the british traitor blamed for helping to cause the flash crash is fighting his exposition -- expedition to america. stephanie: the man corning the term talks about leaving the eurozone. eric: you will meet the scientist whose experiment led to a sick eye surgery -- that led to eye surgery. good morning. i'm erik schatzker. stephanie: i'm stephanie ruhle. i did need glasses because i'm getting old. eric: some good news out of the housing market. it looks like we might have some this morning. i was looking to see whether existing home sales would climb back from that elusive 5 million a month number, and they have. scarlet: you're right. an increase to 5.1 9 million.

a lot better than what economists are looking for. a 3.1% advance. the all-important spring buying. we arty have increases for pending home sales. existing home sales are lagging behind. we were down slightly. a little bit of an uptick following latest home cell numbers. not changing all that much. still changing when it comes to the dx why. very quickly here, let's pull up the 10 year yields. it is yielding at session high.

the eu says they may have pose unfair prices by -- from some european countries to others. it expects there to be a solution with the help of the russian government. here is what comcast plans to do in today passes crucial meeting with the justice department on their merger with time warner cable. i do not have this right. listen now and make an offer later. people familiar say lawyers will listen to the deal. government antitrust lawyers are expected to emerge and arguing

the deal would mean fewer choices for consumers. marissa mayer knows how to get investors excited. the yahoo! ceo exploring options for the company's stake which could signal a sale. yahoo! stake in yahoo! japan salyers 8 billion. earlier first-quarter revenue fell 4%. video streaming for yahoo!. >> increased -- caused our average number to grow. in total, worldwide video streams almost doubled up 89%. stephanie: shares have tripled since marissa mayer took over in 2012.

promising to unveil the latest turnaround plan as early as next month according to the new ceo. the role's's largest restaurant chain needs help. u.s. sales fell for the sixth straight quarter and global sales fell as well. investors are apparently feeling optimistic about the turnaround plan. shares are up today. president obama normally chooses -- accuses republicans a plain politics and now he is doing the same thing with democrats on the trade deal. the president says democrats have been wrong and misleading. one of those critics is senator elizabeth warren. president obama: i love elizabeth but she is wrong on this. when you hear folks make a lot of suggestions about how bad the

trade deal is, when you dig into the facts, they are wrong. stephanie: some democrats say the new trade deal would hurt workers and depress wages. the president says it includes some of the toughest safety provisions in the history of the united states trade deal. french police have ordered a potential terrorist attack on churches p or france's interior minister says police arrested a 24-year-old man and found weapons, ammunition, and software. the attack was planned for this past sunday. france has been on hilar since the terrorist attacks at charlie hebdo in january. soldiers and police have been patrolling for parcel death for possible targets. eric: coca-cola reported profit

beating analysts estimates by the widest margin and four quarters. the ceo called 2015 a transition year and he is grappling with america's sugary drinks. how much does it say about coke that they had revenue growth of 1% but if you put it in context, it is against declining revenue for more than two years. >> that is a good way of thinking about it. revenue growth, really the engine that will drive their algorithm. people are watching the metric closely. it is nice revenues were higher for when you think about that, a lot of it was because of the rollout of higher unit pricing. for long-term investors, coca-cola is a little less promotional in the u.s. for carbonated soft drinks.

you want to see sustainable volume growth. price increases can be elusive over time but volume growth -- it is kind of week i think that 1% lime growth also a plus 2%, modest p or nothing to write home about. they benefited from an early easter by an. also six extra shipping days and plus lower gas prices. you would assume there are more purchases. i think 1% is a little disappointing. stephanie: why are we seeing emergency -- emerging markets? >> well, you know it is tied to macroeconomic trends. brazil seems to be mired in restrained spending.

mexico had an excise tax increase last year, which is hurting the carbonated soft drink business. they are a big market for coke. they're not getting the emerging markets they would like to get and what investors had expected a little while ago. >> this has been pretty much dead money for years. what does he need to do to supercharge earnings growth and restore the confidence of his investors? >> that is a good question. i believe in is to be bolder with acquisitions. it has gotten an equity stake in monster beverages to strong growth stories. but the equity income line is not exciting investors as much as it would for owning all the sales. i'm saying acquisitions are a

key role for the stories and companies need to be more aggressive. eric: anything in the portfolio they should get rid of? quite fit is a pretty focused company, for better or worse. the conundrum coca-cola has is akin to cigarette companies. when you start diversifying away from an inherently high-margin coke has 61% margins and a lot of companies can say that. because of the efficiencies and the serbs going in them are so attractive, the more you diversify away from it, you're kind of reducing the inherent profitability of the firm at the gain of some growth. .: a crazy question before we wrap up. do you think we will see coke moving in the direction of aaa and mcdonald's may be

responding to the things consumers do not like? they are turning off growth hormones in the food they eat it with a turnoff high fructose corn syrup in the drinks they drank? >> coke is looking at a balanced portfolio approach. trying to diversify away from high sugar drinks. some of the consumer backlash and concerns about that. at the same time, a loyal group of consumers do like that beverage. >> they could put sugar in that and make it tastier, in my opinion. >> they are trying sweeteners like cane sugar. as you know, they had died drinks for a while here at consumers are rejecting some of those ingredients, aspartame and so on. it is a balanced approach. investment in coconut water.

a plant-based protein trick in china, doing the best they can to diversify. eric: we thank you. a tough job for coca-cola. stephanie: breaking news for you out of london. accuse of helping to figure the crash, scarlet fu at our news desk for what -- with more. scarlet: the vendor's 36 years old, conditional bail. we do not know the amount yet. this is the only headline we have to work with this -- right here. in may of 2010, the dow jones industrial average and other index is plunged. losing 1000 points over the course of a couple of seconds that afternoon before recovering just as quickly. he said he will fight efforts to expedite him to face the charges

in the u.s. we will keep you posted on any new developments including the dollar amount on the bail he has been granted. stephanie: we have got to take a break. when we return, more on the man u.s. regulators say helped cause the crash. we will take you to london. eric: you could call the scientists a real visionary. he made eye surgery possible. ♪

eric: breaking news on the 36-year-old day trader in britain who u.s. prosecutors say helped trigger the 2010 flash crash. they'll will be set at $7.5 billion. they named a new culprit here this man behind the flash crash. you remember hearing -- this man

also involved. prosecutors say he is responsible for one every five orders in that meltdown that saw the doubt drop thousand points in minutes. a fascinating story. let's bring in ryan outside in london. he is now ceo of convergence. tell me what you are hearing on the ground. what do people know about the man who ran a manipulative operation in the shadow of the planes at the airport? >> that is right. that is what the neighborhood is best known for another plane

went overhead, which is very working-class neighborhood. one of their own could have made $40 million in a five-year time for trading. we talked to a good indian family. the one i'm sitting next to her the one the parents lived and where he was arrested yesterday. people say he pretty much kept to himself and i spoke with a taxi driver he while ago who says he last gave a list to a software company about 20 minutes from here, three years ago. they do not know much about what he's up to now, but they're very surprised with these allegations the u.s. is making that actually he was a day trader

manipulative u.s. market and played a huge role in the flash crash. eric: you witnessed this stuff happening. this loan gentlemen i will not call him a rogue because he was not working for anybody. working for himself. because -- >> because he was essentially a look -- lone wolf so finding out about it now is quite interesting five years after the fact. eric: but what does it say about the integrity of the u.s. equity

market that this guy, who is now 36, and clearly was a few years younger in may of 2010 when the flash crash took ways, that somebody, acting alone without much of a sophisticated background in trading for many of the well-known firms could cause is kind of disruption. it raises questions about who might be doing it today. eric n: those are legitimate questions. how was someone like this able to do these things in the market? i want to make a couple of points around that. this was not the equity markets even though the equity market experienced the flash crash. this incident ended up driving equity prices. they also learn a lot coming out of the flash crash and put a lot of safeguards in place to prevent these kinds of behaviors. new market wide circuit breakers up and down an individual securities. pretrade market rules for market

participants to prevent the rogues from the market. a lot of lessons were learned coming out of the flash crash have been put into place now as we go forward. stephanie: explain to us what he did. >> spoofing, which became illegal in dodd-frank was crashed -- passed in 2010. any given security -- regulators and criminal prosecutors can give it a form of market manipulation. it is only the second criminal case with charges that we have had since dodd-frank was passed. we had michael, on six spoofing charges. one of the interesting things

why did it take them five years to figure this out. trading up to a year ago. those are the questions of the regulators and future exchanges how did all the volume keep slowing through even after safeguarding? eric n: i am not sure in the specific instances of this, i look forward to looking at them. the industry is trying to resolve for itself back to regulators. legitimate questions to answer here as to how the single person has access to the marketplace.

eric: on the one hand, we want to give credit. on the other hand, even before it becomes a criminal case, they oversee the market. what room do they have to step in? >> a market structure and then criminal prosecutors have to go through a technical high bar. obviously, prosecutors cannot regulate the market or be responsible for market structure. eric: should the cme itself -- i am not familiar enough with the structure of the futures market. i know more about -- if there is

a self-regulatory policing role to play here? eric n: the cne take responsibility for associations for the future side of the business. i do not have enough facts to make a judgment or no what they were doing or examining this or really whether this gem in's activity rises to the level of criminal activity. eric: even if it does not come it is a confidence issue. we have been wrestling this ever since the flash crash and ever since the meltdown in u.s. equity markets in the wake of the financial crisis. look at the trading volumes. they are coming back but it is taking years. people are afraid. when they open up the newspaper or listen to our conversation they ask themselves if this guy could mess with the equity market industry and was allowed to continue trading until i think it was april of last year

what business do i have in the market? eric n: going back to the changes in lessons we learned it is a complex market and we know that. it is electronically linked to one another and there is fragmentation and a lot of concerns we are trying hard to dress as an industry. real reform has taken place and real changes have taken place. to the earlier point about people being scared for the equity market, since the financial crisis of 2000 8009, equities have had a nice return. eric: and a lot of people were afraid to trade. they missed out on that. eric n: i think if you look at the history of what happened here, equity markets work well. there are changes and reforms and necessary things but i think the markets generally work well for liquidity.

>> i wanted to say is one thing that is remarkable we know now from u.s. prosecutors, it is important what we have not heard from himself is the cme did contact him at least twice in march of 2010 and then may 6 2010, the day of the crash, to say it like your trading is not actually getting executed. these orders you are making. it is important what you do be bona fide trade. we also know from prosecutors that he told a friend, his broker, that he called cme to tell them to kiss my you know what. one thing as a reporter to think about it looks like there were

two near catches that did not lead to anything. he was maybe operating in a brazen way, i have to see what happens if this ever goes to trial. it deftly gets you thinking. stephanie: this case could easily go to trial but the big issue is how they get to this point. i think that we would have to go back to looking at this as a market structure. as mentioned earlier, is the market too complex? eric: it is how you stop them from doing it in the first place. >> right. there is a flash crash and summon people get hurt in the market and so many people lose money. eric: that is precisely what happened. our own keri geiger and in london, outside the house. stephanie: it looks like the most exciting thing that ever happened in the neighborhood ever.

besides that, this is big for them. eric: and eric noll, we thank you as well. the men who coined a term with us in a moment. ♪

>> live, this is market makers with erik chester and stephanie ruhle. eric: breaking news on crude oil inventories. a big market mover, scarlet fu with the headlines. scarlet: the expected increase was a bill of 2.96 arrows. a lot more supplies being added last week to stockpiles overall the united states than was anticipated.

there has not been a decline since the first week of january. supply continues to increase. if you look at how futures are responding, here is the chart. crude, pretty much stuck at that level. we were down before this and we continue to build right here and now, positive by about $.15, and the longer-term story when it comes to oil is one of collapse. you look at how it has been done, it is one steady drop lower. we have bottomed out and stabilized but the question is is it going back down again? what about production? has that been reduced enough for all prices? >> we'll be speaking in one week and i pumped. scarlet fu, thanks. there have been reports all week long that european officials are

losing patience with the greek government. it still needs to submit an economic reform plan before getting access to new round of bailout funds. the greek finance minister today said the difference between a two sides are narrowing. he says the best deal will probably leave everyone satisfied. i want to ask the man who actually coined the term abraham, the director of european and global economics and just moved to nyc. abraham, welcome. abraham: nice to be here. stephanie: you're the guy who came up with it. is it the theme and should we continue to focus on it? abraham: i think the chances are not receding by any means but at the same time, it is a little misleading to characterize the choice or the outlook for greece right now in binary terms. there are many great scenarios right now and i do not think

there is a chance we will have a resolution one way or another in the next couple of days or weeks. the bar is being continually raised, as we speak. the economy is tanking, which makes it harder to meet fiscal targets. this will essentially ricochet for various more weeks and then we will run into a bigger issue of help reis can fund itself for the next couple of years. eric: don't you have problems here? the greek government does not appear to be taking demands for reform quite seriously enough. on the other hand, you have the question as to whether patients among the germans and the spanish, and others, will run out. if both of those things continue to happen -- i'm not tried to put it in

binary terms, but if none of those factors change, we will end up closer if not in one. ses they're running out of patience and the greeks are running out of money. but there are other scenarios. you can see a greek default without an from the eurozone as well. i think those scenarios are come -- become increasingly threatening. >> quickly on the subject of default, are mechanisms in place to allow for a greek default without an exit? i do not know the terms. u.k. law that governs the new bonds. abraham: some of the bonds. there are potentially interdependencies.

eric: imf would let greece default? a bram: there really are not -- to the private sector. a lot will come down to the ecb. what will they do it greek debt if greece defaults? that is a key question. >> he said then we will have to focus on the bigger issue. besides academics and politicians and greece, let's talk about the market. does anyone actually care? do investors care what happens in three or six months or two years, or is everything just a short-term trade? if it is, what does that mean for greece? >> i think markets have started to care. we have seen markets starting to price in at least the uncertainty and probability.

uncertainty is what holds investors off, not necessarily a bad resolution. it makes a great deal to greece about how this on the private sector and not just the economy. that is being held up as we speak. eric: you have got a new term and what do you mean by it? abraham: it is a shorthand for those scenarios where greece is not going to get money from europeans and there is no resolution, but you run into -- greece, potentially with capital controls, perhaps even with a default, remains in the eurozone. eric: let's the back to the markets question. does this constitute -- it is not a black swan and not invisible and's not something nobody is ever seen before. but is it a risk? what would you classify it now?

abraham: i do not see it being the catalyst for a major financial crisis in europe. even if greece did exit or we granted a scenario, that is certainly the implication for the rest of euro -- the euro, but we have methods. why slide wouldn't it be a cataclysmic event? we were here two years ago or three were -- three years ago? it occupied the entire financial market. we sat here covering it for hours on end. why was it significant leap bigger than for the global economy and now, it would not be? abraham: i think it still would be a big event, but not a driver of what we would have seen back then. the reason the bank is in a somewhat better shape and the economy is in a better shape the ecb is more active -- more active, those that can potentially help our country so the banks that are in trouble. eric: thank you, abraham.

abraham works with citigroup. great to have them here. stephanie: new to nyc p or when we return, our education reformers leaving the work? one of the most prominent advocates out there and an extraordinary man. he will be there right after the break. ♪

eric: comcast and time warner cable -- the merger of the largest cable companies would mean fewer choices for consumers.

sales rose more than 6% a median forecast of the merger. president obama celebrated his birthday by going to florida. the present will use the everglades. he will also call out republicans and derail it. florida passes most prominent republicans, a consensus on climate change. among them, presidential hopefuls jeb bush and marco rubio. stephanie: you may remember the present of the charter school for the 2010 documentary "waiting for superman. >> kids getting stupider every year, or something is wrong in education system. >> most republican candidates

have a speaking out against common core standards and in favor of charter schools p or take a look at some of these issues with the one and only jeffrey. welcome. you left out a year ago. time to take a step back. when you think we are in terms of the american public school system today? jeffrey: this is troubling. i have seen a sense that common core is bad. setting standards that everybody has to now say, these are the minimum standards. i have enough problems with my democratic friends, with the unions.

it was something, i will tell you for me, as you all know for quite some time, this is something we cannot let up on. i've said to people there is a longing for the good old days. let's go back to the days where everybody could set their own standards. even if they cannot read and write. these are the teachers unions. the folks trying to get away from national standards, we are setting benchmarks that determine what it really means to have quality education in the country. we have got to take all of this stuff on and we have got an uphill batter -- uphill battle. eric: parents play an important role in public education. we see them quoted in bleeding heart stories, my son could not pass the test and he spent many hours. it is not that i'm not empathetic to the trouble's

family had, but if the country does not have a high standard, these poor kids are going to get left behind, not to borrow a phrase from 2001, but they will. jeffrey: this is more insidious for this reason. this is what i said to president obama and secretary duncan. core will not be turned back by poor parents and harlem and brooklyn. it will be parents in long island who their schools are also struggling and having trouble. part of the debate has been focused on a tiny slice of the population. stephanie: don't people want their children to have the best education possible to go on and lead successful lives? why lie to themselves? jeffrey: the unions have the ability to communicate with parents every single day and

they are telling them this stuff is bad. your kid is stressed out p or the tests do not matter and do not mean anything. parents are saying, you are telling me if i do not take the test my kid will do better? they're saying yes. outside of governor cuomo, we have not seen people push back against something lately false. stephanie: our unions stronger today than ever question mark jeffrey: i think they have got some wind. this is a real challenge because the other thing going on is they masterfully crafted a new dialogue which is, rich hedge fund folks are out to privatize education and they are yelling for education reform and real people synthetic to poor folks do not care. >> in that movie, the clip of which we played at the outset, teachers unions were effectively public enemy number one.

>> they came up with a brilliant counter, that we are anti-teacher. and they sold this over and over again. that is why they are saying which get rid of lousy teachers p or we were not organized enough to counter the narrative and it is now part of the narrative and it has to do with education reform in general. stephanie: is the movement losing steam and will it get the attention it needs in the presidential campaign? we know what you want. jeffrey: some of these folks are my friends on both sides of erp or i consider chris christie a friend. i am going to be out in salt lake city talking with republicans about this. stephanie: i know that you are but i am asking you there? jeffrey: people do not want to

hear the bad news and this is bad news. it is not just these poor kids in harlem. it is your kids also that are in trouble. it also is saying you know what come i do not want to hear that. i want to go back to the belief that everything is fine and that is really dangerous in this country. we have been outmaneuvered. it does not mean to me this will continue. there is a group of us saying right now, we cannot lose the battle. country is at stake. stephanie: jeff is being honored by the harlem children's p or dextran or a guy. i would say best alumni they ever had. we will be back. ♪

lasik eye surgery uses lasers, a technique possible -- he is the

latest the subject of our eureka series, the most important innovations through the eyes of innovators. >> i eat -- i use magnifying glass as a youngster. i would go after insects like bees and wasps, sneak up on them, and fry their wings. i knew that light had power. my name is jim and i am an expert in laser science and technology.

after getting my phd in applied physics at harvard, i have been working for ibm research ever since. the laser is a source of light, but the light is coming out in a weld defined -- a well-defined direction. by the late 70's, these new lasers became commercially available. i had the good judgment or wisdom or foresight to buy one for my group. i incurred the people in my group to think about using their lasers because it has very high power, good and short pulses and they work very well in the ultraviolet -- ultraviolet region.

when he shined on a piece of plastic each would take off a new amount of material. we started talking about, would we be able to use this in a surgical application we now had to test it out the breakthrough was three leftover thanksgiving turkey, and he made a clean incision and cartledge in the bone left over thanksgiving turkey. i saw the incision made by the laser, and that is what i called my hot moment. -- aha moment.

it was conceivable we had a new form of surgery. an optimal knowledge is from columbia university medical center came here to the research center with some calf eyes and with our laser we made clean incisions with the cornea and the -- they were ultra clean. no evidence of damage. ♪ in lay sick, you more or less have provision by the next day. i'm proud of the fact that something that started off as a fun experiment tend to do

something that could help so many millions of people. science is an endless frontier. engineering is an endless frontier. you put those two together and going the right direction, and you can make magical things happen. stephanie: i am afraid of lasik surgery. erik: i know people who say lasik is the best thing that ever happened to them. stephanie: you are the best thing that ever happened to me. my eyes are going because i'm getting old. there you go. amazing. erik: "market makers" is coming back to you after a short break. you know how they say politics makes strange bedfellows. boy does it ever. paul ryan, he and president obama agree when it comes to trade on what to do. ♪

. .

is "market makers" with erik shatzker and stephanie ruhle. stephanie: comcast on a rescue mission -- the company is going to the justice department to try to save the $45 billion merger with time warner cable. erik: strange days on capitol hill -- congress one paul ryan tells us how president obama got it right at least when it comes to trade. stephanie: will facebook keep growing its mobile business? one prominent tech investor tells us what mark zuckerberg should do next. welcome to the second hour of "market makers."

erik: we haven't seen home sales like this for a year and half. sales of previously owned homes rose to the highest level since september of 2013, 5.2 million homes was well above the median forecast. prices rose by the most in more than year. shares of mcdonald's are up by as much as 4% this morning. the ceo has promised to give details of his turnaround next month. the chain missed profit estimates. the british trader accused of playing a role in the 2010 flash crash has been released on bail. navinder singh sarao was ordered to live at his parents house and cannot use the internet or a phone with internet access. he's charged with sending the dow jones industrials on a wild ride in 2010. prosecutors say used an illegal

method to artificially move prices. u.s. officials want him extradited to face charges in america. and the trust regulators have gas prominent their sites. the russian company may have imposed unfair prices by preventing gas from flowing from certain european countries. >> at this stage, all roads are open. full's -- first, and that is very important, we would like gazprom to come to the eso, but we would like to get in touch with the people responsible. erik: gazprom expects it will be a solution with the help of the russian government. apple is ramping up its lobbying efforts in washington -- the amount they spent on lobbying rose 15%. apple lobbyists are focused on

mobile payments and consumer privacy. but that costs are just a fraction of google's -- google spent more than $5 million on lobbying in the last quarter. stephanie: a london court granted bail to a british trader accused of playing a role in the 2010 flash crash. suzy ring was inside the courtroom and joins us now. what was the feeling in the room? reporter: it has been a really strange day. he's in his sweatpants -- he's not allowed to have any access to the internet. he's not allowed to have a phone with connection to the internet. a really strange case.

stephanie: a strange case because of what prosecutors allege? suzi: he's an incredibly young guy, and his 30's, but he looks a lot younger than he is. he looks like a guy you -- he lives with his parents in a suburb in london, yet he's a multimillionaire. he's made 28 million pounds in gains in the past year and was a significant contributor to the flash crash, but it seems to be unawares when you see him. stephanie: the absurdity of it all. thank you so much for joining us. if you think about it, where are the regulators? here is a guy wearing a sweaty t-shirt in his mom and dads basement, how is he hacking? don't hate the player, fix the

game. sweatpants? erik: comcast and time warner cable are meeting with the justice department today. they want to merge in a $45 billion deal and they are trying to save it from going south. there is a new hitch today -- six senators led by elizabeth warren have asked to stop the deal, saying the merger would mean fewer choices for consumers. peter cook is at the justice department this morning. what specifically do we understand the justice department is most concerned about? peter: the justice department is concerned about the sheer size of this combination. the big issue has been broadband subscribers, the combined companies have 57% of the broadband market nationally and that has been a big issue from the start. it's a big issue for those senators who have expressed their writers -- have expressed their reservations from the

start. if there is any issue, it has to be that when there. that's at the top of the agenda for the team meeting with the comcast folks. erik: i understand mainly from our reporting here at bloomberg that the senators themselves and people in the justice department are concerned about how comcast may conduct itself should the justice department put conditions on the merger. in other words they don't know whether they can trust comcast to live up to its promises. peter: they have history to judge that on. you have the nbc universal combinations and the conditions comcast had to abide by. comcast believes it has honored those conditions. there are some who raise questions about whether comcast has truly done that and if that is the track record, that is the judgment call the justice department will have to make.

stephanie: we know what the official terms are, but among staffers, what is the vibe? peter: the vibe has been since we first reported on friday, that part of the antitrust team is thinking about recommending justice block this transaction. it's up to comcast to try to convince the justice department why this deal should move forward and the obligation is on comcast. the deal when it was first announced many thought there would not be huge problems because there wasn't overlap on the cable side of the business. now it seems to be on the rocks and it is up to comcast, pretty clearly to try to satisfy the justice department and fcc that this can be computed in a way -- completed in a way that is competitive and in the public interest. erik: this would be the biggest deal since what to be blocked if the doj goes ahead?

peter: they tried to block the american airlines-u.s. airways combination and that ultimately got resolved. the anheuser-busch deal was ultimately resolved as well. this would be a big fish for the justice department, a big effort on their part. it would send a message not just to the media world but the rest of corporate america that this justice department and the final few months of the obama administration is on the watch and deals people stop might go through might have a tougher time. stephanie: how about the lobbying power of organizations this big? those are major companies with major lobbying efforts who in the end one. don't we think the power of comcast and time warner cable is pretty extra great? -- is pretty extraordinary? peter: they have made a lot of friends on both sides of the aisle. comcast has a lot of lobbying

power and they would make the case they have done a lot of good things for a variety of districts and states around the country in providing entertainment to a lot of taxpayers and constituents and they are going to use that influence to the extent they can. they believe they have a solid case to make and if their influence can make that happen, they are going to try to make it happen. there is no doubt comcast is a big player in washington and the fact they are in this kind of trouble sends a message as well. erik: peter cook is at the justice department where representatives of time warner cable and comcast are meeting with doj lawyers today. alex sherman is also here. alex has been covering this story. but try to put this in perspective. would it be a bigger deal if antitrust lawyers were to block this transaction from going

through than it was when a block at&t from buying t-mobile? alex: it would be a much bigger surprise and have much bigger ramifications in the sense that it would expand the theoretical criteria doj looks at when it blocks a deal. at&t and t-mobile are direct competitors. at&t would be taking out a large competitor any market that only has four players stopped comcast and time warner cable do not compete against each other. from a simple this is how you block deals people who are family or with the stuff from business school, there's an index you look at and say this company has too much market power. that's not the same here. you are replacing your time warner cable systems with comcast systems. stephanie: people who like to look at this from the outside would say too big, too much power.

walk us through how that is not the case. alex: if you live in new york city, you can get t-mobile sprint, verizon or at&t for your wireless carriers. if one of those four were taken out by another one of those, you only have three choices, so that restricts competitive pricing power. if you live in manhattan, you have one choice for your cable provider. it is time warner cable. in the new world, you would have comcast. that's it. there's no less of a competitor just a different provider. the same laws apply -- there's no lack of rising power, it's not just comcast instead of time warner cable. the same reasoning doesn't apply. erik: but they are also looking at different parts of the entertainment distribution food

chain. there are providers food -- there are providers further up the food chain. alex: they are looking at this vague idea of hurting consumers by having one company own so much controlled nationally of high-speed broadband and having the company, by the way, own nbc universal and all of nbc's channels. the radically, and a world several years -- theoretically in a world several years from now, this media company that owns so much fraud band could do things to harm consumers. it's not nearly as straightforward as a wireless company shrinking the market and having more pricing power. stephanie: i ask you do you actually believe the crew on capitol hill is going to truly understand the intricacies of this? erik: i believe the lawyers at the justice department get it. alex: they have to go through a lawsuit in court for this. stephanie: alex sherman and

peter cook. when we return, facebook is making it in mobile, but mark zuckerberg plenty of other issues to deal with as the company gets ready to report earnings. erik: plus it is earth day. we will see what top corporations do more than just pay lip service to the environment. ♪

erik: you are watching "market makers" here on bloomberg television. for the first time since 2012, sales rose at coca-cola. coke increased prices, helping to boost first-quarter revenue by 1%. the ceo has ramped up marketing and cut costs. shares of coke are up a little more than 1% right now for the year. the pork shortage at chipotle

probably won't get any better until the end of the year. chipotle has been trying to boost its supply of pork since january when it suspended a supplier for failing to meet its standards. that led to rolling blackouts of a popular pork dish. chipotle says a new supplier has been found, it's just a question of bringing them online. a study has found supreme court rulings are becoming more long-winded and grumpier. they found justices are producing more words than they did in the past and they are less friendly. researchers found current supreme court opinions are not easier to understand. stephanie: those were your top stories. coming up in a few minutes never thought we would see this guy acting president obama -- republican congressman paul ryan will tell us why he's supporting the president when it comes to trade. and how to become environmentally friendly -- we will mark earth day with a

consultant that helps companies go green. facebook reports earnings after the bell. investors are looking for mark zuckerberg to show he can keep growing his mobile revenue and slowing user growth. here to talk to us about facebook strategy is a man who invested in some of the hottest tech companies around. ethan kurzweil's investments include linkedin, skype and pinterest. a comeback. what are you saying mr. zuckerberg should do? ethan: he's got a twofold task. he's got to convince folks he's staying ahead of where people want to spend their time. constantly using the newest and next thing -- instagram came out and zuckerberg bought it. that's one way he stayed ahead of that trend. now snapchat is taking off and other things are happening. he's got to show he's going to

keep people using his services or a service he owns as a primary way of doing social networking. the second thing is he has to show he can keep monetizing. they've done a great job so far, but that story is still being written right now. erik: would you like in the challenge mark zuckerberg faces at facebook right now relative to its size to the same challenges google face almost 10 years ago? ethan: i think that's right. very different strategies. facebook is a closed social network where folks come in and want you to spend all your time using a facebook service or facebook connected service. to keep people doing that as opposed to a search experience where you are jumping off and doing other things is a lot harder.

that's why you are seeing them innovate and buy things and some cases for billions of dollars, but it's not an easy task. especially with mobile devices where new things come out and they get ubiquitous adoption in a year or two. i think it is a good analogy. stephanie: do we have to get this detailed in terms of what mark zuckerberg's strategy has to be? facebook is the big guy -- are investors going to be looking that closely? ethan: i think long-term ones will. stephanie: should be, but are they? ethan: i think you have to come to waiting things -- one is how well are they monetizing? they surprise a lot of folks. after their ipo, their stock went down. they have shown they can make money with these direct response

type ads. as opposed to long-term brand advertising like you find on television. these are long-term trends that will play out over three to five years. they are making a lot of money today and that's why you see the stock perform so well lately. erik: if google is a good analogy, what have we learned from google's experience and what lessons should mark zuckerberg be taking? ethan: you have to try lots of experiments and fail at lots of them. google has done many things -- they have bought big companies like youtube which was a prescient pickup on their part and they have done things like google plus that have not worked out as well. that's ok. they say they are going to spend lots of money on long-term bets. some things stick and some things don't.

there is no way to have a 100% hit rate. in my company, we invest in things that don't work, but we keep investing in findings that do. stephanie: when you look at twitter versus facebook -- mark zuckerberg, this is his baby. you have the founder's dna in every tentacle of the organization. with twitter, it is the opposite. can you see a negative with twitter because it doesn't have the zuckerberg effect? ethan: it's hard to know not working with the company but you can see in some of the public perception of twitter. they don't have a strategy the way facebook does, when there founder controls product and has been right in a lot of ways over the last 10 years in terms of what people want to do and how people want to connect online. zuckerberg has done a lot of popular things at the time and said i think this is the way we

should interact online. this is the next iteration of social as it relates to mobile devices. twitter has not had as much leeway because you've had different people running it and different people responsible for their product direction. i think facebook has a big advantage there. stephanie: thank you for joining us. i think you should join us on set when you are in new york next time. we will have more after the break. you are watching "market makers" right here on bloomberg television. ♪

stephanie: when we return president obama's partner on his trade bill is republican congressman hall ryan. we will hear how they became

unlikely allies. erik: a top environmental consultant will tell us about the companies who get it right when it comes to going green. ♪

announcer: live from bloomberg world headquarters in new york this is "market makers" with erik shatzker and stephanie ruhle. stephanie: welcome back. it's 11:30 here in new york city. we are just being kicked off but europe is closing for the day. i'm going to send you to the newsroom where scarlet is looking at the big movers oversee -- overseas. scarlet: it is kind of a sluggish day if you look at that index, but look at greek stocks -- the afc index was the best performer -- the index rebounded

off of a three-year low with greek banks leading the advance. a 13% gain after the cap was raised on the assistance program. it gave greek banks more emergency funding and this all comes before the big eu summit. when you look at yields across the periphery whether it is greece, spain or italy, you can see it coming down. the german bund is moving higher, but still a long way from bill gross'short of a lifetime. you can see declines in tesco and heineken anywhere from 3% to 5%. we are keeping an i on everything here but so far it has been a slow day in the u.s. markets as well with the indexes bouncing around.

erik: that is scarlet fu with the latest on european markets. with talk about home sales. earlier, we brought you breaking news on home sales. we had an annualized pace of almost 5.2 million, the highest since september of 2013, an increase on the month over month basis of 6%. you are an economist. you have to evaluate these things against a fairly mixed picture. what do you see benchmark -- what do you see? guest: we have been trying to hold things because there are seasonal factors -- the spring buying season usually starts around march and stretches into june or july.

you ignore the winter data and that we are just on the cusp of the spring buying data and it looks decent. a good start, but one month does not make a trend. erik: home prices continue to rise. carl: the monthly change was up prices are accelerating, so a lot of those underwater mortgages -- erik: why are more buyers coming to the market? karl: this may be the year we see the recovery. erik: wage growth is stagnant. carl: home prices are well into positive territory. erik: i'm just being a skeptic. stephanie: couldn't some of it have to do with -- how many years out from the financial crisis are we? six years.

people are back on their feet even if you are in the same financial position in 2010 as you are today, in terms of overall confidence and stepping in making a big purchase like this, it's a different time. carl: banks are looking at this and saying they are in a better position because they have increased equity in their home relative to where they were in 2009. erik: the counterpoint i would make is that if you had the money and credit in 2010 and did i -- didn't gbuy. carl: if you look at main street america, banks are much more willing to -- stephanie: hindsight is 2020. you are asking people to have brass cajones.

even if they have the same amount of money they did, it is an emotional decision. erik: what are we doing celebrating procyclical behavior? carl: lenders are looking at the environment and saying the unemployment rate is much lower. we are not worried about a double-dip recession anymore. erik: it has been several months since we've seen an annualized case of 5 million. carl: lending standards are easing, the lending standards are on solid footing. erik: i have to stop you there because we need to go to commercial rate so stephanie and i can argue some more. carl: let's make sure the march jobs stumble is not extended. as long as it is around 200,000, it looks good. stephanie: i am only allowed to interrupt seven times per show

and then i get the hook. we have hit that moment. i was going to keep talking on top of erik until they wheeled me out. if president obama is going to get that big trade bill passed he's going to have to count on a long time rival, republican congressman hall ryan. we will be hearing all about it. -- congressman paul ryan. ♪

erik: you could say it is a critical moment for president obama's agenda. congress is moving closer to granting the president more authority to granting major trade deals. among his allies is congressman paul ryan, mitt romney's running mate back in 2012. congressman ryan spoke to peter

cook earlier today. why would republicans want to give the president more authority to do anything now? the story of the president residency has been gridlock. peter: republicans have also accused this president of exceeding his executive authority on issues like immigration. it does raise the question to some republicans, why would they cede any ground to the president ? i put that question to paul ryan and the answer is they agree with the president on trade and they believe fast track trade authority the weight is being constructed will give them more power over the final product. congressman ryan: there is nothing stopping the president from negotiating a trade agreement at plopping it on congress' desk. by offering this vote with his transparent process with negotiating objectives at the

front, we think we will get a better outcome and a better outcome from our trading partners as well. peter: the white house is pleased they are getting help from paul ryan. he is delivering votes for them on this issue. last time we had a president -- you have to go back to franklin roosevelt for the last time the president did have fast-track trade authority. erik: there are many skeptical americans and skeptical democrats, but paul ryan has to be concerned about his constituents back in wisconsin. peter: a big manufacturing state that could benefit from more exports. he conceded that he went back to a town hall in wisconsin and got questions from his constituents about whether these deals are in the best interest of american workers. we know there is support from big business. he believes that the end of the day this will lift american workers and their wages. take a listen to what he had to say when i asked him if he could

be confident his own states workers are not going to lose anything. congressman ryan: we cannot guarantee how the economy is going to work but we can guarantee it's going to work better if we open the markets and bring standards of two american standards. we are the 21st century, we are in a global economy, and the rules are being written today. the question is who is going to write the rules? is it going to be china or is it going to be america and our allies? peter: again, paul ryan, the wing man with president obama right now -- an unusual combination. stephanie: one thing that is standing out is president obama which we don't normally see, is against elizabeth warren here. we showed a segment where he was on msnbc and says i love elizabeth, but -- can you

imagine president clinton saying i love elizabeth warren? peter: we may not hear that from president clinton anytime soon. trade is an unusual issue in the president is much more into with paul ryan that he is a elizabeth warren. there are a lot of democrats on the fence right now. they should read this legislation and decide for themselves whether this is a deal in the best interest of american workers and families. there are a lot of ghosts of nafta floating out there and the president's argument and paul ryan's argument is that this is not nafta. erik: that is our chief washington correspondent, peter cook. stephanie: i'm going to tell our guests what we have -- companies that are just saying no when it comes to pollution. we will speak to a consultant who helps them get green.

♪

erik: the spring real estate season is off to a strong start. sales of existing homes rose to their highest levels in more than year and a half. homes sold at an annual rate of 5.2 million, well above the forecast of economists we surveyed. regulars are going after gaz prom. the eu says they may have prevented gas from flowing from certain european countries to others. the company says they expect there'll be a solution with the help of the russian government. shares of yahoo! are trading lower this morning. first quarter sales fell by 4% and gave a lackluster forecast for the quarter. marissa mayer says yahoo! will be exploring its stakes in yahoo! japan a stake that has been valued at $8 billion. president obama is expected to point fingers at today's earth

day speech in florida. he will use the everglades to call out republicans who have tried to derail his plans. presidential hopefuls jeb bush and marco rubio. stephanie: earth day began back in 1970. would you have guessed that? it began as a way to promote environmental protection and 45 years later, the question we are asking is how far we have come? with us as one of the top environmental consultants to fortune 500 companies and author of best-selling books and the president and founder of a hc group, a consulting group specializing in environmental-corporate matters. it's a big day for you, i'm guessing one you celebrate every year -- i'm guessing you celebrate it every day.

what companies have made a shift and really care about this initiative? guest: i'm glad you are covering this subject because i have been involved in 30 of those 45 years and the main change is that innovation is the sister of sustainability. environmental friendly makes -- meet making better products for your home, your car, your computer, your backyard. the answer, toyota when they came out with a hybrid powertrain a decade ago, there are 7 million hybrids sold in 90 different companies -- 90 different countries around the world. you have to ask yourself what does that mean not only for the profits of toyota but the meaning of sustainability? it means 49 million less metric tons of carbon going into the atmosphere, less urban small rug

-- less urban smog and 4.7 5 billion less gallons of gasoline consumed. better products make a better world. that is what we have learned on earth day. there are 27 different models of hybrids now sold by two yoda, of which 12 alone are sold in the u.s. even in the lexus line. oil and gas industry and of your utility dialed to future of environmental progress because energy environment, and the economy are tightly tied in. i start with toyota if you go to the oil patch, there's an interesting thing your affluent informed and influential households can go to. it is a billion dollar property

agreement between 14 oil ceos on how to reduce land impact reduce greenhouse gas and air toxins, how to reduce water consumption. it stands for the canadian oilsands innovation alliance. erik: you are pointing to some important examples. from what i understand, you have worked with more than 40 companies on the s&p 500 on sustainability, conservation and the like. what percentage of those companies would be doing what they were doing if their customers or not demanding it? would any of them be doing any of that? bruce: i figured even better -- there's the customer demand for a better burning gas but -- better car -- erik: or his government weren't requiring it. bruce: in addition, what is

fascinating is that wall street itself is beginning to separate the good players from the bad players. in this swift and severe world, there are the speculative capitalists only looking at a quarter. but there are also longer-term players looking at innovation. there's a new trend in many of the valuation houses from msci to bloomberg called bsg metrics -- environment, social and government metrics. people are responding to the voice of the consumer and more actively to the flow of money. in the last 10 years or the last eight years, since the 2008 global meltdown, the people on wall street are quite serious about picking winners that have some sustained value. you can differentiate a bad oil player from a better social, responsive oil player. you can differentiate a better

car from a less governed car that is ignorant of some of these social expectations. i would say to a combination of customer demand, bsg and wall street. stephanie: we have to leave it there. thank you. we will see you tomorrow -- that is going to wrap it up for "market makers." ♪

scarlet: it is 56 minutes past

the hour which means bloomberg television's on the markets. u.s. stocks are modestly higher following mixed results following earnings from dow coca-cola and boeing. take a look at the 10 year treasury -- you have a little bit more direction there -- better than expected home sales report perhaps led to speculation the fed has room to begin raising interest rates later this year. that is a lot of conditionals but that's a market thinks these days. we had a smaller than expected gain -- i should say small gain overall in supplies, though the gain was slightly larger than anticipated. it's just that they are coming down a little bit. still plenty of supplies. joining me for today's options inside is the senior equities derivatives strategist at ecg partners. do you diet that the data point pushes the fed toward raising

interest rates later this year? guest: people think entirely in conditionals, so it's one data point, but it matters. people have had a debate about whether millenial's care about homes. i think they do, unquestionably. wage pressures are starting to show up and when you get all of these conditionals multiplied together, you get a meaningful trend. we have more evidence of wages coming up this month. we have strength in manufacturing for tomorrow. when you get all of that together, you've got a real case for a sooner lift off in the market has priced in. scarlet: in the meantime, it seems like we are just resting. the dow jones and the s&p trading between gains and losses. it's hard to see any momentum or any trend being built. guest: one thing the market is doing is pricing in more

correlation among equities as we get into the heart of burning season. people are going to expect stocks to move on their own fundamentals rather than with the broader market. that's reflected in the options market as well. people are pricing in options with correlation. that's what of the main drivers -- how much do managers want to hedge their beta? that is getting reflected in the options market right now. scarlet: what does that say about future returns? guest: when you have low implied volatility and low implied correlation, it tends to be half of what they usually are so much worse than average. that is true at the 10 day and three-month timeframe. when you have low implied correlation and low implied volatility, it makes her sense. scarlet: and you have a trade that plays on that. guest: vix options are affected

by correlation. we like owning the may 16 call spread. you can do that for $.55 with the may futures and that will give you upside exposure if the market rakes down or volatility picks up. i think there is fairly low downside risk. scarlet: and the potential for profits is much bigger than what you take away the prospect of losses. thank you so much. "money clip" is up next on bloomberg television. ♪

himpimm: welcome to "money clip." in media, the man behind the warren buffett cartoon the features -- that teaches children about money. and charges against the u.k. trader who cause the crash. disappointing sales for chipotle.