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