At 8 30 a. M. , it is u. S. Economic data as we will get housing permits for the month of april. Manufacturing employment and the number of hours worked last month. At 10 00, jp morgan holds its annual Shareholders Meeting in wilmington, delaware. At 11 30, the u. S. Treasuries will sell for 5 billion in fourweek bills. Back to our top story about what President Trump did or did not say to the Russian Foreign minister last week and whether put National Security at risk. Reportedington post information that trump disclose information with the Russian Foreign minister last week and subsequently the times follow that story. Our National Security adviser h. R. Mcmaster said that he did not disclose sources or methods. The story that came out tonight as reported is false. The president and the foreign minister even reviewed a range of common threats, including threats to civil aviation. At no time, at no time, where intelligence sources or methods discussed. And the president did not disclose any military operations that were not already publicly known. David joining us now is our chief washington correspondent, kevin cirilli, and marty shanker, both in washington. What do we know about what actually happened in the oval office with minister la vrov . House ise white vehemently denying a pushing back against the reporting, but the senior aides ive spoken with in the Republican Party on capitol hill are raising significant questions not only about the report but also about what has been a bevy of accusations and criticism against this white house and their ties with russia. I want to pull for you now what senator bob corker, a republican from tennessee, told reporters in the capital last night. Said, the white house has got to do something soon to bring itself under control and in order. It has got to happen. Aviously there are in downward spiral right now and they have got to figure out a way to come to grips with all thats happening. Clearly this criticism is melting. David that is senator corker, a republican. He is on President Trumps side. I want to get back to what general mcmaster denied and what the Washington Post reported. He talked about sources and methods. Thats a particular phrase used in washington, very sensitive about revealing sources and methods intelligence gathering. Thats not exactly what the Washington Post reported. Kevin absolutely. Continues to escalate, how this administration will disprove this reporting remains to be seen. Business suggestion that President Trump wrote the law. Scholar says the president has the authority to disclose classified information so chooses, but the question of the matter is whether this president s governing appropriately. David there was reporting that senior aides reached out to national intelligence, such as the cia, after this happened to warn them about what happened to try to mend fences. Is the white house denying that . Marty theres no specific denial about that. The mcmaster denial was really a nondenial denial. He was denying something the Washington Post did not actually report. What was significant where the direct quotes coming from the president of the United States, which suggests to me someone or some people in the white house are leaking misinformation to embarrass the president. Alix speaking of, and you called it, we would get some tweets from President Trump. The latest one coming out today and he says, as president , i want to share with russia added open white house meeting which i have the right to do. Nonetheless, the defense at 7 00 a. M. Starts from the white house. David im sure we are going to get more. He will not let this thing that. Die. As i understand the facts, what the Washington Post is reporting is about specific threat from the Islamic State and identify the city in terms of in referring the sources and methods. Marty as the post reports, many National Security experts current and former suggest that difficult fort russia, for instance, to figure out where that intelligence gathering came from given the identity of the city. That jeopardizes that intelligence source and some people contend it puts peoples lives and dangers. In danger. David where did the story come from . You have been injured was a for a long time. Where did the story come from . Marty my thought is that it has to be someone in that room. Someone in the white house and intelligence gathering apparatus who is concerned about what they deem is reckless behavior of the president always very sensitive matters. David kevin, you are about to sit down with the majority leader, Mitch Mcconnell. Do we have a sense of what the republicans up on the hill if they have a plan to do with this . Kevin we do not have any sense of clarity on whether or not the u. S. Senate intelligence committee, the timeline for when they will reveal their investigation. There is reportedly turning now to President Trumps Financial Disclosures. More expected to arrive financial provide more Financial Disclosures to the u. S. Senate committee. The spokesperson for House Speaker paul ryan released a Statement Last night, saying that speaker hopes the president will somehow disprove this story and clarify the reported. Ing. David alix thank thank you for joining us. Ambassador burns spoke with us by telephone and saying that if the disclosure, if true, shows a lack of discipline on his part. Its a disturbing story of true. Its important to say if through because we dont know that. The president is undisciplined and he has not shown ability to adapt to this job and effective way. David joining us now is eli lake, giving his own take with the latest white house instance. Undisciplined does that make sense to you . Eli i think its a matter of undisciplined. Sometimes we say its unconventional. In this particular case, if the sources for the washington are correct, and the one part where people could disagree is exactly what the applications are, then its a dangerous level of incompetence. Ist i dont think this does i dont think it anyway verifies the leading resistance narrative of an example of collusion or that trump shared this information because he is disloyal to the country. Trumpk there is sort of a audibled that may have gone very wrong. Alix whats it going to take at this point for republicans to push back in a more meaningful way that is more than rhetoric . Eli well, unfortunately its a catch22. If the information is as sensitive as it is, then it would be irresponsible for people like myself are other news outlets to report more details of it. , its hardculpatory to get a sense of it at this point. I would imagine you are going to see everybody is trying to figure out more details about exactly what was shared. This is now going to be the story of the moment. I would just say that the argument from the post and they wrote carefully was not that they shared sources and methods and the nondenial denial that you saw from senior officials last night. Locationecifically the of where these plots were being plotted that the russians could that reverse engineer and find an important ally and intelligence source. I would point that that very well may be true. But the russians and the u. S. Are essentially fighting the same enemy, which is isis. President should share carefully without revealing sources and methods of threat information to russian airliners. That is something that george w. Bush and barack obama would absolutely do. Even at the height of the cold war, Something Like that would of been done. Those are the kind of caveats. Im not saying that the president did this. At the same time, there has been a counterterrorism relationship with the russians. David take a step back from all this. Does this totally derail the presidency so he cannot get back to be a debit he got elected on . At what point, if ever, do the republicans go to him and say we need a new house in order and we need to get disciplined . Eli may be staff shakeup could provide that kind of reset. I would say it was derailed before. Firing the fbi director in the middle of a counterintelligence investigation into your campaign derails your agenda. [laughter] we are not talking about building a wall. We are not talking about reforming obamacare. We are talking about this investigation. He has already kind of set this up. What we are finding out more and more is not staff, but its trump, the president. David [laughter] that says it all, i guess. Eli lake from bloomberg view. Are bringing, we you special coverage of the tax reform package going before the house thursday this week. Later on this program, Senate Majority leader which may Mitch Mcconnell will be here. This is bloomberg. Alix breaking news this morning for you President Trump offending himself through his twitter account. He says, as president , i want to share with russia at an openly scheduled white house meeting, which i have the right to do, facts pertaining to terrorism and air flight safety. Humanitarian reasons, plus i want russia to greatly step up their fight against isis and terrorism. The latest defensive President Trump after the Washington Post report that he revealed information to the russians last week. In the markets, it has been all about the markets. Equities and bonds remain calm. Is the Unicredit Research global head of fx strategy on set. Joining us from london. The move in the dollar, what explains it . In the very short term, it has definitely been political develops. Ments. The markets patients with the u. S. Administration has been little. The dollar has been overvalued and it was due for a correction lower. For five months ago, the momentum was very strong in sentiment was overwhelmingly bullish, but this has definitely turned. Reacting,he dollar is why are we not seeing it in yields and golds and equities. . Michael we are seeing a lot of those flows read elected redirected elsewhere. Is very much emergingmarket centric and the weaker dollar is a positive boon for economies there. The eurozone in terms of the incoming Economic Data is the one region where the surprise indices are still consistently in positive territory. One of the things that i think is a complete disconnect as you have alluded to in your lengthy preamble of the goingson in washington is the very low level of implied volatility along the u. S. Treasury on the move index. If you look at the various surveys of perceived levels of uncertainty, they have historically had a very strong correlation. At the moment, these things are way out of whack. David it was not too lengthy and it did not come out of washington, but from moscow. The kremlin calls the trump secrets report nonsense. Im not sure if thats good or bad for trump. Going back to the dollar coming think its overpriced. You are looking at an upward trend in rate hikes. Boj,e for the ecb or the unlike for the ecb or the boj, divergence as a practical matter. Vasilelios definitely. An assumption that we are making when we are making an assessment at each one of time is that the market at any point in time is at equilibrium. Has diverged from that value. The dollar is running between 10 to 15 higher on what traditionally longterm relationships would trade and would tell you. The bottom line is that there has been a friendly with the dollar for various reasons, including the implementation of quantitative easing by the ecb two years ago and all that. I think the market right now is making a much stronger assessment right now. Alix heres what i dont understand at a base level. What does the last one for hours mean for markets when it comes to russia and President Trump . Vasileios if you look at the price action and pretty much the things we have discussed, it is mostly a dollar store it, but its not really a risk story. The market has taken a view as far as trump and the u. S. And ministration are concerned, theyre very much unlikely to deliver all the strength and robustness. Its not going to be bad for global trade. David michael, do you agree with that . Is this the final death knell of the trump trade when it comes to Dollar Strength . Michael i think so. You have to think about how the narrative is being written. After the president ial election, we were told that a Trump Victory would be calamitous for markets. All of a sudden donald trump was going to be the next best thing since sliced bread for risk. Now if you look at the gdp forecast and the various latest data from the fed, they are certainly not expecting anything great on growth. One also has to remember in the absence of any supplyside reform, the fed at any expense thinks the u. S. Economy has no slack. If we did see higher growth at this juncture, that would just speak to inflation and higher rates. David i do want to come back to alix steels question. Why is it that the s p stays at or near record levels . If that is all right, shouldnt stocks becoming down as well, michael . Michael what worries me is that if you pull this back into a multiyear basis, i still see dynamics of a secular stagnation in the Global Economy. We are redefined sequentially of what good looks like in the same way perhaps in the political sphere that the u. S. Is redefining what normal looks like. 2 growth is now a cause for celebration, but on a historic basis, these are not good numbers. I think its particularly worrying to note that after a valueyear d rating of stocks against growth, the rally that we saw in the Fourth Quarter of last year has completely fizzled out. Even in economies that seem to have a degree of selfsustaining growth such as the eurozone, they are seeing value stocks coming right back. What this means that the stocks level is that you are having a lot of money being funneled into a few growth names. You have to look at the structure of these u. S. Indices to a dive five identified the stock level where these are being bid up. This is not healthy price action. Eventually it will end in tears, but the problem is we know calling up has been it will make a trade for years now. Vasileios my personal take is that it never really bought into the trump reflation trade. Personally i think the reflation trade started much earlier than the trump election. If we want to talk about the levels of the u. S. Equity market, we need to put them into the global perspective. The equity market has been driven by the Global Growth upswing, which has surprised on the upside in the past two quarters or so. In order to assess the u. S. Specific factor, you can see over the past 56 months or so that the s p has significantly underperformed bureau stocks. Alix were talking more euro stocks as they are sticking with us. All this week on bloomberg television, were focusing on tax reform under the Trump Administration. At the bottom of the hour, we will talk to the snapon ceo, discussing the presence impact on infrastructure, manufacturing, and jobs all in light of what has happened in d. C. Over the last 12 hours. This is bloomberg. Alix elsewhere in the currency market, its all about sterling reversing an earlier jump, falling from a oneweek high, showing the fastest inflation since 2013 coming in at 2. 7 year on year. Eios fromh us is vasil unicredit. I thought it was going to be positive for sterling. Vasileios i think all of us have probably thought about it iod of Monetary Policy easing. It rose real rates of return. I think we need to put it in perspective of the number of factors. Seen a rally recently and sterling on the back of this election announcement, which personally i thought was unjustified does it relies on a number of assumptions. Not all them will turn out to be true release we dont know about them. Secondly we have that youll be last week and a lot of people thought it had a hawkish been. It pretty much corroborated the market. Under the best possible scenario, you can expect at most 25 basis points in the hike. I think that was not enough for sterling. And now this. You have nominal rates being cut on the 23year horizon and now you have inflation speaking out. That is compressing real rates. Alix what is the downside . Vasileios as far as cable is concerned, i think its a bit tricky because you also have the dollar factor. I would expect some convergence within the 2527 range and a multimonth horizon, but i think the currency people should be looking at is euro sterling. This is sterling factors mostly. And that perspective, i think euro sterling is due to a rebound. Alix the other information is that the european courts said a Singapore Free trade agreement needed National Parliaments approval. The rhetoric making that Brexit Agreement that much higher. Do you buy into that story . Vasileios i dont think so. They probably had a shortterm effect. Theres a bigger story out there and the bigger story out there is that we are getting a eurozone that is turning out to be much more united than people expected one or two years ago. Secondly we should not forget that there is no way on our that the eu is going to back down on a number of issues in the brexit negotiations. It will have to be the u. K. Making concessions. David he will be staying with us. Former Senate Finance chairman max baucus and Mitch Mcconnell will be right here with us. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselve