ng from iran talks in switzerland. will the dollar strike resume? greek banks running low on cash. this is bloomberg "surveillance," live from new york. joining me, brendan greeley, olivia sterns is off. our top headlines. brendan: investigators in germany trying to learn why andreas lubitz decided to commit suicide. he was the copilot of the jet that plunged into the french alps tuesday. investigators believe he intentionally crashed the airbus a320 into an on-site -- into a mountainside. officials are searching for clues about his emotional state. setting up a family assistance center in marseille.

some held a religious service in and area near the crash site. egyptian officials say yemen is in the planning stages. egypt and saudi arabia want to send in troops. it is expected to get the ok of the arab league tomorrow. fighting is turning into a proxy war between iran and saudi arabia. yemen's president is taking refuge in saudi arabia. the senate pulls on all minor and pushes at budget plan through. passing the plan around 3:30 a.m.. the republican deficit cutting plan was passed on a partyline vote. the plan would cut benefit programs and repeal obamacare. what is sure to be a long battle between congress and president obama. questions about an explosion that destroyed a manhattan apartment building an injured 19

people. the blast brought down the building and nearly wrecked another. faulty work may be to blame. utility inspectors decided the plumbing and gas was deficient. new york's mayor says no one is missing but one man's family says they haven't seen him since he was dining near the scene. amazon and talks to buy that -- to buy net a porter, which could command a valuation of $2.2 billion. no additional details were available and amazon declined comment. tom: moving on, basketball. kentucky perfect last night. a top-seeded wildcats routed -- does that describe the trouncing of west virginia? beating the mountaineers by 39 points. 37 wins, 0 losses.

kentucky advances to the round of eight. joined by notre dame, wisconsin and arizona. 4 more games tonight. this is the best weekend of it. brendan: they beat west virginia by 39 points, they doubled west virginia's score. tom: it was a trouncing. brendan: there was a player on west virginia who protected -- who predicted they would win. tom: how was your bracket? brendan: my bracket is gone. i chose maryland and kansas, nothing worked. tom: i use statistical analysis. a subtle data check into the weekend. futures negative five, zero 1. - - euro 1.0819. oil weaker. west texas intermediate $56.26.

the dow from the 18,000 level south. euro-yen, stronger yen. euro-swissie. swiss franc reverting against the euro. kit juckes' note this morning from socgen. this is what the professionals look at. zero-yen. -- euro-yen. i rarely show the more conventional technical stuff. we balance off the moving averages, down we go. this is the euro reversal of the last 5, 6 or seven days. brendan: air not getting any help from the yen. the inflation japan is h oping for is not happening.

in december, kuroda said let's all adjust together. japanese corporations did not give wages. brendan: the backstory overnight japan in search of inflation. kit juckes is saying this trend may continue, strong yen and weaker euro. i rarely use the word subtle when looking at equities, bonds currencies and commodities. we need to speak about the tragedy and france. he headline came across the bloomberg terminal at 7:52. the mystery of germanwings 9525. french authorities said it appears the airplane was forced into a crash by a pilot. we will all adjust european airlines they will change policy. caroline hyde lives out of

heathrow. what is changing at heathrow this morning? caroline: a plethora of airlines taking immediate action. they are moving ahead of the regulators and taking a leaf out of american airlines' and regulators' books. you must have two people in the cockpit at all times. regulators are already discussing the u.k. european and german regulators. you have had easyjetthe conversation on how this

will go this weekend, how will people frame this tragedy in london? caroline: with the nervousness and soul-searching. ask yourself, what are airlines doing when it comes to assessing the pilots. in the german press, they announced digging deep into the personal life of the copilot, andreas lubitz. asking whether he had personal problems with his girlfriend. is that what drove him to the remarkable event? brendan: let me jump in. the german president has been way out ahead of this. -- the german press has been way out had of this. evidence that it was a little more than an argument with his girlfriend. he was being handled or there was evidence of some psychological problems. do we have any confirmation of that at bloomberg? caroline: not yet.

they are also looking at his history with lufthansa. while he was training it seems he had to take periods of time out because he was suffering from depression. questions have to be asked of germanwings' parent company, lufthansa, were they really assessing the mental health of this man. as to whether he should have been in charge of the plane. european regulators not imposing that you have two people in the cockpit at one time. tom: caroline hyde, thank you. the final friday of the first quarter. we need time to assess the economy. brendan greeley mentioned, the backdrop is japan and search of reflation. it is simply not happening and the world will adjust. jerry is chief economist at oppenheimer funds. they have shown excellence in international investment. for disclosure, i have done all sorts of good events with oppenheimer funds.

great to have you here. i was taken off by the news of japan. abenomics, it is not happening. jerry: i think a lot of that is the third era. monetary policy can do a lot of things but it cannot make people spend. they cannot get rid of the rigidities baked into the japanese corporate structure. and it can't give us more young japanese workers. there is so much you can accomplish with monetary policy. its ability to drive inflation is quite limited. brendan: amen. this is a more global problem. not just with abenomics but also in the u.s. and europe. the only institutions capable of doing anything are the central banks. in the absence of fiscal policy,

monetary policy is the only policy we have. jerry: rigidity. tom: what does that say about the world economy? i don't think we have talked about the global economy this week. are we still within madame lagarde's new mediocre? jerry: feels like it. we just saw some i and asked members updated to 2.5% or 3%. tom: global. what is brazil? jerry: brazil is the country of the future and always will be. brazil is not finding a sustainable way of producing growth.

some wonderful companies in brazil but they have not found a way of sustaining national level growth beyond the commodity boom. brendan: hard to draw conclusions about brazil, it is like greece, it is its own special problem. jerry: the most important growth cases china. we can talk for the next week about china. they're probably doing some prudent things, which in the short term does not stimulate global growth. brendan: do you agree with the larry summers these is that chinese growth has no choice but to eventually refer to the main? jerry: they're all it is the obvious. it is not going to become the world economy. the economist arthur lewis' view of what happens to a poor country when it starts running out of cheap labor and saturates rich countries' market is what is occurring in china. the response is appropriate. brendan: this is what they referred to as the middle income trap. jerry: the lewis turning point.

brendan: that turning point that china is going through is being felt all of the world. looking for a different place in a second. greece scrambling to come up with a plan to satisfy creditors. greek citizens pulling money out of the banks. cash under mattresses. we go live to athens. this is bloomberg "surveillance," streaming on your tablet from the phone and bloomberg.com. ♪

tom: good morning. the euro, 1.0818. a subtle market. let's get to some difficult top headlines. brendan: in germany, investigators trying to learn why andres with us decided to commit suicide. he took 100 49 people with him.

lubitz was the copilot of the plane that plunged into the french alps tuesday. authorities believe he intentionally crashed the a320. egyptian authorities saying an invasion of yemen is in the planning stages. saudi arabia is bombing iran-backed rebels. the u.s. is reportedly thinking of letting iran keep running a once secret underground nuclear facility. the u.s. wants iran to limit work at other sites. the associated press quotes western officials in geneva. john kerry set for another round of negotiations with iran. the chairman of perilli calling on investors to exit the takeover. he described the offer as fair.

he leds pirelli's biggest shareholder report. the gender gap ad giant tech firms is widening. just over a quarter of professionals were women, that figure has not changed since 1960's. the ranks of other minority women are lower. former university of north carolina basketball coach dean smith still giving to players. smith's trust sent out a letter to each of the coach's former players with a $200 check along with the message, "enjoy a dinner out compliments of coach smith." he died at the age of 83. tom: we will talk to jerry of oppenheimer funds on europe. we move onto a smart chart with brendan greeley. we look at facebook in their dominance.

this is a stunning chart. 6:40. at 650, we had a treat for you. have you been to yemen? willem marx will join us and we talk about the unique territory and terrain of yemen. all of that is coming up. brendan: greece's central bank revealed that greek citizens have told more than $25 billion from their banking system in the last three months. the total deposit base is at its lowest level in 10 years. companies panicked first, then households. both started withdrawing before syriza won the election. marcus joins us in athens. there is a lag in this data. what are you seeing now? is it going to be worse than february? marcus: we have been hearing indications that even in february at the end of the month there was a stabilization. we had the interview with erik schatzker and the finance

minister that said there was a deposit info at the end of the month. that was specifically after february 20's agreement between greece and euro area finance ministers, its creditors. since then, for about a month things have been stable. last week with some bad headlines all the money that was going to go out already won out. the situation is dependent on headlines. people are nervous. there was bad headlines last week. the chairman of the group, dijsselbloem he publicly floated the possibility of capital controls. there was more than $1 billion coming out of the system last week. a month of stability that pick up again. this has been paralleled by emergency funding from the european central bank. a bit of a lag. brendan: i was struck that greek

companies started panicking earlier than greek consumers and households. do we have any evidence from athens on what greek ceos plan to do? marcus: we do not have much concrete on this. it stands to reason that generally speaking cfos tend to be more financially savvy than your average household. they have a responsibility to shareholders so they tend to react quicker to perceived risk. you saw a situation, i mentioned the dutch finance minister raising the possibility of capital controls. that happened in 2013 in cyprus. if you are a household with more than 100,000 euros in deposits in the bank, which is the ceiling for insured deposits

that is quite a lot of money. well, it is not massive but it is a fair chunk for a normal person in the bank. if you are a company with working capital you do not have to be that big. you would probably pull it out. brendan: markets in athens, mentioning the possibility of capital controls. tom: a la twitter question of the day. coverage through the morning. this is on the middle east. is yemen the new battleground in a troubled middle east? @bsurveillance. stay with us, this is bloomberg "surveillance," good morning. ♪

tom:. good morning everyone

rain in new york. spring this weekend. here at 59th and lexington. to the far, far west in new jersey. good morning, it is bloomberg "surveillance." a morning must read a while i stream out my blood type. -- bow tie. david brooks in "the new york times. "hthe crucial swing voters will be light and hispanic college graduates in suburban office parks." this is a great summary of some of the certitudes we have in the pageantry crafted by the senator from texas. brendan: i almost never say

this, i'm excited about this election. i think we are going to have some interesting debates. you have a real libertarian candidate and rand paul who is going to be engaging that. i'm excited to see what happens. tom: jerry webman with oppenheimer funds. do you just presume gridlock to 2016 or beyond? jerry: hard to think of anything besides gridlock to 2016. beyond, let's say that we have all three branches of government in the hands of one party, which would have to be republicans. there is no way the republicans lose control of the house of representatives until we doing other sent this and redistricting. -- another census and redistricting. americans do not know what they want out of government. people have learned to be

skeptical. whether you listen to the blue news media or read news media, you are hearing about everything and competent government does. please last site -- everything and competent government does. we have lost sight of what government can do. we are going to hear a lot more no's than lets tries. tom: david brooks for your weekend reading. our twitter question on the middle east. is yemen the new battleground in the middle east? as egypt considers the playing ground troops. ♪

tom: good morning. the 10 year yield, 2.00%. i'm looking at gold under $1200 an ounce this friday morning. brendan: investigators in germany trying to learn why andreas lubitz decided to crash the germanwings jet into a mountain. he took 149 people to their deaths with him. lubitz was copilot of the jet that crashed, investigators believe he locked the other pilot out of the cockpit and intentionally crash the plane. officials searching for clues about his emotional state.

>> we have searched the apartment for clues and other indications as to why the pilot could have done the deed. brendan: the airline is setting up a family assistance center in marseille for relatives. some relatives held a religious service near the crash site. egyptian officials saying an invasion of yemen is in the planning stages. planes from saudi arabia are bombing shia rebels in yemen. the rebels are backed by iran. the plan to form a strike force expected to get the ok of the arab league tomorrow. the fighting is turning into a proxy war between saudi arabia and iran. yemen's president is taking refuge in saudi arabia. the rebels are storming south. american airstrikes are helping and hurting the operation to retake tikrit. planes fl a sec -- planes flew a second round.

the american role is angering shiite fighters. thousands boycotted. tikrit has been held by islamic states and last summer. the senate pulled an all fighter and pushes a budget plan through. they adjourned after passing a plan around 3:30 a.m. today. the republican deficit cutting plan was passed on a partyline vote. it would repeal obamacare and cut other programs. starting with a short to be a long battle. showing the depth of japan's economic slump. the country's inflation rate is now zero. consumer spending dropped last month. and bank officials still expect to have their inflation target. tom: an american astronaut preparing to leave earth for a long time. scott kelly with nasa ames to

make spaceflight history when he rides a russian soyuz rocket to the international space station twice as long as any astronaut has stayed on the space station. he will be joined by two russians. mr. kelly will take his ncaa bracket with him up into space. i want to go to a breaksclusive. the new periscope. howard linde'szon with us in the next hour. here is howard having coffee on periscope. we are on the cutting edge of technology. getting ready to come on set. brendan: i never know when you are going to dismiss some piece of technology or embrace it. tom: it is a "surveillance" breaksclusive, i'm all

periscope. within each crisis, the gift that keeps giving. when in doubt, d value and appreciate your currency. germany has enjoyed a 30% plus depreciation of the euro. assisting eu businesses to a better time. perhaps we will get structural reform. jerry webman is chief economist at oppenheimer funds and spends time helping his professionals think about what consensus is on and what it is getting wrong. euro gloom, you say no. jerry: zero gloom was -- euro glue was the story of last year. the only place to be was large cap u.s. i did publish a paper a few weeks ago. i'm disappointed to have a thesis and immediately it gets recognized. the market has been agreeing

with me. if, you put together easy monetary policy better labor costs, spain is the most important example, and a weaker euro. for european companies this is a competitive advantage. tom: nestle looks like walt disney, the stock chart. brendan: we've been talking about how this is going to help the german exporting mittelstand , the small companies. tom: you are always trying to impress me. brendan: these are the small companies that have tremendous exporting powers. look beyond that. where else in europe are we seeing exporting growth? jerry: among the really strong brands, which could be luxury brands. it could be luxury booze. the engineering companies. i'm not special talk about

companies. i believe there's an airline manufacturer in europe and the u.s. who buy. this helps someone whose costs are heavily in europe. tom: you can talk about this, tj curve. is the j curve broken? jerry: everything happens faster. the j curve is important. a weaker currency hurts and then begins to help. as you look at u.s. returns on european investing of the last six months they have been disappointed if you have not controlled the currency. tom: the euro, what a ride. off a cliff and down it goes. up 1.40. we are getting near the deutsche bank and goldman sachs call below parity. brendan: france and germany are getting along now but the big debate was do you offer stimulus

or do you do structural reform? do we know who won? jerry: i'm not sure we have done either one. the problem with solving the problem with a weaker currency, it allows you to continue to doing what you were doing before and have a period in which that is successful. you have got some great german and i'm not going to try to say middle-whatever, you have great exports that benefited from a weaker currency. this may allow fiscal decisions to be put off. brendan: sounds like mario draghi won. jerry: i suppose that is right. you come back to the central bank being important. nobody wins long-term unless you figure out what you can be economically competitive overtime. tom: japan, europe and the david brooks must read. how do you define the new

globalization? jerry: the new globalization as we are trying to find who can produce enough innovation and enough productivity, enough change. enough of the new technology. tom: periscope! jerry: periscope, i hope i will get careful when i get coffee downstairs. are we going to have the belief that i can make money and keep money around the world? status china's biggest questions. tom: you were in brazil two weeks ago. brendan: brazil has to be part of the structural changes not taking place that jerry points out. if i can sum up what you have been saying, monetary policy alone is necessary but not sufficient. coming up, the battle between social in terms of ad dollars. who is winning? it is not yahoo! today's single best chart is coming up. this is bloomberg "surveillance."

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tom: good morning. bloomberg "surveillance." let's get to our single best chart. brendan: zuckerberg wins. the subject of today's single best chart. here's what we are looking at.

company data from a couple web firms plus predictions from the market or. -- e marketer. the blue line until 2015 andinto the future is facebook. the question has always been for ad dollars, is it search or social? the answer is clear. guess where the purple is not? yahoo! does not exist. i don't even know what yahoo! does. when you look at twitter, twitter was behind yahoo! as recently as 2013. that trend is over. it is deceptive to look at the. dark blue , look at what twitter is doing catching up to google and passing yahoo!. tom: they made their developer conference this week. they had a lot of spirit. i'm speaking as a total hack. they have momentum going. brendan: when you talk about eight and what facebook did with

its developer conference, where facebook is heading is using its messenger app. it was so behind in mobile. it is going to use its messenger app to help businesses do other things. businesses that want to transfer money and use the messenger app as a platform. tom: we are talking revenue sources. i have this periscope. i don't know how revenue gets in there but it is innovation and technology. i am broadcasting worldwide in real-time to a twitter universe. brendan: you are like a three-year-old with a new train. tom: i am. jerry: you are suggesting the problem of 1999 is being solved. 1999 was incident multiples for paying for eyeballs but nobody can figure out revenue.

a few years ago we said that was going to be faced a possible. they -- facebook's problem. they've turned social media into revenues. that's what's changed, turning eyeballs into dollars. that is innovation. we go back to the question of what is the economy going to do. people who figure out how to drive something people want and will pay for. tom: here it is, brand-new innovation. brendan: that is moving so quickly. that is just today. periscope is a twitter app. launched yesterday and already tom is reading out the number of his twitter followers. tom: 100% retention rate whatever that means. let's get to photos. a really interesting set of photos in japan. a new surveillance satellite equipped with a high resolution

camera in space. it will join a fleet of spy stations tracking military activity to the west, that would be north korea. they will collect images on the ground at any given point. currently there are two radar satellites. brendan: you do not even need to put your own satellite in space. north korea is the only country in the world that does not have an agreement with google to block out military installations. you can take google's you and look at military in north korea. tom: in colorado a tortoise. a red 3d prediction. cleopatra was born with a deformed shell. she is expected to live into her 80's. the design will be used to help other turtles.

brendan: i need to let you know. tom did not want to run this photo. tom lacks empathy. how does that not break your heart? tom: i greaw up in the land of snapping turtles. it would take fingers off. no love for turtles. our number one photo, scientists giving bees tiny backpacks. why do they give me this stuff? to study the declining population. researchers used tweezers and glue to attach microchips, sid trackers -- rfid trackers. $300 million a year. brendan: this is serious. colony collapse is as yet unexplained and could be devastating to food production

all over the world. unlike the tortoise, this is deadly serious. tom: frankly, thank you for doing a lot of science. we are recently as a society devoid of science. the to see that on this friday. we've been looking at periscope and meerkat. lots of talk about a frequent guest, howard will join us in our next hour. an entrepreneur on the west coast. on radio and television worldwide. we near the end of march. we have beauty shots in the reign of london, no, wait, that is new york. bloomberg "surveillance," futures negative four. ♪

tom: good morning, bloomberg "surveillance." olivia sterns is off. brendan greeley has top headlines. brendan: investigators in germany trying to learn why andreas lubitz decided to plunge the germanwings jet into the french alps tuesday, taking his own life and 149 others. investigators believe he locked the commander out of the cockpit and intentionally crashed the a320 into a mountainside.

investigators say they have found something significant in lubitz's apartment. egyptian officials saying and examine in yemen is in the planning stages. the rebels are backed by iran egypt and saudi arabia want to send in troops. legislation signed by indian governor mike pence is drawing criticism. the "religious freedom law" -- opponents say it is a licensed to discriminate against gays and lesbians. the ncaa is concerned because the final four will take place in annapolis. one person is dead after a tractor-trailer slammed into a construction being north of austin. it fell off onto a pickup truck killing the driver. americans are falling out of love with soda. u.s. sales fell for the 10th straight year. diet sodas tricking faster than

sugary counterparts. a shakeup in the top 10 rankings. pepsi has regained of the number two spot from diet coke. dr pepper, i will always love you. google forking over big bucks for its new ceo. after she joins the tech giant from morgan stanley in may. a $5 million bonus and $65 million in stock grants this year and next. on top of eight $655,000 annual salary. tom: looking forward to the next hour of bloomberg "surveillance." we continue to cover the crash in europe and the news from dusseldorf/ on "surveillance," howard lindzon will give us an update on facebook. we look at the new technology including twitter's periscope. we go to lausanne switzerland in the 7:20 hour.

on those important iran talks. brendan: moving from switzerland to the middle east. while iran in the u.s. meet in lausanne other things are happening. a coalition led by saudi arabia conducting airstrikes against rebels. if you are keeping track you are confused. willem marx has reported from yemen and iraq. do the separate incidents add up? do you get the sense that anything is shifting permanently? willem: the developments in the last few days in yemen are significant. saudi arabia is leading the coalition of people there. they are essentially attacking 40% of yemen's population. the houthis are part of a group that is an offshoot of shia

islam. there's not a lot of evidence for iranian backing. brendan: we can to look at what is going on in yemen through a broader lens but this is an old insurgency. this is a struggle for control. willem: this goes back to the 1960's. they were defeated, their leadership which had been in place for hundreds of years, suddenly they were treated as second-class citizens. since 2004 and 2000 five they have been very critical of the central government. we have seen that continuing to this point. they now control large segments of the country. brendan: i want to read you something from bloomberg view. completely ahead on every link out of the pentagon. the saudi arabian-led intervention. "the u.s. had only a brief warning that saudi airpower was about to be unleashed." what does it mean that saudi arabia is building

coalitions and making decisions on its own. willem: they gave about an hour's notice to central command. there have been discussions among the gulf groups over the last few months. the fact that they are able to operate this kind of operation on their own they are getting a bit of oversight in terms of logistics and in terms of intelligence on the ground from the air from the americans. the idea that this coalition from morocco to pakistan to sudan it is something we have not seen. we are seeing gulf monarchies really flexing the muscles in the region. the saudi's underwriting moroccan jets fighting in iraq against islamic state. this is not something we have seen. america does not have as much control as it might like in terms of leverage. the arabs are still working with them but perhaps not giving the americans the lead you might have expected. brendan: i was amazed to see the phrase "arab league" and

headlines. i would have bet that it did not exist. willem: the conversations in sonosite -- in sharm el sheik this weekend will be interesting. tom: i want to straighten out the map. you understand arab dialogue with the english being there for decades. most americans cannot find yemen on the map. what is the distinction for the u.s. that yemen is not over near the persian gulf. willem: the geographical checkpoint is a strait that's 17-18 miles between yemen and djibouti. that's a huge amount, 3.5 million barrels a europe passing through. ships coming back and forth

through the suez canal passing through their. the concerns are a bit overstated. tom: thank you semi's. we will have you back on yemen with direct knowledge. a forex report. a churn. euro 1.0831. stay with us. ♪

>> this is "bloomberg surveillance." tom: a sunni arab coalition

continues its assault on yemen. indira lakshmanan reports from switzerland. markets stabilize, oil weaker this morning. will dollar strength resume next week? and it is speculation -- will amazon go all in on oscar de la renta? this is "bloomberg surveillance ." we are live from our headquarters in new york. getting right to some breaking news -- blackberry out from earnings. i will turn to the bloomberg terminal. stock moving from 11 to the nine range. we wait for a series of those going out. the ugliness of blackberry. positive free cash flow. howard winston will join us here in a moment.

let's get to our top headlines. here is brendan greeley. brendan: investigators in germany are trying to figure out why andreas lubitz decided to crash that claimed into the mountains. he was the copilot of the planet plunge into the french alps on tuesday. investigators believe he locked the cap and out of the cockpit. officials in germany are studying items at the copilot's home in a dusseldorf and have reportedly told a german newspaper they have made "a significant discovery," but investigators say the search continues for answers. >> we have investigators searched the apartment for clues and other indications as to why the pilot could have done the deed. brendan: the airline is setting up a family assistance center in marseille. some grieving relatives held a religious service yesterday at the crash site. an invasion of yemen is in the planning stages. plans from saudi arabia and regional allies to bomb sites in

yemen. the plan is to form a strikeforce. it is expected to have the ok from the arab league tomorrow. the fight is turned into a proxy war between iran and saudi arabia. the rebels are storming south in a bid to secure their hold on the country. the senate polls in all matter and pushes a budget plan through. they adjourned a few hours ago after they passed a plan at 3:30 this morning. it was fast on a partyline vote. it would repeal obamacare and cut other benefit programs. it starts what is sure to be a long battle between congress and president obama. questions are still being asked this morning about an explosion that destroyed a manhattan apartment building an injured 19 people. the blast brought down the building and nearly wrecked another. faulty work may be to blame. utility company expected inspectors said that the guesswork there was

deficient. amazon is engaged in ongoing talks to buy online luxury retailer, that according to "women's wear daily," which says it could command a valuation of listen closely, $2.2 billion. that would be the e-commerce giant's biggest acquisition yet. tom. tom: on to the brackets and the fun of the ncaa. kentucky was perfect last night. it was the loudmouth -- who was the loudmouth from west virginia? west virginia just got smothered. contact the -- kentucyky beat -- kentucky beat them i-39 points. we have breaking news, this on

one of the more difficult management stories of the last five years. this is dow chemical. some have said the do-nothing company. dow to separate most of their coral alkali unit. you can tell i flunked inorganic chemistry. they will merge it with olin. dupont in the game, a lot in the game. a small deal compared to k raft-heinz, but there it is. on we go to the further mistreat, a different -- further mistreat, different mistreat from a few days ago, on germanwings. caroline hyde is following this out of the london news bureau. we talked about heathrow and the changes for europe. i would like to know what this means for regulators with your up. is your reporting

that everyone is in this together or a disparate set of regular asian groups? -- regulation groups? caroline: they're calling together different groups to maybe take a leaf out of your book in the u.s. some airlines had already been doing it -- the likes of island has been leading the charge. suddenly we are seeing other airlines canadian airlines now imposing that two people must be in the cockpit at all times. we understand that the u.k. regulator is discussing with the european regular whether this should have been imposed immediately. the german aviation association is talking to the airlines lufthansa among them, which owns germanwings, at the heart of this crash. brendan: caroline it is very easy to look back with hindsight and say of course there should be two people in the cockpit. why is it that european carriers did not do this when it was a step that all american carries had taken?

caroline: jury is out on that one. they said it was up to the airlines' individual decision as to whether to have two people in the cockpit. many people are debating whether it would of had helped. s a male copilot. urely if you have been a female or some and so set on his path could overwhelm them anyway. amazing statistics coming out from one company tracking what happened in the fact that just four minutes after they hit the cruising altitude of 30,000 feet, suddenly this deposition by the copilot to take it down reset it to just 96 feet, and the fear and the vulnerability that ensued. tom: caroline, thank you so much. caroline hyde from our london news bureau this one. -- this morning. howard is a modest, modest owner. he is invested in --

meerkat, is it? meerkat and periscope. all the rage in the last 24 hours. all that pushed aside by women's wear daily's comment on amazon and mr. bezos and net-a-porter. we need to get up to research speed on this. the valentino minidress, $3490. i need the samurai cantilever -- st . laurent cantilever sandals. have you ever shopped on net-a-porter? howard: no, sacredness. my wife doesn't have that -- no, thank goodness. my wife doesn't have that expensive at case. tom: this is the further digitalization of our life that mr. bezos has led for 20 years.

howard: they are doing this for a reason. as it is breaking, i have not thought quite through this. brendan: when he acquires, he also acquires ideas and talent. he did that to learn how could they are doing. it cannot just be that he is acquiring a catalog, because that is easy to do for amazon. howard: no, this is interesting. i've been talking about amazon for such a long time about how they took this prime and locked down the female audience. women will go for the extra click to find a cheaper item and prime district that whole thing away from them and we have amazon people showing up at our house everyday dress as fedex and ups people. amazon is in our life everyday and he must feel a need -- maybe there are better margins here --

tom: it is an elite audience. they go after fancy kitchenware williams-sonoma, but here, it is fashion. green territory for them. brendan: we get diapers and milk from amazon. we're a different kind of audience. we're going to wait for another stage of my career before that happens. howard, i want to talk about blackberry. tom broke the news about earnings. i always thought john chen did a good job of saying if you can't be with the one you love hardware, love the one you are with software. howard: you were not just getting beat up by apple, you're getting beat up by droid. it is number three, and in china you have one that is going to give apple and android

themselves a run for their money. there is great talent in bloomberg -- brendan: you mean blackberry, not bloomberg. howard: did i say bloomberg? brendan: just want to make sure everyone knows, bloomberg is fine. tom: four children sa -- part chilton sat here. the first blackberry fancy phone i have seen in six months. are they in the phone business still? howard: i really can't tell. brendan: we will talk about talks in the samsung headquarters and in switzerland. are leaders on the verge of a deal? we go live back to switzerland. ♪

tom: we have traditional technology on the roof of our skyscraper. stormy morning in new york. stormy morning of innovation. howard lindzon and i on dueling periscopes. howard: 64 people. tom: howard has totally hit twitter -- there are seven deadbeats watching mine. brendan greeley with that chart.

brendan: howard and tom are doing dueling real-time nielsen ratings to see was more popular and entertaining. like a dystopian vision of the future. tom: it is tom:is! howard: my ratings dropped during the future. howard:brendan: i want to talk to you about facebook. in 2013, facebook was still kind of make an equity google to see who would get the ad -- kind of net and neck with google to see who would get the ad dollars. have we discovered that social is better than search? howard: you have a global thermonuclear war. facebook executing flawlessly around the mobile phone. the company you not mention his snapchat. they are microsoft for kids phones. full on operating system. you have four facebook apps. you look at that one yellow cast

for the family goes, -- one yellow capser the friendly ghost, it is snapchat. it has become the whole operating system. facebook is going to be competing very soon with snapchat for those dollars. google, on the other hand has that much higher intense urge. tom: you have been an expert on this for years. of note is in the six weeks of change, the google zeitgeist in the media. how -- is there a mystery there as to why we were one out there for morgan stanley? -- pour oenne out there for morgan stanley? howard: google is a that are bank then goldman sachs

could ever be. they can invest all the greatest company's. yes mark zuckerberg and sit on the throne and that the best companies brought to him. twitter offered 6 million for this, are you ready to bid? brendan: i got to jump in here. we are going to a very real one. twitter question of the day. ♪

tom: good morning, everyone. "bloomberg surveillance." olivia sterns demanded to take the day off. weeee gave it to her. brendan? brendan: investigators want to know white adverse lubitz plunged to that plane into the alps. investigators believe he locked

the captain out of the cockpit. investigators are telling a german newspaper that they "made a significant discovery" searching his home. officials say that an invasion of yemen is in the planning stations. egypt and saudi arabia want to send in troops. the royal bank of scotland is the latest to leave the swiss wealth market. no terms disclosed. bank of america and morgan stanley have already pulled out of switzerland. tesla is showing signs of weakness in china. they dropped 269 from 459 in february.

it is down from the hundreds per month during last year's fourth quarter. silicon valley is still a man's world. in your report says that the gender gap at the giant tech firms is widening. the figure is little changed since 1960. the ranks of black and other minority women in the industry are lower drastically lower. dean smith is still giving to his players even after his death. earlier this month, his trust sent out letters to each former player, about 180 players in all. each included a $200 check and a message, "enjoy dinner out." those are your top headlines. tom: 7:30, turning point in the markets. we will review market activity. ; 35, we continue our discussion

of the 10-nation coalition led by saudi arabia. with howard lindzon later in the hour we will look at periscope and meerkat, in which he is a modest investor. brendan: in switzerland diplomats say the u.s. iran, and the rest of the world powers could agree to some type of agreement on iran's nuclear program by sunday. bloomberg's in your election on has always been the person to explain diplomacy -- indira lakshmanan has always been the present to explain diplomacy to us. what is the significance of these newest hopeful leaks from diplomats? indira: look, both the iranian side and the americans that are saying that they have made more progress in the last week of talks and starting yesterday then they had ever made provisional deal in november 2013, which slowed down iran's

nuclear progress in exchange for limited sanctions relief. they are hopeful they will get there by the self-imposed end of march deadline. nothing short this point, and there are several serious gaps remaining between the two sides. brendan: indira, has the deadline sharpened their focus or is something driving closer to a deal? indira: i think both things are true. this deadline was set as a way to focus attention on the end of this month to give both sides an opportunity to get to a framework deal so they would have three more months until the end of june to actually work out the technical annexes, which can come to 50 pages or more in length which would lay out exactly what iran would need to do over what time and what kind of sections relief they would get in exchange. both sides have used the analogy of it being like a rubik's cube that you don't have the whole

puzzle until everything comes together. even if you agree on some parts you don't know if you are going to get the whole. the other element is political pressure both in washington and tehran about the deadline. if they do not reach the framework agreement by the 31st, we know very well that the u.s. congress is going to come out with new sanctions on iran was an attempt to force the president's hand, giving an up or down vote from congress on any deal the president tries to come up with. brendan: indira, let me understand this correctly. congress is playing bad cop, and it is working? indira: [laughter] [applause] i think that is right brendan, they have lit a fire under the obama administration, saying that if you don't make your own deadline, we will make things harder for iran. there is a camp that believes the only way to get a good deal on iran is to increase rather than decrease the pressure.

the obama administration police that adding more sanctions would cause talks to fail and the international coalition to collapse. we are looking at some serious remaining gaps between the two sides over verification, enrichment, sanctions relief. if they can come together on that, at least in the form of a framework, that would give them a few moments to work out some details on the length of the long-term deal with inspections. brendan: indira lakshmanan thank you as always for solving the rubik's cube for us. tom: we have the saudis going after the shiites in yemen and we are with iran in iraq and having the stocks. do these events sharply affected the talks? brendan: i'm beginning to think there is a massive shift underway and it makes me think about the great "new yorker" piece about how iran wanted

detente in 2001 and we may be reaching it. ♪ brendan: you know where else you can get

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switch now and get the fastest wifi everywhere. comcast business. built for business. tom: let's migrate to the bloomberg terminal and do something that howard lindzon has absolutely no clue about. i decided to a friday vanilla chart. it shows that this may be felt like a turning point.

euro-yen. this is the euro compared to the end. you have a stronger yen and weaker euro. see the yellow line? little curve down. trend of a weaker euro even though we have a one-week respite. brendan: the way to think about this chart euro-yen is competing abenomics. fiscal stimulus -- japan is doing that, europe is not. structural reform. europe is kind of doing it japan not really. tom: and there is currency war but it is more monetary policy more. brendan: what country can get structural reforms right -- tom: excuse me. i do agree -- i rarely

editorialize, but i will say -- brendan: [laughter] you editorialize all the time! tom: i rarely do. some piece of this should not be until we come to the last friday of the quarter. we go to the top headlines, and he will not editorialize. seriousness in germany. brendan: breaking news come he editorializes all the time. investigators are trying to figure why address lubitz crashed the plane into the mountain. he was the copilot of the plane that crashed into the french alps on tuesday. investigators believe he locked the copilot out of the cockpit and intentionally crashed the airplane into the mountainside. officials reportedly tell a german newspaper they have "made a significant discovery," but investigators say the search continues for answers. >> we have searched the

apartment for clues and other indications as to why the pilot could have done the deed. brendan: moments ago, spokesman for the interior ministry says there is no indication lubitz had terrorist back on. -- macro. tom: they seized medical documents a moment ago. brendan: and plays from saudi arabia and regional allies are bombing shiite rebels in yemen, backed -- and the rebels are backed by iran. they are expected to get the ok from the arab league tomorrow. the fighting is turning into a proxy war between iran and saudi arabia. the rebels are storming south in a bid to secure their hold on the country. american airstrikes are helping and hurting the operation to retake tikrit. coalition planes flew a second round of bombing raids. iraq after the air support tries to recapture the town that the american role is angry shiite

fighters. thousands of militiamen are boycotting the operation. government troops are moving towards center of the city. tikrit, saddam hussein's hometown, has been held by the islamic state since last summer. the senate polls and all lighter and pushes a budget plan through. they adjourned a few hours ago after passing the plan at 3:30 a.m. it was passed on a partyline vote. the plan would repeal obamacare and cut benefit programs. it starts what is sure to be a long battle between president obama and congress. new figures are showing the depth of japan's economic slump. the country's the inflation rate is now zero. thank officials expect to hit their inflation target, to present, but economists surveyed by bloomberg expect another round of monetary stimulus. tom: an american astronaut will leave earth today for over a year -- excuse me, almost a year. mike kelly will write the rocket

to the international space station and is scheduled to stay in space for 342 days, twice as long as any u.s. astronaut is ever stayed in a space station. one of them plans to stay in space again for about a year. we have headlines out of dusseldorf. you have been reading them off the bloomberg terminal on they are most distressing. brendan: the key is was andr lubitze sick? it appears what they got was an actual physical written evidence that there was some type of psychological illness, but we don't know what it was. tom: the story continues and it no doubt through the weekend on mr. lubitz. let me do a data check on friday. as i've been saying all morning, subtleties to the market. the euro is weaker 110. number of strategists are calling reversal from what we've

seen last week. west texas, $50.64 a barrel. yemen having little effect on oil in the last 18 hours. futures churning here this morning. good morning, everyone. "bloomberg surveillance." i am tom keene. with me, brendan greeley today. it is not funny, as syria continues a self implosion sunnis battle shia. saudi arabia bahrain uae, and most south of the arabian peninsula. it is enough to be confused and one -- make one you're for the sympathy of peter o'toole and omar sharif dashing off to autobahn long ago and far away. elliott gotkine is reporting from tel aviv.

iranian heads must be spinning over the politics, and is brendan greeley mentioned earlier, the reemergence of the arab league. how does israel perceive what we see in the middle east this weekend? elliott: i think what we're seeing right now tom merely serves to underline that some of the things that prime minister netanyahu was talking about when he came and gave the controversial speech to congress in the mist of the election campaign. we don't actually have a new israeli government just yet so we are not exactly getting the ministers lining up to say certain things. i think it is just more evidence that look, you are criticizing us -- this is what prime minister netanyahu presumably would be thinking -- that israel is being criticized for not making peace with palestinians and not handing back territory that was conquered in 1967. every time there is some kind of vacuum jihadists for rebels or insurgents get in there and make matters worse. when you are in this region

israel will again point out that this is the only beacon of stability in this region when purdue much all of these other countries around it are imploding. tom: elliott frame for us -- you are good at the backstory in israel. frame for us the dialogue between israel and the arab league and particularly the relationship with egypt right now. is there any back-and-forth visible or less visible? elliott: i don't think there is likely to be any visible helping or cooperation between israel and its arab neighbors particularly at a sensitive time. as far as egypt goes from the israeli government's perspective it must be content to have president sisi there, was a strong ally of israel and also battling with islamist rebels in the sinai peninsula. islamist rebels are not only threatening the egyptian

government of threatening israel. as far as the arab league goes, there's not much toing and f roing. in exchange for members in exchange for israel signing a peace agreement with palestinians was proposed by the saudis some time ago. possibly that might be reemerged at some point. i think israel is really staying out of this right now. they don't need to muddy the waters right now. tom: one final question, mr. gotkine. the idea of the red sea shutting down. some of us can barely find it on a map. what is the effect upon israel if the red sea was to shut down up to the suez canal? elliott: well, of course, israel does have a port on the red sea and is a fair amount of trade coming to and from there. i should note in the last two minutes, pimco, the largest maritime shipping organization

in the world, has said there is no indication of any yemeni -- any disruption to shipping through the strait up and down the red sea. tom: elliott gotkine, thank you so much from tel aviv. much more on this today from bloomberg television and radio. brendan: i'm looking at a press release coming straight out of the public prosecutor's office in düsseldorf. they are saying they have searched the home in düsseldorf of the copilot, andrea's lubitz. they did not find a suicide or goodbye note. what they did find is evidence of a current illness that was being handled by doctors. we are looking at our current prescription lots of evidence that this is an existing illness . i'm trying to figure this out as we go along. tom: many headlines that we will piece together. much more from düsseldorf and

germany through the hour. also coming up, a conversation with howard lindzon on american technology. it is beautiful in new york as we come into the last friday of the first quarter, 2015. ♪

tom: breaking news here in new york. brandon really -- brendan greeley following the story of the horrific experience in germany. give us the headlines before we speak. brendan: what we are looking at right now is a press release from the public prosecutor's office in düsseldorf. they have searched andreas lubitz's house -- that is the copilot of the germanwings flight. they did not find a suicide note. what they did find was prescriptions for some kind psychological illness. they also found a slip of paper that was a sick note for a period of time. we have internal documents that were forwarded by lufthansa's para medical center to german authorities. i'm reading from translation

here -- lubitz had suffered from depression and anxiety. he suffered a serious depressive episode and suspended training for six months. tom: let's back up and be very careful because we are not in the business of speculation. this is, as you say, a tabloid. it is not "der spiegel." but they are suggesting some form of the company knew of this illness? brendan: that is what is at stake right now. they know he interrupted his training for six months. lufthansa has not said why. what is at stake is the possibility that if lufthansa new -- again, this is pure speculation -- possibly didn't handle this right then we think about responsibility differently. tom: you spend so much time there -- brendan: lufthansa is a rocksolid part of the german identity. it is hard to describe how much

this event has gripped germany. it is all they are talking about, all they are writing about, flags at half mast all over the country. angela merkel has traveled to the scene of the accident. this is all that exists in germany right now. everybody's watching images of public prosecutors going in and out of the dusseldorf form of andreas lubitz. tom: is there an american equivalent to lufthansa? it is a national -- brendan: it is -- tom: it is a pan am equivalent to you are too young to remember. brendan: no i member pan am. it is a national champion. also, lufthansa is such a simple of the german economic miracle. you can see in the german airports the pictures of lufthansa having started with two planes in 1955, and look where it is now. symbol for the german economy as well. tom: two days in a row of most difficult headlines.

we will have more coverage on this, particularly from our european team, through the morning on bloomberg television and bloomberg radio. that we attempt a data check. 2% on the data no. 1.98%. back about 1200. churn to the markets this morning. futures negative two, dow futures -21. stay with us as we look at washington. ♪

tom: let's get to our top headlines this friday. here is brendan greeley. brendan: the copilot that crashed the germanwings plane was suffering from mental illness, according to "der sp iegel." investigators are looking for more clues as to why andreas lubitz plunged to jet into the german alps on tuesday. investigators believe he locked the commander out of the cockpit and intentionally crashed the airbus a320 into a mountainside. an invasion of yemen is in the planning stages. saudi arabia and regional allies are bombing shiite rebels there. the rebels are backed by iran.

also crossing the bloomberg terminal, two cousins are under arrest in suburban chicago. prosecutors say they plan to attack a military facility. one of them is a u.s. national guard soldier reportedly vowing to bring "the flames of war" to america if you cannot get to the middle east to join the islamic state. legislation signed by indiana governor mike pence is drawing criticism this one. the religious freedom law is set by opponents as a license to discriminate against gays and lesbians. the final four will take place in indianapolis. chairman correll is calling on minority shareholders to accept a takeover offer for an italian tire maker. he describes the offer is fair and says that counteroffer as stiff-arm out. pireli want to quickly thank the bloomberg employee who told me

how to pronounce that correctly. ruth porat will get $70 million after she joins morgan stanley in may. all of that is on top of a $650,000 annual salary. those are your top headlines. tom: the new slogan continues -- the news continues this money. he has been ill with an eye ailment. harry reid, minority leader in the senate, one of only three jim and to be senate minority leader for eight years, will not seek reelection. that according to "the new york times." quite ill recently with an eye ailment. harry reid -- whatever you can say about the gentleman from nevada, eight years as minority leader. brendan: harry reid has had a

long decade in the senate and as seen a lot of changes over his tenure as majority leader. ok, from the salon to the ridiculous. jimmy fallon, l rucker -- al r oker, and jared leto are among the celebrities using meerkat. it is all anybody could talk about at sxsw. investors are keen on the company. tom: howard lindzon put $12 million in this? howard: on a tuesday afternoon. brendan: but there is a competing product. twitter released its rival, periscope. that is all tom has been doing for the hour. howard lindzon has tried them and is an investor in one of them. we tried this years ago. why is this going to work now? howard: we have a perfect storm -- depending on how much time you have -- the iphone 6 plus there by mr. keene.

when it came out and we were slaves to the desktop world. but now we have these great phones. we have much better bandwidth. and now you have twitter, which is a social graph. brendan: better processors -- howard: better screen. better stabilizers in his cameras, better semiconductors. add to that the twitter social graph, which is a real-time social graph. that is a potential start for a video product. sports, finance news, personality. we are getting tired of seeing the same celebrities do everything else. this will be the rise of a new type is engaging and can do fun stuff and has an interesting life and can live stream. these companies have breezed a whole new sector of energy into this social world. it is pretty cool. tom: should tv be afraid of this? should we be afraid of this? howard: bad tv is that tv.

tom: bloomberg breaksclusive therefrom howard lindzon. howard: if they don't know how to do tv, sticking your cat in front make it worse. -- sticking meerkat in front makes it worse. but i could do a financial show right from iphone. i've tried all the different products, from google hang outs to skype. we have talked about skype -- it is a crapshoot, excuse me whether the video will work. it is all package right here. brendan: what this makes me think of is the appeal of "men in blazers" on nbc, new sports show. very low fi. it feels like they are doing it in real time as they think it up. the low production value has great appeal. one of the things we have seen on youtube is the power of things that actually happened.

trick shots that you can see happen. that is what we will see on meerkat. howard: i have always wanted to have a financial show. you have the schedule, you had to get wi-fi in your office or the power to do that. now you can schedule 5:00 every day, i will have a special guest, i will do this. if you keep showing up to your audience will keep showing up. tom: the first thing i inc. of the threat to youtube has to be off the charts. the kids doing the makeup -- this has got to be keller. -- killer. howard: well, that is timeshifting. youtube is very deep. when your kid sits down to do what they want to do, they still go to youtube. this is part of that media cycle saying youtube is dead. youtube is strong, very strong. they have that library of great content. and it is easy to search. search is important where everything is lifestreame --

livestreamed. brendan: tom, you missed the headline. howard lindzon just said he has always wanted to have a financial show. youtube should not be worried. you should be worried. tom: i am always worried. howard: it is not the same type of show. i don't think about macro and i don't think about europe. i think about american companies. i could go to create a show from iphone with no actors and no staff. the show would be a little different because i'm not a celebrity or an actor, but i can create a roth show every day at 5:00 when i want and it could be funny, it could be different -- tom: please come back. this has been a lot of fun. brennan -- brendan we have got to go back to the headlines. these are the actual headlines on the bloomberg terminal. brendan: there is been a flood of reporting out of dusseldorf.

prosecutors say they have searched the apartment of andreas lubitz the copilot of the germanwings flight that crashed. he did suffer from what we think is depression. that is not from the public prosecutor's office. that is from reported from a newspaper in germany. there is evidence that he had a current sickness. did he hide his illness? do we in fact know? we don't have official confirmation that he suffered from depression, but it he suffer from depression and did he high that from germanwings and lufthansa? tom: beyond the immediate headlines as we heard from caroline hyde, there is no length of time. there has to be immediate adjustment airlines for the confidence of the public. brendan: and this is what has happened in the u.s. you always either have flight attendants or attorney in the cockpit. in europe, they didn't do that.

ryanair didn't do that. you had norwegian air -- tom: give us a snapshot -- norwegian you. brendan: norwegian air is a relatively new, low-cost airline which is made inroads on what used to be ryanair's exclusive market, cheap flights to secondary airports, places like frankfurt han instead of fractured international in germany. you have all these low cost carriers in europe. within the space of two days they've changed their procedures and always have two people in the cockpit. already a change to that industry. tom: thank you this week for your terrific perspective on europe. it has been more than valuable to say the least. we continue this story through the morning. betty liu on bloomberg television. mike mckee and i will continue on bloomberg radio as we see continuing headlines out of europe. we leave you with features negative one. dow futures, -18 as well. the 10-year yield.

a rainy day here in new york city. stay with us on television radio worldwide. "bloomberg surveillance." ♪

betty: good morning. we are alive from bloomberg world headquarters. you are in the loop. and i am betty liu.

we've got through this week. we have a packed show ahead this morning. starting on the markets -- we may be on the track for the worst start market watch -- stock market which but you are believe that it is great against the average joe. that is according to the ceo eric knoll. eric knoll will be joining me in just a few moments. scott is my cohost and ceo of keep holdings. the verdict could come any day now on whether the rising venture capitalists was really a victim of gender discrimination. edges you ever wish that you could test out the shower had a cookout on a stove before you buy? it is all part of a new retail experience by a company that is doing to what appliances that apple has done to smartphones making you want