negotiators are close to a deal on iran's nuclear program. if sections are lifted, what will all of that iranian crude to oil prices? >> time to say goodbye to the bowl? there may be in and to the stock market's six year rally. matt: behold one of aston martin's new cars. i will say what it is like to drive one. we will talk to the man who makes them. i am at miller and welcome to "market makers." looking at that car they will show it in new york tomorrow. olivia: we are in today for stephanie and eric. we have a huge show in line for you including the ceo of us in martin and it is deadline day for the preliminary deadline with iran talks. we want to get to scarlet fu. scarlet: the conference read comes in higher than anticipated.

it was forecasted to say the same as february's read but instead we have a read of 101.3. this is a little bit of a change given the latest chicago pmi number we got 15 minutes ago that it was a disappointing read in which manufacturing did not expand. they contracted once again. last week, the university of michigan conference confidence index came in higher than anticipated. you wonder whether the slumping consumer spending is temporary or if it is indicative of just deeper problems for u.s. households. this number would seem to suggest it is temporary. what consumers say and how they describe their feelings is different from what they actually do when it comes down to it. olivia: thank you scarlet fu. matt: i want to give you the bulletin top business stories of the morning. home prices are rising faster than expected according to one.

of the index of property values in 20 cities rose 4.6% in the year that ended in january. the report warns that home prices are going up twice as fast as wages, perhaps signaling a bubble. if mortgage rates rise, the real estate market could take a hit. that is a long way off. its wood to lend, negotiators are revving up six days of marathon talks on iran's nuclear program and we still don't know if there will be a framework agreement for a deal. they are closing in on that. the main points of the agreement which would give them three more months to finalize the details. russian foreign minister is headed back to the summit today. he said the prospects for some sort of agreement are good. the u.s. and its allies want to prevent iran from building a nuclear bomb. iran wants the west to rollback economic sanctions quickly. in greece, prime minister is trying to rally support for his

position on the bailout talks. he is asking opposition lawmakers to back his strategy of putting an end to austerity measures. he told the greek parliament that any new deal must include a restructuring of the country's debt. >> we want a new agreement for development. a new agreement that must have ever assist -- that must have a necessary restructuring of the debt. this is a sour truth. matt: greece and its creditors are still far apart. company has submitted a 15 page list of proposed economic reforms. three european officials tell bloomberg it is not enough to give greece more money. a big takeover in the cable tv business. charter communications will buy a majority stake in bright house networks for $10.4 billion. by house is controlled by stein newhouse junior and is the sixth largest cable operator in the u.s.. this deal has some asterisks

attached. charter will acquire some assets from comcast when comcast completes its purchase of time warner cable. if that deal does not go through, neither will charter steel with bright house -- charter's deal with bright house. the command has started to get deals for the new york daily news. cablevision is preparing to make an offer for one dollar. company owns newsday and would not need the daily news acting presses. no one involved is commenting. there is a new partnership between ibm and the parents of the weather channel. this it will build tools to help companies in the retail insurance and utility industries prepare for bad weather. here is the weather company's ceo david kenney earlier on in the loop. david: this differentiates both of us ibm and the weather company, in terms of bringing data to decisions. we will help this is -- help businesses make better

decisions. this is a global scale for the whole economy. the private sector and the public sector. it is a completely -- it is a game changer in a fundamental way. matt: ibm wants to attract more customers to its analytics business. sales have fallen for three straight years because the man has dropped for computer hardware and services. olivia: more now on iran. to associate us have just under eight hours before a self-imposed deadline to reach a broad nuclear deal. also joining us is peter cook down at the white house where officials are monitoring those talks closely. what can we expect over the next few hours? the russian minister has just rest back to join the talks. >> the latest news we have is that love rob has arrived but we don't know if he has joined the talks yet. he has at least arrived in

geneva. sources have told us that basically the plan is to come out with a framework understanding. whether that would be bullet points or a general overview of the major points of the deal of the two sides can agree on without going into too many details. that would give them a chance to have three more months until the june 30 deadline to work on the technical aspects and the detailed part of the accord but they would not have been able to get as detailed document today. matt: what is the reaction to this in washington outside of the white house? it seems to me we just made an agreement to continue talking. it doesn't seem like meeting a deadline. peter: as you know, there are a lot of republicans and even some democrats have a skeptical of the negotiations to begin with and it will not be satisfied with this. the reality is will they be prepared to stand in the way when the final deal and the real deadline is july 31 -- is july

1. and will be a lot of criticisms and complains about this as the reader details by the prepared to stand in the way? it is a tough called unlikely they will. i think the ministration hopes they have enough in this document to sell those typical lawmakers that they should keep at this through july 1. matt: the first deadline was last week before the white house pushed it back a week. that was when congress was going to if there wasn't a good deal in front of them start putting forth more sanctions against iran. will we see that legislation? peter: that is the test right now. the legislation that would impose tougher sanctions and allow congress to review any deal going forward, the president has said the white house would veto that legislation. there are some legislative

efforts to impose greater tensions on iran. question is whether or not the president would allow that to go through and whether democrats on capitol hill who still have a lot of sway over this could be the standing in the way closer to july 1. i think democrats will be hesitant to do that even if they have reservations about the deal. olivia: how does everything going on in the region impact talks? where lined up against iran and yemen. we are fighting islamic state in iraq and syria. how does that strengthen or weaken iran's hands in the talks? indira: it is incredibly complicated. saudi arabia and israel and the united arab emirates have -- for a run. some of our closest allies in the region cannot stand iran and do not want them to get this nuclear deal because they think it will open a bigger deal for

them with the islamic republic. officials say they have taken regional issues out of the talks. the issue of yemen came up last week but it is not something that has been part of the negotiations. they tried to keep the two things separate. i wanted to second what peter is saying that it will be hard for lawmakers in the end if the administration is able to make its case and pitch the deal and as much detail as they are able to give which is probably going to be in classified settings. we may not be able to find out those details right away while they continue to draft for the next three months. the never really was a march 24 deadline. that was something congress made up. the real deadline the ministers and set was tonight at midnight swiss time. we will see if they're able to pull out an agreement on whatever they can and slotted together and call a framework agreement or understanding. olivia: deadlines in washington appeared to be very fuzzy. matt: and in greece.

olivia: john kerry and president obama have to sell this to lawmakers if we do everywhere deal. what is the situation like an iran? is the foreign minister fully empowered to cut a deal with the u.s. or does he has to sell this to the ayatollah? indira: the fact is there is no way he could make any kind of a framework understanding in the first place without the ayatollah's approval because he is the supreme leader. that is a real obstacle because ayatollah has set incredibly tough conditions for a run. you see the hardliners coming out and threatening foreign ministers through the media that he should not make the concessions the west is asking for. whatever is agreed upon today would have had to have the implicit sign off if not literal sign off from the ayatollah. happens in the next three months will be really hard. it will be fighting over every

line they might get. olivia: thank you so much. thanks to you and peter cook, our chief washington correspondent. we will get back to them later today. matt: earnings season kicking off next week. corporate profits might fall. this will be a bad sign for the future of the bull market. could be the beginning of three consecutive quarters of falling profits. olivia: james bond enters the 21st century and so has aston martin. will talk about 007's latest wheels. and a palmer joins us here -- andy palmer joins us here on market makers. ♪

olivia: welcome back to market makers. time now to bring you up-to-date on the top stories we are tracking this morning. regulators have deposed jp morgan executive as part of an investigation into the bank's asset management unit. people familiar with the matter say thousands of pages have been subpoenaed. investors want to know whether j.p. morgan executives and steered clients into investments for the bank's own gain. turkey authorities are invest getting the biggest power failure in 15 years. the blackout lasted three hours and stretch from the border with iraq all the way to the border with greece. the government says it cannot rule out the stability that the blackouts were a cyber attack. jay-z and some of the world's biggest musicians are

takin on the streaming music business by relaunching tidal. jc and his wife beyoncé -- jay-z and beyoncé and rihanna will be a few of those as equity owners. the standard version will cost $10 a month. it will go up against spotify. still to come, 10 minutes from now, stocks opening a little bit lower and we will take a look at the market movers with scarlet fu. also what a deal with iran could mean for oil. at 10:50 a.m., the newest super car on the track. matt: speaking of cars, the guy with the mouse hat on that walked out i think he has a sweet ferrari. is that dead mouse with the mouse head? he had a sweet ferrari the company took back from him. olivia: i will go back and watch

it. now let's talk about the auto show. matt: analysts predict the s&p profits will fall for the next three quarters. we are likely approaching the end of a six-year bull market. bob dole is here to talk about that. we also have mike reagan to set up the story. mike, we are looking at those traditions for falling profits for the next three quarters. every time that has ever happened in history besides 1967, it means the end of a bull market. mike: not necessarily every time. there have been 33 periods or profits have fallen year after year. about half of them have stopped after one or two quarters. looking at the times, they tend to keep going for five or six quarters. more than 80% of the time, it

was associated with a bear market. it is not a great sign. olivia: bob let us get out to you. it seems like the story has been marginally growing the top line and bottom line and driving earnings. by is that now changing? -- why is that now changing? bob: one is the falling energy prices that hits oil companies really hard and that is where the biggest downward revisions have been and the other is the rise in the dollar which hurts the multinationals. what we haven't seen is the upward revisions that probably come from companies that benefit from the decline in oil prices. that will happen as the release -- they release the earnings. i think earnings will be under a cloud and therefore the market cannot make noticeable forward progress until we get this earnings nonsense behind us. i am not as cautious as some of the numbers out there are.

matt: what do you expect for earnings? bob: the earnings will be hurt to repeat by oil prices going down and the dollar going up. other earnings will be helped by oil prices going down. consumer companies, companies that use energy as a raw material, we have not heard from those companies yet about how good the news has been for them. olivia: what is your reaction to consumer confidence numbers that came out a couple of minutes ago. coming in at about 101.3, ahead of estimates. is that change your outlook for consumer stocks at all? bob: know it doesn't. i am constructive on the consumer and the main reason is the employment numbers, the monthly job numbers have done pretty well through this recent. -- this recent time of soft economic activity. implement numbers are telling us the weakness was temporary. it will take a couple of more

months before we know the answer to that question. the consumers are doing better. more jobs, decent net worth, and the oil dividends. matt: are you hearing anything -- if you're saving this much money at the pump, you will be spending it somewhere else. most likely buying groceries or clothes. are you hearing anything from companies about that? mike: one thing important to notice is companies tend to be assessments on aggregate. the fast recorders, they have been by more than 4%. that make some of the projected declines in the for the quarters seem likely to not be as scary as the one we are facing now. matt: wire analysts so bad at their jobs? 76% of us of the committees tend to be analysts expectations. mike: was an interesting note on this last week. a lot of cabeza benefit from

lower oil are taking a wait-and-see approach before raising the forecast. carnival cruises really blew out earnings estimates. the reason was there forecast for the first quarter was between nine cents and $.12. analysts were in the middle of what their guidance was. analysts tend to congregate right in the middle. if they are being cautious and waiting to see how long there are some equations about oil. how long will it stay this low? they don't want to ring the bell you on a race forecast until they know it is here to stay for the four quarter. olivia: the other variable is the strong dollar. there's a difference of opinion on what this will happen -- on what impact this will have. what do you see? mike: that is still a highly debated topic. goldman believes shave a few

dollars off of earnings-per-share. looking at the first quarter, bob is right that it is mostly energy companies that are projected to have a drop in profits of 63% according to our data. about half of the main groups in the s&p 500 are projected to have the kleins of profits. consumer staples are a big area. if you look at philip morris international, you can look at it in an exaggerated fashion parade all their sales are overseas and they are looking at a 20% drop in earnings. the dollar is a big deal for a lot of companies. than that aggregate result is still debatable. matt: who do you listen to for your analysis, bob? companies are not raising their forecasts enough but you know cheaper oil prices will have an effect. what do you look to for guidance? bob: our analysts have to make

decisions based on the fact out there that the price of oil is down meeting the raw material costs for some of these companies has gone down which means it will be more profits. they will not tell us about that in advance. we will see that in the quarters to come. as a result, we want to own companies that have most of their business here in the u.s.. before the multinational dollar hit and a void was of the energy complex. at least 20 of companies out there that results should be fine. matt: thank you so much for joining us. olivia: matt and i will be right back here in just a second. don't go away. ♪

olivia: still to come, how iran may disrupt the oil market.

it depends on whether the economic sanctions will be lifted and how quickly. matt: check out how hot this new aston martin is. this is one of the concept cars from the luxury automaker. we will talk to aston martin's ceo. ♪

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with the fastest in-home wifi and millions of hotspots xfinity is perfect for people who love fast. don't miss furious 7 in theaters april 3rd. >> live from bloomberg headquarters in new york this is "market makers" with erik schatzker and stephanie ruhle. matt: welcome to market makers i'm matt miller. olivia: i'm olivia sterns and we are in today for eric and stephanie. but is get to the top stories we are tracking this morning. american showing more confidence in the economy. it rose in the month of march. a car dealer's trade group predicts the federal hold off raising rates through the summer. that should give auto sales a boost even if economic growth slows. national automobile dealers

association predicts weak economic growth indicates the fed will not raise rates until september. fly vehicle sales in the u.s. rose more than 9% in the first two months of the year. lufthansa's insurers will have to pay up in the wake of the crash in france. it says it's insurers are setting aside $300 million to cover claims. that is twice the usual amount most likely due to the fact that prosecutors say the copilot crashed the plane deliberately. the world's largest real estate private equity fund is buying three high-end resorts. blackstone group will pay about $1.3 billion for the hotels including the ritz-carlton, jw marriott in orlando and the jw marriott in scottsdale arizona. the ncaa is pressuring indiana legislators over that new law that says would allow discrimination against gays. the final four takes place in indianapolis this weekend and ncaa headquarters are there.

one told the new york times in my move future events -- it might move future events. matt: us take a look at early movers with scarlet fu. : scarlet: last trading day of the first quarter and i will be back to talk about the first quarter best performers and was performers. this morning, i am taking a look at a couple of companies in the tobacco space. to are down for the fifth time in six days. last july, reynolds said it would buy lorillard. a decision could come this week. wells fargo analyst said the market is overreacting and there is still a 90% probability the deal will be approved. watch for that. we have some analysts calls a want to talk about. priceline was raised to buy.

the analysts are saying european risks are priced in and they see signs of stabilizing european headwinds. present gets about two thirds of its sales from netherlands. deutsche bank cut to neutral which speaks to how analysts are divided over whether the german bank's plan to exit retail banking is a good move. it could drop up equity but others disagree. the stock is lower by 4/10 of 1% now. jcpenney getting a 6% boost. for scored a comparable sales will improve ahead of easter. an update on charter communications. we mentioned earlier how it is buying a majority stake a bright house networks. the stock is at a record high. the parsec for this transaction is $10.4 billion in, and convertible deferred shares. there is a $2 billion cash part of it as well. lots of conditions including shareholder regulatory approval.

olivia:.thank you so much can you believe it is the end of the quarter? what a magical quarter it has been. matt: a feel like yesterday was valentine's day. matt: equity markets are flat from the start of the year. we have been having these up-and-down moves so when you have a great move up like yesterday you have a big move down or to dead cat -- or a dead cat drop if you want to call it. olivia: everyone is pushing back the fed will raise rates. the s&p 500 up only 1% and the dow up half a percent. matt: some of the smart as good when the market did not think the fed was ever going to raise rates this year and still don't. olivia: match and segregated knowledge of guests on the show. coming up we go to switzerland where we are waiting on news of

the talks on iran's nuclear program with the impact on the oil market. ♪

olivia: the oil markets are watching the iranian negotiations closely. it owns the world's fourth-largest crude reserve. a new deal could bring much of it back to the market. what is that mean for prices? we are joined now via skype by stephen. currently trading about $45 a barrel and if we get a new deal by the end of today, what impact would it have? >> that deal would be contingent on the lifting of sanctions. it will free up over a million barrels a day of iranian oil to be dumped on the market. the \ indication here is because of the structure of the

market, prices are cheaper today that now the future so there is huge demand in storage capacity because it is a virtual risk-free trade. you buy oil today at cell it out on the futures curve down the road six or eight or 12 months ahead and you can store the oil. the difference between the two prices pays for your storage with the profit locked in. what we are seeing now is a massive rush by traders around the world to seek out every bit of available storage capacity. here in the united states, storage capacity -- everything will tank will be filled with oil likely before the summer. same situation around the globe. there is a massive push to store oil on oil tankers and so it at some point in the future. because the profits are there that will be closed so the issue now is once the storage capacity gets maxed out, and you had a

million a barrels a day of iranian oil to market on top of u.s. oil production which is at the highest level since the early 1970's, if you don't have any place to store the soil, it has to go on to the spot market. it will have to be discounted even further to encourage consumption. that certainly sows the seed for loyal oil prices. -- lower oil prices. matt: how much lower? stephen: we are at a stalemate between $55 and $45 a barrel. you break the $45 level because prices are so low and because they are disconnected from the economics, no one can say hello we can go. we identify the nice big round numbers. you break 45 and everyone will be shooting for sub $40 oil. if you look at it with the options markets for trading were put at 40 or 30 or even $20

level, there is an insurance theme purchased to protect from lower prices. all i can say is there is a very active market. and massive blowout in the 30 and $20 puts. people think it can go that low. matt: i am guessing storage space must be costing more and more as we approach capacity. that will factor into the price somehow. stephen: yes, it is interesting that once the storage agreements roll out and the need to negotiate for new capacity, the storage owners are on board with negotiating and getting their share of the storage. if we look at the stock performance of some of the terminal owners, their stocks have been very well performing. as a clear signal they are getting their fair share.

oil company stocks haven't a performing rather poorly so that was suggest to me that the tankers are doing a poorer job uncovering their share of this very rare profitable opportunity. olivia: that is interesting. you say u.s. capacity is 90% maxed out. when we had the brim -- when do we hit the brim? stephen: at the current pace capacity will be maxed out maybe even in april. shall capacity that show capacity will be maxed out july at the earliest our august at the latest. olivia: the deadline six a clock p.m. eastern time today in the deadline talks with iran. iran has been under investing in technology to extract oil and gas. it is not as if they can open up the spigots and produce millions

of barrels per day again. stephen:: we have to keep in mind that they have been producing all the way through the sanctions. there is a tremendous amount of iranian oil already sitting in storage and sitting in tankers. that is oil that can hit the market immediately. what we are seeing in a ran, -- in iran let us bear in mind that the 22 nation arab league are the last 22 countries outside of israel that want to see iran with a nuclear weapon. there is a potential blocks one of the current conflict we are seeing with the u.s. backing iranian interests in iraq and then turn around and back sending corrupt interests in the arabian peninsula against irani and sponsored militia -- iranian sponsored militia. we have to keep the black swan

in mind that the regional conflict exploding into a much broader conflict. anything like that does so the seeds for a potential spike if we see a disruption in the flow of oil. what we know right now is the fundamental supply extremely outweighing demand spells lower oil prices with the caveat that we have to become a sent of a broader -- we have to be cognizant of a broader regional disorder. olivia: the could become a base for piracy and could rattle the markets. finally, why did nobody see $50 oil coming? it obviously appears to be a supply side driven collapse. we have had stories of how the u.s. will have the world's largest energy producer by 2020.

stephen: you are absolutely right that we were headed in this direction. no one saw it happening this fast. it was an absolute massive pullback. it is a supply because of the point you just made. we have been growing supply here in the u.s. and around the globe for the last two or three years. it is hard for me to fathom the all of a sudden we woke up in october and said there is too much supply in the market. this is as much of a demand driven issue, a dollar driven issue as it is to a supply issue. i think this pullback not only oil but in the lumber market and copper market and alumina market , they have had an absolute route and prices. that should be globally and economically a canary coal mine that it is not all rainbows and unicorns in the universe. olivia: thank you so much. matt: time now to bring you

up-to-date on the top stories of the morning. regulators are looking into jp morgan's asset management unit. the sec has opposed associates and subpoenaed thousands of internal documents. investors want to know whether jp morgan investigators steered clients into investments for the banks gain. a big transaction in cable tv. try to commit negations has agreed to buy a majority stake of bright house network. the price is $10.4 billion. bright house is controlled by psi new house junior. the deal is contingent on several new things. here is another example of march madness. the resale market for final four tickets wins fans who want to see kentucky finish an undefeated season. average resell price for a ticket to the game saturday and monday in indianapolis is almost

$1900. that is a record and 25% more than the previous record that was set last year. those are your top stories. olivia: how much do players make? matt: very good point. in 10 minutes, more on charters big deal. the cable company buys bright house network. plus it is jay-z versus spotify and his friends plan to conquer the music streaming. lastly, last-minute tax filers. why are there so many this year? even more than usual. it is a good sign for the economy. think an aston martin is fun to look at? you ought to drive one. i have driven every model for sale. it is a privilege and an honor. we will talk to aston martin ceo andy palmer coming up next. ♪

matt: executive of the world's biggest cognates are here in the big apple this week for the new york international auto show. one luxury company in the spotlight is aston martin. it is unveiling what some are calling a supercar. ceo andy palmer joins us now. . , i am currently driving an aston martin. they have let me out a vanquished to test out for the week and it is going well. i have driven everyone in my favorite is the vintage gt which is the lowest entry price. andy: it is all about fun. olivia: doesn't buy a car for the sound it makes? matt: it is important. i read in the wall street journal that you guys are thinking about making an electric version of the four-door. that would put you in direct competition with tesla but on a higher end of the luxury scale.

andy: there are reasons for doing an electric car. one is that i hope we can keep the b12 alive forever -- the fee v12 alive forever. to keep the average, you need something that is very low emission and there is nothing more low emission that an electric car. the balance of the average averages itself out. the cars have also been about the sound. it with a smile on your face. if you follow the normal trend you will go v8, v12, so what is the alternative? the alternative assignments is silence.

matt: more shocking when you hit zero to 60 in less than four seconds and don't hear anything. olivia: it is working for tesla. andy: they have done a wonderful job. we will put a car that is more luxurious but they have lay down the framework. matt: you will not work with tesla. andy: know we will not. matt: who are you going to work with? andy: we haven't made the decision yet. olivia: you want to announce them right now? andy: i am sure they would like me to announce the minor but we are looking at groups around the world but there is one group in silicon valley that is interesting. matt: this will cost a lot. one of your partners is willing to put in more money. could your shareholders to minutes and they're willing to make a new car? andy: we put a whole plan together to bring complete

replacements to our sports car series. it brings the dbx which is a crossover car. matt: also possibly electric. andy: and it reduces another brand. the whole portfolio is basically being approved by shareholders. we are in the final knocks of raising our finance. olivia: there so much money and demand out there for suvs that i was stunned to learn porsche gets more than half of its revenue from the suv. where are you making just a crossover? one of the full-fledged soccer mom think? andy: because we make beautiful cars. olivia: but has to be smaller. andy: i have done many suvs, but an suv by nature has to be all about versatility and you essentially end up with a box.

aston martin is not about making boxes are at it is about making beautiful cars. it is all in the name. matt: db 10 is a beautiful car. are we ever going to see that car on the street? andy: only if i am driving it. there are 10. they are done for the movie. we use it as a way of showcasing the new design language for aston. matt: what is the next road car we can make that will make noise? what is the new product coming out for aston martin and went? -- and when? andy: we will replace the entire sports car lineup in the coming years. we will cap production at 7000 units a year so we will keep that exclusivity.

in our history when we have launched new cars, we were typically between 7000 and 8000 and we have since doubled ourselves network so demand is far above 7000. matt: you mentioned the 5% partnership with -- do you have any plans to increase that? andy: we are already working closer together. we take from them the architecture. very good for making sure we have all the safety systems in the cars. we take a v8 engine from them but no plans beyond that right now. olivia: that is a very sexy looking car. matt: absolutely. i cannot wait to see it as the auto show -- at the auto show. thanks for stopping by. i appreciate you having us in the office. i had to pry myself away from andy palmer there. olivia: market kick cats and a whole lot else.

have you filed your taxes yet? you are not alone. ♪ .

>> live from bloomberg headquarters in new york, this ism "market makers. olivia: volatility has been the rule on wall street as the quarter comes to an end. matt: jay z may have 99 problems, but going against spotify isn't one. olivia: matt: i don't understand what that is. olivia: ground up green tea leaves. this is matt miller, i am olivia sterns. we are very happy to be in for

stephanie and eric. we are tracking the top stories for you. in switzerland, negotiators are getting close to an agreement on iran's nuclear program. any deal that comes out, the self-imposed deadline will not resolve every issue, those will be down within the next three month. u.s. and five other countries are trying to prevent iran from building a nuclear bomb. iran wants the west to roll back the sanctions. president obama needs to sell any agreement to a skeptical congress. home prices are rising at a faster pace, the s&p case schiller index was up 4.6% in the year ending in january, the biggest increase since september . one possible warning signal, home prices are rising twice as fast as wage gains and the market could be hurt if mortgage rates go up. hewlett-packard is ramping up its fight against the cofounder of a company it bought. hp is suing michael lynch for more than $5 billion. the former autonomy see if --

cfo is named in the lawsuit. hp maintains they gave an overly optimistic extra of the companies financial health. the foreign management team lance on filing a counter suit. a big takeover in the cable tv business, charted medications as read to buy a majority stake in bright house networks for $10.4 billion. bright house is controlled by billionaire syed new house and is the sixth largest cable operator in the u.s.. charter will acquire some assets from comcast and comcast complete its purchase of time warner cable. if that deal does not go through, neither wilt charters do with bright house. the new york daily news maybe worth one dollars. more zuckerman will take bets for his tabloid. cablevision is prepared to make an offer for just one dollar. the company owned the newspaper newsday and would not need the daily news'printing presses.

the field is all set for the women's final four, connecticut will be there for the eight straight time, beating dayton. the two-time defending national champions will play maryland this sunday and cap. the other semifinal is notre dame verse south carolina. matt: today is the final trading day of the quarter. while the major averages will finish the quarter in the green, it has been a model three months. scarlet fu is here to look back at .15's first-quarter -- 2015's first-quarter. scarlet: it appeared the s&p 500 would in the quarter with a loss, but the rebound has put us in the green. this is not exactly robust rally if you look at a year to date chart. the dow is up 4/10 of 1%, the dow -- the s&p is up 1%, the record high came on march 2. the nasdaq cap chugging along. getting within --

it has come back down. it is farther away from matching a record high. this is all on the back of the next economic data where people cannot get a read on what the fed will do next. matt: on earnings, mike reagan talking about bob dole if the next three quarters are earnings negative, that is not good for prices. scarlet: it could spell a bear market. that has proven to be the case. we have already heard anecdotally from intel that sales this quarter will be lower than anticipated because of the end of the pc refresh cycle and because of the stronger u.s. dollar, especially in europe. because of lower demand for memory chips. it is not just a pc and for structure, but also mobile devices. if you look at estimates earnings are forecast to shrink due mainly to energy companies.

if you strip out energy companies earnings earnings overall would likely rise. energy compass are the components. olivia: how does the treasure market fold into the equity market. this was for speedier when the feds would raise rates and create -- scarlet: investors have been disappointed and wrong every turn of the way over the last couple of years. they get it wrong. that and the appeal of treasuries compared to sovereign debt in europe or japan, where returns are lower. the 10 year yield begin the year at 2.17%. it hit a low of 1.63% in late january, right now, below 2%. able are trying to get a handle where the value is in these treasuries. there have been tons of volatility in the currency market. think back of what happened into switzerland with the swiss national bank decided to de-peg the euro. matt: the appeal of u.s.

treasuries first european treasury is not just about yield -- if i want to buy treasuries and in europe, i see a negative yield but they are buying $1.2 trillion worth mtv, i would rather go there. here, if you're going to raise interest rate in june or september -- scarlet: or maybe not. matt: i think the fed hinted pretty strongly at that. scarlet: how long before they raise interest rates again if they do raise interest rate. it may be one and does. i know you hate those phrases. matt: i love one and done. olivia: the european stoxx 600 up 18%, the dax is up. scarlet: when you translated to u.s. dollars, the gains shrink. olivia: the exchange rate is not so -- scarlet: a lot of people have been taking money out of u.s. equity markets. if you look at valuations, in the s&p 500 right now, 18.5

versus the historical average of 16.9. they are at five year highs combined with the fact that earnings are set to shrink and companies may not have as much firepower to buy back their shares and artificially boost earnings-per-share, gets people reason for concern. matt: always good to get back to the basis on bloomberg television. -- back to the basics. olivia: we are going to keep talking about big deals. consolidation in the cable industry, charted medications have just agreed to by a majority stake in bright house networks for $10.4 billion. we will speak to paul sweeney. he joins us from princeton. a spy to us what is charters strategy. paul: to get bigger. john malone took a stake in charter about two years ago with the stated strategy of consolidating further the u.s. cable tv business by investment

in charter. since then, charter has been active, making a run at time warner cable. they got beat out by comcast and ideal is still pending in front of the regulators. harter will also get a piece of some of the divested assets coming out of the top gas, time warner cable deal. -- comcast. this is another deal for charter as they continue to consolidate the cable tv business along with comcast. in 2014, we saw the beginnings of a consolidation of a tv and it will continue in 2015. matt: are regulators going to have a lighter touch with these cable companies since they have introduced that neutrality? paul: in theory, yes, but this deal has gone through a tremendous amount of regulatory review. it has been -- the closing has been delay comcast announced they are postponing the closing of this deal. they originally said the first

quarter of 2015, and now looks like it will be later in the year, maybe the second quarter. the regulators are looking closely at the consolidation, not just comcast and time warner , it is also at&t pending's purchase of directv. a lot of consolidation going on. the fcc and part of justice are looking at these transactions carefully. the net neutrality rule is a net plus for these deals. investors are still quite uncertain about whether the comcast deal will get approved. olivia: thanks to paul sweeney joining us from the printed office. on the news that charter has agreed to acquire bright house networks for $10.4 billion. you know what mine -- my indicator is -- my brother is a banker. i always try to -- he won't. as soon as i see him not coming home until three clock forgot -- 4:00, i know something is up.

matt: we are going to take a break and talk about another deal, jay z and friends take on the streaming music industry -- who do you think is on that one. olivia: we will look at the drink made from a green tea leaves that is taking the u.s. by storm. matt: it is just the. ♪

olivia: we are showing you live pictures of mike pence, the governor of the nina speaking out in his cut -- of indiana speaking at a news conference. the religious freedom law -- many say discriminates and we will be monitoring that news conference. this is governor mike pence speaking live at this hour. matt: time to bring you up-to-date on the top stories. americans sell -- see more confident about the economy,.

households are looking forward to more job opportunities and rising incomes for the next six months. that may help consumer spending which makes up 70% of the economy. in turkey, authorities are invested in the biggest power failure in 15 years. the blackout lasted for almost three hours and stress from turkey's border with iraq to its border with greece. the government says it cannot rule up the possibility of a cyber attack. ibm is teaming up with the parent company of the weather channel to build tools to help companies in the retail insurance and utility industry prepare for bad weather. we spoke with ceo david kenney of the weather channel. david: in terms of bringing data. we will help businesses make better decisions and is based may completely different scale a global scale for the whole economy.

the private sector and the public sector. it is a completely -- it is a game changer in a fundamental way. matt: ibm wants to attract more customers to its analytic business. customers have failed because of demand dropping to commuter hardware and services. coming up in a few minutes why are you putting off filing your taxes until the very last minute? it is a very american thing to do. plus, the green powder that gets you going, the energy drink made from green tea leaves, we will meet the pioneers of the matcha movement. it is just tea. olivia: it is totally legal in all 50 states. matt: i have a matcha mikit kat. olivia: we are going to be talking about tidal jay z teamed up with friends and hope

of changing the music industry with the streaming service. artist took to the stage in new york with jay z to unveil the $20 a month service. they say tidal is friendlier to artist as a drivers will get access to exclusive content. is there room for another music streaming service? andrew, thank you for joining us. i am intrigued because they have these big artist but $20 a month sound like a lot of money, do we know what this means for their pre-existing contract? can i no longer listen to jay z on spotify? andrew: no that is not the plan, it speaks to the trend of when doing, giving exclusive to itunes or spotify or pandora. matt: if he has a record, a goes out on tidal first, but you can eventually buy it on itunes?

andrew: taylor swift does not have an equity share but -- matt: beyoncé could, or the guy with the mousepad. olivia: you might not be able to stream it on spotify? andrew: potentially. rihanna released a new single she is one of the partners, you can stream it on spotify but you can stream it exquisitely on tidal or buy it on itunes. do people want to continue downloading or stream it? you can stream it off-line so you could add it to a playlist and take it with you wherever you go. olivia: taylor swift was absent among the stars on the stage, everybody from sure to madonna to nicki minaj, rihanna. there are stories how jimmy irene -- jimmy iovene.

they are rolling out a streaming radio service through itunes with beats. is tidal a big threat? andrew: there is already a little behind the scenes bidding war with artists that he was talking to, that jimmy is also talking to. they are going to compete with each other. beats will be a premium subscription service, close to be $9.99 streaming service that tidal also offers. olivia: beat is not going to give his artist equity in the platform? matt: this is an import aspect the hd version, which otherwise you are going ghetto is $20 a month -- a lot more than spotify costs -- is it that much higher-quality? andrew: it is seedy quality

audio without having to play cd -- they do partnerships with the services. it is for the audio enthusiast. tidal also has more video content than other services him a death punk a short film that was popular that can only be streamed on tidal. the more exclusives you get the better the value. it is still very much a moving target. matt: definitely sounds like a lot changing in this world -- evolving rather quickly. thank you for joining us. today on "taking stock" catch one of the new co-owners of tidal i sure is on with pimm fox. he is talking his big new project, fighting poverty at 5:30 p.m. eastern on "taking stock." i sure seems to be such a nice

guy, whereas justin bieber seems such a -- olivia: i'm not going to touch that with a 10 foot pole. the governor of indiana speaking about the controversial law being attacked that is -- as and i gave. he says it is intended to protect religious liberty, not to disseminate against the gays. he says he wants the legislature to pass a clarification to make that clear. he is taking questions. governor pence: if i read some of the stuff about this bill i would have the same concern that millions of hoosiers have had and people across the country have had. it just is not so. when president clinton signed this bill in 1993, the american civil liberties union said then, that the religious freedom restoration act was the most important legislation considered by congress since the first amendment was approved. ok? when state senator barack obama

noted for this bill in illinois it was with broad and bipartisan support. one of the great pieces of the legislative history of the religious freedom restoration act is it is a way of bringing people together, consensus, this has been broadly supported in a bipartisan basis. i would suggest that what explains the concerns that have been expressed across our state and across this nation has been mischaracterization. in a real sense, that is why i think we need to focus specifically on this perception that this creates some license to discriminate. that is why i am calling on the legislature to do. -- what i'm calling on the legislature to do.

[indiscernible] governor pence: the language is still being worked out. what i want to make sure is that it is clear to hoosiers, the people i serve. and frankly, clear to anyone that would come to visit our state -- that there is in this legislation, no license to disseminate, no right to deny services. i think we can develop that language. [reporter asking question] governor pence: this law does not give anyone a license to

describe and eight. this law i signed last week does not give anyone the right to deny services. the language i am talking about adding, i believe would be consistent with what the general assembly attended and what i intended. back there. i am calling on the general assembly to send me a bill that focuses on the issue. that focuses on the smear that has been leveled against this law and the people of indiana. that is, that somehow through our legislative process, we enacted legislation that created a license to discriminate. that is so offensive to me as a hoosier. i know it is offensive to people

across the state of indiana. we have to correct that. first, because it is not true. secondly, we have to correct that perception because it has to do with the perception of our state. and our businesses. eric? [reporter asking question] governor pence: we need to make it very clear, irrespective of whether those ordinances exist, that this law does not give businesses a right to deny service to anyone.

matt: we are conferring with our bloomberg anchor about this. an interesting piece detailing how much money indiana stands to lose if this boycott really picks up and gets going. olivia: he is picking up on what tim cook wrote in his op-ed in the "washington post." look at very red halters -- op-ed. the law could hurt the state's economy. matt: very emotional plea to mike pence. -- from mike pence. he feels so strongly about this and yet they felt the need to put this legislation through, and he said he wants to go back to the legislators and have them put in different language. olivia: i am shocked they're so

much misty mystification around the story and we have the live feedback so let's get back to governor mike pence. governor pence: this law has been smeared. we are going to mark our 200 anniversary next year. the name and reputation of the people of indiana is strong and secure. but the reputation of this law and the intentions of our legislature have been called into question. i believe we need to deal with it and deal with it this week. and we will. we will fix this and we will move forward. that's what hoosiers do. no comment.

tom? [reporter question] governor pence: i want to make it clear in the law that the religious freedom restoration act does not give businesses a right to deny service to anyone. that this is about -- and i said before to people -- and i want to stipulate the coverage on this has gotten better and more fair. early on, there was reckless and irresponsible reporting about this. i just would submit that it is important that we address the principal allegation here. with legislation in this law that makes it clear that it does

not give businesses a right to deny service to anyone. maureen? [reporter question] governor pence: maureen, i was not talking about you. i do not want to let the indiana press office hook. i will anyway. the indian a press has had this right from early on. some of the national reporting has been ridiculous. i encourage you to do a google search on this license to discriminate business. you will find all of it. yes sir? [reporter question]

governor pence: i have been on the phone talking to business leaders my team has been talking to business leaders. i have been reaching out to the leaders of associations. and corporations around the country. setting the record straight about what this law does. and what our intention is in passing it, and our determination to correct the perception that has taken hold. [reporter question] governor pence: that's a good question. i think a more relevant event was the hobby lobby case by the supreme court. which is a case in point of the value of the religious freedom restoration act. the obamacare was passed into

law it included mandates on health care coverage for businesses. hobby lobby and i may add the university of notre dame filed federal lawsuits to challenge obamacare under the religious freedom restoration act. the supreme court and the majority opinion last year upheld the right of private business owners, under the religious freedom restoration act, citing the act. here is the background. in 1993, the federal law was signed by president clinton. in 1997, the supreme court of the united states ruled that the act did not apply to states that did not have their own statute. that's why you had 19 states that have adopted statutes

about 11 other states that have adopted it in their case law this balancing test, the standard. indiana never did. in the wake of the hobby lobby decision to ensure that hoosiers in our state courts had the same level of scrutiny when their religious liberty is infringed upon the general assembly moved with this legislation and that was the precipitating event. [reporter question] governor pence: peoplare entitled to their opinio. this law does not create a license to discriminate and this law does not give businesses a right to deny services to anyone. i think it woul be helpful if the general assembly were to get legislation to my desk that made that clear.

and made that clear in a statute. yes? [reporter question] governor pence: the purpose of the religious freedom restoration act is to give the people of this cntry the opportunity to go into our courts, state and federal, more than 20 years where they believe government actionas imposed their religus liberty. that is the foundation of this idea. this is aut restraining government overreach. and iwant to say, agai the

reason why this was such broad and bipartisan measure over much of the last 2 deces, is ecause every american cherishes religious libert we all understand the importance of the freedom of consciee. it is enshrinedin our constitution, enrined in the constitution of the state of indiana. that is whathis is about. i understand that the perception ofhis has the governor saying he was not expecting the backlash the law has created, he says that the national reporting on the issue has grossly mischaracterized its offensive to say anyone in indiana discriminate. matt: he said the reporting has been ridiculous and he was talking to maureen, probably eight new york times columnist -- olivia: he says he will fix the

law to ensure that there is no discrimination. he says the original law was to restrain government overreach and that it has been grossly mischaracterized. matt: he will put language that will give you a better perception of what going on, because he says it does not allow the termination or people to deny services based on discrimination or prejudice. he says it is only about religious freedom, this flies in the face of everything we read on the internet or seen on social media about this law why he says the national reporting has been ridiculous. i haven't read much of the local press, though i will go back and do that. olivia: the cover of the indianapolis star, the front-page op-ed, and impassioned plea about this ruling. matt: cory, what you think about this speech? passionate speech, passionate to aq&a session.

we have seen a strong response from tim cook. >> some things were disingenuous he said. it does allow people to espouse religious beliefs and decide not to offer their services because it offends them. weather is a landlord or a florist. tim cook taking a very strong stance about this, talking not just about this law but other laws and lots of other states. you -- you wrote an op-ed. the loudest voice has been mark benioff of salesforce, where he has been actively recruiting other business leaders in technology to take very important steps and has personally spoken with mike pence.

mike pence has been talking to u.s. business leaders, benioff was able to talk about all the jobs and the business he has brought to indiana and all the things he will not do. the -- even offering, he would consider moving employees out of indiana when he feels they are affected negatively by this law. taking a strong stance and encouraging other companies like yelp, angie's list, to reduce their spending and their business in indiana as a result of this law. olivia: there is an op-ed from a bloomberg columnist critical of the tim cook op-ed, saying tim cook gets religious freedom laws all wrong. explain to me, to viewers, what it is that he thinks tim cook got wrong? >> there is a legal debate about that. i know lawyers.

can i play one on tv? what's different about the different states is that they already have laws in place -- governor pence has compared this law to the law in illinois, but in illinois there is a human rights law that protects the rights of people, including people who are gay. the law in illinois asked as a counter to that, indiana is not have this, this law stance on its own without any protections for gay, lesbian transgender people. the law that allows business owners do not offer services to people who sexual orientation they do not care for stands alone in that state without a human rights law protecting people. there is a different -- different from state to state. the white taste of this law is specifically focused on gay marriage and gay people after other efforts in the state to ban gay marriage have not succeeded. olivia: thank you for

clarifying, if this whole reporting, editor at large thing works out, i think you have a future with court tv. olivia: cory johnson, thank you. matt: it ramps up energy levels without the crash of that, we will meet the pioneers of the matcha movement. ♪

olivia: syria's president says he would welcome a dialogue with u.s., but not everything would be on the table. he spoke to charlie rose about the four-year insurgency against his government in syria. also that the rise of islamic state, he was asked by charlie how he sees the u.s. role. >> we will not discuss with the americans or anyone what we are going to do regarding our political system, our constitution, or our laws. we can cooperate regarding

fighting the terrorists and making pressure on different countries like turkey, saudi arabia, and cuqatar. olivia: you can see all of that interview with syrian president bosch are all caps on tonight on charlie rose at 7 p.m. eastern time on bloomberg television. matt: they are calling it the healthy espresso. we will meet the arch of her doors who brought matcha to america. ♪

matt: i am in the middle of

eating a matcha kit kat. i am going to bring you up on the top stories. mike pence says he wants changes to that law that many say would allow dissemination against gays. then says he has meeting with legislators to address concerns about the religious freedom law. mike pence: after consultation with leadership of the general assembly i have come to the conclusion it will be helpful to move legislation this week. that makes it clear that this law does not give businesses a right to deny services to anyone. matt: indiana has been threatened i business boycotts and the internet was star list a rare front-page editorial demanding that the law be changed. hewlett-packard is ramping up its fight against the cofounder of the company it bought. suing michael lynch of autonomy

for more than $5 billion, the formal autonomy cfo is named. hp maintains lynch and other managers give an overly optimistic picture of the company's financial health. the former management team has plans on filing a counter suit. a big transaction in the cable tv industry, charter has agreed to by a majority stake in bright house networks, the price is $10.4 billion. right house is controlled -- the charter deal is contingent on whether comcast will be allowed to buy time warner cable and selloff other assess to charter -- assets to charter. the resale markup for final four tickets, fancy want to see kentucky finish an undefeated season, the average retail price for a ticket game saturday and monday in indianapolis is a most $1900 aps, a record and 25% more than the record set last year. olivia: there is a new energy

booster in town, matcha is a vibrant green tea powder that is 100% pure green tea leaves. the superfood is popping up in coffee shops and grocery stores from new york to not -- to los angeles. is it here to stay? let's ask the pioneers,. they join is on set. thank you for coming and bringing props. let's ask lane to the audience what -- let's explain. >> the key is from japan, it is the ultimate superfood. olivia: you are consuming the full leaf, with no multi-you are consuming the nutrients that seat into the water, but with matcha you are consuming the faulty. matt: you actually put it in the water. olivia: how much more caffeine

how much more buzz is there? >> it has half the amount of caffeine as an espresso and a third and a cup of coffee. >> you get this three to six hour sustained boost. a calm alert. not a jitter and a crash. matt: olivia spent the weekend in japan, she was making matcha and there is a zen aspect of doing it. olivia: my hair looked really good. it was very cool. this is a laborious process -- have you make this compete with the ease of walking in and out of starbucks? >> that is where we come in, we offer a starter set that has necessary tools to make your everyday matcha moment and we have created nuances to make it easy for the american consumer. you can use this to make your

everyday matcha or throw it into your smoothie or mix it up with coconut water or make it into a latte. olivia: is this something to do at home or at restaurants, or do you have plans to open brick and mortar stores and rival starbucks? >> this is a direct consumer online business, that is our sweet spot. we are in cafés, restaurants coffee shops around new york city that make up about five percent to 10% of our sales. matt: have you talked to starbucks -- there are national chains -- have you gotten in touch? >> people are approaching us and saying we want to work with you. we love your community, quality, we love the brand and what you stand for. olivia: matcha has been around for the 12th-century. it is catching fire in the u.s. in part because you are using

fashion models. >> we have done activations in new york fashion week and found that these doctors are on the cutting edge of the trends of healthy trends in general. whether that is athletes models, chefs, they really started to incorporate this in a lifestyle and we are seeing the broader community incorporated. from professionals needing an early morning me up -- take me up, to moms. matt: four olivia, it is great to have a zen moment and she can wear her robe and put on enya and do that whole thing, but i want to run out of the house as fast as i can after i jump out of bed, can i get it in a take-up or an instant form -- a k-cup.

a milkshake for tebow, i would make. >> i make it every morning and less than 2 minutes. you just have to make an m or a w. matt: it is all in the rest, olivia. olivia: thank you so much. >> thanks for having us. olivia: eric and steph will be back. matt: this matcha kit kat was good. it tasted just like chocolate, but it is green. there is arctic ethene in chocolate, -- there is are ready caffeine and chocolate. olivia: i am pretty sure it is for kids and does not have a lot. matt: eric and stephanie will be back tomorrow, and the auto show, i will be on the floor with the ceo of mercedes uso, stephen cannon and i will be

talking to everybody throughout the day from porsche to mercedes to bmw. it will be -- lamborghini -- it will be an awesome day, so come back for that. ♪

scarlet: it is 56 past the hour we are on the markets.

we are midway through the last trading day of the first quarter and u.s. stocks are limping to the finish line. with indexes in the red. they are trimming their gains for the quarter since january, equities have swung between gains and losses on mixed economic data that has sent conflicting signals on whether this recovery is strong enough to justify higher interest rates . no decision on that. running me is kevin kelly -- joining me is kevin kelly. we have seen yesterday 500 swing up, swing down, we will finish with little changed on the year, the picks averaged 16.6 during the first quarter. is this where we need to be, or will they continue to move higher? >> it is heightened for the fourth quarter, considering where we have been. that is indicative of what we should seek in the rising interest rate environment. there may be some window dressing, paring positions at the end of the quarter what will be telling is this friday, march jobs report i will come

out. we will probably be quite to we get confirmation. scarlet: there is unresolved issue, not just the jobs report, a debt talk and iranian nuclear talks. >> geopolitical risk which impact the dollar, because the euro could get lower and the dollar could strengthen, which could impact earnings, especially sectors that have been growing like tech to have large exposure. scarlet: we heard from intel the strong currency headwinds and the end of the pc refresh cycle. i want to move to another sector you are focused on, the biotech's they have been wrapped up in that momentum trade. we saw them tumbled in recent days. you are using the etf ibd, up about 15%. what does this have to do with earnings, because so many people question whether biotech companies have earnings. >> that is where the earnings are and where the growth is. we were talking about the s&p

500 may be flat, these are companies that are growing in earnings. celgene -- this green is going on to earnings till may. you want to buy the $355 call for about $10 it is a cheap way to buy exposure. biotech has beaten every other sector in the s&p 500 for the last 4 years. scarlet: why not i outright -- buy it outright? >> people want to be careful and partial gains. you can take a nominal amount and get wide returns. with the volatility and uncertainty, it is a great way to play. scarlet: there is a link to the bigger macro picture, if interest rates head higher, what does that mean for the biotech companies? >> biotech's interest rate insensitive. you can see the growth we talked

about before, earnings doubled by 2020. they are not impacted by interest rates. scarlet: the jobs report is on friday, the stock market is closed, you will be working what are you looking for? >> wage growth that is what everybody is focused on, it has been lagging. we are seeing wages rise and lower. scarlet: we will be back. ♪

pimm: welcome to money clip. i am pimm fox. around the world syrian president bashar al-assad is still in power. he says he is not going anywhere . in media, jay-z, beyonce, and an all-star cast of musicians launch a new music streaming service. does the world need a new music streaming service? we will find out. and a misunderstanding about the