scarlet: from world headquarters in new york, i'm scarlet fu. global stocks and bonds rally while the yen saints unsurprised stimulus from the bank of japan. brakes. economy puts the on growth in the fourth quarter raising concern about how much momentum it really has. an carl icahn gets xeroxed to split into two companies and he gets several board seats to boot. we want to head over to the markets desk wi julie has been tracking the gains in stocks in asia and europe. julie: with the bank of japan surprise movement to go negative on the interest rates, an additional form of stimulus. that has had a ripple effect across the globe. it was not spurred by positive news from the u.s. on earnings. it's been an adjusting session.

we are rising to the highs. down,hich is taken a leg has not taken a bite out of stocks. that has been unusual in recent days. it's been all over the map today and trading has not had a lot of rhyme or reason. there has been a lot of talk about russia's saying it's going to talk with other opec producers -- with opec producers about cutting production. then some holes are poked and that. that happened earlier in an oil went back up again and then it went down again. take a look at my terminal to compare what happened intraday between stocks and oil in yellow. stocks taking a leg up. that is really different from what we have seen of late for u.s. markets. i want to take a look at the groups on the move. energy is the worst-performing group. today,ogy is really back up better than 2.5%. it is not just tech.

notable that stocks are holding up despite that oil downturn. scarlet: we are ending the month on a strong note. in terms of january it has been pretty ugly. julie: it has. the rally we have seen over the past couple of weeks -- we're now up two weeks in a row but it's not which -- put much of a dent in what we've seen. still down for the s&p 500 today. i want to look at the groups today. what i noticed is that material and financials are the two worst-performing groups. i noticed that you best-performing groups. telecom services and utilities. utilities has consistently been on the top of that list will be check it on a daily basis. that has something to do with what has happened with rates. if you look at the 10 year yield we are seeing it at its lowest since about last april. 1.91%. for the year to date it has been sliding. that tends to be good news for companies that have a lot of debt like utilities, and have

high dividend yields. they look better by comparison. scarlet: a lot of implications. that he so much for that update on the markets. we want to check in the first word news. marquez those headlines. for ending talks syria's civil war continues today, but the main opposition will probably not be at the table. secretary of state john kerry will sit down with representatives from russia and syrian resident assan's government. -- the u.n. is brokering the talks, saying the humanitarian crisis must and. all sides are using hunger as a weapon. putting up blockades to isolate areas held by enemies. drone over it flew a a u.s. aircraft carrier in the persian gulf and took pictures. there was video today of a drone

hovering over what appeared to be in her cafeteria. the u.s. is not commenting. is the latest close encounter between ironic and the u.s. -- iran and the u.s. u.s. diplomats say they're having a hard time getting other world powers to get tough with north korea. the house of representatives quickly passed stiffer sanctions after the north atomic bomb tests earlier this month. the u.s. is proposing sanctions break his regime. among the ideas is cutting up its finances or oil supplies. the u.n. is not expected to back either plan. lawyers for the boston marathon bomber filed a notice of appeal today. i judge denied -- a judge denied his guilt to -- his appeal for a new trial. he was convicted last year and sentenced to death.

global news 24 hours a day powered by our 2400 journalists in weather than once or 50 news bureaus around the world. back to you. scarlet: back to the big story of the day. bank of japan surprising investors by adopting a negative interest rate strategy. weighed in on this impact on the global economy. >> i think they realize they ran out of stimulus from buying bonds. qe has run its course. maybe that's why they do this. japan,y, drop, banks in mitsubishi. the shares are tanking. you think this was a fail? >> know, it's a pretty bold move. abe like to surprise markets. it is at the cost of banks and their profitability in the intermediate term. if you look at details of the

agreement, they are still getting 0.1% on the largest amount of reserves. the right is unchanged. it's only on incremental building of reserves will they be charged the negative rate. there is no impact on bank profits right away. we will have to see what happens in the intermediate term. >> you got investors in japan that are probably looking to other places in the world to park their money. how much of this is coming to the u.s.? >> good question. hopefully it's not a flood. you would know what the exchange rate to get to week in japan. -- weak in japan. if he gets much weaker we will see congress get quite upset and maybe the administration. >> where is this money going? >> japanese companies have been very aggressive in terms of buying companies overseas. they have been moving some of their risk assets abroad. if anything i would suggest it

moves in the mode of foreign direct investment. >> you know banking backwards and forwards. take a survey the second and third level of the facts of this? particularly in united states. >> john brings up a good point. choose to buyese the united states? i think we see direct investment in the united states. -- is howis waiting janet yellen feels this morning. >> i always wonder. >> probably a little tired. was the head of foreign exchange intervention in the ministry of finance. he felt the only way to get the effect he wants this to surprise the market. he completely kept everybody in the dark except for his staff. they have been working on this for a long time. it's amazing how they could keep a secret like that in japan were people tend to talk and have

consensus views. it's quite a shock at how they came about it. >> is it a matter of personality? >> it is. drag and yellen do not like surpriseshi. and here you have japan. kuroda is an unusual person. he's not very japanese in terms of consensus. he is really quite a unique person in japan. as for yellen, i don't know what she was told or not. there is some aspect of a challenge here on the currency front. i'm sure they will be talking a great deal about it. >> you know they're thinking for the next meeting? julie? julie: we have got a chart here. another way to look at what is going on in japan.

for this white line is the bond holdings as a percentage of total issuance. when you have any kind of stimulus or quantitative easing and you have the government buying larger percentage. this is other types of financial companies holdings of that issuance which has gone down as a percentage of the total because the japanese government is soaking up the demand. and the line is the yen dollar rising versus the yen. it's another way of mapping what has been going on over there in japan. >> this raises a really important issue. -- chanceny joint he's thinking they have too much on the balance sheet? even compared to the united states. you think this guy has any idea what kuroda has going on in his mind? >> quye has reached gigantic proportions in japan. this is perhaps a more efficient

way of going about it. europe has done extensive -- it's pretty bold. >> officials have raised questions about how effective some of these policies have been at actually igniting inflation. we are still not seeing inflation. europe has had a negative yielded policy for quite a while. yet we are not seeing gung ho inflation. the you think it's going to work? >> i think the counterfactual is the most important thing. what would it have been without qe? >> the negative rates in particular? >> i think it will be better than having no negative rates. it was a tremendously risky move. the bank industry is opposed to it. the insurance industry is against it. up for the overall economy it will be better than it would be without negative rate. they were speaking with

the bloomberg team earlier today. for monday we have a conversation with fed vice chairman stanley fischer from the council on foreign relations . tom keene will be sitting down with him to discuss the economy, the fat and global monetary policy. that's monday at 1:00 p.m. in new york, 6:00 p.m. in london. coming up, carl icahn gets his way with xerox. the company is splitting into two. the ceo will tell us how the move came about. investors will not be sorry to see january the end. it comes to an end finally for stocks. will february be better? the economy grew last quarter but not by a whole lot. are we going to start hearing the "r" words even more? ♪

♪ scarlet: welcome back. let's head to the market desperate julie has a looking in on some's actor moves. . you are focusing on tech with big earnings julie: tech is the leader in the session in terms of groups on the move. the technology index is up by almost 3%. it's been one of the underperformers of the year. now it's coming back in part th the help of earnings. microsoft for example was out with earnings after close yesterday. they came ahead of estimates. the other large technology

stocks are also rebounding. facebook is notable because it is trading at a record. we had some earnings from some smaller tech companies as well. hard disk drive makers western digital and seagate out with their numbers. seagate's numbers beating estimates. they are talking about aggressive cost reduction assets. -- sky works, the supplier of chips to apple products coming out and beating estimates as well as forecast. the stock has fallen a lot recently because of what whave heard from apple. coming back a little bit in today's session. on the consumer internet side, consumer tech de, we are not seeing as much strength. electronic arts, the second largest videogame publisher in the united states has been trading lower today after its earnings came up below estimates. its forecast on this estimate -- missed estimates as well.

yahoo! a little weaker today. ebay has turned it around after falling sharply yesterday. i want to mention amazon is not on here because amazon is not a part of that s&p technology index. is part of the consumer discretionary index. it does not go towards the waitineight. feels like it should be a consumer discretionary company as opposed to a tech stock. we were talking earlier about january being this horrendous month for u.s. equities. that is across the board pretty much? as terms of risky assets. the safe havens benefited, gold included. seen anonds, with your increase in price and decreasing yields. if you look at something like wei on the bloomberg terminal, which is all the various markets

around the globe and how they are traded on a given day, there is a year today column which is red for everything. mark barton said tunisia has been a winner today. the loan winner. tunisia. scarlet: let's refund the xerox. it is splitting into two publicly traded companies. in luxury a document technology company which includes its namesake copier and a separate services business. carl icahn will select three directors on the service company's board. the ceo ursula burns says it was driven solely by the board. >> what has been reported is that this was german by mr. i cahn. analysis and its came to the conclusion without speaking to him at all. scarlet: joining us with more consumers is go is cory johnson. carl icahn gets his way again. he manages to get a split from xerox.

does this mean people get a higher separate business rather than the lowering of some of the parts for xerox? cory: they think it will be worse off apartment together. now they are saying they had come of it all in their own and that a shareholder is demanding. if you want to believe that, you can believe that. you are looking at a business in decline. both parts are in decline. there services business which is largely with the acquired with affiliated computer services acquisition which has been a disaster. and selling copiers and printers. both of those businesses are in decline. it's very focused on the u.s. and really suffering. when you have a business that's only doing about $500 million in profits a year, almost $64 billion in executive compensation to ursula burns and

others. the management of his company has managed to pay themselves quite well as a company. has gone down the tubes scarlet: to what extent is xerox involved in mobile when the cloud? cory: not enough. it was founded in 1906. it's dear to my heart. a company embedded in the community but is also embedded in customers in an old way. customers are doing computing in places and sending their services -- the way i.t. works dramatically changed by microsoft or by amazon web services. the companies that made a lot of money sending armies a consultants to help you run the technology in-house just don't have the desire from customers to do that kind of work anymore. whether it's a company like ibm trying to sell services and a lot of hardware to customers on premise or companies like oracle, hewlett-packard in a lot of pain, and you look at xerox

and their services business. companies just do not want it anymore. that is not whether focus is for i.t. it take increasing role in corporate america. scarlet: thank you for the prospective. cory johnson joining us from san francisco. coming out of the top of the 1:00 hour emily chang will have an exclusive interview with electronic arts ceo andrew wilson following their earnings report. you are looking at live pictures of president obama speaking about equal pay. we will bring you more coverage of this event coming up. ♪

♪ scarlet: welcome back to bloomberg markets. equities have had a wild ride so far this year. spurred anxiety about the global economy.

as much as $7.8 trillion was wiped out of global equities. the s&p 500 is down about 6% this year. for snapshot of how markets have fared so far i want to bring in all of her -- all over -- oliver. we keep talking about january is the worst month of september 2001. that is just hard to believe considering we have rallied the last two weeks. >> in defense number how strong we come out today. we might never that superlative to the worst since 2009. that's not the most encouraging thing either. i think the big thing has been increased volatility in stocks. the average this month's been about 23 compared to 60 and a half last year. up have seen the bix go -- vix go up. using turnover in sectors. there has been this sort of energy impact on the company that we talked about. if you look at how sectors are breaking down right now there

are some things that are curious. energy is outperforming the s&p 500 which is a little bit odd. scarlet: they are down 4.9% so they are so often not. >> the real weakness right now is coming from financials. it's also coming as a fair amount of weakness and technology stocks. both of those are interesting because one of them, the financials, that's an industry-specific but it has a larger macro picture. that's the interest rate story. and it's also the energy story as well. a lot of the things for the landing party to a lot of the shell companies taking on debt. you have info in tech. earnings are breaking down quite a bit. it's getting demolished. materials is getting hit will bad. closely behind that is info contact. -- and tech. you have to worry about the problems in the system. do they go beyond the energy? do they go beyond the rate

story? when you see the market get a rally in the past week based off of what appears to be central banks around the world, in some of the little bit discouraging in some sense. as reporters in december as the fed went, we could finally talk about some thing else. we are still talking about. economic policy one is that going to change? when will people want to be in the stocks? scarlet: the thing has not changed. if we come inside the terminal another thing you highlighted was fang stocks. facebook, amazon, alphabet. it has outperformed but so far this year it has been quite a losing bet. >> there is really only one working right now and that is facebook. they had a really big day. when you have those kind of companies people were in not just because they floated up with the rest of the etf's, they led the etf's.

they made the case for investment for a long time. when this company specific story in the fundamentals come at a question about how is a going to find its revenue and apple continue to have strong growth, all these specific company problems. the question is who is going to lead and pick up the slack? . that's a big question. scarlet: thank you so much. oliver covers the markets and bloomberg news. the latest read on the u.s. economy shows just a sputtering growth was at the end of last year. we will break down the gdp number and what this could mean for with the fed does next. ♪

from bloomberg world headquarters in new york, welcome back to "bloomberg markets." i am scarlet fu.

mark crumpton has news for managed desk. ark: health officials are trying to determine how the olympics could be affected by virus.ead of the zika more than half a million people from around the world are expected to attend the summer games in august. virus has been found in at least 24 countries. the world health organization is holding an emergency meeting on monday about the epidemic. michigan leaders may have known about flint's poison water long before they acknowledged it. workers were offered bottled water in january 2015. the contamination did not emerge until children tested positive for lead in their blood nine months later. governor rick snyder is expected to sign a bill today that would send $28 million to help flint. pentagon officials reportedly are saying more help is needed to defeat islamic state. "the new york times" reports that military officials believe

airstrikes alone cannot dislodge the militants from iraq and syria. they are telling the white house that the u.s. and its allies will have to send more commandos, advisors, and trainers in the coming months. the u.s. has about 3700 troops in iraq and a handful in syria. for the republican presidential hopefuls, the show must go on even without donald trump. the leading candidates squared off last night in their seventh debate. trump sat out because of his feud with fox news, but the front runner was still on the minds of his rivals. is not about: it donald trump. he is an entertaining guy, the greatest show on earth. this campaign is about the greatest country in the world and a president who is systematically destroyed many of the things that make america special. candidates the other took part in the debate, trump is holding a fundraiser for veterans. the iowa caucuses on monday will signal the start of presidential voting. "with all due respect" with mark halperin and john heilemann is

live des moines all this week ahead of the caucuses. coverage starts at 5:00 p.m. new york time. dayal news 24 hours a powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. scarlet? scarlet: thank you so much, market consumers are driving the u.s. economy but there is not a lot of pressure on the gas pedal. , held backrly anemic in part by weakening exports, slumping commodity prices, as well as the slowing global economy. here to help us break down the numbers is michael for only, chief u.s. economist for jpmorgan, joining us from company headquarters in the city. give us your read on the fourth quarter gdp numbers. is there an issue with the core underlying demand? it was pretty well spread across the board in terms of where we saw weakness.

connectnventories exports, but even consumer spending, businessman and, also came in weaker than trends. everyone took their share of the blame in the fourth quarter. scarlet: and do we attribute it to transitory factors like falling oil prices? michael: well, you know, there are transitory factors, there always are. but you got a keep in mind, when trend growth is low as 1.5%, you will have quarters that are 2.5%. -- we will have quarters like this where we cannot readily finger a cause like bad whether or something like that. this was a course where he had that factors and low trend growth, you can get some of those numbers. scarlet: housing was a bright spot in 2015 according to the gdp report but a fairly small part of the gdp calculation as well. do the strains trickle through the economy in appreciable as? michael: housing has been a

bright spot all year long. there was spill over into other sectors, but housing is still relatively small compared to the precrisis housing industry. there are knock on effects, but some the areas where we see weakness, like exports, there are negative knock on effects. housing is a bright spot. hopefully some of the dimmer spots aren't such a drag as we head into the first quarter. economy cannot get into 2% growth for the first half of this year, what does this mean for inflationary pressures and the 5% unemployment rate? are those in jeopardy, perhaps? michael: what is remarkable is even with this anemic growth we have seen the unemployment rate continue to come down and that has put some pressure on wages. wages are not growing fast but neither is productivity. labor costs are up around 2%. we are not obviously seeing a lot of inflationary pressures, certainly not when it comes to commodities or imports. the method price pressures are

hanging in -- domestic price pressures are hanging in from her than one would think if one just looked at the headline gdp number. scarlet: what does this mean for the federal reserve? carl riccadonna, our chief economist at bloomberg intelligence, noted that the fed has never raised interest rates when gdp was sub-2% on a year-over-year basis. does that still apply when we are tempting to get to a normal rate environment? michael: in fairness to the fed, that projection was made in december and a lot of things have changed since then. when we get to march, probably less rate hikes in their projection then. growth is obviously very important, always is, but they have put a lot more emphasis on inflation, and the inflation is as -- inflation news has been somewhat mixed but disappointing when it comes to things like strength of the dollar and weakness in commodity prices. i would just say it doesn't seem like there is any rush for the

fed to do anything. we don't think they move until the summer at the earliest. we think the march meeting is pretty low odds that they would do something unless things turn around real quick. scarlet: it is not taken off the table just yet. michael: not taken off the table just yet, no. markets go up and down. i don't think the fed will overreacted to that. they will watch the data. -- when it comes to gdp, pretty disappointing. when it comes to the job market, putting courage. -- pretty encouraging. scarlet: looking back on the fed statement on wednesday, there was no reference to a balanced risk assessment or tilted risk assessment. why do you think that is? does it reflect inability or unwillingness? michael: that was really curious that they didn't do that. i suppose in part it reflects some of the things you mentioned , but i think it could also -- this is a committee

of 12 individuals who each have strong views, and if they couldn't come together, perhaps they just left it out. there is that committee dynamic we have to consider. scarlet: interesting, considering the vote this time was unanimous and last time around it was unanimous as well. how important is that unanimity on the fomc? michael: i don't think it is terribly important. what we have seen under the bernanke and yellen era is being nonchalant about having 2 or even three dissents. onuspect as the year goes there are a couple of talks on the committee who made to send them up at night don't think it but be -- who may dissent, i don't think that will be the primary issue. scarlet: the bank of japan adopting a negative interest rate strategy -- ben bernanke has in the past them i believe in december, said that negative rates are something that the fed

should and probably will consider if the situation arises . what kind of situation would require the fed to seriously consider negative rates? michael: first of all, situation where they cut rates and push out communications. when the fed last considers the negative rates back in 2012 and 2013, they felt there were more costs than benefits associated. i suspect this time around they view the cost is lower because we had the examples of the eurozone, doj, and others, negative rates have manageable costs. and there have been some technical changes that probably made it more feasible. you heard a few weeks ago, even vice chair fisher signaled perhaps a little more willingness, if things get that bad and it comes to it, to consider negative rates. scarlet: i am taking a bel for tom keene, who will

speaking with fisher on monday. what would you want to hear from fisher? h, i think the topic we just talked about, negative rates is an interesting one. i would also want to understand the balance between actual and expected inflation and how they set policy this year. eroli,t: michael f thank you for joining us. it that again, special programming note, tom keene will be speaking with stanley fischer live at the council on foreign relations, 1:00 p.m. in new york, 2:00 a.m. in hong kong, 6:00 p.m. in london. coming up in the next 20 minutes of "bloomberg markets," forget talk of a recession. michael dell says the u.s. economy is "relatively ok compared with other nations." we will bring you his remarks. as we have been covering, the bank of japan announced a

negative interest rate policy attending to spur banks to lend more by punishing those who park there deposits in the central bank. how will this impact the prospect of negative rates in the u.s.? get your head in the game. we will be speaking with the ceo of electronic game maker -- video game maker electronic arts. that conversation with emily chang at the top of the next hour. ♪

scarlet: you are watching bloomberg. i am scarlet fu. here is what we are watching. the bank of japan adopts a negative interest rate strategy. what challenges lie ahead for japan's economy? china's biggest oil and gas producer is expecting a plunge in profit. details on petrochina's income statement just ahead. skyjames murdoch returns to . does it have any implications for the company's long-term strategy? first, let's start with japan. in a surprise move, the bank of japan is adopting a negative interest rate strategy while maintaining t the pace of asset purchases. the governor still faces an uphill battle. ofjapan has had decades deflation. the numbers that we saw earlier today, just hours before the bank of japan's decision, showed

that household spending was weaker than expected. it was way down in december, as was industrial production, the business side as well. with the market turmoil and with the slowdown in china, which is a big trading partner of japan, there is a lot of challenges there. the yen strengthening, which .ould have had some effect the yen fell the most in a year. the market moved up on this. the kind of signal that the are givingd boj could help, but there was a lot of challenges here, both with japan's fundamentals as well as the effects from china and the global market turmoil. scarlet: china's biggest oil and gas producer is expecting 2015 50-70% from year ago because of the global slump in energy prices. it seesna says continued weakness in the oil

market this year and is looking to cut costs. the company is citing falling crude and lower domestic and national gas prices for the drop in earnings. russia's central bank is leaving its benchmark interest rate unchanged for a fourth straight meeting, but once it may tighten policy if inflation risks intensify. the key rate will stay at 11%, in line with economists surveyed by bloomberg. and james murdoch is returning as chairman of sky, tightening the murdoch clan's grip on the pay television company. is replacing nicholas ferguson. this move is yet another signal that james murdoch is the heir apparent at his father's media empire. this has been your global business report. for more stories, visit bloomberg.com. let's go to abigail doolittle, live from the nasdaq, where she is checking out apple.

tell us what you see. bigail: we're looking at 2 tech stocks, taylor two cities in technology, amazon and microsoft. shares of amazon are down after the e-commerce giant missed estimates and failed to offer an inspiring look at 2016. even so, street analysts love this name on the potential for big growth from both e-commerce and the amazon web services unit. bear, merrill, deutsche bank are all saying to buy the date. it has notoriously traded higher on potential for growth. it did fall below the 50-day moving average significantly. the last time this happened, in 2011 and 2014 from the stocks fell all in. ,ow turning to the bul casel microsoft shares are up nicely after the company reported a great fiscal second quarter. the street really like the results driven by the cloud.

golden says it is all about the cloud. even so, this stock is still below its all-time record high of $60 set all the way back in 1999. scarlet: i mentioned apple earlier so why don't we end with it here? apple shares closing the week down 5%. tech permeates all aspects of our lives. vonnie quinn moderated a conversation between dell ceo michael dell and michael bloomberg, the majority owner of bloomberg lp, the parent of bloomberg news. they weighed in on whether the boom is a benefit to the economy. michael: i think the u.s. is relatively ok compared to the rest of the world. the digital transformation is on. companies are trying to figure out how to use this information.

that is definitely a high priority. go back to the emerging markets. when you look at africa, india, countries that -- i know africa is a continent with lots of countries -- you take a country gdp per capita of $1000, $2000. as it marches forward to $3000, $4000, $5,000, the amount of technology that gets consumed in their banking system, the energy istem, their retail system, thisous, because they need i.t. infrastructure to be able to do anything as it relates to the future. i'm quite optimistic long-term about that vonnie: international markets. in terms of the u.s. what is your gut telling you? are we heading towards

recession? mr. bloomberg: well, the stock market -- five years so the fact that it fell 10% you can say is a correction. these unicorns, as they call them -- i can show you how to get a billion-dollar valuation by selling you one share out of 100, $1000 -- vonnie: are you offering me serious? mr. bloomberg: not in bloomberg. [laughter] we can make up a mythical company because most of these are mythical companies. you talk about recruiting and a lot of people say i want to be the next mark zuckerberg and start the next facebook, but when you go to the incubators and say, isn't this wonderful, what are you doing, they have an app that lets you open your garage door from 3000 miles away. really great, but why would anybody want to buy it? there is a lot of froth,

building things that have no practical aspects and are not big enough to excite the customer to change the way they live. there is some of that built into our society. we are using technology a lot more, taking away the pricing power for the middle class in america, and you see that in people being upset and going -- the political structure you read about every day, a lot of people are upset. why? their jobs are going away and their kids are behaving differently and they are getting different information through social media than they did before without any guidance. to of this is very worrisome me and how we are going to deal with that. are structural things long-term in terms of michael running his business or me running this business. the economy is fine. scarlet: that was michael dell, dell chairman, ceo, founder, as well as michael bloomberg, the majority owner of bloomberg lp, the parent of bloomberg news. make sure to capture alex -- our exclusive interview with andrew wilson.

double take place at the top of the next hour, 1:00 p.m. new york time. coming up on "bloomberg markets ," the bank of japan shocks investors by taking its cue from europe and moving to negative interest rates. what kind of bearing, if any, does this have on what the fed does next? that discussion coming up. ♪

scarlet: welcome back to "bloomberg markets." i am scarlet fu. the bank of japan taking a page out of the recipient policy makers'-- european policymakers' book. it could be a while before the fed resumes tightening. emons joins-- ben us from l.a. you see a just getting started with negative industry -- negative interest rates. what is the prediction of how

low it might go in japan? ben: it could go a lot lower they're going to put negative interest rates on new money created based on the -10 basis points, not only existing money, but other central banks are doing the same system where the negative rates would be -45.6, for example, in denmark. they can go a lot lower as a result of the system. bit of a technical aspect of it but the fact that they put it in the statement that might suggest is not done just yet. if we don't get to more normalized deflation in japan through the weaker currency, it will have to lower the interest rate further more negative. scarlet: denmark, sweden, they have done this before and so did the swiss national bank. is their experience applicable to japan? ben: it is to that extent applicable because these countries face a low inflation rate and they have a strong currency and sluggish output.

says himself, it is a deflationary mindset and that is what he tries to break in japan. it is going on in europe, too. he is following the same footsteps. the question is what you really achieve with this. as you see, it is the risk on rally. the japanese economy remains and it was because after 2 quantitative easing program from we've not got inflation in a more stable way. is trying to step change program and people's minds about inflation. ultimately, japanese investors will have no choice but to go out in the world and invest in different markets. i think one major impact you can see from this is european markets, especially u.s. credit markets, probably benefit from this policy action. scarlet: we got the u.s. gdp report which shows fairly lackluster growth, if at all. there are a lot of questions

about inflationary pressures going forward. with oil prices still not quite stable just yet and japan moving towards this negative interest rate policy, what kind of option does the federal reserve have? i think the federal reserve has the option allete to stay put. the lower oil prices have done a lot of damage to inflation. the market is right about the projection of fed funds rate. it projects the first type to be -- first type to be 2017, first quarter, probability of one hike this year. scarlet: ben, thank you very much. we will be back with more.

scarlet: it is 1:00 p.m. in new york, 6:00 p.m. in london, 2:00 a.m. in hong kong. welcome to "bloomberg markets."

scarlet: from bloomberg world headquarters in new york, good afternoon. i am scarlet fu. investors are looking forward to put me january behind them. stocks in a major rally this hour. candy in the month with a strong finish? the forces with electronic arts, who sold 15 million copies of the game star wars: battlefront. does it have anything else up its sleeve? we will have an interview with ceo andrew wilson. and we will talk to the artist behind this project. thet, we want headed to markets markets desk, where julie hyman has been tracking all the moves. this is not going to do it in terms of erasing or paring much of the january loss. julie: no, but we had a directional change. there has been a bounce off the bottom for u.s. stocks in the

past couple weeks. it continues today in a dramatic fashion with stocks rising to the highs of the day. lately the move has been that investors don't want to go into the weekend long the market. today they do want to go to the market long, if i can get that out. we have this extend gains as the day has gone on. it has not been a pattern we have been seeing a lot lately. doneu look at what we have this january, since we are at the last trading day, we see a decline among 6%. this is the bounce i'm talking about, modest though it may be. we are still setting up for a poor january. take a look at bloomberg here. we are seeing it as the third down january in a row. this is the worst of the three for the past several years. january can be an indicator for the rest of the year. the saying goes, as january goes, so goes the year. we will see if this year is indeed that kind of indicator.

as we know, these kinds of folk sayings in the market are not always correct. scarlet: but what we have notices the positive correlation between oil prices and stocks, even though in the past it was an inverse correlation where oil went up, stocks would go down, vice versa. where is oil today? pick a moment. it has been all over the place and it has been a confusing trade. quite a bit, not on any headlines coming out, seemingly. it is the fourth straight up day for oil prices, the longest winning streak that wti has had in about a month. for the month to date picture, however you want to slice it, decidedly unclear. 9% decline from the beginning of the year on what was already on top of a negative two-year return. we have seen a bounce over the past several weeks. january 20, just like it was for stocks, the bottom for oil prices. 20% rally since then.

the question is, as always, what happens now? scarlet: exactly could 20% good when you put it in those terms, it is extreme. let's check in with first word news. mark crumpton has those headlines from the news desk. mark: january has been a particularly deadly month for refugees trying to reach europe by sea. the international organization for migration reports 244 people have died this month. last year,me period 82 people died. 4 miners were rescued after spending 36 days underground in a collapsed mine in eastern china. a class on christmas day, killing one mi -- it collapsed on christmas day, killing one miner and leaving 17 missing. an employee of the california jail where three prisoners escape is under arrest, accused of helping them break out.

the suspect taught english at the orange county central jail. police say the woman gave the prisoners maps. the escapees have not been seen since they broke out a week ago. in a scathing report, massachusetts senator elizabeth warren says regulators are not tough enough on corporate criminals. she also writes in an op-ed for "the new york times," "justice cannot meet a prison sentence for a teenager who steals a car but nothing more than a sideways glance at a ceo who quietly engineers the theft of lines of dollars. -- theft of billions of dollars. thesenforcement failures to principles." global news 24 hours a day, powered by out 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. scarlet: the game "star wars: battlefront" helped to supercrge sales for electronic arts. the publisher came out with results that were in line with analyst estimates for the stock

is taking a beating after getting a worse than expected outlook for its current quarter. it is down 8.5%. th"bloomberg west" anchor emily chang's in san francisco with the company's ceo. this is a bloomberg exclusive. emily: thank you so much. for to haven, than you. wars:e sales of the "star battlefront" game but shares are down. does that mean sales have peaked? andrew: listen, we had a spectacular quarter. engagement is off. we saw more than a full-year guidance on "star wars" in the third quarter. rpg as the highest subscriber rate in three years. "star wars: galaxy of heroes" launched in the quarter and we are top five downloads in 130 countries.

you will that it with sports in withll -- roll that sports doing well p i don't think "star wars" has peaked at all. i think it is just getting started. scarlet: do you see it continue to rise now that the movie has come out? andrew: our relationship with disney is a long one. galaxy ofont," " heroes," more titles in development over the coming years. ons is one of the best ips the planet and we will continue to have amazing content for star wars fans and gamers alike for a long time. paid, would you offer downloadable "star wars" content to keep enthusiasm alive? andrew: this week we announced the first set of free content and there will be more of that overtime. 4 expansion packs as part of our premium service that allows you to play on all kinds of things, including the death star.

that is going to be a pretty big and important way to play a "star wars" game. to rollill you continue out "star wars" games as the movies continue to roll out so that you guys continue to benefit from the franchise? andrew: absolutely. it is a long-term plan. emily: what is the plan? andrew: we have a long-term relationship with lucas and disney. we've talked about an action title in development out of our studios here. we have mobile titles. there is a yet on launch mobile title. nlaunched mobile title. we will continue to sport "star wars: mobile republic." emily: so what is the stock being punished? andrew: it is hard to know could anytime you look at the market in a small period of time you see irrational things. we raised guidance twice already

this year. as we look at the quarter ahead, we have taken the tack of being a little conservative and then doing our best to deliver quarter income for out, as we have done for the last 10 quarters. emily: you have more games you are releasing? which are you most bullish about? andrew: a great little indie game that will be a lot of fun and appeal to a broad range. ontinues to go strength to strength. hit when we launched it, we're doubling down and offering more. all three will do great and our catalog continues to do we and digital is such an important part of our business. on top of our console games, it continues to do really well. emily: what is adjusting is your

bulk of thet the "star wars" games were physical copies. that you had your best -- yet you had your best digital sales quarter ever how many more years will the consul be the primary way of delivering games? andrew: you can't put those things in the same sentence. will now play games to download digitally. 40% of the world's music is still purchased on cd. not in a lot of markets we are in but in a lot of markets that is still the preferred way to get music. in the coming years we will see an ongoing shift towards digital downloads and digital live services and content. we don't see that waning anytime soon. we are not putting a time horizon on other than we are seeing fairly consistent move in that direction. emily: you have talked about vr, mentioned it a little bit on the call. what is ea strategy around vr?

will be an important part of our world an important part of our industry. we'll be more utility, so you think about videoconferencing, a.r.ing, education, and and vr will be important aspects of that and revolutionize it as the utility. with video games, we get consumer uptake, the technology required to drive vr, and it will be an important part. we are invested at our core engine to make sure we can create the virtual reality expenses for any devices that come out, as well as 4 or 5 teams across the company right now working on specific experiences and genres so we can start to test those in the marketplace. emily: talk to me about which genres would be enhanced by the vr experience. andrew: anything that puts you

in a car, ship, a vehicle that moves, is a spectacular in vr right now could as soon as you start running around in a virtual space, it creates physical issues for some players could we are testing both sides. one, what is the low hanging fruit? how do we put you in a race car, put you in a rocket ship, whatever that might be, give you the sense of speed and feel when the world around you is moving? emily: does that mean new titles? andrew: new titles and existing titles that include the element. emily: apple is building up a secret vr team, so now you have apple and facebook and google experimenting with virtual reality. facebook not just experimenting how does that change the game for you when you are not just competing with the other traditional game makers but the huge platforms? again, we have always

been a platform-agnostic company. we have always worked at the core engine and technology level and game level to deliver awesome interactive experiences irrespective of what platform or device a player wants to use. we have apple and google and facebook playing there is a better than average chance this could be big and for us that is good news because that is more anders playing more games we as a company have a demonstrated history of pushing content to any and all new relevant devices. emily: how big do you think vr is going to be? andrew: i hope it is really big. emily: you hope it is big. do you think it will be big? andrew: i think it will be big. we are working hard and have our best in our brightest and have the core laboratories junior's right out with demonstrated an ability to really create innovative stuff over the years and looking at vr and how we best manifest the expenses for an enjoyable experience. emily: electronic arts ceo

andrew wilson, thank you so much. scarlet: emily chang, "bloomberg west" anchor in san francisco. that was her exclusive interview with andrew wilson, electronic arts ceo. shares of electronic arts in the biggest decline since 2011. they are performing better than the broader market. coming up in the next 20 minutes of "bloomberg markets," amazon stock plunges today. investors are starting to say "show me the money." in 2015a banner year but managers are growing worried about this year. and brazil is in its worst recession on record. the government is hoping billions of dollars in credit will and the downturn. ♪

scarlet: welcome back to "bloomberg markets." i am scarlet fu. desk,head to our markets where julie hyman has been looking at coveting movers, before we get to those company movers, you're looking at a sea of red at the moment. julie: we were looking at the s&p 500 and oil year to date. the laggard in the u.s. of the ock major benchmarks has been the nasdaq. 8.7 decline in the nasdaq. at one point it was closer to 10 or 11%. i was looking at the individual contributors to the decline in terms of how much they have dragged it down. you have apple year to date, down 8.5%. amazon, gilead sciences, declining today on a change at the top. these are the stocks that the

most to individually damage what is going on at the nasdaq. in terms of today, the nasdaq is rallying. the individual stocks that are contributing the most today to gains, microsoft, out with earnings and rising on those numbers, apple, facebook also, trading on the record, and alphabet finally there. amazon would be the notable outlier of these large-cap tech stocks that are up today. amazon is down today on the innings report coming in below estimates. and then just for fun, the graphic of jeff bezos, his market cap -- in other words from his investment in amazon and what it has done the past several years. down today, but still $48 million. that is not even his total net worth, of course. scarlet: that's a strong. that's ok. thank you so much. let's talk a little bit about amazon going forward, because when you look at the company, as julie mentioned, the shares are getting hammered on when the

property failed to deliver better earnings. holiday sales were up 22% but profits were skimpier than analysts anticipated. try tourn always attention away from its profits, but the piper jaffray senior analyst told bloomberg today that investors want to start seeing some form of tangible returns. >> the pace of margin growth is paramount on investors lines. margins are improving year-over-year, but i think investors are really trying to cope with this risk that amazon goes back. the good news is what they are spending on is producing faster unit growth. yes, amazonds, spends a little bit more, but they are getting a return for that very quickly. for you is what you make of this push into logistics? what do you think of them

leasing planes, trucks, getting out there and doing it themselves and taking that responsibility away from ups? is that a good idea for them? gene: for a company that doesn't say much of anything on their earnings call, they did talk more than expected about the logistics, and what they said is this was essentially -- the reason why, they are knowledge and they are doing it, is when they have this surge in orders, they need to have some a backup when ups and fedex orange there for them. that is what they are saying today could it is appointed they leverage all the infrastructure that ups and fedex has. it may be that they continue to grow that logistics piece at a small rate and use that for the surge in orders. >> gene, talk about the services business of it, because it is a relatively modest version of the business but it is growing fast. secular theme,ig cloud computing. aren't spending money

on hardware, they are just putting it all in the cloud. it allows for better costs and scalability. it drew about 70% in the december quarter. .5% in the september quarter continue to do a great growth rates. 10% of the overall revenue. something that investors believe could be part of the growth for the next decade. still ahead, etf's boomed in a 2015 so why are guys like jeffrey gridlock bearish? ♪

scarlet: welcome back to "bloomberg markets." i am scarlet fu. even the booming etf industry is not immune from the turmoil this month. in 2015 a banner year but suddenly fund managers are worried about 2016 . you were recently at an etf

conference where there were colorful quotes and big names. sessions werethe breakout sessions of how to use smart beta and trade etf's, very informative. but the main stage is where they get the big speakers and this year it was darker than normal. the industry is looking up. assets are as high as they have ever been, taking in more than hedge and mutual funds combined. however, the market turmoil has hit people. for example, you had jeffrey gundlach out there, he was pretty bearish. very, howe was also should we say, not very forgiving of what the federal reserve has done. eric: to put it mildly, he is not a fan of the fed. he said "what are these people doing?" he said they were frozen in their thinking, and he went so yellen'slling janet rate hike like pete carroll's

call in the super bowl. he was pro-etf. he has a couple of them. scarlet: very successful launch last year. eric: etf which is almost a year old, by the way. just cost $2 billion today as we speak. very fast-paced to get that kind of money. it has never had an outflow. this guy is taking his money right and left and that is difficult for an actively managed etf. gundlach is doing well in the etf space. scarlet: secret assizes janet yellen. what about -- as he could assizes janet yellen. they have basically put --ruleig group proposals proposals. one is liquidity requirement that would affect bond etf's, and derivative use, and the bond

liquidity issue would wreak havoc on things like hyg. what he is saying is you guys love these tools, speak up about this. there is a thought that it is more press-induced. the press has been talking about the bond etf's and leveraged etf's there have not been any cases of investors being harmed. it is all, oh, it could happen. he says we go back to high-priced mutual funds or buying bonds themselves. scarlet: he says don't push us back into the dark ages of investing. was talking about the aging of the financial industry, saying we really are an old industry, second only to walmart readers. eric: he has a great silent has the audience rolling. he is serious, though. the average age is 50 and they are worried about millenials. 66% of the plan to use a different advisor. he was trying to say, look

here is how i engage social media. he was giving kicks and trips. it was well received a very colorful -- well received and very colorful. he loves twitter, as we all know. scarlet: if you are not following him, you are missing out. you can read eric's story on bloomberg.com. our senior etf analyst here at bloomberg. still ahead, brazil's economic struggles. we will look at what latin america's doing to recover from the worst recession on record. to make it worse before it gets better -- it may get worse before it gets better. ♪

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scarlet: welcome back to "bloomberg markets." mark crumpton has the headlines from the news desk. peace talks are underway

in geneva, the main opposition group in syria says it will participate in the negotiations without an end to the bombing of civilians by the syrian and russian militaries. the talks of the first sense to rounds of negotiations collapsed back in 4014. michigan leaders made it known -- may have known about flint's poisoned water long before the public late knowledge to. an official says state workers were offered water in january of 2015. the contamination didn't emerge until children tested positive for lead in their blood nine months later. meanwhile, governor rick snyder has signed a bill that will send $28 million to help flint. a white chicago police officer accused of shooting a black teenager 16 times in 15 seconds is in court today. jason van dyke has pleaded not guilty to first-degree murder in the death of a 17-year-old.

the city has been on edge since dash cam of the video has release list year. saysrazilian president there is a nationwide effort to remove the breeding grounds of mosquitoes carrying the zika virus. the virus is blamed for infant brain damage. global news 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton, scarlet, back to you. scarlet: staying with brazil, the country struggling to emerge from the worst recession on record. the government of the biggest economy in latin america plans to offer as much as $20 billion in credit to eight agriculture and industry. this financing will help resilient companies hold onto workers and regain investor confidence. joining us from são paulo is an engine. -- anna edgerton.

the new finance millon -- minister says he will make this money available for certain sectors. what is your reporting indicating whether this will help result economy grow again? people areanna: excited to see the government do something, rather than just talk about austerity. to come up job was with measures to get the economy growing again. there is still some skepticism as to whether or not this is what result economy actually needs. scarlet: in contrast, you have brazil's central bank, which until this month, was tightening monetary policy to try and contain inflation, which was running at more than 10%. while for more credit now -- why offer more credit now? anna: he said yesterday there is no risk to inflation because this is liquidity that is already in the system. they are just making it available for different sectors. the hope is that this will help

companies keep their workers, have some money to invest, and not have to fire people to keep the employment rate rising. scarlet: they are not expanding the balance sheet to do this. he was just appointed last month as finance minister, does he have the confidence from investors to get the job done? what are you hearing on that front? anna: the initial reaction disappointment was negative. it started out in a slow month, hardly anyone in brazil with congress and recession in january. he had some time to get his bearings, talk about policy ideas and he will really be tested next month when congress comes back from recess. scarlet: last question, what is his relationship with de la rue facing her own clinical pressures with the impeachment process. relationshipa good with her.

they are from the same little party. the hope is he will be better able to talk with congress, that are able to push through measures that will be difficult when congress comes back and wants to talk about impeachment. joining anna edgerton us from são paulo, helping us that the stage for the woes that brazil faces. our next guest says the brazilian recession started seven quarters ago when will take some time to rebalance the economy. joining me is alberto ramos. you have called we are seeing in brazil and outright depression. the recession we are looking at, the depression we are looking at goes beyond just political leadership. president, will still face the same problems. alberto: absolutely. it's about the right policy. as an economy that accumulated a large number of macroeconomic imbalances and microeconomic sources. it could be the worst contraction of activity since the post world war.

have a very unusual combination of a deep, severe recession with inflation and double-digit's. we have double-digit fiscal 9.4% gdp. we have a significant increase in the unemployment rate that moving in the direction of double digits sometime in the second half of 2016. the combined contraction is getady at 9% area when we the numbers for the fourth quarter, most likely moving to double digits. contracting more than 20%. consumer confidence is very depressed. the challenge is to deliver the policies and to inspire. the main challenge is not only to do, but also to instill confidence. scarlet: does the new finance minister have that capability? alberto: i believe he does. it's all about the policies. the prescription is pretty clear, and will identified.

this is not the topic of along discussion with brazil need to do to fix the economy. it's pretty well identified. they need to recommit to deliver low and stable inflation. when you to get moving -- we need to change the medium. important structural reforms are needed. much more than just creating another tax, much more than coming up with a package of fiscal measures. we need to change the projected path. scarlet: you say it is fairly civil. is the prescription austerity or stimulus? alberto: it is agnostic. it's not simple from an economic or social standpoint. what we know is fiscal populism never empowers and then franchises, it creates distortions and ends up with inflation accelerating and you need a recession and high unemployment in order to cure it. as the challenge for the minister and it was the challenge for the previous minister and remains an open question. scarlet: you said the government

taxes too much, spends too much, and invest too little. result will be hosting the summer olympics soon. do you expect the hosting of that big global event to exacerbate the situation? is there any way hosting the olympics could actually be good for the economy that has an yet been priced in? events, is too small it's a short event, much less impactful than the world cup was last year. i know think it's going to change the diagnostic is not going to change. in terms of the outlook that we have for the economy going forward area. scarlet: we talked about the prescription is straightforward. when institution within brazil has the political will in wherewithal to push through these painful structural reforms? alberto: it's the responsibility of the government. theonly to articulate structural reforms, but to engage the congress and society as well. it's the responsibility also the

executive to find the minimum common ground with congress to advance the reforms that are needed. scarlet: what about the central bank? aboutd el-erian talks central banks being the only game in town. it is not the case in brazil? alberto: is not the only game in town. the responsibility of the central bank is to deliver on low and stable inflation. they're not delivering, that's the ultimate response ability. in the end, we have to have fiscal and monetary policy that are coordinated to alleviate. if we don't see significant moves on this, it will be much higher. i think in terms of the diagnostic of what needs to be done, you are still focused a lot more on the fiscal and on the monetary. there is a lot to be done. scarlet: is there anything to be done from the country's executives? corporateot of executives are feeling pressure, many of them facing jail with the first time ever. to what extent can make part just paid -- participate or

contribute? alberto: they need to feel confident that the macro is healing. and we are overcoming those imbalances. we have a lot of risk in the economy. beyond that, we had a lot of uncertainty. in an environment like this, how important these decisions are being delayed. is it too easy to pin the blame on china and falling commodity prices? if china recovers in due time, will that solve a lot of result problems? alberto: it helps, but this is self-inflicted. it's not a reflection of an adverse external reality. of the lackoutcome of fiscal discipline. inflation off of rejection and inward looking industrial policies that created those imbalances. we are forced to make the adjustments against an external backdrop that is less friendly and what used to be. this was not driven by external

factors. do you envision the situation with the imf may have to a lot result? -- you have to bail out brazil? alberto: now large amount of international reserves. i don't see a balance of payments crisis or country that facing a regime that running a reserves and a significant internal funding gap or needs the needs the support of the imf. the imf can play a very out tont role, they are overcome problems like we have today. but not necessarily the funding. scarlet: alberto ramos, thank you. head of latin america economics at goldman sachs. coming up in the next 20 minutes of "bloomberg markets," falling oil prices were hurting canada, but alberta needs money and issues a new royalty program. we have the details. the san francisco bay bridge will shine like diamonds for

good. we speak with the artist behind the spectacular light sculpture. tom keene will sit down with stanley fischer live from the council on foreign relations, coming up monday at 1:00 p.m. new york time.

scarlet: this is "bloomberg markets." i'm scarlet fu. let's check in with julie hyman, who has been keeping an eye on the winners and losers on this friday read. lote: we been talking a about earnings, there are also some stocks moving on this. bank of america is being upgraded to outperform from cell at the lsa. one mayo is going to be bloomberg next week

upgraded, $16 the new price target. he's more positive on large u.s. banks, their stocks are at recession prices, without an actual recession. j.c. penney being upgraded over at credit suisse. the analysts they are says it's not about the fundamental business case for the company. but a shift in messaging to prioritize a key down of the company's debt. and jetblue is being upgraded from buy to hold in part because of the pullback in the shares year to date. these are the winners, we have some losers on analyst calls to mention as well. darden was cut to underperform because of thes rich violation of going to this company and also some macroeconomic concerns. monster beverage got a call from citroen research earlier, remember that is the well-known shortselling research firm. he talked about how the company's valuation is credit rich given its prospects for

growth. winnersg back to the again, wanted to point out some stocks that were at all-time highs today. facebook we mentioned already, but mcdonald's, shares are trading at all-time high. and so is campbell soup, interestingly. mcdonald's, what a comeback. -- iet: i haven't think haven't figured out what a griddle is.- mc julie: i don't know. scarlet: you don't get #'s ns everyday?hashbrow today, the alberta government is releasing a royalty review that will inform energy companies of how much more the need to pay to the provincial government. pamela ritchie joins us now to explain. pamela, this is in addition to the companies paying corporate taxes? pamela: it is. it's in addition to corporal taxes -- corporate taxes paid to

the federal government, and then there's the world sea level. it's an interesting one. when taken on the ground, minerals, essentially money needs to be paid back to the province. it's been a long-standing issue over the course of the last several months. energy companies are very concerned about how much more they would have to pay. it looks like they dodged a bullet. they announced that the province of alberta is saying they recognize the oilsands industry is facing existential threat trade because of the u.s. shale boom and the price of oil, and they are not going to lay it on with further or higher royalties. they really have dodged a bullet. it's a bit surprising to all of us watching this. it's been anticipated thing. a 200 page report in the sum of his they are not going to change anything. essentially, there will be a flat rate for conventional oil, within the province of alberta, there is the oil sands area they

are mining the oil out of the ground. then there's more conventional oil which is easier to get out of the ground and less costly. and natural gas industry. so conventional and natural gas that they haveax to bear, royalties they have to pay to the government. otherwise, they are leaving the world to structure the same. because of the x essential threat. it's an interesting move. -- with -- ential to get: people just want to see the oil companies pay up finally after years of benefiting from rising oil prices. pamela: absolutely. there's been ar, left-leaning government elected to the province of alberta, which is unheard of. people will cap after the election and couldn't believe the left-leaning party had one. this is one of the things on

their platform they promised to do. they obviously did review it and look at the world to system and have come to this conclusion. investors andde, so on, it was one more thing piling on the industry. a recap of thes emissions caps the government recently instituted as well for oil companies. governmentssame have announced they are phasing out coal completely. and sourcing 30% of energy from renewable sources. they also are trying to -- methane gas is coming out of the oilsands area, reducing those by 45. all of those fit into this nice package for alberta's outlook. pamela ritchie, joining us from toronto. coming up on "bloomberg markets," lighting up the san francisco skyline. we take you behind the largest led light sculpture illuminating the bay bridge. ♪

scarlet: welcome back to "bloomberg markets." san francisco nights just got a lot brighter. starting tomorrow, the city's bay bridge will be illuminated with the bay lights installation. as a large-scale rp is made of 25,000 led donations -- led lights. it has returned to be a permanent part of the san francisco landscape. carol massar and cory johnson are here now with the mind behind the installation. cory: welcome back to bloomberg radio. a fascinating thing going on in san francisco. the guys behind it are joining me, the re-illumination of the bay bridge. he is in fact the founder of eliminate, as well as the artist responsible. leo, let me start with you.

were you trying to do with this piece of art that change the look of the city? leo: i was asked to look at the bay bridge as a canvas. i proposed attaching 25,000 lights to the bridge. cory: they are just lighting it up. each one has an ip address, you can actually write computer programs that will turn them off and turn them on, which creates the effect of movements. right.at's it's using all white lights, so it's monochrome, 255 levels of brightness per led. i did all my own custom software to create sequences of patterns. carol: this was originally your idea to do this. how important is it to do art projects, if you will come art installations on such a grand scale exists -- like this? she is saying is,

doing an art project in such a big scale, it's difficult to deal with. ben: we had great support. there's something about leo's interpretation of how you create a canvas of light out of the bay bridge. his solution inspired people up and down the board, from bureaucrats inside and they really power into the challenge. cory: when you saw with the art was supposed to do, i suppose to have this sense of movement. i've seen some crazy stuff. i feel like i even saw space invaders happening. but a real sense of movements which is particularly galling if you sit in traffic on the bridge. of the patterns are abstract, no images or text. it's meant to evoke all of the connecticut activity around the bridge. the movement of water, cars. but in a loose way, interpreted as an artist, not using sensors or video. carol: talk to the process about doing it. you talked about doing something, putting it together,

as stunning as it is. it's been an unbelievable process of having this crazy idea and being able to actually realize it with a tremendous amount of help from so many people, just a great team. it's pretty extraordinary. cory: what did you have to do to marshall people in the city? you had a lot of volunteers and a lot of volunteer money attributions. who gave, and how did you convince them to give? ben: everyone sacrificed towards the common good. thousands of people do that. cory: i don't think i gave a diamond. ben: we will get your time yet. go to eliminate.org and dedicate a light. $100 will help create future art heard. there is still chance to dive in. cory: it's interesting the role of art plays in the city. i'm looking at what happened to the city this week. the super bowl is coming in eight days, nine days.

the city is awash in corporate logos. i think it's disgusting. you have beautiful buildings in san francisco that have a verizon logo slapped on them, a super bowl statue. what is the role of art in the city? ben: i think the bay lights are redefining what art is. the reader how we see ourselves. , ithow we see each other contributed to the region. that the determined bay lights would drive $100 million on an annual basis into the regional economy. cory: how? ben: 1% bump in tourism. it's becoming a thing that people stay in action night to experience. -- an extra nights to spirits. cities,es more livable

increases in already inflated real estate market, it has an incredibly comic impact. that's not what's important. what's really important is the emotional connection created in the city and beyond. davis, leo villareal. it's a to cool thing to see in the city. back to you guys a bloomberg television. scarlet: thank you, karen johnson and carol massar of bloomberg radio. -- cory johnson and carol massar. the bay bridge is during the golden gate bridge a run for its money. a special programming note. on monday, tom keene will sit down with stanley fischer live from the council on foreign relations. monday at 1:00 p.m., you don't want to miss that conversation. ♪

york, it's 2:00 in new welcome to "bloomberg markets." ♪

david: from bloomberg's world headquarters in new york, good afternoon, i'm david girl. gura.id companies are cutting back thanks to the strong dollar, and market turbulence them even more. the central bank of japan taking up page from the ecb playbook as it introduces negative rates. does the governor have any leverage left? toox taking drastic action cope with a changing market, splitting off services acquired five years ago. will the decision address the fundamental issues the company has faced? first, julie hyman has the latest. julie: stocks are near the high for the session today, a friday where people want to belong into the weekend. it's been a rare occurrence. it looks like the second straight up week as