Better than estimated. How would you characterize the recent data and the strength of the economy . Win i would say its solid. We had some outliers, but you look at some models, the atlanta fed has growth somewhere around 2. 3 . The new york fed now has some thing around 1. 2 . I expect the truth is somewhere in between. I think we will avoid recession in 2020. Thats what the yield curve is telling us. We went from an extended period of inverted yield last year to positive. I think markets feel pretty good. That said, we have a few hurdles out there. Vonnie iran the and one of them. How do you see this escalating tension, the titfortat impacting markets, particularly currency markets . Win we started the year pretty much popping open champagne, hitting record highs in the equity market, but we got a serious dose of reality. A. Trump has ignited situation in an already quite unstable region. Iran has pledged retaliation. When, what, where, we dont know. That is not just against u. S. Its a very wide ranging possibility, but markets are braced for some sort of retaliation. I think that is going to keep a lid on any sort of significant rally in risk assets. Equities, emerging markets, etc. Safe haven plays should remain in play. Dollar, investors in yen. Gold is hitting highs, oil is elevated, but a lot of uncertainty. As you know, markets hate uncertainty. Guy the markets seem remarkably calm about this whole story. Weve seen oil come up a little bit. Equity markets have sold off a little bit, but nothing dramatic. It pales in comparison in terms of the rise we have seen. Why should this become a big story . Why should this become anything more than just another geopolitical issue in the middle east that we are also used to . That we are all so used to . Win i think this is the elephant in the room. Iran has been on slow boil for years, if not decades. Its one of the biggest countries there from a geopolitical standpoint, bigger than a rock and any of the then iraq and any of the other areas of concern. This is really a big deal. Spikes, we we have have spikes down, but we saw last september when the Saudi Oil Facilities were attacked, we had a big spike up in oil that came back down. I think what is playing out now has potential to be somewhat long and drawn out, and again, and extended period of uncertainty is not good for markets. Guy the u. S. Doesnt really rely on the gulf for its crude. China relies on the gulf for its crude. Beijing is going to make it very clear that tehran should not block the strait of hormuz, that the iranians should not escalate this too far. Are we looking the wrong way when we see the risk here . Situations,sorts of irrationality sometimes becomes the key word. It is very hard to predict. I would say that in an extended lower oil prices, the europe, asia, china, india , it is really going to be attacks on these consumers. Brothersin thin, rum win thin, Brown Brothers harriman global head of currency strategy, stays with us. Get to secretary of state mike pompeo now. Sec. Pompeo if you have questions about the middle east and iraq, i will take questions, but first i want to offer my condolences to the people of australia for the tragic loss of life and property across the region. Americas thoughts and prayers are with the victims, their families, and the Emergency Personnel putting their selves in harms way, and the same go american firefighters standing with their brothers in australia. We have a truly an breakable alliance. We are great friends, and we are happy to help in this time of need. In asia, we noted the head ofent at the new the Government Liaison Office with hong kong. For the Chinese Communist party to honor its commitments made to hong kong in the british joint declaration filed at the united nations, ache, but guarantees the territorys rule of law and the freedoms that those living on the mainland unfortunately do not enjoy. We will continue to work with hong kong and the Chinese CommunistParty Officials to protect human rights and fundamental freedoms in hong kong and to promote hong kongs high degree of autonomy. There is anan, aspect of that conflict that deserves more attention, and that is the Islamic Republic of irans involvement there. Iran has refused to join the regional and International Consensus for peace, and is in fact today actively working to undermine the Peace Process by continuing its long global efforts to support militant groups there. Was people know about irans proxy networks in the arab world, but they also have relations with the taliban and other groups. Entanglement in irans dirty work will only harm the afghanistan Peace Process. A couple of are the a couple of other items, venezuela, i want to congratulate juan guaido on his reelection at the national assembly. The Nicolas Maduro campaign of intimidation and bribery could. Ot derail venezuelan democracy i applaud how venezuelas Political Parties came together to support guaidos reelection. The u. S. Will continue to support president guaido and the venezuelan people and will encourage all other freedom loving nations to do the same thing. We believe the western hemisphere should be a hemisphere with freedom. I also want to highlight the work of the ois, which has been an enter mental pool which has been an instrument to pool. Secretarygeneral is the leader we need for the ois. Say about the multilateral reform in the coming weeks. On the theme of basic freedoms, i want to commend members of everins counsel presented his understatement in which they expressed concern or the inhumane and painful uighurions to which muslims in china are subjected. Humanre committing mass Rights Violations on muslims held in detention in china. Denounce the brutal treatment which is part of the countrys broader war on faith. Moving to europe, i looked over Prime Minister here. I also want to recognize the undersecretary will travel to brussels later this week to have conversations with 28 european counterparts. This is a recurring meeting that happens about every six months. This particular gathering is important because it immediately precedes an eu foreign ministerial on iran that has just been scheduled, and shows close cooperation with our European Partners on issues of mutual concern. I am sure while david is there, the issue of iran and iraq will feature prominently in their conversations, and they will have an opportunity to discuss other areas of priority as well. Finally, one more personnel matter, i want to thank ambassador john bass, who have as director of the Central Intelligence agency and now a secondary of state. He is a respected strategic thinker, a man of incredible integrity. Hes helped that country before to a brighter, more peaceful, and more secure future for all the afghan people, and i want to welcome our 11 new ambassadors that were confirmed since the end of november, including ambassador sullivan, who will be heading off to russia before too long. We hope to have more follow them. With that, i am happy to take a few questions. Thank you. Happy new mr. Secretary. In honor of the new year, i have exactly 2020 questions, but i will pare them down for the sake of brevity. There continue to be questions about the nature of the intelligence that led to the strike that killed general soleimani. Can you be at all more specific about how immanent this was, what exactly it was . Secondly, why not allow the foreign minister to come to the u. N. To speak at the Security Council . Lastly, does the situation in iran contribute at all to your decision not to run for the senate in kansas . Sec. Pompeo thank you. The last one is easy. I said the same thing yesterday i have said for months. No real news there. I will stay serving a secretary of state so long as President Trump shall have me, so no. If you can accuse me of being inconsistent on that one. You know, we dont comment on visa matters, those traveling to the United States on visas, so i oft add much to this issue the foreign minister traveling to the United States. We will always comply with obligations under the yuan requirements, and with you in with un requirements. Theres been much made about the question of intelligence and eminence. I entered it multiple times on sunday. I am happy to walk through it again. Anytime a president make sit decision of this magnitude, there are multiple pieces of information that come before us. We presented that to him in all its broad detail, gave him all the best information that came not only from the intelligence committee, but those who had teams in the field. We evaluated the relevant risks and the opportunity we thought might present itself at some point, and we could see clearly that not only had soleimani done about,the things we know massacres in, enormous distraction of ,ountries like lebanon and iraq and we watched as he continued to the Terror Campaign in the region. We know what happened at the end of last year in december, ultimately leading to the death of an american, so if youre looking for eminence, look no further than the days that led up to the strike that was taken against soleimani. In addition to that, you have what we can see where continuing efforts on behalf of this terrorist to build out a network of Campaign Activities that were going to lead potentially to the death of many more americans. It was the right decision. We got it right. The president had an entirely legal, appropriate basis, as well as a decision that fit perfectly within our strategy and how to counter the threat of malign activity from iran more broadly. Questions,etary, two if you dont mind. Ministerreign affairs said that soleimani was on a diplomatic visit to iraq, that the u. S. Strike to taken out was state terrorism, that President Trump has prepared to permit war crimes, and that iranians are enraged. I would like your reaction to that. Hasnd, President Trump indicated that irans cultural sites could be targeted. Is that true . If so, do you consider that a war crime . Sec. Pompeo lets see. The statement that soleimani was traveling to baghdad on a Diplomatic Mission, is anybody here believe that . Is there any history that would indicate it was remotely possible that this kind gentleman, this diplomat of great order Qasem Soleimani, traveled to the baghdad for the idea of conducting a Peace Mission . I am mckinney reporters left this morning. Thats fantastic. You know thats not true. We know in that moment that was not true. He is a propagandist of the firstorder, and most of what you suggested in his text message or email or message that you laid out was indeed irani iranianaganda indeed propaganda. It is false. He was not there on a Diplomatic Mission trying to resolve a problem. There has been some story that he was there representing a s audi peace deal. I have spoken to my saudi counterparts at great length, but i can assure you they share my view that he was not there rep is in big some kind of agreement that was going to reduce risk of the lives to americans on that trip. Your last piece was about cultural sites. I said on sunday, i will reiterate again, every target that is being reviewed, every effort being made will always be conducted inside international law. I have worked on this project, and i am very confident of that. Thank you. And you election year, are now facing two Nuclear Related crises with iran and north korea. Are you optimistic about resolving either of those without them blowing up, so to speak, at inopportune moments . Irans breakout time when you got into office was considered to be a year. Would you consider that to be longer or shorter . Sec. Pompeo i will leave that to the Intelligence Community, but President Trump could not be more clear, iran will not get a Nuclear Weapon. When we came into office, iran was on a pathway provided by the nuclear deal which clearly gave them the opportunity to have those Nuclear Weapons. We wont let that happen. As for the first question, which was more broadly, what President Trump laid out in his National Security strategy with respect to north korea and iran is the plan we have executed. Have put iran in a place it has never been before, where they have had to make some very difficult choices about how to pay for and underwrite their proxy militias around the region , whether and how to build out their missile program. This is a flip from where we were eight years before. The Previous Administration made a different choice. They chose to underwrite and appease. We have chosen to confront and contain. Those are different strategies. We believe ours is successful and it will ultimately be successful in making iran behave like a normal nation. Weve denied them the capacity to build out their Nuclear Program and threaten not only americans and our lives, but also to create an enhanced stability throughout the middle east. In north korea, we still are hopeful that we will be able to head down a path. I was here with you in december when there was lots of talk about what might happen at the end of the year. We have not seen that yet. We still remain engaged and hopeful that we can have a conversation about how to get the denuclearization that chairman kim promised to President Trump and 2018. I will take one more. Thank you very much. Two quick things here on the soleimani strike. Since the Trump Administration withdrew the United States from the Iran Nuclear Deal about two years ago or so, the Trump Administration has said repeatedly that it is pursuing against iran maximum Pressure Campaign. First question, the soleimani operation, was that part of the maximum Pressure Campaign . A secondeo is there one . Just ask them both and i will tackle them both. To your knowledge, was any Legal Counsel in the acadian of branch consulted for in the executive branch consulted for their legal input on the strike and its execution . Sec. Pompeo i can say that i have never seen this administration engage in activity of this nature without a thorough and complete legal review of what the bases would be if the president were to make a decision. All of the options that were being percent to do the president in advance of them being presented, such that everything being presented to him has fully been vetted through the legal process. I am confident that is the case here, although i do not have specific knowledge of it. Second, you asked about the scope of the strategy and the maximum Pressure Campaign we have had in place. As a global medic component it has had a diplomatic component, an economic component, and a military component. Since mayave seen 2018 when we withdrew from the Iran Nuclear Deal, you have seen us eggs cute that is enormous see ness executed that with enormous you have seen us exit cute that with enormous vigor and energy. Go back and look from may of last year. Go look at the statement that was made in warsaw, the united statement centering on instability in the middle east on the islamic public of iran. The coalition now in the streets of her move, we have to pull medically the strait of hormuz, we have diplomatically isolated the iranian regime. We have watched the regime struggle to figure out how it was they were going to make it through 2020. Theyve got a budget that will fall short by a significant amount as a direct result of the pressure we have put on the regime. You saw over not just this past week, but over the last year, you have seen our security component to this. You have seen us reinforce allies in the region by ensuring that the emirates and saudis and all of the others were prepared for what might happen if iran decided to makes that were bad for the iranian people. You saw more technically these last few days the president s response when the iranians ate a bad decision to kill an american. We hope they wont make another bad decision like that one. The soleimani strike was part of the administrations maximum Pressure Campaign, and going forward, the iranians should understand as they develop their calculus that similar actions such as the soleimani strike could well continue to be a feature of this maximum Pressure Campaign . Sec. Pompeo i think the president has been unable u. S. In the remarks he made in florida has been unambiguous in the remarks he made in florida. That, inmination is the event the iranians make another bad choice, he will respond in the way he did last serious abouts the constraints we will place on that regime so that it does not continue to harm american lives. Our concern is protecting and securing the homeland and protecting american life. The efforts we have taken last week and the strategy we have employed has saved american lives. I am highly confident of that. I will take one more. Andrea, yes maam. How are you . Thank you very much. On the issue of cultural sites, the president said on air force one coming back after you had been on the sunday talk shows that they are allowed to kill our people. They are allowed to main our people. Use bombs onwed to our people and we are not allowed to hid their cultural sites . It doesnt work that way. Secretary esper has made it clear he would not follow in order to hit a cultural site. Would you also push back in your role . Sec. Pompeo youre not really wondering, andrea. You are not really wondering. I was unambiguous. It is completely inconsistent with what the president has said. No it isnt. Sec. Pompeo we will be consistent with the International Rule of law. Let me tell you whos done damage to the persian culture. Its not the United States of america. Its the ayatollah. If you want to look at who has denied religious freedom, if you want to know who has denied the persian culture that is rich and steeped with a history and intellect and they have denied the capacity for that to continue, if you look at the holidays, they have not permitted people to celebrate. They have not allowed the people that they have killed, that Qasem Soleimani killed, they have not allowed them to go mourn their , members. The real risk persian culture does not come from the united state of america. Theres no mistake about that. Thank you. Everybody have a good day. [indiscernible] vonnie secretary of state mike pompeo delivering remarks on many things, but also the crisis with iran. You just heard him call out the ayatollah and others in the iranian higher ranks for being their own risk to persian culture. He also said that iran will not get a Nuclear Weapon on our watch, and also mentioned that the u. S. Will act in conformity with international law. On the strike itself on soleimani, he said he was confident that there was full vetting i the executive branch legal team, although he didnt have specific knowledge of it in this particular case. Lets bring in bloomberg chief washington correspondent Kevin Cirilli from the state department, and also, we are still with win thin of Brown Brothers harriman. In fact, let me come to you first. We are not seeing any market reaction. Is there any scenario in which escalating conflict is good for a particular asset class . Guy i would say win i would say gold and safe haven assets, oil perhaps. But what is good for oil is not particularly good for the Global Economy. Time, ist the same there a risk that we could see major selloff at some point if this escalates further . What wasnt really addressed there is that iran has said is considering 13 options for retaliation. ,in and of course, to me retaliation i think is priced in. We know they are going to do something. The question is, what is the u. S. Going to do . Do they up the ante even more . I suspect that we will. Say goes back to what you about tit for tat and escalating tensions. As a base case, i dont know. It is hard to say. It looks like all signs are pointing towards increased hostilities, more risk of out of violence and attacks. Alertednow, the u. S. Shipping lanes for some sort of potential attack. Vonnie exactly. Oil now, butt shipping lanes. Win exactly. I think it will be hard for markets to be bullish on this backdrop. Guy walk me through the currency story here. Oilhere is a problem with going higher, does that bring the fed back in . A if we have a significant rise in Recession Risk, the fed would have to take that into calculus. Unless there is Material Change to the outlook, they are on hold. Qualify would clearly as a Material Change. That said, we had very different responses. You look back to 19 to be three, 1974 oilo the 1973 shock, policymakers kept policy loose in response to the oil shock. Moreolker in 1980 was must serious about fighting inflation. If i had to guess, the fed would probably follow the 1973 model. To me, yes, the fed would probably have to reconsider starting the easing cycle again. Guy what is the price on gasoline that this becomes a problem for the u. S. Consumer . The u. S. Consumer is the Global Economy right now. Win thats exactly right. We are looking at china, india, all of these big importing countries that are going to see a tax on consumption going forward. Andhis spike is maintained, that is a big if. As you point out, with geopolitical risk, we have these spikes, and then we come back down. But it seems like theres more potential for a really protracted simmer, a lube oil a low boil of uncertainty. I thing the risk to oil prices on the upside, at least on the nearterm, and that is not good for the Global Economy. Vonnie i want to also point out that the irani and parliament the u. S. As terrorists. I want to ask you about china because we have supposedly an historic signing next week. At the same time, china is probably the country in the world that is most at length on a and oil right now. Will this jeopardize on iranian oil right now. Will this jeopardize the signing of phase one . Win at this point, i dont think so. It is pretty much baked into the cake. From what i can see, it is difficulte most points. China will buy some agricultural goods. There will be some intellectualproperty protections. The u. S. Will ease off of tariffs. The big issue is the huge government subsidies to chinese businesses and other structural issues. That is being left for phase two, and those are all nonstarted. I dont think that is anything china will really agree to any time in the near future. The phase ii is supposed to start immediately, and i really see no Real Progress there this year. Vonnie and you dont think that because there is now a serious situation in the middle east which is really changing the math when it comes to potentially even where u. S. , iraq wants u. S. Troops out now, will there be more pressure from china or the United States in accordance with the other side . Win china will act in its own interest. It does have a huge presence in asia and a growing presence in africa, but it is really for its own interests. It will do what is necessary to make the chinese economy keep going. That tells me that even though we have a phase one trade deal baked in the cake, they are still concerned about growth. Global growth is at risk in 2020 despite the removal of brexit tail risk and the trade war tail risk. Again, think china will do what it needs to do to maintain a strong economy, a solid economy, and everything else, maybe not so much. The chips will fall where they may. Guy one final quick question. Markets can only focus on one thing at any particular time. Do you think they should be focusing on the macro data right now or the geopolitics . Win right now, geopolitics takes precedent. Markets are pretty much coming around to my view that Recession Risk in the u. S. Has fallen significantly. We still have trouble in japan, u. K. , euro zone. Thats why i remain bullish on the dollar. The u. S. Economy, despite ups emains the r shining beacon in the Global Economy. Again, the geopolitical risk does throw a monkey returned to the outlook, and that is why we have to watch closely. Right now, the Economic Outlook takes a backseat into we get some potential shock. Seeing you this afternoon. Win thin joining us from Brown Brothers harriman. Lets go to bloombergs chief washington correspondent Kevin Cirilli from the state apartment. My sense was that the administration in washington is simply waiting to see what the iranians do next. Well, first and foremost, on the issue of intelligence, secretary pompeo saying in clear terms that the intelligence, we got it right. We made the right decision, clearly pushing back on the notion that there would have been faulty intelligence or they would have criticized the Intelligence Community as it relates to that strike against soleimani. Beyond that, he also made another point, which was that in the coming weeks, one of the top officials here at the state department will be in europe meeting with european allies. I am told by sources at the state department and in the Foreign Policy community that the longterm strategy here is to hope to incorporate european allies as part of the maximum economic Pressure Campaign. Since the president decision withdraw from the jcpoa, you havent seen much in european Allies Joining with the u. S. To pressure and sanction tehran. Clearly, with this top official heading to europe, they are hopeful potentially that europe could join in some of those additional sanctions. Lastly, to your point, you heard from secretary pompeo that the president is not backing down despite criticism in the political sphere, and that should tehran and the ayatollah as it weresuch way in an expansionary Foreign Policy view, that the u. S. Would act similarly to how they did just a few days ago. Vonnie we know that the foreign minister now will not be able to travel to the Security Council on thursday to make a case or to do whatever he was going to do. Will this enhance his case with the international community, the fact that he is being denied a forum at an International Event . We will actually return to you on that question. It is an interesting question though, guy. We know there is a meeting happening right now in europe to discuss what can be done to deescalate the situation on the part of International Parties who may not be 100 in agreement on what is happening between the u. S. And around. Guy absolutely. I think the point you made about bringing the europeans in is going to be one we will watch track out over the next few days. I think those two stories youve just highlighted can certainly be interacting. Vonnie exactly. Moving into Something Different for just a moment, the Consumer Electronics show is kicking off in las vegas. One of the focus is on electric vehicles. Has so farcrossover been a success, while other Transportation Services havent fared so well, shutting down its chariot ride sharing service. Joining us is fords chief Technology Officer ken washington. Congratulations. It does seem like ford has been trying a lot of things. In this field, failure is not some thing to bore a too often, but how many times can you afford to fail . Ny times can you try yougs, or you do or do need things to be successful at this point . Ken weve got a pretty clear strategy. We are committed to putting smart vehicles in a smart world that is increasingly connected. That is what we are showing here at ces this year. We are bringing our smartest vehicle ever and showing it off at our stand here in las vegas. E hasrd mustang mach great features in terms of connecting to the smart world, and it has selfdriving advanced technologies in it. We are also showing off how the world can be thought about in a table. H a simulation these two working together is all part of our plan to bring smart vehicles into a smart world, and we are pretty excited about it. Theres a lot more to come. Vonnie how do you stimulate demand for evs right now . They account for less than 2 of the market, and will still be less than 5 in 2025. How do you at ford plan to do that . Bringingill do that by great vehicles that people are going to love that they can afford, and that they can integrate into their digital life. That is why it was really important to us when we designed the mustang mach e that we brought features into the vehicle that everyone would want to use. It will have smartphone like features that are an example of how we are bringing technology into the electric Vehicle Market that will stimulate people to want to buy these vehicles. Once you drive and ride in a vehicle like a mustang mach e, we are confident people are going to love it. That is why it is important to us to bring the vehicle here to ces so people can see the vehicle and see the kind of technology we are putting into it. We think an Inflection Point is coming with electric vehicles, and the mustang mach e is the beginning of that. Guy good morning. Do you think you are doing a good job monetizing the data that is coming on ford cars right now . Do you think you own that data, and do you think you could make more off it . Ken it is absolutely important we understand that the data is owned by our customers. We have the privilege of using that data to turn it into value. That is why it is very important to us that we build our electrical architecture and design the system and the vehicle so that we can treat that data with the care it deserves and herded into value. The nexgen sink platform is the important part of our strategy to do what you said, which is to take that data and herded into value, not just value for ford, but value for our customers, giving them new experiences like better voice recognition. Weve got Artificial Intelligence capabilities so that as you use the vehicle, it can improve and do more things for you because we are using that data to teach the ai algorithms how to serve you, the customer, better. It has customized profiles so that it knows you when you get into the vehicle, and it will adapt to your needs and wants, and, for example, your music playlists. These are the kind of experiences people value, and they are more than happy to allow us to use that data for them. It will continue to be a great Value Proposition for both the company and for our customers, and that is a winwin. Guy the biggest question for you guys has got to be when do we get an f150 ev. When does that happen . That is going to be a vehicle that is going to produce a lot of torque it is going to pull a tesla vehicle in the opposite direction. When is that going to happen . That is the big question on everybodys mind right now. Ken weve already announced that that is in our strategy and our business plan. We are going to be bringing that to the market in the next few years. Guy can you be more specific than that . Can you be more specific than that . Next year, the year after that . , i believe, 22 anyone. I believe, 2021. I am not sure of the exact date, but it is coming in the next few years. Guy thank you for spending time with us today. Ken washington, ford cto. Lets get the first word news with viviana hurtado. Viviana we are sticking with the top story, the tensions between the u. S. And iran coming off of that breaking secretary of state press conference, and that is a warning coming from iran after the killing of the general. That warning coming from the head of National Security, saying that the country is assessing 13 scenarios, but not revealing any details. The u. S. Issuing a warning to shipping in the middle east and says iran could take action against american interests in the region. At least 50 people were killed in a stampede at a funeral procession for the iranian general. More than 200 people were hurt. Byicials say it was caused overcrowding. Hundreds of thousands of mourners have turned out in several cities. Now to southeastern australia, where firefighters are taking advantage of cooler weather to try and contain bushfires. So far, at least 24 have died. In new south wales, about 1500 homes have been destroyed. The fires are expected to burn for months. Home prices in 10 u. S. States are still lower than they were before the great recession, according to Real Estate Analytics company corelogic. Since its july 2006 peak price, connecticut leading all states in its equity decrease. Maryland and of ada are also down and nevada are still also down more than 10 . Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Im viviana hurtado. This is bloomberg. Guy thanks very much indeed. One carmaker is not having a good time. Aston martin shares slumping after its latest profit warning, the fourth since it went public in 2018. Bad day in the office for mr. Bond . Maybe. The numbers, the details ahead. This is bloomberg. Vonnie live from new york, im vonnie quinn. Guy from london, im guy johnson. This is bloomberg markets. Vonnie aston martin our stock of the hour. Shares selloff today as more highend carmaker struggle. We are joined by Abigail Doolittle. Abigail shares are really plunging. They put out a profit warning where adjusted earnings for the full year of 2019, their first full year as a publicly traded company, plunging from the year before by about 45 . They are expecting a range of routine of between 130 and 140 pounds, clearly going in the wrong direction. A number of factors here, including the overall downturn for cars, plus uncertainty around brexit, and you also have certain models that are doing less well. One bernstein analyst, it seems all analysts, actually come are pretty shocked by how bad these were. One analyst at bernstein saying it is shocking how much this story has unraveled since the ferrari,pposition to which has done quite well since its 2015 or early 2016 ipo. For ari really taking off , aston martin off really in a slump. We can take a look at their bonds, and we see a bit of a plunge on the day. Overall, you can see what a mess this is. They put out a disastrous earnings release. We have a bit of a recovery on some expectation that maybe this company will get an investor or cash injection, but you can see on the day, down. The interesting thing is they are actually going to be drawing on additional debt. It could be unsecured at a greater than 10 rate, so this story really in rough shape. Guy the big question has got to suv, whiches the us makes a ton of money does the suv, which makes a ton of money for car companies, is that what turns this company around . Abigail that is probably one thatof the solution, 109,000 dbx. But what they really need to do is the price point. They have a cash flow problem, a Free Cash Flow problem. They need to offset slumping sales for the other models with this dbx, but the price has to be right. We dont know what the answer is yet, and probably another piece of this solution that many analysts are highlighting, they probably do need to raise additional capital. There was speculation that the canadian billionaire lawrence role could buy out the company or make significant investment. Some analysts are also saying they need to partner their manufacturing with another car company or manufacturer. Lots of different possible solutions for this company, a tough one right now. It is interesting to see if they can turn it around, but if any of those positive development happen, you can probably see this stock pop. Vonnie Abigail Doolittle with our stock of the hour, thank you. Futures in focus next with more on secretary of state mike pompeos News Conference and the price of oil. At 62. 69, brent at 62 . 30, down today. This is bloomberg. Guy lets talk about whats happening with carlos ghosn. Japanese prosecutors are seeking to arrest his wife carol, saying that a warrant was obtained for giving false testimony in court last april. It relates to her husbands transactions. For the latest, we are joined by bloombergs chester dawson. Are they going after carol because she has a u. S. Passport, and is therefore a little more exposed here . Does this predate his escape . Chester as far as the japanese , they have clearly , and she ise on her clearly a pressure point. Clearly they see that is an open case, and maybe something that is a bit easier pursued because of her u. S. Citizenship. There is an expedition treaty between the u. S. And japan, obviously. Are japanese authorities suggest that she broke the law . If so, what law . Chester it is still very unclear. There are allegedly summer marks she made prosecutors under questioning in april of last , and therefore they are going to pursue some type of charges against her, perhaps perjury or something else. All we know is they have issued an arrest issued a warrant for her arrest, and are pursuing options for a case against her husband. Guy the story gets more and more amazing every time i read the latest iteration of it. Thank you very much indeed. Chester dawson joining us on the latest surrounding carlos ghosn and his family. We will have live coverage wednesday, 8 00 a. M. Eastern, of the former nissan ceos press conference taking place in beirut. Lets turn our attention now to what is happening with the oil market in more detail. Lets go to chicago. Bilbo rukh joins us from the cme uchbill but rukh bill bar joins us from the cme. What kind of response from the iranians could get us through 70 . Bill some sort of heightened attack would push this thing 70. Ugh theres two ways to look at this. This could escalate real quick and get bad, but what is not in the news right now is talking about some sort of standoff. What they move to is a new nuclear deal on trumps terms. I think they would be willing to look at some angle there. It would be an arduous process of reaching a deal, but there is a good possibility we see it move in that direction as well. Guy that is real glass halffull stuff. Is that a tail risk, or do you have that as the center of a distribution story . Bill all we are hearing is headlines of how bad things can get. If iran attacks us or does something here, we are ready you heard pompeo today. They are assessing targets, ready to move. The situation would escalate quickly. But i dont think anybody really once to see it go there right now. Behind the scenes, you are seeing more talk then we are really hearing on the headlines. Guy out of curiosity, you get to 70. How does the market set up . Bill i still think we see this market cap for a bit. Look at some of the manufacturing data going back to friday, the fifth contraction, worse than expected, in a row. Factory orders were a little betterthanexpected. The demand for oil is going to be the question. What does opec do in march . That is the overhang for the market here over the next 60 to 90 days. Guy always a pleasure. Thanks for your insight. Bill baruch of Blue Line Futures out of the cme. Vonnie it looks like we have fairly sanguine equities indices. The s p 500 down, although there are large movers underneath the surface. Apache up 21 for the best performance right now on some success in its surround wells its serene him suriname wells. Secretary of state mike pompeo had a News Conference a little a visa to thenied u. N. For the iran foreign minister. The u. S. Tenyear essentially unchanged. New york crude at 62 50 six cents a barrel. Guy crude softening here as well. It will be interesting to see whether gold gets through 1600. European equities a little higher right now. We are seeing a little but of strength in the dollar as well, which is interesting. You eurodollar trading sub 1. 12 right now. We see tensions getting ratcheted a little lower, and the dollar regaining a little bit of traction. European close is coming up next. I will take you through that. This is bloomberg. Guy iran postpones the funeral of general soleimani after 50 are killed and more injured in a stampede. Andnonmanufacturing data november factory orders beat forecasts. The dollar extends gains, but isnt this just transformation of a u. S. Economy . Tesla issues a forecast to customers in shanghai. How big could china be for elon musk . We are counting you down to the european close on bloomberg markets. Vonnie we are gaining some momentum here in the United States. The nasdaq is turning positive thanks to a philadelphia stock really reversing those declines that we saw earlier on in the week