mohamed el-erian in washington.irili, who has worked so hard in washington. we need to go to a morning must-read from "the washington post." it was a scathing essay. with theilli, help us mood this morning in washington, what is the level of crisis? kevin: lawmakers are still searching for answers for the timing of why president trump decided to fire now former fbi director james comey and quite candidly the explanations they gave yesterday were not really all that clear and that means that the investigations, not only in the intelligence community, but now the fbi director who met with president trump yesterday, and also the senate intelligence committee, which will have a hearing later today and next week, mr. comey will meet with them. tom: who is playing hr haldeman? up to link this to nixonian times, but who is advising the president step-by-step? kevin: there seems to be continued division. enter mccabe will be testifying later today in congress at about 10:00 a.m. he is the current fbi director. the big quest

jonathan: we have the perspective of mohamed el-erian. central banks, we are very used to talking about how hard it is to find a consensus. let's talk about the foreign policy. some of these guys and that room, there is not the shared foreign policy. it's very divisive. they can come together and put through an agreement on oil. how is this getting done? >> they can and they have. i have stuck to it. this is a different opec agreement. thought first they need to include non-opec. it is much more differentiated among its members. in terms of uncertainty i don't think it's the aramco ipo. so far non-opec has delivered half of the cuts they have promised and they really need to step up. it's great to have alex and houston because we still don't know about the price responsiveness of shale. are in theing is we $45 to $55 range. aether we move either way is function of what shale does as opposed to what opec does. david: it's very difficult to get a cartel together. for years opec was really nowhere. what brought it together you go is it shale

our guest most this morning mohamed el-erian, allianz chief economic adviser.s have been right around flat. nasdaq is stronger. nasdaq indicated up 14, the dow up 8, s&p up 2.3. treasury yields, twr between 2.2 and 2.3 last time i looked. this morning, the 10-year 2.28. 2.28. >> a few retailers under pressure after releasing quarterly results. home improvement retailer lowe's earning $1.03 a share, three cents below what the street was expecting. revenue also came in below forecast and same-store sales increase was 1.9%, below the 2.9% the street had been expecting. the stock was off by quite a bit more earlier this morning. right now down 3.8%. the comparison to home depot has been rather stark. at least in this last go around. >>> also check out shares of tiffany's. the luxury goods retailer beat on the bottom line by four cents posting quarterly profit of 74 cents a share. but revenue missed forecasts, and comp-store sales posted an unexpected decline and as a result that stock is down by 5.5%. >>> on the agenda, today the federal reserve will release the mi

vonnie: that was mohamed el-erian the chief economic advisor at allianz. eadlines from the opec news conference. mohammed barkindo saying opec invited u.s. shale producers for talks. this is a big development. dividing them for a talk. hasali said earlier that he personal dialogue with some u.s. shale producers and he does not believe there is any confrontation between opec and u.s. shale producers. he said it is getting more costly in some areas and u.s. shale is experiencing cost inflation. those are some headlines out of the opec meeting. next, gm becoming the 6th carmaker accused of a cheating scandal. we go to detroit for an update. this is bloomberg. ♪ ♪ vonnie: this is "bloomberg markets." general motors has been hit with a class-action lawsuit. it alleges that they put devices into trucks to beat emissions tests. they are the 6th carmaker accused of cheating when volkswagen admitted to installing software to bypass emissions rules. first of all, jamie, will they try to fight this or will they admit that this cheating did happen? and maybe try to set

mohamed el-erian and danny blanchflower.me of the issue that you have been concerned about, participation rates, the quality of jobs. do you agree with his prescription on what we need to do? i agree with almost everything he said. the thing that we can talk about is direct support for work and training. perhaps targeted support, but giving incentive to firms to hire people. what we have seen, we have seen a big rise in the use of capital, we have seen firms basically substituting away from workers to capital. that is because the relative price to capital is low. if you could think about ways of giving firms incentives to hire people, focus on those incentives, you could change the relative price. so the point of using all of this technology is it is relatively cheap. investing in human capital looks like a really good idea, and perhaps go back to our earlier point about disconnects between the cities and rural america. i think, certainly, perform, thinking about training, giving firms incentives to train, incentives to hire

jonathan: i sat down with mohamed el-erian a few years ago and he said this will be the loosest tighteningn history. yields still grind lower on ten-year treasuries. why? gregory: you look at the balance of data, it has been mixed. an upward revision of the first quarter but it is still at the same kind of trajectory we have seen the past few years, 2%. i think the inflation number is key. in my mind, inflation peaked in february so the fed is doing anti-qe. we have had all of this stimulus thrown at the u.s. economy and we grew 2%. what happens in an anti-qe type of environment when inflation is subsiding and coming down and growth is not on the same track that many thought? i think that is your answer of why yields are where they are. jonathan: are the treasury there's going to have a tough time for the rest of 2017? innie: i think so -- brian: think so. i think we are range bound. the previous guest was spot on, it is the inflation story. while the survey-based measures are taking up, you look at the long-term market-based measures of inflation and they are starting to trend a little bi

it is payrolls friday including bill gross, rick rieder and mohamed el-erian. margin. up .2 on the s&p 500, up 31 on the dow. you are watching bloomberg. ♪ ♪ >> the consensus, the federal reserve looking fractured. i when it see i to comes to inflation. at a record high after a record high in 2017. blackrock's larry fitz pointing to a lackluster second quarter. and fund managers going all in on the banks, for more than one quarter of the s&p 500 this year. from new york city, good morning, good morning. ." s "bloomberg daybreak we are counting you down to the opening bell. futures are firmer on the market , of 1/10 of 1%. possibly 2/10 on the s&p 500. kaplan,e and robert with a bottle of scotch. the marathon conversation between these two, wrapping up, the highlights of which we will bring you quickly as they had the market daybreak. alix: here is where we stand in terms of movers. michael kors getting slammed by over 7%. the revenue was a bit at her, but really the outlook was not great. fourth-quarter sales missed estimates, slashing the first quarter, earnin

mark: one of my favorite articles was by a new bloomberg columnist, he came on the show, mohamed el-erian. he said the sequencing is all wrong, trump and the administration need to boost the economy, they should focus first on infrastructure, then moved to health care. it is a fascinating he's if you have bloomberg, which begs the takeion, how long will it for a tax plan to come to fruition? it is a great question. we only have these basic tax principles. we have a long way to go to fill in the revenue raisers if any, things, are the other and we have fewer than five in the legislative calendar to get it all done on top of figuring out the budget, the limit, and health care. and health care has to be tackled first. so the fact tax reform could get done it seems to be slipping away. back, donald trump knows the health care scoring very much in focus yesterday. there are special elections and legal impacts for town halls after the recent -- montana, there was a very heated exchange between a reporter and candidate. do we expect to see more of this , and we do sensors -- when will senators a

that was mohamed el-erian on the break america's earlier today.ron wyden will be joining us. score weiscuss the cbo got yesterday on the american health care act. a quick reminder, you can check all of our interviews on the bloomberg with tv go. charts on the right-hand side. this is bloomberg. ♪ . >> it is 2:00 p.m. in new york and 7:00 p.m. in london. ♪> welcome to bloomberg markets. >> live from new york, let's get to the top stories from around the world. in politics, president trump shamed nato leaders for not paying their fair share of defense spending by the white house says it is in this getting intelligence leaks that revealed sensitive information about the manchester bombing. plunging despite an agreement that opec will extend production cuts for nine months. we will examine why investors are not satisfied with this deal. shares of best buy climbing, an all-time high with a boost from mario and luigi. more on the surprise. u.s. stocks trading higher two hours from the close. best buy at a record high and ths&

mohamed el-erian brought that up with us today around this table.aited longer, they could've done some real damage to the industry. keith: it is a bit counterfactual. you had various lifelines thrown to the marginal producer in the u.s. and shale, whether that be through banks extending credit agreements or opec putting this production cut into place and i think it could have potentially delayed the day of reckoning. shale -- we use this broad term, shale is 30% cheaper to produce and double the productivity, but if you go by what people are saying to me, we are reaching the seventh-inning and i said this yesterday on "surveillance" sorry for the duplication on your show, but that shale you have so far is cheap and it is cost-effective, but we are moving to a new period in shale which is the seventh-inning and it is going to cost more. that is what the societies are banking on. -- saudis are banking on. david: if you are right about that, you are assuming technology does not keep apace. manus: to be fair, they dropped by 30% and doubled can -- reduc

mohamed el-erian on that later. ♪ >> this 3 p.m. in new york, 4:00 p.m.ancisco, i'm julia. scarlet: and i'm scarlet fu. welcome to bloomberg markets -- markets. julia: where i from bloomberg world headquarters into new york. top stories first. lower down trading to $49 a barrel for crude. enoughd production cuts to please investors. jim is hitting a legal roadblock after the automator claims they volkswagen'st a book to rigged tests to past missions tests. challenges to trump administration agenda. where one hour from the close of trading. this get a closed -- but get a weck at market street julie: record today for the s&p and nasdaq. we seem relatively muted going into the long holiday weekend. six straight sessions now. this is higher for the major averages. part of the game is coming from earnings and part of it is coming from momentum. if you take a look at the groups on the move, julia pointed out that oil is falling in the wake of the opec meeting in vienna. not enough to counterbalance all of the gains that we are seeing in consumer discretionary.

i'm going to use that, because you know, because you're mohamed el-erian. thank you for being here. i'm not mocking you. i did not mock -- not at all. go ducks, oh, sorry. tomorrow -- "squawk on the street" -- join us tomorrow, "squawk on the street" is next. ♪ >>> good morning. welcome to "squawk on the street." i'm david faber along with jim cramer. and we are live from the new york stock exchange. carl quintanilla has the day off. let's a look at futures as we're one half hour away from the beginning of trade. kind of a mixed bag at this point. i'm not going to call it open -- i mean, up or down. let's just see. the european markets have been open for some time. there we can give you some actual answers. also, well, largely down other than the ftse in the uk which is up. but no great moves there. thank you for italy and spain in the control room. i like to see a broader picture other than the big three. as for crude oil which we go to next, 2.276. wti back above -- well above it's kind of a stealth move there a little bit. >> that's all talk ahead of the opec meeting. >> hot air?

coming up later, we have a lineup of guest for you, including mohamed el-erian and richard haass. to the middle east for live coverage shortly. ♪ alix: nations must join together to protect human life. that coming from trump in response to the 22 killed in the u.k. manchester attack. we are waiting for more comments from trump and will bring them to you. in washington is getting set to release its first budget. an important focus of the budget is going to be on fighting terrorism, with a request for more funding for the department of homeland security and department of defense. give us a sense. we heard the words the president said. give us a sense of what the reaction from the trump camp is. kevin: he said he wants to obliterate the ideology. he also said those responsible for the manchester concert attack should be held responsible and called them "total losers, evil losers." this was the first unscripted moment in which the president had to respond. beeneetings in israel have centered around scripted moments. the events in manchester giving the president the first opportunity t

coming up, mohamed el-erian on some of the constraints out there.n brussels, this is bloomberg. ♪ ♪ taylor: this is "bloomberg surveillance." morgan stanley has become a substantial shareholder in hong kong's noble group according to the struggling commodities trader. noble group is battling for survivor after more than two years of losses, asset sales, and credit rating downgrades. china expected factory in open -- expects its factory in china the end of next year. the company expects to deliver close to 200 planes in china this year. within two decades, china is likely to overtake the u.s. as the largest market for air travel. that is your bloomberg business flash. francine: thank you so much. opec has extended oil production cuts for nine more months according to a delegate. this after last year's landmark agreement failed to achieve a sustained price recovery. manus cranny is at the opec --ting and he spoke to many when they all meet, it is never an easy task. talk to us about what the mood is like. they seem to have an agreement. will it be eno

tuesday, coming up on aursday, mohamed el-erian and chief economic advisor will be joining this programteel will step aside. alix: it is a good trade. jonathan: from new york city, counting you down to the opening bell, about one hour and 34 minutes away, futures really don't know where. price action very muted. treasuries flat, euro-dollar unchanged. you are watching bloomberg. ♪ jonathan: china hit by the first downgrade since 1989. -- resistance in d.c. and skepticism on wall street. accounting gimmicks. to today's fed minutes on insight for the $4.5 trillion question. good morning from new york city. a good morning with jonathan ferro, david westin, and alix steel. futures unchanged, the euro-dollar on chair -- unchanged, 10-year unchanged. >> we have a busy day. 10:00 a.m., home sales coming out. watch this number. 10:30 a.m. eastern, week definitely see it with the oil number before tomorrow at 1:00 p.m.. 2:00, one minute from the by the conversation critical for those minutes. high leverage. moody senior president spoke with bloomberg television earlier. >> we are looking at the