from bloomberg's world headquarters in new york, good afternoon. here is what we are watching this hour -- markets surging .igher after the fed how we went from red to green on the year with the worst start to record. crude oil tops $40 a barrel for a time today, hitting its highest level in over three months. can we finally say the worst is over for crude? a recent health care at chipotle has put the company's food safety back in the minds of customers, leading to renewed fears as shares tumble again. canned chipotle ever escaped the safety question? two hours from the close of trading and stocks are soaring at session highs today. ramy inocencio has the latest.

: we did get a rocky start this the dowbut we did see at session highs. with look at what is happening with the numbers -- the s&p 500 up by about .8%. the last -- the nasdaq the least hashe gainers, echoing what been happening in tech stocks for most of the year. materials, industrials and energy are the biggest gainers on the s&p. speaking of industrials, they are some of the top dow performers. namely these 3 -- general up aric, bowling and nike little bit more than 2%. this is its highest since new year's eve and the biggest jump since the end of january. very strong and brought across the board there. going back to what i was talking date, thedow year to volatile ride we have been seeing ever since we saw the

route in equity from january through february and then we had this inflection point and you can see year to date, we are up about .4% and continuing to climb. points, we are about 1.5 away from turning into the green but the nasdaq is down. david: the rally in commodities has been driving the action today. ramy: basically looking at commodities, lower interest rates and the fed holding steady, that is basically good for commodities and is what is driving copper as well as zinc and oil is pulling the markets up. waslast time this happened in early december. one of the things driving this is u.s. production falling to a low not seen since november of 2014. we are just off session highs,

up 2.7%. lower rates are generally speaking good for gold and it is still on two days of gains after the fed cap as interest rates unchanged. --id: a bit of breaking news pershing square holdings on negative watch here. droppedt value has substantially because of a percent this decline in the market value of valeant pharmaceuticals. let's get a check on the bloomberg first word news with mark crumpton at the news desk. mark: president obama privately told a group of democratic donors is nearing the point where his campaign will come to an end, according to the "new president made the remarks in austin, texas

after reporters left a fundraising event. the comments were later confirmed by a white house official. five sheriffs deputies in north carolina have been suspended and put on probation for their actions at a campaign rally for donald trump. the deputies had been escorting a black man from the event when video shows him being struck in the face by a white man. the deputies had their eyes on the stairs when the man was struck. the suspect has been charged with assault and disorderly conduct. canadian prime minister justin trudeau acknowledges his country's economy has been hurt by the global oil route. prime minister trudeau says the government is looking to make investments for the future. this idea that confident, optimistic companies will invest in the future is what we are focusing on. cleantech, renewable energies

and whether they are investing hospitals,ridges and the kinds of things that will lead to better quality of life in the coming years, we think this is a great opportunity to be building for the coming decades. mark: prime minister trudeau is scheduled to deliver his first budget on tuesday. automatic braking will be standard on cars and trucks within the next six to eight years according to an agreement transportation officials and automakers announced today. global news 24 hours a day powered by our 2400 journalists in more than 150 news euros around the world. thanks talks are becoming the biggest drag on the market this year. the fed signaled more dovish in

this and there's concern about lending profitability coming into the fold. joins me now. good to have you with me. let me start with what we learned yesterday. janet yellen said caution is appropriate. what did you make about what she said about the economy writ large in the face of rising rates? guest: it is clear they are concerned about the level of economic growth. they have not seen the level of growth and in metropolitan new york, i would say the economic environment is at risk. we have then delete a lot of relationships and in sectors like health care and real estate, those continue to expand and i think it is vibrant.

done no matter what the interest rate environment is, we try to reinvent the company. you try to look at how do you take best practices and apply them? ?ow do you add value is aest rates being low challenge but there are always opportunities to make a difference. you are in a position where you are lending money maybe not to individuals but to businesses. what does the credit market look like to you? the credit market today is pretty strong. metropolitan new york is probably the greatest opportunity in the world. banks have tried to be all

things to all people and we have their own our focus to say we are a business tank. primarily focused on companies and we want to add value to that niche. i would tell you the credit markets are interesting. i've been through many cycles in my career and credit quality has been pristine. you can see some erosion and see the outcomes which are certain financingcertain diminishing the requirements on debt service coverage or reducing covenants. you start to see the beginning of an erosion to that, so i wouldn't be surprised if that them point in time, credit quality starts to erode and

certain banks contract. the folks who do it in a traditional focused, credit quality, high quality manner stay in it. capital.e lots of buffersa lot of capital against any challenges in the future. david: we focus on the fed and its responsibilities here. it obviously has a regulatory role as well. issue intion still an terms of cost or perhaps being onerous on your ability to lend? guest: the regulatory environment, we have found regulars to be very helpful. some of my brother and may not agree with that but we look at it as bring us best practices. we want to do the right things and be focused on always

improving and reinventing the company. , soave a lot of regulators being coordinated is the biggest challenge out there. the majority of the things brought to bear over the last several years have in positive and frankly, companies and organizations that embrace that and utilize that, it becomes a competitive advantage to take the regulatory environment and be excellent at risk management and be progressive in that it is what it is. there not going to change regulatory environment, so you might as well embrace it and do something positive with it. mentioningt yellen the risk she sees around the world and how it affects her line of work. how is it effecting yours? guest: it goes back to reinvention. the challenge to running businesses and banking especially hasn't changed that

much. i think great companies constantly reinvent themselves. you look at best practices and they find ways to take something someone else does and put it in their own context and make it happen better. that is the opportunity we have and i think we've done a good job at that. our performance metrics are very strong and we took a bank for years ago and now it is a $12 billion bank and the performance metrics are very high. there are tons more opportunities to create positive operating leverages and efficiencies for economies of scale. no matter what interest rate environment you are in or what economic situation you are in, there are always opportunities and you have two adjusts the model and never be satisfied with the way things are. david: thank you so much for the ceos perspective on the janet yellen decision.

coming up, chipotle shares getting hammered as sales at the restaurant fell 26%. thelighting that and company's safety practices. and we will head to sao paulo for the latest on the crisis. the president may have roque in the law by appointing the armor president as chief of staff. healthy gains for brazil, argentina and chile also up but not by much. more bloomberg markets after the break. ♪

david: this is bloomberg markets. time now for the bloomberg's as flash and a look at the biggest stories in business right now.

cutting its rating for pershing square holdings. a big drop in the net asset value over the last five months accelerated by a dramatic plunge. shares of valeant pharmaceuticals falling again today. nation's wealthiest colleges refusing to open their books to lawmakers demanding transparency. they are facing pressure to look theirances made through endowments. with combined endowments refusing to provide a angle record. google parent at-bat is looking to put boston dynamics of for sale. the unit is known for making amazingly cool robots. possible buyers include toyota institute and amazon. let's check the s&p 500 -- just turning positive.

ramy inocencio is looking at some of the individual movers. one point positive for the year putting things into positive territory. in terms of major movers stock look at fedex -- the most in six years of has been moving because of an improved profit outlook, profit it says ending in may. aso, let's look at amazon office depot. one going up and one going down. amazon might be looking at corporateot's business unit. amazon could use the corporate accounts to jumpstart its new office supply business. amazon did not return any calls but amazon is down by 2% but

office depot is rallying by 10.3%. talk about is with mastercard and paypal. both rising -- paypal, not so much. mastercard up by nearly 2%, but according to wedbush, saying mastercard could be the most interesting dance partner for paypal because wedbush says a deal between the credit card company and payments company into help mastercard get the faster growing e-commerce business and now it's seeing just single-digit growth. a look at chipotle, down the lowest in a month because of an analyst downgrade by jefferies. jefferies saying the turnaround efforts will be much longer than expected. going to stick with chipotle here.

the company working to get back on track the a call i outbreak. news about a massachusetts restaurant closing has the company back in the headlines. our reporter has been covering this story from the very beginning. implemented a lot of new safety and regulatory aspects to keep this from happening again. how big a setback is this going to be? >> the situation is not good. sales were down 26% in february. the extra day added 2.5% to the comps but they said there were improvements. february was getting better and there's this headline out of massachusetts saying we did everything right. for workers called in sick saying they a have nor osiris. they close the restaurant and cleaned it.

the headline hit and sales plunged again. they are really between a rock and a hard place. it just illustrates the fickle nature -- the goal nature of consumers. there were sometimes in the beginning of this out raked to pause and say the company is trying to figure this out and try to get back on the right track. our people beginning to say they should have done this differently? guest: i have heard that they should have put the ceo out there and the message may not be getting through to the consumers. they have not had a reason to go back. they haven't heard about why it is safer. lost ina little bit of translation as far as what the consumers hearing.

david: how big is it that they don't know where this outbreak started? problem fors a them. the cdc said there were issues with how chipotle keeps its records. there's ays disagreement but it doesn't help. they would have been helped if they were able to say it was let us come it was salon tro, here is what we are doing. it definitely hampered the recovery. chipotle off by a of harvard square and it was almost completely vacant. andhave seen the company reports that the company might be giving away free burritos to make this happen. free luncheshese is going to cut into its ability to make money here. than $60sacrifice more

million in sales to try hard to get people to come back into the store. guest: coupons are great for people who know the brand. maybe they hear about people getting sick and say i'm staying home. but if they come in, do they come back? it doesn't help with new customers. before this started, chipotle was slowing down a bit. now they heard of the company and there's a big question about that person -- that is what they associate with this rant now is all of this crisis. great to talk to you. we will be back with more bloomberg markets after the break. we'll talk about the political crisis but the s&p 500 has turned positive for the year, up about .1%. more bloomberg markets coming up after the break. ♪

david: welcome back. we turn now to the political drama in brazil. a federal judge suspending the appointment of former president lula. our sao paulo euro chief joins us. it began with a ceremony with admitted dinorn in outside. what has happened since -- a fairly dramatic reversal. about half an hour after the ceremony was over, judge suspended the nomination and sent everything up in the air. the attorney general has said he will appeal the decision but as of right now, lula is not in the government. this is a little unprecedented in our history. a little speculation about the president's motivation for doing this -- a taped

conversation between the former president and current president -- what does that indicate? guest: the nomination has been discussed extensively as rumors started flying around weeks ago. member of the cabinet or minister, you could only be investigated by the woulde work, so that shield him from prosecution. part of the phone call, although they have said this is not what she meant, it was to give a document to say we are giving you a document if you can't come to your swearing in ceremony, just in case you needed. that created a lot of confusion because why would he need to be doing at that soon? what is the status of impeachment proceedings being brought against the president?

guest: the lower houses voting on that right now. the supreme court gave the guidelines yesterday and they already moved forward. house president expects this to be done in about 45 days or so. david: thank you so much. still ahead on bloomberg markets, it's not just iran and the saudi's running the price of oil, demand from china is causing rippling affect on the price of crude. just looking here at nymex .rude, up 4% more bloomberg markets coming up after the break. ♪

david: from bloomberg world headquarters in new york, this is "bloomberg markets." mark crumpton has more from our

news desk. is criticizingd republican leaders over donald trump, saying "moral cowardice set the stage for the rise of the republican front-runner. senator reid called on paul ryan and mitch mcconnell to reject trump out right and chastise them for not denouncing the more extreme elements of their party. this is not the first time president obama has considered merrick garland for the supreme court. 2010. on the list in that nomination went to justice elena kagan. he's the oldest nominee in 45 years. some say that could be a strategic move by the president. secretary of state john kerry is determined that that's has determined that islamic state has connected genocide that

committed genocide in iraq and syria. overdosel medicine sends 160 children to hospital emergency rooms every day according to a new report from safe kids worldwide. 60,000 kids were seen in er's in 2013 after ingesting pain relievers and other drugs that adults had left in their reach. news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. david: commodity markets are closing in new york. gold advancing after four straight sessions of losses. the bti touched $40 a barrel in new york for the first time since december. -- wti touched $40 a barrel. u.s. crude output at the lowest

levels since 2014 and supplies expanded according to an energy information report released yesterday. let's get more insight on oil. the chilcote spoke with director of the international agency -- international energy agency. >> if you get a bit of news from , loweror economies demand growth or our expectation production -- we a day decline this year, if it is more resistant, we may see downward pressure on the prices. ryan: the saudi's seem to think of this idea of iranian -- iran going to 4 million barrels a day is laughable.

they have a few hundred thousand more barrels in it in the short term. what is your view? >> we expect an additional 500,000-6 on the thousand barrels per day -- six of the barrels per day without major efforts. 500,000-600,000 barrels per day. >> you think maybe the market is anticipating that will come perhaps faster than it might. >> we have to be careful. it is the lifting of sanctions. it does not translate into an automatic measured increase. that is the executive director of the international energy agency talking with ryan chilcote. isn's production increase

affecting prices. i want to bring in a research analyst from deutsche bank. there's been a lot of speculation about the degree to which iran will reenter the market. how quickly, how much oil it will put into the market. what is your take thus far? >> we've already seen about 250,000 barrels per day, increases in production and exports. thet surprising because additional idea would be that we would see drawdowns in order to furnish the additional increase in exports. it is in line with what we think they can do further. another 200-300 over the course of this year. the total increment they should be able to do is another 400 for the year. depending on how quickly that investment can come in, that may take a year. david: i'm here to talk about global demand, especially as it

pertains to china. i want to ask you about what the ie aea said that perhaps we .ottomed out a light at the end of the tunnel. here, sounding a bit different from that conversation with ryan chilcote. michael: exactly. there has been an about-face in the tone of comments. a majorwe have seen when forward fundamentals over the next two to six years have not changed much. we think we are halfway through a process of rebalancing that will take three years and result in the first inventory -- first major inventory drawdown by the end of putting 17 or perhaps 2018. supplyations to expectations or demand expectations can bring forward a push back. broadly speaking, we are on this multi-your path. that has not changed a lot.

what we have seen is some response to the dollar. i do not think we should ignore the effect of a weakening dollar. certainly the correlations if you look at the 30 day or 60 day window -- in that interview, ryan asks a bit about what is driving the price of oil. they are saying firmly it seems that it is u.s. shale production . the prospect for a freeze among some producers. michael: we certainly have seen u.s. shale production continue its decline. steep as weeen as would have thought. eia have from the shown that the peak is actually lower than they thought it was. the decline rate is slower than expected. it is a packer, it is helping to tighten up markets, but progressing slower than we

thought. -- it is a factor. we see that tightening coming in, but it is a slow process. david: the prospect for chinese demand for oil over the next few years, we have seen and uptick in the next quarter century. your research suggesting it could flatten out a bit. talk about the role of china in the global oil market. for automobiles and china, do you see that continuing and driving demand their? michael: china over the last 8-10 years has been about a third of global oil demand growth. the component i been looking at recently is the passenger vehicle component. how much does this increase for how muchunt for -- does this account for in the oil demand increase overall? since the global financial

crisis, that proportion of vehicles as a share of china's oil demand growth has gone up from 29% to 66%. going forward, it's important to think about whether that component will stay strong. what i have found is that it seems like over the next six to eight years, by 2024, china's passenger vehicle oil demand decline slightly from there. the driving engine of the one third of oil demand growth in the world may start slowing down , not this year, not next year, but over the next -- over the medium-term. mike with deutsche bank joining us from london. merrick garland on capitol hill right now meeting with senators as the republican leadership

refuses to consider his nomination. harry reid says republican leaders are responsible for the rise of donald trump. we will hear from the air b&b ceo in a bloomberg exclusive. company maywhy the offer other travel services like guided tours, restaurant reservations as it looks to expand its business. the s&p 500 joining the dow in positive territory. more "bloomberg markets" after the break. ♪

david: welcome back to "bloomberg markets." president obama's supreme court pick merrick garland is set to met -- meet with patrick leahy and

harry reid. john heilemann is in phoenix today. let's start with this nomination. despite thet did it fact that republicans say there will not be a vote on him. what is your sense of the democratic thinking here? that this will lead to a vote in that lame-duck couple of months down the line or do democrats look to wear down the republican colleagues? john: they don't care. i know what the white house thinks. they want to put up someone on the court to president obama thought could be a really good supreme court justice, someone yesterday close to the president referred to his thinking about the court as a basketball team. he has a point guard in elena kagan, power forward in sonia sotomayor, now looking for a swingman, someone who can persuade conservative justices to come over to the liberal or -- liberal side. the president is happy for merrick garland to get on the

court. he is aware that there is a chance the republican intransigence will continue. this is designed to make republicans pay a price. confirm my nominee or refuse to or vote guy a hearing down and eminently qualified to judge and we win the political battle because it looks like congress is totally dysfunctional and not doing its job. david: i want to talk about the campaign. i will have you look at my --omberg here come a chart the chart of the hour, looking at the partisan gap between democrats and republicans, focused on the bloomberg comfort index for democrats, seeing that ick up. -- t hillary clinton on the democratic side and donald trump on the republican side -- are we starting to see that become

something more acutely in the focus of voters? john: enthusiasm can matter a lot in the general election and turnout is one of the key factors. -- what ishistorical the word i'm looking for? there's no historical correlation between turnouts and primaries and turnouts and general elections. a highlyers to riveting and entertaining .ontest if that persists in the fall and is encountered by democratic enthusiasm or democratic revolution, that is a huge problem for democrats. the fact that the democratic turnout has not been as huge as the republican turnout does not tell you anything about where we will be coming -- come november. there's a lot of theories about what will happen. spanishl that do to her

-- hispanic turnout? is a good question to be looking at right now. what we currently know does not tell us with any certainty where things will be nine months from now. david: ted cruz trying to make the case that he's the man to go up against donald trump. he has to face off against john kasich. how do you see the contours of that shaping up? big question now, there's two possible things that could happen. one is that donald trump secures 1237 delegates and becomes the nominee. the other is that we go to a contested convention. it is unlikely that ted cruz can 1237, it is impossible for john kasich to get there. what is the best way to keep trump from 1237? cruz people- the

think it's poor john kasich to drop out. kasich says there's a better chance of beating trump and more states and hold him under the magic number. an endgame of much of the party not to actually nominate someone, but to stop trump from being the nominee. my gut says that ted cruz is wrong. if the goal is to stop trump, it's a better -- it's better to have a three-way going into june. david: john, thank you so much. don't miss "with all due respect" tonight. that is tonight at 5:00 eastern time on bloomberg television. the s&p moving into positive territory for the year-to-date. it happens to be the first day of march madness. rami is standing by with today's spider sector report. rami: i will get to that in 30

seconds or so. let's first off take a look at what's happening with spy, the etf that tracks the s&p 500. it is up by .7%. off of its session highs. this is still the biggest jump in a week. it is tracking the spx. we are expecting that volatility is on the decline and that is what we are seeing. we are off session lows, but the vicks is still down by nearly is still downx by nearly 4.5 percent. the lowest since august, seven months ago. with etf's and march madness, if you're a fan of both, i want to show you this fun little graph your. -- graph here. etf's and march madness have

impact on volatility. making volatility fall. the change in volume versus the 60 day moving average of the tournament. -- volatilityn't decreases during march madness because people are watching more college basketball. let's take a look at what is happening year-to-date with the etf's that track the s&p and the dow. the s&p 500 year-to-date is up by .5% here. also for the dow, the etf that tracks that, that is up by about -- nearly 1% or so. there we are. at session highs. we are seeing the etf's mirror what is happening with the eat -- the s&p in the dow. because a basketball, we are not at our terminals so much.

david: for those following along , the duke madness blue devils have one against the seahawks -- won against the seahawks. settion rental site airbnb to offer at on travel services later this year. we will hear from the ceo, coming up next. ♪

david: welcome back to "bloomberg markets." airbnb has been testing out a program that will let tourists book add-on services like personal chefs and babysitters. for more on this, we turn to emily chang. you sat down with brian chesky, the airbnb ceo.

she spoke to him about the prospect of magical trips. let's hear what he had to say. forgive me -- we are having technical difficulties. we are in positive territory here for the year. the s&p 500 and the dow up 16 points. 1%.dow up just over .3%.asdaq up about i think we have emily chang back online hear from san francisco. brian chesky spoke to some detail about this magical trips. he wants to have some added value for folks booking trips through airbnb. we discovered that airbnb

has been testing out these additional services, think personal chefs, bike rentals, towards -- tours. me that theytold have been testing these services, tests have been going well. they talked a bit more about why they want to do this. take a listen. brian: tests are going really, really well. nothing announced yet. what i can say is this. when people look at airbnb, it is easy to see airbnb as we have mostly homes in cities. we have hosts. we are a community of people and those people are in neighborhoods. when people go to a place, they want more than just a home. you want to be part of the neighborhood. how can we immerse you in the neighborhood? that's what we are really doing. emily: we also spoke a little bit about airbnb's future plans.

they have a $25 billion valuation. they are valued more highly than hotel chains like hilton. they don't think of hotels as specifically their competition and i said, how do you raise money responsibly in this environment? brian: we are not raising any more money at this point. i don't think we will have need for any more capital. is we started air by the -- airbnb in the financial crisis in 2008. that was the window that we started the company. we started it in the recession with the door closed to us. nobody wanted to invest in us. that was the foundation of how we started this company. by our dna, we are a scrappy company.

this was founded in a bad economy. people are even more likely to seek new ways to get income. you have to take a really long arc on these things. emily: what about that ipo? when is that happening? this is what he said. brian: a great company should always be ready to go public because you want to operate your company.ike a public have all the judiciaries in place. we don't have any more need for capital. we definitely don't have plans over the next two years to go public. after that, we will see. emily: i thought that was an interesting point. airbnb has enough money to fund itself until a potential exit sometime after two years. david: when he talks about expansion, did he talk expansion geographically at all? emily: we talked a lot about

china. their business has thrown 700% in china. they launched in cuba one year ago, their fastest-growing market. .hey have 4000 listings there they are doing interesting experiments in japan. international growth will be huge for them, not just in china, but india as well. david: emily chang joining us from san francisco. to hear more of her exclusive interview with brian chesky, tune into "bloomberg west" tonight right here on bloomberg television. stephanie ruhle sits down with kevin durant. they talk nike, endorsements and the nba. that's coming up next here on "bloomberg markets." ♪ . .

>> it is 3:00 p.m. in new york and 3:00 a.m. in hong kong. welcome to "bloomberg markets." ♪ ♪

betty: from bloomberg world headquarters in new york, good afternoon. i am betty liu. here's what we are watching. markets are kicking off with gains in industrials and materials. commodities are searching. the dow finally erasing its loss on the year, and the s&p briefly turning positive. apple shares are up 8% in the last month, but is there trouble looming ahead? recent supply chain checks show softness possible in the iphone. nba superstar kevin durant, in an exclusive interview from the nike innovation summit. the oklahoma city forward fills us in on everything from his new speakers -- sneakers to be latest in sports tech. we are one hour away from the close, and stocks are rallying big-time. ramy inocencio has the latest.