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 price about .9%.

the pound sterling also moving higher. the dollar hitting a three month low off those retail reports. let's get a look at top headlines. we start in philadelphia, where investigators are trying to figure out what caused the deadly amtrak crash. they have now found the train's black box, which may provide clues. at least six people were killed, 140 injured when the train from washington to new york ran off the rails. for the first time since founding transfer management, nelson peltz has proposed splitting dupont in two for more shareholder value. in an interview with bloomberg tv earlier this morning, the dupont ceo was not claiming victory. me it was about the future

of the company, and how do you create the greatest shareholder value going forward. shareholders have been pleased with the changes we have made at the company and the changes we are on the verge of making. substantial value has been created for you upon shareholders. shares of dupont are down more than 6% today. the second quarter started on a week note. retail sales showed no gain last month. that follows a revised gain of 1.1% for march, and that was the biggest increase in a year. seven of the 13 major categories showed increases, but there were declines among items such as furniture, and electronics. is hostingdent obama a summit at camp david. one of those not in attendance is the king of saudi arabia.

the price of oil is rising again today. this morning, the u.s. government reported oil stockpiles unexpectedly shrank last week. it is the second week in a row stockpiles have gotten smaller. is up $.30 since hitting a six-year low in march. president obama has to figure out how to get the asian trade deal back on track in the u.s. congress. senate democrats teamed up to defeat a test bill on the agreement related neither republicans the 60 votes they needed to advance the bill. senator bernie sanders from vermont says most americans would not benefit from the trade deal. senator sanders: the trade agreement pushed by corporate america, pushed by wall street, pushed by the pharmaceutical youstry are very good if are the ceo of a major corporation, but they are a disaster if you are an american worker. majority leader mitch

mcconnell says he would work to bring the measure back for another vote. he is seeking support to put pressure on the democrats. and a hawaiian island will be bytually closed to visitors order of larry ellison. the oracle chief executive bought 98% of lanai three years ago. now he's shutting its two main hotels. he wants to make the first economically viable 100% green community, according to the bloomberg billionaire's list. he is the world's seventh richest person. those were top stories this morning. olivia: that is a pretty bold move. cannot go to lanai. coming up in the next hour of "bloomberg market day," lots you do not want to miss. we look at the upcoming changes at the top of the tech giant. what will cisco look like without ceo john chambers?

pimm: middle-class is a favorite term of economists, but there is no one set definition. bloomberg takes a look at three different versions. $101 million raised last night. we have a recap of the annual robin hood data -- robin hood gala with stephanie ruhle. pimm: matt miller spoke to the company's president and asked about the war of words between u.s. and gulf carriers. he joins us now. t: what is most important to shareholders is that delta is buying back $5.52 billion worth of shares, raising its dividend as well. this is a company that for a decade, up to 2007, had $58 billion in losses.

went bankrupt, in fact. enough moneymaking not only to buy new planes and invest in the industry, but also to give back money that is a fairly strong sign that the shares are up 22%. olivia: what is their case against the gulf carriers? a few months ago, delta and other carriers came out and said the gulf carriers, the big three in the middle east, are essentially getting massive subsidies from the governments that own them. $42 billion worth of subsidies. they documented it quite well. carriers came back through one of their sort of lobbying groups with a wikileaks document that showed a congressional report that u.s. airlines have gotten 155 billions of -- $155 billion of subsidies over the last hundred years. listen to -- 10's -- listen to bed bastion --

>> it is totally false. we are the most heavily taxed industry in this country. we pay over 20% of our revenues in taxes coming out of our pockets to fund the government and the faa and all the investment in infrastructure. it is certainly not true. >> i think it was ted read from forbes who made the argument that the airlines have given the u.s. government back to hundred $50 billion over a similar time period. our u.s. taxes part of the problem that is holding you back? your gulf to patterns do not have to face hurdles. >> taxes are a big problem, and we are making people aware of the tax burden put on one of the largest drivers commerce in this country. >> one final question. lines --f qatar and qatar airlines, maybe he slipped a little bit with his words, but how do you defend richard anderson gekk?

>> richard is one of the greatest employees and leaders that we have had in this industry as far as integrity. he is on the forefront of change. with 80,000 employees, he is a top-notch leader, and i am always with richard at employee shows and world events. i have never seen anyone have other than the highest regard for richard. what al baker said was that the u.s. carriers got subsidies after 9/11, in response to the $40 billion accusation from the u.s. carriers. to that, richard anderson from delta said i think it is quite ironic that you bringing up -- that you are bringing up 9/11 as an arabian carrier. i am not sure what he meant by that, but it was not taken very

well. very well,go over and al baker responded in kind saying that he thinks anderson is unpatriotic. i think anderson even apologize. baker refused to accept his apology, that i will be speaking to the ceo of qatar and lines at noon today. jim: -- n you can -- what is the scale? we are talking small versus big. delta is massive. qatar and lines will tell you they are profitable. emirates will say they are profitable. olivia: the gulf carriers make bank. the u.s. carriers -- matt: once every 10 years they go bust, and once every 10 years they make money. what they can do is invest in the long term. delta is a much bigger airline. it is the third biggest airline in the world, and as a result it

has a huge fleet and a lot of people complain about the older planes. but it also has a lot of newer planes -- not as many as qatar, right? qatar has a massive investment, it would say, subsidies, some would say, from the government that owns it. it will buy as many planes as boeing can make. ways they are the trying to sway the u.s. consumer. pimm: we have the interview coming up with the head of qatar airways. matt: i am looking forward to it. 12:05, to be exact. pimm: thanks very much. still ahead on "bloomberg market day," cisco reports earnings after the bell. the question on everybody pass mind is, can cisco keep its momentum without john chambers? ♪

thata: welcome them back welcome back to bloomberg market day. pimm: let's go to julie hyman with the biggest movers this morning. julie: there is a lot of action on the individual stocks level. let's start with owens illinois, the best performer in the s&p 500 today. it is the world's biggest maker of glass containers, and it is buying the food and glass troness be true s&p -- the smb. we also have a deal in the oil industry, and it is the kind of

deal that is becoming more common. williams companies agreeing to buy 40% of williams partners for it does not already own 14.8 billion dollars. that simplifies its corporate structure and reduces its taxes. we have seen other oil companies do that as well. williams is trading at a six month high. thee looking at experimental cystic fibrosis combination that should be approved by regulators, according to the fda panel of outside advisors. the sale of the vertex , oneaceuticals combination of the drugs is already approved for use. i wanted to check on the delta stock after it approved that $5 billion stock repurchase plan, up to .4%. finally, a quick check on microsoft three deutsche bank upgrading it to a buy from a

hold, saying it looks relatively cheap in terms of its valuation. the weak pc sentiment is already reflected in the stock price. pimm: thank you, julie hyman. interesting, considering what can your morgan has been doing. top storiesok at crossing the bloomberg terminal. we start in they paul. the search has resumed frame it -- in nepal. the search has resumed for a missing helicopter. it was carrying six u.s. marines and two nepalese. survivors are still being searched for after the second quake in a week. it killed at least 60 people. millions more cars have been recalled because of faulty airbags. toyota and nissan adding 6 million cars to their global recall. all of the vehicles have airbags made by the to cott corporation. 70 million cars from 10 automakers have already been recalled. six deaths and 100 injuries have

been blamed on the banks. the european union plans to go after the criminal gangs blamed for smuggling migrants from africa. after hundreds of migrants died when their ship sank in the mediterranean last month, eu leaders stepped up their efforts . their plan calls for a naval operation that would stop boats used by traffickers. they also want to improve ways in which they track to gain movement. pimm: "the middle class" is a favorite definition -- a favorite move used by economists and investors. but what makes a person middle-class? >> some people argue individuals in the united states making $250,000 a year belong to the middle class. others disagree. but the term "middle-class" is ambiguous. what it means depends on who you ask. let's ask what are some ways to

define the middle class. a 2010 international study to find the global middle class -- defines the middle class as 10seholds that spend between to $20 per person per day. india considers their middle-class to be household that spend at least four dollars per day. in the u.s., an average american spends closer to $95 a day. companies often defined the middle class by looking at purchasing power. in developing countries like india or china, the middle class often refers to people who can afford appliances. in wealthy countries, the middle class can perform -- can afford larger purchases like cars. since the 1960's, the united kingdom has measured a social grade not by income but by occupation. a skilled manual worker is still seen as working class, while a clerk is middle-class, even though the manual worker may

make several times what the clerk takes home. in the united states, where class is usually defined by money, the median income is about $52,000 a year. do notions like these indicate that a $250,000 year earner would qualify as middle-class. but according to a 2010 bdo study, between mortgages, taxes, and childcare, and average family of four in huntington, would have $270,000 of expenses, effectively going into the red. the middle-class is an effective talking point for politicians and economists because it is so malleable. but for settling debates about specific numbers, this ambiguous phrase leaves something to be desired. we will have a panel discussion on the state of middle-class later on in the day on bloomberg tv. you can also read more about these issues on our special series on what it means about --

what it means to be middle-class. the anecdote about the family in was really new york, interesting. one of the articles on bloomberg.com this morning thets out that perhaps greatest threat to the middle class right now is the issue of debt. the average debt of middle-class families currently amounts to 122% of annual income, according to the federal reserve. that is a little bit less than 2008, but it is nearly double the level of indebtedness to income. pimm: it does not even take into account income taxes on earnings . if you earn 250,000 dollars, you certainly do not get to spend $250,000. you are telling me. i also thought it was an interesting distinction, having lived in england for a long time, how class has more to do with the nature of the work

you're doing rather than the income level. in the u.s., it is defined by salary and wealth. class has a different meaning in older societies. pimm: very interesting. well done. come, ciscol to earnings out after the bell today. we will hear from the company about life after ceo john chambers. "bloomberg west" editor at large, cory johnson, with tell us what you need to know. ♪

pimm: computer networking company cisco will report third-quarter results after the bell. earlier this month, john chambers, the chief executive of 20 years, announced he will be stepping down. chuck robbins is accepting the new post this summer. asking whatyone is cisco will look like without john chambers. cory johnson is here with us on the set to discuss.

what does cisco look like? what cisco looks like with chambers is a company that went through enormous change, handled technological change, you could argue better than any company in the history of silicon valley. handleder company has it so well and survive? olivia: ibm. cory: ibm is not silicon valley. they have done better than they have before. ,ewlett-packard, apple notorious face plants. cisco has moved throughout the networking stacks and done really well. all of their competitors have fallen off. but they are facing new interesting challenges. the two things that we are going to look for as we look at this they are going

to battle now. the network does not require lots of new hardware, but what software can break existing devices into pieces so that the network is defined itself with software. a lot of competitors are doing well there. the other thing is, what is new management going to look like? pimm: how are they going to handle the layoffs? they announced that 6% of the workforce will be cut. cory: and that is still ongoing, and there will be more. one of the things that is notorious, people who work at cisco are managers, people who work at the grunt level, and senior executives -- they all talk to me about committees. the lower you are, the more you complain about the committees above you. john chambers announce that he, too, recognized a problem at cisco and reported a boost -- -- it is a problem.

it is a problem that is maybe an opportunity for the company to cut costs so that those layouts can help the g&a line and hurt a lot of people's lives is -- olivia: that is a problem that has 74,000 employees. that is not unique to cisco or a tech company. cory: we have had a long-term ceo, and all the bureaucracies that flow from those relationships -- as flat as they want the organization to be, there are john chambers type people who are not comfortable with the new ceo. the breakup can be disruptive, and we will see signs of that tonight. pimm: i understand china chambers is not -- i understand john chambers is not leaving the company entirely. why is he leaving the ceo spot now? cory: he talked about leaving almost three years ago, so it has been quite a while since he discussed this.

he's old enough, has had a good long run. olivia: what is the number one thing you are looking for? cory: i am wary of new guidance about cost-cutting and what that means for plans, division, and so on. there are signs -- there is no sign they going to do that, this is the kind of time where you might see that. olivia: thank you so much, cory johnson. pimm: thank you, cory johnson. still ahead on "bloomberg market defeats nelson peltz. the reaction from dupont's chief executive is next. ♪

pimm: this is "bloomberg market day ago i am pimm fox. for the latest, let's go to john farrow in london.

i'm going to start the trading day right here in the fx market. germany missed estimates, but the headline number for the eurozone came in line, and the market disrupted that off for the rest of the day. higher against the 1001 -- at 1.1354. look at the dax rollover through the session. higher, higher, higher, we go lower, lower, lower. in european day equity markets in mainland europe, painted red once again for a second straight day. is off by 1.2%. stronger eurozone, stocks slower. euro gets stronger as stocks rollover.

the yields higher on session, up by four basis points with the yield on the 10 year of 0.1%. back to you. thank you very much. let's take a look at top stories. the second to a weak start. retail sales were little changed in april. americans were reluctant to spend last month, all the restaurants, bars, and online merchants posted gains. sales fell at auto dealerships and department stores. another report shows the cost of foreign-made goods unexpectedly fell. the relatively strong u.s. dollar is making foreign automobiles and food less expensive. philadelphia, authorities say at least six people died in the amtrak crash last night. more than 140 other passengers were injured. meanwhile, there has been a potential breakthrough for investigators trying to figure out why the train derailed. whatever is comparable, as we

know, often referred to as the black box, has been recovered. it is in the amtrak operations center in delaware for analysis. we have no information from that particular device at all because it is currently being analyzed by the experts. amtrak has suspended service between philadelphia and new york. that stretch is part of the busiest rail corridor in the nation. it is a new experience for investor nelson peltz. for the first time since finding company 10unding his years ago, he has lost an activist campaign. he had proposed splitting dupont in two for more shareholder value. bill clinton knows a lot can happen between now and november 2016, but he is ready to move back into the white house if things break right for mrs. clinton.

he talked about it last night on david letterman. bill clinton. bill clinton: if she wins the election, the chances are 100%. if i am asked. [laughter] david letterman: but you may not clinton saysimm: it would be a good thing for america if his wife wins. those are top stories. the battle at dupont with nelson peltz. we have nelson peltz. he will be standing by for an interview, but we have betty liu of bloomberg news. you have been following this effort to get on the board of dupont and nelson peltz's effort to split the company. rare defeat for nelson peltz, who has launched several activist campaigns in recent years and throughout his career. this might be an interesting he lostwhere he was --

here but he may still be right. if you look at the share price of dupont, it is down almost 7%, pretty much staying at this level since the opening. shareholders themselves are voting down the outcome of this shareholders meeting. it is interesting. you have had plenty of retail investors turning out and voting .gainst nelson peltz and try on that was something that was unusual and not expected. a lot of the institutional shareholders, the shareholder ofvices, came out in favor nelson peltz. it raises questions about how influential these shareholder services will really be in the future. anything that suggests that splitting the company in two would be better for shareholders and holding it together as dupont?

nelson peltz's argument is that it should be completely broken apart. i think ellen kullman has gone a little bit of a step there, where she has spun off the chemical unit. weeksys in the next six that is happening. we now have nelson peltz on the phone, the ceo and counting ian.ner at tr nelson peltz: how are you? betty: i was saying this is a rare defeat for you. you have launched several activist campaigns and won many in your lifetime. but it is an interesting case if you may be right if you look at the share price right now, down about 7%. how are you feeling about that? nelson peltz: the shareholders who really care, the shareholders who do research on this company, those are the ones

who overwhelmingly voted for us. three proxy advisory firms all advised a seat for us, and it was retail in the index funds who went the other way and swung the day. but we willunate, take a watchful eye. we will evaluate what is going on and monitor the company from here on in. but we have done well for our investors. that is important. unfortunately, the market is telling how disappointed they are. betty: nelson, you seem to have the wind at your back going into the shareholders meeting. mcallister was supportive of you, iss came out in support of you as well. that youelf mention talked with many shareholders who also seem to be backing your position. so what happened here? nelson peltz: what happened is

that the retail, there was a big component of retail. getting to retail and retirees is a matter of money and a matter of allegiance, and the fact is that they had the allegiance of the retirees and they had that. funds, wehe index were hoping to get one or two of them. they seem to have all voted -- they are all like-minded in the way they voted. that clearly hurt us. that is where we are today. but, you know, there is a long road ahead here, ready. -- there is a long road ahead here, betty. we are six months away from advance notice provision, we said we do not think the company unfortunately is going to need its guidance.

and we wish that were not true, but we think that is what is going to happen. they will probably overshadow a lot of stuff with one-timers from the spinoffs of come wars -- obviously we will. nelson, are you going to hold on to dupont shares? nelson peltz: we are going to watch and wait. we said we are going to make a decision as we go along and let the market speak. we will see what happens. we have not made any decisions whether we are going to hold or buy more or what have you. happenedving seen what here, and the fact that what is surprising, i think both to you and dupont, that the retail investors came out in force. are you going to change the way you solicit support the next time around? i don't thinkno,

so. i think we did a good job. i think that they beat us in the press. i think they did that. they kept us very much on our backs in the press. but i think that story was told really clearly to the people who do research, the people who follow this company intensely, and they had no problem with what we said, and they wanted change. i think that the market is telling you how disappointed it is that he did not get it. but it is a long road, and we will see how the company does from here. if our prognosis is right that they are going to miss their guidance, then we will see how it goes. but we are here and we are going to monitor the situation. betty: i know you are going to monitor the situation, nelson. both sides, as have been reported, hired an army of people to tell the story. i know you hired a great number as well.

both of you spent millions of dollars on either side. what would you do differently next time around, and what part of this story do you think you did not get right for the shareholders? nelson peltz: i think the shareholders that do work understood the story. i think we could have done perhaps a better job with retail. but, you know, i cannot get into the heads of the index funds. we had our meetings with the index funds, and they all voted the same way, which was sort of surprising. firms alladvisory came out in favor of me getting on the board. so i do not know that we did anything wrong. i think we could have done a little better job, obviously, but if you ask me would i do it again -- yes, i would. ?ould i change a couple things it would be all around the edges.

we made a fair profit for our investors. the stock is up. it was up 50%. now it is up 40 5% -- 45% or 40%. the company wants to take credit for all of that. that is wonderful. that is ok, but now it is up to them to perform here on in. we will see that happens. but the biggest stock movement of the day is the day we first got involved, the day that a white paper came out, and the day that iss came out for us. those are the three biggest days since his management team has been in place, and before today, the 32 quarterly announcements made by the company, the stock was down by an net $12 over this management team's tenure. and then today, add to that $12.

so this was another dark day for dupont shareholders. but, look, it is over. the fight is over. we want to move forward. we want the company to do well. the fact is that everybody understands the real numbers at dupont. everybody understands that the company has got to do the right thing going forward. and frankly, if they do, we will applaud them. betty: you and i have talked many times. it is not fair to just call you an activist. you also are an operator. you know how companies operate. you have studied them and operated many global companies yourself. i am curious if you are going to meeting withk a ellen kullman after this. are you going to seek any kind of medication with management? ellen before i saw the meeting. we shook hands. i said i would like to spend

five minutes with you after the meeting to reach she said fine, and she said she would have somebody come get me an ring me to her. i said terrific. after my speech and after the meeting, my lawyer got a message from her lawyer saying the meeting was off. so i guess they did not like what i said in my speech, or i guess she might have been busy. it is what it is. i hope that she and i can sit down again and talk and understand how we can work together moving forward. it is a lot an opportunity there. if she does, i am willing to do it and make this company great again. we are happy to do that. if not, then we will unfortunately see some of the same. betty: nelson, as i mentioned, you have added value to several companies that you have targeted. you are an operator yourself. it has been pointed out that several of the companies that you have targeted have involved ellen kullman,

eileen rosenthal at kraft. 28 or peltz: three of our 30 campaigns have been with women ceo's since we started our fund about 10 years ago, and if you go back to the 1980's when i first started doing this, the 28 or 30 number increases dramatically. i do not think it is unusual. some of those are high profile, that sort of press talk. we have made peace, and bill johnson is now a director on the board. he is our designee, and he has a lot of respect from me. bill was chairman and ceo of during, and after

the proxy contest, and here he is on the advisory board. ithink irene rosenfeld and clearly have put our differences behind us. i am a director there. the company is doing great things. in a is leading the charge terrific way. , 16 inounced guidance terms of margin improvement. she is more than halfway there, and i could not be happier with the way things are going. she announced a terrific jv. she announced zero-based budgeting. with the last quarterly reports you put out a couple of weeks ago, the stock was up 5%. that is what we think our companies can do. about 60 andepsi hit 100, and it is now mid 90's. a spending more

money on direct marketing then in a very long time. she will be doing great things over there as well. she has my full support. and, frankly, irene has got my full support if she wants it. and if she does a great job, i am going to absolutely rude for her. that is what we want. we do not want to keep running. we want the company to really do the right things. if that can happen, she gets a high five from me. betty: it sounds like -- nelson peltz: so today is a new day, and we want to start seeing the company doing great things. unfortunately, we are worried about the company's guidance for this year, and we would love to be proven wrong. betty: it sounds like you may be back on her christmas card list, given what you just said.

before i let you -- hope she willi send me a box of cadbury chocolate. betty: there you go. before you go, what is your next target? nelson peltz: come on. we have a couple of new investments we are making right now. at the appropriate time, we will make them public. betty: i hope you will make them public with us. great to talk with you, nelson, after the shareholders meeting. nelson peltz. pimm: the stock of dupont down 7.5%. case where he is a loser in this fight, he may be right here with what he wanted. today, theast

shareholders at dupont are losers. thanks very much, betty liu. it's also to nelson peltz, the chief executive and founding partner of trian fund management. still ahead, wall street's annual gala raises a record $101 million last night. ♪

pimm: many of wall street's elite, as well as those in the entertainment industry, helped smash records last night at the annual robin hood gala, which $40ed $101 million -- million more than last year. stephanie ruhle was there and joins me now. stephanie: you know help them lead the charge, the man who cannot avoid a fight and also fights poverty, bill lachman. he walks up and gives a cool $25 million. -- bill ackman.

he walks up and gives a cool $25 million. it broke a record with $101 million. in 2010, they brought in $87.8 million. there is no bigger organization than in robin hood. many are attracted to robin hood but in large part because of the way they invest, because of the way they give. there are so many organizations, you see that money go in and you never see it come back out. so the mindfulness of houston they are about the way they give, i do not think there is another group like it or it -- another group like it. recalling the day that when president obama called the winners -- called them winners of the lottery. last night, paul suter jones and company earned $100 million and they will be educating kids in new york tomorrow.

pimm: tell us who else was there. i know you were there. set the scene. this is at the jacob javits convention center. stephanie: the cofounder said in all his years running it since the beginning, 1988, he has never seen a legislator or government official who cares so much about education. we had oprah in the house, diane sawyer, morgan freeman, david einhorn, bill loeb, bill ackman. they were there. i was there. my partner erik schatzker was there. board funds the entire event. so any money you are giving to robin hood is on top. last year alone, robin hood from the00 million

public and an additional $70 million from their board alone. like to hate on the industry, and we can because those are some really rich guys. money togave a lot of a really important cause. pimm: and there was a $25 million anonymous donation as well. stephanie: specifically for technology and education. number is not even right. it is 23%. if you are in new york, tack on another 14%. it is a private equity, not a hedge fund. pimm: i want to thank you very much. stephanie ruhle, coanchor of "market makers." let's go to julie hyman for details. julie: bloomberg television is on the market. let's to -- let's take a look at the action on the street before we look at what is going on with

options. stocks are very little changed across the board. a lot of reaction to what is going on in the bond market. let's talk more about that. joe of equity armor investments. he is joining us -- there he is. he is joining us from out in chicago. thank you so much. how are you? let's talk about the bond tale wagging the equity dog, if you will, over the past few days. rates are staying under control, at least for today. that has not only been the story of the past few days but for the past five years, really. the correlation of equities and go up,- if you see bonds you see equities go up. if you see equities go down -- bonds go down, you see equities go down. this is exacerbated given the fact that we have seen german

funds so low. when you see deals below 1% on the 10 year in germany, you get exaggerated moves through a normal move for a bond is one basis point. what you see is on any sign of trouble, all of the casual investors get out of the way, up, and we see volatility from all that. julie: will we see volatility continue to take up? >> yeah. because the yields are so low, that is a natural catalyst. maybe right now, for lack of anything else, what the market is following. it is current volatility. having said that, 13.5 on the vix, it is what all the traders are talking about. julie: you are looking specifically at the xls -- what

is the strategy there? >> yesterday i saw a lot of of activity in coal buying, the xls . certainly this investor is betting that as u.s. interest rates rise, it will be a better environment for u.s. banks to do business, more positive deals, more cash flow going in. they are betting on a rally in banks for the summer. -- i think that is a little too speculative. a lot people use options as protection. xlftrategy is to overrate stock by buying it. ♪

pimm: good afternoon. it is 9:00 a.m. in san francisco. welcome to the bloomberg market day. six people are dead after a devastating amtrak crash near philadelphia 140 people taken to

area hospitals and we will have the latest on what caused the accident. investors have 's attemptelson peltz to get on the board. qatar airways extending its -- expanding its routes in the u.s.. pimm: good afternoon. i am pimm fox with betty liu. let's get a check on the equity markets. 2100,ly higher s&p 500 at a gain of maybe two points. dow jones adding three points. qsdaq up nearly a