i am missing something and i feel like so much of the technology we are building today is where success can be measured by its ability to get us to look at the screen even more. and so much that is interesting about life is when you encounter the rough edges out there in the world. trying to make the real world interesting, faster than oculus rift makes the fake world interesting. brad: thank you, andrew mason. ruzwana bashir thank you. thank you for joining us for this conversation. you can get the latest headlines on your phone tablet bloomberg.com and bloomberg radio. we will see you tomorrow. ♪ ♪ mark: from bloomberg world headquarters in new york, this is "bottom line, the intersection of business and economics with a main street perspective.

to our viewers in the united states and to those of you joining us from around the world, welcome we have full coverage of the stocks and stories making headlines today. we have a special report on the drought in california and how technology may be what the state is looking for. and peter cook is live in chicago. and it election it could shape the future of the democratic hardy. there is a developing story out of d.c. the white house, the capital, and other sites have been affected by widespread power outages across the district. the state department lost power during the daily press briefing at around 12:42 washington time. you are looking at a live shot

of the u.s.. white house power was knocked out and cycled back on using generators. it is now back to normal. the u.s. capital also experienced sporadic power outages according to capitol police. pepco is reportedly investigating the report. there was an explosion at a southern maryland electric cooperative facility according to "the washington post." we will bring you more details as we get them. fedex will be expanding in europe. they will purchase a struggling dutch logistics company, tnt express. more than two years ago their competitor, ups, had to scrap its own bid divide tnt. regulators moved to block the deal. executives say that they do not think that there will be trouble getting the deal approved. >> if you look at our situation in europe and there is, they are highly complementary.

it has resulted in a great deal of redundancies that appear to be problematic. mark: tnt will try to appease regulators by getting that of its airline regulation -- operations. looking for a college scholarship? going to work at starbucks might help. they will provide full tuitions from arizona state university online. the chain is looking for ways to attract workers in this -- tight labor market. the university of wisconsin again lost to duke last night. gains for the highest major market television rating in 18 years. the blue devils came back from a nine point deficit to beat wisconsin 58 to 63 for their fifth title.

cbs said that the game received an average -- was seen in 56 of the top u.s. television markets. turning to politics, john mccain will run for a sixth term next year. the arizona republican told abc news that he is concerned about what he called the president's feckless leadership. he will be 80 by election day but says that that is not an issue. senator mccain: take a look. watch me. take a look at the hearings we have. listen, i'm just getting started. mark: mccain, who was a navy pilot shot down over vietnam during the war was tortured as a prisoner. he was a republican presidential candidate 2008. it is official, rand paul is in.

he has joined ted cruz in seeking the republican nomination for the 26 teen presidential race. speaking from his home state of kentucky, he offered a glimpse of his campaign. senator paul: the washington machine that gobbles up our freedoms and invades every looking cranny of our lives must be stopped. mark: john holloman joins me here with more. what is his message? what is his platform? john: you heard it right there he's here to take the country back. he won his ascendancy in 2010. we are here to take our country back, that was the message from

the tea party. the illusion, the excision of the tea party is really important. this is a guy who was seen as the part of the tea party and is now trying to appeal to a broader part of the country. mark: planning to take the country back from whom? who took it? john: i'm not so sure. you are asking the source of the freedom? mark: he says the take it back. john: it's a very populist message. he's basically saying big government and big business both. that there is a chrome -- crony capitalism part to the pitch. he's trying to say that special interests, washington legislators who spend all of our money, financial corporations and titans and so on are all kind of in league together and

he wants to raise up the bottom in a revolution to take the country back. mark: he blamed this in part on the republicans, but is that not a violation of ronald reagan's 11th commandment, thou shall not be he'll -- speak ill of your fellow republicans? john: in this case he spoke ill of the party in general. although, as you say, very unusual to come out and say that the problem is with the parties. he said that the whole political system is broken. that is another part of one of the many ways in which he is an unusual candidate. trying to appeal to a different group of voters, voters with libertarian streaks, voters who are not necessarily isolationist but much more suspicious of foreign adventure is him republican party generally is. he's trying to reach out to voters of color, something the republican candidates have not

done explicitly. he is different in a lot of ways but the big question that will loom over his campaign throughout is how much difference is the republican base willing to tolerate while still giving him room to become a nominee? mark: john, thank you so much appreciate it. it's election day in chicago again, forcing into a runoff election against mayor rahm emanuel, who hopes to win a second term today, but it has not been easy. peter cook is in chicago with more on his race. peter, you are in friendly territory for the mayor right now, but this has been a tough race? peter: first of all, the mayor just a few moments ago was eating lunch here. he was having a media event just a short distance away. this is a place he has come regularly to meet supporters but you are right, this is been a tough reelection campaign, not

every chicago and has been thrilled with the job that he's done. he has closed 50 public schools which was controversial. he has also been accused of being too close to the business community here in chicago. that has been an issue that his opponent has really tapped into sort of a populist anger aimed at mayor emanuel. take a listen to the recent debate. >> over the past four years, since he ran for mayor the first time over $20 million from 100 donors. they are all rich and powerful. when you have forces like that in politics, what happens to the little guy? they get shutout. >> when i came to office there were three cranes in the city of chicago. today there are 29 carpenters

plumbers, electricians, people going back to work, chicago is on the move again. if you can't manage city finances, companies will not have the confidence to come here. >> the garcia campaign has fizzled out a little bit. at the run upstage polls show that the mayor has a substantial lead but anything can happen in a runoff. a lot of early voting 22,000 voting early, a record number here. results are here in the issue is whether he has been too pro-business and it is one of the questions. mark: you know the saying is that all politics are local, but is that the case in chicago? does this race tell you anything about the national temperature? peter: you know, mark, a couple of things here, this is very much a local race, first of all. they are fighting over unique city issues.

things like noise pollution coming from the airport. things that are not really telling a national story. but there has been a divide in the national party, progressives saying that democrats who are too pro-business need to be challenged, mayor emanuel being one of them. hillary clinton, national democrats might be eyeing them carefully. we will see if he will win. he is departing the restaurant right now trying to rally the final vote here as we had to the close of polls at 7 p.m. chicago time. mark: peter cook covering the chicago mayoral election, thank you so much. coming up, the summit of the americas this is the first year that cuba has been invited to attend. ♪

mark:mark: welcome back. let's get to some of the top stories that we are following this tuesday. in turkey, they blocked twitter and youtube because they published a photo of militant holding a gun to the head of a prosecutor. attempts to rescue -- twitter wasn't -- unblocked after agreeing to remove tweets that had the image. the government of canada is getting out of the auto business. canada sold his final stake in general motors, valued at about $2.7 billion by goldman sachs. this will help the canadian prime minister, stephen harper, stick to his promise of balancing the budget this year. a breakup plan proposed by an

activist investor, bad for business they said it would cost at least $4 billion for the breakup, plus it would hurt growth by damaging research. nelson phelps says the dupont could cut costs by separating high-growth units by separating agriculture for more cyclical units. strength in the u.s. jobs market the government says that job openings increased in february, the latest figures showing that there were 1.7 million unemployed jobseekers for every available job. that is a look at your top stories that we are following at this hour. coming up at 2:30 we will talk with daniel lee of the international monetary fund of -- on why businesses are not investing in future growth. then the latin american report from mexico city. california searches for water any way that it can. the seventh summit of the

americas will be held in panama city this week. the central theme will be prosperity with equity in the americas. carlos gutierrez served under george w. bush and is now the chair of the albright stormed -- albright stonebridge group based in washington. mr. secretary, welcome back to "bottom line." carlos: thank you. mark: president obama and well castro are going to meet. what can we expect? carlos: there are a lot of subplots. the summit itself has eight different mandates. you cannot expect a lot of different actions to come out of these, but the handshake between president obama and rowel castro is obviously going to be a highlight. the president would have wanted to go as a celebratory tour

where he would have the glory of being the president who started a process of normalization in cuba. the problem is that in the meantime he declared that venezuela is a national security threat to the u.s., so now that has become the issue and the president of venezuela is going to panama with a list of 10 million signatures and all of these south american countries have ganged up against the u.s.. so, there is a lot going on and it is going to be more entertainment than anything else. mark: has america's isolation of cuba affected the washingtonian attempts at stability? carlos: -- carlos: for longtime friends of the u.s. have always wanted to bring them into the mix. most of our allies in latin america never broke off

relations or they reestablished relations. yes, there was some pressure from the region. that's why it was important for president obama to do it before the summit so that he could arrive at the summit having started this process. the venezuelan declaration just muddies the waters. cuba continues to feel that the president is not doing enough. it is getting complicated and it is going to be interesting to see what's happening behind the scenes not necessarily in front of the microphone. mark: cuba wants to be removed from the list of state -- state sponsors of terror. what would it take to make that happen? mark: -- carlos: the president and his administration would have to show they have not undergone any terrorist activity in the last six months. there are people are claiming

and people pointing to our shipment of goods to north korea, the potential shipment of goods to columbia. this is going to be a huge debate here in the u.s.. some people expected this to happen yesterday and still expect it to happen before the summit so that the president can go to the summit with this victory. but you know, first he's got to have the facts and look at whether it truly is viable to get them off the list. mark: you mentioned that the venezuelan president, nicolas maduro, potentially trying to get president obama millions of signatures criticizing the u.s. for sanctioning is -- sanctioning venezuela officials. carlos: i think that where there may have been a miscalculation

was that if you attack venezuela, if we attack venezuela verbally cuba and many other countries will stand by venezuela. at a time when he was hoping to establish better relations with cuba he's picked a fight with venezuela and cuba has gone to venezuela's side. it could have been a miscalculation, bad timing, but at least right now it appears that venezuela has taken the place of cuba temporarily. mark: sir, we have about one million -- one minute left. do the countries attending the summit view the united states is holding the mantle of me -- mantle of leadership necessary to push the agenda focused on prosperity? carlos: there is skepticism that the u.s. wants to take a leadership role in latin america. of course, the president will say yes, but whether that is backed up by actions and programs is something to be seen

. people see that we are spending billions of dollars around the world with very little in this hemisphere. there is a lot of skepticism regarding the president's intentions to lead the region and leave the hemisphere. we will see what he does in panama city. mark: carlos gutierrez serving as the secretary of commerce under george w. bush, mr. secretary always a privilege. >> thank you for having me. mark: coming up after the break, we have the close of oil trading and later california prices for mandatory water tests. it may take a lot more for the state to survive a record drought. ♪

mark: welcome back. this is "mark:autumn line." streaming on your tablet, your phone, and bloomberg.com. remember, you can watch us live, wherever you are. now bloomberg tv is on roku players and android tv streaming for free or also on bloomberg.com, your phone or tablet. coming up, the world economic outlook from the international monetary fund. we will take a closer look at an imf report released today and a look at the fiscal and monetary policies that can help to sustained a global economic recovery. stay with us. ♪

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mark: welcome back to the second half hour of "bottom line." getting to top stories. beginning with the price of crude oil on the close of floor trading. crude up about three percent this afternoon trading at 50 3.97. more now on our top tory. state department and capital have been affected by the white bread power outages reported across the district today and

its suburbs. looking at the live shot of the u.s. capitol. in a twitter feed pepco sent a voltage did happen before 1:00 local time. president obama was not affected by the outage. the voltage reduction was due to a problem with transmission lines. they were working on a transmission equipment fault in trans maryland -- in maryland. it was not smart phones that drove earnings. samsung has been more than offsetting a phone slumps -- sales and flown -- phone sales. that is a look at the top stories we are following on this tuesday. the international monetary fund says private investment in the past economies has fined by an average of 25% since the 2008 financial rices and showed it'll sign of recovery. deputy division chief of the

research department of the international monetary fund and joined from washington. thank you for your time today. one of the challenges list it in the report concerns the extent the time of low interest rate by global central banks. shouldn't that trans late to increase business investment? why have we not seen the global economy accelerate? >> what we have seen is a very unusual time of very weak investment. they say this comes with policy response, but investment days we . we try to understand what is going on. we can it is the overall weakness of economic activity both abroad and at home, that is like businesses are not spending. that is what is holding back long-term growth. mark: how has the reduction of

capital spending affected output? >> businesses are spending less on the equipment software and this is basically eroding what is the future growth. very important to turn it around. we have some suggestions, fiscal policy, monetary policy and infrastructure spending. mark: the report sees growth in advanced economies, but still below levels below the financial crisis. what about emerging economies and the geopolitical risk they face? >> in the report we do mention the slowdown in the emerging market growth in the long-term but we will not get up to the

last geopolitical risk. what we're saying is there is been a slowdown in investment in turning this around is really really a priority for policymakers. mark: what demographic is a play? what factor does the aging workforce play into this? >> there are fewer workers in the workforce. that means less growth. it also means firms see there will be less command. it really comes back to trying to turn around the weakness in investment. mark: you spoke about infrastructure. last week i interviewed sarah minors from new york.

what would global infrastructure and investment mean for economies in the short-term? >> in the short-term an increase in infrastructure spending that is for example building more roads, that creates jobs and also, more demand. in the medium-term it means those roads can expand the ability of people to do business. it really goes the supply side of the economy. that creates a virtuous process where firms see there is more growth in the future and invest more to meet the future demand. it is important to get this done. mark: speaking of not being right everywhere, there are still some disparities and wages here. one of the main problems in the u.s., janet yellen says she has concerns about the wage

stagnation. is that a global problem? is that something being addressed yet go? >> we are not looking so much into wages in this particular par -- report, but what we need is clearly defined infrastructure needs, you need investment processes that you do not till roads to nowhere but build roads to the future. mark: daniel lee, deputy research chief of the international monetary fund joining us from washington. thank you for your time. still ahead, president obama and wright ruled castro expected to meet during this week's summit of the americas in panama city. detailed in today's latin america report. we will go live to mexico city when we return in just a moment. ♪

mark: timeout for today's latin america report. -- time now for our latin america report. good afternoon. >> good afternoon. the story everyone seems to be talking about in the region's u.s.-cuban relations ahead of the summits of americans which will kick off later this and panama city. we know president obama will meet him at the summit for the first time. the white house says there is no formal meeting planned. there is used -- news that may revoke cuba from the tourism

list. here in mexico trying to block american airlines from starting flights between mexico city and los angeles. america recently for us to permission to take other routes from alaska airline, which has agreed to turn it over before june. there will be an open competition for the route instead. consumers would benefit from american airlines on the route because they would offer two daily flights between mexico city and los angeles. alaska airlines currently only offers one flight per day. finally, deutsche bank may look to buy hsbc mexico operations. this according to an analysis from a group. there was an earnings call that mexico was one of four potential market that things may exit. these are the stories making headlines in latin america.

mark: jose with our latin america report for this tuesday. when we continue, few were u.s. oil rigs may curb oil output. alix steel with the numbers when we return. ♪

mark: welcome back. rand paul has made it official he is running for president. the republican senator from kentucky made his normal announcement earlier today in louisville. he is a favorite of libertarian and the tea party. that's we to take our country back from the hustle interest. they use washington as their personal piggy back. he is the son of former texas congressman randy all who ran -- ron paul who ran in searching

campaigns in 2008 in 2012. in chicago voters are deciding who will run the city for the next four years. rahm emanuel horst into a runoff . whoever wins will have a tough job. chicago's finances are a mess and the city credit rating is just a hair above junk. he is seeking his second term. in a televised debate he pointed out what he is accomplished in his first. >> we worked our way through four budgets without property tax, and now number one corporate relocations, number one job creation, number one city where families moving in and the number one little league team in america. mark: perseus is a second term. he promised to put the fiscal house in order and now the city than a financial revolver. that is a look at the top stories we are following. scarlet fu is on the markets. a chat with michael murphy of growth with capital.

later, broad act it of verizon media with a focus on must see tv. california in the grips of a his store four-year drought and options to battle the issue are dwindling with each passing day. we have been researching what the state may need to do to olivier the plan. can cry thing it didn't be an option. -- may need to do to olivier -- eliminate the plan. >> they all smiled at me and said it is a ludicrous idea because of the cost. it costs pennies on the dollar to buy water. but how we pride or transport oil, oil is much more profitable of is definitely not an option. some things that are an option are more than just the short term looking to the median and long-term, which includes and like the idea of harvesting iceberg which would still take a lot of energy.

also increasing agricultural efficiency-is a crop. as well as recycled water in singapore where they have recycled wastewater where you can drink what you put back into the . -- what you put back into the sewage system. mark: california drink more water than any other state according to the survey. who are the thirsty of gekko bacies? >> most of the water goes to the act that there. 20% goes to urban centers. residents, sprinklers, showers and pool. there is an 80-20 divide. most of that does go to the farms out there. mark: running it out as a whole the country when of the biggest water consumers. how does that compare to other countries caps of?

>> not a pretty picture. per capita, 1500 cubic meters per year. going to the other side of the scale, germany and the u.k. only 400 cubic meters per year or 200 over the u.k.. it goes to show people in europe are doing a pretty good job. here in the u.s. we could do a much better job. mark: thank you. crude rose to the highest level in a month to month amid peculation that a drop in u.s. oil drilling activity will curb productions. alex the old joins me here in studio. if this drilling frenzy over? >> that is a tough call. does not seem analysts are making that up a call but we are seeing the repercussions of the low oil prices. the energy information restoration reduced his 2015 production forecast for the u.s.

by 120,000 barrels per day. it just goes to show declining freight rates, low oil prices are feeding through to the production cycle. saying u.s. crude oil production music affected to peak this year in the second quarter. right now in decline in the third quarter. overall oil production will also be revised lower for next year as well. mark: what about prices >>s? >> rent was $99 last year. next year $75. still somewhat depressed oil by -- environment than what we had been used to. what this does mean is when you go to the left a gallon of gas it will be less. diesel a little bit more it and

said but significantly cheaper. lower gas helps demand make refiners. therefore creating more demand for oil. mark: family think more vacation because they can drive. what about airan? >> very interestingly, they say if more of iranian oil is on to the market you could make them divide the forecast lower but my $15. that means it could be that he dollars next year and a os warty dollars for this year. the idea is they could boost output. they're calling for 700,000 output by the end of the day. other analysts a little bit worth tactical and have lower estimate. overall it could lead to more oil on the mark, more global inventories. that hurt storage capacity. towards level keep right -- keep dropping.

mark: all hinging on whether they can get through the technical aspect that is another story. what do the analyst as say? >> goldman had an interesting note saying production was at the peak. this is the recent number is not good enough yet to trim the number in order to rebalance markets market. also mentioned a lot of wealth are drilled, but not completed. you can drill in phil and therefore, more oil is produced. we will be talking about energy, iran, and other thing. we have lima croppedoft. should be a really great conversation. we will get both of them talking high-heeled energy bonds. that should be fun. -- high yield. mark: stay with us.

another check of the market movers after the break. we continue in just a moment. ♪

mark: get the latest headlines at the top of the hour streaming on bloomberg radio and bloomberg.com. i am mark crumpton reporting from new york. thank you for joining us. i will see you tomorrow. ♪ >> it is 56 that the hour, and

that means bloomberg television is on the market. just over an hour to go in u.s. trading stocks are writing for third day on the back of u.s. field. waiting on the art of earnings season tomorrow. the euro resumes weakness with the selloff last week overdone. oil everything the oil -- earlier drop. speculation of decline in production. returning to equities are a moment, energy companies have led the way higher the past three days. the biggest slacker trying to gain momentum. look at this writer etf that track the energy sector, up more percent. what is the best way to play it as we head into the art of earnings he said gekko joining me is mike murphy, ceo and managing partner at lowe's click capital. energy shares get beat up when energy prices rise. analysts looking for prices to plunge at least 50%. is that christ in already?--

priced in already? >> i think it is. we know that a lot of numbers came dumping as of the dollar and the lower price of oil. has it been so low we get positive upside in earnings season tackles that is what i will look for. >> to your point, it shows how s&p earnings are slated to follow most of percent. extend that to the second and third quarter. earnings per share actually rises. what is the better indicator of earnings overall gekko include or at lewd energies gekko >? >> i think you have to include because it is such a big part of our economy. we cannot does it with the fact they will get hit. you also cannot ignore the fact that while the price of oil has come down so hard, that is the tailwinds for the other sectors of the economy. it really becomes a stock

pickers market. >> stock pickers market, all right. in addition to energy for other sectors are set to the earnings drop as well. materials, utilities consumer staples. what is the common thread? >> i don't know if there is one common thread. you could look at the dollars. i think money will come out of utilities as people at birth rate hike later this year. that is money coming out of the utilities. the other one is financials people are starting to set the bar really low. when they start announcing earnings next week i think you will see white if you upside surprises. >> do you get the sense we are at peak margins cap though you have walmart and others saying they will pay their workers more. have we reached p/e margin gekko-- peak margines?

>> i don't think we're anywhere near it. companies can be more profitable . when you look at the dollar and the affected his head on the market i think some of that we may have overshot to the downside on how negative things will be. i am a lot more bullish. a lot more upside there. >> a lover of from mike murphy. thank you for joining us. much more markets coverage. street smart is up next with alex. ♪

>> welcome to the most important hour of the session. i am alec deal, and this isi "street smart." joining us to discuss oil, a wroiram/ amdn. rick reeter will join in. all of that there is right now.