elliott gotkine reports. arch 17, up for grabs, 120 seats in parliament and the chance to be the 19th prime minister. no party has ever won a majority and coalitions are inevitable. that is when things get interesting. fewer than half of the parties are expected to get the minimum needed to win a seat. those that do may find themselves kingmakers in a right-wing government led by netanyahu or in a coalition led by herzon, who leads the zionist union. there is another possibility that netanyahu and herzog join forces to create a national unity government. you never know. mark: let's get to elliott gotkine, who is standing by live in tel aviv. netanyahu spoke at a rally and warned the left will win if they do not vote for him. is he on the ropes? elliott: he seems to be running scared from enemies real and imagined. he talked about international conspiracy, finance from scandinavia and the united states. millions of dollars are going into international efforts to usher in a left-wing government that would make t

elliott gotkine: she was three things to be included.ger -- first of all, a longer time for iran is able to get a hold of a nuclear bomb. and wants to reduce the amount of infrastructure that iran is allowed to have. finally, it could be a sticking point it wants the lifting of sanctions against iran to be conditional on tape run -- tehran stopping the destruction of israel. one more point, in a letter written from republicans in the congress to iran's leaders warning them even if they reach an agreement with president obama, once he leaves office, it could be a change. it could be changed at the stroke of a pen. anna: anna -- netanyahu's frederick, how much is related to elections later this month? elliott gotkine: the presumption of these talks and the so-called p5+1 resumed on tuesday -- sunday and two days later, netanyahu is stronger on security measures whether in regard to iran are palestinians, no surprise netanyahu is mentioning that. at concern faced by many as israelis, a number of israelis evidenced by anti-netanyahu protests

elliott gotkine, bloomberg, tel aviv. ow for more on today's israeli election, let's go to elliott in tel aviv. over to you. elliott: thank you. one of the key questions for us and our viewers is what does this election mean for business? i've got one of israel's most high-profile business people. the former chairman of the company sold to berkshire hathaway for $7 billion. great to have you here. thank you for joining us on the roof in tel aviv. for businesses and the business community, do the elections matter? >> they do. there are winds of change in the air. nobody can make prediction but we all want to live with the rest of the world. if you want to get big, you have to go outside. israel is a small market. amazing amount of entrepreneurs in the jewish and arab sector everywhere. people want to do things, they need more markets. we have no reason to be there, we want a leadership that will find how to live with the rest of the world. the old models do not work, you have to do something with the future. elliott: i do n

let's get out to elliott gotkine . shocked many, reversing his position and coming out against palestinian statehood. some said it came across as desperate. is there a sense that it won him the election? elliott: certainly he managed to shore up his right-wing base in the last way four hours of the election. he said there will be no palestinian state. a statement of the obvious some would say. that was not the most shocking thing he said. the most shocking thing was the video he posted on facebook urging people to come out and vote because there was a large arab turnout at the polls yesterday, something that has not traditionally happened, and he was worried that the arab parties would steal votes away from him. some people might see it as desperation. others may see it as a series of tactical marks. it worked. brendan: do we have a sense of what his coalition will look like and what that will mean for policy? elliott: he has spoken with the leaders of the other right-wing parties. a view to forming some kind of coalit

let's getting over -- let's get over to elite gotten. -- elliott gotkine. his to me, will you? elliott: the prospect of a coalition in the u.k. seems simplistic, by comparison. the last opinion polls gave a lead of four seats to the zionist union. we are talking about 26 out of 120. you need 61 to form a governing coalition. there seems to be more natural right wing allies for netanyahu, who we saw voting at the opening of the polls at 7:00 local time. he seems to have more natural right wing allies with whto enable him to form a government. netanyahu was trailing in the final opinion polls. even if the zionist union wins they may not have enough coalition partners or natural coalition partners in order to form a government. interestingly, unlike in some countries, like greece where the biggest party gets the first chance to form a government. in israel, the president enin a week, will tap the party who he thinks is most likely to lead a governing coalition, even if it is not the biggest one. they have been voting since 7:00. the polls close at 10:00. we wil

elliott gotkine has more. this all seems to be coming from net and yahoo!'ut of a palestinian state. this is the response -- netanyahu's ruling out of a palestinian state. this is the response. elliott: benjamin netanyahu was desperately trying to shore up his votes before the election. he implored voters to get out to the voting booths. he apologized if he did offend anybody. he rolled out a palestinian state if he became the prime minister. you would still have to have talks, negotiations, reach an agreement, have an implementation. certainly, from the white house perspective, netanyahu effectively reversed his support for a two state solution, which he made in 2009. president obama: we believe that two states is the best path forward for israel's security palestinian aspirations, and regional stability. that is our view and that continues to be our view. per minister netanyahu has a different approach -- prime minister netanyahu has a different approach. elliott: the new israeli government has yet to even be formed, but it seems pretty obvious that netany

middle east editor elliott gotkine joins us now. give me the latest. tand the saudi-led strike continued into the early hours this morning and are expected to continue over the weekend. elliott: they will continue their campaign until they feel they have achieved their objectives. the prime objective is to try to bring a swift toned this operation in order to get shiite rebels to the negotiating table to reach a peaceful settlement but at the same time the saudis are determined to ensure first of all they do not overrun yemen. they don't want a proxy for iran on their border. they don't want to prop up the internationally recognized government. it is not just what is according to some already, already basically a civil war. but they don't want to see the likes of al qaeda, for example, having more of a free reign on the peninsula. they don't want to see conflict moving on to the border with saudi arabia itself. it is a large number, a large laundry list of goals and objectives that the saudis have. the principle one seems to be to try to bomb them into

i am bringing in elliott gotkine and.talk about the israel election happening in less than 24 hours. benjamin netanyahu is clearly on the ropes. the polls are pointing to a narrow win for his opposition. i want to take a look at what this means for the overall government. i am going to bring in elliott gotkine from tel aviv. what does this mean for netanyahu? clearly he is against the ropes what is he going to do? >> that's an interesting question. it all depends on what results out of tomorrow's election. it is important to note that even though things started off swimmingly with that speech to both houses of congress morning against the dangers of a bed nuclear deal with iran, and since then, that she was in the poll numbers at that time. the final poll numbers from friday show the opposition could come away with 26 seats and then yahoo! -- netanyahu's likud with 26. but just because you become the biggest party in parliament does not mean that you and your leader will become prime minister. it has happened before when

guy: to get all angles covered, we are joined by elliott gotkine. and tim choices as well. and jason goodell on set. elliott, let's start with you. give us the latest. elliott: the bombinb rg raids have continued into friday. they will continue until objectives have been met. they are not crystal clear exactly what the saudis are aiming to achieve. at first glance, it would appear that they want to bomb the sh iites rebels -- to get them back to the negotiating table. at the same time, the saudis seem to be determined to ensure that the houthis do not overrun yemen. they want to prop up the internationally recognized government and they also want to ensure the instability we have been seeing in yemen does not pull over the order into saudi arabia for the rest of the region. francine: tell us more about the contact with the un security council. elliott: we understand from two arab diplomats that feelers have been put out to the security council to look at the possibility of some kind of arms embargo on yemen. this would target weapons that may or may not, that maven destined

olivia: elliott gotkine, thank you. looking for it to your interview with the u.s.sador to israel. brendan: adidas is making a shift in strategy. breaking up with the nba to focus on individual sponsorships. will it help adidas gain traction in the u.s.? this is bloomberg "surveillance" on bloomberg television. streaming on your tablet, your phone, and bloomberg.com. ♪ tom: something to watch on bloomberg "surveillance." moments ago, a 42 print on oil. we are at 43. oil very light appeared interesting backdrop to a fed meeting. stay with bloomberg for the next two days on the fed. brendan: adidas, the second largest sportswear company in the world, it has decided not to renew its deal to be the nba's official outfitter. look at the yellow, that is year on year growth from adidas. that is just growth in sales in the u.s.. where do you see the pretty? the red, under armour. you can pay an entire leak or event to get your name all over shirts, or you can pick up players and get your name on their shoes. nike has done both but has focused on shoes. adidas likes to spons

let's go to tel aviv, where elliott gotkine joins us now. netanyahu seems to have turned things around at the last minute. elliott: he does, though some would question the cost entailed in doing so. in the last 24 hours, not only did he reneg on a previous subscription to the idea of a two state solution with the palestinians he said that as long as he is prime minister, there will be no palestinian state. he also went on his facebook page and said you must get out to vote because there is a really high turnout of arab voters who have been invited to polling stations by left wing parties. some people accuse him of racism . at best, it was clearly playing a little bit of politics. 99% of the ballots counted, benjamin netanyahu's party is the biggest with 30 seats. the opposition, 24 seats. the united arab list, 13 seats. a real turnaround from when i went to bed at around 1:00 this morning local time. caroline: a long night for you. six seats ahead. what happens now? it is all about the forming of the coalition. elliott: it is always about the

elliott gotkine has all the details. what is the latest and why are thise saudis getting involved now? elliott: even though the shia huttis were in control of the capital, they started marching down towards the port of aden. that would have given them control over yemen's main access to the sesa. it is strategically located for trade and for oil exports, given it is at the exit way to the red sea, and towards the suez canal. is concerned about yemen sliding more into civil war. th instabilitiese owing over and the possibility of an iranian the latest is the saudis happen bombing strategic locations, military bases. there was an air base not far from the airport which until recently was home to u.s. special operations. they evacuated last week. they have attacks the presidential palace according to report. there are many strategic locations, the saudis had committed 100 planes and 150,000 troops. they are backed by morocco, sudan, and pakistan. they want to stop yemen sliding toward civil war and to become a bigger haven f

a man that is not confuse, elliott gotkine. o explain the it all comes down to i guess voting blocs rather than the party. give me detail. elliott: that is right. essentially although netanyahu's, party which is a right-wing party which has been trailing in opinion polls, about 4 seats between that and opposition, zionist union. opinion polls one by natural right wing coalition for netanyahu and then the seats and potential allies. unlike of other countries, like greece for example where the biggest party always gets the first chance to try to form a governing coalition. in israel, the president with the final results are in, he will cap whoever wrote the shoulder he think is likely to form a new government. even if it netanyahu's party is the second biggest in parliament, he can end up being prime minister. it will not be the first time. two years ago the guy running on the -- she won the election. netanyahu could still become prime minister despite losing. jonathan: elliott, you get closer and closer and people start pulling g

elliott gotkine is reporting from tel aviv.t be spinning over the politics, and is brendan greeley mentioned earlier, the reemergence of the arab league. how does israel perceive what we see in the middle east this weekend? elliott: i think what we're seeing right now tom merely serves to underline that some of the things that prime minister netanyahu was talking about when he came and gave the controversial speech to congress in the mist of the election campaign. we don't actually have a new israeli government just yet so we are not exactly getting the ministers lining up to say certain things. i think it is just more evidence that look, you are criticizing us -- this is what prime minister netanyahu presumably would be thinking -- that israel is being criticized for not making peace with palestinians and not handing back territory that was conquered in 1967. every time there is some kind of vacuum jihadists for rebels or insurgents get in there and make matters worse. when you are in this region israel will again point out th

elliott gotkine reports. t: after a decade of sanctions, time is running out for iran and world powers to reach a deal. the security council in germany want to ensure that iran is unable to build a nuclear bomb. they want limits on to rant enrichment capacity -- on tehran's enrichment capacity. for iran has always said. it has no ambition to build a bomb. the supreme leader says they are unnecessary and harmful. but a watchdog found them hiding in enrichment facility out wide a mountain. that brings us to sanctions, imposed after the 1979 -- and they have cost the economy $120 billion in lost revenue. given if they reach an agreement they will have just three months to conclude a definitive deal. republicans in congress are threatening to blow up with a fresh round of sanctions if they don't like what they see. anna: meanwhile, oil is headed for a third quarterly loss when discussions continue. let's bring in our chief economist. the reason is because once upon a time iran was a pretty big provider of oil. but

our middle east editor, elliott gotkine and reports. he permanent members of the unc security council want to inshore iran is unable to build a nuclear bomb. they want curbs on development. iran has said it has no ambition to build a bomb. after reneging on agreements, iran is not trusted. they cost the economy $120 billion in lost revenue. iran wants them scrapped. they want -- they will have three months to conclude a deal. it could blow up with a fresh round of sanctions if they do not like what they see. francine: we will have more from our reporter on the ground. these are the other bloomberg top headlines. hsbc slow to fix compliance lapses. according to two people familiar with the material, they are falling short of its agreement with the u.s. to cleanup operations. the head of the royal bank of scotland's security unit is leaving over a clash on how to implement a strategy to scale back the bank. today marks the deadline for countries to commit to becoming founding members of the asia infrastructure investment bank. in may lack

elliott gotkine and the middle east editor in chief. he will be monitoring the grounds all day today. he will be here to break down the results for us as they come across. much more ahead. a morning of ceos for you. we will be talking to patrick doyle, how they plan to cash in on march madness. also, american airlines ceo doug parker, on his company joining the s&p. you do not want to miss it. stay "in the loop." ♪ betty: one m&a not likely to happen. scarlet fu has more. scarlet: rejecting and saluted bid from simon. they turned down the $91 share. they say it undervalues the company. part of its defense it is making a couple of government changes, including the dividend distribution of --. it has to do with preferred shares and a limited duration rights plan. the takeaway is they are saying no to simon properties. this is being discussed. we will see what simon property group's response. betty: here is a look at our top stories. one goldman sachs division predicting annual growth above 10%. they saw an 11% revenue jumped last year. th

our middle east editor elliott gotkine will join us later on the back of that conversation.e meantime, i want to take you through where we are with them a big market moves. this is crude oil. if you do not know where the big trend was over the last 24 months. on the back of saudi getting involved on a bombing mission into yemen, this is them. a long -- with the other comrades or allies. this is wti. we have got -- this is brent rising by 3.5%. brent has been rising for five days. longest winning streak since june, 2014. jobs. . have a look at this map it shows you the position of yemen. the size. you have the port. if there i s any disruption in terms of the 3.4 million barrels of oil that pass theourough per day. tank is will have to go around the port of africa rather than through that act as into the gulf of aden. that is why you see this i can oil prices. let me show you the nymex crude price. you are seeing volumes go through on nymex crude. trading at 51.30. lines were three times the daily volume. $51.80. nymex up 4%. what you have got is a real spiky move. 17% rally