>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. : stephanie: shares are bouncing back. erik: iranian oil sends prices plunging. stephanie: a new cloud-based payment system is turning ipads into cash.

i'm thrilled you are here. a i think you look fantastic today. how was your easter? brendan: i tie-dyed eggs. stephanie: we don't tie-dyed eggs in my house. we have a proper easter hunt. brendan: week tie-dyed them and looked for them. that is what we did in boston. we have breaking economic news in non-egg related news. scarlet fu is in the newsroom with the headlines. scarlet: here we have a read that is on key with what economists have been looking for. 56.5 is the read. anything above that signals expansion. it does signal a slowdown of

56.9 but it was in line with what economists had anticipated. the service sector has remain immune. this shows the divergence between the manufacturing center. -- manufacturing sector. certainly moving in the other direction whereas services has stayed stable. it is higher so that reflects selling and treasuries. u.s. stocks are holding on at the moment. currently up by 1/10 of 1%. stephanie: the top business stories of the morning.

a president obama is calling the deal with iran the best steps so far. he tells the new you are times that the agreement will make sure the iranians to not get nuclear weapons. also he tried to reassure the that it could put israel to danger. president obama: i want to make the kinds of commitments that would give everybody in the neighborhood clarity. if israel were to be attacked by any state we would stand by them. stephanie: benjamin netanyahu is not convinced. he says the deal will lead to a nuclear armed middle east. the price of oil is rising. futures are up in london and new york. two possible causes, iran's nuclear agreement did not make it clear when the country could

start selling oil again in the open market. saudi arabia has raised prices from shipments to asia because it sees global demand rising. governor jerry brown warns a drought may not be limited to his stay at is now in its and brown has ordered towns and cities to reduce water consumption by 25%. he tells abc news it is not just a california problem. governor brown: that weather will be reflected and show up in other parts of the world. the climate change is not a hoax. we are dealing with it and it is serious. stephanie: his order does not apply to armors who use 80% of the water supply. he says farmers are not recklessly using water -- not frivolously using water.

elon musk's company says it sold more than 10,000 cars in the first quarter. that is a 55% increase from a year ago. tesla is on track to beat last year's sales total. the company will come out with an electric suv in the second half of this year. in sports, it was a moment that march madness brackets got busted all over america. gary cohn, wisconsin shocked everyone by beating kentucky. duke has one for championships -- has one bank for championships -- has won four championships. fast mysterious seven took him -- fast and furious 7 took

in -- no superstars were involved. a fast and furious films are known or their chases. rendon bank earnings season kicks off today. analyst predict s&p will fall for the next three quarters. the u.s. equity derivative service -- is this it? is the party over? >> what is interesting to me is ceo confidence remains nearest highs. it is as pervasive as any i have seen since 2009. we think that is the way it is going to sort itself out.

brendan: how much stock do you take an historical parallels? which one do you look to right now? julian: i tell my kids had i not been in the financial business i might have been a history professor. what we see when we look at history is the fact when you have good economies in the late 80's and 90's amidst declining oil prices. you had a profit recession around the year and multiple expansions and profit recovery subsequently. stephanie: analysts to predict profits are going to decrease, you think it doesn't really matter? you have to put your money somewhere. julian: that is one way of approaching it. our point is yes the jobs number was weak on friday. we think this is a soft match in

the first quarter. we expect payback as the economy improves. brendan: is selling your phone started ringing at 8:30 on friday? julian: we trust the chief economist. that is what we are thinking. stephanie: clearly seeing an uptick today, how real is that? julian: saudi arabia is improving in asia. the saudi's were the one who helped precipitate this. you will see signs of an improving economy in europe. there is cause for optimism on that front. brendan: doesn't it seem saudi arabia once a pony though? doesn't it ignore what is going on? stephanie: things are looking better. julian: clearly with the specter

of iran coming on stream we are seeing signs of stability, particularly in europe area -- in europe. stephanie: do you think things are more stable in europe? all that mess, you like? julian: the qe is starting to mitigate the problems. clearly greece is going to be a problem. brendan: this is the great irony of ecb policy. they are the ones who are benefiting. it is solving the problem that small german many lecturers were not smart -- were not selling enough abroad. julian: you are right and you look at the german unemployment rate at the cyclical low right now. essentially the germans are incentivized to keep things moving along, make sure greece

does as it is told. in a lot of ways if you think about what is happening in the u.s. it's buys more time in the economy. stephanie: is one person to loan it to 1% along equities. -- 1% along equities. julian: we are expecting much the same thing, clearly the dollar is going to benefit. brendan: this shows faith in europe's economic ability to solve some problems. nowhere in my hearing their ability to address greece, which is the real problem. julian: that is a long-term workout. the politicians have not let things fall by the wayside going back to 2012 when drug to talks about the ledge.

stephanie: we will do whatever it takes and suddenly everyone went long and made 800 of dough. let's say we are buying what you are selling. what do i want to buy here? julian: health care has shown the studious earnings and revenue trend. particularly if you are concerned about the value of the dollar. health care is relatively more immune to that with its revenue coming domestically. we think that is where the growth is. brendan: no reason to freak out, thank you. stephanie: when we return, how the oil glut would get worse. economic sections are lifted. stay tuned. brendan: we will look at the

risks facing the credit market.

brendan: she had rebels have asked pakistan for soldiers. that has raised the possibility of a ground offensive. saudi coalition has only attacked rebels from the air. a devastating assessment of rolling stone's controversial story about a gang rape at the university of virginia. an outsider called it a journalistic failure. the story failed to follow basic journalistic practices. rolling stone had asked columbia to review the story. the magazine says no one involved in the piece will be fired. who knows more about america's love of sports than the parent company of espn. disney investing $250 million in online fantasy sports business

draft king. in return draft king has promised to spend more than a half billion dollars advertising on espn in the next several years. those are your top stories. the credit markets look to the fed. plus markets fall after friday's displaying jobs report. we will look at the biggest movers. and small business is figuring it out. we will look at a payment system aimed at smaller companies. stephanie: iran holds 10% of the world's oil reserves. what happens when sanctions are lifted and iranian oil floods the market. he now serves as a senior policy advisor. what do you make of all this? >> i think it could be a big

deal. we have prices around $50, which is a good for consumers in other industries. if the sanctions are lifted it, iran produces about 10% of the world oil reserves. they currently produce one million barrels per day. they are ready have in excess of one million per day right now. we consume 93 million gallons per day and produce 94. in the past they have had the ability to produce up to 4 million gallons per day. it could happen next year and it would be a big deal. there are 35 -- 35 million gallons of iranian oil in floating storage on tankards in the high seas. this could have an impact on prices. brendan: some of this equipment was outdated.

what is the timeline for upgrading those facilities and who would pay for it? bart: they have to wait to see if this deal goes forward. the analysts say it could be within months three to 400,000 gallons additionally. that might impact the market and bring prices down. they do have some antiquated equipment. that would take into at least next year in the following year. i assume this would be a government-sponsored endeavor to go ahead and upgrade the equipment. it could have a big impact on prices that are already low. while that is a good thing for our economy and other economies, it spells trouble for smaller oil companies and the drillers. stephanie: if saying were lifted, how low could prices go? do you think below $20?

bart: i read from every analyst i could find out there. the 30's is not something we should be expecting. some are excited to go down into the 20's. i have not seen anybody play below that. everybody thought two months ago the new normal was the band of 45 to 55. i think that was being thrown out the window. don't get me wrong, a nuclear deal is in the interest of everybody. it is something they have to consider when you look at everybody is pumping out oil from russia to venezuela to canada. nobody is holding back. we are going to have a tough time finding a place to put it all. stephanie: if sanctions got lifted, help me understand who the winners would be. bart: the winner would be us if

we have a nonnuclear iran. it is a double-edged sword. there are so many industries that rely on inexpensive petroleum. even some of these large companies, you think about the large oil companies. they are involved in chemicals and plastics. those things benefit from cheap oil. part of the economy that could be impacted in the near term. who have made a large investment over the last several years. some of those guys are going to be in real trouble. the some venture capital money to keep them going. brendan: we have been talking about the demands the market.

as saudi arabia continues to have some effect on prices it produces, how can we expect political disagreements with iran to play into this market? bart: these are global markets. i really can't get a handle on that. asia is not growing and china is not growing. not at what people expected. these are global markets. the main thing we have to watch is it gets to the economics. politics certainly in russia are playing a huge -- it is having a huge and on their production.

they have this triple digit inflation and the economy is going to heck can a handbasket. exports account for 95% of their economy. brendan: when saudi arabia is increasing demand in asia, that means saudi arabia wants a pony. do you agree with that? bart: we all want a pony. brendan: i want to unicorn. stephanie: thank you so much for joining us. he is a senior policy advisor at dla piper and a trendsetter in terms of amazing hair. market makers will be back in just a moment. eric is out but brendan is here.

stephanie: coming up, what happens when the bond market does raise interest rates. we will be speaking with big names in the fixed income market. brendan: we will see if the report as having any impact on stocks today. stephanie: finds a buddy who is super concerned, super bearish. for the most part people are using it. brendan: i like candy a lot. an awful lot. i love dark chocolate. it is very hard to find the two.

for me it is the red m&ms, the peanut butter ones. i'm always worried they are going to stop selling them. white chocolate is gnarly. we are getting serious credit markets when we return.

stephanie: welcome back to market makers. you are just visiting the show. you can just go bonkers. brendan: welcome to market makers. i am in for the canadian. we are starting with the top business stories of the morning. a president obama calls the deal on iran's nuclear program a once in a lifetime opportunity. the agreement does not mean the u.s. will give up military

superiority or fail to protect israel. the foreign relations committee says congress needs to play a role. israel prime minister benjamin netanyahu is blasting the deal he says will lead to a nuclear armed middle east. greece is looking for financial help on a number of fronts this week. heading to moscow to meet with russia's president vladimir putin. the greek finance minister is in washington to talk treasury officials. greece is negotiating an extension of its european bailout but cash reserves are bailing out. . they plan to raise as much as $14 million in an ipo. that book alleged that high-speed traders and others have read the stock market. william bentley says the pace of interest rate increases is likely to be shallow. the fed is likely to move slowly. they also said that a region

weakness in the economy will probably be temporary. last friday's job report is weakest in more than a year. there is a takeover in the hospital business. real estate has agreed to by ardent medical service. one ardent unit will be spun off . of the universal is the new fast and furious film blew away competition over easter weekend. that is a record. stephanie: there are many doomsday scenarios floating around the markets. will the fed raise rates to soon? will it be in a deflationary spiral? and is there a lack of liquidity in the market. it is one of the biggest risks

currently facing the credit markets. he is a senior fixed income strategist at morgan stanley wealth management. let's go back to 2000 six 2007. everybody loved the credit market. nobody could get out. many people say we are in a similar situation. it is a much safer place. >> i think people are projecting down the road. what is the liquidity of the company facing those interest payments. companies are in much better shape today. it is all about getting your balance sheet. let's reduce interest payments. what we saw last year was interesting, the real hiccup the

market has seen since we came out of the financial crisis. with oil related companies, you saw prices plummeting. that is the liquidity risk we are facing for the market. stephanie: we could be talking about the ability to trade or whether companies can actually refinance themselves. the question is in the short-term, it doesn't look like companies are going to have trouble refinancing themselves. i have heard a lot of people talk about the ability to trade and the fact people can't move quickly enough. is this just a day traders problem? >> earnings are declining. market liquidity in terms of balance sheets and thanks because of regulatory rules they are a lot smaller. their 20% smaller on the balance

sheets. up 40% smaller on the risk assets. the market has grown substantially. today it is about 2 trillion. it gets balance sheet in a good position. when we head into the next recession companies are having trouble. everybody is running to the exits. stephanie: with interest rates where they are, i have to find yield somewhere. what else am i going to do? >> if we are talking about three to six months, not a big deal. over the next three to five years, which is a reasonable time frame for this recovery heading into this next session, it is going to be a bigger deal and you can make more shifts into liquid instruments, etf's,

more cash in your portfolio. or lock your money up. less liquid securities. and looking for returns, income. >> people aren't willing to accept lower returns. >> what is your worst case scenario this year? >> i guess it being reasonable about it. with transylvanian accent. something short of a comment would be economic growth picking up substantially. trying to play catch-up and interest rates running off to the races. that is the worst-case scenario. oil on the other side dropping substantially area the companies

that are really struggling with their finances having trouble with maturity. stephanie: what happens to the explosion we have seen in high-yield etf's? people race into their saying here is where we are going to find liquid markets. the underlying bonds are still as they always were. >> the etf market is going to struggle as well. we saw the biggest price decline we have ever seen outside of the recession. going from the peak of the market to the depth of the market in mid-december. there is no happy face on this. we don't think the economic recession is going to be bad. stephanie: the proportion of high-yield market owned by the

etf has doubled. stephanie: how are they going to provide liquidity when they are not at high-yield bonds? >> to use see the possibility of a mass exit us that could disrupt markets in a fundamental way? >> high-yield is -- equity is going to be been out. high-yield is going to be beaten up. everything that looks like equity in fixed income will. part of it is just going to be fundamentals. these companies have pushed out maturities and you finally see credit market up and up again. those are all going to come to you. >> other any investors -- stephanie: are there any investors in the global market who are looking the on this day,

this week, this month? >> their investment is looking long-term. i would say it is pretty reticent. it is not like this has been an exuberant rally and risk asset. it is not like people are just blindly piling in. >> they bifurcated between energy which nobody wants to touch because of the volatility and energy prices. they want to touch it at a deal. new issues have been tremendous and dramatic. it has been a record. we are on pace for another record year. >> it is important to stress there are a lot of proposals out

there. not suggesting this will save the credit markets and the liquidity by the time we go to the next major downturn but there is conformity on bonds. every single issues different. if you can get more conformity and that and asset management, especially the bigger ones, it hurts returns but it gives them a little bit of leeway if we run into problems. stephanie: what are you buying and selling? >> our timeframe is 12 to 18 months. with fixed income we like equity proxies. and we like leverage loans. stephanie let the crisis happen, just don't be a chicken. brendan: this great shift has happened were people stopped calling it high-yield and start calling it junk.

>> when people start saying there are no problems in high-yield, that is when you get worried. stephanie: thank you so much for joining us. john mckay and lisa abramowicz. brendan: coming back we are going to look at market movers.

stephanie: it is time to bring you up-to-date on the top stories of the morning. futures were up almost 4% in london and new york via the saudi arabia raised prices from shipments to asia. saying global demand was improving.

web texas intermediate is trading for more than $50 per barrel. you probably cannot go wrong betting on america's -- disney and -- disney's investing in draft king. in return draft king has agreed to spend more than half $1 billion in advertising on espn, which disney owns. and rolling stone will not be firing anyone in the wake of a harsh critique of a controversial story. it tells the story of an allegedly gang rape as a journalistic failure. the magazine says it will review its editorial practices. those are the top stories of your morning. brendan: we are going to the breaking news desk where chief market correspondent scarlet fu is taking a look at stocks that made history today. scarlet: the dow jones

industrial average is near its best levels of the session, up by half of 1%. following comments from bill dudley said the pace of rate increases is likely to be shallow once the fed starts to tighten. when it will it begin tightening? that is the million-dollar question. bonds are lower. the 10 year leave -- 10 year yield at session highs. there has been some deals. it is a monday morning. the biggest transaction this morning was a real estate investment trust. it is buying ardent health services for $7.5 billion in cash. the purchase will add eight to $.10 in the first full year after it is completed.

that is good for a gain of 5%. tesla is the second most actively traded stock by value. just over an hour into trading more than 5 million shares are changing hands, which matches a full day average. first quarter deliveries rose 55% versus the fourth quarter, beating its own forecast. airlines are falling. investors not too excited about the airline shares. l to airlines falling by more than 2%. american airlines at a one-month low. down almost 3%. brendan: scarlet fu, thank you so much. we will be talking about tesla

in just a little bit. i'm waiting for the home battery to arrive. when we return turning ipads into cash registers. we will look at the new payment system for small businesses. you are watching market makers right here on bloomberg television.

>> shall keep his time to change all of that. it is a cloud-based mobile point-of-sale platform we are going to understand what all those phrases mean. not only accepts payments the tracks inventory management and provides business analytics. here with us to discuss shopkeepers -- stephanie: a you turning bodegas into apple stores? >> exactly.

brendan: this is jason richardson of shopkeeper. what was missing for small businesses? i do know i can walk in and pay with square. jason: we started way before the ipad. i was a grocery store owner in brooklyn. i was frustrated with the software available to me. finally i got so fed up with it i said we have to have a cloud-based point-of-sale. in 2008 there were no cloud-based point-of-sale systems. brendan: so it is just payments to start with. jason: it is keeping track of sales, keeping track of inventory. payments has always been part of the point-of-sale in business. stephanie: will cut businesses do you do?

jason: we are in restaurants, quick serve restaurants and coffee shops. we have now released features in the last couple of weeks that allow us to do. this and bars. stephanie: only ipads? jason: we only service customers that have one to three locations, small stores that are generally ignored by the bigger players. the providers out there were generally small companies. they were local guys. they didn't give you the kind of support they needed in the small business. the really understand your business and we are serving customers across the u.s.. stephanie: what is apple getting out of it? you have become a salesman for them. jason: we are a good partner

with them. it is a great tool. it is a very inexpensive tool that always just runs. i had the $3000 touchscreen windows machine on that counter. those things cost three grand. in ipad is a mini supercomputer. it was very clear to me this is an inexpensive way for businesses to get really great technology. brendan: the weakness in the target and home depot hacks, that was a point-of-sale. if i your potential customer, that is the first question i am going to ask. jason: it is having servers in your store and unencrypted credit card swipes. we have gone to market with

encrypted credit card swipes. see a part of our service -- stephanie: what is the future of microsoft going to be in terms of all these old-school businesses? let's say i'm a tech investor going forward. do you think the future is bleak for microsoft? jason: microsoft has been slow to catch up with change. they are going to get up there with their tablets. i do believe in three to five years you are only going to see tablet computers in retail and restaurants. this year we have to move to chip cards. you are going to start getting your chip card if you haven't already gotten it. that is going to create cycles in the small business space. brendan: microsoft said it is going to the cloud and it did not find microsoft waiting there for him.

>> it is very hard to change to a cloud-based model. we started from a cloud-based model. stephanie: it is hard to get your business back once it goes apple. brendan: what is the first question a small business asks you? jason: we never call out. usually doesn't work with my payment processor. we now provide payments for them. are you going to answer the phone do we have 47 customer care? those are the things we ask. we do everything on that first phone call to get them up to speed and get them set up with the payments. brendan: jason richardson founder of shopkeeper. that is exactly what he did. stephanie: market makers will be back in a moment.

coming up, your week couldn't have been half as complicated as this guy. . .

announcer: live, from bloomberg world headquarters in new york this is "market makers" with eirk shatzker and stephanie ruhle. stephanie: mayor in the spotlight -- protesters demand a controversial law be changed and they will be dealing with a follow for quite some time. we will be speaking with the mayor of indianapolis. brendan: getting a deal with iran is one thing, selling it to congress and the american people is another. we will look at president obama's strategy. stephanie: and we will see how the major studios are trying to prevent a sequel to the disastrous hack attack on sony. welcome to the second hour of

"market makers." brendan: i am not erik schatzker, sadly, i'm brendan greeley helping out today. let's start with the top business stories of the morning. president obama is calling the deal with iran the best by far. he says it will make sure the iranians don't get nuclear weapons and tried to assure those who said it would put israel in danger. president obama: what i'm going to do is make the kinds of commitments that would give everybody in the neighborhood including iran, clarity that if israel were to be attacked by any state that we would stand by them. brendan: israel's prime minister is not convinced. he says the deal will lead to a nuclear armed middle east. when u.s. fed president says the

likely of rate raises will he shallow. he said recent weakness in the economy will probably be temporary. last friday's job report what -- jobs report was the weakest and more than here. and assign the economy is holding up -- the service industry grew at about the same rate as the months before. they account for almost 90% of the economy. there is a takeover in the hospital business -- a retail investment trust that specializes in health properties has agreed to by arden to help for almost $1.8 billion. they plan to spin off one unit and a number of the hospitals. the pay gap is narrowing on wall street. the difference between what top bank ceos and their staffs have gotten is smaller since the financial crisis because the ceos are being paid less. it's down from 273 times as much

in 2006. and baseball season began last night. already a couple of records have been set. the average major-league salary rose 6% from year ago to $4.2 million. meanwhile, the los angeles dodgers set a record with their payroll -- almost 44 million dollars goes to players not even on the team anymore. stephanie: the guggenheim's have a lot of dough. indiana's controversial religious freedom lies created a lot of controversy despite the move to change language in the law to ensure it does not promote discrimination over -- promote discrimination. over 40 companies have spoken out against the law, so how will the indiana law be affected by the law? the mayor is here to talk to us about the impact. let's take this down and take it slow. what does this new legislature

mean? mayor ballard: the which gets words into the state law which has never been there before. they took it out of the indianapolis human rights organization and they took court like sexual identity which had never been in the law before. what they call the fix did make a dramatic impact but i think it told state lawmakers have a way to go. brendan: as the mayor of a convention city, wind you start paying attention to this law? was it earlier this year or only after passage? mayor ballard: everyone was paying attention to it. before the governor signed it, i put out a statement urging it not to occur because we already knew the impact. people were already calling us businesses were talking about it and we knew what the impact was going to be. a lot of people at the

statehouse had heard what the potential impact was going to be, but to their credit they admitted the backlash was much worse than they expected. stephanie: the ncaa tournament is happening in in -- is happening in indianapolis right now. the media loves to talk about this controversy. what is happening on the ground in indianapolis? everyone is in town, what's going on? mayor ballard: there is a reason people come here. there's a reason conventions and sporting events come here routinely because they know the execution is relatively flawless. the hospitality indianapolis always shows will always be there, and that's what's happening. they've got record crowds here people are complementary of what's happening in indianapolis because we don't want to be defined by what happened in the state legislature. that's not who indianapolis is.

what you are seeing is not just the tremendous gains -- we have had concerts were we have had to turn people away, fan fest is setting records, where the super bowl village was just a few months ago. so that is good that everyone can see that. we are trying to send the message that is not who we are that's who we've never been and won't be in the future. stephanie: but everyone was already signed up to come to indianapolis for these games. was there any potential events you are hoping to get that are at risk right now? mayor ballard: absolutely. the only thing that really held it on was that the city of indianapolis got out there pretty quickly and vocally and the relationships we have built with these sporting organizations and conventions over the year, that is what held it together for a few days until

the legislature got their act together. all that said, going into the future, those sponsors and boards of directors they have to report to have to make those decisions. will we take a hit on it? absolutely. it will take years of rebranding to make sure people understand once again who indianapolis is. stephanie: what does the term rebranding main question mark two weeks ago this became the headline -- you are going to go out and meet with people who will bring potential giant sporting events into indianapolis and say we are not who you thought we were? mayor ballard: a month ago, everybody understood who we were and there's a reason so many conventions are in the pipeline. then we took a hit and we have to go back and say it again, this is what we are doing. you can even see what's happening with the final four. all that said, there is a sales job to be done here in the near

future to make sure these businesses understand who we are. stephanie: have you reached out personally to tim cook or any of the other ceos who signed the petition and said they want to take their business out of indiana? mayor ballard: i have not talked to tim cook. i have talked to mr. denio. stephanie: he was really pushing other ceos to back this. what did he say to you? mayor ballard: he has a strong presence here. there are thousands of employees here with salesforce, so he wanted to make this right also. he knew we were like that anyway , he was just trying to send a signal to the statehouse and others that you are going to have to correct this.

now we have to make it right together. mayor ballard: -- stephanie: since you and he spoke, has mark benioff retracted his statement? is he comfortable with indiana and going to continue to do business? mayor ballard: you have to ask him how he feels about that. i think he is comfortable with what happened but as any company would come he has to make sure his employees feel comfortable in the city of indianapolis and the state of indiana. brendan: other states have passed laws like this in the past. i get the sense mike pence was really surprised by the response. as the ground shifted under your parties feet on this issue? mayor ballard: probably a little bit. i don't think there's much question about this because the signal was wrong. when you read the law by itself, looks harmless, but when you put

it against the other indiana code that was in effect, then there's a problem that was pointed out before all of this happened. they obviously got it was going to have that much of an effect but it did. brendan: can you help us call a spade a spade here? was this about gay and lesbian rights? mayor ballard: i think you have to look at it a little bit differently. i think some people knew it was going to have that effect, but i don't think the majority of the people at the statehouse thought it was going to have that effect. you could see the reaction afterwards and who was reacting afterwards drying that conclusion. stephanie: just one more -- and i think indianapolis is a great city. i went to the super bowl there a few years ago and had a great time. if some people knew this was what the punchline was and they were comfortable with it, what does that say about indiana? mayor ballard: again, i don't

think the vast majority of evil who voted on this thought it would have that effect. -- the vast majority of people who voted on this thought it would have that effect. that said, there were some who probably thought this was part of the agenda and i hope those people understand we are not going to tolerate their influence anymore and want them to move aside. brendan: if you were tracking this bill from its inception, there must have been a sense before it was assigned that this could potentially be a consequence of it. mayor ballard: absolutely. they were told this could possibly be the consequence of it. i think they were talks down by the other side end up this would be a harmless bill. if you read it by itself, it looks harmless. if you understand the rest of the indiana code, there could be a problem in their but i don't think they have a sense of that. stephanie: i hope i never meet

them. who is going to win tonight? who do you want to win? mayor ballard: this is a big 10 country in wisconsin has been knocking on the door for a long time. i think there's a lot of sentiment there. i think there are a lot of people in the area pulling for wisconsin. stephanie: sounds like you are a blue devil man. thank you for joining us, indianapolis mayor, greg ballard. brendan: coming up, a big quarter for tesla with the best sales numbers yet. we dig deeper into the numbers to see what's going on. stephanie: and we've got the one man in america who loves to do that, our own cory johnson. plus, selling the iran deal. congress was skeptical before there was an agreement. will president obama be able to convince lawmakers now? ♪

stephanie: welcome back. i'm your with my partner today, brendan greeley. it's time to bring you up-to-date on the top stories of the morning. closing arguments are set for today in the boston marathon bombing trial. attorneys for dzhokhar tsarnaev have already admitted he's been involved in the attack that killed four people. they argued that he was the pond of his older brother who died in a shootout with police. the jury is expected to find him guilty and insurers have to decide whether he will get the death penalty. a devastating assessment of "rolling stone's" controversial story of a gang rape at the university of virginia. an outside review calls it a journalistic failure. the columbia journalism school says they failed to follow basic journalistic practices. the magazine says no one

involved with the piece will be fired. and amazon is now attracting more merchants who used to be loyal to ebay. former ebay sellers say they are moving because they get more of their money by selling on amazon. amazon's pool of merchants doubled to about 2 million last year. ebay has 25 million merchants, but that number has stayed flat over the last two years. those are the top stories of your morning. coming up in 10 minutes president obama has a tough crowd to sell to -- congress is skeptical of the deal involving iran's nuclear program. plus movie studios have figured out they have to take computer hackers a lot more seriously than they did in the past. brendan: tesla is bragging it delivered a record number of model as cars this year pushing stocks higher today. at the road ahead does not look as rosy for the carmaker. "bloomberg west" editor at large

has been looking at tesla's number and joins us from san francisco. let's start with a hick up from the market in china. that's a real problem for tesla. cory: we should give them credit for what they did. they did have a record quarter selling 10,000 cars for the first time. it's more than ever before and more than this start up out of nowhere has been able to achieve, but it is the slowest pace of growth we have seen from this company on a sequential basis. it's just 2% sequential growth, so we've seen some bumpy quarters from these guys. and yes, china, a big focus for elon musk. he has visited there made a number of press appearances. they sold fewer cars to china than they did to norway, and it's a problem. brendan: does he have the regulatory authority he needs to

sell over there or is it a question of demand? cory: i think it's reasonable to ask those questions. how big is the market for a vehicle whose use case is much more limited than the cars were you could just pull up and get a guess fill up. yes, it is better for the environment, but the number of license plates available in china has been a tough thing for tesla to get around. there are also an limited -- a limited number of stores to sell in china. the places where they have done the best of the places with biggest subsidies. they likely had 1500 cars sold to norway and about 1100 to china. norway is offering free parking, for use of less lanes and reduced taxes, but those subsidies are set to expire in may, so those go away and then what is the driver going to do?

with oil prices declining, it is a challenge for tesla to find a way to grow, yet they are hanging on to their long-term growth target. they say this year they are going to hit their growth target. brendan: let's stick with oil for a second. has it been enough time to figure out what oil price has in for the demand on tesla? brendan: until --cory: until the rate count goes down a lot, i don't think there's a bottom. but as far as the future of the electric car, there are a lot of things that have to happen to make it something that is truly an alternative. some places like the place i live here -- live in here, it's common to see fancy cars and you can drive and it doesn't get cold. stephanie: does tesla need to become truly the alternative?

it is a really high-end car with a high-end customers. do they have to attract the masses to be a success? cory: the company loses boatloads of money. their aspiration is to sell cars to the masses, but every attempt they have made to sell a cheaper car has failed. the average price of a tesla right now is about $95,000, and the price seems to be going up not down. one of the things we're starting to see from tesla -- this is a weird announcement -- they pre-announced this on a friday when the market was closed and it was a very strange announcement, but it's going to let us look at some other important things like wire they losing money, wire they losing so much money wire inventories growing so much, and is the backlog for this car truly gone? is the size of the market truly known?

brendan: let me pile in with one more question -- this announcement about the home battery is that a real product or is that a pie-in-the-sky experiment? cory: elon musk announced on his twitter account that there would be a new product that is not a car that will be announced in april. there's a lot of speculation that it's a battery from the factory they have yet to build. with tesla, the promise is always in the future -- it's something they don't do. it's a cheaper car, an suv, a home every. it makes tesla look like a much smaller, money losing company but the future is immeasurable. the car is neat, but don't get me wrong -- you can't make it up in volume. brendan: thank you for asking

the right questions about tesla. stephanie: you made a decision about that jacket today. cory: thank you. stephanie: that is an easter look. brendan: i'm just glad he got out of the shower in time to do the show. stephanie: how does that work. i'm so glad my job is not to retrieve him. we have a lot to cover here. teeter cook is joining us. hopefully he's not in the shower. -- peter cook is joining us. ♪

brendan: coming up, stocks are back in the green after moving lower. we will see what is moving the markets. stephanie: stephanie: late last year, sony found out how bad it can be -- you will meet the guy assigned to prevent a sequel.

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announcer: live, from bloomberg world headquarters in new york this is "market makers" with eirk shatzker and stephanie ruhle. stephanie: welcome to "market makers." we are about two hours into the trading day, so i'm going to take you back to our chief markets correspondent scarlet fu, for a look at the action on the street. you are looking at some analyst downgrade today. that means read on the screen. scarlet: it's quiet because of the upcoming earnings seasons.

let's start with zillow. barclays downgraded the real estate operator saying the company faces short-term traffic growth and difficulty. that stock down 2% now. garmin getting a downgrade from citigroup. it is a to notch downgrade. growth was slow in its gps watch business. a couple of regional financial banks getting downgraded as well by guggenheim to neutral from buy. guggenheim says they have greater risk tied to energy-related companies. even no oil prices are rising today, the drop we have seen over the past year is going to weigh on these banks. qualcomm -- there was a tear down. you know how these companies and websites hair down smartphones and see what's in there? the samsung lxe s six smartphone

was torn apart and it does not have the qualcomm modem. previously people realize when at&t advertised on its website, that it does not contain a qualcomm processor that was in the previous model. some say that's an indication samsung will try to stuff its own processors in whenever and wherever possible. brendan: i own a garmin gps fitness watch and i would describe myself as a lagging indicator. stephanie: do you use it? brendan: i don't use it because you have a smart phone that does everything for you. stephanie: i own one. it's still in the box. brendan: that's why they are having trouble. president obama begins the are jewish tax -- arduous task of convincing congress the plenary agreement with iran is the best bet. he says it's not a retreat from

america's military superiority or support of israel. president obama: what i'm going to do is make the kinds of commitments that would give everybody in the neighborhood including iran the clarity that if israel were to be attacked by any state, that we stand by them. brendan: how well is his sales pitch going? to answer that, we are going to bring in our chief washington correspondent, peter cook. you have been walking through this step by step few weeks. does the president have to go to congress? peter: if you are talking to people at the white house, the answer is no. he has to inform congress but the president has a lot of attitude -- has a lot of latitude to waive some of the

sanctions in place. you go to members of congress and they say not so fast. congress does have a role to play, but the reality is there something in between. the president has committed to fully brief congress but he has not signed off on an up or down vote for congress. could we see something in between? maybe. the good news is one of the people he's dealing with his bob corker of tennessee, who as done business with the white house and he is promising not to necessarily stand in the way of this deal. senator corker: it's very important congress is in the middle of this, understanding and teasing out these important questions. peter: he is insisting on a binding vote.

the president has been talking about a nonbinding vote, and that's where we are going to get into the weeds. brendan: just like the negotiations with iran, some of this has to go through back channels. do we know who the president is reaching out to to get this done? peter: you see some familiar faces like john kerry going out but you will also see some people who are not as well-known. the energy secretary is a nuclear expert, m.i.t. trained and you will see behind the scenes a number of scientists from the nation's nuclear labs trying to explain to members of congress why this locks iran from hitting a pathway toward a nuclear bomb. brendan: i don't know whether you know this, but next year there's going to be a presidential election. stephanie: what? brendan: you should put it on your calendar. what are we hearing from

candidates? peter: we are hearing a lot of criticism from republicans, not a huge surprise. we are hearing words from hillary of support. this will be a litmus test for candidates, whether they are on board or not. that is perhaps the question we have not had answered yet, but a lot of criticism for the most part. brendan: peter cook, exercising shuttle diplomacy. stephanie: when we return, follow from the sony hack attack. hollywood is embracing digital security. is it too little, too late? you didn't know it was a problem? ♪

stephanie: welcome back. hollywood is turning to silicon valley for a new kind of security after hackers revealed embarrassing e-mails and personal data at sony pictures last year.

major movie studios are tightening up their cyber defenses and they are turning to digital security companies like watch docs. my guest joins us to tell us how he's helping tinseltown. had sony never heard cyber security was an issue only to heighten up our game in terms of what we are e-mailing? >> i think the hollywood industry was sensitive about intellectual property for years and have gone to great lengths to secure the music and films, obviously. they realize that a leak is very devastating to reduction. but more recently, with the acquisition of marvel and d.c. comic there's a new interest in things that are new threats.

the sony things brought this to a whole new level of threats because it was supposedly a state-sponsored threat. brendan: one of the things we learned is that it's not just technological, it's cultural. everyone had terrible practices of doing things on servers and putting things in e-mails that you should not say in e-mails. how much of it is cultural? adi: i don't want to make specific references to sony, but we see more eagerness right now from the studios to enhance the technical aspects of their security. whether it's an existing customer that wants to deploy more broadly or customers that have not used products like that that just want to get on board. brendan: when you go to a studio, let's call them scmony

studios. are you telling them they need these products or are you telling them your executives need to do the following things every day or they will get fired? adi: i don't think they need me to tell them that, definitely not now. i've been talking to many producers directors and screenwriters and they have been going to great lengths to protect their scripts. some examples include everything is printed on colored paper to prevent photocopying. they are sending careers with scripts and making sure they are locked up as soon as they are red. they've been changing character names including random spaces so that if something leaks out, they can identify the source of the leak. what is missing is some of the technical capabilities to protect that this year. brendan: are you seeing changes

in the security structure? is this happening at the studios as well? adi: i'm not an expert on what they do internally, but i definitely see a lot more happening on acquiring more security, expertise and security products. stephanie: does hollywood seem to cool for school? it does not seem like these celebrities would want to follow these rules. if we hold e-mail from any random day, do you think they would change their behavior? adi: that's a good question. if this does not help change their behavior, then what else will? i think this is the best chance of having it done. brendan: are there any other surprises in other industries? are we just waiting for a hack to reveal it somewhere else? adi: i think hollywood issues are analogous to everywhere else. if it's not script it's

financial documents that get stolen. they will have regulatory fines and a lot of embarrassment or manufacturers making sneakers or designing the next fighter jet. they have seen wikileaks and may have seen edward snowden lately, so everyone could use some more control over their data at this point. stephanie: clearly you have a lot of extra work to do these days. thank you for joining us. brendan: time to bring you up-to-date on the top stories of the morning. the supreme court has turned away a ruling from north carolina approving a rule that might shape the elections. north carolina wanted the supreme court to uphold provisions that eliminate same-day voter registration and

out of district voting. one said president says once the fed search raising rates, it will be slow, or as he put it, shallow. he said recent economic weakness probably will not persist. he's a former goldman sachs economist to the chief liaison for the fed at wall street. and you probably cannot go wrong at a non-america possible love of fantasy sports. disney is investing an online fantasy sports business and in return, draft kings will spend half $1 billion on advertising on espn, which disney owns. stephanie: "market makers" will be back in just a moment. we may be having a little cheese tasting as we return in honor of wisconsin. brendan: i'm responsible for nothing, things just happen. ♪

stephanie: it was a big saturday

night for the ncaa final four and bloomberg brackets for a cause. john chambers'duke team 1 -- so he needed to see kentucky when to set up a winner take all showdown. didn't everybody think kentucky was going to win? that wisconsin came out on top in the second semi final and left kentucky with its first loss of the year. gary from goldman sachs cinched the victory and has one hour goldman -- had -- one hour bloomberg brackets for a cause winning $360,000 for his charity. perfect timing since today is opening day of baseball season. last friday, i sat down with him and asked him how he was going to do it. gary: all of the east coast guys

look at the big ten teams. they don't have the best record in the country because they bid each other up all year long. when the big 10 teams come and play the other teams, they tend to shine. year after year, this happens. ohio state won the national football championship, a big 10 team, and it's happening in the basketball champions. for guys who watch basketball, it's pretty obvious. stephanie: we had jim chanos, dwight anderson, jimmy dunn -- brendan: we had tom, my cohost. stephanie: he did not participate. i would be happy to donate that and make it 70,000 dollars. jim chanos, true to his roots as

a short seller said to us if wisconsin makes it to the final, he's going to be delivering to the bloomberg studio bratwurst, cheese curds and is also delivering it to dwight anderson and i said we would be enjoying maybe not the bratwurst but the mild cheddar? colby jack? brendan: you are having some sort of mixed thing. i'm having the colby jack. it was an amazing game. did you see the game? stephanie: i did see the game. people were thinking it wasn't going to happen. brendan: i voted with my heart. my bracket had maryland going way farther. if you are from maryland, you are very proud of it. stephanie: you are from the state of maryland? brendan: i am from annapolis. stephanie: where did you go to

high school? brendan: annapolis high. stephanie: did you know i was from the garden state? brendan: i did not. do you know who else went to an annapolis? bill belichick. they are going to have to change the words to the fight song from wisconsin just to frank kaminsky . it was an amazing game and he could have gone pro last year and he wrote a beautiful essay about why he was staying in wisconsin for one more year because he would like to stop eating pork, but it's just too much fun. stephanie: who doesn't want to live in milwaukee and have that much cheese. jim chanos, thank you for the delivery. and our own founder, michael bloomberg, thank you for playing. he won 60 grand for harlem r.b.i..

coming up, you can find him at a dallas mavericks game -- but tomorrow you will find billionaire mark cuban here on "market makers" talking about education and technology. have a great day. brendan: happy wisconsin. ♪

scarlet: it is 56 and as past

the hour, that means it's time to go on the markets. futures have signaled we are in for a selloff, but investors point to a disappointing march jobs report. the dollar is little changed now and it was low earlier, which is one reason why oil prices continue to move north, up by more than 5%. joining me for today's options insight is the strategist for derivatives that mk am holding. it looks like the bad news is going to be interpreted as bad news in the kleins -- bad news in declines. jim: it was a weaker than expected jobs report and the futures were lower after that. i think the focus now is on earnings -- alcoa, which typically signals the beginnings of the earnings season -- scarlet: when it was a member of

the dow. jim: now people are looking forward to the beginning of earnings season. scarlet: is it going to be about the strong dollar weighing on these companies? jim: everyone is focused on that. earnings are year over year basis expected to be down about 60%. we were down last quarter, but the economy recovered and earnings gained up above 10% on average. we could see some dislocations this earnings season. scarlet: do you believe we should strip out energy earnings from the s&p 500? jim: you need to assess energy as its own. you have a group right for dislocation and you need to separate it out for better understanding of earnings on the s&p 500. scarlet: alcoa does traditionally marked the

beginning of earnings season but it does not represent earnings at large. jim: it is the trigger but what we can talk about is a good bit of information that comes out of the options market and that is the implied earnings move. wednesday after the close everyone is talking about what's implied in the options market. the straddle in alcoa, a 13.5 straddle that expires this friday worth about $.70 -- divide that by the price of the stock and that tells you about a 5% move is implied. that is something we talk about a lot as earnings season ramps up. scarlet: your trade today is on yelp. jim: about a 10% move implied. this has moved almost 16% with the stock down about 47%.

20 day realized volatility made an all-time low. we want to get along directionally here and sell a downside put with the stock around 47. we want to buy a 50-55 call spread for nice upside direction. scarlet: this is the way to get long on yelp ahead of the results. thank you for joining us this morning. we will have more coverage of the markets right here on bloomberg television. "money clip" is up next with pimm fox. ♪

pimm: welcome to "money clip" where we bring together the best stories and interviews in business news. around the world president obama sells the iran nuclear deal. senator corker and prime minister netanyahu are not buying. the race for mayor, the chicago way. why the selection matters to the entire united states. and these kids won big in this year's ncaa basketball tournament, even though they are playing baseball and are not old enough to play in college. in fashion, sartorial