mark: we are going to take you from new york to london. here is what we're watching today. u.s. stocks slightly lower following the biggest two-day gain in the s&p 500. european stocks halting the longest winning streak that's october. investors eagerly awaiting breaking news. vonnie: shares are pledging today and still down about -- shares are pledging today. plunging today. the latest on the investigation into the death of the man killed in a car crash

wednesday after being indicted. what does this mean for the legacy of the oil pioneer and where does the investigation go from here. breaking economic data crossing the bloomberg aired let's set it over to julie hyman who has the details. julie: the nonmanufacturing composite index 53.4, slightly above the 53.1 analyst had been anticipating. this is after in earlier measure where it came in below estimates and below 50. that is the dividing line between contraction and expansion. factoring orders coming in below estimates, 1.6% gain versus the 1.2% that was estimated by economist. factory orders excluding .2%nsportation and falling 4% test be a volatile number.

if you look at capital goods order, you have a gain of 3.4%. a lot of numbers just coming out in the past few moments. the services part of the economy does the largest part of the u.s. economy. you see what stocks are doing. lower from these headlines coming out. if you look at the s&p 500 on the entry databases, you will see it going downward. datas are not taking this is very positively. this take a look at treasuries as well. yields going lower. we will give it a few moments to shake out can give you an update on how market are digesting all of this data. vonnie: the best performer so far as the company that has been in the news lately. julie: yes, it has been in the

news, but the stock has performed well. this is chesapeake energy. cofounder died yesterday in a car crash. it is up sharply today, it is unclear exactly why. i do want to point out that the stock has unusually high short interest. take a look at the bloomberg. i'm looking at the short interest function. the top chart you are looking at looks at the short interest ratio, that is the orange line. the middle chart is short interest on an absolute basis. it is on a pretty high level. 44% of the company's shares fell short. you could see a short squeeze effect, which is notable. this is been coming in the face of lower natural oil and gas products. , natural gasal gas

is that a 17 year low yesterday. today, it is at a 17 year low again. vonnie: thank you so much. let's check in on the first word news. up, the republican establishment is stepping up against donald trump. former presidential nominee mitt romney will make his case as to why child should not be the nominee. mitt romney says donald trump is is asy and a fraud and it worthless as a degree from trump university. his foreign policies would make america and the world was great. we will have live coverage of his speech at 11:30 a.m. eastern time. the miami herald is endorsing senator marco rubio for president. rubio is fighting to win the republican primary in two weeks.

the state has 99 delegates. only way thed, the nominee can win in november is by unifying the gop and appealing to democrats and independents. the best candidate to fill that role is senator marco rubio. politicos also reported that new mexico governor is also endorsing mr. rubio. meantime, president obama will visit milwaukee to highlight how his signature health insurance has helped millions of americans gain coverage. he will congratulate officials on the recent efforts to help 30,000 people get covered. the number of uninsured has dropped to about 28.8 million. north korea has showed what it things about those new united nations sanctions hours after the security council approved more sanctions to but as the country for a nuclear test and rocket launch. north korea was at it again. it sent the gentiles into the ocean. projectiles into

the ocean. global news 24 hours a day, powered by our 2400 journalists and more than 150 news bureaus around the world. ceo sayserbalife share they have overstated the growth. giammona has a -- information. i think there is a psychological negative. the shares took a hit and it is starting to back -- bounceback. they are not restating earnings and it does not appear that this feeds into this biggest accusation is that it is a pyramid scheme. it is not a bad mistake, but it does not look good for a company that is under suspicion. mark: he has been shortening the stock and says it is a pyramid scheme. craig: we have not heard from him today.

obviously, the stock is down, which is what he wants. that this does not feed into the idea that it is a pyramid scheme. it is a mistake in some of these numbers were saying 70% when it was 30%. not good, certainly bad for perception. it does not appear to be feeding into the main accusation. vonnie: thank you so much for giving us details. we want to go to one of the largest short-sellers of herbalife. and,ve whitney tilson thank you so much for joining us. you call this one of the most .ritical metric it is any metric and people say it is not a financial margaret -- metric, therefore it is not important. y: it is hard to put your finger on it because management has fabricated this and started

talking about this exciting, new number that they mentioned more than half a dozen times on both q4 conference call. it is a major piece of evidence that their business was growing at a very high rate was around the world and in major markets like the united states and europe. we now know that in fact, those numbers were vastly overstated. hole in management credibility. also, the story that herbalife is a healthy growing business. in major piece of evidence that management was trying to support that storyline has just been demolished. vonnie: you do admit that the numbers are still positive because growth and other parts of the world will make up for this misstated growth and users. to the shortdding

position today now that the shares are lower? whitney: i haven't decided. shortimary reason that stock is because i believe it is a pyramid scheme. affect a pillar of the short pieces which the business is not doing very well and that it will collapse under its own weight is all pyramid scheme to do. you can win simply on deteriorating financials combined with a fairly high valuation certainly relative to where herbalife has traded in the past. times,rading about nine 11 or 12 times this year's earning estimates. those are pretty rich multiples for a business that have so many

concerns about sustainability, regulatory overhang, etc. this is an important piece of new evidence related to pillar number two of the short thesis. vonnie: i do want to bring up the analyst position. there are four active analysts on the stock. one analyst says this is a non-event and a price of $90. i can imagine that you disagree. whitney: yes, i do. according to management, it does not affect the reported financials because this is a metric than that -- the company fabricated. i think it is now incumbent upon management to do so that investors can better understand this. it is hard for me to believe

that a critical metric that management was trumpeting that they claimed in the q4 was up 16.7% when in reality it was 3.2%. such a major difference when i have impact on reported financials. i'm sure regulators will want to take a look at that. ramy, you can always count on him to do that. i think this calls in a real question of the sustainability of herbalife's business. mark: you said the company is going to collapse under its own weight. how soon? because don't ask me i've been on on that part of it for a number of years now. -- wrong on that part of it for

a number of years now. it is not surprise me that a company that is obviously give him at has been going on for decades. this company is 30 plus years old. , in order topany sustain its business and given the extremely high turnover of new members that are obviously purchasing the product and driving it fails, they have to recruit a couple of million new victims every year to just run in place. grow, that never has to be even bigger. eventually, they will run out of victims, that is what happens with all pyramid schemes. if i'm right, this will eventually collapse. are you putting on any new short positions these days? whitney: i'm planning to discuss my largest position at the harvard investment can't --

conference tuesday afternoon. stay tuned. vonnie: thank you so much, kas capitalon from management founder. ethe new jobs report for february is out tomorrow. we will consider more stimulus measures and the next interest rate decision later this month. ♪

mark: good afternoon, i am mark in london with vonnie quinn in new york. let's look at the benchmarks across europe.

today, the 6.5% rally has come to an end. it has run out of speed up until now. a number of companies have traded without shaving a point or so off of the index. have a look at the currency markets after five declining days. the euro gains a pound. manufacturing service data out of the u.k. the yield on the spanish 10 year is down to 1.55%. the outlook for asset markets, joining us from san francisco is axel merk, the cio of market investments. good afternoon and thanks for joining us. what appetite for risk do you have right now?

axel: a great appetite to be anti-risk. i'm coming from the camp that andral banks compressed made the world appear safe until last summer. takenince then, they've the lid off of the pressure rising.nd things that is why we see rallies like we've had in the last few days and a lot of to fizzle out. people are more interested in capital preservation and selling o'reillys -- rallies. mark: that is good for gold, but what else? axel: anything that has a lower correlation to risk asset. everything has been moving up until last summer. think that beyond

that, you up to look at two alternatives such as long short equities and currencies. with anything else, it is challenging. theproblem is that performance was not good. careful.to be the most important thing for investors to stress their portfolios. vonnie: we have the ecb before the federal reserve. do you see volatility? draghi whaty, mr. do huffing and puffing and will have an impact on the market in the next two weeks. there's not much he can do. the head of the swiss national bank said there is a limit. these negative rights has to make money and they will end up raising more interest rates.

the rates are not the problem, it is structural reform on the fiscal side. draghi himself said this. he hates the euro being as strong as it is and is trying as desperately as he can to weaken it. i think his ammunition is limited. vonnie: what do you make of the recent dollar move? do we see the dollar strengthening? axel: we have been told that the dollar will go through the roof for years now. there's a lot of good news with pricing of the dollar, even as expectations have receded about the fed tightening too much. i don't see how that will play out. as risk assets were popular, the dollar was rising. normally, it has been falling.

the euro has been a main beneficiary. that theme plays well into major markets. emerging market currencies will continue to be under pressure. as far as the dart -- dollar is concerned, the fed will not be on its course. eventually, they will have to do a yield and i do not think it will be anytime soon. countries will have to revise their policies, i'm thinking sweden. mark: i will ask you about sterling . president and chief investment officer of merck investments. still ahead, one of the men who pioneered shell fracking died in a car crash. where does the case go from

here? ♪

mark: the energy industry was brought yesterday after aubrey mcclendon died in a car crash just a day after being inducted. -- indicted. let's bring in george carol who has been covering the story. one of the quotes i read about him was that he led the stunning energy protest in america. -- what does his hell? mean for sale -- s >> he was one of the handful pioneers who showed the entire oil and gas industry. oil andy knew there was

gas in shell, but you cannot get it out. if you other people really showed how you can make an awful lot of money. vonnie: david, i want to turn to you was been working on the story with joe on commodities in general. of theto play some tributes was a long time friend of aubrey mcclendon. this is not only a hard day for me, but a sad day. i had the privilege of being his partner for 23 years. he is the chairman and ceo of sandridge energy. what happens with sandridge energy? >> the case against the clinton will be dropped because he has passed away. that theade clear

investigation into this continues. that theyreported were the other company that mcclendon conspired with allegedly. whetherhave to see there were other indictments that come from this. energye formed american and raised $10 billion. what is the future for that company? hismerican energy was second act and it had not gotten off the ground before he passed away. the test will be, can the management team, many who we brought from chesapeake, can they carried the day without the former leader? vonnie: who was working today to move this ahead? >> i think it is still a local

story. the family is in mourning in these -- oklahoma city is in mourning because he was a huge figure. readingwe have been your stories and thank you both so much for joining us today after the death of aubrey mcclendon. still ahead, hedge funds have not gotten much love recently and it is no surprise that they have been lagging behind major industries. guest is turning back to hedge funds and 2016. there's more just ahead. ♪

bloombergve from

headquarters in manhattan, i am vonnie quinn. mark: this is bloomberg television. first, let's check with bloomberg word news. ramy: first, we had to president obama and he is extending sanctions for another year in russia for his military invented -- intervention in ukraine. it blocks them from visiting or holding assets in the u.s. among other measures. the u.s. has refurbished black hawk helicopters to jordan. it is against the islamic state extremists. it is for ongoing support for jordan and also includes guns and surveillance equipment. two days ago, jordanian forces did rate a hideout for suspected islamic militants and killing seven of them. arian state tv is reporting electricity blackouts across the country from those reasons. maintenance crews are working on fixing that problem. electricity blackouts have been frequent in the course of serious five-year conflict, but it is rare for the whole country

to be affected. the reason was given for the latest incident. donald trump is in, but ben carson is out for tonight's republican presidential debate in michigan. he does not see a political path forward. donald trump will attend the debate after skipping last times debate by fox news. assist with civil representation and search and process e-mails. the michigan attorneys offices otherenting snyder and files over that situation. global news 24 hours a day, powered by our 2400 journalists and more than 150 news bureaus around the world. inocencio. vonnie: let's head straight to our markets desk with julie hyman. it is all about earnings. julie: the maker of mining

equipment and the earnings did not look strong. the shares are up by nearly 16%. the company posted a was almost double with what the company was projected. revenue did not decline as much as estimated. the company's 2016 forecast looks like they are in line with analyst projections. the company also talked about rising atg of orders, the beginning of the year. the company is targeting $100 million in cost reduction this year as a result of the week environment. companye 3-d printing coming in with the loss that was an error been -- improving gross margins. sienna,com company, coming in the second quarter and it is above

what analysts had been anticipating. this after the company's first-quarter numbers also beat estimates and yet we are seeing the shares declined. the company looks like some of -- in other words, it is a mixed report. vonnie: julie, thank you so much. hedge funds are off to a rocky start this year. global assets falling to less than three chilean dollars in january. $3 trillion. we are recently taken a look at the cost of investors in the poll they came up with says the industry could come back to life this year. us.leonard joins

it is in the industry's best interest to say that it will come back to life, but you found interesting results. give us a couple headlines. bob: we did find interesting results. have tempered expectations a bit when you look at the growth rejection for the industry and what they told us. they were looking to see maybe about 3.5% on average growth in terms of assets under management, that is down. they are down for maybe 10% or 12% from the past polls we have done. the numbers are so positive. the other thing we picked up is a positioning shift on the part of institutional investors. clearly, they are looking for a continuation of the more volatile conditions that we saw in the second half of last year. vonnie: you see that from some of the strategies that are indicating preferences. is there going to be it their

3.5%ncrease in assets -- increase in assets? are they not expecting a good performance from hedge funds? bob: i think it is a combination of factors. asked what some of the significant developments might be this year from these investors and almost all of them had fee compression on their list. some of that comes from negotiation fees and others come from different products. investors continue to lean on the fee structure. mark: let's go back to the strategies. it will be the winning strategy in 2016 -- what will be the winning strategy of 2016? that they will perform in volatile conditions. market neutral, both fundamental

and quantitative took top billing this year. that is the first time in about eight years that they had this type of ranking. is more a strategy that based on individual stock selection, not betting on whether the market will increase or decrease. global macro has always been viewed as a good application of strategy in a more volatile funds havehere hedge a number of tools at their disposal. the macro space has to be able to make money in the fx markets and fixed income equities and etc. a shift on the part of both of those and even the long short equity space. historically, it has been popular with investors. towards abeen a tilt higher turnover to cope with

what investors believe will be a volatile market. stood out to me, i was reading your deport -- report. europe is most likely going to be the place where investors are going to allocate the funds. why? if the were unclear issue had impacted investor's minds. develop europe was a popular theme. i don't think all investors managed to put money to work, particularly in the second half of the year as returns waned a bit. we saw some fall off with inflows. therefore, i think there is still money on the sidelines waiting to come in. thanks rob leonard -- bob

leonard for joining us. -- lead on bloomberg markets still ahead on bloomberg markets, germany's newspaper andrting hans nichols discuss working with tech giants like facebook. the interview is just ahead. ♪

vonnie: this is bloomberg markets in london in new york. it didn't, i am vonnie quinn om malik mark working. -- i am vonnie arton.with mark b

natural gas had a 17 year low yesterday and now declining to 1.4%. the dollar index is staying below 98 and waiting for some strength. the 2/10 spread is also looking to come down. let's look at tech movers with abigail doolittle who has the latest from the nasdaq. abigail: the nasdaq is down slightly, but we have two big tech things moving. after sayingare up that the march quarter could meet the year declines of iphone sales. the iphone 7 is due out this

year and it could bring apple back. the stock remains above the $100 level, also just think of that could be a rally in store for apple. another tech name, intel shares are higher after the stock was upgraded to outperform after being on the sidelines for some time. the company's data center revenue is likely to surpass or balance out weaknesses in the pc market. there is more than 20% upside to the price target of $30. -- $38. get to germany. reports outside of germany from accel springer. hans nichols sat down with the

chief executive and discussed how we defines working with different tech companies to distribute content. >> i think the big tech companies are developing different approaches on how to do with the environment. it seems that facebook has to find a way where they are the major beneficiary. the publishers they have are also provided with opportunities to develop a sustainable business model. we seen it in our tests were facebook allowed us to control the content and sales with the fair revenue share and get access to users data. facebook has also declared their willing to develop a paid five form -- paid platform to upgrade

to scripture. -- subscription. have a more disruptive approach. >> you have a new platform coming up? help us understand where you see this going in the future. an early stage. it is a in exclusive service and it is called up day and composed of two continents with a professional editorial team. newsdo top news, breaking and on the other hand, you haven't a logarithm -- allegra -- we think this combination of man and machine is attractive

and it has been successful in germany, france, poland, it can transform into a global product. >> will it migrate to the iphone? >> know, and is an exclusive product. >> your revenue numbers came in nicely. when you look at the revenue driven from abroad and english language expansion, do you have any plans for future acquisitions in the english-speaking world? >> half of our revenue is outside of germany. 2/3 of its revenue is coming from different businesses. i think it is a good starting point to enter the english-speaking market. the u.s. market is a top priority. we have made 15 investments in .merica

this year, we're going to focus on execution and performance. i think the english-speaking market will remain a top priority. >> 2016 is not a big spending your? >> if there are unique opportunities, but we are on operations and performance. , the chiefspringer executive officer. get all of the info you want. idea of a new the app that uses artificial intelligence. biddeford.com and has been named the 2016 bloomberg business innovator. joining us to talk about what the company is headed's chief executive ambarish mitra . invest -- howsia

did malaysia invest? we have a long-term vision. were available any the market and we were looking for those investors. , so weket was narrow found a cultural fix and at the same time, they care about education and all the factors looking to diversify it. mark: what will you do with the money? ambarish: we will invest in a lot more artificial intelligence. in staff out of the bay area and san francisco. we will continue to expand and go deeper in the markets we are in. we have gone global, 14 offices worldwide. go deep on those

markets. lastly, infrastructure costs is pretty high. the blending infrastructure is not cheap, so we need to invest a lot there. i was just wondering about how difficult it is to raise money in this environment. did you find it harder to raise it? ambarish: i think it is an aspect of timing. we have a lot of incoming prospects. we were not out there and meeting everyone, so our meetings were limited. target, of investors we there are a few of them at the top of the pyramid. generally, it is not just to me and many of my founder friends. it is getting increasingly harder to raise money.

there is a price correction in and it is a personal philosophy, but i've been a big believer that a business should be valued not as user based, but revenue potential. we as a business has to be a balance company. we have been increasing our user growth, but actually making revenue. mark: what is your revenue projection? cross billionsn of dollars in revenue. the opportunities is so big. do not consider this as an exaggeration. index theng to physical world. it gives the opportunity to monetize the physical world. mark: who are your business partners? ambarish: the top 20 spenders in agentsld, the large ecosystems.

, likethe core people those who work with facebook or google. mark: in -- will he be more difficult if a person leaves the european union? ambarish: it will affect larger companies than us. there are not many people in the field of ai, it is an emerging trend. and the current funding increase reputation, we're becoming more of a talent. mark: what is your evaluation? ambarish: i cannot reveal that. mark: good luck to you, sir. still ahead, a hollywood the superhero life of the man who has love for aston martin. ♪

vonnie: you are watching bloomberg markets. , a luxurypursue magazine and launched this week. the director of the upcoming , theman or batman flick magazine showcases the best luxuries you don't want to miss. the editor of the magazine joins us now. , how do you read through them and find things like zack snyder and his aston martin? >> i get the craziest pictures for $100,000 for headphones. we look for stories that combine intelligence with luxury because that is what our leaders are looking for. they're mostly looking for value and it doesn't matter if something cost $1 million or $50.

this is a relaunch of the magazine. tell us what is different. emma: the design is very photography based. we feature all this amazing travel and we have great photographers getting these amazing vistas. the pictures want to make you go into those trips. mark, one of the things you can learn in this issue is how to build your own wine cellar. mark: oh. i need to learn about that. i want to hear all about zack snyder was on the cover. i'm a big batman and superman fan. he is the director of the upcoming movie. i gather he is obsessed with aston martin. emma: he has a collection of aston martins. i don't think it is any deeper than that. they are cool cars. ,e is pictured on our cover standing in front of his own aston martin. this is the same aston martin he featured in the movie as bruce

wayne's aston martin. the director just said, here, you can use my car. mark: i'm upset with box office. the first superman film, made $70 million worldwide. is this batman versus superman film going to make big bucks? is he feeling the pressure? emma: he did not give us any indication that he felt nervous. i think because "man of steel" did so well, they are thinking this new film will do good as well. warner bros. is producing the movie and they have not had a great year. they are expecting it to help them a lot this year. vonnie: give us a teaser, did jeremy renner give you decorating advice to build a bunker in your home? emma: he did.

jeremy renner is actually flipping houses and his advice is on the lines of getting a new mattress, use natural colors. vonnie: that is awesome. mark: emma, thank you so much. andcan read more about that see your destination for the finer things in life including travel, watches, dining, and purchases. coming up, we will have live coverage of the mitt romney remarks from salt lake city after donald trump's super tuesday win. romney is coming up with critical comments on the gop front-runner. you can tune in on boomer television and radio, and at 11:30 a.m. eastern and 4:30 p.m. london. ♪

vonnie: it is 11:00 in new york and 4:00 in london. i am vonnie quinn in for betty liu. mark: this is the european

close. ♪ vonnie: will take you from new york to london to the salt lake city. calling out donald trump, former republican presidential candidate mitt romney's second speech -- set to speech in just a half hour and why the front runner should not be the nomination. mark: than the so-called breakfast debate, germany's -- finance minister with hide -- high-level executives in london. his stance on britain's place in the eu. vonnie: an exclusive interview with rick elio, what the leader of the world's largest hedge fund has to say on monetary policy and the markets.