mark: i mark barton, this is bloomberg television. ♪ we will take you from new york to london to berlin in the next hour. with 30 minutes of the trading session and stocks are falling for the third straight day. streak ofck to hold a five weekly gains well the downturns negative on the year -- while the dow turns negative on the year. gunning for yahoo!, investors star board mean to shake up the struggling web company in a big way. nominating 5 -- nine directors to god board, saying the company has been mismanaged. lostinvestors finally their patients with the chief executive? vonnie: some of the hottest cars

from the new york auto show are coming to us. we talked to the chief executive of cadillac about his plans to compete with premium names like bmw and audi. let's head straight to the markets where bloomberg's julie hyman has the latest. julie: stocks pulling back today, not huge declines, but it does mean we are now negative on the year. if you look at the year-to-date returns, we had that brief period of gains on the dow, we are still negative and the nasdaq more deeply in the red. it has consistently been the laggards. in terms of what is dragging, it is the banks. we had a lot of investors and traders say if there is going to be a catalyst for u.s. stocks, it could be earning season. we will hear from many companies starting over the next couple of weeks, but banks are among the first to report and some of the

commentary is not very positive. ubs is rating wells fargo a cell. -- sell. andysts cite high valuation for u.s. banks, it is the perfect storm for first-quarter earnings. earnings will be unusually weak from the banks and that you can take your pick with global growth concerns, china, lower prices. rates and oil you see the banks falling in today's session, so yes the 500 which had it on this run, this ounce from the lows of mid-february over the past couple of days have pulled back by more than 1%, leading to that year-to-date negative performance. vonnie: at least partially, oil prices and commodities. julie: you also have the commodities prices that are once again a drag.

crude oil continues to pull back more deeply below or the dollars a barrel. gold is down, copper is down. we are still seeing continuing strength in the dollar. if you take a look at the currency, what we are seeing in the commodity market, we have gotten week this and this is the one we performance. we have seen the dollar strengthened against the yen and that has coincided with renewed weakness in the commodity market. mark: we are down for a fourth consecutive. these are all the industry groups for the week. we are down by 1.5% and today is the final trading day or the easter holiday. this is the longest losing stretch sent february -- cents sinc were a --

februarye. y. this leads me to the pound against the dollar, this is a five day chart and sterling is down by 2.5% against the dollar. at least 11 billion pounds have been wagered this year on options that would profit if sterling fell to below 1.35 against the dollar. more than half of these positions have been placed since the date of the referendum. a drop to 135 would take the pound to the lowest level since 1985. sterling continues its losing run against the dollar. big m&a against the italian banking system. milano -- creating italy's third-biggest lender.

investors will hold 54% have a combined lender. these are shares of both since 2007. the height of the financial crisis. i have normalized it at 100. look at how these companies have fared. down by 80%. the other company lost almost all of its value. -- tohows the extent of which bank stocks have been hit since the crisis. vonnie: we do have some breaking news from chicago. the plan to overhaul the city pensions has been ruled illegal. illinois top court upheld an earlier ruling that struck down the plan. rulednsion fix unconstitutional because benefits would be cut and this is just coming out, now. let's check in on the first word news with matt miller. matt: the u.s. has accused

iranian backers of launching a cyber attack against wall street. prosecutors say the group the new york stock exchange, bank of america and capital according to an indictment. mediassels, belgium news is reporting that a police operation is underway. not much information about it. police detained a man and searched his car. authorities are trying to find a second suspect at the subway station. he was seen on surveillance video carrying a suitcase. in brusselsicials are trying to come up with a response to the recent wave of terror attacks. the chief paris attack suspect has appeared in court in brussels. says he is not interested in fighting extradition to france. the lawyer did request a one-month delay to familiarize himself with legal documents.

the man was captured in brussels last week after four months on the. run -- on the run. global news 24 hours a day. vonnie: one of the biggest threats to the global market this year are the major moves and currency. china's currency hits a one-week low after china central bank weekend it fixed and the pound is vomiting more than any other major currency versus the u.s. dollar. meanwhile, the u.s. dollar is climbing. for a closer look at the impact, --'s bring in the key china i want to reference europe or from this morning because maybe this is the first time that the dead does ask if ray about a stronger dollar.

binky: i think the heaven worry about a stronger dollar for some time. i would argue that it is about or thee when the impact path of depreciation starts to come. data, weok at the u.s. look at what the market relative to the consensus perspective, it is early february when we see the data surprises less and less atative and we are currently around the neutral levels and the normal pattern would be that , assuming we don't get new negative shock, we should have to an half months of positive data surprises. on the capital goods side, everything that is impacted, most capital goods, retail sales, everything impacted by the dollar, there is going to be some impact, but the important

thing to keep in mind is it is starting to anniversary out. it has been in a range. innie: we sought the dollar january, the same day we saw oil bottom out. does this mean the fed can still raise in april? binky: i think it can, but i don't think it will. if you think about what is their forecast, the forecast looks pretty similar to what it had in december, but we did have some slowdown in growth and if you look at the last six or seven years, the reaction to what slowdown has been, i would argue that it is possible, but unlikely. june is very likely because the data surprises -- it to continue to strengthen and surprise a little bit and that should be sufficient for them to go in june. julie: the flip side of the dollar is that the pboc in china

has lowered the yuan reference rates are the lowest since early january. coming out and saying that the yuan is the greatest risk to the global economy, is it? binky: yes and no, it was the biggest risk earlier in the year , but the two points i would , the chineseen are have communicated that they don't want to see a big devaluation, and they have pulled back on a number of policies that were inadvertently exacerbating the run of the currency. number two, i think it is important to keep in mind that despite the bounce in the dollar that we have had over the last couple of days, if you look at it over the last disco to three months, trading against the major currencies is down about 6% and the r&b is pretty fixed

relative to the u.s. dollar -- are in be is relatively fixed to the u.s. dollar. the depreciation has already happened and reduces the pressure to move lower and it argues for positive surprises on the growth side. thee: which leads to current -- the country showing signs of stabilizing. do you concur with that? would you say we are entering a period for the data will improve and the economy will stabilize? from ai would say that three-month point of view, we should see some stabilization, some positive surprises. if you look out longer-term and look at where china and all of the emerging markets have come from, i would say we are pretty close to that realization -- renormalization.

vonnie: before we move on to other asset capitals, rates have not done much in the last little while. we got that little bump. , the points that i would make is the data is better, but the market interpreted the last fomc pushing out rate hikes and reeling in other things going on, greater inflation tolerance. i would argue it is just a gradual, careful response to the data and so it just takes a little bit longer. i would argue markets sort of overreacted on the downside in pushing out rate hikes too much and that is going to come back, but rates are going to go up. the 10 year and the s&p 500 have generally kept pace of each other. vonnie: we look into the s&p in just a moment. for now, you are looking at live pictures of the department of justice news conference.

the doj is announcing charges against a group of iranian hackers that was cyber attacks against wall street. we will bring you many headlines. ♪

mark: live from london and new york, i am mark. vonnie: and i am vonnie quinn. let's head to the markets desk were julie hyman has a special look at the markets. puns canw many easter we fit into the show?

currency strategist making a similar comment although he is looking. to either. act of the s&p 500 to the beginning of 2015 and there have been some big moves in between times, but overall, we have not seen a lot of movement. line, sohe zero everything below this line means that economic data came out missed estimates. he pointed out that we have seen a lot of disappointments on the economic front and that has been one of the things that has been driving this sort of stuck in neutral. nonetheless, that is one of the things that has driven it. we have seen all of this economic disappointment. we have seen the s&p 500.

vonnie: thank you. this has been permeating the markets. is it fair to look at easter and talk about a bunny market? binky: i don't know. i don't know too much about bunnies. time, we are basically at the cusp of the surprises turning positive, so must we get an an anticipated shock, we should start to get data surprises move up. the simple point that i would remind is, the market -- the market does price in quite a lot how thingstters is come in relative to what is priced in. vonnie: the idea about bunny markets is that it is not really going anywhere but jim's point -- it is not quite your point. binky: i would argue that we had

the negative data surprises and there is very good reason for why we have had them and i would argue that the recent -- number one would be the u.s. dollar, number two would be the china shock that we had. i would argue it is one off and the risk is down. number three is the central banks, what the ecb did in october and i would argue the market is react a lot less to them and so, it is much more likely that we break out. could could -- mark: better data increase the dollar and short circuit itself? binky: that is definitely a big market concern and a reason for why people are skeptical that we are going to break out of the range, but i would argue, it is very important to keep in mind that the dollar itself has also priced in a lot. a couple of simple numbers to keep in mind, the u.s. dollar against the major currencies, to

whenise in early march, the rise stalled was already up 40%. that is a very large increase while u.s. rates have gone up by 25 basis points. european and japanese rates are down by 10 basis points and 40 basis points, those are not big moves in rates. in the u.s., the market has not priced in any sort of huge rate hikes, yet we had a 40% move on the dollar. dollar isgue that the ahead of rate differentials. if you look at rate differentials in the dollar u.n. -- yen, it is tracking very well and what you see is that the yen starts to fall, rate differentials moving in favor of the dollar, but very modestly. if you look at where the dollar yen is today, even happier --

even after raising, it is already pricing in another 4% -- another four-point increase. mark: where is the earnings growth? we just came up the worst earnings growth, -7% since 20 -- 2009. have we bottomed in the u.s.? have ine are going to q1 earnings, the worst in year earnings growth we have seen since 2009, but the call is also that they should mark the bottom. the dollar has been a big drag on earnings, so talking about in q3, it took off about 15 percentage points. off aroundhould take 9%. the drag or the cloud from the dollar, the appreciation is coming off, but it's coming up very gradually, which would make sense.

slow down and the market volatility. it is the second derivative that matters, so we should see less negative earnings growth in cute -- in q2. vonnie: we will leave it there. thank you so much. still ahead, deadline day for volkswagen. the carmaker needs to reach an agreement with the u.s. over its tainted diesel engines. ♪

mark: you are watching bloomberg markets. let's get on to automakers. deadline day at volkswagen that has to present a solution for its tainted diesel vehicles.

if the automaker cannot strike a last-minute deal, it could ace daily fines and other sanctions. for more, let's get out to berlin. what sort of sanctions are we talking about if this deadline comes and goes? mentioned, they could be facing daily fines. that is ultimately up to the discretion of the judge. the judge could also force those cars off the road. it is a pretty significant day for volkswagen. they have had this deadline handed to them a month ago. as far as we know, they are not anywhere closer to a deal -- they will not reach a deal in time for the deadline. who is playing hardball? is it the u.s. or volkswagen? chris: our understanding is that both are playing hardball. both are under pressure to reach a deal.

the epa needs to have these vehicles cleaned up, but at the same time, volkswagen is under more pressure because the scandal came about, six months ago but even before then, they were stonewalling u.s. authorities about this device in their vehicles. years of these cars have been on the road, polluting more than they are allowed. ultimately, it is up to volkswagen to resolve this problem. they have not done so, yet and the pressure is going to be on them when they ace a judge in a little over a half hour. mark: give us a guesstimate of the potential overall cost of volkswagen of fines and impending lawsuits. just in the u.s., alone, worst-case scenario for the doj, which is part of this hearing that is taking place. the absolute worst case scenario is $46 billion.

there is also the estimated cost of them buying back to vehicles, nine point $8 billion -- buying back the vehicles, 9.8 -- $9.6 billion. theyver they want to do, want to minimize the cost of getting out of this crisis. -- theythey have .6 have put $6.7 billion aside for repairs in europe. we will see what comes out of the hearing. mark: thank you for joining us. lots to come on bloomberg. stay with us. ♪

mark: cadillac has been working to reinvent itself as a luxury brand. we will talk to the chief executive later this hour and we will have their latest crossover

live outside bloomberg world headquarters. i am mark barton in london with vonnie quinn in new york. let's check in with first word news from matt miller. matt: the belgian interior minister submitted his resignation today but the primacy refused to accept it. he offered a step down after revelations that one of the terror attackers had been flagged as a foreign terrorist fighter after being held in turkey. turkish officials say he was released from dutch custody due to a lack of evidence of involvement in extremism. north korea claims it has made more progress in developing ballistic missiles that could target south korea and the u.s. it jong un's regimes as completed a test of a solid fuel rocket engine which reduces launch preparation time making it harder to detect the missiles

before they are launched. in the u.s., vice president joe biden will speak at georgetown law school today. he is trying to move past remarks made in 1992 where he seemed to endorse blocking a supreme court nominee put forward at the height of election season. republicans say they are following the joe biden rule to reject the nomination of merrick garland. gop leaders he says are distorting his remarks. opposition to free trade is unifying -- is a unifying concept in a deeply divided electorate. the latest bloomberg politics national poll shows almost 2/3 of americans favor more restrictions on imported goods. large majorities paper policies protecting domestic jobs or seen to protect jim death domestic and describe the north american free trade agreement as being bad for the u.s. and prefer a u.s. company building a factory to employ 1000 workers over a chinese owner that would hire twice as many.

an alleged sexual abuse victim of former house speaker dennis hastert could testify next month at his sentencing in a hush money case. he pleaded guilty in october 2 violating bank laws when he tried to pay $3.5 million to a person to stay quiet about his past misconduct which allegedly a wrestlingn he was coach at high school. a new hearing is scheduled for april 27. news 24 hours a day, powered by our 2400 journalists in more than 150 news peers around the world. vonnie: we have some vertex for theut from thehague former bosnian serb leader. he has been found lt of contributive to the killings of the massacre of 8000 muslim men and his boys.

they say he intended murder in sarajevo. mark: stocks are falling for the fourth consecutive day of the longest losing stretch in a month since february 9. energy companies are falling as the dollar rises. the stoxx 600 is on track for a second weekly drop. in currencies, sterling is falling for a fifth day against the dollar. that's the longest losing stretch since january 8. the euro is lower against the pound and money is moving into safer assets today as equities decline. the yield on the 10 year in the u k and germany is down by three basis points. it's the big decline are today. it's the biggest falsehoods 1998 for the u.k. clothing retailer. it lowered its forecast saying it may face the toughest year since the financial crisis in 2008. on matters on your

side of the pond. abigail doolittle has the latest live from the nasdaq. she is looking at 2 big movers. let's start with paypal. >> paypal is one of the worst performers in the nasdaq, down sharply 9% earlier and recovering a bit but still one of the worst drags on the nasdaq as one analyst reiterates his underweight rating citing a report that says apple pay is likely to go mobile by the end of this year. piper jefferies seems less concerned but they think it could create headline risk for paypal just ahead. tell us more about yahoo!. >> activist investor star board value say they are going to nominate nine new members to the yahoo! board effectively trying to replace the current board

entirely . it is growing frustrated and impatient with a possible turnaround at yahoo!. yahoo! has responded by saying they will review the nominations from star board. some investors could be gaining hope that a turnaround is in sight and shares are actually higher on the year. vonnie: thank you so much. let's get more insight for the changes at yahoo!. erik schatzker joins us. take itthey plan to over? erik: it is a effectively a palace coup and is worth pointing at the star board has done this before. a new4, it nominated slate of directors for darden restaurants which was in the process of selling red lobster and currently owns all of darden. the darden shares are up more than 50% after they succeeded. that's not the way it will play out at yahoo! because star board is not interested in a turnaround.

what they want yahoo! to do is to sell the core business which may, according to our intelligence colleagues fetch as much as $5 billion. it would leave shareholders with that money plus the stake in alibaba and yahoo! japan. they are not looking for a darden style turnaround. there is a potential happy ending in the short run which is that the yuan -- which is that the current board faces an existential crisis and gets its financial advisors to work overtime to get this asset sold and then we will see what happens. do we know who they are planning to put on a board? it could be someone from deutsche bank and someone who ran directv question mark erik: also the current leader of tribune and sirius xm.

there is a lot of managerial and governance experience among the directors as star board has proposed. bankormer head of deutsche and other people who have worked percent on a board. the list goes on. it's not as if these people don't have jobs. the question for shareholders to decide if the proxy fight goes forward is whether they like these directors better and whether they think they can do a better job than the current board. the current or does not have a great track record over the past 18 months. mark: is this confirmation that investors have completely lost faith with the chief executive? erik: it's confirmation that star board has lost faith in the chief executive. the fact that yahoo! shares have been rising over the last several week suggests or indicates that there is some interest among shareholders in a confrontation.

star board has been sounding out major yahoo! shareholders to find out if they would be supportive in the event of a proxy fight which is exactly where they are going. my understanding from people close to star board is that they have received positive indications. you can safely assume that star board would not take this step it had a felt significantly better than 50% chance of succeeding. star board has run out of patience. indications are indirectly that other yahoo! shareholders have run out of patience as well. they want to see something happen. do we have to see the board turnover entirely? no, star board would be quite happy of yahoo! just sold the core business and got rid of marissa mayer and got the value out of the company. mark: she unveiled her latest plan to overhaul the company in february. is any of that share increased

due to that? erik: it's possible but let's be clear, they cut $400 million after -- out of their expenses and shut down a number of businesses and got rid of 15% of the workforce and that will take time. it may be some confidence among but if i know shareholders as well as you do, they will want to see tangible results before they are willing to cast a vote in favor of management and in favor of the board. the track record under the current ceo marissa mayer who came with ambitious plans amid a number of acquisitions, again, judging from the stock rise, is not all that great. vonnie: thank you so much. we will keep an eye on this. up, software revolution izing political fundraising

is a hit on both sides of the aisle. ♪

mark: this is bloomberg markets. it's time for the bloomberg business flash, the biggest business stories in the news. been floated to boost economic growth. a new report says the benefits may not materialize until demand picks up and central banks move away from interest rates close to zero. tore is enough shares complete the purchase of winkur. it's the maker of cash machines with $5 million in sales.

the company expects the deal to close this summer. the descendents of john d have exxon mobil stock in plans to get rid of all fossil fuel investments. exxon fored out morally reprehensible conduct an exxon says it snows apprise they sold the stock since they are already funding a conspiracy against them. that's your latest bloomberg business flash. theie: turning to politics, comeback of stephen spinner -- you may recognize him as the man who oversaw the government controversial role in solyndra. he created a software that is revolutionizing the way politicians are raising money. thank you so much for joining us. tell us about this revolutionary software. in 2008 was aer

volunteer fundraiser for barack obama, somebody who had not in involved with holick -- with politics and was not a risk i managed over that campaign to become one of barack obama's biggest fundraisers and he did it by drawing on his own social network. he is a small entrepreneur in silicon valley. programs like linkedin and facebook were just been taking off. he figured out that if you could leverage your own social network, you could raise a lot of money in politics. what has happened as he has taken that approach and he has written it into code. will allowam rebv up anybody to do what he did for the obama campaign which is take their own contacts and upload them and tell them which candidate or cause you're looking to raise money for and the program will go out and go through thousands of websites and return your own contacts

listed by their propensity and likelihood to give your -- give to your cause or candidate. ofnie: what's the likelihood the political parties taking this on and using it? >> the likelihood is high because they already have. as already licensed their software to congressmen and senators in both parties and to most of the major party committees. is that this software could potentially provide a big leg up in the financial arms race. races becomecal more expensive, candidates and parties are terrified of being left behind. this is a hot new thing in political fundraising. you have not just candidates but you have the big republican and democratic tech firms along with silicon valley investors piling into this company in hopes that it cannot only change political fundraising but also the way that universities and nonprofits raise money, too. mark: if it changes political fundraising, it could break the

grip of wealthy donors on both parties. is that what's coming? >> i would not describe it as breaking the grip. maybe balancing it out between large and small donors is probably the best shot. rich people are not going to stop funding politics. what we saw in the obama campaign in 2008 and what we see in the bernie sanders campaign this time around is that if you have this huge influx of small donors that collectively produce tens of millions of dollars per month as they have a bernie sanders, it has a democratizing effect. the few large, rich donors don't have as much power over the process as they would in an ordinary raise. that is the hope for a lot of rev up investors and clients. they will make money and bring new people into the process especially the kind of small dollars, grassroots donors that

candidacies like bernie sanders and obama have relied on. this on the economics of software, what is the cost to license it? what is it potentially worth in this industry? >> it's a big question. as far as licensing, it starts at $13,500 per year. that gives you a set of licenses the staff or volunteers or the candidate can take your contacts and upload them and start raising money. the question of the impact is interesting because if you look at the annual amount of money raised by politicians, universities, and nonprofits, it amounts to $250 billion per year. if the software can make a modest impact, we talking potentially billions of dollars. mark: great story and i recommend all of our viewers and subscribers read this.

it's a wonderful story, fascinating. you can follow that on business week. motors had, general premium brand cadillac has been working to reinvent itself as a luxury brand. will that pay off with its latest offering? ♪

vonnie: the general motors premium band cadillac is trying to reinvent itself as a luxury brand. all eyes are on the brand midsize luxury crossover, the xp -5 which will come out in april. buildingoutside the where matt miller is standing by with the cadillac president and a new xp-5. you are having a good time. matt: thank you very much.

i appreciate your time today. about thet by talking crossover. i want to get your take on this market because it has exploded. it has to be difficult to compete. what is it like competing in it and do you cannibalize your own sales of sedans because everyone is moving higher in to the crossovers? >> the crossover market is where all the action is today. the cost for the luxury crossovers has expanded 25% last another 24% in the first two months of this year. this is global, not just u.s. there is a contraction in some of the luxury car market.

the market segments have contracted by 15% and 10%. launching a red-hot product into a red-hot market segment makes its optimistic for the future. matt: i have been hearing at the auto show this week that this has gotten tighter for everybody. is it more difficult for cadillac as well? are you still increasing your share of the luxury market? >> cadillac is doing really well at the moment. i am pleased with the performance. last year, we grew 7.5% on a global basis and we face different opportunities in different geographies. in china, it's the fastest-growing luxury brand. in the u.s. where we are already established and have a large customer base, the focus last year was in terms of elevating the brand in terms of stature in the kind of clientele we are attracting. i would say there it is mission accomplished. it may surprise your viewers but in terms of average transaction

cadillac year to date is the number one brand in the mainstream luxury market. we are a couple of hundred dollars ahead of mercedes and a couple of thousand ahead of bmw and audi. it means there is a discerning customer base drawn to the modern generation of cadillacs that are driving this market. matt: you face the challenge of your luxury market competitors. the average selling price for cadillacs is going up. foraverage selling price mercedes and bmw are going down. what kind of challenge does that us, it's a for long-term strategic play for the brand. we want to work hard to capture the elevated position for the brand again. that's why we are launching high-tech cars. these are low-volume cars that

are bristling with technology in sophistication and come with a high price point and attract a certain giant -- clientele. once you got the brand owned or entrenched, you start marketing to the lower segments. this is the right place for us at the right time. matt: many credit you with the success that audi enjoys today. a young kid at a bank who just got enough money to buy his first car would normally look at an a-4 or bmw. how do you sell a cadillac to that kid? millennials who are entering the luxury car segment, for them, their grandfather's car is a mercedes or bmw. cadillac represents a fresh compelling alternative. ash cars like the ats-v performance cars, they capture the imagination of this audience.

it's gaining traction fast which is why i am pretty optimistic about the future. matt: along with the naming scheme which i personally am a big fan of, you got criticism for your move to new york from detroit at the beginning. it seems the tide has turned as part -- as far as public perception. how is that playing out? detroit will always be our home. we like the rising star from detroit has left the home to venture into the big world. setting up global headquarters for cadillac in new york was also about attracting a diverse range of talent. we have automotive experts and we brought our new members and got a new perspective from the segment from transportation and fashion and they bring new perspectives. they help us carry the right message for our new target audience. most importantly, new york is an

iconic global city like few others in the world. immersing ourselves in it, we expose ourselves to the mindsets and attitudes and we want to be right there crossing the future for this brandon luxury cars in general. matt: thank you very much, a $12 billion investment for cadillac in gm. vonnie: thank you so much. you can read more about luxury and the finest things in life, go to ni on the bloomberg. more luxury suvs later on with matt miller. ♪

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oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals,

micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well. the flower power cruise, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. vonnie: it is a 11 a.m. in new , and 3:00m. in london a.m. in hong kong. i'm vonnie quinn. mark: you are watching bloomberg

markets on bloomberg television. we are going to take you live from london to new york, to berlin in the next hour. here is what we are watching for you today. u.s. stocks remaining in the red, falling for a third straight day. the s&p on track to hold a streak of five weekly gains. oilpean stocks lower and slipping for a third day as stockpiles continue to bolt. vonnie: and we look at the idea of helicopter money -- mario draghi calls it an interesting concept. how does it work? honda is introducing its latest models at the new york auto show. we will talk with honda's executive vice president about the latest in auto technology.

the -- 90minutes into minutes into the trading day in new york. julie hyman has the latest. we are seeing a pullback, but up off the lows as the averages see trading volume below the average we've seen the last 20 days and muddling along this week. i wanted to check on some of the movers and let's start at the increasing stocks we have been watching. kb home is one of them. estimates and the backlog value rose by 29%. we see some other stocks increase, including signet and pdh. and an interesting development in the trial or hearing involving the federal trade commission, staples, and office

depot. the fcc has been asking for a delay so that it has more time to consider whether it violates antitrust laws. they have criticized the actions of this commission. someonearently talk to from amazon and attempted to elicit false information. analysts say it is looking more likely that the deal will go through. both of these stocks are rising as a result. lines have been falling over the past couple of days and bouncing back today, help in part after one analyst said carnival's earnings should top estimates and management commentary should be positive. a combination of a bounce back and getting a further nudge from that call. mark: too much good news. it can't all be good. it's not.

overall averages falling and in terms of declines, williams company is one of them. it is a long going situation where energy transfer equity's is attempting to buy williams and looks been trying less attractive. the estimate for the earnings boost it would get from this acquisition is $170 million. the initial estimate was $2 billion. seagate, we could not find exactly what is going on with the stock. paypal holdings down after it was reported apple pay will be made available for mobile, and browser payments. analysts say that's not going to be positive. the airlines seeing a pullback in today's session. we are seeing broad weakness across the airlines. mark: a fourth day of declines for european stocks.

only two groups are rising today -- retail, autos, insurance and banks are the biggest gliders in the longest losing stretch since february 9. volatility surging. expected swings in pound-dollar exchange rate which encapsulates the referendum on june 23. we've risen to the highest level in over six years. and all stock deal will create italy's third biggest lender. a great charge showing how far these shares have come since the height of the financial crisis in 2007. shares are down 95%.

troubled times in the italian banking industry. this is the uk's close and shares are being hammered. this is a one-year chart. the biggest the biggest decline since 1998. it may face the toughest year since the financial crisis of 2008. they were at at record high. how things change -- 17% lower. let's check in now on the bloomberg first word news. the miller has more from news desk. matt: a united nations tribunal has found formal bosnian serb leader rodong caret h guilty of guilty of war crimes. he agreed to the massacre of 8000 muslim men and boys, the largest mass murder in europe

since world war ii. it also said he was responsible for the deadly siege of sarajevo and orchestrating serb atrocities. he was given 40 years in prison. has accused iranian-backed hackers of carrying out a one and a half year cyber war against wall street. prosecutors say the group targeted a new york stock exchange, nasdaq, bankamerica one among others according to an indictment. the cyber attacks prevented hundreds of thousands of customers from accessing their accounts. there's signs the same islamic state network that carried out the attacks in brussels and paris, many of those blamed in .he attacks lived in brussels interior ministers from the european union are meeting today to coordinate a response to the growing wave of terrorism. the attacks prompted calls for

better intelligence for the nation. dayal news 24 hours a powered by our twice for hundred journalists in more than 150 news bureaus around the world. volkswagen has failed to reach an agreement for cheating on the diesel emissions, so no agreement. vw and he rested make engineeringprogress technicalities came in the way of a full agreement. mark: central banks scrambling to get the world out of the economies remain strong despite bond buying. they may have to consider disturbing money directly to the people. it's an idea known as helicopter

money. mario draghi calls it a very interesting concept. >> if you wanted to send out that is something the congress can do but not the federal reserve. you don't want the federal reserve to be involved in fiscal policy and get beyond its remit. so this is actually not feasible. mark: let's dig into this fresh economicsh the chief correspondent for bloomberg news. are we heading to a point where toajor modern economy implementing helicopter money? momentperhaps not at the , but it is interesting that all the things ruled out previously they have gone and done. a decade ago, the idea of zero rates are negative rates or quantitative easing across the spectrum would have drawn laughs

from central bankers. given that track record, people are starting to say maybe helicopter money can be done. mark: there are legal arguments as well. guest: in the euro area, they don't have a finance ministry and there are a lot of legal barriers to just jumping in and doing it. vonnie: this first appeared -- milton friedman brought it up and ben bernanke became known for its. guest: absolutely. friedman produces an essay, which is pretty famous about dropping bills out of helicopters to stimulate economies back into action. there is a track record of it being an academic debate. it is different from

quantitative easing and not all countries have done this. this is a form of stimulus that bypasses banks. ways tohere are lots of interpret it. that's providing the government with the money to provide tax cuts or spending on infrastructure and the like. you bypass the banks and efforts to manufacture bond deals in the -- it'swill stimulate more of an injection of cash right to the consumers and into company pockets and hope that they would go out and spend it. mark: wouldn't it boost inflation far more than intended? looking back at germany at the start of last century, isn't that a potential unintended consequence? guest: that is the big risks -- the big risk.

they do it and inflation is off to the races. u.k. policymakers point out that they can put in constraints and perhaps tie it to that. this big it would be shut off again. the idea that we have negative yields and so much of the world now and this has been brought back because perhaps this is the only next way to stimulate economies. guest: someone like fred michigan would point out that governments have room themselves to start spending before they start manning the helicopters. those who have space such as china or germany would start to withoutme of the money having to align themselves with the central banks. they would have credibility issues if they were to start

helping the government spend. mark: what happens if the consumers don't spend the money dropped from helicopters? guest: that's a good point. the u.s. government did send tax checks to consumers and there's a good piece of data that shows yes, the money is spent, but the that they assume they will pay higher taxes later, so they save it now. the proponents suggest what you keep doing is keep pumping and raining the money down on the economy and some point, they will spend. mark: thank you for joining us today. coming up, easter is just around the corner. of will be the centerpiece many tables, but demand for bacon remains strong. we're covering pork prices in the chart of the hour. ♪

vonnie: live from london and new york, i'm vonnie quinn. mark.and i'm this is bloomberg markets. vonnie: now for a look at some of the biggest stories in the -- star board has nominated nine directors and contends yahoo! has been mismanaged under marissa mayer's who has been trying to turn around the company. a sovereign wealth fund are considering an investment in yum! brands chinese business. valuing it at about 10 billion u.s. dollars. yum owns kfc, pizza hut and taco bell. orders for durable goods fell in

february. bookings for goods and materials meant to last year's dropped 2.8%. sluggish economies overseas led international customers to cut back on orders. that is your bloomberg business flash. mark: let's talk easter. what is your best value for your holiday brunch? julie is breaking it down with the turn of the hour. julie: ham is a better price now than his bacon. mcdonald's all-day breakfast is one example. this is a chart matt miller use earlier, so i will give him credit for the title. we have seen him prices go down

relative to bacon as we have seen prices come down a bit, we got some interesting stats with easter spending they are predicting will be up 5.5% from last year and spending per shopper will rise by six dollars as well. it is number five in terms of holiday spending behind , mother's dayca and valentine's day. i don't know what you're easter plans are. we don't do ham, we do lamb. julie: that would be the better bet, taste wise. mark: you do ham at easter with buckets of easter eggs.

right, let's move on and chat about what is coming up next joining the parade of luxury suvs in new york, we will hear from the executive vice president of honda's u.s. unit after the break. ♪

mark: you are watching bloomberg markets. vonnie: honda just unveiled a slight of new models, including its sporty or luxury suv. matt miller is back with an interview. matt: we are going to talk with the executive vice president of honda about sales in the u.s. i want to talk about acura because the md ms has been making waves. will it help you match up against a competitor like lexus?

john: the great part is it is the best parting -- best selling luxury suv. it has stayed ahead and what we have launched is the 17 model which incorporates very aggressive styling. it is more than just cosmetic. it is standard on the vehicle, semi-autonomous driving features luxury,ar and much more upscale and a big effort for a midcycle refresh to keep ahead of the market. matt: people who don't know acura is the luxury brand of honda, when i was a kid, the nsx was one of the main supercars up on your wall. you are putting it out again to incredible fanfare. you have been dragging it out for years, not making many of

them, but how important is that? products, it is paramount we get this right and we have. the great part is you are right -- i had one as an employee was another car company. i had a poster on my wall because it roque the mold as far as supercars. supercar performance, looks and style in a car you could drive every day and that was unheard of at time. we have done the same thing with this. this will do with the old nsx did. as we move to hybrid technology and what we call instantaneous response, because of the power and the torque and the electric motors come we have a launch mode that you have to be in an f1 car to launch any faster. matt: no turbo lag issues?

john: no turbo lag. we just sold the very first one for charity for $1.2 million. demandks a little to the . matt: you just sold the very first one. to be clear to any car nuts that are watching, the first two years are sold out. you are only making 800 per year. john: we have orders for the s.rst two-year i would not deter anyone from going to visit their acura dealer. matt: let's talk about the meat of your market. suvs --ming crossovers, hrv is the biggest seller.

is the sedan market dead for you? john: trucks have overtaken cars again. : but hrv has not taken over core sales? john: we sold about 58,000 last year. it is difficult to find on a dealer lot. frankly, the sedan's for us are very strong. we had a midcycle refresh on the accord and that's in a segment .hat was down, they are up 17% we launched the new civic in the forward -- in the fourth quarter, sedan only, up 37%. matt: don't you have a civic hatchback? john: that is the news -- we just started selling a two door and a hatchback we are debuting at the show which will come online later this summer.

which we think will be incremental as well. civic has become the swiss army knife in terms of functionality, and that is what we think hatch will do going up against a consumer's decision to buy a small suv. what people are looking for is capability. matt: whenever i interview someone from an asian carmaker, i want to talk about the yen and the incredible strength it has seen. how much does it matter to you? you produce so much of your product here in the u.s. we sell here,hat we build here in north america. and thatt assembly surprises people. we design, develop, and build in ohio and the los angeles, california.

some small parts impact on things you buy but it is nonexistent for us. it serves as a natural hedge for a currency and other macro factors. matt: i appreciate your time and look forward to seeing the cars at the show. john: forward me those e-mails. matt: i will forward you might nsx orders. miller and the executive vp of american honda. coming up, the world is reeling from the terrorist attacks in brussels. how are different leaders around the world facing this common threat and what are the challenges at home? ♪

mark: live from london and new york, i'm mark orton. you are watching bloomberg

markets. let's check in on the first word news with matt miller at the news desk. 'stt: in moscow, russia foreign minister is hailing cooperation with the u.s. in syria. he's meeting with john kerry, trying to find ways to turn a shaky truce in syria into peace talks aimed at ending the five-year long war. a united nations tribunal has leaderormer bosnian serb wrote of on carriages guilty and prison.d to 40 years in he led forces during and as the war in the mid-90's and was found guilty of genocide for the massacre of more than 8000 muslim men and boys. in wayne azeri's, president obama visited a memorial to the dirty war.

and led to sra's -- the death or disappearance of is me a 30,000 people. the latest bloomberg politics national poll shows two thirds thirds -- favors two favors restrictions on foreign goods. they also described the north american free trade agreement as being bad for the u.s. and would rather have an american company hire a thousand workers than a chinese owned factory hiring 2000. those are the results of the poll. dayal news 24 hours a powered by our 24 hundred journalists in more than 150 news euros around the world. mark: the attacks in brussels -- a new report highlights five countries facing difficult futures -- the united states,

brazil, the u.k., germany and south africa. joining me to discuss how things might unfold over the next few in berlin anduest my guess from washington who contributed to this story. let's start with the person who is a little further away from where we are based -- the president of south africa. survive yet another scandal? guest: i guess that is the big question. i am looking at what we have been reporting from south africa and the deputy president saying is politically stable and our institutions are robust. 's credit rating may be downgraded and he has been around for a while and eight back to the days of apartheid

and the fight against apartheid. the influence peddling allegations and has said i'm just going to plow on through. mark: what is the best case scenario and the worst case? the worst cases he loses his job . what is the best case? he is in control of the african national congress as we speak. he can basically power on through, which is clearly what he is intending to do, backed by the overwhelming role of the anc in politics. to a certain extent, it's a game of two of these

leaders are not like the others. the other three on the list, they're problems are outside their control, are they? guest: that's right. when you look at president has been involved in a scandal at the state-owned oil company. she has taken some actions that have led to protests all over brazil. congress there will vote whether it will be very difficult for her to overcome. it doesn't mean angela merkel and barack obama are immune from trouble. they have challenges and difficulties. barack obama is not going to be president again, but the others would have their political careers continue. guest: even president obama is

hoping the last eight months of administration will solidify some of the gains he has made. he's being bedeviled by things like the war in syria, which has led to terrorism in different parts of europe and here in the united states and, when we see the other leaders, they are dealing with the outflow of migrants from syria into europe and they are facing those challenges. it's going to be difficult for them to overcome. this -- is this the biggest threat to angela merkel since she became chancellor? absolutely. there's no doubt about that. the referendum in staying in the inopean union coming up

september of next year. angela merkel will face another election. sort out this domestic crisis over the refugee influx. certainly well in advance of that. herink it is fair to say poll ratings have stabilized, she will be the first admit there's work to do to make these solutions stick. mark: the interesting aspect to david cameron is he instigated this effort. it's taking place on june 23 and this could go very wrong for cameron, couldn't it? yes, and certainly in

berlin and the political establishment there, it is seen that way. he's succumbing to skepticism in britain and this call for the referendum where he is lobbying for britain to stay in that eu. it is causing uncertainty as we see with the pound. also political uncertainty. merkel and germany being the biggest economy in europe are the biggest part of that because it's all part of this general sense that europe is fraying a bit at its edges. and also at its core. if i could zoom in once more on barack obama and particularly over the last he hasof days, it seems been seen in some countries

where we have had strained relations in the past, including argentina. how is it playing in washington dc? guest: the president was seen at a baseball game with raul castro and seen during the tango in argentina. he seems to be enjoying his last months in president -- as president, but there are things going on all over the globe that are a major challenge for him as he looks at who will be his successor and someone like donald trump potentially taking over and in doing much of his legacy. vonnie: thank you so much. check out the story -- is a great story on the five beleaguered leaders in the world at the moment. coming up, the chinese premier says 2016 has been a good year for china. about that next. ♪

mark: you are watching bloomberg. i'm mark barton. vonnie: and i'm vonnie quinn. china's pamir says his country's off to a good start but warns there are challenges ahead and his country is ready to act to keep the economy growing. yahoo! ceo marissa mayer is under fire -- activist investor star board is seeking control of the company and nominated nine candidates to run the board. you be soft is threatening a brain drain to prevent a takeover by vivendi.

mark: let's begin in china where the government is showing increased openness about the nations economic challenges. easyransformation won't be in the near-term but says it is showing signs of stabilizing and the government has the tools to achieve its growth forecast. but he vowed that devaluing the currency will not be one of them. renminbi will stay at a reasonable and balanced level. china is a responsible country and developmental fundamentals value it will not to continuously. we will push forward the liberalization of the exchange rate in active, gradual, and controllable manners and never stimulate with devaluation. mark: yahoo! chief executive marissa mayer facing another difficult battle as star board values launches an offensive to remove the entire board at yahoo!

it has nominated nine new directors, including jeffrey smith. of management has failed to live up to their promises, they say. the sec accused novartis of paying bribes in china to increase sales. the company says the issue happened before novartis instituted its new compliance measures. has -- ubisoft has told vivendi to back off or talented game designers will leave. they've come out with buster games like "the division" and "assassins creed." in italy, a takeover will create the third biggest bank.

as part of the plan, they would raise more than a billion dollars in capital before the deal goes through. there is speculation this could lead to a wave of consolidation among italian banks. time now for our bloomberg quick take where we provide background on items of interest. oferic drug discount for 85% u.s. prescriptions and almost half of from cynical ingredients come from india or china. this trend comes with challenges similar to those of the rise of imported food. so here is the situation -- last year, the fda ramped up its attention to china after focusing on india the last couple of years. inspectors had one company founded deleted records that might show a drug was impure and

disappearing. the fda banned imports from a company that failed quality tests by repeating them until they got acceptable results. the agency plans to expand operations in both countries. in the 1990's, generic drug creation proliferated in india and china. regulation did not keep up and regulators adopted a different approach, the european union mandate batch testing while the fda focus on inspections and does not do spot tests. concerned with generics are not to india and china. of the drug was pulled after regular said it was not the same as the brand-name medicine. critics of the fda think more needs to be done like better

transparency. something the companies have betterhould regulations. india top drug regulator set of you hold u.s. standards to the indian market, most of them would have to shut down. this is your quick take and global business report. for more, visit bloomberg.com. taking a look at how u.s. stocks are faring now. the last trading session of the week, the dow down by .4%. declines for the s&p and nasdaq. with go to abigail doolittle live from the nasdaq in midtown manhattan. abigail: the nasdaq has pared its losses from earlier but the

index is still trading down. american airlines is down on the news the company plans to raise wages by 6% for flight attendants. if it goes through, it will take lace on april 1. constructive, so cutting the price target. one analyst thinks investors are likely to take this piece of news negatively. is there a knock on effect two other stocks? abigail: jetblue's down as well down more than 1%. it could be trading down in sympathy. jetblue seems to be one of the most likely buyers of virgin american, given the similarly -- similarity of the fleet. thank you very much.

secrethead, citigroup's list of top clients. we will tell you about wall street's top 100 of 1%. ♪

vonnie: live from new york mark: and london, i'm vonnie quinn. i'm mark barton. you are watching bloomberg markets on bloomberg television. time for a look at some of the biggest business stories in the news right now. books like and has not finished a plan to fix nearly 600,000 diesel cars whose pollution tests were rigged. officials told a u.s. district judge that engineering technicalities got in the way of meeting the deadline. wagon admitted to cheating on omissions tests. the judge set another deadline for april 23. the u k, retail sales fell

after a post-christmas room. sales dropped .4%. part of that blamed on poor weather in january. retail sales had written the most -- has written the most in two years. -- in december, the boe said borrowers are subject to less stringent afford ability tests than owner occupied. that could leave them more vulnerable to financial shocks. that is your latest business flash. vonnie: we all know wall street banks are all about making money. we are looking at one approach to bringing in top dollars -- the focused five is a list of top plans managing $120 billion and generate the most fees and the best perks. we have more now on wall street

's 100th of 1%. i guess it is not completely out of this world that citigroup would have a list or goldman sachs would have a list or morgan stanley would have a list, but is shocking to know there is one written down somewhere. guest: i think for investors who are not on the list to know, these years and is not getting call backs, there's a reason for it. it makes business sense to know who your top clients are. you are focused on the .01%. who are the list of clients? differentis five companies -- millennium, said it all, surveyor -- all of these really large equity shops who trade a lot. they generate a lot of fees.

mark: what are the perks of being on this focus five? guest: you are getting your calls back and getting trade ideas. we also have a little more information, a little something more. you will also get some models. not every investor -- investment banker will send you a model. they are not going to give me that kind of time in front of these top analysts. is this just the big banks or some of the smaller banks following suit? we have reported smaller groups like steeple have had a list in the past. 21 clients they were hoping to do more business with. you see it across many wall

street tanks and some of the smaller ones also. what is the impact on the markets? guest: that is hard to say. some people on the list argue that since i'm not there, i'm not able to get these ideas first. -- no one is sure what the impact is but what you touched on earlier, people feel upset they are not able to get that kind of service. definitely an implied benefit to these five. and they are already at the top, so why should they get this kind of stuff? vonnie: is it also personalities or cachet? guest: it is a mix. it's done for business purposes. at citigroup, we've seen these ,re the top trading revenues they need to stay at the top. we have heard from other banks that their list are geared toward we would like to do more

business with these hedge funds. we see they will have more business for us. this seems to be an obvious solution to the big players. that is where this idea is generating from. the banks are having a harder time making money on loans. interest rates are so low, so they are going to different places to figure out where can i make money? you can't blame the banks. this is a business strategy they are looking at. interesting to evaluate whether down the line it is working because you are seeing it in different kinds of asset classes like credit. we will have to see if it works, but as they have fewer and fewer resources, they need to be more efficient about how they are putting on their employees on the phone with someone who is going to generate money.

have a look at what is happening to european equities 35 minutes away from the end of the trade. a shortened trading week -- it is easter on sunday, hence no trading. stocks falling for the fourth equitiesve day, all are declining today. have a look at the currency and bond markets with sterling falling against the dollar, the longest losing stretch since january 2008. it is creeping up now. the euro is down and the yield on the u.k. tenure is unchanged. a big italian merger today -- i will tell you the details. ♪

oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals,

micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well. the flower power cruise, february 27th, 2017. let your freak flag fly. n't miss the grooviest trip at sea. andlet: it is at noon it new york and midnight in hong kong. alix: i'm alix steel. mark: live from london, i'm mark

barton. this is the european close. we are going to take you from new york to london in the next hour. here is what we are watching for you today. european shares have fallen every day this weekend are poised to do it again as slumping commodities are weighing on the market. we will follow the action leading up to the close. and how do you say merger in italian? to banks come together to form the world's largest lender. scarlet: should it stay or should it go? for the european union -- it may depend on the undecided. we are midway through the