House ways and Means Committee chairman, paul ryan, hosted treasury secretary jack lew in a discussion on the prospects of tax reform. First, we have breaking news a major rally in equities and in oil. Its go to the breaking news desk and our chief markets correspondent, scarlet fu. Lets head into the bloomberg terminal where i can show you what is going on. The Dow Jones Industrial average in the yellow and the s p 500 and white, reach new highs for the day. The nasdaq is in green. The dow jones has added more than 150 point and is now headed for a sixth straight day of closing up or down by at least 190 points. There is that volatility summary people warned we would see in 2015. You can credit the rise in oil for the strength in equities. Youve got rent crude set to close more than 20 above its january 13 close. That would meet the technical definition of a bull market. Brent crude in a bull market if you can believe it. Scarlet, thank you. Back to the u. S. Budget. Treasury secretary jack lew spent the day selling president obamas new spending plan on capitol hill. It was his first chance to discuss the prospect for tax reform with the new chairman of the house ways and Means Committee, paul ryan. Peter cook is on capitol hill with more. Is there any sign a tax deal is possible . I could say from the hearing today on capitol hill, about three hours worth for jack lew. We saw differences between democrats and republicans on display, but there were a few glimpses of bipartisanship on tax reform and trade and perhaps even some other areas. But this hearing kicking off around 10 00 eastern time and from the start, from german ryans opening statement, they made clear they dont like a lot of what is inside the president s 4 trillion budget plan. Paul ryan like that was delivered on time to congress. He said the tax hikes on no wealthy are not going to happen but he left the door open to some prospects for bipartisan cooperation on tax reform. Listen to what he had to say. The kicker is, even with these tax increases, you dont mail us the budget because you dont get spending under control. Im disappointed in this proposal but as far as im concerned, i would rather spend time not focusing on our differences. Lets try to find some time and a way to see if there is some Common Ground. The tax that task before us now is to try to find some Common Ground and uncertain we can get this done. Ryan said the top priority is trade and they could work with the of on trade. The bigger question is whether democrats will come along for the ride on that issue. On tax reform, the biggest stumbling block right now is there will be critical negotiations going forward. How do you handle all of those businesses that are not corporations . About 80 of the Business Community out there would not be covered by reform in the Corporate Tax code. Even paul ryan said the administrations proposal makes some small steps in the right direction. Peter, thank you. Cheap gasoline is one reason u. S. Auto sales continue to surge. General motors, ford and chrysler all reported gains of at least 15 last month. And fords bestselling pickup truck at its best quarter since 2004. Matt miller joins me here this is impressive. Great news, especially for fords new f1 50. Many have wondered if its worth the cost to switch over production they even took 13 weeks of downtime to put out this partially aluminum body truck will stop is turning out to look like a good bet by former ceo alan mullally. A great month for ford and a great month for general motors. Even know they slightly missed the streets estimate 18. 3 was the gain. A fantastic month also driven by truck sales. Trucks and jeeps are what is selling right now. Buyers are not going for the smaller vehicles because gas is so cheap and credit is so easy that it makes selling these big, more expensive, bigger margin vehicles easier. Talk to us about cheap gas and the role its playing in all of this. There was thought that it would work against the f1 50 because the argument they make for a lighter truck is that its more economical and fuelefficient. Some analysts were worried that would deter people from buying the new truck, thinking they could do well with cheap prices. Its helping people by cars you would have thought of as gas guzzlers and previously would have stayed away from. One Company Getting a boost from strong car sales is autonation. The biggest new car retailer in the country reported an increase in revenue for the fourth quarter. The ceo, mike jackson, joins me from florida. Good to see you again. Its great to be here. Especially since we had our best quarter ever in the fourth quarter. Earnings per share of 1. 02, up 23 from the prior year, that 17 quarters in a row of doubledigit growth. How much of that is due to the fact that autonation has been buying its own stock . I would say a couple of Percentage Points for the fourth quarter. If you look at what really drove the results, its a revenue increase that took us over 5 billion in sales, and that is a doubledigit increase in revenue for every sector of our business. New cars, used cars, parts service, collision and finance and insurance. It was an acrosstheboard performance with some Share Repurchases as icing on the cake. Were looking at some charts with autonation up nearly 30 . Why is autonation doing so much better than the carmakers . We are pursuing a strategy of building our brand from coasttocoast. Weve moved away from some market names, some of which were 100 years old and the company, autonation and within two years, we have higher awareness and higher consideration for the name autonation than we did for all the legacy names combined. Combine that with our internet strategy, which is going transactional, linking our technology directly to stores, thats a winning equation for our customers and in the marketplace. Is credit to loose . Are too many subprime buyers getting into new cars and trucks they just cannot afford . If i look at autonation, when we retail 100 vehicles, eight are financed by subprime customers with some challenges in their credit. Just because they had some prior difficulties in life and paying the bills doesnt mean they should not have a Second Chance to have a vehicle to get to work and get their kids to school. If i look at all credit out there by the American Consumer its Something Like 12 trillion, of which 1 trillion is auto loans, we have the lowest default rate on auto loans in any type of lending, including mortgages, credit cards and student loans. I think the Financial Services sector is very sound and secured by the car. What is the effective cheaper gasoline on truck buying and Consumer Confidence in vehicle demand . Matt referred to it earlier first, it puts 150 billion in the consumers pockets this year. The price of gasoline determines the type of vehicles people by. At two dollars a gallon, they want bigger vehicles and they want to go faster. If i look back just a couple of years ago, trucks were trending downward toward 45 of the marketplace. When all of the numbers are in today, it will have roque and through 55 of the marketplace. Its a stampede into larger vehicles driven by Consumers Expectations that gasoline is cheap and is going to stay cheap. This is a challenge for the industry because weve been mandated to sell fuel efficiency, but without enough economic underpinning for a rationale for fuel technology its a problem. I have to ask where do you think the strength is coming from in the u. S. Economy and can that strength withstand a move by the Federal Reserve to raise Interest Rates by midyear . I think the economy has moved into a new phase, where we were totally dependent on Monetary Policy for the past five or six years which led to test the gdp growth, we now have a sustainable recovery. Lets say 3 gdp growth driven by energy, recovering and housing, innovation by american entrepreneurs. I think the normalization of rates in the u. S. , i think the time has come and i would support the Federal Reserve beginning to move rates. I would rather see it sooner and gradual than getting behind the curve. Mike jackson, autonation ceo, joining me from fort lauderdale, florida. Always a pleasure. Thanks for your time today. Good to see you today. Still ahead, crude oil is rebounding. Does that mean we have seen a bottom . Alix steel has more when we return. Welcome back. It is 15 minutes past the hour. Lets check bloomberg world news. A video released online reportedly shows a jordanian pilot captured by the Islamic StateExtremist Group in syria being burned to death. The authenticity of the video has not been confirmed, but the spokesman for the Jordanian Armed forces has confirmed the death and vowed punishment and revenge. German chancellor Angela Merkel says she does not expect a quick resolution to the talks over the greek bailout. She expects the talks to drag on until the current round of funding runs out in the spring. She spoke earlier in singapore. The greek government is obviously still working on its mission, which is understandable if you think how few days this government has been in office. We shall wait for proposals and then enter into talks with them and there will be sufficient opportunities for this. I dont want to comment on every single detail that is bandied about stop bandied about. The greek government is backing down from its statement that the euro government should back its debt. Thats the latest world news. We will have another up eight in half an hour. In other news, oil prices seem to be making a comeback. Rent is seeing its best threeday rally since 2009 and west texas intermediate is back about 50 for the first time in a month. The theory is Oil Companies are curbing production, but is this just a fake out . Has oil hit a bottom . No. This rally is deathly a fake out. Weve got numbers from baker use a scifi. 5 decline in the u. S. That got some traders who were short caught. Its really been about covering the short positions so its a piece of fundamental news and a trigger of technical buying. A lower count may come into place and may replace Capital Expenditures from companies. When will that have an impact . Some say i have no idea. Its going to happen at some point, we dont know when. One analyst pointed out 80 of production the rigs shut in last week were vertical drilling, not fracking but older place which is a little more difficult to ramp up. Its not the juicy production we are used to and thats why we see production higher now than it was eight months ago when you saw oil eight months ago. How is this impacting the price of oil . Wrongly. About 10 of Refining Capacity is being shut down. That should be bearish for crude because you have extra oil in the marketplace because refiners are not working. Refiners are producing products, lifting oil with it, but thats not an emphasis of underlying demand. These product stocks are winding up in storage, not in your car or home. Its not underlying demand supporting these prices, and thats why im calling it a fake out. Im not the only one. Citigroup and Energy Aspects say we could see lower oil prices. Lets get you some of the other top stories we are following on this tuesday. Amazon may want a part of radioshack according to people with knowledge of the matter. Amazon may bolster its brickandmortar operations by buying some radioshack stores. Radioshack has more than 4000 u. S. Locations. Standard poors will pay almost a billion and a half dollars to settle claims it inflated rainy inflated ratings on subprime markets ons. Subprime mortgage bonds. They are settling a similar claim with calpers. S p will pay calpers 125 million. Our author harper lee is back with his second book more than 50 years with her second book more than 50 years after the publishing of to kill a mockingbird. This will be chipotle is out with a earnings after the bell. The restaurant is doing with its controversial decisions on its pork products. Bottom line continues in a minute. As to belay prepares to report after the close of trading investors remain unfazed by the restaurants pork problems. They harm they halted sales of carney does in what one analyst calls a rolling pork blackout. Julie hyman took it closer look there is a giggle effect, but this is serious stuff stop rolling pork blackout is a pretty fantastic phrase. Its a serious issue because chipotle, which has been growing very rapidly has these supply issues that time because theyve made a commitment to sources products from what it consoles considers to be sustainable or humanely raised sources. It seems as though theres only so much supply out there in the world. If you look at the growth of tripoli, you can see why this might be an issue. Sales at stores open for at least a year outpaces what we have seen in the industry. Last quarter, it showed almost 20 samestore sales growth. The next one was nathans famous which owns kenny rogers will stop popeyes and Buffalo Wild Wings are in the single digits. Carney does crnitas does not account for a High Percentage of sales, but Revenue Growth may be decelerating to some extent. If it does decelerate, it will be the First Time Since the Third Quarter of 2013. You used the word humane when you talked about some of the ways these animals are raised. How much more are farmers paid to raise them this way and how much more does it cost them . We dont know precisely because theres an enormous range of what you would consider humane. One way we can get at this is look at the retail price of a boneless workshops abe boneless pork chop. On fresh correct, you can get an antibiotic free boneless workshop at about nine dollars per pound. The cost of these things on the retail level is far above. Diamond ranch happens to be chipotles largest pork supplier. This is something that can be costly on both sides and talking to farmers, trying to get out what is involved in the changeover, is difficult because there is a range. Chipotle requires certain things like standard housing for the pigs and pregnant pigs have to be housed in pens and they have to have access to the outdoors stop the means these farms are less reductive for the farmer. Julie, thank you so much. Coming up, Federal Reserve chair Janet Yellens one year anniversary. We will get a report card when bottom line could then use in a moment. Continues in a moment. Welcome back to the second halfhour of bloombergs bottom line. Lets get you to some of the other top stories we are following. United Parcel Service says growth this year will miss the high end of the target. They blame higher pension costs and a stronger dollar. Ups says fullyear profit will increase six to 12 . The wall street journal says staples and office depot are in talks to combine. Last month, starbird insisted staples higher someone to work on the deal. Boston is still recovering from it second major winter storm in a week. The mayor said it will take another day to dig out and that means the victory day parade for the new England Patriots will be held on wednesday morning. Thats a look at the top stories we are following this hour. Janet yellen was sworn in as fed chair one year ago today. Joining me to assess what she has accomplished in the chief u. S. Economist at j. P. Morgan chase and new york. Welcome back. Good to see you. It might not be fair but americans like to grade all types of performances. What is Janet Yellens grade one year as head of the Federal Reserve . Fax i think at least a b or be plus b . Unemployment has continued to fall Financial Stability has never been in question and if you look at the attitude in Consumer Sentiment for ordinary americans, people seem to think the economy is going in a good direction. The only reason i would not give her an a or a plus is she has not been given a lot of challenges in her first year. If you think about the last couple of years when weve had european debt crises, the Lehman Brothers collapse coming to the brink of a debt ceiling default, last year was in the grand scheme of things recall. She has not truly been tested but i think shes done very well. Last spring, she was said to be behind the curve when it came to reading the inflation tea leaves, but she turned out to be right and called a lot of the data noise. Will that keep the fed from raising Interest Rates midyear as most people expect . I think that is an instructive episode. She looked through some of the shortterm ups and core inflation. We heard at the press conference that she was looking for shortterm downs in terms of the transitory impacts and i think its going to be a close call because you only have four cpi between now and then episodes a close call to see if thats enough time to judge if what we are seeing is transitory. If you think of the midyear broadly as the middle to quarters of the year, its safer to say it seems like a likely lift off. She has continually highlighted a mix of alternative measures of labor market slack that has not fully normalized in the aftermath of the recession. What does she need to see to feel confident enough to raise rates . On the labor market, she and her colleagues are getting increasingly confident that not only the Unemployment Rate but these writer measures are showing the kinds of improvement they need. If it were simply a matter of labor market conditions, they are probably close to being ready to normalize. The bigger issue is the soft patch we are seeing an inflation, whether its a soft patch or something more longlasting. All these other indicators are moving in the direction they want to see. You mentioned inflation. The fed has dismissed headlight inflation from but core inflation has slipped recently. What is causing the decline and does it matter to chair yellen and her colleagues . A lot of what we have seen in softness and core goods, Core Services have held in relatively steady and i think theres a lot of evidence that the core goods are going to be more impacted by Global Development things like Energy Prices and the dollar. As long as that is the case, they are willing to look past some of what we are seeing. Weve heard something similar from John C Williams last week. But you can never be too sure because they rely on models. It does seem like a lot of what we are seeing is global this Inflationary Forces impacting domestic developments. Stronger dollars leading to tighten financial conditions and that is in theory the goal of rate hikes. Is the stronger dollar doing the heavy lifting for chair yellen and the fed . I think that is a legitimate way of looking at it will stop the move in way of looking at it. The move in the dollar will be good for the u. S. But to the degree it keeps moving up like this it may enter more and more into the feds consideration. We havent heard that a whole lot yet from fed speak but at the rate the dollar is moving we need to be sensitive to the fact it could start to change their forecast. What will her biggest challenge be this year . I would say getting that first rate hike done without the market jumping to the conclusion that each meeting after that will be a steady progression of rate hikes. They are trying to convey to the market dont think its going to be 25 basis rate hike per meeting. Thats going to be a big challenge. Michael, always a pleasure to have you on. Up next, the latin america report and earnings from some of the bigname banks. That and more when we continue in just a moment. Welcome back. This is bottom line on bloomberg television, streaming on your tablet phone and bloomberg. Com. Stay with us for comprehensive earnings after the bell today. We will get reaction from disney ceo bob iger on street smart with trish regan. Its time now for todays latin america report. Latin americas largest bank type market values profit rose 25 . It topped analyst estimates. The companys loan for folio increased 9. 8 , beating the forecast. The bank of mexico reported net income of 250 9 million earnings of . 19 per share. But it did fall short of expectations. Shares have increased 4 since the beginning of the year. The stock has fallen slightly more than 2 in last 12 months. Tonight on charlie rose, the president and founder of the Global Political risk resulting risk researching group in his report, he writes political conflict among the world great powers is at play more than at any time since the cold war. You can see that discussion tonight right here on bloomberg television. Coming up, when a person suffers a heart attack makes a huge difference. Doctors have found your more likely to survive if you get an attack when youre not in a hospital. That story in just a few minutes. Welcome back. Let check bloomberg west world news. French authorities have launched a terror investigation after a man with a knife attacked three french soldiers outside a Jewish Community center in Southern France stop the suspect and a possible accomplice are in custody. France has been on high alert since the attacks of three islamic extremist that left 20 people dead including the gunman. The russian auto market is bad and getting worse says the ceo of nissan. This is not the first decline. Last year was an 11 decline in russia which was followed by a forecast decline of 20 , which is one third of the market disappeared in a couple of years. I think with the forecast we have in 2015, we should be hopefully at the end but you never know. Nissan and renault have a controlling interest in leading russian automaker. Chris christie met with the british chancellor on the last day of his london trip. Governor christie held talks with british Prime MinisterDavid Cameron and met with executives from britains pharmaceutical and Financial Services industries. That is a look at world news. We will have another up eight and half an hour. Hospitals are a bad place to have a heart attack according to a study from the university of North Carolina. Patients who suffer a heart attack outside a hospital have a higher chance of surviving compared to someone who is already in the hospital. Ron winslow of the wall street journal look at what doctors are doing to improve heart attack survival rates inside the hospital. I read this story twice. The first line of the story is disturbing. A hospital is a bad place to have a heart attack. That would seem to fly in the face of logic, but statistics show otherwise. I totally agree that its counterintuitive but the studies reveal you could be as much as 10 times as likely to die in the hospital if you have a heart attack in the hospital. One of the big reasons is these folks Research People admitted in for Something Else. They were not Heart Patients to begin with, so they are sick from Something Else stop that for a number of reasons made it difficult for people to notice them and they were not there were not for calls in place to rush them to treatment. It would seem that the hospital is the place to receive ultimo care optimal care. In this case, hospitals have done an amazing amount of work in the past decade or so if you come in the door in the emergency room with a heart attack, your time for treatment has been decreased drastically. But in the word, theres not the kind of communication you expect between a surgical board in the emergency room or the cardiology department. There just was not the kind of system in place in many places to get attention to these patients. The graphic we have on the screen says one a hotter to stack when a heart attack occurs outside the hospital, 60 minutes is the average time youre treated. At inside the hospital, one hundred 29 minutes. Are we literally talking about the difference between life and death . Yes. Thats one of the things that surprised and concerned the cardiologists who discovered this difference and who are trying to do something to see if they can shorten that time. Is it possible some physicians dont realize a patient is in fact having a heart attack . Could some medicines be masking the symptoms . Yes. These are patients who are very sick and are probably on painkillers if they have had surgery, for instance. They may not even know they are having a heart attack or feel the pain. They may be sedated they are in a place in the hospital where doctors and nurses are not necessarily looking for a heart attack to happen. Is there a difference between those coming in with a preexisting condition versus those who are not . Certainly, anybody who has multiple illnesses is going to present a big challenge to medicine no matter what. People who come in the door through the emergency room may not be a sick, they are typically not as old as the people already in the hospital according to the patients we are studying. Many of these sick patients are not good candidates for the angioplasty treatment doctors used to open up an artery to treat a heart attack. Since these studies came out, what are some of the protocols that have been put in place to reverse this trend . Doctors at the university of North Carolina who were one of the studies that revealed this problem they have organized a group of about 12 hospitals and they plan to test some protocols to see if they can reduce is told. One of the things they want to do is educate nurses in the noncardiac words who might not be as attuned to looking for heart attack symptoms. The main thing they want to do is as soon as somebody is in a situation where they might be having a problem is to get an electrocardiogram. There is a classic signature on the tracing of an electrocardiogram it tells you if youve got a total blockage in your heart and thats the big heart attack they want to get treated. I hate to oversimplify but it seems of someone is distressed and the ambulances called and they are on their way to the hospital, that care begins getimmediately in the back of the ambulance. They are taking the Blood Pressure and they have the equipment in that ambulance and that person can be halfway through successful treatment before they ever arrive at the hospital. That is true and as i mentioned earlier, thats where the focus of the efforts on heart attack has been for the past decade to get those patients into treatment and into the right place as fast as possible. The people who are in the hospital have been overlooked and thats what these hospitals are trying to do now. This is a fascinating article in todays edition why the hospital might be the last place you want to be if you have a heart attack. Thank you for coming in. Stay with us. Well have another check of the Market Movers on the other side of the break. Get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet and on bloomberg. Com. That does it for this edition of bottom line. On the markets is next. It is 56 minutes past the hour and you know what time that means. The s p 500 right now and the dow are extending yesterdays rally, their first backtoback gains in a week and a half. A higher move in oil prices have made Energy Companies the bestperforming group this week. Take a look at the Energy Spider etf, up almost 7 for the past five sessions. With the biggest laggard of 2014 said to be the best by of 2015 the director of etf research were s p capital joins us. This depends on where you see oil prices headed. Brent today approaching a bull market since its low on january 13. At what time is this more than just a Short Covering rally . I think we need the shorts by situation to work itself out. We think oil will save will stabilize around here but we are not a ring the Energy Sector. We are not overweighting it, though xl a is a way to get increased exposure. There are several reasons why oil prices have been climbing. Which of these are credible . Is it the decline in the dollar . All of those things are a factor and at some point, it was going to form some level of stability and support, whether its here or whether we have another leg to go is to be determined. We think production cuts are a positive for the long run but its a negative for the Drilling Companies that will be a short term negative impact. We think the integrated companies are the better place to be. Next we want to bring up the headline again brent crude entering a bull market. You mention you dont want to be exposed to Energy Companies. We need to see some stabilities. If you are building a portfolio, its a great way to get exposure to the Energy Sector because its large exposure to the integrated Companies Like exxon chevron that are really in charge will stop we would rather have more exposure there than we would to the enp Companies Taking the brunt of the fall. At the same time, the big integrated Oil Companies reported results. Only 17 of the 43 companies have reported. What you expect to learn from those who havent . We had more production cuts that will play themselves out. Analysts brought down their expectations for Energy Earnings according to s p consensus numbers quite sharply. Have they moved sharply too much . We will see. But weve got to see what they say in the commentary. Thank you so much for joining us. Street smart is next. Trish big rally underway. We have 60 minutes to go. Coming up today for you we have a back seat right now as oil rallies for a fourth straight day and investors speculate that they are curbing the supply glass. President obama wanted to fix the nations infrastructure with money from taxing Companies Overseas profits. Is any of this going to actually work . I will be speaking to johnson knew knew about it all. Earnings coming out from disney after the bell. Do no