you've got opec plus opec plus russia and others meeting tomorrow the expectation is that they will add or begin to add about 500,000 to 1 million barrels a day back on the market starting in august. more with lima kroft wti up 35 seconds, 73.30 the top corporate stories. things that are top of the headlines. we'll go to christina with more. >> good morning, brian 18 companies are set to go public this week including clear, sentinel and legal zoom and krispy kreme didi pricing its ipo at the top of the range at 14 bucks a share. a market cap of $67 billion. microsoft and google are ending a six-year truce to prevent open warfare. the two companies had signed a pact back in 2015 to end a drawn out legal battle according to the financial times, the two did not renew the deal hip-hop artist meagan t. stallion is teaming up with a cash app for financial literacy. in the video posted to youtube and instagram the 2021 b.e.t. best female hip-hop artist talks about the importance of buying stocks, averaging and diversification. >> buying stocks a little at a time on a regular schedule can help

opec is keeping its options open. they have that prospect of the iranian barrels coming back to the markets. there are talks going on between iran and the world powers. those have run into some complications. very intense negotiations. that is up in the air. the expectation is that a deal is going to happen. the question mark is really can they get it done before the election or is it going to have to wait? that's going to have to affect when the iranian barrels could come back. manus: iran's comeback will occur in an orderly and transparent fashion. i set that against when he was saying we should get production to six point 5 million barrels a day as quick as possible. the secretary-general seeking to quell our concerns. what could disrupt the outlook? >> iran will come back quickly. perhaps more quickly than people are expecting. this is what happened the last time sanctions were eased. they were able to bring back a lot of productions and about three months, 3, 4 months. the expectation is they will be up around 3.

the only group that can really increase supplies is opec or opec+, other than iran. iran is within opec but they are not able to increase production. after what happened to prices last year -- there has been no investment. that is why opec is not really responding and cannot increase production. all eyes are on opec+ meeting on the first of july. we expected iranian barrels to come back to the market around now onwards. -- the conservative hardliner has been appointed the president but it does not look like a ron will be able to come back to market or a deal is likely before august which means iran will return in q4 which means opec+ has to start raising production the summer or prices could go north of $80. we think they will do a little bit. that is the potential in the market, yes there are supplies available all within opec or opec+. they need to be willing to give production to the markets, otherwise it is a moot point. lisa: why do you think francisco blanch is not correct when he says you could see crude getting up to $100 per barrel? amrita: i don't think tha

look at that live shot of that opec news conference. they are sticking to the plan to hike oil production. there was a lot of doubt that they would because may be iran's production would come back if i ran and -- back if iran could strike a deal with the u.s. on nuclear. we will break down that and other things as well. this is bloomberg. happy tuesday, everybody. ♪ look...if your wireless carrier was a guy, you'd leave him tomorrow. not very flexible. not great at saving. you deserve better - xfinity mobile. now, they have unlimited for just $30 a month. $30 dollars. and they're number 1 in customer satisfaction. his number? delete it. deleting it. so break free from the big three. xfinity internet customers, take the savings challenge at xfinitymobile.com/mysavings or visit an xfinity store to learn how our switch squad makes it easy to switch and save hundreds. (announcer) if you've struggled to lose weight, you might think you were born with a slow metabolism, but what you may have is insulin resistance. fat becomes trapped inside

opec-plus say they are firmly in control of the oil narrative. some of traders are talking about a tightening narrative. brent down for tens of 1%. -- 4/10 of 1%. i said we were traveling to the higher land of tax and rates. the g-7 has agreed to a minimum corporate tax rate of at least 50% on foreign earnings. the landmark deal -- at least 15% on foreign earnings. the landmark deal may collect more earnings from big digital firms. >> the g-7 has taken steps to end the existing harmful dynamic, making commitments today that provide clement this momentum toward achieving -- provide tremendous momentum toward achieving a tax rate of at least 15%. >> the principal of fairness is what we've achieved, assuring a level playing field for all types of companies, whether it is people operating in tax havens or digital companies, we will inject the principle of fairness into global tax systems. manus: joining me now is our brussels correspondent, maria tadeo. there are important nuances in this proposition from the g-7. talk me through the idiosyncrasies a

the opec discipline is good, opec-plus discipline. inventories are going down. if there is not a shadow on the market, we could get to $80 by the middle of the third quarter, but it will come back down again. the fundamentals are strong. iranian volume, you bring it in in august, september, the saudis and opec-plus will not put as much volume in the market and the market can absorb the iranian volume. the fundamentals are bullish. haslinda: people are looking at perhaps back capacity. what assumptions are you making about spare capacity by the end of the year? >> there is a huge amount of spare capacity in opec. one reason fundamentals are bullish is because opec-plus is holding back. can think of opec as a patient leaving the hospital. opec and opec-plus are holding the patient under their arms so he doesn't fall. by the end of the year, the patient does not need to be tired anymore. until the end of this year or early next year, it has to be there. without opec-plus, this market would be substantially lower. haslinda: i want to take a look at demand out of asi

that does not apply for every opec nation. how much price increase is enough to restore some of their economic shortfall but not too much that they start to through the market into a panic mode is the needle they have to thread. they have not specifically said this, but most analysts see that price point as kind of above $80, when they start to get concerned about braces overheating. i don't think they are super concerned about that overheating scenario around $70. matt: how much demand bounce back are they calculating in here? as we see everything rallying on the reopening trade, how much is opec calculating that into their supply forecast? rebecaa: great question and i think that's another thing that came out of this meeting that wasn't really addressed. they really changed their tone. they are positive on demand even with what is happening in india. they see the market being at a deficit of about 2 million barrels a day and an average of 1.4 million barrels a day for all of 2021. basically, the u.s., europe and china are go

but will opec provide what consumers are demanding? well, to take a look at best buy, bring a bus co host, christy i and david mckelvey, the ceo of macaroni financial group. i was great to have both you talking about this important issue kristie. i want to start with you with opec scheduled to meet online next week to decide their production policy for august. be what's expected to come of that meeting, especially after boosting output from may to july. well, it's expected that they're probably going to boost the output again, so only by some $500000.00 barrels per day when they meet next week, which is a very modest boost. but that definitely won't be enough to plug the shortfall in supply. so the organization is looking to cautiously read about, but apparently they're still worried about uncertain demands as the world economies recover unevenly. and if there's a potential that can wave of the various delta virus heading. so opec clause slash output early last year by 9700000 barrels a day as the pen them extract demand. so the cumula

do we get an incrementally higher number from opec of 350,000? do the saudis stick to 350,000 do they add more it is not just one decision. it is the combination of the decision you have some producers wanting to be a little more cautious they say, yes, the u.s. looks great with gasoline demand europe is reopening. we have the problems in india and covid. the third largest oil market for demand japan is looking shaky now with covid as well. the question is what is the incremental add that we will see? if we have the steady as we go, that price will likely move higher because it doesn't look like we are getting the immediate return of 1 million plus iranian barrels we think the barrels will come in during the back half of the year they did not get the progress meaning it is an imminent issue for the market >> the iranian barrel, helima, is on the market to much extextt secret sales or turning off the gps. it is not like iran is not selling oil around the world we know they are the question is how much they want to return to, let's call it, the vis

it's projected by opec for the rest of the year. so iran can also quickly export 1000000 barrels of oil that it's currently holding in storage if it reaches the deal. over the past couple of months has boosted the volume of crude it has stored in tankers, and in what may be preparations where we start to export. so some of those tankers are already in transit to asia, which is the biggest market for ronnie and oil. so their oil exports were pretty much flashed to a mere fraction of what they once were as a result of trucks sanction. so a revival of the deal and lifting the levies could actually bring back about $3800000.00 barrels per day. oil to the market. so at this point that well, market is closely monitoring these negotiations among the g p. o. parties in vienna as a more significant variable for all products in the near term, even above the opec meeting next week, and data before we go with this rising oil demand in the us plus a flat domestic production in recent months, crude has significantly narrowed the discount to brent

i look at what opec is doing about what they have been doing forever. good luck holding back that supply, because they still have a lot of it. it is that elasticity of supply that is a problem. demand is just not there. in metals, low elasticity of supply supports the prices. david: mike mcglone joining us. you can get more on opec and other commodities, metals, soft commodities as well, a roundup of the stories you need to know to get your day going in today's edition of daybreak. go to dayb on your terminals. let's turn to sophie to see how we are setting up for the asian market opened fors -- market open. sophie: we are seeing more action and currency markets. watching the turkish lira, falling to a record low against the dollar. this as erdogan indicated new interest for lower interest rates in turkey. in australia, after the rba held policy settings, we are waiting on the first gdp report and iron ore prices will likely drive growth in the first quarter. iron ore futures in singapore holding around 200 as china indicates it may seek to ease ste

opec-plus puts policy front and center. goldman sachs affecting the cartel will stay tactical on production hikes. point 5 million barrels per day from august. it will be lifted to one million barrels per day given the tightening we have been in the fiscal market as reflected by the strong time spread. that would represent a two dollar to three dollar per barrel downside risk. flipping the board, high chance of brent hitting the mid 80's range. that opec increase unlikely to use the deep deficit they see through the third order of this year and subsequent higher prices are likely to trigger calls for opec supply, especially by india, where domestic prices could derail a recovery. shery: let's get more insight on oil and the opec-plus meeting. joining us is yes meena -- yasmina. what is on the agenda and what could be see? >> as you said, what everybody wants to know is if they are going to raise production. opec-plus is currently at the end of a previously agreed process to raise production during the month of may through j

crude climbs ahead of an opec-plus meeting today. the alliance is expected to press ahead with a gradual increase in production. just under an hour away. cash equity trading across europe. gains here on the continent in terms of futures. you've got euro stoxx 50 futures up 0.3%. dax futures up 0.4%. ftse, which was closed yesterday for the second may bank holiday, is down. futures are down. u.s. futures a little higher. take a look at the small gain we are seeing on s&p nasdaq and dow futures. each up less than 0.1%. nonetheless, green. let's look at the global macro mover screen. gmm is the function you need to pull this up. you will see, here's the g20 markets. the kospi gaining 0.5% into the close. south korean won also one of the big gainers in terms of forex. you see generally very little change in terms of equity indexes. some gains in a number of currencies versus the u.s. dollar. i want to quickly point out we have breaking news on u.k. house prices nationwide. there was yet another gain in the month of may. this time al

maybe opec and russia, opec+ i.b. going to pour a little bit of cold water on that -- opec+ maybe going to pour a little bit of cold water on that. jeff currie, goldman sachs global head of commodities research, joining us now. where do you stand on this? the market suddenly feels very excited about a lot of upside potential. jeff: this market is really bullish. people ask me what is our favorite commodity. oil, oil, and more oil. why? demand is surging right now. we estimate 97 million barrels per day, up from 95 just weeks ago. that is how quickly it is rising right now as we go into the summer travel season. he put that type of demand growth against the nearly inelastic supply curve outside of opec, meaning we have seen no investment in the u.s. shale patch, no long cycle in the very near term they could bring on for supply, 29% of opec can't even reach their quota. that leaves core opec within the gcc countries and russia as the only game in town. inventories are dropping like a brick, down 3 million barrels a day

let's turn to the opec story. they're forecasting a tightening in the oil market. recommending to raise output through july, but not giving much of a hint as to what comes after that. a concern the energy minister commented on. >> this may impact the economy, that's true, but the current market situation impacting inflation, i'm not the economist to talk to. talk to goldman sachs, talk to the others and they will tell you hopefully it is minuscule. manus: keeping notes all in check on the news conference last night. sticking to the 2020 agreement. no more oil for you boys and girls until 2022. can we survive that long? where do we go from here? juliette saly is in singapore. let's set the agenda. is the pathway clear to $75? juliette: certainly you been hearing this positive calls from not only the iaea but also ing here in singapore. morgan stanley also upgrading their forecast by $10 a barrel for both print and wti on the longer term trend. bullish momentum coming through in the print market as it clear $17 a barrel and that has everyone wondering if we will get

opec-plus striking a bullish tone. what do you do with copper and iron ore right now? this is bloomberg. ♪ alix: oil climbing to the highest level in more than 2.5 years, opec-plus agreeing to increase output in july, but nothing has been decided after that. alix longley joining me. what is the latest? >> they concluded in lightning quick fashion to hike production in july and see what will take place after that. they are not really wanting to give any more clues about the future direction of travel, but by opec's own estimates, they think the market will get stagnant in the coming months. the big question -- what will happen in iran and asia going forward? we have not once crossed $70 a barrel in two years. we will see weather we can finally settle above that market. alix: thanks a lot. for more, francisco blanch, at bank of america merrill lynch, head of commodities and derivatives, what do you think? we are having a hard time understanding $71 a barrel oil when you have iran probably coming back at some point, demand weak, and not sorting out all the variants in e

— it, opec plus? i think they will announce _ it, opec plus? i think they will announce an _ it, opec plus? i think they will announce an increase | it, opec plus? | think they. will announce an increase in output. the key here, though, is there consensus is looking for about a 550,000 million barrel a day increase. it is what we would call a cautious increase because they want to keep oil prices relatively well supported. there is also another side to this, they don't want to put oil prices —— push oil prices too far because they fear an increase in us oil output to make up for the shortage so there is a delicate balancing act. shortage so there is a delicate balancing act-— balancing act. yes because of course the — balancing act. yes because of course the shale _ balancing act. yes because of course the shale producers i balancing act. yes because of course the shale producers inj course the shale producers in the us that have had a tough time with the oil price, and now, i guess, they are going for it. back on track, outputting oil.

opec-plus, upbeat on outlook. give us a sense of what opec-plus is optimistic about, because some say it is short-term positive appetite. guest: as you mentioned, as expected, they returned day 140,000 barrels a day to the market in july. they were pretty upbeat. the market was showing clear signs of improvement, and a lot of that is driven by vaccine rollout in developed countries, particularly the u.s. where we are seeing travel picking up, getting back to pre-virus levels. the big question is iranian supply. there was also news, talks on the iranian nuclear accord have been delayed. they were initially hoping before the middle of june, but that looks like it might not happen until august. given that the saudi's did not give too much of an indication of what opec-plus might do to supply after july. haslinda: a lot hinges on the production levels after july, and as you said, saudi did not give any hints. what is so difficult about that? guest: you mentioned iran. there was also the virus. some uncertainty. it als

oil hits a two year high as opec-plus saying they are bullish on demand. the hack attack on the world's largest producer hits operations harder. a trade union says jbs has shut all of its beef plants. lines from the jp morgan conference is out. shery: breaking news out of south korea. we are getting the consumer price inflation numbers. it is an acceleration of 2.6%. it has come in line with estimates. it is faster acceleration than the previous month of 2.3%. year on year, this would be the biggest rise since 2012 and also the main inflation reading would be the second straight month the price gains have exceeded the bank of korea's 2% target. when it comes to the month on month number, the acceleration -- the core is accelerating faster than expected. 1.5% instead of the expected 1.3%. remember, we do have these base effect coming from last year's oil slump. we are seeing the rebound in global commodity prices factoring into the inflation numbers. the euro on your number rising the most since 2012. we are seeing it exceeding the be ok's 2% inflation targ

opec is in the sweet spot with regards to bringing production back more slowly. and you are not seeing a recovery out of the u.s. in particular, which may be the other concern. dani: to what extent should the market be pricing in return of iranian crude in for the market? saad: most participants are penciling in some sort of return , likely more in the late q3/q4 timeframe, when there seems to have been quite a bit of progress on the talks, but there may be plenty of room still between the parties that we are not aware of. most would say we are expecting these barrels to come back into the market and frankly, even early in the year, we have seen some barrels moving east out of floating storage and the market has been able to absorb that. so this is something where you can dial it up, dial it down, depending on where you think the market conditions, and given where we think travel is getting too, not just gasoline demand but jet recovery. you are saying that this is not something that is worrying the market as much as it was a few months ago. manus: could you imag

dani: what do you think is the least prized in risk coming out of opec-plus tomorrow? what could happen that the market is not readily prepared for? will: i think there is an expectation they will put more oil in the market and i don't think that is a done deal. there is negotiation to come over the next few days. clearly we are seeing a pattern where russia perhaps is going to suggest putting more oil in the market, it wants to calm things down like saudi arabia and other positional members of the core opec group. they may be more cautious and worried iran, the nuclear deal with iran, would lead to a flood of oil in the second half of this year. yousef: so much of what we have seen in commodities has been tied to the recovery of the chinese economy. the reality is, the last couple of weeks, chinese authorities have taken bolder steps to dampen the rally in some commodities good -- commodities. what is likely going to be the government's stance on this if we continue to see this super cycle, this bubbling up of important components of the bloomberg commodity index? wil

they have stuck together under the leadership speaking of opec, meeting today, virt virtually. opec does plan to gently, put the oil back on the market i did have a chance to ask about the relationship with the u.s. a and whether or not he plans to speak with u.s. department of energy secretary >> yesterday we show each other the setting which has to do with mission innovation there's nothing prevent us from reaching out to each other when ever there's any reason to each out to each other. >> you see the virtual meeting it's like a giant holiday square opec style we tried to press him on supply. he wouldn't go there with oil's rise, the stocks have done well. maybe not as well as you might expect listen to this the xle etf is up. tom lee and others have pointed out the gap between oil and where the stocks are is still wide the last time oil was here, 68 buck a barrel, the xle was trading around $70 it's now $54 with oil the same price. everybody has burned that they won't take chance on that sector it's this weird gap between oil and oil stocks still doing well but not as well

it is really down to opec get that comes back to iran. iran is not in the equation, it calls back to tapering from saudi and opec. typically when they have added to barrels into the market, that has been bullish for markets. i question how much spare capacity we actually have read we haven't tested it. we expect production quotas which could see oil prices overshoot, but then back to the fed, i think it really is down to how these variants play out in the demand progresses, and how the spotlight falls onto opec. alix: to wrap that up, because you mentioned the equity market, where do oil stocks need to rerate the most to reflect the view that you have? the addendum to that is will they? with the focus for investors on esg, environmental risks and carbon emissions, is there a chance they won't start to rerate the way we would've expected them to a few years ago? christyan: you are spot on. i think what is happening is unprecedented negative decoupling towards oil prices. oil prices go up, equities don't respond. what it is telling us is th

opec is in focus today brent broken back through $70 a barrel after a volatile month. what are you looking out for today and what is baked into the oil price at this stage? >> i think the event itself is going to be a non-event. we expect them to basically reconfirm the plan they laid out on april 1st on a month over month basis in july, they are likely to increase production by 800,000 barrels per day. that's the headline production increase the bigger issue is how they deal with iran it is too early to give specific numbers around iran. the reason for that is that you need to see what the u.s. lays out in terms of offer on returning the oil supply you need a verification timeline and quotes we don't have that the best you can hope for is how they deal with iran is an indication they are willing to offset any increases in iran that could be the positive upside surprise coming from the meeting. >> you came out bullish last month now telling your clients to buy the dip take this as an opportunity to get better access to the next leg higher in oil. where do you see oil g

that is opec less. do you think they were -- that is opec+. you think they have to respond to that in a meeting? tom: all sorts of countries within opec are loving $71 crude . demand is a lot harder to gauge then supply. we spend more time on countable supply analysis rather than the motion of demand, and what this comes down to is gdp 10%, and we will all slow down in late 2021. that has drifted away, that conversation. jonathan: that is true for the commodity market, true of the labor market as well. lisa: i am curious to see how long-lasting that will be because that will determine one of the key factors in longer-lasting inflation, which is wage growth. a lot of people are looking at that as their primary director. jonathan: if you ask the business is, they will tell you the majority of them that it is the additional unemployment insurance. if you ask potential employees, they will signal it is everything but. lisa: part of it is childcare, the idea that children are not back to their normal schedules. how much are the jobs that people are

little changed for opec right now. >>> there is no opec for crypto. not yet. yesterday was a good day for the digital commodities. ethereum up 17% on monday. we are seeing a little bit of follow through right now ethereum up 1.3% bitcoin up 1.5%. bitcoin at $35,000 gains are there, although much more muted than the big day we had yesterday. >>> welcome to the club. the trillion dollar club, that is no, not ralph srahel solomon. >> reporter: brian, good morning. how do you know i'm not in the club big news after getting a clean bill of health from the fed. wells fargo and bank of america and jpmorgan chase are boosting payouts to shareholders. the group are raising payouts 40% from previous levels and committed to buying tens of billions of own stock as you see. they are all higher pre-market citigroup was the only to not increase dividend or buyback plans. >>> facebook closing above the $1 trillion mark for the first time ever. the fifth u.s. company microsoft and amazon and alphabet among them. this is after the anti-trust complaint brought on to the fec. >>>

this is a big opec-plus meeting. if opec-plus managed to drive the price higher, we will see that rebound powerfully as well. anna: let's get a business flash. some of the corporate stories we are dealing with. >> gamestop is to join the ftse 1000 index of large-cap stocks after billions of dollars were added to its market value amidst frenzied rallies this year. due to the timing of its gains, another small investor favorite, amc, is to remain in the russell 2000 despite having a greater market value than nearly two thirds of the companies in the large-cap index. poised to buy more than 2000 airbus and boeing jetliners in one of the largest deals in its history. the u.s. carrier is looking to rebound with more efficient planes. united is expected to purchase more than 115 737 max jets and over 50 airbus a 32 a neo's. china's envision group will spend $2.4 billion on a battery plant to power electric vehicles. the carmaker will acquire a stake of 20% in a french startup which makes power packs larger and premium mode

so the refined is hoping that's going to come quickly or opec into saudi arabia. they are watching and they know that it influences that strategy. and it would create more competition in effect now this year or in 2022, depending on when exactly right. you know, we'll stop coming back richard. it's been great talking to you on counting the cost many facts indeed for being with us. the news in the us, the political battle continues that president joe biden, this decision to raise the minimum wage last month pipe and signed an executive order, little increase it to $15.00 an hour for federal contractors, making it part of his corona virus release package. but his opponent said that his policies a crippling attempts to revive the economy. l 0 is my cannot reports for washington . a d c restaurant set to reopen, like thousands of small businesses around the country attempting to reset in the wake of the pandemic. the minimum wages one such as de la santee, hoping for new beginnings as manage off a restaurant recently reopened off to being shut and then sold as cobra.

opec has about 6 million barrels a day of production off the market. they do have oil to bring back, but they do have demand going up through the rest of this year. mark: i want to follow up on that. how is the market going to deal with the idea of iran's oil supply coming fully back to the market later this year as people think might happen? anthony: we saw a knee-jerk reaction last month when it looked good, the prospects looked good for iran. so we probably would see something like that. however, some are saying that largely the iranian return is priced in, in a sense that we might see knee-jerk reactions around the news headlines, but oil will revert back to where it is going. it looks like the return of iran will be a little later this year because of the nuclear talks going on in the un which adjourned, and the talks out of tehran. they hoped to have a deal by august, which is when the administration leaves office, rather than earlier efforts to reach a deal by june, which is when we have upcoming iranian elections earlier this month. that pushes

so i think opec plus will be wary of that. i also think they do not want to threaten the rally we have, wti $74 now, and that is replenishing the coffers of a lot of opec plus members who suffered a lot last year. rishaad: andrew james, editing -- energy and commodities editor. china the ministry to review antidumping measures on the european union. using various manufacturing processes including aircraft. also background of china suing australia of antidumping measures on some chinese goods. that ratcheted up tensions between those two countries but it does seem as though we have these antidumping measures going to be reviewed by beijing on the european union-u.k. looking for more and when we get it we will bring it to you. juliette: coming up, we speak to the ceo and cofounder of india's largest social commerce company about how ad is enabled 15 million entrepreneurs to start their own online businesses. this is bloomberg. ♪ juliette: the indian social commerce platform meesho achieved unicorn status raising 300 million do

i know there's an opec story to it. my only question is talking to our guest, when do we blink and when does the 10 year yield actually move and catch up with the other dynamic swissie? -- dynamics we see? jonathan: so far they have not. in the face of the conversation about budget deficits north of $1 trillion forever in america, yields 1.6162% on the 10 year maturity. tom: for the people of america, it is tangible, isn't it? lisa: the university of michigan sentiment survey friday was one of the most underplayed surveys out there. it showed people had the expectation for five to 10 years of 3% inflation. not necessarily runaway dynamics that we saw in the 1970's, but still, justify a 1.61% 10 year yield with the expectation of 3% inflation over the next five to 10 years. tom: the dynamic here on real yields, most of our guests are focused on the real yield. you can see that on friday, friday afternoon. but seriously, we simply haven't seen the real yield coming in without inflation picking down -- inflation pushing do

while cartel opec can its allies have agreed to maintain planned production, increases vast amounts, decrease covers $23.00 nation opec, plus alliance implemented shop output cuts to mitigate losses last year. following a price crush things in the 1900. and then i can only for brazil is economy rebounded to its pre panoramic level of 1.2 percent. during the 1st 3 months of 2021 1st quarter growth in latin, america's largest country was largely driven by the eating of it 19 restrictions. despite the countries struggled getting the pandemic under control last year, brazil, annual gdp contracted by a record of 4 point one cent and a giant under water cable connecting your up to latin america via portugal, and brazil has been all grated and a link because it's known is considered a big step in connecting to continent. european officials state will help share information and develop the day to accomplish that. now is it possible to provide everyone in society with enough money to live on whether they work for it or not? the concept of a universal basic income has long been discussed in ge

oil is a big story, jumping to its highest level in more than two years, as opec agree to say gradually increase product chevron one of the dow leaders boeing is also higher. >> thank you very much, kelly. >> interested in investing in the ipo market seems to be cooling off a bit. the data shows the potential share price pop in u.s. ipos has been pretty much cut in half compared with as average pop of only 20% in april and march. in addition the ipo pricing has also gotten higher, posting 40% of those listing beat their price ranges, compared to just 25% in the first quarter of this years. an 11% since the beginning of the second quarter back in april 1st. look at this chart of the renaissance ipo etf, now negative for the year. let's focus on the woes, if they are, of the ipo market is it something that wall street should be worried about? what are we see here, herb >> i think we're seeing things getting back to norm at. what they're doing is just coming off the period that was a moment in time these numbers are being compared to january and february. everything was going crazy i think

so, quinnly from an opec, not so quickly outside of opec. the reality is that so market knows it's tight it's one thing to say, okay, a few people think it's possible, and so forth what is the consensus trajectory at this point? to dan's point, there's a lot of unknown as so on the supply side, opec could bring production back online u producer could start pumping if they said >> they want to see their family but that remains to be seen. amid that environment, were -- which is leading traders to bet we will see a longer term upward traj trajectory >> john was talking a while ago about how our dysinvestment is pushing up oil prices do you see traces of that in the market this idea that it's ceding higher oil prices. >> i think we have the law of unintended congressing, where we have an administration that i think would like to see greener energy, it's more expensive energy, and that hits the folks least able to afford it. so i think we have to have both green energy, conventional energy, and probably along the way support some of those folks

turn over their companies will also need to disclose the number of employees and profits oil cartel. opec and its allies have agreed to maintain plan production increases as demand for crude recovers the $23.00 nation opec plus alliance implemented sharp output cuts to mitigate losses last year. following a price crush results from the cobra. 1900. pandemic economic fall out growth in brazil, return to its pre pandemic level of 1.2 percent during the 1st 3 years of 3 months rather 2021 lot. america's largest country, benefiting from the easing of covered $900.00 restrictions. despite the countries ongoing struggles with a panoramic last year, brazil's annual g d p contract it by record 4 point one percent and speaking a brazil giant underwater cable connecting europe to latin america via portugal and brazil has been inaugurated ella link as if known, is considered a big step in connecting the to confidence, european official say it will help share information and develop the data economy. will insects have long been a part of the died in asia and africa in europe? not so much habits, of c

we are looking ahead to the opec-plus meeting on the one hand, on the other hand, there is very real geopolitical tensions vis-a-vis iran. we understand there's been airstrikes on some iran backed militia. it might make a nuclear deal less likely. our top story in more detail, concerns about the delta variant growing across the world. we talked about south africa, the country has raised its alert level. sydney has gone into a two week lockdown to fight an outbreak of the variance. it raises questions about the opening of the economy. joining us for more is bloomberg's rachel chang. how has the world been facing the new variant, rachel? rachel: we are seeing delta spread quickly and aggressively across the world. we know it is the most transmissible variant that has emerged so far and there is evidence it causes worse disease, and in young people. it is linked to certain symptoms. at the same time, the calculation doesn't change, the vaccines are effective against the delta variant, and prevent serious engine -- serious illness and death. dani: thank you so much, rachel. let's get mor

course, we are looking into the oil story, the rebalancing of the market ahead of opec-plus. goldman sachs is saying that you will probably see .5 million barrels put out in august by opec-plus, of course there is the risk of the delta variant. there is a consistency of north america driving the recovery. anna: thank, juliette saly joining us from singapore. acute with the update and wrap on what happened in the first half and looking ahead for the second half. cannot quite believe we have got here to the end of june. coming up, we have an exclusive interview with the ceo of the automaker geely. we get daniels look in his first international interview since taking the reins of china's largest pilot. raheem sterling made a decisive breakthrough against germany to undo the five years of her for england, but how did the pound sterling fair after the game? we discussed that at 7:30 and attempt to talk about fx markets that everyone is talking about in football. up next, we bring you another exclusive, we hit -- hear from the feds chris waller on the tapering timeline, that conver

the big question mark is going to be what does opec do. part of the reason for the recovery today as well is reports that shell production is supposed to grow next year at a relatively muted pace. so the question is willow opec, will they start putting supply back on this market. >> iran of course is a really big player when it comes to oil and there's a presidential election going on. how could the outcome influence the oil markets? >> this is a big variable for opec planners as they look to the back half of the year. iran is sitting on potentially a million extra barrels of exports they could bring back onto this market negotiations are ongoing in vienna, but the team that's leading those negotiations in iran, they are not going to be in power after august. and the election today in iran is expected to produce a very hard-line government now, the supreme leader of iran is okay with the negotiations but the real issue is if you don't get a deal done before this government leaves office in august, are you not having those barrels back on t

but we are running into an opec-plus meeting, and i wonder if mr. novak will make a call to release a few more barrels, just for old time sake. dani: it's all about restraint at this point. we know the u.s. shale patch has been good in that regard, not releasing anymore reserve. it does seem that is what we need from opec, that restraint, manus. manus: absolutely, but prince abdullah wants to see clear evidence of a strong recovery. so we are seeing -- we will see what they have to say as they run into the opec meeting next week. exxon saying the lack of investment will exacerbate supply. dani: definitely, it's very interesting to watch. that is it for "bloomberg daybreak: europe." the european open is up next. this is bloomberg ♪ ♪ ♪ look, if your wireless carrier was a guy you'd leave him tomorrow. not very flexible. not great at saving. you deserve better... xfinity mobile. now they have unlimited for just $30 a month... $30. and they're number one in customer satisfaction. his number... delete it. i'm deleting it. so, break free from the b

i mean you look at what opec said, and they're playing this about as well as the fed is playing their talking about talking, because they are -- they did increase production at the meeting, but they didn't, like, just open the spigots. this is the most disciplined we have seened out of the opec plus members, and that bodes well for anybody who is in this energy space. so i talked about unusual activity in exxon a week ago or so, scott, and the stock is up $3 from there, even after the additional pressure came from engine one for exxon the fact that they're cooperating, the fact that exxon is working with some of these folks from the esg side, i think, you know, if opec is right and we're already going to see 96% of the 2019 demand coming back, if we actually exceed that number, scott, we could be pushing towards the high 70s for uswti >> okay. i want to talk about it before we take a break. i want to talk about a topic we haven't talked about in a while and we rarely do, and i think we should given what is taking place in the markets over in europe that is whether, jim, you see that t

, non-opec, the cuts that have voluntarily made. you have u.s. shale, the prospect of iran, marginal cost barrels, but that could come back at higher prices like in canada. $80? are we missing the supply picture? i would be careful. yvonne: what does it mean -- do you think the recovery we see in the u.s. and europe is enough to offset the decline in asia? guest: here is the picture, it has evolved over the past few days. i believe that has been the main driving factor for this rally, and uninterrupted rally, fresh two year highs. i think the memorial day weekend and all of the buzz of activity, especially travel, reportedly 40 million americans into the roads and skies, last seen in december of 2019. what it did was reinforced the market optimism, the upbeat mood about oil demand recovery in the u.s.. the largest consuming nation in the world. which is already being supported over the past few weeks with the decline in weekly data, and demand figures on a weekly and four-week average. u.s. oil demand is now averaging close to 96% o

we have oil moving higher, over $75 a barrel, with opec delaying their meeting by one day. but natural gas on their, it has been ripping face, as matt miller would say because of how hot it is in the u.s. probably something you are used to in dubai, they have had to cope with temperature degrees over 40, i think that means everything falls apart in the u.s. infrastructure. yousef: i am used to face ripping. [laughter] thank you, danny. dani: i meant the hot temperatures. i am not used to it. as the u.s. deals with those hot temperatures and increase into your, let's take a look and see how we have been over this first half of the year. something interesting, something in your gtv library. we saw european u.k. stocks keep up with the u.s., which is in blue. over the past few weeks, we have seen the u.s. jump higher, it is outperforming versus your, u.k., that value benefit that those have gotten here in europe is trying to fade. let's get a look on what is ahead and behind with ben ritchie. thank you for joining us. if you look at the picture of the u.s. starting to outperfo

opec-plus to discuss july output. we see prices on brent, prices on wti rise to the highest levels in about two years. people are driving places and flying places. this has led to something of marv a tightening in supply demand dynamics. the key question is iran and what happens if the agreement comes to a task to start shipping oil. jonathan: your take on the latest move out of china. lisa: this is a huge deal. china allowed the u.n. to strengthen versus the dollar and then yesterday took a pretty big measure starting to take them out there was weaker than the expected reference for the u.n.. today for the first time since the financial crisis required banks for higher reserves of foreign currency. basically trying to weaken and offset the rise in the u.n.. i wonder how far they will go, what triggered this and what this means rate, that a lot of people thought that would allowed to continue decline. jonathan: it's a move in china's favor. nobody wants a stronger currency. this one will get more. we will see dollar w

and so now we have oil and opec has lifted its restraints yet so i think for now, it is just a supply demand issue that just keeps like pretty get hired will be interesting to watch because opec is many next week in the could decide they will draw more. >> interesting and meanwhile, the big news there really was not ms. at all of the banks pass a stress test given the trust and a stress test that they passed last march, i think the work expecting that they would go easily for unit. >> after relies as you pointed out, the banks and went to restaurants, and to scheduled ones and then the midcycle one as well. but this means that they can resume buybacks. it is expected that in total the larger banks overturned about 200 billion to shareholders and about twice the level that they did last year. put another way, manufacturing dividends and buybacks, 20 about 2 percent according to. jack: i'm guessing the market is pricing all that and is there any particular standouts next week. >> when the fed had results minutes later all banks for say okay it will be this. they asked the banks to into

opec policy when it comes to supply. dollar holding steady after a solid showing that upended bearish bets. some strategists see further gains. shery: right now we are headed back to beijing because president xi jinping is about to give a very important speech about the ministry of national defense. we have heard him speak this week, yesterday at the great hall of the people in beijing. he was talked about china needing new heroes going into this new century for the communist party. we just saw him make an appearance and have been awaiting this speech. we do not know when he will start speaking but it has been flagged as a very important speech that we are awaiting right now. haidi: absolutely. we need to wait for him to speak. we have heard him speak the last couple days about what the next 100 years and the need for new national heroes to drive policy priorities. let's bring in people who know more about this. tom mackenzie joins us and stephen engle. you have both covered this communist party story over years . tom, w