The map but every elite in the world does. This tax haven story is really remarkable. Caroline absolutely sensational, so many months in the making and embroiling presciently as well as the islamist Prime Minister. 10. 3 is your number for the eurozone unemployment, the lowest since 2011. Clearly showing slow but steady improvement in the unemployment level of eurozone. 10. 3 still a high level but overall we are improving. Bpi is getting Producer Prices and they are getting coming in, still stagnating. Tom as we start the Second Quarter, but difficult economic. Unemployment in europe versus the United States is something. Here is vonnie quinn. Vonnie our flights are scheduled to leave the Brussels Airport a day after it reopened. Only three flights departed yesterday. The Brussels Airlines has flights scheduled to the u. S. And africa. He has of damage caused by the attack on march 22, they have 20 of their normal passenger load. Linked to2 members the paris and brussels attacks are still at large. Officials told the journal that many of the suspects have been involved in previous Islamic State attacks. British Prime MinisterDavid Cameron is denying the referendum over eu membership is splitting his government. Cameron accuses reporters of getting overexcited in their hunt for political division. His culture secretary argued increasing the minimum wage would drive up immigration and less the u. K. Leaves the eu. Azerbaijan has cleared a cspan a ceasefire after fighting azerbaijan says its forces have responded to provocations by armenia. Are fighting a war over an area after the breakup of the soviet union. A new report says world leaders, criminals, and celebrities use shall companies to hire their wealth. At least 2 billion in transactions involved people and companies linked to vladimir putin. They say their information comes from files from a law firm and panama. Head of arview, the major russian owned state bank dismissed the allegations as nonsense. Yellen said mr. Putin was involved. It was not his name registered. Some people say he has certain offshore business. What is wrong about this . Kremlinlast week the accuse journalists of preparing a time an attack on putin. I am vonnie quinn. It dwarfed wikileaks. Tom thats been we just heard from the good gentleman at ctb, it really shows the tb the tb vtb. Vonnie a big tied to the u. K. As well. Tom we will have to see how that goes. We will have much more on bloomberg throughout the day. Let me get the data check started on a monday. Where are we . Not much going on here. Crude oil i would notice, cannot find a bid. West texas bears close scrutiny. On to the next screen. The vix, 13. 10. The dow, i am still not on record dow watch but nonetheless we grind higher in a punch bowl is full kind of way, 17,792 on the dow. The yen will be front and center today, 111. 54. Caroline, tell us about your data check. Caroline we are tentatively in the green in europe. Remember last weeks selloff . Today we are being led higher and seen by some of the main telecomsgroups, but down 9 10 of a percent. This is what happens when consolidation does not get through. Down goes the telecoms sector in france. Look at the greek government debt, yields spiking up 20 basis points, the worst day in two months. Leaks we the weeks are seeing an wikileaks. Tom we now bring the show to a complete halt. How do you say that . Uyges . Bouyges. There is about 17 consonants. Where is the french Francine Lacqua when you need her . Tom it is like the china. You learn something new everyday. Really on the litmus paper for the global system, were, leave a lena komilev. Evaluation,lmost and here is a little bit of a rebound. It puts to scale how much this yen is strengthening, yen versus dollar. Vonnie five currencies, yes trillion dollar and canadian dollar. Tom they are all mixed in. Caroline, introduce our first esteemed guest. Caroline you are just teasing of her, lena komilev. She will be with us for the hour. Always great to have you on the show. We were just saying that yen strength once again. We have seen calls going out from Goldman Sachs saying the running an asian currencies is over and you will see each stimulus from china and japan and now it is time to start shorting. Do you agree . Lena i think it is a sign of our initial times that three of the worlds major Central Banks are at the opposite end of the inflation curve. The ecb and boj are worried about that deflation where is the number one central bank of the world is worried about exporting a global uncertainty, so it is a sign of how unbalanced the Global Economy as. Weakness hasens been so unrewarding with respect to inflation. That the mj do little about the environment but it is an environment where there is little leverage. The result is, in fundamental growth, underges inflation. Terms, is guys were just saying, the markets are driven by momentum. That means that the next swing and the market risk cycle is just behind us and we are just seeing the greek debt this morning. Caroline look at the ongoing weakness in the u. S. Dollar. Is that substantiated . When you have the likes of not just pimco but blackrock all worrying about inflation, they are saying get into tips, get into treasury protection on inflation. Do you agree . Lena when is the uncomfortable matrix as we have seen a powerful decline in the u. S. Employment rate and the u. S. Is running out of Production Capacity that it can exhaust and recovery while Global Growth is slowing down. Consider to be an adequate test of the Global Economy, clearly not in the world today. Tom li na, i love what you did in the report coming off the jumble of the First Quarter news. Lets bring a quote. There are no signs of runaway excesses building in either u. S. Growth were domestic inflation. Herein lies the dilemma for the fed. Stagflation . A, a 25 basis point rise is not going to make much of a difference in the context of the strength of the labor figures for the last course and at the end of the day, the u. S. Labor market is stronger now to container its decline in Unemployment Rate or Rising ConsumerIncome Growth as more people rejoin the labor flanks. It is an environment where we do not know whether the u. S. Labor markets are Strong Enough to protect the economy. Tom i like they do not know. You filter in all from cross asset, equities, bonds. Quarter, the second how full is the punch bowl right now . Did yellen last week in her speech, is the punch ball full to the brim or are we becoming more adult as we get into this quarter . Lena this is really the question because i think the focus of the market and the fed has transition very subtly but importantly in the last several weeks whereby the process focus is not so much on the strength of the recovery but the stability of the foundation. The topline line of yield an attitude of growth for the bottom line of how structurally sound this recovery is. The markets are saying there are some signs of caution here. That means that ultimately we are still in an environment that is quite shock prone. We have geo financial, geo economical and balances. And slowdown in china is competing with a very difficult deleveraging in the eurozone, and the u. S. Is very much on its own. That is unsustainable to the extent of strong dollars tend to coincide with high volatility. Tom one of the Big Decisions we will here is the currency market and whether the dollar over the next 90 days, do not forget brexit as well. Coming up later, oil is weak this morning. Oil, not a supporter, key support, but nonetheless eight difficult week a difficult week. Usy chilling will be joining very chilling will be joining us. Caroline welcome back, im Caroline Hyde in london and tom keene in the work. Our Bloomberg Business flash, here is vonnie. The British Government will not rule out a temporary nationalization. Secretary does not think nationalization is the answer. Last week he said it is considering a sale of its u. K. Seal Division Steel division. For the six times and less than three years on that will conduct a recall of its bestselling company. The are recalling more than 83,000 cars. The problem, a power stealing steering defect. France, that is hope for a reduce in the position and the french wireless market. That is our latest Bloomberg Business flash. I think they are trying to trip me up this morning. Isnt orange or orange . Caroline, help us. Tom it is a Rosetta Stone moment. Uyge, lagarde would be laughing at me. Lets get a First Quarter briefing on what is going to rise just drive me nuts over the next couple of days, that is brexit. What did we learn about brexit in the First Quarter of this year . Lena i think the markets are still not reflecting the risk that are commensurate to the economic state because there is this sort of rational assumption that at the end of the day, it does not matter how close the if it is fairly stable we are going to get a stay result from the referendum and that means that things go back to normal. Not so, im afraid. The Bigger Picture is that in the u. K. , the world beyond the borders of the eu theres this drive and National Policy towards isolationism and protectionism to the result is that Central Banks or sort of the only guardians of International Financial security stability around. Tom i like how you put that in a was working on my new book list. I am doing a book list on amazon. I put ian bremmers book on sero. About g did we get more as we wandered into 2016 . Lena i love this, you are talking to mrs. G plus economist and you are talking about g0. I am worried about you globalization, is what i think you are alluding to. Whether 2015 was about grexit and now about brexit, there are calls about referendum from spain to germany. In financial terms, we have seen the end of globalization and capital flows with this massive accidents is of investments from emerging markets. In economic terms, we are seeing global trade flows the lowest level since the Global Global recession. Im worried about this g0 world because it is a zerosum game, a negative sum game. With us. Komileva coming back, we will speak with angus blair of the segment institute. After an important interview with the deputy crown prince in saudi arabia, angus player on egypt, on saudi arabia. Stay with us, bloomberg surveillance. Tom within the quarter, brexit, london, look at that. What a gorgeous shot. Congratulations to our technical team, that is a spectacular shot. Our new Office Building in a year and a half is off to the right side. I am tom keene in new york, Caroline Hyde noticing the gorgeous shot, she is in london this morning. An important conversation, john nichols weight in conversation last week with the deputy crown prince were saudi arabia, we thought we would get a more holistic middle east perspective. Angus blair owns that watch and he is in cairo with segment institute. Segment institute. Angus blair, what is the fear, the ancient fear that riyadh has of tehran . Mentioned, new in terms of the development iranmically spurred on by being brought into the full with the nuclear deal, as well as the spreading of a kind of proxy war across the region in iraq, in syria, in lebanon to an extent, and definitely in yemen. There is a geopolitical shift along those lines and certainly religious lines. Tom i look at the response that we will see from saudi arabia. Depending on what oil does, i understand that. If oil is stable and finds a trading range as many suggest, how will that change the relationship in the middle east of saudi arabia and iran . You have been mentioning this already this morning, the iran ist watching what doing in terms of how much oil it is pumping. More oil out despite low oil prices. What you are seeing now is a proxy fight, weathers whether you see it geopolitically or in terms of the oil field in trying to maintain the ownership, trying to determine the price. It is not an efficient work, economically or militarily but it is something that riyadh, the deputy crown prince resetting the way it is in. It is phenomenal transparency that we are trying to now gauge of saudi arabia. A Seismic Shift going in on in terms of the economy. Tell us if we are an investor, and its a net i know you spend et, will i beign wanting to get into saudi aramco anytime soon . With we talked about this the team in december and i think again in january. A considerable number of ipos in the market, because governments need to raise finance. Aresaudi arabian government having to make a change because of the oil price and the budget deficit, so we are going to have ipos. I think the expectation for an is highlysaudi aramco optimistic, given the changes that have to be done internally, but it is doable. Tom angus blair, thank you so much. It really goes to the heart of this new kind of capitalism that we may see from the saudi royal family. I urge you to look at this story. It was not a video or taped interview for with the crown prince, but important issues coming up over mr. Mikel plates interview. E will look at Oil Last Week and into this week, it is the lead to global story. Deal, butc, not a big nevertheless once again oil cannot find it big. 36. 69,xas intermediate down 11 . 11. Caroline welcome back. Bloomberg surveillance. Caroline hyde in for Francine Lacqua. Lets get to vonnie quinn. Saudi arabia is planning the biggest economic shakeup. The measures are outlined in an interview with Bloomberg News. The saudis would speed up subsidy cuts. The measures are aimed at raising 100 million per year by 2020. There is talk that greece could be pushed into the full and out of the euro area. The Prime Minister has not made much drug rest in talks progress in talks with creditors. Tighter security on french trains. Armed marshals will be passenger trains and they will be allowed to shoot if necessary. Amtrak plans to restore train crashe after a fatal disrupted travel. Two workers were killed when a construction tools that were left on the track. Kasichtrump says john should drop out of the race. Cruz show trump trails ted in wisconsin. Bloomberg news, 24 hours per day. Im vonnie quinn. Caroline thank you very much indeed. We have to check out what is happening in the oil markets. Continuing to see Oil Trading Lower today. We have a buildup in bearish bets. Good morning. Caroline he spent six years at the International Energy agency. Harry i did. Caroline give us a sense. Is the rally over . Are we done . Harry i think we were almost done before the saudi announcement. The fact that they are reasserting conditionality puts a nail in the coffin in terms of the rally. We are going to end up with a lot of production anyway. For the market, that is not very constructive. Caroline are we just going to stay within this trading range . Is there a lower bound . How much will the supply glut continue to push lower . Harry our view is for a 30 floor. A range between 30 and 40 seems to be reasonable. Tom harry, i want to bring up the oil chart. Where is support on brent crude . Recentlyad lower highs. I know we are not down to record lows. Head a point in your where is the tip point to lower prices . Harry what we are really looking at is where the two dollar differentials to wtis. We think that brent could fall to 33. Tom i like that. How will that reinvigorate the oil debate . In thell be the new new Second Quarter if we enjoy 33 brent again . Harry all eyes in the market are going to be looking at company earning reports. How much will be slashing capex. The first indications for this year are quite hefty. Average, 25 globally. If the Oil Price Falls back to the lows we saw just a couple months ago, that idea of how much reduction is going to take place is going to be pivotal. The phrase is creative destruction. Creative destruction had we had so far . Harry i think we have had quite a bit. When you think back at when all of this started, when saudi arabia implemented a new supply strategy in 2014, the long game for opec was to crowd out the higher cost producer. We have had lower prices and significant cutbacks on expenditures. Oil companies are really looking to retain cash and pay dividends. In hereant to get lena because of time. Benefit to europe . Where is the benefit to the United States . Lena i think you have nailed it. It is all about creative destruction. The markets will move to a more constructive balance with destruction and supply capacity development. Point, im this worried about the fact that oil prices are both a testament of the fact that we have no return and,safe haven investments secondly, that week oil prices have been symptomatic of the whiplash of deflationary asset prices because of lack of liquidity of cash flows in the highyield credit sector, in particular. When you have too much volatility in equities and not enough return in the negative yield world, you are squeezing investors into parts of the credit market that are more shock prone because they are beyond the reach of Central Banks. Im concerned about Financial Stability in these markets. We want to get to a more stable financial sy