Of Asset Management. I spoke to the head of the behavioral economists. It has been exciting to you. People will no longer be racing to be firsttime buyers anymore. We know this has been going on for many years now. Why do people Pay Attention to this . Biggestave some of the Financial Gurus in the market here speaking. People have been up in the markets. Longterm equity guys are struggling. 19th annual. Is dollarsay thousands of to get an understanding of what the year will apply the head. Earlier. To my he is saying brazil is so bad, it is good. He has an idea to go along with brazil as by the inflation. Lenovo is saying things look bad and it is time to buy. Standby. We will be back in just a moment. A lot of ideas were introduced in the conference. Julie hyman joins me now with a look back at what we can call the greatest hits. There are calls made every year that are successful or not so successful. But some really stand out as the ones that made a lot of headlines and were striking because they really went against the tide. One of them was David Einhorn back against the lehman brothers. As was at a time where he came out and crystallized it. He said government regulators should elationward a recap hopefully before federal taxpayer assistance is required. That proved to be a good call at the time. He also made interesting calls in 2011. He said Steve Ballmer should go as ceo. That cannot happen right then but it ended up happening. In 2012, after he asked a question on a Conference Call and did not mention it at the conference, it has fallen and rebounded, in that case, it was by virtue of the fact of something that was not said instead of something that was no it was. At a special conference presentation, not part of the made presentation but rather in december of 2012, we talked about general growth properties, which turned out to be very profitable. And then a sampling of other calls we got, one of the protest in 2011, justs said by the dollar and in 2012 semester, we had kyle talk about japan becoming completely insolvent. A lot of dramatic calls have come out of the conference. Christ what about last year . How have they done so far . You have winners and losers. You do tend to see, particularly among the bigger games, movement in the stock on the day of the conference. Whether the movements are sustained throughout the deep throughout the year is another thing. Jonathan jacobson recommended a short of Digital Realty trust. Jim chanos said he would short see technology. Jeff gordon good lock, who we just mentioned, he recommend shorting chipotle. Hat stock is up it has been a mixed picture. Remember people want to get the wisdom from these various managers with driven track records. These guys are talking their book and making recommendations. We do not know exactly when they are doing the buying and selling. They probably know there will be a little reaction. We are hearing it should just be a few minutes before Larry Robinson speaks at the investment conference. Ets bring back my colleague stephanie, you noted you spoke earlier to joel at Asset Management and he told you he does not think most headlines justify their fees to be in with. Is that a view shared by most managers . It is. He is a mutual fund guide. When the Hedge Fund Managers are asking for two and 20 and are not outperforming the market, how they justified . The more smart investors we speak to, they talk about the importance of longterm investing. We heard charlie monger and Warren Buffett criticize activist investment, and that is a problem hedge funds face. So many are forced to give investors quarterly and monthly and even daily liquidity. If you offer investors back kind of liquidity and make longterm investment the same time, they do not lineup. As was said earlier, they will not justify getting the egregious fees because they will not perform that well. You mentioned buffett among your criticism this weekend. T was the reaction . Definitely resonated. Tons of people are talking about it because what is activism . Download is here and not speaking. He has been all over the news this morning. 0s have now extended harry wilson, those are the other people he propose. The talk of activist investors coming to shake things up, dan now has a seat on the board. Bill ackerman, who i will speak with later, he is criticized for being an activist. You look at his holdings, they are very long. Some of these last him five or six years. There is much criticism around shortterm investment. You have to be in it for the long term to really win. He said to look at a company like apple. Many people were looking at it in the 300s of david dyer the dollar price was too high. It has volatility but as a longterm play, it starts to make sense. You want to be longterm. We would be remiss if we also did not mention there was a link between pediatric cancer research. Tell us about that. There is. All of the proceeds from the conference go from pediatric cancer research. People are here spending the money because they want to get the big ideas. Hedge Fund Managers are putting them out specifically to raise funds. He made his way from california and will be on bloomberg tv smart money making a very , shortinge statement homeownership saying basically people should be short and we are at it im a time right now and home owner strength is going down, at a time when real estate prices are going up and yes, it may be the American Dream to own a home, but no longer are firsttime buyers saying it is part of the american way because theyre not good young people are living at home or. Youth unemployment is still in that shape your in the u. S. , especially internationally. Thethe the eggs hsp a trade idea. Quest joining us, thank you. Center. W, lincoln i wanted a picture that summarized april and march for the Hedge Fund Community and i we will skip it. Disclaimers. Thisve the conference at time because it is a good time to reflect on what we thought would happen at the beginning of the year and have conditions change. We think the playbook for 2014 in 2015 is very similar to the playbook that worked in 2015. We will talk about different. Deas take a look at the picture. We go through Interest Rate and more timescles, but, than not, as the calendar turns, the environment does not. Resist the temptation to think sometime somehow 2014 is different just because the calendar changed. We think the conditions are favorable for longterm investment. We presented a conference two years ago and at that time, we were entering the Systemic Risk phase. Gonenly have the u. S. Through the mortgage crisis, but europe was going through the confidence crisis. It was really in the middle of 2012, with the passage of the omt, that germany functionally guarantee the system in europe and investors could now stop asking themselves, what if the system crashes, and could start asking themselves, which stocks do we want to invest in. Correlations fell, valuations rose. The single biggest difference people misunderstand is while riskfree Interest Rates have risen, look at high yield bonds. Here are at 5. 6 why do you see increased shareholder engagement activism, because that is where the money is. There are four drivers of convergence in the market. Cheap valuations. The market is more expensive than it was during the time we last talked to you, but it actually looks reasonably attractive and we and other presenters here are able to aggregate portfolios which are cheap to that. We have seen a lot of capital deployment and excess cash remains exceedingly high. We talked about how low are owing costs are. A news why youre seeing level of shareholder engagement every week and every month. Last six or seven quarters, these forces, systemic let stocks town, drift up. Think you will now have to find situations that will lift up and it will be the actions of management, board, and shareholders, that will determine whether investments have an ordinary return were extraordinary return. The concept were focused on is fictional. Convertible equity. We know what convertible bond is. Makes an adoring investment exciting. Maker a convertible equity is investment in a secular Growth Business that also carries with it the extra option ali to add returns based on a management change, m a, and other value enhancing events. That is what we look for. Another thing we are looking for is, when everything is rising up, do not mind being popular. As we get into a lift up situation, we will probably have to be back to being more contrary and. We have taken two industries that, if you walk down main street, you would think there are fairly hated industries. Of gm owes, genetically modified seeds, and yet one mans trash is another mans treasure. We see significant value. Lets not let facts get in the way of a good argument. If we we ryan the clock a few years ago, the debate about the Affordable Care act really centered on the hmos. Who cares if they employ a half Million People the u. S. They must all be bad actors. It is not true. If you wanted to reduce health care spending, should you go after the slice or the pie. If you watch what the government did rather than what they said, they embraced managed care as a tool to bring the cost down. We see that in the form of increased outsourcing through managed medicaid. We see an increased panic penetration in Medicare Advantage. We are very familiar with the ination of public exchanges order to insure the uninsured. Despite the fact hmos have weathered the storms and it had a brighter outlook, theyre the only sector and health care that have not recovered. There are a present she brought a relevant relative basis. On an absolute basis, the entire group trades for 10. 6 times, 2006 earnings. Thinkocks we like best we our trading about eight times the oneyear forward in investment. What we see that we like hmos is in the the pain Rearview Mirror and the sunny days are out the front window. The pain is welldocumented. It is known as profit margin cap. The government told hmos they can only earn a certain amount. Fees and taxes imposed on the we that industry, and then have seen employment headwinds, industry headwinds, pressure the earnings of hmos over a fiveyear time. Eitherthese headwinds turned neutral or turned to terrell wins in the next five years. Desk tailwinds in the next five years. A lower margin the past, they are much higher growing and moved from nine percent to 22 of portfolios on average. You have a Better Business mix today that has increased medicaid penetration not only this year, but in future years and will benefit as the economy recovers. The final effect is a private exchange everyone is so excited about. Most people will move from a commercial plan. It is really just a low margin administrative service. When they moved to a private exchange, they made four to five times as much money as an at risk patient. This dumping effect is very margin and revenue positive. I will move to the next. We have seen a new wave of management. Four of the five Major Players have been at the top of the cfo level. United health care has long been viewed as the Gold Standard in management. The other ones have revitalized their management teams, focused on Regulatory Compliance but it was carries with it a focus on valuation creation. Humana is primarily what is called in Medicare Advantage company. If you are 65 or older, you can take basic medicare. From private company, you can take medicaid advantage and it dental and hearing benefit. It is an enhanced product. More seniors like that. The federal government does not want to pay to much. We will take a look at the trends underneath the business. There is an alarming outbreak of old people in the united states. I am not sure if youve noticed. Three percent more bad grandpas running around in an environment where there is only 70 basis points of population growth. Investould you rather when there is better value growth. Industry is not only growing population but beneficial it is a doubledigit topline for humana. Seniors like Medicare Advantage. What happens with midterm elections . Four years ago, they said ma would decline in membership. Everybody likes ma. Looking at ally top line growth at the 1015 range and we get positive mix match because it grows in the bigger percentage it is. That is the based business part of humana, a reason to be excited. Lets talk about the options attached. While humana has been able to withstand price decreases, it used to be the Medicare Advantage paid 100 . 14 on the dollar. The Government Law down the reimbursement and will be at parity in 2015. In 2016 and beyond, we have modest pricing growth. When we look at the humana,ility of province have been flat for cluster years, but profits are likely to accelerate before for addons and they are meaningful. Hasst every significant hmo joint venture with a large scale pharmaceutical venture in order to achieve scale and lower cost. Humana is likely to do that in the next one or two years. Analytically, it would make sense for them to do that. We believe that could be 1015 of earnings per share, another potential call option and uplift. Humana is the most wellcapitalized, with a 22 the 22 ratio. Everybody else has a little bit more debt that is cheap and humana can take on a little more debt that is cheap and buy another Medicare Advantage plan and another commercial hmo, or could buy their own shares trading at a discount and all those things will be meaningfully accrued to value. Growth, theseto exchanges could add up to 40 per share. The management of medicare and , wecaid dual eligibles believe would also add 15 per share to earnings. 10 and 2 in 2016. They can earn as much as 13 per share. Study. Case very similar approach. Their businesses more about traditional managed care business. Forof the options we see wellpoint, it was one of the moving anders of joint venture with somebody else. They sold their business for 4. 7 billion. It is so nice they could sell it twice. Funds always had a shortterm orientation, five years from now, we will we know we can get the business back here will have a Business Value or a new contract at a lower price or another joint venture relationship. That as two dollars per share in out your earnings. Future, it is worth about 15 today. Warren buffett says we should attention because goodwill does not advertise and we agree. We would like to have cash earnings, which are higher. Why would we like to see them be higher . Because they have a complicit off ounce set asset. When we add up the Interest Rate, of medicaid expansion, we. Et a stats return you can get 80 or 90 . The final and potentially most controversial recommendation we have is the shares in monsanto. All utopian world we would buy organic food and pay 40 higher price because that is what it takes to have organic food. In the real world, we simply cannot solve world hunger on an organic basis. You have that choice is to get to two or three percent. We can increase the farmland but that is not increasing. You can use more Capital Equipment to far more efficiently, chemicals or pesticides, or you could modify the seeds to get more yields. Options that are not utopian, we think the best rgm ohs. We think there are a bunch of leading scientific studies that adjust the safety of gm ohs in a manner we could not do. We can do economics. The farmer makes a 260 irr because when they buy them on a similar gm oh seed, they pay more but they get more crops they can sell at market at higher cross. The world and the wins because he gets more food, the farmer wins because they get more money. 80 of the value goes to farmers and 20 profit is something near and dear to hedge funds. Lets look at the numbers. It may look optimally like a more expensive investment, 19 times this year and 15 times next year, when we start to decompose it, we realize how cheap it is. I wish all of our businesses were this high quality, that they had on one side of the business a 38 share and on the other side a 39 share. Portfolio, every seed planted and 90 pointed in u. S. Coin, there are the market here have, createsthey a waterfall of about seven percent pricing in topline growth. Growthtes a base earning of 58 to grow on. We are more excited on the mediumterm because they have products on the pipeline that do not contribute today. These products are likely to come to market. We think it will add between 1. 50 to two dollars and 50 serifs cents per share. It is going better than expected and we think that whereas 67 of growth. There are casas fax cost effects that will bring growth to 25 . Could we go back one, please . The most important one slide, please. Perfect. Now we are there. Forward to the back. There we go. Our most significant suggestion is that they recognize their own business quality and reflect that in how they invest capital in cash. If you had a near monopoly business and trade and a strong would this nots, be a business that generates cash for year, that is appropriate to leverage where they can borrow a two percent tax. We think they should be leveraged, especially chemicals and strong Investment Grade companies. I would take their mold full down to 12 times. Multiple and they would go faster. When we add up in stacks all of these traits together, though growth goes to 20 over the mediumterm and mid30s earnings per share growth. The biggest pushback we get is, are you asking them to do something unnatural. If we look at the return that is there, it is an ordinary investment. Celebrants. E are it is an extraordinary investment. Monsanto has an ability to do precision farming and according to their own numbers, the business that earns nothing today will generate enough revenues on a six dollar earnings base. That is more Venture Capital than we are used to but we will take that for free. This is not a debate about whether you want to grow back the Growth Business. They can have a strong business and invest in r d. They can leverage the leverage the business. Grade,emain investment and pursue precision precision farming. Anyone of the Investment Bankers in this room will take it public. The final thing we want to talk about is not just managed care. Everybody in this room would deeply appreciate your support of the foundation, for nearly two decades, Team Managers has been led was cared about raising money awareness for two decades. It is not the name on the back of the jersey but the one on the front that matters a lot more. Inwould like you to join me applauding the foundation. Thank you very much. [applause] watching larryn robbins, the founder and ceo of Glenview Capital management speaking at the investment conference. Lets bring back Stephanie Ruhle. She is at the conference. Stephanie, he covered a lot of ground. He began talking about managed care and said they are not all bad actors and asked if you should go after the slice or the pie. You look and listen to what he said, he is so positive on this growth. And new blood. He believes the pain they have experienced is in the Rearview Mirror. He said there are more old people in country than ever. This is a medicare play. They need help and these countries are there to administrative. A billiondollar investment in monsanto. Think about it. We all love to talk about the eating,ce of organic but he said eating organic food will not solve the world hunger problem. One of the reasons he is so positive on mans monsanto. Something else he said, he said headwinds either turn neutral or they turn to tailwinds. What is the forecast tell you . The one thing you have to think about, was one of the bestperforming sectors last year. Humana up 40 to 50 in the last months. Be sitting down with him in a few minutes, how much longer . One of the criticisms you hear is how long these managers got into the traits. Lets say larry has been aided for the past eight months. If were being told today, this is the time to get into the trade, we need to find out how far they think theyre going to get. That is the question to ask. He also also mentioned hmos have weathered the storm. But he said they are the only sector of health care that has not recovered. That is why he thinks there is a good opportunity. He thinks there has been a lag and they are going to recover, especially as more more people are getting old. He hmos, now that theyre getting their houses in order, they will run from here. You get a sense from a some of the folks, and he focused a lot on health care, that maybe there might be a different perception and a different take on the impact of the Affordable Care act and what that is doing to the market . I will be asking that. As weekend, president barack obama was speaking saying, we are all criticizing the rollout of healthcare. Gov, but 8 Million People have signed up. They exceeded their initial goal. We all say it was a failure, but it is not a failure if you think about the limitation. Have signedpeople up and it is rolling out. Lets the the companies who will benefit from it. You have been there for most of the day. Any surprises from many of the things youve heard so far . A surprises people are talking about the importance of longterm investing. In thing i noticed when larry was speaking, he said hedge funds, for the most part, are shortterm oriented. They need to get these great trades on now. It has been a rough start to the year. We are almost approaching the six month mark peered if they have shortterm horizons at a time when the marquis has been this choppy, how will they perform from here to the end of the year . Room that has sold out with 3000 people watching, bloggers all over, bloggers could not even keep up with larry. Theyre desperate for ideas. What does that say about the market when everybody is looking to others to give the good stuff. He gave them a lot about. Stephanie ruhle. Thank you. We will be back with stephanie later in the broadcast. She will have an exclusive oneonone interview with Larry Robbins coming up here on bloomberg television. Welcome back to the second halfhour aaron i am Mark Crumpton in new york. Thank you for staying with us. Lets check the top stories were following with you at this hour. Ukraines military appears to be stepping up its efforts to bring eastern and southern ukraine back under government control. Ukrainian troops today have been finding gunbattles with the militia occupying an eastern city. Four officers have been killed and 30 others wounded in the finding. The government has sent in an elite national guardlets unit o establish control in oh deaths a. New ceos looking for a chief executive. Hoffer resigned effective immediately. He held himself personally accountable for the data breach that may have affected 7 million customers. The target chief Financial Officer will serve as interim ceo. Firstquarter earnings beat analyst estimates as it cuts costs to falling sales. They also concern all components of the 2030 and 2000 or Team Financial guidance. Pfizer is in the process of pursuing a bit through astrazeneca. That is a look at the top stories at this hour. For the first time, the spread a polio, has been declared Global Health emergency. Yang yang is in washington for more on the alarming comeback. How did this happen. Six months ago, polio was isolated to pakistan and nigeria. Since then, the World Health Organization reported they are seeing a global disturbance as civil war and unrest disrupted vaccination campaigns. 10 countries are infected with the virus. One of the countries posing the greatest risk of exporting the disease to other countries. There has been a seven 74 cases including in pakistan. This was supposed to be polios low season, raising concerns cases could spike in the coming months. The World Health Organization in a Statement Today declared a Global Health emergency and that the International Spread of polio today in 2014 cost is an extraordinary event and, if unchecked, the situation could result in a failure to eradicate globally one of the worlds most serious vaccine preventable diseases. This has been a decadelong international battle. And a personalized priority for bill gates. The program is backed by the Gates Foundation and set a goal of complete eradication by 2018 and march no word yet on how the current resurgence might that the date back. Thank you. We now go back live to the conference underway right now in lincoln center. My colleague, Stephanie Ruhle is there with Larry Robbins. Thank you. Left the stage. People are saying, his stuff is so good, we cannot even follow it. What is your real thesis . Class i apologize i talk too fast. None of my public speaking skills came through but we had a lot to say. The real theme is that while stocks drifted up in the last 18 months thomas the 2014 is really a year where management will have to proactively drive now you through value enhancing measures. Whether that is Capital Acquisition and Capital Allocation comes putting businesses or other valuations of shareholder enhancements, that will separate the ordinary from the story mary returns. And the business you have. Lets talk hmos. Was west performing last year. You had an incredible year last year. How far will the hmos run . Sure. The hmo stocks have risen significantly in the past 12 months, but if you take a look at the last five or six years, as we pointed out in presentation, evaluation of hmos are down 18 . It is hard to find anything whether in the s p 500, health care in general, or any other sector. Was that meaningfully cheaper question mark cheaper . Thee talked about in presentation, not only do we see a fundamentally healthy outlook for hmos in 2015 and beyond, but the management at their disposal have a lot on how to and so, youital need to look at the Investment Opportunity today and not necessarily get caught up in the itt we could have bought cheaper years ago. We would like to comment about how the policy is doing, not whether it is bad or good policy. The overriding objective of obamacare was to provide insurance to the uninsured,articularly those who need it not the held a 20yearold who felt invincible. Not just old people, but people who live in the poverty line who are struggling to make ends meet, as well as people with preexisting conditions and other reasons why they could not access the health care system. We know from a gallup poll released is at approximately six months ago, 17 of the country was uninsured. We know the uninsured are getting insurance and we know that of the new exchange themmers, about half of never had insurance before. It is working, from the of covering the uninsured. It should work. If we had a program to enhance housing, i am sure we would enhance housing as well. Class youre talking to people who live below the poverty line. That takes me to a time when so many people are criticizing jim as. The importance of eating organic. Youre saying, lets get real. I am not here as a nutritionist. Im here as an aid as an investor. We know whether were are talking about medicine or the like, we needes objectivessh certain and food availability, and food affordability. There is no way to do that, without using jim os to enhance the trades within the basic seed so they grow more powerful and more plentiful. In a utopian world we would all be able to shop with hollywood stars and pay whatever we wanted in whole foods. We need to increase the food supply area jim osama q2 that. It is a good deal for farmers to do that and a good deal for the world. When is the trade going to play out. You went public in november of 2013. Class the funny thing about our is this is we cannot control what the rest of the market does. We he an opportunity the marketplace gives us and we will position Capital Program to the opportunity set very we engage management in a discussion on how they could improve value. One of the things that attracted us was their management were identified they were building up too much cash on the bounce sheet and started to buyback cash at a more accelerated rate. They had already set forth a a review. Theyre asking all the right questions. We will share our views on the debate. When the rest of the market realizes the same value we see, that is hard for us to understand. While you wait, the business is growing value under you. They will be reimbursing them. Ideaese ideas, give us an of when you put the trades on. There is often criticisms that people are looking to get out when they criticize trade. Class i would start off by challenging the word, trade. Earlier in the year, our average holding time was 4. 2 years. They are investments rather than trades. It was increase in the fourth envisioned that would be a longterm investment. 2012,an accumulating in more than half of their holdings. Totried at these conferences prevent death present the ideas. It may not be the highest rate we have an arc for florio, but confidence over the longterm is that all the investors in the room have the potential to make money beside us. Here, we are getting some of the best ideas from the best Hedge Fund Managers out there. Larry robbins was named the number one Hedge Fund Manager by the Bloomberg Markets last year. He is bringing his ideas, giving the money to the cancer research. A special day here. Thank you very much. It is time for todays latin america report. If the if youre like many mexicans and americans, you might shake up margaritas today for cinco de mayo. The day of the battle of playbook. You might have to do without the one key ingredient, limes. Why we may have to substitute our limes for lemons. Say it is not so. A heresy. So terrible. Margaritas are a huge seller in america. We spent about 3 billion a year on the drink. The problem is limes are just so expensive. 81 since last year. That is more than double what it was in midjanuary. They are even more expensive than the chela the tequila. Basicallyp 56 cents, announced. For the journey you will have tonight, the line will be one of the biggest input cost into it. Frome u. S. Imports most mexico. Growers have been accused of price fixing. The Mexican Consumer Protection Agency filed a complaint against growers in the state over pricefixing. Back and come with a 10 year prison sentence. Here is what winds up happening. You have a huge valley doing really well. The competing region got wiped out by crop disease. Essence, control of their amazing. That has been limited to three days a week, kind of squeezing that supply. This should actually recover the disease regions should recover. In february. There is trickledown hope. I do not think a lot of inple let lime lacking stand the way today. That is our latin america report for this monday. The release of the amazing spiderman two kicked up kicked off the debut this weekend. Well find out if that debut is a success and find out what else is in store when we continue in a moment. Twohe amazing spiderman aired premiere this weekend. I am joined now from the los angeles bureau. Welcome back there it always good to have you on. Great to be here. Thank you. This past weekend, it was one of the biggest sports weekends in u. S. We had the kentucky derby. There was a championship fight in vegas with floyd mayweather. How was spiderman able to hold its own with fierce competition . A great question. We normally think of home video as being competition but there are a lot of other things out there that offer competition. The reason spiderman held its own is because people love going summer. Ovies in the when we have a film like captain america, the winter soldier, which opened a month ago, leading up to this, it shows you somethings are really audiences absolutely love. To be a month apart and still have these huge numbers being generated by these films and our track data shows the International Component is used for these films. Captain america was double the Domestic Box Office in the international marketplace. For spiderman, the film opened in north america week and a half before it opened internationally is total combined to date 370 million for spiderman. It is not just about the mystic, but worldwide as well. Lets continue. Why are overseas audiences so enamored with spiderman . It is this iconic character. They love captain america and they love spiderman. It is because the cinematic treatment of superheroes lends itself to crossing all borders. When you look at the films on the big screen, theyre bigger charactersthe translate in all languages and this is music to the ears of hollywood who does not just see this as a north American Business in the u. S. , but a global is this. Our numbers reflect that in a major way. There have been five spiderman movies in the past 14 years. That averages to one new movie every three years. So many . The first spiderman movie back in 2002 was the first movie to open with over 100 million in north america. That was a 12 years ago. That was the Tobey Maguire spiderman. Those movies combined made billions of dollars worldwide. Fastforward to the amazing spiderman now the amazing spiderman two and you have a franchise with a legacy that is box officen terms of potential and the brand they keep building. They will spin off characters from spiderman and it will be the villains spun off in their own franchises and their own movies. That is how you keep the ecosystem of superheroes alive. It speaks to a bigger question about how many sequels there are. 12 the summer. At the top of the box office virtually every year for the past 10 years or so. People like like known brands and known commodities. Isthe box office season, it happening now earlier than it used to. It used to be around memorial day but not anymore. How does moving the goalposts impact the distributor bottom line . The longer you could make that summertime, the more box thate you could get out of season. It is a 52 a year when business with the movies like the hunger ,ames as a march release huge cap america posing 98,000 early weekend. I do not think we will quite get to where the summer starts in january, even though hollywood would humbly love that. Inis still the first weekend may. Youre right that it used to be memorial weekend through labor day carried now through labor day, it accounts for 40 of the total year box office. That is why hollywood thats big on that summer movie season. About 20 seconds. The competent fission will get stiffer. Carried now through laborscreen day, it accounts for 40 of the total year box office. That is why hollywood thats in two least. I expect big things. Think godzilla will be a monster. Unintended. Two leaks from now until then, two leaks of breathing room between spiderman and godzilla, and a couple of weeks later, you of xmen, days of future past, which will also be a big blockbuster. You have neighbors, a comedy of between eric. There is an ebon flow of different themes and genres and stars. There is a lot more to come for the rest of the summer. Qwest all right. We will check back with paul. Always a pleasure to have you. Thank you for your time. Stay with us. Of market moversck after the break. Before we leave you, breaking news. Motors says jim federico has decided to retire and he was one of the engineers involved in the controversy involving the gm recall. More details coming up. Get the latest headlines on the top of the hour streaming on your tablet and bloomberg. Com. I am Mark Crumpton in new york. On the markets is next. I will see you tomorrow. It is 56 past the hour. I am julie hyman. Lets look at where stocks are trading right now. Still very little change as investors weigh positive Economic Data out of the u. S. If you take a look at what is going on with treasuries, we are seeing a similar lack of movement in the bond market. Really not a big change. A little bit more slowing and a little bit more buying on the shorter end. Ofre is a growing shortage longterm bonds. What does this mean for you . Lisa covers the debt markets for us and joins me now. We have been talking about this unpredicted rally that keeps on going in the bond market. Give us the short and sweet of long bond. Ind the qwest there is a shortage of long bond. Coming froms demand the fed and a lot of demand coming from pension funds. You have 16 trillion of pension fund money. To getved into stocks money in their belts and they could beat all of their obligations. The stock market gave a time, and now they are being pushed to take less risk and they are cycling money back into bonds. At a time when Interest Rates are supposed to be going up, at least, if you look at the twoyear were threeyear time horizon. Had the year bonds have best rallies so far this year on record going back to 1980 eight and it is generated by an incredible flood of cash. The question is, can this continue . Is innovation rises at all, you have to keep some kind of real rate of return. 30 year bonds are raising 3. 4 . Not a lot. The gap between 30 year bonds and fiveyear bonds have dropped to the lowest since september 2009. People are taking on more risk than it might seem. There is so much money going back in and you have foreign buyers accelerating the purchases of treasuries. Here we are. Qwest what are the implications for where yields will go in the next 612 months . With such a flood of money from pension funds, it suggests the pressure on longerterm bonds really is for yields to go lower and stay where they are. 300 billionabout of by power over the next two years, that is half of the demand. It fits in that category. Of pressure in yields. Qwest all right. The ever flotation on bond market. Thank you. Talk to us as usual about what is going on with bonds. Street smart is next. All right, out we are where will be final hour of trading lead us. There you go. Street smart starts now. Welcome, everyone, to the most important hour of the session. Taking up to the close. Countdown to alibabas expected ipo
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