Are trading with julie hyman. Julie i thought you were going to say david gura, a big unc booster. Direction here. Returning to the platelet we have been seeing with the sideways movement, there are some lagging groups, financials are down, Technology Shares as a group are down. I want to dive into tech a little bit more. Seen that group outperformed recently, with the nasdaq, the only one of the three major averages three at 10 record highs in the past week or so, although its little changed today. One of the factors in the group thats not doing well is nvidia. The stock was downgraded to underweight, analysts saying there are signs of saturation in the market for desktop graphics chips. Those shares one of the worst performers in the s p 500. Lets take a look at amazon and google today. A very different tale for these two. At aboutares trading 900 a share. Alphabet is going lower, bmo saying also that ad revenue is facing Competitive Pressure from amazon. Amazon named a top pick, and the price target is going to 1200 a share. Amazon kleiman also been largely has been doing well with the exception of today, the focus is back on facebook, alphabet, or google as well as netflix and amazon. Theres an index of these stocks and white and the s p 500 is in blue. Directionally, theyve been going the same way. This is since the election, you see a drop in the fang stocks relative to the s p 500, but then they have been recovering particularly as weve gotten into the month of march. Now ill performing by little bit better of a margin. Bitutperforming by a little better of a margin. Also doing well is tesla, after the company came out with deliver numbers that the estimates and the shares are continuing to go higher today, of another percent and above 300. 900 for amazon, above 300 for tesla and this market cap approaching 50 billion. We talked about how it had overtaken ford, now is getting close to gm and market cap. And scarlet an incredible rise. Oliver jamie dimon released a letter to shareholders laying out his views on wall street, washington, and the world. The bank expects to firstquarter trading revenue to be up quote modestly yearoveryear. Jamie says there are no plans to move people in the next two years, but there will be pressure with activities to the european union. He notes that america has one of the highest Corporate Tax rates in the world and that it cost quote considerable financial damage to the country. Goldbergned by jason from the office in new york. Take on what was surprising. The here did he add to table that we havent heard from him before . 10 pages on the company as a whole, 15 pages on policy reform they would like to be seen. That stood out to us. With jpmorgan specifically, if you go back for five years ago, he talked about wanting to buy back stock not above 1. 3 times trade this year he mentioned two times but with a number he would go to thats potentially higher number which implies hes contributed very active share buyback. He tries to develop the case that increase capital and quarterly requirements for the Banking Industry in relation overall has stymied loan growth over the last several years, particularly loans to Small Business and mortgage banking come almost pleading to the in administration to roll back and get lending going again. Anythingdid you learn that would cause you to change a rating or your price target on jpmorgan . Mr. Goldberg weve been constructed on the shares of jpm for quite some time, if anything, this reinforces our view that they have a very Strong Management Team in place in addition to his letter, each a the business line heads has letter to shareholder dictating what they see as the future. Generally speaking, we think this company is very wellpositioned industry that should be receiving telephone better fundamentals going forward. Oliver this is an annual letter, but when you see jamie dimon come out, hes very vocal and it seems like hes been more talkative about the Global Economy and the u. S. Political landscape in the past year or so. As an analyst, how did that factor in to the way you assess the company and the overall marketplace for its business when you have a ceo whos out there talking and getting a lot of information about what he thinks is going on . Mr. Goldberg its beneficial. Hes been very active and we believe with this new administrative new at administration, hes on these president s Strategic Advisory some ofd hoping shape the regulation and revelatory environment going forward. I think the Banking Industry in general has a lot to gain from reduce regulation, given seven or eight years of ramped up regulation, benefit from improvement in lower Corporate Taxes and every structure. Anything that can be done to improve the u. S. Economic outlook, they would likely want to see. In a live blog in the jamie dimon letter was in the Public Policy clearly reflected jamie dimons efforts in washington very entire focused on the United States. Is the bank gets roughly a quarter of its revenue from outside the u. S. Does that mean jpmorgan and the to. Banks have less ability glean whats happening overseas than they do in the United States . Mr. Goldberg no, just given that the vast majority of their revenues are in the u. S. , if you read it, he talks about mexico and china in terms of whats going on about those countries, he also talks about how Global Financial reform needs to be more harmonized and not giving any have one country or one region unfair advantages. He also talks to expand both in the u. S. As well as overseas, adding corporate breaking offices in additional countries. Brexit,we talk about its and adjusting point as article 50 gets triggered. Jamie dimon says while there may not be changes in the next couple of years, there are going to be changes that we for see happening moving people out. Is that a risk, something that has to happen, or does it have a Material Impact on how you evaluate brexit itself is they have to make major shifts around the world . Mr. Goldberg the Banking Industry in general, u. S. Banks are going to have to adjust. You have potentially move certain businesses or operations outside of u. K. Into other parts of europe. At this point, its a cost of doing business. Think is quite manageable in the context of the banks earning capacity. Andill play out over time their Unanswered Questions of how its all going to fair out. Oliver if you think its more of a onetime charge, in some sense . Mr. Goldberg the bigger impact is what impact it has in the overall economy and the economies of europe, as i said earlier, banks reflect the economy and thats probably they are concerned then moving people are getting different licenses are finding out how to do business differently as the laws allow. Scarlet jamie dimon currently speaking at a yahoo special town hall event. These are live pictures of Ceo Jamie Dimon speaking with yahoos finance editorinchief. Ryan moynahan making some comments, the ceo of bank of america saying the white house has a jumbled trade message that needs to be fixed right away. Tell us what the impact is on Banks Like Bank of america and jpmorgan, what investors cant get a clear read on how the administration moves forward with trade . Mr. Goldberg the market still like uncertainty, and if you look since theyve had health care delayed, or has been some choppiness in the market, particularly banks. It may not be entirely true. Are ad of the day, banks reflection of the economy, and to the extent that Economic Activity could accelerate, we think loan growth and bank revenue its quite important from that respect. Scarlet jason goldberg, Senior Bank Analyst at berkeley, thank you. At barclays, thank you. Mark debate on president Trumps Supreme Court nominee is underway. Republican and Democratic Leaders are casting blame. Democrats have secure the votes to block the nomination of neil gorsuch, but Senate Majority leader Mitch Mcconnell is poised to change Longstanding Senate rules to get gorsuch confirmed by civil majority. The president hosted town hall at the white house today about 50 ceos gathered to discuss the state of the u. S. Business climate. The president , who meets thursday with chinas xi jinping gave details about what you plan to discuss with the chinese leader. We are going to have a fantastic meeting and we are going to talk about a lot of things, including north korea. A problem, and its really a humanity problem. Were going to be talking about that also. Mark the president declared recently of china wont help solve north koreas weapons program, the u. S. Is prepared to go it alone. Hasecurity council scheduled an emergency meeting for tomorrow, following the suspected chemical attack in syria. The u. S. Ambassador nikki haley, the Current Council president made the announcement today in response to the request from britain and france for an Emergency Council session. The attack killed at least 58 people. Diamond known as the pink star sold for 71. 2 million and 70s auction in hong kong. Setting a new world record for any diamond or jewel. Mixed cut diamond smashed the 60 million resell estimates that by 70s when it went on the block. The gem is the largest flawless fancy vivid pink diamond ever graded by the gemological institute. Global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Scarlet, any truth to the rumor you made a bid . Scarlet i will stay quiet on that one. Still, and unexpected larger from fed president jeff lacker. What the fed will look like without one of its more hawkish members. From new york, this is bloomberg. Scarlet this is Bloomberg Markets, im scarlet fu. Oliver im oliver renick. Richmond fed president Jeffrey Lacker is resigning immediately. Know, andat we whatever back story we have figured out so far . Lacker was due to retire this year, its happening immediately. The circumstances are surprised given the way the richmond fed has prided itself on being this bastion of central banking rectitude. Throughthat jeff lacker his statement and subsequently confirmed to us on the telephone by mr. Lacker, this concerns the 12obe of these september 20 fomc minutes. They opened the floodgates again and added an extra layer of treasury purchases and listen to forward guidance. Medley published a report in october, the day before a september meeting came out, foreshadowing this further swaying of easing in december. The report was called december band, and this erupted a while ago, theyre been multiple investigations, the fed ran an investigation, the fed ig ran an investigation, jeff lacker talks about the fbi talks about seven district of manhattan. The plot thickens, and we find out more in the coming days. Thank you so much, dan moss. Oliver still ahead, President Trumps auto factory push may be in jeopardy at following yesterdays weak sales numbers. This is bloomberg. Scarlet in business, disappointing auto sales yesterday may signal the Industry Sales winning streak could be running out of gas. Carol massar and cory johnson are here. Were joined by the ceo all the way from michigan. But the notion that this is technologytment in driven changes happening in the audio industry. To be here. Cited yesterday was a big day for us. We announced an investment into water attack, a Venture Capital fund which is a really big move for us as a company. It does three fundamental things. Access tos tremendous starting logic. Secondly, the industry is evolving quickly, and we dont want to get surprise and a car out moment, so we are somewhat protected. , andndustry is changing this is an opportunity for us to advance that. I think a little bit different culture and open of peoples minds to different places in the world that are pioneering innovation and technology. And thats happening right here. We are in tel aviv in other parts of the world. Lets talk more about that in terms of what you are seeing and opportunities. I got to ask you about the news where we got car sales or vehicle sales for the latest month. Aere is worry theres slowdown within the automotive, particularly among sedans. Consumers dont seem to be interested. Are you seeing the market for cars and vehicle sales slowing down . Dataerrier yesterdays for the month was tracking in the mid16 number, which i think was while consensus, a little light. But if i look at how the year is playing out this far, is actually playing out about where is expected. Anticipating a decline in north america, and thats kind of where we are. Not a huge surprise. Carol but it is slowing. Some of the inventory levels are little elevated, but we are paying attention. It, it is still a robust number to operate in. The last point that i think is important for us as a company is 75 of our business is outside so when we see softness in the u. S. , we are still seeing growth in china and a robust market in europe. We grow at a rate must faster than the market. Were not counting on. Reduction growth to deliver our growth. Toyou were Production Growth deliver our growth. We are going to monitor it as we go forward. Cory when we look at innovation, you want to innovate a lot. One of the developments you see that is changing the business right now . Mr. Verrier the really big thing for us is propulsion. And what do i mean by that . As we look at the evolution of the vehicles going forward, theres going to be more autonomous driving. Cory in a longterm trend. Mr. Verrier our fundamental premise is these cars are still b,ing to move from a to and you will need an advanced propulsion system arid from electric and hybrid vehicles, thats where we have chosen to play. That is where we chosen to lead. Cory whats changing . The engine is changed somewhat, but at some aspects, the engine hasnt changed at all . Bigverrier we are seeing a shift towards electrification. Seeing more hybrids and more electric vehicles, and so from a borg warner perspective, we are technologiesarket that are helping hybrid vehicles to be more efficient, technology to help electric vehicles be more efficient and help automakers get the right balance between those mixes, so they can make their fuel economy standards but also give consumers a car they want. Carol our electric vehicles the solution in terms of transportation . In your press release, you say as a result of this investment and not attack, you have been able to review hundreds of global startups involved in the future of ground transportation. Are you seeing things you might be investing in already, just coming across your desk, that arent even anything we are talking about in terms of transportation for the future . I would say that what we are seeing is technologies across that spectrum that are very relevant for Pure Electric vehicles. This is the exciting part for us, we see advancements in those startups around combustion howard products and hybrid power products. Insee Technologies Management space, we see products and Battery Management space. Its a broad array, and that is what attracted us to the fun. It does bring a breath of technology. We need all three. ,e cant just rely on pure evs we cant just rely on hybrids. Cory interesting stuff that all of the carmakers are looking to so looking valley and detroit is looking to Silicon Valley for labor. Verrier, thank you. Scarlet Cory Johnson Carol massar, catch more of their radio interviews on the bloomberg. Lets get you to the Bloomberg Business flash, a look at the biggest business stories in the news right now. Itszon is expected to close 4. 5 billion deal to combine its aol unit with yahoos internet assets the summer. The unit will be risk possible for 20 be responsible million customers. Marissa mayer will not be continuing. Jim armstrong will be the unit spokesperson. I would just repeat what we said before, that marissa will stay through the next phase, and a phase of the business will be a mixture of the executive teams together. I would look for more information in q2 around that. Scarlet a new unit called oath emerges. It will increase stakes in asian assets not sold to verizon. The britain chancellor to be a checker to the exchequer says he expects banks the implementation period will smooth the process. Jpmorgan and Morgan Stanley are said to be in talks with European Capital cities. Others are currently making contingency plans for worstcase scenarios. There is a report that staples is exploring a sale from private equity firms, shares of the Office Supply chain were up the most in four years. Last may, a federal judge blocked a 6. 3 million takeover of office depot. That is your Bloomberg Business flash update. ,liver the commodities close Oil Inventories at record highs. We will find out. This is bloomberg. From bloomberg World Headquarters in midtown, manhattan, this is number of markets. Bloomberg markets. Precious metal, climbing to a oneweek high earlier this morning, the end and gold are higher. Highest they have been since the election. Prices suddenly at 1257 and change. Cocoa, seeing a lot of change today as farmers are expected to deliver another record crop. This is thanks to lots of rain and growers who are responding to years of high prices, planting new trees that are starting to produce beans. Prices are up by 1 10 of 1 . Lets take a look at sugar. 7463. S we know that the efforts to reduce sugar levels has caused prices to dip. Performer. E worst in the bottom you have long bets on sugar futures going down over the past six months, losing more than one quarter of its value. Crude, climbing as inventories dropping from record highs. Our next guest penned a problem saying that the focal point should not be on inventory, but on product and refinery margin. Joining us from austin, texas, Jason Shanker schenker. Why are people looking at the wrong metric, as you say it . Why are they so focused on inventories and while they wrong in that sense . Thing,i think the first the Oil Inventory report, they dont usually talk as much about product. For most of us looking at financial markets, thinking about gasoline or inventories including diesel, that is a bit in the weeds. Thats not the top line number that we see on the screen. People tendng that to pay less attention to, but thats the fundamental driver of oil prices. Scarlet it also has to do with what time of year we are at. Seasonally you make a case for product inventory over crude inventory. Jason thats right. We are about to go into the summer driving season. The peak demand, thats the biggest net short in the world. Those inventories have been falling in recent weeks. Seeing a decline of 36. 5 Million Barrels in gasoline and distillates, the biggest six we decline we have seen since april of 2006. Jason, when we look at the crack spread you are talking highest in at its quite some time. Has it simply been a matter of catching up and the mean reverting back to the average spread between the two . Showing the tick up in the past couple of months here . The product margin they get him cracking the materials into gasoline cracks. Minus the price of a barrel of meanthe should be reversion, they buy more oil to then theyat margin, are producing more product, right . But then what they are doing in the process is buying more oil, which is why there is upside price risk for oil right now,. Oing into the driving season the margins are wide and we have also got the backdrop of opec talking about rolling over their supply cuts and all of this stuff is really a price bullish storm that is going to send Prices Higher as we go into the peak season of demand for product and for oil from refineries. Scarlet there are crack spreads for gasoline and for heating oil. Which is a better leading inventory indicator . Jason heating oil might be more important going into the winter, but the Heating Oil Crack spread will be the 42 gallons in oil. Aboutarrels of oil are two thirds gasoline and one third heating oil. Gasoline is a number to really watch now. We have talked about product inventories and crack spreads. Opec, for instance, with its plan to keep production from getting out of hand . With crude inventories . I think what we see is rising global demand. Especially during parts of 2015 and 16, the fact that china was in a manufacturing recession. Since june of 2016, it has improved and china is the biggest additional marginal consumer of oil. Seen the manufacturing the expansion of of the slightest celebration. Marginally driving oil demand growth, and early next year you are likely to see inventory come more into balance, presenting more inside the oil prices. Oliver it seems more complex than the headline numbers and leads me to play the actionable trade here. It may not be on the commodities or energy stock sector, but what is the best way to get exposure to the sort of her version that can happen here . Jason they might be able to lock in some wide margins this countries thatr are vertically integrated, you get upside for oil and for the refinery margin as well. They are likely to benefit from these kinds of wider spreads for summerg going into the driving season, which is a fundamental thing that drives Prices Higher. Scarlet all right, jason schenker, thank you for joining us. Peabody energy is back. Recently emerging with plans to focus more on thermal coal. Trading down some 13 at the moment, earlier today the peabody ceo discuss whether he was concerned at how the stock was trading. Our planned value in reorganization was 25 per share, with a range around that. I think it would be a part of normal expectations. It has probably benefited from the trade, in coal mining districts, talking about bringing back the jobs. Mining jobse coal can you create in the United States . The actions of the administration to date that we have seen, and i think we have seen bold and sweeping statements, the actions we have havent targeted at protecting jobs and laying the foundation for future jobs over time. What does that mean . Are there minds out there and are you looking for workers to mind them . We are currently recruiting across operations in the United States. But i also believe the foundations have been laid to enable clear signals to occur around the generation environment. See as 50ound what we gigawatts of capacity coming offline over the next five years. If we can get exports of cold going, that would be future, future increases. Some ofverturning of the climate related regulations that were put in place in the obama administration. Well, regulations with respect to the energy mix, which in some ways had squeezed out coal. The administration has sent clear signals about the horns of cold. Theould certainly importance of coal. Its scalable, affordable, and reliable. What kind of longterm problems projects are you taking on and given the climate in america for coal mining at the moment . Our focus coming out of chapter 11 is to pay down debt. All of our assets in leading up to the bankruptcy in the United States, they were cash flow positive. We are going to build upon that. Pay down debt. Seek to target only high returning investments and return cash to shareholders over time. Scarlet that was the Peabody Energy president , on Bloomberg Markets. Mark . House Speaker Paul Ryan says that republicans continue to work on health legislation, but he admits that the shirt effort is at the conceptual stage. The speaker also said that the Congressional Appropriations Committee is working on a spending bill for the 2017 fiscal year. The goodyear good news is that we dont have to deal with the obama administration. We have the Trump Administration. You know that i am a regular order guy. I want the Appropriations Committee to write the bill. To negotiate the bill. The good news is that we are working hand in glove with the Trump Administration. Hespeaker ryan says that expects the package to be ready by the end of the month. Foreign travelers to the United States may be forced to disclose their phone contacts and social media passwords, according to wall street journal, which cited Trump Administration officials that the extreme vetting might apply to countries that take part in the visa waiver program. Theresa may is seeking to trade and increase security ties with saudi arabia. Shes on a trip to jordan and. He saudi capital she is looking to suspend arms sales because of the airstrikes in yemen. Supporters of the french president ial candidate, marine le pen, would pick [indiscernible] as the second choice in the election, even though they have clashed on almost all major issues. That is according to a new Public Opinion poll. The survey found that among those planning to vote for writ marine le pen, macron would be there fallback option. Im mark crumpton. This is bloomberg. Scarlet . Scarlet thanks a much, mark. The numbers have come in. The ncaa championship game was a huge win for cbs. We will discuss the numbers. This is bloomberg. This is Bloomberg Markets. Scarlet lets head now to julie hyman, for todays sector site sector spider report. You are focusing on retailers and automakers . Julie yes, consumer downetionary overall is 2 10 of 1 , but you see a much sharper drop in one subcomponent of it, the xrt, which is specifically retail, down 1 . We have been talking about the retail news that is out today. Notably the monthly data that is out for march samestore sales really showing Department Store sales underperforming. They fell by considerable margin. 10. 9 last month. We saw mens and womens Apparel Stores doing poorly, but this was the worst performing and that is reflected here in what we are seeing from jcpenney, in particular. Nordstrom, down by almost 6 . This group, really quite weak. There is also some speculation about what is going on with a couple of deals. On the one hand, have k street falling after reuters reporting that the Company Might need a few more weeks to negotiate a sale. Some of the buyers talked about have been coach or michael kors, but nothing has materialized. In the s p 500, thats on a report from the wall street journal, a private equity Company Might be interested in purchasing staples. We are also looking at the equity retailers and other assorted retail names on analyst downgrades. We have got citigroup downgrading l brands from buy. Too many stores is a common issue within the industry. Urban outfitters falling after the company came out with its quarter day comparable sales. Hold over atut to target. Looking at Consumer Discretionary as a whole, it has been doing well, but here it is on the bloomberg. We were trying to put this together quickly. Looking at it, this has been the Consumer Confidence index in blue. You see them tracking relatively closer together, the recently we have had a dip in the xl why with Consumer Confidence climbing. The two of them have tracked reasonably closely. A lot of the recent Consumer Confidence numbers had socalled soft data surveys that have been positive. Scarlet thanks so much, julie hyman. Lets move on to sports. Because last night the university of North Carolina beat gonzaga. Here at bloomberg, philanthropy was the victor. We asked ceos and Business Leaders to pick the best bracket, with all the proceeds going to charity. There was a tie for first place. The charities were shining hope for communities and the Houston Police foundation, respectively. We should mention that the chairman of bloomberg lp came in third place. Congrats to all. The victory over gonzaga is important for business, too. The championship drew 21 higher ratings than last year. Chris paul marry has the story. This seems like a big deal. Last year there was an experiment, and a sense, where they went to cable tv. They reverted back and, guess what, it paid off big time. Chris there is a lot to cheer about here and not just for the tar heels fans. If you have been investors an investor concerned about the skyhigh fees and the falling viewership, this kind of reinforces the strategy. This will probably be the third highest viewership in history, when the numbers come out later today. It sort of starts to make sense. Cbs and turner have an unusual arrangement where they share coverage of the final four and title game. Last year it was on cable, this year it is on cbs. It was a rare example of a winwin for both networks. Is this an example of something we might look to see from other networks in the coming months and years . Chris probably. Cbs was losing money a few years ago before they started this strategy of splitting the fees, because they are getting so high. Are negotiating the online rights as well. So, online viewership and ad sales continue to soar. Going to see a lot of package deals like this going forward, based on the success so far. Why thesey idea as to peoples brackets got messed up . Perhaps it made for better football ratings have been suffering recently. There is a discrepancy between the worst and best teams. Some folks just keep on winning and its not as exciting. Is it not like that or is there Something Else at play . Chris definitely the problem last season is that the games were not as strong and with the ncaa you saw a lot of popular teams make it into the final four. That certainly was a factor. Everyone looking at North Carolina to see, after what happened last year, if they could redeem themselves. They did. All of that drama comes into play. Scarlet the storyline worked in the favor of the network. Talk about the ratings there. Chris really strong. Not the record, but certainly up there among the highest ever. They were on espn. Once again showing the value of live Sports Online and traditional viewing. All right, good sports entertainment, good for sports, good for business, not so good for my bracket. Scarlet four gonzaga, either. I want to take a moment to correct something i said last week during the segment on the espn financial future. I mischaracterized the Stock Performance of disney as underperforming. As you can see, they hit a 52week high on friday and are , 7 soover the past year far this year. We apologize for the missed take and any confusion it may have caused. Oliver coming up much more on the retailers, what a border tax could mean for some of those big companies. This is bloomberg. Bloombergs is markets are co scarlet time for the Bloomberg Markets. Leaking jeffrey lacher, information to the central bank to a medley of analysts in 2012. He has apologized for breaking the communications policy. Ralph lauren is getting bigger on digital and the cloud and it is a shakeup. They will shut down there flagship store, revamped, and cut jobs. The move follows the sudden resignation of the ceo of the company in february. And that is your business flash update. We want to stay on retail. The tax code rewrite could replace the 20 tax on business domestic sales. Retailers, shoemakers, automakers and others will be the most affected. They are gearing up for a fight. Its one of the many topics we will be discussing today. Joining us now is joe weisenthal. It is more paul ryans plan than anything else, the white house has not come down on either side of it. Joe one of the questions is, what does the white house want . Trump has talked about having a great plan, but beyond that, nobody is really sure. Paul ryan seems to want to do fundamental reform, but something that would be revenue neutral and change the nature of the tax code or border adjustment tax would theoretically be the way to get there. The problem is, it hurts people on both sides of the aisle. Joe someone has to win, someone has to lose. Oliver and the losers are associated with the public and constituencies. Companies like walmart. Joe republicans dont have any votes to spare on this. There are two republican senators from arkansas, and the fact that walmart is from there makes it harder off the bat, so this will be a tough call for them. Scarlet its a really good point. Exporters are totally in favor of this. Have themhose stakes a craddick senators, so you wonder if they will get any participation. Oliver consumer is the most shorted. Scarlet good point. Joe weisenthal will be back with us in about 30 minutes. Oliver coming up, house lawmakers hope to release a new version of the Health Care Bill abandon last month. We will talk about who could be involved and who is on board. This is bloomberg. s 3 p. M. In new york, and a him in london. Im oliver. Scarlet and im scarlet fu. Welcome to Bloomberg Markets very markets. We are live and bloomberg World Headquarters in new york over the next hour. Were covering sorters out of various cities. Euro the stop your other top stories. And markets, stocks are searching for direction as we head toward the close. Is postingnd energy the begin. President trump is holding a town hall with some of the biggest ceos in the country and took aim at banking regulation saying he is making a major haircut for doddfrank. Trading is falling and as a sales report adds to concern for the overall industry. One hour from the close of trading, lets take lets take a look at markets with julie hyman. Nothing seems to be really moving the medial needle. Julie we will at least see something for individual stocks if not the overall average. The dow has been gaining most of the day. Have beend nasdaq lower. I wanted to bring u. N. Charter that was highlighted by bryce howard of knowledge leaders capital. He says we are unlikely to see further stocks relative to bonds over the coming months. Here is a ratio of total return indices tracking the s p 500 and Bloomberg Barclays aggregate. We are at the highest level of since two guns seven. We saw an ending to the bull market. This is something that coward is pointing out. It could be another precursor to a down turn in stocks. We shall see if that materializes. As for today, we are looking at the airlines. That is after delta reported an theyected decline and revenue for seat mile. Were not seeing recovery from there. Although, delta also said that the same measure rose by a half percent in march. Of a silver lining, even though it is not helping the stock. We have a lot of takeover speculation today. Were looking at a couple of new jersey utilities. The dow jones did report that new jersey resources is considering a combination of south jersey industries. Dow jones says the details from the talks could not be learned and it is possible that a deal may not mature materialize. Another company is considering a potential sale for equity. Likewise, msg networks that the company is said to gain interest on a potential fail. Also, the post is saying that verizon is also one possible buyer for msg networks. They do not decide to comment to the newspapers. Scarlet ra, thank you so much, julie. There was a town hall with President Trump and his top advisers. Farley later, tom joined Bloomberg Markets. Hehe started by saying wanted to be the most business from the president there has ever been. It was a good start considering you have some of the largest ceos in the room. He proceeded to spend most of hers most of his time say you want to regulate business on this country and gave a few examples by reducing regulation, he could free business to free more jobs, raise standards of living. So on and so forth. Scarlet for more on that, we join our Bloomberg White house reporter. Trump hasresident spoken with many ceos over the last couple weeks. How is this townhall different from the ceos of particular industries . Group of ceos that are mostly from new york, so there were a lot of focuses on infrastructure, and we got a little more clarity and insight into what the administration is thinking from infrastructure. Gary cohn and the council was there. He spoke about things like doing airtraffic control, evocative trump talked about the importance about apprenticeship. Wilbur ross talked about things like the stigmatizing vocational training, and going into areas like manufacturing. Electrician. Things you have to work with your hands. In and increasing shortage. We got some of these broad topics that were discussed about how to become more business friendly, cut down on red tape. The specifics on what areas the administration are focusing on initially. Oliver could you give us some color on what the process is like in terms of manifesting actionable policy based on the discussion . Is it more of a group of ceos floating ideas or is there somebody there, a process outlined, that says elon musk would talk about improving roads, then that idea gets them made in his of the gas kimball the idea gets into something made actionable. They are collecting a lot of ideas, almost like throwing them into us do, and then mix them up to figure out which one to pull out and make a plan. To your point, i dont think we know yet who the ship of the stew is going to be and how thats due is going to come together at the end. At months in, it is still the stage of collecting ideas, listening, and then we are going to come to a point where they are going to have to have the rubber meets the road. Congress will want to do tax reform, there will be a budget, and that is when some of these issues are going to be forced to take shape. Scarlet right, and there needs optics,llowup of President Trump wants to showcase his ability to gather Business Leaders, his fluency with Business Issues and how he can get growth going. Do these gatherings help or hurt his standing with his base . It certainly helps his image of being a pro, business, friendly president s. Having all the ceos common, to some extent, it is a photo op. Its a way for him to look, up himknow have a photo of as president. There is also an opportunity of feedback, sometimes Small Group Meetings with different members of the administration before the meetings. The Companies Feel like, if nothing else, they are glad to be getting any time and somepresident , ceos say that that is a big change from what they saw in the past administration. Oliver i keep seeing the administration of Trump Holding what looks like a flowchart. Could you explain that . Shannon i think you might be referring to the big piece of paper that is a chart that gary nec put together. Cohen said it was his wifes steps wifes idea to show all the complicated steps in building a highway. Highways are not simple, they are complicated. It is not like building the titanic, i guess. They are making the point that a highway, could take an enormous amount of time and how they are trying to cut down on the time and streamline the process for infrastructure projects. Scarlet another issue that is near and dear to a lot of theness leaders is the hiring or the employability of foreign workers, foreign talent specifically. What is the administration doing when it comes to the Trump Campaign promise to crack down. N the visa program the each one b visa the h1b visa . Shannon what they are talking about is, a lot of Companies Say we would like to hire American Workers but we can find americans with those skills. The administration is trying to respond in the early stages by saying lets try and develop workers with skills through apprenticeship programs, trying to figure out to say what do we need to do to get American Workers with the skills that you need so you dont need to have somebody for visa workers coming into the country. That was part of what today was about as well. Pettypiecearon joining us from the white house, thank you. Let us get you a check of the other headlines with mark crumpton. Former National Security adviser susan rice responded to reports that she requested the identities of american citizens in raw intelligence reports linked to the trump transition and campaign. The allegations were discussed on it and was heavy see that msnbc were discussed on msnbc. Here, itinued quoting leave nothing to nobody and never have. She also told msnbc that the requests were necessary to do her job. The Associated Press reports that russian investigators believe a 22yearold suicide bomber born in the former soviet community was responsible for the subway. Toll is 14 the death including the bomber. Dozens of people were injured. That happens when Vladimir Putin was visiting the city. A second bomb was found and another subway station that was deactivated. The chemical attack has killed dozens of people and and activist group says 58 were killed. The region was also attacked. Sean spicer has said the attack was reprehensible and that it cannot be ignored by this civilized world. E lawmakers say londons role managing the euro must be cut back after brexit. Democrats said the business should be managed on eu soil. Break will not be a positive thing for londons financial district. Day,l news, 24 hours a powered by 2600 journalists over 120 countries. Oliver . Mark, thank you. This man onk with how he is finding opportunities. This is bloomberg. Scarlet this is Bloomberg Markets, im scarlet fu. Renovatend ive oliver and im oliver. Argentinas Credit Rating was rated by the s p global rating. Mindless the minus. B , multiple people have said theyre pulling as from a sexualharassment scandal. Five women have received payments from 20 three box or oreilly himself in exchange for agreeing not to sue or talk about the allegations. That is your Bloomberg Business flash update. Of portfoliomber managers said that they see value in european stocks. What about european bonds . What opportunities are there and credit . Cio at capital management. 9. 3 billion Investment Management form firm. The 800 pound gorilla is in the room. It is the central bank. The European Central bank was a million credit a month, now there is 60 million and now they are at 60 million. Index, the at this yield is about 4. 6 percent. If you take up the u. S. Dollar denominated bonds, it is closer to 3. 5 . I dont know what you think when you think of highyield, that doesnt sound like highyield to me. Space, theok at this investmentgrade, it trades at less than 1 yield. Lets think about that. European corporates is less than 1 . Which is more likely to default . On the long side, we are looking for opportunities, shorter duration, less correlated things to do. Were looking for smaller, and under followed Capital Structures and staying idiosyncratic on the long side. Theres a lot to do from the market data and the trade. What is your of interesting to you at all then with high yields, those are the returns were talking about. You want to stay away from highyield, the general names that are in the highyield index. Names that are smaller, under follow, less traffic on the goal. The bit is so strong, there are examples of really attractive shorts. One example is glencore. Glencore is a company that is not necessarily doing anything wrong, but they have a 1. 25 bond. It trades above par. Its a company with over 30 billion of debt. Here rated at bbb the ecb can only by highgrade bonds. The second that that is ground a downgraded, the floor. Underneath. What he makes you think state vonnie what makes you think will they will be downgraded . Most people are betting on the recovery. When you look at attractive shorts, what is the cost of the short . 1 you are paying alongside. Looking at last year, this bond traded below 65. 35, 40 up, one down. Any changes to the commodity growth, or thedp china complex, those are all things that could cause a downgrade. Could you get vonnie could you give us other examples . European examples . We tend to be relatively industry big gnostic. Theres not much do on the european side except in situations where there are forms of liquidation or the assets are liquidating out. It is a big focus for us on the u. S. Side is he liquidations. Theike liquidations because assets are sitting in cash or near cash securities. No matter what happens, s p 500 to go to zero. Every single loan and bond could default and recover zero, and that doesnt change one cent about how much cash you get. Or even when you get the cash. Vonnie youre talking about companies that are in strong liquidation mode that might have some lying around. You had to find out with the catch is left and go get it, right . We have is not funny joke that we are out experts of valuing cash. That is absolutely true. We spend a lot of time understanding how we can buy those entities and where it since. With investing, you have to understand how to source, documents, and analyze these claims. They are complex. The complex it creates a lot of opportunity for us in this environment. Scarlet those the cio and head of credit. Is hitting new records a most every day. We will see whether tech calves more room to run whether tech has more room to run inside. This is bloomberg. Oliver this is Bloomberg Markets, i am oliver renick. And im scarlet fu. Joining me for day for the day is kevin. Weve been talking about the flat line in volatility, and you have been looking at the difference, relative volatility of tax tech stocks. Bloombergl this up on. T g btv this is the relative volatility ok. He exoskeleton x we have seen it come way down but now it is bouncing up. What does this chart tell us . That the First Quarter had a volatility and that is why because the that is why because the tech sector peak and then immediately dropped off. That led to the lowest record of closings that we have ever seen before. Two point 54. We range from 10. 6 all the way up to high 12. It is because attack that it is really that optimistic about the growth we are going to get. What sector benefits the most about economic growth, that is technology. Relative volatility on tech stocks are writing. As far as s p. And that should lead to rising volatility in the marketplace. Julie it should. And we do have a lot of catalysts coming up and we can see what earnings do for this do toward the stocks. Ok, you can see it was lower than the market volatility. 10. 3. It was under the markets and now it is going to be driving it higher. Because it is higher than the market now, it should lead volatility higher than the overall market. Julie political catalysts havent really had that much impact on tech stocks as there are a lot of potentials right now. Says, taxs on h1b revisions, that stuff hasnt seemed to make a dent. One of the reasons is because 50 , ofs 50 , roughly revenues overseas. Guess what companies are doing . They are spending money and investing for the future growth they are anticipating. That is why we see things come out, Tech Companies will say we have seen revenues increased because of it. I think that has to play with it as well because, look at the technology policies. You have new offices the Jared Kushner is leaning on innovation. Benefiting from the new policies that are anticipated to take place. Julie given all of this. Do you think tech will move one way or the other, up or down . Yeah, march 14 i was talking about the low volatility and how you play that. Way ord think you go one another, you can hug that price range. Than usually move more 3. 25 percent. Given earnings coming out, if you think apple, microsoft, google are going to move, this is a great way to play. Upside sonside or the you have unlimited profit. Ertility potential are going to take a position 90 last month, collect the . 90, and struggle may 21. Straddle may 21. At the end of the month, and beginning of next month, you have all those Companies Reporting and it will move the tech sector more than 3. 25 in either way. Julie we will see if it happens and finally moves the needle on overall volatility as well. Evan kelly, thank you so much. Back to you guys. Scarlet still ahead on what did you miss, we will hear from mark royce at general motors, that is coming up later this evening. From new york, this is bloomberg. Attention homeowners age sixtytwo and older. One reverse mortgage has a great way for you to live a better retirement. Its called a reverse mortgage. Call rfree information kityour with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money and more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home. And heres the best part. You still own yohome. Call now take control of your retirement today mark im mark crumpton. Time for first word news. Bids are due today for the first design contracts on the border wall with mexico. Interested companies are preparing for the worst if they get the potentially lucrative job. Some contractors interested in the work want to know if authorities would rush to help if workers came under what they called hostile attack. Another asked if employees could carry firearms in states with strict control laws and if the government would indemnify them for using deadly force. The deadline has been extended ,o 11 59 p. M. Tonight washington time. Philip hammond is in india on a mission to promote bilateral trade. Drugnt prime conference today, he discussed the british plan for a reset in trade relations with india and establishing the u. K. As us as a true goal player. A true relationship between equals. The largest democracy in the world and the oldest democracy in the world, coming back together t