>> live from bloomberg headquarters in new york. this is "market makers," with erik schatzker and stephanie ruhle. erik: he spends more time in the surf than he does on wall street. wait till you hear what the higher seed -- highest paid ceo and america is. explaining the saudi strategy. why they refuse to cut off oil prices by cutting production. eureka. you'll see an innovation that change your life if you are like those who like a lot of calories for breakfast. meet the creator of the krone. happy friday. i'm erik schatzker.

stephanie is going to be here a little bit later. we are going to begin this hour with breaking economic news. two pieces of key data coming out with economic and decatur street and the university of michigan consumer confidence. -- university of michigan consumer confidence. >> it comes in and the second-highest since 2007 easily beating estimates of 95.9. the forecast was for monday for -- 94. a big jump in expectations going higher. people think the economy is getting better. here's what is really going to concern the fed. inflation expectations dropped significantly. the one-year inflation picture was dead. 2.6% were both at about 3% prior. the fed has put a lot more weight on the survey and the caterers than they are putting

on market indicators like tips. if investors think they will have inflation, that's a problem. they think that is working the way into people's psyches. the leading indicators common disappointing at two dents of a percent. -- 2/10 of a percent. the leading indicators is a number that we may not pay much attention to anymore, but much of the data is telling us that the economy is still treading water, but not much more than that. erik: that was michael mckee. let us talk about some of the stories that you need to follow in the world of business. there was more economic data out this morning. mike was just talking about inflation expectation. inflation may be picking up. the core cost of living rose 2/10 of a percent in march. that reflects a rod-based increase in risk and medical care and use cars. on a euro basis, prices excluding food and energy rose 1.8%.

fed policymakers want to see some inflation before they race and from straight -- interest rates. the officials are worried about raising interest rates to send. -- too soon. one says it is not his preference, but the option is not off the table. boston fed president says that the economic data would need to improve before interest rates can be raised. the fed will wait until at least september before it makes its first move. nasa something you rarely see in washington. president obama lining up with republicans on a bill opposed by many democrats. they agreed on legislation that would give the president authority negotiations -- to finish negotiations on transatlantic partnership. those opposed say a kid lower wages and kill jobs. republicans want to give the president tpa to fast-track the deal. >> we leave the world on trade

right in the rules, and setting standards. if we don't, other countries like china most certainly well. we can address all these concerns by passing strong tpa legislation. erik: the white house is the deal would open more markets to american goods while preventing american companies from outsourcing jobs. here's a sign that businesses are limiting fossil fuel missions. the heads of 43 companies like dow chemical and you will ever have called for slipped action -- with action on climate change. an open letter, they have had their own businesses move toward and more climate from the economy. more mankins believe that president obama should begin a chance. while those surveyed think that the affordable care act should be given a few changes, we should see how it works first. 12% to leave it alone and 35% wanted to be repealed. fall many want to root -- while many want it to the original, it

has remained constant that many people believe it should remain law. transactions like shell costs $70 million play for bg group may signal ceos growing more confident. scott is more confident. he is a ceo himself. what do you sense from your clients? is a growing confidence among ceos to do deals, particularly large ones? scott: i think there clearly is. stop markets are near an all-time high and inflation is really low. the consul financing is the lows of ever been -- the cost of financing is as low as it has ever been. there's no confidence the fed will raise interest rates in soon. erik: there's a problem that. i could replay a conversation that we had last year and we could say all the same things. we see evidence that the average deal size has been growing year-by-year. we can show everybody in fact

because we check that kind of data here. what does that tell us you? scott: there's no question we had a long recovery from the deaths of the crisis in terms of activity and confidence. if you look at the number of deals being done, you today, is actually down if you count deals of a billion dollars or lower. the big increases $5 billion or greater. there are about 22 this time last year. there were some megadeals like the shall do. is the concentration among these megadeals. it is still not the broad-based recovery of huge deals. erik: you would not call it a healthy environment for mna unless we begin to see that "middle-market stuff" happening? scott: i think we show improvement. we announce a lot more deals in the first quarter them we did

last year. we are seeing a low bit more around the world and the u.s. is still the strongest market by far. erik: what are you looking for when you analyze the data about your guys crunch and that we hope we provide you with? what are you looking to see? we're talking moments ago about leading indicators of the economy -- one of the leading indicators of m and a? scott: what a lot of people do this read stories on volume. that is the sum of all deal sizes. one you do one deal on shell, suddenly the statistics look great. you have to do more than that. i look at deals by category. what you can clearly see last year and this year again is an improving market but it's improving from the top-down down which i think is quite unusual. erik: what about the use of stock over cash? scott: i think that is a function of two things. if you are doing and $80 billion deal, you're not doing it with cash. erik: amazingly, some companies

could. scott: some can, but very few of them. on the other hand, private equity still has not been involved. i think that is one of the key factors in when private equity gets more active. they are cash buyers. erik: true with leverage. wise private equity not playing a big role in this market? scott: i think there are companies focused on strategic growth. they wanted to companies that are synergistic. they want to combine with companies where one plus one equals two. i think private equity -- i think some companies are more reluctant to sell private equity than they once were. i think there's attitude among some boards of what are they going to do that we can do ourselves. if they are going to sell businesses, why can't we do that? erik: are you following the advice of your own activists? scott: essentially. you want to do it without

external forces coming to your company. erik: how much more powerful force could activism become? it is argued in a powerful force, but you get the sense that for example with them going after qualcomm, i hate to say that it is tilting at windmills, but activism can only do so much, especially with companies that are as large as qualcomm. scott: i think activism is a major factor in corporate america. even on what you read and analyst reports they're so much that happens beyond the scenes. -- behind the scenes. yet the figure out what an activist wants and how you can get have that. erik: you have conversations like that with your clients? scott: all the time. erik: what do we need to do to make sure there are no activist knocking on my door? scott: what might not activist attack us on? erik: that is a conversation that 10 years ago known would've had. scott: right.

if they had legitimate concerns if too many businesses were undervalued or under leverage, it be a hold friday of things could let's get ahead of them. erik: is that going to stop ceos from taking mna risk? when i say risk it is not about cutting costs included -- and boosting the bottom live that way. it is being aggressive in trying to acquire new products. is it that fear of being attacked ryan activist going to prevent it? that would herald the return of an aggressive and and a of market when you see companies do these type of deals as opposed to synergistic stuff. scott: i think they are likely. we may have it longer cycle. in the past, mna will get very inactive. look in 1999. look at 2000 seven. a goes to extremes sometimes. today, i think activist will put a lot of scrutiny on m&a

deals. if it is a deal that is diversifying, they're going to attack. erik: one last question -- how much of a role is the dollar playing? scott: i'm not sure too much. on the positive side, american families have a very powerful currency to go to europe and emerging markets to buy assets. here is the prevailing factor. i think there is a huge consensus around the world that the u.s. is the best place to be for probably a long time. our demographics are the best. our economy is the strongest. financial markets of the deepest. regulations are the lightest. i think a lot of foreign companies notwithstanding the strong dollar want to get more their assets in this market. erik: great to see you and thank you for joining us on this friday morning. scott bach is the ceo of greenville. riding the wave to the biggest paycheck in america. we are going to see how the founder of and a mentor -- and adventure sports company will invest in that an m beal --

unenviable position. we're going to look at what is behind that momentous decision that shocked the market and the world. ♪

scarlet: welcome back. we have a global selloff and equities underway. coming inside the bloomberg terminal, you can see the global index. this is how they open for trading. they actually took a leg higher. the bottom fell out and we started declining. that is when the line really takes it down. we are just down with the s&p and nasdaq losing ground. you can see the s&p losing 1.1%. the dow off like to 61 points. -- off by two under six and one points. you're also seeing a big sharp

incline in the fsi. it's tracks chinese stocks. they actually closed higher overnight. economist and regulators indicate that they danced margin trading businesses for over-the-counter stock trading. that is pushing chinese futures lower because that adds all kinds of questions on what it means for chinese stocks which so far have been driven up by a tent from mainland money coming in to hong kong and it's a chinese equities and shanghai. we will continue to keep an eye on that one. the dollar races earlier losses after the latest inflation report on consumer prices show the core inflation actually picked up in march. it increased 1.8% versus the consensus estimate of 1.7%. that is what the federal reserve pays attention to. despite the fact that they have been over the place on what is the interest rates headed and went with all should take place. erik: scarlet, thank you.

the taoist liberal way of giving up its games for the years. time now for some more of the morning's top stories. by one measure, general electric posted first quarter profits that the estimates. it offset the drag on the oilfield machinery business. the ceo was upbeat. >> we see a get better every day. europe is slightly improving. overall, china remains good for ge. we spent to have a positive revenue and place like the middle east, latin america, and africa. erik: when you tally it all up ge posted overall loss. the main reason is that cost going to the sales of most of the assets and its finance unit. is going mainly to blackstone. the worst performer in the dow this year's down again as you. american express fell again after reporting first-quarter earnings.

it even be estimates on the bottom line though. the company has to show a can recover from setbacks, including an end of a partnership with costco. the ceo leaves that it will be flat to slightly down. verizon is breaking up a bundle. the fios tv bundle will allow customers to buy which channels they want to i and not the ones they don't want to watch. with competition from netflix and hulu, they help to go over the top. those were your top stories. coming up in 10 minutes, why we may be in the early stages of a bull market in japan. we will start talking with the ahead of blackstone's fun. and i why saw these went from the oil market share and higher prices. and one of the most important innovations of the 20% should -- 21st century -- are probably not. but we talk with the creator of the cerronut.

who is america's highest-paid ceo? according to data gathered exclusively by bloomberg, it is the go pro ceo. it is a daily ranking of highest-paid u.s. executives based on changing value of their stock grants. that is the key. bloomberg help put this together and laura is here. i'm looking at the pay index on the terminal and one of the things that you watched the bloomberg terminal for is that no one has the stuff. this is what looks like on the bloomberg screen. we have a bunch of names and dollars in the companies they work for and the stars. what do those rankings tell us because i see lots of money and one or two stars next these people's names? laura: what are pay index does is the executive ranking of executive pay. .

so based on what we gathered on nick woman is that he is going to be the highest-paid ceo. the stars show paper performance. that is on an average three-year rolling basis. that is showing us that they are creating and the executive and their decision-making processes creating. stephanie: lots of people on delivering. look at the highest-paid ceo in america. $500 million. laura: that is the current value of his pay package. we broke the news last year that he was the highest-paid ceo in the u.s.. their company has never turned a profit. they are banking on this idea that they will be able to export natural gas. it is not happened yet. they have a lot of investments and their infrastructure and they just have not been able to prove profit yet. that is why he is one star. erik: let's talk about nick

woodman. how's he going to top. laura: he was granted shares before the company's ipo. we found that out from a prospectus in november. those 4.5 million shares are worth about 285 million at the end of the year. that is how the index is gauging awarded pay. we are pressing executive compensation package as of the companies this goal year. that is how he's going to unseat on index. erik: you have had a lot of time to play with this. i'm going to be playing with this. it is brand-new. what do you find most fascinating about what we learned, looking at the data? laura: what i'm excited about is to see how the pay package changes the value. you can see that on a day by day basis how a company's executive pay is tied to their stock value. erik: this is critical information. laura: we hope for shareholders

too. we hope that shareholders make decisions on whether of not they approve of a company's pay package. erik: quite frankly, is adding transparency to the process. laura: as what we hope. our performance metric is very unique. we want to stay away from total shareholder return because we know a lot of times, executives don't have a lot of control over how the stock price does. people look at oil executives as a perfect example. the price of oil has a huge impact on their shares. but we want to look at whether they're making decisions that are covering their cost of capital and then some. which we think will provide more value for investors. erik: so there is a conspicuous lack of five star performers in our rankings. why is that and who deserves a gold star? laura: the gold star goes to apple ceos tim cook. all of apple's management has a

norm is three-year economic profit. the way we measure it -- tim cook gets paid about -- erik: five of the top six or apple executives. laura: they are a machine. they are a gigantic company. that billions of dollars in revenue. they are making decisions that are profitable. tim cook is the best performing seo and the whole management team is really doing a great job according to our index. erik: transparency -- force, i hope you're listening. if you think about getting on bloomberg terminal and haven't yet, press the button. laura, think you very much. bloomberg's new pay index. we will be back and couple minutes. -- in a couple minutes. ♪

erik: coming up, the next market to take off. the head of black rocks do anything go anywhere fun. why he is bullish. plus, genius takes many forms. one else do you call the guy who invented the cronut? ♪

>> this is "market makers to erik: you want to be up-to-date on all the top stories and americans were confident about the economy. the university of michigan consumer confidence rose to the highest level in eight years and they are more upbeat about the economy. this could be a boost for david cameron and less than three weeks from the elections in jobless claims fell to the lowest level in four decades.

he is trying to turn a stronger job market into both for his conservative party. this has been the worst week for greek bonds since the election in january. the yield on the greek climbed to the highest since 2012. there is an 80% chance greece will not be able to repay that in five years. hillary clinton is starting to wall street credit to oversee her pain -- campaign finances. she will than gary gensler as her chief financial officer. he is a strong advocate for stricter wall street regulation. that motion help her with those who claim she is to cozy with wall street. hoping to buy an apple watch? be able to walk into the store and get one. the orders will be regulated to

the website until at least june. a new old says america's nature is looking training as an pot. 58% of those polled say recreational marijuana will be legal in all state within 20 years. almost one third say nationwide legalization will never happen in --. that is what larry thanks says about manager of his allocation fund and his job is to retain -- create higher returns everywhere. dennis is here to tell us where he is going and why. guest: thank you for that introduction. erik: it's been a while since we saw each other in person. let's talk about things that interest you most.

where you see the best prospects. guest: there is one outstanding opportunity in the markets today for long-term investors and that's japanese stocks. they offer attractive characteristics that are unmatched anywhere in the world and --. erik: i am looking at a chart that shows me they are up 135% since 2012. is there still a value? stephanie: there is. what you have to understand is earnings are up strongly. if you look in the japanese market and the u.s. market, if you combine 2013 at 2014, the u.s. market was up about 55% but only 15% of that was earnings growth. if you look at the japanese market, it was up 70% and 55% of that was earnings growth. the re-rating was negligible. erik: there is still room for

people to grow a list about japanese stocks and revalue their earnings? guest: japan is at a significant valuation discount to the u.s. market. erik: i've got a couple of things i need to say her in --. there is a good reason why japanese stocks of them going up. that has caused the yen to plummet. maybe i will get some of that stock rice appreciation, but i'm getting crushed on the currency. stephanie: that is why you had to the end. we in the negative on the end. we are little bit agnostic today. we think it's possible that the performance of the japanese economy may start to the strong enough and the attraction of it may be starting to balance yen a

little bit. we would be less hedged today that we have been over the past two at half years. erik: what would it take for you to be unhedged? guest: these are shared completely by the economy will. if we start to see some inflation or some greater weight gain, some stronger nominal gdp or a bump upward in japanese government bond yields, those things would make us even a little less cautious. stephanie: why are you confident about the prospect of japanese earnings? many of the biggest companies in japan generate much of their revenue overseas. they are big exporters. there a problematic demographic aspects to the japanese economy. it may be constrained.

we know the world economy is not exactly on fire. guest: this is not just my forecast and this is a we watching unfold in the marketplace. there are many reasons. the lower yen and what it does for exporter earnings is just one thing. there is an important change going on in japanese risk management. erik: you seen this? guest: we see it. we watch it. it is happening. it's not just the forecast. our forecast is it's going to be much more of it. the japanese corporate management is starting to do the things that u.s. managements have done for the past generation in terms of shareholder value and in terms of making a corporate sources work harder for the common stock owner. erik: japan is going through a 1976 moment? guest: in japan, there is a

realization that are only -- are only -- oeroe matters. erik: you are bullish on japan at relative to the u.s., argue bearish on the u.s.? guest: i think they're better opportunities elsewhere. if you compare across the board, valuations are better in japan. monetary policy is more supportive in japan. corporate governance changes, japan is under owned. u.s. households have 34% of their assets in u.s. stocks. japanese have 9% of their assets in japanese stocks. erik: what about europe? guest: it depends on if you are

looking at local currency returns. erik: i am. you are absolutely right. guest: we are positive on your very europe is much more of a mix. the key difference is first, if you look at the earnings side we are seeing very positive earnings growth. we are not seen the degree of earnings in europe we would like to see. erik: is that because they were somewhat slanted quantitative easing? guest: it has been too expensive for way too long. all you have to do is spend some time traveling in europe. it's a weird combination. erik: he runs the allocation

fund at blackrock and you heard him. he loves japan. they greet out the saudi side when it comes to oil. we will explain why. ♪

>> we have a broad equity selloff with stocks lower for every one that is higher on the new york stock exchange. eric mentioned that we almost gave up our year-to-date loss. that is slipping away. 29 members are lower and only general electric is higher. the dow has lost 270 points. the vix is moving up. it is below its historical average.

in europe you are seeing a big selloff as well. all industry groups are lower. one catalyst for the selloff is chinese regulators. they are banning margin trading. shares are down 4.7%. china shoulders a lot of leverage in the market. there is a lot of men -- leverage in ours. come inside the bloomberg terminal. this is one measure of leverage and the high was in february of 2014. we have not fall off that much since you we get pretty close to matching that record high. we have mentioned that. erik: thanks very much for the

update on a big selloff in the stock market. there are some stories you need to know. honeywell beat estimates. the rebound in construction increased the demand for security systems. they could not keep up the pace forever after showing shares are lower today, but not by much. people can sell their arts and crafts. cirque du soleil is on the verge of being sold. a consortium is close to create a deal. the chinese investment fund is involved and the new owners would expand its global operations. those are the top stories of the moment.

the moment the kronecronut was invented. republicans and obama are teaming up to watch a piece of legislation. all of that is coming up. saudi arabia have a decision to make last fall/oil production or maintain the quota. we know what saudi arabia decided to do. still today is the wind. we have a superb story in the current issue that takes us inside the oil strategy. he is with us from san francisco. we talked before you embark on this reporting effort. we knew then that saudi arabia maintain its quota to undermine the u.s. shale oil industry and maybe it will do so.

you learned something new. >> there's always two sides of this story. there is supply and then demand. what we learned is the saudi's were concerned about demand. after four years of $100 barrel oil is some of the most reliable growth was slipping. that was in china and other countries in asia that were growing in leaps and bounds and allow the saudi's and other opec producers to think about producing oil pretty much before a serious downturn or leveling off. at $100 oil leveling off started to occur much more quickly. about the time that the price of oil started heading down, the

saudi's were noticing that wasn't the case. the peak demand was much more eminent possibly as early as the mid-2000 20's. erik: that is why exactly? they realized at that price some of the renewable technologies are becoming cost competitive? >> it's all about the cost competitive number that you just alluded to. if natural gas is as cost competitive as crude oil or less, you're going to invest in natural gas. it becomes worthwhile when the price of crude was so high for so long. natural gas is a good example.

they saw diesel demand plummeting in china because of natural gas. erik: what is the point of saudi arabia to its weight demand for oil? they've got an economy based on oil and gas. they can bridge to get from here to a post oil world? >> the world is turning against fossil fuels. they realized overtime they are going to find a new way to butter their bread and they want to postpone as long as possible. keep the price lower and keeping the world addicted more strongly as long as possible is priority number one in saudi arabia. erik: peter waldman is with bloomberg markets magazine. you can find a story on

bloomberg.com or the national service. i came up with this truly is a visionary. ♪

erik: he dreamed of becoming a leading pastry chef. the dream came true when he created the cronut. this is one of the great innovators going back to their inspiration. >> and flour and sugar are

combined together it gives you a motion, something you can deal , that you remember. it is everything to see the happiness. that makes me happy. >> good morning. >> my challenge was simple and my father was a factory worker. it was a dream for me to open my own shop. i had a vision for pastry.

i wanted a pastry shop that was not just a wrench pastry. i wanted the pastries and beautiful and creative. doughnuts were such a part of american culture and i thought i would do something with it. i want to do a doughnut and i am french. i don't have a recipe for donuts. i want to find something that is fun to eat. i want to combine similar techniques and textures. i worked in the recipe for three months.

we lost the cronut and someone posted an article. the next day we had people outside and eventually we had 100 people outside. people are dedicated and passionate. they went to experience something different. it's unique and has its own style. it is crunchy pastry that is made with layers that are delicate. i.e. one every day.

i have to for quality control. erik: we will have many more eureka moments all next week. i will be back in just a couple of minutes. this is a we have in store for you. politics really does make for strange bed allows you that's president obama and republicans is or a new trade deal.

>> live from bloomberg headquarters in new york, this is "market makers." >> president is counting on republicans to get an international trade deal asked. hillary brings on one of the financial industry's most strident critics. he is teaching hope and change in italy. there is a news conference with president obama and about five minutes. erik: good morning.

it's friday. stephanie is not going to make it back. matt miller has agreed to join me. matt: the consumer confidence survey is at the second-highest rate in eight years. inflation expectations were down. when it comes to raising interest rates, to that officials are saying taken lowly. the atlanta fed president and raising rates in june is not his reference. the option is off the table. economic data will lead to keep improving before rates would be raised. that reinforces forecast that they will wait until september before they make a move. we have a sense of general

electric will look like in the future. the first quarter profits the estimates. rising sales of power generation equipment help offset the drag from the oilfield business. they lost $11 billion due to sale of most of the assets is financed unit. the ceo says the timing was right. >> this is an excellent time to sell financial assets. this demonstrates that are platforms may be worth more outside the company. matt: able meet their industrial earnings forecast for the year. shares fell today after there was definite -- displaying revenue. the companies under pressure to show how it can recover from setbacks in putting the end of a partnership with costco. the ceo says he expects the earnings to be flat or down.

amex is the worst outperform her. businesses may sign on to a united nations deal this year limiting fossil fuel emissions. the heads of 43 companies have called for swift action on climate change in an open letter. they promise to move their own businesses toward a low carbon economy. forget that stealing the show when richard branson sells a product, he is the show. he re-creates a scene from one of the greatest of his all-time, ferris bueller's day off. he saying twist and shout. i don't know if he actually saying. what a great movie. what a great movie that is.

bueller? bueller? classic. erik: when the greatest movies of all time, we talk about trade. president obama stated -- trade agenda took a step forward. it is breathing new life into trade talks with the pacific rim and your very u.s. companies are celebrating. there are people in the democratic party that may stand in the way. peter cook is here with more. people might have lost sight of what the transpacific partnership is about. let's remind everybody what that state. >> what's at stake is it paves the way and inject new life into these trade talks that are supposedly coming to a close. this is a giant deal for u.s. businesses and for the specific

rim companies. 793 million consumers and 40% of global gdp. the projection is this deal what had $123 million more in u.s. exports per year. it would boost in i $77 billion a year. this is a giant deal. it makes that deal more likely because this trade promotion authority fasttrack means congress has an up or down vote on this remit area they cannot amend or change it to kiss is a huge win for the president and a big win as well for businesses. even service companies who want to do more business in the pacific. erik: let's talk about the political dynamic in these got republican support. it seems as though he's getting the support he needs.

when the democrats? >> that's the big? where is we know there are some democrats who are supporting the notion of giving them fasttrack. we will see how many follow the lead. there are a number of prominent democrats including chuck schumer don't need -- like this. the fact that the present is getting opposition from such prominent members of his party is a major stumbling block. as he prepared to go ahead with largely republican support. this is chuck schumer yesterday. >> are middle class is hurting and the evidence i've seen is that this hurts middle-class incomes and i can't leave for it in that regard. >> this guy is going to be the next leader of democrats in the senate. he is breaking with his president.

if the president gets these trade deals, it will be a huge legacy item for him. is he willing to break with his own party to get it done. matt: why are democrats against this? is it free trade a potential of capitalism? erik: is there evidence to back up what schumer says? the middle class gets hurt by a deal like this? >> the debate is democrats are often marks. history with suggest this raises incomes for americans across the board. jobsite exports are higher-paying in this country than otherwise in there are statistics that others would try to say in the wake of nafta that some people were hurt by those deals.

it's the ghost of nafta that is in the room. this is a different kind of trade deal and they are getting a better deal for americans. the jury is out on that. he has not swayed chuck schumer. erik: who are the other prominent supporters within the democratic party of fast-track authority like this? >> there are several centrist democrats who are strong on free trade. mark warner and michael bennet of colorado. you have to get to 60 in the senate. are there six democrats who will be willing to join the president and republicans on this. it's really good he will get that number. in the house, the people to watch our nancy pelosi ends any lawyer -- steny hoyer. if they go the other direction,

the president has some problems. erik: he doesn't need those democratic colleagues for reelection support. matt: of a higher for hillary clinton may make the elizabeth warren way of the party happy and it's a bloomberg exclusive. erik: welcome to the yearbook aim. here he is. he works in the technology world and he graduated in 1983. i think i reckon ties that be speckled young man. you can tweet us your guesses. remember, you can't just get a name. we want added value. tell us something about this person beyond his name.

scarlet: we are at session lows. the exception is general electric which reported earnings this morning. the vix is moving higher. a lot of people are looking to china as a catalyst for the selloff. after china's market close, they plan down on margin debt. you can see the high is off by 5%. the backdrop is that chinese stocks are among the world's best performers. within the u.s. market, american express is the worst performer in the dow jones industrial today and for the year. the macro environment and the uneven global economy was one reason. you had a failure to renew its

agreements with cosco and jetblue. microdevices take a big spill as well putting pressure on the chip space. the ceo says it's hard to see whether the second half will be substantial to the first half. there is low demand in eastern europe. the overall pc market is a challenge. intel had given indication of this. they lowered estimates and investor expectations so much that when they reported the results, it got a because they had a gain. the oil services company announced lowest profit in four years. revenue is the lotus -- lowest since 2011. they are cutting jobs. they plan to eliminate 11,000 positions.

investors are responding positively to that news. erik: that is scarlet fu. i'm erik chester with matt miller. i'm going to bring you up-to-date with some of the top stories. event want to see inflation and this is what looking for. the cost of living gross for the third month in a row. all that policy murderers don't want to raise interest rates until inflation is running at an annual pace of 2% or people believe inflation is going to hit that level. americans want to keep obamacare the way it is were given a few times. this is according to a new poll. 51% say it may need a few changes, we should continue to let us see how it works. 35% want it repealed. the portion of those two want to do away with it has remained

constant. we promise not to say that people in washington state. a semi trailer carrying these overturned -- bees overturned. those were your top stories. bringing transparency to government, the dental -- digital age will help. target ads in the design to its collection. shoppers in new york can't wait to buy. we are waiting for a press conference with obama and renzi. matt: hillary clinton clinton has made a higher than well please the anti-wall street crowd. sources say he will be the campaign cfo.

phil mattingly broke the news and is with us from washington. >> it is a big deal for one reason. hillary clinton has been battling with the left wing of the democratic party for a long time about her close ties to wall street whether it's through the policies pursued by her husband's administration or the highly paid corporate speeches she has been giving. there is a lot of trepidation about what she will bring to the table when it comes to economic policy. you know gary gensler very well. he was one of the prime -- primary fires pushing dozens of tough rules on the $700 trillion stock market. the willingness for her to bring him on board, this is a significant signal to people and it's a key point. he is not a shrinking violet.

he is somebody will plan the policy and have an important role in the campaign. this means something for hillary clinton. it's a big side of her campaign is trying to do as it ramps up. erik: what does a cfo of a campaign actually do? is it just the title? what might this position be if she's elected president? >> they oversee the financials. he is not the chief fundraiser or the person trying to raise money. he's trying to take a view of what the campaign is doing. he will certainly fill that role. the idea that he would be cap out policymaking decisions everybody that i have talked to says there is a slim chance of that. he is involved in this and has the expertise. treasury secretary is something

he is well if i or and something you'd think he'd be positioning of -- himself or. matt: you talk to people who got hillary into the race in the first place. >> i spent some time with ready or hillary. they wanted to urge her into the campaign. what people don't know about the pac was not to raise money to make as, it was to collect data. they gave me an inside look into how their operation work now that they are closing down. take a look. >> they are posters and they are free. >> free is good. once attached to politics, you know there is a catch. this is political list building. that is how ready for hillary

spent the majority of the $50 million it raised. >> for a candidate or campaign to have access to your inbox means you are going to have that direct communication. any of our e-mail addresses are very valuable. that is your entry point for a campaign. that's what we have been amassing. >> they are the first super pac dedicated to collecting data about you. ready for hillary is now shutting down. it planned to once she got into the race. the group gave bloomberg access to its organization. it built a database of 4 million supporters. through grassroots events digital targeting to websites and free bumper stickers.

it is willing to hand of the address to get it. getting the e-mail is not the end issue. the group uses tools to push supporters to become more involved. they track every step they took it the goal was to hand her a math -- massive list of e-mails orders. recruit friends or donate money. >> the point of this whole innovation is to have available for the candidate the most fresh and enormous complete and colorful list of supporters to the at her disposal. >> every time someone was thinking this, hillary clinton was growing their list.

one of the key things since it's a super pac, they can't just handed them over. lawyers are working on how to transport. how do you value a list that was created just for a single person? there is no precedent for it. there is time before the list is exchange area i asked if they had adult onesies. if we get hold of them, i will get that your way up to new york. matt: i will definitely sleep in it. thanks so much for joining us. for all the days political views, check out number politics. that's a fantastic skew. congratulations to our team on that one. erik: i will make sure that stephanie takes a day off so you can host the show with me. matt: that is one thing i don't

think i will actually do. erik: you will pretty much do anything else or it we return after the short commercial break. ♪

matt: ohio opens up the books. they will let people see what the government is doing with tax

dollars. erik: it's time to play the yearbook game. you need to guess who this man is. not just his name, tell us something about them. he graduated from high school in texas in 1983. he is a technologies executive. ♪

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>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. erik: welcome back on this yearbook friday. stephanie is not back yet. matt miller has stepped in. thank you. matt: we have a subject near and dear to my heart. that is why i decided to join you. erik: transparency? there is a little bit of a selloff underway. the dow is down 250,000 points.

there is also selling action in europe. let's go to scarlet fu for more. scarlet: a lot of volume as well. i am looking at the volume share for europe. the fox 50 index, the volume was 61% of the 10 day average. in the united states it is 25% to 50% above the average. it is an ugly day if you were long on european stocks, or maybe it is a breather, depending on how you are positioned. all 19 groups were lowered. you can see the dax is off by 2.7%. a lot of them are stressed over the fate of greece. let's look at how the greek assets will close out. the greek bonds are headed for the worst week since january. you conceive the yield on the 10 year. the euro is stronger, up by 2/10

of 1%. we got u.s. stated that showed core inflation. that is the measure with federal reserve keeps an eye on. it is up compared to a year ago. when you look at asia what is interesting is a lot of green when it comes to the shanghai. after the chinese market closed, regulators claim to down on margin lending. that is sending stock futures lower. we saw that on the etf that attracts chinese stocks of falling in u.s. trading. there is concern about what happens to the rally in chinese stocks. whether government officials are pushing for it to continue or if this is letting air out of the bubble. matt: the government is not the usual silicon valley customer. but the start of open gov is

changing that. they're partnering on a program allowing citizens to see every expenditure in the state government searchable online database. is this kind of transparency a sign of things to come? zach bookman and josh mandel. is this a good idea? i know i occur strange expenses sometimes working on stories that need to be explains in a nuanced way. won't taxpayers develop more questions when they see all of the expenses broken down? >> i think is a good thing. it comes down to the basic premise. the people of ohio and our country has a right to know how the money is being expand. -- is being spent.

i am empowering citizens. i'm empowering them to hold politicians accountable. erik: could you explain what it does? >> it is the platform that governments use for transparency and analysis. if you're running a government, the platform allows you to see where the money goes across a complicated enterprise and to share that natively citizens of the world. erik: josh, what you hope ohio citizens will do with this information? josh mandel: i hope it gives citizens the tool to smoke out abuse. imagine a lady on her kitchen at her computer or at work having the power. $400 billion at your fingertips of state spending that she can search and navigate. she can see everything from two dollars for a pack of

pencils to millions of dollars for a road expenditure, and everything in between. it will make your cats" -- it will make up your cats think twice before -- it will make e beaurocrats think twice before wasting taxpayer money. matt: we seem to be fairly efficient, i am from ohio, as far as spending taxpayer money. josh mandel: we had a lady on the pension board if years ago that was adamant the only place she could get her continuing education was at a conference in hawaii. we said maybe there is a conference in cincinnati or somewhere closer. this is taxpayer money. by putting this information online mx public officials and twice before going to the conference in a way before the one in cincinnati. or thinking twice before they stay the ritz carlton instead of

the holiday inn. that's a good thing. have you had any discussions with the city of new york about doing the same thing? zac bookman: we have had a few. we are not working with new york, but we're working with 300 counties governments, and districts in 37 states. if he went to new haven connecticut you and be able to see their entire budget and financial picture to drill down with the money is going. for snow removal, for instance. erik: in those conversations with cities that have chosen not to work with opengov what concerns do officials usually raised to the notion that there is something wrong with transparency? zac bookman: it is usually a nurse shark. there's a lot of things going on. the officials are busy. -- it is usually a -- it

is usually inertia. there's a lot of things going on. the officials are busy. i think we are seeing a lot of demand from all over the country. from miami pittsburgh minneapolis, all the way to small towns in wyoming. matt: obviously, in places where the officials are the most corrupt you will not get this through. what about the citizens of those cities? zac bookman: we are saying a whole trend toward financial transparency. it is not just transparency. the tools that opengov and others can offer can be useful in the work that senior executives and elected officials are doing. they need to understand the budget and where the money goes. they need good tools to do their job. there's a lot of reporting and

analysis that can take place. erik: briefly, you are hoping that this empowers if you will, civic participation. does it save ohio money? josh mandel: it will over time. when we built a ohiobook.com i had a vision of citizen watchdogs holding officials accountable. i think now they are noticing people are watching. the government will be limited in size and scope. as i mentioned earlier, the officials if they are elected politicians or bureaucrats they will think twice before wasting money. by virtue of this information online it will make the government smaller and more efficient. matt: thank you for joining us. fascinating. a fascinating company and story. what a great state, ohio, i am

so proud. erik: coming up president obama meets with the italian prime minister. we will take you there when it happens. ♪

matt: target is rolling out its latest collaboration. fans get a preview yesterday in new york's bryant park. julie hyman is here to talk about the strategy behind the collections. >> i guess i'm not paying enough attention. the idea behind the collection and the collaborations is basically to bring excitement and interest in the brand. the company and analysts say that this is not going to be material it won't be a huge bump

to the sales. hopefully, and make it people through the door that have not been to target in years and get them interested in the fashion. maybe they will buy other stuff when they are in reintroducing them to target. it is also across different product lines. there is clothing. home goods. beach towels. iphone cases. there is a broad range of items. a lifestyle collection. erik: is it cheap? like you usually buy at target? >> inexpensive. it is not a high price point. lilly pulitzer usually retail around $2000. the target of will be below $75 at most. some of them are closer to the $30 or $40 range. erik: have you had an

opportunity to evaluate the target version? >> yesterday they had backs that are good marketing toward as people walk around new york city. i grabbed a wrap. it is $20. if you want to feel it. erik: it is synthetic. matt: i don't know. do you see any really good lilly pulitzer stuff. >> i thought they were really cute. i browsed the look book. they only have ladies and children's clothing. they have little grow clothing. the idea is that people can buy things at lower prices. they have done these before. they have done edgy designers. erik: that raises the question does target draw the preppy type who would even think of shopping

-- >> judging from the 500 or 600 people in line yesterday, there will be a demand. when you look at the collaborations at people like zach pozen these are things that could potentially be more accessible in terms of fashion. it is not as energy. analysts told me with other collections they had to eventually mark them down as it was too quirky with a broad audience. this stuff is colorful, springtime. there is optimism this collection will do well. a lot of stuff is already on ebay. a lot of people turned around and put it on ebay. matt: i many guess that target has a decent amount of well-off soccer mom customers that will love lilly pulitzer. erik: will the teenage protesters where the target lilly pulitzer or away the

original? matt: that is different. it is a very small niche. erik: it is friday. it is time to play the yearbook game. he is a technology executive. he graduated from memorial high school in texas in 1983. look at those classes. who is he? you can tweet your guesses @mattmiller1973. or @marketmakers. matt: it is not george for stanza. it is texas. ♪

erik: this is our yearbook game.

it is friday. we have been showing you this young gentleman. he graduated from memorial high school in texas in 1983. he is a technology executive. i hate to disappoint people who thought it was george to -- george ca -- george costanza. we have a winner. we are looking for added value. we are not looking just for the name michael dell. let's share the winning tweet. where is it? we don't have one. matt: carol massar says he thinks -- she thinks he hasn't changed much. i feel that if the michael dell i know, which by the way i don't think he looks like either of these people we have photos of. he is much more good-looking and in shape. erik: i will give a shout out.

our producers like humor. michael dell sold personal computers out of his dorm. a noteworthy achievement. back then it probably one you a lot of friends. not anymore. i'll think that's cool anymore. erik: you want to be more like 10 griffins and sell derivatives out of your dorm. matt: or cell phones and laptops. erik: president obama and matteo renzi will be holding a news conference in minutes. we are awaiting those two leaders who will be answering questions. very important when we have so much to ask. let's take you to eat or cook. what is on the agenda? -- peter cook, what is on the agenda?

peter: they have met before. we know that what is happening in the global economy will,. other issues include iraq, liberty, an issue with people leaving the fighting in libya and going to italy. that has been an issue that has come up. a range of topics. i would not be surprised if greece came up. the first opportunity for the president to respond on camera to the trade deal that was released in congress. erik: they may also talk about greece how italy feels about the negotiations in greece and the european creditors. i hope that renzi isn't coming to get advice on how to break government gridlock. that would not go far. but we have more from obama? peter: i would look for the

trade deal in congress and iran. erik: peter cook on the case as president obama and italian prime minister matteo renzi prepared to hold a conference. we'll take you to washington as soon as that starts. we will be right back. ♪

scarlet: we have breaking news. a major creditor is looking for

scenarios that would prevent grease from leaving the eurozone. this is according to people familiar with the matter. they say that chancellor merkel of germany will go a long way to preventing a greek exit. every possibility is being considered to pull greece back from the brink and keep it in the 19 nation euro zone. there's a lot of foot dragging. the conversations continue. the red line is that the government shows a readiness to commit to some of the economic reform measures. this is according to people familiar with the matter that the creditors including germany and the imf do not want greece to leave the eurozone. i'm looking at the 10 year yield that have come down a little. they remain elevated at 12.897%. there will not be a lot of trading volume on greek tenures

with europe closed for the day but you are seeing a little bit of a move on the headlines. greece's creditors are looking for scenarios that would prevent them from leaving the eurozone. the euro is also holding to where it was. 10776. let's get back to the markets where we look at the trading day. i want to get into the options hit with mark sebastian. you can see the dow industrials off by 247 points. marrying a drop in europe. mark, what do you contribute the weakness to in u.s. stocks? mark: i feel like if we talk about greece every 90 days, if we don't something breaks in the market. it is a mandatory flashpoint.

the greeks will not exit. this is probably a one-off. it will weaken into the close. the s&p is down 30. up 14.1 5% is not very high. it is not pricing at panic. i do not see this being an extended selloff. we see a little turbulence. i do not see this turning into a huge correction. scarlet: investors for looking for a big move after a couple of days of tepid movement. are you surprised it went down? mark: after we saw enough -- after we saw high early in the week i thought we would get higher. i still would not be shocked if we settle over the weekend we could easily come back above 2100. through that 2117 all-time high week. if we are going to see a handle

during april, i think going into middle may we could see federal reserve talks heat up even though nothing will happen in june or september. scarlet: thank you. i appreciate you joining us. mark sebastian founder of option pit joining us today for the options insider. we will send it back to you for breaking news. erik: we are expecting a news conference with president obama and the italian prime minister to start at any minute. you have to wonder if the president and mr. renzi did not talk about the willingness of the europeans to effectively give greece more rope. to allow alexis tsipras to show that he is willing to take steps to reform greece. the open question is if greece can default and stay in the eurozone.

matt: i don't think they would let it go that far. i think the germans, as strict as they are, are concerned about the fallout from a default. in my mind, the question is how will they bring greece -- allow it to go to the brink in a way that they get someone in power that they can deal with. the problem with power -- is that he is not doing the work necessary to stay in the eurozone. it is not so much about the agreements as it is about doing the homework and handing it in on time. apparently the track record has not been great. erik: he told brendan that as far as he is concerned, he is a powerful man inside germany. which is the most powerful country