valero and phillips 66 have already lower their lights -- rates. an industry expert points out you do not just turn down -- turn off a switch to shut down these refineries. it is complicated. so they are waiting until they need to shut down to do that, so capacity continues to come down. it's interesting as we see the g20 nations meet, we know some additional oil producers may roll in with production cuts. and also for the first time, a u.s. president, president trump, is being pushed to push for higher oil prices more in line with saudi arabia because this will mean stability for oil markets. youi: all right su, thank so much for that with the latest on oil going into the opec-plus meeting. plenty more to come. this is bloomberg. ♪ global cases of the coronavirus infection have topped 1.5 million just one week after passing the one million mark. new york, the u.k., and belgium reported the deadliest day so far. cases are rising again and governments continue to hammer out support programs. the world health organization continues to caution again

that includes majors like exxon, higher by 3%, but also services companies like schlumberger, valero. it is really the e&p's outperforming. some rx is up by about nine rx -- cimarex is up by about 9% today. these are leading the s&p. vonnie: kailey leinz, thank you for that. it is time for your latest bloomberg business flash, a look at some of the biggest business stories in the news right now. boeing will offer voluntary buyouts to its entire staff. it is a bid to adapt to coronavirus crisis that could depress the aircraft market for years. in a note to employees, boeing's ceo david calhoun says it is important the company start adjusting to its new reality. southwest will become the second u.s. airline to apply for federal aid. in a filing today, southwest says it is looking for possible grants that could boost liquidity and provide job security for its employees. merrick and airlines is already said -- american airlines has already said it will have to up billion in aid. jamie dimon back to work today after heart surgery. , he is, like so many working remotely today. he underwent

cisco also down after metrics in earnings disappointed and valero among the energy prices lower on that oil dropping. guy: let's get back to jordan rochester joining us from number -- joining us from nemura. if bernie wins tonight, by were sell the dollar? jordan: it depends. the japanese yen would strengthen if you saw strong showing from bernie sanders. it is a slim win, then the market will keep in mind that joe biden could do well when it comes to super tuesday. however, the models are saying bernie should get around 30% of the vote tonight. if he gets 40% or higher than that, that will then lead to a big change in the models, big surprise in the polling, and we will see the bernie sanders risk premium go up. you will see the s&p supper. it is unclear what this means for emerging markets are high beta economies because you will see health care under pressure. when you see financial stock selloff you see safe havens go up. the dollar against the yen, against the suisse will weaken. against other places like emerging markets it is less clear. vonnie: where is the best action in forwar

this would affect shares of renewable energy, even valero according to some analysts. would you retroactively extend the one dollar per gallon credit for 2018 and 2019 but also looking to extend that into 2020 and then it drops by $.20 a gallon for every year between 2021 and 2023. analysts at piper jaffray and roth are saying that is more ambitious than they thought. very good news for some of those companies. notably, it does not include solar. it does look like right now it could extend some of the wind credit. a lot of debate still going on. vonnie: i want to break a headline. rick gatesign aide sentenced to 45 days in jail. we have a decision in the rick gates case. he was the star u.s. witness against paul manafort and roger stone. prosecutors had asked for him to only be given probation but he got 45 days in jail. we do have an answer on the rick gates sentencing. 45 days in jail. back to taylor riggs in san francisco. wind energy is included in these tax credits, solar energy not so much. why is that? taylor: i want to take a look at some of the companies we kn

look at the biggest movers in that sector, exxonmobil and marathon down the better part of 3%, and valero and conocophillips down by about 1.5%. vonnie: thank you for that. remember the function gtv on the bloomberg allows you to browse all of the charts featured on bloomberg tv. analysiswith key and savior have her it's for future reference -- and save your favorites for future reference. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: from london, i'm guy johnson. this is the european close on "bloomberg markets." let's check in on the bloomberg first word news. here's courtney donohoe. courtney: there may be a pitch in negotiations for an interim trade deal between the u.s. and china. donald trump says the u.s. hasn't agreed to a rollback on tariffs with china. in fact, he said he hadn't agreed to anything. president trump won't impose tariffs on european cars next week as threatened, according to european commission president jump on juncker. -- president jean-claude juncker. eu has threatened to impose its own tariffs on american goods if president

we have valero down five or 6%. if this continues, it will have an impact on the consumer. kevin: our thesis going into this is there was global economic deceleration. we just got numbers out of china. there industrial activity continues to decline. we are putting oil prices lower they are today. the macro events will overwhelm the commodity prices. that said, what you tend to see is the supply response to this. that is more of a longer-term thing. we are not changing our longer-term macro views. the economy is growing worldwide. we are seeing deceleration outside the u.s. that is a bojo for a flat commodity price. vonnie: is the market under appreciating the potential for escalation and war? kevin: we have an industry that is going out to the line and pulled back. we will three if that is carried out or not. because of the infrastructure that is put into place, investors are looking for entry points. some of the more value centric investors have had this overweight energy. that is benefiting. on the cash flow forecasting, i think the where probability is way down in the si

valero missing on second-quarter earnings. sincet plunging the worst 2007 as china is taking a bite into their business. q2 for four down 7%. down.tlook -- for ford , the worst day since january. ,acebook down, despite beating their sales growth is disappointing. after the bell, amazon and alphabet, it will be interesting to see what the rest of the faang trade does put up. david: we will come back to that trade with senator marsha blackburn of tennessee. up, the british government has a new direction. we talked to the british consul to new york anthony phillipson about what to expect. that is next. this is bloomberg. ♪ david: this is "balance of power" on bloomberg television. i'm david westin. we turn to mark crumpton for first word news. mark: boris johnson is hitting the ground running, speaking to parliament for the first time since becoming prime minister. he urged the european union to rethink renegotiating a brexit deal and reiterated his onmitment to leaving the eu october 31. the eu rejected johnson's demand that t

eog resources rising after outperforming in the first quarter and valero energy gaining an upgrade from jpmorgan. i also mentioned tech doing much better. microsoft and apple leading the way. apple was the biggest laggard on the s&p 500 yesterday. it is now the second-best performer on the s&p 500. also let's look at chips because they were struggling yesterday. this was the philadelphia semiconductor index up 2.2%. also advanced micro devices rising close to 3%. let's take a look at bitcoin. not something we've talked about for a while, rising for the 12th straight day. this is year to date, up 113% since the beginning of the year, trading above 8000. doing pretty well. that 12 day winning streak the longest since 2017. david: what a difference a day makes. thank you so much for all of that green. sticking with the trade war, is tit with chinar about economics or security? that is coming up and this is bloomberg. ♪ david: this is balance of power on bloomberg television. we turn to mark crumpton for bloomberg first word news. mark: at least four people are dead after midair collision

the company sold three plants last year to valero and shut down one. its new strategy is to transform itself from ethanol into a protein producer. think of it as food for cows and chickens. it bought two cow feed lots and is now the fourth-largest feeder in the u.s. the company can process 11 million tons of corn, 3 million tons of livestock feed, and 275 million pounds of industrial corn. after a $61 million operating loss from q1 to q3 of last year from its ethanol business, it hopes for better revenue, a boost to margins, and quick return on invested capital. will it work? the company recently missed revenue estimates for the fourth quarter, and todd said the ethanol industry could have burned through about $1 billion in cash last year. i asked how much he would need to spend to diversify into that protein. todd: we're going to have to spend somewhere between $350 million and $500 million to retrofit our platform and we are starting to come up with a plan to do that. we have one under construction that will come online in the fourth quarter of this

it is dragging down companies like valero. conocophillips taking adventure that american crude -- advantage of american crude. romaine: how many times can you call for a comeback in european stocks and not be right? a lot of hedge fund managers starting to take a chance on european stocks after we had the big selloff last year. when you look at the relative discount to s&p stocks, you get the reason why some market hunters are starting to wade back into this. it was only $200 million -- a net gain nonetheless. that's according to the statement from bank of america merrill lynch. continue tofunds see outflows losing $700 million in the most recent week. we've had about $41 million in redemptions out of u.s. equity funds this year despite the big rally we've had. the data showing a lot of love for em stocks, we $.2 billion going back there. -- $3.2 billion going back there. a lot of folks chasing that yield, $4 billion going back into ig, $4.5 billion or so going back into high-yield bonds. i want to pick up looking at those blo

alix: one of the biggest buyers is valero. they have their earnings. what earthly being? -- what are they saying? where are they able to get it, is there a shortage? >> they bought some canadian crude in the market. people in the market have said they have been running more canadian crude in the gulf coast refineries. they have had plans in place to adjust their supply to deal with sanctions. alix: thank you to david marino. we want to move on to london, where energy aspects cofounder richard mallison joins me. the impact isn't on overall prices but spreads. that puts pressure on u.s. refineries. if you look at the mars blend versus the louisiana light sweet crude, the heavy crude in the u.s., you are seeing tightness there, not in the overall price. richard: exactly right. the markets are not too concerned about supply anyway. we have a lot of u.s. production growth despite opec cuts. it is really about the type of crude available. shale, other light, sweet crudes are good for some things, particularly good for gasoline but not good for diesel. not optimal if you are a c

alix: heavy crude comes to the valero onners like the coast process heavy crude. in the u.s., we have light crude. they need that oil. if we see oil sanctions, asset freezes or something like that, that hurts u.s. companies like valero. they are making that case. definitely one to watch over the weekend. david: it will cripple venezuela. i didn't realize there were some screws we could turn in terms of venezuela. alix: 90% of the revenue. there is no other private sector to prop them up. there is no other private sector that can prop them up. , the path ofs least resistance is a rally. future still holding up at 21 points. european stocks still up by .7%. ubs planning bonus cuts of as much as 20%. let's see what happens with bank stocks in europe as that headline trickles out. the euro holding onto gains, cable losing a little bit of steam. the curve steepening ever so slightly in the u.s.. no big move happening in the bond market as of yet. by .1%. talk about muted. let's find out about what is going on outside the business world with first word news. the fbi arr

valero energy down 22%. williams down 31%. some of the biggest competitors like chevron still doing better. 16% on the year. conoco up about 19% on the year. now time for the headlines. let's get to the bloomberg first word news. here's what's happening. kristen nielsen will be traveling to the u.s. border with mexico to personally review her departments care of migrant children. this comes after a quite a volatile boy died on christmas eve in the custody of u.s. customs and border protection with his father. the 8-year-old was the second young migrant to die in agency custody this month. homeland security officials telling reporters it had been more than a decade of the child has died and border patrol custody. -- etnant athlon volcano triggering an earthquake that has injured 10 people. villagers forced to flee their homes as the ongoing corruption created a 4.8 magnitude quake. etna has also opened a crack's on a local highway which was closed for inspection. russian military today criticizing an israeli airstrike near the

names like holly frontier, marathon petroleum, valero , all of themips 66 will be driving improved margins, improved earnings results in 2019. given they are trading at a discount to their historical fort averages -- forward averages, they are interesting oil bets. if you are going to go more defensive or get into value, you would think this kind of environment is perfect for exxon or chevron but exxon is having his worst year since the reagan administration. we must say we have been under way the energy sector the last two years. it has not been a bad call on our part. now, likely, we would have to take a look at that and see what we would want to do with it going into 2019. like i said, we have still not arrived at placing our targets for 2019, for the s&p and the sectors. we are pausing because of this in order to decline we have seen this month, rather extraordinary. break, iioned on the was there for the 1987 crash when the dow plunged 27% in a day, and i was in a responsible position at the time, working at five world trade center at the time. that, these things happen, but you have

valero energy up on the day. these stocks have been trailing broader gains because of higher oil prices may weaken demand. the hundred dollar oil says investors think that may be good for these stocks. down movers, and apple supplier missed on margins in the first quarter. until 2021.not rise other apple suppliers down on the day. he sees a cyclical downturn in that sector. scarlet: thank you for that run down. the you win this year, defending his exit from the iran nuclear deal, calling on the rest of the world to isolate iran. >> they do not respect their neighbors or borders, or the sovereign rights of nations. instead iran's leaders plunder the nation's resources to enrich themselves and to spread mayhem across the middle east and far beyond. the reaction from the iran delegation. ago.was two hours we have had a lot of news. the announcement this is going to be a new , we have had these about kavanaugh's accuser. these iran comments take a back step. once when you have the reserve tone of the speech and all t

allthon petroleum, valero, reporting strong second quarters. we arekative strength, looking at the chip sector. look at the philadelphia semiconductor index, aided by blowout quarters by anz and xilinx. qualcomm decided to terminate , they$44 billion bid follow from the trade war as they simply could not get the approval from china. shery: although there might be a sigh of relief when it comes to trade tensions with europe, shares of european carmakers surged after president trump backed off on his tariffs for imported cars. and john klug younger agreed -- jean-claude yunker agreed to put off a trade were. both sides will work towards having zero trade barriers. we have senator cardin. seen president trump get some concessions from the europeans. you have been more skeptical of his negotiating tactic. would you say he has been more effective to some extent? senator cardin: it was the president that created the problem with our traditional starting first with using section 232, a national security waiver to impose tariffs against our friends com

they are up four point 7% for the month and a lot of that is the actual gasoline retailers like valero capturing this gap and taking more profit for themselves and that will weigh on consumers wallets as they start the summer driving season. this is an important chart to watch. vonnie: thank you for that illustration of what is happening at the pumps. mark, what have you got? ago the big fear was if there was an italian election it will be a de facto referendum on eurozone membership. that did not play out. we have a populist led government but it let me to believe that that question is still present and some analysts posit the question, at what point will the true colors of the populists come to the fore, their true anti-euro colors. that is something to look ahead to. in the meantime, it is worth posing the question what is the probability of a breakup of the eurozone in the next 12 months? .e have a chart for that this is what i love about life. you have a chart for everything. this is the euro breakup index which essentially surveys individual and institutional clients and right no

if the dollar loses steam and emerging-market currencies rebound in recent lows, valero -- the lira could fall soon if not, it will remain among the weakest market currencies. about elliott you management confirming its significant stake in this deal. this was a story we broke a number of days ago when we spoke to people familiar with the matter. that's a look at the european markets. vonnie: another fascinating activism story in europe. in the u.s., the 10 year yield is back to 2.90 6% as we see risk off primarily after the white house letter to the north korean leader. we already saw the tenure breach the 3% mark in the session overnight on fears about trade talks and tariffs again. was only a few hours ago and there was a concern there could be a 25% tariff in addition to other tariffs on cars coming out of china. ae dollar index is down little bit again on the north korean news. we still have the massive spread, it dollars or so between nymex crude and brent crude reflecting the continued uncertainty before the opec decision on what they will do. you mentioned some of these assets inc

valero is also a top performer. do with morgan stanley. they have upgraded valero. they are having its best day since december of 2016. overall, calling refiners going into a golden age, basically saying there is going to be a continuation of demand. >> talk about the refiners, especially at this level. but he he will be wrong, is saying there will be margins of 30%. andlso took his own spread let's look at a chart. our viewers can take a look at this chart. tos is the spread going back 2000. last year, we had the hurricane and we are starting to move that down. it is now above that, but earlier had been low. >> in any case, it appears this or thegest really early violation. 85%.s more than >> time will tell. >> the industry has something for everyone. .ere is an exchange-rate etf has ant bridge ticker that would make president trump proud. caps ands in large highly supportive. energy is industrial and financial. companies.le is text since launching in september, they have tracked the s&p 500, but the cost is not cheap at 55 basis points. fascinating is it doesn't s

is valero shaking in its boots? david: that is the question. do you see the o or philip's -- need tor philip say we pick up a competitor? the question could be antitrust. or they don't command too much of a market share and raise questions too much, that is always a question for these refiners. can they pick up one of their competitors without running into too much hassle, too much difficulty. vonnie: david marino, thank you. the u.s. oil reporting team leader in new york. caroline? caroline: time for the business flash may look at the business stories in the news now. a new deal would create the largest luxury brand for timeshare vacation. ,arriott will buy ilg representing a premium to ilg is closing price on friday. shares of the fitbit have been rising. the company has agreed to use google's cloud services to integrate its wearable devices into the health care system to allow data to be economy but combined with electronic medical records. allow data to be combined with electronic medical records. vonnie: telecom takeover. we sit down with

has hit a valero refinery in a texas city. we have live pictures in texas. that theyas tweeted are aware about the explosion and the local fire department is en route to assist with putting out the fire. we do not have more information at this point, but bolero is one of the u.s.'s largest refiners and we'll see if there's any implications for supplies. we will keep you posted on developments from that situation. that team day, and let's look at one of the top stories at the moment. trade tensions hanging over the imf meetings in washington. however, the lender's president says the global economy is showing solid momentum. may notwhile take spots severely damage growth, they are affecting confidence. we have more from washington. what has them would been like at the spring meetings this year? >> it is very upbeat here. all of the officials we have spoken to are pointing to a robust economy, shaking off the portrayed tensions. you heard a similar message today, and concern is that there will start to be a trip effect when it co

valero up about 1%. seems they are back in business and trading higher. a look at metals, gold is higher, up 1.5%. it makes sense, considering the dollar is lower and the haven bid. industrial metals all down. one of it -- our commodities strategist says this is long overdue private taking. -- profit taking. julie: industrial metals now a pullback. speaking of hurricanes and the energy complex, the latest on hurricane irma as a goes towards florida with the national hurricane center issuing an a.m., a category four hurricane with winds up to 150 miles per hour and hurricane conditions over parts of cuba and the central bahamas. you can see the latest on the bloomberg. has left at least 11 people dead and thousands homeless across the caribbean. threatening to become the most expensive storm in u.s. history. miami-dade county biggest evacuation effort and the national hurricane center extending the hurricane watches north, all the way to the daytona beach area and the storm surge warnings as well. let's bring in our miami-based breaking news reporter, join

she will valero's refineries and taxes are back to free storm refining rates and exxon mobil has resumed shipping fuel. point,store -- at one the storm shut down 90% of u.s. refining capacity. theresa may will try to force theresa may will try to force the pace of brexit negotiations. later this month, she will deliver a speech to make the case for continuous talks. the u.k. wants to move on to the issue of trade, while the eu wants to settle other key issues first, such as how much the u.k. will pay an exit fee. there are growing doubts that a deal on rewriting the north american free trade agreement can be reached this year. according to officials familiar with the negotiations, the latest round of talks in mexico city is coming to an end without any major breakthroughs. president has threatened to pull the u.s. out of the agreement. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. scarlet: coming up, count down to december 12. apple investors won't have to wait much longer to see what the t

the refiners in the houston area in valero who are waiting for crude oil supplies are going to start getting them. vonnie: some of the more independent producers, are they going to feel it a lot more, put out of business by this? >> destinations are being cut off because there are not enough supplies to go around, and i would imagine that the brand and suppliers -- branded supplies are on allocation come meaning they cannot get the full contractual volume, because it is not there. lisa: i was the president of li -- that was the president of lipow associates on bloomberg today. he is tried to get back houston and cannot get a flight could let's get "first word" news with mark crumpton. mark: the house of representatives will most likely vote on the first phase of relief money for hurricane harvey in september. that is according to a republican aide, he that the initial down payment will replenish federal emergency management agency funds used in the immediate aftermath of the storm. congress returns on september 5. the third round of brexit negotiations ended in a stalemate today, wit

. -- valero and hollyfrontier. mark: investors choosing to invest on the macro, whether u.s. data, euro zone inflation data, and chinese take -- chinese pmi data. best friend for two weeks. -- trend for two weeks. a big corporate story, shares earlier down 15%, the biggest drop on record. for the french biggest retailer. it warned a second half of the year will be as tough as the first was gives the new chief executive a bigger challenge to turn around the company. the outlook prompted for analysts to reduce recommendations. -- four analysts to reduce recommendations. a drop in earnings was a bit of a surprise because they previously said second-quarter sales beat estimates. volumes in food failing to offset the effects of a price war and the operating margin in france, which accounts for nearly half of sales. it fell 70 basis points, down 14%. inflation in the eurozone taking up speed, more than economists predicted, underlying cost pressures, failing to accelerate. ,he headline is consumer prices up 1.5% in august from 1.3% in july, ahead of estimates. the biggest -- best r

valero and citgo said to be on the verge of restarting refineries in corpus christi. the secondmakes landfall as expected, the nation's largest oil refinery could be hit. the loss of refineries in that region would leave only facilities in louisiana supplying fuel to new york and other demand centers. president trump is promising that taxes will get emergency disaster aid quickly. he said there will be "very rapid reaction from congress." still there are signs that there may be a political fight over the money. a top texas conservative, financial services committee chairman, says he wants to cut spending to pay for the response to harvey. global news powered by more than 27 or journalists and analysts in more than 120 countries, i am courtney donohoe. this is bloomberg. big: let's get to another story moving markets -- north korea firing a missile over japan. president donald trump says all options are on the table. stephen engle files this report from tokyo. stephen: shinzo abe twice converging meetings of his security council following what he called the unprecedent

here's where valero sits. the blue dot to the left of the historical average means right now, is on the lower side of the historical premium. if you want to get a refinery in on this play, that's a place to do it. david: oliver renick joining the onset in new york. to reckoncontinue what happened in charlottesville, virginia and another protest turned violent -- secretary of state rex tillerson was on the show with chris wallace. doubtsn't believe anyone the american people's values or the commitment of the american government, or the government agencies to advancing those values and defending those values. >> and the president's values? >> the president speaks for himself. >> are you separating yourself from that? comments to our values and this feature again to the state department this week. david: another example of the divide growing starker between several members of his individual circle. start with that exchange, i said it was extreme area. what does that tell you about the relationship between secreta

and then valero is pretty well-positioned. alix: thanks for giving that perspective. .incent piazza and roger read thank you for joining us. the question is, what is the impact on the broader economy. typically the rhetoric is, yes, it is a short-term issue. however, the fact that there are so many ports in houston could make a difference. 250 ports are now shut. jeff one child joins us. jeff, is this -- jeff weintraub joins us. willis making eggs -- will this make a significant impact on the economy? seen lingeringot economic impact. sure, a monthly economic data point might be impacted. everybody will be watching that. end of theat the hurricane season yet. there could be more to come. it is still expected to be an above average atlantic hurricane season, and i could mean prolonged shutdowns of ports not just along the gulf but along the east coast, too. at this point,ly even given the devastating impact to those -- to those parts of texas. unlike the lingering impact in terms of infrastructure economically. jonathan: let's

valero energy among others trading sharply higher. is going higher and that is the difference between the input price for oil, which is going down, and the out what, gasoline. as that widens, that means more profits. helping to explain why these refiners are trading higher on the session. finally, oil is turning into a rough month. this is showing the monthly change for oil in blue to the upside, gains in orange to the downside. we see oil is down 6% on the month, on pace for its worst month since march. right now six out of eight months are to the downside, on pace to match what we saw in 2015. l having a rough road despite the fact that the dollar has been in decline as well. julia: thank you. coming up, president trump may have been having a pretty rocky relationship with ceos recently but the gop is courting corporate support for a tax overhaul. details new york. this is bloomberg. ♪ julia: this is "bloomberg markets: the trump economy." i am julia chatterley. let's get a check on the first word news with mark crumpton. resident

the polis index was in -- -- the euro is benefiting and because of the euro, other currencies like valero are benefiting. we will be talking about this in a little bit. mark? mark: right. a big week for central bankers as they head to jackson hole tomorrow for the annual economic symposium, hosted by the kansas city fed. mario draghi will be there before he flies across the atlantic. he spoke in germany, repeating the old playbook is out the window when it comes to monetary policy. >> policy actions undertaken in the last 10 years, monetary policy and regulations, supervision have made the world more resilient. but we should continue preparing for new challenges. us to break down the cap forward for mario draghi and the ecb, and a look ahead to jackson hole is a pemco portfolio manager. -- pimco portfolio manager. thank you for joining us. let's talk about mario draghi. he did not talk about the euro or the impending ecb meeting which takes place at the beginning of next month. it leads us nicely to his speech on friday in jackson hole, wyoming. nuggets mightwhat he giveaway on friday abo

what have these companies been doing, valero, and major u.s. refiners, to hedge or have they? >> they've been taking less and less venezuelan crude. to a certain extent, they have no choice. venezuelan production has been dropping. there are other adult -- other alternatives, from canada or other places, that could work for these refineries so they have been moving. venezuela is still a big supplier. they've also been lobbying in washington to say, sanctions may not be the best answer. venezuela would still be able to sell crude in other parts of the world and you would have this effect in the u.s. -- they are pressuring you trump administration to be cautious about its next steps. oliver: up next why president trump is looking quite unprepared to deal with special counsel robert mueller. this is bloomberg businessweek. ♪ ♪ oliver: welcome back to bloomberg businessweek. i'm oliver renick. you can catch us on the radio at sirius xm radio. and london, and asia. in the politics section, as president trump fails to put together a legal team, we talk more. >> right now their l

what have these companies been doing, valero and major u.s. refiners, to hedge? >> as you have said, they have been taking less and less venezuelan crude. to a certain extent, they have no choice. venezuelan production is dropping. there are other alternatives, canada or mexico. they produce heavier crude that could work for these refineries. they have been moving. venezuela, still a big supplier for them. they have also been lobbying in washington to say, sanctions may not be the best answer. venezuela would still be able to sell is crude and other parts of the world. and you would have this lock on us here in the u.s.. they are cautioning the trump administration to be cautious. oliver: up next, why president trump is looking unprepared to deal with the special counsel. this is "bloomberg businessweek." ♪ ♪ oliver: welcome back to "bloomberg businessweek.". i am oliver renick. you can also give us on sirius fm and in boston. -- catch us on sirius fm and in boston. and in london and in asia on the bloomberg radio plus app. in the politics section, as preside

julia: when we are talking about refiners that would be impacted, we are talking about chevron, valero, because these are the guys who have calibrated their systems to be able to cope with the high density oil that comes from venezuela. i guess i would expect lobbyists for these guys or the company themselves to go to the government to this point in say this is you do this what would happen with the oil situation. i have to question degree upon which we would you some kind of -- see some kind of oil pricing. is there anything to suggest this is the kind of rising wti prices we would see, and a line for that, how quickly would we adapt, even if prices went up $10? we would shift it around, get oil from other sources. how quickly would oil prices come down? >> i think barclays came out with a report last week that couldted that oil prices jump five dollars to seven dollars. i do not think the refiners number is way too out of whack. they are making their case aggressively to the administration. the white house, i think it knowledge is -- acknowledges it. there would be impacts in the u.s

biofuels sought by valero energy and backed by billionaire refinery owner carl icahn. icahn want to shift the responsibility for fulfilling annual biofuel quotas away from refiners to fuel lenders or other entities. a global news 24 hours a day, than 20 700ore journalists and analysts in over 100 countries -- 2700 journalists and analysts in over 120 countries. this is bloomberg. julia: what will they do with all the new money coming in? we will discuss. from new york, this is bloomberg. ♪ julia: this is bloomberg markets, i'm julia chatterley. scarlet: let's head to julie hyman for today's vector spider report. julie: focusing on energy today, xle the most heavily traded etf down one point 75%. most of the selling is concentrated in the exploration and production companies. as opposed to acquit meant and littles, which has change. it was higher until just a few minutes ago. selling concentrated within those e&p companies. just like yesterday when we saw piner natural resources lead the industry down, many of the shale companies are the ones underperforming today. ki

biofuels program sought by valero energy and backed by billionaire refinery owner carl icahn. that is according to people familiar with the decision. have lobbiedahn the to shift responsibility for fulfilling annual biofuel quotas away from her fighters to fuel blenders and other entities. an update on a story we told you about last hour. the associated press reports barcelonatives from soccer star name are have paid over $263 million to release him from his contract. this clears the way for his siding with paris st. germain. the payment shatters the previous world record transfer for paul pogba. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. david: may be in the wrong run of work. -- line of work. gary cohn is a longtime goldman president, now president trump's economic advisor and now within the arms reach of the holy grail, the chairman of the federal reserve. ,ere to talk about his chances we have two guess. we have heard from gary cohn, we have seen him as this imposing figure in t

we also sai have some of the top for farmers -- performers like valero saying that the market looks positive. a lot of strength here. on the month, it's a different story. we had that declines. oil is on pace first was to climb, down 11% for the month of june. it is the worst june since june of 1988. we are at the beginning of the driving season. that should help oil. the last time we had this big decline, it was at the end of an eight year war between iran and iraq. it magnifies the fact that investors are so focused on the global supply glut. relative to the near term, we may be catching a breather here. hop into the bloomberg and take a look at g #btv 299. this is a one-year chart of oil that comes from a bloomberg commodity strategist. it shows this moving trading range. right now, we do appear to be bouncing off the top of it. i spoke with mark newton and he said that the near-term looks bullish. he thinks we could see a little bit of a pullback, something that both aspects would be supported by this moving range of oil. mark: despite the recent rebound, there are still challenged with

folks over at morgan stanley are upgrading and downgrading valero nearlyl weight, down by 2%. there is a deal in the energy industry. the world's second-largest offshore rig contractor or market value buying that would oceanic -- buying atwood oceanic. we are talking about the value of 10.72 per share. one of the reasons this is an important deal is it is the largest we have seen since the oil market crash nearly three years ago, specifically offshore companies have been hit hard by the downturn in oil prices, so notable we have that big deal today. mark: we are down for a fourth consecutive day, the worst losing run since only march. digesting a dovish ecb president's, mario draghi, molding the prospects of the elections in italy, but we are down about .5 today. london and u.k. stocks, this is the ftse, the white line, blue line, germany, dax, purple line, the aramex at -- the xmi. despite the manchester bomb attack and despite the upcoming election, the ftse has outperformed its main peers. interesting comments today from jpmorgan, raising u.k. stocks from neutral to underwe

valero coming up with earnings that beat estimates but it had weaker than estimated margins. shares of harley davidson are also down. earnings missing estimates and motorcycle shipments are below estimates as well. so macro and micro, a lot to cover. mark: we have been in the narrow trading range, up i one third of 1%. theld trump's firing of acting attorney general went into more instability. that the gauget is up in january, the best run since may 2016. we keep an eye on deutsche bank, shares were higher earlier. it has been fined 163 million pounds for compliance failures related to allegations it helped wealthy russians move billions of dollars out of the country. this is after a similar probe in new york with a criminal investigation by the u.s. justice department that is still ongoing. deutschea week after bank agreed to a civil penalty to resolve the u.s. its investigation -- the u.s. investigation. growth, 4.5% in the fourth quarter. unemployment falling to 9.6% in december. the lowest level since mid-2009. attention turns to accelerating inflation. mario draghi repea

valero energy is cut at deutsche bank and then we have aes which was lowered to outperform, a cut over the headwind for the sector and possible project delays here. so some declines here for the energy complex. david: we turn from stocks to bonds. unconstrained funds saw the balloon. the nontraditional bond funds have stumbled at the last two years as investors voted with their money in favor of the low cost alternatives. but is 2017 the year unconstrained funds could finally live up to their hype? joining us now is brian .happatta what do they see in these funds that last year, investors didn't see? brian: the idea that duration is no longer the way to go. the treasury bonds outperformed but then rates sold off and as a result, the best results work for some of the funds that had with credittions like the unconstrained funds which can go anywhere. in emerging markets and they are not constrained by geography or maturity or credit quality. -- ais what is interesting lot of these managers are banking on the look at the final year-end statements and see that unconstrained funds returned

forare seeing a big boost valero, phillips 66 because there will be more demand for product. have you ship it, transported on rail or by truck? there will be a product shortage in the u.s. southeast. earnings a big focus in the equity market. in terms of where we are in the earnings season, i want to take a look at where companies are beating on sales and on earnings . the average sales surprises minimal, up by not even 1/10 of 1%, but the average earnings surprise is much higher coming in at almost 5%. we got pfizer reporting earlier. the s&p pharma companies, about 13 out of 25 have reported and it shows a lot of growth but they are missing other estimates. earnings are about 12% year on year and sales growth up about 4%. david: there a bit of breaking news from general motors. 1.7%.auto sales fell the estimates were that they would be down 6.9% and this is part of a larger trend. the thought is that u.s. auto sales are peaking and coming down some, but they are coming down a little less than we thought. they beat their estimates on a decline in sales. now we want to turn t

valero is currently standing it hasn't cfo and overseeing the financial nitty-gritty. evan is the face of the company, who is going to be an important person to get in front of investors. looking at imran khan's experience, he was responsible at credit suisse for leading the alibaba ipo, which has been a biggest technology public listing that folks have cared about in the past decade. when it comes down to the actual ipo and ipo readiness, you have to expect he will be in there and have opinions and guidance for the company as they marched through this process, which is very involved, and some companies don't like to go there because they can see it as a distraction. to have that kind of person on the bench with a former mattel executive in that cfos see, it seems like they have some guidance to help evan spiegel as he runs this company as ceo. emily: i remember running into khan on the floor of the new york stock exchange on the day of the alibaba ipo. a great scoop. thank you for bringing us that update. later in the show we will chat , with snapchat's first institut