Transcripts For BLOOMBERG Bloomberg Surveillance 20150421

On thursday, european leaders will hold an emergency summit on how to stem migrant traffic. In baltimore, Six Police Officers have been suspended in a death of a man they have arrested. The Police Report does not mention how the injury may have occurred. Activists marched through Baltimore Police headquarters. The fbi says there is no reason for a civil rights investigation into the death of a volunteer sheriffs deputy. The deputy says he mistakenly fired his handgun at the man instead of using a stun gun. Brendan google is making major changes in how their Search Engine works on your smartphone. Today, it will favor sites that are mobile from the. That could mean to changes in the way that websites are ranked and hurt smaller businesses that do not have mobile friendly sites. Google warned of the change in february saying the new all go rhythm would have a significant impact. The penalty phase of the Boston Marathon bombing trial begins today. Jurors will decide whether Dzhokhar Tsarnaev gets the death penalty. The lawyers expect to argue that he was under the influence of a dominant brother. Rebecca gregory lost a leg in the bombing. Rebecca there is life after bad things. If i can be someones inspiration, that is what i want you for the rest of my life. Brendan rebecca says next year she hopes to run all 26 miles. Under armour reports results creeping up on adidas. At 7 30, it is verizons turn. Tom lots going on around the world. A better risk on field to the market. 2100 on s p 500. Eurodollar weaker. We will get to greece with Francine Lacqua in a bit. 56 a barrel, a bid on oil. On to the next green. The vix, near that 12 level of more complacency. Two year yields churn. And then there is greece. The threeyear yield in greece is 28. 8 . That defies description. We will try to describe it in the 6 00 hour. Lets go over to the bloomberg terminal and look at the u. S. Economy and what matters. Brendan, help me out, existing homes going back 20 years. I do not know where normal is. Boom, boom down we go, a going this is ugly we are sort of back to here. But what is normal and housing . Brendan as we get used economic certainties. One is we measure the strength of the economy by the strength of the housing economy. That linkage may not still be there. It is hard to tell whether we can assume housing is a proxy for the economy. Tom you are in the search right now. Do we get back to this nirvana of 2005 . Olivia in the recovery of the housing market, there has been a decoupling between existing home sales and new home sales. Supply is much tighter in new home sales. Tom the key thing is where we live is not normal. We have to say ourselves top ourselves. Brendan we assumed before he looked into the data that houses were getting smaller. But that is an adult anecdotally true. At that is not really true. Tom do you need a super kitchen . Olivia i need a super closet. A 4000 studio in chelsea is getting smaller. That is not normal. A 4000 a monthal rental. Tom we will continue this discussion on Interest Rates and housing. He still has a job along with 99 of the worlds bond strategist ira of Credit Suisse waits for higher Interest Rates. Maybe mortgages are lower. Investment managers. We begin the day asking the arch question when will rates rise . Lets save the fed stuff for later. In the housing business, that means lower Mortgage Rates but there is a lot of secondary conditions. What happens when your rates rise to the housing industry . Ian if our rates rise and affordability of housing goes down. You wind up with new entrants into the market that find it more to call to buy a new house. Some of the studies ive been talking about like a lineal like millenials. Im looking in this direction. So, and millenials arent as interested in housing houses as their parents. One of the reasons as they saw the house prices can go up and down. Prior to that, housing prices went up. Brendan you will always find a welcome here for millenial bashing on this desk. Ira lets talk about housing and Interest Rates. If you wind up with 50 or 60 of people owning houses in a certain generation, that is point to have an effect on a forward bases. Olivia whether or not you agree with sam zell is is it normal i would say it is because of affordability and millenials are saddled with student debt. Nobody is living with their parents. Brendan as rates go up, it will make houses less affordable. The problem for the last five years has been terms and conditions and not just the price. Nothing indicates that is going to change. Ira when you created Something Like the Consumer Financial Protection Bureau which are supposed to make it safer for people to get mortgages, it also means that it is harder to get mortgages. And we are not going back to the 2000s. Maybe we go back to the 1980s. Tom to our viewers and listeners, dupont with a 4 dividend increase. Ibm with raising the dividend. Is your world for our viewers competing with Dividend Income growth or is a yield still yield . Ira the yield is a you. It depends on who you are. Dividends tend to be because they are part of equities and can go up and gowndown, you have to have some kind of premium and should have a premium in order to own tom you brought this up about ibms earnings. If old into a rate structure. It all falls into a rate structure. Olivia that is one of the big criticism of ultralow rates what it does is incentivize companies bu toy back shares. Ira it happens quite a lot. Last year, the increase in the amount of corporate debt outstanding, a lot of that debt was used to buy back shares. Ecbs buyback programs tom is that a good or evil thing . Ira it would be better if those companies would issue debt to invest in capital expenditures. Olivia and grow the business rather than giving it to people who have a favorable tax rate. Brendan im wondering how he is on a first name basis with jenny ramadi. Well, lets turn to europe. We are going to talk about greece but lets talk about the periphery. Are you convince the fundamentals of these reforms that have begun and spain and in ireland . Ira some things are better. The fiscal situation and places like portugal and ireland are better than they were a couple months ago. Or a couple quarters ago. So, i think greece is not necessarily going to be contained. There will be a lot of volatility. But i think the chances of spill over to the rest of the periphery is not that bad. You will see some volatility if something goes particularly wrong in greece but it would not be as dire if this happened a year ago. Olivia we are waiting for the german 10year to go negative. They put a 2 ceiling on the 10year . Ira we we are not fans of selling bonds. Over the nexus six months, we will have a significant amount of carry over the next six months we will have a significant amount of carry trades. Tom is mr. Gundlocke, that all of the real economy impacts the value analysis. Is he correct that yields are going to drive to a new normal . Ira is the new normal 1950 or 1980 . That is important. The unusual period in yields over the forever history of the world the last 300 yea rs, what you can see is the 1970s and 1980s were the unusual period where yields were high. Most Market Participants if they did not live through that period they learned about that and they think it is normal. It is not. Brendan we looked back to the housing market. No matter what we are talking about, any economic indicator, which normal are we allowed to look after . Ira that is fair. The level of rates today is only somewhat lower than where it should be based on fundamentals. Tom oliva waaia was off yesterday. Did you run a marathon in boston . Ira it was patriots day. Tom he has got a revolutionary war tie on. Suzy welch and Brendan Greeley and i suggest that this book is maybe the surprise of your spring season. It is the reallife nbmba. I was surprised. Jack welch in our next hour. What is our twitter question of the day . This is a cool question. What have you learned from the chemical engineer known as jack welch . Stay with us. Good morning. Tom markets higher, futures up 10. We say good morning. Our top headlines. Brendan crossing the bloomberg terminal, the European Central bank is said to be exploring ways to rein in Emergency Assistance to greek banks. They are proposing to increase the haircut they take. Greek lenders are locked ourt of regular ecb cash tenders. Irans president is saying that saudi arabia and airstrikes must be stopped. The u. S. Is dispatching an Aircraft Carrier is a warning to iran. A dash cam video captures the rescue of a man from a burning car. Two officers pulled the men to safety. Dr. Say he will be ok. Doctors say he will be ok. Tom ira jersey with Credit Suisse. An important conversation on when will the fed raise ra tes . Then we move on to the tragedy we are observing in europe. A discussion of this italian response and European Response to the drownings in the mediterranean sea. Then brendans styling. How to buy a suik how tt thow to buy a suit . Brendan if you have a lot of money. Tom there is that, too. Olivia big Bloomberg School. The ecb is studying measures to rein in assistance to greek banks. Overnight, we spoke to former ecb chief jean claude trichet. Trichet nobody is optimistic on greece. We have to be totally realistic and it all depends on the maturing of the position of the greek government understanding that in any case if it wants to deliver growth and jobs which is the main goal of that government, it has to produce Recovery Program that olivia for more on the greek saga we are joined by Francine Lacqua. She joins us from our bureau in london. The ecb is looking at ways to rein in Emergency Assistance to greece. Is this a sign that mario draghi is losing patience with Francine Lacqua tsipras . Francine it is. Good morning to you. It is important to say that this program has not been put to the Government Counsel yet but it shows the ecp is more and more uneasy with what is happening in greece in negotiations between creditors and the government. It seems to suggest that they are at least thinking of a plan on how to reduce their loss. This is significant because if you look at the different life boats available to the g reek government it is the ela, the emergency liquidity assistance provided by the ecb that is so important. Greek banks have to go through the national bank. If we are talking about haircuts, that will make a difference about how much they will demand but it also means that in acaese of default, it will protect the ecb. Tom with haircuts, we are talking about real pain for real people. How close are we to a restructuring . Francine no one is talking about restructuring. When you look at the haircuts in this context, it would be for the greek banks the banks would have to either issue more tbills or find a bridge to perform that. I think you are right. We need to talk about restructuring but i have not really heard that word return any between any of the politicians or any ecb policy members because it is considered a bad word. The academics talk about it, but were not talking about it. We should. But we are trying to get over, to get that lifeboat for greece. Tom in this conversation, what is taking so long to get to what the experts say has to happen . Brendan francine has to explain this dance. We are talking about the european commission, the ecp, and the member states. It is important to draw these distinct is the most helpful of those three institutions . Francine it is down to three parties. It is the euro nations that have the most to lose. If i give you a pound for two pounds, then the other guy is going to want to have it also f or towwo pounds. Name talking about the other euro nations that would a fair treatment. In the greater scheme of thing, greece is small. You could write off their debt. That is not the problem. The issue is the politics behind it. Olivia we believe it there. Thank you so much, Francine Lacqua. Tom i think that every day we do greece. Brendan every day gets a little worse. Tom jack and suzy welch. Yes, we will speak to mr. We lch about general electric. The real life mba. This is a stunning book. It is frank about how to straighten out your business life. I will return with ira jersey. This is bloomberg surveillance. Tom good morning. Im tom keene. Sterns and greeley decided to show up today. A must read. Lets look at megan mcardle. The main release of his book on the clintons. Bill and hillary. Brace for clinton cash. I said the secretary Clintons Campaign was going to remind us of everything we hated about the Clintons Administration and this is one of them the way possible accusations of financial shenanigans kept popping up. Its a smart article. In the post today, i mean, you know the post is going to take a shot. This will keep them employed for months. Brendan why have we not hired those people to write our headlines . Tom this was before you were born when mrs. Clinton was doing commodity futures in arkansas. Olivia this new book is going to dominate the political discourse around hillary. It is amazing 105 million that is how much money bill clinton made in 12 years. Tom i do not mean this with any politics, could this be george bush and laura bush . Do you see them doing the money and the deals . Its unique about the clintons. Olivia they are doing wonderful work with the clinton global initiative. Tom here is the secretary could she allegations about political favors for cash. Secretary clinton we are back in two the political season, and therefore, we will be subjected to all kinds of distraction and attacks. And im ready for that. It is, i think, worth noting that the republicans seem to be talking only about me. I do not know what they would talk about if i was not in race. Tom i am not a sophisticate but i think it is something to come for the next 18 months. Brendan that is the big unanswered question of this race is are there skeletons we do not know about . We know about all the skeletons the clintons have. The assumption is that she and he have been completely vett ed. Olivia is this an issue that can sinnkk hillary . Does the fact that unsavory characters brendan i do not think the. Olivia they give her plenty of money. Brendan i think this contributes to a narrative that exist. If you like the clintons it is not going to bother you. What does it take to be a cutter . Years of apprenticeship that is quickly fading. That is quickly coming up. Good morning. It is april 21. Tom good morning. Bloomberg surveillance. Our top headlines. Olivia the first freely elected civilian of egypt, mursi has been sentenced to 20 years in prison. In 2011 he was arrested after millions protested for abuse of power. The military eventually overthrew mursis government. Italy has arrested the captain of the boat that capsized in the mediterranean killing hundreds of migrants. Another crew member was arrested. The captain has been charged with multiple homicides. The u. N. Says 800 people may have died. European leaders will meet thursday. Brendan would make it word of the drug industry largest takeover attempt this year. Teva is preparing to make a bid for mylan. Elliott gotkine is in tel aviv. Elliott we understand that tevas bid could be tabled as early as today. Not only would it either biggest deal so far this year, it would created the understated undisputed king of generic drugs with revenues in the region of 30 billion a year. It has been speculated the two might get together. Teva was to offset any drop of revenues from its multiple sclerosis drug facing competition this year. Shares up in 3 . Mylan in early trading, up 12 . Brendan thank you. It is the perfect different that special someone. A 100 carat diamond that is described as perfect. Sothebys will auction off the diamond in new york. It could bring 25 million. The diamond was mined [coughs] tom you are gasping. Olivia brendans wife is watching. Brendan weighed over 200 carats before was cut. Those are your top headings. I need more money. Tom i am dr. Tom. We welcome Olivia Sterns. How was the therapy going after our graph event . Olivia i feel a profound sense of loss. Tom fou4r carat loss . Olivia that was a 12 carat diam ond. I have done a lot of reporting on diamonds, including debeers. The reason why the pink one is more expensive is because fancy colors are harder to find. Tom she is a font of wisdom on diamonds and carats. Brendan bloomberg surveillance the diamond report. Tom Janet Yellens got a ring on her finger. The fed William Dudley of the new york fed he adverbed the debate forward using the word hopefully. Ira jersey, neil sauce all at Credit Suisse search for the waiting and where we get back to. Are we in september . Ira the First Quarter data was so weak the fed will need clear evidence that we are going to have a speed up, which everyone is expecting in the second quarter. You needs to get some of the thirdquarter data in order to convince everyone that things are enough to hike. Tom dovetail in your team effort at Credit Suisse. I think of James Sweeney where the deflation worry is overdone. Ira i think deflation is overdone. At least now. There are places in the world where oil prices have gone where youre going to have some headline deflation for a while. But on a core level it looks like deflation is over you have the housing prices, even though we said at the top of the hour that housing is not great, but it is Getting Better. And certainly the implement situation really is not that bad. We had the disappointing number for march but we think that will rebound. Tom that is what we heard from david yesterday. Brendan bill dudley spoke yesterday at bloombergs headquarters about the feds policy. Dudley decisions on monetary probably such as the timing of liftoff will depend on how the economic out look involves, in particular to the labor market and inflation. Tom i saw you doseze off during that speech. Brendan bill dudley has talked a lot about for guidance. What has been your experience of the feds sometimes fumbling sometimes adequate experience with for guidance . Ira i think a lot of it tied their hands. They were not able to do what they hoped, for example, end quantitative easing. A lot of the for guidance experience have worked on keeping volatility in the rates market low. That tends to depress the level of yields. And all of that was designed to help the economy. I think the economy if you look at the level of the economy. 3 gdp growth, 1. 5 fccore inflation. The last time we were at those level, the funds rate was at 1 . That was the early 2000s. Tom not there. Ira rates are still low. Brendan i want to make sure understand this. You think that for guidance worked in the sense that it kept volatility low . Ira correct. Tom i want to look at the two year chart. I want to link this into the upper of Larry Summers and secular stick asian. Secular stagnation. You are good at looking at fiveyear forwards. Do you presume a new lower terminal value for lawrence summers, four janet yellen and for Olivia Sterns . Is it a new lower regime . Ira my view is we will have lower regime that we are not used to in the last 35 years. You wind up with 10year yields that do not see 4 during this entire cycle. Tom unbelievable. What are they going to do on a nominal basis . Olivia buy diamonds. Ira equities, for example brendan the fact that yields are higher than five year note yields. You go back to the 1960s and the 1970s, that is where they were. Ira you do not want to be on the front end of the two year notes. Yields are too low. The fed will hike. We dont think 10year yields are going to move a whole heck of a lot. They will be a little bit higher for where they are 1. 9 . But we do not think it is going to be an extended bear market. There are a lot of dynamics like the ecb buying every single positive yielding bond of they can find that is going to keep the back end so the 10year and 30 year sector well supported. Brendan these are things i have not yet heard about the fed. Given that we talk about the fed for two hours every morning, that is extorting her. Thisat is extraordinary. Coming up european leaders are facing a humanitarian crisis of migration. We will tell you where most of the migrants are coming from. That is today single best chart. Bloomberg surveillance streaming on your tablet, your phone, and bloomberg. Com. Tom good morning. Futures up. Risk on. As the overall theme today. The single best chart. This is a tough story. Brendan a german tablet called this the gate to hell, referring to the libyan coast. Libya is not where the most refugees are coming from. That is the subject of todays single best chart. The European Union called a meeting of leaders later this week to discuss the growing him and a tearing crisis, people coming on boats. Usually they arrive in italy, but look at where they are coming from. We assume they are coming from Subsaharan Africa through libya. That is not the case. The lines sure of them are coming from syria. So, when we talk about the humanitarian crisis, there has been this argument between renzi and the rest of the European Union saying we cannot all this alone. It cannot be in italian problem. Europe needs to make libya more stable. That might be true. If they want to sell the crisis abroad, they need to go to syria. Olivia the numbers are staggering. 9 million syrians displaced. 56 Million People worldwide. Thats the most displaced people since the second world war. Tom that is the point. The timeline goes back to world war ii. Olivia one Million People are waiting on the south of the mediterranean trying desperately to across the water to get into europe. Brendan mateo renzi this cannot be an exclusively italian problem. The Italian Coast Guard is doing these rescues. This has to be a pan European Response. So far, it is just the countries bordering the northern mediterranean. Tom heres haiti, suspected boat accident leaves 21 dead going north from haiti to the turks and t olivia 35,000 people have crossed over so far this year. One Million People await. What is the response . So far, european policymakers are talking about enforcement. Destroying the ships. That is not the solution. Brendan it is not Getting Better because the quality of ships is getting worse and worse. When you look at the european papers right now, there seems to be an outbreak of shame. Deep shame that it took 750 deaths in order to really focus attention on this problem, which has been there the entire time. Tom the New York Times overnight with a great summary with that effort. This is money. People pay a lot of fees to get on those boats. Olivia it is security. People are trying to flee civil war. Brendan i think olivia is right. Lets point to the chart again. Coming from nigeria, there is not a civil war refugees coming from nigeria are seeking a better life for better economic conditions. The refugees from syria from afghanistan. This is as olivia pointed out this is basic security. Basic health. Olivia lets be clear. Once these migrants do step put on the continent of europe, that does not mean they are going to get asylum. Right now they are living in camps in italy on the french border. Tom a debate, the photos the New York Times photo Brendan Europe has always been the place where they are willing to keep the gate open. They did an admirable job of that during the war of the balkans. This is testing that assumption of their generosity. Tom lets move on. We have some photos to look at. We start with some in boston. Olivia number three, the Boston Marathon. 117,000 people ran. You are looking at the winners. Of ethiopia and of kenya. Tom cold weather, perfect for the race. Olivia he won the mens race in two hours. Brendan that is a Beautiful Day in boston. A holiday for everybody. Everybody lines the routes. Its an amazing day. Tom he see the people behind the barricade on boylston street. Olivia number two, i love a good weird animal story. A new frog species and it looks like kermit. Tom did you demand they do this . Did you have a tantrum . A new frog on the right brendan why are there so many songs about rainbows . Whats on the other side . Olivia the new species has a translucent belly where you can see its internal organs. Brendan wow. That is awesome. Tom it is cool to watch with the tragedy about the white reino. Brendan rainbows have nothing to hide olivia our number one vote of the day. Keeping with weird animals scotland. Tom this is another endangered species. Olivia this weeks marks the 8030 anniversary of the photo, one of the most iconic photos of the alleged loch ness mons ter. You can go underwater and search for the loch ness monster yourself. Brendan gosh, google is good at this. Tom they have fun with this when they are not getting sued. Brendan how often do we talk about a new google street view . Possibly want a month . Coming up next, how to make a suit fit for a prince. I visit4ded a cutter. I learned something about myself. Tom seeing kermit. You have clearly dropped on the right. Because you are right h anded drop right or drop left. There are other ones but i am far too kind. Tom 8000 blazer. I now know that i drop right. Evidently, a lot of men do. This is bloomberg surveillance streaming on your tablet, your phone and bloomberg. Com. Tom good morning, everyone. Bloomberg surveillance. Im tom keene. Our top headlines. Olivia crossing the terminal, shares of are down the most since january. The key measure of financial strength fell in the First Quarter. The bank may have to boost capital even further. The firm targets 11 . That income rose to 23 as increased trading activity boosted its Securities Unit and private banking. Ibms Quarterly Results topped forecasts that those forecast had been cut. The company lost revenue due to investment in slipping sales of older software. And Bloomberg News with wins its first Pulitzer Prize. Thackeray zachary miter. We are very excited for that. Your top headlines. Tom coming up on bloomberg surveillance, the ecb, they are uneasy about greece. The dreaded word haircut floating about. An important meeting is friday. Verizon and under armour reports. Dont froorget. Jack and suzy welch will join us. The books is the real life mba. It is a tough, hard book to read. An emotional look by mr. Welch. He was welldressed. Brendan Thomas Mahone stresses royalty. Also the literal british kind of. It takes 50 hours of manual labor. You can wait a year or more. Tom mahone has his own firm english cut. He joins us on set. To want to talk aboutm suits. I want to talk about apprenticeship. We have been teasing this as an art, but it is a trade. What does it take to cut up bespoke patterns by hand . Tom tim e is the essential key. In order to cut the pattern successfully, to measure somebody and design something, you have to know how it goes together. So you have to be able to know all the backstory as well. You got to know literally from the ground up what a human being making something to do. It is not just about the fit. Cloth has to be shaped formed. So, traditionally, it is not quite the way now, but is to be four years of learning to make in a work room. A further three years of the cutting room. And that would be combined with college where you learn to dress. Brendan he start sewing is a taylor. Only then do you learn to approach a human being and try to figure out what a suit looks like. How has that changed . You did this legendary apprenticeship at anderson and schappert on savile row. You take on your own apprentices. How is that changed . Thomas a lot of their young people are very keen. There is a lot of interest in tactile professions. People love the ability to create something and make something. And especially with the internet, there is a lot more understanding of the craft, rather than being an expensive product. People know what those into it more now. But we struggle a bit because people are very keen but when it comes to ok, lets start the process, and they realize how far they have got to go. You say to somebody after three years, ok your career, if it is from floor to ceiling, you have got ask inches off the floor in this first three or four years. That causes a lot of people today to want to jump ship. So it is difficult to get people to see it right through now. Brendan and this is a crisis for your trade because were all buying of the rack. That is what im wearing now. And there are not enough people trained, willing to go through these seven or 10year apprenticeships. There are not enough people to do it. Thomas it is a simple fact. To make things even worse, after i had been in a trade for 10 or 15 years, i thought i had quite a good angle on it. Now i look back at what the work i did 15 years ago and i say, it was terrible. So, basically, that is a minimum. Olivia thats style. Thomas it is not just style. It is technical things as well. Tom i want you to sell me. I spent 1800 on a suit. You go, i would like you to spend double that. Why . What do i get . Thomas i think with savile row and what we may, it is far more personal. Basically, the cutter, which is myself, which is the part i play in it, i look after the whole process from start to finish. Then we have an individual who will make the jacket completely. We will have an individual who will make the waistcoat and the trousers. It really is nearly all done by hand. So, it is little bit like, you get very top end cars where you get certain individuals that work on the engine. The engine is given a stamp from the maker. So it is that type of thing. The process involved with it. When we say the hours involved, thats like a minimum. Because sometimes we put a garment together. We will put the sleeves and look at the collar and say im not happy. Redo it again. Which is another reason why we struggle to find people to learn the craft. Olivia certainly your suit ias very beautiful. These two guys do not usually shop looking so preppy. These are not toms designs. This is brendan saturday night. This is his style. Tom keene. Brendan how did this happen . Olivia look at the face on tom keene. [laughter] brendan what is this . How did this happen . Olivia saturday night fever with tom keene. Tom the euro is weaker today. 1. 0682. Jack and suzy welch next. Bloomberg surveillance. This is bloomberg surveillance. Tom it comes down to look what are the ends all the and see, unease grows as greece runs out of money. The ecb talks haircuts. Tsipras tries to get to the meetings. Oxygen fueling a better than good m a market. And jack and suzy welch are back on the reallife mba. Jack welch on getting economics very wrong but also right. Good morning, everyone. This is bloomberg surveillance. We are live from our will headquarters in new york. It is tuesday, april 21 will stuff im tom keene. Joining the Olivia Sterns and Brendan Greeley. Top headlines with Olivia Sterns stop olivia . Olivia tom, we started egypt where Mohamed Morsi was convicted in the killing of protesters andin 2012. Morsi and his Muslim Brotherhood were elected after the followed longtime leader mubarik. And on thursday, european leaders will hold an emergency summit on how to stem migrant trafficking from the middle east. An investigation into how a black man suffered a fatal injury while in police custody. The incident allegedly happened after fatty freddy gray was arrested april 12. Protesters were carrying signs saying black lives matter. People he think there is no reason for a civil rights investigation into a black man shot by a volunteer surest a beautiful so he said he mistakenly fired his handgun at the man a using his stunned gun. Brendan it is a new world for businesses who counter google search. Starting now, google will rank him if they are mobile friendly. Google warned of the chains in february. Now i jury will decide whether the convicted Boston Marathon bomber will face the death penalty. Lawyers for Dzhokhar Tsarnaev are excited to argue he was under the dominance of a brother who was killed in the student during the police. Rebecca gregory lost a leg in the bombing. Rebecca there is life after bad things that happens you come and if i can be someones hope in his ration, that is where i want to do. Brendan rebecca said next year she hopes to run all 26. 2 miles. Under armour has just reported results tom kevin plank out and talking up Jordan Spieth in the press release, no surprise. Talk about a home run for under armour at the masters. Massive Revenue Growth. Olivia under armour is a company that is in a growth phase. Jordan spieth which she was my boyfriend revenue of 25 . Tom that is so great, it is refreshing to see a growth story, but you get down, it is a 13th in business and seven cents on the dollar net income, this is a growth phase with Free Cash Flow going back and forth. Olivia that is why they want to hear what they have to say about the outlook. Brendan people think under armour is good. They are a business that makes clothes cheaply and make people fall in love with the brand. They figured out what nike figured out a long time ago and what id eat us tom can mr. Plank migrate this to a nike . Brendan he already learned his lessons. He tried to move into womens sportswear, not successful the first time. He is doing better now. They acquired rights for a couple english from your team. They are becoming a nike. Olivia and they are totally crushing it with athleisure. All the women have leggings on. Tom her life is so far removed from my. Do you know the last time i went to brunch . Olivia yeah, this morning. Tom lets do a data check, equities, bonds, currencies, commodities. Brunch. You have to get to sarah beth at 8 00 because the linux altidore at 8 22. Eurodollar is weaker, 1. 0685. Oil is on a bit. We need to go to france. We are on a we do go to Francine Lacqua. We are on a greece fatigue. When do we get to a restructuring . Carl weinberg talks about a huge haircut, a huge time delay. We are nowhere near that going to a friday meeting, are we . Friends in no, we are nowhere near it because we thought we would be in a different place. We thought we could Start Talking about some kind of restructuring or haircut deal. That has not happened. I know there is a little bit of greece fatigue tom, but people are getting a little bit more nervous. We heard from the ecb looking at different options with the liquidity system. I know it looks like we talked about the same thing everyday, but it is more accepted now that an event has to happen. Tom francine, tell me about greece semester politics. Is there anybody, pumping dry is this government in control, or does the old Guard Research in. Francine he said he would be interested in helping out the government. We have also heard from the deputy Prime Minister that we might be facing an election. Sometimes it is hard to look at the whole faction, and sometimes in the United States. It is not one united party. They have three main factions, and the are less and the far left does not want it. Politics is messy in europe and very messy in greece. Brendan fran, is it possible to look over the last seven days a figure out these deals are picking up steadily . Is it possible that the institutions that had a little more empathy toward greece, the imf, the commission are also themselves losing patience . Francine i would actually agree with that, brendan. It is difficult to say whether they are just losing patience or saying that they are losing patience as a warning sign to greece so that we do have the two sites coming together, or whether they are actually losing pace, but what you are talking about is that nice Bloomberg School saying that the ecb is now looking at putting haircuts so that they actually take a shorter loss on the emergency liquidity assistance for greece to default and this is something we are now looking at. I think people are just talking about a possible default much more than they were even a week ago, tom. Tom francine, thank you so much, Francine Lacqua in london. The dow at 18,000, oil finding a bit, and yes, the sign of shortage of german debt, somewhat tighter than the european cutie. Our Lisa Abramowicz holds courts, where yield and hell change it is a beall and endall. I will rip up the script, lisa what was it like yesterday on the floor when missr. Mider wont the Pulitzer Prize . Lisa there was a lot of cheering, enthusiasm. There was a lot of champagne tom excuse me, they had champagne in print . Brendan are you kidding . Theyve had champagne on ice or years winning for a Pulitzer Prize. Lisa we have champagne every day. Tom very cool. Tell us about the backstory on the bonds death that our viewers and listeners need to know. This news item this news item this item what are people looking at that is away from the headlines . Lisa this morning, youre aboard, brendan lisa, lets get here, im right here with you, stay with it. Lisa european banks are basically paying for the privilege now for the first time, possibly ever to lend to one another. That the five logic. Olivia what about the stories of european banks paying people take out mortgages . Lisa limassol is going to resist or a story about spain selling three months then i saw this morning who is it going to bring it back again . It seems like nobody is. Tom what is the so what in the Lisa Abramowicz world for america . Three years it is crazy spanish news. What does it mean for us here . Lisa well first of all, how can you possibly imagine your 10year treasury yield shooting upward when people are paying for the privilege of lending to the difficult economy in europe. That is absolutely mind blowing. And the second consequence here is what does this do to investors . . Testifies log this defies logic. Brendan it defies reason experience. That should happen. Olivia brendan, i have got a good credit rating, will you pay for the privilege of lending to me . Brendan i have no money. Lisa it defies logic for investors, that is my point. Tom can i say we are getting really interesting tweet response on jack and suzy welch . Olivia thank you for the segment. Coming up, much more Lisa Abramowicz and also interesting conversation with jack and suzy welch. They will join us here on bloomberg surveillance to discuss their real book their new book, the reallife mba. Tom good morning, everyone. Lets get right to a morning mustread. Olivia my morning mustread comes from irans foreign minister, Mohammed Jafar zarif, writing so he says iran has been clear that the purview of their constructive engagement extends far beyond Nuclear Negotiation and he is talking about a role in iran and goal security right now, which is fascinating because if you look at the cover of usa today, you will see uss Teddy Roosevelt intercepting an iranian ship or i should say having been sent to intercept an iranian ship. Mohammed thezarif rightly points out that the response has been a sunni gulf arab states have come together to form a military alliance in their launching airstrikes, but he wants iran to be part of the solution. Brendan i was thing back to that amazing new yorker piece that point out that i ran thought after such irrelevant there would be a possibility of a preparation with the u. S. And that did not happen. What does that mean regard was what he says that he is taking out space for an oped in the New York Times . What does it mean that he is calling of the New York Times and saying i need to speak to your leadership . In the loopolivia it means the rouhani leadership is interested in changing the tones. This is a guy, this is a total changing of tuneful sappy says one cannot confront al qaeda and its ideological siblings like the socalled islamic state, which is neither islamic or a state, a direct accusation that the saudis are enabling the islamic state. Brendan whether or not the negotiations that took place in switzerland, or whether or not it is a peace deal masquerading as a nuclear deal. Tom does it become a big deal or just fade a way . Brendan what do you mean . Tom john kerry all this hoopla of working 12 hour days, we go through a series of votes. Where is the discussion and 12 month . Olivia it is on the table. U. S. Military companies are selling arms to arab allies, the russians have lifted the ban on selling missiles to the iranians. This is very much on the table. Tom thank you. Coming up, jack and suzy welch. Stay with us. It is bloomberg surveillance. Tom good morning, everyone. Bloomberg surveillance from new york city. Top headlines with Brendan Greeley. Brendan the European Central bank is set to be exploring ways to rein in emergency systems to great banks. Peoples knowledge of the plan say ecb ranks are proposing a haircut on the collateral they post when borrowing money from the bank of greece. Greek lenders are mostly logged out of ecb cash tenders. Arn holdings saul shares rise the most in two years. First quarter revenue increased 22 . That beat estimates. They are being lifted by a surge in smart phones that take advantage of its Technology Including the iphone apple 6 and samsung s6. And the rich are finding new ways to stretch their cash. I will say. Larry zynga blackrock says gold is out studies of the wealthy are larry fink of blackrock says gold is out. Those are your top headlines. Tom with the waning auction markets, if it is not fun to do so, do something different. If youre lucky, learn that at a young age. If youre especially lucky, you get to do it. Jack welch is an engineer known for this or that and other things, but he is known for stealing sigma. Jack welch and suzy welch of their new book, maybe we will talk about ge as well. The reallife mba, 200 something pages. Let me go to a quote jack which i thought you were especially insulting on. Taking the grand out of the game, a leaders job is a sweet way to action blockers, to change resisters, the process of excessive these who bore nothing more than selfappointed, selfrighteous schools. Socolds. They drain energy. You are direct with this book. Why . Jack big business is a game tom, and without question, the king that wins has the best players, and this is all about changing since two that make, not enough people are engaged. The gallup poll shows 35 of the people are engaged, 65 against it. Imagine that. Imagine going to a game and 65 of your players stay on the sidelines. Tom lets go to pittsfield massachusetts, leaving the fine lines. Everybody think the book is jack jack, jack suzy it is jack, jack, jock. I am a writer and editor, i contributed a little bit. Tom what do we get wrong in our mbaitis today . Suzy we have a chapter called getting whacked and getting deader. That is what happens in life. It happens and customers, you have a competitor who comes in and suddenly you are the small guy, you get fired, you get whacked. We have a whole chapter what to do when you get whacked because you can get out of it. Tom what do we do . Brendan read the book, tom. Suzy the first thing you say is i own it, here is what i did to contribute to the whack, and there are several steps to changing the way you approach the markets and a strategy. Brendan when you talk of a that tom talked about, the action blockers, your vice in the book is very clear get rid of them, fire them. Tom how do you fire somewhat . Jack with dignity. Anybody who is fired is surprised, it is the boss fault. No employees should ever be surprised. We have talked to a Million People as we gone around the world suzy literally. Jack literally in the last 10 years come and we ask people do you know where you stand in your company . We do not get 10 of the crowd raising their hands. People working in a job where their bosses are not telling them what they need to do to improve tom can you tell olivia with that accent that he was captain of the Salem Massachusetts hockey team . Olivia i could. Why is an mba not worth it . I have a lot of friends a bit fiscal taking out 30,000 loans. Jack we do not say that. Suzy theres a time and place for an mba. If you back two years, and the money and flexibly, you can go to one of the toptier schools, ok . But now you can get an nba education in a book, online there are lots of ways. Schaeuble jack you and go to the jack welch metaphysical, we have 900 students. Olivia but it is an online school, and people go to the nba for the social component, for the networking. Jack there is no question, you are right, that is the missing link in an online school, and we are working we had a meeting with new york area graduates the other night. I am on a webcast twice a month. The dean is out in the country meeting with our students. But it is hard. Suzy it is a traitor. You give it up, you give up the socialization or the low cost. Jack you pay 39 thousand dollars, you get an mba, you stay in your job, 65 of my graduates are getting promoted 18 raises while they are there. Tom can i get a quote from the gospel according to jack and suzy . Brendan are we going to have to hold hands and have a service . Tom heres jack welch quoting and sometimes you want to go where Everybody Knows your name. [laughter] he is quoting from cheers. Brendan all youre doing is falling out of the massachusetts references you can come up with. Tom is norm going to show up for the next block . Jack and susie with us. Olivia jack and suzy are staying with us on bloomberg surveillance. Verizon has numbers we will break down when we come back on bloomberg tv and radio. Tom good morning, everyone. Bloomberg surveillance from new york city. Lets go to the bloomberg terminal and try to figure out what normal is. Brendan greeley will help me out. Heres before the boom jack welch bought all of his houses here. He has like, 12 houses. Here is the boom commendably crash down here this was suzys fault then we come back down to a normal housing market. Brendan lets go to jack welton since we have him right here with us. Lets go to jack welch since we have him here with us. Tom where was your first house . And was at a place to put people . Jack it was a place to put people. Brendan is our economy to o focused on a fact that assuming people will always buy houses . Tom you are with me, you can mispronounce words. Jack we cannot seem to get a real move to get back to get back to that. Tom jeff inmemelt with ge says we need a sustained 3 plus. Do you agree that it is just about Economic Growth to solve americas growth . Jack well, 4 would do it for sure. This book is a lot of our growth and about getting the energy tom it always gets back to the book. Brendan his answer, if i see that, is jeff, i will see your 3. 5 and raise you another 5 . [laughter] tom housing today, is it going to be an investment or do we go back to another time and race where it is just something you did . Jack we had all that juice being poured in in 2000 to 2007 but we were always expecting 1. 2 million now we are down below 1 million. Olivia sales are stronger than existing home sales, then of course the broader trend in the economy jack, people like sam zell betting that millenials are never going to move out of their parents homes, and that is a real problem. Jack and renting is a big game now. It is pretty appealing to rent an apartment, and rents are skyrocketing, so there will be a crossover point again i think. Tom we have verizon out right now, coming out of a strange way. A press release a little bit of headlines. Olivia . 84 versus estimates of . 95. Im not 100 clear that is apples to apples, but at first glance it appears to be a disappointment. Lets give to someone who knows what theyre talking about, john butler with bloomberg senior intelligence. We know how much pain john ledger is inflicting on verizon. First quarter earningspershare at 1. 02. What do you think . John verizon has stood above the fray a little bit, olivia. It is really a lowend game that card pricing, but at the end of the day, it is really beginning to affect at t and verizon because Wireless Service, after all, is a commodity service, and john ledger knows it. Tom are they paying out too large a dividend . John i do not think so, tom. You said it right this really is a dividend stock. Theyre calling for Revenue Growth 4 , so really it is not a growth story in any way, and they need to do everything they can to protect that dividend and to grow it over time. Olivia just be clear, First Quarter earningspershare was a beat, they are actually 1. 02 versus . 95. And then there retail postpaid connections added is shy of estimates. John first of all, there is your impact from tmobile because they really are capturing a lot of i will call them transient subs people who are willing to make that change. Wireless is no longer a growth business. I mean, everyone who wants Wireless Service in the u. S. Now has it, so it is a zerosum game. If you game share, youre taking it away from someone else. Verizon and tmobile and increasingly sprint. That net adds number tells a story. Tom john butler, thank you so much it looks like my grandmothers stock from another time and place. How but a data check here . Equities, bonds, currencies, commodities. I am watching the euro 1. 0703. Haircut talk for the beleaguered grease, oil with a bit on 56. 10 a barrel. All of it a risk on fuel with the dow at 18,030 four, s p 500 closing 2100 as well and the 10year yield 1. 87 . Olivia this is bloomberg surveillance. I am Olivia Sterns here with tom keene and Brendan Greeley. Tom lets get back to the book, the reallife mba your nobs guide to winning the game, building a team, and growing your career. I dont know what this means. There is a part back in the book, which is not touchyfeely, but it talks about emotion and about being happy, about getting to the right job. A lot of us are miserable. I am honored in it every day i wake up and go you are kidding, they are going to pay me to do this . How cool. But a lot of people do not have that advantage. Suzy jack and i wrote a column together called how to know what it is time to quit your job. We got one million hits. You do not read that if you are happy in your job, ok. The last 1 3 of the book is on careers, and theres a section about what to do with your life. People say i do not know what i am doing the right thing with my life. Figuring out if you are actually in the right recession. Tom do you think linkedin is a constructive force. Suzy yes jack absolutely. Tom you would have used it as a tool. Suzy for sure. Brendan you say business is a game you have to be enjoying it, you have to want to win it but there is another decision resume, which is how much of our lives we want to put into the game that is business, and how much do we want to put into this other part of it, which is semi, which is nothing to do with winning the game. How to make a choice. Jack that is a personal choice. Yours is different than mine. Brendan what if it is different from the management at your company . Suzy then you have a thing about whether or not you are at the right company. Your personal value has to got to agree with the value of your company, or it going to be like this everything with a because if youre Company Values availability, other people get promoted because of it, they value that you are always there, and you dont come and you want to have a real bifurcation between work and life, you have to find a company where your values match or it is just going to be war. Olivia do you think people these days are just expecting too much satisfaction . Jack no we do not agree with that. We are seeking wonderful kids in their 20s hungry, nose against the grass, and we have been to a lot of schools now brendan our control room is full of them. [laughter] jack i mean, this idea of entitlement and all that tom you get back to this now marissa mayer, well, well, well, marissa might have gone on to insult puppies and rainbows given the outrage. There is a big debate about her future at yahoo jack what until you hear about her decision to bring people in. She is in a war, she has that these people in jammies from home working from home, and she says look, if were going to take the fight to the competition, we need to be all hands on deck. Olivia who is the american ceo getting it right . Suzy there are so many. Tom [stage whispers] mr. Immelt. Suzy we are still talking over you. [laughter] tom jack, i have to ask about this split off. Is mr. Immelt doing the right thing, taking ge back to pittsfield . Jack he may have made a call that the regulatory environment, no leverage doddfrank, these rules do not make g as attractive as it was. 90 billion of assets, so it is still a substantial Financial Services company, but it is servicing the industrial part of the company. Tom is his industrials different than yours . Jack no. What do i want to be . Number one in aircraft engines, number one in power, number one medical number one loading transportation, and we were not when we started, and we got there when i retired. Tom lets come back. Jack welch and suzy welch, fired up, the reallife mba. Brendan and i looked at and said yeah, yeah jacks golf game was off and he had to write this. Unfortunately, i have to tell you this is fabulous. [laughter] it is incredibly blunt. Brendan it is. Tom it is very cool. The reallife mba jack welch and suzy on the battles of doing well in our modern society. Our twitter question of the day we continue forward, what have you learned from jack welch . I learned how to use a slide rule. That is my answer. [laughter] stay with us. Futures up 9. It is bloomberg surveillance. Tom good morning, everyone. Worldwide bloomberg surveillance. The reallife mba. jack and suzy welch with us. Jack, i have got to ask about the uproar two years ago on the bureau of labor statistics, and you were criticizing the Unemployment Rate, that will be blunt i was out front and say why does a smart chemical engineer secondguessing the government . I was suggest, and you admitted in your wall street journal oped it was a debate you got wrong, but one thing you got right was a whole part of america disaffected from being productive, being positive, and looking forward. We go into this next election with a lot of america not part of the debate. Jack i do nothing i do anything wrong and that, tom. Lets be clear on that. Tom ok. Jack we have got Unemployment Rate whether it is not percent, 10 , or 11 . To me people are looking for work. These people are pulled out of a hat. They just went back and forth. This workforce is not fully employed lets face it. We are barely back to where we were before the recession. Tom what should the candidates do . Jack create jobs, get growth, have growth qualities, not over regulate the hell out of a whole country. Financial services you cannot move. The business is not being touched by regulation. We are closer and closer to europe him and if we do not change that, we will not get the growth. Tom how do we get tim cooks cash abroad back to america . Jack with a better tax policy you start with a territorial system, you would not be in this game. Tom jump in here, brendan. Brendan you see new tax plans in congress that seems to be make sense, everybody in congress on both sides drops in like a hot rock. Im surprised weve been talking about window not to get an nba. You talk about very bible leadership lessons that people have taken into business from the United States marine corps. I thought that was a fascinating anecdote and it rained true for me for my own father used to tell me what does a kid you always let the troops eat first look to the veterans in their 20s and 30s who are returning to business, what lessons can they take with them into the Corner Office . Jack they desperately know how to lead. They know how to take care of the troops. Look we have got to get engagement. There is no question we are not engaging the workforce. We have got to get into the skin of employees, we have got to give the purpose to their work we have got to get them why we go in there, how were getting there, and what is in it for them. All of the ceos give talks, but they never talk about a lasting we are going to change but we are going to go here, what is in it for me . Brendan a central banker will call that forward guidance. Olivia in your study of leadership, what is the difference in the way a woman leaves and the way a man leads . Suzy you cannot make generalizations will stop that is what i really learned. People talk about oh, women are softer leaders some of the most ice queeny leaders ive ever had have been women, and some of the most emotional have been men, so i do not iron. Tom suzy jack, thank you. The reallife mba. This is an important book. I suggest you look at it. Stay with us. Bloomberg surveillance. Tom we say good morning, everyone. Bloomberg surveillance from new york city. Futures up 9, dow futures of 77. Top headlines with Olivia Sterns. Olivia russia is now entering a new session. The premise or says the countrys economy contracted about 2 last quarter on an annual basis. Of course he blames the slump on unprecedented challenges from a plunge in the cost of oil any sections imposed on russia. The decline in gdp is the first protraction sensince 2009. An under armour trailed analysts estimates. It is up from a previous projection but still fell shy of analysts views. The Company Projected a revenue grain of 23 this year which would be the weakest growth believe it or not, since 2009. And Bloomberg News wins its first Pulitzer Prize. Zachary mider wins for his article on Corporate Tax avoidance. His article was called painstakingly clear and entertaining. Those are your top headlines tom. Tom forward here on Bloomberg Television this morning, google really shaking up search today. This is something im looking forward to seeing out on google. They switch to a very mobilecentric view. Ibm of course to wrap up the ramifications of what ibm is doing as they make a titanic shift, a giant shift to a new ibm and trade legislation, part of the theme here certainly as we going to april, may and june. Brendan we have a talking about it all year it is now 483 billion. That is the value of acquisitions announced in the u. S. During the First Quarter of this year alone. A new report finds that 85 of 2500 Corporate Executives surveyed do not expect the announcement to slow down. Tom mcgee joins us now, the head of deloittes m a services. Tom, one way of looking at him in a is the measure of optimism, hope for the future. What is driving this optimism . Mr. Miggy icgee i think fundamental to our driving the stock market, you have a low Interest Rate environment, you have a tremendous amount of capital being ready to be invested, both private equity and dry powder. Olivia it is optimism depending on what is driving it. Are these constructive mergers to grow bigger businesses, or are these ivan Equity Companies that people like to say our top shots . Mr. Mcgee it is across the board. What you see is companies focus upon their core business but the flipside of the coin is some of these noncore assets olivia are they are growth or Financial Engineering . Mr. Mcgee i think the bets are on future growth will most m a transactions are in support of growth ambitions. Brendan a skeptical look at the word growth and there are two kinds, organic growth, we think the economy will grow with it, and then there is we do not see the organic growth happening, so we will buy our way into it. When you look at the First Quarter, what you see . Mr. Mcgee we are still in a challenging growth impairment from an organic perspective, so i do think m a is an opportunity for companies to support the growth objectives. Tom one of the things we are seeing in the chitchat, the alleys, and the bars of data most is a new Strategic Vision. It used to be five years or seven years. From the deloitte view, is the new Strategic Vision three years, or is it even less than that . What is the timeline . Mr. Mcgee you are talking about support of growth . Tom yes does everyone have a threeyear view or a fiveyear view . Mr. Mcgee many people are in an earlier stage. Tom i agree. It is amazing how poster share prices go up on a transaction. Mr. Mcgee i do think it iss reflective to being fundamental to the core of what they want to be going forward, so the vestiges are related to think that will be shed that are not consistent with that view of the court. Olivia to what extent is the Dollar Strength driving the growth . Mr. Mcgee i think there will be a significant increase in overseas transactions. I think that most him an activity is really is according growth, and i think what you will see going into this year with a strong dollar in an increased level tom do you have a plugin number that you know will be taken out on a transaction . D you know any deal with 7 or expenses goes, do you have a working number . Mr. Mcgee i think it depends on the industry, it depends on the nature of the businesses that are coming together. Around the integration, one of the things in the report, that is pretty compelling, is thats one of the concerns company ies have is the challenge of integration, and when you go into a transaction, it is important to have it and come a focused team to support the implementation of the plan some account ability rally targets you expect to achieve, and fundamentally is can indication as to why you are doing the deal. Brendan phraarma, we have been talking by the macroeconomic drivers, but it seems like pharma is undergoing a structural change. Divest themselves of r d and just buy their way into a pipeline. Do you see that its more born of these macroeconomic fundamentals, or do you see this as a change in that industry . Mr. Mcgee i cannot speak to the Pharma Industry specifically because im not a specialist in that, but what you are seeing is m a activity. Pharma is very hot right now. The m a to boom is very broad very deep, all industries are taking place. The high growth in Technology Health care will be big drivers for him in a driver particularly. Olivia the ipo market is not so hot. Number of ipos in the Fourth Quarter is down from the First Quarter of last year. What is the significance of that convergence . Mr. Mcgee i do not know. A lot of times i feel activity is just relative to appetite in the market at a particular point in time, so i would not read too much of the First Quarter results to suggest that is going to portend fullyear activity. Brendan all right, thank you so much for coming in. We will take a look at our agenda right now. My agenda is him as it always is, toms agenda, everybodys agenda. Tom it is greece. We heard that from Francine Lacqua earlier. What i am interested in is haircuts. Is that the first half to what everybody is talking about which is restructuring, i do not know, 2020 . Olivia every morning, we cannot figure out do we leave the show with greece . Tom the spread is wider this morning. Brendan when you talk about restructuring, that is the fight. Do we get a deal, or is restructuring part of the deal . That is the argument we are in right now. Olivia certainly it looks like tsipras is holding out hope. Tom lets see if we cannot widen those spreads. My agenda today is trade. The panel will hold its first vote on a trade promotion authority, so we are about to see the rubber hit the road on this. Different amendments from rob portman to actually prevent currency manipulation. I really think we are about to find out what our values are on trade as we move toward an actual deal in congress, which is in and of itself amazing. Olivia it is interesting to put the tvp and context to the u. S. Response of louisiana the Asian Infrastructure brendan tvpa is trade promotion ability. It is fast tracking. Send it back for a single up or down vote tom so you want to get the tpa inand the tpp. Brendan you want to close tpp. Olivia a lot of tech earnings out, keep and ill for yahoo we will have full coverage of that after the bell today. Why . Because it has seen the most significant downgrade and earnings exultation and since the financial crisis for the First Quarter. Everybody has been revising down their numbers. The ibm numbers actually look pretty good based on the new businesses. David einhorn of greenhorn capital says he thinks that she is really worried about the lack of earnings growth, he thinks it is a sign that stocks are right. Tom mr. Belson is pushing against mr. Einhorn. Olivia really . Of all sectors, Tech Companies get the most of the revenue overseas. Tom lets go to our twitter question and answers. Olivia, you have that . Olivia i do. A great question today what have you learned from jack welch . Here are some of the answers authenticity. Jack will remember names and family details of employees that he has not seen in a year. Tom ok. Do you have that skill . Brendan no. Not in any ways. Bill clinton had that skill. Olivia i have a post it on my computer of brendans childrens names of sagan answered us lesson learned, leadership is about imagination, creativity, and improvisation. I love this quote if you do not have a competitive advantage , do not do not compete. Tom that is a very good quote. We will continue on bloomberg radio, Bloomberg Television, in the loop next. Stay with us. Betty good morning. It is tuesday, april 21. You are in the loop and i am betty liu. We have a great show ahead for you this morning, starting with a market ball. Jeremy siegel joins us on what he makes other recent fed mumblings that might forestall a rate increase this year. If youre in the markets for a 20 million condo your got to know this man. Gary barnett of nextel developments will talk with us extell developments will talk with us. Not couch potatoes but crib potatoes. The new breed of Television Viewers and your babies. Angie hayward on this new set of viewers. That is going to be a fun interview. Heres a look at top stories