jonathan: valero reported earlier on, of 34%. some big energy winners. i thing a lot of people are asking the same question who have been exposed to that story over the last 12 months. fantastic returns. at what point do they step away and start to realize some of those gains? patrick: the last three days have been pretty hard with what has happened to china. you have seen real rotation out of the materials and energy companies only cyclical risks. -- the cyclical risks coming from a china slowdown and slowing demand. i would view this is a great entry point. the cash flow these companies are producing, if oil prices stay anywhere near where they are now, the companies are ridiculously cheap read futures curves and steep backwardation, were oil falls to six dollars a barrel, the companies are still -- to $60 a barrel, the oil companies are still cheap. i think you will have much stickier oil prices than what the futures curve implies. jonathan: patrick armstrong, plurimi wealth there. just creeping in over the last couple days. lisa: i find this fascinat

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

we are seeing companies like valero on the rise. one of the implications of the drawdown in oil is that there is relatively high demand and refineries are pumping like provide summer feel. changes, not unusual on a fed day. i thought for fun, we could look of the past couple of days when we had a fed meeting. take a look at my bloomberg wasinal there and this april 29, the fed. 18 point swing before we closed lower by about 4/10 of 1%. revised numbers for first-quarter gdp which showed not a very half picture for the economy in the first quarter. that also weighed on stocks. olivia: so many people holding their firepower, i would be interested in seeing what volume is. it is the q and a. julie: 2:30 p.m. olivia: now i want to turn to asia. the nikkei -- one big story as of the region, japan reporting this writing --de data across asia disappointing trade data across asia. , singapore, both reporting figures, both missing estimates. singapore reported a drop in shipment. japan is out of the bright spot. if you get china, india, taiwa

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

we should mention bolero -- bolero, --valero. profits from sales and gas have tripled because of the drop in oil. >> will be back in two minutes. -- we will be back in two minutes. ♪ >> if you're always wanted to invest in a new york city property, now's your chance. for $5,000, anyone can own a piece -- almost anyone can own a piece of three world trade center. it is being offered through the company fund rise which sells world-class properties to accredited investors. his new way to own property has received backlash, especially among big banks. joining us to discuss this is dan miller, cofounder and president of fund rise. this peak my interest because this is an iconic new york city skyscraper that is being built. there is been so much controversy around the world trade center. why help fund it this way? >> we wanted to give people the chance to invest in the highest quality assets in the world. deals like this are traditionally limited to people with $100 million of network -- net worth. >> what does it entail? tell me how

in twenty thirteen we got an order to deliver seven high speed valero type trains to do three hundred kilometers an hour between kanya discussion here. in april of this year we got a follow up order for ten more of these trains and they are under construction now what do you think is it it's a ball. it's not only big german corporations that have business ties to turkey so do medium sized companies entrepreneur blend was in there from braman installs business software for instance for parking garage operators he employs one hundred twenty i.t. specialists in braman and istanbul. apart from that we do a lot here in software development and software selection process is. we have various projects with which we ultimately help the company make its processes more efficient and save money. isn't there moved with his family to brain when he was a child he studied economics and worked for consulting companies before setting up his own business. he comes from a humble background his father was a welder in a shipyard his mother was a housewife. and i consider myself a northern german that's how

in his classmates participated in the contest in one best design, which is now being built at this valero facilities. so that either door they go through this tube here is 12 made as long as they hype. we use it to try a different hyperlink models in low pressure and as a perfume that we can obtain different pressure levels with an electric at home with. and then we also have solar panels on top and out here with these panels, we generate the energy that's needed to keep the pressure low to lay rolison. other companies are trying to create a mode of transportation ideal for distances between 41500 kilometers. one, be sanitized team are developing the model in spain, but other countries could profit much more to see of, of without pre advanced infrastructure. the thing is that you need to have a molar gate, the technical specifications. i strongly believe that europe is good march. now you see others where the infrastructure is done. it plays yet. and you see dubai. you see india where infrastructure, good be good, but is anti great. i believe the regions and yoga piece is going to take pl

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

in twenty thirteen we got an order to deliver seven high speed valero type trains to do three hundred kilometers an hour between. this keesha here. in april of this year we got a follow up order for ten more of these trains that by the end they're under construction now what do you think it's it it's about. it's not only big german corporations that have business ties to turkey so do medium sized companies entrepreneur blend was in there from braman installs business software for instance for parking garage operators he employs one hundred twenty i.t. specialists in braman and istanbul. apart from that we do a lot here in software development and software selection process is. we have various projects with which we ultimately help the company make its processes more efficient and save money. among his customers are high tech companies across germany they include braman based space company oh-h. b. which builds satellites it's just opened up an office in on korea. to lead was in there sees the economic crisis in turkey as a good opportunity for investment. you can invest and cyclically

buy marathon petroleum and valero. why? explain. >> right now, oil prices are sold in two areas, wti, u.s., and brent. the difference between those two is getting wider because the pressure in the middle east is having oil prices go up in the middle east. here we have an abundance of oil, our prices on wti, the disparity will increase. the reason you want to own refiners, we are allowed to export refined product. the zone, which we can send to europe and south america. that falls to the bottom line of the refiner. as pressure goes on brent to go higher. >> wti stays level. >> the difference will get better and better. wti might go up but you are looking at the delta. these companies are based on the gulf of mexico, right next to ports -- >> they ship that. >> good companies with solid down sheets, cash flow, and growing dividends. >> julie is looking at the risks for refiners. >> many of them have performed very well. valero up double other energy stocks. marathon petroleum has not been quite as well. youou look at the spre

turkish economy and valero recover sooner or later and then very fast meant to pay off. of course and there is another reason why the waterside villa's a so popular especially with buyers from the middle east. many arabs are familiar with the journalists from turkish t.v. dramas but they've been on television over time in the arab countries because people are crazy about them. sometimes my clients call me and say i want to buy from my favorite series. the viewing is over for today the two realtors intend to continue bargaining. so it's likely that this mansion and its spectacular view of the bosphorus will soon change hands. bigger isn't always better especially when it comes to commuting take little. homespun arrive hailing service the two and a half year old company has ten thousand drivers operating in nairobi and over a million uses on its platform starting to be a hit in other african countries too. the kenyan right having apps little might be competing with global players like hoover and tax if i can get but it's only valued at around seventy two million dollars on

turkish economy and valero recover sooner or later and then very fast meant payoff. of course and there is another reason why the waterside villa's a so popular especially with bias from the middle east. many arabs are familiar with the galus from turkish t.v. dramas but they went on television over time in the arab countries because people are crazy about them. sometimes my clients call me and say i want to buy from my favorite series is. the viewing is over for today the two realtors intend to continue bargaining. so it's likely that this mansion and its spectacular view of the bosphorus will soon change hands. now if you've been wondering why your business partners or clients in germany are not available today here's a possible explanation. it's the call of the season germans especially of the island that's saying that have to be patient with the fact that serious. possibly. it's time. to take one step further. and face the costs of. the time to such thing i know and fund for the troops. it's hard to overcome downturns once cut the world. it's time for. a new wus

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

well, is already waiting for them inside the aircraft, jorge, valero, and his team are conducting final checks 10 mechanics step spend several days getting the engines, landing gear, and electronics ready for take off. after 18 months on the ground. they too are optimistic about the future. companies that will have passengers, people are on the wall, they start to fly again on its lot of job bud, steve friends 2 years ago because philly there early. the lead smell a smiling day in the face of the people. finally, it's time for the pilots to go on board. the preparations for their flight are much more extensive then for a normal takeoff. ted well is not an active airport. there are no air traffic controllers, no electronic control system. the pilots will need to use maps to navigate and are largely left to their own devices in handling the airliner your home kinda folks which or it has no control tower that we can talk to. we have a so called uni. com frequency which allows all aircraft in the area to communicate with each other and again. so we'll let them know what we're doing when we

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

julie: let's start with energy and talk about valero. credit squeeze downgrading valero. say the stock has factored in the earnings weakness for the quarter. one factor is the difference between crude oil and the refine products. there's a structural concern in diesel cracks that might continue for some time. the main reason to sell refiner holdings is not necessarily the seasonal trade, but the likelihood of recession and valero shares are pulling back. bm oh capital is upgrading that on commodity prices and valuation. they will benefit from improving oil and gas rises and the shares are up 5%. other restaurant stocks to look we see positive catalysts for the company's sustained sales momentum at burger king and those shares are higher. one analyst at credit suisse looking at an attractive valuation seeing potential sale-leaseback and finally, brinker, that view increased with analysts there saying the third quarter was help by higher-priced sizzling steak and the reward loyalty program. sizzling steaks, i don't know where that rates. i am a filet mignon girl. judge me.

a top conductor, valero, a gag, if has been fired from his post as chief conductor of the munich philharmonic. the fighting to criticize his longtime alive vladimir putin, across europe and the united states and russian artists with ties to the kremlin, had been put on notice. speak out against to president putin or be prepared to be cancelled o one of the world's most visionary conductors, and a long time ally of russian president vladimir putin. for years concert houses in the west looked past conductor, valerie garr gibbs close ties to rushes. authoritarian leader, but after putin ordered the invasion of ukraine, many are finding that impossible, and are demanding the conductor distance himself from putin. new york's carnegie hall cancelled garr gives appearance. so has lascola opera house in milan. in germany, munich, mayor gave dare give an ultimatum, denounced putins war against ukraine and against munich sister city, kiev, or lose his job as chief conductor of the munich philharmonic. dare give didn't respond. on tuesday, the mayor fired him one of the world's top opera, singers on a t

i would like to salute alejandro valero hawaii. people are searching the far right and the fact that we have to stop them middle, silverman, maddox, easy in this decisive moment. all of them you villainous father, future of our new leondard. what good grandmother, nothing can be as at wise. well, this friends and also that my, i would like to give my hand all of those one to work for francis leon. ready to invent something new. and i'm glad you in order to federal read, convict janice and a different sensibilities of it. who in order to build a do together a common action unless you're in the service of our nation, followed handling. yes, it's hard to a little comfort, theos, to all our fellow citizen is i left all school that will ever chose abstention or an atheist trembling for it because they are the angry because of persisting inequalities and are rooted insecurities of their everyday life. on the difficulty to live and dignity, even if you are a current order or more what? because if they dont feel represent at our listen to

we have m&a action on the day aired out valero --. at valera is -- avilera is up. signify health is up. there is a report that cvs health could buy this provider of technology and services. ann romney it out, emerson electric of 1.1%. will pool paying three point bill -- 3 billion. guy: that will have a meaningful input. let's go back to the question of the day -- how hot is too hot? are we in a recession or are we not in a session? bruce richard, chairman and ceo of marathon asset management is joining us now. he is plugged into what is happening. great to catch up. is this too hot or are we in a recession or not? how are you thinking about the macro? if we get a recession, what kind will it be? bruce: nice to see you. recession is the big question. you look at the first quarter and second quarter and look at negative growth which is about inventory buildup, 8000 jobs created. but the focus we have right now in the markets is the yield curve. we have not seen it inverted, this inverted since 1980. you go back to the 2008 recession, 2001 recession where they yield

are still ind you them, you have valero, a patchy. state oil. bp. let me ask you about valero. refining going to remain the best place to be in the interim? been a goodg has place to be. frankly, i wish we had more in the second or are -- in the sector. we hold many of the large integraters. erik: good to see you. tim guinness, chief investment officer of guinness atkinson asset management. the age-old debate. our bankers being paid too much? deutsche bank's co-ceo says they are. turning investors are to roble advising. betterment ceo of will be with us. and we have the latest on turkey's downing of a russian and why vladimir putin says there will be "serious consequences." ♪ erik: welcome back. this is "bloomberg markets." to europe where european stocks are declining amid concerns over global growth. >> it is a classic white. across europe. only greece trading higher. 18 out of 19 industry groups falling on the stoxx 600. it is only oil being dragged up then increase look at decline is, particularly on the ftse 100. the travel, the laser -- the leisure companies suffering.

the best performing was valero which is still down. joe: i'm pretty impressed, the overall market did not sell all. you would think on a date before dumping everything in sight, we wouldodities, expect to see a major liquidation, but less than 1% down on the major indices, that is pretty impressive orman. alix: energy shaved about 20% off the index. but whatlot of damage, i thought was fascinating, look at the currency market. the energy spillover was not just in stocks, it was also in other asset classes. the canadian dollar dropping to the lowest level in 11 years. the colombian peso plunging to a record also. commodity currency is just having a rough time. the norwegian currency fell below parity against the swedish currency for the first time. alix: oil is the story of the day. let's dive into the bloomberg terminal to look at why. versus the oil price over the last figures. something i struggle with, we should not be following this much. there is no trigger. the white line is the nymex short oil contract, right around her record h

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 listed in the u.s. anywhere at $35 billion. there was a noble -- another spinoff of a refiner. slice rushed to get a of the saudi oil industry, but that has not been a happy investment. francine: thank you so much. as priceshe bets go tend to follow? have we called a bottom on oil? elliott: it looks like hedge funds have been pretty spot on when it comes to their bullish bets on oil prices. that has contributed to the slide we have seen seemingly inexorably toward $30 a barrel. it ended january 5, and bullish bets were down by a quarter. the top line is in yellow, shows you wti, and the bottom line shoes you bullish bets on oil. you can see pretty much where the bets go, there is a little bit of a lag and then oil prices follow. you can see that precipitous decline in bullish bets on oil prices, and oil prices have followed suit. hedge funds seem to have got this one pretty much spot on. francine: thank you so much, the middle east editor elliot gotkine. over the weekend it said it fully supports any action against shiite major

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

in twenty thirteen we got an order to deliver seven high speed valero type trains you to do three hundred kilometers an hour between. in this case here. in april of this year we got a follow up order for ten more of these drains and they're under construction now what do you say we can fix it it's a ball. it's not only big german corporations that have business ties to turkey so do medium sized companies entrepreneur blend was in there from braman installs business software for instance for parking garage operators he employs one hundred twenty i.t. specialists in braman and istanbul and. thousands of you apart from that we do a lot here and software development and software selection process is. we have various projects with which we ultimately help the company make its own process is more efficient and save money. among his customers are high tech companies across germany they include braman based space company oh-h. b. which builds satellites it's just opened up an office and i'm korea. to lead was in there says the economic crisis in turkey as a good opportunity for investment. commun

chevron and valero. -- you had chevron and valero good are you ready to buy back into energy names or is there more downside? >> we look for early adapters of trends. it is not a bad time to start layering into energy. with $60 a barrel on wti, it makes sense to consider the fact that if you look at a parking lot, it is not a parking lot of teslas, but rather, it is mostly gasoline-burning automobiles. we work on gasoline, natural gas -- >> yeah, but you were just saying you see long-term declining demand. right declining demand now is being felt as the global economy comes back, as europe comes back online, as china turns its domestic demand into a real driver, especially when you look at the emerging markets, they are inefficient burghers of energy. -- burghers of energy. when those economies come back, reflecting the growth in europe and increasing expansion in the u.s., energy prices should come back. i don't know if they will come back to triple digit overnight, but we expect that layering into energy is not a bad call. >> that will fuel the s&p 22311 by the end of 2015. we have

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

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

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

refiners like valero and p 66 effectively price subsidy on crude oil until november of last year, when the oil embargo was lifted. that's why you have seen this convergence between prices. were to invest, i would most likely look at one of the independent producers, one of the shale producers. one of the more bearish signs that came out of here in the last few days was the leading independent and u.s. pioneer .ational -- national resources it was indicated that if prices moved above $20 a barrel for 2017, there may be more fields on stream and they may start to hedge more of their forward price risk. the only thing i feel confident in saying is that there is going to be volatility. rishaad: thanks, john. john driscoll. coming up, saudi aramco is said to be working with some major banks. a bond sale. all the details to come. ♪ manus: welcome back. qatar raised $9 billion in a bond issue from the middle east. matthew martin is here to talk us through the offer. probably one of the biggest sovereign issues of late in the region. absolutely. it is a huge issue. $9 billion will go a long

valero yesterday was seeing they are not seeing any demand destruction. we do have a labor shortage issue, quality shortage issue and you have an availability issue for shale. anna: one analyst was asked whether there was a change in the russia-you and that would have a big impact on oil prices but we are not at these levels. would you say that? >> yes, val said that yesterdayero on their call that russia crude oil has not come out of the market and the heavy fuel oil is coming back into the market. what's so staggering about the $110 brent price is we haven't lost that much russian oil at all. with libya coming back strongly in that environment and i ran smuggling, that's why we have a supply crisis. it's incredible to be at 100 $10 with all these barrels in the market. alix: particularly as we talk about recession. i wanted to ask you about the 370 billion dollars in clean energy spending. do you think that oil majors like it? it seems like they got some stuff in this that might make their life easier? >> apparently, it will get fought tooth and mail by

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

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

shares, asks, mining well as valero, marathon. get down to our top stories at this hour. the u.s. economy grew faster in the second quarter than previously estimated. the gross domestic roddick rose -- product rose at 3.7%. they were saying last month it was 2.3%. ever biggest gains in consumer and business spending and a record increase in inventories. that may be a sign that strong growth will be a challenge to sustain. they have to sell all those inventories out. there is a sign of momentum in the housing market. the report says it rose in the last seven months. one half of 1%. mortgage rates still expensive by historical standards, around 4%. consistent drop growth also helping the real estate market. matt: first-time jobless claims fell to a three-week low. since march, the estate below 300,000 and that is a level that economist always talk about consistent within improving labor market which we know we have. the president of greece has appointed the head of the supreme court to lead a caretaker government as the country moves one step closer to an earlier election that had b

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 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

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