from bloomberg's world headquarters in new york, good david gura.'m u.s. stocks falling for a third straight day, the dow negative on the year right now joining the s&p and the nasdaq stocks now on pace for a five-week winning streak. then extremely disappointed, that is how wall street activist starboard calls yahoo! as it replaces the entire board, nine people, three years of investors lost patience with the c.e.o. watch out for any u.s. recession signals in friday's g.n.p. report, the government says it's not expected to be pretty in profits. first julie hyman hased latest, julie. julie: down today, david,

financials are pushing us down and we're seeing some pressure in the commodities, all three major averages off, not huge decline but indeed to push us lower for the week. one of the things we have seen in this week is low volume. that continues today. we could see once again one of the lowest trade voice mail days of the year. here is volume by the various groups in the s&p 500, utilities seeing the biggest drop versus the 20-day average. as you can see, all of the bars are negative once again today. that means as the declines generally that we have seen in price means that we're once again seeing the s&p lower. the dow squeaking out a gain, but at times during the day, it was negative. the recovery in the s&p 500 was short-lived, one of the themes we have been talking about in today's session is whether stocks are stuck in neutral here. the white line is the s&p 500 going back to 2015. we did have a lot of volatility

in the fall, late summer going to the fall of last year and then of course again this year. overall, if you look at the s&p from the beginning of the 2015 until now, stocks have gone a whole lot of nowhere. i have looked at the citigroup economic surprise index for the u.s., which looks at the times that economic data misses estimates. here is the zero line. so all of the time that the green line is below that, it means economic data has been missing estimates. that obviously has been one of the things that has been weighing on u.s. stocks. stocks will be closed tomorrow when g.d.p. comes out, it will be interesting to see what happens on monday. david: some streaks are in danger today. julie: as you talked with stocks and asset classes, the dollar index will have the first up week in four, we have seen some reversal there. some officials have talked about the possibility of seeing interest rate increases perhaps sooner than the market anticipates. the s&p 500 setting up for its first down week in six. as you can see here, a pullback

of about a half percent. and commodities reversing direction, the first down week in five as we look at that 2.5% decline. put another away, i made a chart of this and here was the dollar and this goes back to mid-february when we saw really stocks and commodities bottom and then head higher. the dollar had been heading lower. that was the trend until this week. so we want to get to see the stocks and commodities turn lower, the dollar turn higher, a reversal of the trend. this shows the longer time period of going in one direction and this week put the brakes on. david: julie, thank you so much, julie hyman at the markets desk. mark crumpton. mark: vice president biden is trying to move past remarks he made in 1992 in a speech at georgetown university, the vice president addressed marks that

he made while as a member of the u.s. senate when he seemed to endorse a supreme court nomination at the height of an election season. vice president biden: republican senators announce that whomever the nominee might be, they intended to advocate their responsibility completely, that what they say today, which they said then, what republican starters say they will do in my view can lead to a genuine constitutional crisis. borne out of the dysfunction of washington. mark: republicans say they're following the so-called biden h nomination of judge merit garland, mr. biden said, there is no biden rule, it didn't exist. we're more than halfway through the presidential nominating season which saw hillary clinton enter as the democratic favorite and in a virtual tie with senator bernie sanders, a new bloomberg politics poll shows senator sanders with a

49-48% lead by a more than 2-1 margin, democrats say senator sanders will do more than mrs. clinton to help the middle class and rein in wall street. the g.o.p. isn't rallying behind plans to stop donald trump. le poll shows 63% of republicans back trump's view that the the person with the it. delegates should get haas territory pleaded guilty in october to violating bank laws when he allegedly tried to pay $3.5 million to a person to stay quiet about the past misconduct which is alleged to have occurred when hastert was a high school wrestling coach. the sentencing is scheduled for april 27. global news 24 hours a day

powered by our 2,400 journalists in 150 news bureaus around the world, i'm mark crumpton, david, back to you. david: on this, the last trading day before the easter holiday, global stocks have had a case of deja vu. the all country world index is charting an almost identical path that it did in the final months of 2015. the global benchmarks since november is the blue line. rob leery who managed $854 billion at t.i.a. told bloomberg tv earlier that that they are well set. >> we have a lot of uncertainty in the markets. the u.s. market is strong. there will be strong g.d.p. numbers overall for the us economy. even though there may be a pause here after what has been a really nice lift in the first quarter, after mid-february or so, we think the u.s. markets still have a good amount of room to go in the equity markets. david: joining is bell with

$1.7 million assets under management. not a whole lot seemingly happening. there was for a time this morning when i looked at the bloomberg, the major indexes are regained all of the losses for the year. two of the indexes are negative again. what is going on as you see them? ben: let me couch my remarks in what is going on in the u.s. economy at the moment. it's in the midst of a plat performance cycle, that is poised to continue. there is good news and bad news. on the positive side of the ledger, consumers still very strong. the labor markets has been strong. manufacturing is showing signs of a bottom after a persistent leg of weakness, been on the negative side of the ledger, the external sector is struggling with weak local growth in the dollar and business investment has been uninspiring. that sets up a situation where real growth is scooting along at 2% as it has.

nominal g.d.p. growth as a result of inflation continues a game of inches, it's moving slowly toward 2%. nominal growth in theu.s., that's going to put a lot of pressure on the top lines of u.s. companies. so where are the stock ends going to come from? if they're coming from margins, you put pressure on margins that are already pretty wide. that sets up a situation where equity performance is good, right, reflecting that underlying fundamental, but it's not one that shoots the lights out. i think the stability in the u.s. outlook if anything is a comfort relative to the situation we saw in august of last year and in january of this year where the u.s. experienced two major financial shocks originating from abroad and yet it didn't throw the u.s. economy off of that slow and steady pace. so when i look at u.s. equities, i see a background of

slow and steady growth which will cap upside and downside as well from the shocks. david: talking about uncertainty, the fed seemingly becoming more dovish, is that the greatest uncertainty as you see it? what is weighing on you the most? ben: the fed is part of it. i don't see it being as a persistent source of uncertainty. last week's meeting, they trimmed a lot of the fat in moving toward market expectations of a very gradual path of rate increases. those remaining two hikes in the summary of economic projections are real. so i think starting in june and starting in the months leading up to june i think you'll see the communication tilting much more towards setting up markets for that ventality. that uncertainty at least as it applies to the fed might be a little bit less than it was when the difference between markets and the fed was much larger prior to march, the

march meeting. david: talking with the former fed governor yesterday, we were talking about the dot plot, what the fed is communicating or trying to communicate. he said what the fed isn't communicate to what it has as its disposal. are we getting enough valuable communication from the fed? ben: i think we're getting a lot of communication. the question is how effective is that communication and to be fair, right, they're walking a very narrow path. if they communicate on the one hand, right, if they tell you, if they reduce the, the outlook for the dots or the other forward guidance, markets may take that as a negative signal. you have a vicious cycle in financial conditions. if they go the other way, you could also run the risk of being perceived as too hawkish and financial conditions tighten as a result. that hair trying to do is thread a very narrow -- walk a very narrow pathway trying to

avoid those two outcomes. so i think it's a difficult job. they're making a good faith effort. david: you had a neutral directional view when it comes to stocks versus bond deterioration as well. defend that if you would. why is that the case? ben: these aren't characterized as heroic views in total absence of big directional views. that is an acknowledgement of the fact that the fundamentals are fairly decent in the u.s. and what that does is set up a situation where risk assets don't do poorly, but they don't do great. so where we see the most value as far as our asset allocation views is in relative view rather than being directional views. we believehat developed markets are poised to do better than emerging markets emphasizing the macrostress that they are facing even though valuations have come off a little bit there. we view relative value in credit over equity which is a high conviction view that if

you truly believe that the u.s. is not heading into recession, which i think has been validated, right, by the recovery over the last month or so, then you're comfortable with the high carry asset that doesn't fall out of bed because that worst case scenario is unlikely. we do believe it's unlikely this year. so i guess we say cross asets and geography, some more scope to make relative value and bets to equities. that will apply to fixed income. you want to follow the relative high carry yields, so i think you look at the u.s. versus japan and europe in that context. david: thank you so much. global strategist at j.p. morgan asset management. coming up in the next 20 minutes of bloomberg markets, the latest central bank policy from europe to u.s. to japan. $1 trillion in capital to employ, embattled oil and gas companies be the next sector where the cash is unleashed?

david: welcome back to "bloomberg markets." i'm david gura. let's take a quick look where u.s. markets are trading right now. the s&p 500 down almost .4%, eight points at 8,028 and the nasdaq down. let's look at europe where they losed, stock 600 down, 1 1/2%, and a reminder european markets will be closed on monday, opening up again on tuesday. u.s. markets closed tomorrow. staying global, let's focus on outlook for growth this year. joining me from paris is the pnp pair mist for

bass. here we are nearing the end of the first quarter, you could characterize it as a lackluster first quarter. you said somber in your most recent note. what is your outlook for global growth? >> the picture on the u.s. is one where admittedly the manufacturing picked up a little bit in the 1:00, but nevertheless, we still expect a gradual growth to slow over the coming quarters. that's really on the back off of earnings for corporate going nowhere and having an impact on corporate investments and the late effect of the strengthening effect of the exchange rate. in europe, on the other hand, the cyclical momentum continues to be quite fine, different factor rates, oil, competitive euro exchange rate. that means we will see an

occasional environment. david: the watch word is divergence, you have negative rates in japan, europe is easing, the u.s. is slowing wn, the loosening of its monetary policy. how does it complicate things when you look at the central banks together, what the u.s. decide to do and when the bank of japan goes to negative rates, how that complicates things, what kind of complication that is. william: the biggest concern came when the b.o.j. surprisingly went for negative interest rates. this was completely contrary to the impression that analysts including ourselves had. however, what is important is with the decision, the -- they channels ing on the of nonconventional policy. it really won't have an impact on the prices of government bonds and bringing yields down and won't have an impact on credit growth.

here has been a de-emphasizing of the exchange rate which means if the fed is not hiking rates, it is now causing less of a concern for the e.c.b. than would have been the case a couple of months ago. the monetary environment, the monetary environment has become less conflictual than we were fearing would be the case a couple weeks ago. david: jeffrey publishing an article saying emerging markets may face tough choices in his word as the fed continues to tighten. we look at the o of the exchange rate which means if theutlook in the u.s. and europe. when you look at brazil, say, what are the tough choices they're going to be facing to steal words from him? william: the biggest we have in emerging, we have seen a very significant weakening of the currencies and this has had an impact on the inflation and

also an impact on the balance sheets of corporate that have built up a lot of foreign currency exposure. what you would like to have is -- the dilemma they are faced, they have to choose between what are they going to do, fighting inflation causing more unemployment or try to support economic growth. in addition to that, they also have a balance sheet problem corporates. emerging market situation continues to be the big concern and factor in the world economy because we have seen the hit last year on the currency front. we know there is a lot of foreign currency data out there and we're waiting to see whether this is going to materialize. in that respect, the orientation of the fed policy will have big spillover effects if that would indeed to continue to tighten policy. the weak chain in the global economy is emerging markets. david: i want to ask you lastly here in the minute we have remaining about the terrorist attacks we saw in brussels. of course, there were terrorist

attacks in paris a couple months ago. what event like that, if effect if any it has on the european economy? what happened after paris and what occurred after what happened in brussels earlier this week? william: the short-term effect is one of uncertainty. secondly, people adapt the way they commute to work, the way they go to restaurants and travel more by car rather than taking the train. in the longer run, what it also will imply is it means there is more, let's say, a waste of time as i can put it like that but that's what you get for field goal for secure, the cue for getting on a train. this is the price you pay for being a bit more secure. for the economists, there is some inefficiency, but, of course, that is the price we need to pay following the

tragic events. david: thank you for your time today, really appreciate it, the chief economist for b.n.p. pair bass from paris. we'll give you the latest and more bond markets coming up here after the break.

david: welcome back to bond markets. i'm david gura. a look at the biggest business stories in the news right now. the blackstone mutual fund lost half of its assets. clients withdrew $585.5 million from the multimanager fund in the first three weeks of the month. the fund had $1.2 billion at the end of february. the federal reserve bank of new york is asking security dealers to establish backup locations

that could be used in the event of a disaster. new york attacks 12 primary 1, the dealers will be allowed a transition periods to put new systems in place. and jeff is retiring after more than three decades on wall street. for lped build and rebuild market back securities. according to a memo from citigroup executives. that's your bloomberg business flash update. let's head half of its over to desk where julie hyman has a check on company ubers looking at retail. julie: that's where we'll begin. the analysts are saying we're going to see the next major round of upside catalysts coming for the company including the fact that new products in fabrication it's been putting in its stores have

been taking old. the shares are surging by nearly 7%. the stock prize was raised, the target at $71 and remaining a favorite growth pick. the company's earnings beat estimates and the forecast and earnings line. the forecast for the full year below estimates, fourth quarter beat, not up by an enormous amount in today's session. we're watching the airlines today. this on a couple of different downside catalysts. american airlines interestingly enough was upgraded at raymond james. u. a l. was down greated. the price target was cut. the company came to a new agreement with its flight attendants. they think it's going to be negative in the short term and the raymond james down grade is weighing on u.a.l. the disk drivemakers, citigroup says you want to own western

digital. both are down. it looks like investors are not necessarily taking the advice today. according to the analysts at citigroup, western digital trades at a discount despite having a better market position, a higher margin profile and it's coming acquisition of sandisc. both stocks are down today. david: thank you, julie. still ahead on bloomberg markets, the oil industry may be seeing slumping prices, job cuts and low rig counts. we'll hear how private equity could come to the oil industry's rescue next. looking at oil, $39.40. more bloomberg markets coming up after the break. ♪ ♪

from bloomberg world headquarters in new york, this is "bloomberg markets."

mark crumpton is at the news desk. were signs that the islamic state networks carried out the attacks in brussels and paris. many of those blamed for the violence lived in brussels. leaders from the european union meeting right now. they released a statement saying they will step up investigations of terror networks and the statement continues they are quoting here, stand determined to fight against terrorism. former bosnian serb leader has been convicted of genocide and nine other charges and sentenced 40 years in prison. the yugoslav war crime tribunals found him guilty of orchestrating serb atrocities throughout bosnia's 1992 to 1995 war that left an estimated 200,000 people dead. president obama joined the at thenian president monuments to victims of state terrorism. pleased tobama: i am

join the president at this beautiful memorial of the of the argentinian military dictatorship and the suffering their families and your. mark: it was 40 years ago today that a coup in argentina started military rule. president obama says records determining involvement with argentina's military dictatorship will be declassified. pope francis is visiting a refugee center outside of rome today, washing and kissing the feet of orthodox hindu muslims and catholics. global 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 closing

in new york. choppy trading for gold today ahead of a long weekend. prices paired an earlier loss, sitting around 1221 per troy ounce. close at opening prices, settling just above $39 a barrel. the oil price rep, the worst in three decades, led producers worldwide to reduce drilling. when the energy sector will be the most active for dealmaking, at least according to blackstone's tony james. theory is speaking to erik schatzker last week. >> when oil prices go up, you will have a lot of companies that need capital because they control wells again and profitably. they don't have access to capital. they are probably still over leopard versus the value of the reserves and they don't have access as a result. they will need our capital even when prices go up. >> i think they will have a lot of activity.

>> you do? will it be your most active investment this year? >> yes. david: you say private equity is at potentially the most interesting time in its history. why is that? >> it's a confluence of a couple of different factors. private equity has been successful over the years. certainly high-performing funds have done well recently with new funds. they are in the double digits, billions of dollars. at the same time, if you saw the statistics from fourth quarter and up until this year, transaction volume has been down, off by 25% last year. january was the lowest transaction number since 1991. the confluence of all this challengingg with dealmaking scenario is looking for an opportunity to satisfy itself. >> what is the approach? >> you have to understand it's a

very broad sector. there's a lot of steps in what we call the energy supply chain. we decompose that for our customers, break it down into the logical steps. there are things happening around the wellhead that our activities. there's a lot of infrastructure. the first thing is to understand all the different steps in it. the second thing we do, who are the companies in each of these different steps in the energy sector, and where are they from a capital disposition standpoint? many of them do fundraising through bonds and other types of vehicles. they are having challenging times. >> watchlist implies some passive and see. you find out who these companies are. i imagine you will be in touch with those companies. >> fair point. we suggest the private equity firm start to build relationships with executives. we put private equity firms in touch with the super majors to

really understand when the market does come back, where it's going to come back, and where do the consumers of these services, where do they want to see consolidation in the industry? >> when anybody looks at this sector, the timing of it great where are we as you see it in terms of a timetable? challengingbeen a one. middle of the year we thought maybe we had hit bottom. it was clear by the end of the year that we had it. some of5 days ago that the major research houses were publishing $24 oil. it's a hard thing to productive. -- predict. we are starting to see some things that we believe will change this year. >> are we seeing some of these companies refinancing? >> yeah. it's also challenging, given where they are from a multiple standpoint trade people who want to finance are waiting for the right timing. this is the intersection of when is the right time and whose available to finance.

>> thank you so much for coming in. senior adviser at ssa and company. not everyone will be checked out tomorrow. beual growth is expected to little change from the 1% pace it was previously reported. the report could include an important signal on where the u.s. economy is going. i know you will be paying attention when the data comes out. what will you be looking for? ontypically the third print gdp does not get that much traction. this time around that coincides with the first look at corporate profits on an economy wide basis. that will be the real news in tomorrow morning's release. it's relevant because profit growth has been extremely weak over the last couple of quarters. the reason we should be concerned is as you show in the

chart here, when corporate profits go into negative territory, that's a warning signal of pending recession. it's not a guarantee of pending recession. this is going to be one of those exceptions. we are down about 5%. this is a warning signal to policymakers and everyone else that this is an economy that definitely is fragile. >> we are learning something about sentiment here? >> it tells us about business sentiment because core profits drive private sector decision making. if you are a company and your profits are in negative territory, you will because she is hiring, about investing. as corporate profits go, so goes the private sector. real risk that this weakness in business investment we have been seeing for so long will continue until we see this trend turnaround. it should turnaround as the

economy accelerates because profits are a function of economic activity. a slow going economy is typically a negative omen for corporate profits. we already know the fourth quarter was a slow quarter indeed, 1% gdp growth. things are improving in 2016, but it is improving at a sluggish pace. rebound, butd don't expect them to race out of the gate by any stretch. david: we got durable goods orders this morning. what is the significance there? >> orders and shipments of durable goods. this tells us the factory sector problems are just ongoing. we've seen some promising signals and some of the march production surveys. this data showed us that the factory effect not out of the woods yet. david: there was a note out from goldman, a message to the fed. saying it should not be too

concerned with the strength of the dollar. what is goldman trying to communicate to us? is they aretanding saying to the fed, don't worry about the strong dollar. their argument is from the perspective of inflation. strong dollar leads to weak import prices and that creates in theonary pressures economy. to that extent, i will agree with that guidance. i think it would be a huge mistake for the fed to ignore the strong dollar. certainly we are seeing inflation pressures improving. import price deflation not that big of a concern. the fed continues to lean towards rate increases. that strong dollar is going to return without doubt if we start to see more promising economic data. strong dollar really hurts u.s. workers. it hurts not only the export sector, but it also hurts

domestic industry as it competes against a flood of cheap imports. my message to the fed is, ignore the strong dollar at your peril. coming up on "bloomberg markets," a new poll has thealing information about election. ♪

david: in politics, a majority of republicans say they are not sold on efforts to deny donald trump the party must nomination at this summer's convention. for more on the latest results,

let's head down to washington. this has been what opponents of donald trump have been shouting out for some time here, either ted cruz could sweep in at the end or governor john kasich could sweep in at the end. people are an easy with that or opposed to it? >> the findings of that 2/3 of republican voters believe the leader and delegates if there is one should get the republican nomination. david: not the majority, necessarily. right. it's not quite what they are saying. it is a simple, intuitive notion that the person who comes in first place at the time of the convention should get the nomination. that goes against what many republican elites want to do, which is stop donald trump at all costs. david: the opposition to trade is pretty broad.

really an issue that has come to the forefront here. just looking at this spy chart, chinese factors on u.s. soil, american factory employment, chinese factory employment. overwhelmingly an american factory employing 1000 workers. is a striking finding and it shows the broad public antipathy towards trade that extends across both parties. this is shaping up to be an important issue in the 2016 election, unlike the last six or seven elections. here we have a candidate, donald trump, who looks increasingly likely to be the republican nominee, who israeli against againstals -- railing trade deals. this is a bit of an unknown elements. our findings show that it will have potential to something like 2/3 of the public, by a 3-1

margin, favored more restrictions on imports. these are pretty stunning numbers. david: you have a new piece up. you are looking ahead, assuming that trump is the nominee. former secretary of state hillary clinton -- what does that path look like? it would involve him winning some states in the midwest which have been going back and forth between republicans and democrats. sahil: it would be an unconventional path that would require him to firstly win florida, then three out of four plausible midwestern states between ohio, pennsylvania, wisconsin, and michigan. some of these states have trended democratic. the theory is trump does very well with white working-class voters. the numbers on trade show his message has strong potential to win over voters whose jobs and

families have essentially been hammered by globalization and trade. it's an unknown elements, and trump is counting on that message to turn out white voters like other republicans have not been able to. other swing states like colorado and nevada and new mexico are essentially out of reach for him. they have large hispanic populations. he's pretty much put himself out of contention there. lastly, you write about the clinton counteroffensive. sahil: the clinton campaign has clearly taken note of the fact that not only ronald trump, but their rival bernie sanders keeps hammering on the issue of trade. it's a vulnerability for hillary clinton because she was supported as secretary of state in 2012. afta went into effect when her husband was president. her counter argument is an attempt to have a more rational

view that we need to adjust the incentives in the tax code to make it harder for american companies to move jobs overseas and give them incentive to keep them here at home. it's very different from donald trump's method, which is i'm going to kick the table over. it's more of a pragmatic, sober minded initiative. david: thank you so much. that is bloomberg politics. don't miss "with all due eastern time.00 the s&p falling for a fourth straight day. leading thenancials decline. julie hyman has the latest in today's spider sector report. thee: we are looking at financial slider etf, falling by nearly 1%. there appears to be a lot of trepidation going into earning

season. many of the banks are set to report and a couple weeks. they usually kick off the earning season. there's a lot of trepidation surrounding it. take a look at the big movers within the banks today. sell.fargo rated a jpmorgan and citigroup also falling. macquarrie analysts saying in a note today that there is a perfect storm right now for u.s. bank earnings for the first quarter, including concerns about global growth, particularly in china, lower oil prices that have been waiting on the banks, negative interest rates and some area of the globe, and earnings will be unusually weak. wells fargo is one example, take a look at bloomberg here. tracksking at eeg, which the change in the earnings estimate over time. the white line is the stock price, which has fallen.

here is the earnings per share estimate from analysts. as you can see, it has fallen gradually. something else that definitely we have taken note of is the idea that banks have underperformed this year. it's the second largest group in the s&p 500 that accounts for 16% of that index. it is the s&p 500 in blue. here are some of the largest banks. the white line is wells fargo, pink is jpmorgan. and then you've got bank of america in green and citigroup in orange. their underperformance is a little bit more dramatic. they are already underperforming. it should be interesting to see what happens when those earning reports actually come out to see what kind of performance we get. the question is, can the s&p 500 outperform while banks continue to underperform? david: coming up on "bloomberg markets" -- more trouble ahead

for marissa mayer. ♪

david: welcome back to "bloomberg markets." yahoo! ceo marissa mayer facing another difficult rattle. -- battle. a letter to shareholders saying quote, we cannot envision a scenario where the shareholders of yahoo! would entrust the current management team and board with executing a stand-alone turnaround plan given the years of failed attempts under the current leadership. what happens next? for that we bring in "bloomberg west" anchor emily chang.

how much of a surprise is this here, the suggestion the entire board should be replaced? mily: my sources have been waiting for this. star board has not been shy about their disappointment with the way the management team at yahoo! has been running things. they have been in meetings. they have been trying to negotiate some sort of agreement. they have not been able to come to agreement. now starboard is setting the stage for war, asking for the entire board to be wiped out, saying this sort of change is desperately needed. yahoo! and the current board can't be trusted with the big decision about what to do with the company. yahoo! has said they will review and respond to this in due course. i will say when i spoke to marissa mayer a few weeks ago about her position and the board's position and how aligned all the parties involved are, this is what she had to say. on the mayer: overall

board, management and the board are very aligned. i will say yahoo! situation is complicated. i think that's obvious to everyone. as particularly with some of the tremendous assets we have, in both yahoo! japan as well as alibaba. that: a few weeks after interview, yahoo! added two new directors. our columnist at gadfly has this great line in her piece where she is saying yahoo! just poke the star board bear. they were not too happy about that. that means they have to get even -- they have to try even harder to get majority on the board. it doesn't seem like you who really wants to work with them. we are prepared. it looks like yahoo! is prepared. star board is clearing the way for a very difficult proxy battle to come. david: i'm wondering about the degree to which star board is punching above its weight. this is a company that does not own much of the company, just 1%

of the stock here. what is the plan going forward? evangelizeoing to with other investors to say, this is the plan you should get on board with? emily: both sides now have to canvass shareholders to try to win support. they all -- they own a small part of the company. it is a much bigger company than donnie restaurants, the other company that starboard recently was able to wipe the board clean of. withoeb did the same thing yahoo! just a few years ago that resulted in marissa mayer being ceo. david: i was talking with paul sweeney about yahoo!. he said this is a company that the internet has passed by. this is an internet company to let the internet pass it by. affectionre is huge in the valley for yahoo!.

there's an emotional attachment to this company. so many people in silicon valley have worked for this company. also has anr emotional attachment to this company, and she continues to believe she can turn this company around and she needs more time. star board doesn't believe it, and a lot of other people don't believe it either. david: be sure to tune in sunday for "studio 1.0." chang. more "bloomberg markets" coming up. ♪

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betty: it is 3 p.m. in new york 3:00 p.m. -- 3 a.m. in hong kong. welcome to bloomberg markets.

from bloomberg world headquarters in new york, good afternoon. here is what we are watching -- market dipping on this final trading day before easter. stocks are closed -- are poised to step their five-day winning streak. and has market momentum hit a pause? says the u.s. economy is stronger than it looks and investors should be buying the dips. >> earnings haven't been that strong but we think those will pick up. overall, we think there is phenomenal strengthen the economy and we do think that, and we think there's a lot of room for equity markets to grow. fortunend why wheel of is cashing in big-time on political ads, bringing in