not scheduled to be at the meeting. he warned syria would pay a price for it the poison gas attack on a rebel stronghold. jim mattis says he would not rule anything out when he was asked about retaliation. the u.n. human rights office is warning of the dangers of an impotent international response to the use of chemical weapons in syria. states around the world ratified the chemical weapons convention which prohibits the use of chemical weapons. >> we are seeing dozens of attacks. the impotent response, all of them are involved in syria, it is simply paralyzed. >> the concern is that chemical attacks appeared to be becoming normalized in syria.

sergey lavrov met with russian diplomats. he had been expelled over the poisoning of a russian spy and his daughter. never bendsia will under ultimatums and always do theything to protect security and dignity of its citizens. with the u.k. parliament in recess theresa may is meeting with her counterparts as part of her to her of scandinavia. she reentered the plan to cut immigration to below 100,000 people. the freel be out of movement rules and setting our , and wes for migration recognize the concerned people in the u.k. have about this issue, which is why we set ourselves a target. >> six men who had been detained

over concerns about a possible attack have been released. german officials said they found no evidence to back suspicions but are continuing the investigation. the men were between the ages of 18 and 21. global news powered by 2700 journalists and analysts in 120 countries. this is bloomberg. julia: live in new york, i'm julia chesley. scarlet: scarlet fu. joe: i'm joe weisenthal. julia: all three major averages up more than 1%. >> more finger-pointing between

the u.s. and china. president trump attacks because of trade problems. is sparkingfect pain and russian assets. tensions over syria imposing the largest sanctions yet. and zuckerberg made his way to for his me a call for with lawmakers this week. china is evaluating the impact of a gradual depreciation in response to recent announcements on the u.s. administration overture eight tariffs. george, great to have you with us. do you think using currency as a tool available to the chinese at this moment?

>> the answer is no. i read the story along with hundreds of others on bloomberg. i was not convinced to be honest. particularly after the lessons the chinese learned in 2015 and 2016, they would be anxious of a using the messaging currency depreciation or the currency as a weapon in this trade spat with the united states. i think they would worry it would engender financial instability at home and encourage the inventiveness of chinese companies to chinese households to get money out of china despite the fact that they have capital controls. that has not stopped people in the past. i would not discount it completely. a complete breakdown of

relations, all gloves will be off. but no i don't buy that story. joe: do you feel similarly about the idea that china would reduce its u.s. treasury holding? are there moves that it could make that could have some effect? we have been through this a few times in the last 10 or 15 years about whether china might sell treasuries to weaponize against the united states. just think about this. 16 when chinad was going through financial turbulence, their foreign reserves declined by a trillion dollars without really threatening or moving the treasury market. japan has reduced its holdings of treasury's without moving the market.

narrative that china can weaponize finance to hit back at the united states is both counterproductive for china because if prices fall the chinese will suffer losses as well. there are other things the chinese can do. they have used pressure on companies before, against norway, the philippines, south korea. there are other things they can do before they get to this armageddon scenario, as a last resort. scarlet: as we watch china and the u.s. trade and ratchet up these tensions and threats of a trade war you have laid out three distinct possibilities. what is the most likely outcome?

>> we are all guessing here. there is still a possibility, i suppose that there will be a fudge. , xi jinping isr going to appear at this big davos type of event in china. it is widely expected he will make an important speech. china will not back down in the face of u.s. pressure and president trump doesn't think he will back down unless he can have something to show for it. there is a possibility in the next 30-60 days there could still be a fudge. conflicthe underlying between the u.s. and china is about trade but fundamentally it is about technology and industrial policy in china.

that is not going to be resolved by changing a few tariffs or open the markets to american financial firms though these may be part of a fudge that is still possible. markets are still complacent. we have to be prepared for the possibility things will get much getier before they might stable. it requires some level of negotiation, shirley. we have the commerce minister singh trade talks cannot be held under current conditions. the chinesee is just get pushed to an extent that they say we have been down the hatches, we are not going to negotiate.

>> that is quite true. there is that political leverage the chinese have. it is important obviously from a political point of view for the president to come up with something in the next few months but i think -- i think there is -- it is a very risky situation. i don't think china once a trade war. they say there are not any negotiations going on. i can't believe back channels are really working. the comprehensive economic lastgue which took place summer, there was disappointment about the state of negotiations and the infrastructure of dialogue between the u.s. and china and probably things are not working as they used to. truenot sure that it is that there has been a complete

breakdown of communications, notwithstanding what the finance ministry said. joe: there is this emerging narrative that trump has the next election to worry about and xi jinping can play the long game. is china really able to be slower and delivered it or is that a myth? >> it is a bit of a myth. we all think that it is part of the narrative that china likes to encourage, they have been around for 5000 years and they take the long view but if that was true china would never have run into any financial turbulence in the last 20 years. that has been untrue. they keep running into trouble when they make errors from time to time. china canat view that sit back and take the long view but iice part of a story

don't think it holds much water. >> thank you for joining us. we have breaking news. one of the biggest shareholders of cbs has written saying it should only proceed with a deal for viacom if certain terms can be agreed on. we're joined by our senior deals reporter. tell us about what is up in the air here. .> it is a scathing letter the shareholder gives a laundry list of things they think are provided -- problematic with this merger. they say be a dictator at your peril even though they do not have huge voting power. the shareholder is saying you need to recognize there are a lot of interested economic shareholders that should be given some say in any

transaction. >> who is the shareholder? show me the money. >> they say exactly that. .hey are down on the idea notng to the rescue, it is cbs's burden which is not something you would want shareholders to say. such a dealea that would be a bailout of viacom prevalent among people who look at the prospects? >> yeah. he is saying why do we want to do this. the shareholder say cbs should be exploring the sale to other companies and not just be looking at viacom. they would be a stand-alone

asset. >> who should run it? >> this is the real question that is sticking the deal. guyom are key to have their be the number two. sayingreholders here are if the cbs management team is diluted we should be given a forium, some extra cash having to give up what we think is a stellar management team. >> do we presume other shareholders feel the same way? >> there are some that feel the same way. we don't know if this shareholder is speaking for themselves or a large group. anything unreasonable? >> nothing really unreasonable. saltynguage is fairly saying that viacom is a dog of a company. they are talking about value and

management and the problems that are inherent. you have lots of investment and money on the line no power to say what you want. >> shareholders don't have much power because they can't vote for anything. joe: what would be cbs's response? >> the counter argument, it would be viacom to say we would accept this lower than market want, which they do not cbs is keen to move to stay on. they believe they are the best management to run cbs. cbs at this point does not have to do this deal. they would probably be an attractive takeout target to any number of other players in the media landscape. scarlet: thank you for the

latest. we have more markets coming up. u.s. stocks recovering from friday's selloff but have come off their best levels of the session. this is bloomberg.

julia: time for the bloomberg business flash. bank of america says the biggest bubble in history is popping. bitcoin. trackingthe coin is down word. the plunge involves -- has pledged -- has plunged $.65. post, akedin geopolitical development having

a bigger than normal impact affecting economies and markets. this is a switch from the former stance which expected trade tensions to subside. gemini will introduce block training -- trading this week to sell large quantities of bitcoin off the exchange without upsetting markets. the services will go live at 9:30. scarlet: time for the first track of the -- stock of the hour. jeffries, the top stock in the s&p 500. abigail joins us up 12%. >> this is an interesting story. the holding company, they have

been around since 1980. they have sold the majority of their stake to a priscilla you and food company -- to a brazilian food company and they are now focusing on that investment business. >> and they do blockchain. >> pretty close. they own a stake in hr g. they are in everything but focusing on the investment banking. if we take a look at the see thel analysis, we be processing is at 60% of revenue. 7.1%,vestment banking, oil and gas. the reason they are doing this, if we go to operating income we banking,the investment 50% of the profits.

beefare getting out of the business to some degree. -- greatere is a quiet quote here. the randomness prevented investors from sharpening their pencils. >> this is taking investors by surprise and that is showing up in the charts. i talk about these patterns that , you wonder if they work. the point on some patterns is it -- they put in this stock. the 21% gain looks like it is on the rise again. interesting stuff here but that point of randomness and the executives said that, they have a strong group of assets but random. they want to focus on financial services.

which is why they want to change their name. >> es. scarlet: national beef. who knew? deutsche bank have solved the ceo problem but the challenges are far from over.

scarlet: we have been talking for weeks about the new normal in equities, the higher volatility regime. volatility has become its own asset class. the bet was volatility would decline but now betting on increased volatility has become a dependable that. folks called volatility the new safe haven. here is how investors are expressing it. speculators are positioned or more volatility. that is the orange line. you can see them ramp up at the end of the chart. we have seen that a couple of

times. late 2015. 2009 as well. the orange line shows the futures position. it is coincided with a near-term top. look for that line to continue moving higher. the vix today is study at 21 as stocks recover after ending the month of january back at 13 and a half. >> it is amazing looking back at those days when we had that swing. scarlet: we were talking about the vix at 10. joe: russian stocks got obliterated today. 26 months low. here is something interesting. historically russian markets are extremely cheap based on conventional metrics. priced estimated earnings, not

even a seven. this is a lesson of you get what you pay for. if you're going around the world looking for a market with a p/e ratio of seven because that is cheap, maybe there is a reason why you are paying so little for earnings. youfact of the matter is get today's like this. indicator,t one putin is going nowhere fast. >> particularly with rumors one,ing, we have the new saying -- when the former ceo, we

have gone from the pink to the darker purple here. you can see the relative underperformance. the white line relative to the 600 which is the blue. despite three turn around efforts, going absolutely nowhere fast, on the valuation basis must $.38, a book value. the broader to sense, 90 per euro. watch this space. some breaking news. the fbi is reading the office of trump's lawyer, michael co hen. this is bloomberg. ♪ this wi-fi is fast.

i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy.

wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay with their families until their 40's. ♪ julia: stocks losing steam in

the close, folic the session lows after bring up as much as 15%. -- 1.5%. rating the offices of trump lawyer michael cohen. m julia chatterley. weisenthal.m joe and if you tune in on twitter we welcome you to our closing coverage. we begin with our market minutes. and what was supposed to be a big rally, it lost steam in the final session of trading on monday. headlines crossed five minutes before the market close from the new york times saying the fbi raided the office of president trump's longtime personal lawyer, michael cohen. documents relating

to several topics, including payments to an adult actress. according to mr. cohen's lawyer, he called the search and appropriate and completely unnecessary. we should mention the search does not appear to be directed towards mueller's investigation, but it directly resulted in information he recovered and handed off to prosecutors and new york. that is the breaking news. we will walk you through equities, and i am looking at the intraday chart, and can see the move higher in the main three indexes. the march up to the highs, and state at those levels throughout the midday and and started to lose steam in the final two hours of trading. ost momentum l in the last 10 minutes or so. in terms of individual movers, there are still 20 of specific

company news want to tell you about. the big one was aluminum producers and spec initial about the speculation likes of alcoa were sent higher. of century, up as much as 12%. ucadiaigail told us le you are ae most, holding company that has a lot of diverse but relatively random group of assets according to the company itself. they are changing its name to jeffries financial group as a result. joe: let's look at the government bond market. end, no change. in real action -- and will talk more about -- russia.

want to pull my chart of the russian who your yields. got clobberedkets today, and this is one way of looking at it. you can see the big spike up in russian two-year yields. pretty ugly in the wake of those sanctions. and in the end their area were currency came -- whether or not the chinese ultimately will look to use a strengthening the tackle the tariffs united states is discussing. indexwing you here, and of other currencies. you can see at the back end of march last year, strengthening relative to the u.s. dollar. we have seen currency weakness of the last several months. this is opening up the currency

and being more liberal. every guest we have spoken to says they don't think they can use us as a tool without ultimately hurting themselves. it shows you day are trading in the wrong direction for many months. a quick look at the dollar ruble, not just about what we saw in terms of the equity market. yet see significant weakness in the trading session today for the ruble. joe: and let's look at those commodities starting with lots of green on the board. oil up 2% today. gold not doing a whole much. there's more interest happening in industrial metals. some of those companies are going to be diminished and their impact to mine and sell stuff. fell lastum, which week -- president even tweeted about how aluminum had gone down since the tariffs.

as someuminum is up 6% supply may be off-line for a while on the back of those sanctions. and those are today's market minutes. scarlet: for more let's bring in yana barton, portfolio manager at eaton vance. thank you for taking the time to speak with us. as we are showing you, u.s. aocks opened stronger and solid recovery from friday selloff and build momentum to most of the morning before losing steam in the afternoon. how should we read into that? is there a bigger take away that stocks couldn't hold on to their advance? yana: i think what you are seeing is a lot of uncertainty and a little sliver of negative news flow is driving the market activity. i think in this timeframe, particularly right at the beginning of quarterly season -- this is an important time for us to have some perspective and remind investors if they were looking at headlines, they would

have missed the real story. the real story is year. today equities outperform fixed income. growth is outperforming value, and growth in areas of the market -- the ones that have the top line growth and earnings growth continued to ascend higher. is really important to understand what you are investing in and really have fundamentals drive those judgments. julia: and we have seen it for many months. for tech stocks in particular, i have a chart showing that. of value hints outperforming growth. aswth will particularly -- we get into earning season and beyond -- get into the forefront again. yana: if you look at the numbers, we saw the russell 2000 growth -- and we have given a lot of that back. i think it is ahead by 100 basis

points. the reason i mention earnings is we think that is the ultimate leading indicator to stock performance. when you look at the technology sector, whether it is q1 expectations or a full calendar year of 2018 expectations -- that sector has the highest organic growth rate when it comes to growth expectations. in excess of 11% for the year, and that is in context of a market that is expected to grow a healthy 6.5% on the sales side and expected to generate over 18% and earnings growth. talk techs specifically. andth is doing good earnings are ultimately what drives stock performance. what if anything would make you say, there is something different happening contact? in tech? investors have become skittish with these companies.

you think the stories are coming to an end? yana: it is a great point, and it is difficult to dismiss the rhetoric whether it is tariffs or regulation talk. a are in and everyone is sifting through what that means for the underlying business models. taken aside, what one has to look at is the long-term secular growth things that are still alive and well. what we are looking to and what most investors are looking to in q1 season is information of that stability and the revenue and profitability model. really understanding that the growth trajectory of those companies continues to be strong. it is not just pack as we think about social media platforms, it is so much more than that. security networking, software, and others. one thing i want to mention is thank has been so much of what

stockselate to, but fang have not been going up or down in unison. when you look at facebook, it is down for the year at 10%. amazon is up 20% for the year. netflix is up 50%, i do know if anybody recognize that. and google is down just a little bit. the only thing that is maybe the one clear similarity is that those companies in aggregate have an average revenue growth that is in excess of 30%. google is one exception that is 20%, but that is remarkable given the context provided earlier. withet: we are speaking mike wilson, the chicks are just that morgan stanley, who said he doesn't see internet companies are semi conductors leading the way. you agree with him and that the old-school hardware and software andanies -- the microsoft

cisco's, is where you would rather be at this point of the cycle? yana: i think what the market is showing you -- you have a market where there is much more concentrated leadership to date. you see that in the sector leadership. on the two of 11 sectors has led. when you look at industry performance, it goes to the question you are asking. it is very narrow, less than a third has outperformed. the thing about information technology as it stands right am sure youe way, profiled the s&p changing the sector cost cuts vacation. many are going to be transitioning to a new communication government sector. think the dynamic composition of that sector is going to be changing. one of the things we like the tech space is there are so many names that we know but don't think of as fang stocks. visa, mastercard, adobe --

there are plenty of opportunities outside of the tagline to participate and. hasings and revenue growth to make sure the compression we andtoday we ignite's back is more in sync with the trajectory.wth for zacha you see the compression your today -- earnings continue to climb higher at the percent. the earnings everyone is when four, it is like a report card. hopefully companies in aggregate and show solid results. julia: the good news is we don't have to wait. thank you so much for joining us. market andthe looking at past performance to see when the market is heading its highs and button out -- bottoming out to its lows.

this is bloomberg. ♪

mark: i am mark crumpton with first world news. the un security council is meeting at this hour and the session comes following reports of a deadly chemical weapons attack this weekend in syria. you're looking at the french ambassador addressing his colleagues. haleys. ambassador nikki said moments ago that russia bears some responsibility for what happened. she said russia has that in the way of the council doing its job in syria. earlier today president tubbs said he will make a decision on a u.s. response within 24 to 48 hours. it believed at least 40 people were killed in the we get attack in syria. today raided offices of

president trump's personal attorney, michael:. severalrelated to topics,. including payments made 10 about actress were seized. federal prosecutors in manhattan take the search warrant after receiving a referral from the special counsel robert mueller. the search does not appear to be directly related to mr. mueller's investigation. a new deal for the north american trade agreement may not be finalized before the summit of the americas this month in peru. trump nafta talks at a cabinet meeting today at the white house. a long way: we have to go, but we have made tremendous progress. we are fairly close on nafta, and we don't make the right deal will terminate nafta and make the right deal after that. bloomberg reported last week the white house is pushing for a preliminary deal to be announced at the summit. facebook ceo mark zuckerberg was

in washington today ahead of his much anticipated testimony tomorrow before the senate commerce committee. lawmakers want answers about facebook's data privacy scandal. he met today with committee's top democrats, bill nelson of florida. veryu said to me forthrightly we were lied to and we should have caught that. but i think in today's world that is naive. mark: in prepared remarks released by facebook, zuckerberg will tell lawmakers i started facebook, i run it, and i am responsible for what happens here. the fight over the return of the iconic blue passports in britain and whether a foreign firm should produce the book that brexit considers a symbol of liberation continues. heavyweights legal to fight the government's decision to let a franco dutch rival make the country's new

passports after britain and the eu. untilalled standstill april 17 tell a final decision is announced. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. learning to predict the future without a crystal ball. cameron crise has been on the hunt for the holy grail, tracking market performances if we can predict market peaks. cameron joins us now. in search of the holy grail. the thinking here is, i am wondering if it is possible to go through the reams of data in history and respond to the market characteristics that are exhibited.

prominenceas a price in six months either side. , the last top of the s&p was in may of 2015, and it was the high point, higher than any six months. slate and higher than any points six months afterwards. wow, you did a whole year before you can decide. --eron: otherwise you end up we are looking at something prominent. to 1982, i defined both tops in the entirety of the s&p. we're looking for more medium terms for strategic tops and bottoms. i picked a few technical thatcteristics conventional wisdom says can define tops and bottoms.

these include what we call positive or negative the virgins. -- divergence. -- theor like the rsi strength index, does not make a new high, that is indicative of a waiting moment. joe: you mentioned rsi. i have a chart in the terminal that looks at the current environment relative strength indicators. what if anything based on -- what we are looking at, and what based on historical patterns might be gleaned from it? so, that is the relative strength indicator. if we were to assume that the market to the leaky -- typically exhibits this, that line with the right area underneath it makes it a lower high as the s&p 500 makes a new high. as you can see, that hasn't

happened. momentum was at its peak as the market was at its peak. historically this is in fact the case where you typically see this the emergence -- divergence. seek the one-month peak, and we have a table somewhere -- i look at the u.s. markets and foreign markets. we have tracking markets. it tends to work at the top and the bottom. there we see the typically the 3.4 points below the peak of the trading day. joe: i want to be crystal clear here and summarize it. when we see the recent stop, which by your definition -- cameron: we cannot call until july. joe: but we see some sliding of

momentum going into that. cameron: historically. elegant other factors as well. average, higher than which we just about managed. it was 3% higher on the day we picked on the prior month. 's also conventional wisdom you often see price rejection. at the top you see the market make a new high and then close lower. which is called an inverted hammer. at the bottom you see a downside and rebound. that doesn't work. typically in the u.s., on a data market peaks, it actually rises, which is certainly we did see 26. year on generate -- on january 26. julia: any great predictor? cameron: other than the one i

mentioned, they generally work. none has a perfect hit ratio. probably the best hit ratio i found on everything is on the day of a market bottom in the s&p 500, volume is higher than the previous one month average 92% of the time. julia: that is pretty good. cameron: china is unlike any other market, which was really interesting. onceally most markets, they tickets at the selloff we see volume increase -- the chinese walk away. marketically, at a bottom you see the volume reached a crescendo at the bottom and then slowly add a little bit as a market rallied -- where is the chinese pilot. e in. julia: it is a great article, but there is no conclusive

evidence. scarlet: in tech on the whole idea of the mantra of past performances. joe: you have to look at it as a card counter. [laughter] julia: still looking for the crystal ball. scarlet: we learned that the fbi raided the offices of president trump's personal lawyer michael:. we'll have the latest. this is bloomberg. ♪

scarlet: as we have been reporting, the fbi conducted a rate at president trump's personal lawyer michael cohen. : has been involved in several issues including russian investigation meddling in payments to an adult actress.

it is now from washington is margaret talev. who directed the rate and what the fbi is looking for when they raided the office. >> the reports are still emerging so we are getting information as we speak. at this point it appears to be the case that mr. mueller's team seeking to these documents that they may be able to obtain from these rates. at least one rate from michael cohen's office is checking out if there is a second or one location -- and these may cover a wide variety of issues from stormy daniels to tax and business and real estate dealings. and may be a wide range information is still coming in as we speak and we are awaiting to hear reaction from the white house are the president. if theests that

president had hoped that this investigation was being wrapped up several months ago, it is still actually expanding. julia: to what extent do we know if this relates to the payment made to stormy daniels, the $130,000 that the president alluded to having no knowledge of last week when he was tackled by reporters around air force one. can we in any way tie the story to the investigation that they appear to be doing? margaret: it may very well, and the new york times indicates that this may cover some of this dormy daniels related metatter. suggest this may be related to mr. miller's investigation and his team. joe: can you talk about the payoff to stormy daniels in white this may be the focus of law enforcement? margaret: there are a couple of issues in play, and one if this

is a campaign violation, if this is a donation or contribution that needs to be recorded. the second is the issue, which is more of a political question -- if in fact there was an effort to preempt and prevent a controversy from going forward days before the election. and also the questions about knew andpresident if this was a matter of him signing off on this. the president has indicated to reporters, but it wasn't the most awesome conversation, that he didn't know anything about it and all questions should be directed to michael cohen. and this happened days ago on the president was speaking on air force one. id isiming of today's ra potentially important to understand the timeline of this. julia: the administration has been clear all along that they wanted this investigation to be

focused on russian collusion in u.s. elections. the fact we are talking about all these other possible angles here, you can only imagine what fury's has received from the white house. to what extent this is ratchet up tensions we talk about between robert mueller and what and the president and his administration? margaret: that is a good point, the president has made clear from the get-go that he fought the investigation should be narrowly tailored. wes at the government knows, when you have a special counsel involved, they go where the facts and the question leave them. obviousit does not seem the outside looking in, there may be connection in a narrow scope that seems broader. the president is made politically difficult

position. off robertaid hands mueller, you have to let him do his work, and we know the president is increasingly frustrated to the extent it appears that any of this program is going beyond russian election interference. again, today's development may be important particularly when we have a better understanding of the scope documents that the team is searching for. be clear here,o michael cohen as president trump's personal lawyer and has no role in the white house, is that correct? he iset: that is correct, the personal lawyer, and it is important to understand what that spans. from business dealings to real estate to some of the election related discussions that took place in confidence. a client, andand if the client is the president

of the united states, they are covered by attorney-client privilege. the way mr. mueller's team must go about looking for documents in a situation like this has to be very carefully sequestered to protect the attorney-client privileges. julia: many great points and a pleasure as always. let's get the first world news update mark crumpton. mark: an agreement has been reached to get more services to the leadexports to drinking water in flint, michigan. . will partly solve the lawsuit in the state of michigan and the flint school district the american civil liberties union cause the cyclical first step. flooded for water months before the disaster was declared in 2015. partly washington dysfunctional, florida governor rick scott today said will challenged editor bill. nelson in november and

announcing his candidacy in november, scott called for term limits in congress and slant career politicians he says make washington a disaster. >> we can change washington. we must change washington. we will change washington. together, let's get washington to work. nelson istor florida's only statewide elected democrat and he says scott will do anything to get elected. new investigations are underway into an environment and protection agency scott pruitt. there conducting five investigative audits related to prewitt, including alleged spending and timesheet abuse by his security detail. on friday the associated press reported the 20 member team

providing protection for prewitt racked up expenses approaching $3 million in his first year. illinois democrat tammy duckworth has become the first u.s. center to give birth all in office. she delivered her second daughter, miley perl, today. she is recovering well, if 50-year-old veteran who lost both legs in the iraq war is one of only 10 lawmakers with given birth while in the united states congress. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. let's get a recap of today's market action and start it off a solid rebound. it peter did out by the end of the trading session, and part of it was because of an article in the new york times claiming that fbi raided offices of president trump's personal lawyer michael cohen. joe: important to note a lot of

the rally had been erased, and once the headlines hit, is less than 200. nonetheless, they gains started to unravel and this exhilarated at. in terms of industry groups, telecom and industrials declined. julia: the most punitive rest sanctions yet to ascend on russian companies and oligarchs as is kremlin attempts to contain the damage. and more sanctions on russia next to the attacks on syria, the deputy director of the institute for advanced russian studies joins us now from washington. great to have you with us. you can take your pick, whether it is sections we got from the u.s. administration that but that was a long timewashington. coming -- and as you point out, a potential ratcheting up of the sanctions with the u.s. and the

russians who is now potentially involved in syria. it increase in u.s. sanctions over what occurred in syria. we should also be on the lookout for new sanctions from the eu. they did not follow the u.s. sanctions last friday, but in light of the attack in syria, one should anticipate the eu entering the sanctions as well. julia: what might the sentience but that given the significant step up we saw last friday? >> based on what we have seen so far, you can anticipate going after more oligarchs and people close to vladimir putin. i think what u.s. sanctions have tried to do is identify certain tin, andclose to puk go after him. after one person, who

do go after tomorrow? markets do not like that risk and that is why there's so much uncertainty in the russian arena. joe: we saw a russian aluminum company get up liberated today. it said early on that one of the acceptis we can't payments right now, which is not a good thing if you are in the business of making money. explain to us the mechanics of why these sanctions have such teeth. you hear about sanctions and they don't do anything, but these have some real teeth there are impacting the operation of this company. william: it is the question of access to foreign markets. this means won't be able to have that access. . has been trying to engage in various transactions and those are now highly questioned as well what it looks like is going to happen is the russian state is going to have to bail out. it looks like it will have to do so again.

sanctions these particularly harsh is that they are going after the close circle. but they are so uncertain. going forward it looks like we have entered a new stage that we go after theto t oligarchs. when the first was the billing as cannot in the first u.s. sanctions, everyone laughed left it off because it was a list of billionaires and no sanctions attached. today's events have shown that the sanctions will have teeth. when you go after close associates of putin, they don't have anywhere else to turn. you might also see a med -- to get her best assets back into the russian federation. scarlet: how do you expect russia to respond? once the dust settles and we get a sense of what the sanctions do, what are their options? william: there are a variety of

options and you can look at different areas. one is russia will do a proportionate response and will try to identify euros companies that have presence in russia. there are still several who have presence in the country, mcdonald's, pepsi, and so forth. they may impose sanctions against them, and there are other ways russia can respond. for example it may decide that the u.s. issued sanctions against russians, we are going something disproportionately duchesne and put pressure on the u.s. i do think there will be asymmetrical response, i think it will be aired a symmetrical response were russia has leverage. the message from the u.s. and ministration when it announced sanctions is the sanctions will remain in place

with russian oligarchs. what is the prospect of oligarchs tackling the president to try to they can change his ways? thesem: i don't think oligarchs are about to challenge vladimir putin. they or their fortunes to vladimir putin and they have nowhere else to go. it will be able to put their money in miami or visit their money in london. the only thing they'll be able to do is to rely on the protection of the russian state. therefore it is highly unlikely that this is a group of business people who can mobilize resources to challenge vladimir putin. someone rightly said was been reelected with over 77% of the vote. julia: to get how moving to london workout recently. -- thee show action sanction cop people i surprise

and there are shifts happening in the trump administration. the emergence of michael bolton at the departure of michael anton, who has a different ideology about foreign policy. to city meaningful shift in whether it is russia or other see other're about to surprise most are consistent with what we saw in the first year of the ministration -- the administration? trumpm: i think president has been hindered and try to change the u.s.-russia policy, and now with mr. pompeo and alton, i think is going to have a harder line vis-a-vis russia. even if he doesn't want to have it. over the next few days, if tensions really ratchet up over for putin ands trump to have a phone call or something like that. harshest voiced his language today against vladimir putin. it is unclear whether he has the political capital to retreat and

try to find in the area where the u.s. and russia can cooperate and work together. is going to be much more difficult. what is going to be interesting is -- donald trump going to get a serious lesson in fake news coming from the russian federation, and will have to wait and see how much he likes it. meant should clarify i john bolton and that michael bolton. [laughter] it has been a long week. scarlet: he knew we were talking about john bolton. [laughter] julia: and it is only monday. scarlet: still ahead, mr. zuckerberg was to washington and his testimony tomorrow. what questions were expecting next. "what'd you miss?" this is bloomberg. ♪

scarlet: mea culpa on capitol hill as market work met with bill nelson, the ranking democrat in the senate commerce committee. meetings,hour-long the senator told reporters got this facebook ceo since her and he believes he is taking it seriously. nelson warned that may not be enough. >> if it is not his side, someone else can be misused for people who are trying to do us harm. i believe he understands that regulation could be right around the corner. scarlet: for mark welcome bloomberg facebook reporter sarah frier who is in washington getting ready for the hearings. in addition to the meeting with senator nelson, we got a copy of

what mark zuckerberg is going to be saying in his prepared statement. the summary here appears to be i am sorry. sarah: that is absolutely the summary because mr. zuckerberg doesn't have anything else to add. the company doesn't know exactly how many users were. affected by the cambridge colleague. they can estimate 87 million, but they don't know. despite the testimony from news they are saying that they are doing a whole lot to try to make sure this doesn't happen in the future. they can't undo what they have done in the past. zuckerberg is going to have a lot of i am sorry and a lot of i am going to fix this. joe: zuckerberg was on capitol hill meeting with key senators. is he trying to soften it up before the hearings? what is the deal here? sarah: it is a strategic move and zuckerberg was to be in a position where he feels

comfortable during the testimony tomorrow. he is not the world's best public speaker coming is try to get better at it the past two years, but he is not used to being under very public press ure. that is going to be a big challenge for him, as he gets warmed up to and private, and is better chances for him in the hill tomorrow. do think there will go soft on him or they will be tough and he ends up squirming in front of cameras? won because he hasn't seen it before, and what we have heard from the company and a lot of people are saying this isn't enough and they don't have the answers yet? i think what members of congress might keep in mind is the u.s. congress has a chance to do what lawmakers around the rest of the world want to do, which is to have a conversation with zuckerberg under oath. they have to opportunity to do it here. i think were not just going to be talking about image analytica.

are going to be talking about russia and privacy overall and talk about what ever has been on these guys minds since they wanted to talk to zuckerberg. everyone else -- the lawmakers in britain are not going to get is the moment zuckerberg has the chance to make the case at the moment for lawmakers to really be hard. may be hard in public and softer in private. joe: on bloomberg today, there was a screen from fox news on, and they were talking about facebook discriminating against conservative views. you expect this to be another big thing that republicans will hammer zuckerberg on, this i get their curators or algorithms systemax the -- systematically buys to the right? sarah: you want facebook to handle fake news, but you don't want facebook to censor certain

ideas. , you want facebook to make sure we are not manipulated by foreign elections but you don't want facebook to become the fbi or nsa. there are so many things the company has to bounce right now. the matter what they do, they're going to make people upset. i think one thing facebook might mind tomorrow is that this is not a political event, so much as this is something users around the world are watching. whatever zuckerberg says here under oath is going to be taken very seriously. , people around the world are going to look at this testimony for their answers not just the congresspeople. scarlet: that is a very important point. zuckerberg and facebook users will the monitoring to see how he comes across. julia: thank you sarah frier come and be sure to watch our special coverage as martin burke speaks the executive committee on tuesday at 1:30 p.m. eastern time.

and mike wilson at morgan stanley saying there is a lot of news priced year. what can zuckerberg come up with tomorrow? coming up, this deutsche bank have a brighter future ahead with its new ceo? from new york. this is bloomberg. ♪

julia: john cryan's tenure at deutsche bank is over and the embattled britain was ousted in the board meeting on sunday in frankfurt. lifelock board-check employee come a german, is taking his place. michael moore, u.s. finance team leader, it is the most painful period for deutsche bank and the speculation wildly ruling about

what is next for this bank. what do we know about this guy and his prospects of leading deutsche bank forward? deutschea lifetime guy. that would indicate more of a focus on germany and the retail side rather than the investment bank that is largely out of new york and london. we see, it has been supportive of cryan's strategy in the past and how he will deviate from that. scarlet:of the day go through te motions of going outside of the company or did they want to get cryan out immediately? on reporting, they did reach out to people outside of the bank. heard names from bank of america and jpmorgan, so there was a

search outside. presumably it wanted someone who speaks german and those both sides of the bank and could deal with the regulatory environment. scarlet: is this a job that those guys found appealing more attractive? michael: hard to say. the obstacles there are pretty big. cryan came in with a lot of fanfare, and a lot of people who ubs -- him turned around and is is too much for him to overcome. certainly it is a tough job. joe: besides the domestic german focus, what else is likely to be the major strategic shifts away from the cryan area? michael: a lot of investors expect the shrinking of investment in the u.s. the competition here is so start, and you have a fundamental advantage for a lot of the u.s. players weapon

investing in tech and people over the last two years. deutsche is trying to sort its own house out, and may be further behind on some of those efforts. scarlet: and losing a lot of talent in the process. and market share, the question is do go back to what you know and focus on the european business, which is what you are talking about? to joe's point, a strategic return for the business -- with whye turnovers down now -- are we assuming that he is the of going to come strategically will have a big dramatic shift and it wasn't something john cryan can achieve. they all conflict. is the challenge, and to his credit he was under cryan.

the not going to speak out about your boss at the top job, but people have the question, is going to do something bold? you have stakeholders in germany that don't want them to slash too much. getting a job in the business is tough. not just about one man, perhaps the board is the problem. scarlet: you get the sense he is a placeholder in any way? michael: it is hard to tell. he is certainly not old in a way that would make you think that. -- has not been long tenured. certainly, i think he would have to show some progress fairly soon, because investors were impatient with cryan, they sought capital issues and the

profitability are tougher to do. julia: and the weather in frankfurt is beautiful. [laughter] thank you, wes finance team leader -- u.s. finance team leader. up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: musk stocks close higher but came off their best levels and steadily lost steam to the afternoon. don't miss this, china's president will give a speech in the form in asia at 9:30 p.m. eastern. joe: and economic data at 8:30 a.m. tomorrow. julia: at mark zuckerberg testified before congress and restless our coverage starting at 1:30 p.m. eastern time. scarlet: that does welcome to the xfinity store. i can tell you about... streaming the most free tv shows and movies on the go. yeah, and... xfinity internet. it's so fast! and you can save by... by getting up to 5 mobile lines included. whoa, you're good. i'm just getting started. ♪ simple. easy. awesome.

come see how you could save $400 or more a year with xfinity mobile. plus ask how to keep your current phone. visit your local xfinity store today. mark: you are watching bloomberg technology and here's a check of first world news, you and security councilmen today to discuss a weekend chemical attack in syria that left at

least 40 people, including children, dead. u.s. let the condemnation saint the blame is squarely on syrian president assad. responsible for this attack has no conscience. not even to be shocked by pictures of dead children. mark: president trump says he will decide on a u.s. response and 24 to 48 hours. the fbi raided the offices of president trump's personal attorney, michael:. documents relating to payments to adult actress tormy daniels -- according the nonpartisan budget office says the tax cuts in spending increases signed into law by the president are doing little to boost long-term economic growth. the nine