The major averages at the moment. A near flat line. Weve got oil prices now on the rise, we had that janet yellen testimony, we had durable goods orders this morning. Crosscurrents in the markets today. Lets talk about oil. It pushes higher by 3 . Oil having some wild swings over the past week. Algeria itself proposed a cut in production. They may sign onto something later this year. Look at how this has played out in the various groups in the s p 500 today come energy doing the best today, telecoms doing worse. A downgrade to at t at ubs. Industrials are one of the areas in the green. For augustds orders were unchanged. The estimate was for a decline of 1. 5 . Weve seen the industrials, durable goods orders desk durable goods durable Goods Companies rising today. ,ere watching the drillers almost bringing together durable goods and oil. We are seeing them rise as well. Baker hughes and weatherford international. Another company in that semtechals index is death they raised their fullyear earnings per share guidance by 5 revenue grew 8 . Ntas raised their fullyear earnings per share guidance by 5 , revenue grew by 8 . Oliver lets check on the first word news this afternoon. Mark the United States is sending 600 additional troops to iraq to help reclaim the city of mosul from islamic state. Train and advise iraqis on the plan to retake the town over the next few months. The u. S. Has roughly 4600 troops in iraq. Paul ryan he does not expect congress to address the hotly debated Transpacific Partnership trade agreement in the upcoming lameduck session. Speaker ryan said the proposal needs revisions. The last thing i want to do, just for the sake of our allie relationships is to bring up an agreement only to see it fail. This has to be improved and fixed. That will not happen in the next couple of months. Mark hes increasingly confident that the house and Senate Republicans will maintain their majority after the november elections. John warner of virginia is asning donald trump disrespectful to the military and woefully unprepared to be commanderinchief. He is endorsing Hillary Clinton. He says he is distressed by trumps comments that the u. S. Military is in bad shape. A wildfire south of san jose, california is threatening hundreds of structures after burning through three square miles of dry brush and timber. At least one home has been destroyed. A heat wave has made the fireworks, forcing hundreds to evacuate. Made the fire was. Made the fire worse. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Vonnie at the beginning of the year, three cs dominated the global outlook. China, commodities and centralbanks. No comments about the three ps, policy weve had disappointing pace of growth in the u. S. Economy and productivity growth and output per worker is exceptionally slow,. 5 per year for the last five years, maybe twice that over the last decade. Low in historical terms. That is critical to Living Standards and investments of all sorts. Vonnie joining us now for an. Xclusive is Joachim Fels Pimco just released its outlook. Do you see one of three quarters for developed markets in general how do we get to a stable growth rate of that nature . Joachim the main reason is that bad stuff that happened over the past year has stopped happening. What weve seen over the last six months since the volatility we had in january, weve seen markets much calmer. The Central Banks have sedated the markets. Financial conditions have improved. They have eased. We get some tailwinds for the economy in the u. S. , the inventory correction is behind us. We can probably see Something Like to come and maybe even 3 over the next two quarters. Oliver is that going to be enough . An improvement, but will it be enough to sustain where investors have been putting inmoney and banking banking to get corporate earnings to rebound and get some of these companies Balance Sheet in better order . Joachim markets are already anticipating better growth. Otherwise, they would not be up here. Theyve been propelled by central bank support an expectation that we get some rebound, particularly on the earnings front. The dollar appreciation is behind us. We should see some rebound. We worried about what lies beneath the surface. Valued asset markets and some risks that may come to the ball. Were worried about the buildup of debt in the corporate sector. Does it matter if rates stay the slow . This low . Joachim its a decent chance that we get some rebound and productivity and that could make the fed more willing to adjust rates higher. The broad consensus in the markets that rates will stay low forever could go. You say some chance we might get a decent rebound and productivity. What would get us there . Joachim we need to see an end to the politically induced uncertainty. Once we get past the elections, you will see some that has been held back so far because of the heightened uncertainty. Good chance that on a global basis, fiscal policy will become more expansionary. We are seeing more fiscal stimulus in japan. A good chance we get some fiscal easing here in the u. S. Next year come after the election. That could lead to some improvement in productivity over time. Oliver when you look at some of the Asset Classes have done very well in this Slower Growth , u. S. Equities have done well, we are at new highs, treasuries and bonds thosed, how long can all be rallying together and which is having the most risk . Joachim the way i look at the environment is that we will continue to have periods of calm where all Asset Classes do well and then we get volatility caused by whatever the next shock is. Lower oil prices or worries about negative Interest Rates. We will have these regime switches. The most vulnerable asset at the moment are equities, particularly in developed markets. Valuations are lower their. Theres. Is wrapped in as well. We prefer credits. We want to be in assets that may when we get the next bout of volatility. They wont break because they have low default risk. It makes sense to position more cautiously, especially when calm as theys are now. Oliver thank you, joachim fels. Vonnie coming up, one of the most influential bankers in the world. A conversation with the ceo of Credit Suisse. This is bloomberg. Oliver welcome back to bloomberg markets. Now 12 our Global Coverage of the most influential summit. Satceo of Credit Suisse down with Francine Lacqua earlier in london and discussed everything from brexit to Bank Consolidation and capital concerns. Tidjane under most foreseeable scenarios, we dont need to risk capital that would not be wise. Level. At a comfortable there was a lot of debate last year over whether we should sitting at 11. 8 today, i felt it was the right decision. When i want to provoke, i say im not smart enough to run the bank at 10 . You need to have perfect knowledge of the future and perfect execution and i have neither. Its good to have a buffer is you can operate and manage. We sell too close to the wind francine do we need consolidation in European Bank industry. I was interested by Mario Draghis comments saying there were too many banks in europe. Look at wells fargo and bank of america and jpmorgan, i was involved in one of the largest mergers in america and those banks have been created largely through mergers. Costs, extrapolate synergies and cost cutting is very significant and you create a more diversified, more stable organization. The differential impact of jpmorgans number in equities come activities is disproportionate. Clearly in europe, that has not happened. Francine do you believe europe is over banked . Tidjane i think it could benefit from consolidation. There would be a lot of upside. Right now, every institution is be on a very restrictive diet and shrink on its own its much easier to do when dust oliver oil rallying on the back of what appears to be a bit of a decision made at the oil summit. Years ing in out algiers. Julie there has been some kind of opec deal here. A production deal here. To writers. Ing reuters. Oil up nearly 4 . It did not look likely there would be a deal. We saw negotiations go backandforth between iran and saudi arabia. Algeria had proposed a Production Cut, a daily Production Cut of more than 750,000 barrels. It was not clear if that was going to gain any traction. Look at oil prices in tandem with the s p 500, oil in yellow, s p and white. Its only trading higher here by about. 2 . Definitely moving in tandem with these headlines that just came out as the energy group is now gaining ground. Its been one of the standouts throughout the session today. Right now, that is indeed whats happening as we get these headlines. You see individual Energy Stocks are certainly benefiting as well. Exxon taking a leg up along with these oil prices. This meeting is supposed to be an informal one. It was unclear whether we were going to get some kind of agreement. We will keep track of it and let you know what we find out as the meeting goes on. Vonnie thanks for that break down. On the bloomberg and you can see what each country contributes. On the follow along bloomberg. Its also impacting equities. The dow up. 3 on the news and the s p 500 up. 2 , having been lower earlier. Denny a littles congress the central bank is taking a comprehensive look at the biggest banks following the wells fargo scandal. We will speak to maxine waters. This is bloomberg. Oliver this is bloomberg markets. Vonnie timeout for the latest Bloomberg Business flash. Andit suisse and barclays talked with the Justice Department to resolve an investigation into toxic mortgage bonds. The Credit Suisse deal could be announced within several weeks. The government has already secured 46 billion in penalties , compensation and consumer relief. Viacom and cbs will be asked by their controlling shareholders to explore a merger. Is expectedsements to send letters to both media giants as soon as this week asking their boards to establish independent committees to consider a combination. Reportedly dust to protect users data. The newspapers as the company resisted investing and Security Solutions and Marissa Mayer focused on yahoo mail and developing new products over making security improvements. The login information for 500 million users had been stolen in 2014. Recap some of those headlines now. Crude oil futures ticking higher. On a report that we do have a deal approved by the algerians. Im looking at top live. Is moving equity markets with the energy group of more than 2 now. This has been back in the spotlight with equity markets here. Earlier this afternoon, we published a story on bloomberg about what was being proposed. Algeria proposed opec cut production by 796,000 barrels a day. A 2. 4 drop in the level last month. We dont know whether that is actually close to the number, far from it, but that is the number that was on the table. Any kind of agreement will be some kind of accompaniment. Hillary clinton is campaigning with Bernie Sanders at the university of New Hampshire today. She plans to persuade sanders supporters to vote for her in november. Obama and the president himself are also hitting the campaign trail for clinton this week. Now. Bring in ben Brody Clinton still needs to win over some sanders supporters. Or does she . Will be a much tougher road for her to do it without sanders supporters or young supporters generally. The kind of people who buffered the obama coalition. And largely went for Bernie Sanders in the primaries. Damage from that primary she is still lacking that vote. These people dont feel engaged, they dont feel they have a candidate that they like. They dont feel motivated to go out and vote. This will be key for her to motivate these people. Assess whetherwe or not this pretty supporters polls in are there which they are targeting millennials . When can we get some conclusion about where these people are moving . Ben it comes from a variety of sources. We look at age breakdowns in some polls. It also depends in statebystate. At ing they are looking the vermont senator swept New Hampshire. Would you still vote for sanders theou were in the race number of people who would not accept her as a substitute is going down very slowly. It may never get down to the level that she would want it to. Slowly but surely, it is coming down. She got a couple of interesting endorsements today, including one from the arizona republic. Saying donald trump is not qualified. Do these do anything for voters who would not typically vote hillary . Endorsements matter a lot when it comes from the local paper or local union. These endorsements statewide might not do anything for her. On the other hand, the play into a larger narrative. Donald trump is not acceptable through traditional establishment republicans, especially those concerned about national security. In that sense, it may give her a bit more of a boost. It denies these endorsements to donald trump. Catchup, him playing trying to move a lot of former republican officials into his camp. Of bloombergrody politics. Oliver Janet Yellen Tells Congress the central bank is taking a comprehensive look at the biggest banks following the wells fargo scandal. We will be to the ranking democrat on the House Financial Services committee, maxine waters. Oliver from bloomberg World Headquarters in new york, this is bloomberg markets. Vonnie lets check the headlines on the first word news. Mark the u. S. Senate has voted to advance the stopgap funding bill needed to keep the government open past midnight friday. Earlier today, House Speaker paul ryan and Minority Leader Nancy Pelosi agreed on a measure to pay for the contaminated water crisis in flint, michigan. The measure now goes to the house where it might be approved tonight. The bill would fund the government through december 9. James komi says at least five people have been granted immunity during the agencys investigation of Hillary Clintons use of a private email server. The number of immunity agreements is not unusual for a complex investigation. Director komi also repeated ticism from republicans Michelle Obama is using a Hillary Clinton rally to denounce Donald Trumps role in the birther movement. Hurtful, deceitful questions deliberately designed to undermine his presidency. Questions that cannot be blamed on others or swept under the rug by an insincere sentence uttered at a press conference. Mark the president has answered the birther questions by going high when they go low. The first lady says the next president cannot lash out rationally. Vigorously defended his stimulus policies while reaffirming the urgency to step up structural reforms. Met with german lawmakers who want an end to record low Interest Rates for the euro area. Decreasedhe rates incentive for eu countries to make economic reforms. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. Im mark crumpton. This is bloomberg. Oliver does go big hearings this week in front of the House Financial Services committee. Pf. Orrow, john stum today, janet yellen appeared before the panel for what was supposed to be on regulation but devolved into harsh questioning on how political the fed is. Was that a conflict or not . If they are having direct negotiations with either Political Party to ask for a job next year while they are a sitting governor, do you see that as a conflict . I would like to have an answer. Will he be asking the governors whether they are engaged in such activity . Oliver joining us from capitol hill is the representative who called for him to yield, congresswoman maxine waters. Thank you for joining us today. Clip,e just playing this where do you stand on this debate that has begun to emerge about the politicization of the fed . Congresswoman waters he was unreasonable. He did not allow her to answer. And he didterfere not really want a real answer. It was a message he was trying to send out there that somehow wrong innistration was and thatith ms. Yellen ms. Yellen was somehow too closely tied to the administration. Notalked about whether or there was some attempt to get a job how is ms. Yellen to answer that . She does not know whether theres been any discussion at all. She was not aware of it. She advised him that they are covered there are some things that are not covered by the hatch act. Dont think mr. Garrett had a credible point. He was politicizing our committee. Vonnie were you satisfied at the answer of fed chair yellen when it came to your question about the enormous failure of Risk Management at wells fargo . Congresswoman waters heres what i complimented her because she has used her influence and her power to make regulatory changes. Weve been accused of onesizefitsall and she made it very clear that she was willing to do that but she would continue to use her power to examine the management of risk. She would do whatever is increase, including the Capital Requirements on institutions. Way southd she in any you did you hear any answer their . Any a