inflation. >> right. we will have wall street's reaction as well. it's time to go to peter cook. he is standing by with the fed's decision and statement, the first meeting of 2015. good afternoon. >> the fed is more bullish on the u.s. economy. there is new language about inflation running too low, but they expected to eventually rise toward the 2% target and they are factoring and international circumstances. let me walk you through the statement -- first of all, the new language on the economy. information received since the federal open market committee met in december suggests economic activity has expanded at a solid pace. labor market conditions have improved further. some of the new language on inflation -- inflation has the

longer run objective, large a -- largely reflecting declines energy prices. inflation compensation measures have declined. survey-based measures of long-term inflation expectations have remained stable. like a lot to say inflation is anticipated to decline further in the near term. the committee expects inflation to rise gradually toward 2% over the medium-term as the labor market moves forward and transitory affect dissipate. the committee continues to monitor inflation of elements closely. as a factor in everything they are looking in their assessment will take in a wide range of information including measures of labor market conditions indications of inflation pressures, and inflation expectations -- and new language -- reading on international and national development. the committee judges it can be patient and began to normalize the stance of monetary policy, repeating the line from the

december meeting and dropping the previous language about "considerable time," as expected. the vote was unanimous. they are more bullish on the u.s. economy. they see low inflation on their radar as a worry, but they still expected to move up to the 2% target, but they are looking at new factors. we will have to see how the market reads this latest statement. >> washington correspondent peter cook, thank you. george me this afternoon your, john herrmann director of interest-rate strategist at usb securities. diane swonk from the zero -- from mesirow financial, and scarlet fu. scarlett, we are seeing a move higher. >> stocks were gaining ahead of this announcement and they continue to gain on those advances. you can see here this is the s&p 500, the dow, and the nasdaq. this is when the fed announcement came out. we had a straight line up as the

fed says policy assessments will weigh international assessments, presumably meaning they will be more dovish given the turmoil we see in your. we are conduct -- europe. we have come down a little after that pop, but it is in a narrow range. in terms of the 10-year yield, this is the intraday movement of the 10-year yield. they were at their session lows and they got a lift, which means there was some selling of treasuries. >> all right, scarlet fu, the breaking news desk. let me go back to peter cook in washington. you were giving us the breaking news about the fed statement. something that jumped out at me -- you noticed the vote was unanimous. is dr. yellen using her powers of persuasion to develop consensus on this fed? >> i am sure she has not been hurt by the fact that the rotation of the federal reserve regional bank president -- the three dissenters from last month

are no longer voters, so that helps around the table. the fact that they are all on the same page as we begin the new year is a strong symbol that there is not a tremendous amount of dissension within the ranks of the voting members of the fomc. that is critical. maybe janet yellen's position is not only the predominant position, but there is some unanimity around the table. there is a lot to digest. they are feeling good about the u.s. economy. there is improvement there. there are watching inflation. there are reasons to be patient. perhaps more patient than markets first thought. doesn't we are moving cap -- does it mean we are hoping past june question mark you could take information and subscribed to both of those ideas. >> diane swonk in chicago, is june a lock because of the strength we see in the u.s. economy? >> i do not think june is a lock

at all. i had stayed on september, and i do not think you will get much lift off. it had unanimous votes because it had everything but the kitchen sink. it acknowledged the economy was strong in the second half of the year with solid growth. that is one of the stronger verbs they have used to describe the economy. also talked about inflation -- wages not being as strong as they could be. there really was everything for everybody in this statement. it was a more encompassing statement, and instead of waiting for the minutes, we got the concern -- the fed is hedging downtown -- downturn risks. acknowledgments about uncertainty is front and center. you got unanimous because you had everything but the kitchen sink in the statement, and you had flexibility within the statement that nobody has to move anywhere anytime soon, or if conditions change, they could. they got everything they want right now. >> john herrmann if the fed

does look past inflation and focuses on interest rates later this year, would that be the right strategy? >> that will be a big question mark. what diane is pointing out -- we all know it. we have built in negative inflation the next three or four months. what is critical is what is the trajectory for core inflation? we think there is a chance core inflation grinds lower over the next six to eight months. >> how much lower? >> more consistently, below the 1.5% growth rate. you drift away from the 2% target. wages -- we will have to watch which is closely on the friday number. just watch all of these things. we owned a forecast for a long time that the unemployment rate would come down superfast, but we are the first to admit that over 55% of the decline is due to structural problems in the

labor market so the fed really cannot be happy with these kinds of things, and it calls into question where is this number -- maybe it is within the 4% reading not the 5.2%. >> diane swonk, the strongest growth in the united states in 15 years, but growth in europe is weak. well ahead would -- will the headwinds make their way here? >> the question is the strong dollar. it is starting to show its way through. that is a reduction in pricing power. i agree, core inflation could go down toward 1%. that is a full percent below what the fed would like. they are going to need some -- need to see some firming to get through the oil, although i do not think any to raise rates up to 2%, though some of the fed would like to see that. they will do lift off before we get to 2% as an anticipation

but this makes it difficult, and wake celebration is another place -- when you have a strong dollar, it is harder on profits. this is something the fed will have to watch closely, and it puts them into reaction mode. they do not want to look to preemptive with the rest of the world easing further. >> i echo some of those ideas. this year will be a little trickier. it is not a straightforward slam-don't year. there are a lot of moving parts. you do not want to jump into sin. -- two soon. i think it is going to be a little trickier on the call on the economy than people are suggesting and we still have decent growth built and, decent -- built in, decent job growth -- that kind of stuff, but at the end of the day we need to see firmer signals from wages. i would strongly prefer to see a leveling off of the participation rate in the labor market. that just does not seem like it

is going to happen anytime soon. >> scarlet fu, you have been watching the movement in oil down nearly 4% right now. >> down nearly 4%, and we are at the intraday lows. $44.44 was the low we had reached a couple of weeks ago and we have match that with the fed announcement. let's show you the crv index -- it measures commodities overall. here is the backdrop for the decisions. before the december 17 fomc meeting, the crv was at 2.38 right about here. today it is at about 2.15, the lowest since march of 2009. when they talk about how the fed is gradually seen inflation moderate toward the 2% target you cannot help but look at the deep drop in commodity prices overall. >> in line with this stuff, back when we began to be worried about inflation august september of this year -- at that point we sent the 30-year bond yield could grind below 3%

and stay there. one month or so ago, we felt more confident in that view and we said if the 30 year bond yield -- it could get to 2.5%. there is a chance they could grind lower from where they are now. i think the bond market is telling you something. it is not just a flight to safety. it is not just the fed's manipulation of the backend of the yield curve. there are investor concerns reflected in these lower yields. >> diane swonk you mentioned the dollar a few moments ago. we are seeing the strong dollar, and that is impacting profits and investment strategies of u.s. businesses. are they in danger of erasing the gains they made in 2014 because of this? >> in terms of profits, we had slow profit growth in 2015 because of the dollar -- about 40% of national public we companies get profits from abroad. on the flipside, where we will

be surprised, if we do not get some crazy thing out of russia, which is a possibility -- europe benefits more from lower oil prices and their currency movements more than we do, so the ecb could get credit from the stabilization and a strong dollar for us, that does a road pricing power, and although we have minimum wages going up january 1 and 29 of the 50 states are pushing that up, that is not what the fed wants to see. they think we need 3% wage growth to get to 2% inflation. i do not think we will see that this year. the other point that was made about the natural rate of unemployment drifting below 5% -- there are some that do believe it is below the 5% threshold because of the structural problems in the labor market, and proof is in the pudding. people are saying you cannot get workers -- pay for them. if you really want a worker, you

can pay up for them, and they are not. >> diane swonk in chicago, john herrmann in new york, as is scarlet fu. peter cook is in washington. we will be back with more round-table discussion on the fed on the fed and the overall economy when this special edition of "bottom line" on bloomberg television continues in just a moment. ♪

>> welcome back. it is 15 minutes past the hour. let's check world news -- word from standard & poor's that greece's credit rating might be cut as the greek prime minister alexis tsipra has his first crisis after a few days enough. greek bonds are falling, and so is the stock market. alexis tsipra plans to avoid a standoff with european creditors. he says he will not be forgiven if he betrays his promise to renegotiate the greek bailout. israel has responded to a dental week hezbollah -- deadly hezbollah attack by firing

shells into lebanon. it is the group's deadliest attack against israel since 2000 experienced spanish peacekeeper in southern lebanon was also killed in the border violence. officials in jordan may be ready to meet the demands of the islamic state group that has been holding a captured jordanian pilot since december. jordan is reportedly ready to release a female iraqi prisoner who was involved in deadly hotel bombings one year ago, but there is no -- 10 years ago. there is no mention of japanese hostages. let's get back to the roundtable. joining us, john herrmann here in new york, and in chicago, diane swonk, chief economist at mesirow financial. also with wall street reaction, chief market correspondent

scarlet fu. thank you all for staying. john, the fed and the speed or lack thereof in which they will make this decision of when to raise interest rates -- the consensus seems to be sometime this summer, but the economy by all measures seems to be picking up strength. inflation is still below 2%. will that change the fed's calculus? >> i think a little bit. the u.s. economy is the most resilient in the world. that all does suggest normalization of rate over the next couple of years. we highlighted some of the years that suggest they might go more slow, retro, that kind of thing, but let me point out something on overseas -- one of my clients is a top trader at a central bank in europe. he said the biggest thing he is worried about this coming year, 2015, was the syriza party in

greece and the party in spain. that is what we have to put on the radar screens this coming year -- political uncertainty in europe, volatility, concerns about the greek exit, all of this stuff. it will be a challenging, uneven here. -- year. quite diane swonk -- >> diane swonk's, the fed assessment -- does it have to do more with the sluggish growth in china russia's weakening economy? >> the fed also wants to be accurate about what they are talking about in the second half of 2014 does look like -- taking up the second quarter, which was a snap back from the first quarter with the polar vortex -- the second half of 2014 looks at the strongest six months in 2003 since 1999. we had fundamental growth. it is a statement of what the

reality is that there was growth, but the problem is what will growth be. i think growth will be good this year cracking 3% easily, the strongest year in a decade for overall growth. we are moving in fits and starts, and we are risk -- risk on investment is certainly there. the durable goods data was miserable yesterday. i think they have to acknowledge that. this statement had, like i said everything but the kitchen sink. it was seen as an update -- upbeat statement on what the economy has done, but the economy has done better, and the question is what will it do and what will inflation the? >> as diane is pointing out, we had this uneven period of growth, but we ended the fourth quarter with disappointing retail sales in capital spending. we're not getting the evenness that we like to see and that we

all count on, especially those of us that have been in the business for couple of decades. >> just a couple of decades. >> more than a couple of us -- couple for some of us. >> scarlet fu, what are you seeing? >> when you look at the dollar against the yen, you can see the dollar weakened to it session low. it is making a recovery, but it is within a narrow trading band that we have seen all day. over a longer term period say five years, it is still a strong dollar versus yen story. i cannot help but think that as you compare with the central bank is doing here in the united states versus what the bank of japan is doing, people's bank of china is expected to do in a couple of months, there is a

huge divergence -- that move in opposite directions. >> john herrmann how much upward pressure does the ecb strategy put on the dollar at this time? >> i think it did a lot. people did not move up expectations for european growth and performance we saw a big surge, for example, in the dax and we saw yields plunging in the euro zone. even today, overnight, we saw a very disappointing participation in bond auctions in germany, so, what it suggests is investors are moving into equities. for example, in germany, they are moving away from there, you know, sovereign debt. we also see some flows into the u.s. bond market, and that is appreciating the value of the dollar. >> all right, john herrmann diane swonk in chicago, my colleague scarlet fu. thank you all so much. we appreciate it. we will check the other top stories when "bottom line" on

bloomberg television continues in just a moment. ♪

>> first. bloomberg. >> welcome back. this is "bottom line" on bloomberg television, streaming on your tablet phone and bloomberg.com. i am mark crumpton. new england is digging out from the blizzard that dumped more than two feet of snow on boston. 70 mile-per-hour wind was reported in nantucket where virtually every resident lost power yesterday. the public transit system is running today and flights have begun arriving at the logan airport. shares of apple are surging after the company reported a

record setting $18 billion profit. credit goes to the new bigger iphone. they sold 75 million of them in three months. the burger chain shake shack is being valued at 65 -- six and $75 million. the ipo is expected tomorrow. that is a look at the top stories we are following. coming up, college admissions racket -- we will have details on how some schools do it, and what students can do to avoid it. stay with us. "bottom line" on bloomberg television continues in just a moment. ♪

>> welcome back to the second half-hour of "bottom line" on bloomberg television. i am mark crumpton. thank you for staying with us. the u.s. federal reserve maintain its pledge to be "patient" on interest rates, and boosted its assessment of the u.s. economy and the labor market, even as it expects inflation to decline further. let's show you how the equity markets are reacting. the s&p 500 is down nearly .4 at 2012. the dow jones industrial average is falling as well at this hour

down fractionally at 17,347. the nasdaq composite impact is showing strength, just like me up two points right now at 4683. it is time for the commodities report. su keenan is in the newsroom with details. >> we see oil moving to its lowest after the fed decision dropped. it drop another percentage coming off of its rate. it was already down more than 3%. this was already a drop. the fuel supply rose to the highest in three decades. check it out -- right across the board. gasoline futures erased earlier gains. the big picture we see with the latest supply report from the government is that there was a buildup of more than 9 million -- almost a nine-million-barrel gain last week and they were practically "choking" on this stuff, to quote one analyst. oil started picking up steam as

a big decline or. old was down ahead of the fed decision. these are trader positions. it is now off of its low of the day. it did not help that goldman came out with a call that commodities, pretty much, are the worst for what they see near-term. >> we see push back on president obama's plan for offshore drilling. >> we talked about that yesterday -- it probably was to be expected, but even from those favoring offshore drilling, we are talking about opening up in area 50 miles offshore as perhaps too far out. cluster are real hurdles, and i think they -- >> there are some real hurdles, and i think they are unnecessary, but the 50-mile limit. we have to go out 50 miles to begin the harvesting of these resources. that seems arbitrary. also, the size of the testing will be delayed, so we will be delayed until at least 2021

until we have a lease sale. >> on the lease sale, government agents will be taking public comment until the end of march. >> su keenan, thank you. january college admission deadlines used to be sacrosanct the more schools are offering extensions. janet lawrence looked into these trends. why are colleges doing this? >> some say they want to give kids more time to enjoy winter break. the university of chicago said kids should be enjoying delicious cookie after delicious cookie. >> you are kidding, right? >> i am not kidding. you hear from kids, and they are skeptical. it means being more selective and prestige for colleges. >> is this a new trend? >> we have seen colleges extend deadlines for things in the past like hurricane sandy and major

snowstorms, and last year the common application had technical glitches, so we have seen extensions for those types of reasons but this is the first time we have seen widespread extensions for no apparent reason. >> i am trying not to be a cynic, but i'm thinking it cannot be out of the good of their hearts. what is the advantage for the colleges? >> colleges need to show they are very selective. people do pay attention to these numbers. we report on them when they come out in april. you know, for things like "u.s. news," they do use a measure of of selectivity, and when bond rating agencies look at colleges, they look at application numbers to see if there is a lot of demand. >> there are a lot of high school students that do not know if they want to go here or someplace else. they are on the fence. a lot of colleges want to get the students off of the fence and into their doors to finish the application process and decide to get their higher education there. what are colleges doing to lower

these students in? >> they are sending them lots and lots, and lots, of e-mail, and if you are on the other side -- one student coming and getting 35 e-mails. >> they are getting spam. >> they are getting spam. 35 e-mails since october. they want to feel wanted. some schools are clever. washington university had a clever column. duke had a funny 1, 2, something to the order of your academic experience is limitless at duke, but your application deadline is not. the university of chicago had a quite clever top 10 list of why you should get your application in by january 5 the extended deadline, so the colleges did have some fun. >> what should students do? >> they can opt out. >> on the flip side, if they opt out, are the colleges saying that means you are not

interested? >> yes, but chances are if you are getting sick of these e-mails, and one student said it was getting creepy you probably do not want to be hearing from these schools. >> is it wanting for a student to say yes, i have good grades but you sounded desperate. >> yes. kids do not realize how they are getting the e-mails in the first place. when they take the sat there is a section that says do you want colleges to know about you, and they do not really understand that their names are being sold to these colleges. >> one week after president obama announced a proposed changes to the 529 college plans, the savings plans, he says he is going to scrap the plan. the white house says fewer than 3% of families use the accounts and 70% of the money in them comes from families earning more than $200,000 a year. if that is accurate why is the

program so popular? >> it seems like an easy way to save money for college -- you can take money right out of your paycheck. families like these because you can let the money grow without paying capital gains taxes. for most families, it is just another way to put money aside for college, rather than keeping it in your bank account, and there are some tax advantages to it. wealthy families, middle-class families, any family that can save liked this program because it was an easy way to earmark money for college. your grandparents can put money in it as well. bloomberg's higher education reporter, janet lorin thank you. you can read janet lorin on our newly launched business website on bloomberg.com. the credit card companies look to make a move into cuba. that story and more when "bottom line" on bloomberg television continues in just a moment. ♪

>> if this is time now for today's latin america report -- shares of petrobras, the company at the center of brazil's largest case fell after three months. petrobras met a january 31 creditor deadline for the release of unaudited earnings, but more than a two-month delay in audited numbers is shutting markets at a time of six-year low oil prices. american express says it plans to start doing business in cuba after the obama administration lifted a ban on u.s. banks and credit card companies operating on the island. they did not say when people could use american express cards because the company does not have terminals or merchant relationships set up in cuba. lastly, mastercard became the first u.s. credit card company

to say it would handle u.s. transactions in cuba. that is your latin america report for this wednesday. coming up, we will look at how the markets are reacting to the fed's decision. that is next ♪. ♪--. ♪

>> welcome back. 45 minutes past the hour, let's check world news -- jordan is willing to swap a female iraqi prisoner for a jordanian pilot captured by streams from the islamic state. the woman was involved in deadly hotel bombings in 2005. this goes to the position of the united states of not negotiating with extremists. lebanon officials say israel has responded to a hezbollah attack by firing at least 50 artillery shells into southern lebanon.

the attack that sparked the violence killed two israeli soldiers. it is the deadliest hezbollah attack against israel since 2006. facing its worst economic crisis in a decade, the russian government is detailing spending cuts and everything except military and social programs. russia's economy has been battered by energy prices, a weak ruble, and sanctions from the west over the ukraine. that is a look at world news. we will have another updated 3:15 p.m. new york time tonight on "charlie rose" on bloomberg, but seelig -- bud selig. he stepped down as a commissioner of baseball. he reflects on the game and his legacy. bud selig joins charlie rose tonight on bloomberg at 7:00

p.m. and 10:00 p.m. new york time. a patient federal reserve -- the fed says they are sticking to their decision of timing on rate news. for more on the decision "street smart" anchor trish regan, and also karl rove to donna -- carl riccadonna. trish, that set with you. no surprises. >> no surprises, but i do not know how they will do it. in a global economy where u.s. workers are not making any more money adjusted for inflation than they were years ago, you still have a lot of challenges out there. i think they had an opportunity a while ago, and carl, i would be curious to hear your thoughts on this, but i think they had an opportunity to raise rates earlier. they did not take it.

now they are in a vicious cycle where we are the only game in town. if they raise, the dollar will go through the roof and that will hurt exports. >> carl riccadonna we see that now because after the ecb stimulus decision and the greek vote, we see a stronger u.s. dollar. >> the fed hinted at this. while there was not a lot of information, two parts are worth noting. they added international risk to their list of concerns, code language for we are watching the strengthen the dollar developments in europe. >> was it always code language that said we are paying attention -- also code language that said we are paying attention to this and we can pivot if we want to because we said we are looking at developments, geopolitical, and otherwise? >> well, that is one more reason for them to move slower. they did not want to take the media timeframe off of the

meeting, but highlighting international risks was a step to move later. the other moving part is the inflation language. they were more in a key and linking low-inflation to energy prices than they were at the time of the december meeting. this could be a sticking point for the fed. they will be surprised that core inflation and wage inflation will be weaker than they anticipated over the next six months. >> i agree with you. >> they will not have the confidence. >> there is really no inflation to speak of in the economy. if you look at the jobs report we saw continued weakness on the inflation front. let's not, by the way, forget this is janet yellen we are talking about, right? a rather dovish fed overall. they would rather be lakes to the party then run the risk that they shoot the dollar up even higher and hurt exports and this economy and send us back into recession. so it may not be the best policy right now, but it is all we have, and they will likely staying the course.

>> trish is focusing on an important point here -- taking away the punch bowl. you can take away the punch bowl in a number of ways. one is through fed rate hikes. the other is through a stronger currency. manager conditions are tightening as a result of the stronger dollar. it is doing a lot of work for the fed. >> trish mentioned weaker inflation. let us assume for the sake of argument that we are halfway through 2015 and inflation is still below the 2015 target. does that mean the fed would necessarily not move on raising interest rates because of the? >> it does not mean necessarily they will not move. they have talked about taking the leap of faith and confidence inflation will turn around. we see a significantly lower unemployment rate, that will give them the confidence that it will turn around, but of course inflation is slipping due to energy prices, a stronger dollar, that would undermine the confidence. >> let's place -- let's face it, deflation is much harder to

fight then inflation, and that is what we are looking at. we are looking at that in europe. the danger is will we see that at home? again they had an opportunity to move more aggressively on rates, and i have said to you before -- you are a journalist we are procrastinators, why would you buy something today when you know you can buy it tomorrow? we know the interest rate environment will continue to be at record lows for the foreseeable incher. in some weight -- foreseeable future. for some ways, there is less incentive. >> remember, new york fed president dudley said he wants to see the economy run a little hot before he starts to normalize rates. if core inflation slows further between now, and, let's say, mid-june, for instance, that is not running hot. >> anything but. >> "street smart" coming up. >> yes, we will talk more about this announcement, and how you

should be thinking about it as an investor, and what it will mean for the currency markets and the stock markets. >>. >> this is one of those things that will continue to play itself out between now and the end of the year. before i let you go, bloomberg intelligence is parsing these numbers. did investors hear what they wanted to hear, did wall street hear what they wanted to hear? >> there was not much reaction so i think this was largely in line with expectations and largely in line with what the fed wanted to accomplish. they did not want a repeat of december where we had the market zooming in both directions based on the reaction to the statement and the press conferences. >> then again, i think this was national bank taught us all that we should not necessarily take a central bank at its word. >> bloomberg intelligence economist carl riccadonna and

trish regan, coming up at the top of the hour. scarlet fu will have another edition of "off the charts," on the other side of the break when "bottom line" on bloomberg television continues in just a moment. ♪

>> today marks the busiest day of the busiest week of earnings season so far. in less than two hours we will hear from facebook and qualcomm, to name the highlights. scarlet fu is back at the breaking news desk with a breakdown of all we have learned so far. >> good afternoon. yesterday was a reminder that

our names matter because all of the abstract moves we see in the currency markets in the commodity markets have real-world implications for chief executives and companies. in terms of where things stand right now, we are more than one quarter of the way through the earnings reporting season. 146 companies in the s&p 500 have reported, and on the earnings line, 112 companies had beat estimate, more than a three to one margin. on the revenue line which people prefer because it is a cleaner read of fundamentals -- you cannot use buybacks to inflate the revenue money -- 80 companies beat, and 65 companies missed. that means the companies that topped earnings rest of it -- estimates are missing. more than two of every five that reported is missing on the revenue line. >> companies have been gaming earnings forever, professional

at under-promising an over-delivering. how does it compare historically? >> you would imagine that they need earnings estimates, and that has been the case, but the amount by which they are beating estimates on average is shrinking. let's take a look. on average, s&p 500 earnings are beating estimates by 4.7% in the fourth quarter. that is a moderation from the 5.1% rate in the third quarter, and a 5.2% rate in the second quarter. the first quarter of 2014 was the high point with a 5.9% increase. i just checked and text companies are beating analyst estimates by the largest margin, 10.5%. our apple was a good sign of things to come from the sector overall. >> it is tougher for companies to finesse revenue numbers. >> as you might expect, companies not eating sales

estimates, -- beating sales estimates, they are not doing it by as wide a margin. in the fourth corporate -- quarter, companies beat by less than 1%, better than the third quarter, but a considerable drop off from the second quarter at 1.5%. overall, when you look at the market today, the tone is different this afternoon than it was yesterday at this time. does that mean that apple's record results change the tide in terms of earnings? julian emmanuel at ubs says it is unlikely because the majority of energy names -- exxon chevron -- they have yet to report and they are expected to post year on year declines in sales and profits when they announce fourth-quarter results. so, you could probably expect more turmoil just ahead and by the way, he also noted companies are missing on the top and bottom line, not making the

grade on earnings estimates, underperforming by 3.6%. >> scarlet fu, our chief mark's correspondent. thank you. get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and bloomberg.com. that does it for this addition of "bottom line" on bloomberg television. i am so chuck told -- choked up that we are leaving. i will see you tomorrow. "on the markets" is next. ♪

>> welcome everyone to the most important hour of the session. 60 minutes to go until the close. i am trish regan. this is "street smart." the markets are fluctuating. apple shares are climbing. while continuing its slide, showing inventory has advanced to the highest level in data going back three decades. plenty of supply out there. we are counting down to earnings with facebook and qualcomm. "street smart" starts now. ♪ ok, first, here are the top stories we are watching