is 11 a.m. in hong kong, 1 p.m. in sydney. president trump has floated the idea of holding his summit with kim jong-un at the miller tries to zone -- the demilitarized zone. the president says the list will be whittled down to two were three-putted -- to two or three. is saidp administration to be doing tariffs. a decision on who will be spared and who will not is being pushed back to june 11 -- june 1. shinzo abe has pleaded japan's case.

angela merkel made a request in washington last week. australia has an agreement in principle and expects to be exempt. alibaba is warning the u.s. would suffer in any potential trade war with china. the cofounder and vice-chairman told bloomberg that beijing would retaliate against american tariffs and both sides would suffer. president trump has there and a range of measures, $150 billion against china. heard awould actually lot of jobs in america if there is a trade war. the tit-for-tat trade tactics will cause a retaliation. in fact, in china, they had just put on tariffs on soybeans. it will hurt american farmers. haidi: a very quiet session across asian markets. most a closed for may 1 labor day holiday. no trading in hong kong tactics will cause a retaliation. in fact, in china, they had just put on or mainland china. south korea also closed,

including singapore. let's take a quick look at the markets that are trading. we are seeing australian shares with the earlier gains. getting closer to the rba decision. no change expected in that cash rate. expected to be left at hold at 1.5%. the aussie dollar close to the december lows. taking a look at the action in japan as tokyo stocks come back from last week's public holiday. the nikkei 225 treading water at the moment. the strength of the u.s. dollar being extended. a few jitters coming through. concerns that the best of the earnings season has artie past -- has already passed. julie: i'm julie lines and you're watching "bloomberg technology." here is a check of your first word news. president trump says his planned meeting with kim jong-un is

looking increasingly like a go. president trump: i would like the summit to happen and personally, i would like to see it to be a success. i will say this -- if it is not a success, you've got to get rid of the nuclear weapons. looking increasingly like respectfully leave.if it is notl very simple. julie: in jordan, secretary of very simple. state mike pompeo says resolution between the israeli-palestinian conflict is a top priority. he also called on the palestinians to return to peace talks. the adult film actress that claims she had an affair with president trump is escalating her legal fight. stephanie clifford, stormy daniels, filed a defamation lawsuit in federal court in new york today. and a spokesman says former president george h.w. bush will remain hospitalized until he recovers from an infection. mr. bush was admitted april 22 after attending barbara bush's funeral.

global news 24 hours a day on air and on twitter powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg and you are watching "bloomberg technology." global news 24 hours a day on emily: i'm emily chang and this is "bloomberg technology." we are live at the milken institute global conference in beverly hills, california, where we have been speaking with top newsmakers. stay tuned for interviews with john thompson and u.s. treasury secretary steven mnuchin. t-mobile buying sprint for $26.5 billion stock to take on verizon and at&t. some still fear the deal will get blocked. we will hear from ceo john ledger.

apple earnings are just around the corner and investors will finally have an answer, did iphone x sales live up to the hype? but first, sprint tumbling 10% on concerns regulators may reject t-mobile's agreement by a uy the company worth $26.5 billion. t-mobile and sprint are hoping it will let them get a jump on verizon and at&t when it comes to building a next-generation network. today, we sat down with t-mobile ceo john legere. >> talk about the deal and talk about the value to shareholders. and second, talk about why it will get approved. those two things together will drive shareholder value. you said 26.5 billion dollars.

it is actually $145 billion enterprise value combined company. what we are going to have starting from day one is $75 billion to $57 billion service revenue that will grow 2% to 4% annually. with a $6 billion run rate, and the cash flow by 2025 will be 16 billion to 18 billion. if you are a shareholder, this has huge value. people are asking the question, why now? and will it get approved? one. -- that is my job starting day one. i am so confident in the plan that we've got. in three buckets and right after we are finished, i'm going down and i will be there quite a bit. we have three points.

what's different now? 5g. it is imperative. the nation's leadership in 5g is at stake. we have fallen behind china. t-mobile and sprint together is the only company that can change what's different now? 5g. it is imperative. that. 5g is critical for the country. we will change that. the uncarrier. we will supercharge the uncarrier. that. customers can look forward to a broader range of service, more rural competition, more broadband competition. and last of the three, jobs will go up. and when that happens, the shareholder prices -- >> these are the three pillars you're going to pitch to regulators. a job positive merger. and particularly good for the rural consumer. so that is squarely in the administration's court. and fending off china and korea. i threw korea in their on 5g. is that enough to sway a regulator that has only given the go-ahead to one media deal?

the others have been a lot of trouble. mr. legere: the statistics are, our country is a leadership in 4g. in 2016, there were $3.3 trillion globally in the global economy driven by what we did. uber and snapchat came out of the 4g leadership. facebook, amazon. these companies grew because of it. in 5g, what will be critically important -- we will invest $40 billion in the first three years. we will take the 2.5 gigahertz spectrum and create a mobile layer that will drive this leadership. we expect what we do will then force at&t and verizon and others to invest significantly. because what is happening now, we talked about this last time, this millimeterwave deployment that verizon is doing. if they wanted to do that nationwide including rural america, it would cost $1.5 trillion. it is the scale.

emily: t-mobile ceo john legere there. i want to bring in caroline hyde. investors are concerned about regulatory concerns. if this does go through, it could germanic leave reshaped u.s. telecom industry. but get deeper into what we are looking at. caroline: we are looking at for becoming three, and if you look at bloomberg intelligence, you can see how the slices of the pie could start to shift around. overall, we could start to see a merging of the two key pies eaten the moment by softbank controlled sprint and the likes of t-mobile. check out the terminal at the moment because you will see this change in how the control is for the four key holders down to three keyholders. this is what is concerning, overall, the department of justice, most likely.

and they have to get it to the fcc. the obama administration at that point was overseeing this and we saw the doj could not swallow that pill of 4 slices of pie becoming three. they were worried about lack of innovation, price competition, and the effect on the consumer. as well you heard john legere talk about they can add jobs, music to donald trump's ears. they can add innovation by focusing on 5g, another key priority for the administration. and if the department of justice is already looking at verizon and at&t, they will be really worried about a narrowing of the pool here. emily: this has been years in the making. why now?

[inaudible] caroline: in terms of why this is a pleasant pill for softbank and deutsche telekom, the two foreign owners, to swallow -- they have managed to iron out issues over control. three times, the owner and controller of sprint, softbank, has tried to do this with t-mobile usa. and he hasn't been willing to let go of control of to satisfy them. this time, it looks like he has. it will maintain 27% stake of the overall combined company. maybe deutsche telekom will hold 42% of the business. we have them in the seats of power. the chairman is the chairman and ceo of deutsche telekom in germany at the moment. and you will have john legere remaining. the coo remaining as a combined coo.

they remain in control and that is what seems to have been done here. emily: and what has been happening in europe as well, quickly, give us what you're seeing over there in parallel. caroline: this is the frustration of european ceo's. he has, many a time, the key european conference here, talks to me about the need for more consolidation in europe. why because average revenue, it is much less than any u.s. and japan because the markets are fall smaller -- far smaller in europe. it is a broken up and fragmented market in europe where you have smaller players in smaller countries that don't have the economies of scale. they want more consolidation in the u.s. and in asia. emily: caroline hyde for us in london. an update on that, we continued

to watch what the founder is claiming to lead. disagreed with parent company facebook over whatsapp strategy, and we have the personal data. and trying to launch a unique facebook campaign. now we continue live coverage from the institute global conference. we will speak with microsoft chair john compton about joining a light speed adventure. that is next. and coming up later this hour, u.s. treasury secretary steven mnuchin will join the show to talk about trade, the dollar, and economic growth in the united states. this is bloomberg. ♪

emily: we are live from the milken institute global conference in beverly hills, california. microsoft chair john thompson is joinin joining one of silicon valley's ventures. he is taking over as chair when bill gates stepped down in 2014. he has played a critical role to modernize the software maker. has a company, he to work with. appreciate your time with us. the fund in 2016 has $1.22 billion. joining us now is john compton. -- john thompson. billion. whereight speed and will the vocus be? mr. thompson: i have known a number of the partners for the

last eight or 10 years. they tend to invest inthey tends that are very much of interest to me. that is all around enterprise infrastructure related technology. security, infrastructure, storage -- all of those things are things that i have invested in personally or when i was running symantec. this is an opportunity for me to keep learning and hopefully help the lightspeed people. emily: are you concerned for regulation and how it will impact companies large and small? really as big as facebook, microsoft. mr. thompson: i think the recent incidents have raised the issue of regulatory oversight. there may be some that will evolve. i would not let that distract me if i was the ceo of a tech company. it is all about executing against the plan that you have in place. there is an issue that looms on the horizon for us. that is all around privacy. how are we going to manage privacy in a different way in a world where everyone is

connected and the amount of digital content in that connected world is really significant? something is likely to happen, i just don't know what or when. emily: what would you like to see companies do about privacy? mr. thompson: tech companies should respect information about me or you. emily: what does that mean? mr. thompson: they don't sell it. they don't share it. they do it in a way that is relevant to the needs of their business. any of them make money off of ads and they have to kind of use that as a leverage point. at microsoft, we don't believe in that. companies don't think about what their policy should be around this issue. emily: facebook says they don't sell your data, they essentially reant it. there is something fundamentally broken about that. mr. thompson: i will let zuckerberg explain that to you. emily: let's talk about the cloud. two years ago, you said you wanted microsoft to move faster.

where have you seen progress and where would you like them to still continue to move more quickly? mr. thompson: part of the role of chairman of the board is to be impatient. my comment was about that statement of impatience if you , will. be impatient.the company has mal progress. it is very well. they have a very strong presence and they are doing a lot more in this space. amazon was the first mover. and i think that we are making a kind of progress because the growth rate is certainly stronger than amazon at this point. emily: how full should microsoft be in acquisition?

mr. thompson: that is a tough question. i think the company has an mr. thompson: that is a tough question. i think the company has an indoor miss amount of capital. as have the capacity to go out and a tire a lot of things. most of that cash -- it is not about the ability of cash to do acquisitions, it is for how we are trying to accomplish it. if we are looking at the nokia deal, it was about being in the mr. thompson: that is a tough mobile business. it was an important thing to do. if you looked at the linkedin deal, sasha felt very strongly about being in the social media business and linked it been a wildly successful transaction. if we do another linkedin, i'm all in. emily: any areas that you are interested in? it is working and we will see a time to pass. where would you like to see that? mr. thompson: anything that strengthens our relationship between our cloud and a broad network of users. iot, the commercial things, industries that generally have not moved to the cloud.

those are the places that those are the places that represent big opportunities. emily: what should microsoft be doing in the emerging world of ai? mr. thompson: microsoft has a huge investment in ai and machine learning. we allowed herein shun to n toe allowed harry shui continue to run ai as a research operation. we also integrated many of the functional components of ai into the operating teams driving the revenue day in and day out. ai machine learning becomes a part of, if you will, every single platform the industry has. ai will be the future of technology. emily: do you see the negative side of ai or will that be more positive for companies to be responsible in the same way we need to be responsible about data? mr. thompson: i don't think

anyone anticipated that pcs would turn into what they have turned into. we can't anticipate that just would turn into what they have like we can't anticipate what ai might do. ai is going to have a more powerful impact than we might have ever envisioned to were three years ago. we will know in a few years just how impactful that will be. emily: john thompson, joining us, think you much for coming by. coming up, we continue coverage from the global conference. next like we can't anticipate what an with tim armstrong. this is bloomberg. ♪

emily: we are live from the milken institute global conference in beverly hills, california. a media company under verizon just launched a year ago. where do things stand now? we are joined by tim armstrong, ceo of oath. we want to know what you think about the sprint and t-mobile merger and what it means for verizon. mr. armstrong, it is something verizon will watch closely. it is too early to comment on. for one thing, it points to how important the landscape is overall and look at what verizon has done in terms of their investment. what they have been doing with 5g and oath. i think it is an exciting time in the industry and i'm sure they will have more to say about it. right now, everybody is

digesting the news. emily: given the regulators and the concerns, should they stop it? mr. armstrong: i think it is business as usual at verizon right now. verizon had a great q1, as you saw. a lot of great stuff coming later this year with verizon and oath. we are all hands on deck on the operating side. whatever the effect of the deal will be, it will leave it we have one of the highest quality groups of consumers, one billion people at oath. we have a lot to do. emily: let's talk about oath. when you launched it, there was some skepticism, the combined shells of yahoo! and aol. how have things actually progressed? mr. armstrong: we're coming up on the one-year anniversary. things have gone very well. very few companies in the planet

have one billion consumers and millions of dollars in revenue, and internet company. the biggest thing is we are reconnecting yahoos ecosystem together. bringing yahoo! back together. aol has been a power brand for us. we are coming out with a new ad system this year. i am super excited. the first half of the year will be bumpy because we are still integrating. the second half of the year, we will get the growth. i think the team is really excited. we just hired the head of alibaba come in it in and be president and coo. we really start to operate the company and different skill levels. emily: we saw flickr gets old. are we going to see more of that? mr. armstrong: we are majoring in the majors. we are on the assets we had.

if you look at news, sports, finance entertainment, those are finance entertainment, those are , giant audiences. yahoo! finance, one of the greatest finance products used in the world. yahoo! sports. between all of our verticals, we have tremendous sized audiences that are on mobile, the internet. we have an announcement tomorrow night as new york city is our new front. people will see a huge fleet of properties we willwe launch in video and what we will be with 5g.g emily: the display ad business was down but the momentum is expected to build. with 5where are the bright spo? mr. armstrong: it is really around the scale of video, the scale of mobile. we had the fastest growth in q1. especially in places like sports and finance.

you will see us in mobile and video and display advertising. i set of new ad features rolling out this fall. i am really happy with the progress and really happy with the talent. i will be really excited when we come out with a product that is meet our scale. there are places that aol did a monetizing and where yahoo! did a better job than aol. it allows us to combine what will be a formidable ad system. for google and facebook and amazon overtime. emily: tim armstrong, ceo of oath. we will catch up with you and hopefully not another year. thank you so much for stopping by. coming up, we continue our coverage of the milken global conference in beverly hills and sit down with u.s. treasury secretary steven mnuchin coming up. this is bloomberg. ♪ we use our phones and computers

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>> i am haidi with the first word headlines. boosted cashsury in preparation for widening budgets and it is more than and set a as amended new first-quarter record. $600eficit has grown to billion and the cbo expects this by 2020.

yahoo! japan sold the most after they missed estimates with the shares slumping more than in march. they were trading the lowest in 18 months. sony fell after weaker sales. boost revenueto through services. north and south area take steps towards a new relationship why dismantling the speakers that broadcast propaganda. this was announced at the end of the talks between the presidents and they are calling for a three-way summit with the north and the u.s. in june or july. blue origin has tested the shepherd rocket for the launch and it took off to reach an altitude of 100 kilometers before returning and landing in the desert later.

shepardnamed after alan will stuff they hope to fly tourists as soon as next year. let's take a look at the trading action. region areoss the closed for labor day. that includes no trading here in hong kong for so, we are taking kong.g so, we're taking a look at what is trading in the 20th consecutive month with the aussie coming off of this december low and we are seeing a with thein in the s&p negative reputational headlines that we continue to see a ross to japan. -- across to japan.

>> this is bloomberg technology and we have been speaking with some top newsmakers. promised, the chairman to create one million u.s. jobs and we spoke to find out what this trade war would do. jobs would kill a votto because of the tactics causing putliation and they just willfs on soybeans that hurt farmers and we are in a contact with a huge market and it is ironic that there is a presidentbecause the

import 8 they will trillion in goods. they put the gates down and the retaliation would hurt everybody and close off a lot of opportunities for producers in the united states. >> they say they plan to create one million jobs, but this might not happen with this trade war. will the jobs not get created, if this president stays the course? create 10d possibly open,n jobs, if this is but the opportunity for business that is shut off, those

consequences could be severe. .> it would not get created >> i am not an economist, but it would create fewer jobs. >> that was my conversation there with the vice chair. now, apple gets ready to deliver results and is getting a boost in wall street. largest gain in three weeks. as what to expect, we take a look. was supposed to be the iphone to end all of the iphone's. >> the biggest leap forward since the original. according to some analysts, not

such a hit. now, the company is feeling the heat from investors. apple shares have decreased and investors and analysts are concerned that the iphone is not selling well because there are a few factors. key component makers have all reported lower than expected manufacturinghe partners report lower-than-expected growth, leaving an analyst to declare dead.he iphone x is not so fast. it is not dead. it is just too expensive. apple is looking at sales of 53 million phones and that is a jump from a year ago. even a company with the size in

the maturity of apple, any growth is a plus. apple is trying to address that is age of the smartphone starting to advance. apple left some room in the market to not upgrade the devices. apple recognizes this and is working to remedy that. is getting ae 10 giant upgrade and they are model.g a lower-cost this could keep them on top until the next big one. >> we are calling it, 1phone. >> coming up, we are continuing our coverage with our sit down u.s. treasury secretary

is next. this is bloomberg.

>> we wanted to make something that the world would notice. >> it is diversified. changinge really industries and you need the skills and information. >> this is bloomberg, i'm stephanie flanders. we're live from the milton global conference where i'm joined by the u.s. tech or terry -- u.s. treasury secretary steven mnuchin. you have been talking to a lot of people here about heading off

to china. you'll be looking for what from the chinese? is this their last chance to prevent tariffs? mr. mnuchin: i'm looking forward to very frank discussions on the trade issues and continue the discussions to see if we can reach a mutual solution to this. the good news is, president trump and president xi, since mar-a-lago, have been talking about the trade imbalance. president xi acknowledged that the objective is to have a more balanced trading relationship. i think they have a close relationship and i'm going over there with our economic team to see what we can get. emily: if i was listening to what you just described, it will be you, u.s. trade representative's, and heater navarre -- peter navarro. mr. mnuchin: and larry kudlow and secretary ross. emily: should i be listening to you -- stephanie: should i be listening to you? mr. mnuchin: you should be listening to all of us.

i would say that we have a tremendous economic team. we meet almost daily on these issues. we meet with the president regularly. it is good to have a diverse opinion and when we go over there, we will have a good talk. mr. mnuchin: what is success when you are on your way back? -- stephanie: what is success when you are on your way back? mr. mnuchin: you will know it when you see it. stephanie: we have an agreement expiring for the european union and can you tell us where you are on that? mr. mnuchin: i expect you'll see a decision later today from the president. we had a good meeting of the economic team with him, talking about these issues. i'm not going to get ahead of the president and his announcement. >> the people is certainly saying that they are not getting that exemption extended as they have a very clear list. are you modeling that of the

treasury? you must be thinking about the effect on the u.s. mr. mnuchin: i would say we are having very good discussions with our counterparts. we had all the g20 finance leaders. and his economic team, went to paris for a financing conference. we have been having very direct conversations on these issues. stephanie: sooner or later, you don't have the war anymore and we could have tariffs. how do you think about the impact of the u.s. economy if there is retaliation? have seen u.s. to messed up prices going up relative to european margins. mr. mnuchin: first, let me just say i'm not going to comment on the president's decision. it will come out soon. as it relates to any time you go to negotiate, and i use the

example. six months ago, people said we were being too aggressive on north korea. we had the strongest sanctions on north korea ever put in place. those sanctions are what got him to the negotiating table.

it is a historic event. it and south korea talking about peace. talking about them being willing to give up their nuclear weapons versus six months ago, shooting missiles over. you have to be willing if you're going to negotiate and have changes, you have to be willing to go through with difficult decisions. and having maximum pressure. stephanie: you mentioned sanctions and in another area where we have seen it in regard to russian individuals. the sanction against him, they live in markets. and it is a big producer. are you any closer to an agreement on that? what constitutes him relinquishing control of that company. mr. mnuchin: first of all, we have had a very broad sections program against russia for the last year under our ukraine sanctions program. congress passed a law, overwhelming. we had to write the report on the oligarchs and the political figures. we went through a very long process. result was picked up not because we were targeting him but because we were targeting the ownership.

we understood it the impact that this would have on a lot of hard workers there. we have extended the license to try to deal with these issues. the company has petitioned us for delisting. i'm not going to comment on the specifics of what that would entail. and one of the issues will be the majority interest. >> people are concerned about what this would mean for the survival of the company, and whether or not it would be sanctioned. it is still some form of shareholder, but i minority shareholder. is that ok as long as you are concerned? >> it wouldn't be appropriate for me to go through the exact details of what will be ok and what won't be ok. there are lots of facts and circumstances we are discussing. the first aspect would be that he is below 50%. we are having conversations with the company. we had those discussions encouraging and that's why we extended the license to allow the company to have time and not

to have time to deal with these issues. our objective was not to put rasol out of business. stephanie: your treasurer -- you are treasury secretary and you can comment on the market. we have seen the first quarter of this year, record borrowing of treasury. are you concerned that we are now looking at a lot of pressure putting the treasury market in a very different place this year than last year? mr. mnuchin: no, i think the good news is the u.s. treasury market is the most liquid and robust market in the world. i won't comment on interest rates because i respect the independence of the press, but

what i will say is that the market, the forward curve, expects interest rates to go up. how much it goes up and how fast, we will see if it is more or less in the market predict. part of the reason why was he interest rates going up is that we create economic growth. that is a good thing. we have been focused on targeting 3% sustained gdp. and part of the reason why just rates of backed up is because of that economic cover. stephanie: on bloomberg this morning, it was said that he had never seemed to demand and supply conditions in the treasury market with so much supply coming on. federal reserve, others running down the balance sheet. mr. mnuchin: let's just say it is a robust market and the most liquid market in the world. is a lot of supply. stephanie: when we talk about the bumps in the road ahead, there has always been a lot of concern about how this more normal monetary policy was going to play out in the long term. do you think it is 3, 4, what

would worry you in terms of putting pressure? stephanie: let's just say i have -- mr. mnuchin: let's just say i have tremendous confidence in chairman powell. it depends on where inflation is, it depends on what growth is, what unemployment is. there are lots of issues that are interrelated. stephanie: and the facts coming into it is that you have may be reduced demand and an increase in supply. we're not just commenting on fed policy, we're talking about the amount of supply. mr. mnuchin: by definition, supply and demand will equate. stephanie: they could be at a very high rate. mr. mnuchin: i am not concerned

about that. we have a lot of buyers for u.s. treasuries. stephanie: what you mentioned about inflation, we have had signs without commenting on the policy that they are willing to be the target for a certain amount of time and let the economy run. is that something you are relaxed about? stephanie: i think a little bit mr. mnuchin: -- mr. mnuchin: i think a little bit of inflation is a good thing. one of the aspects of the tax plan is we want wages to increase. the last eight years have not been great for the average worker and have not seen wages increase. a little bit of wage inflation is a good thing. energy prices have the potential to, as we become energy independent, i am not concerned about energy inflation, and there are lots of good signs on the horizon. stephanie: they authorized 65% i think since last summer.

and we have is necessarily seen a big amount of u.s. supply. a lot of people thought it would win prices went up, that u.s. surprise would be upsetting. are you worried about that affecting working households in the u.s.? mr. mnuchin: again, i would say that we have a lot of liquid national gas. there is a lot of alternative energy. clean coal. there is a lot of opportunities in the energy markets. i'm a going to speculate where oil prices are. if oil prices were in the 40's, they would say they are going to 20. i'm not good at predicting where we are. we haven't seen energy inflation as a result of oil prices going up. stephanie: one of the factors

that worries me is a little bit is they did have quite a big impact on markets in the short term. we saw it with steal prices. and as we go into this iran potential increase, the sanctions against iran in may. are you thinking about that impact on oil prices because it could affect that? mr. mnuchin: i just want to separate sanctions from tariffs. sanctions are very important economic tools that are used for national security and foreign policy. as you know, they are very impactful. they worked and iran last time and that is why iran came to the negotiating table. president trump is determined that iran won't have nuclear weapons now. they won't have them in five years or 10 years. i look forward to the president's decision on the jcpoa. stephanie: how concerned would you be on the short-term impact? do you want to push ahead with

that foreign policy? you still have to think about the short-term dynamics. >> it is one of the things that we look at. stephanie: one of the things we have seen is the trade deficit still going up. soaring over the last year. against the backdrop of all this, do you think that this trade negotiation that you have can possibly affect the macroeconomic causes that are pushing up the u.s. trade deficit, being important? mr. mnuchin: the president's economic plan has consisted of tax reform, regulatory relief, and trade. part of the reason the deficit has gone up is the economy is growing. as a result of the impact of tax cuts. that is a short-term issue which, again, is the unintended consequence of a growing economy.

we are focused on trade and turning that around. >> you may come back with all of this saying that we've got all these deals. meantime, that dynamic you just talked about, it sends the trade deficit higher. mr. mnuchin: if we can get the fundamental changes we are talking about, and that is what the president is looking for, it will deal with the trade deficit. mr. mnuchin: we talked about the trade market and inflation and there is always something that ends up causing the next recession. we know there will be another recession. mr. mnuchin: we're narrow ever -- never very good at predicting what it is. stephanie: what do you watch iago is there something that could be the biggest risk?

mr. mnuchin: i think the issue is, in this cycle, the risks are relatively low because credit quality is very good. it liquidity is very good. bank lending is very strong. the next issue is going to be something that we don't anticipate. stephanie: thank you very much. we will have more coverage ahead here from the milton conference. this is bloomberg. ♪

>> you are watching bloomberg daybreak middle east. benjamin netanyahu says that he has evidence of the nuclear program. on the koreanace peninsula. he says why they are set to profit. >> i have waited for this moment and they don't