Moment on that bombshell, hsbc. Right now we need the bombshell of first word headlines. Here is vonnie quinn. Vonnie Hillary Clinton is distancing herself from her former boss and a potential rival. Mrs. Clinton says she is against the asia trade deal. N what i know about it as a today, i am not in favor about what i have learned about it. There is one other comment i want to make because i think it is important. Trade agreements to not happen in a vacuum. Have ar for us to competitive economy, there are things we need to do that home that help raise wages. Vonnie clinton backs the deal when she was secretary of state. Supported by a possible competitor, Vice President joe biden. Clinton will propose a tax to penalize highfrequency trading. Michael horn will testify before House Committee investigating the emissions test scandal. He is expected to say vw. Delivery of 2016 diesel models. Thousands in the u. S. Will remain quarantined in court. A late night agreement averts a strike at fiatchrysler. They reached a deal for 20,000 workers. The union says it made significant gains. Workers will vote on the agreement tomorrow. Many said it did not do enough to close the gap for lower paid employees. Floodingis threatening the water supply in south carolinas capital. Meanwhile, the state warns that the threat of flooding in coastal areas could last to the weekend. And the chicago cubs are moving up in playoffs. I know. They beat pittsburgh in the National League wildcard game. Complete game shutout. Next up, the st. Louis cardinals. Tom just one example megan murphy of our washington office, she had to be sedated because her cubs moved forward. Vonnie bookies. They have 25 of the outstanding book. Tom 8 billion in all cash transaction. This is real estate. This is gorgeous City Properties fancyton, san francisco, Office Buildings for fancy phds and biotech. Vonnie we have a 24 premium. Million deal to end the sec probe as well. Tom i want to get to the data check. Looking at equities, bonds, currencies, commodities. Within features. Futures. Looking at with the vix at 18. 40. We are below the average for the vix. Oil near. 50 a barrel gets my attention. Very simply, this is claims compared to the number of employed in america. Lis goes back to the time of bj. Ugly recessions. Down we go. We are in new territory. This is the most optimistic chart on bloomberg right now. Vonnie what is interesting as people were asking whether we reached full employment. Tom we times this on Central Banks today. Markets, thats rip up the script and talk about steve majors call at hsbc. You have had time to look at their International Research note. This is a note that will be read at the bank of england. Jonathan a 2016 projection for the u. S. Tragedy, the 10year e ield, cut. 150 basis points below the bloomberg median. An international started an international story. These Central Banks that want to hike. That cycle is going to be nothing you have seen before. Tom isnt the reality for the real economy that you spoke of in the last hour what this does to yields in germany, what it does for yields in copenhagen . In denmark, how do they deal with the stamping by Major Economies . Nonathan it is going to be a issue. If you look at that treasury curve, with the 10year and all the way to the back end, they longer factor in yields and the such a bank is going nowhere for a long time. If the fed is thinking about hiking any time soon, we should go back to that question the payrolls report. Is it a oneoff for the beginning of much softer data . That is what everybody is discussing. Tom thank you so much. Folks, bloomberg surveillance is about economics, finance and investment and about the International Relations that goes over all of this business economy. This morning, we learned american warplanes change their flight paths and did not complete in assigned mission to avoid russian fighter aircraft. This is in recent days. This over the combustible mix which is known as syria. This is not the baltics. It is not wayward planes. This is the here and now. You get we have james the fletcheran at school at tough university and the former supreme allied commander from the north American Trading treaty organization. News. S such distressing i want you to take us away from the headlines and the obligatory tv video of airplanes flying around. What our military people thinking about the idea our planes are diverted because they are within 20 nautical miles of a russian jet . Admiral stavridis in addition, we had our drones these are big aircraft, these predator drones they are 50 foot ,ingspan, intercepted by russian aircraft. So we have got a mixup between russian fighters military, u. S. Drones. Planes on planes. At the same time russian missiles are flying from the caspian sea. Vonnie who decisive gets to fly and in what direction . Admiral stavridis absolutely nobody controls the air space. Tom your question is dead on. Betweentary does ads Football Games to get kids to join the military. The show the razzledazzle guy on the boat. He has got the headphones on and controlling big, important things. Do we have a kid in the mediterranean controlling the airspace that were in and the russians have somebody in the caspian sea doing the same thing and are they talking to each other . Admiral stavridis yes, to all. Except are they talking to each other. They are not. The russians also have controllers in lebanon and on ships in the mediterranean, on a ship next to that u. S. Ship where the control is going from. It is a huge there is no control. Vonnie is Vladimir Putin playing to size . Admiral stavridis we see Vladimir Putin taking off his shirt. This is the equivalent of that. He is launching missiles. He has got aircraft going, tanks moving in. Vonnie but he says he was to coordinate plans with the u. S. And then he is attacking rebels and propping up assad. How can that all be true . Admiral stavridis it is disingenuous. What he is doing is supporting assad the same way he is supporting the rebels in ukraine. When he says he is going after the slower state, i do not think anybody syriza believes him. Thanybody seriously believes him. Tom how do we respond . Secretary, our defense, tragically flawed was his phrase yesterday. Admiral stavridis i think we need to go after Islamic State high, hard. Tom boots on the ground . Admiral stavridis i think so. We probably need 10,000 to 15,000 to do the special forces, the Forward Air Control and push this tom can we put some of those troops in damascus . East of israel is damascus. We know it from lawrence of arabia. North of there is hwere is where assads from. On the coast is where the Russian Troops are. Where do you put our boots on the ground . Admiral stavridis this will sound somewhat odd but not in syria. They should be in iraq. This from a u. S. Perspective is going to be a bombing campaign. Our special forces will need to go into syria but not certainly into damascus. Tom the most important article today. Patrick lyons buried in the New York Times. Weapon intonew play. They sent a Cruise Missile 900 miles this is not the falkland wars this is not an intercept missile. Admiral stavridis not at all. This is a missa we have used many times, the tomahawk missile. Missile we have used many times. It is a capable weapon. It goes 900 miles. Our missile goes 1500 miles. Hours has better accuracy, but this is a very capable weapon and launched from the caspian sea. 900 miles. Tom i had to get the map out. Vonnie what is natos primary . Priority . Admiral stavridis nato has to support its nato ally, which is turkey. Youre seeing a meeting followed defense ministers. One thing on the table will be, how do we support turkey . Tom we will have so much on this in the hour. How is this link to ukraine . Admiral stavridis in a strange way is what putin is playing is that hes trying to convince the west he will want to be part of taking on the Islamic State. He will go to the europeans and say i am playing nicely. Can we lift sanctions and ukraine . In ukraine . It is a strategy that will not work because it is transparent falls. False. His James Stravidis and expertise front and center. Ben bernanke, the former chairman of the federal reserve, he will be on bloomberg this morning. 0 on bloomberg radio, mike mckee has some questions set up at 8 00 a. M. For chairman ben bernanke. Well see that later today. Stay with us with james stravi dis. This is bloomberg surveillance tom good morning, everyone. Next week, i will be in london with the jon ferro and Francine Lacqua. Really looking for to our coverage of so much in europe. And in economics next week from london. Right now we need to go to our business news. On Deutsche Bank, here is vonnie quinn. Vonnie georgia brink is Deutsche Bank is bracing for his biggest loss and a decade. The dividend that has stood since germanys postwar reconstruction. And bonuses are likely to be slashed. To combine with all are part of the Data Storage Company emc. Emc has been seeking Strategic Options to boost its share price. The deal a slumping market for personal computers. Ahead of volkswagens u. S. Unit reportedly knew about emissions problem far earlier than the carmaker previously knowledged. The New York Times says engineers told michael horn about the issue in the spring of 2014. Vw did not admit to cheating on pollutions tese until last montht pollution test until last month. Questioning and congress today. Hans nichols joins us with more from berlin. If you were michael horans lawyer, what would you be telling him this morning . Hans i would be very aware of fred upton. If you are an auto executive appeared before the House Committee, you need to be worried about the democrats. In this case, the congressman from michigan could be playing protective defense on his industry in michigan. It is michael moran, the head of the u. S. Operations. They were aware back and early 2014 of some potential emissions noncompliance. Butrely get to say this this is one morning i wish i were in washington, not berlin. That Committee Hearing is the crackling tension. You have to look at not only what mr. Upton says. And then on the democratic side you have a big environmentalist. You will have a lot of members of congress trying to take volkswagen down. Tom i remember the silliness of detroit executives taking their vw diesels from detroit to washington to show how sensitive they were to the american people. Let me cut to the chase. Do german executives or do american vw executive show up on the hill this morning . Hans right now it is a german u. S. Nal who is head of operations, michael horn. Two weeks it was reported two weeks ago, it was reported he was out. Hes not out. Michael horn will make most of the appearances. On the german side, a lot of this was run out of germany. Could not haves been aware of how devious the Software Actually was. That could be the line today. Jonathan a rather cynical line. This is a rather convenient distraction. All of the focus is on u. S. And not germany. Anyone who wants to get the knife out for germany, they have got a lot of fuel to do it. Hans a lot of fuel, very sharp isfe and a target that has, bleeding from a lot of different places. We talked about for six month how germanys engine of growth in europe, the last three bits days ofmic data, four negative data, tell us the German Economy may not whether these headwinds. Not only did you have greece and china now but we have this tolkswagen at the core of wha germany is about, and export driven economy that relies on its brands for competency. Tom hans nichols. Thank you so much. We continue with jon ferro in london. Later this morning, on bloomberg television, an important timely conversation with former Morgan Stanley chief executive officer john mack. Look for that. This is bloomberg surveillance stay with us worldwide. Good morning, everyone. London looking up to st. Pauls, across the river thames. Next week, jon ferro and Francine Lacqua have to put up with me. Looking forward to being in london all next week as we give you an International Perspective on bloomberg surveillance right now, our morning must repeat vonnie there are so many to choose from. I wanted to choose this one. An interview with pbs, Hillary Clinton said im worried about currency manipulation not being part of the agreement. Talking about the china pacific partnership. We have lost american jobs to manipulation that the companies in asia have engaged in. Im worried that the pharmaceutical Companies May have gotten more benefits and patience and consumers fewer. These are just some of the problems Hillary Clinton has with the the deal. Tom and the political how kilis of it the political calculus of all. James stavidis at the fletcher school, tufts university. One major economist it is the only thing that everyone agrees on. Free trade is good for everyone involved. Give us the new way it is taught on fletcher. We have moved on from gat to bilateral agreements. Is that a good thing . Admiral stavridis it is a good thing. That rising tried of free trade float alltide does boats. I want to draw a line under the geopolitics of this tpp. It helps us with our allies and friends in the region. Issue is she corrected, taking good advice when she says she is against it because of things like not no current simulation . Admiral stavridis she has to look at the 360 aspect which is the trade balance, the geopolitics of it. Im a supporter. I think that is the right direction for us to go. Tom Phil Mattingly is in washington. And brief the now admiral on where we are with our atlantic agreement. If we are getting finish with the pacific agreement, is there going to be a corresponding agreement . Phil the u. S. Trade ambassador never gets a holiday. Right after he announced this agreement, the u. S. Trade Representatives Office noted they were coming out again and they would be meeting on the ttip. Lot more work to do. Part of the recent was the focus from the United States almost entirely was on the pacific rim trade pact over the last couple years. This was kind of in the backseat. It i do think the focus will shift to this in a big way. I do not think when you talk to the administration officials, there is a lot of confidence this will get done in 15 month. There is going to be a lot of effort expended on capitol hill in the u. S. To mystically to pass trade, the pacific domestically to pass the pacific trade agreement. They want to lay the groundwork so the next administration can get this done and a quick fashion. Tom you see it with secretary cleanse comments. Clearly political with secretary clintons comments. Vonnie today we learn more details on how Hillary Clinton is going to come out chastising wall street, and her advisor is barney frank. Phil gary gensler, the former chairman of cftc is one of the senior people involved in this plan. According to the Hillary Clinton aide i spoke to, the plans multiple elements but there are two that will be interesting for wall street. What is she is looking to transaction tax on highfrequency trading. Evoke cancellation orders purchased trying to tighten up the vocal world the volcker rule. Tom go cubs. It will be fun to watch. Phil mattingly helping out from washington. Speaking over to speaking of baseball. We move on to something odder, soccer. Mr. Blatter suspended but fifa. I think it is a majorminor. Mr. Blatter suspended this morning. We will continue with james stavidis. This is bloomberg surveillance tom good morning, everyone. Bloomberg surveillance from new york city. Right now we need to get to our news. Here is vonnie quinn. Vonnie a warning from turkeys president erdogan. He called russias military buildup unacceptable. Moscow should consider its trade ties with turkey when it chooses to fire missiles at syria. Turkey is unhappy about russian warplanes violating its airspace. U. S. Warships will challenge chinas territorial claims over part of the South China Sea. The u. S. Ships will sail inside a 12 mile zone that china claims. The move is likely to increase tensions between the u. S. And china. Fiatchrysler avoids what would have been a costly strike. Earlier today, the automaker and the United Auto Workers agreement. No details yet that the union says it has secured to the cannes gains. Workers will vote tomorrow. They rejected an earlier agreement. The union says it will secure significant gains. Republicans will vote on that first be the next speaker of the house. Kevin mccarthy is expected to win. Those lawmakers could try to deny mccarthy a majority when they fill the House Speaker vote in three weeks. And those are the top headlines. Tom very good. This is fun. The end of meeting of the imf in april in washington. And then the true and all meeting happens in october in lima, peru. Francine lacqua is in lima with an important conversation with madame lagarde. Christine lagarde comes to lima with a huge, unfortunate success, which is the new mediocre. Is that the theme of these meetings . Cine i think your are right. It is exactly the theme. People are trying to figure out how we get out of this slulmp. The growing economy is there people i tried to figure out how we get out of thi