haidi: what about the spread between wti and brent?been surprised -- david: we have been surprised. brent is under pressure. what's the there is sustained curbing of opec, that will affect the brent price. wti of course, over the course of 2018, we have seen u.s. reduction at about 1.6 million barrels of oil production this year. so that is certainly putting pressure on wti in terms of additional protection coming into that sphere of the market. add it up, we would expect to see the premium which didn't get as high as nine dollars to continue to rise. the only intervention again will be what opec added for production. that will narrow that premium five ork into we think six dollars. ramy: this is the seasonality function. go ahead and take a look at the june number, 10.6% is the rise for wti crude. last time it was this green, back in 2000. that was 18 years ago. looking ahead, what is your forecast for where wti and brent might be by the end of this year? only have a look at the calendar year, we have got the beauty i between $70 and

the wti spread for midland blowing out, the solution more pipelines.take a closer look at the big task ahead of ferc. >> it holds the magic key for pipeline. the regulatory commission approves natural gas pipelines, and the u.s. needs a lot of them. there's a shortage of pipelines in the northeast, where customers need power, and the permian basin in texas, where producers are desperate to get natural gas out to make room for all the oil they are producing . here are the problems, time. it can take years to build a pipeline. a big part of that is the permitting process. ferc has to get its blessing, but at the behest of environmentalists, state courts can shut down small portions of a pipeline like an area where it might cut across a stream. this can delay development for years. money. a pipeline can cost billions. typically, the pipeline guy walks in contracts from buyers. now some producers are so desperate that they team up with a private equity to secure funding. it doesn't matter what the problem is, companies want the pipelines and it is up to fe

as for the oil side of things, we are seeing wti crude up by 3/4 of 1% 74.38 the last trade for wti crude. ice brent benchmark gauge $79.19 up by 1. 1/2%. >>> big individual stories include soft bank. they're buying $2 billion worth of yahoo japan shares. after the transaction the stake will rise to 48% japan's takeda pharmaceuticals has gotten approval to buy shire. takeda still needs approval from shareholders in europe and japan. j.m. smucker is selling its baking business for $3.75 million. the company expects the sale to reduce the full year adjusted earnings by 25 to 30 cents a share. that stock basically ensuring it to go lower by 10%. >> seema, let's get a check on the other headlines outside of the u.s. philipp men na live outside of the u.s. >> hopes are high in northern thailand as the third and possibly final round of rescue operations get underway. divers are working to save the last four boys and the coach the rescue team has gotten eight of the boys out of the dark. thai official says all of them are in good health but remain in quarantine because of risk of infection. >>>

wti and brent has been flirting with the 100 moving average. falling below it.nt has settled below, and wti may well do so today depending on what happens. alix: if you had a longer-term bullish view, but if you look at equities versus the oil price, they have not had the same kind of moves as oil. whether you are looking at mlps.es, emts, what sector holds the most value if we see the rating to the upside? >> we think in 2019, international oilfield spending is going to be up massively. global spending should be up 10% to 15% next year. the u.s., given differentials, is going to tap the brakes. now almost all of the growth will happen internationally. we think you should have exposure to companies like oil of arco, neighbors, rowan. we also think u.s. midstream is very interesting. we think differentials are going to be here for a while. not just in oil, natural gas. energy transfer very much exposed to that. and owns of that natural gas naturalt -- owns that gas footprint. we also like canada. what is going on in the u.s. right now happened in canada last year

. >> $100 plus crude oil again we have a long way to go right now wti sitting at $73.50.a big runup in crude oil prices crude is up 21% this year alone. >> it was interesting. we had a record 47 million people travel on the july 4th weekend despite the run up on gas prices you have to wonder when that will have an effect. >> that's a good point we have these potential inflation influences from what was going on you're seeing higher prices at the pump, higher prices when you go to the store. all of this could certainly play a part in what you're going to see coming forward. >>> let's now get a check on this morning's other headlines nbc's philipp mena in new york. >> reporter: the 12 thai youth soccer players are out of the cave and on the road to the recovery the 12 kids and coach are in quarantine families have spoken to the boys but through a window several people in the hospital after a massive gas explosion. that's where i went. they said two firefighters and one police officer were taken to the hospital they believe a contractor hit a gas line. >>> france is moving o

let's look at oil prices wti is on its way to $75.ou went to law school, so did i, this is what i call a two-prong analysis the first prong is geopolitics the iranian president saying if the u.s. continues to put pressure on allies, we'll have a problem with some of our crude oil exports. it's not just iran and venezuela now. it's also libya. that's one thing to watch. the second prong is the seasonal factor about 40 million people will hit the road for the fourth of july holiday. you mentioned gas prices their elevated because crude oil prices are up. 2.86 is for the average now. some people say we could climb from here. >> let's find out what dan thinks have a great holiday dan, gas prices will go with oil prices how are they looking historically are we at four-year highs for the nation >> we have not seen these prices since november of 2014 as far as summers are concerned, the most expensive since then. but there's a good indication here, and i think jackie was correct that prices will head back towards the $3 a gallon mark when th

look at the oil market we're seeing a little bit of weakness in wti crude ice brent crude. 77.53 up by one half a percent let's take a look at the currency side of things. the dollar losing grounds. 1.1771 to buy a euro pounds, 1.33 in the uk driving that british pound action >>> let's talk about that breaking news out of the uk. brexit secretary david davis is out. his res egg nation comes as a big blow to british prime minister theresa may let's get to cnbc's ver search i in our london newsroom >> absolutely. this is the 7th cabinet resignation in the uk. there has been a lot of turmoil. the backdrop is not positive despite the actions in markets this morning to give you more context, on friday, theresa may did hold this all-important cabinet meeting to discuss the future relationship the uk would be looking like with the eu or when the time does eventually come. a lot of her cabinet ministers were not happy with the solution it seems like a soft brexit than the hard brexit that many were vying for. there was a lot of discontent out of there and a lot of questions over the weekend as

wti is trading in positive territory. we had some action in norway some people have been on strike.s on the back of increased exports from libya where some ports have been reopening. we've seen sterling very, very slightly stronger against the dollar we watched uk unemployment numbers due out in about 50 minutes time the euro is significantly stronger against the u.s. dollar >>> russian president vladimir putin dismissed any idea that his country interfered with the u.s. election in 2016. he said it was due to internal political games in the united states hadley gamble joins us from the finnish capital where that meeting took place after that extraordinary press conference yesterday, this was a tough interview of vladimir putin by fox news' chris wallace, wasn't it >> yes absolutely very much in line to the work chris usually does he was tough on him. he put the mueller indictment in front of him he went at him again and again, and the russian president saying again, we have nothing to do with this. this is not something that comes from the russian government. it's interesting to no

wti is high. there are specific issues.utages the canadian that means there is good to be a massive drawdown and stockpiles in the u.s. we saw the last week and that will be a scene for july. that was expected to close the and put upward pressure on global crude prices. they have really surged. i think that has gotten the market on the wrong foot. and that makes them nervous that it could go higher again. guy: thank you very much. going to be an interesting week. you can follow mark and the rest of the team. remember, we have some big days off coming up this week in the united states. plus payrolls on friday. there's an awful lot together. -- to get through. we are going to be getting later on in this session with the ceo of a liquidity edge. i think while the focus looks like it is going to be on equities back into the week, it is huge for the bond market as we geither those minutes and into the payrolls. that conversation at 8:30 a.m. london time. this is bloomberg. ♪ have got 16 minutes until the start of trading here in

. $70, $.50 a barrel for wti.thon petroleum, talk is why -- talk us through why this is a company that is well-positioned for this environment? kate: it is a company that obviously uses oil. to some extent, lower oil prices helped marathon, although a worry about the different components, types of oil and the spread. so think about the growing economy. we end up using more gas, shop it convenience stores, and that is an area where marathon benefits. they are buying endeavor atroleum, they have put in larger pipeline structure, and we think that makes them very well-positioned and attractively valued. 20.5%.yield at almost it gives investors a way to benefit from oil prices, whether they rise or fall. we think marathon is reflecting a much lower oil price even today, because it is a good long-term opportunity, not just something that is short-term as oil prices have risen. warne, thank you so much. coming up, from sun valley, we will hear from the former head google's driverless car program and from kitty hawk. whe

brent and wti are higher, as well as copper. the commodity index up three quarters of 1%.s lots going on from a drought and potential tariffs impacting prices. caroline: the dax up a percentage point, dragged lower by deutsche bank. the ceo has cut jobs, reduced , and and build capital four months later he is already talking about expanding again. matt miller spoke with him in an exclusive interview. look at the headwinds we had in the second quarter, if i look at the material transformation which we did, in all parts of the bank and the second quarter, these are solid results. withues came in, in line market expectations and some businesses above consensus. the pretax profit of 700 million is a solid number. most importantly, we have executed on other targets which we have set also. on the cost side, we have the lowest headcount in the bank since may 2010, since the acquisition. most importantly, we have further reduced our leverage, and that results in a capital ratio of 30.7%, a real solid number which speaks for the strength of the bank, and gives us now even the possi

and wti is about average.f europe has gone home, someone is still trading brent crude right now. >> and when you guys are talking to traders, what is the sentiment? that is a steep decline. it is it accompanied by, panic is maybe too strong a word but what is the concern level? >> i think what we're hearing over and over is uncertainty. there is the uncertainty. no one reallywe had a nice note from goldman sachs last week talking about how everyone is overreacting to the trade war but at this point, no one knows how things will shake out. today, slow unwinding those positions. >> a start of this year as well. thank you both so much. and --s the ceo badly amazon in latin america. this is bloomberg. ♪ >> blackrock is taking steps to establish a sales presence in argentina. sources tell bloomberg the largest asset managers preparing a small so office. it would begin by focusing on selling the company's shares products. jerry's is under attack for allowing pesticides and its ice cream, which it claims is non-gmo.

twi at -- wti at the 75 level.trong dollar, we are excited, even with everything on may holding her punches overnight with a no-confidence vote being turned back, we are seeing the dollar stronger across the board. obviously, the pound coming back a little bit because of may holding that off. vonnie: are there a lot of disagreements as to how the macro issues will turn out, theresa may and her cabinet, and on the other side the fact that wti is holding in the mid-70's? chris: so, we really think ultimately the volatility caused by all of, you know, if it is not donald trump's tweets -- he is picking fights with everybody, talking about vladimir putin being the easiest meeting -- we love that stuff. what it means is he is an advocate for the u.s. and we see strength behind that. the dollar strength, though, i think it will weigh ultimately on potential, some headwinds as far as oil is concerned. a weaker dollar means energy goes up, usually, but the fact we are seeing oil go up, the mantra has been lower for longer

. $68 for wti. $72 for brent. that spread is coming in, now just $4.ning is more exports, about 1.5 million barrels a day. the record recently was 3 million. imports are shrinking, 7 million to 8million when it was around 9. you will see that shift come in closer and closer. what happens is you will see that wti price be more in favor with brent >> we still get questions if we're producing this much oil, why do we still import so much because we need the oil to be where the refiners are it's easier sometimes to ship it to new jersey than to pipe it around from houston. >> right now the infrastructure is not there to move things around the country the way we need to to manage this production that's going to take time to build out. right now, if you can ship it in, bring it in. >> 11 million. incredible you're still with us for the other top trending stories, those not involving oil. what are they? >> a rock legend is coming to netflix. if you were not able to see bruce springsteen's one-man broadway show in person, it was great, but don't despair, it's

wti are hovering above $60 a barrel.is announced a restructuring of its regulatory agencies. the semtech companies face a tougher environment. in the long room -- in the long run though, it could benefit their reputation. ping an oneconnect offers services. joining us is hannah qiu. and stephen lamb. thank you for joining us. tell us more about the regulatory framework. we have seen a lot of changes around semtech. perhaps for the better now. what are the improvements here? industry is developing a lot. iscan see the regulation moving. we see a little stress when it comes to these online lending platforms. massive failures recently. what do you make of that? why is it happening now? development,g the we do need more regulations to protect the interests. vonne: how have investors' expectations changed? is there panic? is there a crackdown on shuttle lending? industry --banking at ping an oneconnect our major partners are banks. we want to provide more services to our customers. only 200 of the 1800 platforms --? --do you

you've got a 1%-plus move for the price of oil that's wti here and brent.pply concerns, libya, putting some production offline. sort of offsetting what is higher supply from the likes of saudi arabia, opec, and other allies at the same time, president trump publicly pressuring saudi arabia to increase production even more as, guys, we look at high gas prices ahead of the fourth of july independence day weekend, which may or may not have the kind of sticker shock that we've seen in the past, given what people are talking about, the higher production in the u.s., which helps that kind of economy >> it seems a little bit short of kind of a consumer panic right now. i mean -- >> shock >> -- obviously, we have been significantly higher in recent years, with more money in people's pockets but we're probably nudging up towards that range, $80 a barrel, let's say, translating into substantially above $3 at the pump i think, you know, it's going to get noticed a little bit of course, very well documented impact on psychology, which is that consumers register increas

if you look at the market structure, wti has been catching with brent.ing up the print curve. we knowh versus now, what your sort of talking about. talk us through that. julian: the orange line, that is oil today. the left side is delivery and you got to the backend. levelbackwardation that and steepness of that curve is the highest i think it's been in the last 30 years. which is incentivizing oil to come out of storage. the last five years have been a bit weird the markets moved like this. anticipates supply disruptions. see is the oil market tends to focus on different things. shale production is the key thing. libya is the key thing. i think we are a long way away from spare capacity being the key focus and that is what is going to come in to play longer term when you consider things like the one month 45 day oil. issuesu talk about the facing the united states right now. how quickly do they roll off? we have pipeline issues, a multitude of factors that have come into play but will disappear relatively quickly. how quickly does the market just around

wti holding about 70. can see the white line, a little bit of a rebound, copper closing at its lowest level this year, a little bit of a rebound but goldman is now cut its 12 month forecast on copper. copper is below at the moment, trading around 6200. the longer-term chart is interesting because we saw oil drop yesterday, and what the longer-term chart pointed to is the supply dynamics between oil and copper. year oil is gain $.17 this and aluminum and copper down 14% because of supply risk in oil whereas with copper, we're looking at more of a surplus. let's talk about the u.k., seeking to strike new trade deals for services around the world as part of her brexit plan. with details on the so-called wife ever today that the government scheduled to publish, the core is a free trade area. us in london. what are we likely to hear today? >> they've been briefed on that, so the proposal to spin off the treatment of goods and keep the trade flowing and solve the problem of the irish border, effectively staying

yesterday, it up -- a terrible day for wti which dropped $70 per barrel.a: the get the bloomberg first world news. in the u.s. several top republicans have criticized president trump's comments after his meeting with vladimir putin. speaker paul ryan said russia must be held accountable for rush -- the election meddling. trump question whether russia interfered in the 2016 election. he also suggested he trust putting as much as his own national intelligence director. we were doing horribly before today. dangerously. i think it was great today, but i think it was really bad five hours ago. i think we really had a potential problem. reporter: china's home prices rose at the fastest pace in 21 months in june even as the government stepped up a campaign against property speculation. in home prices in 70 cities the government gate 1.1% from the previous month paired with a 0% increase in may. it was the fourth straight monthly acceleration. in japan, newly released documents show that central bankers still expect the country's economy to grow at a moderate pace

upstream did not fully capture increase in global oil prices largely due to portfolio mixed effect around wti differential. >> phillips led theacker earlier in the week. higher oil and natural gas prices helpful during the quarter as oil was hovering close to $70 a barrel. the company bumped capitalnd exures a sign they are strong, raised production expectation. whenxxon and chevron are down they take the sector wit them the issue going forward if higher oil prices weren't the answ for oil this quarter, what will happen in august when seasonal prices dip and the environment isn't as favorabl analysts bracing for big oil to continue to struggle. even more a questions bp agreed to buy $10.5 in shell from bhp. a good time to sell ath a h price but will that investment pay off in the near term for bp. for "nightly business report" i'm jackie deangelis. >>> fellow dow component merck topped forecast an raised in particular that helped power that drug giant's profits. meg has ttot sry for us. >> reporter: a big drir of merck's strong quarter, theca er drug keytruda, sales rose to $1.7 billion. firs

wti at $73 per barrel.a: let's talk about one of our biggest political stories, the mexican elections. the mexicans have elected andres manuel lopez obrador their first left-wing president -- left-wing president in decades. that is according to exit polls showing him heading to a landslide victory. him --ction shoaaw let's get analysis to mexico city. our bureau chief joins us now. good to have you on the program. how significant is this victory? reporter: this is very significant. this is the first time a leftist leader would take control of mexico in four decades. a lot bigger than anyone expected according to the official count. he is 30 points ahead of any of his rivals. they were so overwhelmed by the lead that they conceded just hours after the polls closed. this is a historic event for mexico. manus: we have a tliv on the go covering it. it will be about the appointment of the finance minister, whether he gets control of congress, and his plans for the economy. nafta, the critical pillars of what mar

, though it is very -- barely positive -- for the record, it should be noted down for a second day, wtibut still -- it had, quite a bit from 66 unchanged on june 20 -- june 21 and is now above the $73 per barrel. we will keep an eye on the movements. ofare approaching the fourth is the official broadcast event. matt miller will cohost here we brought you back to berlin for this. >> it is an amazing event. halfing mean people up and down the bank of charles here. an incredible music event as well. one of my favorite bands of all time, the indigo girls, are playing here. if you're my age and you went to , anderal arts school they're playing a fight song. she has won an and me, a grammy, and oscar, and a tony. one of very few people who have done that. we have the new one here as well. natalie cortez. it will be a great gathering of people and a great celebration of america and the boards of july. watch it on bloomberg television and you can stream it on boston.com. this is bloomberg. ♪ scarlet: from new york, i am scarlet fu. investigations into facebook continue. now focusing on the comp

this is wti, it went below $73 a barrel and had gained earlier the eggfore taking up lower.a putting that saudi arabia agreed to u.s. demands to punk more oil, so the pressure from president trump making its way to saudi arabia. in terms of the global picture, let's look at global macro movers. yesterday, there was a sense of a risk off with risky assets and green across the state havens of commodities, gold and sovereign bonds. today, a much more mixed picture. anything and that is in deep red, for instance, vietnam stock index indicates a bigger loss, off by 4.2%. in currencies, a weaker dollar with the bloomberg dollar index off by .5. anything green, the mexican peso, all higher. gold is higher by 1.1%. the u.s. department of justice is looking into glencore, the doj subpoenaing the company for documents related to possible corruption and money laundering in africa. let's bring in our bloomberg reporter mark burton. it has been a problematic year for glencore. this or these problems really dates back to acquisitions involving cobalt assets in the congo, and its partner i

. -- and wti take a leg lower. amoa is here, fully a manager for jpmorgan.dollar, how much of a risk is it ? it depends on why we are having to dollar strength. if it is because the u.s. economy is well with, the fed is hiking, but if it is less of a risk get other central banks will be forced to tighten. if we are having dollar strength toarly as a flight st -- quality, that is more concerned. mark: you are leaning on the first case? diana: i would say it is a risk of two halves. when growth started to take a hit, we saw the fast leg of dollar strength. what we have seen in the last two weeks is the wrong sort of strength because of the rest of the world is concerned about trade. right now, we are getting a bit of both but not a mixed that is good for aggregate economies. vonnie: what do you imagine will happen with the curve? more people are suggesting that we may have an inversion but it does not mean necessarily in the session. diana: i tend you -- to agree with that. at this point in the cycle, it is very normal to see a flattening of the yield curve. i

inventories,d of one barrel of wti is trading at $68.62.s is bloomberg. ♪ his is bloomberg. ♪ caroline: this is "bloomberg markets." from a sunny city of london. vonnie: 80's raining here in new york. biggest look at the stories in the news. general motors is now the highest company to fall victim to trumps trade war. with steel and aluminum, material costs will be a $1 billion headwind for gm this year which is twice what the company expected earlier. shares of fiat chrysler are falling today. targets the financial after disappointing sales in china. that is a significant challenge for the new ceo. you have a five-year plan to double profit and extent in china, the world's largest market. and boeing boasted quarterly profit and sales that beat estimates. but the company reported a cost overrun as it appears to present to the u.s. air force. produce cash flow twice of what analysts had expected. ryanair has had enough of labor strikes in ireland. they will cut the labor force by 20% through the winter. ryanair says the strikes have had a ne

you can see at least for wti catching up a little bit but brent crude falling just a little further. let's have a look at some of the impact there. the japanese yen this is how it has been weakening against the u.s. dollar. not much change to the euro versus the u.s. dollar. is chinese offshore yuan down the most sense devaluation back in 2015. the turkish lira continues to take a pounding as the u.s. dollars climbing to a record against the lira. trading in new zealand is just getting underway. off to a rocky start. aussie dollars are finding a sea of red. let's see how that pans out. let's talk more about trade. that is a big story of the moment. high-level talks between the u.s. and china have ground to a halt as the trump administration threatens to escalate the trade war. we're joined from washington. china and the u.s. have seven weeks to pull back from an all-out trade or. there doesn't seem to be any movement so far. what are the chances we can avoid? of aey are at a bit standoff. there happens low-level talks but there is nothing going on in any formal or high-level negotiat

that meant that refiners were moving away from canada and toward wti.r time, we expect this to blowup. not enough take away out of west texas until the end of 2019. a think that could go out to $18 to $25l beer -- a barrel. brent att is like a $80, wti at $50. >> it is the magic number for u.s. producers. alix: thank you so much, ed morse of citigroup and lori heinel, state street global advisors. up, lloyd blankfein is said to be naming david solomon as his successor. more on this in wall street beat, at next. this is bloomberg. ♪ >> this is bloomberg daybreak. i'm kailey leinz in the green room. , bank of, walter todd america shareholder. alix: we turn to wall street be, were we cover three things. first up, the deutsche bank surprise, it surprises investors with second-quarter earnings higher than analysts expected. old wall street to new wall street at goldman. will preparenkfein to step down and is said to pick david solomon as successor. the world cup data. we are done in predicting the game's outcome. joining us is jason kelly and lisa abramowicz

mark: right now, wti crude is falling. now by bloomberg's energy and commodity reporter. there is so much going on. >> there certainly is. mark: today, i spoke of saudi arabia cutting prices and raising production. will that appease the u.s. resident? -- president? >> what will a piece of more than anything is this u.s. stock going against market expectations and causing prices to sell up shortly. whether he can think saudi arabia for that just yet is hard to say with the data just having come out, but saudi arabia is listening to the message trump has sent, not just in the tweet overnight but the last months about opec in oil prices and saudi arabia is listening. they have increased production. a couple of weeks ago, it increased to record levels in july. have theficials differential between benchmark oil prices and how much saudi arabia's oil spills for comic sending a message to markets they are ready to buy more. mark: is there an expert capacity in the market is something goes wrong? is.: right now, there if all the things that go wrong could go on, probably not. the

let's talk about this oil move because we have brent and wti on the rise. >> what is interesting is theng to narrow that spread. the demand has been strong for crude oil recently. inventories have dropped up quite a bit despite rising production out of the u.s. and saudi arabia. are rising,they prices are rising and demand is picking up. i expect crude oil prices to move up to about $73, with even more receptions on inventory and a possible conflict escalates with iran. tengion seven building recently. we could see them move up to $80 by year-end. on from one to another, copper coming off its lows. we have about six cents of a percent. >> copper has been weakening quite a bit especially of china. the economy seems to be tightening up. is threat of a brazilian strike and what that might do is it might be the catalyst to start to push copper prices up. continuing to selloff copper. we need to see a justified move before we see longs jump back in the market. oil, copperaroline: in the u.s. dollar. i'm looking at function that shows the different currencies and in a moment. dollars on the d

vonnie: and there is the spread between brent and wti which must have benefited cme.ow will that impact your business in the next few theters and along with exports into the european union following yesterday's news? terrence: as you know, the u.s. went from barely producing any oil to roughly 10.5 million barrels a day. our consumption is 18 million barrels a day so we are becoming more and more self-sufficient when it comes to oil. the export ban was lifted and we were a big part of testifying why that was a good idea. this has become a global benchmark for the pricing of oil and we will be exporting it to the european union and other places. i think that is exciting for the energy business and it does continue to evolve. has gone oning that here in the u.s. has allowed us to become much more energy independent and allows us to export a product that we never had in the quiver of products before. about thelet's talk bitcoin future you have and i'm looking at how we are seeing an increase in the future volumes and they have been picking up of late. to the $8,000 mark.

wti got to $75 because it looked like there was no relief in sight.t didn't seem they were going to do anything about it. they were going to stick to the status quo it was game over for the opec -- >> you had a good conspiracy theory on why the saudis didn't want to play ball. do you want to share that or not? >> about the saudis? >> yes why are they so inclined to do this >> because they're trying to curry favcu curry favor with him they believe the president can ease the listing standards with the stock exchanges. >> is it that or is it iran? there's a lot of reasons >> i think there's a mutual squeeze on iran. the saudis are grateful to president trump for pulling out. >> can we go to the listing idea does anybodybelieve it's plausible that the president of the united states would have influence over the new york stock exchange >> yes or -- >> blocking sinclair or anything like that. i don't know >> maybe the answer is yes >> anything is possible. >> the law would seem to suggest otherwise that he does not but the saudis were certainly under an imp

hey michelle. >> oil prices taking a hit down 4% wti tropic under 70. 70 when just last week we talked about brent may hit 80 a big sea change here. the main reason for the move treasury secretary mnuchin saying some countries might get the waiver on the iranian crude. the goals to get the allies to zero but the white house acknowledging it may not be possible meantime supply issues in libya getting a bit better also the speak of the summer driving season behind us now so enough reason to turn the tide here. >> jackie thank you. >>> drug prices continue to rise even with warnings from president trump. look at this headline in today's "wall street journal. am bee yn price rude awakening some drug makers boosting costs of products despite mounting pressures are the hikes sustainable? joining sus elliott wilbur p raymond james the analyst behind the study mentioned in journal thanks for joining us. >> good afternoon. >> when you look at what president trump did with pfizering the bully pulpit to get fiezer to roll back the price hikes for the month of july

as for the energy strength, take a look, because we have european crude, and wti going higher.xxon mobil and chevron boost in the s&p -- boosting the s&p 500 and the dow on the year. oil up 20%, the energy sector up less than 10%, so we have a little bit of a catch up. we have seen that in recent days, what oil has been up -- were oil has been a modestly and energy really leading. let's take a look at the dow. we will see the strength. this is the first four days straight -- i will throw it back to you. vonnie: yes, capitol hill. the supreme court justice nominee is on capitol hill. he is meeting with mike pence, the vice president, and also due to meet with the senate majority leader, mitch mcconnell come on the hill this afternoon. cavanaugh arriving on capitol ugh arriving on capitol hill. mitch mcconnell saying the micex should not ask him how he would rule on hypothetical cases, because he is not seeking a political office. once again, the meeting between vice presidents, the senate majority leader, and brett kavanaugh. mark: theresa looking for support for her brexit plan

stay tuned wti oute'll .d.c..be♪ may the rest of our lives... be the best of our lives.re within my soul ♪ my soulmate may ly be carbs.neal must be wine. yeah. >> yellow andead colors. the earrings. >> w t sta kelito andgiin iro reallyut i ts show directwitter. olony december 15thighteen soldri 2 oy cannot watch movies onr you whoe .>> how are youet tfl. leme moi there. that gs true. i'm not ild eut option. >> hn bryanad would -- >> go fund the account. >> like me no wtatin ideal but my only opportunity. >> aem t ahe show so i'l there. at>> i okay.tch call me manr jake canh bradou b aack. gus vansant was giving interview for indy wire for new movie.dide ck ns mvaanountne h a working on ie we needed a strong cast like pate damtebrad n andrioic lik dap pate damtebrad n andrioic lik dap ♪annhaa why sh mg)op info whoo-hoo! ew ou were looking for. marshalls is never boring and always suring. (horn nking) h.ore information. and always suring. reported side effects include vomiting and itching. ♪ >>straight ahead, mixed messagmessages. president trump now says he election meddl

the s&p 500 also lower by as much as we had a rebound in the soaredsector after wti past $75 per barrelst time in 2014. reversal after some comments from the iranian president. we are also seeing the nasdaq closing lower on this shorter trading day. got six groups higher. the big decliners off by 1.4%. financials also resume their recent weakness. a chine to focus on

energy, wti falling today after president trump piled pressure on saudi arabia to increase output.he s&p 500. tariffs and even tesla, falling after surging on those production numbers. making history. mexico's first left-wing president and a signs of win for populism. a campaign of anger over incessant crime and poverty. as investorsrsed grew wary over the future of mexico's economy. for more, we are joined by bloomberg's mexico city bureau chief. give us the details of how the election went for him? >> it went very smoothly and quickly because the range by which he won was enormous. as of now, we are looking at a 30 percentage point lead over his nearest rival. everyone conceded all of his rivals conceded after the election. david: when do we get a sense of where he is headed. he is known to be a leftist, but he came to the center. where do we get a sense? whoe has already mentioned we would pick for his cabinet back in december and then he reiterated yesterday, so there is not that much surprise but we have to wait and see how we actually rules which will not come until december.

we had wti at 75 on monday.thinking it may even climbed to $80, an area we have not seen since 2014. when we look at that non-opec deal, some argument saying that is out of date, given these instructions we are seeing at the market. they say they will release as needed, but it may come sooner. >> i don't know, what are the estimates, very quickly, on what might be coming off line into the market? >> we're looking at about 1.3 million barrels a day at the moment. but youcan plug that, are plugging holes, you leave yourself vulnerable for another supply event. it is a precarious market moment. it is hard to see prices dropping. it looks like there will be a lot of strength, which fades into gasoline, which will fade into more rage from trump. >> if anything can complicate a lot of things, it's really high oil prices. thank you. our asia energy reporter. could be pushing toward 80 bucks. let's have a look at listings coming up. is all the buzz, but another listing in the works above it.ld tower details coming up ne

the s&p 500 also lower by as much as we had a rebound in the soaredsector after wti past $75 per barrel for the first time in 2014. reversal after some comments from the iranian president. we are also seeing the nasdaq closing lower on this shorter trading day. got six groups higher. the big decliners off by 1.4%. financials also resume their recent weakness. a chineseo focus on court temporary banning the memory chipmakers chip sales cutting the u.s. company off from the world's biggest semiconductor market. ais is all according to taiwanese chip company. we will discuss this further with ian king. glencore off by 8%. the subpoena from the u.s. toartment of justice related congo and venezuela from 2007 to the present. the airlines fell 1.6%. citing near-term catalysts in its downgraded talked about a world of heightened macro economic and geopolitical risk coming economically sensitive high beta stocks like airlines usually underperform the broader indexes according to deutsche bank. campbell soup of a 1.8%. -- is in talks with family members who control 40% of the company's shares as

wti trading near a one-month high, inching toward $70 a barrel.ct will it have on energy earnings. on theck out gtv bloomberg, we can find all the exciting charts you see here come also check out things like oil, which we will be discussing next. from new york, this is bloomberg. ♪ >> since september, 145 million people worldwide has played fortnight. it has made the creator a billionaire. the wildly popular fight to the death -- fight to the death battle royale is played up cecily from everyone from pop stars to pro athletes. in nine months, the game is estimated to bring in $1.2 billion in revenue. windfall for ave soft-spoken programmer who made an epic game. analysts say epic is likely worth it billion dollars. what makes fortnight so successful is not just popularity but financials. it has some of the highest rates of revenue per user in the industry, remarkable considering the game is completely free to download. >> that game has been the source of so many fights in our household. >> we were just saying. >> that is tictoc streaming live

at the same time wti, to which we are exposed significantly, only up 40%. the gas market in canada, 50% down and 7% down. so there are a number of moving parts that make our earnings harder to understand than we ourselves would like as well the key thing, of course, is all about cash if you look at cash flow performance, you exclude working capital effects, which are always there, we had an 11$11.6 billion quarter, that's the best quarter since the first quarter of '14 strictly speaking, you need to add back the cash that we put into the l & g hedging program, which is00 mi 8$800 million this gives me the confidence that we're at the point that we can start our buyback program. >> for more we are joined by jason gamel of jeffries. the ceo going through some of the strength there's of this report we are getting a downtick in shares today do you think this is down to that profit miss >> i think you're right. the profit miss is the reason the shares are down. i actually agree with ben that the cash flow number is the more important one for determining how the

brent trading a bit stronger almost back up to the $80 mark wti a tad weaker on the day. >>> bp and conocophillips agreed to a deal to swap energy assets which will see bp increase its steak in a major north sea development. conoco will sell a stake in clearfield to bp where the british oil giant hopes to increase production to 200,000 barrels per day by the end of the decade in return conoco will get the entire 32.9% stake in the oil field in alaska. >>> coming up, trade war fears continue to spook asian markets after declines in u.s. tech stocks heighten worries over impending tariffs >>> welcome to "street signs." i'm joumanna bercetche these are your headlines european markets open in the red as trade worries weigh passing a shadow over asian equities despite a positive service sector pmi from china. >>> the efo director tells cnbc that the world trade organization should stay renewtrenewt -- reunited in the face of tough trade rhetoric >> the message out of the white house is attacking in a sense all wto members, they should stand together fighting this off. >>> washington gives as beijing ta

wti as well as brent both falling about 4%.lipping the boards, there were things after hours we want to take note of. most specifically with the nasdaq. take a look at that. it is the outlier in terms of its fall. .25%.sdaq down that is what because of what happened with netflix, missing its estimated subscriber additions on the order of one million subscribers for the second quarter. not only that, looking ahead to the third quarter. netflix is expecting one million subscribers less as well. price in after-hours trading fell by upwards of 15%. this of course after a rally we saw of more than 100% year to date. tepid red sea seems to be spilling over to us here in asia. trading in new zealand getting underway. looking flat.ou it is off by a couple points. the u.s. dollar weakened against most of the major currencies. the aussie dollar, up -- a bit of an outlier. around $.74. to be futures pointing lower by 2/10 of 1%. you mentioned commodities taking a bit of a beating. let's get into that more. gold was off again. oil slumping

the differential between wti and different nial in the second mot about brent. and energy stayed strong i think faang, large-cap technology continues i think that's important and lastly, i think the conversation to disrupt the investor at home is going to be there. i don't know what it's going to mean i think we're going to approach the yield curve inverting and i think everyone is going to panic. >> joe, i look at the price of oil, 75 bucks, i don't think these names have kept up -- >> the grind. >> even if we grind at 75, the exxons and chevrons -- >> to your point, pete, i think the sentiment is suspicious of gains in oil it believes that the feds are transitory, and i don't think that is. >> you're telling me that the yield curve is going to invert >> it just seems so logical. i don't know necessarily if that's the case. i don't. i'm not sure that a yield curve going to flat or inverted. >> we're worried about the 0.2 spread, the lowest since '07 >> prices go where the most pain would be that's a spread of 30 basis points, right? it seemslogical it would put

the asian equity session down by ,hy of 1% and not just equities we are seeing metals go lower. , wtiodone -- down down despite the latest data on stockpiles in the u.s.. not much move in the yen. a little bit of comfort to investors as they look at this picture in equities. not much -- not so much in the fx market. manus: that contention factor seems to be muted. new have named a nonexecutive chairman. martin saluna. the senior independent director has leading the search, sainsbury is going through a few changes, he will join the new executive chairman from the first of november 2018. he will work closely with david tyler and sainsbury's anticipates he will assume the role of chairman in march 2019. there is a few other things to consider. sky and sainsbury's will be in focus as the morning goes on. let's get to juliette saly. she is in singapore with the bloomberg first word news. the u.s., the trump administration has pushed ahead with plans to impose tariffs on an additional 200 billion dollars in chinese goods by releasing a list of targeted product. china's commerce ministry has

is below the ten-year it's been closing in the oil market not seeing much of a move up slightly for wticrude more on the market and your money in a moment. right now, the corporate story that is shocking the wofrmtd long time ceo sergio marchionne is stepping down shares are falling but there are many questions let's try to get answers and phil lebeau here on the story. this is a big surprise. >> it's huge not only a surprise, brian but it also takes a company that is, to a certain extent, at a crossroads in terms of looking at eye future with a merger or partner. that's something sergio marchionne has been working on that's left up in the air to the new ceo. he was replaced by the fiat chrysler board on saturday he will not return to work the reason, a rapid decline in his health following surgery about three weeks ago. that statement from john he will kin who is the chairman of ex or which holds large stakes in chrysler ferrari he said it is with great sadness to i have to tell you that our ceo who recently underwent surgery unfortunately experienced kbli indicaticomplit worsened in r

currently looking in the markets today, we do see some reprieve, but wti is still lower. >> here'she going the thing right now, it's summer trading. we are seeing some of these happening on very light volume, really exacerbating some of the volatility that we're seeing in the spike up and selloff. right now i think oil is probably going to tread some water here, no pun intended. i think we will see west texas to 71probably in the 70 range. i think we got too much of a selloff. brent and we will see it in that 74 to 75 range. what i really see though is the combination. right now this that is what, $3.70? i seen it widening back out a bit. certainly not anywhere close to the $10 range that we saw a month ago, but i think it has narrowed to much, too quickly. vonnie: -- caroline: scott, earlier today we saw them say it was a buying opportunity in oil. have they been taking that? what are they waiting for? >> i think they're waiting for other geopolitical tensions, frankly, to ease a little it. first and foremost with that is what's going on with tariff and trade talk, even though it's