mark: from bloomberg headquarters in new york, this is "bottom line." to our viewers in the united states and those of you joining us from around the world welcome. we have full coverage of the stocks in stories making headlines on this thursday. first, let's get you to the top stories we are following at this hour. the islamic state group issues a statement today claiming response ability for wednesday's deadly assault on tunisia's national museum.

23 people were killed, most of them tourists. the government says it has arrested nine suspects. five of the suspects were directly tied to the attackers. four others were described as linked to those in custody. don't expect miracles on greece in brussels. angela merkel says not to expect any breakthrough at all. european leaders want greece to come up with a plan to reform its economy before it receives any additional emergency loans. greek officials agreed to a framework. key economic figures out today. the philadelphia fed factory index came up short. leading economic indicators rose in february. the rise reflects high stock prices and an increase in building permits. the .2% increase is well short of the average.

that is a look at the top stories we are following at this hour. janet yellen indicated yesterday that there is no rush to raise interest rates and the pace of tightening will be slower than previously anticipated. cheap fixed income strategist at -- joins me from philadelphia. welcome back to "bottom line." the door is now open for the fed it to move on interest rates. how flexible will cherry ellen and her colleagues be -- will chair yellen in her colleagues be? -- and her colleagues be? >> it all hinges on inflation at this juncture. the jobs market are running pretty hot. a pretty impressive pace and a consistent one.

it's the other side of the equation, the core inflation numbers that are not playing ball. the combination of the stronger dollar and lower energy prices are not going to be supportive of core inflation. mark: defensive statement -- does not indicate the committee is deciding on the timing of the initial increase in the target range. was that aimed at keeping the markets from overheating in anticipation of the rate increase anytime soon? >> i take that for face value. policy at some point this year is most likely going to tighten. what is really interesting to me as just as yellen and the federal reserve open a policy on the timing of a first rate hike they started to close down their options with regard to what they do with interest rates for years down the road. we saw that the way the dot plots were structured.

the federal is slowly coming around to the view that economic secular stagnation is real and they will have to take policy action to reflect that. mark: policymakers said before raising rates they want to be reasonably confident that inflation will move back to its 2% objective over the medium-term. isn't the strong dollar throwing a wrench into those plans? >> absolutely. you have to ask your self, what would a policymaker consider reasonably confident? if i'm in that seat, the only thing that makes me confident is past tense readings up slightly higher inflation. not just a theory in the future that it might go higher. it requires a slowing of the appreciation of the dollar.

a couple of months worth of data taking a bit higher. that is not in our forecast until the back half of 2015. mark: jerry yellen expressed concern about stagnant wages -- chair yellen. is the fed prepared? >> they are as long as core inflation does take higher. one factor of the labor markets right now is that among skilled and educated workers, there are far more jobs open then there are people able to fill those jobs. we see it in the fact that the unemployment rate is less than 3% among those with a bachelors degree. for skilled workers, that supply

demand imbalance for labor has to increase wages at some point. i'm betting it will happen this year. seems a little strange that the federal reserve is skipping over this imbalance. mark: scott joining us from philadelphia. thank you for your time. >> have a great afternoon, mark. mark: jeb bush may be raising a lot of money but still facing an uphill fight for the 2016 republican presidential nomination. mark halperin and his team went to new hampshire and talked to a focus group of 10 likely republican voters. mark: i want to start with jeb bush. >> i don't need to keep voting for bush over and over again or clinton over and over again. i need fresh faces. >> the common core issue -- politicians have no place in the

classroom. >> he's not somebody i would vote for. >> he has no chance at all, really. mark: who considers themselves someone who would vote for jeb bush? >> i don't think they are bad people. if he was the only choice, i would choose him as opposed to a democrat. mark: a ringing endorsement. [laughter] >> i don't know. i'm not for him. >> if he had become a candidate yes. after his father and brother, i don't think he will have a chance. mark: anybody thinks he has a good chance or he is the front runner? probably not. mark: margaret joins me in studio. this is a -- i don't know what to say about that. no one raises their hands.

do they think governor bush is out of step? margaret: it's interesting. on the one hand, the people in our focus group thought he was in the establishment. on the other hand nobody thought he was the most viable or could get the nomination. you saw this real division of recognition that people talk about him in that context. no good feeling he is the guy to go with. mark: is he being penalized because his last name is bush? margaret: absolutely. some useful emotional threads the intensity, gut feeling. you could see their body reactions to the idea. giving you a sense of some of the trouble he has to overcome within that section of the republican party. mark: democrats shared their

views of hillary clinton with john. john: what do you like least about her? what is most troubling? >> the e-mail thing. >> i don't think it was handled well. that plays into your ability to make decisions. >> i feel as though -- you have to be aware of how things appear to the public. who went through her e-mails? >> i think it would have been smarter to use a third-party to sort through. >> it seems like a lack of judgment to do that. to be the one deciding which e-mails you are going to delete or not -- she should have released everything. mark: that focus group, the

democrats, they think a neutral third party could look at her e-mails, that might give her more transparency. margaret: these are hillary clinton supporters. people who say they like her. they are disturbed by the controversy. they feel she does need to do something to give herself credibility. mark: what messages should candidates take away from this echo are they in trouble? margaret: pay attention and take nothing for granted. hillary's problem seems to be more general elections focused. build your credibility for a general election run. mark: what are the differences between new hampshire democrats and republicans? >> they have different outlooks on 2016. the republicans were more

inclined to say look for an outsider to bring change while the democrats felt an insider might be the best way to get things done. mark: any names? >> we are looking at more than a dozen candidates. mark: margaret was a look at the focused groups we spoke to in new hampshire. think you so much. much more on the new hampshire focus group coming up tonight at 5:00 p.m. "bottom line" continues in just a moment. ♪

mark: target will join walmart and t.j. maxx in boosting the wages of its lowest paid workers. a person familiar with the matter says target will raise employee pay to at least nine dollars and hour. retailers boosting paychecks in an effort to reduce worker turnover. target is the second-largest discount chain. apple made its debut in the dow jones industrial average today. most viable company in the world is replacing at&t. apple had been kept out of the doubt because it's a stock price was too high. but apple split 7-1 last year, clearing the way for the company to be added. and was on extending its same-day service. people in baltimore and miami will now be able to get same-day delivery on tens of thousands of items.

previously, amazon's now service was limited to select areas in manhattan. two hour delivery is free. go daddy has filed for an ipo. seeking evaluation of $2.9 billion. it's been three years since go daddy was acquired by a group -- their valuation would be at a discount to other web service providers. that is a look at the top stories we are following. coming up, we will focus on getting images -- getty images. argentina's baiting access to the markets. how much lower crude oil can go. the biggest drone market for now remains military, led by the u.s. and israel. civil drones are catching up fast and france is leading the way using drones for

agricultural purposes. caroline koning reports. caroline: in this field in northern france may lie the future of agriculture. this is drone is flying over -- during the nine minute flight, the unmanned aircraft takes hundreds of pictures. they will be analyzed to calculate the need for each part of the plot. >> this is the drone. it has a sensor with four lenses and the data is registered here on a memory card before it is transferred. caroline: the software was developed by a french company and helps the farmer to save money. between 20-wondered euros --

20-100 euros per hectare. >> you won't see anything. farmers like to see -- to advise them and to see the people behind the tool. >> france is one of the most advanced countries in terms of industrial application for drugs. it was among the first to regulate their use in 2012. -- application of drones. >> today, it is a revolution for agriculture. our parents were not the drone generation. the drone allows us to increase profitability and the quality of our products.

>> the expected commission 20,000 flights this year. drone generation things may be looking up. mark: still to come, march madness is in full swing and so is bloomberg's version of practicality. -- bracketology. ♪

mark: march madness is upon us.

we brought together a group of titans from the worlds of business and finance to take their best shot in our bloomberg bracket. each of the participants has generously donated $10,000 with the pot going to the victors charity of choice. you can follow along on the bloomberg terminal, online at bloomberg.com/charity bracket and right here on bloomberg television. getty images cofounder and ceo is stepping down. he will stay on as german. the company told creditors it burned through a third of its cash in the last quarter of 2014. -- he will stay on as chairman. laura, jonathan klein has led to getty for two decades. why is he doing this now? >> we have not had that fact come out. this comes after a theory that very disappointing quarter.

if you look at this in the longer-term perspective, lenders have dealt with a long series of disappointments mark: how did the investors react to his decision to leave? >> it was a quick reaction. it was the third worst day for the bonds ever. they went down under $.50, a gargantuan drop. mark: what about his partnership with the oil heir? >> they have been together since the beginning of the company. klein was the boss. they decided they would start their own business. they took it upon themselves to start this photo stock business. they bought 100 different companies or put archives -- for

photo archives and pieced together getty. under these two different equity owners -- mark: is his move seen as a positive for the company? >> it is counterintuitive, but some people are saying this is a good thing because since things have not worked so well perhaps we can find a senior member of management we can count on to affect the turnaround. mark: they are looking outside of the company for a new ceo. what challenges with the new had person face? >> the same challenges klein has had. looking at this one big part of their business. shutter stock is a public traded company -- publicly traded company. they have to figure out what is going on there.

they have done a lot of website changes. are they selling images people want or are they not able to connect with people? mark: what are the risks investors face when they buy traded down loans and bonds? >> is a valuation perspective. the bond is $.50. is it something i want to buy? sounds like a great price but there is -- if there is not value at the company maybe the price is not so good. investors are saying that there is not a lot of companies like getty. mark: laura, thank you so much. coming up, you on musk wants drivers of his model s to relax. -- you onelon musk.

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mark: welcome back to the second half hour of "bottom line" on bloomberg television. thank you for staying with us. let's get you the top stories we are following on this thursday. you see on your screen, crude down about 1.75%. a new poll shows the affordable care law is getting support. 41% of those polled support the affordable care act. 43% still oppose it but that is

the smallest gap in two years. supporters like the expanded access to insurance. opponents do not like the cost. the supreme court is expect it to rule on a case that could unravel obamacare russia has declared the worst of its economic crisis is over. the peak of the crisis is behind the country and he sees signs of stabilization. russia is shaking off two big problems. the lowest oil prices since 2009 and economic sentience. the central bank in switzerland plans to keep interest rate at a record low. the swiss franc sword in january when the bank abandoned its ceiling of 1.2 per euro. s-- soared in january. >> the markets will realize the

swiss franc is overvalued that is not attractive at the moment to get long into the swiss franc. mark: the swiss economy could contract for two quarters. americans are not buying music the way they used to. the music industry shrank .5% last year. radio services at sword, racing 29%. that could not offset the drop in sales. in sports, a touchdown worth nine points? check out this idea from the indianapolis colts. a team would have to be trailing by nine points in the closing minutes. the colts suggest the team then gets to try a 50 yard field goal for one more point. the leak will take up this at its annual meetings next week.

good luck with that. coming up, the window for argentina to access bond markets shrinks. details and are latin america report next. ♪

mark: be sure to check out the latest edition of "bloomberg businessweek" featuring a story on investing. you can read it on the go -- it's time for today's latin america report. argentina getting more and more isolated from bond markets. two weeks before its next bond payment deadline comes city announced it was getting out of the does this of making payments for the country. -- bond payment deadline, citi announced. >> the judge has said that

citibank -- over the summer, the big drama was the judge in new york said argentina cannot make payments on its international bonds and till it pays creditors. this is something that is a bit unexpected and a bit of a game changer. citibank cannot pass on payments on bonds issued under local argentine law until it makes these payments. citibank is saying i will step down from my job or i might get nationalized or put out of business in that country. mark: what does the decision mean for bondholders? >> since the summer the judge has been allowing one-time payments on their bonds.

this could mean that these bonds going to default at the end of the month. that is the big thing for those bondholders. mark: what are the broader implications? >> this kind of debt may no longer be able to be issued. if elliott says to the judge even expanded it to include these local law bonds come i want you to extend it to include all local law bonds. argentina has tapped local law dollar markets. even try to do so a couple of weeks ago. this may be completely jeopardized by this ruling. they may not be able to issue this anymore and that really shrinks their market of opportunity. mark: does this tie their hands -- what doesn't mean for

argentina in terms of raising money? >> it might mean argentina is left to issue bonds in a completely local market marketed only to argentine investors like a local pension fund. with only argentine bankers and unable to ctap the world beyond its borders unless they come to argentina -- they cannot issue that much. until they get this resolved their hands may be tied. mark: does argentina believe the judge does not have any jurisdiction in this manner? >> that is the case. they say he has nothing to do with this. they are saying he really doesn't have the right to do this and the judge is saying i do because i said so. mark: is this one of those things when the president will

try to wait this out? her term ends in december. >> that seems to be the message we are getting. they have not changed their position at all. it seems like it will be another waiting game until the next administration comes in. all signs point to the next administration willing to sit down with them. mark: between now and december, she will cement her legacy is having stood up to those who she has referred to as poulter capitalists, people who don't want to give argentina any wiggle room. -- cvulture capitalists. >> she stood up to these guys and has not been to their waist. hopefully for her, this does not result in some catastrophic legacy.

-- bent to their ways. mark: you can watch us live wherever you are. bloomberg tv is on roku players and android tb streaming for free. -- tv streaming for free. shell consumption is up -- shale consumption is up. we will have that story. ♪

mark: welcome back. let's get you the top stories we are following today. u.s. federal reserve has open the door to the first interest rate hike in almost a decade. the central bank indicates once it starts raising rates, it won't go slowly. janet yellen says that does not mean rates will rise in june. ellen sent her expects the fed to be conscious. >> i know we have been at the zero lower bound for so long and it seems like a fed with an itchy trigger finger. why risk it? it is much more safe to wait longer and go when you are darn sure that all the conditions are in place. mark: the fed wants to make sure

the labor market is stronger and inflation is approaching the 2% target. the conference board index rose .2% last month, matching estimates. the index measures the outlook of the next 3-6 months. the philadelphia fed factory index came up short of estimates. it is possible the weather may have had an impact. another sign the west labor market remains strong, fewer than 300,000 americans filed first-time claims for unemployment insurance last week. claims have fluctuated for weeks. now, the numbers show employers are hanging onto workers. coming up scarlet fu with an on the markets with a special look at home builders. on street smart detail on apple's first day in the dow jones industrial average. elon musk says drivers of the model s said daniel lungren have

to worry that the car will run out of battery charge accidentally. a software update with additional safety features was announced. will this software update really suit years about the car's battery? >> it depends on how scared you were. range anxiety as he called it. the announcements at the stock flying -- sent the stock flying. a new software update would allow drivers to find out when their battery whas going to go to zilch and where the nearest station might be. they can turn back and get to the facility as quickly as possible.

tesla is this great thing where people reflect their greatest hopes and dreams. the bulls look at this and say this is a fantastic update. bears look and say, great, an improvement on google maps. mark: how significant is this announcement? corey: i don't know if it's significantly -- the real issue is how far you can drive in this car and what limitations this is wonderful it does not use gas. but there are tremendous limitations because there are a lot more gas stations been charging stations. -- than charging stations. the company has to overcome that issue to get people to buy more cars. this is a critical order for tesla for a lot of reasons.

the model s is getting longer and longer on the tooth. you have this issue with the west coast port strike. tesla makes their cars behind me here -- for these guys to get these cars out to international markets was more difficult during the west coast ports slow down. mark: cory johnson joining me now from san francisco. thank you so much. despite the collapse in oil prices, production from key shale areas in north dakota and texas has increased. production from -- up 30% compared to last year. alix steel joins me with more.

why is shale still producing? >> money. good talking to you. economic returns averaged 20%. 20% for shale despite the drop we have seen in oil prices. you have trailers getting much more efficient at what they do and they can sustain very low oil prices. how long will this continued production last? the eia says production will fall in april. they could be seen change coming. mark: if the production is cut in the united states, will it have an impact on overall oil prices? >> defense by how much and how

quickly. -- sure, but it depends by how much and how quickly. when will we were run out of storage? storage facilities in cushing oklahoma are 78% full. it will add 2 billion barrels of storage capacity. if production is cut fastball that will help the storage area. -- if production is cut fastball. -- fast enough. mark: shale production is making america energy independent. >> shale producers need to cut oil not wait for saudi arabia to do it. they are not going to because they need to make their money.

they still need to pay the bills. a lot of these companies have taken on quite a lot of debt and they need to sell oil in order to repay that debt. they need to sell that oil in the future. mark: what's coming up on street smart? >> we will be talking a lot about greece and what is happening in brussels right now. joining me will be hans of greylock. we will find out what he sees and if there is any chance for some kind of resolution here. mark: stay tuned. thank you so much. stay with us. scarlet fu will give us the latest moves and shakers when "bottom line" continues in just a moment. ♪

mark: 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 edition of "bottom line." thank you for joining us. on the markets with scarlet fu is next.

scarlet: it is 56 past the hour. bloomberg television is on the markets. with just over an hour to go stocks giving back some of yesterday's gains. 27 members lower today, including apple. the dollar also recovering from its biggest plunge in six years. u.s. monetary policy will still be tighter than europe or japan. oil resuming its lull, down 2%. housing in february plunged because of bad weather in the northeast. one of the many reasons -- he joins me now from chicago. the weather was clearly behind the collapse of housing. the northeast saw a collapse of 57%. you see weakness beyond the weather. >> i do.

in terms of blaming the weather blame it on the rain was a bad song. it's a bad excuse for some bad economic data. look at last winter. last winter was the worst winter of our lives for many. the comparables versus last year , i don't know if you can use weather for a valid excuse. the western united states had an outstanding weather winter. the number was down not nearly as significant as the east but still down. there is something broader going on here. the consumer is starting to pull back. recent data has validated that. today another reason to be skeptical, williams-sonoma with poor results in a pretty poor outlook.

the consumer is fairly spent . mark: consumer spending on household guilds as a part different thing than buying your first home. >> great point. let's look at the more construction oriented assets out there. lumber hit a one-year low this week. the companies that sell into the construction industry and commodities are also telling us that construction is slowing. housing stocks, homebuilders and home depot have had an amazing run. i'm trying to pick on the winning group, but it's a group that has gone extended and it's time for profit-taking. scarlet: orders rose 18% and the spring selling season, the

early signs are encouraging as well. what might we see this season? >> i expect we will see disappointment ahead. williams-sonoma is not an outlier. the sign of a trend change -- housing has had a nice rally. i think it is ahead of itself right here. household formation while picking up is still tepid. scarlet: thank you for joining us today. "street smart" is up next. ♪ . .

alix: welcome to the most important hour of the session. i'm alix steel and this is "street smart." the fed rally is fading -- management energy stocks leading the declines with apple looking at its first day in the dow. and we're counting down to earnings from nike. and we expect to hear from german chancellor angela merkel within the next two hours. will greece get the lifeline it needs from brussels? "street smart" starts now. here are the top