>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. stephanie: changing of the guard at credit squeeze. the ceo is out, he is being replaced the head of one of britain's biggest insurance companies. erik: how low will be euro go? parity with the dollar. stephanie: no ceilings glass or otherwise. and that is the foundation she runs with her husband bill --

that is the goal of melinda gates and the foundation she runs with her husband bill. erik: let's begin this hour with the top business stories of the morning. u.s. stocks have given back their gains for the year. the major indices are about 1% in the 30 minutes of trading. they are unchanged right now but they were still up in the nasdaq, you can thank apple for that. the fed is moving ever closer to a rate hike. the shares of the credit sq suisse are rising.

one of the few ceos of a global bank to survive the financial crisis and its aftermath. barnes & noble missed quarterly profit estimates last quarter and its shares are falling. the company saw sales rise over the holidays, revenue was almost $200 in same-store sales, about 2%. college student bookstores -- >> back in 2008 barack obama campaigned on hope and change. now americans want even more change than they did back then. they say they were prefer a candidate that will seek even

greater change. they say hillary clinton returns to the policies of the past and other said the same thing about jeff rush. -- ejeb bush. the number of americans who live in a household with at least one gun is lower than it has ever been. only about 60% of americans have a hunter in their household. stephanie: more now about the changing of the guard at credit squeeze --credit suisse. if i am one of the lieutenants i have to be thinking are you kidding me? these guys have been at the bank for decades, and they have been underpaid compared to their peers for the last few years. the stock has underperformed.

is the board saying none of your cutting it? >> at the same time, it is interesting, i spoke to the new ceo, and he has spent years telling me that we are not as risky as banks, and now it is funny that they are moving to a bank. this would have been one of the first times that they hear from their new ceo. i tried to get from him what he had planned. he said he knew what he wanted to do but would not give it away. have a listen. >> it is really a very good brand, that is something you can work with. a lot of good people, good staff. >> what does that mean for credit suisse?

it may mean that he is not going to focus more on asset management. he is an expert in that middle class well, tapping into asia. i think he is going to take a couple of risks as well. erik: did he give you any hints on that level? the swiss have been more rigid about bank capital than any regulatory regime in the world. a constant source of pain for brady dougan mostly because he was trying to make a go of it in the investment banking business. do we have any sense that the new ceo will split up the bank, the private bank from the investment bank? >> what we tried to get out of him was very unusual. prudential had earnings, so when we asked him about it, he said

we will remain tightlipped because we need to speak to the people. he was too polite to tell us, basically. >> i have to listen as i come in. someone told me once that i have two ears and one mouth, and i try to use them in proportion. for the first month i'm going to listen. i have a lot to learn. >> that is quite telling of how he sees his role now. he said asked me what i'm actually in charge, because that will make a difference and i can tell you what i think. i have known him for about six years since he was the head of prudential. he actually tried to do a huge deal, and by a company that was worth 35 billion dollars. it was a failed attempt, but he said you have to take risks and take them within the first six

months of the job because shareholders forgive and forget. if you leave it too long, they do not forget and they do not forget. -- forgive. stephanie: he was communicating to his team that they were so well capitalized, but i have not done -- they have not done much. >> when you speak to a lot of investors they say it is time for a change at credit suisse because they are so under pressure. they've to deal with all of these bank secrecy laws. he seems to be following in his

former pattern. what is legacy will be remains to be seen. he is turning to asset management private wealth, and we will find that out pretty soon. erik: i am just looking at a chart of the stock performance and it is extraordinary. is it possible to put a finger on what investors love about him so much? >> he is very focused on asia. he probably knows more about asia than any u.k. ceo. he saw the opportunity. he looked at the private wealth over there and said the skies these guys need prudential so they can have insurance. going after asian growth has

paid off, and shareholders have been happy with him so far. we also asked him about that and he said that is just a nice going away present. stephanie: thank you. i have spoken to in front of credit suisse people who are surprised that they have been so frustrated and are excited to have a change. erik: when we come back, one euro equals one dollar? we are very close to parity. stephanie: why women still have a long way to go. i spoke with one of the worlds wealthiest philanthropist about what she is doing to change all that. ♪

stephanie: welcome back to market makers. it is time to bring you up-to-date on the top stories of the morning.

there was an unexpected increase in sales at barnes & noble last quarter, because it was so cold. the largest store chain says that same-store sales rose almost 2%. they are preparing to spin off to college division that would leave the company with its retail chain and did note the reader unit. hillary clinton will finally talk about the e-mail controversy that has rocked her potential presidential campaign. she is expected to make a speech today. it was reported last week that she used a private e-mail account or conducting official business as secretary of state. a growing number of democrats have urged clinton to take on the issue and put it to rest. maybe money can buy you love because steve, is looking for a new edge. they have hired about 30 people to work on a big data project.

they will build computer models that collect publicly available data and analyze it for patterns. last year they shut down and paid a record fine on claims of insider trading. stephanie: you can call it the incredible shrinking euro. edging ever closer to parity. erik: the euro and the dollar have not traded 141 since 2002. this is great news for americans planning a vacation in europe not so good for companies wanting to sell to europeans. sebastian, why is everyone so fixated on parity? >> it is a technical analysis. is all about beautiful numbers and things that and process -- impress us. .

parity is something that has no meaning whatsoever, but it is nice. erik: the more difficult it becomes for american companies to sell dollar-denominated services to european, they have more buying power. >> they are built on internal consumption. we are boosting the u.s. consumer, it will help the eurozone. in my own writing -- it might all be good for the u.s. the better the eurozone does the better we will do. stephanie: the fact that we're watching the euro dropped is not making you construed -- concerned? >> people might not be well hedged and that would be the question you would ask why they did not hedge properly. i think for the development market it is not too much of an

issue. this is where they are really exposed if they did not do a good job. stephanie: is it too late for me to try to head if i am a corporate ceo today? >> no. the risk of parity is pretty significant where the market is targeting it. we have a target of 105. there is a tremendous amount of pain market if we reach parity. a lot of people are willing to hold their positions as it addresses us closer -- agesedges us closer. if you look at the eurozone what the u.s. has accepted is that they are resetting the button in terms of labor. european labor is too expensive. they have basically reset the

level. that is accepted by the u.s. you can see the currency wars in russia, and in the case of the rest of asia, there is income management of currencies. they might let the currency we can, and that would not be a currency war. erik: what is responsible for the move we have seen in the past couple of days? is at the beginning of quantitative easing by the ecb? or is it the fed expectations? >> what you're seeing is a very mechanical relationship. you can see what happens if you buy long dated german or french treasuries. as they go lower, people who need to do best out of these markets, and do not have any place to put the money, they

have to sell the euro and by u.s. treasury. the mavs involved are tremendous -- amount involved is tremendous. part of which is in negative territory in terms of yields. that has to go somewhere. you either riskier asset -- risk your asset in the eurozone or the united states. it will have a significant impact on orders with low value added in the united states. it is a small tear of the corporate spectrum. not too much of a credit risk issue, but it is a reminder in the market that the united states has been easing for a long time. the dollar is very cheap. productivity is very good, but we will have to get more productive going forward. that means some marginal deflationary pressure. erik: we were talking about this

as we sat down why the pressure? >> it is the consequence of people looking at whether or not to buy this because of the higher interest rate. they are not looking at the balance sheet. this is the buying anything without looking because we have to sell something else. stephanie: or do people see this as a standalone, not subject to the craziness? >> it is an environment where everyone is trying to weaken their currentcy. it is just not looking very good. erik: if you were in a position where you had to make a decision right now about the future of the euro over a certain time, where we going to be six months from now? >> probably as parity, or the

$1.05 region. one should be quite wary of the fact that there is a tremendous amount of acid for that trade. it is rare that you had the second half of the year before getting a squeeze out of the acquisition. stephanie: investors, not corporate, how nervous are they right now? >> a lot of investors are long dollar. they are making a lot of money. the people who are in trouble are the ones who have to hold euros and who cannot get out fast enough of these positions. european asset managers, and for reserve managers were old very large amounts of euros -- who hold large amounts of euros. erik: thank you for speaking with us. stephanie: we will be back after the break with details on today's stock selloff.

the party that was going on yesterday is over. ♪

erik: we are about an hour to the trading day, and it is a stock selloff. our senior markets correspondent, julie hyman, is the a closer look at the bloodletting on the street. >> it just the worst since some of the down days recently. the thinking has turned toward

the federal reserve and when it will raise rates. that is a having a negative impact. a selloff of more than 1% and evening as the day goes on. we are not seeing that thinking about a difference in rates arise from there. the outlook for rates reflected in the dollar. the sectors that are the biggest drags on the s&p 500 today is he so the so-called cyclical sectors. financials consumer discretionary stocks all of those are dragging down the major averages. that selloff does gain momentum as we get into the session. erik: thank you. the latest from julie on the

markets. stephanie: just yesterday milton berger, a guy who is not about momentum and headlines, he is all about history, data, statistics, he things the fair market is -- bear market is coming. today we have to take a break. when we return, making the world a better place for women and girls. i talked all about that with melinda gates. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. erik: good morning once again. this is "market makers." back to the bulletin, bring you up to the speed on the top business stories. stocks are taking a dive. as we speak the dow and the s&p 500 or down -- all three industries are down if you add in the nasdaq.

they have given up all of the gains for the year. nasdaq, thanks to apple is still up about 3%. credit squeeze announced that their longtime ceo will be leaving in june. he will be replaced by the prudential ceo. >> i think it is a great institution, a phenomenal brand. we deal many issues as ceo, and there are opportunities and potential there. erik: he has been under pressure to shift away from investment banking. in the end, general motors decided it was better to work with very wilson then to fight him.

he spoke with betty liu this morning and said he was impressed by how well they responded. >> it is critically important how they responded for the marketplace. the cost structure is much lower, the balance sheet is much better. they laid out for the public how much cash they need to whether -- eaweather another recession. erik: he will get back $5 billion in stock rather than the $8 billion he was asking for, and not get a seat on the board. twitter acquired periscope live streaming and video. users will be able to explore the world through someone else's eyes. the u.s. ambassador to south korea has left the hospital five days after he was slashed in the

face and he is directed to return to work as soon as possible. he required 80 stitches to close the wound on his face. and in pro basketball, chris bosh plans to start playing again in september. his season was cut short because of blood clots in his loung . erik: a new report urging equality for women. stephanie: weiland concludes that there has never been a better time to be born female so much work still remains even in the united states. i got a chance to sit with the one and only mainland the gates -- melinda gates to talk about the challenges to be addressed. melinda: we have a long way to

go to get women empowered economically. societies thrive all over the world. when you look at the pay gap that still exists, or the number of women participating in the workforce, property rights women are still left out in many countries around the world. stephanie: could you come away with a reason if you look at the data? melinda: the idea was to really pull it down so we could look country by country because there is no one-size-fits-all in this. if i had to look at one magic bullet of where we should invest, over and over again it was glaringly simple, education. we've gotten girls to the same level of boys in primary education, but we have not invested in secondary education.

making sure that they persist in education. if you can do that, you open up a lot for a girl. stephanie: betty: 50% of college graduates are women, but they are virtually nonexistent in these jobs of the sea suite -- c-suite, . melinda: we need to not just mentor them, but sponsor them. hold an interview loop open until you have enough qualified women candidates to consider. stephanie: if a woman decides to have a family once the kids get school-age things are hard. oftentimes the family decides that someone needs to go home. his society ready for the

conversation of either the husband or the wife? melinda: i know many households were they chose to put the woman first. that takes courage, and you have to have a man who once to stay home and a woman who wants to give up that role. the only way we get there is for individual families to make those decisions and to have many more for making that decision to where it becomes an ok thing to do. stephanie: i think of myself as a very forward thinking woman, and yet i still have that anxiety when a husband tells me he stays at home. melinda: i do not think we're there is a society. we need to work on empowering women until we have lots of different styles of women and far more women as ceos and in congress. stephanie: turn the clock back.

it is studied science and engineering as well as business when you were in school. did you think that years later there would still be so few women in these fields? >>melinda: ima computer science major, and in the 1980's there were 37% of undergraduates that were women studying that. now it is down to 18%. they do not see the tech center as something that is welcoming. but in medical studies and law degrees we're graduating more women than men. stephanie: who needs to be doing that work? melinda: it is everybody. the media, when they turned to an analyst or next four, they turned less than 25% of the time to a woman. that is a problem.

businesses need to say to themselves, why do we have women stagnated at certain levels? what is it we should do? is it something about our family leave policy? are we not looking a qualified women candidates? across all of these places we need to do more. in the government sector we need to grabpple with paid family leave. it is crazy that we do not have that in the united states. stephanie: is there another country outside of the united states that really needs to work on this? melinda: low income countries still have a whole host of issues, whether it is property rights, or access to a loan. pridemarily in africa women

have farms, but if they do not have access to the right seeds, they will be vulnerable. as i travel around the world, i think about what those women need and what the countries ought to do. then i ask myself about the united states to see if we are far enough along, and they keep coming back to know we are not. stephanie: if i ran a business that only had eight employees, and i had to pay them for a year if they went on maternity leave, it might well be out of business. melinda: we are not even leaving in the government sector -- leading in the government sector and if you do not have paid family leave in that sector, no other country is where we are in that issue. stephanie: are their victories

in the daily? ta? melinda: maternal childbirth death has been cut by more than half. we now have that opportunity to cut it by two thirds again, that is incredible progress. we are still not serving well enough. to not count their unpaid labor, that they take care of their child, or an aging parent, we do not even look at that. that really should not be. as a society, we do not value that work, but we know that is an important time of flight -- of life, when you're young or elderly. stephanie: what did you think? erik: i like what she has to say. it reminds me of an interview --

first of all, she has a global perspective. it reminds me of an interview that i was listening to this weekend with gloria sign steinem. she says can you believe it, it is 2015, and we are still fighting the battle for equal pay for equal work? stephanie: when you look at what women get paid in the united states paid leave, we treat our women worse here then what happens in developing countries. your stored in -- you are looking at this data, and saying you're in despair. with the data, they now say the lookahead is 20 years. is that going to change the game if we have a woman president? not really it takes time.

we will have more from my sitdown she worked closely with hillary clinton, the question is that going to translate to a support for a presidential run? ♪

erik: it is 45 minutes past the hour, time for an update of your top stories. going into the cyber security business, they agreed to by blue coat systems. their owner is took them private three years ago. baidu says just like google and apple, it has been researching a smart car and make him out with one this year. they had been working with a

carmaker, but will not say which one. apple trying to have its self driving car by 2020. burger king no longer marketing sodas as part of its kids meal. they are part of a group that is fighting childhood obesity. stephanie: melinda gates worked with chelsea and hillary clinton about the need for equal rights for women around the world. i asked her what it was like working with the former secretary of state and whether or not she would support her in a bid for presidency. melinda: she has been a champion for women's and girls. she was all in on the no ceilings project, whether or not she runs.

bill and i never endorse candidates, because whoever comes into office, we're going to be around and i hope we are working really hard. we never endorse a candidate. stephanie: if we saw a woman become president of the united states do you think these numbers would change drastically? melinda: it has to be a qualified woman for president. you would get more women in congress and then you would see a lot of policy changes for women in the united states. i do not over presidential candidate and do it on their own. we need all branches of government before we can make policy changes for women. stephanie: all of the noise around the subculture in america that is anti-and vaccinated children -- anti-vaccinating children. given all of the dollars that you have put into vaccinating

the world, what do you think of this? melinda: i think it is crazy. i meet women all of the world who value vaccines. they walk three hours and the heat, or 10 kilometers with a baby on their back to get that vaccination for their child because they know the difference that these diseases make in their community. they know is a life or death urgency. it is crazy to me that in the united states we have forgotten what those diseases are like and we would allow them to come back because they do not believe in vaccines. stephanie: do you think this is the best way to make a difference in the world? it does not seem like governments are doing as much as you are at this point. melinda: philanthropic dollars are tiny compared to government funding, but what they can do is be a catalytic wedge. they can take short experiments

and prove if they were. they can take risks where governments can't or won't. once you prove that risk out it is our job to get governments to scale up. that is how we see our philanthropic dollars being used to the greatest good. stephanie: is there an example that has been the greatest success? melinda: vaccines. we were one of the early founders of the alliance for vaccines and immunization. we have garnered private and public dollars together to create a large vaccine fund that all vaccines through's so we can go to pharmaceutical companies and say there is a market for your fark vaccine before there was not. you can still make a profit. i think because of that vaccine fund, we now think there are something like four-5 million childhood -- 4 million to 5

million children alive who were not before. stephanie: is there enough clean water for them to drink, schools to go to, jobs to have? melinda: not yet, but there will be. this is a precursor to everything. if you do not start with a healthy life, you cannot go on to great education and participate in society. you have to take her of the early childhood in this is so the child can grow up to their full potential. stephanie: not yet, but there will be in terms of education for all of these kids who alive today. i think one of the most extraordinary thing, it is not your talking to a politician. when she says we have vaccinated 5 million children, and there will be schools there, she is going to stick around. what they have done is amazing.

when she was talking about vaccination, you watch her expression and her response to this uprising movement in the united states, highly educated people not immunizing their children and putting their entire community at risk it is mind blowing especially for a women who has seen all of these mothers in africa walking miles with kids in their arms because they realize it is life or death. and now mothers and fathers in southern california are saying it is not my pain. -- thing. erik: you come away incredibly impressed by the single-minded focus they have on one thing only, improving the lives of people. no better way then saving them from death, but also doing all kinds of other stuff. they doing work in after culture, education -- agriculture, education banking. stephanie: the view of a mobile

phone, a way to save money in organized units, you can change your station in life. more after the break. ♪

stephanie: you are watching "market makers." we are seeing a selloff in all three major averages eight down percent or more -- all of them down 1% or more. a lot of the cyclical stocks those that are the most economically sensitive that are doing the worst financially in party alert. being hit hard. we knew the day before that the fed would be raising rates, but it appears to be on investors minds today. some of the big banks jpmorgan, bank of america, and the

citigroup are seeing that other positive elements are still down. crude down for the fifth straight session. no supply constraint, and you would think that would be helpful for the airlines but we are seeing a selloff today. some of the other large airlines are selling off as well. in terms of individual movers, urban outfitters is a bright spot today. it was out with earnings, and we're seeing those shares rally. stephanie: thank you. erik: that was julie hyman. market makers will return and a moment. apple reinvents himself again. it is not just about technology, it is into luxury.

♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. stephanie ruhle: america's newest luxury brand is apple. what else you call a company that sells a watch for $17,000. erik schatzker: will republicans have second thoughts about their new penpals? pimm fox:stephanie ruhle: does yoga have a role in corporate america? we will talk to a top executive from one of the most viable

companies. i like the idea of yogurt -- yoga at work. we are going to get into that and more. the top business stories of the morning. there was a surprise increase in revenue at arnzen noble last order. the largest bookstore chain said sales rose 2% and profit missed analyst estimates and the stock is following this morning. notok sales fell. the ceo said he is looking for a way to turn that around. >> our team seeks opportunity to stabilize and reverse the declining content sales in what is a challenging environment. we remain committed to supporting the product, which is an integral part of our future.

stephanie ruhle: barnes & noble is spinning off its college division, leaving retail chains and the nook unit. the government says there were 5 million job openings in january an increase of 120,000 from the previous month. more people quit their jobs that is a sign of rising confidence. the economy is adding jobs at the highest rate since 1990 being -- 1999. bain capital will buy coast systems. the price is all in cash. bluecoat took the company private just two years ago. barack obama campaigned on a theme of hope and change. a change -- coal says americans

want more change in the next election. in a new nbc news poll, 59% of those surveyed said they would prefer a candidate who will bring a greater change, that is up from 55% in 2008. that is not great news for the two front runners. hillary clinton represents a turn to policies of the past. 50% say the same thing about jeb bush. in brazil this blows my mind. more than 10,000 in cash was confiscated. the cash has gone missing. the judge is under investigation. this is incredible. the judge was driving one of his luxury cars. batista was once one of the top

20 men on earth. his commodities empire collapse. he is said to be $1 billion in the red. alaska's iditarod dog race is underway after organizers changed the course. there wasn't enough snow this year. they should have done in new york. the start was moved to fairbanks. a good portion of the 1000 mile trek will be run on river ice. they will compete for $70,000. they should have just done it in boston. you win the super bowl, you can host the iditarod. you have to make the best of your horrific winter. erik schatzker: the tides are receding in china. the fastest-growing economy is slowing. our next guest recently returned from china and says he is encouraged by the transition

that he has been in years. he is the head of allocations. they just reduced their gdp growth in -- to the lowest in 15 years. what the you see the you like? >> that has been an unsustainable growth environment. they are no longer competitive on the low-end exports. on fixed investment how they get can it be? this is a shift toward services. the second message is the environment is more important than job growth. i think that's a response to the people in china speaking to the government. that is a tectonic shift. i've been going to china since 1995 area this is a real groundswell. investors need to focus on where this move toward making the

environment better and health safety, gdp went up for years and years. that was all people were concerned about. people have some form of health care. what they want is to protect their children and their lungs. given the huge increase you have had in manufacturing and the smog is a real shift. the government used to be about creating jobs. now it's about social sustainability. the government is responding to that. stephanie ruhle: you to believe those gdp numbers. any data you get out of the chinese government is false anyway. >> covering china is a mosaic. you have to go there a lot and at the pieces. they have had negative manufacturing cpi for 36 months. there is too much capacity. point number two, when you look

at the numbers on industrial production, they have been coming down since 2009. you can argue if they are 10% or 11%, they are coming down. high and services is growing. i don't get upset about whether it's going to be a 7.2 or a 6.9. china is slowing a structurally. they have to make adaptations. we are 91 companies globally. we make very few bats linked to pure commodities that would do well from china re-accelerating. as an investor, that is a prudent way to apply the china macro pieces to investment. erik schatzker: can we spend time on that point about people worrying about their lungs? how serious is china in environmental protection? in the context of the economic costs? >> it's becoming a major issue.

smog affects the way people think about their outlook and the government wants to stay in power. if you see growth in china, it's not in manufacturing. it's not in made in china anymore. it's things that provide safety for food and in services. when you look at the recent ipos of alibaba there is a shift in the economy. as an investor, we have had 10 years of wild growth in china. it's been one of the worst-performing stock markets. i would flip it upside down and say going forward you may have some slower growth, but you may have better stock market returns. that is what you have seen over the last couple of months. consolidation in a state enterprises and more focused on services and less aggressive lending, i am not a structural bowl on china. they will wind up easing and that will give a boost to the economy. take a step back right now.

it is unusual that we have the fed, we are talking about the fed raising rates. 16 central banks across the world are easing. when you talk about the fed raising rates, the rest of the world is asked. seen slow growth and the fallout from lower commodities. the place this battle takes place is in the currency markets. look at brazil and turkey. that is where the volatility is. that more than the s&p is an expression of some of the tension we are seeing in the global markets. erik schatzker: how much further will lead chinese go to stimulate the economy? >> i don't think he will have the big bang like 2009. i think you've got targeted spending in the form of infrastructure on subway. you will see more ratio cuts. stephanie ruhle: that leads to nowhere. we have seen infrastructure

spending in china. >> people get excited when they cut rates. all it does is ease the burden on existing companies. they need to focus on liquidity in medium-sized businesses. when you talk to companies over there, you can get capital. small growth companies are struggling. that is the problem they are trying to solve four. they are walking the razors edge. you have more volatility structurally you can't grow an economy. you can't grow an economy with the level of debt the china has a not have some long-term adverse reactions. erik schatzker: what about the bad debt? >> the bad debt, that's why they've got $4 trillion in reserves. what you are seeing is a transfer from the provinces to the central government. the central government is not

over levered. they are having to absorb debt. we see this in brazil and other places. while people say the debt to gdp from the government looks low, when russia adds a bank or an industrial company or brazil avails 70 out, it's going up. that's moving from one end to the other. stephanie ruhle: you just came back from brazil. what was your take away? >> they are feeling tensions. one is -- pinches. it's the same way that russia is hurting. erik schatzker: china is not bind is many other things? >> the majority of their growth was from price and not volume. we were talking about this earlier, 70% of their electricity comes from hydro and there is no water. you will see a rolling brownout. there are changes.

this is an unusual -- in the 90's, it was simple. consumers bought an emerging markets produced. we are having a weird recovery. the u.s. is paying down debt. europe is trying to get their competitiveness under control. everybody wants to export. somebody has to buy. that has to be a tough act. that's why you see more volatility. erik schatzker: if you had to choose between one of the two healthier would be china or india? >> i would choose india. stephanie ruhle: why? >> their economist is one of the best in the world. he understands the importance of the currency as well as inflation. the market is overbought.

in a three or five year basis, we are active in that market. erik schatzker: that is a geographical pick. let's talk about your preference for asset class. where should you be putting your money? in the stock market? debt securities? private lending? >> we are the unique beast. we don't do a ton of pure public. we are doing a lot of non-bank lending were companies are having a hard time getting access to credit. we see that in india and indonesia. that is a big opportunity. i would say in the hotspots, energy, we are doing special situations. we are helping companies recapitalize. globally, there is too much debt and companies are restructuring. for public investors, things

that have yields and growth are going to do well. almost 65% of the companies in europe have a dividend yield above their corporate on field. 35% of the market has negative rates. you're going to see compression. we saw that in japan and we are seen it in europe now. when we talk about this year and our outlook, our view was we were getting closer to home. this was the first year that we are not over equities. we have raised more cash and been more opportunistic. stephanie ruhle: is greece worse than we were? >> better situation. the ecb is an action. they have back stops. i do we have a strong view if they are going to exit. my preference is they won't. i think the threat to europe is relative to where it was in past

years. erik schatzker: thank you so much for coming. he is the head of global macro and asset allocations. stephanie ruhle: they created that job for him because he is so good. when we returned, high-tech meets high-fashion. the result is a $17,000 apple watch. ♪

erik schatzker: if you are just joining us, this is a good time to bring you up to speed on the top stories of the morning. the s&p 500 is trading at a one-month low, down 1%. things change quickly. the dow and the nasdaq they are down as well. they are roughly flattish on the year. investors like the shakeup at

credit squeeze. the ceo is going to be leaving at the end of june. he has led them since 2010. he will be replaced by the ceo of dental. dougan was one of the few to survive the financial crisis. they have been generating less profit. uber says it will team up with the united nations to create one million jobs for women. they will expand to 300 sit cities. in the united states very few of their drivers are women. stephanie ruhle: that is still higher than taxi drivers. how often is it a woman? almost never. erik schatzker: that's a random sampling. stephanie ruhle: i torture her

because i talked to her the whole time. where you from? how did you get the job. it's good to see the uber is doing something different. we have to talk about the apple watch. the world has been abuzz since the unveil yesterday. christie turlington was there. there are plenty of supermodels and tells and whistles. the gold version of apple watch is going to cost you an arm and a wrist. the price is up to $17,000. it's almost like they are turning into a luxury jeweler. cory johnson is in san francisco. you've got to shell out $17,000. we have not figured in people who are going to go aftermarket and bejewel theirs. we could be getting into tens of thousands of dollars. >> we are talking big bucks for the watch. there is a question as to how many of those will they make.

what does this make their brand? this is an interesting branding exercise for this company. they are going after this luxury thing. we don't know, we may never know how much they actually sell at those prices. what it does do is establish apple as a premium thing to wear in your west. erik schatzker: that is such a sophisticated technical term. >> jewelers use that. think about what they have done in the past when they launch a new product. they are bigger than any company that has ever been in the public market. in the first year of the iphone they sold 1.4 million. over time, that is one of the most important rocks ever made by a single company. the ipad started at a much bigger level and grew faster, it

has been falling lately. it started out at 7.5 million. that expensive watch is a thought leader. stephanie ruhle: let's talk about who's going to buy it. scott calloway said the chinese are going to buy it. when i think about this watching people who love luxury watches, if you want a rolex you wear it and put away. this is a tech product. a year from now when they come out with a new when it, will this be in your graveyard with a walkman? >> that's an interesting discussion. the tendency is to say who's going to buy it? the chinese. stephanie ruhle: how about those chinese? >> this is a less crazy set of ideas. i think i've got a thoughtful

e-mail from a friend in hong kong. when you walk into a meeting in london, they look at your shoes. in hong kong, they look at your watch. that is an important that a symbol that looms large in that place. erik schatzker: what is better? an apple watch or a rolex? stephanie ruhle: i don't think this is going to turn the dial for apple. >> it might make a difference for that particular purchase. they don't care about the store value. erik schatzker: we have to leave it there. cory johnson we will be back in two minutes. ♪

stephanie ruhle: coming up

republicans say they were giving iran a civics lesson. democrats say, yeah right. we will have more on the controversial letter to the islamic leadership. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. stephanie ruhle: welcome back. i'm stephanie ruhle. we're going to take a look at these markets are it stocks are selling off. the dow is off many points. julie hyman is weeping and crying. we are taking a look at some of the damage. what's going on at their? -- out there? >> i am trying to keep it together. it's these economically

sensitive groups that are doing the worst. nonetheless, it is down 1% for the major averages. we do have a volatile market over the past several weeks. people try to recalibrate their interest rate expectations and what will the fed do next? take a look at apple. that is a different sentiment in the stock then we have seen recently. it was on a record high as recently as february 23 now it is trading at 81-month low and it is down about 6%. this is the day after they gave us details about the apple watch. there is some brightness on urban outfitters. they are up 4%. the stock is trading at its highest in 18 months. nvidia is trading at a four-year high.

those are the areas of green we are seeing. as you point out, overall, it is a negative tenor to the markets today. stephanie ruhle: maybe that's an opportunity to buy. thanks to julie hyman. erik schatzker: this is a question every american should ask. did republican senators go too far morning iranian leaders that any nuclear deal won't be honored when he leaves office? not because the answer is easy but because the stakes are so high. the headline in the new york daily news calls the senators traders. both the president and the vice president responded angrily. peter cook is on capitol hill with more. let's begin with the question. did they cross a line? is there any precedent for a letter like this being sent to a country like iran? >> not that i am aware of on capitol hill. i can assure you that is the

view of the white house and a lot of democrats are in congress. even some republicans, there are questions about whether they did more than just state a case against these negotiations. did they cross the line? did they undermine foreign policy? those debates usually and at the water's edge. there were strong words from the white house calling it reckless and misguided. the strongest words came from a veteran of the senate, the vice president. he said late yesterday that this is the need the dignity of the senate. this is a highly misleading signal. some really strong feelings on capitol hill in washington over what has happened. i can tell you that republicans who signed the letter are feeling justice wrong this is their opportunity to try and

erase questions about this deal going forward. they want to make it clear that if congress does not sign off on the deal, it won't happen. stephanie ruhle: they didn't break any role -- laws. the guy studied constitutional law at harvard. i can imagine he would break that law. what would the white house do to stop them? >> the white house did not know this was coming. the other person who signed this was mitch mcconnell. he has not had anything to say about this topic. you know he will be questioned about it today would he faces the cameras at 2:00. there are question if the senate can play this role. even if they have the opportunity to sign off on this deal if it happens at all. the president says the chances of this deal are 50-50 at best. tom cotton, he was the architect of this letter. he is a freshman senator. erik schatzker: i think it's got

to be noteworthy who did not sign it. >> seven republicans and all including the chairman of the senate committee. he did not feel that this was appropriate to sign. this questions the reticence on the part of those seven republicans we have one president and one person who articulates foreign policy. they don't agree with everything that is happening with the talks, but they did not feel this was appropriate to put their name on this letter. it's interesting to see the backlash and what is happening. perhaps the most important thing that could happen as result of this letter is it solidifies democratic opposition to any legislative moves against iran in the short term. both in the term of sanctions and requiring congressional approval or this deal. democrats may have a unified

front and block that going forward. even if they want congressional approval. erik schatzker: can you see a bottom to this decline in respect, the corum, and protocol in congress? stephanie ruhle: how miserable is your job going to get? >> there is something about this place, there is a lot of tradition and respect or the institution. i've got to tell you, there are some traditionalists who are worried about what will happen in the senate. some of them have been retiring. we have new views on how this place should flex its muscle. this place is changing. some the veterans are going to have to get used to it. erik schatzker: peter cook thank you very much. stephanie ruhle: ron burgundy is joining me today. coming up even the gateses

have to say no. ♪

stephanie ruhle: welcome back. i am stephanie ruhle. i want to share another few moments of my interview with melinda gates. her foundation has given tens of billions of dollars over the past 15 years. it still must say no to a lot of worthy people. i asked her how she decides what is truly worthy. take a look. melinda gates: we got some advice from our friend warren buffett. he said it once you define your old site, it will be easier to say no to the other things. we see things that are heartbreaking. there are great investments being made by others on that issue. we are looking at the disease for which very few people are investing.

once we said that is our focus, it was easier to say no to things that are very worthy and gutwrenching. stephanie ruhle: it's one of the most impressive things that they look for a universe that is not a celebrity cause. everyone must come and asked them for money. why wouldn't they? erik schatzker: they apply. i spent some time with the foundation, they apply an uncommon rigger with the way that they disperse money. it doesn't exist with every charity. it is a rigor warn of some experience in business and in investing. stephanie ruhle: they want to create partnerships so that they are not just giving, they are creating a framework so governments can support the work they do. i spent that time in haiti in december. $13 billion has made its way to haiti, yet when you walk around you see no evidence. there wasn't an organizational

infrastructure that the gates foundation puts behind what they do. erik schatzker: a company wants you to stretch your body as well as your mind. yoga is just part of it when you work at google. ♪

erik schatzker: here we are. it is 45 minutes past the hour. we are giving you up to speed with the top stories. chevron is feeling the pinch of falling oil prices. they will increase asset sales by 50%. chevron is curtailing new investments at the same time. they will raise oil production by 20% by 2017. hillary clinton will finally talk about the e-mail controversy.

she will take questions from the press after a speech at the united nations. it was reported that she used a private e-mail account for conducting official business as secretary of state. a growing number of democrats have urged her to put the issue to rest. a new study is out on americans and gun ownership. the number of american to live a household with at least one gun is lower than it has ever been, just 32%. back in the 80's, half of americans lived in a house where there were guns and only 16% have a hunter in their household. stephanie ruhle: should yoga and meditation have a place in the boardroom? can five minutes translate into profits? he is the chief evangelist of brand marketing at google. we've got to start with that.

what does that job title mean? >> the job title has nothing to do with yoga. it is to help people understand digital technology to engage with customers. i have a lifelong interest in yoga and meditation. there are opportunities to expand your life and career at google. that has been a big part of my career at google. stephanie ruhle: how have you made yoga and meditation part of the culture? >> when i joined the company, i started a program for googlers. i have been teaching ago the class at the headquarters. i take it on the road and teach it at other offices. what started with one student once a week has asked it into this program where thousands of googlers practice.

it's a big part of daily life at google. stephanie ruhle: has there been an impact on google's culture? have you thought about bringing an eight your roller? -- yod eler? >> there has been an impact on productivity and culture. this is a demanding environment. this is where traditions like minute tatian and yet -- meditation and yoga health. -- help. erik schatzker: how'd does yoga and meditation -- how do yoga and meditation contribute to everything we look for in a company? everything we look for in a leader? >> we are infatuated with the technology that we are building. it is making humanity go

forward. in the midst of all of this, the most important technology we work with his right here, our body and our brain, our consciousness. everything we experience in life, whether it is food or music has to be processed by this technology. yoga and meditation help us optimize this technology in order to allow each of us to live. stephanie ruhle: is there an example of corporate consciousness that has paid off? i've lost my microphone. erik schatzker: stephanie is wondering about an example where there is improvement or expansion that has paid off in the way a company functions or people interact in the boardroom? >> i will use zap us as an

example. the purpose is to be a core part of the company. it translates into the people they bring in and their attitude toward customer service. they have a primary purpose in the company. erik schatzker: is it measurable? a lot of people would say this is a soft concept. i have seen debates over whether you can measure gross national happiness. it's hard. it's hard to take these soft concepts and turn them into hard numbers. >> i believe it is measurable. you can take groups and try these approaches within a company. since you asked about yoga and meditation, that has become a big part of what is going on in the movement. what richie davidson is doing at the university of wisconsin -- he is using modern medicine to

look at people to say if they meditate, does it change the level of happiness? on an individual level you can do that. you can test it with groups of people. if i expose people to this meditation and compare them to a control group who don't have these practices, what difference does it make to their physiological levels like stress or blood pressure question mark --? we can report levels of happiness and distraction. stephanie ruhle: when you look at investment bankers who work 80 or 90 hours a week, do you believe if they cut back the amount of hours they were working and devoted time to mindfulness and meditation and yoga, they would improve their productiveness and be happier at work? >> without question.

if everyone should do half an hour of some of these actresses. in the financial services you should do it for one hour. there are a lot of googlers who run classes as well. erik schatzker: how often does eric schmidt come to your class russian mark --? >> they have not come to my class. erik schatzker: perhaps they should. >> my practice started when i was a school kid in india. that is -- that is one of the reasons why i am here to receive an honor from a wonderful organization. they are bringing yoga to public schools. we have introduced yoga to 15,000 kids in public schools in new york. stephanie ruhle: thank you so much.

i have not change their behavior yet. they really like doing it. >> keep them at it. erik schatzker: he is the chief evangelist of brand marketing at google. he is an enthusiast for yoga and meditation and introspection. that's going to do it for us. we will see you then. ♪

>> we are coming up on 56 past the hour. we are on the markets.

let's look at the action midway through the trading day. we have the strongest dollar in 12 years and fear of a right heart -- hike is spreading fear. we have session lows as well. the dollar index is up by 9/10 of 1%. joining me is heaven kelly from recon capital partners. when we see what is happening, there has been some choppiness and -- in stocks lately. what is happening in the options market in terms of people looking for protection as we keep getting higher and higher? >> it's been pretty vast when you see volatility come back into the market place. right now the best way to look at it is the skew index. the baseline is 100 and it's elevated to about 125 right now.

it means that institutional investors are buying options to protect the books. they are protecting against black swans. >> on the downside. or on both sides? >> mostly on the downside. that is where you can see while -- volatility stay below 20. they are around the intermediate level here. >> what do you do as an investor? do you follow that strategy of trying to prepare for these black swans? >> they are putting on a lot of hedges and the skew index is elevated. they are seeing volatility come back into the horizon. when you look at the april futures, it was 18 before the market opened. a bunch of investors saw that volatility in april will be around 18. >> i want to talk around qualcomm. they raised the dividend more than estimated.

they came in with a buyback. are we seeing the planned -- demand for playback -- qualcomm. >> the calls are being traded. there is a natural fire out there. the company itself they are yielding more the need ten-year treasury. they can borrow for less than that and buy back their own stock. the best way investors can play it is by a bunch of calls and watch it go up. >> i want to talk about apple and the watch yesterday. the stock is at a one-month low. you've got a trade for us on apple. >> you can turn it into a bond. you can go to jail where he and they'll the 120 and collect an outside call. you can participate for $3.35. it gives you a 5.5% yield. you've got $30 in cash per share. they are buying back their

stock. they are issuing a dividend. you can look at it as high yield junk. >> interesting. we will keep an eye on that trade. we will go on in time and see if apple has rebounded. kevin kelly, like you so much. he is the chief investment officer. "money clip" is next. ♪

pimm fox: welcome to "money clip." me to new chief executive of credit suites. he is leaving credential in london. he is going to zurich. what time is it? it's apple time. the tech giant introduced its wristwatches. there is even one for $17,000. melinda gates once parents to learn what parents and af