around opec and bite administration. you know, you've seen the cooperation with iran already that that could be an interesting dynamic, one of the founding members of opec doing something that perhaps they're not supposed to do. that it's possible that iran could get the obama deal of a lifetime from his v p current president. and what's interesting is we already have a nuclear material being refined at higher and higher grade, not yet at the 90 percent for weapons grade. but moving in that direction and not a lot of comment from the white house in that respect, it's not even clear that the cares just this week we have north korean plutonium production. back on at one of the reactors. again, white house was kind of silent, so my guess is, and if i were to bet a $1000.00, it would be that iranians and the sanctions that is reassessed and maybe eliminated by the end of the year. so 2022 could be an interesting year for opec. and for the oil markets, in this case, i think you could have some crude awakenings with lower pric

call for further production from opec. what effect will this and shale boom have if you want to call it a boom? obviously it's just coming back to where it was have on the oil markets. i mean, it means that consumers will finally have some relief with gas prices. oil settled down amount of one percent on tuesday, post fans 1st monthly last since march as apply increases. so the us, us plenty of shell, but i think the industry is going to be very cautious here. i do not over flood the market. it is in no produces interest to over produce and drive the price of their own product down. and opec makes some very good points about the overhang risks of coal, the dampening business and holiday travel for the remainder of the year. so i think the price will certainly come down a bit as the us ramp up to the production. but it's going to come down gradually because as much as the us can produce an export, it still pales in comparison to the buying the opec can do. and now david, iran is looking to further increase production with s

opec-plus stays the course. kathleen: ready for round two. the doj prepares a lawsuit against google. let's take a look at wall street. weaker than expected jobs report that cast doubt on a strong u.s. government jobs report on friday, maybe the fed has to keep stimulus. not all that impressive. s&p 500 gaining fractionally, however, when you look at the index, we are talking about mega cap tech, apple, amazon, microsoft, netflix. they went across the board. you can see a gain of 1.3%. at the same time, bonds managed to make some gains. the center of the range. weaker than expected adp report gave them a little bit of a boost. strategists are saying 1.90% in the next few months. they see a bearish formation on the chart. looking at new york crude, the market open down about a half a percent, 2% earlier in the day. people knew that opec-plus supply hike was coming. when the news came out, it did fall. i love this chart. this is a bigger picture. ted is a gain of nearly 650%. it is so interesting to me, if you would told me 10 years ago that bi

let's get to the opec story. opec-plus has stuck with a plan to boost crude oil production, wagering the global market can absorb additional supply as demand improves. ship tracking data shows the global flow plunged last month. this is raising questions abo individual nations' ability to raise oil supply. the first person we wanted to speak to on the back of this meeting. the amount of time they spent discussing this, just one hour -- the harmony around opec-plus, do you see harmony? >> for now, definitely. felt a bit like everybody is in holiday mode. seems like an end of august, early september meeting. i think the harmony is very good right now. there was some concern. there were definitely concerns about covid cases rising and demand being lackluster in asia, potentially the u.s. as well, but with rent up $72 -- brent at $72, a pause was not something they would have gone ahead with. i will say, coming winter, if demand concerns are still there, i would not rule out. for now there is harmony. tom: all of it

opec-plus

.,, move away from fossil fuels -- opec? a y e, ~ a, opec? why do you think gas and oil rices opec? why do you think gas and oil prices are _ opec? why do you think gas and oil prices are where _ opec? why do you think gas and oil prices are where they - opec? why do you think gas and oil prices are where they are - oil prices are where they are today? is one of the biggest impacts, the start of the impacts, the start of the impacts of energy transition. one of the biggest measures is inflation and what governments have not realised is that of course everyone wants a cleaner air and greener environments but we have not moved demand quickly enough, demand takes a long time to move and we already have stopped supplies in many areas and that's why it's creating this mismatch, we have cut down coal plants in our gases been called into base load generation, driving oil upwards. this will be very, very inflationary and we need to keep investing right now and we are barely investing enough to keep oil production flat at 100 million barrels a day let alone forfeeding 100 million barrels a d

opec is ready. opec needs to discuss hikes. that's your headlines in europe. let's get over to london.

his thoughts on opec and the opec-plus meeting that takes place today. coming up, the fear card. one pole. the cdu tells us a red green coalition would govern from the far left. the latest on germany's election is next. this is bloomberg. ♪ ♪ >> the key issue now is that we are really fighting for the majority in parliament. opinion polls show that we are far behind this goal. we have to fight. now we are having the key persons on board. he's not the only one who is fighting. we are having a team. i'm part of the team. this doesn't mean that this is something. it's a decision for the future government. >> [inaudible] >> absolutely. i'm confident. i'm sure that we are having the chance to win the election. winning be -- means becoming the biggest parliamentary group. >> [inaudible] >> that is fair. this is only part of the truth. the truth is that this parliamentary group will become much more far-left than we are seeing them actually running. this is the difference. these are the kinds -- guys behind --. we are seeing a parliament with a left-wing, very strong. that's the rea

opec-plus stays the course. members agree to stick with their planned supply hikes as oil demand improves. how one covid case in vietnam upended toyota's output as delta exposes the risks of supply chain stocks -- stops. haidi: breaking numbers when it comes to korea gdp. cpi numbers. south korea. second-quarter gdp expanding by 6% year on year. that is revised higher from a 5.9% increase. when it comes to that quarter on quarter number, 8/10 of 1% gain. marginally higher than the increase we saw in august. consumer prices are up 6/10 of 1% month on month. that's a faster expansion than expected. 4/10 of 1% was the analyst expectation. cpi raising 1.8%. expectations were 1.8%. consumer prices overall are coming in at two points of percent growth year on year. this comes on the back of what we know are the bok concerns about household debt burdens and the overall level of debt in the economy, hence becoming one of the first or the first major agent central banks to start that pregnant -- tightening process. kathl

it will be more challenging for opec. broadly, just one member, as long as opec is in the driver seat, they can keep this going and manage this market even after 2022. yvonne: jeff brown, vice president of energy consulting firm fte, joining us from dubai -- energy consulting firm fge. this is bloomberg. ♪ yvonne: here's your latest business flash headlines. bloomberg sources say into it is in talks to by malechimp, which offers digital markets including -- digital marketing services including automation products. intuit is the software company that owns triple tech. netgear rising in hong kong after reporting results that rivaled estimates. the firms are revenue of 3.1 million in the second quarter, but -- with online game services accounting for almost 2/3 of that. morgan stanley boosting pay for the second time in a month. our sources say the firm bumped base pay for junior bankers to 100 $10,000 in march. it will now also cover first-year staff in the trading condition. the rivalry is intense these days. david: it r

are we seeing demand destruction or opec response? anna: we have seen a resurgence of economies around the world and there is a good chance many countries can still pick up a relatively high price. depending on which economy is able to take more oil, we will see it winning the oil wars. not sure about the demand destruction. at some point, since we are still not out of the pandemic, and that is what complicates all of the above. amanda: when it comes to natural gas, there are real complexities, especially in europe. russia stands to hold a lot of powerful cards in the natural gas game. what is going on in terms of its pipeline to germany, natural gas supplies in europe right now? anna: when it comes to europe and natural gas, it is the perfect storm. we have seen demand soaring internationally and in europe post-covid. additional supply that would otherwise come from lng -- enough coming. that is what is missing from the continent, not only to be able to see its supply now but through the winter. that was not restored to the same leve

opec is ready. opec needs to discuss hikes. that's your headlines in europe. let's get over to london. >> listed a look at how we are shaping up in europe. a really strong session, still negative. also had my eye on today. we are seeing future higher. if they were down from 7% and that's alix: a little less money being pumped into the market. in the u.s., it is a safety bid and it is continuing to be. numbers coming in very strong. you are also seeing utilities. the dollar trading heaven -- the dollar trading heavy. a big part of that is the ism's. you've got a lot of wage increases happening. the demand still strong. >> of got my eyes focused on the european pmi's. a lot of this coming from germany. that is that green line. not able to meet all of this demand. lack of parts, lack of raw material. all of this weighing. the question is how is this going to fit into the inflation. alix: that debate about the impact of inflation, the latest to weigh in on the banks meeting next week. >> we should also not ignore considering the existing uncertainty. alix: marilyn

it does show that the opec producers are in harmony. they did agree to their previous plans, praising 400 bowel -- 400 barrels a day for october. it is no surprise to the market. the meeting lasted less than an hour, that is a big contrast to the beginning of july. opec is more confident about the recovery that is going on globally. especially the resurgence in china. i think they were happy about it. they were happy to go with the previously announced position. opec-plus also said in a statement that the market are strengthening. they seeing recovery at the moment. their next meeting will be on october 4. >> what are analysts making of the deal, does not mean a few uncertainties going forward, they kick the can down the road? >> i think the latter. we are seeing the immediate recovery happening. in the longer term, there are a lot of uncertainties. we have the delta variant that is continuing to spread globally. we are seeing other variants that might be continuing to spread. there's a big? -- there is a big question mark over whether

if oil moves higher, opec is meeting every month. will opec come under pressure from the white house to put more barrels on the market? china and india are tapping stockpiles to cool off prices. i do think watching the response from consuming nations is important as well. >> helima, if you look at what is shaping up with the price action, is it more balanced in your mind given what you expect with demand and the delta variant with supply? are these prices justified at this level or are they due for any pull back anytime soon >> i think these prices are justified at this level, but important factors to watch some analysts are talking about oil prices moving higher next year it is worth noting we have 5 million barrels and opec production off the market. if opec decides more barrels are needed, they have the monthly mechanism and put more barrels on the market. i think we should be watching if we think about the breakout to the upside do we see supply disruption beyond storms in the united states libyan production struggled. do we see

so pressuring, opec if successful, get you the equivalent of attacks. great, you pay less at the pump, you have more to spend on what you want your currying favor with voters. you don't ask for domestic production to increase because it betrays your green constituents and those who want to end the use of fossil fuels domestically. so instead you have opec move the needle for you relieving economic pressure and you get to keep your e s g. that is your environmental social governance credentials. you keep them intact. i think that's what the administration was all great inside as always were . and how to leave it right there. david mckelvey, of mac, of any financial. thank you so much for your time. thank you. and social media years is in the united states, and united kingdom are spending more time on tick tock than you tube, according to a new report for monitoring firm app. annie, now there is a lot of data to suss out here. first of all, take packets to pants. youtube, in average time spent on the app per user. of course, the google owned a video platf

in response to president biden's calls for opec plus to increase output. now they're questioning why the administration is calling for an increase in foreign oil production rather than domestic. what do you make of that? yet, u. s. domestic politics is both unreasonable and unkind. so if i say anything, somebody's sure to hate me. so here i go. ratings to the current administration are in decline for a variety of reasons, but inflation is a fact which consumers face on a daily basis in the grocery stores at the gas pumps. so pressuring, opec if successful, gets you the equivalent of attack rate, you pay less of the pump, you have more to spend on what you want your currying favor with voters. you don't ask for domestic production to increase because it betrays your green constituents and those who want to end the use of fossil fuels domestically. so instead you have opec move the needle for you relieving economic pressure and you get to keep your e s g. that is your environmental social governance credentials. you keep them intact. i think that's what the

with opec, the royal bank of saudi, we are questioning opec capacity. if you look at -- some of the major countries, nigeria, angola are not producing to their quotas, so they can't even meet the current quotas. they are becoming very dependent on a limited number of countries capacity. my estimate is that we could get one million to 2 million barrels per day from natural gas, not to mention the additional coal. it is a little bit out of control here. of course, to the given extent, there is really a major underlying problem here, no question. taylor: at e.u. fix an underlying -- how do you fix an underlying secular problem when pretty much nobody but china has an ability to control a smooth transition? paul: i was not joking at all. look at the energy debate in the u.s., it is atrocious. you have joe biden coming on tv and saying we are going to be zero carbon in power systems by 2025. he means 2035 but that is impossible. it is kind of scary that the market will sort it out. you have measures in the u.k., a separate petrol crisis which is totally diff

. >> meanwhile opec saying oil demand continuing to 2035. >> opec secretary-general saying they are optimistic that demand will continue, albi at at a bumpy pace. >> once it is over from this pandemic that we are past the peak commit if you like -- peak, if you like, the recovery will continue very slow. it may be bumpy. we are on the path of responsible trajectory. >> let's talk about the upward trajectory. we are seeing oil prices at three year highs. in the u.k., that is creating panic buying. long lines for gasoline. some stations have shut down. let's go into the price charts, you can see britain crude had hit $80 a barrel. it pulled back a bit because of the selloff we saw in more risky assets, but if you dive into the bloomberg, you can see west texas intermediate is a three year high. it was above 76 in the most recent session, pulling back because of unexpected surge in our weekly supply data, which we will get confirmation of later. how much higher does it go? analysts from goldman to bank of america are saying a lot higher. goldman sees oil prices possibly seeing 90 -- $90 this year

i think that's basically what opec has been saying. your question is on supply. global producers have ample slack to meet demand. if there is a surprise on the upside in terms of successful again, successful vaccine delivery demand is where i would spend a little bit more time. we had indications back in july of slowing chinese imports . we should not assume that the through 10 to 11000000 barrels a day has a home. if chinese financial markets take a hit, i think we're close to the credit concerns in china are in the early stages. and a total of one of the housing bubble in china could negatively impact the economy. and crude imports to the tune of we would estimate $3.00 to $4000000.00 barrels a day. opec should pay equal attention to chinese financial fragility, as it does vaccination rates. the great rhino is in the chinese credit markets. i will continue keep an eye on that and i'll certainly be interesting to see where demand goes from here. david mckelvey, of macaroni financial, thank you so much for your insight. thank you. have

opec, though, is staying the course. they do not think that demand is going to drop in the rest of 2021. looking ahead to 2022, they do see a market surplus but are forging ahead. matt: what impact did ida have on pricing? ellen: the hurricane did not have that big of an impact, although i am sure they were considering the fact that nearly 2 million barrels a day of u.s. offshore production has been off-line and remains off-line. right now, even though there does not seem to be any damage to the offshore platforms are the rakes, the issue is that there has been damage to a lot of the ports in louisiana where that oil goes. even the deepwater offshore port loop does not appear to have sustained damage, but they cannot seem to restart production or import through that port because of damage to other ports. matt: in terms of other demand or supply issues, what strikes you as important to be watching? ellen: it is important to keep and i on asia, because we did see some issues emerging in terms of demand. air travel was down

traders tracking the opec meeting which begins at 11 a.m opec, russia, other allies are sticking to plans to add 400,000 barrels a day to the market each month through december let's talk about this and more with the head of oil markets at wright side energy your thoughts on opec today? this is a group that tends to over promise and under deliver should we expect action? >> i think it's fair to say the market expects this to be the ratification of their plan of bringing back 400,000 barrels a day of supply also for october so this could be a non-event at the end of the day, but the market is trading higher and i think we're seeing, you know, a little bit of there classical pattern and if the decision actually is to just ratify a $400,000 supply increase next month we could see a slight pressure downwards of the home price after the fact. >> we talk about supply getting constrained. you have tropical storm ida and geopolitics yet oil prices slid in august by around 7%. why do you think that was? >> that was driven by concerns that, you know, these variants that we're concerned about now, t

manus: the opec secretary-general speaking to me late yesterday evening. the energy markets have retraced slightly. the head of european energy research at morgan stanley. i could not get the secretary-general to even hint whether opec will be prepared to add more barrels. but let's deal with this oil market. the small pause this morning but is it a pause before another resurgence? are you in the $1900 camphor oil or demand disruption? good morning. >> good morning. he is certainly a skilled deflector of those types of questions. look, the question that you are asking is exactly the right one. the real conundrum is that we should be undersupplied. and then we are finding even more inventory tools so there is something to be explained in oil market for six at the moment. the picture is not entirely clear. could it be well more than that? we can find 2 million barrels a day of inventory over the last month or two. so what seems to be happening is that oil prices have long disconnected from the marginal cost of production but they are searching for the price

and opec is having trouble bringing back production as well, ana. a nba: we have goldman sachs that came on early in his view. oil prices have the potential to explode. bloomberg anthony dipaola. we're very much focuses and on the metals rally and gas we'll get further detimes the european gas futures more than trickling this year to a record. we'll talking more about that a little bit later. coming up, the light coin foundation admits it screwed up that sent the crypto currency soaring. we hear from the create or charlie li. plus, financial advise that explore all easable solutions to ease its cash crunch. we'll get more from hong kong. this is bloomberg bloomberg ana: welcome backing to european market open. 25 or so minutes to go until the start of cash equities trading. the futures look fairly mixed. we are waiting for that c.p.i. number after the united states a little bit later on. here in london, here is laura wright. laura: booster vaccinationses will be rolled out to the most vulnerable people this autumn as he sets out his new approach to

after shuttering pipe lines at home he is asking opec to produce moril? they turned him down. covid is spreading faster than at any point under trump. biden is rationing monoclonals antibodies treatments to hurt the red states governors. biden never mentioned monoclonals antibodies until a week ago. france recalled their ambassador and israel is threatening to do the same. every enemy around the world is emboldened and china's threats go worse by the day. the southern border a start. -- disaster. for 7 straight months joe and kamala harris twiddled their thumbs. the "washington post" went to texas and asked migrants why they were coming to the border? they decided to risk everything after hearing from friends and relatives and smugglers that the biden administration would let them in. joe and kamala harris, we did not forget. the root cause of mass migration. look in the mirror. you invited this mess. you see the images of migrants camped out under this bridge. 11,000 in texas. they are now being let into our country by the thousands without a simple covid test. no vaccine man

to no one's surprise opec refused. earlier this year a baffling sequence of events on his very first day in office, president biden canceled the keystone x.l. pipeline project eliminating 11,000 u.s. energy jobs here at home. and then he gave a green light to russia's nord stream 2 pipeline across europe. perhaps most appalling is the nord stream 2 decision was made in the wake of russian hackers shutting down the cone colonial pipeline affecting tens of millions of americans up and down the east coast. these decision significances by the biden administration have caused iri reserve thebalance of my time prabl harm, not just to the u.s. but ourure peaian allies who are growing increasingly weary how the kremlin used its newfound grasp on the energy supplies to advance doing so is somehow saving the environment is nothing more than amis match. it is a tkeus as display and american taxpayers are robbed of energy options and hard-earned money. the biden administration policies are damaging america's independence and we mu

we have an opec meeting next week. they will likely continue with their plans to add 400,000 barrels a day into the market. there is a question how much those producers can increase. the markel wi --the market will absorb that and more. francine: energy prices are surging to a record. can we once and for all break it down to understand what the problem is. is there not enough gas from russia? or we have not stuck filed enough? can you break that down for us? will: in terms of power and gas, last winter depleted europe's gas supplies. we have researching demand as we come out of lockdown. russia is maintaining some oil fields. it cannot send that much more gas. asia is also trying to rebuild its stock piles ahead of the winter. a lot of consumers are fighting over a nice of by, and that sends -- fighting over supply, and a lot of the european system relies on gas powered plants. tom: can we zero in on the u.k. story, the measures the government are lining up to get the military involved to ease the supply crunch around

manus: the balancing act is opec is putting 400,000 barrels a day back onto the market between now and christmas and the whole debate last week -- i'm wondering why they pivoted so quickly. ida caused a drop but that will alleviate, so are we over embellishing the potential for constriction? >> that is a possibility going forward that it could get out of whack. when we talk to traders and analysts, that is something that comes up. but there are a lot of different unknowns and you sort of have to see where things shape out. essentially, when you look at the u.s. where shale drivers or the offshore production in the united states, it is expected more will come online after the hurricane last week. tom: i want to get your view in terms of the politics of norway. some did by the oil reserves that norway is blessed with. the dilemma -- what is the them that weaves across from norway and the dependence on carbon? >> it is an interesting debate. take a step back and look at the bigger picture. not just norway but look at other countries that are looking at creating diversifying away from oil.

i think you've got opec as a governor of the oil market so i think that they can manage those prices a little bit better on the gas side i just think we'll wind up seeing some supply response, and the real issue here is inventories in winter. and so as we move into winter if it's cold, all bets are off. if it's not we're going to come back more to a normalized price. i think we've got a better floor. we're not going to two bucks we're going to three bucks in the u.s. we're not going to, you know, five bucks in europe we'll go to seven. but a better floor but a little more volatility. >> but a huge downside traders who are on the long side of nat gas, what you're describing would be losing 70% if we reset back down lower. i think it's a huge risk for those thinking about being long for some of these names. we got to go to washington for this vote. we've got some breaking news ylan mui, what's the latest over on capitol hill? >> the senate now has the votes to pass a bill that would fund the government through december the 3rd. it needed 60 votes to pass so far it has at least 63 in fa

yvonne: that was the opec secretary-general speaking from vienna with bloomberg earlier. we are not seeing a lot of movement in the stock market but it was a shocker when it came to that gdp report on the third quarter, unexpectedly contracting more than 6%. economists were expecting 2.25% it just shows the supply chain woes that are plaguing the economy right now. rishaad: a mix contraction. let's look at what's going on with equities as we head toward the japanese lunch break. steep declines in japan. looking closely at that government pension investment fund. the topics led lower by virtually every sector. the only one on the way up is the transport index. it's a big day in terms of politics as well. yvonne: japan's ruling party picks a new leader to replace the outgoing prime minister. that is ahead. this is bloomberg. ♪ (announcer) the core is key to losing weight, getting back in shape, and feeling good. introducing the aero trainer, designed to strengthen your core, flatten your stomach, and relieve stress and back pain. it conforms to your body and increases mus

he's part of the opec plus countries. he wields a great deal of clout. what do you think he will do? >> i think right now he's going to continue doing what he's done the last couple weeks. send oil to the united states in record numbers. you know, that's what is happening right now. for the last two weeks or two months russia has been exporting oil to the united states because the united states has pulled back from producing oil. more restrictions. so russia is becoming a major player. today russia is a major player in the opec plus cartel. they met today. they decided to follow-through on the commitment to raise oil production by 400,000 barrels a day. russia threatened the other members and said hey, if you don't supply, we have the ability to produce above our quota as well. so in other words, keep in line and we'll play the game. the sad part about this, if you look at the demand numbers in the united states, the amount of oil that opec is going to give us, 400,000 barrels of oil a day is not enough at the end of the year because it's supply deficit

tom: what is the function of opec-plus to offset some of this pressure? sharon: well, opec-plus is bringing back supply to the market at the moment and producing more. the summer driving season is coming to an end and we do see some roadblocks in terms of demand in parts of the globe. some people are indicating we might see a small surplus by the end of this year and that might pressure prices, but we also must remember that it is the u.s. hurricane season and hurricane ida brought a huge impact in terms of production in the u.s.. there is a lot to be figured out. tom: sharon cho, thank you. turning to germany, we are less than two weeks from a historic election in europe's largest economy, focus already turning to the likely coalition options. yesterday, potential kingmakers were said to be open to more spending and investment. joining us is maria tadeo in berlin. what does this mean for coalition expectations? maria: it is a very strategic and tactical move that it is interesting. lender said yesterday that the idea of a black zero is effective for the

amrita: this is tricky for opec. if you remember just at the last meeting, we are talking about prices below 70, but they stood there course and said we will bring back the 400,000. monday, they will do a similar thing. they will bring back another 400,000. the drip feed will continue. they are going to keep bringing this back to the market. these are small volumes. we are looking ahead into a winter, if it is a cold winter, that will get absorbed quickly. at $80, you are biting into demand destruction. let us not forget india. that is why you are getting on these countries. i want to highlight the fact that for oil, inventories are extremely low. there is not that much of a buffer. ultimately, if prices go too high, opec will have to come back to the table and safe maybe we need to bring back more liquor. that is not going to happen straightaway, but it can happen in a couple of months. guy: quick question on russia. what does russia do next? the pressure is mounting, but it has its own stops to fill. when did we se

., from the likes of opec, opec plus as well at a time when demand is picking up and there is an easing of covid-19 restrictions world wide as well the problem for that, frances and philip is a single later that will transpire to higher prices at the pump as well average prices $3.19 >> trickle down, thank you >>> coming up, check your freezer for a popular frozen pizza. >> the greatest gymnast that ever lived simone biles says she should have quit before the olympics >> it's ready to go. the spray breaks down dirt. and the pad absorbs it deep inside. unlike my mop that can spread it around. and wetjet's even safe on wood! all this? buh-bye. it's so simple! i get a cleaner clean every day. try wejet with a money back guarantee. hi. so you're the scientist here. does my aveeno® daily moisturizer really make my dry skin healthier in one day? it's true jen. this prebiotic oat formula moisturizes to help prevent dry skin. impressive! aveeno® healthy. it's our nature.™ try the body wash, too. ordinary tissues burn when theo blows. so dad bought puffs plus lotion, it's our nature.™ and

opec sees stronger demand for crude this year and next, at the same time that non-opec out but is supposed to be down. this directly speaks to the shale patch. what is the tipping point at which we start to see supplies go up to meet the demand and regulate? francisco: i think right now we have a very short window into the future or get we are still in shorts and the northern hemisphere, but it is going to get very cold. i think natural gas is going to be very strong. and if it breaks out to $120 a barrel and we go another $10 higher which would put us at $180, i think that would take out the whole sector because people will look at cheaper sources for heating and power generation. we see a very strong market in singapore for that reason. so when the winter gets cold, we will see the entire energy complex ripping higher. tom: what does this say about the emergence of the pacific rim? francisco: i think the pacific rim is definitely coming back. the one thing i would note is that one thing we have been tracking with a lot of interest is what is going on in the property sector in china, was

brent up over $80 as we go into the opec world outlook. morgan stanley want to get more defensive on the equity story. do not get caught up in last week's strong rebound. you have five year paper above 1%. 10 year paper at 150. where does that become a problem? these energy markets are perhaps the tailwagging the bond dislocation dog. natural gas up 11% in one trading session yesterday and the army are going to come to the rescue apparently in the fourth quarter. >> i feel like we have to stick with the commodities story. it's not just gas and oil. it is also soft commodities. rivers too low for barges to cross. fire season getting underway in a bone dry forest, happening days or weeks apart and all in one country. that country, brazil. as one of the most important reducers of agricultural commodities, the disruptions have the potential to cause food inflation and supply bottlenecks across the globe and it is the subject in today's bloomberg big cake. joining us now is our agricultural reporter. painted the picture for us. how bad has it b

the opec meeting, opec-plus on october 4, drilling down into the oil and energies story later. copper currently lower by 1%. a ninth day of liquidity injections as well ahead of a national holiday in china. continuing concerns about evergrande. that is the picture currently. a little under one hour from the market open in europe. jay powell and janet yellen use their congressional testimonies to one of catastrophe of the u.s. fails to raise the debt ceiling. yellen said the treasury will run out of cash on october 18. if congress does not act. elizabeth warren criticized the fed chair at the hearings. >> your record gives me great concern. over and over, you have acted to make our banking system less safe and that makes you a dangerous man to head up the fed and it is why i will oppose your renomination. tom: let's bring in our chief asian economics correspondent, enda curran, for more on this. for we get to you, you have a breaking line on japan because you have the runoff for the leadership of the ldp and the line is that we are getting across the terminal is that kishida has

in the short to medium-term, we still have opec and opec-plus bringing production back. long-term, if we get strong growth and we don't have reinvestments to bring new supply to the markets, we could see a tighter market. alix: that was part of my interview with mike wirth. what i found interesting is, mike is saying the oil market is broken, because the signal you are getting from the market is not what the oil companies are executing on. they are different in ways that were not before, and no one knows how that part will wind up playing out. guy: another part of the market that is broken, particularly the bond market. my take away from that conversation is he is cautious, and i wonder if that will be a problem. i wonder if this transition will accelerate. what we are seeing in europe will only further that. we will talk to the former boss of -- in the u.k. he says you are accelerating the transition, not slowing down. mike sounds cautious, we don't want to spend money, but maybe there is a danger this transition gets away from him. alix: for them, they are ramping up $

stocks not catching up to that rally in crude prices , although we could see a bit of a boost, even as opec predicted stronger consumption. we are also looking at crypto assets. it has been a wild ride for bitcoin and other digital coins, again after a press release that all market will accept cryptocurrency as payment, but then walmart denied the reports. we have the news telling the crypto markets, the crypto index down 1.5%. we are also watching coinbase, looking to raise $1.5 billion from a bond sale. we are also watching ark's next generation etf, as we heard from kathy wood that they will be investing in a canadian bit owing etf. it has been all about the tax plan and congress, the ways and means committee releasing the most detailed picture yet of the tax overhaul. the market trying to digest what this means for capital gains taxes, corporate taxes, taxes on individuals as well. haidi: what are the implications for the inflation outlook as we count down to the cpi in the u.s.? we are looking at data that perhaps suggest inflationary pressures, while we are seeing them across the worl

tom: to what extent are opec-plus and the grouping of opec-plus understanding those dynamics and their response as they look ahead to the october 4 meeting? christof: no. -- i don't know. this is a very strange thing. oil efficiency has improved. it declined year after year after year by the same amount. the rise of china and the collapse of the soviet union, it's very strong regulatory and there's reasons for that. but they are aware of one of the possible consequences, which is if this continues, we will see oil demand peaking before the decade is over. that is going to be consequence of for oil market -- consequential for oil markets. as they have done over the last decades. manus: you are here for gas tax, the great and the good. are we in a gas prices? are these going to ratchet higher? asian and european prices are spiking higher, $26 to $27. are we in crisis? christof: i would not say it is a life-threatening crisis. are we facing gas supply disruptions? very unlikely. probably not in europe at least. only with a confluence of a very cold winter. are we in a situation where we s

opec deciding to boost output. you have ida which is causing an increase in demand and a decline in supply. oil futures in new york near $70 a barrel. that's the first time in a month. investors are betting that the market can absorb the additional supply from opec, particularly as the u.s. grapples with ida's impact. 94% of the gulf of mexico crude production remains shut. we know that the secretary of energy has authorized the use of strategic reserves. that's when the government releases its own supply and to the public. they are exchanging with the exxon refinery in louisiana. we could see more of that in the days ahead. that regulation keeps it from being a huge deficit. that can also impact price. it's expected that oil will bounce back from the dip we saw in august. it will stabilize around this level to the near term. back to you. haidi: let's get you the first word news with vonnie quinn. vonnie: china will set up a new stock exchange in beijing. they did not provide a timeline. they said it would deepen r

you know, today, opec predicted and of course they are talking up their own books but opec says despite the growth of renewables , oil will still remain king through 2035. what do you think about that, and how does that, you know, you've made moves in other directions. what do you say? >> well that certainly is not going to be the case for the power sector and it's less and less the case for the home, heating and business process economy. now, there maybe some parts of the world where that's accurate, but as you know, we're electrifying transportation, we moved away from oil as an electricity fuel decades ago so i do think there will be constant pressure on the use of oil. that demand will go down as a primary energy source. it has tremendous value, as a feedstock for product, whether that's paints, plastics or a variety of other products that we use on a daily basis but as a feedstock or primary fuel source in the power production business or as a replacement for natural gas i would respectfully disagree. ashley: it's interesting, because the administration, as we know, is all about gr

he was begging opec and russia to produce more oil at the same time he blocked american companies from producing oil here at home where we actually have better environmental standards than in any opec country or in russia. yet he green lighted a pipeline so russia could create jobs in their country while killing jobs in the united states. it's catching up with the president. people are paying attention. people are fed up. they don't want to pay for all of this big government socialism and yet that's where we are. that's what's going to play out this week. there's crisis after crisis that was created by president biden and he's the one that should step up and say enough is enough and start working with republicans. start following through on his promise. here in the house, sam grave, the leader of the transportation committee, has been wanting to work on a bipartisan infrastructure bill but he's been shut out of the process from day one because they want to go forward with their go-it-alone bill. in their bill they have over $100 billion in solyndra-style slush funds. slush funds are no

he wouldn't have given up energy independence or beg opec. donald trump -- we had a 25-year low in terms of illegal immigrants coming into the country. we didn't have a single american killed in afghanistan in 18 months under his policies. they believed he would kill them. i don't see that deterrent factor with joe biden. >> no, that's exactly it. look, donald trump was rude when he wanted to be rude. he could be a bull in the china shop. everywhere he went, he brought a new china shop with him. that's his style. he caught people's ape tension, he changed the way we did business and tremendously effective across the board, lowest poverty rate since 1959, china changing its behavior. no newars started. that's the result of policy. that's why i'm a policy first person. i don't care if joe biden tweets or doesn't tweet. it's not what's relevant to how to protect america. enforce america's laws, move it forward. when it comes to policy, joe biden is showing he is not up for the job. his judgment is wrong, and he's a liberal and liberal as it gets