one analyst cut 3000 jobs. officials scrambling to come up with more money. government workers must be paid this week. still no end in site in the country's debt crisis. more than $1.5 billion. officials hope to cover that with other local government. and he talks on friday basically yields at nothing. officials say few survivors of the hurricane earthquake will be found. two days after the disaster, the death toll approaching 3700. those who are not among the 30,000 injured, staying alive millions are homeless. severe sort -- shortages of food and shelter and medicine reported in the capital. things are even worse in the countryside. >> he came from a village where their 1000 and 100 households. when the earth quake struck, it was like a volcanic explosion with rocks going everywhere. 90% of the houses were completely decimated. betty: nearly 180 mountain climbers are now safe. some 700 others are trapped. hundreds were on the mound when the plane hit in 19 were killed. among three americans killed was a google executive. rebuilding could cost $5 very iphones now selling faster in china than the u.s.. the large screens on apple's new models are popular in asia. today, we will be all over the apple results. hillary clinton's's presidential campaign is just two weeks old but the clintons are already backtracking. the clinton foundation, mistakes were made on tax reform. mistakenly defined with other locations. the foundation should be investigated. peter says some nations that made donations that favorable treatment from the u.s. while mrs. clinton was secretary. >> if you ever have an issue of a flow of funds to political candidates, whether that is to private foundations or their spouse, is there evidence of a pattern of favorable decisions be made for those individuals? the point we made in the book is that there is a troubling pattern with dozens of that occurring. betty: those are your top headlines. back to one of the top corporate stories, shares of deutsche bank dropping. plan for a massive overhaul. we will show you that in a moment. thousands of job losses. the ceo has been speaking with hans nichols and just moments ago, they wrapped up their interview. hans: we are completely fine. as we demonstrated in the first quarter, this morning we reported a very solid quarter with strong operating. >> no need because of litigation's challenges. anshu: no need. betty: hans nichols is joining me fresh off of that conversation. hans: there have been a lot of talk, a lot of hype, about a very drastic overhaul. deutsche bank decided to cut off survey and they're are keeping retail operations of storage tank. 730 outlets will be cut down to 500 30. there may still be concerned that litigation cost. when i asked about what is charged this is his response. >> very painful. hans: they do not necessarily know what is in the pipeline and with the next charges will be. he said he is utterly confident they have made legal provisions for most indeed any, contingencies. he said he had a lot of contingencies set aside for future litigation charges. now they want to execute this strategy. and then refocusing the investment bank, tweaking it ever so slightly and getting involved in private wealth management to a greater degree. a lot of tanks are talking about that. they see a lot of growth there. betty: let's bring it back to the u.s. markets and their business in the u.s. and how they are competing with other american banks. they are becoming more american with the new leverage ratios? hans: if you think 5% leverage ratio will be the new global standard, it is not now. because the market is heading in that direction, it may demand a 5% leverage ratio for all the banks. in some ways, he is making the bank abide because he wants to be a global bank and in some ways he thinks that will position them a little better to be truly a global bank. they have not announced yet whether they would abide to this higher -- betty: thank you. also happening, old slag and chairman and former ceo did you see this headline over the weekend? a more than two decade-long reign. that marks the climax of the feud. here's why we care about this. it could also give volkswagen the boost it needs to start making cars here in america that people want to buy where -- to buy. how this whole shakeup and drama in the sea suite and boardroom and volkswagen, how it affected -- how it affected their business in the u.s. >> the thing is, in his two decades controlling the company, created a demand structure were basic we all the decisions ran through him. that health as he grew into this behemoth, but it was for them in the u.s. market because it really slow down the whole process. invested all this money into the it did not help them. sales fell in the u.s. last year. analysts are saying his departure may actually help them to start making cars americans want to buy. betty: they missed out on the suv trend. >> they did. executives in the u.s. publicly telling others we need more suv's. they were not getting the response they wanted. they need to go to a bit more regional command structure. they would help speed that up. betty: you might now look at volkswagen because it seems like investors, judging by the way the stock markets behave, are happy with the change. >> another reason they're happy with it is because they built this global empire and did through m&a and that was very expensive there is so what analysts are saying is the fact he has now departed means they will probably stop the spending spree because -- and that helps investors because they hope some of the profits that that will flow a little bit more to the average shareholder. betty: thank you so much on volkswagen and changes there. you might see more of those cars on the road. on the corporate front in the u.s. time warner cable looking to another. reached out to time warner cable to begin friendly talks on acquisition after comcast withdrew their bid. remember this is not the first try. time warner cable previously rejected the offer by charter and did not want it and went ahead and surprised charter vacations by going with comcast. what is different? alex sherman is joining me this morning. everyone said ok, charter will have another go and it looks like they are. >> they have been public in saying they were interested in doing so. maybe the timing because clearly they were chomping at the bit to get in here. what we learned on friday is we have already talks at the advisor level. no conversations yet at the executive level. to question people are talking last year about how there is a frayed relationship to liberty. the ceo, the chairman, i think we are seen as a bit too aggressive may be leading the charge and sort of denigrating time warner cable somewhat unfairly and may be fairly saying their operations are poor, the management structure is poor. it did not go well in the hostile takeover bid. this time around, we may see charter management, their ceo, their cfo maybe keep greg on the side or the relationship is better than liberty and time warner cable from my understanding. that may be different this time around. betty: it was pretty hot so last year. alex sherman, great to see you. much more is ahead. president obama making his annual performance, leaving no one safe from his standup routine. president obama: and bernie sanders might run. i like bernie. apparently, some folks really want to see a pot smoking socialist in the white house. [laughter] we could get a third obama term after all. [applause] ♪ betty: japan plus is a sovereign credit rating is taking a hit. the stable outlook, citing a lack -- by the government. sales tax increase. raising from 10% to eight. into recession again. -- pushed japan into recession again. considering a spinoff of as much as $30 billion. late last week, hsbc said it would consider moving due to a bank levy that would cause more than $1 billion last year. two big restructuring in europe. and peyton manning doing a celebratory end zone dance. the denver broncos quarterback donated $3 million to the university of tennessee. the schools has the money will benefit the football program. those are your top stories this morning. a big weekend in politics here in the u.s. including for those in washington attending a white house course on and dinner. president barack obama took aim at the emerging 2016 presidential field and joked about his own waning time in office. president obama: my advisers asked me, mr. president, do you have a bucket list. i said well, i have something that rhymes with bucket list. [laughter] [applause] betty: i love that. he always knows how to deliver a line. mark was in attendance. i know you worked the red carpet. you are instagram and tweeting up a storm. mark: the president has excellent timing in comedy. there is still a lot of goodwill toward the president a lot of business elites there and political elites. in that room, it is probably the warmest treatment he gets although tonight, some have criticized being overly cozy. it is good for the country because it brings together people who can talk and relaxed. an elite club aspect to it but it is just good because there are so many occasions when democrats and republicans can talk to the table at dinner. the chairman of the republican party, they can get along just fine. >> without revealing too much, because i know you talked to a lot of insiders, what were side conversations about? mark: a lot of talk about who the republicans will eventually settle on and talk about hillary clinton and whether it remains the biggest opponent she has is herself her e-mails. betty: a book will be coming out in just a few days and made the rounds and he talked about launching an investigation into exactly how the clinton foundation accounts for its cash and donation. i want to play part of that conversation yesterday. >> most people who engage in criminal trading do not send an e-mail -- they look at a pattern of stock trades. they do a series of well-timed trades. that warrants investigation. i think the same thing applies here. >> he called this insider trading. is it really? mark: people are three around a lot of stuff. your grin -- newt gingrich says he should be indicted. clinton's's opponents make a political mistake by going too far. on the negative side, it does make too many assumptions yet to be proven. he also says, which is accurate he does not have subpoena power. he tries to piece things together. what the true facts are that are only obtainable, with much cooperation from hillary and her team. >> they admitted they made some mistakes, but as you say, it remains to be seen whether that will put it to rest. there will be a lunch and i will actually be there with carly here in new york speaking with women entrepreneurs, talking about supporting women around the world in developing countries. what do we really want to hear from carly? mark: a field of 20 men and 20 -- and one woman. she would be part of this discussion coming forward in the debates. not drawing a lot of popular support. at the same time, in these multicandidate events, she continues to impress people. she has shown a lot of political skill. klassen she is likely to announce next monday. mark, thank you so much. you do not look hung over at all. you look great. mark: nothing 10 at phil cannot cure. betty: be sure to tune in wednesday because we will have the author himself here, right here on in the loop. he may be no -- known for making young chefs cry in the kitchen but he is actually quite charming. my interview with gordon ramsay to come. ♪ ke the founder of the billion-dollar investment firm who says he is optimistic on the chinese economy in the long term. he made the comment interview on cnn on sunday. >> a lot of potential. stuck with state owned enterprises as they innovate. i think they have a lot of potential. betty: optimistic on productivity even as the situation remained a tailwind. bloomberg television is on the markets. about an hour away from the opening bell. scarlet has much more at the opening news desk. scarlet: when you look at oil it is holding near its highest level in four months jumping 6% in april. joining me now with his view is the senior market strategist at futures. it fell 3/10 of 1% last week. was that resistance to recovering prices? >> we have got crude oil -- if you look back at the u.s. here mounting expectations shale production peaked. we have seen a pullback in the months. down 31 last week to 703. at its lowest level since 2010. we have seen a decline. i am bullish. some larger bills in the stocks but a pullback to 56 may warned investors putting a stop on the level spared a push back up through 60. betty: it has been stuck in this range and has not been able to top 68. why in the last few weeks? collected is a push and pull. a lot of people out there are still bearish. the u.s. is still producing highest level since 1980. we could see a lot of inventories. there is a lot of talk about running out of room. inventories are quite high but we have got to make up lost supply on gasoline. refineries will need to replenish that. they will use that crude oil and that is where we see the push through. betty: a great overview of push and pull factors here. oil companies will be reporting earlier -- like chevron parents any plans and the impact that might have on prices? >> they are still tightening up the ship. you see a lot of contraction. focusing a little more on what is most important, producing the crude oil and the highest levels at the lowest costs. going forward, you will see the dividends start to increase. you will see traders come back in and going along with some of those stocks. betty: of all the indicators that could be used, how high does the strong dollar rank? peter: i think crude oil will push up to about $65 by the end of the year. you look at this consolidation pattern, we cannot to a 59 level and we back off and you will see a lot get hit, and that is where the momentum carries forward. betty: what is your confidence shale production has peaked and could level up and then decline in the coming months? what do you need to hear to convince yourself of that? peter: they will reiterate those facts and i figured the recount number is the most forward indicated. you will see the decline in the coming months. i think it is very important. oil companies will discuss that as well and that is what you look at. >> thank you so much for joining us. betty: scarlet fu. the earthquake approaching 3700. officials say that figure could rise at least 5000 people were hurt. millions are homeless. severe shortages of food, shelter, medicine, reported in the capital. aid workers say things are even worse in the countryside. >> a 122 days walk is the best of times. it is difficult to know how we will get there. we are hearing reports of casualties there and injuries. betty: nearly 180 mountain climbers are now safe. several hundred others trapped. 19 were killed. one economist tells bloomberg could cost up to $5 billion to rebuild nepal. more than 3000 workers at germany's's largest lender to lose their jobs. deutsche bank officials announced a long-range cost-cutting plan. the company wants to save $4 billion a year. it also lance to sell his consumer unit bank. the bank must be ready for tougher reserve ratio. classic if the real danger the ecb does wind up harmonizing to the u.s. standards. even if those rules do not come if you want to compete with peers that is where the consensus has gone. betty: shares suffered its biggest drop in trade down over 4%. revealing a reshuffling of the bailout negotiating team. it still supports the work of this fireman minister. meanwhile, greek officials are scrambling to come of with $1.5 billion. the clinton family is backtracking after an accusation in its new book. it admits eight -- mistakes were made on tax reform. mistakenly combined with other donations. the statement was issued after an author said the foundation should be investigated. the author of the upcoming book clinton cash, said some may donations while hillary clinton was secretary of state. >> when you ever have an issue to flow of funds whether that is campaigns, whether that is to their spouse, if their evidence of a pattern of favorable decisions they made for those individuals? point we made in the book is there are dozens of examples of that occurring. betty: her campaign denies any wrongdoing. school is out early today for 16,000 students. corinthian colleges shutting its crypt campuses. it was once one of the nation's's largest for-profit firms here the beginning of the end came last summer when a federal student aid was cut off. regulators lied about grades, attendance, and job rates. a big moment in for-profit colleges. much more is ahead. miami heat, how much longer can south florida's real estate -- we will talk to one of the region's top rocher's. stay in the loop. ♪ betty: we are less than an hour away from the start of trade. let's get back to our breaking news desk. scarlet fu, looking at 3-d printers. scarlet: that is right. pre-announced first-quarter sales and profit will be below analyst estimates. they say customers in the aerospace, car industries are cutting back because of the strong dollar and strong oil prices. it is looking into it and evaluating the view because of all of the uncertainties. you can see the rival also lower in premarket rating. the chipmaking equipment maker by market value in the premarket. $800 million, more than five times the activity in the actively traded stock. it's cracked it's bit. opposite -- opposition from regulators even after companies made concessions to regulators. now appeasing shareholders by buying back shares. plans to buy back $3 billion of its own stock. speaking of stock buybacks apple will report earnings after the bell. people are fixated on the iphone sales numbers. we might see an increase of 33% according to analysts. earnings probably jumped by more than 20%. the big question is use of cash. will apple increase its buybacks? it is already at that level here what does that mean for stocks going forward? betty? betty: lots of questions. thank you, scarlet. scarlet fu at the breaking news desk. back to real estate. possible deal in the works. possibly signing with the miami heat, looking to sell his unit for more than $3.5 million. possibly may have already found a buyer from columbia. so reliant on the international buyer, a strong dollar having any effect on the market. >> a robust presoak condo market's last season in miami has now become sluggish. it is an unreported and on discussed reality taking place. everybody's sales are down from the pre-selling condo, five hundred thousand dollars per unit to the ones like us at $10 million per unit. collect the vast majority are bought by international investors. as you just heard, the higher dollar is having some impact, but take you only in the uber segment of the miami market. someone who knows miami very well because when i look at him, i just think miami, chris leavitt. he is a real working man. he is a real estate broker. i know everybody talks about million dollar listing, but come on, you are a our house real estate. that came first, which is why you went on to do this. first off, you hear about this, which you sell he is saying this is a hard market. chris: it is a very boat -- robust market. everyone wants to be in miami from all over the world. it is billing. it is happening. betty: how come you have different perspectives? chris: the supermarket is not affected. i did the season from november to just about a week and a half ago, it was all new yorkers, people from canada. people who are buying and they bought in robust numbers. i closed on friday $23 square-foot facing west today. everybody wants to be on the ocean. it is showing good science the market is doing very well. betty: compare that to wear a condo sells for $22 per his or is on the high-end here in new york. chris: the super high-end in new york city is worth half. we are talking the highest level real estate in miami versus the highest in new york, half the price. betty: let's bring the table up. it measures the top 20 major cities and is coming out tomorrow. it has now gone up to the top, the number two city to the scene the most price gains. it is 8% up in the last three months, just behind san diego charlotte, dallas, and boston right behind it. i can see san diego. but what is it, other than the fact miami is a great place to go, what will keep the prices up? chris: it is becoming a global city, not just a city in the country doing well. it is becoming world-class were everyone the world wants to be. the infrastructure was there where it was not to four. the market in 2008 is a bust. there was no infrastructure. we have the most luxurious hotels and restaurants coming in. it is growing and becoming a world-class city and it will be a force to be reckoned with in years. it is growing in the right direction. betty: 8% growth and i am sure even more in last year, do you see that pace continuing? chris: i do. the housing market. the condo market, many choices. it is about finding the right one. the sand the each there is very little available and it is very tight. betty: it is -- just that area. chris: then of course belle harbor is in a world of its own as well. betty: great to see this morning. much more ahead gordon ramsay for starters. a new restaurant in atlantic city. i sat with him to get this story. much more is ahead. ♪ betty: according to the israeli military, fighters were spotted carrying a bomb. four syrian soldiers died. in colorado, the trial begins today. he started killing 12 people. he pled not guilty by reason of insanity. walmart is tearing up for a fight over the right to sell alcohol. the retailer sued in the lone star state. wants to end rules mixing grocery and alcohol sales. alcohol is one of the top drivers of retail. those are your top stories. gordon ramsay is a hot tempered powerhouse chef atop a food empire that spans television shows, restaurants, books, products. they are making millions ramsay was a charmer when it came to show me around his new grill in atlantic city, one of the many ways he is expanding the gordon ramsay empire across the u.s. and overseas. gordon ramsay: great entertainment, and somewhere we can go for an amazing -- in the evening or snacks for lunch. betty: why choose a pub for caesar's palace? gordon ramsay: come up against a lot of negativity come we had to close it down. the idea of going to high-end would be ridiculous. this place was built to last. betty: you have gone to celebrity, to now business empire gordon. gordon ramsay: it is a team. bloomberg knows more on that than anything. i think also we have been smart with market share, and bringing those in. i have been one of -- the chefs ever in my career. now for me it is about that evolution. betty: is it always nerve-racking before you open a restaurant? gordon ramsay: it is. customers like that. and they have not even been drinking. betty: so we have my beer. i have got my donkey. gordon ramsay: have a little taste. betty: i want to totally have a taste of this food. gordon ramsay: you only need one. absolutely delicious. please dip in. betty: it is no see her four closed last year. were you nervous? gordon ramsay: that is what we managed to do exceptionally well, a new concept that could almost reinvigorate. i look at the positives. those casinos that close down, rather than coming in with fine dining, look how open this space is. betty: do you take this overseas or is any of this near the restaurants you are opening up overseas? gordon ramsay: 10 to 12 issues globally. next month, we see it in singapore. betty: how has it done in hong kong so far? gordon ramsay: great. we have the most amazing breakfast. after that, an amazing kitchen with that group and that is really exciting. betty: your daughter matilda just launched her own cooking show. matilda: that is why i love -- gordon ramsay: i think it is real. it is cooking for 13 and 14 years old. cook for yourself properly is it as important as english and math. she has had turkeys, pigs, lambs. understand where foods come from and understand that it is important. betty: how do you stay so thick? you have all this food. how do you do it? gordon ramsay: the image of myself today is far different than 20 years ago. i eat well and i train well and i work incredibly long. betty: normally, you would say, if you are a well fed chef that is your food is pretty good. gordon ramsay: never trust a fat chef. he is eating all the best bits. [laughter] betty: "never trust a fat chef?" that is my take away with gordon ramsay. much more ahead. iphones. the biggest market for iphones not in the u.s. anymore. much more ahead. ♪ betty: to pull it a first major restaurant chain the first franken food. it is rare for a woman to have a senior position. ♪ betty: welcome back to it we are 30 minutes away from the opening bell. stossel will be slightly higher. a waiting game on wall street. investors look ahead to apple results after the bell. officials in the paul think -- horrific earthquake two days ago will be found. expected to rise even more than remote regions are reached. evenings -- even among those staying alive is a big struggle. they face risk of disease. things are even worse in the countryside. >> a man came from a village were there are 1100 households. he said when the earthquake struck it was like a volcanic explosion. rocks were going everywhere and he asked me to 90% of houses were completely decimated. betty: the last of the climbers now saved, rescued by the helicopters are 19 were killed. among the three americans who died, a google executive. one economist tells bloomberg rebuilding the paul will cost at least $5 billion. major changes are ahead for germany's's largest bank. range plan today companies want to save nearly $4 billion this year. it also plans alex those unit. about 3000 jobs in deutsche's retail business, even more on the investment banking side. greece revealed a reshuffling of the bailout negotiating team and says it still -- supports the work of its finance minister. he has been criticized during the talks to bring more rescue money to the country. meanwhile, officials are scrambling to come up with millions of dollars. hillary clinton's presidential campaign is just two weeks old but they are already backtracking. the head of the clinton foundation admits mistakes were made on past form. a grant to the clinton foundation from foreign government were mistakenly combined with other donations. it came after the author of a new book should be investigated. he said some got favorable treatment from the u.s. while mrs. clinton was secretary of state. >> when you ever have an issue of the flow of funds, whether that is to campaigns, to private foundations, and to their spouse, is there evidence of a pattern of favorable decisions be made for those individuals? point we made in the book is if there is a troubling pattern, there are dozens of examples of that occurring. betty: the campaign denies any wrongdoing and those are your top headlines this morning. the start of trade on this monday morning. are you ready? let's count you down to the open with headlines before the bell. bob is joining me. and joining us as well is the managing director $4.5 billion in assets. i am just kidding, bob. number 10. apple's's iphone sales in china may have exceeded the u.s. for the first time and may be due to strong demand for donations. apple shows earnings jumped 20% and they might have sold up to 20 million iphones. >> the question will be gross margin. can apple keep on making money at the margin right? if you see a slippage i would be very worried because the stock is being hit and even with growth so high, how are we not making as much money as we should? >> we have even more apple. i think it is part of the marketing scheme. they have so many people in china that do not have cell phones right now. it is not difficult for them to say, ship from malaysia, where they're making the phones, to china there and i would want to know about labor conditions. and here i am, a left-wing guy sitting to the right of you. i want to know the labor conditions that make it possible for margins to be so wide. betty: so you're calling for a further investigation? >> yes, i am. >> they have a place to go so high. the question is, can they keep the pricing? betty: a big vulnerability for apple is the ipad. i am not going to upgrade my ipad for a long time. speaking of china, a bridgewater associates says he is optimistic on the chinese economy in the long term. capital has not slowed to all parts of the economy. he made his comments during an interview. >> do not fight the fed. do not fight raid. the guy is as close to a robot moneymaking machine as a human being could possibly get. that said, a sixth grader knows long-term china is a good bet. 20 years from now, months from now. we found companies that have gone in there. if they are not well diversified, they get hurt. they do whatever they want whenever they want. betty: this is a country where, if you make 80% return that is abysmal. you should be making 160% returns. you would risk a little bit and you pull out right away. >> you have no ability to secure privacy. look at software companies and look at qualcomm and microsoft. we're all having a time because it is piracy software. betty: more than a two decade long rain. this is why we care. it is hard to get americans to care. >> he you're talking about mercedes bmw, audi. full swag and is an afterthought. 30 years from now, i was a hippie, believe it or not. it is starting to all come out now. nobody that i know of and you are a little too late to the party. if you're going to start producing, this will be five to 10 years another cycle of autos. you probably missed this one. i would not get too excited about them coming down here. betty: i just bought a vw bug here and i did. those are the only ones you see on the road that are interesting to look at. it is in the front now. all i care is that it works care that is all i care. it is yellow. [laughter] number seven, that is all we care about. saudi arabia, the world passes biggest oil exporter pumping at near record levels contending with the biggest surplus since 2009. not everyone thinks this will mean lower oil. the resulting depletion of saudi arabia's capacity actually could set the stage for a price hike. what you think about that thinking? >> i do not agree. the price starts moving up, you have the ability for fracking to come on right now. people do not understand we have capital level flow. i will get greek star and other countries. that is why you will have a 60 to $80. that is what the saudi's have seen. you might as well kind as much money as you can. later down the road, if you get 40 and 50. >> the sound is really want to stick it to the iranians and they are fighting a war with the iranians. so how do they do that? they keep producing. betty: number six oil. women and private equity. an article showing only a handful of women hold senior prediction -- positions. many ceo's's are realizing that hello, on wall street and on high finance, the numbers are abysmal. we are talking about teens. >> it is being run by my old pal, tim geithner. a shout out, get more women. betty: and putting the heat on them. bob, stay with me through the opening bell because we have a much -- much more ahead. a strategic overhaul at deutsche bank. investors appeared to be less than impressed. we will be back in two minutes. ♪ betty: time for our deep dive, focused on number five deutsche bank. the biggest revamp since go ceo's is took the helm. hans spoke with him earlier this morning he was optimistic as you might expect. >> he will see stronger in equities than we have today. you will see a considerably stronger corporate finance and a smaller flow of extension house. less transactional and more divisor he. betty: i want to bring in allison williams, a senior analyst with bloomberg intelligence who focuses on the banks. we have seen the ceo's's and they say they are setting up deutsche bank for a stronger future. we saw share price. investors are skeptical about this. allison: investors like the targets. i just think we need a little more detail on how they will get their. we're talking about a long time frame. a five year time frame. they outline how they will get there and that is really what investors want more detail on. betty: what is the speculation here? how could they possibly get to the $4.5 billion in cuts they're talking about? allison: they have given broad strokes of the strategy and talked about the businesses they will scale back. they will be investing in asset wealth management. we have seen this across the major european investment banks. 3.5 billion of cross cuts they're aiming toward where they will be, specifically how they will get the cost out, how they will become more efficient, when it was announced costs this year, here are the costs and we already identified ways. betty: would you say they seemed unprepared or just did not want to reveal the details? allison: it is a broad strategy and they are thinking this is the target. i think they need to figure out how they will get there. from an investor standpoint year ago, we had certain targets laid out and a year later, here we are with the new strategy shift. cost cuts are part of it. one of the key things investors are focused on and they want to see how they will do that. betty: they talked about the legal settlement and capital increases. let's play that quickly and we will get your reaction. >> we will be able to sustain and maintain. yes, we took that to a charge and this morning we reported a very solid quarter with strong operating results. classic no need because of the challenges? allison: i think legal settlements tend to be an overhang for all investment banks. it is another thing we're seeing in terms of looking at the company's capital targets. two different targets, one is the leverage ratio and the other one is based on risk-weighted assets. i think investors are surprised the risk-weighted assets ratio and our targets seem to imply there will be a step up in higher operational risks. betty: thank you so much. we will be back into those minutes as we count down to the opening bell. ♪ ♪ ♪ betty: bob is joining me. the managing director. let's get straight to our number four. mistakes with how the nonprofit listed donations from foreign government. >> mistakes with listing donations, mistakes with e-mails . it is all a big mistake, right? i have gone, you know, to take a page from elvis costello, i decided to be amused. so far, it has been a dole presidential election and i have been following the 2016 presidential election since 1972 along with everybody else. quite it is kind of like greece. it goes on and on and on. >> let me make a suggestion. let's have bill clinton be her running mate. hillary and bill. then we could put all of the scandal in one place. betty: the right would have a connection. number three, boys. i love it. he was going to sound off on this of course. the latest plot twist. a massive market collapse. he basically says -- they sat on it for five years and could have sat on it forever. >> you have got all of these dark trading agenda. so many things are happening at one time. >> he is the equivalent of an internet troll. he lives with his parents. he is trading all alone and was able, according to court documents -- >> there has got be more to this story. >> the big companies do it better. betty: the saga continues. scarlet fu has details. scarlet: this is the latest chapter of the soap opera. they have rejected the offer, saying it grossly undervalues the company and carries a significant antitrust risk. they add it is committed to its offer, and paragon rejected the unsolicited offer as well. no one wants to admit to it right now until the price is right. we are seeing shares move in the premarket right now. higher for instance right now in the early goings. betty: thank you so much. there will be much more to this story in the coming weeks. the opening bell, futures have settled slightly higher. the top story the opening bell is next. ♪ betty: welcome back to "in the loop. but get back to the most important stories you need to know before the bell. our number one story is in food actually. this is right up your alley. after undergoing a massive makeover, starting today, at 18 plus stores, they will serve only food that is free of genetically engineered ingredients. guest: this is huge. you have seen a movement where millenial's want to know what is being put into their body, and they want non-gm oh. -- non-gmo. this is very important for companies because then you can have a price point that is higher. guest: is the science in whether or not gmo's are bad for you? guess: they want to make sure it is not processed through that goes into your body. betty: but when i hear that, it's like short mcdonald's now. guess: that is the hard part, because mcdonald's is so big, it's probably hard to move the needle. betty: exactly. i want to bring in mike reagan for some more perspective. there is an interesting article quoting doug ramsey, the chief investment officer at google group. he said -- loophole group. he said we have made so much in this market but that we are pathetically underperforming. {opening bell] earnings should be 30% higher than where we are now. what is wrong with us? who agrees with him? mike: he makes an interesting point. and with interest rates as low as they are and is really what is helping earnings growth but is it real organic growth, or is it just this financial engineering? and obviously, tax dodging is another part of this. that is his case. i'm not sure i agree with all of it. on the other is no bit -- other end of it was another voice saying it feels like these are strong gains compared to the past five to 10 years, but if you go back 20 years, it's where we are on average historically. guests: and i think people forget how bad it was in 2009. it was to the point where the financial system was about to shut down. you look at the will financial sector and it's going to take a long time, if they ever get back to where they were. all of that is taking a wild to heal. betty: to your point, and we were talking about this during the commercial break jpmorgan is trading at a discount. sarat: and i think because of the overhang, and you were talking about deutsche bank a while ago. everyone is moving and it's hard for them to go out on the risk for and make any money. investors will invariably go where there is growth. and the market is rewarding companies that are growing. you look at companies like amazon, not to say the valuations are justified but what you have to do then is manage your risk to reward betty: -- risk to reward. betty: you think we are pacing where we should be. sarat: i think there are pockets that are undervalued and overvalued. earnings-per-share are changing in a big way. you go back and forth with that. mike: it's funny, because you use the word he'll -- heal and at first as i use the word helium. we have the vivax the tax shenanigans that mike mentioned and we have the qb that put a lot of interest into the system and interest rates that are favorable. when the tenure long bank bailouts end, what are we going to have? we do have companies are growing in and it were -- in an organic fashion, but we have a lot of help. when that help is withdrawn? sarat: that's the quandaries because what we are seeing right now is wages come back and take a while. this is a global world compared to 20 to 30 years ago. money flows way out of this country and the ability for our dollar will cramp earnings even more. betty: are you imagining almost armageddon -- not armageddon. bob: i always imagine a vignette and. when i wake up i think, is today the day? betty: [laughter] how much food do you have in your basement? sarat: how much -- bob: how much non-gmo chipotle do i have in my basement? i'm saying, what happens when you take the training wheels off. to extend the analogy can we ride the bike? it has been great what has happened, but let's see what happens. sarat: in credit is still tight. it's not really lose where you think it should be. that'll be something to look forward to to see what companies will succeed. mike: i think there's a big question of whether the whole reversion in business cycles, if that paradigm has shifted a little bit. since 2000 we had to really nasty bear markets two really -- two really nasty bear market. should people be skeptical? sarat: and to be fair we have not had this 10% correction that everybody keeps talking about. and we do get that pullback everybody's going to say, oh there's no bottom to this again also who will -- to this again. who will protect us? people are saying, i'm not really sure. cash is kind of good, even if you get it negative interest rate on a real rate. betty: that's true. bob, you got to stock up. bob: burritos will not survive armageddon. betty: no. thank you so much for joining us. coming up, once again, he has brought together the biggest name in business and finance. we will go to beverly hills for michael milken's. -- for michael milken. ♪ betty: trading is just underway right now this monday morning. i want to get back to scarlet for some of the early action movers in china. scarlet: you have to keep an eye on what is going on in china because even of the fed and make of japan will be holding their meetings this week, neither of them are the most interesting central banks in the world. that honor goes to the people's bank of china on reports that it's considering qe, which would weaken the chinese yen and push enterprises to merge. you are seeing a big boost. let's look at deutsche bank's american repository of receipt. following the most since january this year. not doing much to shore up investor confidence. deutsche bank now looking for a 10% return on equity in the medium-term rather than the original 12% by 2016. and finally, it's a fifth bound day -- down day for a chipmaker that is a supplier for apple. it has made the wi-fi chip or apple iphones at least initially. it is trading at its lowest level after it preannounced late friday that revenue will fall short of estimates because of weaker than expected pc and storage markets. also weaker demand from emerging markets as well. it is with drawing all of its previous guidance for the full year. we will get an updated report on may 21. not necessarily great indications heading into apple's results this afternoon. betty: not indeed. thank you so much, scarlet. there is so much cap -- height about the apple watch. did you order yours? they will report results after the closing bell today, and as is now -- as is almost always the case, the bar is very high for the company. will they break their own records? joining us to discuss this guys, thanks for joining me. we already hear that china is going to be a big star in the report. john: china could be, because i look to see how they do in the past. local vendors like xiaomi and others have done a great job. the average income is not that high and apple is selling a premium on there. it's a tough sell in a way. their global brand has really carried the day. they have done quite well there. we will see some very good follow-through this quarter. betty: are we expected to see anything about the apple watch? guests: the shipment date don't start until this quarter. the numbers will count in the june quarter. let's step back for a second. this is a $180 billion franchise that is still growing at double digits. it will probably make closer to $230 billion in sales. betty: it's almost a chilean dollar company. an it is. ad: we have one or 2030 billion dollars worth of phones, a $40 billion franchise, which is growing much faster than the pc industry all the time. you look at these individual segment and it's pretty startling how big the franchises are how profitable they are, and how aggressively they are growing. when you play setting context yes, the bar is very high. but when you take a step back and look at the demonstrable results compared to the size of the company, it is pretty astounding. betty: basically, tim cook would have to do something really stupid to derail apple right now. john: yeah, his next big challenge is taking apple to the next level. inevitably, you will see i -- iphone sales slowing. betty: what about the apple watch? john: i don't think the apple watch does it. i think is the apple watch plus contents, like a newbie streaming service, plus possibly a television. -- like the new beats streaming service, plus possibly a television. i think they need to look more on the software and content side going forward in addition to hardware. anand: that's a great point. one product is not going to cut it. just from the size, $240 billion in fiscal year sales, one product cannot cut it. you need five irons in the fire. you need apple watch and mobile pay and other things like that with large markets and profitable and growing market. betty: and you need them all to hit. anand: you do, and apple has historically proven that. but you need multiple of these. betty: what about the tablet? the refresh cycle on the tablet is not as robust as it is for the iphone. is that something we are not paying enough attention to right now? anand: the pcn computing market, i think everyone is figuring out what the size of the computing market will be. should it be a tablet? should it be a two in one? should it be a large screen phone? should it be a desktop? i think people are in the later stages of figuring that out. the tablet has been relegated to media consumption and when people want to do real work, they -- betty: they have a pc. look at microsoft. they have had hard time with their service --surface haven't they? anand: it is growing, but it still price pretty aggressively. you need a device that is capable of hitting all the sweet spot at the right price. and unfortunately, china is not doing so well from the computing perspective in the lower price segment. you need a lot of balls in the air to manage. betty: thank you for joining us. speaking of apple, let's talk about rivals. john just mentioned beats music. hip-hop mogul jay-z took to the internet over the weekend in a series of rants defending his streaming music service, title --tidal. it has been in business less than a month and is competing with apple. it has announced it is replacing its ceo and cutting about a dozen jobs just a month into operations. we will preview the all-star lineup coming up. ♪ betty: the milken institute global confident that conference began yet -- global conference began yesterday. kicking off the conference this morning will be cris robbins of blue harbor group. right now, cliff robbins and stephen schwarzman as well as shaun donovan will be a few on our program. erik schatzker and stephanie ruhle started on this last night. what is the scene there? stephanie: i will ask sean the hard questions. he was in d.c. and now here he is in l.a.. we will get to him bright and early with his -- with the hard stuff, because maybe he will be off his game. error: --erik: you are tempted to compare it to dock is because it is investors and academic types, but what makes different is the weather is better and it's infused with the risk-taking dna of drexel burnham. that is where mike milken came from. a lot of his former colleagues from drexel, leon black for example, we saw him last night. it makes a big difference. stephanie: rich candler from leucadia group is here. sitting down with these investors, the kind of men and women who like to take big risks and put all their chips on the table, that is kind of what is in their dna. i feel like last night was old home week for these guys where they are taking down huge investments in greece, buying sports teams. they are not afraid to make big investments. we got to talk about oil while we are here. every investor has told us over the last month that is where they want to invest. let's find out. erik: we will talk about activism on oil, but it is also not $43 anymore but north of $53. we will talk about the rate of return. stephanie: we will talk about texas, with losing jobs in oil compared to the rest of the country. erik: with that, we send it back to you in new york city. betty: sounds like a jampacked schedule. think you so much, erik schatzker and stephanie ruhle at the milken conference. much more ahead, including the private equity role for women. ♪ betty: last week, emily chang sat down with sheryl sandberg who said that corporate america is not really worth the price we pay. cheryl: i think when they realize not taking diversity seriously is harming their performance is when things will change. betty: private equity is one area where women are sorely underrepresented. they comprise about 11% of senior managers in private equity. madeleine joins us now with more. the thing about blackstone, steve schwarzman as i mentioned, has just put in place his new maternity leave policy, extending it from 12 weeks to 16 weeks for his female employees. that is one step in the right direction, but private equity is terribly behind other sectors in terms of employee high-level women. matalin: we have seen private equity only has about 10% on average which is considerably below. and private equity firms primarily recruit from banks. there is something happening at the recruitment level where there are not enough women actually applying stop betty: there is a dearth of talent that they find. matta line: --madeiline: not necessarily a dearth but there are two different thoughts on how they are bringing women into the workforce. one is that the entry-level and there are a few different initiatives for that. some firms are trying to find women who will in turn them in the undergraduate level. betty: what is the second thing? madeline: the second thing is retention. that is not so specific to private equity, because a lot of other businesses have that issue as well. maternity leave is a great start. it has been well received and people are looking forward to expanding it even more. betty: and that is an investment from steve schwarzman and blackstone comeau who seems to be the more progressive of the firms. you profiled women who said, i will never reach the top and i will strike out on my own. how have they done? madeline: they've done really well. we have seen that trend increasing where we have women as fund managers, which is rare, but there are these female role models who are founders of the firm or the dealmakers. they're able to bring in more women at the lower-level saying, look, i did this. you can, too. betty: thank you so much for that story. madeleine mcmann of bloomberg news. that doesn't for today. -- that does it for today for "in the loop." tomorrow, bob diamond will bless -- will explain why a the terms are the details. ♪ erik: we're live from the milken global conference in beverly hills. what are the biggest opportunities in the world and what about the biggest threat you will hear from investors? cliff robbins and attanasio. stephanie: everyone is waiting to see of this republican governor is throwing his hat in the ring. we will be speaking with michigan's governor. erik: and pot stores opened a little more than a year ago in colorado. we will be asking john laquon uber -- john hickenlooper if legalization is really worth it. good morning, this is a special edition. i'm erik schatzker. stephanie: and i'm stephanie ruhle. why so special? we are here for t

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