betty: and more information on the speeding train it crashed near philadelphia, the engineer says he does not remember the crash. pimm: and the senate will take a key vote on trade bills today. senators hammered out a compromise after democrats eventually stalled -- initially stalled legislation. we will have the latest from washington. betty: and we will get a preview of the new book about elon musk and about how spacex nearly killed tesla. pimm: all right, let's go to julie hyman at the markets desk for some breaking news on avon, no julie, what is going on? julie: we want to clarify the

headlines that we brought you a little while ago, the company that made an offer to avon it -- offered to avon calls it self however,al partners, bloomberg news has been a calls to this company and has not been able to reach it. there was an attorney listed in these files and a woman who answered the phones at the number given for the attorney says there is no record of someone there or the farm name, we cannot not find any of these firms on google. the company that calls itself ptg, it makes a couple of errors , andt calls itself tgp there has been a decline on the bid. that would have been a 181% premium to yesterday's close. some it looks like this is not necessarily what it seems. theve got a vonn up on

screen behind me here, and you can see that shares are on the way back down as news on this is coming back out, and volatility tends to happen when you have news come out and the stock is swinging back and forth. it is still holding onto gains of about 5%, dies. guys. at thehat is julie hyman news desk, julie, thank you. pimm, that is bizarre, and here are more stories crossing the bloomberg terminal. the cheese and -- chief investment officer at pimco is going to depart after helping liquidate three investment strategies at the farm. -- firm. ceo says he will direct the transition and oversee and orderly liquidation. investigators are planning to talk to the engineer who was at

the throttle of that amtrak train that crashed. investigators say it was going over 100 miles per hour when it crashed, which is over double the speed limit. trying toer recalled reduce speed before being knocked out by the crash. crashsb says this highlights the need for positive train control. >> we have called for positive train control for many, many years. it is on our most wanted list. to bess has called it installed by the end of this year, so we are very keen on positive train control. based on what we know right now, had such a system that installed in this section of track, this accident would not have occurred. takingthe automatic technology has already been installed on most of the rail line between new york and washington.

president obama meets with the leaders of six persian gulf countries, and they meet at camp david in maryland. they discuss iran and its nuclear program. saudi arabia's king will not be there but other leaders will attend. the white house says his absence is not a snub to the white house. obama is president getting another chance at the asian trade bill today. senate leaders agreed now on a compromise. the legislation would give the president authority to fast-track approval of the asian trade agreement. but first, the senate will first vote on to bills that the democrats actually want and then senate leaders will bow on the trade bill. senator ron wyden says it is a smart move. it is a package of trade policies that are going to help our country create more

high skill and high wage jobs in my state and across the land. the: many democrats say deal is bad for american workers and they say it will cost jobs and the press wages. and those are some of the top stories at noon. up in the next half hour, carson block talks about the money practices of noble group which may compare in some ways to enron. we will have a live interview coming up with him in just a few moments. new book on elon musk is facing a lot of publicity and tesla.cex almost killed pimm: and the democrats are voting to give president obama control over the asian trade deal. we will have the latest from peter cook, he is live in washington. and research groups are pressuring to make stocks more

transparent. block, the head of is talking with stephanie ruhle. before we get into your specific details, i want to talk about shortselling. just last week, i was speaking thatll ackman, and he said shortselling is great for markets, but it is not a productive use of time. what do you think? word rain used the damage, and it is funny, because i used the same word to describe how difficult it is to publicly sell stocks. notdo the work, and i am passing judgment on herbalife,

but you do all of this work and you know you are right, you have comeconviction, and you out and be to the market, and you get attacked, left, right, and center. that is brain-damaged. you have to have thick skin to do that. saying thatre you shorting is not going to be the muddy waters way of the future? way that we do our research is really about shortselling, and we don't like to prognosticate on the future. we are generally looking backward at information that the company has released. question of, can or should this information be reinterpreted or interpreted differently than the market is doing it? so without long, that was possible, because that was a long, that- with our because that was a

situation where it was more conducive to shortselling rather than long buying. do you look at that short and say, this just isn't worth it? there was a question of sovereign wealth funds and they are not necessarily commercial commercialrs -- investors, but noble is not really our fight, it is something that has been on the radar for a couple of years. a have started researching it couple of years earlier, and we had our conviction at some point. employee writing critical research and began distributing that publicly, and some of the research that we had done was additive to that. it and published our view and said that we think this is a very bad company.

stephanie: we saw a 30% drop in first-quarter profits. carson: it is kind of funny, that hasith a company stakes in that it is financially engineered, you don't really know what the underlying economic health is, so they were able to engineer better profits, so that says that its core business is deteriorating. but i think it has been pretty bad for a few years. they have been able to paper it over with financial engineering. stephanie: larry fink was saying good forting is not the broader economy and companies are hiding under their desks and hoping the activists don't come knocking. carson: you consider two kinds of activists. i am personally not a believer in the financial engineering kind of activist who says buyback, issue debt to do it, i think that is extremely short-term.

i don't think that is helpful to the economy at all. but there are companies that have functional boards and managements that are dysfunctional governance. and when you have activists come in and hammer away at that, i think that is very healthy for the economy. it is really about what the individual activist investor and what their even -- what is their egthothos. in terms of shortselling, could you end up changing your tune? does noble see you as a threat and could you actually go from a short to a long? is funny for noble, and to as a question, in theory, yes, we could go from a short to along at a certain price. noble is not going to be the case. noble says it is improving transparency.

they are not releasing anything that is substantive in terms of information. it is frustrating but typical to watch. analysts are typically tour typically cheerleaders for the company, and this is meaningless data. this is not a company that is becoming transparent. i do believe if noble did become suddenly transparent, they would dump the stocks and the bonds en masse, and they can't do it. do you think this is helpful for the research? carson: there are two types of theses that we come up with, if we have a thesis where they are financially fraudulent, that does not require as much as an understanding, because we just say, these numbers aren't real. but if it is something that is

more nuanced where we actually have to say, this is why we think this company is a bad company and a bad investment, arehere is why the polls wrong, so this is about the sell side. about an hour, you're going to be taking my job, so what is the one thing you want to know? carson: do you have any tips for me on that? stephanie: you can't touch that. [laughter] carson: i believe jim is very rosy on china, so i would love to talk to him about his views on china. i think the big question is, with all the data coming out of china is so bad right now, what does he make of that? there was news that came out just moments ago, about being a possible takeover target, and avon is massive in target -- is massive and china.

given what huge market they have in china, they would be a huge target? carson: we are not doing atdamental-based shorts, so this stage, i have no reason to believe that avon's china numbers are not accurate, but maybe it is worth a look. is worth amaybe it look, carson, thank you so much, i'm am going to send it back to you. dallas stephanie ruhle interviewing carson block of muddy waters. insidee are going to go the mind of elon musk, next. ♪

pimm: welcome back to the bloomberg market day, i am pimm fox. betty: and i am betty liu, so let's go out to julie hyman. julie, you are monitoring this a fun situation. it -- this avon situation. it looks like they are up right now? julie: they are, but there is a rally, and it is a pretty wrought based rally. -- broad-based rally. we are watching what is going on in the treasury market today, we had a measure of wholesale inflation fell. at backing outk food and energy, all of the things that the fed likes to back out, we are seeing it yields as a result go lower. at three .06%,ld

and by the way, the treasury is going to be auctioning off the 30 year bonds today. let's take a look at the dollar as well. some selling has abated but the dollar is heading for a fifth weekly define -- decline. those inflation numbers today not helping matters there. you can see it is trending up a little bit on the day from where it was earlier. finally, i want to check on oil prices. yesterday, the reason was the big drop in oil refinery activity in four months, so what does that mean for crude demand? it looks like we are still falling for that reason today, they are still questioning the demand for crude oil. betty: who knew that a could be so sensitive to inventory, thank you so much, julie hyman there. and now to a book that everybody is a zine about. -- buzzing about. the book on elon musk hits

bookshelves by our very own vance.man -- ashlee gave us aday, ashlee peek into silicon valley's most interesting under for newer -- interesting onto per newer -- business leader. ashlee: he think that spaces where things should go to, and that is his passion. do anally, he wanted to gesture, he had all this money from paypal, he went to the nasa website, they had nothing about mars. so he said, i might send some mice to mars, or send some plants to mars to get them to

grow oxygen, or get them to buy some rockets to make this happen. he was dealing with her so shady, so he decided he was sent whoever he wanted to so he- were so shady, decided he would send whoever he wanted to mars. about howll us more it was killed tesla -- how it almost killed tesla? ashlee: it is a very interesting story, the spacex story, these people worked 100 hours per year, but it wasn't until i reported this where i really appreciated how people committed to this mission and you start to see how he does these things that are other silly -- otherwise silly or impossible. when we evaluate these

silicon valley ceos, we always try to figure if they are an effective ceo. what did you learn about his management style? there are parts of his management style that can burn people out, and some people say, i just can't take it anymore, and he is hartline employees. he has amazing vision and people pull it off, so he is certainly effective. is he robert downey junior's tony stark? ashlee: yes maybe a little bit. olivia: have you seen his garage? : i don't like was in there drinking scotch, but he is friends with robert downey and john favreau. he is hollywood. he loves it. betty: i love some of the quotes that have come out from the

book, from ashlee vance's book, is justine musk, his ex-wife, saying "i do think of him as the terminator. he locked his gain on something and says, 'it shall be mine.' me over.", he won it almost sounds like a caveman knocking a woman on the head and dragging her into the cave. pimm: this is something that i think is revolutionizing the way that is taking place and the way that people think about big project being done by the private sector. betty: indeed, that is a great book, by the way, getting a lot of buzz. pimm: all right, still ahead on the bloomberg market day, the fight over free trade. now a key vote looms.

we have the latest from washington, next. ♪

the u.s. senate is going to take a key vote this afternoon on whether to advance asia trade legislation. stall theinitially bill, which would have given president obama to fast-track trade deals, such as the transpacific partnership. joining us from capitol hill is bloomberg chief washington correspondent peter cook. peter, does obama have the boast that he needs now? peter: no, but he has until 2:00, but it is expected he will get the votes that he needs to fast-track that. are in the transpacific partnership, and also, perhaps later in the administration, perhaps a european deal. it looked when he is on the way

to preliminary votes happening. democrats insisted upon being part of the entire legislation or else they would not bring those votes forward. this is more symbolic than anything else and then we are going to see the final vote at 2:00 this afternoon. a final vote in the senate will happen next week before they head out of town. betty: peter, what about the house? what is going to happen there? peter: that is still he? , we heard from nancy pelosi highlighting -- that is still a we heard from nancy pelosi today highlighting the problem. this is why the tuesday vote in the senate was such a surprise. and ais still a challenge house, but it looks good for the president, in terms of getting this done. but we are not here yet, betty, and there are still some

curveballs in the house, and even john boehner said this but would not happen next week. perhaps in the weeks to come? pimm: we are going to be watching this, this is it for me in this half hour, betty, what is up for you? betty: coming up in the next half hour, stanley druckenmiller is hammering away at an aging u.s. population, and investors are dragging their feet and he thinks it is going to bankrupt this country. what are we going to do about that? don't go anywhere. ♪

[beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place ♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight betty: welcome back to the bloomberg market day, i am betty liu. lipstick a look at the top stories across the hour. -- let's take a look at the top

stories across the hour. amtrakth toll from the crash outside of philadelphia has gone to eight. doublein was going to the speed limit, and the engineer's lawyer said he was trying to reduce the speed before dean knocked out in the crash. the ntsb said this calls for the need of what is called positive train control. >> we have called for positive train control for many, many years. it is on our most wanted list. congress has called for it to be installed by the end of this year. we are very keen on positive train control. now, on what we know right we feel that had such a system that installed in this section of track, this accident would not have occurred. betty: the automatic braking technology has already been installed on most of the railway between washington and boston.

inflation is under control, here. inflation unexpectedly fell last month, and it dropped 4/10 of a percent in april, and the big reasons were lower energy and food prices. toer americans can expect file a first-time claims for unemployment benefits. they reached another 15 year low, so things are going well, it seems. and the voice the hind the dastardly billionaire montgomery isns on "the simpsons" leaving the show. harry shearer tweeted this information and has been with the show since 1989. fox is renewing this show for its 27th and 28th season. wow. i have not been able to watch all of those seasons, but i am certainly a "simpsons" fan.

and i'm going to be talking with richard dobbs, author of the book "no ordinary disruption." and we're going to figure out why retired general wesley clark is being called the penny stock general. and we get a preview of emily chang's interview with kim dotcom. we have a preview of that interview, -- preview of keeping up with kim kardashian, we have a preview of that interview, coming up. and with us now is richard dobbs, a co-author of a new book whichdinary disruption," points to global trade as one of the most significant issues facing the world to drain -- today. richard, thank you so much for joining us this afternoon.

this deal, which almost fell apart a few days ago, the president said this is going to be good for america. there is a huge chunk of the american population who does not believe this. trade has -- richard: always been good, think about your flatscreen tv, your three shirts for a dollar on walmart. by 2025, we will be at 4 billion consumers, people who are buying. the real question is, our american companies going to be selling to them a, or are german companies? betty: are they? richard: when we look at exports, the u.s. has done less well than other european companies -- countries. part of the challenge is, how can the u.s. step up and do this?

this is also not about large corporations, the really interesting thing now is the rise of platforms like amazon and alibaba allows these companies to trade. you can sell to china as a small enterprise somewhere in the midwest. so trade is good for small companies now, too, because they are able to sell through these platforms. think the prevailing view and there is certainly quite a bit of evidence is when you open up trade it is bad for labor here in the united states. it means lost jobs. richard: it might mean lost jobs that it might means a better economy as well. but also, there is the opportunity to export. betty: but when you say export, the thing i think of is china. it is not just china,

it is indonesia, it is korea, the middle class in korea is very big, japan, all of southeast asia. who is selling to indonesia? is, are they going to be buying from other asians or american corporations or german corporations or british corporations? course, if we, of have this boat. -- vote. you talk about indonesia or other markets, but you also take about the bric's. banksntly the bric's have invited greece to become part of this development bank, and jim o'neill, who of course a decade ago created the bric idea, sent an e-mail to us an april fools'

day? april fools' day? this underscores the whole idea s are even relevant nowadays. there is something going on with russia and greece, so that is definitely happening. one of the challenges that we face with greece is that greece is a country that has never paid it debts well. they have defaulted on their debts 50% of the time since their independence. --ot of euro companies countries are saying that it is a mistake to invite them in, so were ak that bric's great idea at the time, but is is not aboutit thinking about countries but they can about cities. betty: i think it is about china

and the rest of those markets. what we would say is that companies should be thinking much more about cities than countries. more interesting than others, and if you are putting resources against where you are going to grow your market, it is much better to do it against jakarta then other -- jakarta than other cities. betty: you also talk about trend breaking economies. what does that mean? richard: we are getting disruptions to the economy that are bigger than we have ever seen, and we have to understand that the trends we have grown up with, the intuition that we have all built could be wrong. we have to reset our intuition. intuitions that we built up rather than resetting it -- if we don't

reset our intuitions and then keep going, rather than resetting a, we are going to create problems. betty: still ahead on the bloomberg market day, for most of 2015, it has been full steam ahead for the dollar. than the economic numbers got in the way. the is happening around world markets, coming up right after the break. ♪

betty: all right, guys, more on here on avontory

and whether or not they have been given a fraudulent bid here. julie hyman has more. julie: i think this is fair to describe this as bizarre. ptg bid is a hoax. that is according to dow jones at this time. the security and exchange commission is declining to comment to bloomberg on this filing because ptg said it made officialng through an filing. he said it was offering $18 and $.75 -- it said it was offering $18.75 which is more than the company had closed yesterday, so that was a red flag initially. ptg made some perhaps typos. they said they were pgt, so they are wondering if they are

cutting a pasting ptg's description, and we have called phone numbers in the ptg's filing, and we cannot get through, so it seems that when there is smoke there is fire, and it is not in deed a real bid, betty -- indeed a real bid, betty. betty: it makes you wonder what happened? obviously we are going to be digging into this, but the stock behind you, is up and has popped on this news and is still up, right? julie: even after we really started to look into this, they are holding onto gains of about 7% and now they're up closer to 4%, but still interesting that there will be buying after this appears to have been debunked. i want to show you what is going on in the rest of this markets, because this curiosity aside, we

are seeing a rally after a three-day losing streak. nasdaq is leading gains, it is upbetter than 1%, the s&p is 8/10 of 1% and the s&p is up as well. with the nasdaq leading, some of the big tech companies are doing well. facebook is up at about 3%, and microsoft and apple are rallying as well. tech seems to be in favor today. what is not in favor is retail. . we had -- what is not in favor is retail. after theis down close, its shares are trading lower today. betty: thank you so much, julie, and definitely a bars are -- definitely a bizarre story we are going to stay on. and here is jonathan ferro from london.

jonathan: let's wrap this up, the dax is up higher by 2%. up 1.5%, and are that is the situation with equities. let me take you to the bond board, and they started moving higher, and today, we finish the we finishedat, and the day at 7.2%. the bond moves for you, the ,onds moving a little bit high and it is all about that weaker dollar. on euros, we roll over, it is giving up some of those gains. it istory with sterling, at a fresh 2015 high, and we roll over and give up those at 15748.ne point --

1.5748. and you look at the analysts from -- the forecast from analysts and king dollar is not dead. while the dollar has been showing some weakness in that dollar run, the bullish rally seems to have given up the game and analysts are not giving up the game just yet. betty: all right, jonathan, thank you. and bloomberg's david a gold reports more on faulty airbags from hong kong. david: honda joining its peers, announcing a fresh round of recalls because of this faulty airbag issue. in a honda's k's 4.9 million cars are taking -- are in this

recall -- honda's recall andudes 4.9 million cars the total tally for honda includes 19.2 million vehicles. betty: that was david ingles in hong kong. now a look at some of the top stories out of the bloomberg terminal at the top of the hour. separate froml ebay and will trade on the nasdaq as pypl. ebay announced the split last year after saying that paypal was holding back the parent company. and david plouffe, a former advisor to president obama is leaving his post at uber. google work with fricatives. -- google executives.

and according to the bloomberg billionaires index, the facebook founder is worth almost 35 billion dollars today and his fortunes have increased by almost $400 million in the past 24 hours. sector berg became the youngest billionaire in 2003 -- billionaire at the age of 23 in 2008. much more ahead in the next hour, president obama is holding a summit with leaders from gulf nations today. and the ceo from the cowen group in washington says just to heads of states from the gulf nations are just showing up and the white house is insisting the this is not a snob, but white house is seen this as something more. --t what is going coming

going to come out of the summit talks, nobody really knows. it could include a deal on iran's nuclear capabilities. wonder,t does make you what is really going to get done? speaking of military, there is this great story, mark, i don't know if you saw this, ok, you did, general wesley clark, a four-star general, a decorated military official, is now turned from a four-star general to pitch man. mark: he does not have the best track record on the. -- on that. betty: several companies have gone bankrupt. who had been interviewed said if you see general wesley clark on the

board, that is a red flag to short the stock. it is an amazing story. he is also on some big boards as well, but still, it is a fascinating read. i am still on the mark zuckerberg thing, i have feelings over him, i really do. happy birthday mr. zuckerberg. [laughter] betty: feeling older than him. all right, all right. see you and a half hour. keeping up with kim kardashian just got a whole lot harder. now theity tv star is head of the mobile up. mark: i just cannot. betty: we are going to sit down with her in a moment. ♪

betty: well, call it the kardashian effect, glu mobile reached a deal with kim kardashian. kim kardashian is the star of "kim kardashian: hollywood." cory johnson is apparently an

avid fan of the game and of kim. re: good be sitting down -- perhaps you are? [laughter] here is a number for you. -- 33 millionlars this has been downloaded to smartphones across the world, people have spent over 22,000 years of key military time playing this game -- years of cumulative time playing this game. is apparently great because it embodies some things that are the s -- that are the essence of kim kardashian. and talk to sit down about what makes this game such a phenomenon and perhaps we may glean from this what makes kim kardashian such a phenomenon. betty: where are we going in this world, cory?

where? cory: what? betty: i actually respect her, and were ever she goes, hundreds of thousands of people follow her. she has been able to engage her fans like no other celebrity out there. cory: in a very technology-driven way, and she has given life to a cable network. not on a pinball machine or a plug in game, she is using to focus on mobile and has used social media and twitter and particular to boost brands and to boost her brand. it is a really fascinating business. i got that. i see what you did there. [laughter]

you will find out in about a half an hour that i do in this interview on bloomberg tv, but there are a few characters in modern life right now who are as fascinating as kim kardashian. betty: although we have seen come and go before, so there is always that question. she willens when inevitably fade, as all celebrities do? they are basically betting themselves on one hit wonders here. cory: i think the inevitability the durabilityto of a thing, the idea can be completely different. there are some brilliant ideas that have been flashes in the pan, so we will take a look at this. but i will say that glu mobile

has looked at the model of this, they have signed katy perry, they have signed pretty spears, and they're looking at a way to do with kim kardashian on how they have worked with a lot of other games. betty: and maybe kanye west? cory: why not? he's in the family. much, cory, thank you so cory johnson, editor of large of bloomberg west. his interview with kim kardashian is just 30 minutes away. moreoming up, we will have information on president obama's gulf summit. ♪

day.is is bloomberg market >> president obama and officials from six gulf nations are meeting at camp david today.

one of the top issues they will discuss is the proposed u.s. nuclear deal with iran. saudi's king turned down an invitation. betty: the sound of that's the founder of medical floated, we will hear what he says about his legal struggles. kim kardashian is having success on many fronts, including her own mobile game. we will hear from her coming up. betty: good afternoon. i am here with mark crumpton and let us start with a look at what is moving in the equity markets right now.