david: jim tisch. he is the loews corporation president and ceo.g up, we are talking about oil. stock really taking a beating thus far in 2016. will shares be able to rebound as oil companies look to increase their production? that's ahead. this is bloomberg. ♪ alix: this is. i'm alix steel. diamond offshore drilling has one of the best credit rating in the oil services group. stock has gotten hammered. tisch is chairman of diamond offshore and president and ceo of loans. an insideally give us look into the oil community. the first thing oil companies are going to want to do is increase production. surplus forng a longer in 2017. what's your oil price call? have sworn off making oil price calls for six months from because it's impossible to gauge what's going to happen over the next six months. over the next two years i think oil is going to go to 70 to $80 a barrel. the industry is dramatically under investing in now. there's not going to be enough production two years from now to satisfy the worldwide demand and so prices are naturally going to g

jim tisch says that the fed has distorted markets by sticking with ultralow interest rates. oomberg go" team this morning. jim: all you can do is grin and bear it. the markets are priced for perfection. 10-year notes are trading at 170. long bonds are trading 80 basis points higher. i think everybody knows that in the long-term securities are going to trade at a loss and you have got to invest. that is exactly what i was going to ask -- where are you on the margins making decisions? jim: we are definitely short duration. generally we have been buying 10-year note and rolling down the yield curve. said -- theis they fed is managing the entire yield curve. we have rates in the intermediate to long and then a 300 basis points below where they should be and that is causing, in my opinion, all manner of problems. >> the question i'm asking you, we have heard a lot of people talk about bond scarcity. do you feel that? is there an issue with not enough securities out there? jim: we have $45 billion of assets. issue is so important for us. that isn't so important for us. what is impo

we also have jim tisch of lows. -- of lowes.bigger energy component than people think. david: particularly exploration. with hisgreenberg -- lawyer -- and hank greenberg -- with his lawyer -- they just opening arguments. it has been 11 years. remember elliot spitzer when he was attorney general? they have been fighting this thing through and will not give anything up. the basic claim is that there were some accounting misdeeds back when hank was running aig, back in 2001 comes in big reinsurance deals. tom: we are finally there or that is all there is to it. him,: i am going to ask where is the line between honest mistakes and stepping over the line? when we hold people accountable. om: on "bloomberg ." we look forward to that. steven wieting from citigroup, usually looking at the u.s. beu.s. reports, there will -- and then there is mexico. -- mexican peso, dollar-peso there it goes. and up toout of 2014 a 20 level. we extrapolate out from a weaker 19. rebecca: that is the dollar -- steven: that is the dollar strengthening.