Secretary wilber ross are scheduled to meet in washington. Topic is trade. Cyberattacks. The countries, 200,000 the weekend. Other about who he was hit . We had people from Healthcare Telecom and Car Manufacturers manufacturers. In terms of france we had car to shut downad production at a number of plants this. To mitigate theres a disruption in germany on the trains and Telecom Companies reported some disruption in their services. Whenever a hospital gets thats a serious business. How sophisticated was this . Take patch out in march and put it on your microsoft, it fine. Be i think it wasnt too hard these people to mitigate once they were affected. Pretty easy to have taken some precautions that meant you were not going to be affected by this. Saw a number of companies that had not taken those precautions. Surprising. In term of sophistication of most people think it was not too sophisticated. We know thatlf, as the u. S. Oped by National Security agency. Anybody could use that tool to attacks. N one of these blame gamesing the here . Is it the n. S. A. Is it microsoft for not servicing the older platforms . Is it the companies for not keeping their systems update. The blame has to lie with companies themselves who did not update their system, or did not pay microsoft for continued older windowse xp. They seem most to blame. You did have over the weekend microsoft write a post which he blame on the n. S. A. For stockpiling these hacker tools have a large you store of these. Theyre going to get out and use them in nefarious purpose. Microsoft itself, some people them. Inting fingers at they should have updated everybody for free even if they older operating system. They did put a patch out on this ago. Onths they seem to have taken proactive steps. Its mostly the companies didnt implement the patch. Thank you very much. Joining us on. Loomberg news Manufacturing Service company. Joining them together. That mean for earnings for Thermo Fisher. Will adjusted by 30ers. Int total number coming 7. 2 billion. Cyberattacks as. Arc chandler i want to start with you on the brief investor look. Care about things like these when you read them on the weekend . View . T affect your probably not. Its important to follow these things. Theink as far as what drive capital markets, i tend not to deals. F major following the oil story, following the disappointment with the retail sales and the cpi end of last week. These stories are more disruptive. Takes more noise as the underlying trend. More noise and signal. Of what this business would mean. On the one hand, you have the fairly quickly. It doesnt create incentive for pournies who wasnt to millions of dollars into cybersecurity. I think that the you mentioned the kill switch. Thats an interesting thing. That was something that was put the malware with the intention of malware avoid the analyzed. When it was the version without the kill switch came out right away. The malware not particularly actions hadd inits effect. Mendous is it the everse . Sophisticatednot and smart. Does this mean almost anybody in their garage can do something that can really disrupt things around the world . Disturbingits very that something had such an impact. Imagine if really hackers who did not have the same mistakes these made, were tos build something the effect that have. We maybe seeing a minor wave be coming in seriously later. Do we understand the hackers . N behind these is a mass criminal organization . Group of kids in a garage executing this kind of thing . Guess somewhere in between those two extremes. Clearly they were trying to make money. Were asking for 300 for every computer that was affected. I read estimates theyve made far. 26,000 so its pretty astounding when i think about how many billions of dollars worth of damage it caused by someone in order for them to make 26,000. Professor, what industries and sectors are most vulnerable . The Healthcare Industry. I think there are several reasons for that. That theem is Healthcare Industry is a bit slower in adopting security technology. Their budget tend to be in the low Single Digits for cybersecurity. Look the financial to spend they tend fie10to 20 . One where industry is you have people coming in and want to be treated and you have criminal impact. If youre going to attack someone and you want to have a attacking the healthcare sector is one way to do that. Hasnthealthcare sector invested much in cybersecurity. This be a benefit . Theyre using things like paper and pen . Unfortunately. Theyre moving away from not movedunately, they have away from paper and pen. They are using things like windows xp which is more than a decades old. Many of these systems are not actually being attacked by the system. Targeting your this particular attack did target those operating systems. They havent been supported much by microsoft. Even though they maybe patching newer Window Systems, older Window Systems dont have to apply. R them microsoft issued an emergency old xp systems that does prevent this attack. As long as the healthcare sector use very old to systems, theyre going to find themselves in trouble when targets them. You followed the currency market. Bitcoin had a tremendous run throughout the 2017. What does this mean for the future of bitcoin when it gets associated with criminal activities . Just becausesue, somebody has a value, doesnt mean its money. Working with some other people about the real test for me would be a country willing to accept bitcoin as tax payments. We come up with definitions for money. The hardest one can you pay your taxes . Which is part of the origins of money. Can you pay your taxes with bitcoins. Far you cant. I think to talk about, its too too volatile. The problem too, we talk about float. And free people aret lot of hoarding them and not trading them. Sense. S that denies the Critical Mass ofded to make a means exchange. The more you hoard it, the less networkingill have effect. Coming up on this program, income, will be joining us for full hour in 50 minutes for from new york city, youre watching bloomberg. China is fading with retail asset. N fixed rising only 6. 5 in april from a 7. 6 inlier compared to march. Joining us from hong kong is chief agent. Whats the message that comes last 24 data in the hours . Biggestorld second economy has slowed down. Missed estimates but downs. Rable slow it goes to story, perhaps 1st quarter growth has been the peek year. With china slowing down, thats not a great thing for the world economy. Strings over in china, really get a hold some of the leverage. Pushing up bonds yields in a significant way. Market fallouthe together with the data and message for investors outside of needs to take note of this. The underlying message is theres still something of disconnect what were seeing. Betweend quite a jolt bond and stock market. Time, the same robust. Still remains the real estate sector is holding up. Factory prices remains positive. Story something of a slow down rather than a slump. The disconnect between market and economy remains in tact for now. What do these april numbers tell us about the rest of the year . Particularly in light of that coming up in october . Thehis is where we get to crux. You can sit back and say the down andoint to a slow activity. The credit data wouldnt tell you that. We know its a core priority for them. It came from president xi himself. Pivotal change in china. Like any economy in the world, government will deliberately slow economy down too much. Even if activity slows down and reign in some of the risks and defaults, the economy will meet target. Growth the question lot of people have, do they have control over if. Housing praises tell prices tell us . Quiteyre holding up well. They cop to defy expectation of crash. Expected they might have a wider Ripple Effect on the rest of the economy. That didnt quite play out. To get a grip quite well. Right here and right now, china is in charge to some extent. Out. Till has to play with the fed and dollar. That would put pressure on flows. That could be a significant game changer for china. To give us his thought, well back in Marc Chandler. Were very preoccupied with much worldwideow by china . Ven weve seen the market become coupled from china. Chinese had the worst performing world. Arkets in the i think the real story is how much the market is watching china but not doing anything it. T capital outflows have slowed. Traction in the chinese and foreign Asset Managers now. We have to wait until june that big hurdle were watching. Real question becomes, does the global synchronized growth story anyway . Its tied through the commodity channel. Oil. O much through china biggest import of Oil Surpasses the u. S. Which affects the australia dollar, new zealand, canada south africa. We see it through that channel. Now. Seem immune to the major parts of the world economy. We saw installation and the bifurcated data. The weekend, president xi pledged 78 billion in financing. In order to get that done, china markets and capital accounts. The effect of that is the weaker data weve seen. That struggle that china is going to have to deal with. Goes to the hard watch they trying to achieve. They trying to pull off everything at the same time. Bottom line, no matter what headline we see having to with, they will not step away and allow the economy to slow too fast. Not going to step away and allow market volatiles weve away. They set out core target and priority like the one you year they will go long way achieving those. Changes on the front. L those are the kind of big external factors we should watch. Fascinatings me when we talk about china. The big difference how we talk u. S. I would put out a scenario of the u. S. Economy. Pointslk about the data states. He united when i bring up china, the beponse i get is they will okay, they can control the situation. Control the situation . Isthe idea is that china more of command economy. Think theres a healthy skepticism. Theres a skepticism towards how much you can have a economy. When they talk about leaving globalization and free market, much do you place on that rhetoric . The rhetoric is important. Offers a stark contrast treasury secretary mnuchin to distance himself from protectionism. High level of rhetoric propaganda. When u. S. And u. K. Takes a step back, other countries takes a step forward. Curran, thanknda you for joining us from hong kong. Chandler will be staying with us. Well hear from the man sheparding the tax through congress. Live from new york and from washington, this is bloomberg. This is bloomberg daybreak fisher agreed to buy pantheon. Is 7. 2 billion. Diagnostic and testing. Quipment an. Morgan agreed to buy Office Building in dublin. Finished. Ng isnt yet according to a person familiar willthe matter, the bank pay about millions of dollars for it. The bank is expected to relocate several thousand warks from the u. K. Thats your Bloomberg Business. There. If if negotiations go badly, they thousandseveral people. It could be in dublin. We dont know. You do when you try to put your kids in school for that . In italy this week, g7 finance chiefs wrapping up their three day meeting. Laying the ground work for the summit in two weeks time. Relationship with u. S. Counterparts steven mnuchin. Saying the u. S. Would do whats best for itself. Want to be protectionist, reserve our rights to be protectionist. Not free and fair. Great to have you with us. Talk to us about the environment talks. These g7 how well down this message from the United States goes to the italy. F likes of the u. K. How well received it is . Question ishe whats the message. If you talk to the other six ministers in the g7, they would tell you, were hitting roadblocks here because pushing for free trade and declaration against protectionism. Mnuchin. Lk to steve you, we dont believe theres free and fair trade. Too. Ve to see that the problem is, the Trump Administration really stuck on trade imbalances that they say. Stuck on the trade deficits that some of the other country and the surpluses. Marc chandler is that a good thing . I dont know. Comes tohe problem what do they immediate by fair trade and free trade. Supported the u. S. And fostered the wto, the world organization. The u. S. Does win cases. We win about 85 of cases we wto. To the whats interesting, mnuchin and u. S. Asying to cast revisionist power. Wto, theo, free trade, imf, world bank. The Trump Administration and mnuchin trying to cast u. S. As revisionist. We dont agree with this part this world. Our is whats throwing off allies what did they achieve . They did talk a lot about fundingurity and counterterrorism efforts. Thats where they spent most of the communique and what well hear about. Marc chandler you are speaking with us. Rick rieder weighing in on global growth. Happening in china and auto debt. This is bloomberg. So we need tablets installed. With the menu app ready to roll. In 12 weeks. Yeah. The world of fast food is being changed by faster networks. Data, applications, customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Fast connections everywhere. Thats how you outmaneuver. So new touch screens. And biometrics. In 574 branches. All done by. Yesterday. Banks arent just undergoing a face lift. Theyre undergoing a transformation. A data fueled, security driven shift in applications and customer experience. Which is why comcast business delivers Consistent Network Performance and speed across all your locations. Hello, mr. Deets. Every Branch Running like headquarters. Thats how you outmaneuver. From new york city, youre daybreak. Loomberg as we kick off a Fresh Trading week. Up about. 2 on the dow. Three week of gains followed by a bit of softer week last week. Week of losses on monday morning equities. In global the data point of last week seem be that weaker than expected core cpi. Up for apeople different trajectory for the rest of 2017. Yield lower over the last couple of days. Its meant a weaker dollar for days now the with the exception of dollar yen. Euro dollar high, cable rate higher. Again. Oach 110 all over companiesents and around the world have started to against upper hand unprecedented cyberattack. 200,000 computers were affected. Are back to normal after being paralyzed friday. Factories resumed operations. North korea warns new rocket Large Nuclear warhead. To test launchts yesterday. It could hit u. S. Forces on the of guam. The u. S. Ambassador nikki haley state ofhes in a. Aranoia saudi arabia and russia wants to extend Oil Production. Want to reduce global to average. Expressed our satisfaction with that has been largely achieved. Want to be ine we terms of reaching the five year average. Nationsand the other meet next week. Onehank you aig named one of managers in the business to become the new ceo this is seventh ceo that weve seen in aig since 2005. Bring some he can stability here after that higher costs andted claim quarters. S in seven joining us from london for javier the oil story is blas. To have the saudis and russia halfg out week and a before the official opec meeting is pretty staggering to me. To cuth they would have and how long to dent those inventories . At thehey continue current production level through the rest of the year and first of 2018, they are confident theyll be able to bring inventories down to five year arch. Same thing they said last year. Mber of six months well be able to do this. Now theyre saying we need do it. Nine to its all because of share production. Depends on what Oil Producers are able to do. Is quite skeptical on opec. Seeink the market like to more evidence. Six months,last u. S. Shares wiped half of opecs cuts. Much market share does opec and russia stand to lose to nine months . Next well see shell oil the next six to nine months. Be ther, this time could biggest enemy for opec weve seen. Libya production is also increasing so is nigeria. Libya, nigeriar and u. S. Shared production, you millionmore than barrels a day. Market share that russia and losing. Abia will be are there other market share issues . Fight between these two, the chinese share i find this interesting that it was announced in beijing. Was the significance of this . Its an indication that russia and saudi arabia are going to play along and theyre not going to tray to kill each other on the chinese market. Its aboutbe logistics. Need to meet ahead of of peck and these were the easy them were atoth of the same time. Theres a bit of message. It. Uld not over read me understand one thing. Whats in it for russia . Let opec get on with it . Saudi arabia need High Oil Prices to get the budget down. [indiscernible] thanks so much. Happening. T its down with us Marc Chandler us on set. Oil, 40,take a look at 60, whats your call on energy stock . Think we have seen a massive recovery in energy ofcks overall coming out that massive price cut. I do think that the ones that are still hear and ready to go a lot of upside any addition to the price. Praises. What we always want to think about what is the implication on broader economy on those Higher Energy prices. Biting into consumer wall. Well have to see how this plays out. Little skeptical that were going to see anything higher 55. Ficantly that would be a big move. Definitely for sure. And youree a deal seeing wti still below 50 marc, how does that feed into the inflation story . You have oil thats not going to 50 . Ble to sustain above we usually think of the u. S. Sensitiveate market to the oil through inflation. Were seeing that become coupled. The yield is fairly low. That 55 a barrel for oil. We still have its going to drive treasuries. Theyll see that again with the pce. Driving up u. S. Inflation has been a shelter. Those prices beginning to come off. Were likely to see lower core inflation, maybe lowest for the we get the pce. That will offset this raise of prices. How does that work from the feds point of view. Oil goes up, the other prices are not coming up. The fed