wti falling 3%. that weighed on energy stocks. we are seeing wti move higher by 0.4%. brent crude outperforming by 0.8%. gold is back in the red. we had seen a recovery earlier after gold took a dip on the fed comments. we will be getting deeper into that trade coming up on the show speaking to eugene weinberg from commerzbank. for all you gold bears and bulls out there, stay tuned. >>> let's bring you up to speed on some stock movers today. vivendi said they are raising their stake in berlusconi's mediaset taking its holding to 20%. the move prompted carlo calinda to warn the conglomerate against a hostile takeover of the italian media company. the french media group built up its stake this week from an initial 3%. shares off about 7.5%. >>> mondelez shares spiked 12% in extended hours trade amid speculation that kraft heinz is looking to acquire the confectionary company. mondelez stock has since pared some initial gains after reuters reported it has not received an approach from kraft. mondelez has been under pressure from william ackman to speed up revenue growth o

about 10% of gains for wti over the course of the fourth quarter. following that opec supply cut deal. we're up again today. 0.7%. 54.34 for wti. >> the book is about to close on 2016. so that means cnbc is getting out the play books with some prediction foors number of sectors in the new year. today we're examining politics and what could happen under a new administration in washington. here's john harwood. >> reporter: if the 2016 campaign caught us anything, it's the unpredictability of everything about donald j. trump. anyone making predictions about his first year in the white house and not to mention those of us who thought he would never get there in the first place better do it with humility. in 2017, president donald trump will sign tax reform into law. but it won't be comprehensive tax reform of both the individual and corporate systems. he'll focus on international tax reform with the goal of returning corporate profits to the u.s. and raising money to finance his infrastructure spending plans. at least one of president trump's cabinet pi

wti up pretty much flat today, but significant from the lows we hit in december and january. 52 on wti and why energy is the best performing sector year to date. treasury note just off the highs we hit last thursday at the back of the fed rate hike decision. we hit 2.64% then and just below 2.64% today. gold prices to round things off this a little bit softer. >>> investors are also paying close attention to some geopolitical news. in berlin, germany, 12 people were killed and 48 injured by the truck that drove into a christmas market last night. authorities are now calling the incident a deliberate attack. german chancellor angela merkel speaking in just the past half hour. she says the attack may have been perpetrated by a migrant. no conclusion there. merkel said this would be especially dispicable to many germans who are working to help refuge refugees. urging the german public not to give into fear. she said the whole nation is united in mourning and she is heading down to the site of the accident today. >> she is, indeed. she said germany, though, should not be paralyzed by terro

wti crude sitting below 54. brent below 57. both stronger this morning. >>> as 2016 comes to an end, we're looking back at our favorite moments on "worldwide exchange." it's been just about a year since sara and i became coanchors together. let's say we've had plenty of fun along the way. >> how fresh we are on "worldwide exchange." >> god, i'm excited about the rest of the show now. >> wilfred and i had a big fight over our favorite boy bands. >> our favorite song on a friday. ♪ >> how many selfies do you have to upload every day? >> you do, five? six? >> on average. >> selfies of yourself? >> selfies of wilfy. ♪ >> i think my face looks like an ape. >> take it off the screen. >> he's taking the mannequin challenge. ♪ >> i like facial hair. >> i used to have a big beard, blond hair back in the day. >> that's a tbt photo. >> an elite dating website called beautiful people.com has been hacked. oh, wilfred. it's like so unamerican of you. >> below naught 0.1%. >> 0.5%. >> you're eliminating naught. >> we're now bang on. ban

for the whole week, wti down 1.2%. the second negative week in a row, albeit off the back of a strong week three weeks ago. the fact we're above 50 is progress for the back half of the year. ten-year treasury note crossed above 2.6 yesterday. 2.64%. just moving the other direction a bit today. bonds being bid up in terms of price yields, but certainly yields have moved sharply higher since the fed meeting. the short end of the curve hit a why not seen since 2009. overall bonds generally seeing prices rise today. dollar very strong yesterday, up 1.4% against the broad index of currencies. the euro hitting a low against the dollar not seen since 2003. 103.64 was the low of the day yesterday. the euro bouncing back nicely by a half percent today. a currency pair to focus on. that word parity being mentioned. a long way to go, 4% or so, 5% or so in order to hit that. elsewhere, just a bit of dollar weakness against the yen and the pound. gold prices to round things off are a little bit higher. 0.6 0.6%. >> where do we go f

the wti has reached the highest level since october. in asian trading hours, it is holding firm at that range currently trading at $49.26. meanwhile, brent crude futures broke above $50 a barrel. investors here in tokyo are are riding the higher oil prices and nikkei average surged straight from the open. the index is now trading up by 1.7%, a jump at the nikkei trading at the highest level since january 4th. investors are buying a wide range of shares. oil developers and distributors in particular are soaring. major exporters are higher on a weaker yen. let's take a look at currencies now. the dollar has topped 114 yen for the first time in more than eight months. analysts say investors regained their risk appetite on the opec agreement and are selling safer assets like the yen. the size of opec production limit was a positive surprise for traders. solid economic data out of the u.s. is driving the dollar higher. the adp private payroll report in november came in stronger than expected. all right. let's take a look at other markets ope

today down in terms of wti by a similar amount. the international gauge of brent is slightly positive. generally speaking, up about 10% for the quarter for oil. for the year, up 46%. >>> a look at the dollar, which was stronger yesterday by 0.3% against a broad index of currencies for its third positive session out of four today. it is giving that up. decent move for the dollar south against all of those major currency pairs. big move against the yen. gold, has had a decent bounceback is up again today, 0.11%. 1,148, still down since the election but up for the year as a whole. >> add it all up, you have a 14% gain for the dow, 10% for the s&p, 8% for the nasdaq. this is a pause. this is a pullback. hard to tell if this is anything more than that. there was no real catalyst for the selloff yesterday. saw the vix go above 13, gauge of volatility. nothing alarming, just maybe normal correction of some gains that we've been seeing. some year-end portfolio rebalancing. >> nothing alarming. interesting to point out two particular factor

up again, about a half percent. 51.14 on wti. sara? >> we need a trump dashboard, softbank shares trading higher, boeing lower. tracie potts has the latest on the trump transition. >> reaction to the boeing situation, where trump called out yet another big business and the president-elect has a message for congress about his now official nominee for secretary of defense. >> "mad dog" plays no games, right? >> reporter: it's official retired general james mattis is president-elect trump's nominee for secretary of defense but only been retired for three years, so mattis needs a special civilian waiver from congress. >> i look forward to being a civilian leader. >> reporter: late tuesday lawmakers put the waiver on a fast track, tieing it to a spending bill to keep the government open past friday. >> oh, if he didn't get that waiver there would be a lot of angry people. >> reporter: big businesses not angry but anxious after trump tweeted a multibillion contract to rebuild air force one should be canceled. boeing replied they'll del

wti sitting at 53.7. so that's spurred oil prices. and energy sectors are higher as we look at european trade. we're seeing a little bit more muted performance than we saw last week as you can see some declines across the mains there. this comes on the back of big gains last week with the dow up 6.6% for a week as a whole. the ftse up 4%. france up 5%. a little bit of profit-taking there, somewhat expected. the asian trade was more negative. shanghai, in particular, was down a couple percent. and hong kong was down 1.5%. japan, though, managing to gain about 0.8% in the face of a stronger dollar against the weaker yen. >>> and as we take a look at the broader markets ahead of the fed meeting this week where the market is expected with almost 100% certainty we'll see an interest rate hike. you can see here the yield on the ten-year just slightly above 2.5%. last friday, december 2nd, we were at 2.39%. so we have run over a .10% in just over a week. and if we can take a look at the dollar, it was marginally lower earlier this morning ag

we have seen wti hit that 17 month high on that historic opec and non opec deal. keep an eye on the airlines as well because some analysts have said we could see them open lower on the higher oil price. then, a breakthrough for philips, agreeing to sell a majority stake in lumineds. this is after an earlier sale to a consortium led by a chinese buyer fell through because of u.s. opposition on national security consideration. finally, watching italian banks. i have monte paschi, up 5.7%. to equitiese a debt swap in the coming days, pressing ahead to avoid a state rescue that would impose losses on bondholders and shareholders. guy: thank you, nejra. paolo gentiloni hasn't asked --paolo gentiloni has been asked to replace matteo renzi. the ecb rejected banca monte dei extra time toor tim implement the capital increase. give us your thoughts, marco. we have a new feminist or and new issues within the banking sector. what is job number one for the new boss? [laughter] >> wow, a lot of questions. well, a week and a half since the referendum. the outcome was a resoundin

to discuss between wti -- the discount between wti delivery has narrowed sense opec announced the first production cut in eight years. checking on first word headlines from around the world, here is heidi. heidi: china's official factory gauge height to the highest and 2014. rose infacturing pay november. is 60.9.n gauge below estimates. risks from financial the red-hot housing market. donald trump's nominee for treasury says he will be -- there will be no absolute tax cut for what he calls the upper class. he tells cnbc that higher income tax reductions would be offset by fewer deductions. he criticized dodd-frank and said he will label china a currency manipulator not warranted. he says tax reform is its overriding priority. the fed's latest beige book based on anecdotal information connected between mid-october and the 18th of november shows expansion andomic retail, real estate, and business services. a rising collectively with little inflation. election related uncertainty in some states even after donald trump's fixturing. s embattled president may have bought herself sometime aft

and wti pushing closer to $50 a barrel. can we break out of this range? we'll see. 0.61% up. >> europe up as a whole about 5%. it was up 9% yesterday. it ended the month in positive territory. it highlights the negativity we had coming into that opec deal which was rounded off with positive sentiment. europe at this hour, manufacturing for november coming out at 53.7. that was in line for forecasts. if you look at the individual country numbers, although none were blowout positives, it is a surprise to see europe trading so negatively. the euro higher off the back of the numbers. we're looking at half a percent on of declines at the moment. for the month as a whole, we saw the dak is down a little bit. french index a half percent. ftse 100, down 0.64%. let's have a look at asian trade, two separate surveys coming out and topping expectations. we have gains across the region this morning as you can see. shanghai up 0.74%. nikkei up 1.1%. and whether there is a need for temporary capital control. it is driven by strength of the dollar as opposed to domestic

we saw wti ending yesterday up $.22 per barrel and brent down by $.29. that's an interesting reaction, given that we have the natural gas pipeline that is supposed to be being built between russia and turkey -- we will have to see whether this derails that aoject to stop yousef: from technical perspective, how long can we expect the impact to last? this is the other big question right now. markets have a tendency to shrug off geopolitical and urgency, not much has derailed the euphoria that we have seen in markets. when it comes to the impact of this particular incident, there is a rational explanation for why markets might not get excited, and that's that a lot of people don't expect it will necessarily derail the rapprochement between turkey and russia. i was looking at a eurasia group for i came on, saying that this will be proof as to why the two sides need to cooperate more when it comes to terrorism. on that basis we could see the market reaction proved to be short-lived -- we have already seen selling pressure resuming this morning, we have seen g

and they are down about a percent or so today. 52.3 for wti. the dollar slipped a bit earlier in the week. broadly flat yesterday. today not doing much. all eyes on the fed. particularly the forecast for next year. gold prices this morning are a little bit positive, up about 0.3%. >>> to today's busy agenda it's dominated by one event, that would be the fed decision on interest rates it comes at 2:00 p.m. eastern time along with those members forecasts. that's followed by janet yellen's news conference at 2:30. the countdown clock for cnbc is up, 8:53.40. stay here on cnbc for all of it. >> you don't have to watch the clock for all eight hours. >> you do. you have to watch the clock for eight hours, 53 minutes, 32 seconds. 8:30 a.m., producer price index a nice read on wholesale inflati inflation. retail sales at 8:30. 9:15, industrial production, 10:00 a.m., business inventories. >>> president-elect trump will hold a roundtable summit with tech leaders today. among the intended attendes aes are tim cook, sandberg, jim bay soe bezos. one noted

wti 51.29. brent up almost a full percent, 54.41. the dollar has been the center of the action post-fed. dollar/yen, strong dollar, weak yen. th almost at $1.18 on dollar/yen. back down to 1.0495 on the euro. even the pound is weaker against the u.s. dollar, 1.2516. if you add it up, the dollar index the highest several since 2003. this is always the risk when you have the biggest central bank out there raising rates and forecasting it might raise rates more aggressively. that makes the dollar assets more attractive. money pours in. >> quite the opposite from the ecb last week. will it be the opposite from the bank of england at 7:00 a.m.? that will be important for the pound brpairing. >> gold selling off a bit. down again this morning, 2.2%. finally yesterday's move, what was expected, investors were focused on what janet yellen had to say about the future, her t outlook somewhat cautious. >> all the fomc participants recognize that there is considerable uncertainty about how economic policies may change and what affect they will h

wti crude, 53.52. ice brent crude, 55.53. ten-year note yield, seeing a slight pullback. 2.55% the last trade there. the uptrend intact for yields but a hair of a pullback. as for the dollar, euro, 1.0395 is what it will cost you to buy the euro. that's dollar weakness. the yen, $117.48. gold prices, just bit of a move higher. futures 1,135.09. >>> i told you about the italian bank news. banco monte dei paschi shares getting slammed. trading has been suspended, this after they warned liquidity would dry out in four months versus the 11 months they previously stated. they are working to raise state capital. >>> shares of nike rising on better than expected earnings and revenues. on the conference call, executives went to great lengths to explain to investors this metric is not a good snapshot anymore since it only shows retailer demand, and nike invested heavily on selling products directly to consumers. >>> back to our quest to help you make some money this morning. we continue our monthly sectornomics series with a look at m

wti below $50 a barrel. specifically it is 50.03. so above $50 a barrel again. below it this morning. oil prices yesterday slipping back. the ten-year treasury note has paused. it's paused its rise, pulled back. 2.37. settled below that 2.4% level. the rise just tapering off. the dollar has certainly changed direction in the last week or so. five sessions out of six we're looking at today for dollar weakness against the broad index. of course for the week, week as a whole last week, the dollar was softer, and softer again today. only a small turnaround from the post election rally, but worth noting. a half percent of declines against the pound today. gold prices which have been soft since the election, are flat today. 1,176. >> the ecb will be the focus today and the trump rally continues. what's worth highlighting here is the sector divergence, really extreme when you see moves like healthcare yesterday finishing lower, beaten down by biotech after some comments trump made to "time" magazine in his person of the year article, that he would crack down on drug pr

you are looking at wti trading at $51.26, a similar picture for a lot of the others. this is bloomberg. ♪ yousef: welcome back to bloomberg markets middle east, live on bloomberg tv and radio. pain, after five years of relief finally in sight for theodity bulls, because bloomberg commodity indexes set for its first annual gain since 2010. to our asia over commodities managing editor, standing by for us. what's behind the resurgence and commodities? it's sometime said about commodities that the best cure for low prices is low prices, and that is alluding to the cyclical nature of the market. that is all we are seeing now. prices fall, producers cut back on investment, more spending on production. supply tightens demand increases, and they read bank. after five years of declines we see the producer response from energy to metals, and this is leading to a rebalancing of the market. floor undering a prices and we are seeing the rebound in oil, and metals across the commodities. issef: what's fascinating when you pull up one of the key functions, the commodity overview,

we're just shy of 53 bucks for wti up about a quarter of a percent. yield slipping a little bit today having crossed 2.5 yesterday. story of the last week or so has been that the bond sell off in terms of prices, increase in terms of yield have started again having paused for a week or so and that's one of the reasons that equities have had extra stimulus money coming out of bon bond. dollar was soft yesterday. if we get the rate cut from fed, 92% of investors expect a 25 basis points rate hike from the fed. has the dollar already run up in anticipation of that and now will we see softness when ice delivered? we'll have to wait and see. that fed meeting begins today, decision tomorrow. gold prices down about half of a percent today. >> if we want to look forward the fed the key for investors is going to be parsing the signals in the statement and in the yellen news conference. a lot has changed since the last fed meeting and, yes, there's about 100% probability fed raises interest rates by a quarter of a percentage point. how do they reflect the chang

ending the week if today holds down 0.6%, but above 50 bucks for wti, 50.74. gained about 3% yesterday. week to date before today's move up 10.7%. so looks like a strong week after the opec meeting was reached albeit after a couple weeks of decline. the dollar has retraced some of its post trump election victory strength. yesterday was down about half a percent. items four its fourth negative session in five. week to date looking at about laugh a percent of declines. today you can see it's about to bounce back a little bit about that to the tune of a quarter of a percent against the yen and about 0.2 against the euro. gold prices just to round things off which have been soft since the election are getting strength today at 1176. >>> so we're seeing the impact of the recent selloff in bonds. new data shows investors pulled $4.1 billion from u.s. based taxable bond mutual funds last week. that is the most since june. investors also pulled $335 million from european funds ahead of this sunday's italian referendum. >> and donald trump kicking off his victory tour

they are gains of more than 4% for both wti and brent. natural gas, by the way, look at that. lower by almost 20 cents. a decline of more than 5%. >>> in corporate news, boeing reaching a $17 billion deal to sell 80 jet liners to iran. this is the first major transaction between an american company and iran since donald trump was elected. the deal was first announced in june, officially sealed yesterday. the u.s. companies including boeing began talking to iran earlier this year after a nuclear record removed sanctions on tehran. but there are questions on whether donald trump may look to slow or stop dealings with the islamic republic. >>> meantime, airbus is close to finalizing a deal to sell passenger jets to iran as well. because of sanctions, they have some of the oldest fleets in the entire world. so the country is desperate to upgrade their planes. >>> ford's ceo says president-elect trump's threats will not change the plans to move small car production to mexico. trump said he'll impose tariffs on companies who move jobs abroad. but mark fields says the ford focus will

we did see that uptick in wti overnight by 1.7%. wti and brent slightly higher this morning as well. >> wonder what resources could do for the ftse? could it move the needle back to record levels for the uk market? >> in the past, anything that has to do with basic resources moves the ftse, because it's so heavily weighted. >> could just be the trend into year-end. >>> speaking of commodities, let's talk more about energy. venezuela will cut 95,000 barrels per day of oil output from the 1st of january as part of the opec and non-opec agreement. the country has been one of the most outspoken price hawks throughout the year as the government battles to recover from the price slump. we spoke to the venezuelan oil minister last month and asked him how important it was to have russia on board. >> i was talking to the minister, everybody was in talk with him during that conversation. i asked if they will be with us. >> oil prices have risen about 20% after the vienna meeting. after the summit, the khalid khalid al falih said he was happy

wti down a half percent. 52.64. brent, international benchmark for oil prices, 54.76, down a half percent as well. as for the action in the currency markets, the dollar back stronger yesterday. near its highest level. now we're talking back to 2003 against the euro. euro firm their morning. dollar/yen little changed, 117.32. the pound under pressure. so we've had this this morning and yesterday where the dollar was weakening and turned around after better economic data. durable goods, gdp, mixed picture. personal income and spending didn't do much. overall a story of a strong dollar this week, this year, fourth year in a row we have seen the dollar strengthen. talking about the dollar index. as a result gold has been on the back foot lately. a bit stronger this morning. up 2 bucks. look at the decline of gold. >> strong dollar plays into that story. risk aversion coming off the table, and gold emerging markets, all of these strong dollar opposite type plays. >> yes. getting hurt. bitcoin, not so much. shooting up. >

they're up 0.7% today. 51.2 for wti. the dollar, which, of course, last week did slip a bit, but it bounced back sharply yesterday. the broader index up 0.9%. large part of that coming on the euro/dollar pairing. the euro soft to the teen of 1.5% to the dollar. movements today more muted. the dollar a bit stronger against the yen. 0.4%. ten-year treasury note, just below that 2.4% yield level, it has gone back above that, a decent move back above that, 2.44. gold prices to round things off, coming up gold is a bit -- it's flat. 1,172. what has been fascinating is the broadness of the rally. what's come in. everything is catching up from small caps to mid caps. the nasdaq, which had been the laggard in terms of the post trump rally is up 3% for the week as a whole. t the dow is up 2.3%. despite it broadening out, we see the likes of the financials soaring. financials are up 4.7% this week on pace for fifth week in a row of gains. it really shows no sign of abating. a lot of momentum behind the rally. >> consumer discretio

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

wti down about a half percent. just above the $50 mark. a lot of people down on the floor were watching that yesterday in terms of a line in the sand for equities. nat gas down 1.7% today. gold prices headed for a sixth straight weekly decline. trading near the weakest level in ten months. let's check in on gold prices. they had a great start to 2016. the best first quarter in about 30 years. you can see how they melted down since the summer. gold up about 7 bucks to 1136 an ounce. m the metal has been under pressure because the dollar is surging. the euro is quickly headed towards pareparty parody. the yen about 1.18, it weakened considerably since the election. >>> november housing starts will be out at about 8:30 a.m. eastern. the number of new homes under construction is expected to have pulled back next month. and richmond's fed president jeffrey lacker will be talking this morning. and it's quadruple witching day. that may spark late day volatility. the charts are up and running. do you want to do the honors? >> you can do them. you

we are up 0.4%. 52.1 on wti crude. sara? >>> in corporate news we mentioned that apple in ireland are challenging the eu tax ruling. as expected, louisa bojesen is joining us from london with more. what did we learn today, louisa? >> well, essentially, just recapping the points you have said. we still need the details to emerge, but the european commission, they are basically accusing ireland of avoiding international tax rules by letting apple park the profits in exchange for jobs. that's what the whole thing is about. apple will formally be launching this appeal this week against that record $13 billion euro tax demand coming from the european union, and that is relating to payments in ireland, which is the european headquarters of apple as you know. so according to a senior exec, apple is now saying they have been singled out because they, quote, convenient target that they generate a lot of headlines. so apple is being singled out to make a statement so other companies don't do the same thing. but the irish government, t

i have a chart showing wti. it shows some concerns on future supply constraints. that seems at odds with what being saying about supply more plentiful from the united states. thatat has happened is there were a lot of concerns for a long time about oil going lower. hedge andery popular now we are reversing that. however, not only around the u.s. but even between opec and non-opec members, you still have a lot of supply. more importantly, you have geopolitical risks across these countries. withare financing wars each other. think about yemen for example. level, thehes a high incentive will be to pump a little bit more to fund the deficit. undergoing ais transition from a purely oil economy to a diversified economy. they want to transform their economy into services and tourism. more thanworkforce is 50% of the population and where women can drive. for aan ambitious plan country that does not give civil rights to its people. during this time, they are borrowing more debt and they are withdrawing money from their sovereign funds. of these of these economies are more

the international benchmark brent and wti crew -- the bti crude rose to new highs on monday, trading on those highs. after hitting record highs last week, stock markets have been paring back their gains on monday. the ftse 100 has closed down 1%. lighter losses just under the flat line. the mixed trading session on wall street, investors are holding their breath ahead of wednesday's federal reserve meeting, when the central bank is expected to raise interest rates for the first time since last december. the dow jones trading in the green at this hour. the european union and cuba are forging closer ties. officials have signed an agreement aimed at supporting economic development. >> and political accord intended to bring economic change. for the european union and cuba clinched the biggest diplomatic economicugh since sections on the island in 2008. that deal will help develop commercial and other ties between havana and brussels. >> today we are here to sign a political dialogue and cooperation agreement, establishing the first congratulate tesh first contractual relationship at the

and wti has a decline of 17 cents. that's the february contract, so that has rolled over, and the natural gas, still january, lower by two cents this morning. >>> with republicans assuming control of the house and the senate in january, tax reform will be at the top of the agenda. for more on what we can expect, let's bring in grover norquist, and jared bernstein, and jared, you have been to trump tower? has anybody reached out to you? there has been some movement across the aisle from time the time? >> amazingly, i have not yet been up to trump tower. >> sarcasm. i was going to give you the benefit of the debt and stpaurt by saying are you working on the russian thing or the recounts or are you starting to realize you may need to address policy -- >> i was there weeks ago, and in fact, if you read my stuff, which i recommend to you, i have been thinking about ways in which perhaps there are some ways we might work together, and tax reform is one of them. lowering the trade deficit. >> you are stuffing crayon in with i

wti, $55 fore for brent? that must look good to him. tracy: sure. when i caught up with bob, he sounded very optimistic, which surprised me. he's talking about, now is the time for bp to grow. they are looking at a potential seven and eight major investments which is quite different to the rollbacks in expenditure we have seen over the past couple of years or so, thanks to low oil prices. bob was outlining opec as an essential game changer for the oil industry, something that would probably keep oil prices in the 50 to 60 barrel range -- $50 to $60 per barrel range, i should say. it has been its own financial discipline in the project keeping costs very low in the face of lower oil prices. dudley saying that now his company can maintain dividends with oil at $50 to $55 a barrel, down from an earlier estimate of $60 a barrel. definitely optimistic. dudleyacy, i'm sure bob will fly to the middle east to talk to you, but he was probably there to do something else. right you are absolutely about that, guy. he was in abu dhabi to sign an noc,oric deal wi

the wti futures declined after four days of gains. let's take a quick glance at other markets open across the asia-pacific at this hour. we're seeing others in the positive. seoul up by a tenth of a percent. australia up by .4%. china markets will open in just under half an hour. >>> saudi arabian officials are preparing for an ipo of the world's largest state-run oil company saudi aramco. they are eyeing several global markets for the 2018 debut including the tokyo stock exchange. saudi industry and mineral resources minister met in riyadh with the ceo of the japan exchange group. the market cap is estimated at more than $1.7 trillion. there's also speculation the company will debut in new york or london. after the meeting, nhk was told that the tse will be given a sufficient chance. >> the number of international companies that are listed in tse, it's not as large as other stock exchanges so we have to do our due diligence to make sure there is no reason to prevent information companies from being listed. >> he says he believes the

wti down today 1.2%. brent down 1%. >> taking a breather. >> it's been a torrid run in the oil market. >>> u.s. federal reserve will announce the latest interest rate decision. the fed expected to raise rates for the second time in ten years. also expecting an updated economic and interest rate forecast. you can watch all of this, the full coverage of the fed announcement and janet yellen's news conference on cnbc. there are a few other key reports to watch today. here's what's happening. 8:30 a.m. eastern time, the producer price index and retail sales come out. at 9:15 a.m., industrial production and business inventories for october. that's at 10:00 a.m. eastern time. now let's talk a bit of politics. president-elect trump will be holding a roundtable summit with tech industry leaders today. among those expected to attend, the man who put this together, peter thiel, bet on trump early and was one of the few in silicon valley. cheryl sandberg will join the group. elon musk, larry page and eric schmit, on

ahead of itself and by august crude was back in the high 30s, in october to 50, november low 40s, and wti finished today's session at 53.72. year-to-date oil saw 45% increase, marking its first positive year in three, and its largest increase since 2009 where crude actually gained 77%. so the question, of course, now where do we go from here? well, opus says the theme of lower for longer is here to stay, but going as low as we did this year probably not likely. they warn crude's upside is probably limited from here, but over $60 a barrel definitely possible in 2017. immediate influences, of course, opec's implementation of its deal. maybe they'll cheat, maybe they won't. but also u.s. production. oil rigs here at home are only 11 less than they were a year ago. shows you when prices rise rigs come back online, supply goes up and that could be a problem for prices. melissa, happy new year. >> happy new year to you, jackie. thank you. >>> if you missed out on the rally, don't fear because mike has an under the radar way to get over. he is over with his call to action. mike. >> all right. ta

ahead of itself and by august crude was back in the high 30s, in october to 50, november low 40s, and wti finished today's session at 53.72. year-to-date oil saw 45% increase, marking its first positive year in three, and its largest increase since 2009 where crude actually gained 77%. so the question, of course, now where do we go from here? well, opus says the theme of lower for longer is here to stay, but going as low as we did this year probably not likely. they warn crude's upside is probably limited from here, but over $60 a barrel definitely possible in 2017. immediate influences, of course, opec's implementation of its deal. maybe they'll cheat, maybe they won't. but also u.s. production. oil rigs here at home are only 11 less than they were a year ago. shows you when prices rise rigs come back online, supply goes up and that could be a problem for prices. melissa, happy new year. >> happy new year to you, jackie. thank you. >>> if you missed on the rally, don't fear because mike has an under the radar way to get over. he is over with his call to action. mike. >> all right. talk a

wti has doubled since its low earlier, this year. 2%, shall up 2.5% -- shell of 2.5%. saudi saying they could cut -- 2.6 millionls barrels a day. other movers we are watching, phillips selling 80% of its lighting unit. the stock is off by about 4/10 of 1%. morgan stanley calling that price tag marginally disappointing. italian banks fall on everyday big movers. monte dei paschi and unicredit. pursuing capital raising plans, trying to find investors $5.3 billion by the end of the year to avoid any kind of rescue fund from the italian government. unicredit was able to sell pioneer investments, helping them with their finances. they are selling to a moon d, making it the eighth -- selling to amundi, making it the eighth largest finance manager. david: we will go live to vienna. one hour from now, we sit down with david rubenstein. his take on the markets and the businessmen coming to washington. ♪ jonathan: from new york, this is bloomberg. nation said over the weekend that they would join the opec pledge to reduce oil output, saudi arabia agreeing to cut oil by more th

wti over $50, a 2% rally when it comes to brent. it has an impact on all the shale players in the u.s. leverage ande most beaten up so far are seeing the biggest rally. up another 8%. bp energy up 6.7%. nicholas upgrading some of the biggest names, boosting oil price targets $55 versus $50. it helps the s&p and futures have grinded slightly higher. kroger and dollar general both getting hit hard. kroger missing third-quarter estimates. likely the low end of its previous target. best it is -- it is hurt by foodstamp issuance. david: baby so much. we will turn to politics now, the next presidential administration. donald trump and mike pence traveling to indiana to discuss a broker-deal to retain jobs at a carrier plant. kicking up the president-elect's promises to keep jobs at major u.s. corporations in the united states. we are joined by senior executive at her for global martyics and government, shanker. marty: i have to figure out my title too. david: this is a big trip for the president-elect and mike pence. it was like he is del

i want to pull up a chart which shows the relative performance of wti crude. see, finally after two been years of underperformance, it is actually going to outperform other commodities this year. how does that change the game next year for oil and exposure to energy? >> a lot of those large energy exporters have been repricing since september. at a lot ofa look the malaysian exposures listed on the market, even if you look at the u.s., major oil producers and energy producers, there has been a repricing. caps have notll benefited from that. where energy prices are at the moment, they basically provide enough of a buffer for the large names to do well, but not enough for the small and emerging names to ride off the back of that. for theplaying well large equities, the large producers. they can dominate, drive out competition in the industry and help insulate earnings. what i will look for is the wa y they invest. are they bunkering down and waiting for more stability? to me, that will be a sign of where the wheel market is likely to go, when they invest. betty:

wti goingve the vti -- over $60 a barrel. significant movers. almost 18%t gained yesterday, the nikkei report saying the government would be upping its credit line to deal with the financial fallout. another report from the nikkei saying those costs associated with the disaster have more than trillionto 21.5 chilea yen. the shipper following more than 7%. we have a report the senior member of the alliance, the shipping alliance, has said they are no longer interested in having them join. finally, one of the many energy and mining stocks that are gaining. we are look at what sitting up. this is why we are seeing the nice boost to japanese equities. ing like it is ahead. russia also saying it intends to follow through with its promises if opec members come through with supply cuts. looking good at the moment. yvonne: let's stick to oil at the moment. customers of saudi aramco have have beenyers informed the kingdom will stand by its promise to reduce output 86,000 barrels a day. oil is continuing to climb as david, they are all meeting on saturday

seen, wti, brent rising this is what we are seeing across the region, heavy markets in australia gaining. new zealand looking flat. we had bill english confirmed the new prime minister. the kiwi dollar is holding steady. we have housing prices coming through, they fell for new zealand, but that is something japan will have to address at some point. for the greatest gains, the nikkei 225 is extending the rally by 0.3%. pushinga weaker yen, 116 when it comes to dollar-yen. that is driving sentiment particularly when it comes to consumer names, exporter names, with the leading gainers when it comes to tokyo. 0.25%.section highs, up we have some uncertainty following the impeachment vote. we have 180 days before the constitutional court will turn in his decision whether or not to support the proposal, but the s&p saying, this political uncertainty, unlikely to have significant impact in terms of the regimes of south korea. they tend to be fleeting. no surprises here, oil and gas are up. when it comes to australia, it is up close to 3% with the energy sector and health care and tech stocks. t

decline in the crude stock piles, this is for the fifth week, and a blue line, that is the price of wti. how quickly can the u.s. oil production come down? scott darling: we think there is at least six months. this is from the second half of next year. i think in terms of stockpiles, if we rise in terms of adherence of the cuts, you could see it around .7 million barrels a day of the drawdowns for the first half of next year and i think the market broadly as consensus around 1 million and cuts for the first half of next year. looking at jp morgan stanley and they say that cutow these -- saudis must over 2 million barrels a day to make sure this works. is this something that you can join as well? scott darling: i think that saudi production can be cut anyway, exports may not read if you come in -- not. if you come in with the summer period, there will be better gas supply in saudi arabia and therefore less need for the oil burns. exports may not change love the production could come down. yousef: what about the libyan variable? they have been exempt from the agreement in terms of freezin

decline in the crude stock piles, this is for the fifth week, and a blue line, that is the price of wti. how quickly can the u.s. oil production come down? scott darling: we think there is at least six months. this is from the second half of next year. i think in terms of stockpiles, if we rise in terms of adherence of the cuts, you could see it around .7 million barrels a day of the drawdowns for the first half of next year and i think the market broadly as consensus around 1 million and cuts for the first half of next year. yousef: i was looking at jp morgan stanley and they say that is how these -- saudis must cut over 2 million barrels a day to make sure this works. is this something that you can join as well? scott darling: i think that saudi production can be cut anyway, exports may not read if you come in -- not. if you come in with the summer period, there will be better gas supply in saudi arabia and therefore less need for the oil burns. exports may not change love the production could come down. yousef: what about the libyan variable? they have been exempt from the agreement

this is the price of wti. u.s. -- how quickly can u.s. shale production come back? stock draws,ms of if we are right in terms of appearance of these cuts, you 0.7 7 million barrels per day. i think the market consensus is cuts of an endn of next year. yousef: we have heard that the saudis need to cut 2.5 million barrels per day to make sure that this deal works in a worst-case scenario. scott: i think saudi production could well be cut anyway. exports may not. we believe there will be better gas supply and power generation in saudi arabia, and less need for oil burn. production could come down. yousef: what about the libyan variable? they have been exempt from opec freezes. could that be a black swan, an extraneous variable into next year? scott: a law of us have limited visibility. if you look at the three conference calls, we heard the same thing about visibility in outlook. for what it is worth, jp morgan forecasts 700,000 barrels per day for libyan output. but we have plus or -200,000 to that. turkey still to come, unexpectedly kept rates unchanged. we have the

reference here, the blue line, the price on wti. how quickly can u.s. production come back, u.s. shale specifically? we think at least six months. when i quoted those things for angie, that is the second half of next year. if we are right, you could see a .7 milliont of barrels a day in stop drawdowns. scott, i was looking at a note from morgan stanley and they say the saudi's need to cut million barrels per day to make sure this deal works even in a worst-case area. is that something you can join as well? look, i think saudi production could well be cut anyway. if you look at where you are sitting, we believe there will be better gas supply, better power generation in saudi arabia and less need for oil. although exports may not change, production could come down. scott, what about the libyan variable? they have been exempt from the opec agreement. could that be a black swan, and extraneous barrel that could going intoopec deal next year question rick scott: i think some of the producers if you look at the three conference calls remember the same thing, visibility, the outlook --

tracy: we still have wti and brent hovering above $50 a barrel. is that where you were expecting the price to be following an opec deal of this magnitude? >> i think, because the expectation that the price movie is cap by the return of shale production, i think the feeling is that it is difficult. mess -- hedge fund managers have talked about $70. also, do forget the huge inventories that are still there. this deal, it depends on who you believe, whether it's the opec figures or the eia, they all have different figures. there is a view that by the second half of next year, oil inventories worldwide will be drawn down -- will be starting to draw down. , stretching months into years, to draw down these unusually high inventories. side, we haveplus seen the price curve begin to find. some people are saying that this is exactly what opec wanted. it wanted to take aim at the contango in the oil structure to allow people to hoard oil and store it for future delivery. is that the right way to think about it? >> i think that was part of the aim, yes. but

decline in the crude stock piles, this is for the fifth week, and a blue line, that is the price of your wti. how quickly can the u.s. oil back, and u.s. shale specifically? scott: we think there is at least six months. when i quote those things to angie, it is sort of from the second half of next year. i think in terms of stockpiles, if we rise in terms of adherence of these cuts, then you could see around .7 million barrels a day of stock drawdowns for the first half of next year and i think the market broadly as consensus around .5 two one million in cuts for the first half of next year. yousef: i was looking at jp morgan stanley and they say that the saudis must cut over 2 million barrels a day to make sure this works. is this something that you can join as well? scott: look i think that saudi production could well be cut anyway, exports may not. if you come into where you are sitting in your summer period, we believe there will be better gas supply in saudi arabia and therefore less need for the oil burn. so though exports may not change, production could come down. yousef: what about t

wti holding above $50 a barrel. gains yesterday on brent crude. this is merck. -- this is bloomberg. ♪ vonnie: live from bloomberg world headquarters, i am vonnie quinn. nejra: and i am nejra cehic. let's check in now on the first word news. alisa parenti has more. issa: donald trump considering goldman sachs president to have the office of management and budget after the -- rejected his offer for the post. he was reportedly also consider for treasury secretary. a new poll has found that only want one in four americans president-elect donald trump to entirely repeal obamacare. it was released by the nonpartisan kaiser family foundation. say they wantcans the law to be completely repealed, down from 69% before the election. former astronaut buzz altering, second man to walk on the moon has been evacuated by plane from the south pole for medical reasons. international association of antarctica tour operators say buzz aldrin was visiting the area when his health deteriorated. his condition is described as stable. he is 86 years old. a u.n. report s

crude oilhows wti index.versus the u.s. the correlation is on the bottom panel. you can see that those two elements have been diverging over the summer. but correlation seems to be coming back now. if we do get significant dollar strength, what is the impact going to be on oil? -- opec has been acting on the supply side. strength,he dollar the potential impact on the demand side. we are looking for demand mainly from the emerging markets. for is where the demand fuel is, where people are buying cars, building houses. this is where the demand is coming for oil. on how thatend dollar strength impacts markets there. it stronger dollar makes it marks ends of for people to buy oil in their currencies, that is a negative for the oil price. but at the same time, those companies are largely exporters. areountries like the u.s. able to buy more, but as a potential benefit for them. additional liquidity and cash could help economic growth there. uan gets that demand-side going. we will see about that. we will see how the markets react to financial issues like the dollar. a