takeover -- shares going 20%. crash,fter the amtrak the spotlight is on transportation safety. we look at the private jet industry which has some alarming statistics. scarlet: good afternoon. i'm scarlet fu, here with alix steel. s&p: you are looking at and clawing its way to a closing record. that's the inter-day -- we have not hit that but if we close right now, we would be at a new record for the s&p. scarlet: it's like 2014 all over again. the nasdaq doing the best of the three, but the dollar is weak or , now at a four-month low, heading for its fifth straight

weekly loss. one analyst says in order for the dollar to take another leg up, needs to be about the fed raising rates and that this is a healthy retracement. taking a look at the 10 year, the yield has moved off its session low, turning even lower but pretty much flat. we did have a successful sales -- the u.s. sold about 16 billion dollars worth of u.s. bonds. now to a look at the top stories this hour -- the death toll in the amtrak train crash is now at eight, and with the discovery of another body earlier today, amtrak ceo says the company expects to have some service restored by monday. officials believe they have accounted for all 243 passengers and crew members leaved to have been aboard. investigators want to talk at -- talk to the engineer who was at

the throttle. the train was going 106 miles an hour, more than double the speed limit. the engineer's attorney says he remembers going at the right speed before being knocked out. a new study raises questions about lying corporate and private aircraft -- repeated instances of pilots skipping safety checks and overlooking basic hazards. it all has to do with how much pressure the crew gets. >> in the airline world, the pilot is insulated from pressures. that is by design. you don't want an angry passenger in the back to be in the back of your mind when you are deciding to land in a snowstorm or not. but in the corporate world, when you have a high dollar passenger in the rear of your plane, those

pressures can increase and we have seen several accidents where that happened. scarlet: in the last 15 years, there have been five times more accidents on private jets and commercial planes. alix: martin l -- martin o'malley says he will decide whether he will enter the race -- if he does, he would be the third democratic candidate to enter the field. london bus iconic black cabs are .etting run out of town by uber applications for black taxi license were down 20% in the last year. the taxi drivers union blames the american tech company for the unprecedented drop. the union estimates 1200 new uber drivers are on the streets every month. alix: questions are being raised about the turnaround plan at jcpenney. sales growth missed estimates

and the ceo has tried to -- stabilizeny jcpenney by revitalizing private brands. , amazon, here out comes walmart. they will offer a $50 per year free shipping service for online customers, a challenge to amazon's prime service. walmart says more than a million items from clothing to toys will be available in three days or less. alix: billionaire investor stand drunken miller says -- stan duncan miller -- stand drunken miller says medicaid and medicare will bankrupt the new generation and medicare will have two reduce pay. scarlet: harry shearer says by re-signing to "the simpson" he would be denying the opportunity

to do other work. mr. burnsthe voice of since the beginning of the show. alix: it's like the end of an era. also derek was smalls in spider tap -- in " spinal tap." kim kardashian discusses how her game became a big hit. alix: elizabeth warned sets her sights on limiting the federal reserve's lending powers. route over?the bond global bonds have lost $456 billion in value sending shockwaves through stocks and currencies. alix: four perspective on how big this selloff was, look at the 10 year bund. dropping from zero to .7%.

joining us to break it down is vp salesmowicz and the of portfolio management. have we seen the top? that's all i'm hearing. it might be too early to say. a lot of the trades we are seeing are interrelated, so the dollar strength of abating and becoming dollar weakness was as and nowut euro weakness strengthening. the euro was oversold and used to fund carry trades into the peripheries and other areas into the bond market. we are seeing that and it will depend on how much more that short position needs to be corrected. 30 year yields in the u.s. have gone to the highest levels since november. is it time to buy? guest: i would say no.

in any treasury market, let alone the united states. i would not be going out or use this as an opportunity to extend out. i think the data is going to perhaps turnaround. we have seen some weakening in the data and i'm kind of flummoxed by that. there are a lot of inconsistencies and what we see anecdotally in what some of the numbers are and we are likely to see a re-acceleration of those. scarlet: we always talk about how credit is a leading indicator. is that the case this time around? lisa: credit has been remarkably resilient. we were just talking about how high-yield have been doing really well. really headed upward and part of this is because of oil prices rebounding. more they rebound, although pipeline operators and drillers are doing well and people are buying -- people are piling

money in there, corporate credit has really held in. guest: i do think you are getting paid to take credit risk in the market and the faults are likely to remain low. -- and defaults are likely to remain low. you can buy solid high yield credits at a yield premium of 300 to 500 basis points. this isat part of fundamental and what part is the lack of the liquidity? we have a shot -- we have a chart that shows the issuance. guest: i think liquidity is very poor and a lot of the selloff in europe is a reflection of poor liquidity in the marketplace. lisa: do you think it's a time to go in and buy german bunds? showshere's a chart that the interest rates rising that

goes to lisa's point. guest: the amount of cell -- the amount of sell required to raise yields is not that significant. it took very little to push yields higher and it all came from the futures market. to actually express a bearish or bullish position is difficult, but i don't think those bonds were able to put on a large short and take advantage of that because of the did -- because of the technicals. lisa mentioned oil prices. oil seems stuck at around $60 a barrel but the rise has changed expectations about inflation. what does it tell us about the bond market pricing in inflation? guest: inflation is going to go up. i think oil could be above $70 within a year and i think the supply demand is more favorable

than people think and that means headline inflation starting to rise. combine that with the unemployment rate approaching 5% and maybe passing through that in the next 12 months, combined with higher prints on cpi, the combination of those two factors are going to bring the treasury market higher as it anticipates getting closer to where the fed is. the market is much more pessimistic than with the fed is. alix: thank you so much for joining us to talk about the story in the market, the bond selloff. we are still figuring it out. coming up, he's the target of the biggest copyright case in history. emily chang sits down with kim dotcom, founder of megaupload. ♪

to theelcome back bloomberg market day. let's go to julie hyman with about 45 minutes before the close. julie: looks like we're going to to -- hang on for the record close. we have a rally across the board , all the major averages up by 1%. we have definitely been seeing tech lead the game. but look inside the bloomberg terminal -- i have the intraday chart of the s&p 500 and we are at the high on a closing level but not an intraday level. 21.95. here at that's the one to look at if we're going to breach the

intraday level. closing levels are nothing to sneeze at. technology is leading gains but it's a broad-based advance we are seeing today. all the groups on the s&p 500 are up. tech, consumer staples are up the most. one group not doing as well is .etail after we got the earnings from jcpenney's and kohl's that missed estimates, just like macy's missed yesterday, nordstrom will be out after the close and it is falling in advance of that. i have to mention the situation we have been watching with avon. within anress release ftc filing from a company purporting to offer to buy avon for $18.75 a share, 180% more than the company's close yesterday. on further review, it looks like it's a hoax and the ftc is reviewing that information.

shares remain higher after that whole kerfuffle. 180% premium? that should have been a red flag. isie: the interesting thing because it was an sec filing, that gave it a little more credibility than it otherwise would have had. with thejulie hyman latest. for a look at the top stories ?rossing the terminal, alix alix: bombard ea is cutting jobs because of shrinking demand. -- they said a have not been hurt by the turmoil in russia and china. scarlet: before he was arrested and accused of minute waiting prices, the flash crash traders that others were doing the same thing. he said he complained to the chicago mercantile exchange more

than 100 times over several years. the last complaint became weeks before he was arrested in london. alix: a union says the average american ceo is paid 370 times as much as a typical worker. workerscio stats show getting $36,000 a year while the average ceo is paid $13.5 million. companies are fighting a plan that would make them reveal comp comparisons. atrlet: some call him internet pirate, others a defender of a free and open internet. ,egaupload founder kim dotcom is in the middle of a battle to keep his internet empire going. where heng traveled to is under house arrest until the copyright case is settled. a crazy trip all the way

to new zealand. this is the first time kim dotcom has spoken publicly in about a year. when we landed there, our editor was really nervous and it was unclear if he is going to follow through with his promise, but luckily he did not pull out and here is our story of getting there. how long have you been living in this mansion? firstix years and the three and a half years on and off because our primary home was in hong kong, but i'm stuck here since three and half years now. emily: ever since the raid you haven't left? kim: that's right. emily: the kitchen, you designed this whole thing yourself? kim: i did the interior design myself. everyone sleeps with the sun goes down. emily: you designed all of this

yourself? kim: that's right. emily: this is where the helicopters landed? kim: right here in the courtyard . another were the cars were parked. emily: where were you? kim: i was up there in my bedroom. emily: how many commandos? kim: the total number of people with 72. i think eight or 10 arrived by helicopter. emily: i know they took a lot of cars. kim: they seized everything with a value over $20,000. all my car and artwork. emily: do you worry you could lose this? that i's more of a worry have to deal with other things rather than focusing on the case or building new businesses. like who is going to rent a

place? i have no bank account. which landlord sees any long-term stability in this? i prefer staying here, resolving the case and then decide what to do. a man's home is his castle and at the point when i lose this, it's a significant victory for the u.s. government, so i don't want to give that to them. emily: who are your neighbors? kim: all kinds of people. recently, the alibaba ceo purchase property next door. emily: have you gone to say hello? kim: yes. emily: maybe you could work together. the they are working into cloud. emily: they have an empire and you have a kimpire. kim: i'm only a baby.

scarlet: alex and i were really confused until we saw your interview. is his name, but he has a company named kimvestor? emily: he was actually born tim schmidt in west are many and changed his name to kim dotcom because it sounded more internationally friendly. he has his own website which is om.erally kim.c his extradition hearing has been pushed back and push back and now it's scheduled for sometime in september. there are a lot of people who doubt his cases ever going to court. some people say he's a pirate and a white-collar criminal. others say he's a middle man, he's not the person uploading all of the music and tv shows illegally, so it is a big question whether this case will ever be tried. of the: it is a sign

times. emily chang, thank you so much. you can catch that full interview on "studio 1.0" tonight. ahead, keeping up with kim kardashian just got a whole lot harder. the reality tv celebrity is the star of a mobile gaming at cashing in big time. we will sit down with her. scarlet: we are really big on kim today. ♪

scarlet: reality tv superstar kim kardashian has scored big with her mobile game. sat down with her and asked her about the success of the game. kim: you play on your journey to make it did a list in hollywood. you get to do photo shoots, go shopping, kind of like what you auld assume my life or

celebrity's life would be like in hollywood. she is the mentor for the player. cory: if you convince the store to stay open longer, you get extra points. kim: we have real live people like my hairstylist and makeup artist, some real friends, so i try to make it as lifelike as possible. when i'm going on vacation, the player can go on vacation to country. it's so simulated to my real life and we make sure it's really accurate. joins us now.nson what was your biggest take away from this interview that you had? cory: i have to say that preparing for it, the size of this is massive. when you look at these the again's and our society, you have to wonder about what it's

coming to with everybody playing video games as much. -- i don't have this memorized -- the revenues on the game, $95.6 million. over 33 million downloads. the cumulative time people has spent laying this game is 25,324 years. this game is a hit. people love playing this game. clever aboutvery making this game aspirational, but people are willing to make inapt purchases, to spend more money as they play to live a life like him kardashian. the take of of every inapt purchase and is very involved in the design of the things my game. the bikinis are just like her bikinis, the shoes are just like her shoes, she wants to get all the details right and she has a big team working to do that. scarlet: would you let your

daughters play this game? cory: good question. i give them very limited screen time which they usually devote to watching bloomberg tv. they are usually forced to that. my older daughter, i said do you want to try this and she was playing it and said this game is kind of stupid and then she kept playing it. so it does have that addictive, fun quality. the game is rated g, but her new book, not so much. alix: always good to see you now. much more coming up. stay with us. ♪

alix: welcome back to the bloomberg market day. let's get straight to the top headlines this afternoon. amtrak says the last body has

been pulled from the wreckage after the train crash in philadelphia. crews are beginning the work of clearing overturned cars and replacing tracks. amtrak has announced service will be restored by tuesday of next week. investigators want to talk to the engineer who was at the throttle. they say it was going 106 miles an hour before derailed, more than double the speed limit. the engineer's lawyer says his client members trying to reduce speed before being knocked out by the crash and that his client was not on his cell phone or using drugs or alcohol. a new report shows inflation is well under control in the u.s. inflation unexpectedly fell last month. the big reason, lower energy and food prices. another report underscored a strength in the labor market. fewer americans than expected filed first-time claims for unemployment benefits.

paypal is returning to its roots as an independent company. its payments division separating from ebay will trade on the nasdaq. it will trade under its original ticker before being acquired in 2002. carl icahn said paypal was being held back by its parent company 's look -- slower growing business. winner american pharrell did not have its luck of the draw today -- american pharaoh. it's the favorite and has 15 races in a row, but the last time a horse won the preakness stakes from the number one post was in 1994. those are your top stories. hour, up in the next half the dangers of private air travel. bloomberg news looked at the aviation records to determine

why jet accident are on the rise. avon'sare talking about $8 billion buyout deal that turned out to be a hoax. we will talk about what raised suspicion in the first place. nordstrom is reporting after the close today. plus keeping an eye on the s&p 500 possibly closing at a record. senator elizabeth war and has a new conservative counterpart in her crusade against wall street banks. senator david vitor of louisiana. the unlikely pair have joined forces onto bills in last week, the latest targeting the fed's emergency lending power. joining me now is someone in favor of this legislation, no surprise there. dennis kelleher, the ceo of their markets, a nonprofit that lobbies for financial reform. also with us is our bloomberg ,ontributing editor, bill cohen

who thinks the bill is ridiculous. why is it ridiculous? bill: some oversight of the fed is probably a good thing and more transparency is definitely idea, ifing, but this i understand what they are up to, this idea of limiting the feds emergency powers are in a crisis is foolishness beyond belief. why limit what the fed can do in a crisis? why telegraph you are limiting it? it makes no sense whatsoever. wall street needs reforms, thanks need to make sure what happened in 2007 and 2008 never happens again, but this is not the way to do it. alix: what is your response to that? what would have happened in 2008 if this had been in place? make a future crisis less likely, one of the things to do would be to put in that too big to fail angst have cushions to cover their own losses and make them not too big to fail. the problem with the fed ladling

out $13 trillion, by the way in no8 and 2009, almost coverage of the $13 trillion labeled out by the fed. half of that went to just three banks -- citigroup, merrill lynch and morgan stanley. nobody knew what the programs were. the law changed the rules to limit the fed possibility to just shovel money out the back door because banks are not incentivized to have enough loss absorbing capacity to withstand a crisis if they know the federal pocketbook is wide open when they get in trouble. that is why it is so important to get him place rules that make it clear that you will in fact go bankrupt and fail. the fed still has full authority to liquefy and protect the system but not to pick and choose single winners among the too big to fail banks.

if they are insolvent, they've got to go bankrupt. alix: what would have happened in 2008 if that was the case? banks are lifting up their tier one capital ratio higher than any banks in the world. quantityt's not just but quality of capital. even now, the level of capital banks are required to hold is nowhere near the shortfall they had in 2008 and 2009. the difficulty is to put in place rules before the next crisis that incentivizes these ands and encourages facilitates market discipline on these banks so that they are not too big to fail and if they do fail, they do it in an orderly way or, if they have to rely on fed bailouts, that there is transparency, accountability, and oversight and clear rules of the road that apply to all the market participants. alix: i have to say, if my kid, if i -- if you get into debt,

you did it, your problem. bill: i usually find myself agreeing with dennis and i do agree when it comes to creating the right incentives to make sure wall street does not do to us what they did in 2007 and 2008 again. but limiting with the fed can do impliedsis -- dennis they will be able to do what they need to do in a crisis regardless of this rule. he referred to it as a law, but it's just a bill hopefully it won't become a law because limiting what the fed can do doesn't make any sense. in an emergency, the fed needs to do whatever it must do because by his definition of this bill, every bank on wall street would have failed. maybe that's ok. we would have had a total meltdown. there would have been total

chaos. every bank was insolvent. whats: let's be fair to they are trying to do here. therequirement of the law, dodd-frank law separated from this bill said to the extent the fed has programs to be the lender of last resort is that the programs have to be broad-based and structured in a way ahead of time so that there are clear rules and the fed cannot pick winners and losers and there is transparency and oversight to what they do. time,f what they did last they could do it again with certain limitations and even if the bill were to become law, it has a sensible safeguard that determines itd could not comply with the provisions of this bill in the crisis, it could nonetheless engage in one-off rescues of companies for stated reasons, which they could do for 30 days

and then just seek permission after the fact. we are a nation of a rule of law and democracy. you cannot have one institution have full access to the federal tax payers and treasury and say do whatever you want, forget the oversight and if the incentives are upside down, we don't care about that either. that can't be the way democracy is run. bill: now we are talking about the way democracy is run. fedcrisis in 2008, the fortunately had the ability to do what it did, to take these emergency steps. i don't think it pick winners. it did what it could do given whatever requirements or limitations it had. look at what happened to lehman brothers when they let that one go. bill: i don't know if the argument is a fair 1 -- maybe they should have saved lehman

brothers. trillionbout the $15 disbursed by the fed. what was the negative? the positive was the financial system was rescued. we may not like the way it worked -- i have been a strong advocate for changing the incentive and making sure nothing like that happens again. but it would be hard to second-guess what they did and it would be hard to say what they did in 2008 was a mistake because it really did save the system. we could have rolled the dice and found out what it would have been like if they didn't do it which would have been an interesting experiment that a lot of people would have suffered more than they have ended. dennis: we don't disagree on that. but at the same time, you cannot have the entire treasury available in a so-called crisis and expect those companies not

to be too big to fail. we need a clear break so that we and too big to fail and don't have federal taxpayers on the hook because we incentivized reckless behavior and behavior that is antisocial. we need to get the rules right now so that when it happens next time, they are resolvable and don't have to run to the fed and if the fed has to save the system, they do it in a way with clear set rules that don't feet market discipline and encourage the growth of too big to fail firms. you bill andntee dennis will be debating this on the commercial break. thank you both very much. coming up, the perils of private why the corporate jet industry is buckling under demand pressure. ♪

alix: welcome back to bloomberg market day. let's go straight to julie hyman with a look at the markets as the s&p continues to grind higher on this perhaps record-setting day. julie: it looks like we are going to make that record unless something changes are medically in the next few moments. i've drawn the previous closing record in green and we have been above that for a while. the intraday record, we not going to make that, but unless something changes, and it always can in the last few minutes of trading, it looks like we are going to make it there. technology has really been leading the gains today and that has been consistent about the day. ace book has been one of the big gainers. doesn't look like there's any concrete news there.

it looks like we have got some year to date charts instead of daily charts there, but facebook is up around 3% today. computer sciences is up on a report it might split itself into. also look at what is going on with shake shack. those shares up higher and now lower, threened point 4%. the company came out with earnings that beat estimates but there are a lot of questions about its valuation. thes take a look at some of companies that will be reporting in about 15 minutes, give or take. we are looking again at some of these year to date charts -- party city has been trading lower, but little changed. symantec and applied materials will be reporting their numbers. we do have some breaking news or you -- tom brady is appealing his nfl suspension.

appealing brady is his nfl suspension after the so-called if late gate scandal. again, tom brady is appealing his suspension. we want to take a look at some of the top stories making headlines -- tepid economic growth in the united states has one of the world's most recognizable economists worried about a downturn. mohamed el-erian told charlie rose he was worried about the slowdown and recent reports showing weaker than expected retail sales. run don't believe you can the american economy for another five year's at this slow speed. something is going to break. we are you are going to tip into a much better world or we get even lower growth and get what janet yellen and others are worried about -- financial instability. the u.s.went on to say needs a 60's styled moon project

to spark a new run of economic growth. more recalls because of those faulty airbags. today, honda, the company hardest hit by the problem, recalling 19 million vehicles. crash inooking indianapolis -- but the driver walked away unhurt. the brazilian driver hit a wall and his car flipped. practicing for the indianapolis 500 10 days from now. he is a three-time winner. those are your top stories from the global resources of bloomberg news. in the last 15 years, there have been five times more fatal accidents on high-end turboprops than commercial passenger planes. bloomberg news looked at u.s. aviation records and found repeated examples of pilots on smaller jets overlooking basic

hazards. bloomberg's alan levin wrote the story and joins me now. i used to have to take dramamine for anxiety to get on a plane and this makes me nervous. what were they overlooking? alan: in some cases, pilots to not recognize there was ice on the wings. there was a case where a corporate pilot had sores over his body and various medical conditions and was on multiple him lesst would make than alert, including morphine, for which he did not have a prescription. the list goes on and on. a pilot on morphine. my job literally dropped to the floor. whose fault is that? the pilot or the people on the ground or the company? what gives? cases, these are pilots who just somehow dropped their edge and got a little lax.

other cases, people were intentionally overlooking the rules, but if you are asking the big question, why is this thatning, it seems to be these corporate operations do not have the same scrutiny from the u.s. government that result, if and as a you are going to be lax, you're not going to get caught. alix: are there certain companies that are bigger offenders in these kinds of incidents? alan: there's no way to know that. and frankly, i would say it is perfectly possible to run a corporate flight department extremely well and i think that's probably the case for most of the big corporations in the u.s. what we saw in our records was when you drop your edge and lose

focus, bad things can happen. againbad things indeed -- , a pilot on morphine. might we see some regulation? what is the end result? alan: while there are a handful of people who would like to see a -- would like to see regulation, there doesn't appear to be any stomach for it. the aviation trade groups would oppose it pretty fervently. i don't think there's any push in congress to spend more money to create new infrastructure to inspect. that seems unlikely. what you might see is a greater push to do more voluntary checks. alix: knowing what you know after doing this research, would you ever fly on a corporate jack -- corporate jet? sure, and i have. we have to say that even though

there are five times more crashes then the airlines, the numbers are still pretty small. one of the takeaways is that it's really difficult to know whether you are on a well-run operation not. even somebody like me who has covered aviation for years, i would find it very difficult to know. alix: and who knows if they're pilot is on morphine. that blew my mind. still ahead, a buyout deal that sent avon shares surging turned out to be a hoax. what it means to the company is coming up next. ♪

alix: you might think it would be impossible to fly around the world without using a single drop of fuel, but one company in monaco is trying to make that happen. jet butg as a jumbo powered only by the sun, this is the solar impulse, one of the world's most advanced solar powered aircraft. it's challenge is to navigate the world only by sunlight and keeping it in the air takes a lot of effort.

from a base in monaco, a team of 90 monitors the progress. it may not be space travel, but it is impressive. the next leg of the trip from china to hawaii is the biggest challenge, a distance of almost 5000 miles. with a flight time of almost 120 hours, the pilots will need to sleep, but mission control has taken care of that. the designers are hoping to show the world the potential of alternative energy is a bright one. alix: today, shares for avon products sword and then humbled

after receiving a fake $8 billion buyout and causing trade to be halted twice. receiving theer offer. joining me to discuss it is our reporter who has been halloween the story. how do we know this is fake? -- who has been following the story. the address is wrong, the people don't answer the phone, no one has heard of that law firm, it doesn't exist. there are a lot of errors in the filing itself, there are misspellings. they call themselves to pg, but it is not tpg making the offer. how does this get through the sec? good question. the sec says they are investigating. you would assume they would be able to figure this out quickly. unless youenefits

are trading avon shares for a second and get lucky? pop, sohe shares did it's possible somebody did take some money home. how long will it take to sort something of this magnitude out? guest: that remains to be seen. i'm sure we will get answers soon. alix: we believe it could be true because avon does have albums. guest: even the price was three times premium. alix: thank you so much for joining us. the close is coming up next. we are looking at the smp at a record high. -- the snp at a record high. ♪

we are moments away from

the closing bell. . am alix steel another record date for the s&p, settling out at 2120, this is a record close for the index. we did not hit the intraday high, but we are now at a record high for the s&p. we also have a triple digit rally that held on for the dow of 186 points. the nasdaq was really the leader of the day. i am joined i joe wiesenthal. it was a text -- a story all day, you had tech up all day. you had health care of 1.5%. it was mixed. you had a little bit of risk, a little bit of dividends. >> everything. the story for the last six years in markets, and