Markets, the commodities index up 1. 1 . Another rocky day. We got off to a remarkable start, momentum on the lead start lead side in the u. K. Reasons to be agitated and then with this rally. Scarlet it was really confusing by the markets were making of Janet Yellens today. It really caps on what we saw, the moment that hearst each was released to the press we saw the dow moves right at 12 30 but then it recovered some of its games and it picked up a little bit of downside into the close. Nonetheless a stark reversal from what we saw from bank stocks on friday when they got totally pummeled. Part of the reason indexes were holding up to do with oil at its highest level since july of 2015 , helping only oil and natural gas guys, especially transocean and halliburton, at its highest level in a year. These oil services got only wrecked. It of course makes sense that they would rally is oil did. Scarlet looking at currencies, investors on friday sent the japanese currency to its biggest rally since april following a week jobs report. Of course, the pound is also under pressure with the greg votes it brexit coming. 45 of those responding are in favor of leaving the eu as opposed to 41 percent in favor of staying. At one point the Sterling Sterling was down to 143. 53 area. 53. Joe theres a chart of the two year yield that popped briefly after the yellen speech on the shortterm, popping briefly before coming back down. On the flipside on the 10 year yield we had a bit of a decline right around that speech, some flattening with a rally back by the end of the day. Ultimately, kind of some interesting intraday moves that were ultimately close to flat. Alix the bloomberg Commodity Index, this is part of the reason that orange juice is at its highest double in four years. A Tropical Storm from florida that had a huge bike and orange juice futures helping the overall Commodity Index with zinc, iron ore, nickel. The Industrial Metals that china really uses. Production, we could see more in china because rebar stockpiles are shrinking and if they are shrinking, you got to use morse deal with things like nickel and iron ore, helping the commodity complex. Coming up, tmobile trying to win over customers with shares of stock. Thats. im mark crumpton. Lets get to first word news. On the georgian coast, savanna and the surrounding cant counties are under a Tropical Storm watch. County Emergency Management Officials Say that they are bracing for bad thunderstorms. Flash floods appear to pose the greatest threat with the worst potential expected later tomorrow when local waterways with a with brain quest high type. In advance of the storm rick scott has been there a state of emergency. A majority of voters in new jersey say that governor Chris Christie is much much more concerned with his future the governing then governing the state. 79 of those surveyed said that he cares more about his future and say that he endorsed donald trump for spot in a possible trump administration. The city of st. Louis has a nearly 5 million to settle 44 cases since 2010. The postdispatch is reporting that the cases include injuries, wrongful imprisonment, and death. Police departments in the st. Louis area had been under fire since an unarmed black male was killed by a white Police Officer in ferguson. The chinese vice premier met with Michael Froman today. Its the eighth round of the u. S. China economic strategic dialogue. They are working on topics like how to advance both countries economic openness. This is they number one of the annual summit in beijing. Global news, 24 hours per day powered by our 24 hour journey 2400 journalists in 150 news bureaus around the world. Alix well, whatd you miss . Win overis looking to subscribers by giving them a piece of the company. The ceo unveiled a new Program Offering one share of common talk to new and existing customers. Something no other publicly traded company has done before. That he is live now. Betty john, good to see you. Rushing over from that event. I have a few questions just on this whole offer that you are giving customers. So, why stock . Just give them money. John we have had been moves before this for the uncarrier. Where the fastestgrowing Wireless Company with the most satisfied customers. So, we felt our customers needed to get thanked. We did three things they. We gave every customer a share of stock. New customers get a share of stock but also anybody that refers someone to come can get a share up to 100 per year in a fiveyear plus getting too. The second one was tmobile tuesdays. Its really simple. You download it every single week and you get a free dominos eats a, a free foster the end of free movie once per week, special prizes, tickets to war craft. We expanded every flight to have a free hour of wifi. Betty but that doesnt answer my question, why money and not stock why not money instead of stock . John wheres the fun in that . This is why we are going growing. You know that 90 of social dont use their loyalty programs. 29 billion is on the table. People say they think they are just being hated. What we want to do and we do give good Price Reductions to customers, but this is a thank you. A way for customers to feel no strings, no bs. Betty no Financial Impact . It is, its banks into the financials. We knew we were doing this. All 10 of the other on carrier moves, its about people saying how can they do that . We have record low churn. For three years we have been taking customers from the other wireless carriers. Betty you mentioned it yourself, you are on brexit you are on uncarrier 11 now. People are getting to the point where they are saying what more can you do to attract lastribers, right . John quarter we captured 198 of the growth in the industry. Customers are not slowing down in coming to us. These pain points are a plethora. I look in social media every day to see the things that customers think are unheard of. Like we want from video. We came up with range and removed it from the data plan. Let me own a piece of the company . Theres plenty, plenty more. Our competitors are making this easy for us. Betty you havent gaining subscribers from this. Im curious, google wants to offer wireless with you. But there are others besides them . More in her people are looking at going to wireless. How will you compete . John think about whats happening right now. There are artificial barriers in the structure area fixed infrastructure plays this barrier. Betty now they are getting mixed up. John right. Customers want to do what they want, when they want. The good news is that all content goes to the internet. We do one of those things extremely well and we are open to ways to partner, ally, or merge with others. Are you worried about your margins . John our margins are expanding and it has been consistent. This is three years of growth. Im curious, though, does this give any indication at all as to how you view your stock john these are not primary shares. This has no deleted affect. I work every day for my customers and now im just making it official. They are now owners and i work for them. Betty at t and verizon have the lte coverage around the country. How far away are you from having this same kind of coverage . John yeah, dumb and dumber have traditionally had the broadest spectrum. We now cover 309 million. We are virtually the same as verizon, rader and at t. The other thing that has happened is we have 269 million pops of low band spectrum out of 700. We have continued to deploy it. Its not just giving us reach, its giving us in building penetration. Right now we are in a historic auction. If you think about it, that lead is gone now. Even more than the rats, we are by far the fastest 4g lte customer. I think its kind of over. Their lead is over. That i believe, john, i dont want to misquote you, you said you are open to being a wired, right . If there is a partnership out there . Acquiredont know that. Think about something, we are a huge brand with great access to grow for millennials. What i have said is this, my job is to build a standalone Growth Company with huge prospect. But im open, open to thinking of the ways that we may come together. I dont use the word acquire, but you never know. Betty have you had recent discussions with anyone . John weve had many discussions with many people, but think about where we are headed for serving customers. Thats the exciting part. Right now the focus is on the auction. Most players are in. ,row like crazy and after that lets see. Quite a few people think theres a lot of options for tmobile. They do, indeed. Deutsche telekom, what was there option . John we are a completely different standalone company. I dont run things by anybody. [laughter] betty you dont at all. Thank you so much, john legend john legere. Alix thanks, good stuff. The u. S. Payroll number, a negative or a good signal . More on that with jpmorgans economist. Lix whatd you miss . Im alix steel. Taking a deep dive into the all theg, you can see charts were looking at on the bottom of your screen and im looking at the market in commodities that just serve happened today, closing up over 1 . The white line here is the commodities index with the rally from the january 15 low. Dollar spote is the index with supply coming in its helping things like tin, nickel, and sink, with assist ashley weaker dollar that has really caused, in some ways, the rally to be seen in just the last few days. Joe pretty incredible. Who call this . Alix no one at all, are you kidding . Joe we will have to do a whole special on zinc, right . I will have to talk about i want to talk about brexit. Who is in the lead for that referendum . This is a fun chart. The light the white line there is the from the odds checker that aggregates betting. 33 of a chance in may. The blue line is the pound euro. When it goes down it means its weakening, going up and strength thing. You can really see that since the middle of march, zooming in, going back to the middle of february we can see them. You can see whats driving the pound. Over the weekend getting freshly remaindered holes. Polls. Wherees us a clear answer people in the betting market are seeing this. Taking it home again, looking at nonfarm payrolls, seven previous times its come in below 100,000 cents 2011. Here you go. 1, 2, 3, or, five. 4, 5. I cant count. 6, 7. [laughter] each time, youll notice as well that payroll has bounced right back. It doesnt say there very long. Said officials need to piece together whether the hiring slowdown was temporary as a result of the sluggish first if it iswth we saw, or perhaps something more lasting. We dont know until we get the data. Joe we can hope that it bounces back but history has shown. Scarlet you can see these charts on twitter. Alix staying on jobs, one possible interpretation of her speech today is that she sees it as a reflection of a healthy economy. Joining us is michael for only michael for rowley feroli. You have said in the past that we could be heading to a turning point. Michael i think thats right. We should expect to see it flow from what it has been to over 200,000. Im not sure that their attorney and per se, but it does seem that we are going down towards numbers that will be more sustainable in the long run, which makes sense now that we are at a place close to what most people can consider to be full employment. We are perhaps getting to the point we could perhaps say goodbye to the 200,000 members that we got used to for a while. This past friday we spoke to michael gave been. He discussed this question of whether the slower pace of monthly job creation could be perhaps some new life path as opposed to a turned down in the economy. With listen to what he said. Historically when you dont the economy is rolling over. Thats why we take a negative signal from this. My expectation would be that the economy is going to be in and above trend growth phase and you need the number to wreck higher. History tell us . Can we shift into a lower gear of job creation that doesnt auger downturn . , watch outgoes down for slowing economy and recession . Michael the soft landing has been one of those rare things in terms of macroeconomic policymaking. Argue re arguably in the mid1990s, but even that one was bumpy. If they can pull this off and get us down to that glide path with more sustainable job growth, that would be not unprecedented. Business investment softened in the first order where Consumer Spending was joined very well. How do you square all that . Michael looking at where we are right now, we were characterized by good capitals ending, good profit, and miserable consumers with unhappy workers. Now i think the balance of power is totally shifting is the labor market tightens. You will see consumers, households, workers doing better , but partly at the expense of profits and capitals pending. Its more evidence of a mature phase of the Business Cycle and labor resource cycle. Alix this is a great chart i have a my terminal here that accept the nonfarm payroll growth against the atlanta fed tracker. Is gdp at 2. 5 with job creation slowing. The question, how does that resolve itself . Joe with a long time for a long time there was this you that job relation was running asked her the gdp. Now we seem to have this pickup and gdp. Possibly. Well want to read too much into it where gdp seems to be doing better. Could that last for a while, where gdp starts to pick up again with both trends reversing . As you say, its one data point that not even a data point, its a forecast running stronger relative to gdp, another way of saying a couple of weeks years of productivity are starting to turn. We kind of hope that it does, obviously. We would like to see perhaps 100,000 jobs per month with a lot stronger gdp. You could really then start to gain more income and profits in a sustainable way. That would be great, one quarter the could be good productivity, too soon to declare victory. Alix you got the Janet Yellen Press Conference coming up. Of data what kind points does she need to see in june to make july a reality . Michael i think we need to obviously see a big rebound in hiring. With cpi and durable goods all continuing to look good. Its really, i think the burden is on the data to get her moving, i think. Moving back late july. I do think it what we heard today was a bit of a preview of what we would hear from her next week. She laid out all of these uncertainties that to me sound like she is already kind of preparing for explaining why they will have to wait another six weeks before content considering a rate hike. Was there anything else michael ed out at you . Not really. I wouldnt say striking. It seemed rather dovish with a lot of emphasis on that asked deked. If you are uncertain, that not an environment where you are eager to hike rates. It strike you struck me as a dovish speech. Scarlet michael, thank you very much. Alix coming up, short seller andrew ladd is calling dupont a toxic company. We will discuss, next. Hiim here to tell homeowners that are sixtytwo and older about a great way to live a better retirement. Its called a reverse mortgage. Call right now to receive your free dvd and booklet with no obligation. It answers questions like. How a reverse mortgage works, how much you qualify for, the ways to receive your money. And more. Plus, when you call now, youll get this magnifier with led light absolutely free when you call the experts at one reverse mortgage today, youll learn the benefits of a governmentinsured reverse mortgage. It will eliminate your monthly mortgage payments and give you taxfree cash from the equity in your home and heres the best part. You still own your home. Take control of your retirement today im mark mark crumpton. Lets get to first word news. Donald trump, saying that a judge of mexican heritage could not be partial. He said it during an interview with fox news all in trying to do is figure out why im being treated so unfairly by a judge and a lot of people at the with it. Presiding over one of the lawsuits over the defunct trump university. Bernie sanders weighed in today in california. Sanders to attack a judge because he has a mexican heritage . Candidate of one of the large Major Political parties in this country. It is really for really it is really quite comprehensible. Mark he said that its clear that voters need to do everything they can to make certain that donald trump does not become president of the United States. The president turkey in the king of jordan joined a long long line of World Leaders and superstars to it to speak at the funeral of muhammad ali on friday. Actor Billy Crystal and sportscaster Bryant Gumbel are on the list. Former president bill clinton will deliver a eulogy. Butdalai lama was invited send regrets that he will be unable to attend. A baltimore Police Officer charged in the death of freddie gray is opting for trial by judge. The driver of the van transporting him was grossly negligent when he failed to buckle him into the seatbelt and call a medic for help. Six officers were charged in the death. Benchr nero also chose a trial it was acquitted last month of assault and other charges in connection with the arrest. The indian Prime Minister is in the United States to advance ties between the worlds two largest democracies. President obama will host them at the white house on tuesday. Wednesday he will address a joint meeting of the u. S. Conference. Day, news, 24 hours per powered by our 2400 journalists and news bureaus around the world. Back to you. Alix thanks so much. Scarlet u. S. Stocks, rising, climbing to a sevenmonth high. A threeweek low after janet yellen basically reiterated her intention to raise rates but only gradually once the economy improves. Once again, a similar story at 8 30 on friday. Instant selloff with equities levitating after that. Thats what it felt like today. Continuation of that seem. Equities continuing to rise. Joe alix the bloomberg Commodity Index was up 1 today thanks to the weaker dollar. Well, whatd you miss . The short seller took down new target of the bankruptcy waiting to happen. The executive editor of Citroen Research published the report late last week calling it a spin off of zero because of the liabilities related to losses and cleanup. Cutting costs as they execute their longterm plan to reduce earnings with that. Earnings this year rising 2015 lets to the man behind the research, joins us exclusive from los angeles. To deceive see you again, andrew. You wrote that they are a bankruptcy waiting to happen. This stock is a zero. What evidence do you have that they are purposely designed for bankruptcy . Do i have internal email create aat they should company to bankrupt it . No. Do they have liabilities that are on the same track for bankruptcy . Yes. Can i look at the Balance Sheet of a company that is to highly leveraged for the amount of money being generated . Yes. Do i have evidence of them nefarious plot saying that this is been set up to go bankrupt . You can look at they designed this to go bankrupt. You have motive and structure on how this was done, in my opinion. You point out that they have extraordinary debt load relative to earnings against other peers. You point out that they have this huge potential legal liability that is far worse than understood. Explain why the legal liability is perhaps so much more than investors are anticipating. What does it stem from . New its mainstream news right now. Dupont has known that this has been a danger to people for the past 25 years, yet they continue to use this. Get you to dump it in the plants and around the plants were was manufactured. Right now they have absorbed that liability from dupont. They have told dupont that they would deal with the liability, including the cleanup and a medical monitoring. That has to do with compensatory damages, punitive damages, and legal fees. Everything involved with dealing with the crisis that they have. Right now they are only accounting for the washington works object. What they are seeing in West Virginia and parkersburg. You are talking about the 10th of the iceberg. We also have plans for reaching the netherlands and japan with potential future clashes. Estimates are 4 billion or 5 billion. We dont even know where to put the estimates, but we know that they are above the 20 million or 25 million right now being put on the Balance Sheet. A lot of analysts are looking at 500 million, but you got to five alien dollars. What happens if it isnt hit, fundamentally . Most people are just looking at the washington works project. Not just what could happen. Plus no one is factoring in any sort any form of punitive damages whatsoever. If you do any of the work that you can see in the Great Research and articles that have been written in the huffington post, the New York Times magazine, you will see that there is actual intent hereby dupont. For years they knew that they were poisoning the environment around them. The 500 million is really a moderate number. Also, the cleanup of 170 different sites could fall under them. Chemours. Scarlet do you still feel that the stock would be worth zero . Andrew there are some and he factors. How much less than the 5 billion is the first thing. Next, how our business is performing . Years. E next few understand, if this company by itself is a bad company when i said that i mean its over for the amount of capital that it has, overleveraged for what its producing, set up in a situation i mean, nelson peltz, no one news no one knows dupont better than him. A shareholder who has been trying to take a whole of those board seats for years. He actually said that they were putting too much debt on this company. That right there should tell you something about them. With this be worth that the environmental liability was less than 500 million . Thats what kicks it completely away. You could make the argument that the company could go bankrupt without any liability. Just under the weight of its own Balance Sheet right now. Having said that, what about the shareholders of chemours . There are three big investors with combined states of under 20 . Any of them . En to have they reached out to you . Why are they still in this company . Andrew thats what makes a or peopleet case might own a smaller part of a larger portfolio. People might own it against another stock. Why someone owns stocks . I have a whole list of stocks im sure i wonder why someone is on the other side, longterm, but there always is. Have you talked to them about this . Andrew i have reached out. I believe that the current shareholder base, with the worst argument out there, the people downthey can kick the can the road longer. Lets call it what it is. They will find a legal ability to find a way to not take the real victims of this story for another 20 years. Lets make it more difficult for the plaintiffs attorneys. If thats the case, hopefully we get a rebound during that time in titanium dioxide pricing. I dont find that to be a valid argument. Feel confident that the legal liability can be contained . You talk about internal discussions at dupont before it was spun off. Is the spinoff of the legal liability completely . Andrew thats where it gets yous relation here area if read it will say that they dupont from legal liability, but dupont still owns the legal liability. Its really away as you know whats going to happen, once dupont merges with dow chemical, in 18 months from now it becomes three different divisions. The worstcase scenario for the people involved here forget about their shareholders. Im talking about the people who are the plaintiffs. In 36 months they will have no defendant. It will since be split up into three Different Companies and the judge in West Virginia, the federal judge has already asked dupont if they go bankrupt, which one of these three subsidiaries is going to be responsible for these liabilities . They havent had an answer. You could then make an argument that because brexit has because chemours has agreed to indemnify dupont but dupont carries the liabilities, its nothing more than a Zombie Company waiting or dupont to pull the strings and say now you os certain amount of money. The whole thing is really designed if you look at it and structure, to make is more difficult on the plaintiffs attorneys to ever recover any money from this environmental disaster. Scarlet the case that you make against chemours is straightforward compared to the one against valiant. You have an estimate on how much that drugmaker is worth right now . Know you are looking at buying the stock after previously being short on it. I own the stock, but to be clear i owned it for a trade. It was a lot easier to say that valiant was going lower at 250 per share. Everyone is looking at the same data. Everyone is looking at the same reimbursement data. What we have to do now is predicting the future. How much will reimbursements look . How has the salesforce held up . These are all questions that obviously everyone is looking for. The answers are not on not obvious and the stock is telling placew it is running in right now. Considering that everyone looks at the same drug data, thats the amazing thing. The same number of prescriptions are filled, but everyone has the same questions. Some people say its worth 60, others say zero. I bought them as a trade. But what i also thought was better is that since valiant, as i mentioned, we are starting to see some differentiation in the pharmaceutical names. But whats happening with allergan right now. Thats wonderful news about it. Brent sanders is just a total superstar. The fight that they put against valiant turned out to be smart and they are putting into the bucket of good pharma. Similarly, the criticisms ive had i have deep criticisms. I think that Companies Main product is a complete joke. I think that their stock cannot rebound and must be put in the area of bad pharma. Most important leak, the concept of a Platform Company is completely gone. So, where it is found in him here . They are not making more acquisitions. As for the sum of the parts, a they going to sell anything off . There are a lot of moving parts here and its a more difficult call to make. If you want to have a trade, go make a trade, but there are a lot of stocks to invest in out there. Down beforeiant is its Earnings Report tomorrow. Andrew, thank you. We will be right back. This is whatd you miss . Scarlet whatd you miss . A republican victory could lead to a reversal of dodd frank. Jeb hensarling is unveiling a replacement plan tomorrow. In it he wants to change the structure of the consumer production Financial Bureau unsafe trading. Spoke exclusively with him and they began with a portion of the bill that would provide an offering for banks. If they elect to be a strongly capitalized bank, a 10 civil tests of the leverage ratio, considerably higher than whats wired under dodd frank and under the basel accords, if the bank chooses to do that they will be subject to no other capital and liquidity requirements. They can lend freely. They can do capital distributions freely. They can engage in mergers and acquisitions. Again, it is an equity finance. Arket based dodd frank offramp all the promises of dodd frank didnt come true, six years into it. They said it would lift the economy, it didnt. They said it would an end to too big to fail, it didnt. There is an emerging consensus that we need to go in a new direction and we need to unleash free enterprise. Because this economy is not working for working people. Critics will ask, what incentive do they have to bolster capital in order to get rid of some of these regulations . Why would a bank do that . What the incentive the . Right now they do have regulators in the boardroom. Some may be very happy with the status quo. I dont care to paint with a broad brush, but there is a washington wall street access. Someone to rely upon the taxpayers in order for there to be a bailout fund in dodd frank. Ofe see the designations systemically important Financial Institutions but i want to talk about your bill, sir, would get rid of the designation. How would that prevent to fail . Number one, we would get them out of too big to fail and the prophecy of it. Small banks have gotten your with taxpayers still remaining poor. Number one, we get rid of the designation. Number two, we get rid of the Orderly Liquidation Authority of dodd frank and we substitute bankruptcy for it. If you had to reduce this legislation down to its lowest common denominator, its economic role for all. Bailouts for none. We believe that ultimately going toscipline is help the economy a lot more than federal micromanagement, which to some extent is what we have now. What isr your question, the incentive . To allow you to be a banker to help fuel the economy. Switching gears now, theres a huge change in the Consumer Protection bureau that significantly reform it and hold it to congressional oversight increasing congressional oversight to the cfp be. You know that senator elizabeth moran, your friend on capitol hill, the democratic senator from massachusetts, you know shes not going to like this area wire these reports needed . Losee, im not going to weep over what she thinks about the bill. Number two, ultimately what we have in this orwellian Consumer Financial protection bureau, cap bureau, basically what we have is a National Consumer manny. One individual can decide whether this loan is abusive, whatever that means, and outlaw it. Even as american understand american citizens understand the term. Unfortunately what is happening under dodd frank is consumers are losing. Has been cut in half at banks. 20 of the people who qualify for a mortgage in 2010 will longer qualified. We have had 15 fewer credit card offerings. The cost on average is 200 basis points in the list goes on and on. Consumers seven hurt. We need a watchdog and is the law. It would also increase penalties against wall street. For the folks covering donald trump across the country, people in both parties tell me they dont feel that wall street was held accountable. Sir,would your bill do, and what with the Republican Party do to make sure they are held accountable for things like Insider Trading . We have washington accountability and wall street accountability. Many fines will be doubled and tripled under our particular legislation for selfdealing, for Insider Trading, for fraud. A number of these have not been updated, frankly, since the 1985. How are you going to work with the standardbearer of your party right now, donald trump, on this proposal . Have you had conversations with his campaign . I havent spoken to him personally, but i hope to. There are a lot of things he has said and done that i dont agree with. But something i do agree with is that dodd frank has failed miserably in that it has replaced and to promote economic growth. I know that hes interested in doing that. My crystal ball is fuzzy on who will be the next president , but if it is donald trump i hope to be able to work with him. Well, coming up, amid the hoopla of the u. S. Payroll you may have missed comments on it nation from charles evans. Why did they raise eyebrows . Next. Joe im joe weisenthal. Whatd you miss . Tomorrow. The reserve bank of australia coming out with a rate decision, no change expected for that one. Then at 1 30 a. M. The reserve bank of india will come out with its decision as well. No change expected there but it might be the last time that they will be leading the decision because after that it will go to the committee. Alix speaking with speaking of the indian team, Narendra Modi will be meeting with barack obama tomorrow. But will that conversation really be like . Its been instrumental. Miss this, tomorrow morning, valiant earnings. Everyone is going to be watching results to see if they are making progress on the Recovery Plan tomorrow. Thank you so much for watching. Joe have a great evening. I am john john heilemann. Mark i am mark halperin. You are out of order. You are out of order. You are out of order. This whole trial is out of order. You are out of order. Mark all rise. The show is in session. We are hearing objections from all corners
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