david: marc chandler staying with us.arabia's efforts to revamp its economy. the conference appears to be according ordinary citizens -- courting ordinary citizens. that's next. this is bloomberg. ♪ david: the saudi crown prince is continuing to shake things up in the kingdom. this weekend authorities change their budget plans, giving more to ordinary citizens and putting 11 princes in jail for protesting the government refusing to pay utility bills. we welcome in glen carey emaar bureau chief for saudi arabia. he comes to us from riyadh. chandler. us is marc explain the significance of the changes of the weekend. glenn: over the weekend, the government announced hea handouts to the saudi population and at the same time arrested 11 princes. they want to offset the impact that saudi's feel given the recent price hikes that have come within the 5% increase in gasoline and electricity costs in the country. they want to offset that. it's really crucial for the crown prince of the country to maintain that ace, which is his pub

we were talking about this with marc chandler earlier in the show and he said that in the last couplehave seen is inflation expectations starting to lift. will be anight, that incursion sign and that was partly reflected in some of that chart. that was reflected in the fomc discussion as well. looking at this year, two different ways, what are they showing us? is getting to the mystery of why inflation is so low. it's due to the san francisco fred -- fred calling it procyclical inflation. but a cyclical inflation is the kind of stuff that the fed likes to blame for low in-flight -- low inflation. that's the oars line. the white line is the components into labor market tightness and you can see that that has declined this year and equal amount. there is a real question here about the phillips curve and everything associated with it. joe: if i look at this chart, just procyclical could be working. serenity tonted the not affect the things they can't change? >> some would argue that, but many are reticent to establish something like that over the long term where they are trying to hit th

we focus on fx, as marc chandler -- with marc chandler. we have got u.s.losing in an hour's time. let's get a check on where things stand with julie hyman. two days of record highs. julie: very much like last year. as the major averages that more records. the nasdaq up record as of 1%. we set a pattern. it is a today pattern for the major averages. today very much like yesterday. let's look at what groups are on the move. it is an interesting story. energy, which is the worst performing group of last year, is leading gains today. of in the gains even information technology. otherwise, a broad-based rally with many of the cyclical groups doing better. the more defensive groups that are on the back foot today, telecom, and utilities among them. that is where we are setting up. interesting individual stocks and groups on the move, include restaurants. there are a number of different industries that are poised to gain from the tax legislation that was passed late last year. some of the stocks have been -- benefited more than others. there is a catch up being p