savings could not a good sign for economic growth in the second quarter. nelson else fails in his bid and the campaign may be over. we have a live interview with nelson tells coming up right here on "market day." andsony walkman is back into digital music but you won't believe the price tag. olivia: good morning. i am olivia sterns. i am erik schatzker, everybody. let's take you straight to a look at the markets and give you a sense of what is happening. disappointed retail sales number, yes, but there was positive economic data out of

europe. perhaps signs of incipient inflation should get everybody excited. equity index futures were down. markets turned at the open and now we are higher. olivia: markets were earlier turning on the disappointing retail sales. let's show you what is happening good dollar weakness is the story today as the disappointing retail sales and investors betting that the fed will push back the rate hike. the euro is stronger against the dollar on the gdp figures that came out of the continent and the british pound continuing to show a little bit of strength after the elections last week against the u.s. dollar. erik: let's have a look at the top stories on the bloomberg terminal. second quarter started on a week note for retail. retail sales showed no gain last month. gainfollows a revised 1.1% in march that was the biggest in a year. volatility. seven of the 13 major categories showed increases but there were declines among cars, furniture,

and electronics. dupont has stop an activist bid for board seats in its tracks. four the head -- four seats were put up. nelson tells says he would -- nelson pelt says he was rejected. zthe company wants to split doubront into two companies and got millions of dollars in costs. six person has died of injuries suffered from the devastating amtrak crash. federal investigators are at the scene in philadelphia. 25 people remained hospitalized, 8 are in critical condition. amtrak service has been suspended between new york and philadelphia. known 10 in news -- the cause isn't known and a news conference is set to take place in philadelphia at any time. olivia: delta airlines investors

will cash in on rising demand and lower fuel prices. a stock approved buyback plan, twice as much as last year's program. the airline is raising its dividend by 50%. delta says it will save more than $2 billion on fuel this year. erik: today is a big day for denver. it made an acquisition and announced it is splitting in two. filtrationo buy a company involved in water systems for $13.8 billion in total consideration. publicly traded entities will be on one hand a scientific technology company which will keep the danaher name, and the other will be an industrial company. blinds include water filters and medical testing devices. presidentsetback for obama on one of the key items for his agenda. senate democrats defeated a trade bill. they denied republicans the 60 votes they needed to advance the bill. senator bernie sanders said most

americans would not benefit from the trade deal. senator sanders: the trade agreement is pushed by corporate america, pushed by wall street, pushed by the pharmaceutical .ndustry very, very good if you are the ceo of a major corporation, but they are a disaster if you are an american worker. olivia: senate majority leader mitch mcconnell said he would work to bring the measure back for another vote. he is also seeking support from business to put pressure on democrats. erik: there are more sense of the oil glut is using. intermediate crude is $61 a barrel, up more than 4% in the past two days. barrel? $43 a u.s. produces have reduced the number of active rigs dramatically and a government survey in less than half an hour and show that stockpiles fell last week. economic growth

picked up in the last quarter. was better than expected, in particular thanks to performance in france and italy, offsetting weaker momentum in germany. and is helping inserted lower oil prices and a weaker euro. the greek economy fell back into recession in the first quarter according to a report out today and sources say europe's negotiators are about to demand another 3 billion euros in budget cuts. the cuts would get greece into a surplus of 2015. it is a target of the greek interior minister endorsed as acceptable. recently emerged from its worst economic slump since 2002. bill clinton is a lot can happen between now and november 2016 but he is ready nonetheless to move back into the white house if things break right for mrs. clinton. he talked about it with david letterman. mr. clinton: hillary has to win the nomination and win the

election and if she wins their chance is 100% i will move back. [laughter] [applause] mr. clinton: if i am asked. president saysr he thinks it is a good thing for america, libya, his wife wins. that shouldn't surprise you. come, the u.s.o may rip up its settlement with ubs for interest rates. the bank could still be prosecuted for its role in the libor scandal. erik: and the deadliest job in america -- commercial fishing off the coast of alaska. we will look at what the government's focus more on regulating the boats and then protecting people on them. olivia: the price of crude oil is at its highest level so far this year and i could change of 10:30 a.m. eastern time when we got a look at weekly crude oil inventories. consumers are starting the second quarter off on a week note. sales were flat in april. it appears americans are using

savings they might be finding to pay down their debt rather than splurge on big-ticket items. macy's is planning -- wait for we-- that whether -- bad ather. let's bring in analyst oliver chen. thanks for joining us. what is your reaction to these numbers? of 1%.is one/10 can you talk all of that up to the weather? oliver: macy's is a good bellwether. there were a few factors that macy's at play. the negative impact of tourism as well as the port slowdown. whether it is a little bit colder towards the beginning of the quarter. that really do not incite consumers. we have an optimistic view going forward. we think that retailers who have

a great omnicell focus in clicksting bricks plus can play a big role in driving the second half of the year. price of oilthe started to greater we had all of these equity strategist, near and doubled out on consumer discretionary, cheap gas is going to boost retail. it hasn't happened yet. why not? oliver: i think there is a lag effect in terms of the benefit coming through. gas had a lesser benefit is removed through the year but some all caps on numbers we see nationwide have held pretty steady and i think the unemployment levels, as we talked to ceo's around the country, are better than they thought. there are green shoots and i would stay on board with positive, cautiously optimistic view of the consumer. erik: oliver, question came up earlier this morning weather --

whether we should be paying closer attention to companies like michael kors as an indicator, a leading indicator for companies like macy's. rs hasn't had a great year. macy's was doing a lot better. still is, of course. is that a viable theory? oliver: i like michael kors a lot. i think they will have extraordinary growth. macy's is more of a return of capital story, given their $1.5 billion share buyback as well as dividend yields. i would say michael kors is an extremely attractive growth story because michael coors has distribution growth on top of com growth and international exposure. it is a vertically integrated brand owner of a handbag regime running at high operating margins. .acy's is a department store macy's is a generally good barometer of mass retail.

michael coors is a really strong executor with very strong and distribution growth and a great handbag category. a good if macy's is bellwether, you have outperformed, but the overwhelming trend in department store sales for the past 10, 20 pretty dismal. you said that macy's is a financial engineering plan. are you bullish? look at that 10-year chart. it is incredibly essentially the amount of sales at the department source has halved in the past 20 years. how can you be bullish on department source? macy's is online and they're focused on a loyalty and beauty program. nuance wants of this -- of this is longer term in nature and macy's is a good executor. you need to take a bigger picture perspective on broad line department stores.

we will not see supercharged growth. you are thinking about growth more in line with u.s. gdp. that is the nature of broad line. you can trust that against luxury goods and handbags and watches. better opportunity there that is double digit growth versus the single-digit growth we are expecting -- erik: oliver, quickly, we are going to see a diversion's in the numbers -- divergence in the numbers we get out of nordstrom? oliver: nordstrom has the benefit of nordstrom rack and a good online business. they have an interesting story where they got a little bit sooner to how the future of retail is evolving. we could see a stronger topline story there is for us thinking about the two. olivia: that macy's is moving in that option as well. oliver: they are. they have a great corporate strategy department, they are thinking hard about how to really turn the ship towards growth.

we have had consolidation at apartment stores and you have enough malls. we also have enough physical retail stores. it is really the next-door for holiday all about mobile. it will be about how you get a better deal, how you get control promotions, and the new loyalty program. olivia: all right, all of her, thank you so much. oliver chen with an outperform on macy's. erik: still to come, we are standing by for a live news conference from philadelphia mayor michael nutter on the amtrak derailment. olivia: an activist investor nelson peltz sales in his bid for a tw dupont board seat. ♪

olivia: we have breaking news out of philadelphia. mayor michael notter is giving an update on the deadly amtrak derailment outside philadelphia. six people are dead and dozens injured could let's listen to what mayor nutter has to say. mayor nutter: as i mentioned to you earlier this morning, we were anticipating the arrival of the national transportation safety board. their members are on the ground now. board member robert zumwalt and .ice chairperson amtrak, the board chairman, the vp of operations, the chief of amtrak police, and the deputy chief. ide, they have

approximately seven personnel on the ground with more personal. they are represented in the form of the investigator in charge, the chief of railroad division. the mechanical investigator, signal investigator, track investigator, operations investigator, and human performance investigator. we have full cooperation with all the agencies who were here the philadelphia fed apartment, police department, department of homeland security within the police department and other federal agencies working with us . police as well and a number of other agencies. this is a fully coordinated operation and everyone understands their role. we train for these kinds of incidents, although every one of these incidents, and this is a tragedy, are very different. again from last night, we can only confirm that unfortunately

we have six deceased. we have transported now hundreds of people to various hospitals. sam phillips can give you more details in that regard. we also need to get out information about how people can any of or find out about the individuals who were on the train and to the extent that we have information about them, obviously, they will get that information as well. up phillips is going to come and give you that information and then you will hear from ntsb, their representatives, as well as amtrak, and we will come back with wrap up information and open up to questions and answer what we can answer. everything at this point, 12-plus hours into this tragic event, is preliminary information and subject to change. with that, sam phillips, director of emergency management for the city of philadelphia. sam: there a few things i want to go over. our focus is to gather the

patient data that we have and we are dealing with lots of different types of manifest, one from the railroad and from our hospital community. our hospitals treated over 200 patients last night, and this morning we are in the process of making sure that everybody is accounted for. we have a couple of things we need help with. if you are looking for summary or need information about somebody, please call the amtrak one 800 number. 1-800-523-9101. 523-9101.800- if you are on the train and doing well, please call and give the data to amtrak so we can link that together. we have a friends and relatives center open at 3400 frankford avenue. we will keep it open for the bulk of today but we will be transitioning to a full family

assistance center operation that amtrak will be running and that will be located at a hotel in center city. more information will be coming on that. please share information on this so we can do our job in make sure everybody is accounted for. thanks. mayor nutter: thank you, sam. sumwalt will now speak. robert: thank you. my name is robert sumwalt and as mayor nutter said i'm a member of the national transportation safety board. we are members arriving on the scene between 4:00 and 5:00 this morning and we continue to be arriving from washington throughout the morning. certainly, before i go any further, i would like to express our sincere condolences for all of those who have been affected by this tragedy. our sincere condolences and thoughts and prayers go out to all of them. mayor nutter said, we have a

multidisciplinary team who will be looking at a number of issues, looking at the track, , the operationls of the train, mechanical condition of the train, human performance. we are setting up a multidisciplinary investigation to try and understand the factors that led to this accident. in addition, we have brought in experts from the ntsb office of transportation disaster assistance, who will be assisting those family members who have been affected by this tragedy. we will be holding an organizational meeting at noon today. that is where we establish hardest to the investigation and establish our -- established parties to the investigation and establish our protocols. the federal railroad administration will be part of our investigation and we will work very closely with them and work closely with amtrak as well as a city of philadelphia. we will be providing -- my goal

is to provide you with factual information as we have it, and we plan to be able to hold a press briefing later this afternoon. i would encourage you to follow us at twitter, and our handle is @ntsb. my goal is to be able to provide you with factual information as we learn it. said, we willr not be speculating why we are here. we have a lot of work that needs to be done but we will be providing your information as we learned. i would like to thank -- erik: news conference happening right now in philadelphia about the dv helmet night that killed six people. you heard from philadelphia mayor michael nutter. that is robert sumwalt, a member of the national transportation safety board speaking right now. they have not added much to what we already knew that six people criticalple in

condition at every hospitals, 200 people being treated for injuries and other conditions sustained during the accident. that is the latest. we will be right back after the short break.

olivia: what are the stories the finance pros are most interested in this morning? the one that really caught our eye was the first story about the u.s. justice department possibly ripping up a deal that it had already made with ubs. erik, i know this is something you follow very closely. why does it seem like the justice department is backtracking to crack down harder on ubs? erik: well, the justice department has written that this kind of thing might happen. they are trying to narrow the scope of the charges in connection with libor

manipulation as much as possible. the justice department has been holding out the prospect of -- olivia: of ideal -- n-deal, ifno, a no they detect what they describe as recidivist behavior by the banks. we don't know if ubs, as far as the justice department is concerned, continues to do let's like withd things, all the scrutiny it has drawn or something else, or whether this is a breakdown in the talks. what the justice department wants us to reach a settlement with five banks -- ubs, barclays, citigroup, jpmorgan, royal bank of scotland, in connection with the manipulation of this benchmark. thought what was 70 is that the justice department is saying if you cooperate with us robes,l these other p we promise not to prosecute you

for reading libor -- rigging libor. doesn't suggest you that i have found something else? erik: i don't know enough about what they have found. when it does demonstrate is that the justice department, as was the case with j.p. morgan and other banks, is taking an extremely hard line and giving the banks themselves very little room. we saw it happen with bnp paribas, with credit suisse, for example. olivia: one more sign for shareholders, who knows what the real costs of regulatory risks and finds be for these guys? still ahead, water is our nation's most precious resource but we pay less for it than any other utility.

welcome back to the bloomberg market day. i am olivia sterns. u.s. equities are broadly higher

at this hour, holding 2 days of losses. .3%.00 up by points right now, amid a flurry of mergers and acquisitions on wednesday. we have breaking news on crude oil inventories that are coming out in just a moment. those will be the weekly numbers for those of you -- heading out to julie hyman with the numbers. julie: crude oil inventory falling by 2.1 9 million barrels , according to the energy information administration. uild ofecast was for a b 250,000 barrels. 2.1 9 million barrel drawdown in oil inventories, which is a big deal here. you think it would be good for oil prices as the perception is that the oil glut is abating. this would give fuel to that.

you can see what is going on with oil prices. essentially a spike up in the oil prices. already this morning we have seen oil prices rising for the second day in a row. it looks like right now we are getting even closer to $62 a barrel. as for the other inventory numbers, we are seeing distillate inventories, lower by 2.5 million barrels. gasoline inventories down by 1.1 4 million barrels. olivia: thank you so much, julie. bullish sign for crude there. west texas crude closing in on $62 a barrel right now. still the come in the next half hour, much more, including bank of england governor mark carney. he says any u.k. rate increases will be gradual. more on how markets are digesting his comments. is one of thedeal

many multibillion-dollar acquisitions on hump day. wymore m&a hand-checked happened to be happening at sony is selling $1200 walkman? look at possibly make it worth that much money? -- what could possibly make it worth that much money? we will have one live onset. on average you americans are paying $2.67 for a gallon of gasoline. compare that to a gallon of milk. $3.46 for a gallon of milk. if you were to buy a gallon of coffee -- if you bought it by the gallon -- it would cost $15.60 for good old-fashioned brewed coffee at starbucks. youllon of latte would cost $40. but for water you pay less than one penny per gallon. that is far and away the cheapest utility out there. and this at a time when our water infrastructure

desperately needs updates and repairs, to the tune of $4.8 trillion over the next two decades. that is how much the american society of civil engineers says we need to invest in our water infrastructure system to make needed repairs. all of this breaks the question, should we be paying more for water? joining us is susan story, president and ceo of american water works, the nation's largest publicly traded water company. thank you so much for joining us this morning. why should we be paying more for water? susan: good morning, olivia. water is the best deal that we have today. when you look at americans and the amount they pay for utilities every month, 1% of their total bill or 10% of utilities go to water. but we do have a problem. there are two major issues in the country. what is water supply, which we are seeing in california and texas especially, and the second is aging infrastructure.

a big part of the wastewater system that we have in this nation was built, some of it in the late 1800s, early 1900s. it is being replaced at a rate of once every 250 years. we can't continue that and have the clean, safe water that we have all come to rely on in the decades. olivia: this is bloomberg tv so a lot of our viewers will be watching this and talking about why are we setting prices? point is in setting a higher price for water -- why isn't it the market setting a higher price for water? susan: part of it is we have not recognize the true value of water. it is 84% municipal government entities and 16% investor-owned. we have not over the past several decades made that investment. water is artificially low. now that we are having to make additional investments in water and wastewater, we are going to

start seeing increases in those prices. it is up to estimate those price increases affordable for our customers but they will have to go up if we continue to invest in the infrastructure to keep the water supplies we have today. olivia: i was researching this segment and i saw interesting stories about how the water rights particularly in california, where they are drought, from a severe dates back to the gold rush and maybe we have to update the laws around water as a public utility. why aren't americans more comfortable talking about charging for water? of the shoesk one around the value of water is that we see it fall from the sky as rain and we think, well, the rain is there any earth provides tap.nd it comes to our what we don't think about is the fact that we have to take that water and treat it and you have to pump it went it is there to turn the cap on. there is not an estimation of the actual cost of treating and

moving the water so it becomes as convenient as it is for everybody today. you brought up a great point about the value of water especially in the west. what we seeing especially with the drought in california is a more accurate value of water, especially when there is scarcity. ofoperate in several areas california and we for years promoted conservation in terms of having drought-resistant landscaping, water efficient appliances and equipment, but tiered rate is a schedule to more you use, the more you pay. olivia: particularly now that the governor has told them that they need to cut back deliberately and spend less time in the shower. susan, a lot of people who are also concerned about the water supply, as you are, are very wary of fracking, but american water sells water to the fracki youcompanies could why are

supplying them and why are you not worried about the potential threat fracking poses to the one supplied? susan: that is a great question, olivia. we insure the quality of the water supply. is only one supply the supply side. we are not involved in the produced water as a result of the water that comes back up out of the wells. but we are supplying water. the wonder that we supply, because it is treated -- the drillers can avoid putting additional bioscience or chemicals because the water does not cause algae growth and they don't have to treat the water as if it is raw water. second, we are able to ensure that the supply of water is not contaminated because it is out of our water supply that we supply to the regulated operation. the third thing is that by us building the water pipeline we are able to take trucks off the road. rather than having all of these trucks haul water to the site, we estimate at least three truck

lines in pennsylvania reduces the truck loads over the life of those wells. we think that for us, the environmental reputation is critical. the sustainability of water supply is one of the most critical responsibilities that we have. and we know we can do this in a way that ensures that the u.s. is a leader in energy but that we also are protecting our water supply. quickly, almond mi lk has become a lightning rod for the water's mismanagement in california and the u.s. do i need to stop dragging almond milk --drinking almond milk? susan: no, we just need to be smart. we need to do more desalination and more water recycling and reuse for things that don't require potable water. by doing that together, we can find ways to have the water supplies we need. olivia: or maybe almond milk

just needs to be $50. susan story, thank you for your time, joining us from philadelphia. maybe merger monday should be called merger wednesday. we will explain why the conventional wisdom on wall street may not be accurate. activist investor nelson peltz failed in his bid to secure a dupont board seat. he will be joining us next. ♪

olivia: welcome back.

we are about an hour into the market day and it is time to get you caught up on the action around the world. let's head to europe. my friend jonathan ferro has a look at how the markets are trading. jonathan: olivia, good to see you. let me give you an idea of where stocks are trading ahead of the close. up a quarter of 1% but the dax is starting to turn lower. german gdp out earlier, missed on expectations. you just see as we go into the close, starting to roll over, down by .7%. same for bonds. stocks have been taking their cues from the bond market. that correlation, tightest since 2013. same kind of story -- stocks rolling over. yields just starting to come higher. 0.68%. the yield on the german 10-year. look at the fx market. stronger euro is the story did the of the u.s. retail sales

global to show you what it means for europe right now. euro-dollar, up 1% against the dollar on the single currency. guess where retail sales came out? roundabout here. weaker dollar, stronger euro, that is the story in europe. julie, over to you. julie: thank you, jon. the retail sales came in worse than economists expected and adding to the recent economic reports that have also been negative. it seems as though for right now it is the bad news is good news scenario in that the negative economic data it would allow the fed to remain on hold for longer. stocksthat said, u.s. are up but not by much. the dow just gaining 19 points. the s&p is up by .2%. if you look on over in the treasury market, you can see the effect of the retail sales report as well. he had been seeing the yields trend lower although a bit of a

bump up now. yields have been trending lower for much of the day. you heard jon talk about the effect we are seeing on the dollar. not just weaker versus the euro, but against a basket of currencies as well. you see very clearly where that retail sales number came out. we saw that decline in the dollar. olivia? olivia: clearly the dollar taking a dive on the disappointing retail sales. want to head over to asia, where toyota and nissan are expanding their recall to 6 million vehicles as the airbag crisis deepens great david ingles filed this report from hong kong. japanese carmakers nissan and toyota announced what looks to be another round of recalled vehicles which have to do with these faulty toccata airbags. 5 million is from toyota. we're talking vehicles between march 2003 and 2007. 30,000 models.

nissan, not a lot of breakdown, but 1.5 million cars, mostly in japan. all of this comes on top of the 17 million vehicles already recalled over the fall the rx. olivia: now let's get a quick check on the asian markets. the shanghai index holding the biggest three-day rally since january, this after a whole host of data came out of the chinese economy coming in below expectations including disappointing industrial output and disappointing retail sales. here are some of the top stories crossing the bloomberg terminal this morning. closing arguments are being presented in the dzhokhar tsarnaev case it prosecutors say he isn't sorry for the boston marathon bombing and should be executed. the defense will ask jurors to spare his life, blaming his brother for leading him astray. one of their strategies is to tell jurors how terrible his life will be in maximum security

prison. millions more cars have been recalled because of faulty airbags. toyota and nissan added 6 million to the global recalls. all of the cars have airbags made by me takata corporation. deaths and more than 100 injuries have been blamed on the faulty airbags. prince harry going native on a visit to new zealand. the oil is visiting the largest military base in the country and quickly learned the traditional maori dance. out, and as, tongues deafening noise. harry had only 20 minutes to learn the dance. clearly he is a quick study. it is a traditional warcry traditionally performed for battles but today offered up for a welcome to distinguished guests or to acknowledge great achievement. impressive. those are your top stories for this hour.

wednesdays, it seems, the new merger monday. wednesday september biggest dea -- wednesdays have become the biggest deals day of the week. why have mondays become relatively sleepy for our deal reporters? our correspondent joins us on set. this is incredible that why are all the big deals getting done on wednesday? it is incredible because we always refer to monday as merger monday and you think the rest of the week be quiet. this year has been completely different. we are heading for potentially record m&a volume and the rest of these deals are being announced on tuesdays and wednesdays. yesterday we had verizon and aol. there is not a clear explanation for why this is happening but there are theories out there. markets have been so volatile this year that monday is a good day to assess the week and see what it is going to be like.

thought it wass that over the weekend that is when you could really make young bankers for the nose to the grindstone. tara: absolutely. maybe they are appreciating the weekend now. . olivia: what other trends are you seeing? maybe more deals are being done but the transactions still favor monday? are stillthe deals being done on -- biggest on wednesday. olivia: sorry, the deal value. monday is still way in third place and it is interesting that on friday we are seeing activity because that is the day that companies usually try to bury the bad news but now we are seeing deals left and right. the pharmacist has been so busy this year. they are so messy that it is not private discussions and friendly talks behind the scenes and then 2 companies coming out with the

agreed-upon transaction. it is bidding wars and a lot of back and forth. the timing is very unpredictable with these deals right now. olivia: how is 2015 stacking up to 2014? the deals are very high but you had it for -- verizon agreeing to buy aol and an out -- and now danaher. is it just my imagination? tara: it is not your imagination could we could have more just with what oil prices have been doing. heinz, a big merger. both of those were announced on wednesday. over $1 trillion in m&a volume. assets were close to surpassing sawrecord in 2007, when we $3.4 trillion. pfizer announces something really big, astrazeneca, let's say, we could have a record year. olivia: is that your

expectation, that we will see more megadeals? tara: definitely not done. olivia: thank you so much. still ahead, sony's new $1200 walkman. why on earth would you want to buy it? we will have one here on set and tell you why. ♪

olivia: welcome back. i am olivia sterns. it has been more than 35 years since the sony walkman debuted and became the must-have accessory of the 1980's and 1990's, but then the ipod came along and the walkman went the way of the vhs tape and boombox. now sony is looking to bring it back. if you want it, it will set you back $1200. what does that buy you? 60 hours of playing time

and 128 gigabytes of memory. stephen, why is this possibly worth $1200? what sony is saying is that it has the same components as the high-end stereo has. that is true. when you first turn it on, it tells you to leave it on for 100 hours to let the components warning. but in reality, it is a portable player so you are taking it out and you are on the subway and in coffee shops with it and in that environment, it is hard to tell the difference. olivia: why don't i just spent $300 on killer headphones and listen to my ipod? that is what i would do, but if you are obsessive, this lets you play files that your iphone can't play, 10, 20 times better than what you get on spotify. olivia: is the quality that much better?

stephen: the quality is great. you really can hear the difference. and i was solely mealy me to be. but then the problem is i took it outside. olivia: if you just have -- i don't know -- stephen: i agree, i would go for upeally amazing home set over something like this, which would not set you back more. olivia: is there a real market for these devices? hi assumed that the iphone had just crushed any portable device market. stephen: i don't think it has cost of the market entirely but makers of these dedicated devices have had to do something like this and go high-end. it is not just a dedicated music player, it plays music differently and better and kinds of music files you cannot play with your phone. olivia: so smartphones haven't just killed -- stephen: not on the premium site. for many consumers, absolutely. olivia: who is going to buy this? stephen: i think this is going to go to the audio file --

audiophiles, people who are hard-core into music and are willing to rip it off vinyl that off of cd. olivia: and perhaps you can play the new jay-z service offering high-quality files. stephen: it is based on android and you can download apps and stream music to it but you don't get the most out of it unless you play these very expensive, limited -- the operating system on it -- olivia: i am not going to download the spotify app. the whole point is to download of high-quality track -- stephen: you can do either. but i would agree with you. if you go for a device like this, it only makes sense to buy the higher-quality music. olivia: thank you so much. still ahead, a war of words

between the u.s. and gulf airlines over subsidies. we will hear from the president of delta airlines next. ♪

olivia: good morning. it is 11 a.m. in new york, it :00 a.m. in san francisco, and 4:00 p.m. in london. olivia: dogfight.

the biggest u.s. airlines want to keep mideast carriers out of american airports. they say they are getting illegal subsidies from persian gulf companies. we will hear from the president of delta next. olivia: good morning and welcome to "bloomberg market a." i'm olivia sterns. i'm pimm fox. let's take a look at u.s. equity prices and see how they are performing. moving higher. the s&p 500 -- basically unchanged, 2098. the dow down 14 points. let's take a look at the currency markets and see how the dollar is performing against -- there it is -- the dollar index stock e