Might strain storage limits. A strike in the oil patch may be over. The union has less workers and has reached a you with royal dutch shell. The united steelworkers say they are getting paid and health care increases. Federal officials want to know if bill ackman tried to manipulate herbalife stock. The fbi says that he and people working for him are being investigated. He made a billiondollar bet against herbalife shares. Ackman claims that herbalife marketing is effectively a pyramid scheme. Herbalife has lost about half of its value in the past year. Well ask will ackman about this later today right here on Bloomberg Television. And a controversial bill aimed at targeting hackers in congress. A proposal was clear. Prosecutors say they need new weapons to fight cybercrime. Activists say that the bill would give the government too much power. Peter cook asked the Committee Chairman if it would stop corporate hacks. We mightve minimize the loss the cosa response time. We couldve provided those companies. More importantly, the fears that existed with other Health Care Data companies are with other financial companies. They were also included in the federal indictment. Betty if shields companies from lawsuits that share information with each other and federal agencies. A banner day for stocks in japan. They close at 19,000 of first time in nearly 15 years. Japans benchmark index is up 172 . A missouri man hunt for a suspect in the shooting of two Police Officers is widening. Shots during a demonstration at Ferguson Police headquarters. No arrests yet. They still want big changes in Law Enforcement there. I federal report found racism in the police force and also in the courts there. Those are your top headlines. President obama made his first remarks on the Ferguson Police shootings during an appearance on Jimmy Kimmel Live last night. What happened in ferguson was oppressive and adjustable and worthy of protest objectionable and worthy of protest, but there was no excuse for in a criminal act. Whoever fired the shots should not detract from the issue. They are criminals. They need to be arrested. Betty the president was in l. A. For a fundraiser on other hot button issues during his latenight appearance. Phil mattingly joins us now from d. C. With more. Still, you can see the republicans rolling her eyes of his appearance last night saying why is the president broaching the series topics of National Importance on latenight television . Why phil . Guest the hollywood president that is always the criticism. There are three real reasons why the president obama was willing to talk about this on a venue like latenight television. These are his first public remarks since the shooting. These are something at a high level at the white house and nationwide. It was a big issue that baby into a dress if he was speaking publicly. The demographic and the audience as watching latenight television is one of the president and the white house would like to reach on messages like this. Sure, there will be plenty of joking on latenight television but there are serious issues and whenever you see the president does appearances, it tends to be trying to hit that. The third thing which is most important that is if you talk to white house officials, theres a lot of concern about what these shootings mean. There has been a lengthy Justice Department report. They felt like there was good profits from the progress on the administration side. They do not want to set act of progress and that is why the president addresses landslide. Addressed this last night. Betty maybe it was a softer area to adjust these issues. There was a moment that topics were brooch that he might not have liked. Guest i think he goes into situations like this knowing that it is going to occur. His latenight experience is recounted on buzz feed and vice are different formats of interviews going forward. Jimmy kimmel wasnt hesitating going to the triedandtrue first area of where the president was born last night. Take a listen. Do you have a birth certificate . [laughter] [applause] crocs in kenya, we drive on the other side of the road. Guest kenya, birth certificate is, if you know if he is on latenight, that will be brought up. Betty he stepped right into it phil. Phil madelyn bloomberg politics. Back to currencies now. A report later at 10 a. M. Eastern time. The bloomberg dollars spot index tracks the currency against 10 major peers. Is on the course of a fourth weekly game. You think that a stronger dollar would be a boon to u. S. Companies but it is not helping as much as you would think. It is increasing some comments costs. Julie hyman has more on this. Let us look at the benefit and not so great benefits. What about the bad side . Guest i look at Apparel Companies as an example of Companies Making things abroad. You would think that with a stronger dollar and converting to local currencies that the money is going to go further and, therefore, they have more buying power and the cost of goods would be lower for them. Again, theoretically, you would think that this would be a positive thing. It is not because for two main reasons. When you talk about the decline and we have seen in currencies most of it has been in the euro and yen. When he had local currencies where many of these closer made that is not necessarily the case. When you look at the Top Countries from where we are getting apparel imports, a particular china is the top. That is operatively surprising. It accounts for more than 30 of the apparel imported into this country. Yet other countries on the list like vietnam and england and bangladesh and indonesia. You have not seen much depreciation versus the dollar. The chinese yen is down lessons from percent less than 2 . What other important factor is that many of these Apparel Companies have their contracts and dollars, not local currency. They are paying their local suppliers and dollars. Betty wheres the benefit . Guest on top of that offsetting is the fact that they are selling not just the United States, but many economies like europe where we have seen such a depreciation of those local currencies. Ralph lauren is one example. Two thirds of its business in the u. S. And canada, but 20 of its business in europe. If your dollar costs are remaining constant and you are selling into an area where you seen depreciation in the currency, is worth last. It is worth less. Betty what are economist saying . Guest they say we should see a decrease. It is interesting and talking to people. I cannot quite bridge the split that i was hearing the analyst that cover these companies and the Apparel Companies themselves who have the loaning the negative effects of the higher dollar. The economist are saying, we should be seeing lower prices for u. S. Consumers because these guys are paying lower prices. There might potentially be a delayed of. That might be part of it, but it is not exactly clear. Betty a mystery here, julie. Julie hyman rc in your markets correspondent did much more ahead. The rising dollar could be a timing with the feds highest rate height in years. Alan greenspan will join me here in a few moments. Forecasting the weather. The ceo of accuweather joins us after inking that deal to replace the Weather Channel on verizon files. Much more ahead. Webetty heres a look at our top stories. Israeli Prime MinisterBenjamin Netanyahu is not sure he will keep his job after next week. He told a tv station that there is a good chance that he could lose the election. A new poll shows that zionists are leading the netanyahus party. A disastrous that against the swiss franc do everest capital. It sent client screen. According to people with knowledge of the matter, theyre closing six of its seven funds. Everest fund was wiped out in less than a day in january after the Swiss National bank what the frank trade against the euro. Call it a kind word, gentler steve cohen. He is ending a practice known as down and out. That is when Money Managers are automatically fired if their losses exceed a certain threshold. According to a memo, the practices being just as in is being jettisoned because Portfolio Managers are being better at risk. It might be time for janet yellen to raise rates. The Federal Reserve is trying to get a more complete picture of where the u. S. Economy is heading. They are looking at how social media might improve its forecasting. Economists are reviewing things like Google Search terms and social media post to get more insight into things like spending, job market, and real estate. No surprise that you get a lot of realtime pricing online and on social media. Those are your top headlines this morning. Staying on the fed, some of the most accurate and traditionally relied upon data on the strength of the economy is already a month old like the labor report from february. One curious note if you look back 10 years at least also in jobs, you can generally move in the same direction. It makes sense. In the last year, while we are adding jobs, that is the white line on your screen added risk pace, spending is falling way off. Why arts americans buying more arent americans buying more when greater numbers are being employed . That is what i want to explain with our next guest, Alan Greenspan. Thank you for joining me. Can you solve this mystery of why we are adding jobs and it looks great, but we are not spending . What is going on here . Guest it is unfortunately very simple and not a good story. We are using more and more people as the margin to produce less and less. Productivity, which is an output for man hours and we can conventionally measured, is running at a very low rate of increase. That is a critical variable in the economy over both the shortterm and the longterm. What we are confronted with right now is a very serious problem caused by the fact that Capital Investment is falling far short of the requirements necessary to keep the Capital Stock growing and therefore productivity. It is not working. Betty how do we reverse that . What is behind that chairman . Guest as on many occasions, the best way to standard this is to track it backwards. It is a very tight relationship between the stock of nonresidential private stop and output per hour. They move together all the time. For very good reasons. That Capital Stock requires Capital Investment and Capital Investment in turn, is being crowded out by very substantial increase in government expenditures. Basically entitlements because both parties, both the republicans and the democrats they do not want to talk about it. Largely because it is considered a third rail of american politics. You touch it and you lose. Betty that makes perfect sense. It might come down to cutting some costs. Some cost control, chairman. I know you mentioned entitlement spending the number one thing that you think that we need to cut our caps on is what our cost on is what . Guest the basic issue is the entitlements and the problem is that people put money in their own funds and employer funds plus interest and that is what they perceive they will get back , and therefore, they are entitled to it because it is their money. The only problem is that is not what we are doing. Youre not creating enough funding we are not creating enough funding for the Social Security trust funds, and the same thing goes for medicare. We are not funding this. So long as we are not funding this, we are dollar for dollar crowding out Capital Investment. Betty dr. Greenspan, some look at these numbers though. Not just jobs, but the lack of productivity as you just pointed out. Also, the spending decline that we are seeing. What also the strength of the dollar, as perhaps delaying the fed policy on raising Interest Rates. I know that you do not speculate and you do not want to interfere on janet yellen and her job. All those factors combined do they foreshadow a longer wait on looming Monetary Policy . Guest you are merely repeating what is probably going on in the internal discussions of the federal market committee. I will not comment on that. Betty ok. The higher dollar though doctor greenspan, is that going to keep the lid on inflation . Guest what you mean productivity or what is going to keep a lid . Betty the higher dollar. We just talked about how the higher dollars should be reducing import cost for many companies. It is not so far. But if it does, is it going to help alleviate some of the Inflationary Pressure and, possibly, the need again, not forecasting Interest Rates, but the need to tighten . Guest theres no question. Guest a stronger dollar tends to suppress general the mystic price level. The problem here is that we are not quite certain where the problem on the Exchange Rate comes from. Whether it is a strong u. S. Economy which is a questionable issue, or a week rest of the world which is a little more credible. Remember the Exchange Rates of the Global Economy are a zero sum game. As the dollar goes up, someone elses going down. What we are seeing is a significant weakening obviously in the euro. We are seeing it in the ruble and seeing it in the yen. It is a very complex problem of International Trade and international capital. It is not altogether clear that the u. S. Can readily make major changes in the dollar Exchange Rate because it is such a critical currency. The types of actions that we would have to take are probably outside the realm of where we would think it is good policy. Betty dr. Greenspan, we are going to approach another topic that has affect on economy and that is oil prices. We have to take a commercial break. We are with dr. Greenspan. Record u. S. Inventory pushing down prices, but there may be a bigger problem. Where to store all of that spare oil. Less, fords muscles truck comes from kansas. It is now being built in the sunflower state. We will you back in a moment. Be back in a moment. Betty youre watching in the loop live on Bloomberg Television and streaming online. America has a massive surplus of oil and there may be no place to store it. 485 Million Barrels skyrocketing in the last few months and demand has fallen. At the same time, the volume of oil at americas largest Storage Facility in oklahoma has a most tripled since october. What does this mean . Lower prices. Still with me this former fed chairman Alan Greenspan. Chairman, i know that oil is something that you have been watching very closely. You say it is extremely Important Press to be watching what happens to oil. Do you believe that we still have not hit rock bottom . Guest that is correct. If you look at the data as you just pointed out are major domestic our major the messed it facility domestic facility is the major point for west texas intermediate crude contracts. We are at the point now that the current rate of phil we are going to run out of room in cushing by next month. Then the question is where does the crude go . Because everyones forecast as to what will happen when prices collapse was a sharp curtailment in shale oil production. That has not happened. The weekly figures, which are produced by the agency through march the six, show a domestic rise in crude production and it has not go and it has no place to go because we cannot legally export the way we do for most products. We can do exporting and canada but essentially, we are bottling up a huge amount of crude oil in the United States. So for west texas intermediate their prices running 10 a barrel under brent crude which is the global price. That basically means that we are creating a great abnormality in the system. Until we find a way to get out of this dilemma prices will continue to ease because there is no place for that oil to go except for into the markets and spot crudes are especially vulnerable because of socalled can tangle which is a very high level. This implies a very high and significant pressure on the price. Betty dr. Greenspan, what about this theory though . It seems inevitable that we are going to see this huge oversupply in oil prices come down even more. Is that eventually going to hit u. S. Production . It might be a very sharp crash and the number of rigs that gate close down. But eventually the market will adjust . Guest remember, the rigs that have been closing down has not affected the passion to produce crude yet and the reason is that most of them the ones that are not multiple well related are getting the inefficient ranks shut down. Rigs shut down. The capacity to build oil remains there. Frankly i expected to turn down or ease a number of weeks ago and these numbers keep rising. It is perfectly credible that because the cost of crude especially for shell crude which is more expensive than stare do standard oil, those numbers are high at 55 or 65 a barrel. There are some which go under 50 a barrel. Theres not much room under their before cash flow turns negative. At that point, they shut down and it could be quite abrupt as you point out. Betty it could be very abrupt. Chairman greenspan, if nothing is done here short of lets say, a list of our export ban on crude, what can we e