>> live from bloomberg world headquarters in new york, this is "bottom line." i'm mark crumpton. 12 years in the united states and those of you joining us around the world, welcome. -- to those of you in the unites states. starting a new classic car index. joe weisenthal in athens where greek voters are getting ready to head to the polls. we begin with a reporter

roundtable on a new era in saudi arabia. peter cook has u.s. saudi relations and alex deal is watching the impact on the oil market. will the relationship transition have any affect on what's going on between the u.s. and saudi arabia? >> this transition is very important in the united states. one of the most important u.s. foreign relationships. we heard about the close personal relationship that president obama had with king abdullah. he had been held for some time. this is something the united states has been repairing for. -- he has been ill for some time. there have been challenges on syria and how the arab spring was handled. it is a sensitive moment. they don't expect any big change in the relationship. they hope to strengthen that

relationship going forward. >> will king abdullah's death change the course of oil prices? >> for the short f term, it did. any secession will cause some jitters in the market. immersing will level off. -- you are seeing oil level off. >> more demand will cause the price to go up more. i think we will never see -- it will stabilize. >> you are continuing to hear rhetoric out of saudi arabia calling for oil prices well below $100. the king was very involved in oil prices. this is not something he ignored. >> are there any big takeaways

from his first moves within the government? >> first of all, he is trying to show his succession plan. he's a 79 years old. there is questions about how long the new king could remain in power. the new crown prince has been installed. the selection of the deputy crown prince, one of the grandsons of the founder of the saudi kingdom, the third generation, the first time power could result in the third generation of saudi leaders. a lot of focus and attention will be on that move. not a guarantee that he would move into king eventually, but one of the most-watched moves. >> as opec's largest oil producer saudi arabia has the most influential voice in the cartel.

due in large measure to the oil minister. he wants to retire this year. will that possibility combined with the new head of state altar saudi arabia's oil policy? >> the question because he is responsible for delivering saudi oil policy throughout the world. energy aspects came out and said they're looking for a change within the next 18 months. they think his successor would be the current ceo who has been around the block as well. he would carry the torch. you have the change of the oil ministry and the succession in place with questions about the third generation coming up, what happens when they cannot afford it anymore? saudi arabia has a huge amount of foreign reserves. for her and $65 billion. -- $465 billion. we are below $50 well right now.

how much will they be able to sustain it? they don't like lower oil prices. will this be something they have to live with? >> thank you both so much. more on the situation in saudi arabia coming up. we'll hear from sandy berger who served as national security advisor to president bill clinton coming up in 10 minutes. voters in greece will head to the polls on sunday. they will have to make tough choices over how to handle their country's debt after years of recession. here is the greek deputy prime minister on what's at stake. >> we have maybe the best structural surplus. after seven years a recession, we are now in position to present the first real indication of positive --

>> joe weisenthal is in athens. you were in greece couple years ago. how is this election different? >> i was here in 2012 during the last election. i would not say -- there was much more fear. fear that greece could leave the euro and all of europe was in trouble. now, the attitude is much more exhaustion and frustration. frustration with the weak economic growth over the last few years. voters are a bit more comfortable now voting for syri za because they're not too worried about greece leaving the eurozone. >> walk us through the timeline. the vote is on sunday coming in

two days. can we expect a clear plan by the time markets open on monday? >> and one expects syriza will win the election. there is this question of whether they will get an outright majority or whether they will have to form a coalition with a smaller party. there is a good chance that by sunday night we will have some answer to that. it's the beginning of the story. the real uncertainty, the real story will come in the coming weeks and months as the government tries to negotiate some change to the existing bailout system. >> this really boils down to discontent in greece about the austerity measures that were implemented. what is the mood like today? >> i would say frustration and anger. it feels like you are -- athens

is a normal city. people are going around living their lives like anywhere else. this is on everyone's mind. people are anxious to see what happens. >> everyone in europe and the united states talking about that wanted of easing plan that was announced this week by the ecb head mario draghi. will we see any benefits from that plan? >> the existing government is using the ecb announcement in the campaign. they are saying that on the path greece is currently on greece will benefit from ecb qe eventually. if the voters select syriza that will disrupt the bailout path and qe would not happen in greece. it is hard to imagine that argument having a huge impact on the election. it is a line the government is

using. >> joe weisenthal joining us live from athens. we will look at the biggest geopolitical risk to watch this year. sandy berger joins me when "bottom line" continues in just a moment. ♪

>> welcome back. more on saudi arabia's new leader and the challenges he will face at a time of plunging oil prices. the country which is dependent on oil revenue could be faced with a budget deficit. for more on how this could affect stability in the kingdom and region, i'm joined by sandy berger. welcome back to "bottom line." >> good to be here. >> how will he deal with the isi health threat -- isil threat in the region?

>> there will not be a challenge to his authority. this secession was well-planned. he has been the crown prince and it has gone smoothly. i don't see any challenge to it. that is not a problem. on isis, saudi arabia has been an ally of ours going after isil in iraq. he recognized that isil is a threat to them in the region. i don't see any pullback in that regard. i think you will see pretty much continuity and policy. maybe a bit more cautious, more collective decision-making for a

while. but i think pretty much in the same direction. >> i mentioned oil prices in the intro. the drop in the price of oil will that affect the long-term economic strategy? >> back up a second. saudi arabia is very much part of the reason why they are low. in the summer with supply going up because of our production our fracking and shale oil production and demand tightening , oil prices started to fall. what ordinarily would happen is saudi arabia would step in and cut production and keep the price high. they stood back.

they let the price fall. i think they thought it would fall to 60 not 45. they did that for two reasons. they want the low price to clear the market of the fracking producers and shale producers and to have a price at which they can sustain their production. they want to squeeze iran. they have $400 billion of reserves. they can sit on this position for a year or two. it was abdullah's position. >> you just mentioned iran. how will the king engage with iran and what signal will that send to western allies? >> this is a fundamental issue. there has been a struggle in the region between iran and saudi arabia.

for dominance in the region. it has played out in many different countries. but particularly in syria where iran is backing president assad and hezbollah and saudi's have been backing the opposition. it plays out everywhere. in yemen, which is now a mess the rebels are backed by iran. they leave iran has stimulated opposition inside saudi arabia. this is their number one enemy. i don't see that changing in the short-term in the longer term if we reach a nuclear agreement with iran and there appears to be some realignment, saudi's

will not want to be out on a limb. i don't see that happening. that is a basic rivalry. >> you mentioned domestic politics. john boehner has invited the israeli prime minister to address a joint meeting of congress in the spring. does his action undermine ongoing efforts by the white house to reach that international agreement with iran over its nuclear program? the israelis say it's a cover for developing nuclear weapons. >> this is inappropriate on both sides. for the house republicans to have the prime minister speak at this time is inappropriate. there's an election going on. to give the prime minister this platform in the middle of the election is interfering with the israeli election. it is really invited obama

during the 2012 election to address thwe would be upset by that. it is a political move by house republicans. on the part of the prime minister who did not even notify the president that he was coming is an appropriate -- inappropriate. to speak to congress in favor of legislation that the president has said will undercut his negotiating position. i don't know whether they will succeed or not. i don't know whether the iranians want a nuclear deal or not. i want the president to be able to negotiate. it is inappropriate for the prime minister of israel to be lobbying congress and undercutting the president.

>> sandy berger joining us from washington. always a privileged to have you on the broadcast. thank you for your time. we will look at the outcome of the first high-level talks between u.s. and cuban officials. that is next. ♪

>> american and cuban officials have wrapped up their first high-level talks in four decades as part of efforts to restore diplomatic ties between the two nations. indira lodgment followed the talks. she joins me live from havana. how did those talks go? how quickly might we see change? >> both sides it was striking

to see after 54 years that these two countries have not had embassies. both sides came out smiling and talking about how the talks were productive and respectful come even encouraging. at the same time, both sides said they remain with deep and profound differences. in the same way the u.s. delegation tried to say look we don't think you have democracy and human rights and cuban's said what about ferguson and the killing of unarmed black men? they said we have a two way street to talk about human rights. >> cuba is still on the u.s. list of state sponsors of terror. that prevents its diplomats from having bank accounts in the united states. will that change now as well? >> this is a big deal.

it was something the head of the cuban delegation brought up again and again. cuba said while there are no preconditions to reestablishing ties, having embassies is hard for cuba because they cannot have bank accounts in the u.s. they think they are unjustly on that list alongside countries like iran and syria and sudan. the president undertook a review at the state department to see whether cuba is still sponsoring terrorism and we will find time -- find some time before june if they get off that list. >> speaking of banking, mastercard said it will lift a block on the west bank transactions -- u.s. bank transactions in cuba. when will that move happen? >> it is a very big deal. you cannot use american credit cards in havana or anywhere on the island.

which makes it difficult to do business here. mastercard says because of changes in relations, as of march 1, they will make it possible to use u.s. credit cards here. reside american express, i wonder whether they are setting regulations and plan to pick up on the same thing. -- visa and american express. tourists will have a much easier time doing business here. >> what has been the reaction to the talks from the folks on the streets? >> one of the most striking things for me. in a way that is not usual for cuban state-run media, they have covered these talks in a wall-to-wall way broadcasting the press conferences and rebroadcasting them again and again and people are watching this with a fervor usually reserved for baseball games.

they are incredibly excited about this. people hoping for a better relationship with the united states and hoping all these decades of amnesty will end with a better economy for cuba and better relations between the two sides. people are hoping it happens faster than not. >> we have 30 seconds left. one of the takeaways was the cuban officials although they will be welcoming some sort of dialogue with the u.s., they say they do not want the united states telling it what to do. is that accurate? >> absolutely. they said we have a different definition of human rights and democracy and sovereignty. we will continue doing things our way. it is clear they are going to demand that people -- it's going to be a slow process to get a normal relationship. >> indira, thank you.

pro athletes and taxes. we take a look at a tax hike brewing in ohio and how a financial quarterback might help players avoid costly tax football. ♪

>> welcome back to the second half-hour of "bottom line." i'm mark crumpton in new york. bloomberg sports now. there is a fight brewing in ohio about the so-called jock tax. in income levy against pro athletes and entertainers who perform in the state for 12 or more days per year. they say the tax is unfair and overlooks the fact that despite salaries athletic careers are relatively short. welcome to "bottom line."

thank you for your time. this can be traced back to a legal dispute involving one of the greatest athletes of all time, michael jordan. what happened in that case? >> back in 1991, the laws had been on the books for a while. the bill is titled "michael jordan's revenge." the california legislature was taxing the bulls players so they decided to do a bill and reciprocate and text their players. -- tax their players. >> are we talking about a commuter tax? >> yes, it is a large commuter tax. california has the highest state tax at 13.3%. >> what is the difference between a game play standard and

duty to a standard? >> all the days they work, they have meetings or watch film, those days count as duty days. the games played method in cleveland is solely for games laid. -- games played. >> talk to us about the participants involved in this game in the ohio case. you have jeff saturday and hunter. what is their contention? >> saturday has the biggest case where he was not even there. he stayed back in indianapolis. he was rehabbing. he did not even go there. how can you tax somebody if he wasn't even there? they were contending that the tax law is not fair. if you're a normal person and go

there less than 12 days, you don't pay attacks. ohio uses duty days and all the other cities used today's -- duty days is a more accurate depiction of the wages. >> is this one of the main reasons athletes might sign a huge contract but stay residents in another state? >> where an athlete lives is very important. it does play a role in the equation. they do look at these sort of things. >> it seems like it's an antiquated way to do things. had there been any efforts to try to change this? >> there had been a little bit in terms of try to be more consistent. most cities used to be days -- duty days. they try to be more uniform.

>> when i was looking at some research for this, i note that you let us know that one of the big examples of this is the los angeles dodgers. >> he played for the dodgers and tidy 2-iron $50 million contract. -- a $250 million contract. he is a texas resident. he got a very large signing bonus of which he will pay no tax in california on that. the oral arguments were last week. it will take another two months before we hear back on that. >> thank you so much. coming up, the collectible car market. the rising value of classic cars with the head of the largest

collector car insurance company. "bottom line" continues in just a moment. ♪

>> join us tonight for davos 2015. a star-studded list of guests who braved the cold of the swiss alps. it is time now for today's latin america report. ford motor will take a one-time pretax charge of $800 million because of the inability to exchange u.s. dollars for venezuelan bolivar's has restrict it operations the company's $500 million cash balance will no longer be included in the companies automate of gross cash. it will count cash and income from venezuelan operations only

when the parent company has paid for parts sold to the unit. that is your latin america report for this friday. the collectible car market got to an impressive start this year. $300 million in classic cars were sold at auction's in scottsdale arizona. in 18% increase over 2014 sales. matt miller is back from palo alto, california. with the president and ceo of a global leader for collector car and boat insurance. >> thank you so much for stopping by. i'm sure you were busy in scottsdale last week. you are starting a new index or market indicator to judge where their investments stand. >> we have been trying for years to build enough data sets that you could put together to give

individual investors and people who are interested in a broad asset class real rationality and real data they can use and get a sense of. is the market getting overheated? that's why we are launching it today. >> what is it like investing in classic cars as an asset? i am a car lover. i would love to get a 73 rs or 68 ss. but i know it would take a lot of effort and money to upkeep and a garage and maintenance staff. >> it is easier than ever. this is a much more sophisticated market. all these great tools that individual buyers can use. there are more places to buy them. that whole some are born every minute approach is gone. -- sucker born every minute approach is gone.

the values have been creeping up and you read that there are these for hours -- for our recent selling for $40 million -- forerraris selling for $40 million. it is still about the fun. people want to go out and enjoy cars. >> they are unattainable for most normal people. i member thinking i would go out and buy a porsche and i was seeing them for $40,000. i saw a turbo for 250 grand. those prices are going up and up. >> porsche has gotten cut up -- caught up in the updraft. they have been climbing and climbing.

arguably the most collectible car of the 1970's is a 1973 rs. they are really good cars and known on a global basis. there collected around the world and easy to explain. >> ferraris, we've heard about forever. american muscle seems to be getting huge. the auctions are getting not just good attendance but good ratings. >> they are now rated like serious sporting events. the most collected car in north america is the corvette. they have been around forever. you can buy them at all different price points. same thing with the mustang. we just had the 50th anniversary . a feel-good car, looks great driving down the road.

all of those have been going up in value. in the u.s., the muscle car market, very strong. yet, it is a global market now. used to be it was one economy that was hot and another cooling-off and may be cars were shifting around between those two places. no, really cars -- really good cars come up for sale and they can be bought around the world. >> can someone get involved in classic are investing if they don't want -- >> it's primarily individuals c. get interested in something you like. even pickup trucks. they one of the hottest segments right now. >> what about funds?

nick mason from pink floyd started a fund in england. is that taking off for investors here as well? >> one of the reasons we created the market rating as we wanted real data sets that are broad and deep that would get those funds the ability to finally have a real rating that could rate the market. am i overpaying? that's why we created it. it creates that 1-100 scale. right now, we're reading the market at about a 70. growing strong, not too goodhot. >> creating a market index for us. >> thank you so much. up next, encore. the biggest newsmakers of the week on "bottom line." ♪

>> welcome back. it is friday so we bring you

encore. the most notable newsmakers this week on "bottom line." >> what i was referring to in that note was that you now have both parties building up to this notion of attempting to claim some credit for economic results in the country. tells me you are highly unlikely to get what we call fiscal -- the foolish stuff in this town from summer 2011 through the end of 13 the damage to the economy. i don't expect that to happen in the signals from the hill support that. >> we have to be mindful of that gap. it is real and must be addressed. we don't take care of that gap by taking proceeds that have already been earned by the american people instantly redistribute in them. that's redistributing them. you grow an economy when we went through the most comprehensive round of tax reform that the nation had ever seen at the state level. >> it is generally hurting us.

we need a transportation bill. we need help with our infrastructure and less regulation. we need more money and more decisions being made at the local level. it is largely an impediment. we need the main street fairness bill to come down from congress. that would help cities more than anything else. >> the real gamble on his part is if it succeeds in spain. if one year from now rather than having inflation rate of zero or 1%, we are talking 3%. i don't think that will happen. the downside risk for him is the political risk. >> european stocks are extending gains following the ecb's decision to expand stimulus. stocks posting their best weekly performance since december of 2011. u.s. stocks are fluctuating

after a four-day rally. earnings offsetting the boost from mario draghi's aggressive bond buying program. trish regan joins me now with more on this story. the markets have been up-and-down on this news. >> we have seen a lot of volatility. we will see more of that as we go forward. ups being a drag on the markets today. a lot of people are looking forward to what will happen next week. what might we see in the way of things moving forward. things trading down slightly. it is a friday. you have greece coming out with news over the weekend. there is a lot to be encouraged with right now. lower oil prices an economy that seems to be on an upswing. we have two seed wages start to grow more.

-- we have to see wages start to grow more. >> cut the corporate tax rate. >> you want to incentivize people to start and keep their businesses here and keep the revenue here. you add in state and local taxes, the highest tax rate in the world. i will be talking about taxes. looking at president obama's tax proposals. we will be talking about the 2016 republican field. from grover's perspective someone in favor of tax reform, who would be best for that. >> i interviewed the former utah governor jon huntsman. i asked him who is in charge of the republican party and he said

no one. there won't be anyone in charge until the party selects a presidential nominee. >> they have struggled in recent years having that leadership. john mccain is as close as you get. it's important because you see such a splintered party. this has been one of their challenges. how to unite the libertarian tea party movement with the more traditional conservatives. >> john boehner has been trying to figure that out for the last couple years. "street smart" at the top of the hour. scarlet fu will have another edition of off the charts on the other side of the break. "bottom line" continues in just a moment. ♪

>> an outbreak of measles on the west coast has now spread beyond california. there are currently 70 confirmed measles cases across the u.s. today with the overwhelming majority linked to disneyland in southern california. scarlet fu puts it into context for us in today's up the charts could -- off the charts. >> it is scary.

today's off the charts quantifies the resurgence of measles. data from the cdc. the line to track the number of new u.s. measles cases by month. you always start with zero in january. the big red bold line at the top is 2014. measles cases began multiplying in april and continue through the spring before plateauing in late summer through paul. -- through fall. all the red lines at the bottom of the cluster, those are 2001-2013. huge disconnect between 2014 in the previous years. 1989-1991, 55,000 total cases.

that's a 20% hospitalization rate. 123 deaths. back then, kids got a signal dose of the vaccine. after that spike, they put a new recommendations -- in new recommendations. it worked. they thought measles was eradicated by 2000. that created complacency and came along with the study of autism being linked to the vaccine. according to a recent poll, 53% of respondents -- 15% are not confident. >> disneyland is described as ground zero for the most recent outbreak. as we know, california is home to a lot of people who are just not into vaccinating their children. >> a lot of research has been

done on this where you have clusters of communities who question vaccines. it's a challenge for the health department to get around. one interesting stat from a professor at kent state. 95% of kids in america has gotten the vaccine but the 5% who are not vaccinated they are not spread evenly across the united states. they are in clusters. >> who is most at risk? >> anyone who has not been vaccinated or is under vaccinated. or you have not gotten your vaccines up to date just yet. that has become the trend. my kids did not get vaccinated at the exact same time.

you space it out a bit. that might be a cause of concern. >> scarlet fu joining us today with our off the charts segment. get the latest headlines on bloomberg radio and bloomberg.com." that does it for this edition of "bottom line." thank you for joining us. "street smart" coming up. ♪ ..

>> we have 60 minutes until the close today. king solomon is promising to continue the policies set out by his predecessor. we will look at the new challenges facing this new king. voters will be deciding whether their country will stick with austerity. could be the next crisis? plus the controversy keeps going. street smart starts now.