Look at oil prices. It has been one of the keys to working out what is happening in the markets at the moment. The oil route continues. I have a wti chart here. In the far righthand corner, we see 34. 59. Arab opeca meeting of members in cairo over the weekend. The Iraqi Oil Minister talking about how we do not need to be pessimistic about oil prices. A similar message coming from the qataris. Spain faces unchartered Political Uncertainty this morning after the Prime Minister lost his majority in an inconclusive election. Thety lost a third uncertainty may see spanish bonds open lower today. Brent crude fell to its lowest level since july 2000 or amid the speculation that supplies pricesacerbate a global are down 37 this year. Iraqs oil minister says oil well bounceback because the current price is hurting reducers. He did not say when that would happen but insisted that market fundamentals are strong. Toshiba slumped the most in seven months. The comments came after the nikkei said toshiba may post a 4 billion loss. the bond market in europe debt from livable is prime to excel once again as European Central bank extensive its unprecedented bond buying. Fox has become the most senior conservative mp to say he will campaign for britain to leave the eu. He says it is time for the u. K. To recover its birthright. For me, two things have to happen. A fundamental change in britains relationship with europe and the change in the direction of the European Union itself away from ever closer to union and tort independent and looser associations of sovereign states. That is clearly not going to happen. We all have to make up our minds and the next few months. The new star wars movie has smashed ticket sales records in north america. The seventh film in the star wars ranch has collected 238 million during the weekend topping the 208 million taken in june by jurassic world. The force is strong globally. Overseas was also brought in. We will be speaking to disney chairman and ceo rob eiger at 1 00 p. M. Here on bloomberg tv. Anna i do think we have reached peak star wars pun level. Lets check in on the market action. David, talk us through what is going on. Making wayr trade is for a slightly brighter picture. David absolutely. This is how asia looks. If you look at this across early on in our session, everything was red. In the last 30 minutes, this is down to japan coming into the lows of the day. Some of these big sectors have actually turned green but that means that most of stocks are still on the way down. Roughly, we are just about flat. Slightly higher yield on the regional benchmark. Asia is looking like this. Most markets higher. Most stocks are down. Japan, 4 10 of 1 . It was actually much worse than that earlier on. In the last 30 minutes, the japanese yen started to weaken against the u. S. Dollar. Ecodata, not much to note there. Nothing much is moving the markets at this point. Asia from you see some weakness across southeast asia. Shanghai is on its way up. 2 . The hang seng, up to tens of 1 . The big story on friday was all of this confusion on the boj. There is a flattening in the yield curve. Shorter term is on the way up. As you go further along, those yields are still on the way down. That is your market grass from asia. Fairly uneventful. Flat on the regional benchmark. Anna we have an update on what recordening in the asian south korea is nominating the new finance minister. A new finance minister in south korea is the top line there. Other new appointments as well as far as ministers go. A new trade minister as well. The new finance minister being picky. I have a three day chart of the korean won. We will keep an eye on all of these key Market Metrics with that in mind. Let us move back to your. Spain faces a period of Political Uncertainty. Has the firstster shot of forming a Coalition Government but lost one third of its seats. Head out to Tom Mackenzie. In madrid. How has the Political Landscape changed in spain . Party politics. This was talked about as the most uncertain election for spain since its return to democracy in 1978. It has lived up to that billing. The party of the Prime Minister, the Popular Party has come out with the most number of seats but they have lost their majority. The surprising thing that came through was the strength of the antiausterity vote. That came in third. In promarket party coming fourth. One of the new upstarts. Many thought they would be third or even second place. Of, we go days or weeks orchestrating among the parties as they try to form a government. Partyime minister and his have been given the first shot at that but it is not clear if they will be able to do that. A couple of different scenarios, possibly the Peoples Party and the socialist could form some sort of grand coalition. We spoke to the socialist last night, he said that was ruled out. Then coming you are the possible theles party and promarket, Smaller Party and that was a combination that was favored by investors that that is looking very difficult as well because they just do not have the numbers to make it. Another option is the socialist and the other party but they need to rely on regional votes. Out, thererio comes are a lot of differences that need to be ironed out among the parties. All of this uncertainty has significant market implications. The markets were relatively sanguine heading into this election. What will they do this morning . That is the key question. Ahead asncertainty these agreements are worked out here in madrid. Of investorsr saying already overnight that the inability to put two parties together and to reach something that looks solid and stable could put nervousness into the market. Let us get more now from the chief economist. She will be with us for the first hour. Good morning. Let us start with the subject of spain because even going into this, people said it looked uncertain and we could end up with the ruling party losing a lot of seats. That happened. With them having difficulty forming a government. It looks even more difficult than people suspected. The power is not with the Prime Minister to extend that star wars on. The most interesting element of s looks that the podemo like they could be part of the arithmetic in a new cap lycian government. That was a in a new Coalition Government. They were the wildcard. Not part of the populist platform. As they get into the compromise process. Not get a government of professional unions and that means the driving cap lists, the structural reformists are no longer there. Anna is that your assumption that we will not see the pt and the socialists socialist coming together in a grand deal. It seems unlikely. Politically, it does look like the likely option because the other options are not working out in terms of the numbers. What is clear from an economist point of view is that the end result here is going to be a structural reform program. Whatever uncomfortable combination. We will not get a government of national unity. It takes a great deal of Political Capital which usually comes with the Mainstream Party and its politics. That is exactly what we have seen disintegrate in europe this year. The rise of nationalism. And fringe parties. Have come to the four. We saw it in greece, portugal, and in france. And the rise of nationalist Movement Even here in the u k in terms of popular support. The capitalists desiring to read patriot repatriot. The launch of the campaign. Finally, we have got the new inapitalists growth and high unemployment. The structural reform. From the markets skeptical reaction to the ecb announcement come money printing alone is not enough. Announcement, money printing alone is not enough. From howking of yields our markets going to react . The spanish elections producing something even more uncertain than we thought. Yields may go higher on nervousness of investors in spain. On the other hand, does it change the debate around the ecb, as it have input does it have implications there . Risk that the Political Risk is being underpriced. Because we have a combination of supply, and the European Central bank. If it was not for the ecb buyers of last resort function, the stress we put on the eu two would probably some of the smaller nations like greece. It is the lesser of two evils. Withes mean that nationalism rising and fragmentation on the rise and it being aggravated by the gdp has beens so disappointing. We are holding less returns and reward for the risk. Anna thank you very much. Here is your day ahead. German Producer Prices at 7 00 a. M. U. K. Time. And brazils details are due to be released. Chicagos federal National Activity index. Crude hits andnt , some optimism suggesting that prices are expected to rise. When could we see a rebound . More on that, coming up next. Anna welcome back, you are watching countdown. Let us bring you uptodate with some breaking news. Toshiba, the Japanese Business that makes everything from laptops to nuclear business, giving an update on their losses. Of ¥550 billion. That looks slightly higher than what had been suggested by newspaper reports. Shares are down more than 9 . This is a three day chart that shows the fall in the share prices. This statement coming at the end of the trading day. They havey is saying a ¥550 billion loss. Laos, sales of assets. All of this going back to the accounting scandal. , very diverse, is facing an uphill structure. You can see the reaction happening to the shares earlier today. Bloomberg sources say chemchina has upped its bid for the biggest pesticide maker. 472 per share on syngentas last Closing Price and about 5 higher than the previous offer. Beit goes through, it would the biggest acquisition by a chinese company. Comcast the u. S. Firm is considering an 11 for thepound in bid u. K. Broadcast business. Bhp and have been suspended by a judge following last month collapse of the dam. 60 people were killed and hundreds more left homeless in the disaster. The brazilian government is seeking 5 billion in damages. Westfield has sold five Shopping Mall in the u. S. Sunday hyundai is poised to to sell less than analysts said an unlikely demand from china continues to weaken. Head to the bloomberg terminal for more on the stories. Anna brent group has fallen to more than an decade. The drop comes amid speculations that era producers will exacerbate the supply glut. Elliott joins us now. Arab producers meeting in cairo did not do much to suggest that prices were set to recover. They said quite a lot. The qat we had it from ari oil minister that we should not be too pessimistic. Actionse one thing and are quite another and there are not any actions being taken by middle east producers. Era producers met in cairo over the weekend. Nothing is suggesting that there is any plan to reduce output to try to reduce the supply glut that is out there and thereby tried to help prices rise. They are at their lowest level in 11 years. There is some indication that some in the middle east might be throwing in the towel when it comes to trying to get prices to rise. The minister also said they were focused on cutting costs to it and not to leave themselves. Rather than hoping for higher prices at the sales and. Anna in the u. S. , producers have been adding to the supply got supply glut their. There. Elliott they were trying to shake out higher cost to producers. To suggestvidence that was working. There was a peak of something diploide than 1500 rigs in the United States and that declined precipitously along with oil prices. Later data showed that in the u. S. , they are adding more rigs. Rigs in theover 540 United States. Coupled with that, the u. S. Stockpiles are of other fiveyear average. On friday, the u. S. Lifting its 40 year moratorium on oil exports. Throw that all in together and you have the ingredients to suggest that there is no reason to believe that oil prices will be rising anytime soon. They may even decline further as that supply glut gets bigger. Anna thank you. Opecs refusal to cut Oil Production and curb the global oversupply has been to squeeze rivals. Russia is not succumbing. The second Largest Oil Producer and is pumping at near record levels. No one really saw rush up behaving in the way that russia has behaved in 2050. No one expected them to increase output. What does that tell us about 2016 . Analysts forecasting russian production would fall this year not because of any decision being taken by the russian government but because the industry is very heavily reliant asia and on fields in they felt that the industry would not be able to invest. It is not happened. We have had new post soviet records in four much of this year. It is noticeable that opinions for 2016 are changing. Two months ago, the International Energy agency was forecasting russian production would fall by close to 100,000 barrels per day. Last month, they forecasted that it would remain flat. Two weeks ago, forecast that russian output would grow in 2016 by a small amount but it is a big change room. Big players in the oil market trying to play for oil shares. That was a big theme in 2015. The glut was a result. Does anything change that dynamic as we go into next year . Observe striking to that oil has been supplyside structure story. It is a market story. Expectations are that bined with Dollar Strength it depresses oil such as oversupply in emerging markets in terms of industrial capacity and deflationary pressures keeping the ecb money pumping. Is that through the positive reaction function, week oil becomes its own driver of deflationary expectation. About thisof fear location of Market Pricing way beyond oil. Anna it does seem to permeate almost every conversation. When you look at what opec has been doing, would you say that their strategy of playing for market share has failed when you see what russia has been doing and the u. S. . Ian it is an easy market to make. Here we are, more than a year on, prices down at 11 year lows. That does not seem like success. One has to look at what the alternative was. Particularly, what the alternative was for saudi arabia and the other arab Oil Producers. As they saw it, the only alternative was to cut production to maintain prices which would have created the another bigto allow year of growth in u. S. Production. They get cut further and further. We have to remember that the that for the last three years, u. S. Reduction was growing at over a Million Barrels a day. Next, Money Managers are having a hard time picking winners. We will take you through why. That is coming up next. Anna welcome back, this is countdown. Let us get the bloomberg first word. Toshiba has forecast a record net loss of 4. 5 billion. The restructuring of its Lifestyle Division affecting 6800 jobs. Shares slumped ahead of that and arement are and down about 60 for the year. Spain faces and uncertainty in its politics. The Prime Minister lost a third of its lawmakers even at it as it be out the socialist. The result may see Spanish Government bonds open lower today. Brent crude has fallen to its est levels since july 2004 a record glut as they continue to fight for market share. Prices are down 30 already 7 this year. Directs oil minister has said oil will bounce back because the current prices are hurting current producers. He did not say when that would happen but insists that market fundamentals are strong. Money managers think diving is the way to go in 2060. Pimco and prudential say debt from the peripheral, less credit worthy countries like portugal and greece. They are timed to excel once again. As the ecb extends its unprecedented want to buy. Fox has become the was conservative mp to say that he will campaign for the u. K. To leave the eu. It is time for the u. K. To recover its birthright. A fundamental change and britains relationship with the European Union. More importantly, the change in the direction for the European Union itself away from the concept of ever closing union and towards a looser association of sovereign states. That is clearly not going to happen. We all have to make up our own minds in the next few months. For me, it is clear the direction i think we should take as a country. The new star wars movie has smashed ticket sales records in north america. The seventh film in the Star Wars Franchise collected 238 million during the weekend theing the top topping 208 Million Dollars taken in june by jurassic world. Further 279 million was brought in from overseas, and that was without china. We will be speaking to bob iger at 1 00 p. M. London time here on bloomberg tv. Story onead in that the terminal that there are at least come up or there could be five further star wars films already in the mix. Amazing. No escape. Me to see. E for i have not seen a single one yet. Anna you have some work to do. The pacifick at index at the moment, it is pretty flat. That is a benchmark for asia. You have to deal with the. Ational benchmark indexes you see the chinese tax are of the shanghai composite is up 1. 8 , the hang seng is up 3 10 of 1 . The shanghai composite has weather to a threeweek high. Investors are betting that the government will accelerate reform of state owned enterprises. Youre seeing japanese stocks trading lower. The nikkei is down by 4 10 of 1 . Cancer 1 . T buy for a stronger yen. To s