For the week major market to come online for the week. The get a recap on how u. S. Markets ended on the friday session. Largely unchanged, of course ahead of a pretty big week when it comes to ecodata. The head the fed meeting not expecting any move, but markets will be watching the statement for any guidelines on how the Balance Sheet outline will work. We also have gdp numbers as well. Indications on inflation will be key whether we see the bond market, the tips market beginning to secondguess janet yellen. Indices, wehe bank are close to record highs. The s p largely flat, the dow did thisth of 1 , ahead of a big week of tech reports. In asia we have us futures pointing south ahead of the flat close on the u. S. New zealand is trading down 0. 2 , the kiwi dollar looking like this. The u. S. Dollar holding onto losses the end of last week. Futures in australia, the asx shaping up for the open. We are seeing a downside of 25 point or half a percent in the negative yield. The aussie dollar is falling quite steeply on friday. Really clarify where the markets ran with the idea that the future cash rate and sending the marke close to the 87 sunday. Looking at commodities, key to the oil patches, looking at the opec meeting, nigeria was happy, but now both ahead of the minister saying they need to pump at it higher level. New york crude off a quarter of 1 come up 4568. Gold futures were up for a second week. Down one and 3 10 of 1 . Lets get you caught up with first word news with rosalind chin. Thelind u. K. Is claiming removal of trade barriers could leave an additional 13 billion a business. The administers the same this would be the easiest. For person is in washington talks and warned the American Team has more negotiation experience. The u. K. Cannot make trade deals as it leaves the e. U. Calling for an end to the diplomatic isolation of qatar. Saudi arabia and other allies , reporting qatar extremism. The u. S. Secretary of state Rex Tillerson said last week washington is dissatisfied with the progress, but customer must revise policies before talks begin. Qatar must revise policies before talks begin. Gasoline surged in the first half. Refiners need to look abroad. They stopped almost 21 from a year ago, when exports rose 8 . , theyanghaibased group said domestic demand has been hit by hybrid cars. Ministeralaysian prime has stepped up his campaign for electric support by announcing millions of dollars of aid for farmers. Cash handouts the end of next month and some debts wiped off. Many of the people have been hit by the scandals as the world leading global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. I rosalind chin. This is bloomberg. Haidi thanks for that. As a new week get underway on wall street, fresh earnings, ecodata sharing the spotlight with trumps ties to russia. The fed has a meeting on interest rates. Su keenan is here with a look of what to expect. Lets start with gdp. Betty something su that is something the market is looking at the end of the week. 2. 6 . G to ask there was a pickup in consumer spending. We are getting a report under what we can expect to be ticking up. This is after the fed begins its twoday meeting midweek, wednesday. That is the end of the twoday meeting when the fed will be announcing the latest rate decision. What is interesting is the bond market is singling signaling trips, which are treasuries after inflation, the bond market saying they do not see any sign of inflation, so they dont think there is a question for janet yellen. How will she continue the positive rate hikes when there does not appear to be any evidence inflation is approaching the feds goal of 2 let alone Something Else . That is an interesting road for janet yellen, so it will be interesting to see her remarks on wednesday. The market looks to the feds comments for what is ahead. And a lot of the Economic Data will be overshadowed by the heating up of the trump investigation, the possible tries ties between his campaign and russians during the election. We will have a reporter catching up on all of the results, but there will be a Senate Hearing in the coming week, and trumps son being asked to testify. That will clearly be sending a series of headlines that have been dominating main street and wall street alike. Fari yes, politics not from the forefront. It is a huge week of earnings. Range have had a strong of earnings, all of them noteworthy. Lets go to the bloomberg. Take a look at how the s p 500 has been pushed higher by record earnings, and you can really see the eps or the blue line is for some of the top earnings per share numbers, and that goes up, so has the s p. Looking at the highlights for last week, ticking off the Financial Centers of the . Eginning, was a disappointment mainly because of the core business, even because they did well on the earnings frank, ibm another disappointment, down in quarter and revenue, though they are predicting pick up to the end of the year. Netflix blew it out on the subscriber front, not just in terms of u. S. Domestic increase and subscriber, but internationally they have become a powerhouse. People have been piling in, and the bank stocks getting a record all week. ,ets look at what is ahead different earnings in the spotlight, everything from the Alphabet Company which is googles parent company, reporting earnings. We will also be hearing from twitter, the autos gm and ford, a lot of the energy companies, exxon and chevron. It will be a robust week of earnings if you will along with other events hitting the table. Haidi absolutely robust. Thank you so much for that. Su keenan in new york with a look for what to expect. As she was talking about, investors will be looking at the expected testimony from donald trump jr. And his brotherinlaw , Jared Kushner. They are due to speak to report sanctions on russia for the alleged meddling last year. Rosalind joins us now. But what is the latest we know . The main thing to keep in mind, three words, behind closed doors. Trumps soninlaw and Jared Kushner are expected to speak to the House Intelligence Committee and the Senate Intelligence cases,ee, but in both they will speak in private. We may not get much of a readout on that. We also expect paul manafort, the former campaign manager, and the oldest son donald trump jr. To speak behind closed doors to the Senate Judiciary committee. There is a lot of action going on that could be behind closed doors. The other question is whether that is sworn testimony or a fireside chat. Haidi right. And as these political theater goes on, or misadventures, there is something on the policy front , the vote on health care. Will that happen . Ros it is likely to happen. It is interesting because the Senate Majority leader Mitch Mcconnell is keen to have a vote this week on health care, but even some of his senior lieutenants, for example john thune of south dakota on one of the sunday shows, he does not know and others do not know which version of the obamacare replacement will be under consideration. It could be repeal and replace. It could be a straight repeal with no replace. Both of those plans have had pretty negative reviews from the Office Management and budget of how that would affect health care consumers. Thune doesnt know, senator collins, nobody knows, and we may not hear we may have it here is the night or maybe not for a few weeks. It is not expected this week. Haidi we are looking ahead to that and implications for the Political Capital ride the president is trying to push. Ross krasny in washington. From the fedected this week, but investors are pouring over that statement for the next hike and the Balance Sheet. , differenters sections of the market. This is bloomberg. ,aidi five haidi lun in sydney you are watching daybreak australia. The Energy Minister of nigeria could join the oil cuts agreed to buy opec but only once they stabilize. Most companies countries were exempt last year. Their participation will be central to talks on monday. Bilateral deliberation is in full swing. The secretarygeneral of the market just stepped out of his car. He is confident and optimistic it is working out. What he has described a level of compliance that is excellent. Monday morning, things kicked off with the monitoring committee. That consists of algeria, kuwait and venezuela on one friend, and then you have russia and oman. Front, and then you have russia and oman. They will make recommendations how to refine the deal going forward. That brings up scenarios weve spoken about in the past when it comes to the central question about libya and nigerian output but also the issue of accelerating the rebalancing of global inventory. Plenty to look forward to. Yousef gamal eldin, bloomberg. Haidi plenty to look forward to we are doing that with daniel hynes, good morning. Happy monday. I want to go to the stage remarks from Mohammed Barkindo of opec because he seems to suggest that going into the meeting they are not worried about how to react to Market Dynamics. Lets take a listen. It is not about the Market Conditions or the market adapting to what we are agreeing. It is just for the committee with the assistance of insuring the technical effort together the dynamics of the current market which has been increasingly complex, intelligent. Are going tod they a value which Market Dynamics but not they are going to evaluate Market Dynamics but not respond. Do you think the caps are starting to work . Daniel there are signs, but it has been a lot slower than they expected. The market as well. It is a little bit wrong to andest you need to analyze listen to what the market is saying but not respond. They were clear at the start of this crisis they wanted to be a part of the market and the Investment Community more so this time that i have in the past. They have in the past. This goes to the issues. We can in the background still wait and play this thing out, in the shorter term they need to be a little bit more proactive about the Investment Community is saying. Haidi update the cuts . Daniel i dont think they do. If we look at six to 12 months, things are playing out as expected and how that looks through the later half of this year into 2019 is a tight market. That could reduce the inventories. If the market is calling for more, and pressures and prices subsequently, they might have to react in a small way. Meetings,ng into the nations that have been exempt, whether they would get on board . Daniel listening to what nigeria and libya have to say about their outlook. They are still cautious about sustainability of this, that might be enough for the market to say, look, these talks of levels of growth we are seeing and the output term may not be sustainable. If they are confident of seeing continuing to grow, it is bearish. Haidi i want to bring up this chart. Every time opec meets, we asked the same question. 8881 on the bloomberg. , theproduction on white difference is in the middle. His opec Still Producing . Whatever ground they manage to gain, you have u. S. Shale, u. S. Production filling that gap. Daniel when you talk about the swing producers, is usually high cost. Opec is on a cash cost basis. They think the u. S. Shale producers have taken that spot essentially. They will react to the Market Forces much more quickly. And at the moment, they are responding to the relatively good prices compared to the level of cost at the moment and pushing additional supply into the market. Haidi where does it reach a level that does not happen . Daniel we are in a sweet spot at the moment. You can only get five dollars or so on the downside with the u. S. Tole react, but if we push back on taps turned again. You are in the middle. Haidi are you looking at mostly largely supplyside dynamic at the moment, or are you looking at demand . Daniel at the moment demand is relatively ok. We saw a bit of a weak patch earlier this year, but things are picked up in the u. S. It is not a game changer, but against the broader commodity complex, better macro backdrop coming through. Demand, growth in china has been better than expected. So that is starting to play its part as well. It might creep up on the market if people dont keep an eye on it. Haidi we have had commodities overall do quite well. Iron ore in particular. What is happening there . Daniel i think the market was overly bearish on the demand side. There was a lot of skepticism about demand particularly with those constraints on the Housing Market in china. The infrastructure side has met all instrumentation expectations in the growth story. That has resulted in the steel mills becoming more bullish on the outlook, and that has enabled them to restock into the second half. Haidi have you had to renew your projections . Daniel we have been more bullish. Haidi not yours in particular. Daniel the market has been all over the place. They are ranging from 40 to 70, a huge context. The market has had to reset the expectations. It has been a big part of that so far. We are seeing that stabilize now. We would need to see a few more months of positive Economic Growth and numbers come out. I do think the bearish side is starting to revise their forecast. These are concerns that all the promise of Infrastructure Spending will come through on the policy side in the u. S. Daniel he has definitely taken a hit. The flight for the market in the second quarter, we saw the weakness in Commodity Markets as trade,t of the trump off so to speak. I dont think it was a strong driver to start with, so the impact at the moment is relatively limited. Haidi one final word on oil, what is the dem the outlook on oil . Daniel the level of disruption level,ting the nondisruptions are fixating. It will be an issue the market has to deal with. But clearly the u. S. Shale producers, they are very resilient producers and still talking the talk at the moment. Of start tos sort constrain their output, like we in the first decline u. S. For a while. There are signs they are , that will begrow something for the market to contemplate. Haidi daniel hynes, the Banking Group senior commodity strategist. Ahead of the opec meeting. T will have more we will be joined by jpmorgan head of research. Markets,on bloomberg Blaine Gordon will be here at 11 11 10. You can get a roundup of the top stories you need to know to get your day going in the edition of daybreak. Bloomberg subscribers can go to dayb and also available on the mobile. Customize, tweak your settings. You can get the assets you care about. This is bloomberg. Haidi i am haidi lun in sydney. You are watching daybreak australia. Get you a look at the business flash headlines, Deutsche Bank and j. P. Morgan chase are going to pay 48 million with results they conspired. The pair is accused of manipulating the rate between 2006 and 2011, and the agreement was reached despite the wrongdoing. They will pay billions in fines over the last nine years. Chinas small caps share change is being cheap on the nasdaq. The index valuation reported 36. 2 that is the narrowest gap since 2010. It is mostly made up of tech over the and has 25 last year. The nasdaq has risen 26 . Exchangeng stock operator is going to consult the market on changes. And expanded closing option will expand monday. The 30 minute auction is set the a 20 minute session and order operations. Nomura is betting on india with demand for equities. More than 3. 5 billion in the. Ast year indias economy is expanding seven times the pace of japan, being boosted by a growing at all class and more than one million young people joining the labor force every month. Shares have hit multiple records this year alone. Optimism continues to grow. , uranium and sending a test shipment to egypt haidi it is a 30 a. M. In sydney, markets open locally in 30 minutes time here looking at futures, pretty negative open across asia, broadly after u. S. Stocks ended unchanged. Tech earnings a big week, financials as well, gdp rounding up a big week. Same for the u. S. Economy. Lets you caught up with the first word news. Plant President Trumps team has been playing down the comment he asked about complete power to pardon. He cannot pardon the supreme court. They would have to determine if he could pardon himself. The legal team said the issue is not on the table. I am not sure, but it does not matter anyway. This is one of those stupid hypotheticals. He will not have to do it because he has not done anything wrong. Oliver the parliament rosalind 9. 8 billion in spending is the plan to create thousands of jobs for the gdp growth. The vote was delayed with disagreement over issues including the inclusion of more civil servants. The philippine president has support for increasing marshall support. Representative voting overwhelmingly in favor for the. The Senate Approved by 16 to four. This is the Second Annual state of the nation address later today. French president Emmanuel Macron has seen Approval Ratings sink over the tax reform confusion. Points tos felt 10 . 54, the secondbiggest to climb for a president early in the job. He was elected despite never having hold caucus held office. New images captured by a moving what is being melted in the waters near fukushima your blackrock and sandy substances at the bottom of the reactor it will take time to confirm that. The images were captured by a designed tot withstand the reaction. Powered by 2700 journalists and analysts in 120 countries. This is bloomberg. Haidi thank you so much for that. Lets get you a quick update on the markets as