Particularly as they pertain to not something you just happen in the past . Thats right. This has been going on a long time. This is nothing new. Only the cost of doing it has been lessened. I would add that the use of cyber, social media significantly increase the. Mpact and capabilities obviously, this has been done for years and even decades, but the ability to use the thatconnectedness can all provides, they have up to their game where it is having a significant impact. For my perspective comes cyber is enabling them to access information that was not quite obtainable to the same level previously. Other times, actually dumping raw data which we saw during the last election cycle. Senator feinstein. Thanks, mr. Chairman. Onees obviously more than threat to our country, i would argue the greatest danger to the United States is north korea and im one of those who have been worried in trying to follow this as close as possible. In the statement for the record, you say north koreas missile programs will continue to pose a serious threat to u. S. Interests into the security environment in east asia in 2017. You go on to state on young these assessments, combined with north koreas behavior, recent missile launches and proximity to u. S. Forces and allies and asia is deeply concerning. For the purpose of this open hearing, could each of you express the threat posed by north korea and then address some of the specific actions we are taking as a nation . Intothink we could get greater detail, but it is clear we have assessed this as a very threatcant existential to the United States that has to be addressed. You are aware there has been considerable discussion among thepolicymakers with administration relative to steps moving forward. General mattis has taken a major role in this. The interaction with the chinese , we think can play a significant role in terms of how we deal with this. A significantted amount of intelligence resources to north korea and i think we look forward to going deeper in all of that. Is it possible to estimate when they will have an International Intercontinental missile capable of taking a Nuclear Warhead . I think it would be best if we say that for the closed session. Sessionou say in this how effective china has been in stopping this testing . Ive had a chance to be with. Great soldiers with respect to the chinese, they have made efforts in a way they have not made before in an effort to close down the trade they have. Vonnie you been watching the annual question and answer session of that hearing. Beginning wasery the questioning of fbi director mccabe speaking with senator warner. Ontold her he cannot comment any comeytrump conversations. When asked if there was any he said he would promise to report any kind of pressure from the administration. You continue to watch this hearing at tv. This is bloomberg. Boomer wealthrom headquarters in new york, im 22ney vonnie quinn mark minutes from the close. Governor mark carney financing rates will remain steady. In contrast, sterling has appreciated, possibly reflecting. Arket expectations and so, this is going to be a more challenging time for british households over the course of this year. Real Income Growth will be negative. Wages will not keep up with prices for the goods and services they consume. Together with a lower uncertainty and stronger global growth, it is likely to encourage investment as exporters renew an increased capacity. We have assumed the process of leaving the European Union would be a smooth one. What does that mean . There will be an agreement about future trading arrangements and there will be a transition for an implementation. From the negotiation to that agreement. Insight get some more on the u. K. Economy. Chief economist for your come middle east, and africa. Some think perhaps we heard a little bit too optimistic of the market i think the thing condition on all this smooth brexit happening. I dont think anyone believes that and that is why rather than the pound strengthening, it has weekend a bit. Vonnie is it a possibility that mark carney will never raise rates again . Sub certain a number of years left in their may not be another increase in that time. It is possible that he departs before get a chance to list rates. Is that going to happen . We think the rates will probably go up in the second half of 2019. The uci. s talk about forecastnd inflation is a big event today. So the projection has been raised to 2. 4. It expects inflation to accelerate again at the end of the threeyear forecast. Is you havehave inflation being a little bit stronger. That can be the Exchange Rates having a bigger effect. The next chunk is the domestic weakness setting and and as the end, because the bank of england thanks Interest Rates are too low, that prompts too much wage growth and you have inflation going up again. It is a little bit of a roller coaster, but theres logic behind it. Mark the economy will remain around trend . Theres not too much overheating. It is a modest mark forecast. On wages, which we love to talk about as well, he expects no increase in real wages this year for the obvious reasons, but he says wages will pick up in 2018 and 2019. Courieranny bonds file earlier. Forecasting about wage is wage always picks up into years time. I said that for the past 10 years. I would not be surprised if we end up with another forecast here. Low. Loyment is very when is it going to pick up . It is not knowledge, it is hoped. Mark hope from january of bloomberg intelligence. Lets move it on. Lets get more insight on where the economy stands, where it is headed, what it means for investors. Sterling is lower today. Mark richards is here, global strategist to jpmorgan. Questec did you see you. Meeting, were you on the hawkish side . Or were you on the neutral side and when you send out . Stand now . I think what the market reacted to was the lack of an additional vote for a hike and what we found was that commentary of Wage Inflation. If we take a step back, a lot of them have been premature in their forecast of acceleration. We saw new zealand overnight a dovish statement talking about the lack of Wage Inflation and it feels like governor carneys a little bit removed from that global dynamic of very subdued inflation. Mark that is a polite way to put it. Vonnie im curious if he is factoring in potential for lower Corporate Taxes if indeed it looks like theresa may wednesday very big mandate the government can change all sorts of things. Potentially the Corporate Tax rate or debate will have an impact. I think one potential angle thed be a drop off in participation rate. Although, it is from a high level. There were some questions about secular trends and automation and the impact they would have over the longerterm. I think that is something that would probably happen quicker than a lot of economists would anticipate. We have seen that over the last two years than people anticipated. Vonnie how much are geopolitical and macro concerns for what you do at jpmorgan right now as opposed to fundamentals . Treasury for the an example and how its behaved over the last 23 months. There has been aspects of global dynamics. That can beat behavior of other pulling down in the premium. We see the geophysical aspect play a role as well. Evaluate the. Mpact i think that plays a part, but part ass a pulling down those longer yields. Mark i was looking at our in markets m markets live function. Said goodbye to the trump trade yet . The race rates rose 16 to december the eighth and that has given back the entire game. Is the trump trade dead . I think what we have to do is isolate the specific dynamics of trump policies. We had a synchronize upswing very much in trade. When we look at other trump roughly has given roughly two thirds back. Range f a trading range, some of the industrial stocks are below where they were preelection. If we look at the dynamics of the most recent earnings season where you see some companies i think wevery well have to be specific on what we find the potential. Fascinating conversation on a busy day. On capitol hill we have the Senate Intelligence committee hearing. We will be watching for any more headlines on the subject of the firing of comey or you can watch on tv go. Lets go to Stanford University were the leaders of Global Technology form is underway. Michael mckee is there and hes got a special guest. Thank you. For three decades, Martin Sorrell has run the Global Advertising giant. You built it out of a small Wire Products company. They still make that stuff. We have a very small manufacturing roots. We talking about Global Politics a couple days ago. An Advertising Agency into this . We are advertising and marketing and we are beyond. Raditional advertising we buy on behalf of clients about 75 billion around the world. We are very much into all sectors including traditional about 600ch is million of our revenues. Particularly, they look at sustainability, they are thinking very much about how health and wellness its an to how they do with consumers and , notinternally with people just in quantitative. Health and wellness and we brought them together for of our health care businesses, giving us a 600 Million Dollars revenue base, which we are developing in the Pharma Industry and in addition to that probably another 1 billion at your visit to health and wellness through Package Goods and other areas. You and others were critical of tech and tech advertising has been working out. There was a discussion rupert and Neil Ferguson about the duopoly of facebook and google. Yesterdays news on snapchat you spent a lot of money on snapchat. We did last year, about 198 million of 400 formally dollars of revenue. 408 404 million. You look at the numbers yesterday, they will probably do around double what they did last year, maybe a little more. The point of last that conversation was the dominance of this book in google. You saw the facebook results through the facebook results were very strong. We were up with facebook by 30 . Google was so because they are more effective by Dollar Strength and having said that, facebook and google continue their dominance. We also discussed last night the rise of amazon because amazon is a threat to google on search. One statistic from a Retail Operation is that 55 of chronic searches here in the United States are initiated through amazon search. So, amazon is increasingly or will be to Google Search and its so clearly platform from an advertising and search obviously raises tremendous travesty concerns, but a very powerful medium to engage with a consumer parade whether we are talking about manufacturing plants or retail plants, amazons a big threat. Privacy a big issue. Our people starting to be concerned that you are harvesting data . Because of its privacy and because of the importance if have keeping it simple and making sure the consumer understands the implications for him or her of going online with any particular application. Andong as they understand opt in basis, i think that is key. I think you can overcome the privacy issues, but having said that, i think your point is quite right. It is increasing concern for regulators. If you think about google, apple itcrosoft, is the attitude of the regulators. Were still waiting in europe from the eu regulator so we have to see what happens. Thank you for joining us for it will send it back to the folks in new york. Vonnie thank you for that. I was the ceo of wpp. Mark four minutes away from the end of the thursday section action. It is all about the past four minutes away from the end of the session. The markets might be a little dovish in their assessment of where rates are headed. Lack of conviction in the marketplace today. Serling falling. Maybe anotherhat send, might just Christian Forbes my dissent, but that did not happen. Vonnie a Senate Intelligence committee hearing. It is an annual one. A panel of Security Officials are fielding questions from lawmakers. It is ongoing. We are watching for any headlines. You can watch live at tv. This is the european on mark barton. Lets see how fast i can speak. After rising to a 21 month high yesterday. The date was some native yesterday by the bank of england. 71 was theit split. Ofsequently, we saw a fall sterling. Lifting soon. Slightly weaker path before celebrating accelerating. Wages wont keep up with prices for goods and services. The boe may need to raise rates faster. The market suggests he is going for a smooth brexit. Today the quarterly report. This is a really important chart. The real Earnings Growth versus Savings Rates very important. Ratio ishold savings at its simple since 1960. That matters because it is living inflation and that is putting a squeeze on real Earnings Growth. Were down 2. 1 so inflation keeps rising. Investors dont have a savings pull to dip into. That is one of the big themes out of the quarterly report. Things will pick up towards the end of the horizon. Blessede known as the index. That is the white line. The blue line is the economic surprise index. Minde drawn a zero. Agree across the chart. Today it is the lowest since before june. That means that data is missing expectations. That is significant. We had some fairly disappointing. Rade data it is holding firm. It is bouncing back from it flows on may 2 through the you can see the trend. Estimates per it midway between the highs and the lows from when brexit happened in june last year. Exactly blissful. The yen ised guests currency in the world right now. Cage ifless, a great you are tired of looking at the vix for clues. You have the south korean won which strengthen from around 1200 at the beginning of the 112788. At we are getting a steepening in the curves. It is pretty interesting. Ithought i would point out in being moved by well, six we shouldnt dismiss Frontier Markets are so much going on right now in emerging markets. Back to the develop markets. Lets get to abigail. It is a bearish day for the doubt. All trading lower for the mastec and s p. On pace for the worst day in about a month. Down more than one percent, but still down more than the other major averages. Pace for weekly declines for the first time in weeks. More up more than 6 . Were looking at one of the year. Day of the it is interesting to see this. It is not clear. It could be a range break. Very small moves and perhaps investors are taking charge. We have huge weekend for the Department Source and this could question the strength of the consumer. About 14 after they put a terrible First Quarter. They miss earnings by 31 so they are purely struggling clearly struggling. They beat earnings by 35 . Commentsad bullish about march and april. Jcpenney, interesting interestingly trading down. Its worst day since november 11 and target trading down. Pretty interesting stuff. In case you had any fears that this is not higher, the yen trading higher against the dollar and look at the 10 year yield. Higher or lower for the first time in four sessions. A bit of a risk off day for the market. Vonnie thank you for that. Fbi acting fbi director david mccabe making comments here at the Senate Intelligence committee. He says the white house did not get in touch with him about the probe. Holds director comey in the highest regard. Theas asked whether rankandfile agents lost wasidence before comey fired. He said no, that was not accurate. He said no one at the white had asked about the probe and he would refrain from updating the white house on the probe. The ff daily scenes he spoke to bloombergs editor eric shatner in an exclusive interview. I would say the level of dialogue with the Prime Ministers Office and the chancellor and with regulators has been quite something. Onre is a lot of listening both sides. We are here to support the but we are also the largest underwriter of european debt. France is important to us germany is important to us. Tohave people continuing engage in europe is possible important. The European Union is going to require us to set up structures and make it more robust and within the full of europe. Does the hardest of brexit determine how great the impact is . There could be decisions taken that might not be in the best interest of a free flow capital. There were a couple of things that came out of the financial crisis as a financial crisis. We regularly to as the financial industry, lets not inhibit the free flow of capital. As long as the berries are not put up, there will be workarounds around brexit salon and will remain a very important source of capital for europe. Relative to some of your peers, you are an optimist. What is the upside to being optimistic . What gives you the degree of copper it is what i think. A Bank Subsidiary of ireland that is part of the European Union. We have told hundred employees today from the line to paris to frankfurt to madrid. , but will be uncertainty having been in the financial industry as i have, it is amazing how creative it can be. Mallets picture we can do it in a safe way. Ago beforen a month the election. Given the alternative which would cause uncertainty, would you say it is accurate to say a decisive victory for the tories would be good for the british economy, good for the pound, and good for barclays . Insert myselft to as an american into british politics. Bank. Is about the you could have uncertainty or you can have an certainty. If it is a decisive victory, there is some certainty there. Uncertainty it could be problematic. Obviously, a Strong Economy is good for barclays and helps investments which is a feel for Economic Growth. We enjoyed a very constructive dialogue with the British Government and as i said, ive been encouraged by the openness and information. Whoever is in the British Government, it is important that barclays stand behind the u. K. Mark barclays chief executive in our axis of interview. Sticking with european banks and First Quarter earnings, both beating estimates. Hit a record of 13 billion euros sales. But bring in bloombergs editor inancial lets bring in bloombergs european financial editor. This was a First Quarter we cleanplay numbers numbers. Indications today were positive because the revenue was strong. The costcutting has continued. There is also quite a lot of trading by the numbers. Made ainability has around shares up 20 this year i think. True. Having said, the Economic Growth is still weak and you still have them waiting for the 20 million euros. Italy . Why italy . You are seeing strong numbers up 24 . Stronger lending more broadly. It has tightened the costs space and after shrinking they can look again at growing through that restructuring. Frenchhat is it about banks and trading revenue . Theres a clean flush, isnt there . Banks have all performed even some of the larger european trading fairs. Extent, theyme have always maintained a presence and the resilient in those markets have come back. Mark especially the first order before the election. Theres more activity in the runup to the election but i think many of the banks are global. I think the resilience throughout the more difficult years are picking up the greater fine now. Mark thanks for joining us. Great stuff. But check in now on the first word news. President trump is considering mike rogers, the former congressman from michigan to replace james comey. That is according to a white house official. He retired from congress in 2015 after seven terms to pursue a career in talk radio. He advised the Trump Transition Team on security issues. That is according to white house officials. Mr. Trump has claimed that 35,000,000 people voted illegally in the 2016 elections for federal prosecutors are investigating one of the darkest markets on wall street. No names have been mentioned, but according to people with the matter, the government is focusing on hedge funds that pricedly solicit quite quote from brokers. In a phone call, it may become differences ife north korea stops it publications. Im courtney donohoe, this is numbered. Vonnie we are bracing for a potential expansion in europe. To tell you which carriers are making preparations for the countdown. This is bloomberg. My from london, on mark barton. Vonnie this is the european close. The u. S. Is considering expanding a ban on laptops on flights outside of europe twoyear. Chris, what our representatives from the airline doing about this . Nobody is entirely sure what happens next. Meeting inre is a washington today between airlines and the Trump Administration. Behind the scenes, they are repairing. They have been preparing those loner laptops and tablets available trade it is a lot of preparation for what comes out of washington. It is going to be a logistical nightmare. What if someone shows up with a lap . Top laptop . The airlines note need any more complexity to their business. We have seen what has happened the last few weeks. It is the last thing the airlines need. They theyre going to check in and right before you get on the plane. They are trying to make it as least painful for their customers as they can, but if biggere a bigger plan airplane, that gets complicated. Mark what can the European Commission due to make this process smoother . Not a lot. Commissioners went to the seven of writing the Trump Administration a letter to make this as smooth as possible so hopefully they are trying to make sure this is as least disruptive as possible. Mark thanks a lot. Battle of the charts. Versushe u. K. Election doubts on for. This is next vonnie it is time now for our global battle of the charts. You can access these everyday on the bloomberg. It is u. S. Firms versus britain today. Thet is a bearish day for Financial Markets and the dow transports. They had been down 1 . One oftion is worrying the most revered technicians out there. In her may report she made in yellow we have the transport. Back in 2015, the doubt transfer ports put in their alltime high , but then more recently, it has been the dow industrial that has outperformed the transfer or. To betweenw back 2015 highs and that divergent to be a concern. She says the dow theory continues to give her mark, i see you are fully concentrated in here already. Come n you hear that calm . Four weeks ago until the election. Look at implied volatility. Since december 2015. You know why the poll says the conservatives had a 22 conservative very different to the brexit. The volatility nothing like the scottish highest since june and almost three years. You can hear a pin drop. All come ahead of the election in four weeks. Clube were you in debate when youre in school . Beautifully presented. Once again on capitol hill today, the Senate IntelligenceCommittee Hearings were acting fbi director Andrew Mccabe are being questioned. We continue to monitor this on Bloomberg Markets for you can watch on tv go. Welcome to Bloomberg Markets. Vonnie here are the top stories on the bloomberg and around the world we are following. I hold comey in the absolute highest regard. Those are the words of acting fbi director Andrew Mccabe. We will get a live report from capitol hill in minutes. Markets falling as tepid earnings raise new doubt about the american consumer. Rising with gold. Oil is adding to gain. Fallingf macys are after a dismal quarter. Missing posting a decline, dragging other