we will talk to a hedge fund manager betting on crude oil taking a leg down. olivia: shake shack shares are surging in the northeast and southwest. has morerter sales than tripled since january and their ipo. erik: there is a new book about what drives elon musk and the sophie's choice he once had to make between tesla and spacex. olivia: good morning and welcome to "the bloomberg market day." erik: we are 30 minutes into trading on the new york stock exchange. let's take you straight to a look at financial markets. you can see stocks or

hire across the board in the s&p 500 is up by about 10 points in the dow jones climbing. the nasdaq is up by about half of 1% or 23 points. erik: you know what's leading the way? bottom let's turn our attention to what's happening in currencies particularly the dollar. the dollar continues to slide. is dollar index the dxy almost that a four-month low. the euro is gaining strength against the dollar. it was just a few months ago we were talking about the euro dollar parity that seemed a long way off. a one-month chart of the selloff of the dollar, as you can see, it has been pretty steady it may be accelerating a little bit as weak economic data is persuading investors that the fed may have to stay patient for perhaps a little longer than investors

thought. olivia: an incredible turnaround in the dollar which had appreciated 20% from june to march. erik: the biggest move in decades, on the way up and now it's pulling back. olivia: i am still going to france this summer. erik: i'm going to italy. investigators plan to talk to the engineer at the throttle of the amtrak train which crashed. they say the train was going 106 miles per hour, more than double the speed limit before it derailed in philadelphia. seven people died in a crash including a wells fargo bank or, the ceo of an online learning company and more than 200 others were injured. the ntsb says the crash could have been prevented if the track at that portion of the track had been equipped with automatic braking technology. it is in used on most of the track between washington and boston but not that section in philadelphia. the taliban attack i popular guesthouse in kabul left five people dead including an american.

they attacked the guesthouse during a party saturday night and all three were killed by police. the gunman held scores of people hostages for seven hours. this is the first taliban attack on for the billions since they declared the start of their annual spring offensive. in nepal, u.s. marine helicopter is still missing two days after disappeared while on an earthquake relief mission. it was delivering aid in an area hit hard by both the earthquake that struck last month and the one earlier this week. six marines were on board as well as two nepalese. olivia: a new report shows inflation is well under control. at the wholesale level, it felt last month. the producer price index prices fell 4/10 of 1% in april. another report underscores strengthen the labor market. fewer americans than expected filed first-time claims for unemployment benefits. the four-week average hit a 15 year low. thed economic growth in u.s. is causing one of the most recognizable economists to worry about an unexpected downturn.

mohamed el-erian told charlie rose he is concerned about the slow pace of growth in the states. there is a recent report showing weaker than expected retail sales and first quarter gdp 2% and that has given him cause for concern. mohammed: i don't believe you can run the american economy for another five years at this low speed. something will break. either we will tip into a much better world or we will find that we get even lower growth and then we get financial instability. olivia: he went on to say that he believes the united states needs a 1960's style moon project to spark a new run of economic growth. president obama's asian trade bill is back on track one day after democrats rebelled against the measure. senate leaders agreed on a plan to move forward. the senate will vote today on to related bills that democrats want and then it will vote on the proposal to let the president speed approval of trade agreements.

senator ron wyden called it a smart move. taken together, the bills from a package of trade policy that are going to help our country create more high skilled, high wage jobs in my state and across the land. olivia: many democrats have said the asian trade deal would be a bad one for american workers. they say it will cost american jobs and depress wages. erik: the average american ceo is paid 373 times as much as the typical american worker. this is according to the afl-cio which says he was workers are getting $36,000 per year while the average ceo is paid $13.5 million per year. company's are fighting a government plan that would make them reveal pay comparisons. tim armstrong may be more than $200 million richer after that sale of aol to verizon closes. and has stockceo

options plus he also controls 1.7 million shares of aol and has received $34 million in salary and bonus the past five years. he says he will stay on it aol after the deal is complete. olivia: happy birthday, mark zuckerberg. he turns 31 years old today. he has more billions than he has years. the facebook founder is worth amost $35 billion, it's fortune that increased almost $400 million in the past 24 hours. he became the world's youngest billionaire at age 23 back in 2008. he is currently the 18th richest person on the planet. washington, d.c. sports fans know the agony of defeat this morning. sorry, folks. within the space of 27 minutes last night, they suffered through to play of losses. hawks scoredanta with two seconds to go giving them an 82-81 victory over the washington wizards.

the hawksley that series three games-two. then the rangers scored in overtime to give them a 2-1 victory over the washington capitals in the nhl playoffs. if there is one bright spot, the nationals beat the arizona diamondbacks on a ninth-inning grand slam home run by their rookie outfielder. the baseball season is still young. that is some good news for the nats. olivia: who cares about bright spots for the nats? go rangers. erik: perhaps the producer of the show. coming up next half-hour, olivia: it's not just cars going driverless but we are also seeing big rig trucks without a human driver. sam rover 20 las vegas for backseat driving. erik: investors are hungry for shake shack as their shares are rising. --re is no optimism for them

there is new optimism for them to open across the world. our viewers are finally said -- our viewers finally sick of reality tv after the cancellation of "american idol?" ♪ why wouldn't you want to watch "teen mom" or "storage wars." erik: we will take you deeper into the market with julie hyman. julie: let's change that topic to debt. look at the major averages -- we have all three snapping their losing streak they have been on it has been a three day losing streak. all three averages are up better than half of 1% as investors come back into reassessed the situation. technology shares are the best performers in the s&p 500. a mover that is not going up is

kohl's. the stock fell the most in 2.5 years after seeing same-store sales were up 1.4% last quarter versus the 2.6% that analysts had been anticipating. macy's yesterday missed with its sales as well. it blames that on the west coast port shutdown and the delays from weather. as folks are changing the spending habits, maybe they are spending more on burgers. shake shack could be evidence of that. that company says its same-store same shack sales were up 12% and analysts had only been looking for a gain of 5.1%. it also posted on expected earnings. analysts were not looking for that of four cents per share. those shares have been surging today. we are looking at a lot of biotech companies lately because we are seeing a lot of relief tied to the upcoming meeting of cancer doctors.

puma technologies is falling the most. to aleased data tied breast-cancer drug and those shares are down 18% right now. olivia: thanks so much. are fourck earnings cents? i'm not sure that will do it for the valuation but we will talk about that coming up. shake shack is trading at a times forward3 price-to-earnings. crack onto sprinkle the burger to make it do that. erik: i remember when sycamore trading was trading at that them remember what happened to the company. olivia: what happens if in and out burger comes to the east coast? much more still to come. we will have london's iconic black cabs being run out of 10 i bet you can guess who is to blame. ♪

erik: 1800 jobs are being cut because of shrinking demand. productions being slowed on its biggest business jets. let's not forget that the bombardier jet c series is being delayed. olivia: before he was arrested and accused of manipulating futures prices, the alleged flash crash trader alleges

others traders were doing the same. he complained to the chicago mercantile extent about traders more than 100 times over several years. the last complaint came weeks before he was arrested in london. erik: maybe america starting to get tired of reality tv. amazon subtraction tv services dropping several reality shows including mob wives and teen moms. people say amazon will spend more on original programming and by shows mother suppliers. and by shows from other suppliers. olivia: oil is holding steady around $60 per barrel in trading -- in trading. prizes every bout of is down more than 40% since last summer. where do things go from here? stephanie ruhle is in midtown manhattan for a gathering of some of the top monti's investors in the world.

-- top commodities investors in the world. stephanie: i am here with andaran oil.from -- energy. pierre: u.s. collection is declining and they are ignoring the fact that saudi, kuwait and uae are increasing production. so far, the market has gone up. accounts in the u.s. will go up soon and we will see u.s. collection going back up by october probably. i think we will be in a market where u.s. oil will go up and opec and it will be difficult to carry the price higher.

stephanie: when you see well-known investors say they see that all market going higher, doesn't make you want to change your thesis? pierre: not really, it's about making money. you have to be flexible in this business. it's very complicated. right now, there's not a lot of people who speak about the saudi policy and the fact that they are increasing production. they are increasing production because of good demand but i don't think so. i think it's because they are worried about demand. impactie: how will it oil if the iranian sanctions are lifted?p[ierre: i think it will go down. there could be extra supply within 12 months. that will heat up the market. the market is already oversupplied.

i think it will be difficult for prices to go much higher the short-term. i think we will be in a period of low prices for the next two years before we have a bull market. . that depends on the supply stephanie: help us understand your investing activity. because you predict the oil market to be lower, does that mean you're automatically losing money? how do you prevent the loss? pierre: i tried to make sure i have a symmetry and lose as little as possible when i am wrong and make is much as possible when i am right. there is a lot of trading around co-positions and i always try to understand the different variables that impact prices. sometimes i get out of the market and get back in a bit later. stephanie: now that the u.s. market has slowed down production, do you really we are oversupplied?pierre: yes,

because opec countries increased production and i think demand will slow down from now. there is a lot more supply to come. from opec and eventually iran. stephanie: the price of oil is not just in the news. now there is an attack on the fracking. over a week ago, david einhorn had a presentation calling them mother fractures -- frackers. he says it's time to go negative on names like pioneer. pierre: i don't trade equities i always listen to the earnings call to have an idea of their guidance and to double check my numbers about production growth in the u.s.. helped the industry was

by low interest rates and the fact that they could pump up the money. i don't think prices will go up a lot. i don't think interest rates will go up a lot. stephanie: how does the timing on a rate hike o affected you i don't think it's significant and terms of supply and demand but it's important to look at the impact on the u.s. and stability. we have to follow it but does not seem like we will go to high rates soon. stephanie: what is the number one factor that matters most to you right now in how you are investing? at speculation.

the market is positioned for a v-shaped recovery but i don't think we will have one. we also look at inventory data. you cannot look at only one thing. stephanie: what is your biggest fear right now? i am open-minded and looking at all the information. i am ready to change my mind at any second depending on the data. stephanie: does it become increasingly difficult because of liquidity in all markets?pierre: for now, i have the liquidity i want. the markets are the same liquidity or more than in previous years. stephanie: thank you for joining me. i know you've got more

coming up in the conference. calm, london'so iconic black cabs are in danger of being run out of town on a number of driver recruits are in steep decline. you can guess who's behind this trend. ♪

olivia: what are the finance pros interested in today? here is what caught my eye. push inton uber london. they have their iconic lack tabs which have driven city goers around for a century but they are under threat uber because of. erik: i love the title. uber's blitz on london. olivia: we try for spicy titles. this is a huge issue because black cabs in london are a cultural institution. they call it the knowledge . study for fourto years and no 15,000 streets. it's unbelievable. olivia: applications for people

to take the knowledge exam have dropped by more than 2/3. black cab license applications are down 20% so far this year alone. over the past decade, the number of black cabs driving around london has been very steady. the cap market is different than the u.s. they have this mini cab industry so there was already a more efficient cap. i would argue that the black cabin london offers a different service because it's on demand but also you get a fast lane. it is a designated cap lane. it is a different product. erik: applications are down, a london black cabby, according to our figures, can make 50,000 pounds per year? that's not a ton of money in london but it's a reasonable living. it makes me wonder how much the uber driver can make.

if he can make close to that, it makes sense you want to drive for uber because of the amount of effort required to get the knowledge. olivia: do you need the knowledge anymore? we talk about tech knowledge he. erik: yes, you do. the only need to be in new york in whosee the driver you get in who operates exclusively by gps ends up getting into all kinds of traffic problem's because sometimes the real-time traffic -- butia: that will get better do you need for years to know your way around town with a gps? erik: maybe not quite four years. i still like the black cap experience. olivia: i do to but it's different. ♪

welcome back. let's get you straight to this morning's top headlines. in boston, the jury in the dz

tsarnaev case starts today.ating execution his lawyers say he was radicalized by his brother. shares of coals are trading down more than 10% in early action. they reported quarterly sales that missed analyst estimates. kohl's said sales picked up in march and april after a week february. the stock was up 22% before today this year. fightis a senate floor over phone surveillance by the government. the house voted overwhelmingly to limit bulk selection of americans calling records and many senators both parties feel the same way but the majority leader, mitch mcconnell, does not. program was revealed by edward snowden. the chinese government sent a warning to the u.s. after a chase in the south china seas

print a u.s. ship sailed more islands claimed by china and a chinese ship pursued the ship of the u.s. says the ship was in international waters and china says it's maybe will closely guarded territory. at the looking crash famed brickyard in indianapolis. the driver walked away unhurt. wall and flipped over. he was practicing for the indianapolis 500 10 days from now. castraneva is a three-time winner. tom brady is expected today to appeal his suspension for the deflate gate scandal. he has to file his appeal by 5:00 p.m. today. the nfl suspended him for four games after a report found he was probably aware that patriots employee deflated ball is used in the afc championship. those are your top stories. , much more half-hour

for you including a look at the fx market. the main story is currencies as investors digest yesterday's weaker than forecast u.s. retail sales report. his bold is known for projects like tesla and spacex but he almost had to choose between them. we will explain why and talk about his new book. each worth at least $1 billion have been born this year. how many are really worth the question mark we will ask roger mac and me -- roger mcnamee. i want to look at reality tv because amazon prime services reportedly dropping several reality tv programs. not want to watch them.

is that the answer or is it because the shows are becoming less popular a reality does not have a shelf life question mark pimm: i think the answer to that as questions are yes but it also has a lot to do with a strategy behind amazons instant video service as well as netflix. netflix used also have reality tv shows that were from viacom and mtv and from vh1. they let those laps. se. they want to do more scripted original programming which does not mean that reality tv is going away completely. there are at least two new reality tv programs that have been picked up by major networks. there will be one called " you, the jury" where you get to vote as a member of a jury in a civil case. olivia: scarlett that's frighte. pimm: another one is called "the briefcase" where your given $100,000 and it remains to see

if you keep the money or give it to someone who is in financial trouble. the reality business is changing but it has not been a success lately particularly for certain cable networks that have relied on this. you've got e network and bravo. i know you are a big fan of the shows. olivia: i have not watched any of them. how do these concepts get formed? pimm: "keeping up with the royals"an's" and "the represents the new. versus authentic reality scripted shows. how do they conceive of these formats? the issue for the networks as they have done so well -- i only watch bloomberg tv obviously --

the issue for the networks is that they have done so well with the shows because reality shows are so cheap to make. pimm: inexpensive. they are cheap to make and she to promote because of the stars in them -- and they are cheap to promote because of the stars in them. olivia: even if they don't make royalties. can't wait to see you in 20 minutes. pimm: i will be here. olivia: still ahead, investors are hungry for shake shack shares after a better-than-expected earnings report but our next guest says it needs to do better to justify its lofty valuation. the business of burgers is next. ♪

olivia: welcome back. we are about one hour into trading in the u.s. and let's get you caught up on market action. let's start in europe and go over to jonathan ferro in london. jonathan: good to see you. we are one hour away from the closing europe. we've got session high on the dax, up 1.5%. the cac 40 in paris is up by over 1% as well. the map is painted green and stocks are higher and bonds are higher as well. the yields are lower. the german 10 year yield was .75 percent. 0.6%.es what you're seeing is stocks go and then bonds go and the tightest correlation is the

tightest since september, 2013. thefx market has to do with stronger dollar -- with the weaker dollar. 114 onpe, we go through the euro this morning, 4/10 of 1% stronger. the sterling is a fifth day of gains coming 2015 hi, one dollar $1.57. julie: those dynamics affect the u.s. the major averages are snapping a three-day losing streak. all three major averages are higher right now by at least 7/10 of 1%. we have seen the interplay between the bond and the stock targets. this morning we got producer price index that actually dropped the top line overall number. we are seeing some buying of

treasuries today. that means yields are going down. also, a $16 billion auction of 30 year bonds. in terms of what's leading stocks higher, it is tech knowledge he. the three biggest contributors are apple, microsoft, and facebook. we also have to talk cisco. the company reported its earnings after the bill yesterday in the shares are only up about 1/4 of 1% and is a results were largely in line. olivia: thank you. let's go over to asia were , as we ended the day will show you, in the red. the asian-pacific index retreated from a one-week high after u.s. retail sales field concerns about growth in their largest economy which sent shares in japan lower. one of the big business doors out of asia was the growing crisis over the faulty takata

airbags. is joining his peers announcing a fresh round of recalls because of these faulty airbags. in the case of honda, 4.9 million cars. to light andght now it is north of 19 million cars total. there is a second round of recalls from honda. thousand acura car models has problems with breaks. olivia: here are some of our other top stories -- martin o'malley says he will announce whether he will seek the presidency on may 30. if he joins the race, the former maryland governor would be the third democrat to join the field. hillary clinton and vermont senator bernie sanders have already said they are running. the world'salmart,

largest retailer offer a $50 per year unlimited free shipping service for online customers. that will be a challenge to amazons $99 prime service. walmart says more than one million items from clothing to toys will be available for delivery in three days or less. a change in the drivers seat for uber. presidentdvisor to obama, david plouffe is leaving his position but will get a seat on the board. rachel whetstone is joining the company. the executive shuffle happens is the company is raising a new round of hunting and is seeking $1.5 billion on a valuation of $50 billion. there has never been a week like this in the art world. in new york last night, christie's held its second egg auction in today's. the firm has sold $1.4 billion worth of art this week.

that is the first time more than $1 billion has ever been sold in one week. the sotheby's auction on tuesday took in $380 million. dealers same are wealthy fires all over the world are floating their excess cash into art. those are your top stories. investors are doubling up shares of shake shack this morning after a better than expected earnings report. the stock is holding up high about 5% right now. shake shack has tripled since the company's ipo back in january. how do shareholders justify the price valuation much mark howard penny says they cannot. he is here with us now along with michael haylen. thank you for joining us. why isn't shake shack worth it? you can pick a metric -- market value per store or whatever it is, it's egregiously overpriced. olivia: but they are delicious

so what are investors thinking? what would let anybody consciously by a stock is trading at 773 times price-earnings? michael: everyone loves growth in the food business. they have strong sales and good margins. retail investors see lines out the door so they don't look at valuation. they are just buying the shares matter what the price. there is also a lot of hot money guys that are waiting for a boom and bust situation. 43% of theort and float issue short now which is adding fuel to the fire. olivia: do you think we will see shake shack going bust? howard: yes, i do. go down 60will or 70% from here. olivia: many investors are betting that shake shack will be the chipotle of burgers.

howard: they are the disruptor, chipotle, i don't see shake shack being that. olivia: their fries a really good. michael: and their burgers are good, too. howard: that's my point -- it's not chipotle which is a disruptor. there are so many of those out there. olivia: is the biggest threat in n out burger opening up on the east coast? michael: i know the east coast has been waiting for that for a long time. i cannot really speak the in n out expansion plans. how is shake shack doing outside the u.s.? olivia: does not look like that quite yet. michael: they did pretty well in chicago and las vegas, better than expected. management might be lowballing the estimate and trying to

temper wall street expectations. i think they did a good job of that the first quarter. so far, so good. flagey planted their first in these big metropolitan markets, they may still get $5 million sales out of that restaurant. what becomes more difficult is maybe a year or two down the road and the new restaurants cannibalize the originals, than the average store sales will drop in the margins will drop and growth will slow a bit. olivia: is there a price you would advise investors to buy back in? howard: $30. olivia: clearly that's not where we are now. is shake shack a bigger risk? to mcdonald's or chipotles? michael: it could be a bigger risk to the traditional burger joints. thenis a tougher market chipotle is in. --potle has some tailwind

mexican cuisine is popular. that's the fastest-growing part of our population. consumers want spicier food and even though shake shack has the smoke stack which is fantastic evenpeppers on it, try it, though they have spicy items on the menu, they are the known for that but consumers want spicier food. chipotle has these tailwinds -- there is also the healthy factor. you can go to chipotle and eat healthy. not everyone does but you can. it's very difficult at shake shack. olivia: what do you like in the space question mark howard: i like yum! brands and panera bread. those are two. olivia: what is panera doing well? howard: they have someone that will push them to do the right thing like capital allocation but they are improving the service of the stores in the heading the customer through.

there are so much more intrinsic value in that company that's not reflected in the stock price which is the opposite of shake shack. olivia: do you agree with that? is there more intrinsic value in panera? howard: there may be. olivia: i think we need to go have a burger. much for joining us. still ahead, billionaire businessman elon musk is native -- has made a name for himself in making bold moves of find out how his boldest moves almost killed his baby, tesla, next. ♪

olivia: welcome back. elon musk built his billion-dollar empire by boldly going where no man is gone before. he made his first fortune with paypal and turned his attention to electric cars and space travel heading up tesla and founding spacex. there is a new book out on amazon --" elon musk." it hits bookshelves next week. you can pick up a copy of the latest issue of bloomberg business week for next. ashley joins me now. a very cool book, congratulations. i know you have covered silicon valley for years. what interested you most about elon musk? ashley: i gravitate are companies that make physical things. there were so many apt companies

and startups and when i went to visit tesla, i got intrigued and then i saw spacex that sold me with a rocket factory in the middle of los angeles and it lived me away. olivia: what you learn about elon musk? ashley: i knew he was an intense guy before hand but i got it taste of the intensity from him personally in our interviews and their interactions and from his family and his wives and it wise. -- and ask wise. i got an idea of how passionate this guy is. olivia: part of the book explains nicely how spacex almost killed tesla. what happened there? was going ok in 2008 after a successful rocket launch but developing the rockets was expensive and they had no paying customers. gettings having trouble their first product out the door and were going bankrupt quickly. elon musk was going through a

divorce and he has no liquid assets. he has lost $200 million and is let -- and is down to his last $100,000. i say in the book that he basically thought he would have to pick one company or the other. olivia: he was borrowing cash from friends to make it week to week? to pay as personal bills and borrowing money from tesla employees to keep it going. then he did complicated financial maneuvering and he convinces investors to take another risk in the middle of the recession on electric car company. on christmas eve, 2008, the money comes from nasa and both companies survive. olivia: maybe we most associate elon musk in new york media with tesla. from your book, it sounds that even as soon as he was cashing out on paypal, he had his eyes squarely set on space. ashley: going to mars dates back to his childhood.

he was really into sci-fi and that's what he wants to do. i think tesla is his plan to keep mankind healthy on earth and then space is the exit plan of things go really ron. wrong. olivia: it started with a crazy plan and got weirder from there. ashley: he wanted to do a jester and had this money from paypal. he went to the nasa website and they had nothing about mars. he said this country is full of explorers and we should do something. tosaid i might send mice mars are plans to mars to make oxygen. he wanted to inspire people with a video feed. when he tried to buy rock is coming found they were so expensive and people were shady. he said i will make rockets. olivia: he flew coach to moscow in 2001. give me a couple of anna dotes -- of anecdotes that illustrate to elon musk is. ashley: the spacex is the most

amazing. in the early years of spacex from scratch building a rocket company took six or seven years. these people worked 100 hours per week for years. they had no family life. it was a total commitment. you sort appear this stuff but was not until i reported this that i fully appreciated how he pulled us out of people and how equally committed they are to this mission. you start to see how he does these things. they seem impossible to other people. evaluatee try to silicon valley ceos and there is a tension as to whether they are a visionary. is he a good ceo? ashley: yes, i think there are personality that can burn people out. some people cannot take it anymore and he's and employees. on the other hand, he gets more out of people than just about anybody else.

he sets these amazing visions and people pull it off. he is certainly effective. olivia: is he tony stark? is he robert downey junior? ashley: i was skeptical about that. i have not seen his garage. scotch in ainking humvee in afghanistan but he is a celebrity. he is in hollywood and his friends with robert downey junior and john favreau. other ceos are not in the same vein. olivia: congratulations on the book and great to have you in new york. be sure to pick up the new book that is out today on amazon all about elon musk and is the cover story of bloomberg businessweek on stands today. ♪

olivia: good morning, it is 11:00 a.m. here in new york, 8:00 a.m. in san francisco, and 4:00 p.m. in london.

coming up, an exclusive interview with one of the smartest and most successful commodity investors. --via: and obama's specific obama's pacific trade deal, he does not -- he has not won the trade wars just yet. pimm: the latest blue apron is seeking valuation and there are more than 100 companies out -- thesese days, worth days worth more than $1 billion, can they really be worth so much? olivia: good morning, and welcome to the blooper and -- the bloomberg markets. tmm: let's take a look at