i am sure flow would mayweather and manny pacquiao are off when we can for sports. good morning, this is "bloomberg surveillance." we're live from our world headquarters in new york. it is made a. i am tom keene with olivia sterns. olivia: new details emerging in the freddie gray case. officers who arrested him made a previously unreported stop on the way to a station house. a baltimore tv station says the autopsy showed injuries like those suffered by car crash victims. the suspect, who was black and unarmed, died of a spinal injury while in the custody of baltimore police. the city was mostly quite overnight, a third night of curfew was ordered after protesters rioted monday. prosecutors don't have the police report but police are releasing few details. the mayor is promising justice.

>> we will get justice for freddie gray. believe you me, we will get justice. we're going to work together. if, with the nation watching -- three black women at three different levels can't get justice and healing for this community, you tell me where we are going to get it. olivia: anger is spreading beyond baltimore. marchers in philadelphia clashed with officers. some protesters tried to break through a line police set up near highway. police say there were two arrests. elon musk reveals his latest enterprise and makes sweeping predictions. he unveiled his powerwall batteries designed for homes and businesses. solar panels and service a backup during outages. he stresses his plans could lead to pollution-free energy production. >> we want to show people this is possible that that is the

future we could have. where the curve slowly rolls over and goes to zero. that is the future we need to have. and that is something -- and the path of talked about the solar panels and the batteries, that is the only path i know that can do this. olivia: he is promising delivers of the home batteries starting late this summer. prices start at $3000. the death toll in nepal is now more than 6200 and thousands of people are still missing. six days after the devastating earthquake, nearly 14,000 were injured, the u.n. says 600,000 homes were damaged or destroyed. 2 million people need food and water, medicine andauthorities say international aid cannot arrive fast enough. the state-run radio network reports the families of each guilt will give -- killed will

get $1400. quickly losing friends on wall street commissioners of the professional the network fell short of estimates for the first time. linkedin is also forecasting second-quarter sales will miss projections. the comedy expect revenues in the quarter of about $670 million. that would been early $50 million short of expectations. >> with the first pick in the 2015 nfl draft the tampa bay buccaneers select jameis winston. tom: the top picks want to be leaving the state of florida post up the heisman trophy he took, jameis winston -- winston becomes the face of the franchise. they missed the playoffs or seven straight seasons and haven't won a postseason game since 2002. winston led florida state to a national title two years ago.

the morning's brief it is an interesting friday. chevron out with earnings. this is important after what we saw out of exxon mobil and bp earlier in the week. some nuanced earnings among big oil. construction spending may be showing a better america coming out of that her renders gdp report -- horrendous gdp report we saw for the first quarter. the consensus looking for better construction spending and along with that, consumer sentiment out at 10:00 a.m. as well i want to get to the data check. futures up five, euro continues to advance well through 112. oil near 60. onto the next green, if you -- next screen, if you would. even the two-year does a little bit better. you see it expressing stronger euro, weaker yen. this is a way cool chart.

it shows percentage change really well. here's bill gross. down they go. what a whiplash this week. olivia: last week, we really thought the tenure german bond was going to go negative, and now we're back up to 0.4. tom: small moves. what is so hard on the mapping of this -- what is so cool, the yields could barely move, but you get big price moves. people go, can you give me another drink? i don't get that. olivia: this is symptomatic that we saw the broader tried -- tide turning in the month of april. tom: would you link in the better u.k. numbers and the good feeling of this friday? olivia: growth in european money supplies. we have had economic data surprising to the upside coming

out of europe. credit, the m3 number is close to where mario draghi wanted to be. that is the first time that is happened since i can remember. tom: did you think five years ago olivia sterns would be quoting m3 at 6:00 in the morning? i don't think so. the fed meeting. something is changed. bond people are rationalizing higher yields across the board. have we seen this before? i think so. i think that means the price of bonds, notes will decline. george it is a most interesting friday. what will you be thinking about in your reading this weekend? what is front and center? >> we of been talking about interest-rate sensitivity for many months, really since last year. as bond yields have declined in the pressure is starting to mount within markets and as you pointed, the price reversal has meaningful applications for

investors. the key thing i'm going to look at is, how does money flow through the bond market? our bond investors willing to take capital losses? will they start to move their money elsewhere? there is been a steady march in the corporate market for many months in several years as rates have progressively come lower. the reversal of that money will have major locations. tom: have you ever seen a bond bear market? the answer is, no. i would respect those suggest they could be uglier than an equity bear market. george: absolutely. the volumes of money at stake are huge. the shift as application for investors as well as companies. companies have become highly dependent on very cheap funding. corporate america has been borrowing like mad. they've sued of a -- significant coming due. major shifts across capital

markets. some investors are prepared for it. there are spots to focus on. there are certain pockets of value. olivia: where is the opportunity and credit right now? >> if you look within high yield, there are little pockets of value. i said we want to stay geared to the companies will do well as bond yields move higher. you want to stay closer to the front end of curves. long duration positions long maturity bonds are going to be highly price sensitive. tom: we will talk about the broader audience later in the hour. what does the pro-audience do? they can't go to cash. they have actuarial responsibilities. you say go short duration. they can't, can they? george: they can selectively. it is about how you position your portfolio. institutional investors do need the duration. i would say they can pick spots around the world, as you point out staying in u.s. corporate bonds is a long end of the curve

makes much more sense than going into german -- tom: where are you on the u.s. 10 year? yellen, fed meeting, bank of japan, what does wells fargo call? george: 250 by the end of the air. still up a little bit from here. that has meaningful obligations. that means some capital losses are likely. tom: apple computer considering i believe with the roadshow on may 7, get in yen and the working interest rate is 0.47%. way under. olivia: why would they take the tax hit? why not just borrow and pay back? tom: is that lemmings over the cliff? as every cfo going to have to do a bond deal? george: they have been doing that for the past couple of years. we laud -- we have had over a trillion dollars in the past couple of years. we on track once again for that this year. the key to the corporate

activity is kind of the rate at which companies are borrowing. pressure point is going to sort of coincide with a very sharp increase in borrowing demands for corporate america. that has meaningful implications. i don't think that goes away. prices are starting to come down. yet the makings of a meaningful volatility shock. olivia: chevron earnings are out later this morning. we were word a couple of months ago about a big spread in high guilty energy. have we seen that happen? george: it has had a nice recovery since the beginning of the air. on crisis at craft a little higher. credit spreads have tightened as energy prices have risen. over the last couple of weeks, the markets kind of stalled out a little bit. i think we are fairly valued and bond investors are waiting -- they were waiting for earnings. they wanted to see how balance sheets responded.

i think we're in a trading range. bonds have not kept pace with the latest move in energy prices. tom: we will talk about mortgages and what they will do with the yield back. linkedin crushed. i love the word crushed. twitter, crushed. the rangers, crush. what was that about? olivia: crash can be a positive. like, "tom, you crushed that." moving on, still to go on "bloomberg surveillance," tesla is making a big hey -- play in the battery market. elon musk is crushing it. this is "bloomberg surveillance." ♪

tom: good morning. 2.07 u.s. 10 year yield. this get to our top made a headlines. olivia: navy ships are escorting u.s. commercial ships as they sail through the strait of hormuz. u.s. defense officials say it is to make sure they face no interference from iran. the new policy has not yet been officially announced but it is being adopted in response to what washington views as prerogative iranian behavior in the straits. a new associated press poll says your u.s. citizenship isn't ample protection if used -- if you join a terror group. 60% support the use of drones to target terrorists in general. president obama is choosing his adopted hometown as the side of

his future presidential library. it will be built on the southside of chicago university of chicago has identified two possible sites to the obama family home. an official announcement is expected within a week. on the subject of libraries, the president was at an event yesterday in washington with a student moderator who try to answer a question about writer's block, but the 12-year-old middle school about the president was being a bit wordy so he told the leader of the free world to move it along. >> listen, even the best writers usually it is not back at the first time they write it. >> i think you sort of covered everything about that question. >> he thinks i been talking too long. i got it, move it along. tom: line him up for a presidential debate. olivia: the president spoke about his early breeding habits and his post-presidency plans, and his facility with digital media. tom: that was fabulous.

and the president taking that with a bit of grace. let's look forward. so much to talk about. you will talk to george bory about the major american headache if we do get a higher regime, what is it mean for those mortgages? could we ever get back to 5% or 6%? the box office heats up. i have been waiting for "furious 8." "the avengers" are out this weekend. we will look at the kentucky derby on a sports crazy weekend. the horse racing here as 6:50 really interesting with people italian how to not lose money betting on horses. olivia: tesla wants to power your home. last night elon musk unveiled two new storage batteries. his first foray into what he is calling tesla energy, a business he says could one day eclipse

that of electric cars. >> this is going to be a great solution for people in a remote part of the world where there is electricity wires were aware -- where the electricity is externally expensive. you can take the tesla powerwall and it can scale globally. olivia: tesla stock has once again been on a tear since he dropped a hint on twitter about a month ago about the new product line. joining us for more to talk about tesla's plans is david. thank you for joining us. what do we need to know about these batteries? david: i would submit what elon musk once extremist a chicken in every pot, a tesla in every garage powered by solar planets -- panels on the roof. up until now, you could have them on your roof will step this is a way to store that power at your house. you can use it when energy

prices spiked. you could use it if the grid were to go off-line if there were some sort of natural disaster. utilities want to be able use this to alternative energy, store it, then send it out to people when they need it. olivia: help me understand how new this is. is this a pioneering new technology or is elon musk inner ring a crowded field where he will have stiff competition? david co tesla is positioned to do it in a different way. i want to point to one statistic. i looked at research from a company in boulder, colorado. this industry is worth about $605 million. i 2024, it could be a $21 billion industry. tom: i don't think it is any secret i am not an elon musk fan. he is way outside. he is amazon as a joint partner on this with others. is this about new lithium ion chemistry or the skill ability or just about taking out american electric utilities?

david: all of the above. he is may no secret -- tom: are they going to burn up like the lithium battery? david: i hope not. they're building this gigafactory. tom: but is it a new technology, new chemistry? david: the factory is not done yet. a lot of people have wondered as he is come out with this release he said, you can get this in your house by the end of the summer. to build these batteries for the cars and houses and utilities, that is ambitious and we will have to see if that can happen. olivia: mr. musk is one who is pledge of omission. i am excited. dismisseddo you think i can pick up a powerwall at home depot? tom: or buy it from amazon. that is where we are heading. this is really cool.

olivia: that is a lot for the fedex delivery man. tom: this is really cool. olivia: still to come, former fx traders to professional handicappers. that means they bet on horses. they will tell us there is a way to actually make money on betting on horses. >> you can invest in stock come a goes up a little. but to see live animals run 40,000 hour and you're getting paid handsomely, there is no better game, no better investment in the world than horses. ♪

tom: good morning, "bloomberg surveillance." olivia sterns pulled the short straw, she is with me today.

let's get to a morning must-read. i think he is in his cottage in spain or something this morning will stop -- this morning. i went wild, george, when i saw that. is there a new effervescence on this may day that screams higher yields, better economies? george: number one, people are optimistic about the second quarter for u.s. growth. secondly, as we talked about earlier answer getting a little bit better in europe. i think that is where the pressure sits. we've seen a meaningful relight mission of bones. others have come higher. they have pushed higher.

i think people are asking, is this just a technical revaluation or just a squeeze? i think it is a bit squeezey. the ecb will be buying a lot of bonds going forward. yet to be a little careful about assuming this is a rush to hire yields. but it does seem like we're going to move structurally a little bit higher over the next couple of months. olivia: how do you make sense of the better-than-expected initial jobless claims and what happened a month ago with the jobs report? tom: the job stay is not today. we should say that. usually it is the first friday of the month. next week is the jobs day. we will have full coverage. that claims number, every pro i know when, wow, they were humbled over the statistic. olivia: we haven't mentioned greece. what happens if greece leaves zero? george: i think europeans have done a good job of trying to -- think atomic impact as well as

the -- the economic impact. the bonds that are held, they're not really held by beanie investors, whether -- it is somewhat, i think, contained from a pricing standpoint. tom: we will come back with george bory and look at home mortgages. in the next hour, william cowan, trying to get a sense on wall street. he disagrees. it is "bloomberg surveillance." good morning.

tom: good morning, "bloomberg surveillance." olivia: the police report of the freddie gray cases in the hands of prosecutors, but only sketchy details are emerging about why the unarmed like man died after

being arrested by baltimore officers. a baltimore tv station says the autopsy showed injuries like those suffered by car crash victims, and the police commissioner admits officers taking great to a station made an extra stop that was not previously reported. this city was mostly quiet overnight. a third on of curfew was ordered after protests about gray's death led to writing on monday. police who did up last night in riot gear and removed protesters and reporters out of an intersection near a pharmacy that was burned it down earlier in the week will stop baltimore's mayor is promising results in the investigation. >> we will get justice for freddie gray. we are going to do it because we're going to work together because if, with the nation watching, three black women at three different levels can't get justice and healing for this committed it you tell me where we are going to get it in our country. olivia: anger is spreading be on baltimore.

marches in philadelphia classed with opposite her's. some protesters try to break through a line police set up near a highway. elon musk says his new venture could reinvent energy production and storage worldwide. he unveiled batteries designed to store electricity for homes and businesses. he says the goal is to completely transform the world's industry -- energy infrastructure. powerwall can store energy. prices start at $3000. there will be no weekend rest and the talks on the greek debt rescue. the prime minister says negotiations will keep or negotiators will keep pushing for a bailout deal. protecting there could be in agreement as soon as sunday. the bills are mounting, but its european neighbors won't send money until they believe greece will actually reform its economy . comcast and time warner cable

are reportedly going shopping after their huge merger plans collapsed. "the wall street journal" has both are interested in bright house networks. the talks are said to be just parliamentary. the merger plan fell apart about a week ago under pressure from regulators. tom: manny pacquiao yesterday tomorrow night in vegas. floyd mayweather, junior squares off with manny pacquiao or. six years in the making. many mayweather is two years older than pacquiao, but pack yell is the underdog, a role he likes. >> i like that. i love it because it gives more encouragement determination encouragement to prove something in the fight. i love it. tom: first on bloomberg, many. -- manny.

it will cost $99 on pay-per-view. i did that, you can, too. those are our top headlines. we're going to rip up the script. this is the most important conversation of the week for anybody that has a savings account, a bond account. george bory with us. you've done a lot of research on ugliness of bonds. you can go to the chart. 1999, though to the mother of all bear markets, bonds got crushed. retirees got crushed. what is your research on how we react when bond prices go lower? george: we have done a lot of analysis, specifically around the 1994 period. if you look at times where bond yields start to go higher and prices drop, fund flows, the amount of money going into mutual funds tend to move with the lag. you need to see a sustained 3%

to 5% capital loss on your portfolio before money starts to march out post-up if it is a one-month move and we snapped back, many states pat. however, if it lasts two or three months, the money really starts to move. tom: $100,000 portfolio, you get 98000 and everyone goes, yeah, yeah, red sox, yankees. there is that tipping point -- george: 3% to 5% within one to three months tends to took the card. in the 1994 period yet almost 10% of the mutual fund market move out of the bond market as bond yields were rising. that was a very sustained move. it was aggressive. we went from five .5% up to a percent. -- 5.5% up to 8%. tom: i was a little more pain.

and then mom-and-pop or over at the kitchen table going, george, sell, now. olivia: it is impressive enough to know for the first time ever i decided to get a mortgage. tom: what happens when the mortgages go higher? bring up the chart of what olivia should know. she doesn't even know that a mortgage used to be a 6%. olivia: no way. tom: george, are we going to get back there? george: we're talking about very small incremental moves. bond yields are creeping higher and mortgage rates have crept up a bit. we had a nice little windfall over the last couple of months for opportunities to the refinance or take out a first mortgage. housing activity has in a fitted from that. we saw that pick up this week. even as bond yields were to go up to 2.5% on the tenure treasury, mortgage rates are still pretty attractive by any measure. tom: olivia, you are rocking in

the housing market. olivia: barbara corcoran told me to write a handwritten note to the seller if they would please sell me the apartment. how do you position your self? tom: --george: the risk you lose money to capital loss upon yields go higher, bond yields are low, but they are staying low. we try and set up a little bit of a barbell, whether it is along the curve -- maybe a little bit of money at the long end, but pretty cautious. much more bias for the front of the curve. credit rating sensitivity. if you look at april, investment grade bonds turn to negative have percent. high-yield bonds were up 1.3%. tom: should our institutional and mom-and-pop audience here at "bloomberg surveillance" should they try to buy a yield from apple or whomever of 1.5% or have a percent? those are extremely low yields.

i'm going to get crushed a fields go higher. george: if yields go higher tomorrow, you will. the fed has been very clear, and i think they're very intent on allowing the market to slowly move higher. i think that is quickly important. with the bond, you may absorb initial capital loss, but you earn it back through time as you get coupons, as you get income. when bond yields are low, it takes a long time to earn it back. tom: did he get the talk we don't talk guilty maturity on fridays? -- yield maturity on fridays? continue. olivia: euclidean march. tom: simple rules, great book. olivia: "avengers" set to break weekend records.

it is possible that could bring in a record $5 billion with a big it's coming out this summer. stay tuned, this is "bloomberg surveillance." ♪

tom: full disclosure, i know nothing about modern movies.

here to make me smarter and you wiser with the single best chart is o sterns. olivia: do you like marvel comics? tom: when i was a kid. olivia: that is the pantheon of cartoons comics, "the avengers." this is the sequel, set to take the box office by storm. the sequel to the 2012 movie opens today. it will likely play a big role in what is expected to be a blockbuster summer at the box office. today single best chart shows ticket sales may hit a record $5 billion this summer. it is not just "the avengers." universal has a big one out with "jurassic world." tom: what happened last year? what is the big red on the right? olivia: we don't know what happened. this has been huge for disney. a big run-up in the stock for disney.

it was upgraded to a buy. the film franchise business in particular. and the big "star wars" later this year. tom: that is christmas? they're all like international and blow them up and that. are they really playing off that wonderful independence day movie of now a decade or more ago? olivia: what? tom: they're all the same, right? olivia: "the avengers" is a shared universe of all the marvel superheroes. that is why it is so cool. warner bros. is coming or something similar "the justice league" that invites batman and wonder woman and superman. you have a bunch of hits and put them altogether. moneymaking machine in hollywood. tom: this is ticket sales in the chart? olivia: yeah. george, do you take your kids to the movie? george: we do. we have younger kids.

"frozen" was popular. "minions" is a big hit with our kids. "avengers" i don't know. my kids love to go to the movies. it is our family thing to do. tom: we sat here for 15 years predicting the death of movies and the death of movie theaters and they just won't go away. george: not at all. the kids love it. it is a great event for all of us to go together. and it is a lot of fun. i don't think it is going anywhere. tom: there it is. photos? olivia: number three, indonesia, thousands of workers take part in a rally to mark made a post up activist celebrate the holiday by demanding that are working conditions and higher wages. i want butter in my coffee. march is also took place in moscow, hong kong, malaysia and south korea and presumably happening across europe as well. tom: very good.

it used to be tanks and troops through lenin square. i guess we're not doing that anymore. olivia: on mayday? tom: yes. olivia: the volcano interrupted again in chile within eight days. ash was sent to miles and the sky. it still poses a risk to locals. 1500 people were evacuated and security measures continue. tom: very cool. olivia: number one, this is for you because i know you love your nasa photos, crashing in a mercury after orbiting the planet for four years. this was the last image of seen from messenger before its plummet post up and hit the ground at 9000 miles per hour and left a 50 foot wide crater. tom: they will study the crater like crazy to see what the debris looks like. this is spectacular.

what a couple years it has been for unmanned spacecraft. olivia: unbelievable. tom: we are at pluto soon, i think? olivia: is elon musk and get us to mars -- tom: it is been a great couple of years. olivia: in the meeting, you explain the moon dust and why that is so important. tom: when they landed on the moon, it was a question of how thick the dust was. that is what ranger was trying to figure out. if they went down on the moon with a module, could they lift up? olivia: we did see that 50 foot wide crater and they said it will figure out what kind of dust there was a mercury. tom: mercury is closer to the sun. olivia: it is the closest planet, in fact. coming up at of the kentucky derby, we talk to professional horse bettors about which course you want to put your money on. it is actually a science. and for our twitter question of the day --

so many questions. tweet us @bsurveillance. ♪

tom: good morning, "bloomberg surveillance." let's get to those mayday top headlines. olivia: search teams in alabama have recovered the bodies of two more voters who been missing since a powerful squall hit a sailing regatta last weekend and an investigation is grilli underway. five people are confirmed dead. one person is still unaccounted for. agricultural officials and i was a the deadly bird flu virus has likely affected at least five more forms -- forms including an egg laying operation. bird losses have now topped 20 million turkeys and chickens including some 15 million of i was egg laying flock. that is roughly one quarter of the state's 60 million hens. in louisville, kentucky, they are set for the run for the horses. 141st kentucky derby is tomorrow and the field is full with 20 or

so. the five to two favorite is american pharaoh. if he wins it will be from afar. he is starting the race in post position 18. those are your top headlines. tom: the first rule of betting is not to lose money. from there, a small matter of making modest pot. wrapped around all sorts of fancy math. they take advantage of clowns like me betting at the racetrack. we have two professional handicappers. very good at taking my money. they are reality tv stars. there also former fx traders. what is the single dumbest thing i do every kentucky derby? >> maybe you just go and bet the name of a horse or you like the jockey plus name or something. tom: totally unscientific. olivia: there is a horse called kino olivia. tom: peter, what you're doing

the psalmist a public service. what is the first best practice for amateur wrists to not lose that $100? >> what you have to do is you have to get the daily racing form and learn how to read it. it gives you the statistics of the horses, the trainers, the jockeys, and the class of the horse. again, you could see out the track conditions are. if a horse runs good on a fast-track. fundamental knowledge. tom: lee davis, taking it to the moment of the kentucky derby there are 20 forces. everything on the odds is skewed toward those two favorites. how do you decide on the other 18? >> a few guys call it data. there's so much data available. you need to look at every option possible. you are looking for value. with 20 forces, you try to not pick a favorite. you don't pick it unless you have to.

unfortunately, in this race, i happen to like that favorite, so i am -- olivia: american pharaoh. >> so how do i make money? i have to try to make a bet to incorporate the favorite with another horse. so i look for, i guess you would call it diversifying like a portfolio. i use american pharaoh as a blue-chip stock. i'm looking for, say, a penny stock or an aggressive stock. tom: barbell strategy. to bet on horse racing, gf to have two classic accents like you guys -- do you have to have two classic accents like you guys? >> irish punt come from brooklyn and live in staten island. bensonhurst. -- i am originally from brooklyn and live in staten island. bensonhurst. olivia: the chair of the federal reserve comes from brooklyn. tom: when she gets angry, she

sounds like peter. olivia: if i have $100 and have no idea what i'm doing, how should i spend my money? >> i'm different from lee and handicapping this race. i'm going all most all in like a poker game. i love number 15. he is coming off a solid victory on april 4. he had some breathing issues. his trainer took care of it. he ran the wood memorial in great fashion, one by two lengt hs. tom: to me about the importance of the pre-races, like the arkansas derby. do prozac you care? >> they are very important. especially, track conditions. i try to compare the churchill to the other preps. a lot of the preps, it doesn't play the same as churchill. i try to take that in consideration. tom: when they go and "they are

off," what do you watch in a worse race? i'm watching my drink. >> i'm watching number 15 frosted. i want him to break well, get good position, and in this case stay about it or nine lengths off the pace. i need our jockey to just bite his time, coming round the far turn, make his big move and then just try to pull away in the stretch and hope he can hold off the closers. tom: one of the great thing about stock trading in this mapping, the reality is, you make most of your money on a very few wins. is your world the same way? >> 100%. it is like a baseball player. you need three out of 10. if you go three for 10, we are all rich. tom: it is a three in 10 business. olivia: therefore, horses going

into the current fee -- there are four horses going into the kentucky derby that are undefeated. >> a lot of people want the winner, what the winner. there are nine races in a card. 33% to 35% of the favorites win. you have to try to get the races where the favorite is vulnerable -- olivia: look for the company that will get you more -- tom: yankees red sox this week in. hockey is booming. boxing, everybody says there is this match and that is it. what is the state of your industry right now? are you going to disturb the and breeders' cup and your reality tv show going the industry is on the up and up? >> horse racing is on the up and up. it is a lot to do with tournament play. tom: what is that? >> tournament play is you can invest a little bit of money and make a lot of money. there are players from all over the country betting on horses and it is basically, they have

10 a lot of races picked out. if you have the most money after the 10 races are over, you win x amount of dollars. tom: so we have hedge fund that makes a lot of money was to impress people, flies down and the girl with the big cat standing next to him. hedge fund boyd was one of the thousand dollars last are making no money. what is your advice the second time around? >> hang out with tim rotondo and you will make money. free the first time. if you wins $500,000, he will come back and look for us. olivia: you are betting on frosted. >> my $100 will be invested in $20 to win on moon, 30 to one. $5a exact box, 515, 18 -- tom: we believe everybody hanging. >> if i'm right, you will make a lot of money. tom: we've got to go. >> somebody is got to pay the

bills. tom: thanks to peter and lee making me smarter on horses. and george, thank you. forex report on euro, 112.66. we say, good morning. ♪

s finally upon us? the ramifications of a better europe and a stronger america. william cohan weighs on money power, next tycoons. olivia is watching the yankees-red sox, we are all watching floyd and manny. good morning, everyone. this is "bloomberg surveillance ." we are live from our world" is this mayday. i am tom keene. with ms. olivia sterns. olivia: new details are coming out on the frayed gray -- freddy great case. a baltimore to be station says that his autopsy showed injuries suffered like -- by those -- suffered like those my car crash victims. a third night of curfew was

ordered after protesters provided monday. few details are being released. the police commissioner says the case is still open even though the states attorney has the report. >> this does not mean that the investigation is over. if new evidence is found, we will follow it. if new direction is given by the state's attorney, we will obey it and follow through with the investigation. olivia: anger about the cases's reading beyond the market marchers in philadelphia clashed with officers and there were two arrests. must revealed his -- elon musk revealed his latest. it is designed to store electricity for homes and businesses, capturing electricity from solar panels and serving as a backup during outages. he says the goal is pollution-free energy. as in the past musk is thinking big. elon musk: all transport, all

electricity generation, all heating to renewables, you need to billion in power packs. that may seem like an insane number and i'm tempted to do the billion thing, but -- [laughter] restrain my hands. olivia: deliveries of the home batteries will start late this summer and prices will start at $30,000. the death toll in nepal is more than 6200 and thousands of people are still missing. six days after the devastating earthquake, nearly 14,000 were injured 600,000 homes were destroyed or damaged 2 million people need food, water, medicine, and temporary shelter. authorities say international aid cannot arrive fast enough the state-run radio network says the family of each person killed will be given $1000 and 400 more for funeral costs. linkedin is quickly losing friends on wall street. shares of their professional networking website plunged after

posting week results. it fell short of estimates for the first time. linkedin is forecasting that second-quarter sales will miss analyst projections. the company expects revenues of just 670 million dollars, nearly $50 short of expectation. roger goodell: with the first pick in the 20 15th nfl draft the buccaneers select jameis winston, florida state. tom: and the topic of this year 's nfl draft, winston will join tampa bay and the buccaneers. instantly becomes the face of the beleaguered franchise. they missed the playoffs for seven straight years. they have not won a postseason game since time began, since 2002. winston led florida state to two national title -- a title two

years ago. i will get it right. i titled two years ago -- at title two years ago. chevron earnings with oil better than good today. construction spending and consumer sentiment out at 10:00 a.m. a better europe and a better america. i wanted to do some breaking news. i think this is important, certainly with what we have seen and baltimore. business goes on for cvs. one of their stores aflame in the heat of the baltimore protest and riots of the last last few days. they do a nice beat your cvs health on the view forward. one of the companies affected by baltimore. i want to get through this very quickly. yields higher, the euro, without question the story of a better europe. confounding the parity crew. oil near 60, confounding the oil

doom crew as well. let's look at one of the blowups of the week. william cohan has written brilliantly on wall street and has a thing out in "the atlantic" right now out on wall street. once again, all the whispers of 1999, 2000, the highfliers, the people getting crushed -- i don't mean facebook. linkedin twitter, yelp. what an ugly week. william: the trifecta. tom: talking about the derby. william: i think it is healthy, it is long overdue. people have such shorter members about this stuff. it mystifies me everything up and yet it happens repeatedly. the evaluations get way ahead of themselves ahead of anything resembling earnings. it is different than it was in 1999 and 2000. tom: it is different than it was and i go back to the famous

thing about excel and sandwiches and deciding futurist at goldman sachs or whatever that story was. nobody out there had the humility. everybody near wall street has been hampered, and they felt like they played by different labor. bill: everybody feels that this time will be different. once again -- we were talking about it yesterday too. the interesting thing of the expectations game, earnings analysts, whether you make it or not i thought we were done with that scenario from a few years ago but it seems like that is happening again. analysts expect you to make a certain amount of earnings and if you don't, your stock gets hammered. that is a different issue than the fact that the stock is way overpriced. olivia: the penny finally dropped with linkedin because this is the first time anything really disappointing has come in from linked in. tom: fair, unfair. -- fair fair.

olivia: and they did still be the forecast. changing of the tune. tom: but they take a dollar and it becomes $.14 down the income statement at the ebitda line. bill: which isn't terrible. there are worse businesses than that. but the evaluations are so high and the expectations are so high it does not make much sense at all to expect them to achieve these things. again, yesterday we were talking to john bogle here and he was saying that the stock market is really, frankly, a distraction right? what really stops discount is future cash flows that these companies generate and the ups and downs of the stock market are a distraction. i think he is quite right about that. on the other hand, people get carried away with these bunnies. these -- these companies did these wall street ipo hype

machines -- tom: ms. olivia stern's guilty of hyping -- is olivia sterns guilty of hyping? olivia: and i guilty of hyping? tom: we are all in this hype business and get howard. -- hammer. bill: no question that 24 hour business news plays a role. but the wall street ipo machine is designed to hype these ipos. tom: do we blame bob right felt this morning? he is affecting transactions. olivia: the story is clearly a change in sentiment. it was a bad week for apple. we saw a big selloffs in biotech stocks. pause in the dollar rally risk on for oil, reversal in bonds. tom: from where you sit, where his twitter's strategic model

where they manage for takeout? bill: i think the latter, the only thing that makes sense to me. i use it, i enjoy it, i learned a lot. i used to say couple years ago that i would look at it and find one thing a day. now there is lots of things every day, every hour, that i enjoy finding out about twitter. but again, the price is overhyped. tom: linkedin is $.14 on the dollar. twitter is a -23% -- bill: how do they make money? the eyeball field. remember when people used to talk about "just give us the eyeballs and we will turn that into cash somehow, trust us"? olivia: everybody says the difference between nasdaq then and today is that the copies are making money and are more mature. tom: yeah, but twitter -- you know i am sobered by linkedin. olivia: we should bring in the

-- bring up the fx hit they took it look where the euro is ending the week. tom: bill cohan with us and we will speak of his global wall street. no one more qualified on the back and forth between the major firms, the boutiques and the originals of an attempt -- another time. olivia: bill cohan also knows a thing or two about sports. where are you placing your cap this weekend? the kentucky derby, the yankees was the red sox, what am i missing -- bill: there may be some boxing match. i've heard something about it.

tom: good morning, everyone. "bloomberg surveillance." i am tom keene. watching ben bernanke walk out of the hotel. he looked tanned and rested. olivia: i'm surprised, because he is a busy man. he has a new gig at citadel and he is blocking for brookings. -- blogging for brookings. "the wall street journal" editorial page -- "fails to note

that the fomc has been too optimistic about growth they've been consistently too pessimistic about unemployment." he says that "the wall street journal" has to be forecasts breakout inflation and that hasn't happened yet. tom: i have yet to read his wonderful blog on john taylor of stanford. if david wessel arranges this at brookings -- ben bernanke's doing a public service with his blog. really cool. olivia: what do you make of this though? tom: i think it is valid criticism and it is great that he pushes back to bill cohan, you know this so well. it is so easy to criticize and game in and is is another thing to do this and bright lights. bill: part of the reason he's feeling tanned and rested is

he's feeling prosperous for the present in his whole career, because he went from academia to making some money. people in the know are reading his blog and commenting on it, on twitter. i don't know if they are doing it on linked in. good for him. olivia: it must be refreshing for the man. he had to be so apolitical and so guarded in his wording. now he is swinging against the left taking out larry summers swinging against the right taking out the "wall street" editorial page. tom: people say it is a crime, $200,000 a speech. i'm like, baloney. they have to make some money for the families. olivia: so they can afford to go to the mayweather-pacquiao five. bill: so much criticism of the revolving door. he served his time in academia and then and government service.

he should come exactly, be allowed to make a living. tom: i'm so glad you brought up the blog. i have to read the taylor piece. it has math in it. professor bernanke on the dynamics of the taelor function. coming up, i must watch and listen for all of you worried about austrian economics. the president of merck investments on the dollar stronger. olivia sterns and tom keene with the government.

tom: "bloomberg surveillance." futures up seven. axel merk a genius. we will get to that in a moment. here is olivia sterns. olivia: navy ships are escorting u.s. commercial ships through the strait of hormuz at the mouth of the persian gulf. officials say it is to make sure that they face no interference

from iranian ships. it is being adopted to in response to what washington views as provocative behavior. a compromise gop budget promises to speed up the repeal of the health care law and would give the pentagon and next to $30 billion next year. it promises to balance the budget in nine years with more than $5 trillion in spending cuts. the nonbinding plan heads to the senate next week. president obama's choosing his adopted hometown for his presidential library get it will be built on the south side of chicago. the university of chicago has identified two possible sites near the obama family home. an official announcement is expected within a few weeks. on the subject of libraries the president was at an event in washington with a student moderator and try to answer a question about writer's block of the 12-year-old middle school moderator thought the president was being a little bit wordy, so he told the leader of the free world to move it along.

president obama: listen, even the best writers -- usually it is not that good the first time they write it. >> i think we have covered every thing about that question. president obama: think i've been talking too long. no, let's move it along, i got you. olivia: the president spoke to the students about early reading habits and his post-presidency plans and his facility with digital media. tom, if i ever tried to move you along. tom: no that was fantastic and it shows the timing of our president. here we go. when you are right, you are very right. when you are wrong, it is ugly. recently, merk investments president and chief investment officer axel merk has been crushed on that dollar. mr. merk joins us battle scarred in search of ascendant asian

currencies. after your total class act, everyone will go hide under the desk. when you look at the currency and people believe in it ever weaker dollar, the trend has been in your favor. if you had a structurally wrong call we look to a reversal back to a weaker dollar. axel: we all know the mess of the euro zone. i called mario draghi convincingly irrational. everybody thinks everything is going to hell in europe, everything is great in the u.s. the reality is more grayish. we do have to have a rebalancing of that. especially outside the euro zone, they are so scared of the euro weakening that they pulled out all the stops and they will have to backpedal on that. tom: your expertise is to go away from the main story -- europe, greece, all that -- and look at the swedish krona or for that matter, and ascend in asia. we see mr. abe coming.

those currencies with their good gdps have to get stronger versus the u.s. dollar. axel: but there is this misperception that the gdp automatically translates into good currency. that is one of the big myths out there. take the japanese yen. the better the game was historically, it is gradually changing. those dynamics tend to change a little bit. japan is a very interesting story recently because the future of japan is impossible. the worst thing that can happen to japan and many countries in the world's economic growth because then bonds will fall and it would be impossible -- olivia: did you hear that, the worst thing that could happen to japan is actual economic growth. obviously, a big story of what is happening to the dollar is the taper. axel: now as we might -- god for bid -- it doesn't mean the dollar always has to benefit when risk is off.

the euro has become a funding currency. when risk is off, people do lever and the euro snaps back. it is just difficult to induce inflation in the eurozone and difficult to weaken it. yes, europe is a mess and will always be a mess. the context is what price. people are completely overboard in a negativity on the euro silly because europe will be there. olivia: we are not going to parity? axel: the europeans look at headline inflation and the excuse is to get the excuses to print more money will be difficult to come by. olivia: we made it through the whole 7:00 hour and still haven't mentioned greece. axel: greece is irrelevant. financial institutions don't hold greek debt anymore. it a survey politics. -- it is great politics. bill: i love the saying the word

"grexit" though. it drives me crazy. do you ever since happening again? -- ever see this happening again? axel: never say never again. but it is so damn difficult. the only thing it does, it helps -- the weaker euro helps germany. it gets more tourism into the periphery but other than that the weaker currency -- olivia: the numbers out of europe are surprising could even though it is your early, the chief euro is having an impact. we are a week away from elections in the u.k. axel: the markets are a bit out there. volatility is up a little bit. ultimately, people don't expect much from it. the u.k. has had wins and it is not the elections that will cause problems. tom: axel merk thanks so much. futures up seven. the euro-dollar going in the axel merk fashion.

our twitter question of the day looking at this incredible weekend of american sporting. where are you placing your sports bets? ♪

to the bloomberg terminal and look at something smart. this shows percentage change olivia, and what this is about is not yield or price.

lower yields, high price. oops. and then you get this massive rebound in yield and the price is just lunch. olivia: bill gross of janus capital says this is the short of the century. do you think it is lacking growth, or is this reflecting the fact that we have better than expected economic data out of the u.s. and in particular the money supply? lending has picked up in europe -- tom: i totally agree and you see that expressed in the stronger euro as well. the ideas that the headlines go to mr. gross on that but much better economics on europe. new nuance -- real nuances as we go into the weekend. olivia: the yields may tell you more about to ease strains. -- qe strains. tom: massive that on lower

yields and there was a point where you say "i am out," and you get a little bit of this rebound. olivia: incredible shock to the market. just last week we were starting the clock -- tom: down here going lower, lower, lower. olivia: you think any of this has to do with greece? tom: i think so. i think there is a positive tone with mr. varoufakis stepping aside. you mentioned it twice today. too many people, greece still matters. there it is, the bloomberg terminal. let's get to our top headlines. here is lifted. olivia: the police report on the freddie gray is now in the hands of prosecutors but there are still sketchy details on why the black man died in the hands of baltimore officers. his autopsy showed injuries like those suffered by car crash victims.

officers taking him to the station made a nexus top that wasn't previously reported. a third night of curfew was put in place after riots. the pharmacy was burned down earlier in the week. the police commissioners as they will keep investigating the case even though the state attorney now has the report. >> this does not mean the investigation is over. if new evidence is found, we will follow it. if new direction is given by the state's attorney, we will follow through with the investigation. olivia: anger about the gray case is spreading beyond baltimore. protesters in philadelphia clashed with officers. elon musk says his new venture could reinvent energy production and storage worldwide. they unveiled batteries designed to store electricity for homes

and businesses. he says the goal is to transform energy infrastructure. the home battery can store electricity generated by solar panels and serve as a backup during outages. he promises that deliveries of the home batteries will start later this summer. prices start at $3000. there will be no weekend rest on the caps on the greek debt rescue. negotiators will keep pushing for a bailout deal. prime minister alexis tsipras says there could be an agreement as soon as sunday. european neighbors will not send more money until they believe greece will actually perform its economy. the european finance ministers meet again 10 days from now. comcast and time warner cable are reportedly going shopping after their merger plan collapsed. they are interested in a network owned by the numerous media family. the talks are said to be just preliminary. the merger plan fell apart a

week ago under heavy pressure from regulators. tom: tomorrow night in las vegas, the $300 million men will climb into the ring. that is the expected take when mr. pacquiao and mr. mayweather square off. the matches six years in the making. pacquiao is the underdog, a role that he likes. manny pacquiao: oh, i like that. it gives more encouragement determination, encouragement to prove something. i love it. tom: watching the bout on pay-per-view will cost you nine $99. i have on -- ponied up mine already. fun center, the euro and oil near that $60 level.

that is not branch, that is american oil. futures -- equity futures for the week are pretty much range-down. futures at the two year yield, .59. olivia: this is "bloomberg surveillance." i am olivia sterns come here with tom keene. 48% of financial professionals resurveyed say that there pays less or much less than they had expected to make. only 14% say they are making more money. bill: spent 17 years on wall street. where do you go today to make a lot of money? do you go to goldman, do you go to a boutique, like lazar, where you used to work? how do you make bank? bill: first of all, the good news about people going to wall street it is the most money you

can make without risking your own capital. that is flat-out true, it has been true for a long time, ever since these firms went public. now, once upon a time, the most money you can make would be at lazar morgan stanley. nowadays, hedge funds or private equity is where you make the big money. olivia: is low pay -- i should say lower pay -- bill: let's be clear libya they're making more money on wall street than anything they could do risking their own money. olivia: it was down from $5,000 -- bill: that's a lot of money. olivia: ton of money. is this lower pay? bill: absolutely. lower pay is the new normal on wall street. the only way they can make a difference -- compensation used to be 50, 60%. now it is 30, 40% of revenue.

tom: i had a drink the other night with a bunch of people and one of them was a 24-year-old newbie at jpmorgan. bill: complaining? tom: no, thrilled to have a job thrilled to be on william cohan's wall street. but what is the future of staying up until 4:00 a.m. doing the boilerplate? it is not the romance of the movies. where is a person like that in 10 years? bill: if he works hard and keeps his nose to the grindstone he will be making $2 million a year and complaining about wishing he could make -- tom: olivia mentions kkr but where are the evercores of the world? bill: there is a big opportunity and there continues to be an opportunity because the wall street firms have heard their reputations and credibility as a result of what happened in 2008.

jamie dimon told me it will be a generation before people forgive wall street for what happened. that is great, especially when it comes to advisory assignments. tom: we should be clear, olivia: we should be clear, james gorman has been out in front. is this a good thing, taking risk out of the system? it has changed the incentive -- bill: taking risk out of the system -- you never know where the risk is until, friendly, it is too late, unless you are really smart and can figure it out before. changing the culture on wall street, as i got into in this "atlantic" piece, is finally important. you have to give james gorman credit for doing that a little bit. tom: i have to put you on the spot. a lot of people ask me about the future of deutsche bank in america. you and i remember alex brown

and the clumsy mating. what is the future of the troubled german-london bank in america? bill: these days it is hard to kill wall street franchises. they imploded, they kill themselves. it was suicide. other than that, if they survive, it is really hard to kill them. they emerge from bankruptcy in the 1930's and 1920's. part of credit suisse now. deutsche bank is big, powerful german bank, a national champion. is it going to have rough times in the u.s.? tom: but they have to be here. bill: of course they do. a lot of european banks are retreating from this. olivia: nobody wants to be shut out of the u.s. bill: but some are retreating.

olivia: i highly recommend bill's article in "the atlantic" this month. out twitter question of the day, where are you placing your sports bets this weekend?

tom: good morning, everyone.

"bloomberg surveillance" from new york city. in the distance you can see the condo downtown that betty liu will purchase with cash with the money she will make from manny pacquiao on saturday. working with manny -- [laughter] olivia: how about the money i will make at the kentucky derby on frosted? tom: i will just have a mid-july -- mint julep. betty: i will have a makers mark whiskey. olivia: oh, friday, a fully it were appropriate to drink on tv. joining me now is betty liu. everybody wanted -- thatbetty: it is hilarious that the entire media world is fascinated by batteries. since when did everybody excited about batteries?

tom: i am not a fan of esther m - mr. musk. i think it is brilliant, what he is doing. he is really onto something. bettty: there are several unanswered questions from what we saw last night. i've been to several of these tesla unveilings. it is like a rock concert. it was exactly the same last night. similar to the media reports ahead of time. there are basically two kinds of batteries, one for consumer and commercial use, which is to store power in these batteries. he says in your home it will look like a piece of art. it has to bring that steve jobs-esque flavor. olivia: it is an upright battery, i guess it is called the powerwall. betty: yeah, i don't know.

it is our. you can interpret it however you want. we have someone who used to work at ge and spent eight years there and spearheaded the fuel-cell operation. he knows a lot about this as well. elon bracket was $3500, the cost. well, i mean, almost affordable. however, that is only part of the actual cost of putting this into your home. there is the infrastructure labor. it is going to cost a lot more. the other thing is how much business demand is there for this. third is where was solar city in the whole conversation yesterday? he is chairman of this company and presumably they would be benefiting the most from something like this. olivia: great question.

i didn't think about that. not a peak about solar city. be sure to watch betty liu on "in the loop." lots of questions about these new powerwalls from elon musk. betty: got to get the bikini body for the summer. tom: i'm looking for that, too. olivia: this is "bloomberg surveillance" on bloomberg television.

tom: what a good friday. mayday on "bloomberg surveillance." bill cohan won't shut up. olivia: if only you knew what we were talking about. investigators in california are searching for the cause of the massive blaze at a utility yard. it happened at a store's site where pg&e corp. and other companies purchase power poles. agriculture officials in iowa say that dudley bird flu virus has likely affected at least five more farms, including an egg laying operation.

losses have top 20 million turkeys and chickens including 15 million of the flock, a quarter of the state's 15 million hens. in the louisville, kentucky they are set for the run of the roses. it is tomorrow afternoon and the field is full. if american pharaoh wins from afar, he starts the race from the outside. those are your headlines. tom: very cool. chrysler sales come in there will be a discussion of that. lots of talk and betty's interesting research on tesla. summer movies -- it is a big sports weekend. we will do that in two seconds. also a big movie weekend. look at that 8:20. rangers have to win. olivia: and the yankees are going to beat the red sox. tom: the yankees are surprising. olivia: we are gearing up for a

huge sports "surveillance" weekend. we may also be going to "the avengers." it started yesterday with the nfl draft and jameis winston getting picked by the buccaneers. tonight, yankees versus the red sox. yankees are going to beat the red sox. then it is the kentucky derby and the much-anticipated mayweather-pacquiao fight in vegas could and then on sunday it is the world golf championship, if you are still watching golf. 52% of adults say they plan to watch, listen, or attend at least one of those events. oh, my goodness. so much going on. joining us is our bloomberg sports reporter. the fight of the century, mayweather versus pacquiao. >> i'm looking at the business numbers, and they are huge. the most lucrative fight in boxing history.

$300 million is the conservative estimate. folks in the industry never thought they would see numbers like that ever. but it has captured the minds of sports fans, both standard boxing consumers and elite consumers. tom: what is the risk it goes two rounds? eben: that is pretty much the worst nightmare for sponsors. tom: what is the risk of that? eben: highly unlikely. neither of them knockout opponents with any regularity. tom: i thought mayweather had a dozen knockouts or something. eben: that was early in his career. the only person he has knocked out in the last 10 years is a guy with hands-down apologizing. tom: are these guys old? eben: they are. eben:farah the tail end of their career. we have been talking about this fight for six years and it would've been a better fight six years ago. olivia: is this the last big fight we would hear about? eben: this is pretty much the last gasp in the boxing world.

it happens to be that the two most compelling fighters in the same weight class -- tom: horse racing and boxing, i guess they are on an ebb. practice and the belmont -- did that happen last year? eben: horse racing is one of those sports that is very niche but very competitive. $300,000 for every child he rears and he sires 150 a year. do the math from over $40 million he is bringing in. olivia: bill cohan, you bet on derby? tom: are you into the horse race? bill: no i'm afraid not. i watch it, greatest two minutes in sports or whatever. tom: how do they get bill cohan and i to lean forward in horse racing? eben: it starts with getting the

triple crown and the possibility of that attracts people to the belmont. if that happens it brings in -- olivia: a few reasons this weekend might be more interesting. there are four horses in this race that are undefeated and there is not been a triple crown winner in 37 years. tom: the ulysses that mr. mayweather and mr. pacquiao will be like american pharaoh and retire? olivia: do you know that mayweather makes more money than cristiano ronaldo? eben: he will make $80 million in this fight alone. tom: is this the last fight? eben: i highly doubt that. mayweather has two fights left on his contract and is probably done after that. tom: i believe a-rod hit the ball into the field, meaning he is hitting. he is doing it. bill: but the yankees are

downplaying the potential passing of the willie mays record. their incentive is to downplay it. tom: is a-rod out of the timeout chair? he will always be in the timeout chair for some. tom: you're kidding. olivia: what makes the red sox have a chance? bill: better management, better tradition. olivia: um, tom. hockey, what happened late last night? tom: great game. eben, i differ to you on this. the islanders-capitals game. the capitals have to hit the rangers to win this series. eben: absolutely. it is physical, and in hockey you usually see that from the team that is not as talented they get more physical. the game last night was fantastic as well. hard to deny alexander -- tom: when do they go to las vegas with the franchise? eben: they are currently looking

at it. questions on how viable that market is, especially -- bill: how about the clippers' first game and the pictures of steve ballmer's face were incredible? olivia: a lot going on. our twitter question of the day. what do you think you can make some money? "always bet on the underdog. i'm going with pacquiao." " my money is on mayweather. pacquiao is going down in one." tom: who is going to win? eben: put your money on mayweather. undefeated, looked better recently. tom: we continue? olivia: "whatever happens, they will be through draft. kings." tom: that is the new technology. eben: fantasy sports of the future. you pick players and get point

how they do. this is the daily brand. you make money doing it. tom: ever see anything like this? eben: this is something i haven't seen. super bowl is huge but it is the only sport in town that weekend. olivia: nba and nhl playoffs? even i am beginning to care a little. tom: scarlet fu is under medication. olivia: we're looking at the stores shipping the day. tom: i will go back to what we do in finance and that is bonds. if the guilt goes up, the price goes down. there will be a moment where people will begin to focus again on bond prices. how quaint is that? olivia: auto sales coming out today and we've seen pretty good numbers from the american carmakers, in particular led by trucks. and "the avengers" -- what is

it, "the return of ultron"? this is the pantheon of marvel comics and this could be the top grossing movie of the summer. it is pretty cool commute see the hulk take on ironman and robert downey, jr.. and everybody. tom: "transformers" is the only thing i know about. bill cohan does that. olivia: tom keene's "transformers." nice. tom: international business, and the copying -- olivia: it speaks to the resilience of the box office itself and the big-ticket blockbuster movie model. it is not just a dvd sales and streaming. tom: in the studio days they had those little cottages in the studio and you would sit there and think of movies and screenplays. way beyond that. olivia: yeah, all right. good luck to the yankees, good

luck to the rangers. lots of sports. tom: bill, as always, thank you for genius. mr. cohan in "the atlantic" magazine this month. "in the loop" is next.

betty: good morning. it is friday, last day of the trading week, but the first day of may. i am betty liu. we have a great show ahead for

you this morning and of course we're talking about musk -- about elon musk's announcement, unveiling batteries for homes and businesses saying his goal is to fundamentally change the way the world uses energy. what does it mean for his company's valuation? stocks are up 1.5% in the premarket. getting your body in shape for the summer. nutrisystem ceo dawn zier is beating rival weight watchers. but what about the competition from online apps and this woman? do you know her? she is the social media phenom on instagram, essentially taking the fitness world by storm, going straight after millenials. how do nutrisystem and weight watchers and they all complet -- compete? the police report on the freddie gray