Revelations about is linked to 13 deaths, documents show gm canceled a proposed fix years ago after years concluding it was to answer. I am joined by matt miller. On the hill tuesday and wednesday, testifying before congress. I am going. I will have a front row seat there to listen to what congress asks. General motors has a history of big fights with congress and the safety officials they kicked it off with the corvair and their battle with route ralph nader. They had a problem with their tanks and trucks causing solutions. Now this. It is interesting. We tend to think of General Motors as a company that has a reputation for putting costcutting before safety. Washington. Ght in this is a new company. It was run by washington, d. C. For a little while. Now coming out the other side, this is new. The way mary has responded is haverent than gm ceos responded in the past. She apologized. She hired an outside investigator. She put a Vice President in charge of the issues. She apologized and has also been forthcoming with information and not flattering on General Motors. She has taken the bull by the horns in a different way. General motors will show their colors in a real new company now than they have in the past. It cannot be good for their sales numbers. When consumers hear this, they do not want to buy the product. It is a recitation hit certainly. Stay with me for a moment. Elon musk might have no love for new jersey governor Chris Christie, but the new york governor, it is a different story. A deal to keep five stores and add more while heaping the auto dealer franchise network. Two weeks after Chris Christie band tesla from directly selling at its two new jersey locations. Governments leadership, tesla, new york franchised dealers. I lost track of the quote. It is a little different than what tesla stance has been before. Elon musk has believed these are completely undemocratic. They skewer consumers. They charge hefty fines, they are a monopoly, and they should be gotten rid of. I read between the lines, tesla wants to compete with open storage but eventually they want to sell massmarket cars and they will need to sell the dealers. They are. ,he one thing that is different and i went through a tesla store this weekend to go through the process of buying a tesla, and the one thing you miss from the dealership experience, the only thing, is the fact there are not a number of cars in the store to buy. Walk in and buy one right now, it is not possible at tesla. You could do that at a ford dealership. Is just asing else pleasant and just as easy. There is nothing missing except for this old kickbacks to politicians in order to keep these stupid laws on the books. If you are an american company, it is a free country, i made an american consumer, i want to buy a product from you. Lets do it. Why have a legislative middleman to rip someone off . To put this in a larger building aon musk is 5 billion giga factory. He will be building it here. His lithiumion battery client. Governments are rolling out the red carpet to get the plan put in place. Two of the four states, he is looking at texas and arizona, where his cars are banned. Believe to get banned in texas. Jersey make sense. It is one of the most corrupt states in the country. Texas is all about freedom and free markets and capitalism. How could they possibly been it. It does not compute. They feel they it is payoff. Less not in trouble. They offer these at friday you just talked about. On another note, i was just in hong kong. Quite a few model lessons are on the roads. Their head of China Company for personal reasons. A continuing problem for elon musk keeping good people of his company. It is a red flag. I read it differently. You know a lot more about the company and the way he operates. But i thought he wanted to bring someone else in. It could be a massive area of growth. Big and spacious. Although the wealthy chinese typically like to have chauffeurs, i got to drive a model s for the first time this weekend and it was unreal. Sportyot expect performance. It handles like it is on rails. I joke it up and down the bronx river parkway, the best part right there at the end around 22 and 95. Thank you so much. Of ouryou will be a part tesla special. Be sure to tune into our special program on the day new jersey passes ban on sales we will have an indepth look on the. Scalated battle we will go through the ins and outs of exactly what the battle is about. In ukraine, john kerry met with for rushing counterpart four hours yesterday to find a solution to the rapidly evolving touation in the ukraine. Diplomaticpossible measures are joining on the phone from moscow is on. They started investing in ukrainian sovereign debt. Give us your take on what you have seen so far being in russia but also trying to get into the ukraine. Is thisim picking up is not a flight russians arent this is not a flight russians are internalizing too much. There does not seem to be a resurgence desire for empire. There seems to be a few roadblocks and discussions. The russian proposal there really leaves the russians a lot of options pushing their referendums in the states or provinces. The markets seem to be an uzi astec. All trading in 10 . For recent past, at the highs. You started buying ukrainian debt. Why . What were you seeing then . We got in and out. When the problems really started, there were a few days, unfortunately, we bought most of so, we have done reasonably well on this trade. The question now is, where do we go from here . It is different for us. What is really interesting, the ukrainians have been reaching out to creditors to assure them we are a priority. Movers amongoup of private creditors to propose a voluntary swap to help on the debt relief are a cash flow basis, to push back maturities and youve use some of the loan guarantees being discussed, it to use those as a way to provide cash flow relief to the ukraine. This occurrence might come up with something pretty revolutionary in our markets. Completely out of ukrainian sovereign debt . Are you completely soldout . No. We are still involved and we are investing along the curve. We invest in a number of the Corporate Bonds out there. There was a risk. Not often have to invest in environments where were worried about invasions. It was when we are willing to take. It is in russias interest to push it that far. Thank you so much. And ceogement chairman there in moscow. Coming up, the feds next move. We may get a hint when janet yellen speaks later today. Also, inside the new way to sell yacht to billionaires. You are watching in the loop live on Bloomberg Television, streaming on your tablet phone and bloomberg. Com. Is making the keynote speech this morning. The markets will focus on winning when exactly she believes Interest Rates will survive. I had a chance last week to sit down with charles evans, holding the speech today. He waited in on exactly those same issues. We need a stronger economy to get things moving and get wage pressures up a little bit. For more on the fed and the speech, i want to bring in mike mckee. It was interesting speaking with Charlie Evans and how focused, as you know, as he is on , and how much further along he believes the economy needs to be in order to even talk about raising the Interest Rates. Is much farther out than some of his collies. Yes, they are probably the most dovish out there. The three of them represent those who think we still have a lot of slack in the economy. Hiring one reason the stays low. It means we will not see inflationary pressures anytime soon. You can see that in Consumer Price data. Fedste is way below the two percent target. They would do a lot more to try to stimulate the economy and bring that up. The fed operates on forecast. They talk below will happen 18 months from now. They anticipate the economy will pick up as the weather warms and pick up through 2014 into 2015. Charlie evans thinks he they might raise rates by the end of 2015. Remember it was the middle of 2016, the feds official language some time ago. Back as they moved economy has picked up. Jimt. Louis fed president was also there and both of them were speaking, on different days, and they gave more ideas on the time frame of ending the Bond Buying Program. This is not calendar based, it is databased. This is some kind of timeline of people we are laying the conditions that people will Pay Attention to and even a sixmonth timeframe depends on when we finally finish asset purchases. Trying to step back from what the market thought they heard was a definitive statement from janet yellen at the press conference where she said, look, we might be talking about six months after the Bond Buying Program to raise Interest Rates. Was she not vague enough that the press conference . Will she clarify this time . I do not the she will say anything today. Historically, the fed chairman, when they speak to things like this, they stick to the topic. I would not put a lot of stock on the idea she will make policy announcements today. Maybe she wasnt vague enough or maybe she actually meant it. It is hard to tell. If you think they end in december, you get to the latter half of 2015. The important thing for market watchers is that the fed is telling you it will be data dependent. If the data come in strong and it drops at the rate we have seen it, they will start raising Interest Rates. You keep hearing this and you heard just now. Data dependent. Theyre going to be really focused on it. There is the confusion. Look to gdp as one marker. They want to see the economy pick up. That means any gains in the labor markets will be sustained. You canhe labor market, look at parttime work. Our more parttime workers getting fulltime jobs, the length of time people are out of work when they are unemployed, is that starting to fall, what happens to hourly earnings, both on labor markets and the inflation question. If all of those things are moving in the right direction, they will feel better about where the economy is. Thank you. Coming up, time is running out to sign up for obama care. We will talk with the head of the Nations Capital is health care provider. No a makes a splash at the box office. Good morning. I am betty liu. It is time for the days bloomberg big number. 44 million. Is bringingch know in its first weekend. Theyre under pressure from some who have said it takes too many liberties from the biblical tale. Box office. Com projected noahs earnings lower. Bloomberg television is on the markets. On this monday morning. The morning. Right now, we are looking to close out the First Quarter. It is down so far in the First Quarter. A half 500 is gating percent. Treasuries are following and extending the clients for the month of march. The mating in job support data will be stronger so yields are up 2. 74 . Weaker this yen is morning. In the same vein, goals gold is lower as well. About a sixweek low. We are back in 30 minutes once again. Thank you. Heres a look at our Bloomberg Top headlines this morning. More than three weeks after fight 370 went missing, the search remains large and complex. Ships from 10 nations are involved in the search. There is no time limit on the search. Apple and samsung are heading back to the court today. Tole will try to convince ban sales of its phones in the u. S. The court found samsung copied apple part this Technology Two years ago but did deny the tech giants is right to request sales. The u. S. Stock market is rigged. Ripping off investors according to a bestselling author. Says traders with advanced computers make tens of millions of dollars by jumping in front of average investors. He made the accusation in a 60 minute interview to promote his new book. The subject ofs many stories and investigations. Timeirst yearly signup for obama care closes today. The early return shows the Administration May reach a projection of 7 million enrollees by the end of tonight. Megan hughes joins us with the latest on those numbers and Olivia Sterns is also focusing on health care, specifically the exchanges that got it right. 6 million. Is that really considered a victory . On how you ask them how you parse the numbers. Some said people were having trouble logging in this morning. I got the official word from hhs and they said they expanded their regular Maintenance Program they have overnight a little bit into this morning but that it is getting back online. The administration is hopeful about the 7 million number. Target thee Congressional Budget Office laid whatever you want to call it. All of the problems with health care. Gov. Down toised that number 6 million after all the technical problems. The administration already announced they hit the number. If they can hit that number, it will have amounted to the target they were trying to get to the for the bad publicity. It would be significant as an achievement for the white house. Extension . Ut the give us clarity . The white house has said if you are in line by the end of tonight, you will be able to sign up. We were just checking out the virginia site this morning. There is a line right now to sign up. They say everyone should be allowed to do that. Insurers have questions that this could create some problems. It is an honor system so anyway could come forward after today saying, was trying and having problems with the call centers and the website, and they will still be able to sign up. As far as i can tell from my conversations with administration officials, there is no set end date on that. It raises a lot of questions. Will that be a big enough number to have an impact on insurers. Just a with me. I know you have another part of the story. We have focused on what is gone what has gone wrong with federal Health Care Exchanges. This. S about we have heard so much about what is going wrong with the federal site. As 14 individual sites did actually say they would set up their own Health Care Exchange within that exchange within a state. Some of the well and some have done poorly. Massachusetts only reached six percent of the target rate. That is a statement romney introduced statewide health care to. Very bad luck. The neighbor has been a huge success story. Take a look. In new haven, you can find everything you ever wanted. There is a right aid. There is a right aid. There is a dunkin donuts. There is even an obamacare store. That is right. Of the reasonsne why the state has had more luck than almost any other one in the country. Signing up people for health care. Connecticut is one of 14th and eighth in the country to set up their own Health Care Exchange. They are the only one to set up shop. This store is packed full of people relieved to have the answers facetoface. You are on track to double the amount of an roman. That is right. 350 people are actually applying for coverage right now. On average, it is 211. Make this aing to retail spirits. We are trying to model what we do after apple. We are trying to create product information innovation around an annual cycle of new products. We see ourselves as a private startup. People in the store and over half of them have purchased. And roman has been such a success, they are now Marketing Services to others, pitching it as an exchange. In a box. I would outsource as much as possible to someone else if they can help. Building technologies is a lot of work and not that much fun. And roman has been such a success, they are now marketing weary of the glitches on the federal site, help has done so much better than healthcare. Gov. How does what is going on in connecticut compared to other states and their exchanges . I focus on stores. To the extent they drove success, it is small. Only about eight percent of enrollment came to the stores. Was reiterated to me it was a key part of marketing and getting out the word. A lot of people i spoke to were so relieved they can have these conversations and work things. Ut facetoface there is no h r block for signing up for Health Insurance and filling out these forms is ast as complex if not more filling out your own taxes. A lot of relief. Thing, whatresting else did you write do right and he said, honestly, it was the staff. We often hear about states blaming the contractors. I had public disputes with oracle. Minnesota hired ibm. He said they have been great but it is the way they manage them. State ands another they did not come anywhere close to the target. He emphasized it is the management. Stay with me. Megan is Still Standing by. I want to bring in the president and ceo of the Cleveland Clinic. President barack obama called it one of the best Health Care Systems in the world. Lets just take the connecticut example first. The key part of this is just, the whole system, the whole staff weary of the glitches oe federal, talking about walking people through enrolling in health care. That seems to be a big missing part of the federal health care the numbers,why while better and hitting targets, are still quite low. We think this is important because people need to be educated about what they are buying. There are all kinds of coverage and you have to know what doctors you will have access to and what hospitals and what the responsibility for a portion of your healthcare bill will be. That takes real education. People need to study the spirit it is a complex business. Access health is providing a great service. Do you think the white house has done a poor job educating the public about how the whole thing works . I am not sure it is totally the white houses responsibility. A lot of people are involved in trying to educate people about what to do. This is a very complicated business. Youreed to understand coverage across the country is changing and there is an awful lot of complexity to this and a whatf understanding irresponsibility will be. This is a big change. We spoke last time i was in cleveland about the upcoming obamacare rollout. The clinic is supposed to be a model for the country but it has had layoffs as well. The entire Health Care System will have less money coming into it. Will take 415 billion dollars out of the health care spending. Will have to become more efficient. We see this for every hospital in the country trying to figure out how to reduce the operations that will be less money coming in. You mentioned medicaid last time we talked. In ohio hasansion been hugely controversial. How is that change to gekko we are delighted to see more and more people signing up for medicaid. 350,000 individuals in the space state of ohio. Less than two percent of those have artie been signed up for medicaid opportunities. That has got a longer rollout time than you would see with medicare and the exchanges. I want to pick up on megans point. The latest i heard was 80 of people who signed up for obamacare actually went to medicaid and only 20 went to new private plans. With whathat compare you are expecting to see with trends in enrollment and what are the implications for Health Providers like you . Is 80 of going on medicaid, how big of a toll will that be on your it islity . Difficult to tell. We do not have exact proportions on what will sign up yet. We have not seen major changes so far on the it is difficult to tell. Coming tohave exact number see this. I do not think we will know exactly the indications of this for probably two or three years before we totally understand the implications of the new law in terms of payment. We know we will be paid less across the board and we have to be more efficient. You are seeing consolidation of hospitals, more physicians wanting to be employed. All of which is trying to drive the efficiency of health care. To boil down numbers. Possibly 7 million by the end of in the will be enrolled federal health care changes. Million people uninsured in the United States. Is this really a success . It is a start. Tos change we have the health care in the United States, and the thing was driving us the most was finance. Coming to seethe most expensive in the wo. We knew we had to do something different. This is a bold step and a huge change in the United States. It affects 100 of the people in the most 20 of the gdp. It will be a very bumpy road going forward. There will be unintended consequences of what the bill will be. We have had to figure out there will be a lot of changes going on over that four or five years to deal with the unintended consequences of this. Stay with me for a moment. We have got to grab take a commercial break. The president of the Cleveland Clinic. Megan and olivia, thank you so much on the spirit in the meantime, coming up, many jokes have been made about speaker John Boehners chance his bronze look. We have got the picture to prove it. He may second act want to stick with what he knows. Stay in the loop for more. Nearing the deadline tonight. The Obama Administration pulled out all the stops to gain last minute enrollment. I want to consider that continue the conversation with the president and ceo of the Cleveland Clinic. Also, by the way, we never got a chance to congratulate you on your new book. Way, whichnd clinic i know is out at the beginning of the year. I wanted to talk to you about this care what you are trying to do, youre trying to explain how the clean Cleveland Clinic succeeded where others have failed. We just came back from asia. Every resident has access to health care and it is paid for by the government. If you dont have your own private health care. Talking to people in both of look at usries, they and say, how did he get so wrong in the United States and how to get so costly . One of the reasons we have the difference we did not have that in the United States. Andre a Cottage Industry continue to be. Every hospital is built for its particular community. Physicians routinely were in small groups scattered all over the place. The hospital with and no deaths a hospitals had no connection with each other. A timetem was built in when there was not a lot you could do for people in the hospital and there was not great transportation. You may have all of your health care taking care of in your community hospital. Transportationat and very complicated things to do for people. To concentrate those very confiscated things in certain locations, sophisticated brain surgery or other types of things. Not all hospitals can be all things for all people. Will we ever truly achieve universal health care in the u. S. A long way away. Simple pair was not part of the discussion in this most recent bill. I think it was politically not possible to get there. Absolutely. At some point, that seems to be some. Al, at least for thank you so much for joining us. Author of the new book, which talks about how the Healthcare System came to be. Coming up, alibaba getting ready for its u. S. Trade debut for in just a few weeks by expanding the business model. That could revolutionize the way the entire world shops. And they are some of the most posh votes on the water. We go under the debt to play to americas thirst for yachts. Stay in the loop. Do you have a cool 100 million lying around . With the ceo of the freddy group at the glamorous miami boat show. Got some info insight into how the group is catering to impulsive american buyers. We are one of the top one or two manufacturers in the world. The largest we build is 18 meters. We have a space here undercover and we tried to recreate an Automotive Retail type environment. We use a lounge space and they can come in and relax. We have 30 million of inventory at any one time. If you walk into our store, you are buying from the factory. I spend a tremendous amount of my time with clients and i hear what they like and what they do not like. I work for the manufacture and we have a system here where we see that information back. When we have that at a point where we have narrowed it down and identify the part they want to buy, we take them out and enjoy the experience. Buyers aree impulsive. It is surprising how quickly people will make a decision. People are looking for instant gratifications. They walk in and see some email i can buy it. Class coming up, we will talk about a man responsible for. Egotiating over 700 million they could probably buy a few of those yachts. We will be back. Time now for todays is this verse is that. Jayz and his new business versus something you probably have never heard of. Jayz come hiphop mogul, the entertainer. He started representing athletes about a year ago. Formerseattle to pay the second baseman and ceo, over 10 years. Casey keeps a low profile and could not be happier about it. One of the best offseasons ever for an agent. He negotiated more than 700 million for contracts and players, and he got the richest for 215 million over seven years. The bestknown client is derek jeter of the yankees, but he. Eems to have plenty equity futures are pointing to a higher open so we look like we are bouncing back today. Were on the market again in 30 minutes. Likes up, why he microsoft to buy this for his grandkids. Is his the country that main focus right now . We will tell you in a moment. He is a famous contrarian investor. Tesla in a deal with the state of new york to keep it here. And even had a few more. Youre watching live on Bloomberg Television, streaming on your tablet, and bloomberg. Com. We are 30 minutes away from the opening bell. You are in the loop. Im betty liu. Investors are waiting to hear from pitcher janet yellen, giving a speech in chicago an hour from now. Features indicating stocks open higher. The s p was down for two days and away in a row before bouncing back. Gm Ceo Mary Barra has plenty of tough questions tomorrow from the hill. Document showed gm rejected a proposed fix to the faulty switches because of the cost. She will be grilled by those congressional lawmakers. As thes making headlines electric car maker looks to expand in the u. S. And abroad. On friday the company inked a deal with the new york state Governor Andrew Cuomo to basically allow tesla to keep its five stores with the potential to add more. We also learn teslas general manager in china kingston chiang is leaving the company as elon musk sets his sights on expansion. For what this means for tesla and elon musk, i want to bring a bloomberg auto editor jamie butters in detroit. Lets take the china news first. We have not had a chance to talk about it in the program. Elon musk has lost quite a few people in his company. I. E. Not saying kingston chiang was hugely important to his strategy but he came from bentley, he was the general manager in china, and elon musk has said repeatedly that sales in china are likely to equal if not the even more of a he sells in the united dates. Is this a sign of some turmoil here . Good morning. It certainly is a setback. He lost people at the front times. Along the way, building the company, he almost had departments in serial. Toyotaeneral motors or with a Massive Organization and new models coming through all the time. Sometimes he had people just really when they need them. Right now they need good salespeople in china, especially to position the brand in its luxury space and really know how to speak to those customers. It is a setback. I dont know chang and cannot speak to how particularly gifted he is but this is not the kind of thing elon musk once when he is trying to hit the ground running in china. U. S. We knowin the about the battle that elon musk is having with auto dealers around the country. Just pull up the map of where exactly tesla can be sold, where they are banned, like in states like texas, and where they have negotiated a deal similar to new york. Ohio is what comes to mind, where they are allowed to sell, but in a limited way. What did you think about the deal between elon musk and Governor Cuomo . The new york deal is pretty interesting because it really creates an exception for tesla to continue the stores that they have. They can add stores later, but through dealers. A sort of like from now on, everybody has to use dealers. It does not really create a resident for the next electric carmaker, or more importantly, for a chinese or indian brand to come in and bypassed dealers altogether. At the same time, it is interesting because it provides competition to new jersey. Longut up that map, and as as the states are kind of a patchwork, especially with the states are small enough that you can drive to another state to buy a car, it really gives tesla a lot more power and less vulnerability and gives much more strength to negotiate with new jersey to encourage new jerseys legislature or regulators to allow them to do business or lose it to neighboring states. A look, new jersey has already delayed the date from april 1 to april 15. The Effective Date of the band. Do you think theres something going on, some negotiation may be in the end that they might be able to sell . There is a lot of action going on in the legislature, probably as well with the administration. These are Administration Appointees mostly on the board. We will see. It seems like it would be hard for the board to reverse itself at this point, but things happen. They definitely happen. Fourted to point out the states because two of the state should be in red, arizona and texas, that do ban tesla. The reason why they are in yellow is because they aretwo of the four states in contention for the giga factory, the battery fact erie elon musk will put in place. This will be a big deal, jamie, for any of the states. 6500 jobs. It is going to be a big factor in Commodity Markets as well. This thing is really unprecedented. Factory idea is elon musk not just wanted to be the henry ford of battery cars but of batteries themselves. It is hard to conceive of one factory doubling the Global Supply of something that has become as common now as lithium ion batteries. We see them in most cars these days. A lot of new cars come out with them for the stopstar power and they are powerful batteries used in a lot of ways. Lot for theans a investment, for the jobs. The influences on the state. Do you think he can do it . Know, who knows . This company, as we talked about over the last year or two, they faced so many unbelievable obstacles. If you had asked me two years ago could they sell 20,000 cars and keep growing and expanding in europe and china, i would not have thought they could have done that in this time. So far, they have, and he gives the believers a lot to be really excited about and to keep investing. There are so many hurdles, there is good reason for people to be skeptical and go against this. It is a really exciting market to try to determine what is the value of this really audacious company. Great way to put it. Thank you so much. Auto editor. , tune into our special coverage, april 16, when the new Jersey Stores will be banned from selling the models. A jumpinge that as point to really go onsite this escalated battle against the auto healers, politicians, carmakers. Why dont other Car Companies sell directly to consumers . We will answer a lot of questions on that day. Moving and shaking this hour is House Speaker john boehner. Yes, that is him pushing a lawnmower and a video he posted on his instagram account. In a recent tonight show appearance he said i actually like yard work. In his words, i love green grass. You talk about running for president but he said his love of golf, mowing the lawn, red wine and cigarettes may keep them. For some reason i imagine him doing this shortlist for him to get a tan. But it might not be the image we wanted to show. Up, contrarian investor Steven Leuthold has half the Stock Holdings in asia. Why is he putting so much money overseas . James bonds next car could be an suv . Aston martin is looking to expand to Sport Utility vehicles. Walmart has struggled to keep shelves stocked in your stores. The worlds biggest real taylor says fixing the problem could be a 3 billion opportunity. Covers walmart for. Walmart laid out pretty a glance at the year beginning meeting about the situation. Technology it is an issue and trying to figure out what to do about it. It could be a 3 billion opportunity because the thinking perhapsthey have been losing customers to competitors because of some of these stocking issues. A lot of this from our reporting from renee dudley on our print side. Theyre focusing on improving what they call in stock, how much merchandise available for shoppers to buy. You are going to see perhaps more people being employed by walmart or at least more labor hours added for the people there , because the folks who work at walmart, the complaint tends to be, well, there are not enough people working, so we are stretched too thin and we are working with departments we are not familiar with, perhaps putting things out in the wrong place or not being out on the floor soon enough. Walmart has at the problem with inventory exceeded sales. It happened 10 out of the last 12 quarters. You get a problem with ordering versus how much buying being done and you get some inventory flow issues as a result of that. Have they given a timeline on how they are going to address this . Apparently they have not. Beginninghe year meeting that they had. The company said there were about 7000 associates including ceo Doug Macmillan and the ceo of the u. S. Business bill simon who were discussing the problem and discussing ways to try to address it. This drop have seen in the workforce at walmart over the past several years. We have seen the workforce going down by about 20,000 cents 2008 at the same time the store count has gone up. We didnot clear not get much explicit information as to are going to add x number of people or add x number of hours. It is more of an acknowledgment that this is an issue and a commitment to try to address it. Do we know if this is just a walmart only problem . Heard, itat we have seems to be pretty walmart specific. As we know, retail has suffered overall. We talked a lot about that. Walmart has suffered in particular because it does cater to lower income individuals. Executives have said very specifically snap benefits, food stamp benefits being cut has had an effect. Those people still having a higher unemployment rate, the lower income segment of the population. So walmart perhaps disproportionately has felt some of these fx. And then is the problem exacerbation exacerbated some of when someone was to buy something and it is not on the shelf . If walmart can address that, it looks like theyre moving to do so. Strategy up, leuthold founder Steven Leuthold says he is hedging against inflation at a time investors are worried about global deflation. Itsston martin seeks to run lineup a broad in its lineup to soccer moms with the potential addition of an suv. I as we have been discussing, just returned from asia, specifically singapore and hong kong where i spoke to, among others, developers, investors about opportunities in the region. Something our next guest knows a lot about, contrarian investor Steven Leuthold, the founder of Leuthold Weeden research where he says half of his Stock Holdings are now in asia, mainly in china. Great to see you. It has been a long while since we have had you on the program but i am so glad you are back. Well, ive missed you. [laughter] likewise. Isthe way, slipping in here mike mckee. , it is interesting, we were having dinner and lunches with various investors. Both in china but also chinese investors themselves, real estate developers. They all kind of say, look, we know people are quite bearish on china and we are actually glad because they dont quite understand what Growth Potential is. It is kind of our little secret. And as long as people are bearish on it, we are happy, because we get to make money off of it. Is that why you are in it . There really is wide. We are contrarian and i see the aboutmount of skepticism china that you see in the United States and also in europe. To me, this is a buying opportunity. We think that that market is based and there are certain purduef the market like much medical stocks that really have been performing really well. You book directly into those companies . Yes, right. We own a couple of china fund, too, but we have 22 of our total assets of our portfolio in china. We were in hong kong at this but its reese at this Credit Suisse conference and the was china andn whether or not it was going to go through a big lehmanstyle or bear stearns crisis given recent default. Economist a former from the peoples bank of china, this is what he said. I dont see any possibility for china to have another lehman episode. The reason is, number one, the economy overall is still not overly leveraged, even though the gdp ratio. Dont forget, chinas economy is an economy with a High National savings rate, over 50 . Second, the chinese Financial System is very primitive. In a sense that all of the debts are not intertwined like spaghetti. Kind of like a hit to us. Do you agree with that . It is probably true they will not have anything like a Lehman Brothers moment because they dont have the same kind of unnatural institutions and interconnectedness. It all goes back to the government, and the government can bail out whoever they want to. What they are doing is resetting expectations. A are leading some companies that deserve to fail, fail. To the pointget where credit is transparent and people understand what the rules are before they are able to open up the Financial System to the rest of the world. Would you agree . I would agree. I think the new group of seven that runs the company has already expressed what their priorities are. That is one of the reasons why we are big and health care there because this is one of the things theres going to be money spent on for sure, domestic. Are you still cautious . What areas would you say that you have a lot of questions on in china . I suppose it will be mostly the ones where you still have very large government control of the companys companies. Banks. Writes of and i dont think and i dont think we need much of it for a while. I dont always stress the financials from u. S. Companies for that matter. We look at enough stuff, we looked at enough cash flow numbers and so on that we do feel pretty confident. Deutsche bank and others have Good Research that is going on over there, too, that we have access to. I dont feel any more lost in the woods there then i would in, say, in france. [laughter] are you going to buy into Something Like an alibaba ipo . No, we dont do that. Only run 100i million now, so we dont have much leverage. We dont even get a chance to buy ipos. Sometimes thats good. [laughter] staying away from the hype. Stay with me, because he will be on our call after the opening bell. Steven leuthold, founder of Leuthold Weeden research and economics editor mike mckee. We are a few minutes away from the opening bell. We have the top 10 traits you dont want to miss right after this break. Stay right here in the loop. Welcome back. You are in the loop. Im betty liu. 26 minutes past the hour which means Bloomberg Television is on the markets. Scarlet fu has the latest on features right before the open. He just took a leg up. We have janet yellen, said chair, speaking at a conference in chicago in about an hour. Futures up by 10. 5 points. Outside outside of stocks, treasuries move lower, pushing the yield up. A lot of data coming out, including the big jobs report on friday and the bias heading into the nonfarm payrolls report is u. S. Data will be stronger. For that reason, you have the yen weaker as well. In terms of emerging market currencies, the russian ruble and the turkish lira are firmer. Gold futures trading at around a sixweek low right now. We will be back on the market in 30 minutes. Opents count down to the with the top 10, the only trade you need to know about today. Scarlet fu stays with us and julie hyman joined in. King digital, less than a week after its disappointing debut it is expanding its workforce. The wall street journal reports the company is looking to hire 165 around the world and the field of development, Engineering Design to create new gaming titles. Shares of thisis Pharmaceutical Company that focuses on Supportive Care products for cancer payment patients. It completed a previously disclosed three for two stock split. Kate spade shares look overpriced. Says a small setback could lead to a large price drop. Panera. Wedbush morgan upgraded the chain to outperform but neutral. Firm says customer samestore sales increases. Fedex facing an expensive lawsuit over the alleged illegal delivery of cigarettes to residential addresses. New york state join a federal racketeering lawsuit filed by the city that contends fedex wrongly delivered more than 140 tons of unpacked cigarettes ordered over the internet and mail. Was raised to outperform from neutral at wedbush. The firm says the bad news is already priced into the stock and sees a rebound and investor sentiment. It has a 12 month price target of 64 a share. Apple is your number four. The tech giant heading back to court this week where it will once again try to convince a jury that samsung infringed on its mobile software patent. Apple is seeking roughly 2 billion in damages from samsung and wanted a judge to ban the sale of its android phones in the u. S. So many lawsuits, i cant keep track. Of this company surging, the fda approved its hemophilia b drug, the first significant advance in treatment for that and more than 17 years. Number two is tesla. It reached an agreement with the new york state on how it may sell its cars. Tesla will be allowed to keep the currently licensed Retail Locations but if it opens at this location that will need to follow safety of our franchise law. G. M. The automaker heading to capitol hill this week. Ceo mary barra will be questioned about ignition switch problems that have been linked to 13 deaths. Gm expanded its recall on friday in2. 6 million vehicles total. Waiting on its shares. I want to bring in, as we wait for the opening bell, Steven Leuthold back into the conversation. Steve, as we mentioned many times, you are a contrarian investor so you go where others are leaving and you buy where others have left, and on and on. I think i just said the same thing. [laughter] well, that is what we usually do. You are now selling out of airlines that you had bought two years ago when people are were quite bearish. A little different than that. What we have said is we dont want to buy any more airlines. But we have two of them who are outstanding performers. And as long as they continue to outperform the market, we will stay there. Because we really cant tell how high is high. But they do look kind of rich compared to historical benchmarks pit they do. I think we have a stock chart of the Airline Sector in the s p and it has been a straight shoot up. Ist what made you i guess adjust valuations, is that what would make you sellout . I am pretty technical. That is why i am in the city, to talk to the market technicians association. As they continue to show strong relative strength, and as long as they continue to move faster than the moving average, we say let someone else say how high is high. We will wait until they start losing momentum. Ad is where Technical Work comes in very, very handy. Because value investors, they try to put a target on the stock. They sell it, and it turns into a growth stock and day are set sold 50 mess having ago. Ivr other areas where you are buying where others may be hitting the pause button, is you are worried about inflation. You are hedging a bit with gold. Scarlet is looking as what at what the world has been watching, which in many respects has been this inflation or deflation. Especially in the developed world. Consumer prices slow to half of a percent in march, a fouryear low. He keeps pressure on the European Central bank to take some sort of action. Here in the u. S. , inflation is well below the feds longterm target of two percent and in japan the sales tax increases being inflation but below the boj target but spurring speculation they will have to add more stimulus. Not just a problem overseas. Here in the u. S. , the chicago fed president said we are having a hard time trying to get inflation above two percent. Why are you worried . Whats we are not concerned we are not concerned about two Percent Inflation. We are concerned about much more dramatic inflation that is from so going to result many regions and countries printing money now. Not just the United States and and webut in euro land are seeing it in japan. History tells us, you just cant keep running the Printing Presses without tipping into something that could be much worse. Signs, veryg the early signs of inflation turning in the commodities area right now out of the 20 commodities we monitor. Still negative on balance but only by a little bit. Look at what happened in terms of food prices, look at what happens when you go to the , and the fact that nobody is concerned about it makes me concerned. Takes you worried that everyone seems conflation complacent about inflation. The you suspect wanted us to take hold and is no longer absorbed the price increases are no longer absorbed as a whole, will there be a spike up . There could be. Another reason why i am reluctant to give up any of my gold position. Because when you do see the upturn we mostly have seen it in the foods at this point. Not so much in the metals. Although some like to think zinc and nickel are showing signs of stabilization. But i guess i am just worried about the printing press. Another thing another area you are quite bullish on is Nuclear Energy. More this world is getting and more polluted so Nuclear Energy looks to be a better alternative for some countries. Julie hyman, i know you are looking and nuclear power. Im. For all the growth of we are potentially going to see, there are also some event risks when you look at nuclear investments. I know one of the. Steve likes is uranium participation out of canada. A fiveyear chart, the peak was in february of 2011. Since then, the stock is down 40 . Fukushima, reason is concerns about nuclear adoption. Not just in japan where the 48 Nuclear Reactors still remain idle, although there are plans to eventually bring them back online. But around the globe. In china, however, is where we are seeing a lot of growth. 20 reactors currently. 28 under construction. Beginre set to construction. There are growth prospects. The there is always sort of that risk but there is always sort of that risk one more come online, is there a greater risk of an accident that could be another setback for the industry, betty. See that chart on uranium participation . Nice, rounding bottom. That is what technicians like to see. Why . It is not that they are male chauvinist pigs, but the sign of accumulation in the stock when you see a rounding bottom like that. What about the event risks . How do you calculate that . There is Nuclear Paranoia in a great many parts of the world. And in germany and in the United States, there is. Where places like china, their biggest concern is people dying from air pollution killing millions, they want clean your desk cleaner air and nuclear is a way to get that. You see a big French Company that does research, it is working on new reactors and expanding nuclear in Great Britain and in many other places. Compare the number of people who have died from nuclear tom a which is essentially zero, and how many who are killed in coal mines, there is no comparison. Steve, thank you so much for joining us. Steven leuthold from leuthold strategies. Certainly that is still up for debate. We will be back in two minutes on in the loop. A look at the top tech stories on our bloomberg west writer. Apple seeking roughly 2 Million Dollars in damages from samsung in selling phones and tablets apple says violates five of its mobile software patents. Samsung claims apple violated two of its patents. In the middle is google. Some of the features apple objects to is part of the android operating system. Certainly no settlement. Alibaba will invest about 692 million in Department Store and supermarket retailer group. It comes as chinas biggest ecommerce operator Integrates Online and offline shopping. It will buy two hundred 20 million shares for a total of 219 million as he prepares for its ipo in the ip in the u. S. It only on bloomberg west. Time for a weekly look up top headlines on linkedin. John, lots of stories catching your eye. Including one from your town, henry blodgett. Not our founder but the founder of im sorry. I have loved him for years. Prebubble. Sorry about that. Business insider, very well known. He answered the question of what you need to save and how you need to save it and a very specific way for your retirement. Everybody has this question what do i need, with the way need to get there . A very concise article about what you need to do, when you need to start doing it, and how you get to the Million Dollars. It is a huge question. How do i retire with a Million Dollars in the bank . It is very doable. If you start younger and off, at age 20, 200 60 a month away you will have a million bucks assuming is 60 six percent return over the years. 185, 5 hundred a month. 35, stars to be a thousand. The messages, you start early, you put away the money and you can be a millionaire. It is not unattainable. It used to be 10 . It depends on lots of things, obviously, but in a balanced portfolio, in my humble was opinion, six percent is not impossible. A couple of stories, including this one. Stopping the glorification of busy. Around huffingtons book thrive. How busy is a terrible, terrible metric. It is the metric most successful people think they have to hit. Always on, always working. I am there more than you are. Is not good for your sanity and it is certainly not good for your career. When successful people who are not born successful tell you to trim it back in little bit, you should listen. Jack welch, who a lot of people listen to, he wrote something that taught caught peoples attention. He writes about Human Resources departments, which everyone kind of hate. Everyone has a bad experience. He says they are either cloak and dagger societies or wellness sunshine factories. Pastors. Ld be parent they should be nurturing, but firm. His big question is, hr should have a seat at the table as much as the cfo. The cfo says, we cant afford they never are. Which they never are. He said he spoke to a group of 5000 Hr Professionals and he says, how many people have a seat at the table with the ceo . 50 hands went up. Of everyhe lifeblood company. Nurturing talent. Holding that the wrong people and getting rid of the dead weight, and the departments are not given the respect it deserved. Finally, i thought this was interesting. You had another big influencer rogue ramming. The state of my industry. Anything you can tell us . What we had about 80 influencers right from about three dozen industries. One of the great lines came from Jeffrey Immelt who said that every Company Needs to simplify or ossify. This is a great message. Because things get too complicated, and when they do, the bones harden. You always have to be nimble enough not to do that. The other big idea was that perhaps like no other time in history, every industry seems to be way different than it was 10 years ago and will be totally different 10 years from now. So if you think you want to be an accountant, imagine what accountancy will be 10 years. It is not your grandfathers business. Youve got to keep up. Including us. Linkedin Senior Editor and check out my linkedin page. Time now for the global outlook. Turkish Prime Minister erdogan is keeping his seat at the as the head of the country. Vowed to crack down now on his enemies. What is next . Thats right. Of course, these are local elections so his name was not actually on the ballot sheet. But he was very much involved. It was really seen as a referendum, if youd like, on his more than 10 years in power here in turkey. What he said in his victory speech last night. He came out and said this was a , ad for the politics of lies reference of a slew of allegations and recordings and documents that appeared on youtube and facebook reportedly implicating the Prime Minister, his family, and other members of his government and this enormous corruption scandal. Going to weed out traitors, in his words. The first line of attack seems to be a reinvigorated attack of social media. Trying to access twitter through various means while here. A number of those windows seem to be closing. One of the twitter aggregates seems to be blocked using ordinary access to the internet here in turkey. Certainly erdogan will feel emboldened by this result that people support him. And indeed, he may make a tilt toward the presidency. The first direct elections for president. Many people expect erdogan to throw the sack into the ring sooner rather than later. Thely investors have election results. Welcomed the election results. We see stocks rising. And figures for economic growth, 4. 4 . Not too shabby. Not at all, given some of the market turmoil we have seen leading up to this. Elliott gotkine, our middle east editor in istanbul. Inflation in europe is at a fouryear low and it has investors betting we will see action from the European Central bank on thursday. Economics editor mike mckee says it is going to be a close call. Why . What here is the problem. We tend to think of inflation and Central Banks as a problem with inflation being too high. The European Central bank has a problem with inflation possibly being too low. Today it was reported inflation in the eurozone in the month of march yearoveryear, only half a percentage point zero point get 0. 5 . Ir target is two percent and 2 . They are way below their target they have been there for a long time. A couple of factors enter into this. One is unemployment remains extremely high. Still clearly slow. 12 unemployment is not going to get a central banker a lot of popularity contest votes. Also, they dont have a lot of stimulus going in the economy. Unlike the Federal Reserve, which has been buying bonds and stimulating the economy on a regular basis, the European Central bank lent bonds out. Those have been repaid. So stimulus has been is being withdrawn and you can see what is happening with the overnight lending rate starting to rise. A lot of people think maybe it is time for them to do something. Germany has talked about raising Interest Rates. Is that right question mark el reports a lengthy internal ecb document suggested Interest Rate increase next year. The question is, between now and then, what happens . Organization that operates on forecasts and their forecast of the economy picks up, which is how you get to the Interest Rate increase. If that is the case, perhaps they dont do anything. Speaking of stimulus, janet yellen, her remarks have just been released. She is speaking at the chicago fed. She says the economy needs extraordinary support for some time. A vote there for continued support by the fed. Thanks so much, mike britt economics editor mike mckee. More Janet Yellens testimony. Bobrrow i will be joined by nardelli, former ceo of home depot and chrysler. He will weigh in on business in the u. S. And gm Ceo Mary Barras testimony. Is 56 past the hour and that means Bloomberg Television is on the markets. Im scarlet fu. 30 minutes into the u. S. Trading day and in terms of this market, looks like we will close out the First Quarter with gains. Zero. 75 , Dow Jones Industrials average adding 145 points. We should mention janet yellen is giving a speech in chicago her prepared remarks remarks suggest monetary easing will remain a while longer. I was looking at treasuries, and was all treasuries decline, prices falling, meaning higher yields. But the drop has been pared a little bit as yellens headlines across. . Year, 2. 7353 gold is also falling as well. Lets go to peter cook, our chief markets chief washington correspondent with more on Janet Yellens headlines. Give us the main take away. The main take away for the this speech,t janet yellen details over the course of 15 pages that there is considerable slack in the u. S. Economy right now and slacken the labor market. She talked about it in detail, building off of what she said of course at the press conference, the last Federal Reserve meeting. She said the money long moneyline in this age in chicagos page 11. I think extraordinary commitment is needed and will be some time and i believe this believe is widely shared by my fellow policymakers at the fed. She is referring to the feds record accommodative policy over the last couple of years. She said of course the economy has improved enough they can continue to taper at this point the Bond Buying Program but the basic message at the News Conference is that the fed needs to effectively keep its foot on the gas in terms of still trying to stimulate the u. S. Economy. What is most interesting about this speech is this is the first speech she has made outside of washington as fed chair, the way she delivers it. It is a very simple speech in terms of language. It is not complicated. For the first time in at least my memory and i think the memory of a lot of us and bloomberg will follow the Federal Reserve, she talks direct link about the personal stories of three individuals in here, people affect it by the downturn. See talk about someone who processes medical insurance claims, an apprentice plumber who lost his job and another individual. Mentioned them by name. All three she spoke to last week by telephone, according to a Federal Reserve official. A personal touch on the face of this tough economy right now and making the point it is still tough out there for a lot of americans. A very personal tone. References the individuals by name. Considerable slack out there. The fed will stay on stay on the job and needs to stay on the job. The problems of the labor market she Still Believes a slip that cyclical and structural. A point she made before but she goes into detail here on the reason she made the case. And the last fed statement she steered the fed away from quantitative targets like 6. 5 unemployment and two Percent Inflation. Did she say anything about two Percent Inflation again and these remarks . What she says again they are keeping a very close eye on inflation and the unemployment number. As you pointed out, she said they would look beyond the employment number. She goes specifically through her list. They will look as stagnant wages and also look at other labor market indicators as guideposts. Peter cook, thank you so much. A recap of fed chair Janet Yellens comments from a speech in chicago. She says the economy needs extraordinary support for sometime. We will be back on the market in 30 minutes. Live from bloomberg headquarters in new york, this with erik makers schatzker and stephanie ruhle. Are you getting screwed . Michael lewiss hot new book says highfrequency trading is costing millions of investors billions of dollars. Gm decided itd was too pricey to fix a defect that killed at least a dozen people. Our regulators just as much to blame . We will talk to a top washington consumer advocate. Ding,