scarlett: good afternoon. alix steel: i am alix steel. stocks are in danger of snapping their winning streak. first loss inits march. says tesladrew james is back on track. she says the stock will june/zoom higher. it is national women's day. scarlet: we want to get a check on the market activity.

julie: it was triggered after we got economic data out of china. we saw it spread around the globe. commodities got on board as well. all of that contributes. you will see what i'm talking about. it's bumping along your the bottom. it's not as low as we were when the s&p fell 1%. we have seen something of a tracking of oil prices. nonetheless, directionally both of them are taking a step lower at the same time. oil prices are up 3%. there was an attempt at a rally in oil, but it could not be sustained. energy shares are the worst performers, down 3%. some of the recent winners.

those of the losing -- losers again. they helped lead a recent rally and now they are gone again. financials are competing. alix: you have a draw into the treasury market. everywhere.here and look at the 10 year note in the united states. we see the yield go down to 1.82%. the 30 year is interesting to look at if you look around the globe. investors want safety right now. that has been happening all your long. the question is what you going to get? these are the 30 year yields across the globe. that number is extraordinarily low. in japan, if you look at the annual earnings in various

denominations of treasury notes, if you invest 1000 dollars over the five-year time, you have negative $2.30. you have to go to the 30 or 40 year for positive earnings. alix: unreal. julie: you've got your safety, but you aren't getting anything else. has more from the news desk. biden addressed the middle east today. he told young people in dubai that gerrymandering encourages candidates to have extreme positions. -- a don't think you'll find anybody what we are about to say. could not get the nomination for the republican

party than i could get the republican nomination. i am not joking. to the this movement extreme in the republican party. mark: this is the first stop on a regional tour that mr. biden will take. as republicans passed votes in four states, donald trump popularity is dipping in new national polls. he leads the field by 34%, down three points. ted cruz is second. that's according to an abc news poll. cap is on the losing end of head-to-head matchups. appealedgovernment has apples win in court. a magistrate ruled last week that apple did not need to cooperate. apple is helping the government on lock 70 phones in the past.

this is the second anniversary of that going 777. the government is committed to solving what he calls the agonizing mystery. ships looking for the plane will finish sectioning -- surging by the into the year. news 24 hours a day powered by art.400 journalists in 100 news bureaus around the world. the european central bank monitor has been off track for a long time. there are three things it can do about it on thursday. buying corporate bonds and admit that qe has failed. a cofounder laid out these three suggestions in a new op-ed for the financial times. he joins us now from london. let's start with your first

point. the ecb should buy nonperforming loans. wolfgang: it's not going to happen. i made the suggestion because it would be the fastest way to get the european banking system back up to scratch. the banks are holding back the european recovery. if the banks get back to normal, it will be easy for the ecb to cut interest rates further. the argument against negative rates is take profits. you help the banks with the nonperforming loans and cut interest rates into negative territory. that would be an important boost to the economy. alix: we have seen a huge .ncrease across this is just in the third quarter of last year. it's been a huge spike. scalet: that is an area of

concern. they made reference to it as well. buyingd it to avoid corporate credit. there is a theme of. -- of not pursuing policy gimmicks. wolfgang. things make certain negative. it's not necessary. you can increase the qe program. it's a policy gimmicks. it doesn't make any difference. make things worse. that will make it harder for the banks. steeper yield curve. are policies that look like they are active. they will not help the objective. the objective is to raise the rate of inflation and expectations. that is the yardstick by which we should measure these things. alix: the banks are not lending because of a lack of funding. necessarily the banks

are going to lend more. that's not the issue. the issue is the toxic assets on their balance sheets. wolfgang: there are not liquidity problems. people worried about them. the banking system is not liquidity constraint. .here is liquidity the market conditions are fairly benign. is the balance sheets. they have dodgy banks. these are big northern european banks. we are talking about the deutsche bank problems. a lot of people aren't sure about what's on their balance sheets. we don't know what's on those balance sheets. i think it's time to sort this out. it is a necessary condition.

ecb should admit that qe failed. we had a chart on the screen it just a moment ago. underwent qe. the rates were already low. the impact was not very substantial. as that rate has further south. effort to admit that it has failed. you would hold an open debate about policy alternatives. you could count source possible solutions. wolfgang: they are not ready for this yet. helicoptering about drops and writing checks to people. that's not going to happen. as the reality is sinking in worked, thenot inflation rate has been flat for the last year. it's where it was 12 months ago. it's time to look at alternatives.

rates, thet interest next tech -- step would be a helicopter drop of money. direct money printing. they shouldn't consider that at this moment. that is the last policy option they have. it's legal. there would be no impediment on them to use it. alix: how could they money and give it to you? wolfgang: they have 300 million people. they could give a check to every citizen. anybody. for 10,000 euros. that's a lot of money. that's 3 trillion euros. that is perfectly fine. it would generate a lot of inflation. it might generate a little. create demand.

i think it would create investment. companies would expand their capacities to satisfy the demand. everybody gets a check for 10,000 euros. alix: the financial markets would hate it. scalet: there is nothing in it for them. having said that, the helicopter drop of money is pretty extreme. is there room for middle ground? nominal gdp?eting wolfgang: it sounds less extreme. in europe, it would be illegal. the ecb works under some weird legal constraints. they have to have some stability target. dp.y can't just target g the one i mentioned it the

extreme form. you could use smaller forms. you could use some investment programs. they could give the money to companies. there are different forms. mine is a very simple one. it's for illustrative purposes. in reality, they would probably not do that. there might be a few other things in between of the qe program. possible. be they might be changing the rules. there are certain types that they are not allowed to buy. with a combination of those things, you might make some difference. you really need to go for something heavier. government debt, that would be a no greater.

-- no-brainer. retiring debt is not allowed. at least not public debt. does the ecb disappoint the market on thursday? wolfgang: there is a point. they have learned their lesson. i think the market will be happy on thursday. will they still be happy on friday when they've actually thought about it? good point. up, tesla shares saw jumped after a very positive review about the latest model s. shows the will winners and losers coming up. blythe masters will be her with her take.

alix: welcome back to bloomberg markets. scalet: it's time for the business flash. alix: owners of small businesses are less confident in the economy. small business optimism fell last month to its lowest in two years. six of the 10 indices declined. scalet: shareholders are battling to change the airline. they are nominating six candidates for the board. they own 7% of the stock. they are frustrated with the airlines performance. alix: the state is selling bonds

to general obligations. it's the first offering in securities since october. they are reaping gains from tax increases supported by the governor. scalet: that is your business update. the tesla stock at a 4% boost after a seattle analyst test rode the model s last night. james rates a buy. she joins us now from seattle. it sounds like there is a lot of hype surrounding the model acts. it lives up to the hype. andrea: i loved it. i came at it from the point of view of a mom. not as aning a

analyst, but as a customer. i decided to test drive it. it will be the basic car on the market. it's a very useful car. i actually really liked it. alix: you don't cover the other automakers. how do you model your valuations? andrea: my evaluation is based on it being the fastest growing company in the world and created a lot of value very quickly. we have a high multiple. i think we have $20 worth of earnings power in the year 2020. the ramp on how we get there, i'm not sure. i value it as a tech company. you cover a range of other companies including gunmakers and energy equipment makers. what do they share with these

other range of companies? andrea: the presence of the product on the market disrupts the market. it fundamentally changes that market or changes human behavior. that's how i look at it. issues as they are only going to sell 500,000 units globally. it's hard to see how the evaluation can be so high. scalet: it's a niche carmaker. the is your thought on ability to become a mass-market automaker. andrea: it's very good. tesla has solve the energy storage problem. they are solving the problem of driving. they are solving the problem of energy storage. that's true of anything. it has nothing to do with me in a stock analyst.

the reason why we use gasoline is because that's how we store the car are -- power. it has been hard to have a high-powered application for automotive use or using electricity. they have solved that problem. they are taking that and applying it to the energy storage market as a mean of storing solar power. i think we will see other product lines, out. betteroes that mean a way of looking at tesla as a gigantic battery company? andrea: they are solving problems that have to do with energy storage. as a species, that's a big problem that we all face. how do you store solar power? that is how i see that company. they are going to be vertically integrated on their cell production by 2020 through their giga factory.

it will open in nevada. is it important? is it critical for tesla's cars to be profitable when it comes to selling vehicles? andrea: yes. that's what this year is all about. they need to prove to wall street that they can make money on the bottom line. it's the time of year where they need to prove they can do that. tothey wanted to come back the capital markets to raise money, people know they can make money selling the products they make. sellingnew vehicles are at a record rate right now. where does tesla go? your point, does it matter if car sales happy for tesla? andrea: they haven't. what tesla did is they went from

2012 selling 10 cars to in 2015 cars thenre model s mercedes. to first inom worst their category. the long-term bet is they can do that with other types of cars. three debuts march 31. alix: thank you so much. she is joining us from seattle. urban outfitters gets a boost after beating analyst estimates. what is working exactly? we will explore. ♪

scalet: this is bloomberg markets.

we want to head to the market desk with julie hyman. with urbanting outfitters. julie: it's far and away the best performer in the s&p. earnings rose by 2%. that was better than estimated. analysts were estimating. they are selling more higher and merchandise. they always sold a mix of clothing and quirky housewares and other items. they have an opening other services. there are pizza parlors and hair salons. that appears to be paying off. truck maker is going in the opposite direction. revenue is down 27%. it's missing the lowest estimate out there. toomey used trucks out there and that is stopping demand. down 13%.es are

shares of the shake shack are down. we have a slowing growth. that sounds relatively good. saw an increase of 13.3% in 2015. the stock is highly valued. thing it.k at the this is forward priced ratio. it's pricier. >> it so much tastier. scalet: we are celebrating international women's day with a powerful lineup of guests.

♪ alix: from bloomberg world headquarters in new york, welcome back to bloomberg markets.

i am alix steel. scarlet: let's start with the headlines. mark crumpton has more from the news desk. mark: thank you. it is primary day -- again. republicans have four states at stake. democrats have two. the biggest prize at stake is michigan. donald trump has a double-digit lead, but there are signs that john kasich is gaining ground. hillary clinton also has a double-digit lead, though bernie sanders is doing better with younger voters. callsomney has done robo for marco rubio and john kasich your he does not endorse either candidate, but makes it clear he is trying to stop donald trump. a mudslide most likely caused a bay area commuter train to derail last night, injuring nine people. investigators believe the

mudslide swept a tree onto the tracks, derailing a car. the bay area has been inundated with thunderstorms in recent days. the white house is clearly unhappy after israeli prime minister benjamin netanyahu canceled a trip to washington. the u.s. had agreed to a meeting this month with the meeting between the prime minister and president obama. the white house says it was surprised to learn through media reports that prime minister netanyahu had canceled. israel says they informed the white house. global news 24 hours a day, powered by are 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. much, mark.you so today is international women's day. throughout the day, bloomberg tv has been hosting some of the world's most influential women, women who make it their business to stay ahead of technology trends. point, these in

former ceo of jpmorgan chase stopped by bloomberg . >> one of the things we often fail to talk about is the extent to which this technology has the opportunity to improve transparency from the perspective of regulatory oversight, which is obviously an important objective for jp morgan, as well as the regulatory. regulations as an ally, not a hindrance? much auld say it is very catalyst. regulation means many things in the context of finance. obviously, you need to think about the regulation of markets themselves, firms -- from a credential point of view -- the risk control

issues. these are all aspects of regulation. what is particularly interesting is, in many respects, it is helpful to all of those. for us, regulation is very often a driver of the kind of change that this technology can facilitate, and complying with regulation, in terms of transparency, real-time access, those kinds of features that have not been possible using judicial infrastructure, is very much driving interest on the part of regulated entities and the regulators. consider selling yourself to jp morgan? >> i think jp morgan would probably argue that the benefits of this technology are greatest when they are adopted by more than one party. it is part of our strategy that the technology developing is at least in part being developed in

the open source community, which means it is available to multiple parties, including to our competitors to build solutions. reason why we are doing that is to promote the charters of standardization, which makes adoption a less risky proposition for early users. any of ouran or other customers, the idea of having a partnership, where there are multiple users of the same infrastructure is more appealing than a proprietary controlling. >> is not to one of your clients, your partners, why not to a massive technology company? theyas spoken on how believe in this type of business. would you look to sell to ibm? >> honestly, we're not looking to sell at this point. the goal for the midterm is to build a business and deliver the

product. what will come after that, naturally, is the process of growing the company. capitalvolves acquiring , we will do that. the big challenge is executed. adoption and execution. alix: now, global stock markets greeted 2060 with a resounding side -- greeted 2060 with a resounding thud. there are few signs that the ipo climate will improve due to market volatility, concerns about china and oil prices play on investors' fears. myerst: we asked liz about this when she stopped by bloomberg this morning. the below the 20 level is a much more hospitable condition for the ipo market.

we have seen a lot of short covering driving the recent rally. there is a lot more to go which continues to feel the market further. stable enough to come back and actually issue, though? longereed a bit stability before we see ideals come back to the market. investors need to recoup the challenges they have had driven by volatility earlier in the year. >> what are the sectors waiting? tech? health care? >> tech and health care for sure in the ipo pipeline. our pipeline is pretty diverse. consumer, diversified industry. it is broad. >> when you look at what industries could actually issue, or as you advise companies, is at tech? is that what you say, they are waiting in the wings?

>> different sectors have different preferences. ts are looking for opportunities where there is an element of high growth to the story. if it is technology, a clear path to profitability. >> we hear a lot about down where thereations are certain valuations, but if they go public, they could take a hit. >> broader valuation levels dictate where ipos will end up pricing. whereas we saw a more challenging environment earlier in the year, the market continues to stabilize and come back, and we will see that reflected as well. there is always the ipo discount as compensation to investors for taking a higher risk opportunity in the market, versus something that has had a public track record for some time. scarlet: that was liz myers talking about the ipo market.

continuing on that theme, technology has not just change the way big banks are doing business, it changes the way millennials enter the workforce. they are now facing serious competition as they get l ured from tech startups. alix: how can a judicial company talent in thisch economy? >> if you look at this millennial generation, they are look at purpose of value, sometimes purpose over profits. they're looking at a triple bottom line. i think it is really just by ofamic -- the dynamic working for a company that has diversity inclusion, health and well-being. if i physically have an attractive model for the millennials, especially stem graduates. >> how do you recruit them?

when we look at ge or ibm, they have a hard time because their names are not cool. globally is a gold standard name, but does it really attract young innovators? >> it is a good question about innovation. one thing we are looking very hard at is how we innovate. not only investing in artificial intelligence, digital, cyber, but also innovation in talent. a lot of people beat innovation and talent out of the equation. we have always been known to drive our talent engine and make sure we are attractive. it is retaining them that we are working very hard on. >> forgive me, i think of deloitte -- you can audit our books, forensic accounting -- does the ceos turn to you and digitalize? >> absolutely. we have an end to end digital

solution now. , accounting, and tax brand that allows us to go in and talk to ceos who are becoming very strategic, and help them transform. whether it is in the human -- we areace, cyber helping companies with major things. >> let's get real. and a time when market volatility is what it is, equities are going down and down, ceos are under pressures from shareholders and activists, can you really make strategic long-term decisions? when talk about diversity, inclusion, they found amazing, but do they really matter? >> i think there is a dark omedy -- a dichotomy in 20 investing in the future.

i heard analogy. would you drive down 5th avenue with mud on your windchill? that is what we are doing with data out there. you need to be nimble. look at theed to long-term. this is the hardest part about being a ceo today. looking at the choices between the short term at the long-term. alix: that was the ceo of deloitte. to hear more of our international women's day interviews, go to bloomberg.com. scarlet: maria sharapova losing eals left and right. the: the worst year since credit crisis, is a jump bond ready? an interview on sec reforms and what markets can expect this year. ♪

♪ abigail: welcome back to bloomberg markets. im abigail doolittle. let's look at sites on the move. econn.ng with mik today, cleveland research is out, lori estimates below consensus. are down, as an potential turnaround remains out of sight. one stock soaring today is urban outfitters. shares are up shortly after the harply, after

beating estimates. oneal turnaround will depend an improvement in apparel. the top boost at nasdaq today, microsoft. a bullish upgrade with the firm saying checks show microsoft is poised to benefit from the cloud. now, more bloomberg markets. ♪ scarlet: you are watching bloomberg. i'm scarlet fu. alix: i am alix steel. this is your global business report. scarlet: fireworks are flying in the brexit debate. alix: a costly mistake. kenneth starr and maria sharapova could lose millions. scarlet: and mistreat investor

buys 5% in burberry. where bank ofndon enters a brexit debate. of jeopardizing credibility. he defended the bank lost independence and says it is -- the bank's independence. >> economic questions are important in the broadest decision that the people of the united kingdom have to make, but they are not the totality of will make.hat people we will not be making, and nothing we say, should be interpreted as making recommendation, with respect to that decision. is due to voten on the referendum june 23.

alix: it did not take long for sponsors to start distancing themselves from maria sharapova. nike was the first to cut their contract with sharapova. nearlyharapova earned $30 million -- most of the money earned by endorsements. scarlet: according to "the financial times" burberry announced to prepare for bid. speculation has been increasing while the shares are down more than 21% over the past year. alix: time now for the bloomberg quick take where we provide context and background on issues of interest. today's topic, iron ore prices. after faltering last year, there

are signs that the market is coming back to life. the price on a dramatic decline over 2015. prices have seen a dramatic rebound recently on signals from china that it will support economic growth and a rally in field prices. iron or, of course, is used to make steel. goldman sachs and citigroup say the price will fall. for iron ore, it all goes back to china. the country consumes more than 20% of the iron ore exports. inminum shipments fell february, reflecting be overseas demand, increased frictions, and slowing domestic production. drop will help industries like autos, as well as construction. others say iron ore outputs should be tweake to match

demandd in an oversupplied market. what happens now? a pact has been formed -- has been formed to support ventures. that is today's quick take. scarlet: that is your global business report. for more stories, visit bloomberg.com. markets, on bloomberg does the recent credit market rally signaled the worst is behind us? we will have our debt check. ♪

♪ alix: welcome back to bloomberg markets. i am alix steel. scarlet: i am scarlet fu. the $1.4 trillion debt market is

seeing volatility. on one side, optimistic investors see value in the debt, on the other, a lot more pain on the horizon. alix: the good news is the industry has rebounded of it, but specific bond prices have been wildly fluctuating, leading many to ask, how long can this last? gadfly us is our columnist erie to be fair, it is not surprised me. question,ises another why should the high-yield bond market be moving in tandem with oil prices? what sense does this make? if a proportion of oil related that has come down as sort of the market value bases in the high-yield industry -- meanwhile, it is only 10% of the index.

it does not necessarily make sense. nothing fundamental has changed. look at glencore, for example. based in london. s bonds have tanked, when it laid out the same plan in december of paying down debt. nothing changed. justet: are these bet?nies included in each >> i think it is more than that. not all bonds have seen this type of roller coaster. it has been specific to the commodity related bonds. comes down to is cutting into this latest rush debt, a lot of investors were pushed to have a heavy overweight on energy related debt, just by virtue of the fact

that that that was increasingly a bigger proportion of investments. it was exhilarating at a faster pace. they were taking a view on oil, whether or not the agreed on it, or knew it. now, they are being forced to take a view on oil and commodities, when it is a time that is extremely difficult to tell. they are credit investors. how do you analyze the fundamental credit of a company that relies, and is levered so heavily, on commodities, when you're not an expert. that is an issue. say, iredit guys guess i'm an oil expert now, for that exact reason. in essence, forcing investors to take on more risk -- could that be to blame? >> it has not been a close enough correlation to blame that. when i talk anecdotally, it is not like there is a surge of japanese investors to buy junk

bonds. yet.necessarily eventually, that may be true. are they really going to come here to buy? is that why they are coming to the u.s. to capture on the junk bond energy bet? i don't think so. scarlet: another point you make is the lack of clear direction volatility have to do with the market structure. talk about that. i would argue that there is an even greater shift going on which is the market is moving together too much. it has moved together too much. and other words, people went all in during the debt boom of 013, and now, they're

not as many people on the margins. any trading will move the market much more. and, potentially drive the market in the direction that they don't want. alix: great stuff. thank you so much. for more gadfly commentary go to the bloomberg. scarlet: coming up in the next hour, our exclusive and you -- interview with the sec chair. ♪

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alix: it is 1 p.m. in new york, 6 p.m. in london, 2:00 a.m. in hong kong. "bloomberglcome to

markets." from bloomberg world headquarters in new york, good afternoon. i'm scarlet fu. i'm alex-- alix: still. gives anwhite exclusive interview to bloomberg tv. her goal is to host market stability. can she do it before she sets down? scarlet: goldman sachs and pitting yards say do not the full by yesterday's advance. --x: dick's sporting goods can it take advantage of sports authority for bankruptcy? scarlet: first though, let's head over to the markets desk where julie hyman is tracking the market moves. a snoozer after -- julie: way to sell it. [laughter]

given the japan news, given the declining commodities, you might think there would be more of a selloff. maybe that is the silver lining. i'm going to say, yeah, that is the silver lining. all three of the major averages bouncing off the lows. the s&p is down 6/10 of 1%. if you look at the externals, it looks more like a mixed market by certain measures. look at what is waiting on the s&p -- energy, not surprising. citigroup declining. -- banc of america down as well. assee financials and energy two of the largest drags in today's session? microsoft and facebook, interestingly enough, have turned around, and what is interesting about that, most of the down days have been led by

technology. that is not the case. microsoft and facebook both .igher home depot higher after its executives spoke at a conference and gave a forecast. speaking andft saying that they will sell backed securities to get more cash. looks like there is a positive reception for that, ladies. ultimately not being able to sustain the rally it is seeing? julie: not even the day. it could not last. oil at one point was up as much 3%.5%, down now more than it seems like a lot is riding on the weekly inventories report. it's coming out tomorrow. i want to point out a chart here -- i took this from one of our stories on oil. idea thatok at the

production is coming down. that is the blue line, right? that would be the thing. production coming down if supplies come down. supplies continue to decline. the thinking had been, as you ix, supplies would go down. alix: the market was really exciting that we were seeing rollover in the u.s. it's happening. it's a question of when inventories get drawn in. julie: yes. scarlet: let's check in on the bloomberg first word news this afternoon. mark crumpton has those headlines. the big prizes michigan, where donald trump as a double-digit lead. hillarydemocrats, clinton also leads in michigan by a double-digit margin. polls show bernie sanders is

doing better with younger voters. reserveg federal governor has given money to the presidential campaign of hillary clinton. records, he sec gave three contributions to clinton's campaign between november and january. fed officials have recently made the case that monetary policy means to be nonpartisan and independent. brainerd's husband was a former adviser to clinton. lawmakers have approved a government-backed bill crafted in the aftermath of the paris terrorist attacks in november. it would impose penalties and jail time on technology executives to deny access to encrypted data during a terrorist investigation. sponsors are distancing themselves from maria sharapova

after she admitted failing a drug test. rsche, a luxury watchmaker, and nike have all suspended sheriff popa, the world's highest-paid female athlete. va, the world's highest paid female athlete. i'm mark crumpton. back to you. scarlet: thank you, mark. these securities and exchange commission has powerful oversight over the markets, primarily through its autonomy. alix: our correspondent spoke exclusively to mary jo white about what they have accomplished this year. guest: we have accomplished a great deal of ready. one of my highest priorities was on our equity market

structure. we have also set up the mechanism to do the first comprehensive review of the structure. we are quite active. all of these on issues while we optimize .pecific areas late last year we proposed a rule for greater transparency for ats's. we will take measures this year and through the next. talked about the need for fundamental changes. will that review be done while you are sec chair, and when will they take place? guest: it may be in the us of the beholder what is fundamental or not. -- this is a review that continues past this year

without question. it needs to be comprehensive and deal with the most significant issues. the worst thing you can do is to look at something that superficially seems to make sense, but you do not have the data to justify going forward on it. it's not something you want to rush. erik: what do you think could or should be done to improve the equity markets? about i have talked tha this at length. whether it is conflict of interest, the fee structure, the structures, but there are also places to get greater transparency for investors. but your order, how is it routed, who is executing for you, are you getting best execution? all of those issues are enormously important. erik: some of that is wrapped up on high-frequency

trading, the program the sec has talked about starting -- guest: which will begin this year. erik: well you are chair? guest: while i am chair. really pleased to see that. we can improve the secondary liquidity. it will begin this year as well. in terms of high-frequency trading, most areas that we deal with, you define one and terms. are not aency traders monolith. they use lots of different strategies. you see studies that talk about the benefits that yield from the market. some are liquidity taking, high-frequency strategies, maybe they are studying that. we are studying that carefully. continue to bring in enforcement cases, as we would with any market participant.

but again automated market and high-speed markets and the use s, not just high-frequency traders use that. of benefits, but we have to be constantly evaluating. addressu promise to some of the strategies. you described it as aggressive and destabilizing. is that going on? we have to see formally a recommendation on the anti-disruptive trading rule. oft is to deal with periods particular vulnerability in the markets where these aggressive strategies may be damaging to the markets and investors. that is something we are pushing very hard on this year. more specifically, would you approve plans for a theolidated audit trail, kind of system everybody needs

to understand what happened during the flash crash and more recently, august 24? guest: -- guest: is a very high priority to get that plan approved this year. the commission will act on that quite soon, actually. that was sc chair mary jo white speaking with erik exclusivein an interview. -- sec chair mary jo white speaking with erik schatzker in inclusive interview. scarlet: and we have exclusive comments from a conference -- he is saying that he hopes that the fed would interest -- raise interest rates twice. he also says he would be surprised if rates go negative and questions whether negative rates would be effective. is falling ink trading. part of that is revenue is down 25% year on year. fixed income equities down 15% you're in your. scarlet, it was interesting to

see in the credit market, he said other than the energy sector, credit is performing well. he says that $400 million repositioning reserve -- it's interesting. have they set aside enough money to deal with that? we will find out in four, five quarters' time. we have much more coming up on "bloomberg markets." keep it right here. ♪

alix: welcome back to "bloomberg markets." i'm alix steel. time for the bloomberg business flash. two united shareholders are battling to change the airline's

board. they are nominating six candidates for the board this spring. with thefrustrated carrier fell performance and blame the current board. they plan to reduce spending on oil rigs and platforms over the next to get years. the move is meant to ensure that the world's third largest oil explorer has cash on hand. and a growing percentage of suburban residents are renting rather than buying homes. that's according to a report from new york university's furman center, real estate think tank, and capital one. among the reasons, foreclosures and better credit after the mortgage meltdown. that is the bloomberg business flash. let's head to the markets desk where is taking a closer look at gold. indeed, gold, which

we know has been on a huge tear this year on a long losing streak. we look at prices, we once again have a bit of an increase. to assessare trying the risks. if you look at the gold etf, that is another way we track the price of gold. at if you look at trading lower. even as the price has gone up, we see more investors get into gld. into the fund inflows. we are seeing increases in those inflows. what this means, if you look at ond for this quarter, we are a losing streak. here is the losing streak. here is the increase. it looks like we are headed that direction. date&p versus gold year to

is another way to tell the story. the risk off environment with the s&p 500 still year the bottom, down nearly 3%, gold off a whopping 19%. that tells it right there. people want safety. they are worried about returns in the market. thank you so much, julie hyman. .ayne gorman spoke to bloomberg if the stock market rally will be undercut. guest: i think they may take can look a they little bit in some of the developed markets, but that is a contrast from what we've seen from the u.s. in recent days. so, the crosscurrents in the current market are very, very intense. gold has rallied significantly, was simplyiron ore

phenomenal. risk is coming back on. emerging market equities are back up. i think those are the story. gold and perhaps oil has been inching up, haven't they, where is the iron ore rally was unprecedented. when you have a move that big, obviously my question is, is it too far to come down? gold and iron ore have been very frothy. particularly iron or overnight. where the entry point is to selling something like this, i would not get in the way of the bus right now. delhi is trading in a weird pattern of the moment.

will the money markets bring the fed a high forward into 2016? and we have seen signs of tentative -- tentative signs of thatmoney markets ringing forward, which for us is one of the signals to sell gold. was wayne gordon for hsbc speaking with our own rishaad salamat. the winning up, streak for stocks is in jeopardy. one analyst will tell us why he expects a bust rally. ♪

scarlet: welcome back to "bloomberg markets." i'm scarlet fu. alix: a malik still. one thing that has been

surprising this -- and i am alix steel. one thing that has been how long can this correlation last? that is the question. let's go to our radio colleagues carol massar and cory johnson. massar witharol cory johnson. this is bloomberg radio and it is "the bloomberg advantage." has about 89 billion dollars of assets under management and you were talking about the market has lost its fangs. you're talking about facebook, amazon, netflix, google. what specifically, john? guest: the bottom line is that

trees do not grow to the sky. it can't go on forever. it's not the place to be at this point. cory: does that reflect a greater change? stocks have different characteristics, netflix, barely profitable, focused on the top line, facebook and apple, companies with a very different -- i should say facebook and of freegenerating tons cash flow on the top line and bottom? don: i think these companies have markets they are not trying to take share from. they are creating markets. that's a very unpredictable way to have your business run. we have had very mediocre growth in this country. and when any company can grow really aline, it's supply and demand argument. the question is, can they continue to grow their top line

at the rates they has been, and that is doubtful? looking at the valuations. were nothas a p/e -- even talking about the current which is in the 80's. best metric be the to look at. but what are we talking about when we go from everyone being in love with them last year to not so much this year? for investors are looking other places to go. for the first time we are seeing value stocks leading growth stocks year to date and there is more traditional stocks driven in part of the fact that the government's budget, for the first time since the sequester, is going to be adding to gdp. the common view is the economic growth we will see going forward bolstered by this

greater fiscal spending on capital goods and those are the sectors they will be rotated into. a lakh ofe's also correlation we are seeing right now. correlation we are seeing right now. that goes back to 2014. the stocks we were mentioning, those fangs stocks, did so much better than the market and at some levels were not correlated with the rest of the market. don: yes, i think the lakh of going to be good for investors who pick individual stocks rather than asset classes -- cory: if they pick the right ones. don: that is correct. if the market continues to , then we will see opportunities for people to succeed as investors and we will

better bottomwith line cash flow in growth than the fangs stocks. we are finding great opportunities in the marketplace, yes. lockheed martin is a good example -- they are working to create satellites more efficiently and less time. and because there's generally a lot of free cash flow, that will only improve with capital goods spending by the government. they have a yield of 3% and they are very, very solid on their balance sheet. -- anotherpanies stop with a very good yield, 4%, that went through a tough time and an earnings recession recently, but because it supplies the soul engines to the civilian and military market, it has a lot of inside as well -- carol: you're really looking at

the government exposure. don: yes, we are. got to run.e've sending it back to you guys on tv. scarlet: thank you so much, bloomberg radio's carol massar and cory johnson. will dick's sporting goods gain market share from the bankruptcy of his longtime rival sports authority? we look at that when we come back. ♪

alix: from bloomberg world headquarters in new york, welcome to "bloomberg markets." scarlet: let's start with the

first word news. mark crumpton is more from the news desk. mark: thanks. hillary clinton is taking a break from the campaign trail to attend the funeral of nancy reagan on friday. at michelle obama will also be among the dignitaries in attendance. the first lady will be buried in simi valley, california. the florida sun sentinel is refusing to endorse any of the .epublican candidates senator marco rubio is banking on a win in his home state, but in a statement the paper says that all of the candidates are unqualified to be president. it baltimore police officer -- a baltimore police officer cannot

be forced to testify against his colleagues. the first trial ended in a hung jury. five other officers have been charged in connection with freddie gray's death, which led today's of protest and writing. this is the warmest day on record for the contiguous united which, according to noaa, attributes the warm temperature to our mean you. the previous mark was 36.5 and 2000.t in 1999 global news trying for hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. back to you. scarlet: thanks so much. dick's sporting goods time the fitness trend better than most

and they are interested in sports authority's real estate, which about for bankruptcy protection last week. with the downfall of sports goodsity, dick's sporting is the largest specialty sporting goods retailer. roughlyes represents 10% of the market. the orange slice. it is striking while the iron is hot. 740 stores. this is happening as competitors are closing locations. our charts are not working right now, but they which are that -- actually, there we go. there is the store count for dick's sporting goods. if you look at the warmer than usual winter weather, that is creating a crimp in sales. is but where.e apparel is the blue line. ae exporting goods is getting

isure from athle clothing. allocating space for clothing. the e-commerce -- which you were looking at their -- has outperformed, and the segment may not reach its full profit potential until they take it in house next january. there we go. 1/10 ofce generated that revenue. the stock initially fell this .orning, but has bounced back it is perhaps a sign that investors may be looking favorably on their comments regarding sports authority. me, our guestin and bloomberg's matt townsend. there is a lot of focus on how

dick's sporting goods may approach sports authority. what did they say? they said about 100 of the stores overlap their stores, so there's potentially 40 in play for them in the acquisition of the property. they did not put a number behind what they think sports authority can add to their business. the liquidations will hurt the business, and it will pick up in the second half as they take the market share. they plan to invest in more marketing and take advantage. put at: they did not number to it, but sam, do you have any ideas, any modeling? guest: yeah, we have done a bunch of work. stores they closed, i think it will be five or 10, i think it will be nothing. the stores that are closing our closing for a reason. lousy locations and so on. there are some they may pick out. i think there's more to come

with sports authority, that if they survive, they will get sold. by the end of april if they do not figure it out, they could go away completely and that's where it gets very interesting. alix: you do have a buy rating on the stop with a price target of $55 for the exporting goods. what gets it there? guest: we went to buy some time ago because we thought that taking e-commerce in house would be very accretive. they talked about that on the call this morning. we think that they can get 100 basis points of even a margins, offset partially by the fees they are paying to gsi right now and the end of the investment into the new structure. scarlet: that is a one-time benefit. once they take it in house, it's not like it is recurring? they can get a lot of

scale. it will be better to have them in full control of it. matt, do sports authority and the exporting goods target the same customer? is it basically the same person? same yeah, basically the customer. with leisure and a flood of wear, the results -- they have not knocked it out of the park. foot locker has more shoes. some of the big knocks against k's is why are they not performing better? they .2 categories like hunting slowing them down. categories like hunting slowing them down. you would think a company that wear primarily athletic would he doing really, really well. scarlet: i do need to buy more yoga clothing. about more yoga

clothing, a sticking point was the high inventory across the board. drag is this going on for? that, they commented on $90 million of increased inventory. $45 million of that they return to vendors in the first order, and the other $45 million is inventory that are basics, thatr seasonal products they are putting in packed and hold. if you take out the products that they return to the vendors, that leaves them up at about a 7% increase in inventory, which is about 15 weeks of supply. so it does not look like it is totally out of control. i used to be a buyer at sports authority before i got into this business, and really what happens when the merger happened back in 2003, they did not invest properly and they pointed this out the other day -- when that happened, they were both doing $2.5 billion in business.

now sports authority does $2.7 billion -- scarlet: they mismanaged it? ck's opend then di stores on top of them. you think of them opening were stores? do you think that that is a good use of capital for them? guest: oh, yeah, they said something very interesting on the call. they talk about investing in their brand. they say, well, they will go to amazon or somewhere else. people like to shop brands they know and i think people trust exporting goods to have something that they want. i think investing in a brand is the best thing they can do and i think that has been a lot of foot locker's success as well. scarlet: i would argue that rei has more brand recognition than dick's. guest: they do have a lot of

private labor. balls that are exclusives, things like that. -- they do have a lot of private labels. i like rei, too. it's a great store. but i look at, who is the mass customer? just because i do not like it does not mean it's not good. thanks, sam from sterne agee and matt townsend of bloomberg news. up, a massiveg turnaround in canadian stocks. is canada on track to outperform the u.s.? it looks like it. xitx: and is a so-called gre back on the table? and shares of lending club have gotten hammered. we asked the ceo what is next for the company. ♪

scarlet: this is bloomberg markets. i'm scarlet fu. alix: and i'm alex steele. in london, lawmakers are accusing bank of england governor mark carney of jeopardizing its credibility amid comments over membership in the eu. carney is rejecting a suggestion that it boe report focuses too much on the virtues of membership. are distancingrs themselves from tennis star maria sharapova after she failed a drug test. she is the world's highest-paid female athlete. she said she had been taking a drug known to increase exercise capacity and athletes and did not know it was added to the

list of banned items. less confidence in the u.s. economy -- small business optimism fell to its lowest rating in two years. the 10 indices that make up the report declined. and that is the bloomberg business flash. thelet: let's head to markets desk were julie hyman has been tracking individual movers. what have you got, jules? into thewanted to dig doubt. right now it is only down by 12 points. let's go to the movers helping limit its to clients today. microsoft is one of them. this is part of the upswing we have seen in big cap technology here. we also see them upgrade the stock, saying that public sentiment could be shifting, in other words there could be increased spending that could benefit the company. nike shares are rallying.

reported ak times ledge it bribery -- a legend bribery of kenyan runners. american express is higher on deal talk in citigroup says the company could fetch $81 a share in a potential takeover and perhaps the bank would be interested in buying the company. are up, andshares finally home depot, as we mentioned earlier, executives coming out with a forecast that leaves it room to beat estimates. the outperformance of the dow is not just today. it has been happening all year. if you look at revenues your today, here you have it. the dow was down, but almost -- but only 2.1%. if you look at the bloomberg, we have the historical movers here, what are the best performers and biggest contributors by index weights to the dow's relative outperformance this year?

you have exxon mobil, caterpillar, png. these are some of the out performers we have seen this not doat have helped it as slowly as the others. scarlet: major turnaround in median equities. alix: now the developed world's best-performing index from being the world's worst. we want to bring in pamela ritchie from toronto. is this only about oil? pamela: it is something you have to make sense of. back in january, we went into a bear market. the canadian stocks. he was looking difficult, but we finished yesterday up on a daily and that finished our year to date status at almost 3%. back in january, where things

flipped, many of the world's gold companies are listed on the tsx, so that was one piece of the story. gold shooting upward. goldck hold up -- barrick up here today 3% and change. we are now seeing the energy market turned back into label situation and gold and the material side of thing. some would say we did not see it coming. scarlet: if you look ahead to what kind of catalyst could prompt rising -- come inside the bloomberg, the bank of canada will be holding its policy meeting and making its decision announcement tomorrow at 10 a.m. eastern time and the bank of canada governor will be giving introductory remarks the following day, which you can see under the events tab. what challenges as he facing tomorrow? facing a higher

loonie, essentially. the loonie is off today, but it 75 -- itsanding at the has been standing at the $.75 mark to the u.s. dollar. we thought it would be at 70, 70 one cents. we wanted to get canada to diversify, to recover, deal with the fallout from the energy sector. a number of things -- ok, we have had not great that it, but ok data. canadian goods at a lower loonie price. and we see some consistent data there. it's fluctuating. generally speaking, it is ok. and perhaps the sunny ways of justin trudeau talking about physical spending have added to

an optimistic picture in canada, and we have seen the loonie travel higher. he is not expected to make a cut tomorrow, but you wonder if he will not talk down the loonie to keep it in the zone where our goods are cheap. bitingnd while we are our nails, wondering if the fed's decision would impact the bank of canada decision anyway? be asked about that. it can be a leading indicator, as you know, but i think the optimism and data coming in is really the story for the loonie side of things and whether he may have to cut at some point. a lot of people thought that was stimulusable as fiscal takes over, but i think the discussion is open again. scarlet: all right, pamela ritchie, thank you so much. coming up, fresh concerns over the so-called grexit.

we look at how the dialogue has changed. ♪

alix: welcome back to "bloomberg markets." i'm alix steel. scarlet: and i'm scarlet fu. as greek officials prepare for april's debt relief talks, there are concerns that greece may need to exit the eu, grexit -- all of those resurfacing again. our guest fromto greylock capital. and we asked what is the difference between last year or three years ago. of guest: last year, there was a he debating around -- there was a debating round of discussions. now things are much more in normal with the proposal. they are trying to find a way to implement. , there are can see

priorities that that meeting takes place. alix: i'm curious. the meeting taken place, but have we seen a difference in the tone around the migration issues? guest: there has been talk about it. i think we would be prepared to say they have struck the agreement so the question is how to implement, how to keep those reform thew to pensions, how to reform the tax code. obviously the refugee crisis is big on the agenda as well. but i do think not directly, but [indiscernible] grace is the only euro nation that is still in -- greece is the only euro nation that is still in a bailout. i find that to be really

remarkable, because when the cyprus economy collapsed, if you thought greece was bad, cyprus was going to be much worse. the banking system seem to be in much worse shape. how did cyprus get out of its program so fast. -- so fast? guest: actually, the distressed debt investors -- you see it did work out well. cyprus is issue with a little bit different. cyprus was an agreement that was set -- [indiscernible] they have to basically plug-in hole with-- in the money. the most important take away out of this is when negotiations are you do get aanner, lot of grace from the europeans in terms of hitting targets. that is the difference with greece in 2012.

every single conversation was very confrontational. the referendum last year -- there have been all of these confrontations. has a team in place that conducts negotiations and europeans like it. >> what is the risk of populist outrage coming back? scarlet: that's a good question. guest: we see elections throughout europe, the populist movement. i think in greece, the situation is contained at the moment. the interesting thing, when syriza broke up in the last election, hard-core leftists created their own party and up to make it to parliament. so, you see them more or less acting rational and hopefully syriza will come through with an agreement. at the moment right now they are really committed to these negotiations. scarlet: that was the director

europe at and eastern greylock capital. we want to bring in joe weisenthal. you love the greek story, and it's back. joe: yeah, it's back. they came in with the agreement last year, but now here is the part of the filling all of the obligations. greece wanted debt relief. negotiations are never really over. maybe they will be over at some point, but until those discussions are done and greece implements with regard to pension reform and things like that, there's a lot of work to do. scarlet: the tone and the posturing is so different from last year. everyone wants to be constructive and get something done. they have to cross a lot of t's and dot a lot of i's. joe: i think last year when varoufakis was the finance minister, they were definitely a

different wavelengths and it did not seem like there is much trust. at this point and it has seemed for a while european partners have establish trust with tsipras and are comfortable negotiating with him. i love it. joe gets so excited about greece. make sure to watch "what'd you at 4 p.m. eastern today. lord john brown will join us. still to come, we hear from the chairman and ceo of lending club. ♪

2:00 p.m. in new york, 7:00 p.m. in london, 3:00 a.m. in hong kong. >> welcome to "bloomberg markets."

from bloomberg world headquarters in new york, i am david gora. >> and i'm tracy alloway. expert data in china training on the parade of u.s. stocks come equities pairing earlier losses but still in the red as we head for the first drop in march. david: set to fizzle -- that is what goldman sachs is calling the rally in commodities. and shares of lending club taken a beating and analysts are growing curious about its funding sources to we will ask the ceo of the company needs to make more deals to keep the cash flowing. david: first let's head to the markets desk, where julie hyman has the latest. julie: stocks have prepared the earlier declines. this all started after he got extra data from china