francine: washington ramps up retalix reaction. robert mueller on notice. presidenthouse says has the power to fire mueller. facebook chief executive defends the social network. ♪ is the worst over for the company? francine: this is "bloomberg surveillance", i'm francine good morning. welcome to bloomberg surveillance. i am francine lacqua in london. lacqua in london, tom keene is in new york. now, we did have a mixed session

in asia. 600 down 0.2%. "leaders with lock" airs tonight, synonymous with skyline, making his name and property, now, he has a new business. investors are focusing to grab a growing market share in e-commerce, challenging amazon in the region. on a possible strike in syria >> we are working with local from the u.s. or some retaliatory measure left, with a retailers and we are their little pressure on the equities. partners. how other international players, exmample for gold. do it, sourcing overseas, or working some other methods -- that is their business. we differ that our partners are local retailers. also coming up on bloomberg surveillance, we talk markets, maybe margins will be smaller said and facebook with larry but that is ok. hathaway. later this morning, daniel we would rather win long-term, morris from bnp paribas, and rather than alienating local retailers. then ed morris from citigroup will there be a price war? for the past two months, there joins us to talk commodities. is a price war. let's get straight to the customers are winning. bloomberg first word news with taylor riggs. 15% cheaper on product. i am so happy people in my taylor: possible airstrikes on region -- they do not have to

buy for their kids at 10% more expensive. syria over the next 72 hours. there was one monopoly controlling human life -- this hashe same time, al jazeera is good for all of us -- of course there will be reported coalition aircraft have been seen over the syrian city. competition. the world is open. so much technology is being president trump has warned the u.s. will respond forcefully to provided to everyone that wants to go onto the scene. be suspected chemical weapons attack by the assad regime. planning long-term? good people with you? vetoed a u.s. are you serious? are you willing to provide the service? francine: is it the service or resolution at the went to create an extra body to determine the product? responsibility for chemical how does the middle east shop? weapons attacks in syria. what is selling at the moment and what will sell in 10 years? he thought he would have been >> if you look at the mix of tasked with finding out who was responsible for attacking zuma last week. vetoia has used the th what is happening in the e-commerce seen, it is not much different than what is going on in the world. people want fast delivery, quality. francine: will they pay for power to block action targeting syria. delivery? >> time being. donald trump has been advised he has the authority to fire robert mueller. people are just learning the art of e-commerce. sarah huckabee sanders shifted that is what global companies the administration's message on are doing. his attitude towards meuller after the president's angry they get you used to this way of life and then take margin and control markets. the usual trick.

response to the raid on his people want quality. longtime lawyer. want to value. this could put his presidency at want consistent. risk. want delivery time that is fast. china is aiming to start asap they want the product they want trading tieups tie up between shanghai and london this year. with changes from one month to creating a system that would another month. direct access to if we have to provide that, to provide the new thing. francine: how important is shares listed in the u.k.. the timing was announced by market share? people's bank of china new right at the beginning so people get used to your platform and governor. not amazon's? the program would be the >> market share is very important. in the beginning you have to be third system to give access to aggressive and provide the best service ever. mainland equity markets. you will be cutting prices as usual -- the good thing, the that is the world's second-biggest by value. >> with this new open-door policy, i am confident that market is big enough. china's financial markets will two players can come in. be more competitive, better regulated and serve the real imagine if you do business in economy much better. it is a fair competition and a u.k. and there is only one operator. level playing field full chinese how fair is that your family? francine: isn't there amazon companies and foreign firms can compete equally. here? mustr: the world economy >> there are other players in u.k. as well.

i prefer more than one player in avoid getting sucked into the the market. protectionist spiral, according to the imf managing director. in the middle east there will be despite that, christine lagarde more than one player and we will be a major player. francine: you can catch that says the fund remains suspect of interview at 9:30 p.m., new york global fund softbanks. time tonight, first airing at >> there is an entire sector 7:30 p.m. london time tomorrow. that is crippled with barriers let's get to the bloomberg first and reservations. world news with taylor riggs. taylor: in algeria, a military that is the service sector. including e-commerce in particular. plane carrying 200 soldiers has we need to move ahead. crashed. the world is becoming more the government says more than digital. 100 people were killed. the plane was a russian built we cannot stay with the barriers jet. of the past. taylor: global news 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries around the world. warning flags have gone up over the possibility of airstrikes on syria. i'm taylor riggs. al jazeera reports that this is bloomberg. francine: thank you so much. coalition aircraft was seen over for globald picture the iraqi border. markets. we have had trade tensions airlines have been told to be abating slightly. cautious in flights over the eastern mediterranean. says hismacron donald trump welcomed his tone tweeting, very thankful for president xi's kind words. country, the u.s. and the u.k. will decide what to do within days in response to the alleged chemical weapons attack.

however, u.s. futures are the white house, president trump pointing lower this morning after the potential threat against syria. has been advised he has authority to fire robert mueller. also, top republicans in congress warn that firing robert top republicans are warning it would be a mistake to do so. the president lashed out after mueller could put his presidency at risk. the fbi agents raided the office we will talk the trump and home of his personal lawyer. administration with stephanie imf managing director christine baker and joining us for the lagarde warns that the world larry hathaway. thank you for joining us. must stay out of a protectionist spiral. let me start off with you, are not the way larry. i am looking at cdf spreads on russia. to address trade imbalances. >> the most important thing is there is concern that to do more trade, then lest geopolitics will be at the forefront of markets. how do you position yourself. trade -- man less trade. larry: the russia story, of course, is that the sanctions. there is an entire sector that that is pretty well encompassed is still crippled with sanctions. in modern pricing. that is the service sector, including e-commerce in the thing that is uncertain at particular. we need to move ahead. the present are the strikes the world is becoming digital. we cannot stay within the barriers of the past. against syria, how that might taylor: global news 24 hours a you ball and who will participate. day, powered by more than 2700 journalists and analysts in more than 120 countries. a lot of details there will be important to follow and they could matter for markets, including the energy markets.

i'm taylor riggs, this is bloomberg. but beyond that, we are looking ahead to more macro earnings, tom, francine? francine: thanks so much. which will give us a respite mark zuckerberg defended his company for more than five hours from some of the political noise inhabiting the markets. francine: stephanie, what are on capitol hill yesterday. the options for the white house shares rose strongly as he personally apologized for the social network's failing to at the moment, what to do next with syria? protect users data. stephanie: it remains to be seen whether he takes the hard-line approach and strikes. richard, i am sure you listened and i think people are urging to the whole five hours. caution because you know, syria good morning. he did a pretty good job. has turned into such a proxy war and this couldia what has he promised to satisfy regulators? >> he did a very good lead to mistakes in the field performance. and they do not have the kind of republican ted cruz managed to back channel communications that rattle him a little bit. are really set up to prevent that. result, that gave investors some back channel more confidence that perhaps things will not change as communications to prevent this in the past, but it is pretty ad hoc. radically as otherwise people might have expected. i think the secretary of defense jim mattis would urge caution however, what seems likely is but once again if he allows us that some changes, may

to carryad, for assad significant changes are going to happen. francine: you mentioned ted cruz. out this chemical weapons attack without any kind of wants, catch there werequestions, any kind of -- any kind of a couple questions that were uncomfortable for 10 minutes. what should we infer? response, a gives a green light to further use of chemical reporter: it is around the weapons. francine: russia has denied, question of political bias. the thing that facebook, google, actually, saying they were on the ground and did not see any these guys are all the same -- chemical weapons. they have an immunity from if the u.s. speaking to russia? could they put pressure on them to put extra sanctions on syria? having responsibility for the content on that platform, as long as they remain completely stephanie: i think the sanctions neutral. if they are deemed to have a issue -- the sanctions announced on friday are pretty separate from what we have seen in syria. political bias and they lose that immunity, that could raise it is related to the election-meddling.. all kinds of problems. however that was a minor area. the real focus here is -- once obviously, russia's actions in syria are part of the overall again, if you look at what the atmosphere and environment. but i do not see that further senate, the kind of questions sanctions against russian the senators were asking, it is oligarchs a russian government clear they do not understand how officials will change the state the internet companies, google, of play in syria. facebook, twitter, work. larry, we were almost it is this reality that needs to

at the brink when it came to the korean been a lot -- korean come much more strongly into the general consciousness, which is, peninsula. we were almost on the brink when users have instructed deal with facebook. it came to a we have seen in the rest of the world when it came that deal is, we will use your personal data for marketing in to tariffs and trade with china. we have seen that scale back. return for the service we provide. the markets take this in stride, they have not been upfront about if there is no immediate strike that. on syria? larry: well, i think it will be this is the main thing that needs to change. tom: richard, two questions. a recurring source of tension and there is something really important. unpredictable about u.s. policy. there is something extremely do these guys play by a alarming in terms of this power different rulebook on a financial basis -- they have play syria and the relationship with russia. i think it is going to take time always felt separate and distinct from the rest of financial america? for that to evolve. basis,cial and cultural we are in a learning phase. doesn't silicon valley and mr. we could get episodic relief, zuckerberg, do they get to play by a different rulebook? reporter: at the moment they have been due to this, due to depending on the outcome of a couple of the reactions which couldn't sue over the next couple days -- which could ensue the fact that they had this immunity from content on their platform. over the next couple days, but i think what is going to happen this could be a recurring problem and has been over the from now on is they will have to last decade. be much more upfront about it, francine: could the president more like a regular company.

fire robert mueller and will basically, we have a service. that impact the market? you can pay with cash or with stephanie: most legal experts your data. believe he does not have the your choice. authority. the white house statement said yesterday that he does. they have to be much more up front. most legal experts believe he that is really what the problem has been. tom: let's go back to david has the authority to fire rob sarnoff, to say the least. rosenstein, the deputy attorney general, who's overseeing the m we went through the same exact conversation with radio, the same with tv. ueller investigation. that could be what we see next. can a tech guy like you do that? generally usually from radio to -- from radio to that good curtail what they are looking at, for instance, say tv to these guys in black trump's past business deals. theknow, any -- it might in t-shirts? reporter: that is a good way of putting it. happen isy needs to end limit the kind of prosecutions and subpoenas the facebook -- you have this special counsel is able to request. there've got someone in problem but i think by establishing a clear andtionship with the user that is more politically pliable and doing trump's bidding. the user starting to realize that does not necessarily mean they are not a customer, they are a product, will actually that that will not be resisted solve this problem.

by members of congress, specifically democrats, who will that is what most of this problem has actually been. the fact that everyone has view that as curtailing the authority. misunderstood how all of these francine: but how will republicans take that? tech companies are working. someis fairly clear from is the system rigged if you can change the person investigating you so they have less teeth? of the questions the senators asked. stephanie: stepping back and francine: richard, we use it day in, day out. looking at this, trump has called it a witch hunt, but in change? instagram reality, all of these actions we have seen have been carried out can facebook rely on two sources by republicans and people who have been appointed by trump. whether it is the fbi director of revenue, platforms to make up christopher wray, rob rosenstein for their failing? up,rter: the issue, first , also a republican. you know, the search of trump's whatsapp does not generate revenue. offices, michael cohen. from a revenue perspective, how you monetize traffic from whatsapp, is again open for question. again, it is a trump appointee, instagram, one area going running that office. particularly well at the moment. revenues from instagram are not going to replace revenues from the entirety of facebook. let's just say, facebook lost

its revenues from its main social network -- if they lost he has to find someone who could be confirmed by the senate to its revenues from its main social network you would see a fill that post. huge loss. i don't think that will happen. people will be given a choice or he is defined summit who and work out a deal. could be shifted over there, if you don't want us to use your which is legally, located as personal data, great, this is well. francine: how does this affect markets? larry: this would escalate what the service costs. francine: thanks so much, matters because it would call richard. fundamentally into question the political sort of make up of the united states. there are any number of people in congress, including want tonow you don't republicans, who would view this as a constitutional crisis if it came to an unwa rranted political counsel talk about facebook but does this show that tech stocks need to be regulated more in general? in certain areas when it comes to social platforms? investigating more broadly does it mean you as an investor campaign-finance and campaign would cool off in that industry? issues of 2016, ultimately leading to the presidency itself . from that perspective, it would daniel: you have seen this underperformance of technology have to be taken is very bad in the last month, trade issues news, even if one accepts in the between the u.s. and china, and midst of a midterm election, quite separate issues around regulation for the sector. there is not much politically that could be done that would change policies on which what does that change for earnings and valuations? ultimately markets trade with they have been trading on a high

the entire uncertainty of what would then evolve over the multiple that reflects expectation of ever rising coming year or two, at least revenue growth through advertising. if that changes, you have to until 2020, i think a be very adjust the multiple. damaging to market confidence. to buyfive year horizon, francine: thank you to stephanie baker and ver stocks, you would be thinking more about, is there a fundamental change in the larry hathaway stays with us. directory? coming up, the social network's we still think it will be positive, if you think about chief executive defensive company in front of congress. the highlights from mark globally, information technology zuckerberg's marathon testimony. becoming more prevalent in every sector. and saudi officials signal a for thein is negative $80 a barrel. sector and that has an impact on this is bloomberg. expectation but within context of other opportunities that does not change what is for us, a ♪ fundamentally positive outlook. with dan andnue holger in london. yesterday, a smart issue and what a surprise. who is on the cover? who could that be? how about mr. zucker bird in his many shades of gray -- how about

mr. zuckerberg in his many shades of gray and color? this is bloomberg. ♪

francine: economics, finance and politics. this is bloomberg surveillance and i am francine lacqua. mark zuckerberg defended his company for more than five hours on capitol hill. shares rose as he personally apologized for the company's ♪ failure to protect user data. >> we did not take a broad good morning everyone, enough view of our responsibility and that was a this is "bloomberg surveillance" , i'm francine lacqua in london, big mistake and it was my mistake and i am sorry. there is a very common tom keene is in new york. misconception about facebook this is creating a system that that we sell data to advertisers and we do not sell data to would give chinese investors advertisers. >> you are not necessarily direct access to shares within the u.k. the change comes as a party of rigid. >> we allow advertisers to tell broader policies that would us who they want to reach and we further open up the nation's financial sector. do the placement. of berenberg, we we think offering an ad supported service is aligned with the mission to connect everyone in the world because we want to offer a free service everyone can afford. yes, there will always be a heard from president xi jinping yesterday, are they giving the version of facebook that is free. u.s. what they want or is it

it is our mission to connect everyone around the world and to reforms by opening up the market bring the world closer together. that were promised in the past to do that we need to offer a service that everyone can afford but the delivery, the execution and we are committed to doing will be faster? daniel: whether or not it is that. >> but do you have a monopoly? >> it certainly does not feel giving everything the trump administration wants, it is like that to me. worst overo, is the certainly not, it is going to be tension filled when we get to for facebook and what next for the social media giant? that. we are joined by larry halfway. the more important point -- the nate, great to have you on the program. comments that xi jinping made it you listened to the entire was a rehash of what you heard in davos last year. five-and-a-half hours of you had a nice speech, everyone testimony. overall shares rose, so he seems to be doing a good job. nate: absolutely. applauded the openness to trade but nothing happened. hopefully one year later, with he did not crumble within the first two minutes, which most pressure from trump and the people would be at risk of doing. he seemed fine and kept his cool administration, some of these throughout the whole thing. proposals will be of limited. francine: if there is a he even got a few laughs out of semblance of giving them what the room, which, under the they want, trump can take the circumstances, is not an easy win, trade tensions de-escalate? achievement. personally, i stand daniel: that would be the minimum we expect. up for five hours watching this, i made my wife watch it, too. you will get rhetoric but right now you have too much focus on

it, and not just trump. i think he did ok. you have the other people in the administration, not going to let that happen this time. probably got the harshest grilling from senator ted cruz, republican, because he kind of they will expect to see actual implementation of changes as focused most of his line of opposed to rhetoric. which is what we have gotten questioning around whether until now. tom: but the method is critical facbeook was politically biased here. in favor of one side of the the chinese in every case can wait us out. to themp is beholden political spectrum or the other. so, you know, zuckerberg first tuesday of november in this year in america -- the definitely had to fight quite hard to prove that they were a chinese are not. are they? neutral platform, that they do daniel: absolutely. not have a political preference. but he was grilled. it is going to be what ideally he was asked whether the people in charge of reviewing content on facebook, what side of the the administration would like to get an except. political spectrum did they lean there will be a significant gap between that. we anticipate we will see on. which is not something a ceo in reduction in tariffs and some that position could speak for. opening of the market. it was tough going that section. francine: larry, will they be that is something the europeans want just as much. regulated, or do you think mark zuckerberg gave enough as you point out, that allows trump to claim a win and the assurances? regulation of recovery of the stock market helps him in the election. the political strategy from his

point of view -- there is also congress could take time. an economic objective. it will be very contentious and tom: holger schmieding, i have during an election year, not much gets done. regulation is already coming this idea that everyone will be from europe. it will impact many users of doing brexit lite, i can't internet and many providers, as remember where i stole it from. well as other forms of data is china going to be doing handling. brexit lite? from that perspective, my senses yes, over time these companies this --brexit li is will increasingly be seen as entities that must safeguard the rights of individuals, around think of china. their personal data and that will probably imply some degree of regulation. francine: how much exposure do they are far behind the western world. to tradeds openness you have two tech stocks? are tech stocks still the way of the future? ideas, much more even than the has it changed your view on security? u.s. and europe. larry: since early march i have quite likely when the dust settles, china will give in seen tech stocks as one of the somewhat. weaker parts of the market. it will not grant trump an easy they have suffered episodic weakness. victory. some of it is idiosyncratic and it does not want to encourage some of it is around facebook. trump to come up with further our preference has been to look demands. they are walking a fine line. at the tech stocks which are much more sales oriented, in they're clear interest is in terms of the growth prospects, their own plan for national

development, they need trade theythe west and hence, reaching up to consumer markets, health care markets, even into financials. will do quite a bit to protect that clearly puts the likes of themselves against the risk of protectionism. amazon, baidu, as an example. i think what we heard yesterday was, in a way, the opening of that is the forefront of where serious negotiations. we think the most promising long-term stories are. it will be noisy. it will take a while. i do take the view that some of the data collectors and in some in the end, the interest of ways, data users, which include china suggests that instead of trade wars, instead of brexit facebook, google and some others lite, we will get progress. are going to come under real scrutiny and i think the share francine: germany has massive ag.ces will probably l surplus. peter navarro had a go at francine: what did zuckerberg germany for that. specifically say about how they is germany next in the firing will do better next time? line of the trump administration? >> he promised they would have holger: it might well be next in the fire line of rhetoric. more people looking at content, to make sure that hate speech germany is well protected. and related issues are not it does not set its own monetary policy, for instance. allowed onto the website. be having ang to it's fiscal policy is exactly adequate. they have growth and are running much more proactive stance on a small surplus. the kind of advertisements response, if you allowed on the platforms.

they will tighten up the amount of data that the app developers think germany should do more in have from facebook users and a monetary policy to stimulate domestic demand, we can give you lot of this stuff is stuff we knew in advance. a phone number in frankfurt to facebook have in making a raft call -- the germans would not of announcements over the last agree with that -- the physical few weeks to combat this bad press. most of those announcements have element, the germans would say it is your deficit in the u.s. been positively received and were just reiterated. has reaffirmed that the and your fiscal stimulus in the u.s. which is adding to the u.s. deficit. do not put the blame on the user data is their data. this is a key issue. germans. there is not much headway trump could make putting pressure on he was asked if facebook germany. tom: what a great conversation owned that data or if the users owned the data. with stephen engle yesterday. he was very clear, the users own china advances discussion right the data and they do not sell it now with two headlines coming to advertisers. we heard that during one of the across the bloomberg. soundbites a few moments ago. they hope the u.s. makes the that gives a lot of reassurances right choice. to the facbeook users, there are i will leave that to the foreign ministry of china. another idea from the chinese -- over 2 billion of them. 98% of the revenue comes from they managed their message this morning -- the idea that the this. francine: now will they focus attitude is clear and they are waiting for the u.s. response. more on instagram? that would be a trump response.

we will drive up forward this conversation in the 8:00 hour. nate: instagram and whatsa someone who has been dead on in pp got referenced. the lack of blue in china. stephen roach, of yale there is a huge crossover. university, this is bloomberg. but at the end of the day, even ♪ if one of these networks get smaller overall, the industry is getting bigger. francine: larry, in the tech space, you like retailers. which ones? will we see a war between amazon and alibaba and we don't know who will win it yet? larry: that could becoming done the road, the right now they have a strong presence in their own markets where they do not compete very much head to head. it is domestically in the u.s. or in china. going back to some of the names, tencent, baidu, alibaba, clearly in the spectrum -- softbank is also an interesting one to watch. i think it goes beyond that to extend to cloud computing. microsoft being a key name in that space.

it is that in annexes of being able to provide an array of i.t. services, computing with the cloud, or opportunities within the retail space which to us look like the best longer-term storage in the tech world. francine: thank you both, nate lanxon and larry hathaway stays with us. let's talk oil and opec ministers went to new delhi today for the international energy forum. at the top of the agenda is the goal to clear the glut, as well as the ipo of saudi aramco. joining us now from new delhi is a reporter. the energye spoke to minister of saudi arabia. we understand, and he did not answer directly, they are targeting $80 per barrel. have we heard from the others if that is too much or too littl e? >> good morning. the saudis are looking to target, for those familiar with the matter, they will be looking

at $80 a barrel. for a consumer like india, that is too much. i spoke to the indian oil minister and he is looking at $50 per barrel. take a listen to what he had to say, francine. >> we do not see any reason why it would be so high. it should be reasonable. happy ife more than the price was around $50 or more. the iranian oil minister, we spoke to him on the sidelines of the meeting today and he said $60is fair. when i mentioned that the saudi's were talking $80, he said, 60 dollars is fair, especially in terms of long-term stability in the market. i have to say, at $70 per barrel we could see oil get a boost. they are talks of a possible imminent strike on syria. if you take a look at what

happened one year ago to the day when donald trump launched a ♪ missile attack in syria, we saw oil surges 60%. francine: this is "bloomberg surveillance". we could see short-term gains in oil as well, due to geopolitical i'm taylor riggs, let's get the "bloomberg business flash". tensions in the houston region. inncine: annmarie hordem meeting high demand. according to people familiar india, following the forum very closely. with the matter, the european i guess the concern is we could playmaker and buyers have agreed see sanctions on iran. to raising to 63. that would impact oil coming from iran. you could see in action on syria, which would engender all playmakers have pushed back against higher quotas, signaling sorts of possibilities. they are too stretched. his oil now the most volatile asset that we have over the next couple months, depending on bank of america will no longer land to some gunmakers. thevice-chairman tells us geopolitics? >> it does seem to be supported by these potential bank will not finance companies supply concerns. rand is one. that make assault style weapons used for nonmilitary purposes. let's not forget russia and the february school shooting in sanctions. florida set off a wave of if that became a bigger issue pressure on banks to cut than surely that part of the market would come under pressure. and then as you say, military services to the firearm industry. the improved outlook for u.s. strength, though it is or is not

aluminum sales might be too much of a good thing for outcome a a producer or exporter of oil, but in the broader sense of middle east tensions. investors.- alcoa i think these prices therefore, can stay at these levels, given alcoa stock trading within 6% of the underlying conflict the target, leaving little room mentality is there from a fundamental perspective. the rate of return on those for gain. middle east and oil producers is it reports earnings next week. very healthy at these prices. that is your "bloomberg business i cannot see a fundamental need flash". tom: away from international to see higher oil prices for what you are trying to accomplish. we see that in north america as well. relations, let's look at dynamics chairman powell will are beginningnts look at on the path to may 2. daniel morris with us. to pick up impressively. i do think over time that will this spread, simple as you can. become a dominant factor once again and we will probably see we have a rollover but still oil prices be pushed lower. down with significant flatness. near-term though, it is a very there are other spreads that dangerous game to play. file could be sustained at these look just as interesting. levels are heading higher. francine: will it reach $80? what has your attention? what should chairman powell look at when he looks at the spread or will something big have to happen? market? daniel: as you point out, not larry: i think something big has just 2-10, there are plenty of to happen. it would need a credible approach by saudi arabia, which areas where you see flatness would imply production cuts, or that does not look sustainable. we would need to he a fairly

it is just a question of, does interesting disruption in supply. larry hathaway stays it normalize and when does that happen? they are asking themselves, is this a signal of approaching with us. we talked about ahead for the recession? fed chair as the get u.s. inflation data today and we talk we do not think that is the about trends. case. we think there are other dynamics behind it. of course, we have larry we think spreads will widen. hathaway talking to us about u.s. treasuries. we think yield curves will this is the state of the u.s. market as we speak. syria hanging over a lot of the asset classes. stephen. fundamentals -- we think yield i want to show you what is happening to the euro-dollar. curves will steepen. fran, i look at this and i the dollar is drifting a little bit before the american inflation data. we also get the release of minutes from the latest federal reserve meeting. think you can transport it to oil is up a touch. mr. draghi as well? francine: you could but there european stocks are down. are many questions, if you look is bloomberg. ♪ at the fed before we get onto mario draghi -- if jay powell retail. decides to be data dependent, is it the same as before? it means he might model things in the future less? holger: it is the same as before. the fed is data dependent. backward oriented.

we have to extend the data, we now have a few new uncertainties. we don't know how the fiscal stimulus will affect the economy. on the other hand, how much trade tensions will have impacts on tensions. we are heavily data dependent. the u.s. economy will probably do fine and as it stands the fed will probably hike a few more times this year. tom: could not agree more. data dependency is what we are driving toward on april into the second quarter of 2018. daniel, thank you. in our next hour, the definitive interview, edward morris of citigroup. this is bloomberg. ♪

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. francine: economics, finance, and politics. this is "bloomberg surveillance ." let's get to the bloomberg first word news. here's taylor riggs. taylor: u.s. equity futures have

dropped after an agency asked airlines to apply caution on flights to the mediterranean region because of possible airstrikes from syria. at the same time, al jazeera has reported that coalition aircraft have been seen over the syrian city. president trump has warned the u.s. will respond forcefully to a suspected chemical weapons attack by the assad regime. russia vetoed a u.s. resolution as the u.n. decreed a new expert body to determine responsibility for chemical weapons attacks in syria. the body what have been tasked with finding out who was responsible for an attack which killed 70 people. it is the 12th time russia has used its veto to block action ♪ targeting syria. trump saysent donald he has authority to fire special counsel robert mueller. white house press secretary sarah huckabee sanders shifted tom: good morning everyone.

the message on his attitude after the president's angry this is the new definition of response to a raid on the office imminent. the president's imminent of his lawyer. that comes despite top republicans warning that doing response to the use of chemical weapons in syria, stretching so may put his presidency at risk. from monday night to this morning. will there be an allied response? global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. inflation is imminent for i'm taylor riggs. chairman powell. we get inflation data this this is bloomberg. you so much.nk morning. inflation based on wealth? we are getting some breaking news out of the u.k. i want to look at currencies. eminently in this hour, edward morris of citigroup on i have a chart. syria-saudi arabia and the production,strial realities for oil. good morning everyone, this is "bloomberg surveillance", live worse than expected for the month of february month on from new york, i'm tom keene. month, 0.1% instead of 0.4% in london, francine lacqua. expected. extraordinary this morning. are you listening for anything manufacturing is also worse than from prime minister may on syria expected. today? -0.2%. francine: we are. we understand world leaders are i'm trying to think whether there are bank holidays are it speaking amongst each other to see whether a response -- a

could be impacted by the weather. retaliatory military response i will check it out. against syria -- would involve construction output for the -1.6%of february also more leaders. some are saying they want more proof that it was the assad instead of the 0.9% expected increase. pound-dollar, 1.4203. regime and others are saying we will stand behind the u.s. markets are nervous. for variousroxy war the latest episode of leaders with lacqua premieres tomorrow stakeholders, including russia. tom: let's get the morning night. i spoke with the founder and briefing. chairman whose name is our first world news, here is taylor riggs. synonymous with dubai's skyline. officials have grab growingims to spoken with allies about a joint military response to the poison gas attack in syria. market share in e-commerce. i asked how he plans to challenge amazon. the u.s., france and the u.k. have been in talks about >> we are working with the local launching a strike as early as retailers. the end of the week. syria's government denies it is how other international players responsible. init overseas or working russia says it has found no evidence it happened. china adding more details to a plan for an opening of the some other methods, that is their business. financial sector. our partners are the local the nation's top central banker retailers. maybe our margins will be a

says there will be a new tie up with london, leading chinese little smaller, but that is ok. we would rather win on the long-term. investor eckley in british listed stocks. will there it -- will there be a beijing will ease caps on security companies. price war? with this new open-door customers are winning. everybody is 20% or 15%, 10% cheaper. policy, i am confident china's people in my region, they don't financial markets will be more have to buy milk for their kids competitive, better regulated and serve the real economy better. 10% more expensive. it is a fair competition and a level playing field, so chinese i think this is good for all of us. companies and foreign firms can compete equally. taylor: meanwhile, wall street amazing thing is that the world is open. so much technology is being banks face higher capital provided to everyone. demands under a new federal reserve proposal. this buffer is designed to streamline regulatory demands on are you serious about it? banks. the fed it would relax the annual stress test, the most are you willing to provide quality service? significant rewrite yet of francine: how does the middle east actually shop? requirements proposed after the what is selling at the moment and what will sell in 5, 10 2008 financial crisis. day two of mark zuckerberg's years? it is not much different from apology tour on capitol hill. he will testify by a committee,

what is going on in the world. people want quality. francine: will they pay for the zuckerberg promised he would do better after failing to do delivery? enough to keep facebook from >> people are just learning the being misused for take news and hate speech -- four fake art of e-commerce. that is what global companies are doing. news and hate speech. global news 24 hours a day, powered by more than 2700 maybe control the market. journalists and analysts in more what i'm saying is that people than 120 countries. i'm taylor riggs, this is bloomberg. want quality, value, francine, tom? tom: equities, bonds, consistence, delivery time that is fast, and they want a product securities, flatten, futures that they want which changes take a turn, negative, dow futures, negative. that after a bang up day yesterday. from one month to another month. curve flattening. francine: how important is oil stable after a lift, the market share, so that people get last two. the vix, 20.96. used to your platform and not right on the screen, turkish amazon? >> market share is very lira moving. important. you have to be aggressive. francine, i loved what you showed earlier on the i've year you have to provide the best cds for russia. service ever. francine: that is important

because we are looking at new that thething is sanctions -- whether there will market is big enough. two players can come in. be any more sanctions and what is behind -- the oligarchs getting punished. falling, i would imagine if you do business in the u.k. and there is only one operator. francine: isn't there only look away from the dollar drifting and treasury higher amazon here? >> there are other players as because what you said of the inflation report from the fed. well. i would watch out for euro, i prefer more than one player in the market. in the middle east, we will be there is a big speech from mario draghi later. month -- one of the major euros, we don't players. francine: you can watch that interview in full at 9:30 p.m. often look at it but expectations from the ecb seem u.k. time. to be remaining in lockstep. that currency pairing has risen i think you can also catch it on the weekend. 0.5% this week. we are back with larry hathaway, 18m: stronger euro on the 1. talking about the virtues or concerns for e-commerce. handle this morning. how many of the more traditional joining us now as we resume our retailers will they displace? i think quite a few. conversation on the markets, we need a washington briefing from kevin cirilli. it is less about particular names. we've seen some firms that have we are thrilled to bring you from berlin, a gentleman with

suffered. huge middle east experience, andrew as well. i think it is also about the geography of shopping. kevin, let me start with you. the inconvenience of going to the high street or the big-box here is the senator from virginia. >> i am not a legal scholar on retailer on the edge of town is going to mean there is real this but i agree with my friend displacement in real estate lindsey graham, republican overtime. senator from south carolina -- if trump tries to fire mueller, francine: if you look at the ,ategories for the future it is the beginning of the end of his presidency. tom: very strong language from mark warner. i want to move to the real driverless cars, energy, health focus, what the president could care, and e-commerce -- do, our brilliant deputy attorney general. e-commerce has been a disruptor for 10 years. here is the guy, out of do you see less value? larry: within the e-commerce pennsylvania, harvard law review editor, -- will the president go after him? spectrum, logistics remain a key mr. rosenstein. area. i think it really depends it is good to have convenience and low prices, but i do think there's also a whole array of on the decision he is going to listen to or not listen to. circleice of his inner products and services that are not quite so inaccessible. -- quite frankly, they have been think about financial services. advising him for quite some time not to do any of those firings. the acquisition of a car loan or

things ought to the president of course, within the last 48 hours and yesterday specifically, telling reporters, be available over similar types ruminating out loud about of platforms. whether or not he would make that decision. all of this comes with syria in i do think the spectrum of the backdrop. services that will be offered i spoke with one source that through e-commerce is going to suggested any decision of him grow here. potentially firing someone could aboutne: let's also talk ultimately lead to a worst candidate for the president. he is weighing that the prison jay powell's big fed day. inflation, the, -- he is weighing that decision as well. tom: we heard from senator pickup that the fomc has been warner of virginia. waiting for, and more insight will there be an upset or different upset if trump throws into whether there's been a change of tone. the deputy attorney general out how close is the fed to the door? kevin: they would be just as upset. declaring mission accomplished on inflation? when i spoke with senator warner when you look at what the markets are pricing in, will it yesterday, what he told me after therewas essentially that depend on the key data point today? larry: today's data point might is bipartisan agreement among centrists and the core group of not matter that much. lawmakers here on capitol hill, that that is a nonstarter. that is dropping out in terms of the equation. also and, there is

understanding according to senator warner that the investigation would still it is widely anticipated. continue. i would note some of the political tea leaves we heard i don't think there's any doubt that the trend is higher for wage inflation and price yesterday with him a last couple inflation. of hours right before the evening. n, the president's it is a question of how fast we get to the fed's threshold and beyond it. personal attorney, saying that at the same noted the fbi was respectful in their raid of him. time, there are signs that global growth may have peaked. we see indices coming off of that differentiates from what president trump had said which their highs. was a staunch criticism of the fbi. playing nice with in asia, they are coming down the fbi yesterday. from more modest levels. francine: good morning. i want to talk about syria and i think there's going to be a bit of a struggle between a go through the implications. pickup in inflation against some what are the options right now peaking of growth. monday, tuesday, after president trump said there will be consequences? what can the u.s. do? we have an economic forecast only military action or can they put sanctions or how do they ahead of the spring meetings. deal with this? kevin: every lawmaker that i if you look at what we know from spoke with in and out of the

jay powell so far, he seems to be looking at the fed policy mark zuckerberg hearing, i asked about syria and. democrat,publican or differently. models, i'm not trying to they are united in the sense that there must be some military component of a response with what could happen. is that a fair assessment, and regards to syria. does that not make it more risky? larry: different language, but a senator richard blumenthal, democrat from connecticut, said similar message. that as well as republicans. message,hin that on the second point, there has to be some type of sanctions addressing this. perhaps harkening more to the dt has to go beyond the assa , is the idea that inflation is still below target. regime, according to republican and democrats. that is where the test i think is going to come. they feel the targeting of surrounding the regime if inflation begins to as well as with russia and vladimir putin -- that has to continue. accelerate, there's going to be some backtracking by the federal i think you will see that. te president reserve. i think inflation is critical for the timing of fed moves. francine: what would a fed trump announcing yesterday he was canceling his attendance of the peru a summit. mistake look like? larry: underestimating inflation -- the peru summit. he is sending vice president is the simple answer.

mike pence in his place. that could be both in prices as well as wages. some saying this is a direct not just the phillips curve, but result of a looming decision on syria. also the response to higher francine: how difficult is it to inflation that may engender have targeted strikes if the further demands for higher u.s. strikes? wages. how many leaders will be behind it is really and expectations the u.s.? game. francine: if the phillips curve does that actually stop further chemical attacks? i know one person of, howthe question many leaders, is key. who would be excited about it, do we need to ask ourselves why the more people on board, the more legitimacy you have. it was dead or broken for a couple years, or do we move on? that is why we have seen france larry: larry: i think that involved, the u.k. involved. we even saw saudi arabia's crown analysis will be part of any prince, mohammed intimate they discussion in the capital markets and elsewhere. opinion, the reason it has might get involved. the longer you take, the more difficult it can get. you probablyrian, taken longer to restore is probably less to do with things want to take any asset of value like e-commerce or globalization or your family and park yourselves right next to the factors. it has much more to do with russians. subdued inflation expectations. it is unlikely the u.s. will want to hit any russian assets in syria. you have a race in seeking legitimacy, the backing, at the people see that wages are going up.

same time making sure if you hit then the acceleration of inflation may no longer be quite something you can make a difference. tom: we will talk to edward so gradual. morris about saudi arabia, the sunni politics and access toward if that happens, it really changes the pricing dynamic in persia and iran. capital markets. tell me about the united arab francine: thanks so much. emirates? what do they want after a larry hathaway stays with us. bloomberg users can interact chemical weapons attack in with the charts using g tv . syria? andrew: after we had a chemical weapons attack, we had a strike you can pick up some of the on a syrian base which was starts that the queen of charts, telling. it was largely attributed to israel. hillary, has been doing for us. they fired missiles, took out a presidenthe u.s. base, killed some iranians. plans for a potential attack against assad. we will look at the possible there was very little reaction from the rest of the region. repercussions. this is bloomberg. ♪ gulf arab monarchies have been consistent. outragedagainst assad, by chemical weapons, the images were horrific. you will see support. nbs was just in the u.s. and

this came up. tom: in france as well yesterday, kevin i want to switch back not to syria but to ,ow the president acts because his support is bedrock and foundational. david brooks writing a superb anti-trumpism in the new york times, mentioning the school of chicago. -trumpism has a tendency to be condescending. professors wrote an op-ed on how to not fight trump, based on the italian experience. don't focus on personality or the man, that will just make trump the people's hero against the washington cast. focus instead on the social problems that give rise to trump. kevin, have these people wavered

with the uproar over mr. cohen, , do female one, female two you see any wavering at all? kevin: a little bit. i speak with a lot of democrats and there are two schools of thought. the article you just dated is one. conor lamb of pa congressional district 18 would agree -- focus on the issues. senator amy klobuchar would agree. she is a driving force behind bipartisan legislation to get more disclosure of social media as. twitter -- of social media ads. there are other folks on the other side look at democratic donors who are advocating for a more hands on, take it approach where you fight him politically with the rhetoric he uses. that is an interesting tension that will shape well beyond the

midterms and into the 2020 cycle. francine: more immediately, away from midterms and the 2018-2019 inle -- a military strike syria, what are the chances of hitting a russian target? if that happens do we have world war iii? francine: you are watching andrew: that is what they are worried about. "bloomberg surveillance." trump is under intense pressure to hit them hard. the white house is ramping up preparations for a potential one year ago they sent in 59 tomahawk missiles, they took out retaliatory strike on syria. one base and there was no lasting damage. u.s. equity futures dropped that aircraft were they need to do something much bigger if they want to make a difference. it is more complicated now. , one of the most seen over the city. what could the fallout look like? joining us now is the principle heavily defended airspace is in russia analyst. the world. larry hathaway is still with us. the risk of hitting russians israel. good morning to you. real. what happens next? u.s.e question is, if the the u.s. accidentally killed does decide to go forward with a mercenaries in a failed attack on a base. strike, what will probably if the u.s. were again to hit

happen is the u.s. military will use what are called channels to russians it would escalate quickly. tell their russian counterparts russia is telling the u.s. where that the bombs are about to drop they are but at the same time, syria is aware of that and , to allow any russian military trying to park assets close to personnel or material to be the russians. evacuated. battle space, this is what happened in april of last year when there was a turkey, has below, the risk -- similar set of strikes. the risk is high. -- aa terrific breathing essentially, what ended up happening was a number of terrific breathing as we moved to edward morris on oil and the airfields were put out of commission. in terms of lasting damage or levant. changed fundamentally, kevin cirilli, thank you, andrew, -- kevin, where a black not much was accomplished. there's little to indicate that t-shirt, you will look better on capitol hill. coming up, i'm thrilled to speak it is going to be much better this time. francine: who is on the ground with the woman from chicago. she is from chicago. in syria? we know the russians are there. are the iranians there? penny pritzker, the former that understanding is secretary of commerce, we will talk about these many events and the politics of her democrat syrian army forces are backed by party. this is bloomberg. ♪

russian military advisers and airpower. iran has provided regular forces. have the various opposition forces on the ground. we saw a mysterious airstrike that are presumed to have been launched from israel. russia did get advance warning, whereas iran did not. really, if we are talking a u.s. strike, a u.s. strike that also hits iranian personnel is less of an issue because iran lacks the capability to really hit back. you have coalition aircraft striking russian forces, you could potentially have a major political crisis. francine: you have other world leaders saying we need unequivocal proof that assad is behind this. >> correct.

there is little doubt as to who is responsible for the deployment of chemical weapons in syria. the bigger question is, what do you do about this? what do you do in terms of an intervention? unless you are willing to do something that fundamentally changes the situation, which nobody is willing to do -- francine: because then you have the russians on your back. >> or even if you didn't have the russians on your back, we're still seeing the fallout from iraq, from afghanistan. francine: if you do a military strike, does it stop a chemical attack in the future? >> this depends on the calculations of bashar al-assad, his military, the degree to which the russians can constrain them or not. there's a lot of unknown unknowns there. the airstrikes last year don't

seem to have been enough to deter future chemical strikes. there's very few ways the u.s. can escalate to try and an act greater deterrence without potentially bringing in russia. francine: i want to get back to markets in a second. they -- that that ♪ francine: this is "bloomberg there was no chemical attack, does it mean they are ready to surveillance". go to war with the u.s. in case i'm taylor riggs, let's get the of escalation? "bloomberg business flash". lessof the largest whilire >> i don't think they are envisaging that scenario at the moment. shove, came to absolute carriers in the u.s., it is not clear what they are discussing back in february there was an instance in which a russian after talks to combine them collapsed. mercenary company was destroyed in the process by u.s. forces as google wants to reach more users they were attempting to assault and oil refinery, and russia by offering in-flight high-speed internet. talks withow in kept quiet about that -- that is nokia's broadband business. a different situation.

we are talking about mercenaries. russia iss show that in a london, european commission not going to start world war iii investigators raided the offices over a side. murdoch'sert but at the same time, it is easy to imagine scenarios where this anticompetitive behavior. could get out of control, where inspections were carried out in due to the perceived need to several european countries. fox is cooperating. respond, both sides get into an that is your "bloomberg business escalating conflict, which both flash". tom: thank you so much. sides will be looking to avoid. francine: one thing we haven't when we and far away touched on is the changes in the invented bloomberg surveillance, what we wanted to do is get on surroundings of president trump. set two esteemed guests. there's people like john bolton that are much more vociferous, gary shilling is the arch expert bellicose, whatever you want to call it. on inflation. is that priced into the markets? we will get to that in a larry: hard to know what is moment. his historic call on lower priced in. we just heard about the interest rates. ambiguity, the inability to thelve the issues at hand, also with us, the gentleman you want to hear from on geopolitics and oil, edward morris of use of chemical weapons. john bolton in speaking about citigroup, head of commodities,

the middle east has given to that barely describes his messages. contribution to international relations. one was nonintervention. thank you so much for taking time with us. withbeen associated all of these discussions go back to an ancient fear of persia. interventions in earlier times. i'm not sure it is easy for every article, book, posturing by politicians, goes back to a market to price these things. notwithstanding the horrible tension in the region of iran. human tragedy, the markets have to determine how this affects what is the distinction of the present tension for saudi arabia and the sunnis with iran? fundamental aspects of growth, >> the major issue at the moment or the supply of certain raw materials. is a combination of a u.s. if they feel that it doesn't, it withdrawal from the region may sound callous, but beyond and the russian presence in the that human tragedy, the markets region, mixed upeopolitics are will be relatively subdued. escalations change the picture. francine: thank you both. together in a way that no one would have thought of five years ago. tom: we heard from mr. gorbachev larry hathaway stays with us. up next, the single currency yesterday talking of the russian influence. is that why, imminent, for shows gains after the ecb plays president trump is becoming a longer path? down comments. syria,ot one airfield in we will talk about the euro area next. ♪

it is the complexities of iran and russia? >> they go pretty deep. look at it from the saudi perspective. they brought in russia on the oil side, giving them the opportunity to be a price maker. there are other factors. who is talking to iran? the u.s. has no relationship with iran that russia does. that changes the dynamics in the oil market as well. ifncine: talk us through, there is an airstrike, a syria,y air strike on why does oil move on the back of it? there are concerns that the iranians, possible sanctions with iran, the russian angle? edward: syria, it is much more e russian angle. we have seen missiles from yemen striking ships aimed at saudi oil facilities. the spill over effect of what might happen in syria is broader and more regional and affects

the global oil market. we now have to think, as we did in 1990, about the real possibility of a post-administrative move from what is going on in syria. francine: what does that mean for the price of oil? edward: two things. oil is pricing higher than fundamentals would warrant. evidence is the record amounts of money in the market. it is the highest ever, particularly in terms of the percentage of open interest. you have things that could happen and don't happen. if things don't happen there could be a selloff. we had from in the oil price at the moment and we could see a dramatic selloff if all of a sudden, the anticipated repercussions of what is happening now, what is happening after may 12 when deadlines have hase met -- the president put on european countries in

terms of upping the ante on sanctions of iran -- if these do not amount to much there will be a selloff in the market. francine: at the same time, the saudi side is targeting oil at $80 a barrel. with a not be there to step in if anything happens to price? edward: the saudi's can't do it on their own. this is a dynamic market. the russians are cooperating with them and bringing oil out of the market. the higher the price, the more there will be a response. the saudi's are underestimat ing the response of u.s., soon to be mexico, in terms of oil, coming into the market. tom: this is so important. are we in an oil bull market? to $60 --ne from $99 economics, finance, from $29 to $60. >> it is a high vector. and politics.

this is "bloomberg surveillance if i've been time. ." mario draghi speaks in frankfurt --y cannot control the price today. it buys time. tom: it is all inflation. what do investors want to hear from the ecb president? fair bit ofent a gary, wonderful to have you with time talking about the fomc end us. the fed. you have been right about low interest rates. is the ecb the one that is have you fault edward morris's trickier to predict? world -- how do you factor in larry: a little bit. edward world's. you have so many voices, so there can be dissent that is going on have a lot pretty public. himself, people expecting a continuation of a right now, particularly the tension in the middle east. dovish message. there is always the feeling that supplies will be cut back. achievedone has not reality is, i do not see the rates of inflation consistent with the target. inflationary pressures. beyond that, no messages about in oil, look at american fractures, look at further adjustments. globalization. i think that approach is what is tom: there is a believe, gary shilling that three or four rate anticipated. francine: we are also in a period of haggling over who is bill gross, said, the next president. suggesting-- i'm not absolutely not.

he's targeting a euro level, but he even burst out, not a formal how can he keep the euro from forecast of zero to one more rising? larry: it is not clear that a rate increase. .ore hawkish message would help discuss the divide between bill gross and the fed zeitgeist right now? messages from central banks are pretty ambiguous these days. gary: the fed is data-driven, the fed has been raising rates and has seen its currency that is what they like to say. you go through these cycles. depreciate. if you go back a couple months, were the euro to appreciate there was a conviction they strongly, it would probably would do four rate increases delay adjustments of monetary policy. this year. i think central banks are then the data backed off, retail reluctant to weighed in where sales were relatively weak. their influence is weakest. francine: is there anything that you look at the data and it is not that strong, well, maybe worries you? not. the fed in any event, going we don't have a government in italy. slowly. eastern europe raises many the fed has a problem. they would like to have higher questions. rates. there is a long they want something to cut when the next recession comes. list, but the banking union is they're worrying about distortions, look at bitcoin as the critical issue. the academy of that. it will be the forefront of mr. on the other hand -- as the it draghi's mind. this is really about setting up to me of that. hand, they have not

an effective deposit insurance scheme for the eurozone members. gotten the inflation they would like to see. that implies if it is done they are torn between the two. properly, some degree of jay powell is much more aggressive on this than his obligations, and it is also predecessors. greenspan, yellen, i about setting up a well-financed , well-established mechanism for resolution, which is the esm. don't think you have that under the market. there is a really thorny issue, he is not much concerned about stocks. but it is terribly important for the fed is very cautious here. the underpinnings of the monetary system. francine: larry, thanks so much. they do not want to upset the apple cart. francine: how much does fed bloomberg surveillance continues policy impact price of oil? in the next hour. edward: sure. tom keene joins me out of new york. we will be talking commodities. there are a couple index. this is bloomberg. the dollar impact is minor. ♪ we don't think it is much more than 20%, 30% impact to the dollar into commodity prices, given a denominator. certainly the more we have rate increases, the more likely it is there will be a financial

pullback of investors into the oil patch. a lot of investment in the fracking business has come because of low interest rates and at some point, higher rates will have impact on capital markets. tom: edward morris with us, we will continue this discussion for the united states and france, syria, gary shilling with us as well as we look at finance and economics. are at citigroup and you are shaking because you have a meeting at 11 a.m. with edward morris at the tower, gtvgo, a lineup of page after page after page of different charts. look for that. 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 francine: u.s. equity futures to deliver consistent network speed across multiple locations. fall as investors brace for

every corporate office, warehouse and store possible airstrikes on the assad regime. this as lawmakers pray for near or far covered. leaving every competitor, threat and challenge outmaneuvered. special caution over special prosecutor robert mueller. shares jump as the facebook comcast business outmaneuver. chief executive defends the social network. is the worst over ofor the company? the pboc governor ames for a trading tie up with china this year, easing trade tensions. this is bloomberg surveillance and i am francine lacqua in london. tom keene in new york. tom, we have to look at where investor's minds are, they went from worrying about the trade tensions to the fomc. there's a clear, underlying, let's see what happens a possible syrian or strengths. all kinds of ramifications. ♪ tom: good morning. tom: international relations are "bloomberg surveillance ." front and center today. we are distracted in america by washington and of course, the

here's taylor riggs. raid on the taylor: the possibility of president's personal attorney. the inflation down at 8:30 is airstrikes on syria, al jazeera important. routes coalition air francine: let's get straight to were seen over the syrian iraqi the bloomberg first word news border in the european air with taylor riggs. taylor: u.s. officials have traffic control agents the has told airlines to be cautious spoke in with global allies about a joint military response over the eastern mediterranean. to the poison gas attack in syria. according to the associated france's president emmanuel macron says his country, the press, the u.s., france and u.k. u.s. and the u.k. will decide have been in talks about what to do within days in launching a strike as early as the end of the week. response to the chemical weapons attack. the white house says president the syrian government denied it trump has been advised he has is responsible for the gas attack and russia has said the authority to fire special troops have found no evidence counsel robert mueller, top that has happened. republicans are warning it would now a military plane reportedly be a mistake for him to do so. the president lashed out at carrying 200 people has crashed agents raidedfbi near the capital. the office and home of his personal lawyer. the plane was described as russian-made. tona is adding more details spending in the u.k. grew at the slowest pace in almost two years a historic opening up of the , annual consumption growth finance sector. slowed in march. and spending in stores actually the top central banker says there will be a new tie up with london that will allow chinese fell. to invest directly in british a snowstorm prompted britain to

listed stocks. do more. by the bloomberg editor in chief. >> with this new>> open-door policy i am confident the other shopping online. chinese footage of markets will be more competitive, better regulated and serve the real economy much better. imf managing director christine it is a fair competition and a lagarde warns the u.s. much level playing field, so chinese avoid being sucked into a protectionist spiral. she says tariffs are not the way to address trade imbalances. companies and foreign firms can compete equally. taylor: meanwhile, wall street lagarde spoke to bloomberg in hong kong. banks will face higher capital demands under a new federal reserve proposal. the so-called stress capital >> the most important thing is to do more trade than less straight and there is an entire buffer is designed to streamline sector that is crippled with competing regulatory demands on barracks and tariffs -- barriers banks. the fed also would relax part of its annual stress test. and tariffs. it would be the most in the finance rewrite yet of then that's the service sector, requirements imposed after the we need to move ahead. the world is becoming more 2008. financial crisis and it's day two of mark digital and we cannot say -- stay with the barriers of the past. taylor: global news, 24 hours a zuckerberg's apology tour on day, powered by more than 2700 capitol hill. housel testify at a journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg.

committee. tom: taylor, thank you. he promised he would do better after failing to do enough to with us edward morris of keep facebook from being misused citigroup and gary shilling as well. this is a special treat. for fake news and election hate speech. global news 24 hours a day, powered by 2700 journalists and when richard aust does it at the analysts in more than 120 countries around the world. council on foreign relations, he riggs.ylor does it right. this is bloomberg. it wants to look at work and labor within america. tom: taylor, thanks so much. he puts together a terrific team and drags inlden equities, bonds, currencies and the former secretary of commerce commodities, but around syria, curve flattening. penny pritzker. we moved from 51 basis points to 49 basis points. wonderful to have you with us today. ms. pritzker: thanks for having the next screen with oil me. on: you with the issue i see flat. maybe a little elevated over the "bloomberg surveillance," we are next 48 hours. a good day yesterday, closing at all overwhelmed by technology. his technology our friend in the 429.30. surprise.bit of a battle over a better label force? a. pritzker: technology is i threw in the turkish lira, reality. we did a cultural change in america. which is tearing towards new 75% of americans are worried about their job and job weakness. prospects. they want to know what do i do?

francine: outside the cbs spread we need a cultural change, general national -- a for russia. the dollar has treasuries moving generational change. it's not would go to school and higher before the american data. then work for 30 or 40 years. but minutes from the fed as well, tom. in asia,ixed session we have to become lifelong learners, we have to help people with more portable benefits, we europe and stocks are falling. have to change the system we are traders try to move away from the tradens on offering the average american so they can adapt it just to technology. tom: he used to go in to the tensions, but they are focusing on the prospect of u.s. military action in syria, which is why magic of marshall field on the river in chicago and you had to you are seeing a risk of mood across the board. deal with just fine the bodies, francine: this is my favorite inflation series, the cleveland finding the labor is a struggle. fed. how do we meet those two huge there are a million of them and they are all great, but i love body count needs with changing the cleveland set. i will not going to the details technology? now, but you have to know that maybe it approximates the inflation we feel in our within a time where all we are talking about of the pocketbook. inflation razzle-dazzle of the leads and highly educated -- the elites and highly educated? precrisis. ms. pritzker: we have the tools, here is core cpi. and the big trend of a lifting we do use the tools. inflation an dthe base effect we need to make it easier for

comes in where the low the average american to go from middle school to being prepared for today's jobs. inflation comes in we have 6.5 million open jobs statistically. today, but what we can't find i do not know what the fed will do about base effects. his people with the skills they i don't know how that will play need. in may 2. francine: i don't either, tom. it is not only basic education, it's making sure your technology within top geopolitics -- and it -- you are technology literate is my chart of the day. thank you to hillary clark for and you are being trained to do jobs, whether it pointing my attention to it. basically we are trying to is cyber security expert, things figure out u.s. sections on like that. russia. pritzker, howy they continue to reverberate. this chart matters because it is the russia cds spread widening. long does it take when people are trained for them to start working and is there a problem with the timeline of this? ms. pritzker: eduardo florez social push this out for from the south side of chicago. media for a radio listeners. good morning to you. it is pretty striking in word it was 50 years old, 27 years he worked managing how intensifies. logistics warehouse. the white house is ramping up preparations for a potential they automate the warehouse and retaliatory strike on syria following a chemical attack in he loses his job. his challenge was he did not know out of present himself in the country. equity futures dropped after the skills he had a management, have logistics, and oversight. reports that coalition aircrafts worsening over the city.

fair, whicht a job london,us from stephanie baker, who covers the trump administration for us. yousef gamal el-din is in dubai. helps folks with training as well as interviewing a visiting and we are also at the themselves. international energy forum, he is able then to reposition himself today, he's a production watching the response from the oil market. supervisor paid more, works for stephanie, when you look at the options that the trump friedman seating, in a better administration has on dealing with syria, is there anything position. we need more counseling. else apart from military strike? stephanie: look, they made an and then the transition is easier. but we have got to make a bridge for someone from where they are attempt at the yuan security counsel to get u.n. backing, at to the opportunities that exist. but failed because of the if people feel like russian veto. trump has backed himself into a they are part of the technology or if there is -- if they are corner here by saying, this is unacceptable, we will take more technology literate, does action. will vote less it does seem inevitable there will be some kind of either unilateral or coordinated for populist anti-globalization policies? military airstrike, together ms. pritzker: the point you're with france. and possibly the u.k. andng is the angst is real though there is some question as to whether the u.k. parliament would allow it. as david brooks mentioned so, you know, i think it's a earlier in the show, there's a real challenge. very tense time. francine: yousef, you are in the it's making people feel very uncomfortable not being able to navigate. i think with greater clarity as

middle east. to a pathway from training to the last time this happened was about one year ago. the u.s. a demonstration called career and economic opportunity, that makes will lower -- that russia and said, we are about to strike this target, get your people out of there. how much do we know, this time angst will lower and people feel will they do the same? hey, itso, yeah, so, more comfortable with the strength of the economy and the united states as a global player. that's why the council on is difficult to make that call. foreign relations and richard the reaction from his part of haass was so interested in the world will be one of support for the most part for the gulf cooperation council. onsaw the saudi crown prince having this. supported president his tour around the world. it was not just about firming up obama over a long time at .emocrats coast-to-coast deals, but reestablishing political alliances between the syrian government. the saudi's have made no secret something happened, where a new kind of democrat can win. what is your prescription for that they want this administration out of office. progressive democrats to allow they think a new syrian or get back to the democratic leadership needs to arrive. needs to come as to party that you and i knew as a kid? need tozker: democrats what role saudi arabia will play. we understand from comments made in the last 12 hours that they could play an active role in a embrace an economic plan and the need to articulate that to the wider strike against syria, market public. tom: are the east coast which would be a shift away from

what you just mentioned, in progressives anticapitalism, terms of what they did last anti-economic plan? ms. pritzker: the democrats you year, when it was unilateral u.s. action. rie,cine: last year, annma see running today we're going to be successful are optimistic and this strike had a impact they show a pathway to embracing technology, embracing on the price of oil. automation, embracing the because of the proxy fighting reality of globalization, and within the country, it could be impacting iran's supply and saying what we are going to do saudi supply. is help be a partner with the american people to make sure they can adapt and adjust and annmarie: that's right. thrive. especially iran, which has aboutt think this is being negative, i don't think assets on the ground in syria and russia, which is heavily it's about putting down other people. backing assad. instead, we have to show a path forward. tom: in the past, forward going last year oil jumped 60%. all of theheartland, the question is whether or not it is priced in. said this morning heritage of illinois, and right now it's awfully noisy in the actual political battles. them what is happening in the market is being triggered by is that we you perceive for this traders anticipating these november, bachelor -- battle potential strikes on syria. it will be interesting to see we will bee prices -- it after battle? ms. pritzker: it's always noisy. tom: the democratic party is interesting to see how long we

could see prices continue to rise. always noisy. think politics we are basing this on $71 for oil. could this be pushed even higher to what the saudi's are looking is always noisy and i think at, $80 a barrel. would democrats need to do -- bipartisan,s tom: from the experience you have had, what does the u.s. military want? the president can do the synthesis of half a path forward for republicans and democrats bluster, the line, he has got a all americans thrive. few distractions right now. we need to offer portable the pentagon is not distracted. benefits. there is so much that can be done at the gubernatorial and they will deploy assets and they local level as well as at the do not want those harmed. federal level. what's the tension between the everything we point out is the solutions you are not just chairman of the joint chiefs of staff and the president? government solutions, it really stephanie: as you remember last requires the business community week trump said he wanted to at educational institutions, nonprofits and social service syria,t u.s. forces from agencies to come together. is still leadsce which some regard it as giving a locally with governors and green light to assad to do mayors and with our business leaders. you were in charge of whatever he wanted. that statement by trump i think was challenged at a meeting with commerce. his security advisers, who do you think china will give the trump administration enough of what they want for the strait disagreed with that approach. tensions to do escalate? -- now he has got to completely change tact, and look at more deescalate? ms. pritzker: it's tricky to

aggressive action. threaten the trade war if you i think some people are looking at this as, what will military don't have for after this very strength really achieve without a broader political approach to high-stakes negotiation you have going on. there's a lot of stake. resolving the conflict in syria. -- at stake. i hope we will be able to be last week we also saw the leaders of russia, iran and turk to sayc with the chinese syria's futures what will benefit the united states. , there's ahilling and the u.s. was not at the table for that. without a broader strategy to huge desire to get part of resolve this, it is unclear what america reengaged in the the military would achieve. american economy. that the suhe idea will he be a lesser economic growth? nnis love that. sunnire a figment of a david: --dr. shilling: i think government in place to take over any form of leadership for parts or all of syria? we will have a response from i don't see it. >> that is an important point, people who have not had a pay increase in a decade. i think demand and supply is tom. minister haseign

going to be there. implied, talking about a we are seeing a lot of people possible future after assad. he says it is a little too early come off of the bench, people who dropped out of the labor force -- tom: coming back in. to talk about that, but it is important to at least explore dr. shilling: you need the that road. we have not seen anything firm shape up. skills and they are there. you are right. as far as productivity, it once the administration is out, what comes after? doesn't grow in a very steady pace. a lot of capital spending maybe more chaos even. some experts were telling us that. u.s.ine: stephanie, is the doesn't necessarily increase productivity. administration talking to russia? with today's new technology, you look at automatic driving cars and biotech and all these other technologies, i think we will does that play into the equation? have the productivity. the frosty relationships, can i think we are going to get back the u.s. impose more sanctions to the 3%, 3.5% gdp. on russian oligarchs, to put within thehilling more pressure on them to deal store call on lower interest with syria a different way? rates and disinflation over the last number of years. stephanie: those sanctions announced on friday were in the superb withlooks planning mode for months, before the situation with syria heated up most recently. edward alden and richard haass. so, the sanctions are all penny pritzker will stay with us about putting pressure on putin,

and edward morris. forcing oligarchs to turn on your morning briefing putin, that's the ultimate goal, coast-to-coast, "bloomberg daybreak," stay with us. and you put financial pressure this is bloomberg. ♪ on the russian government. it looks like the russian government will have to bail out the enterprises because he employs so many people. across the country. so, i think as a short-term measure, additional sanctions against russia or russian oligarchs is not going to really change the state of play on the ground in syria. we saw the ambassadors to the yesterdayrussia clash over the best approach, how to respond and how to do an investigation of what really happened on the ground. i don't see sanctions, you know, changing the state of play. they may come in a few months. but i think that had been planned in any case in response

to the meddling in the 2016 election. francine: we have heard that $80 per barrel is what the saudi's are targeting. that would be a pretty stark shift to bring it there, because the market does not look like it is bringing it to $80, if you look at fundamentals. annmarie: if you look at fundamentals with the asp 500 up, it does not look like it will hit $80. francine, you spoke with him yesterday and yesterday he said, buto not target price they said they were targeting the $80 price. i have never been to an oil the event where i heard so many ministers talk about the price in a moment. many are talking about the $80 price. when i spoke to the iranian oil

minister, he said, that is not long-term efficient and he is looking at $60. and when you speak to india, they import 80% of oil, they say be $50.ld they say it should be a big responsibility between the consumers and producers. they are starting to compete about the mega opec producers and does make a boosted oil prices here. tom: annmarie, thank you so much. ♪ yousef gamal el-din, and tom: good morning. stephanie baker. "bloomberg surveillance." we will continue with the next oil interview throughout the day. edward morris will join us from a wonderful conversation with the president, he tweeted a citigroup. partial tweets. his take on the geopolitics and it's like george carlin from years ago, the wonderful the calculus. comedian from years ago. this is bloomberg. ♪ half a tweet. so much fake news about what is going on in the white house. very calm and calculated with a big focus on open fair trade with china, the coming north

korea meeting, and of course, the vicious gas attack in syria. feels great to have bolton and larry k on board. , i'ml get the second tweet sure he's working on it. penny pritzker with us, a study on work as well. i want to turn to the two of you and bring your two worlds together on this idea of economic growth. morris, or use that, do we just need to get set and used to that lower economic growth is unacceptable to secretaries of commerce and unacceptable to politicians of all persuasion? mr. morris: no, i think we are

now in a situation which could of course be a road record, given what's happening geopolitically. we are seeing simultaneous growth in emerging markets in advanced economies, seeing this being reinforced by trade. there is no reason to think that this path could be like the path in the last decade, which is a sustainable level of a bit higher growth. -- i am of youg being briefed on the congressional budget report of a $1 trillion deficit in syria and chicago like. maybe the state of illinois like, but there's a fiscal frugality across much of the nation. it is guns and butter, is that -- isn't it? ourpritzker: we stoked economy and hopefully that will lead to a good outcome in the short-term. i'm very concerned about the long run and the debt we are leaving to the next generation,

to our children. i don't begin will be that long before this comes home to roost for all of us. francine: just to pinpoint you a taylor: this is bloomberg little more, what do you think the long-term effects of this surveillance and i am taylor riggs. but the bloomberg business actually will be? we have risings flash. two of the largest wireless carriers in the u.s. are talking debt, you have to understand about a possible deal against. that if we can't sustain the it is unclear what terms sprint kind of growth that we have or and t-mobile are discussing. hiccups, which five months ago efforts to combine the two collapsed. at the time, the issue was how there may be, it concerns many combined control of the company would be shared. google wants to reach more users of us about the situation we have today post the tax bill and by offering in-flight high-speed internet. according to those familiar with the matter, google is in talks hopefully we can navigate our with nokia's airplane broadband way out of this. francine: do you worry about business. overheating u.s. economy? it eliminates satellite delay for faster in-flight wi-fi. and in london, european does it show up when you look at commodities, oil demands? ms. pritzker: i'm hopeful about commission investigators raided the offices of rupert is that with the gdp growth than murdoch's fox networks as the start of a probe linkexd to we are seeing that we will also see wage growth, which i think television rights. would be a good thing for the american economy and good thing

fox says it is cooperating with for the average american. francine: ed morris, do you the probe. that's your bloomberg business worry about overheating u.s.? flash. francine, tom. mr. morris: we're using the tom: very good,, greatly overheat in diesel demand appreciated, tauylor. growth. we had very limited diesel demand growth for a decade, and right now trade and on the then continuing through the dynamics we see with inflation, winter and now into the spring, i'm with francine and daniel we are seeing diesel demand growth in china and india and the u.s. and europe and that's morris. i put up an inflation chart the beginning of a little but of earlier. a sign as a leading indicator that there may be a little bit i think it is the same thing as inflation in europe, and in the of inflation ahead. everyone can agree, u.s. and for that matter, inflation in china. is it out there? >> know, inflation is not really including diehard trump supporters and diehard republicans tangential to his out there. core constituency of this is a we do see a modest pickup in core inflation. presidency of nostalgia. tellsmocrats risk on this we will have that in the u.s. and europe, the base effect her, if we say we want to the what huberty of adding to that. but over a multi-year view, we humphrey did, is that a risk for see pick up in the underlying the democratic party? ms. pritzker: i think the 0.3%tion pressure of

democratic party needs to present a path forward, and economically stable and positive per year. tom: away from the politics and path forward, not one of just a negative message i think that is the challenge that the democratic leadership is looking syria and the rest, it is almost the theme of 2018, this wish and ispresent something that hope for inflation. more optimistic, not just here's are we wishing and hoping and we see the market reaction, or is the problems that we see. tom: what you learn as secretary it actually out there? the vector to higher inflation? of commerce? daniel: we think it is. you go in with an esteemed career in philanthropy, what was the biggest rise of going into this audit agency that a lot of our expectation is that it will our viewers and listeners don't be running at 2.2% inflation. that will be defined as the even really understand it. actual target on average. what was the biggest surprise? we have been below 2% and they need to be above 2%. ms. pritzker: two things for me it is the assumption that were a surprise, a pleasant markets will not be bothered by that. if there is a risk, if we get to surprise. 2.3% or 2.4%, at what point to first of all, by giving the the markets get more nervous. organization the department of if we see 2.2% or a little bit commerce a sense of purpose, what will refocused on -- what above, it is fine, it is the were we focused on? normalization we are looking for. is the main risk making our data available,

making sure we had environmental intelligence and understood what for the fed come from, behind the curve, or ahead of the curve? daniel: at this point in terms was happening, not just with weather, but to our climate. that you can really move the needle and bring greater of where the markets are positioned, there is the danger opportunity, not just to that they are perceived as being american business, but to the behind the curve and that is not what they priced in. francine: holger? average american. the second greatest surprise for me was the quality of people that were working within the department. after the economic risk, it's not that i didn't think it would not be that much of an issue. the biggest economic risk is the there would be quality people, fed is well ahead of the curve. when i didn't appreciate was how that inflation does increase only very modestly and that the knowledgeable and the depth of capability that existed for the fed is dampening the recovery too much. benefit of the american people. but, this is something which is and the question was they were probably not an issue for this yearning for leadership, where we go and how we move the year. this year we have the fiscal needle? stimulus in the u.s. anyway. francine: thank you, penny what we need to think about is what happens two or three years pritzker, former secretary of commerce and ed morse stays with in the future if the fed hikes us. us.d morris stays with rates cigna the geely, which we the second part of the tweet will and then after the fading, we have the combined higher rates and less fiscal support. from donald trump, saying it feels great to have bolton and francine: we will ask about larry k on board.

trade and the markets, but first we also spoke with 15 lagarde's we are doing things nobody managing -- with christine thought possible, and he continues by saying despite the lagarde's managing director. >> the most important thing is never-ending and corruption -- to do more trade than less. there's an entire sector, which corrupt russian investigation, which takes tremendous time and focus, no collusion or is still crippled with barriers obstruction of them i fight back and reservations. that is the service sector, so now they do the unthinkable and raid a lawyers office for including e-commerce in information. particular. bad. funny more on the trump -- we need to move ahead. the world is becoming more digital. we cannot stay with the barriers of the past. have the today, we plenty more on the trump tweets next. this is bloomberg. ♪ pboc speech, we also heard from president xi moving away from the tray tensions. are they right to do so? daniel: if you look at what christine lagarde and what trump said, the objectives are the same, in terms of wanting more trade, but the means could be quite different. the transpacific partnership was supposed to reduce trade barriers. trump is going about it through

threatening increases in tariffs to get trade partners to lower their own barriers. but that could be where we end up, and hopefully we avoid a trade war. tom: the tray discussion of madame lagarde that francine just played, to me, better trade is linked in with better nominal gdp, which means an inflation pop. the two are intertwined, aren't they? daniel: sure, it's something that will support growth -- you could argue that if trade barriers went up in the u.s., it is not the type of inflation we are looking for. tom: yes, it is a different kind of inflation. francine: and something that would fade. tom: this is really important, holger. there's good and bad inflation and a good inflation, right?

holger: i would say trade as part of good disinflation. if we have trade barriers lower them. what it would mean is more real gdp groiwtwth and less inflatio. the risk out there, there is significant risk, that with trade war's we all end up with brexit-like scenarios for everybody. tom:h i love that idea. holger: that means less growth, more inflation and the disruption of supply chain, such as the u.k. has chosen to impose on itself apparently. chances are he will avoid it very much, but it is a risk that not over the last two days, but last couple months has risen. tom: francine, i in taking notes from holger.

"brexit-like" scenarios. i am going to steal that. stealing on surveillance. francine: i hope you will pay royalties. ado you worry about that because that some point there will be trade deal coming? ♪ daniel: it is becoming somewhat this is "bloomberg surveillance." secondary in the might of the market outside of the i'm taylor riggs. airbus is boosting production of u.k. we more or less agree with that view. we think it will be an agreement the new jet to meet high demand, close to what the european according to people familiar with the matter. union is looking for. in the end, that should be only the european playmaker and suppliers have agreed to reason the goal from 60 planes each modestly negative for the u.k. month to 63. economy and that should be reflected ultimately with stronger currencies. ok, what does the they pushed back against higher quota, signaling they are too stretched. stronger currency mean for the bank of america will no longer dollar? is that what the trump administration wants, a stronger lend it to some gunmakers and dollar? bank of america vice-chairman daniel: not from what i have and for new intel's the bank will finance companies that make picked up. i think they want a weaker assaults solomon used for nonmilitary purposes. dollar. that has helped with the issues

they have around trade. february school shooting in florida set a wave of pressure you could argue that even before with the chronic trade deficit to banks and other services to cut service to the firearms in the u.s., the dollar should be weakening. it is saying what was not said industry. tom: the single best chart with before, but that ultimately does address a lot of the issues. tom: with all of this, holger, edward morris and brent crude, there is the idea for the search it's just a snapshot of brands, for economic growth. how is your of doing? of with a $100 level, down we go you have been wonderful, writing on the recovery of europe. is it europe reaching velocity under $30 a barrel and there's the recent bull market with from the crisis? escape velocity above a 200 day moving average. holger: well, that is a question right now, none of that matters. with us, dr. morris on the you should have posed three or four years ago. geopolitics of the situation. europe has enjoyed three or i remember exactly where i was four years of growth. as we heard of tanks rumbling out of saudi arabia and towards last year growth was very strong and this year it will likely be kuwait and onward and north. very similar to that. what do you anticipate from the we have some disturbances from president and what is your best trade, yes. from trade tensions. guess of what we will see imminently? have, by european dr. morris: he's got to go standards, a comparatively strong labor market. we have fairly good dynamics on through with the attack in domestic income. syria, but we have a whole bunch

we do have a significant investment in tensions with of deadlines coming up in the next few weeks. among them is the president's moderate fiscal stimulus. threat to get out of the jcp by am large europe will remain away, the nuclear pact with on track, despite some iran. we don't know what the volatility within the data and consequences of that are, how far he is going to go with that. volatility within the near-term gdp data. francine: thank you both, dan it certainly has to do with everything else going on in the morris and holger schmieding. region. can kenny ran respond -- remember, bloomberg users can iran respond? dr. morris: there are more interact with the charts shown on gpd . threats to come and the question you can pick up tom's chart, my is how they respond. so far, the economy has not been charts, the charts of the queen growing to the extent that people thought and the of charts, hillary clark. investment flow into iran, there is also key analysis. particularly on the oil and gas you can save the charts for ,ide has increased by dribbles future reference and dazzle tom. ♪ decline rates are probably faster than the production increases. they are in a bind and they will be in more of a bind if there are incremental sanctions on companies owned by the islamic revolutionary guard corps and anyollah, putting more of

-- more of a squeeze. francine: do we understand more about u.s. shale producers and at what level they actually turn up the pumps? do we have an idea of when the market rebalances? dr. morris: we have a decent idea that this price level, there will be years of increased production coming out of the u.s. three big companies that have not been traditional fractures including exxon and shall have plans to combine to increase their own production in texas by 2 million barrels a day in the next few years. the high prices are going to continue to ratchet things up, there's a little bit of irony in what's going on in that the producers are moving up faster than the pipeline companies and we have a little bit of a bottleneck on getting oil out. doris, -- edward morris, thank you. this is bloomberg. ♪

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>> potential military access in syria and the potential of president trump firing mueller leaves markets unsettled. how china will open up its financial sector. defendskerberg facebook's value, markets believe him, senators do not. to "bloomberg daybreak," america's on this wednesday. we have the president leading. -- tweeting. syria, getng about ready russia, they will be coming, nice and new and smart. you shouldn't be partners with a gas killing animal that kills his people and enjoys it. that does not sound calm to me. david: that sounds a long way from vladimir putin and i can

get along. alix: