Waiting for janet yellen. Its a quiet day on the markets, but watch out for commodities and watch out for dollar. Tom exactly. I was watching commodities today; citigroup was really talking up saudi arabia, having trouble moving oil. Really, the backstory, while you were off on your threeweek vacation, is the idea that the atlanta said lowered their gdp for this quarter under 1 . That is the backdrop, yelling those before the economic public. Francine rate. Right. It seems confusing to understand what the feds next move is. Lets get to the first word news. Vonnie good morning. A jetliner has been hijacked and forced to fly in cyprus. It was on a flight from alexandria to cairo. The Egyptian Government set a hijacker claimed to be wearing an explosives belt. 56 passengers have been allowed off the plane. Several for for flight crew are still on board. Last weeks bombing severely damaged the airports departure holes in. Brussel in brussels. It will only be able to handle 20 of the normal number of flights. The legal battle between apple and the u. S. Government has ended. The government says it gained access to data on an iphone used by a terrorist and no longer needs apples assistant. It was trying to compel apple to help; apple had resisted, setting off a battle that could redraw the boundaries between privacy and National Security. Police say a man was shot after pulling out a gun just outside the u. S. Capital and is now in critical condition. Authorities ruled out terrorism, saying they believe he acted alone. Suspect has been arrested the suspect had been arrested last fall. The president may be on the verge of a big setback in her fight to avoid impeachment. Leaders of the centrist Brazilian Democratic Party have agreed to break with her, after a person familiar with the matter. The votesecline her she needs to avoid being impeached. Global news, 24 hours a day, powered by 2400 journalists in 150 news bureaus around the world. Tom well stick with equities, bonds, currencies, and commodities. The market is really waiting on yellen in new york today. 10year, a little bit of movement. Im for. Next screen; vix, 15. 24. Thewatching german yields, twoyear and 10year. 0. 50 would be a big deal. Right, the ecbe starts buying on friday. You know it is a slow news day would we have the same data. Im looking at europe stoxx 600. U. S. Dollar, a gauge of the its theyts pairing just oneday decline as the markets are awaiting yellen speech. Tom lets go to the bloomberg. Backdrop. Last time she spoke to the Economic Club of new york about slack. Every other word was slack. 30 years of american gdp; we have shown this chart many times. Here is the financial crisis. Ive blown it up to highlight morning in america. This is back when things were good in the 80s, then here is the late 90s boom. Regression;10year we go from here to here, and this is the new atlanta fed statistic; 0. 6 . This could change. Vonnie jpmorgan is saying the numbers not just reflect the cool and Oil Industries but the profit margin squeeze, weak productivity, and that is not necessarily a good thing. Tom there is a weight to this. Francine im looking forward to the new interview. I went further east for my terminal today. I am looking at copper in china. This signal a chinese copper demand says a slump is coming. This is the blue line, paydown copper imports by buyers in china, the worlds biggest consumer. It slumped quite significantly; if you benchmark it towards demand, answers this is a complicated chart to tell us that a slump may be coming. But the market is awaiting the Federal Reserve chairs speech. We help it provides further clarity about her assessment of the economy. Lets get straight to the cc l. A. Investment management chief investment officer, james bevan. Great to have you. Are you confused by what janet yellen has been telling us . We arent sure whether their rates normalized. Well, there has been a considerable change in the temperature and direction of travel since last december. There was all that talk about r hikes. I dont say probability of recession, but we may see one cut or this year, given the poor background. And realistically, the fed might be prepared to let inflation run in order to get Wage Inflation. To wait are they going for that Wage Inflation before they start normalizing . That would be my expectation. In terms of the rhetoric that comes out of the various regional banks. Tom we show the video here of cherry yellen and her press 16 the on march idea of growth slipping away. How do you define a growth recession . As we know, t recession iswo recession is two negative quarters of growth. I dont think we will get a technical recession but there is something anticipated by the fed when it talked up the prospects of four hikes. That has now evaporated from the rhetoric. I would say we may see one or no hikes, rather than the two hikes. Tom within the parlor game of gaining monetary theory, tell me about how you look at Economic Growth. Is it fair the United States, or the united kingdom, to parse off that exports and the lead with a domestic analysis . I wish that were true. We have a current deficit of enormous proportions, and that is hugely worrying. With the Brexit Debate realistically, the u. K. Is very dependent on importing foreign , which could be a smart place to hold assets and do business. If that changes i think it would drop in the bond market will sell off. The dollar is still a reserve currency in the u. S. Dollar bond market is so much more strong and will position. Tom francine, board of the day from mr. Bevan neverendum. I like that. Francine [laughter] we will have them again and again, wont we . Francine even if it is a very 5148, the, a political machinations if you are david cameron, you must be tearing your hair out. If we were to parallel the votes on scotch independence, the scots having been told quite clearly that they were to stay, no revising the conversation on the basis that the world is changing and you have to adapt i would say a lot of the people who may elect to vote to stay in the eu will do so because they genuinely dont understand what the options look like. If it becomes apparent that there is limited traction in being able to secure a lot of people. Francine we also got some Economic Data out of japan. Retail sales and spending data. We are also expecting an impromptu News Conference by the japanese Prime Minister. What can we expect from him . I am absolutely terrified. I look at the failure of abenomics, mr. Kuroda no longer able to buy back enough bombs nds. Gh bombs i see almost no progress whatsoever in terms of the Structural Reforms and entrepreneurial spirit. Then we have him talking about another round of tax hikes. I think japan will have a decade of you whatsoever. Tom are we becoming like japan . Is the general statement of salt 2 growth with lousy inflation that looks like japan, visit . Will, it does, but i think there is a major difference tween the anglo economies in japan. I can be put down to two things, one in demographics. Positive. I they make the demographic pictures very different; japan have an aging population. The other big challenge is culturally, they see much more they seem much more prepared to put up with bad news. To get the japanese people to spend more seems difficult compared with the consumerist culture of the usn u. K. Tom james bevan. Be at the lunch. This will be very important; i will be having the chicken robert. A lot of people showing up. Janet yellen, 12 00 noon today. We will have complete coverage on bloomberg television. Good morning. Francine im Francine Lacqua in london; tom keene is in new york. This is surveillance. Lets get to the Bloomberg Business flash. Vonnie thank you. The ecb prepares to ramp up debt purchases friday; before then, mario draghi will get another chance of the gloomy outlook on inflation. Consumer prices in the eurozone fell in march for the second month in a row. Unemployment likely stated double digits. Investors they have until april 11 to submit its for its core internet business, according to the wall street journal. It includes a stake in alibaba. About 40 companies have signed nondisclosure agreements, indicating they are interested in making an offer. And a wall street executive has been arrested on charges that he scammed investors out of millions of dollars. He was part of the parkhill group. Authorities say he duped a Hedge Fund Manager into wiring him 20 million. That is your Bloomberg Business flash. Francine thank you. We have news that there was a hijacked egyptair flight. This is the latest. , the hijacker who claimed he was wearing an explosive back, force the airplane to land in cyprus and release the majority of those on board. Lets get to james bevan and john, our lee geopolitics coverage. What do we know . This man claims to have an explosive belt, but that hasnt been proven. John thats just it; we dont know that much. Of interesting thing is that it happens at a time of extreme sensitivity, and there is a temptation and you see an image like this to see that things are getting worse, but it is important to see that this happens relatively regularly. This is the 16th hijacking since 9 11 , and in pretty much all those affair ended peacefully. This isnt that rare. Francine this is terribly damaging to egypt, who is still trying to direct foreign investment, to be seen as a safer place. Is a damaging to aviation . John i think most people, im sure, will have full confidence in airport securities. This is theright, second time since december we have had incidents like this. In december, we had the bomb getting through the net, which is very rare. Certainly, this comes at the worst possible time for the egyptian tourism industry, which, in all fairness, hadnt recovered anyway. Tom the instabilities come down to tourism. People have to get on planes and go places to enjoy themselves i believe thats the word. Tourism is aime, general statement; it really has got to be depressed in some geographies. John certainly, yes. If you look at egypt, at should seen, this isve extremely damaging, but it is also important to bear in mind that it will expand. People may well cancel their vacations to egypt, but that doesnt mean they will stay at home. That money will be spent elsewhere. These instances are bad for local industries, but for the isustry in general, my guess that it wont have that much of an impact. Tom i just cyclic statistic 12 of egypts workforce is in tourism. Dont hold me to that. John, what will you listen for from chair yellen this afternoon in new york . China is thely, th key focus, from a global perspective. I have spent the last two weeks at an asian and it is interesting what people had to say. There is a reasonable amount of confidence that the economy will muddle through. From the geopolitical perspective, there is still a lot of concern about what some as chinae seeing expands its influence and reach into the south china sea, which is still causing a lot of nervousness. Tom john, thank you so much. John fraher. In our next hour, we will look worldwide. The secretarygeneral of the oecd will join us; really looking forward to that. On thelobal growth, strength of our cities. Francine im Francine Lacqua in london; tom keene is a new york. This is our morning mustread. We picked out something to do with apple. In the New York Times, with us is still james bevan. I take it out because it plays to what we heard last night, that the u. S. Government has dropped this case against apple, but there is this debate still raging about personal privacy and National Security, and there is no end in sight to that debate. Absolutely. And there is a big Conspiracy Theory about how did the u. S. Managed to get within the apple operating system when they said they would need to build a new platform in order to do this. There are different constructs that are being much discussed in the city at the moment; one is that apple should decide to help rather than going through the press. Secondly, the hacker has genuinely got in, which will clearly be surprising to federal authorities and apple. Third, federal authorities have found a mechanism to into her in a way that has not previously been anticipated. This is an old operating system, not the current generation, so apple could reasonably turn around and say we have improved security in the new version. Tom james, iss event for financial people, do we care . Well, we certainly care of consumers stop buying. There is no evidence of the most immediate data coming through that anybody is interested in security. That said, cyber security, as a global issue, is on the World Economic forums top list of major risks for 2016 and 2017. Tom my biggest problem is their software they take 7 and 10 out of your account. Its amazing what those childrens games will do. Lets go to the apple charts. Apples done pretty good over the last 10 years; here is the s p down, barely getting it done. Apple has done pretty good. Vonnie that is a rise of more than 1000 . Its hard to believe. If you look back here, the ipod was at 40 of sales. The ipod is 4 of sales. Tom the a9 chip is getting rave reviews, and some of the optimism we hear from different guests. Absolutely. We have been a buyer of apple on the basis that the stock come back far exceeds the actual reduction in the companys fundamentals. We had been keen on apple. I look at some of the other Great Companies of the states, and i see the recent pullback and a great buying opportunity. Francine where does it leave apple competitors like samsung . I think most of the asian samsungs, the ho nahis, are having a very difficult time keeping up with the local competition out of china. Francine james, thank you so much. We will be talking more about the yen. Withg up, we focus on fx jane foley. We have data out of japan this morning, and we are expecting shinzo abe to Start Talking anytime. James bevan, saying that the great experiment is just not working; they probably have to find another way out. That is a discussion will be having next. Dollar bulls remaining skittish; we are expecting janet yellen to speak later today. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. Built for business. Tom good morning, everyone. Francine lacqua in london; tom keene in new york. International relations are front and center. Here is vonnie quinn. Vonnie thank you. A hijacker who forced in egypt air jetliner to land in cyprus is described as a local. This is a coding to the associate this is according to the associated press. Almost everyone on board has been released; there are said to still be seven people on the plane. There is a report that the hijacker give negotiators the name of a woman in cyprus. Apple inctory for illegal battle that could have rewritten the law on National Security and privacy. The u. S. Dropped its case against apple after gaining access to the data on an iphone used by the Justice Department. The company had resistances last government set a Third Party Offer to hack into the phone. Millions of americans are vulnerable to manmade earthquakes. The states at highest risk include oklahoma, kansas, and texas. That is the first time the government has acknowledged socalled induced quakes from fracking. President obama called out the news media for the coverage of the president ial campaign. The president spoke at a journalism awards dinner in washington. One of my great regret is that the tone of our politics has gotten worse, and i will take over responsibility for it and i wont take all the responsibly for, but i will take some of it. Vonnie the president didnt mention donald trump by name, but he made it clear he was talking about selective coverage of the republican frontrunners. Are sharks after the islamics estate hits the antiquities in the asian city of palmyra. Officials tell the New York Times that 80 of the ruins are intact. Syrian troops recaptured it from the Islamic State over the weekend. Global news, 24 hours a day, powered by our 2400 journalists and 250 news bureaus around the world. Francine thank you so much. Were getting shinzo abe, the Prime Minister of japan, talking at a News Conference, after we have data from japan on spending. Earlier this morning, he did say they will raise the sales tax; quite controversial. Unless there is a huge amount like Lehman Brothers or some kind of earthquake, he says he aims to achieve the same wage for the same work. Hes talking about next years budget, saying it will help ensure a strong economy. Lets get back to james bevan from cc l. A. You were skeptical about shinzo abes next move. Absolutely. Francine he called a News Conference; this was unexpected. He is kind of painting a picture do you think he capitulated, that he is saying there will be low growth that we have to accept it . I think it will go back to what the bank of japan has been doing. It again quantitative easing years ago, a price keeping operation to the bond market. But we are now running out of bonds, and that is why i think authorities are recognizing they have a decade of low inflation and growth, very little they can do about it other than to keep the population going to ensure the demographic time bomb does not deliver very difficult consequences. Francine for james, governor kuroda but james, governor kuroda says he could go into negative territory. I think that would be a major mistake. The big chal