mark: from bloomberg world headquarters in new york, i am mark crumpton. 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 around the world, welcome. full coverage of the stocks and stories making headlines. soaring inflation and declining currencies in venezuela. saudi arabia's highest increase in crude oil production in 30 years.

let's get you to the top stories . goldman sachs reported its highest earnings-per-share in more than five years. all of goldberg's major businesses beat estimates. the firm paid a smaller portion of revenue in compensation. citigroup also beat estimates first quarter net income rose 21%. citi helped offset trading present it with a 10% drop in expenses. etsy shares doubled in early trading after pricing at the high end of the range, a ranged -- a raised $267 million in its ipo. party city went public, shares opened 20% as private equity owners did not sell any stock in the ipo. trading is underway from virtu financials. the first high-speed trading firm to go public. it raised 314 million dollars in its offering.

the ipo was delayed after the publication of michael lewis' "/boys." -- "flashboys." another sign of strength in the u.s. labor market. for the sixth straight week, fewer than 300,000 americans filed for first-time jobless benefits. the table a number of people receiving benefits was the lowest since 2000. the international monetary fund and the world bank are holding their spring meeting in washington. bloomberg "surveillance" anchor tom keene spoke with christine lagarde. here is her take on the economic recovery. ms. lagarde: today we are seeing recovery coming along. forecast of 3.5% this year and 3.8% next year. it is not strong enough. it is very uneven. you mentioned brazil and china you could have mentioned russia. we had a very diverse section at

the moment. mark: ms. lagarde said she would not support a delay in greece's debt payment, saying the imf has not granted a payment delay in 30 years. that is a look at the stories we are following. the u.s. housing recovery may be slowing. new home construction rose 2% in march far less than the 16% forecast by economists. an improvement over february. michael is chief u.s. economist at j.p. morgan in new york. welcome back to "bottom line." good to see you. michael: good to be here. mark: the jobless rate is 5.5%. why hasn't that been enough to support the real estate market? michael: one of the biggest issues has been restrained household formations and not a

lot of people moving out of their homes. we have seen glimmers that that is changing but i think we will need further improvement in the labor market. mark: by region, housing starts numbers raised from a 150% gain in the northeast to the 19.3% decline out west. what is fueling those numbers? michael: this number it was a disappointment. we did and february see a plunge in housing starts and we are expecting that to be reversed today. we saw that march levels are below quarter one and quarter for average levels. there might be some weather effects. perhaps early in the month that may have been a restraint. overall we are doing poorer than expected. mark: are potential homebuyers even with low mortgage rates, strong job growth and at her savings from below gas prices,

are they being priced out of the housing market? michael: there is some evidence. price to income ratios are looking high, certainly in some areas. nationally, the evidence is not as strong but that is what is holding things back. there seems to be a shift in cultural attitudes towards homebuying. we are seeing a lot more rental occupancy and rental vacancy rates are pretty low. the multifamily side of things is looking ok. in terms of the list of things that may be holding back housing, being priced out of the market on a national level is probably not number one. it might be different in new york. mark: jeff mesko ceo -- the ceo of kb home said last month as millenials enter homebuying years, demand for homes should climb. do you see that, even as the number of millenials renting continues to climb?

michael: i think we will see it in a more subdued manner than one would expect were it not for the effect of the great recession. one thing we had seen in past episodes of really deep downturns like the great depression or the 1981 recession, those people who came of age during that time, their homebuying rates remain subdued even as they got older and live. into their higher -- moved on into their higher earning years. millenials will buy homes maybe not quite as much. mark: what is the earnings power look like? michael: in terms of the labor market improvement we have witnessed in the last year or so , the 25-34-year-old has participated as much if not more . i do think the millenials like

everyone else, are facing a better labor market. mark: bloomberg intelligence's homebuilding. and x has climbed 23% from october until yesterday. during that time the s&p 500 has returned 8.2%. what do you think is giving investors optimism? michael: mortgage rates have remained low of that period. the fed has been accommodated. we have seen improvement in household formation. things like am improving labor market or gas prices should help the household sector in terms of consumer spending and homebuying. those might be some factors. mark: chief u.s. economist at j.p. morgan, joining us from new york. always good to see you. thank you for your time. in other ms. a battle brewing

over future leadership at europe's biggest automaker. the volkswagen ceo martin winterkorn is planning to fight for his job. kevin joins me here in studio. thanks for your time. we have a power struggle between the volkswagen chairman and the ceo. kevin: mr. piak has not provided his support for martin winterkorn. the answer and is really -- the uncertainty is troubling. even mr. piech does not have a lot of time as chairman and it looks like he wants to assign a new ceo before he steps down. mark: it is my understanding that mr. piech was mr. winterkorn's mentor.

do we know what happened? kevin: aside from anything personal, the only shortcoming i had seen in mr. winterkorn's rein is the performance of volkswagen in the u.s.. the drive to become the largest automaker is going to require more than a 3% market share in the u.s.. china and europe is helping them but in the u.s. 3% market share you are seeing incentives starting to climb in mind with some of the domestic automakers. it tells you that strategy here is not working. mark: do we have any idea where volkswagen's unions are? kevin: i do not think anyone has chosen sides publicly. the thing unions want is to remove the uncertainty. talk of someone from porsche

being inserted. martin winterkorn has done a lot of great things. record profitability and growing the automaker. on the other side you could knock him for lack of growth in the u.s.. the union wants to know what they are doing going forward. mark: this is interesting. even before mr. piech had a chance to speak to the board semi-saying he came out to the media and said he did not want mr. venturewinterkorn to succeed him. kevin: he has not gotten widespread support for that opinion. you do not know what is going to go on behind closed doors. there have been indications that other board members do not feel the same way that you do not know what kind of power he is wielding before these meetings. usually there is a longer lead time in terms of a heads up. so this seemed to be thrust upon

the board and they have not publicly chosen sides. mark: can mr. winterkorn get the job without mr. piech's backing? kevin: technically, yes. but it would be difficult because his contract is up before piech is out. mark: thank you so much. we are hearing that the meeting is over and we do not have any word yet about the outcome. bloomberg television will continue to follow the story and bring you updates as soon as we get them. coming up, a big day in the ipo market. we hear from the ceo of virtu financial. that and more when "bottom line" continues in a moment. ♪

mark: the u.s. ipo market got a shot in the arm after shares of a high frequency trader jumped in their trading debut. virtu financial raised $314 million in an initial public

offering. ceo douglas cifu is with bloomberg's ipo reporter leslie picker. leslie: thank you. a year ago, michael lewis published "flash boys and set off a spiraling effect. was there a misconception now that you have debut to successfully a year later? how has that changed over the course of the year? douglas cifu: like we told people, it was a great year. it enabled us to be transparent. if forced regulators and market commentators to look at a marketplace and say what are these firms? what do they do? what is virtu? what value does it add to the ecosystem. you heard the answer today. leslie: what is the value? douglas cifu: we provide two-sided liquidity continuously in 11,000 financial instruments in 34 countries 24 hours a day five days a week.

so we have brought efficiency to the function of providing the two-sided liquidity to natural buyers and sellers that want to transfer risk between each other. leslie: another statistic you've had one day of losses in six years for stop how do you explain something like that. douglas cifu: we trade a lot. we are providing liquidity in all the different instruments -- stocks, derivatives and currency pairs. the law of large numbers, when you do something a lot you should make money every day and statistically that is what virtu is. leslie: what happened that one day? douglas cifu: it was an operational error. as long as you continue to do something repeatedly and manage risk acutely you should make money. leslie: i do that you have seen some high-profile market structure blowups.what does virtu do differently? douglas cifu: we take it

seriously. we have developed technology pretrade and post-trade to manage that. the most important orientation that differentiates virtu from the firms you mentioned and maybe other great firms is that we do not have customers or clients in a traditional sense. to the extent that we see risk or anomalies in the marketplace internally or externally, our dna is to investigate those. if we need to turn off a server, market or acid class we will do that to assess risk and then go back into the market. that is a key point. leslie: a market that is very fragmented, as some critics have looked at. 50 different places you can trade. people say that benefits companies like virtu. douglas cifu: we would prefer a more consolidated market. nobody would design a market with 50 u.s. banks. we want to interact with order flow. we want competition but we want to make sure that the good order flow is and 5, 10 or 15 venues

that would be adequate. we make markets in countries where there is one marketplace and we provide liquidity. over fragmentation is not our friend. leslie: what about in terms of high-frequency traders? you have some competitors on smaller sites, do you anticipate consolidation and high-frequency trading? do you plan to be a part of that? douglas cifu: the business has become competitive. the margins on an individual stock or acid class are very difficult to achieve. so it is natural that you would think that larger firms would consolidate. we had talked to generally that we might be a consolidator, we have no plans that it is something we would consider in the future. leslie: you have been blessed with an ipo debut date that has been very successful, along with a few others. what was it like on the road with etsy and party city? douglas cifu: we spent 11 days

trying to catch etsy and party city. we bought cat socks and mullets from etsy and party city. leslie: a trio of great debuts. douglas cifu ceo of virtu. thank you. mark: thank you both so much. coming up exploring this question, what's worth more venezuelan bolivars or $20 bill. guy lebas on why he is concerned about bond markets. tom brady and his wife, gisele punch in. that anymore when "bottom line" continues in a moment. ♪

mark: check out the latest edition of bloomberg "business week." the cover story on hillary clinton's campaign. you can read it on the go with our business week app. welcome back to "bottom line." if you are living in venezuela and you go to the grocery store you might need to leave your wallet at home and carry cash in bags instead. inflation is soaring and the currency has depreciated so much that locals need to carry more bills for everyday purchases. following this story and joining me in studio. what is happening to the currency and is it possible this is a sign of hyperinflation? >> depends who is defining hyperinflation, for u.s. standards they have more than

100% of cumulative inflation over three years. it is not the hyper inflation of 2000%. some estimate that inflation could reach 200% this year. there are so many all of our -- so many bolivars chasing very few dollars. in the market you have a rate of 280 bolivars per dollar. mark: the black market is not the only option. katia: there are four currency markets including the black market. the other is highly regulated. you have 6.3 in the official that is limited to essential imports like medicine and food. there is the sicad rate not essential imports. the simadi rate just developed

in the last couple of months and is a free market. there is very little traded. the black market which is where your everyday person would buy a dollar if they want to protect themselves from inflation. mark: clearly this system is under more and more pressure right now. what are the odds it is going to last? katia: it should not last, it is buckling and they are constantly changing. the simadi just happened a couple months ago after they closed one market. there have been multiple ones popping up since 2010. seems like the thing to do is scrap the whole thing and start over. the political thing to do that is tremendous. the devaluation of 6.3 -- devaluation -- the valuation of

6.3 does not look good and it has a big stigma. mark: venezuela has billions of bonds to pay off. it is the country most likely to default after ukraine. is the situation as dire for editors as it is for ordinary venezuelans? katia: depends on the time horizon but they have a lot to do over the next three years. they have over $20 billion due and only $20 billion in reserves. you might ask some economists and they have off budget funds and assets to sell close to $70 billion if they could put the pennies together. they keep doing things that are trying to get dollars in any way they can. they will burn the firewood. the question is, do they have the creditors in mind when push comes to shove, when they cannot import food anymore?

mark: katia porzecanski with a look at venezuela. when we return, we talked to guy lebas fixed income strategist at janney montgomery scott about why he is getting concerned about the euro bond markets. ♪

mark: welcome back to the second half-hour of "bottom line" on bloomberg television. thank you for staying with us. some of the top stories on this thursday, april 16. a check of the price of crude oil in the close of floor trading. crude up today a little bit more than .5% at 56.73. viewers around the world flocking to netflix, both global and u.s. subscribers rose more than expected first-quarter and sales were up 24%. shows such as "house of cards" has helped the service attract

62 million viewers. reed hastings says the company is on a roll. reed hastings: when i'll let these markets, the internet and internet television -- when all of these markets, the internet and internet television is catching on we are leading competitors. we have competitors around the world and we are feeling very bullish on the long time in all of these markets. mark: shares reached a record high. hastings is expected to recommend that the board split netflix's stocks. that's a look at the top stories we are following. we turn our focus to the greek debt crisis and its impact on the global bond markets. guy lebas is chief fixed income strategist at janney montgomery scott. the imf managing director christine lagarde spoke to my colleague tom keene. she said she would not let

greece skip a debt payment. yesterday, wolfgang schaeuble told bloomberg further concessions to greece will not happen. will there be a debt deal next week? guy: we are getting down to the critical moments in terms of whether greece's fiscal problems are about illiquidity or insolvency. at the end of the day, lending a country more money this problem is over and is not a winning solution. the option -- lending a country more money whose problem is overindebtedness is not a winning solution. mark: we are hearing the news that greek bond yields and peripheral bond yields are getting dragged down. do investors believe greece will

not be able to reach a deal? guy: with the degree of pricing and the negative built in, there is a likelihood that at some point down the road there is another default. where that point is does not necessarily matter so much for the pricing of a 10 year bond between next week and three months from now. functionally, there is no way the greek economy can survive with this level of indebtedness. mark: the selloff is reaching corporate bonds. bank selloffs are reaching records. could those headwinds make their way to the u.s. banking system? guy: i don't think there are strong connections between the u.s. and greek banking systems. there are some intercontinental connections within europe. the issue of the banks is is at some point several months down the road debt negotiations begin to deteriorate, the government

considers leaving the euro, you could see a run on banks leading up to that. that would be a serious concern that the ecb might stop providing liquidity to the greek banks. if anything that is the catalyst in the summer and later this year to drive a change. mark: i'm speaking with guy lebas of janney montgomery scott. you talked about eight greek going back to the drachma. if greece default or leave the euro, what would that look like? guy: we are in a different scenario than 2010 or 2011 when we started talking about this. greece is the size of wisconsin economically. comparing it to a u.s. economic situation. in the global schema thinks there's not a huge relationship. the psychology is more important and the fact that we have come

so far since 2010-2011 as market professionals and being able to contemplate a greek exit means the net impact in the long run will not be that's in severe. you can imagine where the greek currency is stronger -- the euro is stronger if it's weakest member chooses to exit. mark: my colleagues wrote recently about how the rising dollar is redistributing growth throughout the global economy. who do you think the winners and losers are? will the euro see parity? guy: it is our base case that the euro will see parity with the dollar later this year. it has to deal with the slow really nature of qe in europe, putting euros in investor's hands and they have no choice but to allocate that to foreign assets that are performing better. essentially, how i choose to view it is that we, via the u.s.

dollar are importing deflation from our trading partners. for each 5% to 7% rise in the u.s. dollar that is worth about 30 basis points worth of basis points. connecting it to fed policy, which is a driver of domestic policy, the fact that we are importing deflation makes it tougher once the fed gets started tightening. mark: guy lebas chief fixed income strategist at jenny montgomery scott. good to see you. next, a latin america report live from mexico city. when "bottom line" on bloomberg television continues in a moment. ♪

mark: time for today's latin america report. let's go to our partner in mexico city. good afternoon. jose: good afternoon and good to

see you. let's kick things off in brazil, the currency market is reacting to widening corruption investigation at the state-owned oil company petrobras. the currency dropped for the first time in three days this morning in sao paulo, falling .1%. weakening on the concern that petrobras is getting closer to dilma rousseff's party. police arrested the treasurer of her party tuesday, he is accused of accepting illegal donations from petrobras. herself was chairwoman of petrobras when the corruption happened. she has not been implicated so far. now to cuba, the governor of new york will travel next week on a tradition. the first u.s. governor will travel to the island since barack obama lifted the travel restrictions in january. andrew cuomo will bring executives from new york looking

to reach consumers in the communist country. normalized relations between the two nations took a step forward tuesday after president obama proposed to remove cuba from the list of nations that sponsor terrorism. these are the top stories making headlines in latin america. back to you. mark: joining us from mexico city. thank you. coming up, will there be more job cuts at the world's biggest oil services company? reporting earnings after the bell. that story is next. ♪

mark: listen up, disney has released a new "star wars" trailer. take a look -- [music plays]

>> we are home. mark: alix steele is sitting to my left and she just got so excited. the force awakens opened in december. i'm very happy for you. some of the other top stories we are following. a bloomberg exclusive, information you can only get from the terminal. here's the highest-paid executive in the u.s., founder and ceo of go pro nick woodman awarded restricted stock valued at $285 million. this comes from the pay index, the first daily ranking of executive pay that updates

compensation based on the price of the stock they have been awarded. ben bernanke has a new job, working for a hedge fund. the former federal reserve chairman will become senior adviser at citadel, the firm run by ken griffin. bernanke will offer analysis of global, economic and financial matters. he says he chose the firm because unlike wall street banks, citadel is not regulated by the fed. a brand-new bloomberg politics poll has good news for president obama. for the first time in five years, the way the president is handing the -- is handling the economy is seen more positively than negatively. 49% approve of the job the president is doing. 46% disapprove that is a change from december. then, more than half disapproved of the president hospira form and on the economy. blackstone's ceo steve schwarzman says his firm is like apple, google or boeing. he said like those companies,

blackstone has clients who need the firm. he drew an analogy between what he does and sports. steve schwarzman: we are like a basketball team without a 24-second clock. we do not have to shoot. we do not have to be invested. we just wait for an easy shot. we keep passing the ball and we go for a layup. we only in private equity have to do 10-12 investments a year to invest our money. mark: laxton reported first-quarter profit that doubled from a year ago. the firm said that for the first time it has more than $300 billion in assets. that's a look at the top stories on this thursday. coming up on bloomberg, scarlet fu with a special edition of off the charts and a look at take-home pay of gisele bundchen and tom brady. time for the commodities report. good afternoon. sue: audio higher for a six

today, recovering from a dip earlier on concern that saudi arabia has boosted production to the highest in three decades. check out the swing in oil, at one point it was down more than 2%. it regained ground and as you can see it and to d-day higher. --ended the day higher. midday a dent in the road higher, double-digit rebound. the entire complex got a lift today. gasoline just turned lower in a few minutes. traders point out the supply surplus remains. analysts pointing out that even though the rate at which the fuel supply is rising has eased "i do not think you are going to get a decline in supply anytime soon." which brings us to the surge in saudi arabia and output. about half the daily output of

our biggest shell producing region in north dakota. saudi arabiaa boosts production and the market is resilient to that. mark: we have copper reacting to stimulus likely in china. su: china is the biggest user of copper. a lot of traders say there is optimism that a stimulus package will be available. bullish for copper, which is driving the lead. we also have gold, swinging between gains and losses and pretty much trading unchanged. affected mainly by the view of how quickly the fed will be raising rates. mark: su keenan, thank you. schlumberger reports earnings after the bell. schlumberger is the world's biggest oil services company.

alix steel joins me with more. alix: we are expecting 90 cents a share for earnings, down about 26%. schlumberger is still going to net $1.2 billion, down 25% year on year. sales estimated to be down almost 7%. it is a double when he for oil services. they are losing business as the rig count drops. the companies that are keeping their business can go to them and say i want to keep the rig for less. goldman sachs is looking for these kind of cost reductions of upwards of 30%, painful for services like schlumberger. bloomberg intelligence points out that schlumberger has a strong international presence, 64% of sales internationally and capex they are falling 15%.

here it has been falling 40%. might not be the worst of the group. mark: one of the big questions are there going to be more job cuts? alix: one of the hugest questions on the call. schlumberger eliminated 7% of its workforce. 9100 jobs, bloomberg intelligence points out the production segment might be holding up better than dri lling. tudor pickering said buy the dips, the move is about prices and not earnings. mark: oil trading at the highest priced so far this year, does that help oil services? alix: sure, but north dakota's department of mineral resources said oil production in february dropped by 15,000 barrels. commerzbank says it is hard to tell if that is because the weather is bad or if it is a seachange. it's not just about the u.s.

saudi arabia is pumping 10 million barrels a day, and an arm is an out -- an enormous amount. mark: can they keep producing that much? alix: yes. saudi arabia could produce 11 million barrels a day. it would be pretty historic and that could be during the summer. most days it is because of demand and not because they are trying to infiltrate pressure on the u.s. mark: in a little less than eight minutes you will be hosting a "street smart." alix: anthony rizzo, first baseman for the cops. -- the cubs. i will be talking to the global chief u.s. economist at unicredit. mark: our producer is talking in by ear.

he's a red sox fan, he is bad mouthing the cubs. mark: scarlet fu will join us after the break. ♪

mark: welcome back. after two decades of strutting her stuff on the catwalk, gisele is retiring. she wants to spend more time with her family. scarlet fu examines gisele's earnings versus the guy she is married to. scarlet: gisele is hitting the

high note and walking out. that was her final sawalk on the runway. she walked the runway three times. she's still involved in the fashion industry. she has lots of things going on. if you look at the numbers, you will know why. according to "forbes," gisele bundchen took in 47 million dollars in 2014. there is the trajectory of her earnings. in 2010, she banked money $5 million. her pay went up 80% in 2011 and then it stagnated. she had her second child in 2012. her son was born in 2009, before the chart they can -- before the chart began literally off the charts. shemark: i would like to

stagnate like that. you promised numbers on tom brady. scarlet: her better half, quarterback of the new england patriots. he's been trying to keep up for a wild, even with his endorsement deals with under armour. he made $13 million in 2010 half of what gisele took home. the peak was $38.3 million in 2013. last year his trajectory when south after he agreed to a contract extension in which he did not push to get paid his market value because he wanted to give the patriots more money to hire other players. mark: he left money on the table for his offensive line. scarlet: he gave up some money. he was out earned by gisele by

$16 million. mark: they're a finite amount of time where they are in the spotlight and they earn as much as they can when they can. how does gisele compare? scarlet: i go with cindy crawford as a benchmark. at her peak in 1995, she may anywhere between $6 million and $9 million. let's say she made $9 million in 1995. re: economist crunched the numbers for me and he figured out that $9 million in 1995 is equivalent to $13 million today. not bad but certainly not gisele territory. highest-paid models, it's below heidi klum but above kate moss, who made $9 million. mark: tom brady, when his contract ends, what is his prospects?

scarlet: i imagine he would move onto broadcasting with the likes of dan marino. michael strahan is the guy you look at in terms of a playbook. he's a media personality and the host of a morning tv show. he is an analyst on sundays. by one estimate he makes $10 million a year. mark: and does not have to get hit doing it. scarlet: he has to wake up at three in the morning. mark: thanks. that is it for "bottom line." "street smart" alix steel is next. see you tomorrow. ♪

alix: welcome to the most important hour of the session. we will ask -- athens is running out of time to secure more funding. greece's finance minister is speaking speaking in washington and he says greece will not adopt rolla reforms and the crisis is not a greek problem but a european problem.