westin. of power" oralance the world politics meets the world of business. kevin cirilli is in washington with roundup of the stories. the jobs numbers, which were encouraging, came out and president trump said he thought we should still cut rates. >> look at what he said. -- lookure drop rates at what he said. >> the fed should drop rates. they slowed us down. in terms of quantitative tightening, it should now be quantitative easing. david: i guess he is not satisfied. he was complaining when the job numbers were weeks, now 196,000 is not enough good guy: the unemployment rate unchanged, the president still criticizing the central bank. for his part, yes nominated herman cain to the fed board and stephen moore. he will have two voices should they ultimately received confirmation.

that is still unknown if they get that confirmation in the senate. should they get those confirmation, he will have two allies on the central bank floor. david: he has other work to be done with the chinese central bank situation. -- the chinese trade talk situation. still in town, still wrapping trade talks with robert lighthizer and steven mnuchin. they had made progress yesterday, but speaking earlier today president trump said he would not predict an ultimate deal between the u.s. and china. he also signaled that when he does meet with president xi jinping, wherever that might be, it could be as soon as a few weeks, that it would be to finalize the deal. we know the u.s. and china are talking about china purchasing the commodities, enforcement mechanisms, including lifting some tariffs but keeping some on to ensure china continues on that front and to allow the u.s. to make

purchases of chinese firms. to ourthanks so much chief washington correspondent kevin cirilli. it was not just china and jobs president trump was focused on. yesterday he threatened new tariffs on cars imported from mexico. he says it is a national emergency. >> we will give them a one-year and if the drugs do not stop, or largely stop, we will put tariffs on mexico and products, in particular cars. the whole ball game is cars. david: we welcome someone who represents those who make their living in the auto industry, congressman tim ryan whose list includes a gm plant on the list for crozier -- list for closure. tim ryan announced he would join the field of those seeking to challenge president trump in 2020. it is a tough thing you are taking on. i want to start with this issue about the southern border and cars.

it can intersect with your constituency in a couple of different ways. are you for or against new tariffs on cars from mexico? rep. ryan: we have seen in out flux of manufacturing in the united states and a lot of these cars are going to mexico, like general motors closed down a factory in youngstown, ohio and put a factory in mexico. i think we have to explore all of these opportunities to try to drive manufacturing back into the united states. my problem with the president's analysis is it changes day by day. i do not know how people function in the business world with the president like this. what is the cost going to be? who are we mad at today? he uses this rhetoric politically and that is not good for business because there's no stability. david: another challenge for someone trying to cover this is how much of this is economics and how much his geopolitical in terms of people coming across the border and issues with that? do agree there is a crisis on

the southern border? the influx of people trying to get into the country has shot up dramatically. rep. ryan: i do not know if it is at crisis level but it is an issue we need to deal with. we need to protect our border. there is no question about it. the issue is how do we do it. you will not put a wall in the middle of the rio grande river. we have technology. let's use that to secure the border. the drugs are pouring in through points of entry. this argument of shutting down the government over a wall does not make any sense because drugs are coming in through the water or points of entry. the people coming over are coming from central america. this president needs to pick up his presidential daily briefing, recognize that is where the issue is, and now we are saying he is going to cut the state department budget for helping those countries? there are gangs running these countries. pay attention, mr. president. fix the problem. as citizens, a lot of us want to say i do not want to know about

these problems in the world. fix them before they become a problem with air on tv. david: closer to home. youngstown, ohio. the jobs numbers came out today. 196,000 jobs added in march. the president is pleased with it. manufacturing jobs were the one thing that went down. what is the situation where you come from? how is it look? rep. ryan: we lost in the last few months 1700 auto jobs, and you have a four or five times multiplier to that. bloomberg reported a $3 billion effect on the economic impact in the region. across the country, we are creating jobs. the question is, are peoples standard of living going up? when you have 40% to 50% of the country who cannot withstand of $400 to $500 emergency, that is not making its way down to working-class people in

youngstown. david: you are running for president in 2020. in 2016 the president went to ohio and michigan. you lost a lot of jobs, you are left behind. people resonated with that. what is going on today? are there people in ohio seeing you promise jobs and not delivered, or are people saying he did not go far enough? rep. ryan: i think they want him to be calm and focus. what is the long-term plan? we have not seen huge growth and jobs. some are doing well, some are not. there is been no real movement along increasing standards of living and the president needs to say what is the agenda? what are we going to do? there are all of these opportunities. china dominates 40% of the electric vehicle market. we will go from making to me an electric vehicles today to 30 million in 2030. the president needs to say how will we dominate this market in the united states? who is going to make the batteries and do the technology

for the charging stations. how will we export that to other countries? that is the real issue. he has no plan. he cannot say i will put tariffs on china and cut taxes. you have as assume plan that is compelling. you come from the upper midwest and that plant might appeal there. the other people running, many of them the democrats are saying things that appeal to the base, to california, to new york. how can you have a bessette -- a message that resonates in the primaries and works in the general. what you're talking about sounds more like a general appeal than a primary appeal. rep. ryan: i don't know about that. most democrats are working class people. i know we have well-educated people in the suburbs and all of that but i know democrats know we need to win the states. i can win pennsylvania, ohio, michigan, wisconsin. people know that and they want to be donald trump and they want to nominate somebody who can beat him.

we do not need to be the party of or. we can be the party of and. we can talk about important social justice issues important for democratic society. make sure there is not structural racism and inclusion and all of that and have a bold economic plan in the united states. david: can the democrats win with medicare for all? is that a winning proposition? rep. ryan: i think some version of a public option for people to be able to get affordable -- i do notth care know if that is the exact nomenclature, but the underlying value is a winner. guy: it seems like there -- david: it seems like there are a couple of alternatives -- improve and fix obamacare. bernie sanders said i'm not interested in fixing obamacare, i want a new plan. if you have to choose, which one makes more sense? rep. ryan: i think we need to

move toward a medicare for all style system. the question is what are the steps between here and there together? i think the natural next step is how you bring medicare down to 55 or 50 so this working-class steelworkers, automakers, coal miners can buy into medicare. and then let small businesses by in, small businesses with under 50 or 100 employees, so it is a medicare for more system. that is a very pro-entrepreneur, pro-innovation system that takes care of people in the old economy and provides incentives for the new economy. david: europe less than 12 months before the iowa caucus in new hampshire primaries. you of people running in front. bernie sanders is in front. how do you get into the top tier , which i assume you to be in the top three or four in iowa and then carry over to new hampshire. how do you get there? rep. ryan: work my rear end off.

there is no easy way to do it but you go to i will, you go to voters,shire, you touch you tell them what you want to do. i believe my message and my understanding coming out of youngstown, ohio is i understand the old economy and i know how to get us to the new economy. when the still mills collapsed in 1977 in youngstown, the technology in the still mills was pre-world war i. we have that same choice today around artificial intelligence. are we going to grab this technology and infuse it in our industries and dominate? ramp-up productivity and cut workers in on the deal. say will look the field and who bests understands that and who can bring together a divided country to pitch that economic vision for all of us? david: thank you so much. democratic presidential candidate and ohio congressman jim ryan. now it is time to get a check of the markets with emma chandra. emma: risk on for u.s. equities.

all of the majors in the green. the dow jones putting in the smallest gains but off of the boeingt is dow and weighing on the dow. the s&p rising .4% and rising for the seventh straight day, the longest winning streak since 2017. now just 40 points away from that september high. that is better than expected -- that the better-than-expected jobs report raising stocks in the u.s. let's change up the board. it is energy that is the leading sector on the s&p 500, putting a gain of 1.4% and we are seeing gains across stocks with regard to energy. every energy stock in the s&p 500 is in the green today. oil services and the independence among the biggest gainers. chevron rising today. oil is rising more than 1% earlier in the session.

62 $.56. trading at that is the highest -- $62.56. that is the highest since november and we are at the fourth straight weekly gain for crude. david: we'll have someone on later this program to talk about just that. emma: like we planned it. up, president trump the trade deal he is working with china will be momentous. we'll talk with the man the president calls the leading authority on china. that is next. this is bloomberg. ♪

david: this is "balance of power " on bloomberg television.

we turn to mark crumpton for bloomberg first word news. mark: president trump is en route to california in an effort to make border security a central issue in his 2020 election. the president denied he changed his mind about shutting down the border with mexico, a threat he backed off the day before. mr. trump said he reversed course because he saw mexico get tougher in stopping illegal immigrants from heading north. asked to delay brexit until june 30. the prime minister made the request in a letter to european council president donald tusk. she cited ongoing talks with jeremy corbyn as a reason. has said thation it there is a delay, and should be longer. may is desperately trying to get a brexit agreement approved by parliament in time to avoid european elections next month. tensions are running high in turkey, where opposition supporters ahead of the vote recount are angered. is president ruling party

appealing the results of local elections in istanbul, where preliminary results gave the opposition a razor thin victory. the results were one of the president's most serious electoral setbacks in years. interior minister's of the seven most advanced economies are making joint commitments on the world's top security issues. the g7 nations agreed to step up the fight against migrant smuggling and human trafficking. the countries disagreed on how to handle foreign fighters who joined islamic state in syria and iraq. the u.s. wants countries to take back their citizens, but others, including france, quantum to face trial where the crimes were committed. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. david? david: president trump was not

in a position to announce a trade deal when he met with the chinese spies premier in the oval office yesterday but he did nothing to lower expectations on how it formed it will be when it comes. >> we have never done a deal like this with china. it is very unique. it is a massive deal, could be -- i guess it is the biggest deal ever made. there cannot be a deal like this no matter where you look. this is the granddaddy of them all. david: we welcome michael pillsbury, director of chanter -- of the center on chinese strategy in the hunter institute. he is the author of the 100 year marathon. he joins us from washington. welcome back to the program. we do not know what is in this program yet. we do know it is taking a fair amount of time. it appears the president and his colleagues are being very methodical. should that tell us that there is a problem with the deal or

should it tell us the deal will be more important than we realize? michael: it is the complexity of the agreement -- it is 120 pages long. bloomberg has the scoop almost one year ago when bloomberg got hold of the two negotiating positions. 10 points on the chinese side and 24 points on the american side. there has been no leak or scoop like that ever since in the past year. there been various descriptions of what is there, what are lingering issues. i think what the president means by a monumental agreement or the granddaddy of them all is the size of the two economies. these are the largest economies in the world, roughly 19 trillion for us, 12 or $13 trillion for china. whatever these countries do also has a security component. ,re we friends, are we enemies

a lot of this is turning out to the trade talks to define the overall nature of our relationships, which has been going on diplomatically for 40 years. david: one of the issues we are told is figuring out enforcement. how do we make sure they deliver on their promises? from your experience, is this a situation where the talks are never going to be over? if we have an agreement, it will be an agreement have a process that will go on and we will have reviews as far as the eye can see? michael: in a way you can call this the forever trade dispute. the enforcement mechanism is going to be a topic of some dispute. it is the way it is set up. if you saw him pass or lighthizer's testimony to the house and senate oversight committee, q8 out of three-level system where appeals will be out. and punishment meted it is kind of a court of appeals. on the chinese side, if they do , if the chinese side

says that is not true, you are given opportunities, no one stole your trade secrets, then the punishment will be meted out by the american side and china .s supposed to not retaliate otherwise you are back in a trade dispute again. ideally the complexity, the time it is taking to make this work, 120 pages, all of this will pay off in reducing trade friction going forward. you can be negative about this. to be positive, this is what the president is talking about. if both sides and the key players in trade and economic policy are in rooms in these talks, this works out. we've created a new system for managing our economies and our trade expectations. that is going to be good news. david: is there a potential to push it further, for managing more than just the economies?

we have instances, maybe in a different time we cause friction. for example, the sale of f-16s to taiwan. china has not made as big a fuss as they might have otherwise, maybe because of the trade negotiations. how is it affecting the military relationships over the south china sea? michael: that is important question. the overall relationship includes arms sales to taiwan. we believe by law we are required to do that. the chinese never accepted that. they say taiwan belongs to them. they have sovereignty and what possible legal basis would we have for selling jet fighters. they also want to buy 100 and one tanks. m-1 tanks. that is a huge area of friction. it can always break out again. i was pleased that the chinese did not object much, but this is not happened yet.

it is a possibility the f-16 sale could go through. i'm against the near term decision because it will complement the trade talks. we need to get those completed first. finally, we have is on incident of a chinese woman being apprehended trying to get into mar-a-lago in florida, complete with a thumb drive that had malware and all sorts of computer things. as a student of china over the years, what you make of that? what could that be? michael: great question. if you know the 100 year marathon, third chapter, i spent time talking about cia cooperation with chinese intelligence. i've met a number of chinese intelligence service executives. they are polished and sophisticated. they would never do this kind of thing. this sounds like an amateur or somebody who wants to look good back to the united front department in beijing, is a communist party entity.

this does not look like sophisticated chinese espionage, that we know goes on. every now and then we catch somebody. ors looks like a volunteer -- almost a joke. i'm sorry to joke about it, but it does not look like a serious espionage penetration. i've seen them when they happen. david: that is a helpful insight. many thanks. michael pillsbury with the hudson institute. live from new york and washington, this is bloomberg. ♪

david: growers is our stock of the hour. shares in the biggest u.s. based avocado producer surging. emma chandra is here with more. some good news over the potential border shutting. emma: surging 10% in the last three days. the biggest stock mover in more -- two years.

all down to president's threat to close the border. this had two impacts. the price of avocados has risen. this is the price of the mexican avocado but it has a knock on effect of the u.s. avocado. is the company's u.s. based, so it be set to gain if you are shipments of mexican avocados coming to the u.s.. 70% of avocados come from the and 20%70% from mexico from the u.s.. david: avocados cheering the president. many thanks to emma chandra on the subject of avocados. new york, this is bloomberg. ♪ want more from your entertainment experience?

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just say "teach me more" into your voice remote and see how you can have an even better x1 experience. simple. easy. awesome. david: this is "balance of power" on bloomberg television. i'm david westin. her bloomberg first word news we go to mark crumpton. mark: today, as we've been

reporting, president trump is headed out west, where he will take a look at sections of the border wall. the president this week appearing to go back on what he was talking about discussing that wall. we'll have more on that story. the israeli election is only days away. on april 9, prime minister benjamin netanyahu is up for reelection, where he will potentially take a fifth term in office. this is considered the most contentious election in netanyahu's tenure. rivals, connects military chief and index finance minister. a lawyer from one of new york's best-known firms will become the second defendant to plead guilty in the college and missing scam. he paid $75,000 to boost his daughter's college board scores. global news global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. -- i'm mark crumpton.

this is bloomberg. david: thanks. u.s. job creation bounced back in march from a disappointing february. that does not mean president trump has backed off his urging the federal reserve to pump the system by cutting rates. this chief economic advisor sees at the same way. >> the president has said, and i could do at some point with reductions in the fed's target rate. >> the fed should drop rates. i think they slowed us down. there is no inflation. i would say in terms of quantitative tightening, it should now be quantitative easing. david: for more we welcome our political panel, stephanie brown james, a democratic strategist, and lanhee chen, a former policy director for mitt romney's 2012 presidential campaign. i will start with you.

i put you on the republican side. is the president right? is larry kudlow right? the president is not slowing us down in job creation. expect --ine to express a point of view about how the fed ought interact with policy. with the president's chief economic advisor that means more than the need for lower rates and higher rates. that is the challenge. this is an intervention that goes one step too far. david: you're a policy guide. is it the light -- is at the right answer to have higher rates or lower rates. lanhee: i think the fed tightened appropriately right now. jobe continue to see strong gains in good increases in wages , then we might want to revisit the question of whether the fed

should be raising rates. a lot of this depends on where we are right now. stephanie, is there a position of the democratic party on monetary policy. stephanie: i'm not sure what the democratic policy is. i am concerned the president is thinking about nominating herman cain to take a seat on the board. the federal reserve board is not one that should be politicized. we know herman cain has deeply rooted policy positions in this area and that to me is what is most concerning. david: let's talk about that. you work for mitt romney, who came out after the herman cain nomination and this is what he had to say. i would like to see economists -- nominees that are economists and not partisans. i think it is important the fed might not be a nonpartisan -- the fed nominate a nonpartisan entity. lanhee: are these people

qualified, do they give the right -- herman cain has relevant experience. he was part of the kansas city fed board. he has been in business. arguably he has experience -- he is not an economist but he has experience that could potentially qualify him. the question is are you trying to create a federal reserve board that values its independence, and i'd was the point mitt romney is getting at. that would bother us about the independence point just made. there are quite a few people on the fed. we do not have anybody who has run a business. jay powell -- that was quiet -- that was private equity. is there room for somebody who had a different life experiences and made a payroll. stefanie: that is one aspect of herman cain's background that would bring a value add on to the board. we cannot ignore the fact that this is a gentleman who ran to

become the republican nominee for president. he is someone who is very politicized and this is an independent board that should stay that way. says -- to signal herman cain as a person to take a seat on this body is the wrong move. david: you mentioned the last presidential election. we have quite a few democrats. i had tim ryan in earlier. what you make of the field right now? people seem to be running to the left, not to the center. stefanie: 17 people running is unbelievable. i believe we will have more. to be honest, i think we only have a handful of candidates on the democratic side who are going to speak to the widest breath of voters on the democratic side. david: let's take a look. we have a poll from last week. this is before some things happened involving joe biden, and joe biden has not said he will run. you have joe biden, bernie

sanders, kamala harris, and elizabeth warren. david: i think joe biden --stefanie: i think joe biden will stay in his place. he will continue to have tough weeks because he is the frontrunner and he has not announced yet. i think the top five speak to the base voters of the democratic party. these are good candidates. david: what about the tough time joe biden has had, not as a declared candidate. a few incidents of touching of women. not a me too situation. this is nothing like that, but things some people would find uncomfortable. he said maybe he should've kept a distance. he also said he should've pretended they both have a cold. does this low over -- does this blow over or could this, given everything in our society, damage joe biden? lanhee: the question was always whether joe biden, himself an anachronism, could run in a

different time. the democratic party is in a different place. the standards of behavior are different than before. that is the question. can he adapt? so far, the response has been clunky. hasnd to think joe biden the clearest lane to the nomination. he is somebody who can bridge differences. the question is how does he adapt to running in a different time? it is too early to tell. david: let's talk about the different time. even as we are talking, joe is talking to the press. he is very close to making a decision. we had howard dean on earlier. he said he would like to see somebody under 50. is it time for a passing of the torch to a new generation? stefanie: if anything it is time ever bridge between generations. i think joe biden on one side and another candidate, kamala harris and stacey abrams, whose name is been thrown out as a

potential vp, i think would be a good bridge to show times have changed but voters have not changed. people who are in the deep south, people who are young and old respect joe biden. i believe they think he is an elder statesman who took a backseat to this black man who was president and they still respect him. i think he and his running mate could be a powerful team. david: i will refer back to tim ryan. when we look back at 2016, donald trump one in states like michigan, wisconsin, and ohio because he got the issue of blue-collar workers who felt they had been left behind in an increasingly separated society. when you look at joe biden, when you look at kamala harris, delay's beak to the voters of ohio and michigan and wisconsin -- do they speak to the voters of ohio and michigan and wisconsin saying i feel your pain? hillary clinton did not get through to those voters. stefanie: i think they do. i like tim ryan getting into the

race because it will highlight the issues rural voters are facing. this democratic ticket is all about the ticket. it is not just the presidential nominee. it is about who that buys presidential candidate is. toid: finally, when it comes 2020, president trump made a lot of promises to those blue-collar workers. whether he has delivered a not, do they think he has delivered? is there a risk for them to say you promised me all that stuff, i did not get it. lanhee: i think he is able to communicate a message effectively. this is why the u.s. china negotiation is important. that is delivering on the promise that i did tariffs and he willon china, but back off when there's an economic effect that could damage his voters. obviously people will hold him accountable, but even if you look at his actions on the border, the same thing. he is looking to follow through and express yes to on that.

david: many thanks to our panelists. stephanie james and lanhee chen. coming up, daniel yergin on geopolitics. alix steel and i interview him together. that is next. this is bloomberg. ♪

david: you're watching "balance of power" i am david westin. venezuela has more oil reserves in any country in the world, which makes it more perplexing to watch it collapse. we welcome a foremost authority, daniel yergin is vice-chairman of ihs market and the author of the pulitzer prize-winning book, the epic quest for oil, money and power. we welcome him back to bloomberg

and for special bonus we get joined by alix steel. great to have you back. let's start with venezuela. we can pick up a chart showing how the production level is coming down. how bad is it and is there any end insight. it is terrible and getting worse. maduro is waging economic warfare against his own country. around 2013 it got worse. they stopped investing in things like maintaining the electric power system. it is a country that has collapsed. -- they cannot produce oil or get their water to peoples in the cities. alix: you also have president trump's on the sideline pressing for sanctions. can president trump want sanctions on venezuela and iran at the same time? aniel: you are now at critical juncture because the sanctions on venezuela are supposed to tighten and iran next month. we have an oil market that is

tighter and venezuela is going down much faster than people thought. david: let's turn to iran. how long would it take if we turn this big it -- turn the , how longvenezuela would it take to bring that production back on? daniel: it depends where you want to bring it back. you could bring it back to several hundred thousand dollars -- 700,000 barrels a day, -- several hundred thousand barrels a day. it has been so start of investment, equip and has been stolen, and talented people have left the country. alix: also of you are a major, what is your incentive to go in there? why would you want to take on that kind of risk? daniel: that is true. youou look at the majors, see them focusing more of their investment in the united states. less political risk, more certainty. there is not that sense of reserves, which you had 10 years ago. they would go everywhere.

david: let's turn to iran. a chart shows lower production. the united states says we will shut it down altogether and then they start giving waivers. it still has come down dramatically. it is not down to level it was before. what is the reason for the waivers and how much are they taking out of the pinch of sanctions on iran? daniel: the reason was partly what you could get done. i was in india when this was being negotiated and i remember one of the administrators said we're not going to zero. it had to do with their politics and the same concern -- the president said this is a spike in the oil market. some of those factors are still at work. , because india has an election beginning this month. they're worried about prices going up to i think it will be a continuing negotiation. alix: that brings the question of how does saudi deal with it. the last time we had to deal with waivers, saudi arabia wound up pumping to get rid of no

waivers, and president trump wound up surprising everyone. daniel: i think the saudi took a lesson because they heard the president thought it was going to zero, let's get it out, and then prices went down. the saudi's now, the message they seem to be giving as they will follow the market, rather than lead the market and they will wait and see what comes out of this. this administration will continue to push for zero exports. the question is, where they might do it -- one way they might do it is by saying they want zero commercial exports by later in this year. then you have to do more now. the two big countries, the difficulties are china and india. we see this attacking oil markets. david: we saw news a few days ago as they went out on the roadshow to raise money. they opened up their books a little bit. you know that world so well. was there anything in there that surprised you? daniel: i think they have

already signaled about the size of their reserves. the most surprising thing was how profitable the company is at $111 billion. alix: let's check a -- let's take a moment. bigger than any other company in the world. that is serious money. daniel: it is saying oil is still part of the game. alix: they can get oil out of the ground for $2.80 a barrel. if you look at cash per barrel, it is less than shale and total. what you do learn about the saudi government? daniel: i think the saudi government has lowered its take from saudi aramco and this is continuing to commercialize the company. it is the central asset of the country and oil makes that economy go around. david: this roadshow had to do with bonds. we are still talking about an ipo for saudi aramco.

one of the things that came out of this information is it is still owned by the kingdom and we have to take money out in taxes and we will take more we will take less. was that a surprise at all and is that limit the value of aramco shares? a very i think that is important thing and i suspect it was heavily discussed about sending a message about certainty to investors that the government will not do what governments often do and say we want more, and they have to send a message about stability if they will move forward. david: there was also -- alix: there was also talk about learning what we did about their largest oil fields and comparing that to the permian. everyone thought that was the biggest oilfield. now we think maybe that is not true. the permian produces more. did you get that? daniel: it is interesting to see how they are managing their most important asset much more prudently and not producing it has fast. what struck me when i was looking at those numbers, it is

now about a third of their production. that is less than the 30 -- then the permian. the u.s. is producing 2 million barrels a day. more than saudi arabia. one million barrels more than russia? david: will that continue. -- will that continue? you hear more caution. daniel: you see a change in the attitude of investors. it used to be growth in any cost, now it is growth at what cost. you see a slowdown in independence. investors are saying we want capital back. alix: do you feel we will see more consolidation, on the one hand you had the big guys coming into the permian, they had a lot of money to throw around. they will not care of the oil price moves $10. the private players will care. what do you see? daniel: i think the rules of the games have changed and you of the majors, both exxon and chevron saying one million barrels a day out of the

permian, it is a different game. that combined with the pressure on the independence, there will be a pressure to consolidate and be competitive. david: the permian and the shale has transformed the energy industry. what about geopolitics? there was a time not that long ago when united states had to be very conscious of buying oil, particularly in the middle east. there are things we cannot do, could not say. how much more power, authority, freedom of movement does united states have today in geopolitics because of oil production? daniel: i think we have more. it is not unlimited. .ome people think we are free we are still part of one global market. you travel around the world, they are much more aware ware here -- much more aware than we are of what this change means. when people say the u.s. is losing its edge, suddenly have the u.s. as the world's largest

oil and gas producer. it does have a geopolitical significance and it does give us the flexibility we did not have before. david: fascinating. i can get interested in energy. alix: he is not faking it. david: it does not stand still. it is always changing. ,any thanks to daniel yergin and my cohost for bloomberg daybreak, alix steel. news from washington. malpass official david has been unanimously selected as the next secretary of the world bank. he starts his five-year term on tuesday. big news out of new york. this is bloomberg. ♪

david: this is "balance of power" on bloomberg television. i am david westin. rudy giuliani became known as

america's mayor for the way he handled the aftermath of the 9/11 terrorists attack. more recently he has been known for his tv appearances as donald trump's lawyer. this is not stop him -- our colleague stephanie baker does financial investigations for bloomberg in europe and she joins us to tell us about her extensive report. stephanie: thanks for having me. david: is an extensive report. give us a sense of what is really going on. stephanie: it is an unprecedented situation for the presidents personal lawyer to be simultaneously doing all of this foreign consulting work around the world. in the past, presidents have had their own personal lawyers and other clients. i think the nature of giuliani's work, because it is so , i think it does make it unique and it creates obvious conflicts of interest.

we do not know who is paying him . we do not have transparency about who his clients are. for some people, it is just a matter of appearances. it does not look great. seven democratic senators late last year took it one step further, saying the department of justice should take a look at giuliani's work for possible violations of the foreign agent registration act. without that transparency, we do not know whether or not he is having a quiet word with the president on a foreign-policy issue. david: from your piece, what i take is the nature of the words advising on security issues, something he did before president trump was elected. he woke up,ike president trump was president, and then he got to advise on security. because of his experience in law-enforcement, as well as being mayor. stephanie: when he stepped down as mayor he started his consulting business and has been doing this for many years. it is not like when he became

trumps cyber security advisory and then his personal lawyer, it changed. he continued doing the same business he did with no view to how it might look or how it might be perceived or whether or not clients might be seeking out because they thought they coul many thanks to stephanie baker. sign up for the balance of power newsletter at bloombergpolitics.com or at bloomberg.com/politics. get the latest on global politics in your inbox. remember bloomberg users can interact with the charts show using gtv . catch up on key analysis and save charts for future reference. live from new york, this is bloomberg. ♪

jonathan: i'm jonathan ferro. from new york city, bloomberg "real yield." starts right now. coming up, the return of the goldilocks jobs report and u.s. payrolls bouncing back despite signs of a solid labor market, the president repeating his call for rate cuts, and further distortions in global fixed income. credit with subzero yield piling up. we begin with a big issue, the goldilocks jobs report returns. >> a solid report. >> the perfect report for the fed. >> this corr