing so far this morning wti prices just about flat on the session. $7.42. ice brent crude futures at $77.37 we'll have more on the markets later on in the show >>> in political news, president trump is expected to lay out his plan to bring down drug prices senior white house officials say the proposal will require medicare part d plans to begin passing along the drug discounts they received to patients. but breaking from a campaign promise, the president will not call for medicare to negotiate lower drug prices with big pharma the president will lay out his drug plan this afternoon >>> the "washington post" says it has obtained documents from an anonymous source that shows at&t paid president trump's lawyer, michael cohen, $600,000 for advice on its merger with time warner. it's unclear what insights if any cohen provided at&t declined to comment on the documents but it did not challenge the authenticity at&t shares unchanged now. it speaks more broadly to the idea that there's so many moving part parts to this whole story. the companies involved, the big p

with wti in the united states slightly above $71. me, the u.s.e paypal isompany buying is swedish rival for more than $2 billion. this is set to become the tech company in europe to the public. paypal's nested up before it had a chance to go public. paypal will take over those operations in europe and latin america, opening it up to 11 new markets, including right here in france. shona: interesting. thank you. now it is time for the -- what is going on in the press. ♪ solange, joins me to look at what is grabbing headlines around the world. the royal wedding between meghan markle and prince harry is tomorrow. this is on nearly every front page of the british press. solange: it is indeed. i would like to start with something for people who do not really care about the royal wedding. it is a cartoon from the new york times. it tells news watchers to hold on a little bit longer, it's a must over. the man saying, i am looking forward to the happy ending to the 24/7 news coverage. shona: not everyone is unhappy with the royal wedding? says it the guar

let me bring you over to our wti brent chart.kind of goes through these oil prices together with the number of rigs going back online. how difficult is it to have a look at what the oil price does next? >> this is very much politically motivated. i believe the stronger relationship between the u.s. and saudi has played a key role. i think also misses trump's comments over the last few weeks, that the price of oil has been escalating, and clearly it would help the u.s. and broader economy if those were contained. shale producers are now the swing producers. they are what opec did 10 years ago. >> correct. we've got issues. we've got potentially mexico, iran, but that is where the corporation between saudi and russia -- they met last october and they are looking to meet later in june to discuss that. i believe they will find a way to keep prices contained. we have the midterms in november coming through. does the price in oil filter through inflation? do central banks look through it? thanos: it does have an impact in terms of the

over $70 a oil, wti barrel, 2014 high. peopleam hearing from i is it is really going to be a medium-term story, not a short-term story. romaine: i think so. yesterday we were looking at this fed report. it explains what they think is driving oil. a 10% rise in brent crude from the start of the year, they are only attributing about 4.6 percentage points of that to supply issues. demand, .5%. basically 6% of the price is baked into geopolitical risk. that suggests this could be a temporary rise, particularly if we get some pullback. david: it is official, walmart announced it will invest $16 billion for an initial state of 77% in flipkart. alix: they are going to include $2 billion in new equity funding and if they see and earnings cut by $.25 to $.30 for 2019 if the deal closes in the second quarter. david: this is by far the biggest deal walmart has done. talkingyou are multiples of what they have paid for jet.com or anything else. it is interesting to see how investors will react to this, when you talk about an earnings h

economy will be negatively impacted by oil when wti hits about $80 a barrel it will start negativelyeconomy and we have to balance that. i think the u.s. production growth will help oil producing states like texas and north dakota in the short term, but i think that the price at the pump effects an awful lot of american consumers and a bit of a wet blanket on economic growth going forward. that starts around 80, $85 a barrel, wti. >> thanks for sharing your thoughts with us canary ceo. >> a big rally going on on wall street right now the dow passing 25,000 for the first time in two months we're up about 300 points. companies with a lot of china exposure like boeing, caterpillar and apple all big winners, but should we trust that trade war won't be back on? plus, there's an internet meme, any pizza is a personal pizza if you try hard and believe in yourself well, coming up, we'll show you one baseball fan who really believes in himself when "power lunch" returns but for cyber criminals it's plenty of time to launch thousands of attacks. luckily security analysts and watson are on his

definitely some support for wti over 70 and brent certainly over 79 in the last month wti is up aboutup around 8. so they won't make these big moves every day, even though the momentum seems to point higher energy stocks are mixed today. the etfs are look weak, the xip lower. energy has had a nice run alongside oil prices the sector seeing a 2% gain on the week, about a 6% gain on the month. where do we go from here probably higher according to analysts, maybe not in a straight line. more reasons right now to go up than down. guys >> all right jackie, thank you very much for that we'll watch wti closely today. >>> when we come back, the battle for cbsrages on the cbs board voting to strip shari redstone of control. and we'll talk to bob wright when "squawk on the street" mebacos ck let's begin. yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. t

we'll find out more tomorrow but it's been a blistering run for wti and brent crude. back to you. >> thank you very much for that. for more on where oil is likely to head next, the atlantic counsel and jeff starting quickly here on the short term move we've seen in the oil price pulling back, only fractionally higher now on the day, having been up the best part of 2% on the news we're going to get an announcement tomorrow at 2:00 p.m. on the iran deal, is the market, therefore, interpreting this as the fact that the deal's going to go forward? because oil prices are pulling back >> not necessarily, wilf i think the initial gut reaction was book some profits. the market thought we had another three, four days to produce anxiety and get that price higher we are a dollar lower. to your point, yes, there's a little anxiety, but look at president trump's track record of nafta, any type of campaign promise he had, we are going to have a hard time seeing tomorrow anything short of sanctions being slapped on iran. right now, we are seeing profit taking the price and trajector

. >> 72 on wti. that's right and yet a lot of the energy stocks had really kind of held back, chevron and exxon just started to rally more this last month, but we think there's a huge disconnect to where the whole energy sector not just commodity price- sensitive ones. maria: we have the jobs number out a week from today a week from this weekend. the economy has been doing better. almost full employment. you have the federal reserve earlier this week sh, we are signaling that we will see another interest rate iase in june. good move? >> well it's kind of inevitable we watch the fed futures market quite a bit. the june one has been pretty well priced in so what's interesting now is december now the fed futures market point about 50% chance of that happening it would be much lower so that fourth rate hike on the year is the one that could be more material. i'm suspect if they'll really do it but it's so far in advance anything can happen, but one thing i'd really encourage viewers is when we talk about

capacity out straight to the gulf coast andhe then rest we locked in b ois differential as we call it at wti prices. >> the fceo occidental petroleum is confident that next year new pipelines will be built, but it may be finding enough qualified the issue instead. >> i think that there's -- there's still a significant amount ofndil in the gr i think what's going to be a governor on then construction the permean will be a take away sporadically, but the pipes will be built. the bigger governor on pace, p activityduction will be the availability of competent crews. so i think that's where the next bottleneck will be for all of us. >> reporter: despite those concerns though, many investors remain optimistic occidental up 12% and devin, 23%. exxon mobil and chevron have both outperformed the index. convincing others may be more difficult especially for an i s industry that suffered through two drops. we asked if the industr is doomed to make the same mistakes again or if it has timely gotten smarter? >> companies have gotten their act together. the balance sheets are in better shape, the return

there's wti crude up 19 cents.der at 2.98. i'll keep an eye on those as the economic indicators come and i think like there's another earnings season coming. >> it's not that far off. >> another on friday keep coming. >> anyway. it gives us something to do. >> it does. >> something to look forward to. in the meantime, make sure you join us tomorrow "squawk on the street" begins right now. ♪ >>> good monday morning welcome to squauk on t-- jau"squawk on e street." the dow up seven days. a lot headed our way including high-level trade talks, retail earnings, crypto and more. a stock rally heading into the second week. futures pointing

we will begin with oil wti crude up to $70.42 a barrel. my guess is you drive and gas prices nationwide are at the highest level in three and a halfyears. worldwide asia mixed doing the best shanghai composite up. the u.k. is closed far bank holiday. >>> two big name that is you know ne nestle striking a deal starbucks says it will use proceeds adding that the deal would add to earnings by 2021. nestle added to its earnings next year. he is a reporter joining us now from switzerland >> good morning. nestle is under a lot of pressure around the world so this makes them much more compatible >> is there a feeling among people you have spoke to that there was a fairly big hole in nestle's portfolio >> yes they have been building up but you think of coffee so the trick for nestle is they can then take these products globally they can sell them and including selling starbucks coffee >> did this come as a surprise >> it's not a surprise they are building up coffee >> we are going to leave it there. thanks very much appreciate it. >> it really was

let's have a quick look at what wti crude is doing.e should see a volatile session in the u.s., at one time down by more than 4%. holding on to that $70 a barrel level. we are seeing bonds in the asian region sold off today. we will be watching very closely indonesian bonds. we saw the rupiah bonds dumped heavily yesterday. let's look at corporate news in the region. forings season very much in -- focus. asahi up 7.5% in tokyo. first-quarter operating income yen..8 billion a falsification scandal, rebounding today. upsung biologics in seoul 5.8%. this is on low possibility for delisting. asics the worst in terms of number returns, operating income at 8.55 billion yen, the estimate was for ¥9 billion. down by a whopping 12%. we have been watching takeda after that shire data -- deal. david: speaking of corporate news, a company that offers staffing services and japanising is listed in -- bottom of your screen, it will be acquiring $1.2 billion. that is a cash deal. everything by the 30th of september. there it is, recruit looking to buy