3 . Down about its already at volume low, down futures down about 2 . 2 . Features here are taking their cue from there. The dax in germany relatively unchanged. Deal, so theno ruble is weakening today. Yenstors are fleeing to the , although now we are at. 4 weaker dollar versus the end. Three pointoil down 32 . 3. 32 . Stanley is actually down about 20 . 8 . We are seeing some good numbers out of Morgan Stanley, but we are also seeing a couple of numbers where people are needing a moment to digest. John . John its been a while since ive been here, im getting a bit more control. Where was the big story in the last 24 hours, the biggest producers failed to reach a deal over the weekend. Saudi arabia refused to freeze out commitments from other producers, joining us now is libbyergs javier blas and joins us on the phone. The market has to work something out, the rally since mid february was about anticipating a deal. Javier there were several factors. Production in the u. S. Is coming down, demand is very good. Particularly in the u. S. And india. Thats a bit in china. Certainly the talk about the freeze in mid february was key area. Iving this market i think its going to be beginning to take a step back because also, it opens the question of what saudi arabia is what to do next. They didnt freeze so they could increase production. Jonathan we moved to the opec meeting, could we get a deal with the likes of russian out there . Libby the key of this meeting was that it was going to set a more constructive stage for the opec meeting. And the inability to freeze output when producers were really pretty close to output tells you these guys dont have a lot of relevance anymore, its going to be very difficult for them to come to an agreement on anything. Most important like, a cut in future. I think thats what the oil market is telling you this morning, that theres no possibility for these guys to get together and have some kind of consensus. Jonathan opec has died about 15 . Imes, is opec really dead javier i would not say so. We sought happening in the 80s and the late 90s. But certainly i would agree that opec if its not dying, its absolutely in intensive care. Other countries with russia cannot agree on freezing this is almost a record level. Its a difficult discussion, its not going to happen. I dont see that happening. The future of opec is in question. David the saudi arabia really want to deal at all . It seems to me for some time theyve been playing a of keeping oil prices down to drive a higher cost producers. The get to blame iran right now, but if iran were there, do they really want an agreement that will raise oil prices . Libby anything have to. You saw with the downgrade of their debt, they are trying to raise the money. Socially, to break even for these countries for their social and economic budgets to work, it is significantly higher than what it costs for them to pull oil out of the ground. Its becoming a problem. I do think they want to get some kind of consensus. I think whats going to happen is the physical oil markets, which are already in the balancing process, are going to bail them out on the back half of 2016. I have a chart on the bloomberg showing production. Iran in blue, the saudis are here in yellow. If you want to check it out in your bloomberg. It shows the iranians have incredible momentum. For a long time, correct me if im wrong, theres a thought in the market that may be couldnt boost production to 4 Million Barrels per day by 2017, as its goal. They already boosted output in march. The first two weeks of this month, iran and iraq have boosted output by one Million Barrels. There are spots where production is just jumping. Javier you are right. Production, particularly from iran, is increasing quickly. Its going in the trajectory that to ron told the market they were going to go. Irantraders doubted that would be able to produce production so fast. His first 15 days of april, the production of iran of crude oil and condensate is coming very quickly. In the saudi production, momentum is coming down. That doesnt mean they cant decide to increase production. I think the tea the key to me is how saudi arabia elapse reacts today. And whether they decide to go facetoface, headtohead in a war against iran. Jonathan libby, bill of what hobby or javier just said. Of noise, headline after headline for various countries. What are you looking at . Libby we have to look at to make sure we continue to see the supply growth in the u. S. Continue to roll over, we need to make sure our demand and numbers, which we have seen arey are seemly extremely strong. Weve seen numbers that of china that are strong. Those are going to be a weekly thing. Finally we need to see the u. S. Inventory continue to be drawn down. The markets are going to be volatile the next couple of months until its kind of a show me thing and people see supply has come down and we are about to be in balance. Lose libbyy to toudouze and javier blas, thank you. Contrast, is Morgan Stanley has gone up in the free market, low market trading reporting firstquarter earnings fell 53 . Us tocampbell is with break down the numbers. I do want to turn to you first, a big beat on the bottom line and a small beat on the top line when it comes revenue. We did see compensation expense coming way down. Theres been some more negatives. Dakin this is a story much like the banks of last week. In a tough revenue environment, Morgan Stanley cut costs. They did bring compensation down. Its easier to do when you have markets and Investment Banking revenue down. You pay those people less money. We did expect to see comment down. Mp down. They cut expenses to fix dent where people would get excited about this. The revenue picture is not very bullish. Revenue is down quarter over quarter and yearoveryear. Thats what people are really betting on for Morgan Stanley. That theyre going to generate more money from that business. Compensation expenses up 3. 7 billion, you can imagine how they got to . 55 a share. I also want to mention the trading revenue. We did see equity trading revenues they didnt beat that. Beat, i think equity did both are down yearoveryear. Up 200 million plus over the estimates we had. The beste of franchises, if not the best franchise on the street. Thats good for them. They have sold their physical commodities is this, they fired business, they fired 25 of their people. Morgan stanley is shifting their mix to stock trading. David theres a larger picture that the emerging from the banks. They are all down on trading and more speculative ventures. What makes up for that . When you have Retail Banking that can compensate, when you come to Morgan Stanley, how they make it up. . Growth areurces of not obvious. They are less levered. They can lever up their gains. Its probably difficult to make it up, and we are in a world of less profitability of the big financials. David you end up with cost cuts. Investors arenk getting used to the fact that the banking of 2016 doesnt look like the banking of 2006. Vonnie do we need the big banks to support the economy . Richard the big banks are in good shape. In terms of lending, there are additional cost the banking that we didnt have before. Banks are safer, but lending is trickier because of the need for liquidity covering ratios. We are in a different world, we have to get used to it. Jonathan this is just a brilliant example of an ugly quarter and many ceos that took control of the situation with expectations management. Thats the reason you have a pop free market. Bottom line, half its filing and everything will bank this reporting earnings so far this season. How does this play out for the rest of the year . Dakin its not a pretty picture. If you talk to bankers, they will tell you some of the activity they thought was going to show up in the First Quarter may get pushed to the Second Quarter. First quarter is typically the busiest, when people shift iftfolios or get deals done, they are bringing one or two deals to market the year. That instill hope april, may, june, we will see some of that activity come through here. If it doesnt, you might start seeing people talk about a revenuesar or very low in some of these businesses throughout the year. We continued talking about this at all of the days stories. Thank you to Dakin Campbell for breaking down is Morgan Stanley clarida withichard us. Brazils president on the verge of losing her office, congress voted in favor of impeaching her and ending 13 years of leftist rule. Now its up to the senate. Analysts say will be difficult for her to stay in power. Shes accused of hiding budget deficit with illegal loans from state banks. We will be live in brazil. The death toll is rising from the earthquake in ecuador. The government says at least 272 people were killed and more than 2500 injured. The magnitude 7. 8 quake was settled north of quito. Many people were trapped in collapsed buildings. Meanwhile, in japan, a series of earthquakes that struck the island are the nations worst in five years. More than 110,000 had to flee their homes. Global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. David coming up, we have more on the president fighting for her job after losing the Impeachment Vote yesterday. And news on the bidding for yahoo , next on bloomberg go. Jonathan this is bloomberg go. Here in europe, im in london, about four hours 50 minutes into the session. The reason most of the losses for the session, now down not even. 2 . The dax rumored to be unchanged. One big reason is crude. As sevenping as much Percentage Points, coming back at 38. 90. 3. 62 that was a one point the biggest drop since september. Doha dominates. Yields go where crude goes, that general risk running right through this market, the dollar yen coming back a little bit. Thats around. 4 . The eurodollar ahead of that ecb meeting later on the week, 11306. Heres vonnie quinn with your Bloomberg Business flash. Leads the race for yahoo after a number of potential bidders dropped out. Iac interactive decided not to make an offer. Earlier, bloomberg reported a wall units are working on a yahoo units that would include yahoo japan. Osborne has come out with the treasury analysis that says leaving the eu would shrink the british economy 6 by 2030. The report warns the damage to the economy would be permanent because lower trade and investments. Says taxing director evasion and the use of Shell Companies is a crucial challenge. The imf meetings, she says companies countries must think outside the box. Earlier this month, leaked documents showed how some of the worlds richest are hiding their assets. David Dilma Rousseff is hanging on by a thread is the lower house voted in favor of impeachment yesterday, setting the road to the present to the senate. They are hoping the Vice President can help whole brazils economy out of the downturn if he steps in. For more, we have Richard Clarida with us. Richard the outperformance has been really incredible. This is the benchmark equity index, up 23 year to date. If your dollar investor, its a better proposition. Up 32 year to date. The realities the strongest of the currencies against the dollar this year. This shows you a whole bunch of things, you can see the rialto is up almost 13 against the u. S. Dollar. Take a look at this. Its a spread, and what we have here in white is the actual performance of the iva vespa compared to the targets. , but it hasrformed already met analyst targets. Need toer analysts raise target prices, will be left in the dust. Or maybe we reached a point where its fairly valued. David to get what happened yesterday in brazil, we are by Anna Edgerton from brazil. There was a vote, two thirds of the lower house voting to impeach the president. What comes next . We will come back to and anderson. Two Anna Edgerton. The markets think she is gone. But there are some steps between here and there. Do you think the markets are jumping quickly . By the this may be rumors instead of the fact. My think the impeachment was widely expected. There are some next steps, there are some small chances we have an election. The best case for the markets is a transition to the Vice President , and may be breaking the stalemate and logjam in brazil, which investors will be supporting. Vonnie we will try and go back to anna in brasilia. If you can hear us, how is the reaction . Our people expecting this is the final straw for the president . Last night was definitely the climax of this whole impeachment process. Its not the end of the road, she still less to go to the senate and fight this process there. The general understanding is whatever the lower house decided, which last i was in favor of impeachment, the senate will follow suit. David is there any reason to expect that she might resign before seeing this out . This could last as long as six month. Anna thats not really her profile, and her attorney general spoke with reporters last night, he said is not being considered, shes not going to resign. She will fight this to very end. Vonnie is there a number two popular choice for a replacement , in terms of market for distance . Participants . Anna is a very good politician, with a bridge to the future program thats been well received by the markets, but he is not a popular politician in terms of being popular with the people. He inherits a country that is very deeply divided. He is going to have a tough road ahead if he does take over as president. David tell us about the bridge to the future. What sort of sense to we have about what economic programs he would put into place if he becomes president . There is no sweeping reforms thats going to revolutionize brazilian economy. That sovereign premium is going to be in excess of treasures. It has been coming down compared to the elevated levels we saw previously. Do you see continued difficulties for the currency . Richard last year was a disaster with that massive depreciation. Political uncertainty and challenges in the country with very high just raising capital outflows is going to be a volatile trade for whatever is going to get into it. Theyre going to need some compensation in order to justify that. Thank you to bloombergs Anna Edgerton reporting for us, Richard Clarida is sticking with us. Jonathan coming up on bloomberg go, the big oil doha. No deal in oil low but stocks are raising early losses here in europe. Jonathan coming up at 8 00 a. M. Eastern, 1 00 p. M. London, dan yergin joins us on bloomberg go, to talk yesterdays doha miller. Meeting. Matt we kick it with Goldman Sachs, which is said the lack of consensus is a negative, but it things that opec will recover in the shortterm, especially in light of the kuwaiti oil strike. Morgan stanley at a risk of higher opec supply. I think these salaries can push through and rebalance by 2018 the saudis can push through and rebalance by 2018. Supply and demand is in balanced by 2016, i think we will hear that as well. Rich, in one word, where we going with oil . Richard its very important, the oil market is stabilizing. And supply and demand are coming into balance later this year. David rich chlorella from pimco, thank you. Verizon is the leading suitor for yahoo after several bidders dropped out. Thats coming up on bloomberg go. John this is bloomberg. It is a Beautiful Day but it was not that pretty for indexes. Lets take a quick look at futures. Doubt futures erred down by around 43 points judged dow futures are down around 43 points. Dax is relatively unchanged. Almost full seven Percentage Points lower. We are now only lower by 3. 5 . Yields and oil are moving in tandem. A little bit risk off right now but for the banks, another bank on wall street with an upside surprise despite declining profit. Morgan stanley is joining the club this morning, up by over 2 . David joining us now from radio is tom keene. Lets get some first word news. There is arguments today in the fight over resident obamas argument against the deportation. Republican governors argue that the president has gone too far in the Court Decision could alter the fate of millions of undocumented immigrants. Levy arabia will try to subsidy tax on its citizens. Cashovernment will divide among middle income families. It is responding to foil Falling Oil Prices. Incident has underscored the concerned about the threat closed by drones. A British Airways jet may have been hit by a drone at heathrow airport. It landed safely and police are investigating. I spent the first few years of my career as a trust lawyer. That leads us into your mustread. Tom paul krugman is talking about monopolies. The New York Times do you think the wifi was cut off . Fios customer and have had a good experience. Tom its a nice essay on the incentive to invest. It goes over the great mystery within the broader economics. Howdy you invest . In the age of oversupply, whyd you need invest if there is too much stuff out there . Hint out there in last weeks Economic Data showing weakness across the board and industrial capacity and utilization it has been declining. Bumping upes are not against capacity constraints, or laborlittle costs then there is little incentive for them to make significant Capital Outlays. Vonnie you have fios working beautifully but many dont have it. David fios is competitive with cable companies. This was competition. Vonnie the build out has stopped. David they invested in the first 25 which is the highest tourn and it got expensive take fiber optics out to the rest of the country. Deals we have seen some get stopped recently. In europe as well, there is a on monopolistic behavior. if you speak to the French Telecom companies, they will tell you fewer players are breast our best because they are involved in a price war. For thech argument market to consolidate and the less concerned you