Quarter progressed really hit the company among all these retail concerns. Joe an ugly day all around, Consumer Staples losing, Consumer Discretionary energy being one area that was positive. In looking for companies or sectors that did not decline, take a look at that xle. Oil and Gas Companies make up the only sector that did not drop. This was along with oil prices. Also, Transportation Needs seemed to decline. Shipper reaffirmed its guidance, but Rising Oil Prices ending t demand, improve their oil barge business. Joe in the Government Bond arena, weve been watching a spread between the two year and year at its ten flattest level since late 2007. 210 spreadsheet continuing to flatten out today. Data, thehat cpi housing start pushing the dollar firmer against the yen. Perhaps a sign that investors are cutting back on negativity surrounding the dollar. Joe on the commodity front, we mentioned Energy Stocks. One of thing down today, milk prices. This is good news if you like serial, down to its lowest level since 2010. There is your household deflation. On the flipside, oil having a positive day. We mentioned Energy Stocks in the green. Uppite that selloff, crude 1. 7 on the day. Scarlet those are todays market minutes, lets take a deep dive into the bloomberg. You can see the function at the bottom of the screen. You have something on inflation . Joe earlier today we got that latest cpi report. A bunch of different ways you can look at the latest inflation data. The white line, cpi services, exenergy. We look at the services, which of been firmer. Down yearoveryear, but up 3 . Atdline cpa, the red line the bottom jumping up 1. 1 yearoveryear. Housing, rent down a bit. That is that green line, try to strip out the noise. Ever so slightly from previous months. Not a solid direction one way or the other, but i generally work. Does not look blazing hot just yet. Scarlet not a game changer, but things are moving in the right direction. Joe these measures have been up for a wild. Scarlet were looking at treasuries, the white line tracks Foreign Holdings in the u. S. Treasury. But the usual suspects china and japan. They did not exactly drive the surge. The countries reflected custodial holdings for investors. Since november you see it increase from cayman islands, the u. K. , luxembourg. Institutional investors dominate these increased holdings. This accumulation could turn to a net selling more quickly if Foreign Holdings are maintained by these official institutions. They could easily exit, as well. The paltry flipside, 1. 7 looks juicy compared to what these guys could get anywhere else. Maybe it is an attractive investment tool. Scarlet get excited. A Pharmaceutical Company exploring their smaller cosmetic and pharmaceutical aspects. The canadian drugmaker scrambling to raise cash and , a Dermatology Company they acquired in 2013, and another that treats advanced Prostate Cancer purchased last year. Consider selling its businesses to reduce a debt load. We will hear more from you as we get more information. But it had a bit of an effect in our afterhours trading. Is, how much is real if they cant keep hiking prices aggressively . They have debt, so if they can sell assets, perhaps it is a good time. Scarlet they cant exactly borrow more. Broader, back to the natural picture and talk of inflation. We have the inflation expert michael ashton. For joining us, what did you see in the cpi report . Is it starting to build, or will he get to the feds 2 target . Michael the core cpi number was seven or eightut in the month last year. Had ack mr. , we have this year, we had high numbers in february and march. The trend is higher, as you pointed out. Scarlet in the fed points of different numbers, as you did earlier. I was talking with michael at j. P. The chief morgan, he said Energy Prices have an impact on these expectations. But food prices have a larger influence. I cant help recalling your chart on milk prices. Do you put much stock in them, do you think these are significant readings . Michael no, i really dont think so. The way individual forms Inflation Expectations is looking at the prices they see every day, and they see a lot of. They look at gasoline prices, they look at gasoline prices, milk prices. And those form a fairly small part of the overall consumption basket. Things like used cars and trucks, rents, or large pieces of their consumption. That is because they dont look at them all the time. Scarlet i like that you said that they are adaptive, mirroring recent trends. Will we see wages start to move up a little . And this latest cpi update the ratio of the last few months mean we will see in blood Inflation Expectations climb more as a result . Michael we are seeing gasoline prices go up in the past few months. The largest category was motor fuel, categorized at 120 . They have gone up quite a bit. That feeds directly into peoples perception of what is happening. Disproportionate amounts compared to what they actually consume. Joe looking ahead for this year, the market has virtually no chance of a rate hike in june, about 50 , if any at all. If you see inflation progressing, given that the fed is so focused on it, you think that it will end up moving this year . Michael i think the fed will tighten once or twice. Could get three tightenings this year. I dont think it is because of inflation. There are fed officials, governors who care about top, the, but at the chair seems to care much more about growth and projections of growth than she cares about inflation. It has to get pretty bad before that would happen. Scarlet to your point, joe, the expectations or also a rate increase on the bloomberg are now 29 for july, whereas yesterday, they were only at 19 . Which is perhaps why we saw the selloff. Scarlet when it comes to investors, how would you position for this uptick in inflation, and the possibility the fed may decide to move later this year . Are two parts of the investors basket, the high risk side and the low risk side. On a high risk side of things where you have equities versus commodities, you are now starting to see a sea change where things have been going up, and it is time for it to go the other way. On the short end of the risk spectrum, we are at levels of Inflation Expectations embedded in the treasury bonds, where if you owe nominal treasury bonds, there is no reason not to subsidize. Enduringael ashton of assets, and author of what is wrong with money . Valeant exploring the sale of some of its smaller pharmaceutical and cosmetic assets. At him as a Bloomberg News who works the story joins us now with more. This can be a huge surprise that they were looking to make some disposals. Ed the big one was bausch lomb, that could get sold back. They said they would hang on to that. These are much, much smaller things. How significant is the debt burden for them. How much concern is there at the company about their ability to service their debt, and how much do they need . Ed weve seen the stock trade down as a as possible for months now. They are struggling, obviously. The strategy has been shown in this case to be very unsuccessful. But the debt is a bigger issue here, and that is the reason the company is under so much pressure. They have an enormous debt burden, and this could in theory be a micro company at some point in the future. They do need to pay down the debt, they said they would be very focused on it. They has said it will be a priority. There and the process of identifying assets that they can potentially sell to reduce that. Theywhat we understand, are under consideration. He was you mentioned known for building of the company through acquisitions. What evidence do we have that he is as good of disposing of assets as he is of acquiring them . At not very good so far. Choice. He has no they have to dispose of some assets. There are some things that they probably do not want to let go of, but they just need to pay down the debt. At the moment, he is still very new, so no decisions have been made. But he is also reviewing different things, and these assets in the portfolio are the ones theyre focused on right now. You think if this deal happens that this is the beginning, or could there be further active sales down the road . Could this stabilize things and reduce pressure . At i think this is just the beginning. We estimated 1 billion, that goes some little small way to reducing their debt. They need to change the way they do things radically. Coming up, oil markets sending mixed signals. Pricesand nigeria driving it. We will get answers from Energy ExpertPhil Verleger. Mark i am mark crumpton, lets get the first word news this afternoon. Define the white house in saudi arabia, the u. S. Senate has passed legislation to allow 9 11 victims and their families to sue other countries for their role in the attacks. White House Press Secretary josh earnest said today it is difficult to see the president signing that bill. This bill does potentially open up the United States to a range of unintended consequences, it risks our national security, and makes it difficult coordinate with allies , and it risks our assets and maybe even our health. Mark they posted saudi arabias at 116. 8ngs, billion. Reportedlyials have threatened to sell their stake. The role in a potential hillary administration, he wants to help parts of the u. S. That are struggling economically. Mrs. Clinton has Said Campaign events, her husband would be charged with economic revitalization. He told the new york times, he would not have a cabinet position. Amtrak will review findings by the National Transportation safety board on what likely lead to last years deadly derailment in philadelphia. Federal investigators said today the probable cause was an turneer speeding into a because he was distracted by news that another train had been hit by a rock. Said the cause was the lack of a speed control system that would slow down the train even if the engineer tries to speed up on a curve. Eight people work killed in that accident. World and regional powers in more than 20 nations held talks in vienna today to try to make the fragile ceasefire in syria more comprehensive. Factional divisions with competing agendas keep getting in the way. One key issue was whether or not to keep president assad in power. Global news 24 hours a day, powered by our 2400 journalists, in more than 150 news bureaus around the world. I am mark crumpton, joe, scarlet, back to you. Scarlet whatd you miss . Wti crude climbing to a high. We will show another designing u. S. Stockpiles. Youd be the first back to back weekly decline since december. At the same time, supply losses in canada and nigeria. The Energy ConsultantPhil Verleger joins us. We talk about supply disruptions in canada and nigeria, they grabbed all the headlines, but it goes further than that, doesnt it . Canada is new, nigerias new, but venezuela is in it, as well. 1. 8 or 1. 7. It looks like we have drawn inventory globally. The industry is behaving that way. Prices will keep going up as long as we keep drawing inventories. They wont go far because inventories are so high. We have about 500 million is fiveof oil, and that or six days of global consumption, which will take a year or two. If we keep cutting production, just like a drought affects the tornadoesorn, or affect crops, energy is just the new corn. If you think of it that way, it becomes less interesting. Joe you mentioned venezuela and production numbers there are probably lower than people think. It seems the day after day you hear more stories about that economy going into disarray. Are you concerned that supply is going to drop even further . Philip i think it will drop a lot further. I put this on my website, because it is so hard to cover venezuela. If you talk to the people trying to cover venezuela, it is almost as hard as covering north korea, he cant find food, there are riots and everything else. Anyone covering that should get extra pay. I think venezuela could go all the way to zero. It is just falling apart. They dont have any investment. Scarlet that is not priced into the market right now. Philip not at all. Scarlet we saw them treating it as a tool for growth, specifically chinas appetite. Philip trading is a proxy for crude. I thought the stories, and they were moving together. But this is a correlation that was therefore a wild. I dont think i see anything, i have been doing this for 40 years, not going into its economic activity. Joe as you said at the beginning, it is a mainly a supply story. Are there any demand decides that are important . If tomorrow when the data come out, everyone will say u. S. Ethylene consumption is up 5 or 6 . The numbers when you dig into them are 1 or 2 . I think the oil demand is up a little. A supply story. Demand will come back, but we are not consuming as much oil and gasoline. When you look at the figures that came out last week, and gas station sales, that pointed to a lower sales number. Eta blem with the doe doe data. Do you have a sense of where will bought a mac . Bottom at . Philip you see the doe numbers and read the state numbers from north dakota, the texas numbers, and there is a wide difference. Was a huge there gap, estimating a drop in production. Does calculation, it is a random number. People put too much confidence in it until we get actual numbers. Thank you for joining us. Scarlet we will have much more on Goldman Sachs and their oil call later. Up, the british pound is merging into an emerging market currency. We have a chart that you cant miss, next. Scarlet im scarlet fu, whatd you miss . Anund is becoming a emerging market currency. Em currencies and vice versa. This is a 50 day correlation between sterling and the index of em currency. Green indicates positive correlation, currently at. 34, a perfect correlation would be 1. 0. Is a pretty strong link here, which suggests the pound is more vulnerable in the event of market turmoil. Joe it speaks to how people are thinking of the pound this day in a runoff to the brexit. It is not a safe haven, not something you want to grab onto when you are nervous. Scarlet measures that implied volatility have climbed to six month highs. A fun fewcould be weeks. I am looking at gold, which is having a fantastic year so far. Chart looksks at the functionality. You can see it is off to its best start. This is the last 10 years of old i am looking at on this chart. Each one starts at zero, and you have it percentage change. Gold is off to, far and away, its best time since may. Going back to last december, people absolutely loath to loathed gold. But it has been climbing. This is a good year for the gold. Scarlet and small signs of inflation. Is holding off, the brexit, nervousness. Scarlet coming up, well be hearing from jeff currie, the head of Commodities Research at Goldman Sachs. We will ask him why he thinks oil is headed higher. His call for 50 a barrel. Mark i am mark crumpton, lets get the first word news. The u. S. Senate has blocked forident obamas request 1. 9 billion to combat the zika virus. 47, with six 50 votes needed to proceed. From thebe offset Preventive Health care funds. The white house has threatened to veto the bill. Donald trump is about to get his first real attack from the clinton campaign. Tomorrow, a proclinton the super pac will begin airing its first tv attacks. Plans to spendsa 136 million advertising against mr. Trump between now and november. They focus on his statements about women. The head of an australian search team says the missing malaysia an airliner may never be found. Martin dole of australias transport safety tells the guardian there is some possibility of success. A Multinational Team has been searching the indian ocean, but it disappeared more than two years ago. Promising to listen to hong kong suggestions regarding its autonomy. The chairman of the National Peoples congress is the highest ranking chinese official to visit the city since prodemocracy protests two years ago. Hong kong police are on high alert during the threeday visit. Global news 24 hours a day, powered by our 2400 journalists, in more than 150 news bureaus around the world. I am mark crumpton. Joe, scarlet, back to you. Scarlet lets go to a recap of todays market action. Down for the major indexes. Deepening in the afternoon. We have data on inflation that convinces us some people that that may be in a better position to raise Interest Rates until june or july. Joe we saw a bit of an uptick in expectations of a june rate hike, but the expectation is that there will not be one. Big losers, consumer stocks, Consumer Staples, Consumer Discretionarys among the worst. The worst performing sector and the s p, energy, as oil was up 1. 7 today. Scarlet valeant shares rising in afterhours sharing after they reported they will sell some of their smaller cosmetic and pharmaceutical assets as they try to raise cash to reduce debt. Whatd you miss . First conference taking place in palos verdes am a california. We talk with jeff currie. Alix jeff, great to see you. Your calletation of was shortterm bullish, longterm bearish. Break it down. Jeff our average price forecast did not change. There was some supply disruptions going on. We put some of the bearishness into the first quarter. The conclusion is to think about the halflife of these different disruptions. Canada is likely to have a short halflife. Nigeria, likely longer. We have to prices, like iran. That drives bearishness going into the first quarter, as well as iraq. You put it together, an 50 range. T of 45 said 50, butntly we are bringing the dollar away from it now. Do you think the market has run up to far, too fast . Million euros a day out of canada, i am shocked o