what is the best way to measure employee performance? let: millenial seem to shine transfer -- public transportation as they opt for luxury leases. mark: may the force be with his knee. we will talk about the company's -- with disney. we will talk about the company's plans to tackle a galaxy far, far away. mark: good day. bloomberg world not quarters in new york, i am mark crumpton, here with scarlet fu. quiet monday afternoon. modest gains with the dow and nasdaq you much at session highs come up on when you look at volume, down by at least 20% for the three annexes compared to the 10-day average. all you need to say, really.

things are drifting along here as we continue through the summer. what is interesting is in treasuries, treasuries are rising for the first time in four days, sending yields on 10-year notes down on four basis points. treasuriesorm across in that you have that rally going. commodities continue to come under pressure. euro -- little changed against the dollar. dollars slightly firmer against the yen. mark: now let's look at the top stories we are following this summer. the federal reserve bank of dallas is getting a new president and ceo next month. robert stephen kaplan succeeds richard fisher, who retired from the dallas fed in march. at harvard professor business school before joining harvard in 2006. he is vice chairman of the goldman sachs group. kaplan will not be voting on policy until 2017.

scarlet: joshua right is stepping down. he commissioner since january that she has been a commission -- he has been a commissioner since january 2015. his last it will be august 24. the national survey of homebuilder sentiment index rose to the highest level since november 2005. the data indicates a single-family home sales in perspective buyer traffic increase. scarlet: americans are waiting longer than ever to buy their first homes could the typical for summer rents for six years before buying their first house. recent reports indicate that renters are having a tougher time saving for a down payment. the pentagon is eyeing prisons in kansas to house guantanamo bait to denny's. it is -- guantanamo bay

detainees. officials and survey the barracks at fort leavenworth last week and will also review the naval consolidated brig in charleston later this month. scarlet: there is a decision in this case that could have changed the landscape of college athletics. football players and northwestern university cannot form a union. that overturns a decision by a regional nlrb director who ruled that football players were university employees. today's ruling is limited strictly to northwestern's football team. mark: the united states is betting on the senseless to keep it stream of hosting the 2024 summer olympics alive. lastn withdrew its bid month due to lack of public support. after failed bids from new york city and chicago for 2012 and 2016, does the u.s. stand a chance of winning this time around? we spoke with the former u.s. a lithic committee executive director. >> they presented the

international olympic committee three things. one is stable government, security, and the ability to activate the sponsorship it when you combine all of those things, it will be very competitive. except for the fact that paris is back in paris lost a couple of months to london and i think there -- they are a formidable opponent. says heneral schiller doubts the senseless will lose money if they host the lip extreme that is a look at the top stories -- if they posted the other picks. -- if they host the olympics. that is a look at the top stories the summer. scarlet: that is a jaguar? that is a mercedes-benz. mark: i will take either one. what is the best way to measure employee performance? why one company is getting rid of annual reviews. largest goldthe company in north america just spent $2 billion to build a brand-new mine from scratch, this has companies are limiting

production could all that and much more coming up on bloomberg market day. mark: for much of wall street, labor day signals the new year as it marks the end of the summer lull in markets. scarlet: adam parker joined the "bloomberg surveillance" team this morning. adam: why would you go to cash? i like the u.s. equity market here. the earnings numbers are probably too low. the economy is not great but it will be better in the second half than in the first. and sentiment is awful. as you point out. if you want to romanticize them i'm a contrarian bull, today's the day to do it. tom: equities yields are higher in everybody will move to bonds. all that traditional asset class analysis is out the window. adam: i think it is tough. you look out the window, what bond do you want to buy?

i can find u.s. equities that grow earnings 3%, 4% and have a 2% net by back. that is the s&p 500. vonnie: how long does that continue without gdp getting actual boost? adam: i think increasingly, vonnie, the key is how long the expansion will last. fiveget 1.5% real gdp for or six more years, that could be really good. years, ifor two more would be concerned. low amplitude -- tom: low amplitude is a key thing. we are just going to keep going. everybody thought she had rocks in her head. we are just going to keep going. that is what we did with the lower amplitude. adam: i think this is the longest expansion ever. you have got to see deterioration in economy, big arrogance from the management you have to see a big

deterioration of the credit metrics. none of those things look great. alexander from our chief economist, have written a lot about how this could be the biggest expansion o ever. brendan: do you have to be aware of the fact that other people will pay attention to it? models oflook, we use stock level return and some of those models included technicals. at the market level, it really isn't a great predictor of overall market level performance. it is not that to forecast the whole market. eriods when it works and when it doesn't. it can be the self fulfilling office you don't want to ignore. we account for that in a forecast of the stock level. vonnie: is there something about this summer that give you's for thought? -- you pause for

thought? adam: i don't want you to think i'm impregnable to data. there are lots of things that can make you concerned all the time. i still think i have got this slow growth, slow retrenchment from the fed, but the china currency move was a big deal. i'm a little less worried about europe. today the biggest risk remains the slowdown in the u.s. economy. tom: where is institutional cash now? one of the rules is follow the money. not when you and i are talking about. what is the money actually doing? adam: people prefer other equity regions to the u.s. they are picking around the low end to see if it is a falling knife or opportunity. and maybe credit could be better. splashesone of our this week -- one of our frequent guests taking a substantial position in glencore, trying to get out in front.

brendan: that is deception that if you are looking to commodities, you are looking to growth in emerging markets. we had brian bilski on last week as well saying that we have been looking at the wrong growth engine. we should be focusing on the u.s. adam: u.s. consumer is the most game in the whole world. i think the u.s. consumer is ok. jobs are improving, housing is improving. i think the latencies aren't growing, they're coming down, in terms of mortgages and credit cards. obligations are somewhat low because of low interest rates. i don't think the consumer is in bad shape. when the savings rate goes up, that is an expander of the cycle. the risk wasc that due to the positive for u.s. equities. scarlet: adam parker is clearly very bullish on stocks. mark, you were saying earlier that stocks are caught in the never was strange in nine decades. arrowest rangeron

in nine decades. 90 years. this is the past month. we have moved quite a bit, but it is within this range. i will move this to the six-month period, and once again, stuck in this range. big moves but that is because you are going from 2120 to 2140. look at your today. just look at it year to date -- look at it year to date. dramatic moves to get to just a slight gain. over the five-year period, a different story. this is part of the bull market that a lot of people with sight is unloved because not everyone wants to participate. part of it is because people wonder how much longer it can last. at what point do companies and the profit margins start tipping over in the other direction? and we have reached maximum peak profit. i'm eager to see when you

bring that chart up the day that the fed may or may not decide to raise interest rates, what that chart is run to look like on that day. scarlet: a lot of scraggly movements and then it will settle down again. whitestill ahead, millenial's are developing their jaguars andte for cadillacs. ♪

mark: welcome back. breaking news this afternoon. the associated press reporting that the computer breach at the irs in which thieves stole

taxpayer information from thousands of taxpayers is bigger than the agency disclosed. according to the irs, an additional 220,000 potential victims had information stolen from an irs website as part of that scheme to use stolen identities to claim fraudulent tax refunds. that revelation more than doubled total number of potential victims to 334,000, and as you recall, the irs first reported that breach in may. we will continue to follow this story and bring you more information as soon as we get it. scarlet: this is an interesting note at the bottom. the irs estimates that they get $520 billion in fraudulent refunds to identity thieves. $528 billion. let's go over to julie hyman, who is a check of the markets. i know you want to start with tesla because of this call for morgan stanley. julie: we have been talking

about this throughout the day because it is an interesting call. morgan stanley raising the price target by a lot. -- the stock line is getting 5%. what is interesting about this call is what it is predicated on. it has to do with something called tesla mobility, or at least with the analyst is coming tesla mobility. in theory it is service that will be -- incorporate automated driving, it will incorporate the sharing economy with multiple people owning a vehicle together. thing thatong-term has been mentioned as a reason to fight stock. take a look at my bloomberg terminal for tesla shares vs. the average price target. we have seen quite a gap in late 2014 going into this year, now that tesla shares have rally, it is closer to the average price target by analysts. 465 coming tohe

us from morgan stanley. interesting move in tesla today. also, deal we have been talking about today, liberty interactive, the flash sale site that caters to parents and also sells children's items. liberty interactive is lower by little bit. the owner of qvc, by the way. qvca is the tracking stock. this, $18.75 a share. interesting movement here. back in november 2013, when the stock became public, $22 a share. $18 sony five cents, lower than the ipo price them interestingly. urged to ao -- it's high of $72 and five cents. and then of course getting the bump on the news that it is going to be bought. the premium is 49% to friday's

close but it looks a little less impressive, as you see these declines that we are seeing today. interesting movement here. i'm just trying to think, i don't think i've ever bought anything from zulily. julie: i might have, maybe. scarlet: that is not a good sign, because we are parents and the target parents. if you can't remember and i can't remember, tells us quite a bit. julie hyman, thank you so much. mark: this 36 change commission says tw -- the securities and exchange commission says two citigroup will pay two settle charges they misled investors. citigroup global markets and citigroup alternative investments mad "false and misleading statements" that their funds were low risk and suitable for traditional bond investors. the affiliates consented to the sec order without admitting or denying those findings. scarlet: some changes in ec suite at target today. john mulligan will become

operating officer of the discount retail it. he has worked at target since 1996 and last year spent several months as the interim ceo. the new cfo will be kathy smith. she has been executive vice president at express scripts. uber has posted -- "financial times" is that by the r with ahe year ube quadruple the size of its security staff to more than 100 workers. the staff will be in charge of everything from data security to vetting drivers' backgrounds. when it comes to cars, millenial's appear to be developing a taste for the expensive. according to edmunds.com, lexus, jaguar, and acura are among the top 10 brands leased by millenial drivers. scarlet: it defies predictions that millenials would shun

driving for uber. matt miller, our car guy, joins us for context. did anyone in detroit really believe millenials would not buy cars? matt: i don't think so. i talked to bill ford about this to my to mark feels about it, i talked to mary barra about it. all of them said that they expect millenials to at some point come to cause the same way all the rest of us have. millenials have had a tougher start. they are saddled with more college debt than anybody in their age group has before. they're finding it tough to get jobs at colleges that pay decent wages could those factors are making them wait a little longer. plus the fact that public transportation and uber and all of these other things have made it easier to get around in urban areas. mark: these luxury carmakers, are they specifically targeting this group? matt: millenial's want a lot of

stuff and they don't want to pay very much money. mark: that is generational -- matt: kind of like the rest of us. in a way, they are smarter at getting what they want and having it still work in your budget. millenials also said they were better car shoppers than their parents. it looks like they are right. i would maybed want to own a car for our entire lives, they want to switch them out every two or three years like they do with their phone. you can see that they prefer to spend more than $300 a month, they for the port no more than $3000, and they want to switch out cars fairly often. i bought a truck that i intend to keep until i go to my grave. but these kids want the newest in conductivity and the newest in technology, and the way to get that is through leasing, even if at the end of the point they spend more money than they would have if they bought the car. scarlet: they are looking to lease so --

matt: it almost every segment, millenials lease more than the average car buyer, every segment with the exception of compact cars. ram carsials releasing at a rate of 30% higher than the average car buyer -- the on ramp ram trucks,eyond the luxury products they were getting into. scarlet: like this jaguars. mark: when you talk about leasing, it speaks to millenials getting very, very bored, very quickly with something -- scarlet: short attention span? mark: matt: true, but they need to connect it to the latest gadgets. these kids grew up on that and they have to have it. edmunds took at -- took a look at the brands leased more often. will buy the gals

ram truck and leave it in the crotch for the rest of their lives. you saw gmc, the luxury truck brand, and then you saw jaguar, acura. they are all into these luxury products because those carmakers are coming down to develop a product that these kids can afford and they are releasing its own they can get it quickly and change them out often. scarlet: like the lower red mercedes. matt: very popular with millenials. i wouldn't want it, but it has serious connectivity and high-tech that the kids need. mark: when did we become the old folks? matt: you've been old for decades. scarlet: sorry, mark. matt: just happen to me. mark: thank you very much. all righty, matt miller bloomberg news. scarlet: more market day after this. mark crumpton bruising. ♪

scarlet: road tripper beware. traffic deaths are rising. for the first time since the recession, traffic gets could exceed 40,000. people across,000 the united states have died from traffic accidents through the month of june. if the trend continues, we could top numbers we had in 2007, 1 44,000 people died because of road accidents. that is a very sobering statistic. scarlet: it is, absolutely. one reason people are saying that be the cause of this is because the economy is improving. when you have a better economy, lower gas prices, lower more people rate, are driving to work. more people on the road statistically that would lead to more deaths as well. mark: it is one of those things where what is going on here is

when you have all of these people in these heavily congested urban areas, like a new york city, like los angeles, like chicago -- i don't know what the city was but i would be surprised if it is not california, given what we see in the background. but you have all of those people trying to get from point a to point b at the same time. it is reasonable to conclude this is probably going to happen. scarlet: that and the fact that everyone is distracted. according to the national safety council, crashes involving texting rose to 6% from 5%. i'm actually surprised it is not high. mark: i am, too. i am out. scarlet: much more coming up, including the best way to measure employee performance.

scarlet: welcome back to the bloomberg "market day."

i am scarlet fu. let's get to the stories making news at this hour. the cofounders of alibaba are using their own money to prop up the stock. billionaire jack ma will take part in the $4 billion share buyback. no word yet on how much stock they will buy. shares of alibaba have fallen 28% this year, and it's been less than year since the company went public. german chancellor angela merkel is signaling that she will consider debt relief for greece. she made her first public comments's euro-area finance ministers endorsed greece's third bailout could she says she is confident the imf will join the bailout. she also said there may be the way on the interest rates the greeks are paying on their debt. oil rebounded slightly today and then dropped off once again. west texas intermediate ended the trading session below $42 a barrel and there is no sign that a worldwide oil glut is ending. earlier, the money manager at stifel nicolas told us that crude will go lower. chad: oil prices are below $50 a barrel.

we think that is going to $30 a barrel. earnings per share is roughly stuck at $125. we don't think growth will be 10-12%. we think that perhaps will be 3%, if that. output: iran says opec's may set a record once restrictions on the country are lifted it and be caesar's comedian-actor tracy morgan -- nbc says comedian-actor tracy morgan will return to television . he will host "saturday night live." this comes a year after a traffic accident on the new jersey turnpike. a friend was killed in the accident and morgan was severely injured. snl" for three years and was also on "30 rock." coming up, but that uses psychological tactics so your child can fall asleep, guaranteed. every parent is probably willing to pay up. it is one of the vessel is on amazon. why the largest gold company in north america spent $2 million

to build a new mine from scratch. disney has a big plan for the park, one that will take you to a galaxy, far, far away. sound familiar? now to one of the most buzzed about stories of the day. over its the defensive corporate culture. annex was a in "the new york times" details the company's bruising or conditions. general electric is abandoning its review policy and "rank and yank" strategy made famous by jack welch for perspective, i want to bring in the former lincoln talent v -- linkedin talent vp. he joins us from san francisco. steve, welcome. ask for coming on. both general electric and amazon want the same thing, the best talent, more productivity. but they are pursuing very different caps to achieve the

same goal. it shows that perhaps there are different ways to win. steve: absolutely, scarlet. one of the interesting things about the reality of the business world is it is far more transparent. employees have more information about what company cultures are like, what it is like to work there. when you are seeing with ge and amazon, especially the response to the new york times article, is a lot of defensiveness and concern around what the perception is of what it is like to work there. similarly, ge change their ways because they are finding that old world performance review tactics are not resonating in a fast-paced business environment, where you are trying to create a great culture where people are doing their best work. one thing about amazon was the reliance on data, using the metrics to assess each employee's contributions. me waste that struck from an amazon employee who said that data creates a lot of clarity around decision-making and is incredibly liberating. one does relying on data

network? in what ways might miss the employers? -- might it mislead employers? steve: how can data measure something like passion or motivation? it is a great resource when you are looking at performance or people but it does not necessarily measure trust. those are important things that are especially -- the younger generations are looking for in choosing a top-notch employer. two i feel like my contribution -- do i feel like my contribution matters? do i feel like i'm being listened to? some of the ways that worked before our not working today, which is putting pressure on the big companies, and for amazon, the spotlight is on them now. people want to see what you guys are doing and how you are doing it and is there something other people can learn? a lot of people have different perspectives on that story and the experience of what it is like to work there. scarlet: i thought it was interesting that you set transparency is one thing that is the common thread between what amazon and ge are doing.

it sounds like more transparency would be good, but does it lead to more job satisfaction on the athlete's -- employee's part and better job retention? steve: that is a great question and i given it a tremendous amount of thought. i've worked with organizations around the world. it should follow that if the employers and employees. more information about each other, they should make better decisions around their job satisfaction. finding the right employee or finding the right employer. but i don't know that we are necessarily seeing jobs satisfaction increase because with the increase in the transparent world, i can also see what my friends and colleagues at other companies are getting that i don't have. there may be some sort of comparative envy that is developing. where the pressure point is falling is it is incumbent upon companies to be great places to work, because if you are not, the world is going to find out about it. and they will talk about it. the employee is not just an employee anymore. this is the lesson that amazon

may have misjudged. the employee has a cell phone in their hand and they are also your marketing and pr department. if they are not happy, they will talk about it. if they are happy, as witnessed by one of the most read stories on linkedin today, and amazon engineer responding in defense of his company, they will also talk about the good things. countries have to create great experiences so that they're at least shared his great experiences and it drowns out anything negative that will come out. scarlet: the employee is a little bit like the customer here. i want to give you a quotation from a bloomberg view columnist. he talks about how when he comes to those stories and the "new york times" article, the problem may be that many of the people making complaints are not techies. scarlet: steve, is it fair to quantify everyone's

contributions in the same way? arelopers and coders clearly the stars of the new economy and it is easier to measure the passion and productivity that it is for someone in finance or hr or support roles. steve: no, i think it you are right, scully. it is impossible to make a declaration around this is the way it is like to work in a certain organization based on a certain number of people or certain segment or hourly workers. they will not have the same extremes as an executive in a company, for example, or the in a smallrking affiliate office in geneva may have a different experience than someone working in a big factory in reno, nevada. i think it is hard to draw conclusions enterprise-weiss just based on a very small bite sized portion of perspectives. if steve jobsder may have given people the wrong impression when he said that the only work to do is great work, and you have to love what you do and if you haven't found it, keep finding it and don't settle

. there is a danger in being a perfectionist about how you pursue that. it is impossible for everyone to be passionate about and in love with their work, isn't it? is very think it difficult to find a job that you were going to love every minute of every day, that is probably true for most professions. but going back to your last question, one of the fundamental expenses that was profoundly shaped every employee's experience day today is the relationship with their manager. if that is going well, i tend to think that they are much more satisfied what they're doing. not necessarily the kind of work they are doing, but do they feel appreciated? do they feel that the manager cares about what they are doing? there is an especially in human resources that you joined, anybody wind up quitting a -- you join a company that you wind up quitting a boss. just like any organization -- professional sports, the media, technology -- there is good bosses and not good bosses.

it is hard to draw a conclusion based on a few people's perspective. scarlet: fascinating conversation. vp a linked int a joining us from san francisco. coming up, hedge fund managers are making large bets that a handful of energy copies will survive the worst oil route in decades. ♪

scarlet: welcome back to the bloomberg "market day." i am scarlet fu. for frustrated parents struggling to put their children to sleep, a panacea has arrived. this is the children's bedtime book that was written by a swedish behavioral psychologist. it uses psychological tactics to

get your children dozing off in a fraction of the time it usually takes. according to reviews on amazon, it really works. it is being hailed as a bedtime phenomenon and is topping the amazon chart. with us as alix steel -- i have gotten many messages from you and 9:00, 10:00 p.m. saying "trying to put my daughter to sleep." mex: michael mckee e-mailed about this. the idea is that a parent has instructions that go with the book and the parents need to jan often, -- yawn often -- scarlet: contagious. -- they should listen and not read along. it comes with instructions, but this is by a swedish behavioral psychologist, so you would hope that there is something actually to that. once she goes to sleep, it is fine. it is getting her to sleep. scarlet: i was looking it up on amazon and it is fascinating to

see people who bought this book, what else they were interested in buying. they also bought "calm down time," a toddler to work. revolutionary12 strategies for your child's brain." alix and supposedly, the authors said, this is a verbal way to rock your child to sleep. i will report back to you on wednesday or thursday to let you know how it actually goes, if she can drift off in her sleep. scarlet: there is an online review that says "i'm actually speechless. i went from taking 2-3 hours to 12 minutes." alix: ok. know, thisst so you behavioral psychologist is going to follow up with helping children how to use the toilet. alix: i will be excited about that for sure. scarlet: alix steel with me as we look at how commodities

closed today. this is the real reason you are on -- let's start with oil prices. the commodity weakness story continues here. alix: something really interesting happened to well at around 2:00. yet. have a reason for you the price dropped by about 2% in 30 minutes. i did not see any catalyst in terms of headlines that talked about it. in terms of today, oil was weak overall because you are looking at continued oversupply. iran says opec production may find to 33 million barrels of oil a day. the market is already in a surplus. that surplus at a 3 million barrels of oil a day. it comes at the expense of opec's care capacity. the extra oil to keep in their piggy bank for a rainy day or some kind of outage. he has a longer-term effect as well. but short-term, it is the continued oversupply. scarlet: that story is not going to go away anytime soon. i wonder if the weakness has anything to do with the prospect of mexico and the u.s. swapping

oil. first of all, explain what happened in the oil swap. alix: the u.s. is able to spot 100,000 barrels of oil a day with mexico for about a year. we would give them light sweet crude, they would give us heavy crude. it is not a real export. it is a swap. the reason the market really took to this came at the end of last week, is that it means it is one kind of crack in the u.s. export ban. congress to repeal the export ban -- it has been pushed by congress to repeal the export ban. although wells fargo said it is not significant but it is that crack. if a volume grows over time, that is the issue. however, icicle has to exercise this right and it also -- mexico has to exercise this right and it has to be price competitive. we will see how long it can really -- if it actually moves the needle. scarlet: this is symbolic, certainly, but maybe not much more beyond that, at least at first.

filings show13f that managers are buying up energy stocks. alix: this is why it is significant. you one group buying shares of pioneer natural resources. that is the committee that david einhorn hated, calling it a mother-cracker. and even par capital management also buying shares of williams. the reason why this matters, though, is it discovered is the continued lifeline to survive october, which is when banks we determine how much money they are going to loan them are not. the spigots are still open, it gives them breathing room. scarlet: alix steel, thank you so much. alix, of course, we'll be back to the top of hour to take us through the close. gold prices -- just a quick mention -- are slightly higher today, building on last week's gain. over the longer haul, gold has been down, down, down. miners are scrabbling to cut costs.

goldcorp, however, has a different plan. it is still a brand-new $2 billion mine. reporter: kendrys ago, this subarctic landscape bore no sign of human presence, at least from the air. there were no roads, there was no airstrip, there were snow -- was no mines. littlestart off with a cap and a few trailers, and is the exploration continues, you need more people and more equipment. it is just a continuing challenge. reporter: it takes a lot to build a line in canada. it always has. infrastructure and the environment are always considerations. and in the north, so are the rights of first nations. >> i believe the majority of the first nations people are not anti-development. they want to have a say in how the development takes place. reporter: he is a powerful figure in canadian resource developing. the former national chief of the somewhere first nations, he is

best known for leading an international effort to stop massive hydroelectric project in québec in the 1990's. today he is taking the stage to cut the ribbon on goldcorp's newest gold mine. he is on board because the profits this mine is expected to make will benefit the local cree , and when the mind is exhausted 2030,me beyond goldcorp has promised to remove every trace. goldcorp has invested more than $2 billion. yes vacation is that over the life of the min -- the expectation is that over the life of the mine, it will get that money back and more. it costs twice as much to get an ounce of gold here as in the rest of the company and the gold prices keep falling. >> we will be producing gold at a price well below any reasonable gold price in the future, certainly well below $1100 an ounce today.

we will be making cash and we will pay back that investment. reporter: at this point it is all about the numbers. $1100 an ounce roughly where gold is trading today. but four years ago, when construction the again, it was as high as $1900. hits fulle the mine capacity in 2018, the cost to produce an ounce of gold could be less than $800. that gives goldcorp quite a bit of wiggle room. but any veteran of the gold industry is not a slamdunk. >> i remember very specifically sitting and looking on my screen and seeing $254 an ounce. but i also know how much value we have created since that time as the market moved. i expect we will do that again. right, itif they are will hit its stride just as gold prices start bouncing back making it one of the strongest lowest-cost mines in goldcorp's portfolio. if they are wrong, it may be cheaper to leave that gold a

kilometer underground. all right, now to move onto a look at the top stories this hour. a key measure of the factory output unexpectedly declined to the lowest in more than six years. the new york fed says the antistate manufacturing index plunged to -14.9. negative numbers indicate factory output is printing, no longer expanding. there were big declines in new orders and shipments. darden is turning to a board member to head up the real estate investment trust enough coming later this year. the lenihan was named ceo today. the owner of allah god and -- all of garden city would break off restaurants into a reit. it will be publicly traded and at least property back to darden restaurants. a wonderful surprise this morning in washington, d.c. ♪ scarlet: yep, that was music

legend stevie wonderful to he performed a free -- stevie wonder. he performed a free pop-up concert. people also got free donuts. it is part of his "songs in the key of life" tour. those are your top stories. coming up, the force is strong with disney. the anatomic my, has big plans for a steep rocks in anaheim and orlando.

fundet: this is a hedge owned by a private equity firm -- apparently investors asked to pull out 40% of the firm's assets. this is according to a person familiar with the matter. we do not have this confirmed by the company. the coo declined to comment. is carlyle group hedge fund

to seeing some withdrawals. one point $97 billion worth of redemptions. this comes after the hedge fund extended losses this year. the main fund has slumped 5.6% this year because of wagers on greece, energy, and financials. the hedge fund's problems began last you wanted posted its first annual loss in investment -- mortgage companies fannie mae and freddie mac did not turn out so well. matt miller also monitoring this as well. have you seen anything else here? of assetsjust 40% will be withdrawn and i will have by the end of survivor. this is not the first time this has happened. it had to win five billy dollars -- $2.5 billion in february. the same was true last year when at $1.9 billion of outflows asked april. over the last couple years, most

of the assets have left this fund, which is a global long-short credit fund, because of these bets on u.s. mortgage providers. it looks like more of the same here for carlyle group's clarendon road. 48% of the assets will be withdrawn by september because of problems with its bets on fannie and freddie. and investors just left the fund in droves. a lot of times funds like this will put updates to hold assets in because if you want to leave, that could ruin the best for everybody else who was involved in the fund. you see these outflows happen in waves. but 48% is pretty significant. it will be about $2 billion and 10 -- $2 billion again. $1.9 billion last year. this and begin losing money in a $2 billion increments. it would look like they only have $2 billion left in the fund

to invest. scarlet: matt miller, thank you so much good if you come inside my bloomberg terminal -- actually, you know what, you can't, i don't have this up. i am looking at carlyle group shares and it does not look like they are moving much on this breaking news. they were down about 4% before the headline came out. they barely moved on the news. but it does ring to my mike on bloomberg.com showing that their academic studies showing hedge funds only to have as well as you think. great column, available on bloomberg.com. it is due to the inherent biases in the way that hedge fund dated aces -- databases compiled the results. more after this. ♪ . .

scarlet: it is noon in san francisco and 3:00 a.m. in hong kong. surge of donald trump continues. has he managed to woo voters in

iowa this weekend? alix: target makes major management moves. what it means for the retailer. can a qvc owner save the struggling retail site? scarlet: good afternoon. i'm scarlet fu reunited here with alix steel. alix: i want to sing it -- ♪ reunited and it feels so good ♪ if we look at the 10 day average, the doubt down 20 20% and thecuse me, s&p down 26% lower volume. it is illustrating that nothing is going on.