Selloff in oil prices. All the major averages are the work of the dow is only off by. 2 . The nasdaq and s p are almost and i get this point. You have seen the bounce weve seen off the bottom. Oil prices indeed are lower today. They made an attempt at going higher fight. 5 . Since then they have turned over by 3 . Analysts are forecasting another build in inventories. Gold futures are higher very, very slightly. There is bit more of a risk off sentiment in todays session. We are seeing buying in treasuries today. That is sending the yields lower. David julie, we are going to talk about this in a moment with Oliver Renick waiting in the wings. Julie it is a little bit unusual, because on days that ive been down days recently, big cap tech has been leading the way down but that is not happening today. The socalled fang stocks are strengthening in todays session. Not a lot of catalysts here. Just seems to be a bit of a 100, within the nasdaq percentagewise the best performers dont seem to have a catalyst we could find it walgreens is trading higher, and cosco. These are relatively big percentage gainers in the index. That is why the nasdaq is doing a little bit better today than the s p 500. Tracy thanks so much, julie. I wonder if the fang stocks are going a little long in the tooth now. [laughter] sorry, sorry. Mark crumpton has more from that is the news desk. Mark it is primary day again. The biggest date is michigan. Donald trump has a doubledigit lead but there are signs johnson k sick john kasich is gaining ground. Paltrow Bernie Sanders is still doing better with younger voters. Hillary clintons lead over narrowing tos is two points in a national polls. That is according to a new wall street journal nbc poll. That is compared to 24 points in january. Mrs. Clinton leads sanders by seven points, 4942 , compared to a 19point advantage in january. Attorneys for the utah chapter of planned parenthood are challenging a court ruling that unless the state governor to block funding. They asked the federal Appeals Court to overturn the ruling them are doing the organization is being wrongly punished over the controversy videos reportedly showing employees from another state discussing fetal tissue from abortions. No word yet on when the judges might rule. The u. S. Government has appealed apples win in a court battle over unlocking an iphone. The judge ruled that apple did not need to cooperate. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. David, back to you. Welcome back. David thanks so much, mark. Earlier today on bloomberg tv, a guest was pointing the finger at the upcoming election. That is a detector that just feels the uncertainty in his current election environment. We are talking about it with our clients every day. It is impossible to predict what is going to happen and what the outcomes are. Ultimately they go back to diverse vacation. Diversification. We are not trying to predict the outcome. Were just saying to stay diversified. David Oliver Renick joins us now. Im curious, because the length of this campaign process has been unprecedented. As you interview people, are they saying that the elections are playing an outsized role compared to the past . Oliver it is hard to quantify that but it has been going on a long time. It is hard to ignore it. When you have any kind of event that brings a certain amount of uncertainty, to have to address it. Will the seven impact come, and at some point will we have to take an assessment of what this means is this person gets elected, prison b gets person b gets elected. There are things in a market that have much more of an impact on fundamentals, whether you want an exposure to risk assets, and that is what is driving the day to day. I think day today supports the idea that this election is not having a huge impact on how trading happens right now. If you look at the caucuses, the big ones, you dont see huge moves. Tracy well, if it is not politics, talk to us about what is weighing on investors minds we have seen. Stocks selloff part of it today. Oliver some stories have changed from recently and some stories are very much the same. If you look at what is losing today, you have energy, youve got materials, you got industrials. That is kind of important because those are the sectors that have actually done pretty. Ell off the february 11 lows those are the ones that people are gotten into and got up over the past week or so. Especially the energyrelated stuff was to a good degree short covering. How long can that last . Maybe we are starting to see that fate off a little bit. The Short Interest in those sectors was building up as they were getting covered. You have the same story on some of these very defensive sectors. Staples, utilities, telecoms, those are doing well today, holding up the market. That is the way it has been since the start of the year. David information about chinese exports fell the most in six years. What effect is that having on the market today . Oliver i think he definitely has some effect, and usually , weaknessve poor data from china, that translates into some kind of pressure on u. S. Equities. Is that because we depend a huge amount on china . It is really not. It is not a huge portion of revenues. What you have to do is take the seconddegree sort of approach. China slowing down, countries are rounded going to slow down . What is that mean . It puts a little bit of a toll on investor sentiment, especially when you look at a couple of the biggest routs and the possible use, they usually surround some surveys from china. Tracy you mentioned the safe haven story. I feel like we have to mention the yield on the japanese government on, especially the 30year in which is getting below half a percentage point now. How much does that feed into overall risk sentiment . What is that an extension of the safe haven bid . Oliver if people have actually paid whether money somewhere and are not going to get anything, or in some cases have yielded negative, just how frightened are people . Wouldnt they rather take their cash and put it under the bed . When you give the central bank policies, especially what is going on in japan, the extent types of numbers on yields, extreme types of numbers on returns, you are getting into an area that able are not familiar with. What are going to be the ripple effects of this . Youere was very novel when have the Interest Rates low for so long. The question is not whether the economy is doing poorly but do we know what is going to happen next . That is where you have the insurgency coming into play. Tracy oliver, thank you so much for talking stocks. Coming up in the next 20 minutes of Bloomberg Markets, conversation with the ceo of lending club. Can a company fend off mounting competition and bring in much needed boost to its shareholders . David the race for the white house continues across america. What is up for grabs in michigan and mississippi. A Politics Team says dont countdown john kasich just yet. David welcome back to Bloomberg Markets. Time for the Bloomberg Business , the biggest business stories in the news right now. Forcedn media could be to Tribune Media could end up having to sell its whole assets. It is more likely to sell itself in pieces, according to people familiar with the matter. It has hired Guggenheim Securities to explore options. Of 7 enterprise value billion. California bonds are back on the many market. State is selling 2. 3 million of general Obligation Bonds today pit it is the biggest bond sale any year and a half. The state is reaping gains from tax increases supported by the governor, real estate revival, and growth in the technology industry. London shares of burberry are surging today. There is speculation it is setting up for a possible takeover. And mr. Investor took a 5 stake. Industry investor took a 5 stake. Tracy we are going to head over to our markets desk, where julie hyman has more on stocks trying to claw back some of their losses. Julie it looks like we are at the highs of the session again. The dow is down by three points. Just wanted to mention that. We talked earlier about how the nasdaq is over performing today, not to mention the fact that the dow is over performing, but midcaps also bear mention. They are to the downside, underperforming today, excuse me. Down by 1. 2 . Want to point out some of the worst performers within cap within me cap. Boston beer was one of them. It was downgraded on increasing competition. This is something boston beer talked about in his recent earnings report, off the declines in the cider business, and the depreciation rate may be worse than estimated. We are seeing a big pullback, as we talked about them in some of the miners today, and u. S. Steel is a midcap example. It has risen recently, a big rally on iron ore and the imposing tariffs in the United States on exports imports, rather, of steel. Shares down 9 . Sticking with commodities, we have been seeing a downturn in many of the energyrelated space. In the midcap all of this said, the midcaps year to date, they have outperformed. 3 of 1 . Im getting my under and over and all i dont know. David thank you, julie. Tracy if you cant beat them, then join them. We got a peek into jpmorgans new tech hub in manhattan. It is increasing startup life to fend off Silicon Valley embracing startup life defend off Silicon Valley foes. The grass isnt always greener on the other side. Lendingclub has come under pressure to show that it can fend off mounting competition from rivals startups and continue growing. Shares have halved since the company did its ipo in december 2014. Joining us now to discuss that in San Francisco is the founder and ceo of lendingclub, renaud laplanche. Thanks for joining us. Renaud thank you for having me. Tracy speaking of the share price, we have seen it come down quite a lot since the ipo. What do you think about that . Was the ipo done it possibly be wrong valuation . Renaud i dont know. We are not forecast on shortterm credit valuations. What were focused on is establishing the market play as a more efficient way to deliver consumer credit, one that generates better value for our customers, and that generates better customer experience. Customers, over the last several years. We want to really grow the company potentially since the ipo i think we are twice as big now. We have doubled our revenue. S Performance has been outstanding since the ipo and we are looking for to continuing to execute, i think over time, the stock price will take care of itself. David as the public and investors have become more interested in Online Market lenders, so, too, is the federal government. Breaking new rules yesterday, the Treasury Department wanted to work with this industry on. Ew regulations as you have those conversations, what are the rules you are most fearful of being implemented . Renaud yeah, so, when i think a lot of people dont necessarily theeciate is the fact that Consumer Protection types of regulations in banking already marketplace. E all the loans will enable are these bank loans where consumers get as much protection as we do when we take the loan from any of the major banks. The kiev didwhat interested in is a lot of the things we are interested in, making sure that consumers understand the terms, that we have a consumerfriendly offering that the terms and the are disclosed prominently, and that we make it affordable for consumers. The main case for the platform is to pay off the credit card balance that carries Interest Rate of 70 , 18 . We help consumers refinance at 12 . It advertises every month amortizes every month. The way we approach consumers and the mindset, making credit more affordable and transparent, goes exactly in the direction that regulators would like the industry would go into. Tracy renauld, we have seen quite a few analysts worrying about a return in the credit cycle. You recently raised the lending rate with borrowing rate makes these me for the riskiest borrowers on your platform. Is there rising to link with the behind that move is there rising billing with the behind delinquencyrising behind that move . Renaud there is no actual sign of the u. S. Economy slowing down , but we also see in the Capital Markets being quite turbulent in january and the early part of february. We want to make sure we go through the next few quarters with submission Loss Coverage sufficient Loss Coverage for our investors in case the u. S. Economy does slow down and credit default start increasing. That is the rationale behind increase in Interest Rates. David but how concerned are you about dealing with these in particular . There is the macro look about how this would look for the economy writ large. Are you concerned, given the current state of the economy . Renaud we always worry about es, ensuring that credit performance continues to be what it has been the past several years, continues to be predictable and delivering a great return to investors is always what we worry about. As we sit on our earnings call, broadbasedseen any devaluation even in our own portfolio. Tracy you mentioned the volatile markets at the beginning of the year, which they definitely were. What are you doing with Funding Sources to diversify and prepare for volatility in the market . Renaud i think the marketplace model is really showing all of its power in times of just turbulence in the Capital Markets. Lendingclub in particular has funding. Diversified 55 of the funding comes from regional investors, really no direct exposure to Capital Markets. There is another 2025 coming from banks. It tends to be a lot of Small Community banks and also a very stable in terms of Funding Sources. The remainder tends to be Institutional Investors that have more direct exposure. The diversification is really one of the main assets of the marketplace model, and lendingclub in particular, in terms of our ability to dial up or down any given source of funding given market conditions. David thank you so much, renaud laplanche, founder and ceo of lendingclub, joining us from San Francisco. Still ahead, the Malaysia Club is under investigation and the former Goldman Sachs banker at the center of it all. Authorities are turning the focused reformer Goldman Sachs banker in their investigation of a malaysian investment fund. That spring in our financial concert that lets bring in our Financial Times reporter keri geiger. They were issuing funds on behalf of the fund . Keri essentially, goldman was the conduit for this fun that was supposed be used for infrastructure and investment projects and development within malaysia. They were the Investment Bank on this. They raised over 6 billion in bonds. And then that money went back to the malaysians and into the fund. The key question of this investigation was any of the itey that went back into embezzled or kind of used for illegal purposes and moved around without permission or proper protocol . Tracy what is the doj looking at exactly here . Keri they are looking to see if there are any issues with embezzlement out of 1mdb and whether the money was moved and illegally. They did issue a subpoena to mr. Liessner. Although it appears right now that the issue is a broader investigation with the fund er. Her tha with mr. Leissn david what can the doj get from mr. Leissner . At this is unclear point that typically in these situations it can be anything and everything. Whatever information the person might have on the party they are working for. It really could be anything at this point. Tracy what is this me for Goldman Sachs . What does this mean for Goldman Sachs . Is this a return for the reputational issues . Keri it is something goldman is going to deal with. They have hired an outside law firm that are looking into it and you see this with banks a lot when they work with emerging markets. Sometimes there is blowback. I think it is important to know that it is not really clear if goldman or its employees did anything wrong. David the allegation from parts of malaysia is that this could be politically motivated. Keri absolutely, and pundits that started is because the Prime Minister, big fan of 1mdb, set it up, a lot of his opponents said the funds were misappropriated. This started a global accord you had the u. S. , singapore, switzerland, among other countries looking to see what happened with the money. Tracy ok, bloomberg reporter keri geiger, thank you so much. Commodities rally seeing a pause. Will the outlook remain bearish . From bloombergs World Headquarters in new york, im david gora. Tracy and i am tracy alloway. This is Bloomberg Markets. I want to get straight to julie hyman because we have news on Lumber Liquidators. Julie reestablish short and what he calls a meaningful short he is making these comments at an investors conference. Now down by nearly 11 . Lumber Liquidators Holdings they had its struggles. One of the folks who did the story originally to 60 minutes expressing concerns about formaldehyde in Lumber Liquidators products. The stock collapsed after the report and has been down ever since. We got the all clear from the cdc, which then backpedaled on the allclear. Basically, the stock has been struggling for quite some time and this is the latest step back. David ticker ll for Lumber Liquidators. Mark crumpton at the news desk. Mark Vice President biden said today do not even conservative icon Ronald Reagan could win the republican nomination for president. Biden lamented what he called americas petty, venal, and mean politics during an address in a divided mitt romney has been recording robo calls for republican candidates john kasich and marco rubio. He does not endorse either candidate but makes it clear his intention is to stop donald trump from winning the nomination. He says it is important to elect a candidate who can defeat Hillary Clinton. Voters in it 4 states are casting ballots today. Many people who opted to go without Health Insurance last year are paying a hefty price as taxis in. H r block reports that finds have more than doubled for people who failed to enroll under the Affordable Care law. The taxpreparation company says that among customers who owed a penalty, the average find is 383, compared to 172 for 2014. Malaysia is marking the second anniversary of the disappearance of that boeing 77. The countrys Prime Minister says the government is committed to solving what he called the agonizing history of flight 370. Ships looking for the plane are scheduled to finish searching the section of the southern indian ocean the middle of the year. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. I am mark crumpton. David . David commodities markets closing in new york. Lets look at todays biggest movers, starting with natural gas. Choppy trading as the outlook is cut for one million british thermal units. A warm winter and continued high production. They cut the forecast for gasoline prices, one dollar 98 1. 90 a gallon. We will end with oil. Crude is down for the day. The market saw significant rally on the news that china will leave it is selling at 39 a barrel. Tracy our next guest says the takeaways in the oil rallies that the rate hike is still on the table. I want to bring in colin fenton, managing partner at blacklight research. Walk us through your thinking here. We have seen a lot of people doubting the commodities rally recently. Colin i think that doubt is justified. Lets not get too excited about a 19 move in iron ore in one day. That is obviously some short covering. Lets review the history. When there was an 80 chance , when i hike in march look at the terminal, it is now about 8 , now we have a gold rally, oil volatility, and a copper breakout. The risk is higherthanexpected. Tracy what does the gold rally actually tell you . This is something about inflation . Colin i think so. It says the fed is behind the curve. My former colleague bill dudley, if he cared about my opinion, i would tell him i would be careful about this message of oil price volatility. When we look at brent volatility, 75 realize annualized in the month of the brewery. In the month of february. When you see that can volatility it is saying to be where there is a breakout coming in cpi. David this is an area in which we cannot many existential debates about the role of central banks. When you look at the fed and what it can do to forestall or stop the volatility in oil prices, what could you do, as you see it . Colin the key question is confidence. Lets go back to 1979. Why do we think paul volcker is the greatest central banker in the world . He understood that slumps are inevitable. We are in a slump now, that is not in doubt. The important thing is to give a confidence from the central bank back to businesses and the consumer. A negative interestrate policy does the opposite, and paradoxically, raising rates from even if it risks recession, would actually increase confidence. Tracy i think a lot of investors would disagree with you on that point. David Equity Investors definitely disagree with me on that point. You can get 120 earnings on the s p. The question is what multiples you attach to that. Equity investors have said 17, and 15 is cheap. That is how you get his range from 1800 to 2000. The real range would probably be closer to 1015. You could have a flash in equities even as oil and gold prices sprint to the upside. David lets talk about chinas role in this. Still acute elephant in the room, chinese demand. A huge elephant in the room, chinese demand. Colin there are two kinds of chinese demand. There is the actual consumption of those commodities. But with on todays that copper on oil imports in china were off the charts. Copper was up 50 , crude, 8 Million Barrels a day. That is about one million above trend. The entire surplus in the oil market globally is 750,000 barrels per day. Here is monthtomonth swings that are bigger that the entire surplus. That is how you get a lift in oil prices in the short term but beware what happens a month from now. Tracy where do you see oil prices in the longer term say, 15 months . Colin the equity markets tell us likely that that we need this for the markets to survive. As you are interestrate policy created a bunch of Zombie Companies that are Walking Around and the zero Interest Rate policy created a bunch of zombie committees that are Walking Around and need to be restructured. And this is precisely what the volatility is telling you. I would expect to see 50 50 to 16 can even if there is a consumer recession. David when we talk about instability and volatility, how are we seeing that affect other parts of the economy . Colin the entire conversation is a little bit crazy because when i look at the fed, it says we are datadependent. In particular our target is 2 inflation. Cpi ins the january energy . 2. 2. It was breached two months ago. You have to say a 50 possibility of a hike on march 15 and that is not inequity markets today. Tracy your point is about the credibility of the fed. If it is data dependent, should be raising rates. Colin how often have we heard that . They could get credibility back swiftly. If they raise rates i guarantee you it will have commanded fear, respect, and acquiescence. David colin fenton, managing partner at blacklight research. Ing up, are these that was are the establishments efforts to stop donald trump working . Decision in did the france give prosecutors the power to force Companies Including apple to unlock a group to data . David amazon putting bad workers on blast. We take a close look inside the company. David welcome back to Bloomberg Markets. We focus on politics. Tates have primary contest mississippi, michigan, idaho, hawaii. There are 188 democratic delegates up for grabs in michigan and mississippi. For republicans, donald trump is in first place. Lets bring in Bloomberg Politics managing editor Mark Halperin live with us in las vegas. Good to see you. John kasich the last debate i believe it was the last debate, there have been a lot of staking a lot on michigan. He all but said michigan is his home turf. How is he doing in the polls . That muche is not pulling data but what little there is, based on what the campaigns are saying, the debate performance and his emphasis on the state has allowed him to rise. Does that mean second, strong second, third . We just dont know. It would be great for him to go into next week with momentum, not just for his home state of michigan, but for illinois, neighboring state, as well as the overall sense that he is a player in this contest. Tracy give us a preview of the michigan primary. What are you expecting . On the republican side donald trump is expected to finish first. But in the wake of trumpS Performance in the same debate and stepped up efforts to get those in the party who are not tied to them to think about the importance of turning out the vote, there is the prospect that trumpS Performance on saturday in at 4 contest, where in no state did he finished as strong as people thought he would could be affected tonight. We expect him to being now or in the public polling. If the exit polls suggest people of turned against trump andtwas the other candidates in the waning days of the race, that would be an important factor psychologically and practically. On the democratic side, Bernie Sanders, i wouldnt say it is his last opportunity but it is an aborted final opportunity for him to prove he can compete with Hillary Clinton in a Big Industrial state with a diverse electorate. David interested in his ongoing fight between the establishment and donald trump. There is a cant today by david brooks in the New York Times called its 2 00 a. M. , the bars closing. Key is putting a lot of faith and a rubio miracle, that he will pull off in his home state of florida. He is saying that ted cruz is not the man. He is smarmy and oleaginous, aware that only david brooks would use in print. How is rubio looking Going Forward into the contest . Mark it is widely believed that if he does not win that state next week he will have to leave the race. Hand, expectations are so low for rubio that a win in his home state would prove a huge psychological boost, not just to him, but to david brooks and other people in the party who do not want to see the finalist in this race to be trump or cruz. That leaves john kasich ive been saying for a well that he is an undervalued stock because he is better position to win his home state week from today than rubio is to win florida. If rubio loses and ich winces, we would see a contest in ohio. Tracy is he pulling out all the stops . Mark he spent a lot of time in his home state. You would think he would not need to fight for it, although ted cruz did something of the same thing in the waning days of the texas primary. He is on television with advertisements and his allies are also advertising, trying to take trump down. There is a public poll showing him having cut the lead to 8, which is a landslide if it hold up that way, but the trendline is not good and rubio needs to figure out a way to do well in a state where he has only been elected statewide once, to his senate seat. He does not have long, enduring ties to the state the way many senators do. David Mark Halperin joining us from his perch above the maras in las vegas. Do not miss with all due respect tonight on bloomberg television. They will have an interview with the chairman of mississippis republican party. It is International Womens day so lets turn to the topic of equality in politics and the workplace. Stephanie ruhle recently interviewed Melinda Gates of the bill and Melinda Gates foundation and they talked about efforts improve the lives of women worldwide. Female we want to see role models at all levels of society. You want to see them at the corporate level, board rooms, as ceos, in the government, nonprofit sector. At the end of the day, when you are electing the next leader, you have to elected them based on a platform and what you believe in them. I have seen amazing men justin trudeau, Prime Minister of canada, doing Amazing Things for women right now and someone like Angela Merkel in germany doing fantastic thing straight you can be a man or a woman and be profemale policy and probusiness. Stephanie john kasich said we needed to get women out of the kitchen to help the campaign. Now, he said this in 1978, but it is true, many women are leaving their kitchens. Do we want jobs that require 40 weeks of traveling a year . Melinda i think we need to be honest that Women Deserve many should decideey for themselves what a fulfilling life is, whether it is in the u. S. , western europe, the developing world. Many people want to be there to care for their children, care for the elderly. That is fantastic. Women will also tell you that the feel fulfilled when they get to work. We just need to make it easier for them. Part of what im using this annual letter this year is to talk about all this unpaid work that women do at home, and let us name what it is. Put awork, and we should tag on that and say lets measure that you know gdb, because particularly in the developing world, women will do five more hours of work a day at home than men. Katee sackhoff of the economy. We want to make sure that women reach their full potential and have those choices available to them. Name the work that they are doing at home and the work theyre doing in the workplace, and redistribute it some. Stephanie you have written the letter. A year from now, how will you measure your success . Melinda if the world continues to get better for women all over the world. Part of collecting the statistics, which we are starting to do at the foundation, is to say is life Getting Better for women in tanzania on a whole host of measures . Is it Getting Better in europe . Is it Getting Better in the United States . Our women having entrepreneurial success . Are women getting to do what they want to . Tracy that was Melinda Gates talking to stephanie ruhle. Time for the biggest business stories in the news right now. 2 United Continental holdings are battling a change in the airlines board. They are nominating 6 candidates for the board this spring. The 2 firms owned 7 of United Continental stock. They are frustrated with the airlineS Performance and blame the current board. Owners of Small Businesses are less confident in economy. According to the National Federation of independent business surveys, Small Business optimism fell last month to its lowest reading in 2 years. Six of the 10 indices in the report decline. Barclays is shrugging the size of its Investment Bank. In wants to do the same thing to its office space. It is in talks to sublease office space in londons financial district to the british government, according to people familiar with the matter. Barclays is planning to cut about 1200 Investment Banking jobs. And that is your business fl ash update. David stocks trying to fight back into the green but not getting too much help from industrials. Five Straight Days of gains heading in todays session. Julie hyman is standing by with the spider sector report. Julie the pullback we are seeing in the xli, the etf that tracks the industrials, down 1 . Obviously outpacing the declines we are seeing in the broader market. To those declines, the airline stocks. Alta in particular predicting decrease in passenger unit revenue of 2. 5four. 5 . Southwest shares we have been watching as well today. The are faring better after company said february traffic rose by 13. 5 . We have heard from a number of Different Airlines today pit if you look at passenger revenue per available seat mile, that is one of the benchmark measures for airlines, and here are all the different measures. Delta is all the way up here at 14. 7 . It is outpacing the industry. If you see the decline like it is talking about, it will bring it more in line with some competitors. Then you at southwest, american airlines, ual, and jetblue all the way at the bottom with that measure. One thing my producers noticed about the alliance is how much the pricetoearnings ratio has come down, which is not what we are necessarily seeing in the broader market. Here is a Bloomberg Index of airlines that have performed quite well. And then here is the trailing of pricetoearnings ratio, which had gone down because we have seen Earnings Growth for many of these companies. It has been an interesting phenomenon. Switching heres to another sector of the industrials, navistar out with its numbers today missing estimates, particularly on the revenue line. The company is saying, among other things, that there is a large supply of use trucks in the marketplace, hurting demand for its trucks. Some of the other truck makers navistar is not in that etf, but these 2 companies are and it looks like a navistar is pushing them down. David julie hyman with our spider sector report. Coming up on Bloomberg Markets , french lawmakers back a plan on companies and encrypted data. Tracy welcome back to Bloomberg Markets. I am tracy alloway. French lawmakers back a plan to impose penalties on companies that protect encrypted data. The company would face a fine and its executives could be jailed for up to five years if investigators are denied access. What does that mean for apple or a yeah the company that refuses to cooperate any other company that refuses to cooperate . Lets turn to emily chang. What would this mean if it gets passed . Emily it would be a huge deal and under the bill as it is written now, tim cook could go to jail if he doesnt hand over the information in france. A tech, he could face a 386,000 fine, up to five years in jail, and what happened in far is that the bill, after the initial read, past 47432 votes. It was overwhelmingly the parliament in favor of this. Supporters of the bill say this is an attack is not an attack on encryption specifically by trying to change the target in specific instances and what they are doing is effectively drawing a line between terrorism and every thing else. Of course, terrorism can be interpreted broadly, but it is something we have not see lawmakers do in the United States. The u. S. Government is asking for information in cases ranging from drug dealers all the way up to terrorists and the terrorists that were involved in the San Bernadino attack. It seems the french government is delineating specifically that this would be focused on terrorism. David so interesting, the opposition politicians saying that the aim is not to break the encryption. Emily come i wonder how american politicians are watching this france, howd in similar it is to what were seeing here. France is still reeling from the terrorist attacks from a few months ago. Emily and there are apparently several phones in france that are holding up investigations because they cannot get information off those phones, including the paris attacks. This is something the french government wants to tackle. Im sure u. S. Lawmakers are definitely watching this, but in other situations, the u. S. Government has not followed. We have seen a couple of different antitrust investigations into google, for example, launched by the european commission. We have not seen the same level of investigation in the United States. Droppedand doj have cases against google. We have seen aggressive investigations in europe and we have not seen the same investigations in the United States. It is difficult to say if the same thing could happen here. But it is interesting that at a very early stage this bill has a lot of support. It has several months to go, the senate needs to review it, the government has not supported it yet. But it will be interesting to the france takes this heart a line on the issue. David emily chang joins us from San Francisco. Be sure to watch bloomberg west tonight at 6 00 wall street time. Coming up, save havens in a turbulent market. What is the best bet, treasuries or gold . That is on Bloomberg Markets, coming up next. 3 00 p. M. In new york , welcome to Bloomberg Markets. From bloomberg World Headquarters able welcome. Bell, andilde closing the winning streak is in jeopardy. The chairman joins us. They need more stimulus. Shows clipsetailer of thieving workers on tv screens as employees clock is very is the orwellian tactic working . We are one hour from the close of trading. Julie hyman has been keeping an eye on this. Julie
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