carol: from bloomberg world headquarters in new york, good afternoon everyone. >> i'm tracey loa. here is what we are more -- what we are watching at this hour. will it put pressure on the fed to hold off on another rate hike? exxon oil is putting mobil into a budget crunch. they are turning down this they get on capital spending as they scale back their production target. tracy: breaking news here, mitt romney is set to speak out against donald trump. plans toformer nominee say as they try to slow down the momentum of the former gop front-runner after his big super tuesday. the fed saying that labor market conditions continue to

improve, saying that most districts reported consumer prices holding steady. the key one, economic activity expanding in most districts. last month we saw the economic activity expanding and nine of the districts, getting a similar story from the fed beige book. also saying that wage growth varied considerably by variance there. we will get more on the labor market leader once we get that monthly jobs report from the government. get right over to the markets desk where julie hyman is sitting. any reaction, julie? julie: typically we don't see a big reaction to the bache book, right? it just gives color. the fed saying that consumer spending rose in the majority of the middle of in headwinds from a weak energy sector. no surprises there. second that the stronger dollar with global headwinds is hurting

exports again. we are already seeing stocks in a tight range and they remain within a tight range as well the nasdaq has been the day and it remains it as stocks bounce around. looks like it could be the smallest intraday range for the s&p 500 all year unless something changes. that said, of course, the rally is pretty much intact for 2016. you can see the s&p 500 is still up 8% as, overall, we are still seeing the rally paused today rather than shifting radically and direction. >> some strategists have been sounding harris notes. julie: that's right. who works for renaissance macro, is saying that the rally that we just looked at has been lackluster in volume. hashan look at the #--

tag. here's the volume on the bottom, i want to expand it to give a better look at what happened. you've got the green tracking line here, essentially volume has been jerking lower at a time when stocks have been going higher. that's not a good sign. he's also looking at bretz, something else that's not a good sign. not what you would typically see at this point in a rally. he's not the only one. we have other strategists making various calls about what's been going on in the market. we had a look at some of them. ubs saying that u.s. stocks are short-term overbought. we are seeing bank of america cutting their earnings-per-share forecast for the s&p 500 and are well regarded technical strategist saying the bear market has unfinished business. one other thing that we have been watching is the percentage of stocks trading above their moving averages.

again, this is a chart that you can look at at 400 17. it's lower than one year ago, picking back up, still less than half of the company's in the s&p -- half of the companies are trading below the indicator. from theother headline beige book. we had so much market volatility banks citinge fed market turmoil in consumer hesitation. there is some concern among consumers about volatility. things theof the big fed has been worried about is the market effective that volatility. carol: low demand is up in most districts, also another important headline that we are getting from the beige book. let's check in on the first word news this afternoon. mark crumpton has more. mark: thank you. ben carson is going to reportedly say in a statement

that he doesn't see a path forward and will not a pit -- will not attend the debate in detroit, but he will not suspend his campaign formally. with super tuesday behind them, presidential hopefuls on both sides moving to the next political battleground. contest is march 15, when five more states are up for grabs, including florida, ohio, and illinois. ,onald trump widening his lead 285 of the 1000 plus delegates needed to win the nomination. ted cruz has 161. marco rubio has 87. on the democratic side, hillary clinton has a big lead over rival bernie sanders with 1001 delegates to his 371. a new jersey newspaper says that governor chris christie should resign over his endorsement of donald trump. adding that if he refuses to step down, new jersey citizens

should initiate a recall effort. chris christie quit his own presidential campaign after in earlyting finishes contests. mitt romney is expected to weigh the presidential race tomorrow. a source with knowledge of his remarks says that he will lay out his case for why donald trump should not be the party nominee. there may be a clue in the nearly two years search for the missing malaysia airlines flight. a u.s. official says that an airplane part found along the coast of mozambique comes from the same type of plane. the parts are being sent in for analysis. indonesia has lifted a tsunami warning following a powerful earthquake off the western coast of sumatra. agencies say that the magnitude registered between 7.8 and 8.3. so far there have been no reports of injuries or damage. global news, 24 hours a day,

powered by our 2400 journalists in 150 news bureaus around the world. back to you. tracy: let's get back to our breaking news. the beige book headlines are out , just a few moments ago. for more analysis we will bring in our bloomberg executive editor of global economics. dan, how much attention should investors pay to the beige book given that it is kind of a collection of anecdotes? >> it is a collection of anecdotes compiled by the 12 district banks. compiled by the kansas city fed and it tends to be more hawkish. but pay attention in the sense that it is consistent with a picture of an economy that is far -- far from falling apart. narratives such as this we discussed in january, like the sky was falling, there's no sign of it here. this was an economy going along showing rank we

see net in recent numbers. the way the market is continuing to improve, not that it's super awesome, there are some things to worry about, but this is modest to moderate in terms of an expansion. carol: what's great about this is that in a market where there is uncertainty out there in terms of the outlook, we do get a feel for what's going on in and housing demand and consumer spending, which is helpful at this point. speaking, parts of the economy leveraging this activity have held up pretty well. what does trouble the officials is -- what is the impact on the domestic economy of the softer economic growth abroad with some of the market volatility? bill dudley hinted at this in his speech the other day china. the domestic economy is really quite ok.

the softer global environment, how does that impact here at home? what degree of risk management do we need? i think the question that a lot of people have right now, how does this impact of this data depend on the set? if the fed is truly dependent on the data, everything looks good, we would assume that maybe we are getting another rate hike? dan: well, we will know when they publish the sep one week after next. when they publish it in december it projected for rate increases in 2016. few people now think that will happen, but they are not walking away from the gradual path. we might see something like to penciled in. possibly three. but you will not see them pencil in four or negative rates. it's interesting, they move depending on those data points. again, if we cast our minds

back to january, the market was effectively pricing out any rate increase. we have seen some stronger data from the labor market on the consumer side as some indication that wages are starting to pick up. some of them, by no means all, have been placed back on. this will be a very closely watched sep. to what extent, will the fed be influenced, if at all, by events outside the u.s.? you mentioned china earlier. how does that affect the u.s.? dan: officials have made it clear that that's their principal concern. mentioned this in his speech on china. if they could quarantine things off, they would say that things are quite ok. big unknown is what comes from abroad. carol: thank you so much.

coming up next, john shore is after 10 years to start a job at hedge fund arena investors. where does he see a market moving? coming up after the break. ♪

carol: all right, we have some news from the campaign trail, coming from presidential hopeful ben carson. no hopeful path forward for his presidential bid and he is saying he will not attend the gop debate in detroit. candidatee another potentially backing out. we will continue to track those headlines and bring them to you as they are known. tracy: no path forward. all right, global investors remain on edge. investors are watching shifts in

the american political landscape, of course. earlier today, ryan belsky reminded us to keep our seat else fastened. the fact that so much investing has been focused on what the fed does, now we have to worry about what is -- you is going to be leading the country. this will be a volatile summer. we stand behind the call that the s&p will hit 2100 at your at, but we did also called the market would pull back to 1800 this year and it already did that. we think it is going to be volatile and politics will have a big part of that. for more on these concerns in the markets, we are joined by john short, who just became president at arena inestors, who specializes lending to companies unable to get bank loans. to what degree is this uncertainty weighing on investors? that what the

results told you is that the markets are pretty much resigned now to trump likely being the republican candidate. you know, there were really was a ratification more than a disruptive event last night. certainly, a lot can happen between now and the ultimate nomination and the competition for the white house. but i think that last night had a cooling effect on the markets and provided some clarity. carol: what clarity did it provide for you? john: for what we do, in our area, we really don't look at the stock market, the direction of the stock market that much. we look at the volatility of the stock market. so, our investing is less data adjusted then volatility and fundamental investment. so, although we are interested in it, it's not something we follow on a daily basis. let's talk about the

fundamentals for a second. we were just talking about u.s. data points, looking pretty good. what sort of sentiment are you getting from them? carol: the sentiment we are -- john: the sentiment we are getting is that investors really want something to begin with. -- to believe in. worry that has built up, whether it be china or even geopolitical risk, there has been no conviction either way. there has been volatility, which could be good for some investors , but what you are finding is that in that environment, people are holding onto cash. they really want to see a trend going forward. we have seen a nice rally for the last couple of weeks. certainly a nice one yesterday. but i don't see people -- you mentioned it earlier in the show, some prognostications. i don't think that people are buying into that, necessarily, that the ride is necessarily over.

we do think that there will be some opportunities out there. how long have you been recommending that they hold onto cash in this environment? john: client seven holding onto cash for a while. carol: over a year? that they did up their cash holdings. for our firm, arena investors, where i'm going right now, what has been going on is a good thing. people with cash right now can provide liquidity. what you are seeing in the market is the haves and the have-nots. the bifurcated market. for those that cannot access capital through normal channels, there is an opportunity for people who have that capital to get to them. tracy: let's talk about your new job for a second. congratulations on your first a. you have been it pimco for a decade. how did this new job come about?

carol: -- john: again, if i analyze what's going on right now, with stocks that could be potentially overpriced, you have a market that is being unserved. ,here are a number of companies institutions, organizations and the market that cannot get bank capital. not because they are not credit ofthy, but because noneconomic reasons. a process reasons. so, in analyzing their value could come from in the next few years, i was very attracted to that market. in looking for a firm to join with, i was looking for someplace that was very client centric. that had a lot of experience in this space. our team of investors arguably has one of the best track and history of

investment in these assets. so, it kind of came together in that way. as life usually does. sounds like there's a fair amount of demand out there. it's mid to small. in $5are not interested million loans to $10 million loans. they are asset taste. we get them based on receivables, inventories, or hard assets. the 30%,alue is in 40%, 50% range. if you were to rate any of these companies, they would be in the high-yield space, but no one is giving them capital. they are the unloved. if you can provide them capital, you can create some very attractive returns for your investors. some people would certainly call that shadow banking. tracy: we have seen mixed

attitudes from regulators when it comes to shadow banking. some are happy that risks are being moved away from deposit taking banks, but others are worried about risks building up in the unregulated sector. how you view that argument? carol: i think you -- john: i think you have to view it this way, there is a large swath of the economy that needs access to the economy. -- access to capital. at the same time, we cannot go overboard like we did in 2007, 2008 and more. there is definitely a space for nonbanks to provide capital, but it has to be done in an intelligent way. with such idiosyncratic which we talk about, it really depends on who you have doing it. carol: thank you so much for joining us on your first day.

congratulations. john: thank you for having me. studios are wrapping up spending on original content. we are following the money in media and what they are doing in terms of that spending, next. ♪

carol: welcome back to "bloomberg markets," everybody. tracy: media companies have a strategy to combat declining viewership. it's spend, spend, and spend. years ago cable companies could keep viewers with reruns, but that's a how it works today. netflix, paying billions to churn out a barrage of quality entertainment every year. for a look at the impact it's having on the overall industry, let's bring in lucas shaw, from

bureau in los angeles. great story. if you go on the terminal we have a great chart that breaks it down. netflix is spending something like what, $5 billion? lucas: yes, that's up from close to $4 billion last year. the numbers have gone up astronomically. something that most of these --ia companies use to say they will never be profitable. at the same time, netflix is having so much success getting buzz around the shows and bringing in new customers, it's forcing these companies to spend more themselves to keep up. in your article you talked about an arms race, implying a spiral. how big can these programming budgets get? if you count sports, it goes even higher. we will see years where media companies spend $7 billion year

just on programming, some of which they are making, some of which they are licensing. it's all great if they get the eyeballs, but that's in question at this point? lucas: as you say, if you spend and you get a hit, it's worth it . if you spend and you don't, you get less money and have less to show for it. the real challenge, i think, is that these companies are trying to do the exact same thing. they have seen the success that they've had with him at crohn's, walking dead, empire. they all want this drama to convince a lot of people to watch a show, not only watch it but watch it live. not everybody wants the same thing. a lot of these resources are going to produce the same thing and there is only so much that people will watch. carol: what marks the turning point for investors? the moment that they get angry at these big spends on new programming? lucas: i think that if profit

start to decline materially or if you just start to see -- it's happening with companies like viacom. viacom is spending a lot of money because their programming, they weren't really investing in programming and it wasn't working, so their ratings went down. investors started to wonder -- what the hell is going to happen to these companies with ratings that don't matter anymore? carol: there are a lot of options out there for all this content. lucas shaw, joining us. still ahead on "bloomberg markets," e&p companies are shedding attributes to attract investors. does that mean that oil giants can swoop in for acquisition? coming in. ♪ -- coming up. ♪

from bloomberg world headquarters in new york, this is "bloomberg markets." carol: tracy: i'm tracy alloway.

we have first word news this afternoon with mark crumpton. mark: ben carson is telling his supporters in a statement he does not see a path forward and will not attend thursday's debate in detroit. however, he has not formally suspended his campaign. instead, he will speak about his political future on friday at the conservative political action conference in maryland. former presidential nominee mitt romney will speak out tomorrow in a speech in utah. he will end his case for why donald trump should not be the nominee of the republican party. that is according to a person with knowledge of the remarks. does notromney believe trump is the right person to lead the party. will not say he endorse another candidate or enter the race himself. the supreme court appears sharply divided over texas abortion clinic regulations. it is the biggest abortion case on the docket in nearly a

quarter century. the case involves a texas law that imposes strict requirements on abortion providers. opponents say the law has already caused half of the states 41 clinics to close. anthony kennedy holds the key to whether the court splits 4-4. that result when the regulations in place but would not resolve the issue nationally. vice president biden will meet with key middle east leaders next week. he will travel to abu dhabi and dubai and the united arab emirates. he then heads to jerusalem and ramallah for meetings with israeli prime minister benjamin netanyahu and palestinian authority president mahmoud abbas. his final stop is on, jordan with a meeting with king abdullah. the tampa bay rays are heading to cuba, to play an exhibition game against the cuban national team. president obama is expected to attend during his visit to cuba later this month. the rays are the first big-league team to travel to the

island in nearly 17 years. global news 24 hours a day. back to you. carol: commodity markets are closing in new york. let's take a look at the biggest movers. gas, on pace to close at its lowest since 1999. forecast of a mild march weather in the eastern u.s. pushing futures lower for the second time in three days. down almost 4%. down 28% for the year. choppy trading for oil prices. gains and losses today. prices settling in around half a 60 a barrel.. speculation that low gasoline prices will ultimately boost demand. tracy: we are going to stick with oil.

exxon's annual analyst meeting wrapped up a few hours ago. they say they scaled production targets and spending on capital projects will continue to draw up through the end of the year. carol: vincent piazza was at the meeting. did the oil giant say, if it is going to take advantage of the damage in prices, to maybe do some buying, do some acquisitions? vincent: there has been speculation about the upstream m&a opportunities for exxon. management was quite candid about the existing disconnect between seller and buyer expectations, relative to valuation of u.s. onstream assets, for example. the commentary suggests that they have plenty of opportunity to deploy the capital internally . at this point, have no interest in diluting shareholders via equity issuance, to pay for an acquisition. they would likely by assets,

especially assets in bankruptcy. exxon would need scale to move .he needle to replace reserves growth has stagnated. not sure it would be willing, at this point, given seller expectations, to consummate the type of sizable deal that they would need to move that needle, and considering the last significant move they made was roughly $412009, billion. tracy: it seems like there is a bit of tension here between spending money potentially on acquisitions and satisfying shareholders who are worried about the drop in revenue. what kind of options are on the table for exxon? exxon raised about $12 billion monday. losses between six and $7 billion up the cash flow in 2016. dividend is sacrosanct.

3.5% yield on that dividend. paying a roughly 12 million last year -- billion last year. they definitely have the financial flux ability to whether that storm and look internally for those investment opportunities. in terms of oil prices, where do they see them going in 2016, do they see that we have had a floor? the visibility has, indeed, interior -- deteriorated more broadly. management was clear, there is a lack of detail because of that uncertain environment. china is in transition to u.s. gdp will likely go sub 2%. there is some tension because of the lack of clarity more broadly . also, given the geopolitical tensions in the middle east, that also as an element of additional uncertainty. tracy: thank you so much, vincent piazza. joining us on the phone.

carol: let's move to the markets, a volatile start to 2016. the s&p 500 climbing up of its february lows but still in negative territory year to date. so what can we expect from the markets in march? in boston is art hogan. great to have you here. what an interesting year so far, only march. any indication, in terms of the trend the line that you are seeing that may tell us what is to come for the rest of 2016? of the year and all of a sudden things went into a freefall. part of that was a sloppy china currency devaluation, part of that was realization that earnings for 2016 were too high. one of the main things was a real fear that the fed was going to raise rates four times in 2016. add all those things together and the market really went into a tailspin, had a significant correction, re-rated a lot of

sectors. lo and behold, we get halfway through february and we flip a switch again. what we are not trying to do is price in a recession. the talk around the slowing global economy has turned to, yes, we will have a slower economy but much closer to the 2% growth rate we have seen for the last several years, but not that inevitability of recession in the u.s. we are trying to re-rate things higher. february, the lows of and i think the trend seems to be better. the most important thing is we have had three significant headwinds that have turned into tailwinds. oil trading above 30. china seems to be better at what they are doing in terms of currency and stimulus. the third thing that is as important as anything else, the mindset, narrative about we are done only recession because the rest of the world is falling apart, has turned a bit. that is because of the economic

data. tracy: i want to move away from the fundamentals -- which i thought i would never say -- but let's look at seasonality. yesterday, itlly petered out today, but how much does seasonality and the idea of the new month play into stocks? art: march historically has been a very good month for the markets. it tends to be up more than it is not. one of the things you look at his what is the setup? we are down significantly on the year, we and february very flat, down in some cases on the major indices. there is room to grow to get back to unchanged for the year. the other thing is we get the sense that we are getting a clearer picture as to who the candidates will be in a general election. that is the tricky part we did not have in january and february. the third thing is a narrative change. you come into the month of march and a lot of people are pressing

shorts, thinking that some of the run-up has been overdone. lo and behold, you're caught off guard. march probably settles in. we will see continued stabilization with the price of oil, china will have to keep a steady hand. , wee look into the spring would love to see lower energy prices translate into consumer spending that is something other than autos and the home. that is a large part of where the savings upon have gone. carol: you are watching transports. i love what is going on in the trepidation set her. i think it tells us a lot about the overall markets. -- transportation sector. art: i love that you said that. the transports let us down at the start of 2014, they signal the market was flat. they rallied earlier than the market. that is telling us, you cannot hide economic activity from the transports. they are back to being unchanged on the year, which is

phenomenal. i think the rally is something we need to pay attention to. carol: good to get some time with you, art hogan. on the heels of super tuesday, we have mitt romney attempting to stop donald trump's momentum. is it too little too late? ♪

carol: welcome back to "bloomberg markets." i'm carol massar. tracy: i'm tracy alloway. carol: we are learning mitt romney will lay out his case against donald trump. romney, who was the 2012 gop nominee, is set to speak tomorrow afternoon. he is not expected to endorse anyone or enter the race

himself. the news coming after trop racked up victories on super tuesday, taking a significant lead in the delicate count and seemingly cementing his hold on the nomination. joining us now is mark halperin. super tuesday, we can cross it off the list. now we are focused on mitt romney. what do we expect from him? he has made it clear that he does not think donald trump is the right person to be the nominee. he accepted his endorsement and i high-profile way for years ago but has now spoken out mostly on twitter. we had one or two interviews saying that -- a reason questions about donald trump. recently regarding his philly to address head-on, the support of david duke, what's a premises groups. that condemnation from romney was powerful, but will be more powerful in this address tomorrow in utah. romney has a big falling within the party and i suspect will speak with a fair amount of

clarity about why he thinks the party should not embrace, endorse, or support donald trump. tracy: is this the start of the big fight back against trump against the republican establishment, or could we see somebody like cruz team up with trump to get rid of marco rubio? mark: certainly part of what would emerge as month is being called a belated and unlikely to succeed effort. most believe trump will have enough delegates by the national convention but the game here is to keep them from having a majority and perhaps having candidates team up now to try to block him from winning individual states with more spending from rich establishment types. then at the convention. romney will be one voice, an important voice, but one voice trying to do this difficult thing. contests this weekend, lower profile than super tuesday, where trump may have difficulties, but he is right now on a path to get the

most delegates and perhaps a majority, depending on how he , in in a couple of weeks those states that have winner take all rules. he has a chance to be unstoppable. the question is can romney and others keep him from winning than outright majority? got a headline about ben carson saying he would not be a part of the debate in detroit. it looks like he is not making any progress at this point. this is just another one we can expect to drop out at this point. it makes sense. mark: he has not come close in any state. he had a period where he was doing well in the national polls, some of the states, but his campaign ran into problems and he never recovered. his support now, the people who would be most excited about him would be ted cruz. a lot of cars and supporters may will go to cruz, although they had a dustup in iowa. the biggest implication of his departure will be tomorrow night's debate in detroit, where

we will have only four people on stage. that is the fewest number we have had and for people compared to five makes a difference. four guys engaged, all believing they have a realistic chance, in trump's case, a very good chance. tracy: we have not spoken about the democrats yet. clinton pulled in big wins against sanders. is she going to go after trump now, focus her energy on her republican opponent? thingshe will do two simultaneously. turn to the general election, trump, and the republican party in general. -- if sheest to continues to win -- try to get bernie sanders out of the race, so she does not have to do with the base, so she can focus on general election fundraising and not worry about being roughed up by sanders along the way. she will be focused on both the increasingly, she will try to

act and talk like a general election candidate. carol: mark halperin, thank you very much. don't miss "with all due tonight at 5:00 eastern time. also, the former communication director for jeb bush. the meantime, it is time for the bloomberg business flash, a look at the biggest stories in the news right now. honeywell says sales from existing businesses will increase in 2017 at more than twice this year's pace. the company is getting more aerospace work and production of chemicals is expanding. dropped ajust proposed 90 billion offer to buy united technologies. carol: carl icahn says it new jersey approves two casinos outside of new york city, he

will pull his plan $100 million investment into his newly acquired trump taj mahal casino in a clinic city. he says the competition would devastate atlantic city and make it impossible to poor that much money into his new casino. man who spent 50 years at goldman sachs is retiring. some ofn spearheaded the biggest ipos including microsoft and deutsche telekom. he will now become a senior director. that is your bloomberg business flash update. let's go over to the markets desk where julie hyman has the latest. looks like stocks are trying to fight back into positive territory. julie: they are trying. the s&p is up a whopping .1 tight tradingy range, only about eight points on the s&p 500, the tightest trading range of the year, still even with this latest upswing. slightly into positive but really looking like a mixed picture. let's take a look at analyst

call that are moving stocks. joy global, the mining equipment maker, being cut to a cell from a hold with a price target of $10. this is the axiom capital analyst gordon johnson who is mostly known for covering solar stocks. in many cases, very bearish. midpoint of the company's 2016 forecast is seen as moving lower. joy global reports tomorrow before the open of trading. cfahe other end, chipotle, saying the company will rise on improving results following an aggressive promotional campaign in early february. i guess we are having some graphical difficulties. chipotle shares have been moving higher today. also looking at potash, the fertilizer component maker. gosha analysts are optimistic we ,ill see the price of potash

close to reaching a floor, and that potash is the best way to play a price recovery in 2016. those shares are up by 5.5%. speaking of a potential bottom in commodities, take a look at natural gas, down another 4% today, trading at a 17-year low. morgan stanley saying they think the oversupply will start to be worked through by your end and that we will see a price recovery in natural gas by the end of the year. carol: chipotle, by the way, up 3%. thank you. emily chang speaking with two of the biggest players in apple's fight against the fbi. is there any middle ground between the iphone maker and the government? what happens next? stick around. ♪

carol: welcome back to "bloomberg markets." i'm carol massar. tracy: i'm tracy alloway. it's been a busy week for apple in the battle the u.s. government.

now some of the biggest names involved are speaking out. bloomberg anchor emily chang sat down with attorney general loretta lynch, and this morning she spoke with ted olson, a lawyer for apple and the former solicitor general. emily is with us now to give some insight into those conversations and preview what is ahead for the iphone maker. emily, it seems like you have had a busy couple of days. emily: quite a fascinating couple of days, starting off at the beginning of the week, i interviewed the former head of the nsa, keith alexander, who had some interesting thoughts on this. then sat with the attorney general yesterday and ted olson this morning. the government and the attorney general herself have said repeatedly that they want apple to find a middle ground here with the fbi, but were vague about where the middle ground actually is. i asked the attorney general of first and foremost, what is the middle ground, what which ec as a fair compromise? >> we feel a middle ground

between apple and the fbi or law enforcement and any company with whom we work is the courts. that is who we go to to arbitrate these disputes. we have a difference of opinion as to what the law means, as to what compliance means, as to whether or not someone should comply. we go to court. we have some breaking news we want to bring you. oklahoma city police saying aubrey mcclendon she is dead, the chairman and ceo and founder of american energy partners. a breaking story, there are some other reports that it may have been a car accident. oklahoma city police confirming aubrey mcclendon is dead. well known in the energy space, a former chesapeake energy ceo. also, a store that we have been following at bloomberg, because of the indictment against him. tracy: this comes one day after that indictment. carol: you wonder what else

might be surrounding that. we will bring you headlines as they are known. we want to get back to that apple story. we have been speaking to emily chang. you spoke with loretta lynch. you got the government's side. you also spoke to a key player on the apple side. ted olson, apple's had lawyer, i asked if there was any a legal or technological middle ground. on the technical side, he indicated there might be other way to do this, but apple says there are not. could the nsa help, have they refused to help, why isn't the nsa doing anything? i thought that was an interesting point. take a listen to what he had to say in general. he does not believe there is a middle ground overall. >> there is not a middle ground that i know of, that requires apple to go to work for the government. we have a constitution. the constitution does not allow

the government to construct private citizens to indent products or to change the products that they have invented in order for the government to look into the product or cause the product to do what it wants. that is a very significant thing. ted olson there. we have some important aides coming up. by tomorrow, other tech companies have to file their support, their brief in support of apple. we will be watching for who is submitting those filings. carol: emily, thank you. what to reiterate, upon city police confirming -- oklahoma city police confirming aubrey mcclendon is dead, the former ceo of chesapeake energy. we will continue to track that for you. ♪

way are bringing you some breaking news, where the former ceo of chesapeake, aubrey mcclendon, was killed in an accident. and we wills car, bring you more headlines as they come through. chesapeake has been up all day, we should mention. on two other stories of the day, we have a look at the markets. julie hyman has been tracking it. julie: thank you. as we head to the close, major someges, we have seen volatility in oil prices today, despite the fact that we see weekly inventories rising to an 86-year high, and oil rebounded, perhaps because we saw more refinery utilization, refineries