The hardliners of iran. It is an unusual coalition. Olivia Vice President joe biden called the letter beneath the dignity of the senate and sends a signal that the president cannot deliver on americans commitment. Oil shares up 9 after a shakeup of the top at the top of bank american. Brady dugan will be replaced by prudentials Tidjane Thiam. He is one of the few leaders of a global banks to have survived the financial crisis and the many scandals that followed. Brady dougan European Finance ministers are warning that time is once again running out for greece. They want the greeks to open their books and follow through with their pledges to reform the economy. Greece is in danger of running out of cash this month. The leaders do not want to give greeks more money unless they deliver on promises made two weeks ago. Apple bets their first new gadget in five years will get customers rushing to stores. They finally released full details for its new apple watch. It offers health and fitness apps, email, plus plus a bunch of other things. Tim cook says it can even receive phone calls. It will cost anywhere from 249 for a basic version, to over 1000 for a highend model. Tom anybody there . Olivia the u. S. Ambassador to south korea has left the hospital. Five days after he was slashed in the face by a north korean sympathizer, r clippard told mark lippert needed 80 stitches to close the wound in his face. He needs rehab work on his hand. One of the Creative Forces behind the simpsons has died. Sam simon helps turn it into a hit and walked away after the fourth season. He said his arrangement with the show paid him tens of millions of dollars a year long after he left he spent the rest of his life giving that money away. He set up a foundation to train dogs to help disabled veterans. He was 59 years old. Tom ambassador lippert, we spoke with Joseph Knight of harvard. He has is distinguished academic career. This is one of our frontline diplomats who was grievously injured. Olivia a terrifying thing that happens to him getting slashed in the face by that north korean dissident. Tom with a track record. There it is. Ambassador lippert with hand surgery. Lets do a data check. Markets are really on the move this morning. Futures have deteriorated, negative seven down to 11. The euro is the story. For an exchange at 107. 48 on continued weakness in euro in yen. A fragile 49. 55. Lots of people writing up oil prices. There was a 130 handle on euroyen now 130. 1. Gold crushed three days in a row. We are 10 away from key support on gold. Many gold types suggesting 900 is the next level to give you the fragility on gold. Lets go to the bloomberg terminal. This charge it is not a chart. It is fancy. Olivia this is more like a lateds magic carpet. Tom this about the bet on the future of the euro. You have a modest smirk here. A bet on the euro right now, weaker. Here is the weaker the weakness in the euro, the red part. It is a massive one way bet. Olivia it is. The euro obviously trading at the weakest level against the dollar in 11 years. Good news for our Summer Vacations but this is a story more and more of Dollar Strength rather than weakness around the world. Tom one of our themes on bloomberg surveillance this morning. The headlines again within the litmus paper of the system, the Foreign Exchange market in a surging u. S. Dollar, and our guest this morning previous guest lets call it the jack lew dollar. How does it play into equity earnings and revenues . Monica descends oh is head of monica descends oh monica, let me to be in with you. You have written about this. If i have equities in my Retirement Plan and i know these are multinationals that i own how are they affected by Dollar Strength . The impact with a drag on revenues. Longerterm, i dont think you want to drastically change the way you are positioned, but over the next two over the next 12 to 24 months, there will be did you ever learn about currency hedging yak of i think i flunked that three times. Are these companies hedged . Is cocacola hedged . Is mcdonalds . Apple in particular seems to be doing many do it will be varied by company. You can read the filings and the commentary on tom i agree. It is sort of opaque. Depending on your met monica depending on the manufacturer, it will be a drag. It is the longterm story that is very much intact. Olivia a huge runup in the 10 year, the strongest fiveweek move in over 10 years on the u. S. 10year yield. Lisa, what is the strength of the u. S. Dollar doing in the treasury market . Lisa why is the u. S. Dollar strengthening . It is because of the weakening of currencies elsewhere. The hike rates would in turn lead to higher treasury yields. That said, because the dollar is strengthening so much, it is attracting investors from europe to come into the u. S. To capture the higher yields and the growth stories that is keeping a lid on tom are we having a bond tantrum right now . Are we in a mini tantrum . Lisa to the extent that there is a selloff in yields . Analysts are seeing the treasury yields will be endofyear higher than they are now. There are a lot of people saying that is just not true, there is no way that could happen given the negative yield environment. Tom this is the arch debate right now, the idea that yields are going to go higher. Olivia also the fed have they lost control of the treasury market . There is a wall of money coming in from europe. Monica that is what is happening. What if the fed hikes rates and yields stay where they are or go lower . The president s pressure of money coming in overseas. Tom lets move to the credits we story. The changing of the guard after perceived underperformance. Mr. Dougan is out, mr. Thiam is in. Hans nichols, i do not want to spend more on the post mortal of the postmortem of mr. Dougan. Hans co. He survived a lot of the worst of it, right yak of the big calls for him were to step down in 2013, 2014. This is not about the litigation exposure, which is real, it is about the strategy of credit squeeze. Are they going to continue to try to make money in debt . Tom is this a board action . Mr. Ciampa is known for this guy lights up insurance businesses. Is that the mandate from the board . Hans it is a light of is it lighting up better stock returns . I would imagine. Tidjane thiam has spent a lot of time there. It really gets down to what is Credit Suisse going to do . Are they going to be a bank to private wealthy investors and private individuals, kind of like the track ubs has taken, or will they brady dougan split the difference and has pared back some of the debt trading, but not all the way. It is a strategy question that may be for the board, for the new ceo, but they need to make a decision on which direction they will head. Olivia that would be my second question. Tidjane thiam has Risk Management in his dna. The question is whether or not Credit Suisse will follow the model of ubs and get out of the risk your trading businesses and pursuit more of his wealthy client businesses. Hans that is the longterm strategy of ubs. You have seen most of the major european banks do that. Deutsche bank is an outlier. They are waiting for fixed incomes and commodities to come back. If it does, their theory of the cases they will be in a strong position. Their theory their theory of the case is that they will be in a strong position. The ones that have recalibrated have seen an uptick. At least shortterm, it does not appear their strategy is working. Tom hans nichols, thank you so much. Monica, the basic idea of Management Change within the Financial Sector how do you handle that as a strategist or as a Research Analyst . Monica you look at who is coming in, who is going out, and look at the strategy from there. Tom he has a sterling track record, out of Mckenzie Monica he is a wellrespected ceo. My question for you, you are overweight on financials. Brady dougan did not know how much capital he had to raise and the regulators were changing the rules on him so quickly. What makes you want to bet on banks . Monica look at how the stocks are reacting today. They are excited for something different, and we see that a lot across the board. Financials are a sector that remain very unloved. When i talk about clients investors, i see people underweight. What happens remains to be seen. They could raise rates by the end of the year. Tom we will touch on that in a bit. Olivia . Olivia coming up, apple has just unveiled its first entirely new product since the ipad. That brings us to our twitter question of the day will you buy an apple watch . Tom keene will buy that 17,000 gold one. Tom can i get a chicken parm . Please. Tom good morning, everyone. It is a dollars story, Dollar Strength, and we have major yen week this, now 121. 88. Lets get to our top headlines. Here is Olivia Sterns. Olivia we begin the latest we can begin the latest on the Nuclear Talks with iran. President obama is sharply criticizing Republican Leaders for sending a letter to irans leadership. The president accused the gop of making common cause with irans hardliners. Joe biden said the letter is beneath the dignity of the senate. Shares of Credit Suisse are up 7 in european trading right now following an executive shakeup. Brady dougan will leave at the end of june and be replaced by prudentials Tidjane Thiam. He has spent the last decade running insurance businesses in the u. K. Also, never before seen video of the 2013 Boston Marathon bombing has been shown to jurors. It shows Dzhokhar Tsarnaev and his brother before and after the explosions at the race finish line. The fbi compiled it with Surveillance Video from nearby stores. More fallout from the skating Justice Department report on ferguson, missouri. The report said lax in ferguson are unfairly treated by the city possibly said blacks in ferguson are unfairly treated by the citys police force. Fellow democrats are urging Hillary Clinton to speak out, and they are willing to predict she will. A person familiar with the matter says she might hold a News Conference within days. Working is cutting sodas from kids meals. Instead of soft drinks, kids meals will include apple juice milk, or lowfat chocolate milk. Tom is devastated. Tom i think the size thing is dead on. Give them 16 ounces, 32 ounces . You are kidding. Olivia that is kind of the idea. Tom thank you. Olivia the clock is ticking until april 24 when apple starts shipping its new apple watch. Tim cook so far analyst reaction has been mixed. At the most basic level, it takes for an out of how you use your phone. A typical teenager gets about 6000 Text Messages per month. Checking this Text Messages or receiving a phone call or using your phone for payments having it on your wrist. The same reason why the pocket watch was displaced by the wristwatch. Olivia brian white at canter says it will go down as the bestselling new product category in apples history. What is the real value to apple . What you have to keep in mind is the enormous scale of apple. Sherri scribner at Deutsche Bank saying it will come in at 17. 6 million. Even if it adds 4 to earnings, a lot of people thinks that is already built into the price. Tom lets go around the table. Lisa abramowicz are you getting an apple watch . Lisa i had a flip phone up until about 10 years ago. Tom will jamie dimon buy you one . Monica co. I cannot think i cannot say whether he would buy me one. A little bit tricky to your point at these levels. I certainly think it makes a story more compelling. A phone to a laptop to a new advice a new device. Tom i go back to the ipod which i was totally wrong on. I cannot convey to you how wrong i was about the ipod. What did you learn in your research about what monica said . She doesnt wear a watch. Lisa many are excited about the apple watch in the future of digital watches because it will get people putting Something Back on their wrists but it is the convenience of it. It is taking the friction out of it. It is something you heard from the Financial Times about the benefits of it. Think about how often you take your phone out of your pocket. I heard jean munster also say that teenagers spend send about 6000 Text Messages back and forth every month. Lisa do they have 17,000 to spend on it . Olivia this is a nice continuation to our twitter question of the day. Will you buy the apple watch . Will you pay 10,000 for the gold what . Please tweet us bsurveillance. We are streaming on your tablet, your phone, and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Dow futures are now 119. 1. 19. Ugly in terms of Dollar Strength. The euro, news out of greece as well, 107. 52. Morning must read a smart note on the shortage of pilots. This is not just the u. S. , but asia as well. Last year boeing estimated between 2014 and 20 or so years out, the asiapacific region will need 216,000 new pilots. The region is capable of training only 5000 year. Western manufacturers need to offer their support. This is where a movable object overcomes all events. Monica, you have seen this with your work at jpmorgan. Private bank, we can be as cute as we want, but there are these foundational forces that change the dialogue. Monica that is very true. With Oil Prices Falling from an investment standpoint. Tom you remember when airlines were cyclical and you stayed out of the way of them. Can you say that the cash flows are more of a normal stock . Monica when you look at the Church Rectory in and a couple of years, it certainly looks positive from a capacity standpoint. U. S. Airlines add that to the fact that input costs are down drastically, down a third. You cannot discount that. Tom we go to Olivia Sterns. Where are you going this weekend . Olivia im going to jackson hole in two weeks. A lot of schools are in the west. It costs 75 pounds to 100,000 pounds. No way a pilot from thailand can afford it. Tom how come i cannot olivia coming up next, stock versus bonds. We will discuss where investors should be looking. This is bloomberg surveillance. Back in just a moment. Tom good morning, everyone. Bloomberg surveillance. Markets are on the move right now. Futures 15, dow futures 121. A lot of action with a stronger dollar. Lets go to top headlines. Olivia the white house is calling out republican centers republican senators, who sent a letter to iranian leaders. President obama says the republican move will not stop negotiations. It is ironic to see some members of congress wanting to make common cause with the hardliners in iran. It is an unusual coalition. I think we will focus on actually seeing whether we can get a deal or not. Once we do, then we if we do we will make the case to the american people. Olivia 47 republican senators signed that letter to iran. A shakeup i credit squeeze. Shares rose as much as 9 in early trading after news that brady dugan, the ceo, will leave. He will be replaced by prudentials Tidjane Thiam, who spent the last decade running insurance companies. Profits have suffered accredits wieses private at Credit Suisses Private Banking business. And pressure ungreased today telling them they need to open their and pressure on greece today. European lenders may not come through with more aid, and the greeks could run out of cash soon. Time is running out. We agreed today that there is no further time for discussions between the greek authorities and the institution must and will start as of wednesday, the day after tomorrow. With a few to achieve a speedy conclusion. Olivia france plus finance minister says it greece wants more money, it needs to come out with its budget deal and a better picture of the countrys financial situation. The university of oklahoma has shut down a fraternity after members were caught on video making a racist chant. Oklahoma possible players decided to protest rather than practice, and the coach joined them. We are spending more money on prescription drugs. U. S. Drug spending grew last year the fastest taste u. S. Drug spending grew last year at the fastest pace. Americans spent 21 more on cancer drugs, and the cost of hepatitis see treatments sword. Starting at 4 00 p. M. Eastern time nfl teams are allowed to sign freeagent and make trades. One of the free agents expected to draw a lot of interest darrelle revis. There is speculation that he could end up back with his old team, the new york jets. Those are your top headlines. Tom the nfl tomorrow will have a signing of names most mispronounced by tom keene and Olivia Sterns. We set a record for that yesterday. Thanks to all of those on twitter on on dome ago sue. Olivia that is what were here for. Tom we enjoyed our phone call with you yesterday. It is spring. We have sprung forward into daylight savings time. It is time to recalibrate yield retirement accounts, or maybe do not touch a thing. The s p 500 has green on the screen. We open trading this morning, up 11 . Monica dicenso Lisa Abramowicz visits from bloomberg news. Lets have a classic equity bonds tagteam raffle. Terry schilling was on the said yesterday. Prices higher, yields lower like the german 10 year right now. Lisa it very well could be the truth. You look at the differential between what is going on in europe, the german you the german 10 year versus the u. S. 10 year it is the widest gap. The biggest gap for more than 20 years. Tom mediation falls right into equity markets. How do equities adapt