mark: from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line" the intersection of business and main street with an exclusive perspective. ♪ to our viewers here in the united states and to those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines on this thursday. our commodities reporter su keenan, follows the rising price of crude oil after saudi arabia renewed airstrikes in yemen. heater cook has details on u.s.

counterterrorism operations. -- peter cook has details on u.s. counterterrorism operations that killed an american being held hostage. peter: president obama says he takes full responsibility that accidentally killed two american al qaeda hostages, one an american. he had been held by al qaeda since 2011. the other, an italian held since 2011. -- since 2012. what we learned today from the white house is a u.s. intelligence official said that this compound along the afghanistan border did campaign -- contain al qaeda terrace and was targeted because of that, but what was not known is the hostages were also being held there. they were killed in essence by accident. the president did take responsibility. >> as president and commander in

chief, i want to take full responsibility for all of our counterterrorism operations including the one that intermittently took the life of warren and giovanni. i profoundly regret what happened. on behalf of the united states government, i offer our deepest apologies to the family. peter: the president did say there would be a full and best they can and come up that the u.s. rules or joan strikes had been complied with in this attack. rules for drone strikes had been complied with in this attack. the president did not authorize the attack because the rules of engagement did not require presidential signoff for this attack at the time. mark: we are now hearing from the american -- from the family of the american who was killed. what did they have to say gekko?

peter: obviously profound grief for the weinstein family. they are professing that today. they said they look forward to the results of the government investigation, but those who took worn captive over three years ago bear ultimate responsibility. they do have some sharp words. they question some of the assistance they received over the 3.5 years. mark: peter cook, joining us. thank you. the united states senate voting to confirm loretta lynch as the next u.s. attorney general. you are looking at a live shot from the senate chamber. there are enough votes to confirm her. her nomination has been held up for five months. senators cleared the way by approving an unrelated measure on human trafficking. there you see the final tally

56 the a's, 46 days. loretta lynch confirmed as the first african-american woman to be confirmed attorney general of the united states. there you see the final tally 56 yeas 43 nays. a british trad accused of theer flash crash spent the night in jail. legal experts say extradition to the u.s. is almost an inevitable unless he is. health problems. they say fighting the process might help -- hurt his chances of cutting a deal. ryan chilcote reports outside the home in london. ryan: there are several conditions to his failed. for one, you want to stay at his parents house every evening between the hours of 11 p.m. and four. a.m. he has to wear an electronic tag

to prove he is doing that. additionally, he has forfeited his passport, so have his parents. finally and i find this the most interesting condition, the judge has banned him him using the internet. he has to buy a phone without internet access. history tells us this is quite likely. we took a look at some of the numbers between the years of 2004 and 2011 the united states made 130 extradition request for citizens here in the united income. the british government approved all of them. the courts only threw out some of the -- seven of them. the only way you can avoid extradition if you are british are health concerns. you can understand why he would want to avoid extradition. if all of the 22 charges are proven he could be looking at 280 years in an american jail. mark: in other news, a court in

spain has refused a u.s. request to extradite a former jp morgan banker accused of helping the notorious london whale. he is accused of helping bruno xo-more than 6 billion in losses. he told spanish judge he is innocent. that is a look at top stories where following on this thursday. sales of new u.s. home systems in march. purchases dropped 11 point 4% from a seven-year high. that was lower than economists estimate. a senior economist at wells fargo security joins me from charlotte, north carolina. welcome back. good to see you again. >> thank you. mark: why was this decline larger than expected, project really in a month when new home sales volumes typically peak and what is the key to this homebuying season? >> if you look at this report

it is not indicative of the true health of the housing department. clearly this particular report is still shaking up the harsh winter. if you look at their regional breakout we solve that midwest increased and the northeast and south showed large declines. that is on the back of other large increases. so if you step back and look at other housing indicators, we are clearly seeing improvement. mark: the last months drop is not an indication that the housing market is losing momentum? anika: this is true. if we looked at purchase applications, which is a good leading indicator, we of course of seeing improvement. that is conventional applications, as well as government-backed loans. the back and look at existing home sales. that number came out yesterday

and we saw an improvement so we are moving in the right direction. for some of these particular housing indicators, they are very volatile on the month, and we will see choppy data as we clear ourselves out of the unusually harsh weather conditions. mark: you just mentioned purchases fell in three of the four regions of the united states. what does that break down the like in the south where the majority of the u.s. in the -- the homes in the u.s. are built? anika: you are right, there is a large proportion of homes, more specifically the inventory of thise south. the south was also hit by the weather conditions. but if you step back and look, we are looking at household or missions that should show some increased. we are looking at labor market increase that should lend itself to higher demand. and it is across the board. as we look at one of the biggest

hurdles and the housing market it is going to be inventories, and still in some instances credit. mark: sticking with -- speaking with mark:anika kahn. why are we sing such a high rate and archon that -- our new home either's confident they will find a way to the arquette? -- the market? anika: a large part were distressed transaction investors sales and many of the existing home sales were selling at a discount. on the other hand when you look at new home sales, these particular homes were selling at a premium. you also have to look at the

number of homes by price. if you look at the number of homes by price specifically for new homes, you see there is not a whole lot this month that sold that was less than 300,000. most of the activity happened in the 300,000-500,000 range. so we need more activity at the low end where there is demand that is picking up, but the inventories are still very low for that space. mark: ryan sweet is a senior economist at moody's analytics and he told bloomberg the housing market will not take off until there is stronger wage growth. how long can the housing market days able while it waits for workers paychecks to rising catch up -- to rise and catch up? anika: we are beginning to see some of the wage growth occur. we must keep in mind wage growth is a lagging indicator. we will see wage follow.

it is more about credit. we should see pickup. we will see an improvement in the housing market this year. we will seek gradual increases increasing in this homebuying season. mark: anika kahn joining us on the program. thank you for coming on the program. of next, another check of today's top stories and you can order just about anything online , but medical lab tests gekko the answer may surprise you. that answer when we continue in just a moment. ♪

mark: welcome back. let's get you the top stories we are following on this thursday. the largest penalty yet in the investigation of interest rate rating. u.s. and british regulatory does --regulators to play -- to order deutsche bank to pay 2.5 billion. the misconduct included at least 29 employees based primarily in london. about a dozen other firms have artie paid more than $6 billion to's total similar claims. claims front employment benefits in the u.s. state below 200,000 for the seventh week in a row.

that is a consistently low level of borrowing. we will see in a couple of weeks if that made for a turnaround after last month report which was the weakest in more than a year. it may be the sign of progress in the u.s. housing industry is going down. sales. the average sales rate 481,000 homes in february. sales of new homes hit the new york type. first-quarter profit of general motors almost tripled the strong sales of light trucks in the u.s. undercut by problems in russia and brazil. those estimates missed estimates -- those analysts missed estimates. gm down 3.6% at 35.82. those are the top stories we're following. imagine bypassing your doctor to order your own broadcast. cynthia kunz will tell us about

this now. a look at women security and foreign policy. director of the georgetown institute for women. this afternoon university of kentucky basketball coach john calipari on a new virtual reality experience. stay with us. bottom line continues in a moment. ♪

mark: the sure to check out the latest edition of bloomberg " business week." read it on the go with our new app. emily chang sits down with sheryl sandberg and richard branson for an exclusive conversation on their companies and how to balance work and family. excerpts throughout the day. watch the entire interview tomorrow night at 8:30 new york time. only on bloomberg tv. we turn our focus to the laboratory corporation of america, the biggest diagnostic company in the and i did dates will soon allow consumers to bypass their doctors and order cholesterol readings, that right tests and other blood work online. cynthia kunz joins me in studio.

thank you for your time. it is called direct to consumer. how does this work? >> if you are interested in checking up on your health, outside of what the traditional schedule for testing, you will go online order the test and get the results your self. you would be free to interpret them on your own. this type of business allows you the freedom depending on what lab corp. ultimately allows you to offer to check up on your health more often. mark: when we call this a changeup in the way the doctor-patient relationship works? >> they are definitely coming along. they are getting used to the idea that consumers are far more interested in their health. mark: i think the conversation of the past couple of years, the consumer not so much getting your own results but taking charge of your own medical care and being an active participant

and letting the doctor -- as opposed to letting the doctor do all the work. >> i think doctors are coming to grips with this learning their patients are far more engaged and informed through what they read on the internet and apps and keeping up with her health far more than they used to. for medical professionals it will take some getting used to. some people will come in and have some own ideas about their care. mark: what are the risks involved with running a business around this? >> there are issues around interpretation of test. a third-year medical student and not feel comfortable reading the lab results that come back so how could a laymen interpret them without the medical knowledge professionals have? one of the risks is they do not really know what they are getting. also that people get diagnosis for things like sexually

transmitted diseases and they're not under a physician's care when they get the results. mark: why is left corp. doing this now -- lab corp doing this now? >> there have been a few changes. there is a new test that could be a threat down the road. another is that the traditional methods for getting reimbursed are getting more challenging. so they are needing to find new sources of revenue in the environment. mark: so we are talking competition basically? >> yes a lot of different competition so they're coming up with new ideas like this. mark: the ones you mentioned, are they the biggest competitors right now? >> they are new to the space, so they are looking at a handful of players like wellness fx. there are more established. they are rolling out the

drugstores. definitely becoming a much more significant presence in the industry. they are another one of the players they have to keep an eye on. mark: is there anything between -- any link to between patients taking charge and the affordable care act? >> perhaps the fact that more people are insured and more people are paying for their health care and people paying more than they used to in some instances so perhaps that is why some people want to keep an eye on their health. yes, there is definitely a chance this is all connected mark:. mark:it is interesting because you mentioned the word pushed back from some of the doctors. do some of them see this as an indictment of what they are trying to do? i am trying to give you information and the patient saying i do not want that, i want this. we are talking people who went

to medical school and trained for this and people like myself who may have read things on the internet but that does not necessarily mean i know what i am talking about. >> i think mostly they are worried people will not know how to interpret the results. if you have ever looked at your own lab result, they are quite complex. i think doctors are mostly concerned with people taking the abnormal result and demanding something from them when they may not necessarily be. mark: cynthia kunz, thank you so much. as we had to break, live at the white house. cynthia koons. we will talk the former u.s. ambassador for global women's issues on what more needs to be done to protect children and women in areas of conflict. life to the white house, the president of the united states welcoming the super bowl champions new england patriots.

you are watching "bottom line." ♪

mark: welcome back to the second half hour " bottom line." let's get you some of the top stories we are following. let's begin with the price of crude oil in the flow -- in the close of trading on the floor. trading at 58.08. measure for the proposed measure and time warner cable. staff members at the federal communications commission are now opposed to the deal. the reason, it does not help

consumers. yesterday justice department antitrust lawyers -- flew in lawyers from both companies. the opposition from the fcc is stronger. officials at the agency are expected to recommend that an administrative hearing be held. one of the main critics of the deal is minister the democrat al franken. he's going to bloomberg television this morning. >> comcast and time warner cable has the distinction of being the worst and second to the worst in terms of customer service as rated by the customers. all appropriations in the country. mark: that is a look at the top stories we are following on this thursday. the gathering brings together world leaders, industry icons, artist and activist to discuss struggles and cryer -- triumph women all over the globe.

joining me is the ambassador for global women issues the ambassador for women. welcome. one of the major things at this year's summit protecting women and children in conflict areas. where is the world failing of this regard and what more needs to be done? >> it is a big problem because so many of our conflicts are involved in perpetrating sexual violence against women. it is a violent tactic with the berries which egypt purpose on the side of the armed combatant. there are plenty of international guidelines for the need to protect women. in these circumstances the women and children are the casualties. these are civilian casualties and tremendous impact that this kind of violence has. we need to a better job on the protection sign and prosecution side to ensure those who are perpetrating this kind of violence are paying the price and the system of just this. -- justice.

mark: as we talked, there are still issues to be resolved with bo boko haram and with syria. this is not one of the issues where the world community can just say stop it. we rely's this is not supposed to be a tool of war. how do you bring these people to justice? >> you are exactly right. one of the additional points is that while sexual violence has been extra in early violent in congo and rwanda and south sudan , etc., we now see this is a specific adopted tactic by bo boko haram isis. the extremists and terrorists are using this today. i think as we develop the policies, we just cannot have military solutions that we have to figure out the gender peas and all of this because it is a huge problem. mark: does this policy have to include more women in

government? >> i think it is helpful. it is a reminder women do not always get to the table. they bring the ground troop to the table. the outcomes are often taking into effect all of the issues that have to be addressed. i think that is true and government as well. mark: is that role given the respect it deserves in your opinion? >> i do think men and women have a role to play. it is not just a women's issue. women are frequently in positions of authority and positions of decision-making. these kinds of issues, whether the economic and political and policy sphere usually get more attention. mark: one of the most debated issues, income inequality. how closely is that link to gender is polity? >> i think it is linked.

the amount of percent -- participation is critical to the global economy, as well as our economy. it creates jobs. in advances inclusive prosperity. when we shortchange women we are shortchanging all of society. we are particularly shortchanging them and their families. we have to see this as issues of equality, issues of justice and economics. mark: the most successful mentoring programs for young women, what do they all have in common? >> they have in common the transference of skills experience -- the kinds of things young women need. i have found these programs are invaluable at home and overseas. it helps those who are dissipating as the mentors. the rewards are extraordinary for paying their own experience for war. -- forward. it really gives him or her the

edge of they would not have otherwise. mark: i cannot let you go without asking about your former employer hillary rodham clinton. she is running for president. carly the arena-saying she will run for president. --carly thef fiorena. what do they bring to the table? >> certainly i can speak to hillary clinton's position. they have the right to be fully involved and make her case, and hopefully when the american people get the chance to vote they will cast their vote for her. mark: the former u.s. ambassador for global issues joining us to talk about issues -- women in the global summits which is underway in new york. thank you for your time. after the break you will head to

mexico city for today's latin america report. ♪

mark: welcome back. time for today's latin america report. >> getood afternoon. the story is petra boss. out with the annual earnings report. -- petrobras. the company is embroiled in a massive eruption -- corruption scandal reported it lost $7.1 billion last year. the market reacted with the stock falling 3.1% to 12.7%. the biggest love -- slump on the benchmark. the corruption scandal cost $2.1

billion. now to honduras where the president is scrapping plans to sell global bonds after reaching a deal with the imf. the country secured a three year roughly $188 million agreement and will be used to reduce the deficit to 2% of gdp by 2017. the $19 billion central american economy that has struggled from everything to gain violence his been gaining strength and the president hernandez specs to be viewed more positively by credit rating companies. those are the headlines in latin america. mark: joining us from mexico city for today's latin america report. more coming up as we speak with a bloomberg reporter who interviewed the company's chief financial officer. that report is straight ahead. also coming up, oil and gas tech -- oil and gas players are keeping oil out of the market by not turning out tickets to

nearly 5000 wells. those details, my colleague will join me when we return. ♪

mark: welcome back. more now on the petrobras loss. they reported a record loss of over 6 billion lori a, or about 2 billion u.s. dollars. what are the details from the other earnings report? >> after five months of delays there was 5 billion in losses last year. the first annual loss in more than 20 years. despite the loss the market celebrated the approval of after five months delays that they can now gather all external -- external auditors to sign off

reports on the external corruption skied -- scandal. now this chapter is behind. mark: you just had an interview with the cfo for petrobras. what did he say? >> i just spoke with him. it is a holiday in brazil. the building is empty but they received us for an exclusive interview. he addressed some of the markets concerns. he guaranteed there will not be any failure in three or four years. this is something the analyst addressed when they had a call with analysts. they also said the company strategy wildebeest on credit leverage reducing that. he did not discard the lawson

dollars this year. this is something the market will likely here, too. mark: what is the company's next focus? >> from now on, the next month he said he will spend the time reviewing the company's five-year business plan. that is a document the company set up for current production targets. there is still in the market. yesterday it was the first signs the new management met. today they had a call with analysts after several months and no answers. so they said they will meet with the press again in 30 days and have more clarity on specific

strategies to overcome. mark: joining me on the phone from rio de janeiro talking to us about petrobras and the earnings report spurring a rally. coming up, scarlet fu is on the markets. she will be joined by al spellman. later today, an exclusive interview with this because the u.s. house of representatives, john boehner. -- mark spellman. time now for the commodities outlook. what is the watchword for today frack log? >> it is. it basically means you have producers drilling wells but not filling it because it costs too much money to do that.

bloomberg intelligence did a great analysis and crunched the numbers and said 4731 of these in the u.s. which means 322,000 barrels per day of production being kept in the ground. they say perhaps october the frack log start to get worked out and that means production will rise to almost 7.5 million barrels per day. meaning that production may be coming down now but in the future when prices are good enough, it will be filled. >> you just said if they get worked out, what are the chances it might not? >> bloomberg pointed out between 60 and $65 for crude could really injuries -- increase the amount that are actually brought online. at the end of the day, the question for the analyst community, has the rally we have seen an oil run too far, too

fast and so are we getting ahead of the fundamentals? is this driven by technical and massive rush of liquidity into futures and oil ats? things that oil prices will start to decline. that we are still oversupplied by as much as 1.5 million barrels per day. citigroup kind of echoed the same thing. the risk is that we have seen this too far. this with batch of with u.s. production starting to grow as those frack logs mind. >> the drillers are waiting for prices to recover. that is why we are seeing this correct echo >> yes. >> they can wait as long as they want to go >> why not. you have already drilled it. three or $4 million to throw it. you can send the rest of it to fill it once prices become

economical. a couple variables. in different areas of the united states, you have to be drilling and producing oil to keep the lease. at some point they might be forced to fill. this creates a whole kind of issue for the producer. mark: who are some of them that have this frack log? >> bloomberg intelligence probably has the numbers. you look at the primary sources. they are mostly shale in the u.s. and my assumption is that would wind up having the most. i would and for you to the great article. the question is by how much will we see a decline in prices when we see it come on? like leaking

of fundamental, street smart 3:00. old up a hand. alix: he did not even flinch. i was really working. mark: that is a shame because he walked past me yesterday after your segment and was actually in tears. alix: so nice of you to say. i tried. andre ward -- i am not going to say it. really exciting. we are going to do some more boxing. boxing champion. maybe he's -- maybe he will show me his moves. the ceo of rock nation. he heads the rock nation sports. we will be heading to him and michael your mac. adam parker of morgan stanley. we will talk about his call for the s&p.

mark: alix steel. thank you so much. stay with us. ♪

mark: get the latest headlines at the top of the hour. that does it for this edition of bottom line on bloomberg television. i am mark crumpton in new york. on the market with scarlet fu is next. i will see you friday. scarlet: it is 56 past the hour.

i am scarlet fu. a record-breaking day on wall street. the nasdaq and s&p earlier on pace to finish the session at new highs. certainly the case for the nasdaq. the nest acted i'm really get above its closing record from the dot com days. now that we have reached the milestone, what is next? here with answers, mark solomon. thank you for joining us. the nasdaq finally catching up to the s&p 500 and the dow in making of the new highs. does that mean we are in the last phase of the bull market? >> i don't think so. i think it is more of a landmark day. i think a lot of it is driven by social media stocks. there is a lot of pockets in tech not doing so well. that is where we are concentrating. we are looking for names that have a lot of free cash flow and dividends.

this is a name that has clearly not been near all-time highs. scarlet: i was going to say that has gotten a lot of negative attention. >> people are very excited about mobile, which we are as well. the numbers about pc going down people started to skip that a bit. we are still optimistic going forward for sure. scarlet: what is the distinction of that kind of market when it comes to the quality of the return? >> all along this year we have been saying you are looking at a 6%-8% up market. right now i can definitely see a 5-10% all back. i do not see any reason because the market has become so fed dependent. i have never seen anything like that in the decades i have been doing that.

the next day to circle is may 8 in the next employment data is coming in. these are the pieces of the puzzle the fed has said is part of the information. the wage inflation number i personally think is not a number we have looked at a lot. that is supposed to be a key number. that comes in at 0.5 i think you will see the market say rates are probably going up sooner rather than later. i think the likelihood of us of timber liftoff becomes more prevalent. -- september liftoff becomes more prevalent. scarlet: investors are looking at a macro view. what does the fed takeaway from the latest crop of earnings report? >> i thought the fed minutes were great a couple of weeks ago. it was a cross-section from what i hear from people in the street. four members say they thought the economy was doing great. for members thought it was not doing good and two members could

not decide. thank you for joining us. comcast plan to drop its bid to buy time warner cable. that is after various agencies decided to put up more resistance to the fed deal, the deal struck a year ago. they still have not gotten approval. comcast that to drop its built for time warner cable. time warner shares are down in trading. ♪

alix: welcome to the most important hour of the session. i am alix steel, and this is "street smart." breaking news for you, comcast said -- that to plan to drop the time warner deal. this is on the deal of the sec launching an investigation and hearing into that which tends to lead to a really bad sign and draw out any kind of decision-making. time warner c