a russian spy and his daughter. >> 18 countries have announced them intentions to expel from their countries. this includes 15 eu member states as well as the united states, canada and the ukraine. this is the largest expulsion in history. found -- mark: almost all of the countries they the russian diplomats they were expelling or spies. arei officials reregistering everyone in the region to make sure the electoral list is up-to-date. biggest arabe

population in the country. to revise has agreed its trade guillen south korea. to avoid the steel tariffs, south korea will limit u.s. shipments to about 2.7 million tons per year. japanese prime minister shinzo abe poll numbers continue to fall. the show his approval rating dropped more than 11% over the past month. another poll found 49% of respondents disapprove. oblique and his wife are linked

to a scandal after purchasing heavily discounted government owned land. global news -- global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. ♪ >> live from new york. >> on joe weisenthal. >> we are minutes away from the closing here in the u.s.. all three averages are up, on track for its best day since 2015. >> the question is, what you miss? >> the trump administration cautiously

optimistic after reaching an arrangement with china. changes in the air for markets -- he joins us at the top of the next hour and facebook caught between a rock and a hard place. mark zuckerberg is invited to testify on capitol hill. >> we have to talk about the markets. the final 30 minutes of trade. dow, the look at the nasdaq, all up 2.5%. sincee for its best day august 2016. that is the rebound rally day black monday. that is the degree of buying

action and it is truly a risk on day. today, the buyers are certainly in charge and if we hopped into the bloomberg, we see that all .1 of the sectors are higher see that tech and financials lead the way in tech really rebounding after last week's big selloff. let's take a look at some of the big winners in the sector -- tech sector. to $130 perprice share.

it is enough to offset the weakness we are seeing for facebook still trying to recover from that data crisis. it has launched a probe into privacy matters. we're going to see over the last five days it does not include -- thenday's degree of s&p 500 is down over that. iod.ver that per there is an area of congestion there. but, let's check in on a chart we have watched over the last couple of weeks. #.s is the g we see the beautiful uptrend last year. that tells us the buyers are in

control. now we are down, now the question is will we go up? patterntrend, hayden has been broken. some technicians consider that more bearish than the breaching of the averages. be volatility. rally, let'sn the bring in cameron for the lie broad -- live blog. it is nothing compared with we are seeing in terms of size and scope for stocks. what is driving it? >> we are in a higher volatility

regime. some sort of temporary correction do. i think it is noticeable that .&p stocks almost to a take that is three times in this entire down mood. you have this marginal news about less inflammatory trading virus between the u.s. and china and awfully march. , doou see a big turnaround they happen on days like this? you thisthis just tell is not a turnaround? >> i think very much the letter. i look at some numbers. market when the s&p cash

opens up and gets higher by half a percent or more, the last 30 times has done it. it was close to inevitable. what is that say moving forward? not a whole lot. the median was also down to a percent and a half. that is not bode well that this will keep going. >> the main thing is we're still in a volatile. 1985 some is featured

a column today, walkers through this chart. >> when people say what should i do, should i be selling or buying? just because it is trite, does not mean it is not true. if you are daytrader, then obviously you want to be sensitive to it, but if you are long-term investor, you should look for this. , realms of the chart earnings here that shield can be a one-stop shop. the earnings yield is the earnings divided by the price and in real means we subtract

the rate of inflation from that. my work suggests anything one and a half about that is a positive equity market. early returns going forward in the last three major markets with the crash and the dot-com by thewere all proceeded real earnings yield going below zero and obviously, we are nowhere close to that. you can see it once a pretty mine whichhe white is the real earnings yield. >> we're currently at two and a half. >> that is basically the long-term average. if we are looking at it from a perspective, with

this suggests to me is that the fundamentals of the market are still ok. are they as good as they were a few years ago? no. what that means is it should be bumpier. market toexpect the have a bit of a bumpy ride because there is uncertainty. >> it all depends on your perspective. >> thank you. up, trade tensions giving equity a boost. this is bloomberg.

>> the doubt of by 660 points, the s&p adding 2.6%. the telecoms and utilities are moving our. >> sunday. >> this is a yield curve and just basis points. what you miss? a dose of de-escalation from the united states. -- the rationing trade tensions, still they president want to see a wanted to remind dollar reduction with china this year.

thank you for being with us neil. is it all over and will we be smooth smelly -- smooth sailing? we saw that with steel, the big exemption. fieryect rhetoric being and so far the actions have been pretty limited. >> the lesson is to knock it to worked over -- to worked up over the initial announcement. >> precisely. and wait to see what the retaliation might be because so far very limited. >> you say this is a pattern. the fear is that president trump

could change the again. >> he might levy something and go with it, rather than use it as a negotiating stance. >> countries are going to .espond to each step of the way >> i think the market is starting to learn. if you look at the next couple of days, it has actually been the dollar that has been weakened. focus insteadto on the measures. >> what did not test what it in investors in the u.s. -- i >> equity markets sold off to some of the state currencies. we need to think about whether or not investors are getting nervous of it all she just in the u.s.

-- policy shift in the u.s. even if in theory be pattern is for dramatic rhetoric and then scaled down, a is it possible that something could go or in the event that china were to see a real escalation, who would be hit the hardest? >> the first question, absolutely. it is conceivable that this whole thing could ratchet up unexpectedly. it isk the other thing not just the macro, it could be some of the measures have no effect. to -- or >> if i were

tom keene, i would say let me read this up for second. he did get news that kim jong-un met with chinese leaders today. the u.s. wants china's health and the escalating nuclear tensions with north korea. how significant is that the? -- could that be? >> we see the fiery rhetoric and then you step back because you need china on your side when you're dealing with north korea. there's no chance i see that the u.s. deficit goes down. there's no chance that will happen. in that situation, i think it goes up. >> let's say we will not get an

increase in the trade deficit? >> i think there are several areas that could work. we party started to see the market open up to beef producers. i think measures on intellectual property and again, may not amount to much, but at least , haltingly,h harder .t does not really change much >> we have steel, aluminum, agriculture. >> what about property rights? >> far more difficult to pin down. obviously, if you have a concern over market access, you can apply a tariff.

services, trade has ofome an -- there's a chance developing, so it is not just about tariffs and quotas, you need to think about goods and the whole gamut. >> you mentioned earlier we need to mention specific stocks. what countries would you have your eyes on to gauge the reaction? >> china is the big one here, but then you need to think about the economy here. china has become this manufacturing hub, so that is where it is felt. >> thank you so much. >> we want to give you an update here.

the dow jones of. up.- the dow jones close,re rally into the all 20 for groups are gaining and barton is higher in average. this is bloomberg.

♪ >> less than 10 minutes away from the close and the rally is picking up. -- of uplook at the nasdaq, now 3.2%. >> even facebook has turned to green.

underperforming, the people are buying. peter who bring in joins us by phone. what is your read on this sharp rebound? debt.hink it is by the we have been by the debt for many years and investor behavior takes time to change. moving testing the average. the rally does not come as that .uch of a surprise strong revenue growth for companies and a solid global backdrop. that said, there are other reasons to be concerned. >> we spent the last hour

talking about how we have seen this trend. what do you make of it? >> i think in more volatile markets, that is where you see in your the open and the lines share does tend to be near the for various reasons one volatility picks up. >> there's a lot to pull off in the market whether it is the facebook and tech stock weakness. whether people should be concerned about inflation or not , whether there is a slowdown in the economy's in your and political stuff in japan. what is noise and signaling that you are paying attention to? >> i think most of what we have been focused on around tariffs

and the prospects for a trade butand political issues, will we may best for me most concerned about is increased costs and capital and i'm talking about short range volatility for a number of months in a particular over the past several months has been rising rapidly and that has accelerated somewhat today, but the rise has real impact in companies -- on companies and capital, especially small companies that tend to be more reliable on variable rate bank financing. that has the most concerned so i'm keen on short rate volatility and funding markets. >> petr cech keeney, thanks for joining us.

lisa -- as lisa mentioned, volume up over 21%. 689 point gain for the dow. this is bloomberg.

♪

>> what did you miss? stocks ripping into the end of the day, session high with the s&p in the dow up more than 2%, the nasdaq up more than 3%, the best day since 2015. i'm lisa abramowicz. scarlet: i'm scarlet fu. joe: and i'm joe weisenthal. we want to welcome you to our closing bell coverage every day from four-5 p.m. eastern. scarlet: we begin with our market minute. there's no shortage of superlatives for the day. the s&p 500 make it is biggest one-day gain since august of 2015. u.s. stocks rebounding sharply to the biggest weekly selloff in two years. all the major indexes gaining at least two point 7%. the nasdaq up by 3.3%.

a 24 groups in the s&p 500 advancing, led by chipmakers, banks, should i go on? i could listen to this forever. dow and i look at the is only one decline her and that's general electric, which i will get to shortly. otherwise, 29 out of 30 members of the dow or advancing, with microsoft leading the way, intel, apple, all the tech names that sold off sharply in previous days have made a strong recovery here. you can get a sense of the scale here, and wait for me while i pull this up. lots of green here on the screen , all 11 groups on the s&p 500 better than 4% as a group, which is remarkable. it's bright green which gives you a sense of -- a sense of the advances made.

worst performance telecoms, utilities. joe: unbelievable day. of: let's go through some the individual group is here. you have to look at some of the here,amid all the buying cvs up 4.9% after 60 minutes had the highest rating in 10 years after stormy daniels gave her account of her alleged sexual dalliance, i guess that's one way of putting it, with president trump. lisa: i was waiting to hear how you would put it. up after the chairman and ceo will retire. he will remain in those roles until a successor is found. we did want you give some highlights of some of the shifts in management there. , a whitene up by 31%

knight there for the company. ge down by 1.4%, the only decline her in the battle be related yesterday the washington journal published an article noting the risk in the company's landing business. in january, ge took a $6.2 billion order charge because of lingering problems its legacy insurance business that it has sold. let's look at the government bond market. rates higher but not insanely so. even the we have a huge risk on movement equity markets it's not like people sold treasuries with abandon. that's the theme of recent times, some of these correlations breaking down a little bit. higher yields, 2.85% on the 10 year but still very much in this range. german to take a look at short-term rates, still deeply in negative territory.

as you can see they been coming down lately. contrary to the idea that everything is getting better and inflation and all that, short-term rates to get up everywhere, we've seen a bit of a give back in germany. it's all like the markets are confused and having trouble with the narrative. the euro strengthening versus the dollar. dollar the lowest since february of this year. the dollar losing against the chinese yuan in the japanese yen, tipping a little bit lower against the dollar. i just want to give you a sense of the sort of whiplash we saw in the ruble today versus the dollar. we got the news that the u.s. was expelling 60 russian attack,s over the u.k. this was much more than expected. the dollar

strengthened against the ruble and the people looked into this and realized it might not be that big of a deal and it went right back to weakening against the ruble periods of people still going back to the russian currency despite the sanctions and other measures. and on the commodities front, let's look at oil and gold. much quieter over in the commodities world today. oil slipping a little bit, though it had gained a last .ouple of days it just hang in there about $65 a barrel. gold up a little bit, which maybe a little bit of surprise but gold making modest gains. those are today's market minutes. tobias levined by kovich. last week we had the worst weekly selloff in two years and today you have this zoom higher in equity indexes.

what is the narrative right now, and does it account for a big shift like this? tobias: the narrative has changed a lot, even from january or last week. better, data getting and the bond yields also surging at that time. so people kind of excited about markets, and then we saw the numbers from january come in in early february people got nervous about inflation. to certain degree what happened last week was the trade issues, not just still and aluminum caps, all of a sudden it was much wider and there were severe would become more significant. it all caps the point where people are starting to suggest president trump was no longer progrowth, pro-business, but was the problem, and that narrative changed. some of the news over the weekend and this morning saying wait a minute, the chinese want to work with the americans on tariffs.

on 60 be in dollars, people got a little more calm. comments that it the interview did not shed any toward the dalliance. peoplemment down some who said wait a minute we sold off to much and the world has not ended. joe: you do a lot of interesting work on sentiment and you had this panic before it indicators you look at a long time. one of the questions is always, and people want to know, this is what panic looks like? this must be panic. have we seen panic at any time or something resembling it at any time in the last several weeks? no, we saw panic in the early part of 2016 is people worry about credit spreads widening out, the energy market

had kind of blown up and cause this year and maybe funding costs had gotten to the point where we would go into a recession. what were seeing is pulling off of euphoric levels of excitement to more neutral levels. the models were telling us a week before christmas that we were already there. that was around the tax cuts and the expectations that this would be positive, and all that is fine. are leaning over their skis. to a certain degree, it ended badly. people just got a little excited. now it is more neutral. is a more neutral issue and we need data to tell us what to do. scarlet: who was behind the volumes today? tobias: i don't know. lisa: as we see this volatility, who is doing it? tobias: probably people who are

covering their shorts as the market started turning. that has been reports stock buyback deaths have been doubly busy since last year. maybe that's part of it. it's really hard to tell. the januaryk to action, quickly. it certainly felt like forever. stocks were going up every single day. it's not surprising that your model suggested that. what were the actual components that are less -- that put it into that territory? tobias: i'll tell you the ones that pullback, we watch nasdaq trading volume relative to the new york stock exchange trading going. nasdaq is to grow more risky

stocks. that volume is really picking up . tells you that gap something about the risk-taking ability. and gasoline prices is another thing that's in there. as gasoline prices go up it suggests the economy is better and earnings are looking better and things like that. that is another one that is falling back from extended levels. the nineare three of component model that have backed out. scarlet: looking ahead in the days to come, what asset class would you look at to get a gauge on where stocks go? , where we haves not seen reciprocal kind of movement? tobias: we do watch credit heavily -- because it tends to be a good indicator of economic trends. our people tightening or easily

creditability? we expect to see an inflectional bank loans already in the first quarter picking up, at something people have been picking up, but that tends to be a lagging indicator. it's not really telling you anything you should of been seeing based on historical relationships. what them into our office in your sticking with us. another superlative to add to today's rattling. joe: i don't even remember back that long. scarlet: this is bloomberg. ♪

mark: i'm mark crumpton with first word news. of russian diplomats over the poisoning of an x russians find his daughter in britain today president trump or expulsion of 60 russian diplomats. ambassador jon huntsman said the expulsion or warranted. >> today's actions made united states a safer place, by limiting the ability of russia to spy on americans and conduct covert activities that threaten america's national security. the u.s. also ordered the closure of the russian consulate in seattle. senate judiciary committee chuck he's invited facebook ceo mark zuckerberg to

testify to hearing next month on data privacy. his committee is the third formed to seek his testimony in the wake of a privacy scandal involving cambridge analytica, a trump connected data mining company. lee agreedson congress needs answers. >> we need to hearings to be factfinders to write the right tod of regulatory speed injure the business element of facebook continues. we have no desire to undermine the business element or the consumers, but we do have a responsibility, constitutional responsibility to protect the american people from invasion of their privacy without their knowledge and without compensation. more: the federal trade commission says it is officially investigating the potential misuse of the personal information of as many as 50 million facebook users. in egypt, voting is underway in the country's presidential

election. there were nearly 60 million eligible voters and authorities are hoping in a people cast ballots to give the election legitimacy. the president is running virtually unopposed. a series of other candidates were arrested or withdrew from the race under pressure. election will last three days. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. lots of green across the screen for u.s. stocks. still with us is tobias. the s&p rising by the most since august of 2015. julie hyman just sent me a story from august 2015, the last time stocks rose as much. because thereas were some dovish words from the federal reserve. last week it stuck to its knitting in terms of a rate hike

for this year. even with today's recovery and facebook rally into the close, there's a lot of challenges for this sector. you can break up and the social media companies, hardware, software companies, you like to game of jenga, where people something out, it can all collapse. tobias: there are different aspects. one is the trade issues. is a going to be sanctions against china and what would be the retaliation on technology companies? beyond that, we've seen a couple of chinks in the armor. as bond euros go up, it hurts the earnings of some of these companies. there's concerns about that not just on the privacy issue but things like that you talking that taxes on digital revenues. we are seeing more competition in visual advertising, more players trying to get into it. that's been a key area for

profitability. it's been kind of a lovefest on the street. is that relationship getting strained? not quite a dalliance, but are there some issues that might make it more difficult? the trends have rolled over. there were going up and up. there's a downward tilt. these stocks are very sensitive to that kind of stuff. lisa: we've got the ftc coming out and confirming they are looking into the data breach from facebook. our goodbyes and clients to sell, not necessarily just facebook, but across the board tech stuff? tobias: we think they will underperform over the next 12 months or so. it's not about the headline risk day today. i think evaluation trends are not as attractive.

it's more about a relative performance story. for example, when bond yields go up, typically financials do well. tech does not do as well. we haven't seen that head off like take place and we're all waiting for that. joe: expand more on that relationship with tech stocks. affect facebook or amazon for you just buy them in any environment matter what. half --ay they are people come in on the risk curve. historically, if you just put financials relative to tech, you'd see them very much in sync with bond yields. the last six or 12 months have been different. there are two reasons why you would normally suggest that road

of underperformance. secular growers have this kind someesent value at discounted rate. as the rate goes up, the present guy gets hurt. that is true for any stock. the only differences when bond yields are moving up, it's getlly when value companies more kick to their revenue. think of it this way, will not see significant increase in the incidence of diabetes is the economy is growing at 3% or 2%. the trend doesn't change. but maybe the sale of a piece of machinery goes up because the economy is growing faster. on the other side of it, think of it from the behavioral finance perspective. if all of a sudden there's more opportunities for growth, why pay 60 times for something when you could pay 30 times somewhere else? scarlet: they can so much for

being with us. chrissy teigen moved the market. coming up, volatility seems to have given gold the strength to bust of its range. we have the chart you cannot miss, next. this is bloomberg. ♪

lisa: time for our weekly segment with abigail doolittle. thanks, and joining me is mark newton. in, theime we are

volatility we were just talking about, where no longer in the slope meltdown but things swing up and down. what is next for stocks? in the nextld couple of weeks. i don't put much faith in the low we saw friday being the low. you can get sharp -- sharp rallies from those lows before the decline reasserts itself. a couple of different things to suggest. we did get short-term oversold based on the readings late last friday. we also saw pessimistic sentiment start to return to the market. longer-term uptrend is still very much intact in regard to the s&p. the momentum is weak on this move, and then pull back and held exactly where we needed to. you can make a case that it's somewhat bullish in the short run. it, inre issues with financials, technology, momentum went from being one highs levels on record to mid range territory. that is a concern.

the trends are intact, but it gives us reason to be can earn inut a potential fall september or october of this year. so we've been talking about if it were to break low that february low, do you see something of that magnitude? i do think we could see that. it would mean a financials and technology also likely break the flows which sets up a target near 2170. that would be the first sign a whole bull market from 2009 is finally starting to give way and rollover. >> i would have to agree with you on that. we could try a rally in april, but the loss of momentum is a big concern going into q2 and q3 of this year. volatility return to tends to breed more of the same. investors may take a look at

gold. show us the chart. we've seen gold really choppy the last couple of years after nearly a five-year downturns 2011 when it went sideways. different things happened recently, the dollar has started to roll over yet again in interest rates have pulled back. everybody thought after that they came in the rates go straight up. exactly the opposite has happened. we have started to rally. u.s. treasuries are back in the mid range. gold has started to show real signs of hermine up. my thinking is above 1362 would break out of the entire consolidation since 2016. that is quite bullish in regard to gold and suggest it start to see precious metals regaining their luster after a lackluster time in recent times. >> you mentioned the dollar, let's look at your chart in 30 seconds or less, talk is that

this -- talk to us about the chart. >> it is a negative. not only tax reform potentially causing issues with fiscal deficit and that's obviously a bearish theme for the dollar. all of a sudden tariffs will mean fewer and fewer countries involved. has been gone -- ongoing since 2015. this is bearish for the dollar and typically works in eight year cycles. our daily basis, it's under these lows in the last few weeks. grexit will be interesting to see if there's a rally to the upside. , great insights on stocks, gold, and the dollar. lisa: abigail, thanks so much. will talk more about they spoke. from new york, this is bloomberg. ♪ retail.

under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. went i'm mark crumpton first word news. this is since the president for trading manufacturing says talks are already underway behind this instant help defuse escalating trade tensions with china. peter navarro spoke today to bloomberg radio. >> we are already at the negotiating table. steve mnuchin said over the the ambassador actively engage with the chinese side and we have been engaged with the chinese side since day one of this administration. navarro said president trump is seeking a $100 billion reduction in america's trade

deficit with china this year. he wants to add a trade shortfall and goods and services with china last year. britain's prime minister theresa may said the expulsion of russian demand from the u.s. and several nations across europe is driven by evidence, not speculation. she says britain has information indicating russia's investigative ways of delivering the nerve agent. she noted about 130 people in salisbury may have been exposed to the agent used in -- and that russia came up with. she said the double agent and his star were injured in the attack and may never fully recover. u.k.-way talks between the , the e.u., and ireland began today in brussels. officials are trying to find common ground on irish border. negotiations kickoff as new wording on the issue needs to be

agreed on before treaty can be signed. last month the e.u. propose that northern iraq stay in the union or the single market if there's no other way to maintain a soft border. primei police question minister benjamin netanyahu and his wife and son today in a corruption case involving the country's telecom giant. it was the second time netanyahu has been questioned in the case in which he is suspected of promoting regulation where -- worth hundreds of millions of dollars to the company to return the firm's popular new site and allegedly provided favorable coverage of netanyahu and his family. police a question lasted for several hours but they did not give specifics. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. let's get a recap of today's market action. a lot of big green arrows with

points, the s&p 500 gaining 2.7%. the biggest one-day jump since august 2015. treasuries came down a bit but not in the same proportion that stocks rallied. green arrows. big the federal trade commission says it is officially investigating potential misuse of personal information of as many as 50 million facebook users by trump connected data analysis firm cambridge analytica. many call for mark zuckerberg to testify. here is daniel flax, senior research analyst for his firm. i want to start with today's to module's action. the federal trade commission came out and confirmed they are indeed looking into facebook. what is the worst-case scenario for facebook with this inquiry?

be that theyuld have to fundamentally change their business model, and that will impact their long-term growth. if you step back and think about what is going on, the issues around trust, data, security, privacy, they have been with us for a long time. as we think about the next wave users andthat society policymakers need to wrestle with, it's how we educate the users on the plat are, on all the platforms, give them a chance to opt in or opt out. bigger risk some sort of change in the rules that change the facebook business andl, or consumer education consumers either not using facebook as much or not given up as much data, which would theoretically harm the business model? facebook and other platforms, if they're able to explain to users how their business model works and bring a

level of transparency that we haven't had necessarily in the past, users still find benefit from facebook and some of their other platforms like instagram, as an example. i think it's going to be, nation of things that are necessary for all sites here. either way it seems like regulation is going to be part of the landscape whether on transparency or something else. how well equipped facebook to deal with that? do they have the people and infrastructure in place to respond to that quickly, or will it be a long, drawnout process? terms: i think they do in of the people in the technology and certainly the balance sheet to be able to invest to do what is necessary. if you look at it from the bigger picture of what we think about all the other industries, all these industries have evolved over decades and in some cases centuries, and all of them have found themselves subject to regulation. what we may see over time is that those firms that are able

to continue to innovate on the technology front, the ones that can work effectively with regulators and deliver any outstanding experience to their users, those are the ones that can thrive as we think about the next several years ahead. i want to talk about the popularity factor at play here. we saw this #delete facebook movement gained steam. some people were showing some pretty big distress over this, including elon musk of tesla, deleting their spacex page on facebook, and others. how big of a concern is it that these mammoth companies rise and fall on tweets and on facebook posts? daniel: i think the moves to delete facebook or other apps is something you are always going to see in the teeth of a really heated set of headlines.

think if you look at lots of different situations over time, companies that maybe facing a lot of fires at work, ones who respond in a thoughtful way are ultimately going to come out safely on the other side. they so it's all about how respond to these unhappy users in the meantime before anyone takes any kind of permanent action. in the short-term, that is part of it. in the medium to long-term, it's a question of what they're able to do in terms of their overall user framework and how they can rebuild trust, because that is critical. are the problems facebook is facing right now unique facebook or could we see similar maelstrom's surround amazon and alphabets and all these others? daniel: it's applicable to all these companies. eta is thee where

most valuable natural resource out there. everybody's trying to get more data. old economy companies and new economy companies. when we think about it, it is applicable to everybody. the key to all these different organizations is to come out with ways that help users understand what is going on and ultimately help bring them into an era where it is safe to use a product or service. lisa: there was an article about how advertisers share data sometimes with facebook. they are worried about the integrity of that data. what types of concern is there that advertisers will sever their relationships with data sharing and otherwise with facebook? daniel: there is still quite a lot of support for the big platforms. the reason is because the platforms are able to deliver a lot of value to the advertisers, and there's also been value the users have gained from it.

i don't think there's a specific data point that will turn everything on its head. if companies don't react, think they will have a bigger issue over time. it is critical in the short term is being open and responsive and helping people see the route they are going to take a long the next several months. i don't think there's necessarily one single solution to any of these issues. companies will have to try and then try again. i think well appreciate given the global nature of these platforms and the economy and society that we live in, certain things that may make sense in certain economies or countries may not be a sensible in others. so it's going to be a little bit of trial and error, i would say. all of this will culminate in mark zuckerberg probably testifying before congress. what can he do well, i mean he

will obviously be preparing for this. who is a good model for him to look at, as a ceo who has gone before congress and come out ahead? lisa: good question. have takenhink they the first test in terms of acknowledging there is an issue. as you look out to the likely testimony in the weeks and months that come afterwards, they are going to have to be able to build a case as to why they are doing is going to fundamentally change and improve these issues around data, privacy, and trust. is there a particular role model? i would not point to any individual. i would say there are elements that the facebook team you to be able to bring together to help andge the narrative ultimately and most importantly, change their platform and evolve it over the next several months and in the years ahead. daniel flax, thank you

so much. coming up, ambitious plans for crypto etf's. the sec want to get aboard the crypto bandwagon. joe: get involved in the conversation, send me a tweet. i tweaked charts and links and retweet my bloomberg colleagues all the time. follow them as well. what do you want us to ask our guests? let us know. this is bloomberg. ♪

scarlet: big coinbase products with a chance.

this move comes after the sec outlined its concerns over recruiting these kinds of products. with the coin prices coming down quite a bit, and this is something joe has been playing close attention to, what kind of demand is therefore be coin type etf? >> that's an excellent question. firms have been pushing for this for more than a year now. there is still to -- still demand because were seeing the coin wanting to devil to invest. at the moment it's relatively unregulated. you have to have a special account to go and buy it. within exchange traded product to have a little that's the impression for issuing the work to do these products, people will come and use them. lisa: i'm struggling here, you

said they are struggling to buy it. we cannot even classify what it is, whether it is a currency or commodity, let alone the true price, because the prices differ depending on the platform you're on. from a regulatory standpoint, how do you ensure data liquidity, accurate pricing and full faith and disclosures retail investors interested in getting into this thing? >> this is exactly what the ftc has been -- what the sec has been asking for. ask about how do you value it, what is the arbitrage like? come backe attempt to at that. the answer to the question of what is it, it's certainly a commodity. they think it should be regulated no differently than other commodity base exchange traded products. that is the crux of the letter they have written. the data they used report this, i would say it's a little bit weak our little bit absent. saying we've seen

be going futures being traded at this amount. about bitcoin in the growth of the amount of trade in it. it's a little short on numbers i would like to see. the manipulation question has been out there because it's one of these weird things where the futures are regulated but the underlying things are regulated very loosely at best. how do they address those concerns? question talk about what processes they gone through in setting up the futures exchange to be comfortable with whether there is manipulation. they said he wanted to manipulate bitcoin, you'd have to be capable of manipulating the entire market because there's so many platforms out there. is adon't think that feasible possibility. that is how to get comfortable with that possibility.

if: how do they win here they're not to sending a letter for their health, if they were , how do a bitcoin etf they -- >> they talked about having an entire suite going, they would like to be a to list these products. i think they see it as trying to put themselves out there is a place to go for crypto. scarlet: just a reminder, any of the issuers that want to issue be going etf's come they have all withdrawn their applications. >> the message was quick but in us, we will get to you when we made a decision. some of them looking for leverage, which is pretty intense when you think about this.

those evolving pullback has everyone waits to see what the tone is going to be. they are -- lisa: who doesn't want to invest in a double inverse bitcoin etf? rachel evans, thank you for joining us. jack dorsey, the twitter ceo, said that bitcoin will be the world single currency going forward. kind of interesting. scarlet: probably not month. lisa: coming up, the question rounding the much discussed initial public offering. highlights from that interview next. from new york, this is bloomberg. ♪

saudi officials insist the aramco ipo's a matter of when, but some investors are asking if it will happen at all. we met with the ceo earlier today in new york. it started by discussing the outlook for oil. take a listen. >> if you look at the numbers on the ground today, there is healthy demand for oil. if you look at the last three increased per day. over three years, it has grown to about 5 million barrels a day. the economy, the global economy is doing very well and there is a demand for more oil. so for global energy security, we need to make sure we have enough resources not only by saudi arabia but by other

companies and countries to make sure that we have enough supply to meet rising demand. >> when you look at the future of the internal combustion engine, i don't to the money, car manufacturers going into r&d for the internal combustion engine, but listening to you speak recently, he seemed to be quite optimistic about the future of something that a lot of people are not optimistic about. why? x actually we have seen there is much better improvement in reducing carbon emission and efficiency from combustion engines. a lot of reduction in carbon , a lot of works is going on to improve the efficiency in terms of mileage per gallon, and saudi aramco is also doing a lot of work throughout detroit center here in the u.s., our center and were

working with auto manufacturers to improve the efficiency of engines, creating -- there's a lot of work done by companies, oil and gas companies to improve efficiency and reduce emissions and by auto manufacturers also. that you understand that for a lot of people, this is part of a broader concern around ipo of saudi aramco. there have been reports that the investor appetite just isn't there in the way that the saudi's would like. do you see the investor appetite? >> of course. >> where is it? a lot of the questions and the media coverage and what you ,ee on when it will happen there's a lot of demand for the listing of saudi aramco, in terms of performance and the

data will show when we go on our performance, our we are the highest producer and most efficient, most reliable. this is a great company and the data will show our performance. >> when i speak to people, they are not talking about in this will happen, they are not talking about if it will happen, wholerett -- perhaps the idea goes into the decrease in does not happen at all. >> the government did all the paperwork to make it effective january between the. that is an indication that the ipo is ongoing. has started.ration as a company for listing in the second half of 2018.

so we are doing a lot of work to prepare the company for listing at the same time that archimedes , thethe government prepared us of what were doing to make sure the company is ready for listing. >> do have a set of accounts audited to u.k. and u.s. standards already? is that done? for the whole company itself? >> know, the only requirement for listing is terms of [indiscernible] we will be unveiling all the necessary documents. >> so it's not your decision ultimately when this will happen. i'm trying to understand when this will happen. >> the venue and the timing, the government will decide on that. don't forget, this is a very complex thing. it requires time. there are a lot of the news to list in the kingdom for sure.

we're going to investigate all -- evaluate all of that. lisa: that was the chief executive of saudi aramco speaking exclusively to our jon ferro earlier today. coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: u.s. stocks rallying by the most since august 2015. up, don't miss this, apple plans and education focused announcement at a chicago high school tomorrow. joe: numbers for consumer confidence come out at 10:00 a.m. eastern. u.s. ceo forumdi here in new york city. scarlet: bloomberg technology is up next. joe:

mark: you are watching bloomberg technology here's a check of first world news. british prime minister theresa may priced collective action by the u.s. and european nations to

expel russian diplomats. the move follows the poisoning of a former russian spy and his daughter on british soil. >> together we sent the message russia'stolerate attempt to undermine values and will act to strengthen the resilience on nuclear related risks as well as fostering the case relative to overtime restraint. mark: the kremlin says russia and respond quid pro quo alleges that powerful forces in britain and the u.s. were behind the attack. moscow says britain has made european countries hostage of its anti-russian policy and a spokeswoman from the russian foreign ministry says britain failed to provide any evidence to accusations of moscow's involvement. north korean leader kim jong-il and made him surprise visit to beijing today inis