Transcripts For BLOOMBERG Street Smart 20150416

Let greece skipped a debt payment. Stanley fischer is speaking at the Imfworld Bank meetings. Street smart starts right now. Here are the top stories we are watching ahead of the closing bell. That is according to a person familiar to the matter. Kaufman last lost one billion last year. His portion of citadels portfolio has been liquidated. Ben bernanke is going to consult with the goodell on monetary policy, financial markets, and the global economy. A former jpmorgan broker faces charges that he stole 20 million from customers over four years. The fbi also said he pocketed cash. He was fired by jpmorgan last month. Microsoft and yahoo revamping their search agreement giving yahoo more freedom over how it makes money from advertising. Yahoo will no longer have to use microsoft to serve all the ads on desktop surface desktop searches. We have less than one hour until the close of trading. Lets go to the news desk where scarlet is looking at the action. Scarlet if you come inside the bloomberg terminal, you can see here a little bit of a leg lower in the last couple of minutes. Assuming we hold onto these gains the major indexes did make headway in approaching the record high. The nasdaq got within two thirds of 1 of topping its high. He six out of 10 Industry Groups falling, led by utilities. They have been down all day. Consumer stocks are Still Holding on to some gains. As for oil prices, they are building on their advances. They are now the highest in about four months. Of course, you have a weaker dollar to help support the rising crude oil. Look at the dollar right now, off by almost 1 . We had disappointing reads about how things were going in jobless claims. The philly fed manufacturing report did show weakness once you dug in and looked at new orders and prices paid. For the year to date, the dollar is still higher. The long dollar, short euro trade is still extremely crowded. Alix thank you so much. Right now we have stellar results from two of the biggest wall street banks. Goldman posted its highest profit in more than five years. All of its major businesses beating analyst x to miss analyst estimates. City citi was also posting big profits. But get a distinction about what city did and what goldman did. Who had the upper hand . Goldman was more of a revenue story, city was more on the cost side. With goldman, it is kind of analysts want to see if this continues, if they can string together a few quarters of trading. We have seen trading declined for the last five years now. Alix we are seeing the stock down today. Does this validate Goldman Sachss Business Model . A lot of companies reduced their exposure to fixed incomes, commodities, and goldman didnt. Michael goldman told people to be patient and there was a little bit of i told you so today in terms of saying that they were right to stay in these businesses and that their strategy is starting to pay off. But i do think people want to see more than just one quarter. But you are finally starting to see them take some share. That was the big question, can you take the share for people getting out of the business . Alix they get so much, bloombergs michael moore. There is my guest host for the hour, alex nielsen, a economist at Unicredit Bank and he did anything anyone wanted to do. And reminds me out how old i am reminds me how old i am. What was interesting about the results was that that was all about the fed, right . The u. S. Economy in a very good turn. There are lots of dividends now that the recovery is coming. It has been a clear trend. Some of the as shrewd as goldman would typically do well. Alix its interesting that some of the other banks did not. Citigroups debt trading unit did not do well. Lisa Lisa Lisa Lisa Lisa Lisa Lisa it is actually more of a bank by bank basis. In terms of policies and the effect of the crisis, there would always be a big differentiation. Alix what winds up happening then when normalization sets in for the bond market in general . Erik riskfree yields have to come up. It is the end of 25 years of a bull market in fixed income. Here in the u. S. , you are early in the monetary cycle and you are early in the recovery cycle. My money would be on a higher u. S. Yield. Lisa im struggling getting my head around getting back to normal. How do you get back to normal when you have trillions of dollars of negative yielding assets . How does one country get back to normal and less the whole world get back to normal whatever that means. And if it is a new normal, how do we evolve out of this groundhogs day . Erik youre right, who knows what normal is anymore . You had a massive shock you had an unbelievable amount of stimulus, monetary stimulus, and that of course drives the fixed income market even lower. Then you have the asset price increases. Johnson been created in the United States at a very rapid pace. Alix what does it matter at the rate we see the increases because we heard today from Federal Reserve president s that at the end of the day, later is probably better, and we will see a gradual increase either way. Alix the new normal may be erik the new normal may be a lower equilibrium at the end of the day. The fed is very worried about moving too fast. Inflation is not a big issue so why take the risk. Alix we have to leave it there. Lisa, thank you for joining us. Coming up next the street smart, Christine Lagarde is any hope for greek loan reducing. Investors are starting to get nervous. Alix greek finance minister Yanis Varoufakis just that is speaking in washington. He said greek took a hit on your behalf because we fell first. He continued to say that athens will not adopt the wrong reforms but he want to convince creditors for a new set of rules. He also said he doesnt think the eu as a proper banking union. He is taking questions right now at the Brookings Institute. We will continue to follow that as the news comes out. There will be no relief from the imf. A miss payment is something that Christine Lagarde, the imf managing director, wont support. Christine lagarde we have never had that invests economy asking for that kind of thing, a late payment. I would certainly not supported. Alix here to discuss is eric nielsen who worked at the imf and world bank for more than a decade. What did you make a Christine Lagarde sbs remarks echo Christine Lagardes remarks . Erik they need to make some reforms in greece and make another program. That is the way the imf in the past has structured debt is to agree to a new program. Alix but the new program is not going to happen. They said that it is wrong to keep that going in the current plan is not successful. Erik i disagree with that. I hear the argument, but greece was starting to grow again when the new government came in. It is very complicated and many things changed along the way. The program that was put in place, structural reforms, hikes and pensions are still not as high as in germany, for example. People are voting in somebody who really doesnt even have a plan. Alix a year ago or so, you are relatively optimistic on greece. Where do you stand now . Erik i still think they will stay but they will spend a lot of time in what i call the gray zone. Maybe to the imf even. The economy continues to decline and make those ious legal tender for tax payments. Disastrous outcome. But i dont think the creditors of the imf will cave. I will go on a limb. So long as there is qe, no one will take on portugal, spain, or italy. This is the perfect moment, if this disaster had to happen that we have qe. Alix meeting that if you are going to kick greece out, do it now. Bloomberg surveillance interviewed Wolfgang Schaeuble yesterday. Greece remains part of europe in any case. Whatever happens in greece, greece remains part of europe the european union. If greece stays in the eurozone, it must create the conditions for it. Whether greece has the money to meet its obligations is primarily decision of the greek government. If greece wants support, we will give that support but of course within the framework of what we agreed. Alix is germany really that inflexible . Erik on this issue he is right. The most important thing he said here is that they will stay in the eu. If you look at the treaty if they were to leave the eurozone they would leave the eu. You have to do some interesting gymnastics to keep them in the european union. He says that you can leave and so get your funds that come from brussels every year. He said that we wont be angry at you. He is also right to say, it lies with the greeks. If you take what the greek government says they want to do and put it in any other country, you will not succeed. Alix you work for the imf, you go to jan is varoufakis right now and say these are three things. What are they . Erik a primary surplus of a couple percent. Some adjustment of that. Adjustment of pensions. Alix what are the chances that greek will do that you echo do that . Erik i think there is a possibility there will be a political change in athens. There have been rumors in athens earlier today that they will have a referendum on the eurozone. That would give Alexis Tsipras the possibility of taking out the extreme left of his party, or maybe a greater coalition. There needs to be some change on the political side i think before they start to sign off. I spent a lot of time in berlin, and i cant say what the German Government will do, but my feeling is that if the greece just gave a little bit, they would sign off. And then spain, portugal, slovakia, slovenia would be the difficult once. Alix so youre saying germany is not the hardliner . Erik i think thats right. Germany will not under any circumstances risk as being the bad guys in europe. Then there is the risk of greece going somewhere with russia or whatever. Germany is a Regional Power of types and im sure merkel would not be want to be called by obama saying what are you doing in your backyard. The big game is to persuade some of the hardliners in the slovakians, iris, spanish. Alix thank you so much for speaking with me. I want to update on the headlines with the other varoufakis speaking. He is saying that greece will follow the imf rules in labor and pension. He says they are basically useless. They need to make some better of cuts in the pension market. He says that he does not doubt that the greek Pension System is in trouble but has different views on labor as well as reform. Asset sales will need to weigh employment as well as other issues in greece. A lot of headlines coming out from Yanis Varoufakis. We will continue to update you. Coming up next on street smart i will talk to eric on his contrarian call on the euro. Alix greek finance minister jan is varoufakis speaking at the Brookings Institute saying that greece was to reach a deal by the end of june. He was saying greece wants to end a deal by the end of june. In the meantime, the ecbs fun trying Bond Buying Program has made the unthinkable a reality. Joining me to discuss this new reality is erik nielsen, chief global economist at Unicredit Bank and the head of fixed income at raymond james, kevin. Kevin in golf, they say that every shot make somebody happy. In the case of zero rate german bonds the benefit of that has been to the treasury market. As qe has started, those yields have to be found somewhere else. In this case, the u. S. Treasury market has been the favorable case for that. Probably 25 basis points out of the 10year note. Alix we have a great chart looking at the futures rally in the next eight months compared to the nasdaq month the nasdaq rally in 18 months prior to the bubble bursting in 2000. They look pretty similar. Erik when the nasdaq was running up, i remember so many people telling us that there was a new way of thinking about everything. Now we have this discussion that the equilibrium can be negative 2, 3 4 . I think it is a massive bubble helped out by central bank buying. Alix so what will burst the bubble . Kevin it is going to be when improvement comes out of europe. Does qe work . What is the size required to make that work. Then that money will probably travel across the pond. In between there, it is still a favorable market in this country. And based on 02 negative yields, that money has been slowing. As far as the bubble goes, it depends on how many euros you can create to keep it from being a bubble. As long as you can make more of those, the bubble is not so much of a big story. Alix in terms of what you he does, it is all about the euro. Erik drug he doesnt want to see it, but i think it might be the time to buy. It is driven a lot by hot money. You have Warren Buffett and other people putting money into buying companies. In contrast to that you have hot money going the other way. I wouldnt be short the euro. A little bit too nervous to buy it here but if you put a gun to my head i would buy it. Alix kevin, thank you so much for joining us. Alix here are the top stories we are watching ahead of the closing bell. Varoufakis speaking in washington. Greece rejects the idea of cutting pensions and he says copying imf rolls on labor deregulation is useless. He said athens wants to create a bad bank. Congressional leaders reaching an agreement on legislations to give president obama fasttrack authority to negotiate a trade accord with 11 nations. It will be the largest trade deal since the north American Free trade agreement. 267 million in its ipo, the company has raised about 1 billion in total. We are just under 30 minutes until the close of trading. Scarlet fu is looking at the three stocks we need to know about today. Scarlet lets talk about those three stocks that made their trading debut today. Here is where they stand right now. Party city up 20 . It sold shares at 17 apiece. Etsy up by 87 . It had gained as much as 123 . Virtu is trading at 22. 40, it did gain as much as 25 . The three stocks making their debut reduced some of their gains, but have held onto most of it. Party city got that big move initially and it has stagnated throughout the day. All of them price their ipo at the top end of the market range, especially for Virtu Financial and party city. They delayed the ipos. It all worked out to their advantage. Alix scarlet, thank you so much. The shanghai composite rising to a sevenyear high. Thats that beijing will take thats that beijing will take even more measures to bolster growth. Is that kind of rally sustainable . Erik no. It will be nice to have foreseen it, but it is not based on fundamentals alix . The hang seng could reach 30,000, one of the bull markets of the year. Erik i do not understand the technicalities amid how much money in the two markets. We will see how far it goes. The chinese economy is slowing, right . Growth rates are not what they used to be. Alix Morgan Stanley a single stock move of enormous size and rapid shifts in performance between sectors also being compressed. Time for the Global Investors perspective is running faster now for all china equity markets. Single stock moves of enormous size are also being compressed. I mean, what kind of fall can you fight the trend at this point . Erik i do not like when i do not understand what is going on. This is something very different. As the ship leaves earth. Alix it is a trend we are seeing, weaker currencies and stronger stocks, i divergence a diverteds. The benchmark showing 11 Straight Days of gains. Compare that to the emerging markets currency. Erik it is amazing. I am very worried. You are seeing a relative slow down, the first time in 25 years. If you look at global trade, it is hurting. It grows by the same rate as global gdp. It used to be two or three times faster. I think what you are seeing on equities is the story of all of this that happened in america and now in europe, and now in japan. It is not a place that is supported by the fundamentals. Alix are the currencies reflecting weakness in the economys or reflecting a stronger dollar and the fed that will move . Erik tough to say. It is not quite a currency war but it is something that resembles competitive valuation. The emerging markets there are problems, they do not grow as much as they used to. They should given the population growth. The obvious one is to put the Exchange Rate weaker. You also have fiscal policy issues. It has become quite strange and uncomfortable. Alix not buying the rally, that is the take away. Thank you so much. After the bell, energy earnings. We will get the first signs of reduced oil drilling and what that means for oil services. Stay with us. Alix we are about half an hour from the close. The numbers could shed light on the severity of the drilling activity decline worldwide. David joins me now from houston. Still with me is erik nielsen. David, what are we expecting . David the biggest heartache will come out of north america. That is a third of their revenue. They are a Global Oil Services provider, so the pain will not be felt as bad. We are expecting average from analysts, . 89 a share, that would be the biggest the lowest profit for them in four years. Alix is it going to come at the expense of losing business . David it is a combination. The producers and explorers of the world the producers are saying, we will keep working. In this kind of market the Service Providers lose their leverage, theyre pricing power. Alix what about playoffs . 9100 people . Anymore . David who knows . We could see another round of it. There has been speculation. If this stuff gets worse it is expected we could see some or layups. Alix david, thank you so much. Oil is trading near highs for the year. Estimated a slow down in the u. S. Shale boom. 29 , a record low of 43 a barrel in march. Some countries have gotten battered from reducing Oil Production while other countries are benefiting. Here to make me hereto help me make sense of it is erik. Erik it does wonderful things for the global economy. There are winners and losers. What characterizes it right now russia has their own problems. The middle east, oil is concentrated on a few number of people with enormous wealth. Consumers in america, europe, and japan are benefiting. It is a wonderful alix how long does it laster . I . Erik the big drop in oil was a november with the opec meeting. There is no possible effect until late 2015 and the inflation picture is still very benign. You are having a wonderful time even a place like italy. Wages go up by 1. 8 or 1. 9 . They have not had this in 10 years. Alix some people are happy. People who work at the oil services company, it is not so good. Why is this oil tax windfall beating out the job declines we are seeing . Down 40 in north america. Erik that is the trick. A place like the United States we saw the pictures from houston. They are suffering and having a hard time. They have been writing that wave and it is a writing that way that it is a volatile thing. Riding that wave and it is a volatile thing. It happens quickly and people get on with their lives. In the bigger global picture alix greece finance minister varoufakis is speaking in washington at this hour at the Brookings Institute. He says he hopes to reach a deal by the end of june. He says greece rejects the idea of cutting pensions. He said the eu must concede its austerity made things worse in greece. Letting greece exit bureau is profoundly antieuropean and the eu should not function with that kind of pressure. Proposals are relatively moderate, we did not ask for a lot. We asked for two months to come up with a deal. Can they make it . Erik they will run out of money. They already there is a big probability to run out of money to pay for pensioners. The big question, would they also default . We are into a very complicated situation which would take several months. Alix i have been reading these headlines. What is the tone you have been getting from what he has been saying . Erik he is not bending at. You have a government and greece which is a coalition. Very leftleaning, moderate left. They do not get along. And then you have the finance minister operating on his own. He has his own views. There is no consistency. What they put up is not consistent. Take this for a moment in greece, your base pension starts at an earlier age than germany. It is 100 unfunded. In germany, it is 25 unfunded. And they do not want to adjust. Alix varoufakis saying greece assets could be great for bargain hunters. The you agree . Do you agree . Is it a good bet . Erik if you took the probability of them staying and sort themselves out, i think there is a by. There is a buy. It isalix such a pleasure to have you here, such a great day. You are so knowledgeable. Global chief economist guest hosting with me. A pleasure to have you. Virtu financial is making its long awaited trade debut today. Was it worth the wait . Alix a big day for shares of Virtu Financial. 19 apiece, the highest of their range. They began shopping the ipo a year ago. What does todays offering tell us about investors appetite for risk . Leslie spoke to the ceo about an hour ago. What was your biggest take away . Leslie he said a lot has happened over the course of the year that has erased the mantra from investors minds. I spoke with him a little bit ago and he said a lot of debt is involved. Take a listen. It was a great year for us. It enabled us to be transparent and forced regulators to look at the marketplace and say, what are these firms . What do they do . What value does it add to the financial ecosystem . Leslie they said, we are here to stay, here is what we do. People were receptive to that. Alix what is the next step going public . Is there some sick call and asian is there some consolidation in the industry . Leslie he could see himself as an operator of that consolidation. Being part of bringing together all highfrequency traders. Scale is key. You cannot be a small highfrequency trader and make the kind of money they are making. You have to have scale and you have to rely on volume. Alix thank you for joining us. The close is coming up next. We are looking at stocks. Alix you are watching bloomberg television. We are moments away from the closing bell. Looking for direction most of the day, seeing a little bit of downside as we had to the close. Oil is falling. Athens races to secure funding. Goldman sachs and citigroup both out with earnings that beat estimates. We are counting down to earnings from American Express. Julie hyman is at the breaking news desk. Julie i am looking at a lot of the elements you mentioned. There was not a macro driving factor for the equity market today. That is reflected in where we see the prices for the major averages. It was a single stock story. Whether you are talking about bank earnings, that kicked off the day. Goldman sachs and citigroup, those two stocks moving. Of course, we have the wave of ipos that began trading. That was a buzzy event. It did not affect the macro view. Etsy doubled in its first day of trading. These three companies raised about a billion dollars in their first day. We have been seeing some more ipos starting to heat up a little bit more. I want to talk about oil as well because we did have a reversal in oil prices today. We did see a drop in oil earlier today and by the end, we were seeing an increase. Some questions about shell supply. Thats shale supply. We will see what oil does. Alix see what the volatility does. We appreciate it. I am here with lisa carl, peter. Peter, good to see you. Investors are starting to get signs the u. S. Gross story might be losing some momentum growth story might be losing some momentum. Carl, what is the deal . Carl it was supposed to be the bounceback month. We knew february would be bad. I thought there should be an equally sized rebound in march. That did not materialize. I am holding out hope that maybe it is just a slow song thaw. Maybe the housing season will be a decent one, but certainly not the case in today. Alix peter we are seeing weakness and we are seeing the weakness accelerate. A lot of people talking about the weather story. You saw a decrease in housing numbers out west. We are seeing signs the lack of job growth is slowing the housing market. Alix shouldnt that be a positive thing . That is the big question right . Alix there is about. It was a pretty weak ending. We had the dow down by about four points. The nasdaq is off by three. Closing its highest level of 2005. The longest winning streak for oil since early december. Greece, investors cannot ignore it. Pushing 10 year yields to the highest in more than two years as pressure mounted for athens. Varoufakis is in washington for an imf meeting saying earlier this hour that a deal needs to happen by the end of june. He hopes the deal will be reached by june. The eu must concede its austerity made things worse in greece. It looks like they are wrapping up right now, brookings institution. Letting greece exit the bureau is profoundly the euro is profoundly antieuropean. What do you think . I believe they will have to exit. They will use these assets to fund we are not worried about financial contagion. We think that can be handled smoothly. Most of the debt is owned by sovereigns. The concern is whether you have a political contingent where this spreads to portugal, spain, and italy. It is yielding 27 and that is crazy. People should be piling and if they think there is any chance they can avoid default. The fact that yields are that high shows how much fear there is. Alix [inaudible] karl we saw this in europe during the sovereign debt crisis and it always looked like there should be some insulation and there was always less insulation than we expected. My fear is there will be lots of financial contagion. Lots of unintended consequences. Alix American Express earnings are crossing the tape right now. Julie hyman has more. Julie they have risen more than estimated to 1. 48 a share. Revenue coming in below estimates 7. 95 billion. A. 2 billion is what had been estimated. American express has been encountering 8. 2 billion is what had been estimated. American express has been encountering some struggles. Its relationship with jetblue. Something else we will be watching the expenses. A lot of analysts predicting expenses would go up. 5. 2 billion operating expenses looked like they might be about 5. 5 billion. I will dig into these numbers. These are the headlines, it looks like a mixed quarter. Alix American Express hurt by significant effect of the stronger u. S. Dollar. Peter, how extreme this is going to be in earning season . Peter it has already been extreme. So far the market has chosen to ignore it. I think it is real. At least two fed members chose to discuss the strong ball or the strong dollar. It is gaining momentum. Alix what do you think is worse . If the dollar stays where it is or keep strengthening or if it stabilizes . Oil, you get these large rapid moves and then it takes three to six months to digest. It is going to impact slowly. People cannot react quickly enough. No one can react quickly enough. This will be a three to six months story. Alix the fed looking closely. We heard from Stanley Fischer earlier. Reminding investors the central bank wants to raise Interest Rates. He expects inflation to pick up this year. Nothing new in the speech, but fed speak coming out, we will not raise yet, we are data dependent. Will meet to raise, we will raise when we do raise, we will raise by a couple of moves. What the doves are getting away with, we think the economy is going to do just fine around midyear. That gives them the easy clearance rather than pick a fight with the hawks. They can say, it did not meet our expectations so we wait a little bit longer. Alix schlumberger coming out with its quarter. Julie down 9 down 19 quarter over quarter. It was driven by the decline in north American Land activity. Which you might expect. The companys revenue coming in below analyst estimates at 10. 25 billion. Earnings per share, however beating 1. 06. . 91 was the prediction. This is something we have seen from some of these various Oil Services Providers because of the pullback in oil prices because of the concern about what their clients will be spending. The company says this year, the Capital Expenditures will be around 2. 5 billion. It previously had been 3 billion. You know a lot about this world. Alix oil services the worst sector in the energy space to get hit by sliding oil prices. Peter, when you take a look at the landscape, is this a net positive or negative . Peter a net negative for the u. S. Economy. We are close to energy selfsufficiency. The industry the average industry worker was making 100,000. The companys they were working for the one areas that is benefited from the savings, less credit card delinquencies. The restaurants have really benefited. People are saving 20 of the pump and going out to eat. It is not driving the economy the way people thought it would. Alix 40 pullback in north america. We saw Capacity Utilization declining, not just in the energy sector, but throughout the manufacturing sector. In general, Business Investment spending does not have a lot of incentive to rise this year. Without the capacity constraints, as mrs. Do not need to invest in the capital and they do not need to as businesses do not need to invest in the capital and they do not need to invest in the labor. Alix we have mattel out with earnings. Julie i am still waiting for all of the headlines. Overall, the loss is a bit smaller than predicted. Loss per share of eight cents. . 10 was estimated. The company is starting to see progress with barbie and fisherprice. A sales beating estimates, 922 million. I will go through and see what i can find in terms of the individual lines. The company did say it was affected by currency as well. Worldwide net sales were up 5 . If you include the impact of currency, sales fell by 2 . The phenomenon we are talking about on top of the company that is already struggling at several of its different product lines. Alix lisa a question for you. The stronger dollar being blamed in a lot of capacity. What does that do to the Corporate Bond market . Lisa the Corporate Bond market is affected by different dynamic. People are piling in for higher yields and they are Getting International demand for some of that credit. High yield is more affected by oil prices. Investmentgrade companies do have a lot of International Exposure and it will trickle into credit. Alix we have a Consumer Prices in the index in the u. S. Will increase in march. Inflation remains well below the feds 2 goal. What are we looking for when the report comes out . Peter this is the first time i am taking a look at cpi. In the last week, we have had this interesting change. The San Francisco fed told us not to look at market measures. Everyone is saying that we have to look at a broader range. Tomorrows cpi is the most important it has been an a while. Carl it is the mattel story. Watch for more of the same in tomorrows cpi. Alix thank you so much. Peter, always a pleasure. Good to see you. Coming up we will break down todays earnings numbers and what it means for your portfolio. Looking at American Express and mattel. Alix American Express earnings crossed a few minutes ago. The revenue was a miss. Journey on the phone is david ridder. Joining me on the phone is david ridder. Where is the biggest weak spot for amex . David it is revenue. Eps surprised on the top side. It has been the revenue growth. They set a target to grow at 8 . Alix what part of that can be blamed on its relationship with cosco deteriorating . David that comes into play starting next year. Ok . That is a significant loss about 10 of the business goes away when cosco goes away. The take away from this quarter we have not seen the increase in marketing. As they try to retain those cosco cold holders as amex cardholders, those efforts will begin. We will see what they do to try to retain those customers, even though they will not be able to use their card at cosco. Alix what about cutting expenses . How much more room is there for the co2 cut expenses . David that has been a bright spot. They have done a very good job of cutting their operating expenses, but at the same time the other expense that is a big expense is rewards to cardholders and marketing. We saw slight increases and we are expecting that to ramp up. You make a good point. It seems that every year in the fourth quarter, there is another major downsizing and American Express. Certainly, every time i think they have cut all of the excess out, they end up doing it again. Alix thank you so much, david. Earnings for Advanced Micro Devices also crossing. Cory johnson joins me from San Francisco. Help me break down the numbers. Corey the company is reporting 1. 03 Million Dollars in sales. That is week. 1. 03 billion dollars in sales. That is weak. They tried so hard to get it right this time. They are doing worse than expected. Furthermore, the big picture is interesting. They are trying to avoid intel everywhere they go. They are still selling chips into pcs and notebook. The businesses declining dramatically. They have had some success winning making the chips for the nintendo boxes and the sony playstation, for the xbox 1. Intel is doing a little better because they are winning market share. Alix any word on the stronger dollar . Any word on that . Cory i do not see it yet in the release. Amd has to have a more Sustainable Business in the places where they are operating as they tried to avoid intel. Alix they are exiting their server systems business. What does that mean for the makeup of amd . Cory the server business has been interesting. A tremendous change that has gone on. Facebook google, apple, amazon web services, big buyers of servers are not buying servers. They are making the around. Making their own. It is not clear to me what pieces they will get out of. It was highly touted a year ago. Alix what are the options for amd . They cannot seem to keep their head above water. What do they do . Cory their strategy for specialized chips is one that has been very successful. Intel has not been as strong in the processor business. Those are the real strengths they are trying to build on. A lot of people look at this company they are surprised by how bad last quarter was. It looks like as is so often the case when the company says this will be the bad quarter, it aint over yet. Ill scope good stuff, alix good stuff, cory johnson. Looking at adjusted loss for the quarter at nine cents a share. The outlook not great for Advanced Micro Devices on the revenue front. Lending to companies without a credit rating. Sounds risky, that we will send but we will hear from a ceo whose returns are anything but. Alix schlumberger is reporting its lowest firstquarter profit in four years. The Company Announcing further job cuts. Netflix shares surging to an alltime high. It top 62 million subscribers worldwide in the first quarter. The stock has more room to run raising his price target to 900. Netflix could triple its worldwide users. Ben bernanke has a new job. He will be Senior Advisor exited out saidcitadel. What would you say about 9 . Some Business Development companies are offering. These Companies Help average investors lend to companies without a credit rating. Goldman sachs ticket public last month. Credit squeeze is about credit threes is about to hold credit suisse. Joining me now is michael foreman. Michael it is a bold Investment Fund that invests in corporate credit, loans of middlemarket american companies. We create yield for our investors. A very low Interest Rate environment. We create Interest Rate opportunities for investors. Alix big banks cannot lend to these Companies Due to the doddfrank rules. Michael banks are not moving out of the marketplace. Ours just listed a year ago, it is the thirdlargest. We have about 23 of the market. We invest to noninvestment grade companies. These are nice size companies with Good Management Teams Companies that are well managed, well run. We do a lot of Due Diligence on those companies. Our portfolios perform very well. Alix tilde return is 10 total return is 10 on the year. The yield is not enough to move the needle in that way. Michael we have been in the market since 2009 and we have more than doubled in that period of time. We are not in equity. You have to look at us more against the fixed income investments. To be up 10 is terrific. Alix how big does this get . Michael we are in the first or second inning. More and more people are coming into the market. They are copying our model. The recent announcement by ge capital. We think there is lots of growth and this will be an area of importance. Alix thank you so much for joining us. Etsy shares surging in their trading debut. Alix here are the top stories. Greece finance minister varoufakis speaking in washington today. He hopes to reach a deal with the euro area by the end of june. He also said greece does not need extended. He also said letting greece exit euros is profoundly antieuropean. Vice fed chair Stanley Fischer speaking at an imf event right now. He is expecting a pickup in growth after the first quarter. Wages are beginning to pick up. American express saying firstquarter profit rose 6. 5 . Expenses declined. It is the worst performer in the dow. Stocks finishing slightly lower today, relatively unchanged. To individual you to view individual stocks made a significant change. Julie lets start with a big mover in the afterhours and that is mattel. We talked about a few moments ago. The big move we are seeing, up 7 up 7. 5 percent. Sales did not fall as much as estimated. The loss was more narrow. When you look at the breakdown of the various brands, it looks like it was very much affected by currency. We have seen so many currencies companies affected by that. Fisherprice did not fall as much is estimated down 3 . Those are the two big brands and the two that have been struggling the most. Hot wheels sans increase. As for those two big movers in the session, we were looking at netflix trading at an alltime high. It was its best single day of trading since april 2013 and it has been up about 50 , 56 over the past three months alone. The company came out with earnings. Earnings were hit by the dollar affect, streaming video customers top 62 million. A lot of International Growth as well. Sandisk the Company Forecast falling short of estimates. It cut its revenue forecast. All of that weighing on a stock. Alix we also have some breaking news coming from schlumberger. The Company Announcing another 11,000 job cuts. The Company Already said it would cut 7 of its workforce, 91 hundred workers. It is going to cut another 11,000 jobs. The oil price has slid and hurt oil services companies. Spending on exploration and Production Services could be cut by 114 billion this year. The company saying it will cut another 11,000 jobs. Shifting to the fc ipo at etsy ipo. The Company Faces a new challenge, how to stay true to itself. Joining me now to discuss is katie, a bloomberg columnist, and alicia schaefer. What do you think . Up 90 today. What is your reaction . We will see how it plays out. Im excited to see what it will mean for us and being able to get Additional Support frometsy as a business. It will be interesting to see how it plays out. Alix a history of operating losses and we may not achieve or maintain profitability in the future. At what point do shareholders say no thanks . Katie wall street will want to see a lot of interest in the platform and growth. People will be happy as long as the numbers continue to go up. Eventually, they want to see profitability. Alix it could be a takeover target. How would you feel about that . Alicia no matter what they still will have the core of what it is, handcrafted goods, a marketplace for vintage and supplies. Even if there is a potential takeover from ebay, some Amazing Things ebay offers. As a seller it would be fantastic to have. Being able to continue to have the benefits of both, i would be interested to see what that would bring. Alix thank you so much. I appreciate your insight into the ipo. Coming up, honoring the victims of the Boston Marathon bombing. How the city has changed and what the future holds in advance of mondays race. On and off the field, the cubs allstar Anthony Rizzo the man himself. Will the curse be broken . Alix this week, america takes time to remember the lives lost during 2013 Boston Marathon bombing. Lets revisit the president s address to boston in the days after the attack. President obama as you begin this long journey of recovery your city is with you, your commonwealth is with you, your country is with you, we will all be with you as you learn to stand and walk and yes, run again. Of that i have no doubt, you will run again. Alix the city has continued to run and will do so on monday for the 2015 Boston Marathon. Joining me to discuss is chloe, executive director at Disaster Recovery institute international. Also marathon recordholder deana caster. An incredible track record. Currently, you are working on a documentary about the Boston Marathon. What is it going to be . The Boston Marathon film is showcasing the historical significance of the Boston Marathon. Know whether sporting event there is no other sporting event that is 100 years old continuing today. The first female marathoner jumped into that race and had to bully her way into it because women were not supposed to be running that distance. It could hurt their ability to have children afterwards whatever some of those false expectations were. Also, included, the bombings, the inevitable perseverance of the Running Community. The good stories and the heroes prevail in instances of evil. Alix your job is to make these environments safer and to deal with disaster relief. How is technology changed in the few years . Chloe technology was a game changer. We saw it in the first instances of the investigation when the Law Enforcement collected videos and photos. It was incredible. One of the ways they did that was through social media. Law enforcement used social media quite well to solicit that information from the general public. Mass notification systems are really good. Of course, cell phones might not be available and we need to look at those additional platforms. When something happens, the first thing everyone does is reach for their phones. Cell phone towers get overloaded and Service Becomes unavailable for people caught in lifethreatening situations. Texting is a good option. They take up a lot less bandwidth. It is important for people to remember text, dont talk. Alix what about nothing foreign event prepping for an event like a marathon . Chloe sporting events may be targets because there are they are large events that generate a lot of media attention. At a marathon, it is unique because it has a 55 mile perimeter that is open to the public. You cannot really change that without changing what is the spirit of the event. This is where testing and training become really important. Communicating with the public so they can have situational awareness. Alix part of the joy of running is it is like your happy place. You did not run that year. How would that change the way you might look at these races . Deena the events that happened two years ago gave me such faith in the Running Community and how strong we are. It made the Running Community a lot tighter that day and it is an honor to be a part of a sport that can create so much good in peoples lives. The strength they have exhibited has been just phenomenal. The First Responders and the people affected getting through this and inspiring a nation to move forward. Their lives have changed. Our lives have changed. We have to be aware of our surroundings. Running is good for us. Alix we will celebrate that on monday. We are looking forward to your documentary. Coming up next, it is early days but the cubs are in first in the n. L. Central. Chicago will need the bat of Anthony Rizzo to stay hot. Alix here are the top stories we are watching. Time magazines annual list of the 100 most influential people hits newsstands tomorrow. The law the selection will be celebrating five different covers. This is the 12th year time has released its annual top 100 list. For the first time ever, all six star wars movies will be released in digital hd this friday. The first new film in a decade comes out in december. I am so excited. Major League Baseball paid homage to Jackie Robinson yesterday. Every player were 42. 68 years since he became the first africanamerican to play in the big leagues. Is this the year for the chicago cubs . Fans are hoping for right talented management are in place. Anthony rizzo will play a major role. Last year he was an allstar with 32 home runs, 150 hits for the cubs. He joins me now. I know i am making a lot of people jealous. One of your huge days off. So far, so good, right . The cubs are first in the central. Jon lester is struggling. Some fans are a little nervous. How do you handle playing with such Passionate Fan bases . Anthony that is what drives us every day. No one has anything to worry about with johnny. He is a class act, one of the best pitchers in the league. We are excited to have him on board. Alix john is going to be fine. 155 Million Contract for six years. Anthony it is really early. Way too early to hit the panic button. This is a long season. He has had two starts so far. Alix i went to school at northwestern. I got to go to a couple of cubs games. The fans are passionate, to say the least, and superstitious. Anthony they are just so into the game. Wrigley field is beautiful. To see how passionate they are about baseball and about all of the sports in chicago, it is amazing. People talking about hockey football, baseball, basketball. They love sports in that city. Alix why were you helping them shave beards . Anthony it is part of our we are all about getting a clean start. We had a video. Alix that does not look fun. Anthony the fans were great. We had a lot of fun making those videos. Alix are you superstitious . Anthony i have a routine. Playing every day, you have to have a routine. To have a routine in baseball is important. Go through the checklist and do what you have to do. Alix what is the checklist . Anthony i get to the field, i. E. Some food. I need some food. I shower before the game. I really focus in on what im about to do for the game. Alix anthony, i am not letting you go quite yet. We will go extra innings. We will be back in just a few minutes. Alix this is street smart. Still with me is Anthony Rizzo. Lets talk about the game. The commissioner has push to make the game shorter. What do you think . Anthony it does a little bit. It shaved off a few minutes. The game is supposed to be played the way the game is supposed to be played. It should be addressed casebycase. Alix 20 in 2004, the game was under three hours. Now it is about 20 minutes over three hours. Kids are your ideal audience in the future. Anthony when i was a kid, i thought they went too fast. I never wanted to leave. I think it tells us how healthy are sport is right now. Alix what are some of the roles you might like . There has been some talk about a shot clock. It resets every time the pitcher gets the ball. You support these type of constructs . Anthony i do not. The game is played the way the game is played. It is up to us as professionals to keep the pace of play going. We all understand that we have to play ball. We are entertainers at the end of the day. We joke around. Are we going to put field goal posts up to too . Alix tell me about your work with hodgkins lymphoma. Anthony three years strong. We raise money for pediatric cancer. To give back i am a cancer survivor myself. To give back to kids and see them smile i feel like the family goes through it more than the patient with the way they worry. To help out, bring a smile to someones face. To help out a family is much more it is better than anything on the field. Alix you are a busy man. Anthony it is something that gets your mind off the game. A lot of people have it a lot worse than any of us do. Alix pete rose. Should he be in the form in the hall of fame . Anthony in this country, everyone is forgiven. Pete rose has made mistakes, but so have a lot of other people. Gambling is unacceptable. But i think pete rose has served his time. He is one of the best players to ever play the game. He is charlie hustle. He deserves to be in the hall of fame. Alix anthony, thank you so much for joining us. Good luck this season. I will be rooting for you here in my hometown of new york city. Tomorrow, we will talk ben kaufman about the companys first acquisition. Thank you so much for tuning in. I had a blast. John the only flying vehicle we care about today is the millennium falcon. Happy National Eggs benedict day. Hillary clinton and the way she courts. On monday, she is headed to new hampshire. Rachel maddow is demanding more specificity of hillary on