Reason i think they would say they would sign such a bill that would weaken a critical component of Financial System reform aimed at reducing taxpayer risk. The senate could pass a bill as soon as today. Are we at bottom . Not yet. Oil closing below 60 a barrel for the First Time Since july 2009. This morning it dipped to 58. 80 a barrel. Theres speculation opecs biggest members will defend market share. West texas intermediate futures fell in new york. They have plunged 10 this week. Oil headed for its 10th weekly drop sense october after opec decided against reducing output. The director of the c. I. A. Made a rare move. He held a press conference yesterday to answer questions about the senate interrogation report. John beenen said it is unknowable whether Harsh Interrogation Tactics used oner it ror suspects used meaningful results. He also described soul searching in the aftermath of the 9 11 terror attacks. The Previous Administration faced agonizing choices about how to pursue al qaeda and prevent additional terrorist attacks against our country, while facing fears of further attacks and carrying out the responsibility to prevent more catastrophic loss of life. There were no easy answers. Yesterday marked beenens first public appearance since the report was released earlier this week. Yet another legal challenge for uber. Today a paris judge ruled whether to block the companys uber pop service. The service lets users gets rides with private cars. The startup is also engaged in legal battles in los angeles, San Francisco, spain, brazil and the netherlands. A french court will decide whether it constitutes unfair competition to taxis and other driver rentals. Ubers Office Services are not at risk. Yeah, i used uber last night. The San Francisco bay area, the storm out there is one of the biggest in decades. The National Weather service expects a slowmoving system to dump eight inches of rain on some parts of northern california. The weather left more than a quarter million homes and businesses, including selected parts of downtown San Francisco without power. It also produced widespread flash flooding, closed schools, and cancelled flights. Wet weather will continue today with the system moving slowly through central and southern alifornia. Let me run through a data check. It is amazing what were seeing. Futures, all you need to know, negative 14 on futures with 2 12 yield crunches to right now. Other currencies have trouble. Nymex crude is interesting. I saw that last night during a bloomberg panel. On to the next screen, which really begins to explain the tension. Were back to average on the v. I. X. From 12 to 20. Further curve flattening seen by 154 basis points, ruble causes major putin angst. 55 was a big deal. Weve blown out almost to 58 on ruble. Weaker russian ruble, 13 . 10 overyield there on our ruble bond, dollar index just to show that this is really discrete. There are discrete things going on. You thought the period between thanksgiving and christmas was going to be quiet. Gone. Does Vladimir Putin feel angst . Its going to be thrown in his face. My experience is, i dont care, i dont care, i dont care, guess what, he cares. Ok, over to the terminal. This shows the rate of change of the benchmark for angst, which is a japanese 10year. Heres the central bank ugliness in 2003. Forget about that. This is the acceleration in japan which, of course, filters through everything else, including the german 30year bond yesterday. Absolutely. Even with that last leg lower, moodys has declared japan is less creditworthy than a year ago, but japanese investors, anyone who is buying japanese bonds dont agree. Almost unraveling. This will be a major theme, but through the weekend of reading and into next week. It was something to see oil roll over late yesterday. The opening trading here with a 58 on west texas intermediate. The collapse in oil, the plunging Interest Rates are signals of looming crisis. They also signal that once again Gary Schilling is right. Schilling, without question, has the call of economics of the last two decades, a trend in past deflation. Theyre like little dolls where you stick pins in a Gary Schilling doll. Thats how much hes disliked. He joins us. We dragged along Shannon Oneill do the end, come on. I want to talk now, wait a minute, tom. Look at that chart of the 10year. What does that tell you . What it tells you its a screaming bye when yield is over 2 versus the one, which is below 1 , and the dollar is rising against the yen. You reaffirmed this morning, bond prices up, yields low, and the 10year yield goes to 2 . Its going to 1 . 1. 00 . 1 . Ok. I want to talk to dr. Oneill, ok. We ignored brendan and i were talking about this we have ignored venezuela. Theres putin and this and that. How critical is this weekend for the nation of venezuela . Well, venezuela has really entered a downward spiral. Weve seen the economy is failing. The Public Opinion polls for the president have been falling. Weve seen a huge spread in the Real Exchange rate and the black Market Exchange rate. The Real Exchange rate, theres two of them, six and 10. The black market topped 180. The economy really, in many ways, is in freefall. Which institution bails them out . Is cuba going to come to the rescue . Theyve been rescuing cuba. Yeah. I mean, who bails out venezuela . Well, theyre sending their foreign minister theyve been talking to the chinese. Theyve already taken 50 billion from the chinese in loans. Its hard to imagine the chinese would double down on that bet right now. Theyve really maxed out all their proverbial credit. And the chinese arent desperate until need of the one resource venezuela has to offer. They need less of that. They can bore free throw argentina. There you go. Get in line. How prepared is the u. S. For an economic and humanitarian crisis in venezuela . You know, the United States has been talking with many of venezuelas neighbors, brazil and colombia, trying to bring together a group. The neighbors of venezuela have been meeting together in a Regional Organization trying to work out an agreement, or at least talks between the opposition and the current government, but it hasnt been going well. The trouble in mexico in the 1980s and 1990s raid on ited out through latin america. Who is susceptible to a collapse . The interesting thing, is under the last 10plus years, venezuelas economy has just eroded. Its just oil. Who is it going to affect . It will affect those people that they import from. 80 behalf they consume comes from other countries, some from the United States, from colombia and the like. But this isnt going to, i dont believe, really set off an International Crisis in the way that some of the other countries, like mexico, thats so tied to the United States, that would be a huge effect in their economy went down. Both venezuela collapses in their oil production, down 30 already. Suppose its really taken out. Is that a big factor in the global . They have supposedly the worlds biggest resefrpbls they do, but theyre producing up to 2. 1 Million Barrels a day. Its not going to change oil market prices significantly. Also, were seeing so much other production coming up. The challenge for venezuela is, depending on which analyst you believe, their breakeven price is probably 70 to 80 a barrel. Even if theyre Still Producing was that all in . Margin didnt count when you get in a price car. Right, but still, its quite high. Can brendan ask a question . Im relaxing. Im like looking at schilling, drinking my coffee. Im having a good coffee. Weve been talking about. This you look at norway having to make moves. Theres this idea when the tide goes out, you see whos not wearing shorts. Mexico, norway, theyre actually having problems. Economy that is we thought were diversified. Is venezuela the nakedest in that metaphor . I think it is, because its not diversified. You look at their exports in the 1990s, and about 25 , 30 more things. Today its less than 4 . They make nothing besides oil today. Have they bony a path . Could we rewrite the last 10 years and have a different venezuela that could have survived this . We could have, but what youve seen under chavez and now maduro is really a hollowing out of the rest of the economy. Whether thats through regulation, bureaucracy, price control, just businesses, youve seen the Agricultural Sector decline, Manufacturing Sector decline. Even pg e pulled out because they couldnt produce clorox anymore with any sort of profit. Theyve tried to stifle the opposition. They wrapped that up. Is there any likelihood of a change of government, violent or otherwise . Well, theres a possibility of a change of government. The question is, would it be violent or otherwise . As things have gone poorly for this government, theyve become more and more authoritarian. Several months ago, they threw one of the opposition leaders in jail. Last week they came out against another one, accusing her of treason. I want to switch to the markets. How big is this moment that were seeing, the acceleration of the last month that weve seen the market . What does it mean for you . When the fed got out of the queque business, you had that support for a lot of markets removed. Youre going to blame yellen . Oh, yeah, definitely. They were moving together, and hedge funds were going nowhere, and managed money was going nowhere. I think thats the first thing. Is z oil print, does that change the december 17 fed meeting . I think it probably i think it probably does. I think it pushes out this whole thing. I dont think theyre going to tighten for years anyway. Well ark loft themes to talk about. Were also going to talk about disruption. Brendan is moaning and groaning right now, but our twitter question of the day, despite all the headlines, is uber winning . Uber claims its disrupted, but is it winning . Its facing lawsuits in San Francisco, l. A. Im hostile to the word disruption. It is only used by people i loathe. Despite headlines, is uber winning . Tweet us, bsurveillance. Good morning, everyone. Square kelly, i dont know, if youre going to charge me for my baggage at southwest airlines. For a while there, they were the only airline left standing. An update from gary kelly, 8 30 this morning, in the loop with betty liu. This is sursur, a tumultuous friday. Right now, scarlet fu looks to washington. The house finally approved the 1. 1 trillion spending bill, but not without plenty of lastminute drama. Peter cook joins us from washington. We talk about how politics makes for strange bedfellows, but nancy pelosi opposing the white house. What happened . It gets even stranger than that. You have nancy pelosi, you have ted cruz, Michele Bachmann on one side, and then the president and jamie dimon on the other side. Thats who was involved yesterday in all the lobbying. At the end of the day, it was the speaker, the president , and jamie dimon who prevailed. That bill passing around 9 30 last night after about a sevenhour delay in the house as they tried to rally votes, twist some arms. They were successful. Now its over in the senate side. They got two days now to deal with it in the senate. We examine a little more drama before this is all over, but at the end of the day, this is in all likelihood a done deal. Peter cook, there was a great quote from max een watters. I know the president was whipping the bill, i know that jamie dimon was whipping as well. Thats an odd combination. Who is actually admittedly for this provision that would take out a piece of doddfrank . Whos saying, yeah, i like it, i voted for it, its a good idea . Well, there are actual al lot of people who voted for it, not just last night, but in the past, particularly in the house f representatives. You had a provision when this first came up out of a committee. Their argument is this was never a good idea in the first place, that even ben bernanke at the time and that barney frank at that time wasnt thrilled with this particular provision, which came in late n the doddfrank conversation. But perhaps the hue and cry may be more painful for wall street. Not month ago, that is whats happening. The story here is that the Democratic Caucus is pulling itself apart. Dont oversell the Republican Congress and its ability to rip itself apart as well. Youve got a lot of conservative republicans very upset with how this played out, and really, if they dont see a real effort by the Republican Leadership to go after the immigration actions bit president in february, they are going to be hot and theyre going to make John Boehners life much more difficult. But youre right. What we saw the tensions in the Democratic Party, the new wrinkle here, nancy pelosi reasserted herself. I know who youre not mentioning. What did Hillary Clinton learn last night . She learned last night that wall street is still a big issue. Her ties to wall street will be front and center, and also that she the liberal wing of the party wants to be heard and she needs to be careful how she reaches out to them. We could have very tough votes politically for republicans and democrats in the senate as this thing winds down. What did jeb bush, Chris Christie and the rest of the g. O. P. Field learn . Well, they learned that the republicans, if need be, can govern, even under difficult circumstances t. Is a win for john beaner no matter how long it took that the Establishment Republicans can still succeed, and next year, arguably, its going to be easier for baner and mcconnell, despite conservatives, theyve got more numbers. John boehner will next year. Its going to be easier to get things done. Of course, hes got a president standing in the way. But the two chambers working together, republicans cant wait for that to happen in january. Peter cook, thanks. Futures negative, 13. Dow futures negative, 120. Coming up, m a, how does it shift as we go to 2015 . Michael wolf among one of our guests next hour on wall street in the time of market turbulence. Good morning, everyone, bloomberg surveillance. Oil is 59 a barrel. Futures negative. Dow futures negative. Well cover the markets through the morning here on bloomberg television. Lets get the morning must read. Heres brendan greeley. This is dead serious, go. I was deeply moved by something i read in Bloomberg View this morning. The english pub is disappearing. Mark gilbert from Bloomberg View writes the threats to pubs are many. Cheaper supermarket booze keeps cashstrapped drinkers at home. The u. K. Property market makes anything with four walls and a roof a lucrative apartment conversion opportunity. My favorite detail in this story, did you know that the u. K. Has a Community Pubs minister. I missed my calling. But its a really concern. The pub is so central to british life that, if we lose them to property values, that a central part of english drinkingness must be lost. Give us wisdom. The only pub ive ever been is in the one in the basement of what are rods. I was looking this morning at the english pubs i used to go to. I used to work in st. James. The first one the red line, we have pictures, we have some pictures of the red line where did you. Heres the deal with the red line. People used to go there right after work, and i had to learn that once you go there, you may no longer eat. Get your eating done before you go to the pub. Thats cheating if you eat. I kept on saying, are we going to go out, get something to eat . No, no, no, you can get a bag of crisps if you want. I went looking for golden lion around the corner and perfectly, appropriate for this story, the golden lion has been. Old and turned into a dealer that is what is happening. Property values can no longer sustain simple drinking. Is that like an anchor in a mall . Youre saying that the pub is central to the community. Perhaps, yes. A little bit, yes, a lot like the macys in the mall. But i mean, one thing that scared me, the first time i went to a pub, it was summer. Everybody was outside. I thought, why are we outside drinking . Then i realized theres so few beautiful days in england. They did anything they could. This is aquive lent to the pizza parlor in new avon, isnt it . The english pub is like the people place in new haven. Maybe someone can build an app for it where you can gather virtually. I dont know. I think sometimes we get nostalgic for things that were not good to begin with. Plenty of untoward vomiting behavior happens. Theres plenty of overdrinking that i dont know thats necessarily good for sofmente well, some pubs have been upgraded. Theyve been updated to gastro pubs. Scar, fancy youre a huge fan of hub grubb. I am. Ladies room in pubs are about going with im going admit to you its not something i regularly check for. All right, weve got what you know i mean. Weve got more coming up on bloomberg surveillance. Coming up, spillover from falling oil prices. The risks to mexico and the u. S. From cheap crude, its not good news. Good morning, everyone. Amazing markets this morning. Futures negative, 13. Dow futures negative. Yen comes in, the global flight to quality, 118. 30 on japanese yen. We started the week with a 121 look there. Stronger yen through the week. Lets get it a strong set of top headlines am heres scarlet fu. All right, in washington, the senate will take up that 1. 1 trillion spending bill today. It passed late yesterday in the house despite opposition from both parties. House Minority Leader Nancy Pelosi among those angry over a banking provision that