Julie not good. We are seen a steep selloff is Global Growth concerns of come. Ack into the market yesterday we had that snap back from last week. That has been shortlived as you can see. All major averages are down about 1 . Piling onto the negative sentiment is jpmorgan saying to underrate equities for this year , thats the first underweight equity allocation since 2007. That is from their strategy tape. Its global. That Central Banks are a risk in this environment. Its a red herring here. Also, take a look at this market. Every group is in the red except a tiny portion of consumer staples. Thats all the groups that are down around 1 . We have steep declines across the board. Just to give you some examples of earnings movers, there are some in the green. Pfizer is coming out with earnings that the estimates. The company was beating estimates. The truck engine maker is beating estimates. When there are winners, there are always losers. Aig was the big one. The company came in below analyst estimates. There are some earnings winners and losers. Where else is the money going . Its going to areas seen as less risky. We are seeing some buying of the u. S. Dollar. Has been broken. Its up 2 . They are seeing fine in the treasury market this morning. Year yield is moving lower. This is a sizable move. This is moving below 1. 8 on the yield. Mark . Mark lets get to the first word news. Taylor is in the newsroom. Taylor it could be the end of the line for ted cruz. A loss today in the indiana primary could make front runner donald trump all but unstoppable. If trump loses, there could be a contested convention in july. Paul has dropped with a 15 point lead. But the democrats, Hillary Clinton is in a tight race in indiana. Clinton has 90 of the delegates she needs to become the nominee. In the middle east, a u. S. Soldier has been killed i isis forces in iraq. Says themilitary american was advising kurdish troops when forces penetrated the frontline and opened fire. Syria, state television says dozens of people have been killed or wounded after rebels fired rockets into the northern city. One had a hospital and killed four people. Than 200 50 civilians have died over the past two weeks. Helicopter crash in norway is raising questions about whether or not the Oil Industry Cost cuts are cutting hurting safety. Norways biggest oil union says the accident is a way wakeup call. Accidente first fatal in norway since 1997. I am taylor. Thanks. Shares of aig fell 2 . Another unprofitable quarter on losses from hedge funds. Lets go over to betty liu who standing by with chief executive Peter Hancock at the new york stock exchange. Its all yours. Betty thank you so much, mark. Your hancock. Its good to see you here. You got to start by asking how you feel about this quarter . Peter the headline is disappointing to people. Its focused very much on the Investment Income which we are shifting away from two more underwriting. Im pleased in the progress in the improvement in the underwriting margin. By 1. 1 pointsoved versus last year. Thats a good step in the direction towards our improvement over the next two years that we have planned. He returned 4 billion to shareholders. Expenses. Proved the fundamentals of improved in the First Quarter. Platform fora nice our further term ambitions. Betty how are you looking to exit some of these Hedge Fund Strategies . Peter lets keep that in proportion. Its about 11 billion out of 350 billion. Its the one thats most volatile. Half of thece to hedge funds at the end of last year that we wanted to exit. The lockup. Xiting these hedge funds cannot be redeemed at the end of the month like a mutual fund. Reduce. Sure will that frees up capital that can be deployed into our core business. Is underwriting insurance risk. Its part of a broader strategy to focus aig on what we do best. Will any of that b pointed and other alternatives . Peter we have a sizable portfolio that we will not be shrinking as much as the hedge fund investments. It doesnt create quite the volatility. Its less liquid. As we look at the overall portfolio, it declines in its significant. Of the company is to improve our sustainable earnings which comes from improved underwriting and cost efficiency and improved capital efficiency. A 25 billion dollar plan of capital return over the next two years. Betty youre not beefing up alternative investments . More we are shifting to a betty mode. That part of the business is working. Its making money. We saw that in the last quarter. Why offload something that is working . Peter the vast majority of aig is working extremely well. We are improving margins like we did in united aaron tease. We have listedy for an ipo. I dont want to comment further on that ipo. The event general strategy is to focus where we can win. We have the sustainable earnings. Its not an issue of whether it makes money or loses money. What pieces are best owned by aig . As we look to some five the company, we want to focus on the areas that long together. I think thats one of the largest insurance companies. We have over 90 million clients. We are focused on solving that longterm risk challenge. Clientss to be our most valued insurer. Thats opposed to making money in anyone quarter or year. Betty i know you are at your global footprint. The areas geographically youre looking at exiting . How would you exit those areas . Have a physical presence in over 90 countries. Productlot of different in those countries. We have decided we can only offer personal insurance efficiently in 15 of those countries. We are exiting in many of those others. We remain in those countries onl change to more focus commercial clients who value our network. We are exiting products within countries. An example was in china. Personal Auto Insurance was not something we could rescale fast enough. We have decided to stay in travel insurance in china. China last year had over 100 Million International travelers. Travele Fastest Growing in the world. Betty we are not talking about exiting any of those countries . Peter its lines of business. There are a few were we might exit the country altogether. Betty carl icahns representative will join the board. What preparations are being made . Have they had any influence on the last several months . Peter like any new board member, this be the time of engagement to give access to information that will make them as effective as possible. We are happy to say that engagement has found common ground. In terms of investing and focusing where the company can win in the long term, we are optimistic they have a large stake in aig. Their interests are highly aligned. We are building a longterm value for the company. Betty has their activism over the last several quarters in any way your ability to keep your eye on the ball and aig . Peter there were many more distracting things going on. Aig employees, all 60,000 of them, have a normas resilience. They can keep their eye on the ball and not be distracted by the press or any other factors. Resultsiver improving and control the things that they can control. Im no different than the rest of the employees. Betty its great to see you. Thank you so much. Im going to join you back in the studio. Mark get your stay skates on. Youve got to be back in 20 minutes. Great job with the aig ceo Peter Hancock. Up, we live at the Milken Institute global conference with the deputy finance minister of russia. Thats next. Mark youre watching Bloomberg Markets on bloomberg television. Scarlet fu is standing by in los angeles with the Russian Deputy finance minister. im here with the deputy finance minister. He was in the private sector until 2013. Thanks so much for joining us. Lets talk about recovering oil prices. Is this good news for the economy . It helps. We fully adjusted to the oil prices. That doesnt matter much for us. The financing. That doesnt matter much for us. Scarlet is that range critical . We see oil prices above for your 50, they are based on those assumptions. Scarlet what is the main risk for the budget this year . Its a difference of 2. 4 of gdp. We are targeting 3 this year. Say the main task. The comingow us years. Were working on that now. Will the reserve fund be used up this year . Will have some left for next year. We are increasing the local markets and financing the deficits. Scarlet when will that happen . It will be thinks used fully. We expect something around 1 of gdp. Scarlet lets talk about borrowing. When the chances of selling bonds this year . We have a strong surplus. That covers all of the financing needs. Is we haveere investors asking us because russia did not issue for several years. Those areeline, underperforming for us. Issue ae asking us to new supply on the market. There are some things happening which make it more problematic for us. Its not a problem for us. Its a problem for hedge funds. Scarlet how has that of all the last six months . They were willing to put debate in. Ts easier not we are considering where we should go. Scarlet lets talk about the bank of russia. Last week they shifted toward easing. If thats the first time thats happened this year. Is it time to take on this stance . We support the central bank. They have a inflation target of 4 next year. They are good at what they are doing. They will deliver the gold. They want to have more space going forward. Shifting. Be scarlet the panel you were on yesterday was russia and the title was fairly long. But to people outside of russia, investors that wrong the most about what russia is dealing with . , the main story is those on the sidelines perform the benchmarks. They want to get something in the economy. Improve, theylp should not be in environments like this. Looking to be proven correct. Some of them were wrong last year. Scarlet tell me about the most interesting conversations youve had. Some things are being discussed here. What is interesting is the health care story. We face the same with the aging and the growth in the labor force. The things i am hearing, we use them to attack problems in russia. Much forthank you so joining us. Mark thanks a lot. Ahead, a slump earnings hitting everyone from ubs to Aberdeen Asset management. We will get you caught up with everything. Stay with us. Mark youre watching Bloomberg Markets. Stocks are falling for the third day. Every Industry Group is falling. The tone was set by that manufacturing data out of china. That showed the industry contracted for a second month. Biggest drop in two months. Today its down by 1 percent. Its a banking earnings bonanza today. This is a day chart. Ubs profits fell greater than estimated. Market turbulence eroded earnings and the Wealth Management division. Ubs shares are down 8 today. First quarter profits rose more than expected. The chief executive is paring back costs. Shares are down 1. 5 . There was a decline in provisions and bad loans that helped upset a slumping tape trade revenue. It still down by a fifth of percent. Commerzbank, germanys second against lender, market turmoil causing a drop in revenue. A quick peek at whats happening. Aberdeen reports 7. 6 billion pounds of net outflow in the first three months of the year. Clients are withdrawing money incomeuities and fixed funds. The had the biggest drop since 2008. Shares are down 9. 6 . U. K. Manufacturing has contracted. We havent seen this the last three years. This is a worry for the economy as we approach the big referendum on june 23. Coming up next, david stern joins us from the milken conference in los angeles. He talks about running a professional Sports League. Thats next. Mark live from london i am mark barton. Youre watching Bloomberg Markets on bloomberg television. Lets go to tailor in the newsroom. Taylor ash says american serviceman was killed in iraq by fire from the islamic state. And american servicemember has been killed in iraq. Neighborhood, these are preliminary reports. I dont know much more than that. I believe that much is true and our thoughts and prayers are with that Service Members family. Taylor this is the third half in iraq since the coalition launched its campaign against militants in 2014. The Czech Republic defense minister says the u. S. Hasnt right. European natives are not spending enough money on defense. Europe has an inability to combat some of the top security threats. Nearly all of detroits Public Schools are closed as mass aacher sickouts role into second day. The district will run out of cash by june 30. Teachers who opted to get their money wont get checks the summer. Another protest and Union Meeting are planned today. Foreign corporations would scale back plans to invest in the u. S. If donald trump is elected president. The survey found the election of a populist like Trump Organization would prompt fewer companies to increase spending in the u. S. And airplane powered only by sunlight arrived in phoenix after completing the latest leg of its global trip. The Solar Impulse to landed before midnight eastern time. It had a 16 hour flight. The plane will make two more stops in the u. S. Before crossing the atlantic to europe or north america. News 24 hours a day powered by our 2500 journalists and 150 news bureaus around the world. The trading day is just Getting Started in the u. S. Mark abigail belittle has the latest. I can see the nasdaq is down. Abigail the index is down 1 . This is one of the worst formers in the nasdaq, tesla shares are trading lower. They are looking for a loss of . 60 on revenues of one 6 billion. Consensus calls for tesla to turn profitable in the second quarter. This can happen. It would be a big leap. That will be critical to see whether or not it happens. It will be ended to see if they can hit their target production. Shares of tesla have been very volatile this year. More of the same could be ahead. One of the only stocks trading higher is the nasdaq 100. After antrading higher eightday losing streak. Make for a nineday losing streak and the longest since 1991. That einhorn is saying green light still holds the stock in a value brand. Dipped downple have to the support of the recent lows. It will be interesting to see if buyers hold or fold from these current levels. Mark thank you very much. Lets get back to the Milken Institute in los angeles. Scarlet fu is standing by with david stern. Scarlet thats right, mark. E is advising welcome. Its good to see you. You are working with startups. During your leadership at the nba you presided over one of the Great Success stories. The numberone growth less lesson you bring from basketball to Venture Capital . That i love the passion the startups have. They need a little help with restraint in their administration and marketing and making sense out of it. That usually comes second. Ideasesult, some great gets spilled and doesnt come to fruition. We are seeing a lot of interesting things going on in our world. Scarlet specific examples . Wearables andre the use of technology in sports. When you talk about ecommerce, you name it. Fashion ors sized the appropriate food in seeingts, im everything. Learning a little bit about the industry i never knew anything about. Scarlet your contributing ideas from when you are at the nba. Almost half of the teams are owned by tech or finance leaders. Entrepreneurial culture at the league . David im not sure that its related to owners of teams. I think those are people with substantial net worth who appreciate the fact that sports is a good investment and fun. Scarlet you had to drivers of growth at the nba. A very seven development of media and tv rights. As the nba exports games live and you have Digital Games streaming, whats the next thing geographically. Digitally front tier and geographically is sort of the same. When you have streaming now. You can connect oneonone with consumers all over the world. We know there is someone on a yacht its getting our games. That gives you an enormous ability to reach your fans all over the world. Step inedia is the next the digital evolution that allows Sports Leagues to connect with their fans all of the world. 2 billion social billion bikers and followers. Thats going to be a huge driver of Global Growth. You think the nba can monetize that further . David we are just at the beginning. Off the Television Rights in the cable rights. With thingsrights like lee pass all around the world. Fans,livery of content to its what they want about the game. Social media allows the fans to gather and talk to each other and to us. Other teams take stake in the innovation . David why not . If youre going to be driving something and the growth is yout, im not sure might be there in certain instances. I dont know that a Sports League should die for itself from its primary goal, to grow the business it does and has if you dont think its reachable. I think the beauty of the nba is they are striving and driving to leader inegal global sports. Scarlet there is some debate if we are at peak sports rights. Ratings are coming down. Do you think there is a point which sports content fees need to start declining . David the time with that began was when you were in junior high school. It continues. There has been no break in the rights of sports and the value of sports rights. Scarlet the numbers are astronomical now. David everything is astronomical. The average salary is 84 million per team. Whoe got 213 countries receive nba programming. I do think the rights fees are maxed out. I think its just beginning. Scarlet thank you so much. I will send it back to you, mark. Mark rate job and thanks for joining us. Coming up, how to put your vacation on the corporate card. At 4 00, dont miss our interview with the treasury secretary. Mark i am mark barton in london. Its time for the business flash. We are looking at some of the news right now. Suvs pushed love of most automakers to save sales gains. For rose 4 . A son sales growth rose 12 . Chrysler had a 6 aint. The struggles continue for volkswagen, which is dealing with the fallout from the diesel emissions scandal. Sales were down 10 . Firstquarter losses got bigger for halliburton. Customer their budgets and the oil Services Provider to charge related to that merger with acres use. The Justice Department filed a suit to stop the deal. They will pay a 3. 5 billion breakup fee. Spinning off its drugs business to a publicly traded company. They will focus on your logical diseases like multiple sclerosis and alzheimers disease. Its been approved by the board and should be completed by 2016. Latest Bloomberg Business flash. Marketsa check on how are doing in europe. They are down for the third consecutive day. The weakers set by than forecast data out of china showing a contraction in the manufacturing industry. That was a private gate. Reckoning fory of the banking industry. See the index is down by 3. 4 . Are among the ones reporting today. Market turmoil. There was a drop in revenue. What does commerzbank need from mario draghi . Have a listen to the chief financial officer. We had a difficult First Quarter like almost all of our peers. The negative Interest Rate environment, we have a Strong Capital ratio. I think the Market Reaction will be solid. The bank shares are getting hammered today, down by 9 . Mark have a look at whats happening in the currency market. They raised all losses for the year against the dollar. It rebounded 5. 5 . Up the seventh day against the dollar. U. K. Guilds are rising. We had u. K. Manufacturing unexpectedly shrinking for the first time in three years in april. The spanish yield is down by a to 1. 57 . T there will be an election in spain on june 26. Moving from the markets to summer holidays. Itsival section is out with travel guide. Were walking through the recommendations. Thanks for joining us. Its not summer in sydney. Why should i go to sydney when its winter . Brett now is a great time to go to sydney. The us trillion dollar against the u. S. Dollar is at a six year low. In there. Hat this they have introduced more daily nonstops. Its a great time to plan a vacation to sydney. There is an art scene and a lot of natural beauty. Mark when the places you recommend is in miami. Jewelry stood out for me. I was talking about the theme for elections last year. Why should ago two therefore a holiday . you have clubs now that are open until 4 00 in the morning. Thats a reason if you are interested in that. This is the hundreds anniversary. The city is going insane celebrating that. If you are interested you can go to miami. Mark i love the part of your piece that talks about how we can get our bosses to pay for those family vacations. Had we achieve that . suggest that you go to a conference. Will feel a little bit more like a. Inre are several in europe june. Youve got a Design Conference in berlin. Youve got other conferences as well. There is one in montreal called startup fast. It, you can gog to an advertising conference and spend most of your time on the beach. Mark you talked about some travel lessons. Is that stood out for me avoid sexy brits. one of our writers met a british man when he came to america. They hit it off. They started emailing furiously. Andtook a trip to london was excited about this trip. Thought got there, she they were going out for a romantic lunch. He took her to burger king. You need to be very wary of the sexy brits. Mark i dont know what to say. I would not have taken her to burger king. You can pick up the Summer Travel issue in the latest issue of Bloomberg Businessweek. Still ahead, a job that would keep anyone on their toes. We are going to talk about running the near city ballet. Thats next. Mark many arts organizations are struggling to turn a profit. Eliminated its deficit in 2014. Last year it was profitable. Joining us is the executive director. How did you eliminate the deficit . Its been a long road. At everything. Ed we looked at everything. We look at every part of our operation. The first thing we looked at was to try to understand what is causing the deficit and what the obstacles are. Is big thing these days there is such a change in the way people consume culture today. There are so many more options. Theres a lot more competition. Its that much harder to get audiences in the door. Mark how do you ensure that you sustain your operability you achieved last year . Kathy thats a very good question. We have to keep working on it. We have changed the way we operate. Weve been doing a lot of initiatives particularly bring new audiences and Young Audiences in to the house. We will continue to do that. We collaborate with the young visual artist. The combined that with a commission for the visual artist to create a piece of art specifically for our theater. We marry that with some performances that are affordable for the young population. Marketthe artist to these performances. Many of these people have never been to the ballet at before. Inviting themis back. About 10 are coming back on a regular basis. Thats a very high return for us. Eventshat of your big . Ere a Huge Box Office success it was paul mccartney. He created this specialist ballet score. How do you persuade of pedal to do something that special and unique . Thats out of his comfort zone. Was between our artistic director. Commission to to create a musical composition which peter martin or a graph. It was wonderful. It was a wonderful artistic experience and it drew from all sorts of new populations that we hadnt been exposed to but two. It started a new look at our events. We do a number of gala events that are very important every year. We began to think about them differently in terms of collaborating with other artists that would help us in the same way the mccartney reached other populations. We do a cala in the fall. All the works that are premiered, the choreographers are matched up with fashion designers who create the costumes for the ballet. Into otherus a reach audiences from the fashion world to the design world. Great way to keep those important events growing. Mark thank you very much for joining us today. Kathy brown is the executive director of the new york city ballet. The bloomberg. Coming up, we are going to watch shares of european banks have some of the worst performances in months. Leicester city has its Third Premier League title. Some are calling it the biggest upset in sports history. Stocks are going to finish lower for the third consecutive day. The european closes next. That had better be back. Betty it is 11 00 in new york and 11 00 p. M. In hong kong. I am betty liu. Mark i am mark barton. You are watching the european close of Bloomberg Markets. We are going to take you from new york to london to measure it in the next hour. Here is what were watching today. Areencies around the globe having another wild day as central moves continue to have an impact on the dollar, the yen, and now the aussie dollar is in focus. We will break down all of the movement in this market. After the bank missed earnings forecast, the ceo warning of paralyzing volatility impacting the markets. Our other european banks in the same boat . It is one of the biggest upsets in sports ever. The First Premier League title. How does a team get to the top spot, and how much money will this upset make when all is said and done