get america's fastest internet. only from xfinity. francine: brent hits the 50's as u.s. inventories slide. the guestry and on list, china topped the agenda in the g-7 summit. the hedge fund hits the $2.9 trillion industry. that's a warning from blackstone. welcome to "the pulse," live her e in london. i'm francine lacqua.

we are seeing a bit of the diversions in asia. aisasian stocks were higher. europe a little bit slack. above 50.at what it points to is the imbalances we saw in the oil markets being ironed out sooner than expected. sooner than the iea was thinking. now let's get straight to the bloomberg first word news. $2.9 trillion investment industry may lose. dayays the industry faces a shrinkage.

the e-commerce giant is being investigated by the sec. at datalator is looking reported from the company single day promotion, the biggest shopping day, and how the firm consolidates results from affiliated companies. alibaba declined to comment. hillary clinton's of a private e-mail system did violate state department rules. that is the conclusion of report by the inspector general who republicans an additional line of attack against the front runner as the election campaign gets underway. businesses have warned of economic damage if protests in france continue. strikes of the country's refineries and railroads are set to intensify today after the government refused to back down on the labor law. six of eight refineries on strike and the union has called

for electrical workers to walk off the job today. meanwhile, the national railroad entering its eighth week of protests. global news 24 hours a day powered by our 2400 journalists in 100 50 news bureaus around the world, you can find more stories on the bloomberg. -- in 150 news bureaus around the world. francine: g7 leaders have agreed to work together on issues speaking in japan. the companies cabinet secretary says china's glut was discussed. in japan at the g-7. so, china is on the agenda but not on the guest list. what more was said? not on the guest list and no seat on the table but we are hearing that these early warnings that came from the u.k. prime minister david cameron as well as the european commission president jean-claude uecker are addressed among g-7 nations.

we just heard from the chief cabinet secretary moments ago preferring reporters about his discussions going on for two hours and saying that, yes, steel was a topic that was discussed. agreed to work together to address overcapacity which leaders have stressed have taken a toll on its own steel industries. japanese authorities say the prime minister proposed flexible fiscal policies as well as structural reforms. what was not discussed is monetary policy at the g-7 as well as no discussion at the summit on exchange rates. japan proposed talk about sales tax increase. a very different conversation we are hearing coming out of the leader summit from what we saw last week with a finance chiefs, when we saw the friction when it policy between

japan and the u.s., talking about currency intervention. jack lew saying he did not think the recent moves in the yen showed on a disorderly movements quality, whereas the finance minister talking about how one side is speculative. a flexible approach to fiscal policy. primes what the minister is stressing. no response from the other g-7 nations on that approach. francine: are we expecting anything different from what we had from the finance chiefs? pan, discussing the global economy. they are talking about risks and problems firing up at home. >> yeah, it's interesting that -- we talked about how monetary policy central bank governors are losing their analysts. the piling up of european challenges, yeah, as much as european leaders do not want to talk about the issues it seems

like they are rearing into some of these conversations, to brexit. geopolitical risk in homegrown terrorism as well as a refugee crisis. withsay they are dealing problems at home, which is anderson because leaders at the summits are seen as the dealmakers or the solution makers -- which is interesting. but they are dealing with so many issues domestically, it why bothertime, of should they be coming to japan right now? david cameron travel 28 hours from the u.k. to japan. he could've used that time to possibly rally more support on the remain camp when it comes to the e.u. referendum weeks away. also from angela merkel, she is trying to put a lid on this refugee crisis, which really has dampened the support from her own party. a very interesting topic. but yes, those issues still very playing much here at the g-7 and

at home in europe. francine: thank you so much. i know it is quite a way to get to. they do this kind of thing for g-7's. now let's introduce our guests. she is sharon bell. at goldman sachs. thank you for coming in. when you look at the g7, four or five countries are made up of europe. a dealt with greece in correct manner last year that we would be away from it that we have one more problem. >> the big problem is a lack of growth and lack of inflation. in the headlines, since we have deflation in europe at the moment. so, we have very little pricing power for companies. the ecb has eased policy. not yet buying corporate bonds that they promised in march.

we will see that in june. but yes, europe still has as much problems. talking about fiscal policy being talked about at the g-7. som e easing would help in euroe as well. francine: what does it mean for european equities? we were talking about the euchre plan. -- the juncker plan. moves quite slowly. and that frustrates investors as well. to be fair to europe, we have a few years ago europe was in recession. now it is at least growing. somewhat the deflation all thing in europe is caused by lower oil prices. now oil prices back about 50. eventually that drag on inflation which has been so negative. to disappear. and europe has got some -- there are labor market reforms in different countries going on at the moment. we see the problems in france, for example, but there is some -- going on.

yeah, infrastructure would also help, too. but it takes sometimes. francine: are a lot of european companies healthy? because of the weakness in the euro it has given a boost to exporters. sarah: the euro was down closer to 1.10. that is certainly helpful. everybody would like their currency to fall. that's one thing that is helping. another thing that is helping, too, is europe has lifted itself out of recession. you have got global growth. not as strong as many world leaders would love but growth has been improving the last couple of years relative to where we were when europe was in recession and we were worried about the problems in greece. have got a reasonable amount of cash. european companies have not levered up. they can access the bond market at low rates. the ecb will start buying their

debt soon. all of these things are reasonably supportive. francine: thank you so much. sharon bell from goldman sachs stays with us. we will talk more about european countries next. plenty coming your way, including two to three hikes, the consensus of many commentators to how many times the fed will move this year. we will get more from sharon bell. bubbles above $50 a barrel, it is up 80% from its low's. and on the agenda but off the guest list, that is -- as the world leaders meet in japan, we bring you more analysis on where china is dominating the agenda at the g-7. ♪

francine: let's get straight to the bloomberg business flash. nejra: embattled airbag maker kkrta has held talks with . earlier the company's shares surged by the daily limit as kr's interest emerge. a spokeswoman for toccata said she could not comment. -- takata said she could not comment. u.s. regulators ordered the replacement of 40 million more airbags. borrowers and investors across the gulf region are adjusting to in lands -- a new landscape. qatar sold $9 billion of euro bonds. the deal brings sales from the

region to almost $30 billion, as energy exporting nations borrow on the international market. hases in banco popular plunged after the spanish lender said it would raise by selling new shares to the company plans to use the money to clear failed real estate assets and restore probability. for yahoo!de a bid according to people familiar with the matter. it has previously been thought the telecom giant had decided against making an offer. shares in yahoo! fell 5% yesterday. at&t was little changed. that is the bloomberg business flash. francine: thank you so much. everything you need to know about today. two to three hikes the year, the first will come in june or july, that seems to be the consensus from fed speakers. one of the factors that could

derail the june hike is a vote in the u.k. >> our meetings are june 15. 23rd.exit vote is the some amount of tail risk, destabilization. we will have to make a judgment as to how big a factor that is going to be in us being able to make a decision. francine: for more on the fed height, let's bring back sharon bell, a senior equity strategist at goldman sachs -- for more on the fed hike. is it because they are trying to talk up the market? the market is not quite believe a june hike. sharon: the fed does not want to surprise the market too much. if they think there is a chance they may do in -- go in june, they want to speak to that before had. you might get big reactions and volatility in stock markets or in bond markets, and they certainly would like to discourage that. francine: i made a sharon chart.

there you go. this is basically showing, this is a spread between u.s. two-year and 10-year. the lowest, at level since we had, since 2008. what does this tell us? about howthink it is skeptical people are. when the fed is raising rates, how much they will be able to do. the impact it is going to have on broken inflation. people are skeptical if there is any real inflation coming through at the moment. and how quickly they will be out to raise rates. in previous cycles, the fed would've raise rates every quarter by 25 basis points. nobody is expecting that kind of steep profile of rate hikes now. it reflects it is tough for the fed to raise rates, as we were discussing. still seeing very low deflation, if not deflation as opposed to japan and europe. it is reflection of all those factors. francine: if the dollar goes off

with some kind of tightening for the fed anyway, although it is not monetary. if the fed hikes rates sooner than the markets are expecting, does it make mario draghi's job easier? sharon: his job is really tough. anything that makes it -- i'm sure he would like, on a relative basis, he would love to bring the euro down. the way to do that would to have rates lower in europe or falling faster. it is tough for him to cut interest rates. they are already in negative territory. it is also tough for any savers. he's reluctant to do that. therefore, the other thing would be for the fed to raise rates. of course, that is out of his control, but that would certainly have, a falling euro would be one part of the mix of things that he would like to see to see europe recover. but i think it is one part. you mention -- infrastructure spending, some fiscal easing which we are they are talking about at the g-7. francine: it is slow.

it seems that monetary policy and europe is the most -- bearing all the burdens, like atlas with the weight on the shoulders on their back. how do you invest in this kind of environment in europe? sharon: i think it is tough. asset allocation business, we moved our equities down to neutral recently because we found that there is very little growth around in an environment where you're paying a high price for equities. in europe, it is about 15 times, which is not cheap historically. you good perhaps in what can get another asset classes because they brought rates down so much. negativeetting zero or yields on alternative assets. that is why people are looking at equities print the growth is minimal. it is tough the. buying corporate bonds change anything? to we look at this and say, this is testing the limits of monetary policy or say he's getting pretty desperate? sharon: i do not see it as a negative.

i see it as a positive, for sure. i think that they still -- will ,entatively buy in june corporate bonds, i think is a good thing. the whole point is to -- take on more debt, encouraging companies to invest. economic philosophy standpoint, i think it makes a lot of sense. but, of course, the problems in europe are not just ones which can be solved by this, as we discussed. there are things that you need more broad policy reaction. it is not just something that mario draghi can do. francine: sharon bell from goldman sachs. we will talk a little bit about oil next. we also have the chart of the hour. brent crude trading over $50 a barrel for the first time in six months, as u.s. oil stockpiles dropped more than forecast. that will be our chart of the hour coming up next. ♪

francine: welcome back to "the pulse." emergency mark -- emerging-market currencies -- topping $50 ade barrel. rejoining us a sharon bell, from goldman sachs. we have our chart of the hour. this is what we looked at what we came into the newsroom. this is the spread between high energy bonds and treasuries. a sickly this red line -- bas thely this red line is

distress level. anything below 10 basis points, means they are healthier than if it is at, for example, 1.8 or something like that. this is oil at $29. and this is oil at $49. us? does this tell a lot of companies which may go into administration but are at distress level, get an easier time if oil goes back up? sharon: oil prices doubled over this period. it's a short period. in thel prices were earlier mid-20's, people worried about them going lower. the risks were incredibly high. we did see a lot of disruption in the high-yield market in the u.s. this distress has come out exactly is the oil price has risen. francine: what is your take on oil companies? oil majors are some of the smaller ones? are we going to be stuck in a range of 45 and 55?

medium-term,the around $50 or $60 a barrel, that will be the marginal cost for a shale producers to come back online, etc. that is the marginal producer is sshahale. in terms of european oil majors, they would love oil prices to be much higher than that, but at least they are not back at $20 or $30 a barrel it for europe, i-9 thinking of european equities broadly, they have been hit -- and i am thinking of european equities broadly, they have been hit -- in the energy sector. if you get less downgrades, that would be helpful of earnings. francine: there has been a correlation which one can understand if oil is benchmark for world growth. but this time we were told it is an oversupply. how do you explain a very strong correlation between the oil price and european equities? sharon: it is probably mixed up in lots of different things. prices, when they

got very low, people were worried it was telling us something about global demand. also, the big problem is we just got through deflation and lower oil prices create even greater risks of deflation for europe. again, i think a modestly higher oil price at this level, i think someone previously on the program said that oil prices around $50 is a sweet spot. i would not disagree with that. from the oil sector perspective and from the perspective the european companies, european businesses and the economy, if oil prices go very high, consumer oil -- that will hit them as well. if oil prices fall again, i think it is worrying, volatility in the global economy. debt holders worried because a lot of the energy spaces issue debt. it becomes a concern. and it becomes a concern for inflation. francine: away from automakers, what are some of the industry groups you like? you are mentioning media. dollar rally.

sharon: if the dollar does more fed ratesome hikes come through, and it does mario draghi's work for him, then i do think it is interesting to look at some of the factors with a lot -- sectors with u.s. exposure in europe,. things like house care would be and that group. media would be in that group, but there are lots of sectors and lots of companies which have exposure to the dollar rising and the euro coming down. i think it would be helpful for european equities. francine: and that will happen? is it a 50-50 chance? currency markets are becoming so volatile that we cannot even called the beginning of the dollar rally just yet. hason: to be fair, the euro already fallen in the last couple of years. it has already happened, but it can happen a little bit more. again, it's francine: very dependent on the fed. francine:thank you for joining us. joining us for the

first part of the program. up next, u.k. gdp, the second reading for the first quarter. all eyes in consumer spending and also investment ahead of the brexit vote. ♪ okay, ready?

whoa! [ explosion ] nothing should get in the way of the things you love.

♪ get america's fastest internet. only from xfinity. francine: welcome back to "the pulse" from the european headquarters in london. just getting breaking news from g.d.p. it is a second reading for the first quarter at year on year, it's been revised down a touch, 2%, something that's come in a little bit better than we had expected as private consumption. i hope it's not too confusing but 0.7 instead of 0.5 we were expecting and has been revised

upwards. this is a picture per pound, 1.4 at 7.20. these numbers probably will be politicized. we're four days away from the u.k. referendum. let's get to the review. >> the hedge fund industry may lose a quarter of the assets the next year as performance slumps according to the blackstone billionaire president and he says the industry is having its worst start to the year since the global financial crisis faces, quote, a day of reckoning and shrinkage that will be painful for a lot of places. alababa shares have fallen the most after the giant says they're being investigated over the s.e.c. over the accounting practices and whether they violate federal laws. the regulator is looking at data reported from the company's single day promotion, the biggest shopping day, and how the firm consolidates

results from other companies. hillary clinton's use of a private email system while she was secretary of state did violate the department rules. that's the conclusion of the report by the agency's inspector general and will handle an additional line of attack against the democratic presidential frontrunner as the campaign gets underway. businesses have warned of economic damage as protests in france continue. strikes at the country's refineries and railroads are set to intensify after the government refused to back down on a labor law. six of france's eight refineries are on strike and the union has called for electrical workers to calk off he -- walk off the job today including 19 nuclear plants. the international railroad is entering the eighth week of protest. global news 24 hours a day in more than 150 news bureaus around the world. find more stories on the

bloomberg app. francine? francine: markets slightly higher. let's head over to mark barton for the asset check. marc: a little low since the two-day gain in february. these are the groups on the stock exchange 600. ought as, industrial goods, construction leading the gainers, banks, financial services and media declining today but a big two-day gain. biggest rally in three months. crude is past $50 a barrel for the first time in six months. this is the 12 months. the yellow dotted line is the 50 barrel level. u.s. stockpiles accelerating after a rebound of a 12-year low. global disruptions trimming the market and u.s. industry with 4

million with an expected drop of two million barrels. gold is rising today after a six-day drop. this is the seven-day performance of gold in that period and has fallen by 4%. a rebound in gold has come cropper as the dollar strengthens. u.b.s. says gold could a take a tumble. the federal reserve opts for two rate increases before the end of the year. and according to ubf, some people will get caught on the wrong side, goal will roll over and fall back to 1,150 and be ready for more weakness in the short term. really quickly, after the g.d.p. data, .4% in the last quarter. i want to look at pound dollar, implied volatility telling you the expectations for volatility for swings in this exchange

rate in the month period. and as you can see today, we've seen a massive move upwards. 5%age points from 11 to 16. that's a 50% jump almost which is the most since 1998. that's interesting because it comes as the pound itself rises to the highest level since january. it's up 6% since reaching its 2009 low on february 26. and it comes, francine, after further good news for michael ashcroft in a poll that says almost 65% of voters believe it will remain in the u but concern still remains, under a month to go before the referendum. volatility. look at that. massive, massive swing. biggest percentage swing, francine, since 1998. that's astonishing. francine: thanks so much. mark barton with pound/dollar

with the other currency we're watching. let's talk china as the country's economy makes headlines. ross says he's interested in buying -- speaking to bloomberg, he said they could be an opportunity. >> getting very interested in china in terms of the distressed loans. the government has anountsed that they're trying to develop program to secure ties to distressed loans there. now, if they do that with transparency and with reasonable pricing, that will be a very good help for the chinese banks and will create an opportunity for people like ourselves. francine: let's talk more about china and the g-7 meeting. the head of research joins us from hong kong. thanks for joining us. always a great pleasure to speak to you. seems that china is in a bit of a sweet spot at the moment. sure, they're talking about the g-7 but in terms of the stock

market, it's pretty stable and seems to be a lot more communication between the fed and pboc. m i wrong? >> there is improved communication though the central bank is denying it. domestically, we're seeing large commercial banks in china mopping up u.s. dollar liquidity in the market in preparation for probably another incoming fed interest rate height. so you know, because if you'll remember in 2003, there was a liquidity crisis because of the shifting expectation of the fed's interest rate hike back then and that caught the chinese market that plunged more than 20% within two weeks. so now we're just trying to get ready and if the fed really does hike in the coming months, then we'd have probably enough u.s. dollars in our reserve to get ready. francine: what you're suggesting -- and this seems

basically standard, if we see the beginning of a rally, the dollar goes up, which probably means it will push pboc or the chinese authorities to do something with their currencies, are we looking at china devaluing if the dollar rallies? >> i think the dollar has spun up from the bottom recently and also the central bank has been lowering, r.m.b. referencing rate in recent weeks as well. i think in the past couple days, the weakening of the chinese yen reference rate is one of the largest in history. but this time around we're doing this in an orderly fashion and also, we are not proactively devaluing our currency and that's very different from what we did last august and also in january of this year that causes substantial market plunge during those months. this time around because the lowering of the reference rate is really a reflection of the

u.s. dollar strength so the market is actually handling it quite well and also, you know, because of the learning experience in the past with painful episodes. i think for now the market is stabilizing at around 2,800 and is handling the situation quite well. francine: i have a chart i made up for you and it basically rmb spot he chinese as opposed to the yua nsks fixing and seems markets are nervous about it but when you see it, the white line is still price so you believe a depreciation for the yua nmbing is good to stabilize it and net economy to the world as a whole. >> well, i think, you know, in the longer term, if we move our prospectus beyond the recent

weeks or months, an orderly deappreciation of r.m.b. helps the exports and the economy recovering. if the chinese economy stabilizes and the u.s. economy starts to do well, it's actually beneficial to the global economy. francine: what do you make of the g-7? they're talking about china and china is policy not invited to the g-7. do we really care about the g-7 anymore because it's the g-20 that makes the decisions because the chinese economy has such strengths to pull us out of little growth or pull us into possible risk of recession. >> yeah, i think you know, the g-7 probably has to be a little more inclusive. because the second largest economy in the world is not included. and i think many issues they are going to discuss at the

g-7, such as steel overcapacity and also the dispute in the south china sea, they are very relevant to the chinese interest but for some reason china is not included. so i think looking forward, this kind of key issues would be more helpful or more beneficial to the global economy if china is included in the discussion. francine: we had a great interview with the billionaire wilbur ross and was saying something that surprised a lot of our viewers. he's looking at chinese bad loans and he would be very interested in buying some of these distressed loans as long as there's transparency surrounding them. do you think they look attractive at this kind of level? >> i think recently some of the large commercial banks has already decided to issue some a.b.s. products in the market. from what i heard, some of them

are selling 20 cents to 30 cents to the dollar. this kind of price is attractive. roughly the same as what the bad loans was priced at during the 1998 asian financial crisis and the dollar is also a reasonable discount to some who have tolerated the volatility. it's a situation in china for willing investors. francine: thanks very much for joining us. bocom's head of research. up next, a takeover for takata. the country is set to be in talks with potential buyers. more on that story next.

francine: welcome back. >> lenovo focused profits they the alysts and average was 119 million. they struggle to revise the motorola smart phone brand and the computer market continues to slide. borrowers and investors across the gulf region are adjusting to a new landscape following the largest bond sales. ine you're is bond were sold

by qatar. energy exporting nations borrow on the international market in the face of low oil prices. shares in banko have plunged to their largest level this morning after the spanish lender said it will raise about 2.5 billion euros by selling new shares. the company plans to use the money to clear failed real estate assets from the balance sheet and restore profitability. that's the bloomberg business flash. francine? francine: thank you very much. embattled air bagmaker takata held talks with buyers including k.k.r., according to a person familiar with the matter. earlier the company shares surged by the daily limb as reports of k.k.r.'s potential interest. let's get to our auto reporter in tokyo. craig, what do we know at the moment, how likely is it that it will be taken over by someone like k.k.r.? >> we know at this point that

k.k.r. is one of the potential firms that has expressed interest or has had talks with takata and know they're not the only one. but at this point it's very, very early here to be talking about who is likely because there's just so many factors at play. we know takata has been linked to 60 million air bag recalls and that is before earlier this month the u.s. roughly doubled the the size of its recalls by as much as 40 million units so we'll probably see expansions in the rest of the world including here in japan and before this is all said and done, we'll see more than 100 millionaire bags replaced here. that's just a massive amount of costs that takata never was going to be able to handle on its own. the question here is just what automakers want to do about this. do they want to continue to foot the bill and help takata through a restructuring

themselves or would they like to see a third party come in like a private equity firm, a k.k.r. or another firm that may be interested in this company? francine: because of the restructuring and recalls and what it will cost, you're suggesting takata can't survive in its present form, is that fair? >> absolutely. and i think take caughta -- think that takata would acknowledge that as well and overnight in japan time they hired lazar to help in restructuring and seek investors. they know at this point that they have a mountain of liability that at some point they're going to have to face. part of the reason that the automakers have been footing the bill to this point is the company still claims not to know the root cause of these air bag ruptures which is the defect that's caused these recalls. so there's a lot of unknowns

still to be worked out here, and certainly if you're a private equity firm, this is a company that's cheap. it may be cheap for a reason but even with today's rally, this is a company that's lost 80% of its value over the last two years. francine: thanks so much for all that analysis, craig trudell. called out by the state department, an f.b.i. investigation ahead, is the growing fallout of hillary clinton's personal email use about to seriously threaten her presidential campaign? we discuss that next.

francine: welcome back to "the pulse." let's talk to our bureau chief about greece. the i.m.f. has reservations and don't have debt relief and the primary surplus is expected to be really high. are we just kicking down the road once again? >> yeah, it's been rather explicit in its warnings recently that the greece bailout as it currently stands isn't very credible. the fiscal start in this bailout are two issues and commit greece to posterity as the country is really unsustain an. they are admitting the finance

ministers didn't lower the fiscal targets and they didn't give greece any immediate meaningful relief. overseas the i.m.f. didn't walk from the greece program, that would be the nuclear option and funding against the shareholders which include the member states. but said it will re-examine work that it will join the greek program later this year. so it's keeping its leverage in the bailout talks but is not jay:ing the program just yet. it's sending a message to investors and the creditors alike but casts serious reservations where things are headed at this stage. francine: thank you so much for that, nikos. we'll of course keep a close eye on this greek bond yields and of course the talks including with a the i.m.f. thinks. the u.s. state department's inspector general has found hillary clinton's use of private email violating rules. the democratic frontrunner

continues to face fallout from her use of a private email account when she was secretary of state. bloomberg's mark champion joins us now. thanks so much for joining us. this is a hugely, hugely important. what was the reaction from what we found out from the report yesterday? mark: in terms of what people said, i think it was as you'd expect in the sense that republicans, donald trump, the republican candidate, jumped all over it and trump called er a liar and it will help his whole theme of crooked hillary. so it played right to him and it plays to the republicans. on the democrat side, on clinton's own staff, they were trying to stress that her predecessors had done something similar, not quite the same, they said it was the same, and again they're not quite in sync with with a the report is saying but nevertheless, that they had done something similar. francine: how much of a setback

is this for her campaign? again, it just says that she can't really be trusted. >> it's difficult for her, setting the agenda for the campaign and taking it over. she's already in a difficult position. she's kind of slipping as trump revives. she's still having to deal with bernie sanders. and there is this theme of trust that goes right back to what whitewater and the republicans keep hitting it and hitting it all the time. this does not help her. she still has the f.b.i. investigation to come, which conceivably, unlikely, will involve indictments and would be catastrophic, obviously. but i think it's very damaging to her campaign. francine: it's damaging for the primaries or actually the election vote? there's so many questions surrounding donald trump that i guess none of them -- neither of them are ideal candidates? >> that is the truth. but i think the difference is

-- trump said something quite interesting in response to this. he said hillary is always looking for an edge and always getting caught. and it's kind of a difference. of course he's always looking for an edge and he's hardly mr. clean. there's all sorts of stuff that is coming out and will come out for a normal presidential candidate would be problematic. for trump, it's not because he's not a normal presidential candidate. hillary is. she apill mices it. so for her -- she epitomizes it. so for sher, the way she tried to evade them all hurt her. for trump, he can take a larger hit in that sense. francine: makes sense, a little bit, i guess, different standards but makes sense given what different candidates they are. thanks for joining us from bloomberg view, one of our best writers and columnists. i urge you to go to bloomberg.com and check out

what marc has written on lately. stay with us on bloomberg. "surveillance" is next and we kick off the conversation talking about bill gross' interview and we talk fed as markets and currencies.

francine: china tops the agenda and board leaders gather for the g-7 summit. life above 50. brent hits 50 in the past few months but is it really the end of the oil glut? of privatenton's use e-mail did violate state department rules. we will break down what it means for the democratic front runner. this is bloomberg surveillance. i am francine lacqua in