worldm bloomberg headquarters in new york, i'm mark crumpton. this is "bottom line" the intersection of business and economics with the mainstream perspective. president obama nominates budget director sylvia mathews burwell to be the next health secretary. investors ensure strong appetite for greek bonds. in the golf industry swings back. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of these stocks and stories making headlines today. julie hyman follows the drop in

equities as jpmorgan earnings disappoint investors. indira lakshmanan on has laid developments from nato on russian troops along the border.n we begin with julianna goldman on health secretary nominee sylvia mathews burwell. good afternoon. >> good afternoon, mark. >> the disastrous obamacare rollout, that was months ago, that was back in october. why did the white house weight so i can make this change? >> -- wait so long to make this change? >> you had the president, out and say he was officially nominated sylvia mathews burwell, budget director, to replace kathleen sebelius as health and human services secretary. timing is everything. i've been rumblings that the president was going to be making this kind of change, but they were waiting for there to be a positive narrative around obamacare, and so last week you had the president doing his

victory lap from the rose garden now announcing 7.1 people had enrolled in obamacare at the end of the enrollment period. kathleen sebelius and asked it was 7.5 million people when she testified on capitol hill. she is able to go out on a high note. they think they are turning the page here and moving on. >> julianna, what kind of pressure within her? -- what kindey o of pressure were they under? >> they were under pressure from top democrats. they said you are making the argument that the failed website is unacceptable. well, that means somebody needs to be held accountable. what this does going forward is take that argument away by having caffeine's bilious as did administration official who is being -- by having kathleen sebelius as the administration official who is being held accountable for the botched rollout. he needed to get this done when they had some space between now and the november midterm elections, when republicans have expected to -- they have already

started to use obamacare against democratic incumbents. yes, the confirmation hearings are going to be pretty nasty. all sorts of dirt about obamacare is going to come up but they think they can get it out of the way while they have this positive narrative and then move forward to november and. really to the economy -- and piot really to the economy. >> talk to us about ms. burwell. she has been through this. she sailed through, but as you point out, probably not this time. >> it could be a lot more rough when -- than when she was going through her coverage hearing for budget director. she was confirmed 96-0, which the president made a point of saying in his announcement. she is one of the president's top advisers in the white house, protége of bob rubin, work in the clinton white house as deputy chief of staff, was deputy to the band budget director and not treasury secretary jacqueline -- and now

treasury secretary jack lew. the administration is emphasizing that she brings management chops to the position and is someone who gets things done. >> julianna goldman joining us from washington, thank you. jpmorgan kicked off earnings season not with a bang, but with a whimper. it is falling down other financial shares. julie hyman, does this set a tone for other earnings this quarter? >> expectations going into earnings season are relatively low. 42% drop in mortgage revenue, 21% slide in fixed income trading, which was telegraphed by the banks. nonetheless, these declines are deeper than had been anticipated. we are seeing as jpmorgan shares selloff by about the most in a year. you have that is sort of the big marquee bank, the first member of the dow jones industrial average to report setting at tone.

you have wells fargo and that bank beat estimates with the gain in revenue. it's all lower loan losses for the bank. that was the positive outweighing a little bit the negative. if you look at what is going on with financial shares broadly, we are seeing declines for the financial stocks, concerns about bank revenue, how much is it going to be able to grow, especially with the regulatory constraints that have been put upon the banks. there is that concern, the continued selloff, the so-called momentum stocks, technology still feeling pain today. it is resisting -- in a parallel fashion, the zen pen the jpmorgan disappointment is happening. we mentioned earnings more broadly. let's dig deeper into the expectations. the forecast is for s&p 500 profits to rise one percent for the first quarter. the numbers we are getting now. if you look at context here, that forecast was for 6.6% rise back in january.

goldman sachs found that on average, for the members of the s&p 500, the forecasted fallen by about four percent. we're definitely going in to this earnings season was lowered expectations. the one potential advantage of that is that it leaves a lot of room for companies to beat the lowered expectations. .he bar is set relatively low it is early days yet. this is a big marquee miss but it doesn't mean the entirety of the earnings season, that is what we're going to get. and jpmorgan, they are the largest mortgage lenders in the country. what do these results tell us about the size of the mortgage market and how it is shrinking? >> we have seen a change in the mortgage market, right? when you have a telegraphed that the rates are going to go up, you have folks trying to buy homes. it hasn't necessarily happened this time because there is a lot of murkiness in the greater environment. there was the weather put down

of what we saw happen in housing, hurting the housing recovery a little bit of the time. people are unclear with the economy what the rates are going to bring. >> senior markets correspondent julie hyman, thank you. the european union's energy commissioner says there is "no reason to panic" over gas supplies in europe. it comes after russian president vladimir putin threatens to run off gas deliveries through ukraine. indira lakshmanan is in washington with more on this story. what can we ask -- what can we make a these remarks? >> was talking about p -- what was striking about putin's letter was that he was actually threatened to cut off gas to ukraine. he says ukraine owes us $2.2 billion over the last 4 years in unpaid tax bills. on top of having cut off the subsidies for the gas to ukraine, he says we are not going to keep giving them aghast until you figure out a way to

support their economy. it should not just be us, russia come subsidizing and supporting them. it is not a direct threat to the ee itself yet. although the eu gets 13% of its gas supplies from russia through the ukraine, there are alternatives -- alternative ways to get that gas, particularly through the lovers. we did see market -- particularly through belarus. we did see markets move a bit on this news but some traders that they were grateful because gas the price in europe are high and it is not the same as the threat coming in the winter. importantly, the european -- the german finance ministers saying that they will respond to putin's letter. is predicting its economy is going to shrink by about three percent this year. what is the latest on efforts to give ukraine financial aid?

>> this meeting the meetings at the imf and world bank have been dominated by discussions about ukraine. you have ukrainian officials saying they expect to get $7 billion quite soon from the imf and we have imf leaders saying that ukraine's need is more in the neighborhood of $27 billion financing. we have countries reaching out with offers. the u.s. is considering more beyond the billion dollars in a loan guarantee underwriting. we will have to see where it goes from here. >> finally, nato released images showing russia' appointment on the border of ukraine. why did they do this? >> they were trying to counteract russia, saying we're are not building up troops next to ukraine, accusing nato of having released old imagery before. the images you are referring to are 7 commercial satellite images.

nato has released these satellites and allied you to see before and after. you can scroll across and they showed that this shows up to by thelitary bases russians on the other side of ukraine. in some ways this is about psyching out the opposition, psyching out the russians and saying me know what you are doing. u.s. treasury secretary jack lew says that we, the united states, are ready to impose more sanctions if you go for their -- go further. at the russians coming up licensing for the last russian am station that was playing voice of america russia, denouncing it as orwellian propaganda. both sides are playing the game. >> indira lakshmanan, thank you. russia, vladimir putin, the ongoing tensions in ukraine are the topics of tonight's "political capital with al hunt ." former national

security adviser is former national security advisers and big enough prisons the. greece's $4.2 billion bond sale. we will look at the significance and the timing of this country's return to the international bond market. ♪]

>> greece pulled off a successful bond sale this week, selling more than $4 billion worth of five-year bonds. it marks the end of greece's exile from the international markets. economics at the nyu stern school of business and cal berkeley joins us from our san francisco bureau. welcome back to "bottom line." >> good to be here. back in february, you propose to that greece consider a bond sale before the european election. why did you think the timing was right for a sale and what is bringing buyers back to greece's debt? >> it is a matter of comparison

between the interest rates that other european countries -- even portugal, which was to a large extent in a similar situation to greece -- and a way to go around the restrictive program that has been imposed by creditors on greece. , the eu, imf, and ecb, have imposed the program on greece. at the same time, the amount of funds is limited. it gives an opportunity for greece to have more money and also to determine a market based ability for greece. , as a resultf this of the entry into the financial markets, greece has an assessment by the markets for its credit.

other companies can take it manage of that. agency saysratings that the bond issue shows the progress greece has made but it does not mean that the country will be able to finance itself on its own when the international bailout program ends later this year. what is greece needed you to show the international community and the ratings agencies that they can stand on its own? there are lots of structural reforms that need to be done and the ones that need to be accelerated. opening markets to competition, opening the market to pharmacies to competition, the market for trucking. these are important markets for greece and they are important for them to become open. additionally, i think greece has its state strengthen sector. although is very large it has shrunk considerably in the last 4 years. that theenture to say

greek government could with one stroke decreased importance of the state and the economy by not allowing any more for the greek government to vote for the various pension funds. greece is able to control a lot of the economy even when the state doesn't have a big market share in the company through the pension amendment. we are talking about an economy that is shrunk by about a quarter since 2010, and again employment rate is near 27%. why did the international market , the international community giving greece a vote of confidence this week? >> the markets in general tend to anticipate what is going to happen, and we already see the signs of recovery for greece's. we have seen a decline in on implement for the first time in

4 years. we have seen car sales go up. we have seen a different mood in the population and greece. it is important that the recovery is in fact starting, and that is where the markets come in. anticipate a full recovery, and now they are thinking very seriously of investing in greece before the asset prices increase. >> professor, as you know, these are baby steps on the road to normalcy. all of that can be undone by the way of brooklyn stability -- political instability. greece'sb went off at central bank. no one was injured in that attack. how important are these elections to greece's future and what outcome will give the international community confidence that greece is getting its house in order? >> this is a very important step, coming out of exile after 4 years. the political instability does

remain. hopefully in the elections coming up in may, not parliamentary elections, but still, local elections, i hope that the parties that are for the right goals, the shifting of the state sector, more openness in the economy, are going to have a bigger percentage of the vote and are going to be able to .etermine the future of greece hopefully that is going to be the outcome. but the political issue does remain. in terms of the terrorist attack , putting a bomb outside the bank of greece and the office of the imf, that is still unfortunately part of the situation in greece, but i don't think that the terrorist contingent, let's say, increase, is significant in any way. i don't think they play any major role in political events . >> a professor of economics at the nyu stern school of business

and cal-berkeley, always good to have your expertise. >> thank you. continues,ttom line" if you love picking out at practice time, check your wallets. your bacon fix is about to get more expensive.

>> if you love bacon, get ready to pay more for it, not just the site, but all the staples are burning a hole in our wallet. alix steel has been digging into how much more the most important meal of the day will cost. >> what is your favorite breakfast food? >> cheerios. >> we had that really bad winter

in the midwest. it hurt the winter crops anyway. juice, itcon, orange is affecting a huge amount of production. the real story has been about bacon. the story here is that basically, piglets are dying. there is a virus that is killing them, spread through feces, not contracted to us. we are not at danger here, but it is very, very risky. this chart tells you the longer-term term effect. before the virus from each pig made about 10.1 piglets. nine percent were kept so the farmer could keep breeding. 1 stage and the rest we get to eat. and the rest we get to eat paid the number has dropped to 9.5 because the virus. literally there is less pigs for

us to eat and there doesn't seem to be an end in sight. >> what about the longer-term effects? >> right, because you can't just after fingers and all of a sudden you have a pig. also, you not seeing the effects yet in the market. here is that bacon prices and pay prices were pigady on the rise -- prices were basically on the rise. april, you wind up slaughtering less pigs. it is sort of the perfect storm here for these prices. >> what about restaurants and other businesses? >> a lot of these restaurants tend to lock in their supplies about six to 12 months in advance. they are good for now. they tend to lock in those supplies in october and november of the year before. i have about 4 or 5 months to get the prices under control before they have to buy.

bloomberg industries and says we might have a 10% increase in allport-related products dish all part--- all pork-related products. short term they should be insulated so that -- >> what is your staple? >> i had turkey bacon this morning. not even the real bacon, turkey bacon. i love it. less fat, less salty. i dig it. >> bloomberg is "on the markets." olivia sterns has details. >> fracas prices might be up at stocks are down to the tech selloff has come back. earlier this morning, it was briefly trading positive. we are watching movies in 2 big stocks. zynga has hired a best buy executive and is hoping that a management shakeup can help turn around the struggling company. the shares have lost over half the value since the company went public more than 2 years ago.

we are watching garden shares. shares.aurant -- darden we will be "on the markets" again in 30 minutes.

>> welcome back to the second onf-hour of "bottom line" bloomberg television. i am a mark crumpton. but start with breaking news -- president and first lady michelle obama had adjusted -- had adjusted gross of $98,169 in 2013. $59,231 to 32ated charities.

in 2012, the obamas paid 18.4% in taxes. stay tuned to bloomberg on monday for special programming on everything from the future of the mortgage deduction to how you should handle your bitcoin profits. "taxing america," all day monday on bloomberg television. i will be speaking with a senior research associate at the urban institute and we will focus on pop up tax-preparation stores cheating unsuspecting clients. that is 2:30 p.m. monday on "bottom line." let's check the top stories of this hour. the national transportation safety board is investigating a crash that killed 10 people last night in california. busdex truck slammed into a carrying more than 40 high school students. the chartered bus was shuttling students to humboldt state university for a visit could 5 students, three adult chaperones, and the driver killed in the crash.

australian officials say that they're confident that signals detected deep in the indian ocean are from the missing malaysian jet's black boxes. on a morezeroing in targeted area for the source of the sounds first heard on saturday. bmw, the latest auto company to issue a recall. the world's best selling larger automaker is recalling almost half a million vehicles because of a possible engine bolt defect. that is a look at the top stories in the news this hour. is a physics laboratory on the campus of columbia university that once witnessed the beginnings of the manhattan project. but today a scientist in the same space is devising a new weapon. >> the most of the creature -- most deadly creature known to man.

he is a hungarian astrophysicist by training. today he is less interested in deep space. >> we have a lot of them in there. >> more focused on shallow water. >> you earn astrophysicist running a mosquito farm. contractedose friend fatal malaria on a trip to uganda, started looking into how to use his expertise in lights and lasers to eradicate the .isease >> we discovered new behavior patterns of the mosquito that contract then back. found that the navigation systems were significantly impaired by infrared lights. he was able to turn the insect away by creating an invisible infrared wall. he got a $1 million grant from the bill and melinda gates foundation.

the money has allowed him to visit tanzania, to see how is technology might work in the field. >> can i go in or no? where did they see the mosquitoes? they are coming up there? work says his design could with annette, harmless to humans but disorienting to mosquitoes. cost still remain but that isn't stopping him. ini have 4 children, and sub-saharan africa 4 of them would die and be of disease. i decided to use my expertise to do something petco and useful as a service to the community -- something practical and useful as a service to the community. are there a lot of scientists like your guest to our joint -- who are working on global health programs like this?

>> you have a virus experts and biologists looking to improve them but i don't think there are many astrophysicist working this field. to healthortant experts consider technology to be when it comes to commenting these endemic diseases? >> we talk about this technology a lot in business but in that sphere they're looking for efficient ways to spend money. if there is a solution that will work and rollout widely and save them money, that is something they are interested in. >> we were talking during the package and i noted the irony -- you are talking about a university that has links to the manhattan project which obviously led to a lot of death and instruction, and here you have people working to save lives. >> he is proud of the fact that there is incredible physics done in that laboratory but he realizes that this is something very useful for life. >> willem, thanks. coming up, the 2014 masters tournament.

we will look at the leaderboard and figure out what is missing and more likely, who is missing from this year's event in a gusto.

>> it is time for today's latin american report. nicaraguan president daniel ortega has declared a state of yellow alert following an earthquake that hit the western part of the country on thursday. the nicaraguan newspaper, 800 homes were damaged and one person killed in that 6.1 magnitude quake. tremors were also felt in costa rica, honduras, and guatemala. the stocksays that are us so. analysts say that while upcoming elections can offer a potential upside, the downside risks are "intensifying." general elections will be held in october for presidential, congressional, and gubernatorial posts. the stock market is dropped 12%

in the last 30 days. year's our focus to this masters golf tournament. bubba watson sits atop the leaderboard at this hour. he has made 5 straight birdies .nd is 8 under par but the big story this year is the absence of 4-time champ tiger woods. back surgery forced him to miss the tournament for the first time in 20 years. bloomberg reporter mike beutel is covering the masters and he joins me on the phone from augusta. what is a augusta like without tiger? from a competitive standpoint, how does his absence affect the rest of the field? >> the feeling down here in a guest is much different than it usually is. whenever tiger is in a tournament there is a lot more buzz and attention. there is a saying that goes on -- it is not really a professional golf tournaments unless tiger woods is in the field. the masters is still the masters and there's plenty of history.

but without him it definitely has a different feel. as for what it does for the rest of the tournament, it opens up a lot of opportunity for other players and in fact, we have 24 first-time masters competitors this year. that is a record. in addition to not having tiger, you have a whole lot of new blood here at the course, tournament that a lot of players -- it is the top of the list to win. we will have an interesting weekend and right now you have bubba watson, leading the tournament and playing pretty well. theet's talk more about ascendancy of the golfers who are this year's masters. the defending champ adam scott, the 2012 b watson, they are on the hunt in day two. mcelroy was the favorite. is there enough to keep viewers tuned in on saturday and sunday? >> it will be interesting to see what kind of numbers you get. a lot of that will depend on how the tournament plays out on sunday. augusta national is the star here. a lot of the players that have

come here -- this is the only one of the majors that those who follow both of, the only one on the same course year after year. that being said, tiger woods draws huge ratings regardless of who else is playing. you see ratings jump 50% when he is in the field. you won't have the attention unless you get a really compelling story. phil mickelson is way off. he draws a lot of viewers. unless big names like mcelroy goes on the list, we will still see some numbers on the weekend ove i'm sure. >> you talked about ratings, but what about advertisers? tiger is not there. do they feel shortchanged? >> that is the interesting thing about the masters -- it is a much different senior. they have sponsors and they are tournament sponsors and they only show 4 minutes of commercials per hour. it is unlike most of the other tournaments that air in the u.s.

, where you have one commercial after another here. ubs, otherbm, sponsors that really scale back good for them it is about a much lower key sort of approach to the advertising to the tournament. >> we have to talk about the wally pinetree, that named after the former president. it used to be on the 17th fairway in augusta, but this year the ice storm damage to the treaty on repair and it wouldn't be safe than it had to be cut down. what is the loss of the tree mean for the tournament and the golfers who had to navigate its branches every year? >> i'm looking at the stats and that whole reich says the 10th -- and that rank says that it is the 10th most difficult it is a difficult ho le.

don't get me wrong, over the coming years, i would totally expect -- the children and said they will address that -- the tournament has said they will address that hole. it will replace the eisenhower tree -- it won't the place the eisenhower tree. >> augusta officials announced donations to the masters tournament foundation. they fell 37% in 2012. what does the foundation do and why weren't benefactors as generous in 2012 as they were in 2011? didn't announce it. we looked through the tax records and found out that the numbers were down. happened was that 2011 was the first year they did it and most of the members gave up and donated to the foundation. second year rolls around, you couldn't go back to the well for the same members. the foundation started to grow the game lands -- grow the game plans. amateur tournaments, latin

american amateur tournaments. they give well above what the law requires them to do. it is a generous foundation. mike, thanks so much. appreciate it. when we come back, breaking news on jm. -- gm.

>> we have breaking news on the condition switch investigation. house committee has posted documents relating to the investigation. fred upton has released a statement reading "these initial documents reveal failures within the system. there is much to examine and we will continue to follow the facts." gm ceo mary barra told of steering problems in 2011, according to documents released by the committee. the national highway traffic safety in sought an

investigation of cobalt for airbags back in 2 -- 2007. and the gm engineer said it was "impossible to modify this switch." we will continue to follow the story and bring you more development throughout the day and in the next hour on "street smart." let's get you the bottom line on what is happening next week. my colleague yang yang is in washington with the preview print a big week of earnings to look forward to. that is absolutely right. earnings season is in full swing. big banks and financial services companies are at the center of it all. we heard from wells fargo and jpmorgan earlier today. citigroup reports on monday. bank of america and american press on wednesday. and goldman sachs and morgan stanley close out a shortened week on thursday, as u.s. bond and equity markets will be closed for the good friday holiday. according to a bloomberg survey, profits at the nation's five biggest banks likely fell to $16.5 billion, down about 14%

from the year ago quarter. it is not just banks reporting next week. giants.mes include tech who, google, ibm, and general electric, as well as beverage rivals coca-cola and pepsi. it may be a shorter week, but certainly packing a lot in those 4 days. yang, fed chair janet yellen has a busy week ahead of her as well. >> fed chair janet yellen has 2 speeches planned, one on tuesday to an event sponsored by the atlanta federal reserve, and another before the economic club .f new york that second speech comes just before the fed releases its page book summary of u.s. economic conditions 2 weeks before the next policy meeting on april 29 and april 30. other data out next week include u.s. retail sales. according to a survey, we likely

saw an uptick in march boosted by warmer spring weather. same story for housing starts and building permits. initial jobless claims, on the other hand, economists expect to see a slight increase in the newly unemployed. >> yang, one big date we can't forget about, april 15. tax day. >> that is absolutely right. tuesday march the deadline for americans to file their individual tax returns. here is a fun fact -- the irs expects to see yet another thisase in online filings year, predicting a seven percent drop in mail in returns. that should come with the good goodness for this last-minute who might beiler rushing to the post office on the 15th. they can expect shorter lines. >> yang yang in washington, thank you. russia, vladimir putin, and the ongoing tensions in ukraine will be the main topic of tonight's "political capital with al hunt." his guest at former national security advisor zbig br

p.m.ski, tonight at 9:00 only on bloomberg television. stay tuned to bloomberg on monday for a special day of programming on every thing from the future of the mortgaged eduction to how you should handle your bitcoin profits. america," all day monday on bloomberg television. i will speak to a senior research associate at the urban institute. we will focus on how pop-up tracks operation stores -- tax per operation stores are cheating unsuspecting fines. 2:30 p.m. monday on "bottom line ." another check of the market movers is on the other side of this break. "bottom line" continues in a moment. ♪

>> get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet and bloomberg.com. i am mark crumpton reporting from new york. "on the markets" is next. have a great weekend. i will see you on monday. >> 56 pass the hour, meaning

bloomberg tv is "on the markets." i am a olivia sterns pit momentum selloff appears to be back. we're basically trading at session lows across the board here as we are seeing stocks that were the biggest winners of the bull run last year selling off the most. they declines with big names in tech, they declines in social media stocks. speaking of social media, it is time for etf friday's. the social media etf's ran circles over the older tech etf's. but this year has been a far story.nt the highflying etf's are down big time could -- that -- are down big time. we have a way to play it more conservatively and you probably want to do that if you are watching the markets today. you have names like linkedin, twitter, downer 2, 3, 4% or more

today. just momentum is stocks selling off, concerned about the economy. that is part of what happened last year when the social media etf's were very popular and these were high data etf's. the others looked a little boring this year. these here it is flat but fun is but a good considering that -- this has etf's about 15% internet exposure and that is dragging it down a little bit. there is an etf that is no internet and all old guard tech, the tech dividend etf. >> how is that doing? >> it is about 2% or 3%. the theme of it -- these companies are not paying dividends so you have big dividend-paying companies in their.

cisco has no actual internet companies at all and it is kind of a sleeper hit. this is kick me out about a 2.5% dividend. we've seen overall and the equity markets is stocks that pay big dividends and utilities have been the best-performing sector year today. etf's ifa couple more you are feeling a bit conservative. if you look at tech it is not all bad. semi conductors are up. the best-performing tech etf is the spider semiconductor etf come up about 10%. his physically equal weight -- this basically equal weights semiconductor stocks. this one is basically, again, the equal weight, slight height beta, but it has avoided that. the other one is what you call smart beta etf. >> what does that mean? >> anything that isn't market cap weighted.

this uses growth and value characteristics to weight the portfolio. when you look at the tech etf's, there are about 40 of them. it also depends on the year. that is sort of the lay of the land right now. >> are you seeing any money flowing into any of these etf's? >> a little bit. they have been holding up better. the ones we mentioned earlier are seeing outflows. tech in general has been struggling. >> thank you so much for joining us. we will be "on the markets" again in the 30 minutes. "street smart" is up next.

>> for a moment the nazr turned to positive, but that's over now. i'm trish regan. "street smart" starts next. [captioning made possible by bloomberg television] captioned by the national captioning institute --www.ncicap.org-- welcome to the most important hour of the session. 60 minutes to go to the closing bell. coming up on "street smart," everything you need to know about the selloff sparked by high-valuation worries. i'm willing to