Dow still 25 points shy of those levels. Six Straight Days six great sessions with the s p 500 climbing following last weeks plunge of 1 . It has come back, and then some from those levels. One of the things limiting what would be bigger gains is the price of oil, following the opec ,eeting with oil down 4. 2 below 50 a barrel once again as opec extended the production cuts but not for a full year, rather nine months. There was optimism that had been percolating that it would be longer. Oil shares today, they pulled back with many drillers and Oil Services Companies taking hits, transocean and marathon on this list. Stocks are higher today, not lower or being dragged down by these energy shares. Consumer discretionary a strong group, best buy is trading at a record, up 22 in todays session after the Company Comparable sales unexpectedly rose in part because of mario and the sales of the Nintendo Switch with Sears Holdings trading higher after the Company Reported its First Quarterly profit in two years, even as sales plunged as sears and kmart. Pvh, the clothing manufacturer beating estimates for earnings and upgraded over at j. P. Morgan. This is a big part of the reason the sox are higher along with gains and other types of Consumer Discretionary stocks like amazon and netflix come also trading at records. Something going on in the bond market, highlighted line our rate team, the 10 year rate even rate and white, now off to ,ercent from where it 2 inflation target of the fed 2 also and the 10 year yield in blue still above 2 . What you break even rate implies is that, despite the fed potentially raising rates a couple of more times this year, investors are not optimistic that we will see inflation pick up to any high degree, or treasury yields necessarily take up to a high degree. The president continued his travel today with a visit to the brandnew nato headquarters in brussels. In the u. S. , his agenda taste new challenges. Our global team of reporters have been covering the action and joining us is the editor for bloomberg news. Brussels. N in the president wrapped up a working dinner early, 5 45 p. M. At nato and he did not shy away from the topic of burden sharing within the alliance. Is grave trump concern the security concerns are the reason i have been very direct with secretary stoltenberg and members of the alliance in saying that nato members must finally contribute their fair share and meet their financial obligations. Nations are member still not paying what they should be paying at what they are supposed to be paying for their defense. A battle we know well. France and germany have not made any secret of their concerns about upgrading natos role in the coalition. After critical issues, could they find Common Ground . [laughter] on the antiterrorism, i think they found Common Ground but on l for increased defense spending, the eu pushing back on that to a certain degree. During the campaign, donald trump was about this already and in the eus mind, they have responded already, a commitment to giving towards the 2 target he is talking about and they think they have made strides. They are not there yet and have a long way to go but at least they are trying to tackle the situation. They were hoping for a message of unity from donald trump at this nato summit and they got that to a certain degree in terms of the Counterterrorism Measures and nato is more on board with the antiisis program. They are disappointed they got harangued about the contributions to nato. Angela merkel has talked about smarter spending. I want to talk about flashpoints. The British Press making a great deal about the Intelligence Leaks regarding the manchester attack. Some reports suggest that there is no longer intelligence sharing going on between the u. K. Government and the United States administration. What are you hearing and do you know if they talked about that behind the scenes . Theresa may, the u. K. Prime minister, she came here with the intention of button holing donald trump about that issue. Nato in general is saying that it is a bilateral issue, something that has to be worked out between the u. K. And the u. S. At the same time, part of this new ramped up efforts of counterterrorism includes enhanced intelligence sharing capabilities. We will have to work this out and figure out some way that we are not irritating each other in sharing our intelligence. Scarlet thank you so much for giving us your perspective. In washington, the Republican Health care bill hitting another the Congressional Budget Office estimates the house passed bill would reduce the deficit by 32 billion less than a previous version and would leave 23 million americans not insured. Here is what a member of the House Freedom caucus told us about this cbo analysis. I could care less about what cbo says, they could not find their rear end with both hands. It is not a good count and they have never given us good scores. Scarlet lets go to the white house. Not a lot of love for the cbo from that congressman, yet, when you look at the senate, they needed the cbo score for pragmatic reasons. That is right, needed the cbo score to reach a certain target to comply with senate rules. It did meet that target. But several senators have seen this number, 23 Million People who will not have insurance under this program and that has scared some of them off as they believe this bill from the house is a dead on arrival in the senate and they will try to craft a plan to cover more people and not take as many people off insurance and maybe funds medicated more than this house bill. There are several republican senators not happy with the bill. The market in the senate is so tight, only 52 republicans, they can only afford to lose two votes at already a handful of Senate Republicans speaking out against the house bill after the cbo score. The senate will take its time to craft a bill that will get support from moderates and conservatives in the party, something that will happen over the next few months. Scarlet Mitch Mcconnell said it would be a challenge to get to 52 votes. Breaking news, headlines that in u. S. Appeals court, the Fourth Circuit court has upheld a block on the trump travel ban. Give us more context, why is this significant and what does it mean for the next set that step step . The latest time the courts have blocked the travel ban, trump started off implementing a travel ban that was struck by the courts and he rescinded the First Executive order and crafted a new order that would comply with the courts which has been scrubbed down by multiple courts. The president has been frustrated in his efforts to block travel from certain countries in the middle east, saying that was an option for him to block terrorists from coming into the country. The courts have disagreed and said that this is not complying with the constitution and democrats who have attacked this band have called it a muslim man , but drilling his Campaign Promise last year where he said that he wanted a total and complete shutdown of muslims. It looks like this band will be tied up in the courts for the foreseeable future. Great to get your perspective. Up, act 2 30 p. M. Eastern, we speak to democratic senator ron wyden of oregon, the Ranking Member of the Senate Finance committee. A lot to pick up over the last few days. His takewe want to get on tax reform because Steven Mnuchin has been testifying on capitol hill and he coined the phrase, the Steven Mnuchin rule of not imposing tax cuts not giving tax cuts to the wealthy. How is he holding up against that promise . Scarlet lets get to the first word news. A spokesman for an antiterror force in libya says the suspect in the Manchester Bombing attack phones his mother hours before the incident and said, forgive me. They said his mother told interrogators person left libya for england only four days before the bombing and called her on the same day of the attack. His brother and father were arrested in tripoli. Home searches in the city of manchester have crossed to the u. K. , revealing important clues as the fastmoving investigation into the concert bombing continues. According to Manchester Police chief who also says the eight arrests made so far are significant. U. S. Intelligence may now have to guarantee there will be no more leaks to the media after photographs detailing the bomb and the name of the suspect were First Published in the u. S. President trump has asked the department of justice to in his words launch a complete review. Queen elizabeth poll children injured in the bombing that the attack was dreadful and wicked. She visited royal manchester Childrens Hospital to meet victims, families, and medical staff, 12 children under the age of 16 were taken to the hospital following the monday attack at manchester arena. The republican candidate in todays nationally watched special election for montanas one congressional seat has been charged with misdemeanor assault for allegedly grabbing a reporter by the neck and throwing him to the ground. He has tried to align himself with president trump, defended himself as the charge was announced wednesday, saying the reporter of the Guardian Newspaper was being aggressive and grabbed him by the wrist. Their exchange at his campaign office. Paul ryan called him to apologize. Democratic leader at the policy all the incident outrageous nancy pelosi called the incident outrageous. This person who wants to be the one representative from montana be a want to be donald trump, language like that, partially treating people partially treating people. We have got to say, behave. Three of montanas biggest newspapers pulled their endorsement of him but did not endorse an opponent. The president and the french president engaging in handtohand combat in brussels. At the first meeting ahead of the nato summit, both men a lot can for what seemed like an eternity before the president seemed ready to pull away and the french president was not an held on longer. Donald trump has called handchecks barbaric in the past handshakes barbaric in the past. Global news 24 hours a day, powered by more than 2600 journalist and analysts in more than 120 countries. I am Mark Crumpton. This is bloomberg. Bestwyden scarlet buy jumped 21 , the most since 2001 on an unexpected gain of sales, which famous twins are behind the retailers revival. From new york, this is bloomberg. Scarlet return to earnings ofs, yesterday shares best buy surging today after they reported a surprise gain in sales, the First Quarter comparable sales one part 6 up 1. 6 up. Their earnings top estimates. What is behind the Strong Performance . We are joined by nick turner of bloomberg news. The Nintendo Switch plated big role, not just for best buy but also target but in best buys case, it helped lift the numbers. Best buy has been looking for electronic product, always the iphone and other parts of done well over time but this is one of those breakout hits that has benefited them. They have been waiting for that for a while. Scarlet is it sustainable for best buy because this is a one fad and people move along. You hope they come along often enough, things like fitbit and gopro have been sellers for a little while and the faded. The ceo said he wants to focus on International Growth and the digital business. In light of what we have seen from amazon, we have walmart with their jet. Com purchase. Given the tensions between those companies and the former employees, if you put forward towards christmas, you could have a pricing battle and does best buy get squished in the middle . It was a risk coming ecommerce up 23 last quarter. The walmart, 63 . Used costcutting as a big part of their ecommerce strategy for the last few years. It is a tough business still, i having a they think brickandmortar performance presence, with people wanting equipment set up. Scarlet very aggressive on costcutting when he first took over best buy, their ceo, is that still in progress . The easy cuts are probably left i cannot imagine much. An obvious thing to cut. He will have to have a sharp eye and terminals terms of expenses Going Forward but i think he has done most of the hard work and they need to make sure the business is operating the way it should. Scarlet quick and responsive. Thank you, best buy shares at a record high. Julia as oil prices we hear from a Top Energy Investor about how he views investments through next year. From new york, this is bloomberg. Julia this is Bloomberg Markets, i julia chatterley. Scarlet i am scarlet fu. How are Oil Companies making money in this current price range . Alix steel earlier spoke with the head of Energy Assets at kkr about he how the seas Oil Investment through next year. Oil companies are trying to make money and they have money to spend. They look at the forward curve for signals for when to invest their capital. They are a Growth Business and they will keep investing until they run out of money. When you look at the forward curve and prices, 50, 52, what level would stop that kind of shale production and oil rate increase . The Oil Companies think that they can make money at 50. They will keep drilling at this curve. I know you are well aware, there has been a lot of money invested in land, particularly the Permian Basin and the number is 40 billion in two years and you cannot spend 40 billion on an asset that does not produce cash flow and let it sit there. How long does that story play out . 40 billion, yes, but maybe not in the next nine months if the curve stays around 50. The 40 billion was spent that the idea that he gave them an opportunity to spend more once they acquired it and the most important thing to realize is that the next year is probably not going to change a lot of mines. Minds. Drilling plans are out there and they will continue to drill. Your best case for 2018 . Russia and saudi arabia will want to get back their market , what is your best case for 2018 for that . We are longterm investors and we do not focus as much on 0172018l happen in 2 but we think opec is looking for stability. We are seeing that in the market with oil relatively stable, one of the reasons we have invested. Relative stability unless we see supply shock. Go below 40rice or stay in the 50, 55 range . We have two factors, one is the industry is a depleting resource. The installed oil base is declining every day and we have to spend capital to replace that production. Ishin a range, i think it reasonable to assume we can stay where we are but will depend on how quickly u. S. Shale can increase. Also, does opec cut more . They have had a history of cutting a fair amount of production but we have not talked about that much recently, opec has been destabilizing force over a long time and they could do more. 1. 2 Million Barrels per day bucket. P in the why are you making the choice of not going in the permian . We have talked about investing and 2018, we are investing and expect to continue actively investing but doing something very different with our capital, buying existing production. What we see in the industry today is a gimmick in the United States and north america in particular where companies are continuing to focus on growth. That growth comes from lying land, in particular, in the permian and investing capital in really to bring more production online at to finance that able go to Capital Markets which have been receptive in 2015 and 2016 but slow down this year. Secondly, they sell assets and they sell assets they feel are lower growth to invest in assets that are higher growth. That is good for us, we like acquiring assets that are being sold today that have current production, it gives us a longterm approach to the business. Price or oil curve that makes you say, i do not want to put my money in oil right now . Two things we focus on, volatility, it is really hard to invest when things are volatile because we are in the partnership business. We work with other companies to develop or acquire assets. Those companies have to be willing to transact with us. If prices move around a lot, it is hard to us for us to invest but when there is stability, we can invest in fed production and become really good risk managers in this industry and one of the things we focus on. Longterm risk management. We are happy to invest, generally at any price, as long as we feel good around the cycle. We follow two things in a cycle come industry fundamentals and Capital Markets fundamentals. Oath of those are working for us right now. Scarlet that was the head of k kr energy speaking with alix steel and houston. Julia coming up, we speak to ron wyden of oregon, the raking member of the Senate Finance committee. Stay with us, this is bloomberg. Planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i ne