richard falkenrath, our guest host for the hour -- what prompted this? >> a good question.he strategic posture of russia around the arctic, but, second, the arctic is becoming especially significant because of the thinning of the sea ice in the arctic, which has major economic implications. first, mineral resources. it is estimated about a quarter of the world's petroleum resources are in fact in the arctic region, and, second, the possibility of a northeast or northwest passage avoiding the need to go through the suez canal or the panama canal want the sea ice thins and you can keep the sea lanes -- >> that is a big deal, richard. from what i have read, it shaves about 30% of the shipping -- a big deal. >> yes, it is a big deal. there is one that goes north of russia called the northeast passage. it open for the first time in 2007. about 71 ships sailed that waking 2013. --000 went through the cm went through the suez canal. it saves money on fuel, but they have to pay more for insurance and ice raking but it is a significant development. --isn't all sable rattling saber r

we will find more from richard falkenrath.ve an essay from robert manning, a fellow at the rent escrow croft center. anwrites that it seems like overgrown spoiled child -- the fact that kim jong un, purged his uncle, one of the adults in the room signals perhaps more tensions ahead. >> who brings the most forced to bear, richard falcon raft? in north asia -- the asia five, kazakhstan and china, it seems like a game of risk. the most forced to bear on this leadership in north korea? >> china, no question. china is almost the only country with influence over what happens in pyongyang. >> there is a rift. explain the fear china has? >> china does not when a failed state on the southern border. the river is the physical berry. there are a couple of bridges. it is a lot of illicit trading. a lot of the foreign goods going into north korea, cross the river. the refugees who escaped the gulags, cross by swimming across the river. they also don't want an extension of south korea up to the river. >> and the chinese province that border

always.you, as richard falkenrath joining me there, contribute in editor at the chernoff group.is 26 minutes past the hour, that means it is time for bloomberg on the markets. i want to show you what is going on. you will see red on your screens there, you have the u.s. stocks dropping. this is on fed bets on mid budget talks. gm stocks going higher as the new gao -- as the new ceo announced more trade. ♪ >> this is money moves, where we focus on innovative alternative investments. here are your bloomberg top headlines this hour. in johannesburg, leaders from around the world joined with south africans to mark the life of nelson mandela. the ceremony at the biggest soccer stadium was the first of three major public events this week. president obama was among those paying tribute. never see the life of nelson mandela again. let me say to the young people of africa and the young people around the world, you too can worth your own. >> and the first female ceo in the global automotive industry, she started her career as an intern more than 30 years ago on the factory floor. in charg

is a pleasure that we have richard falkenrath and richard clarida with us.w on north korea. yourel o'hanlon, perspective on the path forward for north korea. how did he respond to this purging? >> nice to be on an good morning. whole lot to add, especially since we're speculating about the motives. you ask about south korea specifically. i don't think they do much except stay vigilant. this is not an opportunity for any new policy initiative as richard pointed out. be one ofseen as may a few relatively reform minded north koreans, although even that has to be put into context. it is not as if his disappearance represents the ascendancy of a new reform weighing that once a new policy of engagement. if anything it is probably more the opposite. it is a time to stay vigilant and worry a little more than usual, but the on that i'm not sure that soul are washington -- and washington are worried. >> was a distinction between the older people we see those images in the younger people like the new north korean leader? >> i don't know yet. one thing i had been helpin

richard falkenrath will join us. america's great monetary academics, jerk cleared aof pimco -- richard cleared of pimco. i'm going to get richard -- can you see it? >> great move. >> jim o'neill wouldn't do this. >> it would be something in the air. >> i should point out, overnight, around the world and particularly in california, there was a massive uproar on twitter on their blocking strategy. twitter relented at about midnight east coast time and they changed the blocking. this is huge news within social media. we will discuss that as well. >> i'm looking forward to hearing more and that story. thank you, tom. + for that dancing. >> that has got to go viral. if it doesn't go viral, i don't know what will. >> up next, writing the ferari on the sea. >> and how it cashes in on some of its celebrity connections. ♪ >> welcome back to "the pulse." bloomberg'sfrom headquarters here in london. let's get back to our big focus of the program. we have been taking you inside riva today. italian luxury makers are often making

deputy homeland security adviser in the bush white house and bloomberg contributing editor, richard falkenrathmakes me every time he is here. >> why? sohis information is always dangerous. >> it's not scary now. that's coming in the future. >> are we living in the world of "minority report," that tom cruise money. >> not yet. >> yet. did you hear what he said? "not yet." individuals can be pulled out of the picture intact. >> your iphone can identify the same pictures. >> there is the distinction between the public environments. -- youe give them the have given them the permission to do that. that is called express consent. there is another domain called implied consent which is it you step into what walmart you are giving implied consent for them to monitor and track you. that is an entirely different right to see doctrine and that is where the crux of this debate is. >> do you know who this makes me worried for? not you -- your daughters. your teenagers. when they get on social media, m.com, theyet on hand do not realize what they are signing up for. they are signing away their privacy. >> y

--richard falcon wrath falkenrath. >> that practice predates the economy goes to the credit card economytech companies collect all this personal data on us. then they figure out how to sell us on things. why aren't people more worried about the extent to which this data is being used against us? >> i think they think of the reality. i have a fundamental distrust of the government. whether it is because of a monopoly or whether because we think everything from our voting record start taxing records are going to be linked, we think the government is more efficient at connecting these dots when the drones from amazon are more likely to arrive at our door. >> when the corporate eta it -- corporate eta horrid it's too creepy, that is when people will fight back. etdata.rporate >> they're still hugely successful. >> we also want to take a look at how the nsa surveillance has hurt the prospects of a couple of u.s. companies and benefited some european companies. .e will continue a four-time academy award winner, the man who pioneered special effects on the hobbit, will be joining us later. >> i