They are not governed by fifa. Tom i am learning every step of the way. Lets go to our top headlines. Vonnie everything that is or is to know you will know very soon. We will start with that story to u. S. Prosecutors wanted to know what role soccer played. Money pass through u. S. Banks including citigroup and jpmorgan. The banks have not been accused of wrongdoing. 14 people have been charged in the case. Nine of them officials with fifa. The japanese yen hit as 12 year low against the dollar today. The nikkei has risen for 10 days in a row. Once again, greece is sounding optimistic about a deal on bailout money. A government spokesman said that greece wants an agreement by sunday in a deal will be reached soon. The European Commission and the imf want greece to come up with a list of Economic Reforms before it gets money. They disagree. They say a deal is not close. Larry summers told bloomberg both sides will have to compromise. Sumemmers greece has got to get more serious and determined and clear on what the reforms it is going to take. That is not going to be politically easy for his leadership, but the europeans need to recognize that there are limits to the degree of austerity that can be imposed. Vonnie one greek official told bloomberg the imf is the main obstacle. The imf is not commenting. We may be on the verge of the biggest acquisition in the Semiconductor Industry. Ivago is close to a deal to buy broadcomm. An announcement could come as soon as today. Broadcom has a market value of 34 billion. And its going to be cleveland versus golden state in the nba finals. The warriors beat houston 10490. Harrison barnes scored 13 points in the fourth quarter. It will be golden states first trip to the finals in 40 years. Brendan lebron james back in the final again. Tom this is what the nba wanted. Brendan this is what lebron james wanted when he made that move back. Some economic information coming out this morning. 8 30 lma. M. , we get jobless claims. 9 45 5hthe comfort index. At 10 00, pending home sales. Tom a set of Economic Data sets the tone for the percolation that yellen may act sooner than later. Lets look at the data check. I want to get to this quickly. Futures turning negative to the euro 1. 0940. On to the next screen with oil soggy. Euroyen 1. 3578 shows this is a yen weak story. Oil currencies uighurs as well. Weaker as well. Brent 62. 34. This is claims adjusted for the growing sides of employment america back 50 years. The double recession where paul volcker killed inflation. This is an elegant cyclical move with regression. And there is something new going on now. I would suggest some of this is a shift forom a Manufacturing America to a Service Sector america. But most people do not feel the optimism in this chart. Brendan i think this is also longterm we have these other trends that are beyond this cycle. And even beyond the current recession that have to do with people leaving the workforce permanent link. The changing gender balance. I do not think any of us are very good at teasing those out. Tom i agree. A lot of the social media we get is i dont feel as good as this chart. The economist love to trot this out. Lets continue our discussion. Is it perhaps a second leg of yen devaluation . The japanese are using their currency as a tool to buttress toyota exports at the expense of asian neighbors like koreas hy undia. Our guest lives this with Oppenheimer Funds. A weaker yen changes the International Investment oculus. Why is it all of a sudden exciting in yen . It is a very particular behavior of dollaryen. Since 2012, when we ended this y weaknesse rtrend. We saw this sudden trend, then nothing for six or seven months. We saw that in 2013. Then boom. A big liberal receptor and we had nothing for six months. Now we seem to be breaking higher again. It seems to be very much the japanese lumpy portfolio outlook that we have been talking about and waiting for. Tom lets go to the chart. Abinomics a longterm strengthening of the yen. This is the deflation of japan. What an abrupt shift. It is a hockey stick. Brendan one of the things we have been waiting for with abenomics is for corporations to start paying more to turn those profits into wage gains as stimulus for the economy. Do you see that happening . Alessio you see pockets of Wage Inflation building up especially on the bonus side. That has been going on for a couple years. What we are waiting for is sustained Capital Expenditures. We are waiting for the confirmation that abenomics has gained traction in the economy is when you start seeing corporations spending in the domestic economy. Brendan we did calling abenomic s. It is still monetary policy. Still waiting for any other policies to kick in . Alessio i think it is a combination of abe and koruda. Japan has done q. E. Many times before. Why it is working so well is because there is a combination of fiscal expansion and monetary easing. In the past every time we had sustained quantitative easing from the boj we also had fiscal contraction. Tom we know this effect this has on south korea. What does it mean for the United States . If yellen is Oppenheimer Funds central banker, how does this devolve back to washington . Alessio we saw for the first time in a long time the fed started mentioning the dollar in their statements. I think what we see is a sustained dollar appreciation against key trading Partners Europe euro, yen. Tom do you suggest Dollar Strength . Alessio this dollar bull market is very much in line with what we saw tom this is critical for peoples retirement plans. If i get a ruben dollar, how do i reallocate my for portfolio . Alessio in the meantime being in u. S. Assets or developed assets as equities is probably a more attractive value proposition. Tom i want to be i in gm and not kod a. Not toyota . Alessio it is difficult to say because companies hedge their currency exposures. Tom im trying to make some news here. Brendan vw and toyota and that gm. You have to make sure those equities are hedged. What is your knownunknown and that you are worried about . Alessio um, i think it is really understanding the making sure the sustainability of the u. S. Recovery is really there. As this chart on jobless claims the shows, we are basically previously on the unemployment side cyclical lows. Tom you cannot get better than this chart. Yet we do not feel that way. Alessio most importantly, what we saw in the past is by this point in time we had several fed hikes. So, now this hiking cycle seems to begin very late. Tom lets stop the show. Is that a gorgeous chart . You like this oval action. We went from this ugly oval to a Service Sector. Brendan you have a trend line. And a trend arrow. Tom 30 seconds p. M. Fifa. Italy. Do you feel cheated by fifa . Italy would pave would play better football of these guys were not so corrupt . Alessio at this stage that corruption allegations seem limited to awarding the world cup, marketing sponsors. Tom you do not see them as part of the game . Alessio that is where i am suspicious because the claims are that corruption has been going on for two generations of soccer officials. Its been rampant, pervasive widespread. How can i believe that this has not gone into potential match fixing scandals . Brendan you as italian shocked that there would be match fixing. Alessio i am shocked. Brendan we have now been in 24 hours of what i like to call fifa christmas. Fifas sponsors have a huge problem. We will talk about that coming up next. That is our twitter question of the day. Fifa calls its corporate sponsors is partners. Should its corporate sponsors ask for a divorce . This is bloomberg surveillance. Tom good morning, everyone. The yen, 1. 2413 on an ever weaker japanese yen. Vonnie nebraska is shutting down its gas chamber. The first conservative state to abolish capital punishment. It push the change through over the governors veto. Its a court battle of the device makers. Jawbone has suied fi has sued fitbit. The suit accuses some of the workers of taking secrets with them. Fitbit will fight the claims. And Sony Pictures to not have much space in its new movie aloha. The film opens today. Sony is blocking reviews until just hours before the public can see it. Critics usually list it days before the film opens. One critic said aloha makes no sense. Brendan it was so good. She said it makes no sense on any level at any point during the movie. Vonnie i want to see it now. Tom all i know is my kids of lost interest in the movies. The pixie dust is gone. The following is a paid program. They watch you. Tom they do not even know what i do. We dive into fifa with brendan greeleys great european perspective. Decoupling on emissions. This is a bit of a press release from sweden. Shows a really interesting relationship on Climate Change versus gdp growth. Oil. Percolating about too much suppl y and too little demand growth or lets move on to the scandal of the moment. Brendan back to fifa our disappointment and concern is profound. From visa. We have repeatedly expressed our concern. Tom that is from coke. They spoke. Brendan fifas top sponsors have a problem. It is not anyone. Aaron covers adidas. What is the mood right now . Aaron hey, brendan. Thanks. So im based in frankfurt not all that far from adidas headquarters. It has a long history tied up with world cup soccer, which is the premier product of fifa. They go back decades with the world cup. It is tied into their identity. They have a ceo who used to be an amateur Soccer Player involved in professional soccer. They tie their identity with performance and soccer shoes. They need this exposure. At the same time, for years, they have been allegations swirling around fifa. Youve seen the sponsors, led by adidas, look the other way. Now youre seeing some tougher rhetoric. It is a tough quandary for these companies. They cannot afford to have their brand tainted by this. At the same time, there is a lot at stake. Brendan you have done a survey of what fifas partners have said. Where is the toughest rhetoric coming from among those seven partners . Aaron we have seen visa come out pretty strongly overnight. Visa, the Credit Card Company has been a longtime top sponsor of the world cup. They expressed profound disappointment. But i think almost to a company as you run down the list which is in my story, visa, adidas coke and some others like mcdonalds and bud are talking about needs to be held to high ethical standards. Needs to shape up. Brendan there is one company which is missing which is gazprom which seems not concerned at all. Why might that be . Brendan we got that statement from gazprom. I have gone to some of the Marketing Experts and did some checks this morning. There is a long history of the sponsors not saying much are coming out with some pretty tepid statements. Brendan thank you. Taking a look at all of fifas sponsors which will go to a very nasty p. R. Problem. Tom i want to go to you two. You are fifa experts. All of our audiences in america are saying, we do not care. Do you have any idea that games were rigged. I want you to talk a soccer fans. I am not asking for a fact. But in the bars you go to when italy plays. Is it like figure skating where you go the judges are terrible. Is it garigged at the field level . Alessio the one world cup were i felt there was suspicious sequence of games was in 2002 when one of the host countries, south korea, illuminated three big nations such as portugal spain and italy in a row. Tom you are in brazil. Brendan i was in brazil for a nasty decision which i feel was the wrong one when he flopped against mexico. Mexico lost. I think the one thing we know about fifa is they have insistently declined to introduce basic technology in American Sports which is the instant replay. It is so obvious on television when you get a better camera angle that a foul did happen. Strategic flopping is so beloved in the game. Fifa has declined to allow its refs to look at the instant replay and say, i got this wrong. Tom i want to move on. Go ahead. Alessio fifa did use goal line technology. Those are some are the Little Things that you give up control. Tom i want to know what is the next step for the department of justice . In the document they said there will be more. What will the more be . Brendan i think we are waiting to see what the people have been named now. There are four people have cooperated going back to 2013. They named9. Are they going to take these nine names and turn them states evidence and move their way up the chain . Tom we will continue this discussion. Let me do a twitter question on fifa. Should fifas corporate sponsors ask for divorce . This is bloomberg surveillance. Tom good thursday morning. We need the morning must read. Brendan Stephen Roach writing, he calls it the currency manipulation charade. He writes, restricting trade to a few socalled currency manipulators would redistribute the u. S. Trade deficit to its other trading partners. Americas trade balance is like a water balloon applying pressure on one spot would sit the causal order to slosh elsewhere. Does that ring true that it is not a currency problem . Alessio the u. S. Has to have a current account deficit because it is the reserve currency of the world. Has to have a capital account. It has to supply Financial Assets for the rest of the world to buy. I am not so sure that now we are in a currency manipulation situation, because, yes, the chinese trade surplus is searching but exports are very weak. Brendan the imf said it no longer believes the reminbi is overvalued. This is a huge debate within trade in the u. S. This is bloomberg surveillance. [baseball crowd noise] [x1 chime] [crowd cheers] oh i cant believe it [cheering] hi, grandma tom good morning, everyone. Our top headlines. Vonnie some of the worlds bestknown companies are pressuring soccers ruling body to fix the corruption scandal. Coke, visa and other sponsors reacted after officials at fifa were arrested. The Justice Department says officials received millions of dollars in bribes. Fifas controversial president has not been charged. Hes up for reelection tomorrow. The members of the Uefa Executive Committee are convinced there is a strong need for a change to the leadership of this fifa. And strongly believe that the Fifa Congress should be postponed with new fifa president ial elections to be organized within the next six months. Vonnie attorney general Loretta Lynch says the investigation continues. More arrests are expected. Germany and france have a message for greece. It is time to get serious. Foreign minister have lined up in germany to reject have lined up to reject an agreement. Greece needs the money to pay back a loan due next week. Robert shiller warns shiller it could lead to a story that is destabilizing and cause runs on other financial institutions. The original greek story should not of involved italy and spain and portugal and it ultimately did because of assumptions. Vonnie the ecb says the euro area bond yields could rise of there is no agreement soon. When it comes to sales, costco is beating out walmart and target. Samestore sales rose 6 in the latest quarter. The irs believes that thieves who stole Tax Information are from russia. That is according to the associated press. The crooks used the ira website to steal the data in claim 50 million in fraudulent refunds. And it will be a wild weekend in the nhl playoffs. The blackhawks beat the ducks 52. A game 7 in the western conference finals on saturday. Tomorrow night, the rangers host tampa bay in game 7 of the eastern conference finals. It is going to be amazing. Only the second time in 47 years both conference finals have gone to 7 games. The winners will play for the stanley cup as you well know. Tom phenomenal. I guess he wants chicagonew york in the finals. Two game 7s speaks to the parity. Vonnie we need another 7 series. Tom i do not think it is rigged. I do not think bribes were had. Where we going, to england . Brendan yesterday, the queen spoke. David cameron will visit four eu countries over two days. His party once a referendum about eu membership. David cameron wants a better deal for the u. K. Francine lacqua joins us from london. When i hear the phrase better membership deal i think of the long pain of the lisbon process, and i wonder if there is if its feasible. Francine you think of lisbon and most people in the u. K. Go back to 1975. Which ended up with not that much. Youre absolutely right. You have to convince a lot of eu members, including Angela Merkel who so far has said no she will not renegotiate the treaty. In the u k, people are worried that it is smoke and mirrors. What is negotiated will not be much at all. So he has a very tough task. It is interesting when you look at two days. Europeans. I will focus on the meals. He is having lunch and dinner with different european heads. I think it is significant he will see Angela Merkel. I also think it is significant is going to poland, because there is so immigration in this country from the polish community. That may be a good way to talk about immigration. Brendan youre not just european. You are italian. Maybe we should take this block and talk about match fixing. But we will not do that. I want to talk about a new deal for the u. K. I want to make sure i understand this. Is it possible for the u. K. To get a special deal about every eu country renegotiating the entire tree . Treaty . Francine they could do something on benefits that does not require a treaty change. If you touch on freedom of movement, or anything in the treaty we do not exactly know how much they want to renegotiate. They do not want to cross the red line where Angela Merkel will say no. A treaty change, i think at this point will be very, very difficult. We have heard from the european counterparts that they will not go there. Tom stay with us. Alessio with Oppenheimer Funds with a view to italy. How would you p