caroline hyde. this is "bloomberg markets." ♪ betty: we are going to take you from new york to london to saudi arabia. we are 30 minutes into the trading session. stop the lower after this morning's job reports. the u.s. economy and it 215,000 jobs last month, more than expected. does that never make the case for the fed to lift rates in june? tesla make the play for the mass market coming in at $35,000. it has elon musk shaken up the future of the auto industry? saudi arabia reveals plans to create the largest wealth fund. the giant fund could eventually control more than $2 trillion.

enough to buy the world's largest public traded companies. let's head street to the markets desk with julie hyman. quandary with better economic numbers and lower margins. >> this is the quandary we used to be in, right? mention we are getting the final read on march consumer confidence mentioned by the university of michigan coming in and 91. -- coming in at 91. adding to the slew of economic data we are ready at this morning. we are getting the isn manufacturing report coming in at 51.8. 51.1 was estimated by economists. big one.report is the if you look at the major averages, we are indeed creating

up off the lows, investors trying to weigh the future for interest rates. i want to take a look at the sp y. he gives us a good snapshot of the reaction and stocks to the jobs report moments after the report. here we are at 8:30, we saw a pickup. it was lower in a couple of random trades. maybe a couple of bad traits. as bouncing up off the lows we had these into the session. i want to look at the interest-rate probability calculator. today we see the odds of a rate increase at the june meeting rising d percent. -- rising 28%. that as theg average increase of

probabilities across the board. a littleury markets, unusual trait. initially, we saw a bigger spike in his tenure yield. yield.ear it has come down quite a bit. the two-year having a more expected reaction. when it to get a check on the u.s. dollar. to get a check on the u.s. dollar. is level of the pound notable, but falling. betty: talk to us about oil and the decline. julie: saudi arabia says it won't freeze production unless iran freezes production. all of these comments are sending oil down by nearly 4%. oile will be digging into

and the reaction. what a day we have seen. in one day, we have erased all of our games of the previous month. all those games and mark cap -- all of those games in march have gone down. we are down 1.5%. we are seeing the worst performance in energy. fell.stocks manufacturing better than expected. european markets better than expected. oil prices sloping lower. not one is in the green. every single energy stock is on the downside at the moment. goinge oil companies down. clearly some breaking news from

that exclusive interview we had byh the deputy prince done john nicholson himself. we are rising five percentage points. venture?y form a joint go tire of five percentage points. you were talking about the british pound, julie. we are seeing the euro gather strength. the pound weekend. ed.the pound weaken growthand manufacturing -- inty: caroline, let's check with bloomberg hospers word news. vonnie: more than 50 global leaders are gathering in

washington turning their attention to islamic state. president obama will try to get other countries to sign onto an terroristseeping from getting weapons of mass destruction. the reopening of the brussels airport is being hampered by demand for more security. authorities are still hoping that passenger flights can resume on a limited basis. the brussels police union is demanding systematic checks of passengers at the entry of a temporary check it area. stock -- governor scott walker is not backing off on claims of backing the republican nominee, no matter who that might. >> when i was on the stage in cleveland, i did not raise my hand. i was not going to run as the third-party or support anybody else. i supported the nominee. i hope the nominee, after

tuesday's win, for ted cruz, is ted cruz. i have not changed. i am a man of my word. vonnie: walker has endorsed ted cruz in next week's wisconsin primaries. you can watch that interview with governor scott walker today on "with all due respect." global news 24 hours a day, powered by 2400 journalists, in more than 150 news bureaus across the world. i'm vonnie quinn. betty? betty: thank you. inloyers added 215,000 jobs march, more than forecast by economists. the unappointed rate -- the unemployment rate rose slightly. how will this benefit? them get to normalize interest rates to the extent

that they have an opportunity in terms of higher wage growth. jobs.ms of 200,000 plus june looks like a likely month to do one of those two hikes. is thejoining us cofounder of a political movement called "no label." dan, so, jobs growth is robust. but the markets are down. >> it does not surprise me because living in a binary world where everyone once answers is similar to our digital world when in reality is we live in a world for people are

looking for black and white responses that are similar. whatever market up in the last several weeks? because the fed has become more bearish -- dovish. between they are saved the economy is weak, so we are worried about raising rates further. as you and i have talked about before, the first rate increase last december was in no way, in my view, declaration of victory. success in the economic recovery a declarationwas of impotence. they are saying we are out of tools to address what is ailing the economy. --cks are down today because the jobs report was not that great in my opinion.

does it matter. people are reacting to wait pressures. -- wage pressures. yellendo you think janet is going to -- >> what she is trying to say is we cannot do much to help the economy. facing structural problems. it is the same problem in europe that needs to be address by legislative initiatives, by fiscal policy. monetary policies have reached your limit. thated to stop pretending monetary policy can help the economy any further. period. pound --y corporate the eu buying corporate bond is

not going to help anything. the demand is not there. betty: caroline, jump in. we got that manufacturing data out of china. once again, good news seems to be bad news because they are worried about more stimulus to come. but you make of the manufacturing numbers out of china? >> i think china is doing a great job. they are using fiscal policy and monetary policy tools. they are getting some decent results. the manufacturing numbers are pretty good. the chinese have stabilized the situation with monetary policy, but it is overlaid by very, very ande the displayed of fiscal initiatives moving the reform process in the right direction. the fact that the chinese wan is hanging in there at a relatively high level should be considered a positive because it is good for chinese consumers.

what is good for chinese consumers is good for global manufacturers and chinese manufacturers. >> i know you are a man of politics. the cofounder of no label, we are going to play you some sound now. the political focus was very on the president of china. as the largest developing country in the largest developed country, and also the world's top two economies, china and the united states had a great responsibility for promoting world peace. there are white areas where we should and can work with each other. a 10 is doinging the right thing in terms of fiscal policy. what about working together with the u.s.? if hillary clinton or potential in,donald trump come

neither of them are as friendly with china. about donalded trump talking about shutting down trade. i agree with donald trump if you are going to have a trade agreement, it has to benefit the united states and american jobs as much as it benefits the counterparts. but, i do think that further trade integration is a positive thing for the united states economy, and for the global economy. i think hillary clinton and probably even donald trump, whoever the next president is, when he or she comes into office will probably be reasonable and moderate with who is becoming our most important trading partner and that is china. betty: donald trump's biggest supporters are union workers. he has taken the republican

party in a completely different direction. if you're working in manufacturing, you should want china to succeed. betty: that has been a hard sell, dan. let's talk about politics. 63% of thosemp, polled in march by bloomberg believe that whoever gets the most number of delegates, whether they get that count for the nominee, which of course is trump right now. -- whoever wins should get that nominee. what do you make of that? clear, i am e independent. i thought marco rubio had a good -- two of the three

critical areas. relative to what is going on inside the republican party, this has been a very tumultuous and disturbing process at a lot of different levels. to your specific was a no, you have to play it by the rules. 1237 votest have the going into the convention, a certain portion of the delegates are free to vote as they will. if you don't get requisite votes of the next ballot, there is more freedom and the potential for a completely different alternative to emerge. thereonally don't think is a high likelihood of it happening, but i do think in this electoral cycle has demonstrated very, very important is going wrong with the political dialogue in general. and that is, really i believe, two things -- one, people are hearing from their leaders and their perspective leaders, different circumstances and what

they are personally experiencing. the fateresident gave of union address and the economy is great. people are turning around and saying, jobs are being displaced by automation, people are losing jobs with this process. -- i sit in on the run. on the other side, what you are ban muslimslet's from coming into the country and cut off trade agreements, which is equally unsatisfying. what i think is going to happen, ok, and by the way, let me finish the point, with this reflects further is at the moment, there is no candidate and neither of the parties that are fully reflecting the three pillars of the postwar political order in this country, which are liberal social policies, , economic, and

printable foreign policy. completelydemocrats where the country is on social issues. you've got republicans closer to where the country is on economic and foreign-policy issues. but you got nobody unifying everything, and that is going to come up, not for this cycle, but over the next four years, we have a good chance to create a new political movement, maybe a new party. betty: ok. thank you so much. >> republicans are fine, so is democrats. [laughter] ♪

♪

caroline. live in bloomberg london, i'm caroline hyde. on markets are down. brent down the .10%. the shaking of the oil market gains isl of the after an interview. we have saudi arabia of the twilight of the oil age creating the largest wealth fund controlling $2 trillion. we will have more on this exquisite interview with the country's deputy crown prince. ♪

♪ caroline: you are watching "bloomberg markets." to $3 trillion --

fs are now up to $3 trillion. julie: they are expanding into all kinds of areas. attractsan etf that videos and drones. "ther of the new book institutional etf toolbox." very good to see you. etf.eo gamers how does this work? people were skeptical. etf,en you have an normally they get slammed. with merrick.s you have to be at the scene.

videogame industry is growing, $91 billion in revenue. question, do i am stocks in this? this etf has a 5% overlap. microsoft -- there is a wealth of 33 different companies you are not getting. that was one of my questions. i did not think it was that many public we traded videogame companies to make an etf. >> when you look under the hood of an etf, 56% of its exposure is international. japan is a big videogame producer. china is going into this. they are all over the map. when you look at companies like in japan, they have a 5% exposure. it is a highest exposure. when there are companies with

other etf's, they are so under exposed, you don't feel them. when you look at overlap, if there isn't overlap, it is giving you a value add and that repackaging something you already own. julie: you're looking at other ats. one is the restaurant etf. gimmicky city. if you open the hood, it does anything with consumer discretionary. julie: what does it have in it? factory,le, cheesecake popeyes chicken. you don't know how hard it is to get into these big industries. the growth spurts are over. julie: there are other ones that don't sound gimmicky that may be our. computing -- it has

google, apple, facebook. you are ready on the stocks. this to me is more of a gimmick. one has pepsi and procter & gamble. great concept, but you are being sold that you are a half. overlap is crucial. julie: great to have you back, once again. betty, back to you. betty: still ahead, the model three of the tesla is bringing electric cars to the mask market. -- mass-market. we will get behind the wheel to see what the car really means for tesla. ♪ .

i am betty liu. caroline: and i am caroline hyde. you're watching "bloomberg markets."

let's check in with vonnie quinn. india sayscuers in there is no hope of finding any clearingivors after the rubble after the collapse a given overpass. 67 people were pulled from the debris alive and now the wreckage has been cleared. police are detaining five officials with the construction company hired to build the overpass. the world health organization says a new ebola case has been confirmed in liberia. the first case since january. it comes just days after officials say the outbreak the longer qualifies as an international health emergency. the deadliest people outbreak killed more than 11,000 people, mostly in sierra leone, liberia, and ginny. tensions ramping up between indonesia and china. indonesia will deploy fighters to the islands after chinese coast guard vessels clashed with indonesian boats in the area.

other forces will be stationed as well. china claims 80% of the south china sea and that puts it in conflict with the southeastern asian neighbors. the obama administration may .ase the ban the associated press says no final decision has been made. a number of lawmakers are unhappy saying as part of blaster's nuclear agreement with iran, the administration promised to maintain a strict ban on dollars. the british economy will lose workers again officiously with the starting of the higher minimum wage. david cameron's government has boosted the minimum wage to the an hour.t of $10.35 some say that will prompt companies to invest in technology instead. daythe news 20 for hours a -- 24 hours a day. i am vonnie quinn.

has big: saudi arabia plans to deal with its climbing price of oil, to try in dollar mega pumped -- $2 chile and mega pump. details on how saudi arabia was to involve its economy. climbed, withrent the assertion that saudi arabia will only freeze its oil output if iran and other major producers do so as well. as for the mega fund, hans nichols has details. five-hour conversation more he's etched out his plan for the kingdom. he has this obsession about moving the saudi economy away from oil and basing it around something new. --s $2 chile and fund is trillion fund is amazing. it is enough to buy google, microsoft, and the whole lot of them, warren buffett, all of

those things going to one thing and it was still have change to spare. .nto that fund will go aramco they will add land, property, all of these other things. roughly twice as big as in the or more than twice as big as any other sovereign wealth fund. >> his obsession is understandable even the volatility we saw the oil price and the fact we have concerns that saudi hasn't done the structural reforms needed. >> that is pushing on very hard. he has already cut the subsidies and they are moving on to other things. it is a rather dramatic play in the terms of the economic transformation of the country. tom: all of us were weaned on daniel juergen,obert lacey's book "the kingdom" that everybody read cover to cover as the first window into the royalty. we all understand this is a generational change. did you get that tone in your interview? if it is a generational change, where are they heading? >> there is something of a

generational change. his father is king, and you have the crown prince, debbie crown prince, and it is an element of a group of mostly young reformers around him who want to push, very much step on the acceleration in terms of change there. ,here will be some people perhaps in the royal family, but certainly from the religious side who will be suspicious and worried about this. but there is an element whereby saudi arabia has such a change where they were stuck in a situation where they were running out of -- they really needed it. john nichols on surveillance earlier. really moving the oil markets. look at what else is on the move, particularly, asia. we have the worst day of trading in seven weeks. we lost some 2.4 percentage points. stock 600 open lower.

we saw japanese sentiment from lynn. as we speak. energy is where it is hurting the most, oil companies all falling lower today. have a look at what has been happening on the v stocks. post-up german government bonds, more and -- many pouring in. the ecb steps up its bond buying today. the euro is lower versus the dollar. check out the euro-pound. the pound really losing value. the weakest level versus the euro since 2014, betty. betty: it is interesting, caroline, and the u.s., markets coming off considerably the low of the sessions. the nasdaq, just about to turn green. the dow has already turned to green. let's get to abigail with the latest from the nasdaq on what is propelling me >> nasdaq. >>one stock is netflix shares are up on an upgraded atlantic securities. find out whatto

is behind the move. i was told concerns around legacy price hikes are overdone and in fact, that can a price hike can serve as a catalyst for the company and the stock. also suggesting that have an addressable market of 850 million homes. of bears onts netflix. betty, this morning, "financial times" reporting jet -- shorting it. all of this tension between the buyers and the sellers is showing in the chart in a sideways trend, row battle between the bulls and bears. only time will tell which side wins. betty: tesla is the big story today and the new model 3 unveiled. >> one thing that is clear, this is not a cell the news event. this has lived up to the hype, and expectations, the reviews on the model 3 are positive. probably the most positive is the fact the companies taken 135,000 reservations, most sight unseen for the model 3, with a

$1000 deposit. this could be a $6 billion launch for the model 3. this is one of the things that is how propelled this stock higher. it had been down more than 40% for february. now about flat on the year. the bullish action recently has taken a stock above its moving average. the buyers are very interested, suggesting more upside could be ahead for tesla. let's stay on tesla. elon musk spoke at the unveiling last night saying the car will be fast and efficient. >> even the base model 3 will do zero to 60 miles per hour or -- in less than six seconds. slowsla, we don't make cars. of course, there will be versions of the model 3 that go much faster. terms of range, the range will be at least an epa rating of 215 miles.

betty: like a concert. for more on what the model 3 means, let's bring in analyst colin rusch. you liked it. this is part of the process. the long-term basis, the development platform. it was part of the step toward the high-volume vehicle coming out. if this was anything less than spectacular, i think we would've had something to talk about. betty: explain operating leverage. >> the company spends an awful lot on r&d. at this point, they have built up the network and need to ramp sales into the gross margin pass through to the bottom line. betty: why is the model 3 so important to the? >> it is about volume. the long-term sales growth will be driven by this consumer vehicle. betty: haslinda we see tesla become comfortable -- profitable?

>> on a cash basis, there are new profitable. their generating cash on a quarterly basis. on a bottom line cap profitability, looking for later this your ticket up to the higher volume on other models. seeing itwe are internationally? how many of these products have these model 3 do you think will fly out come the end of next year? slowly inll ramp terms of the total volume. i think the most fascinating thing we have seen is the folks lined up outside to sign up for these things. yesterday at noon, you start reserving your car online. it would have taken me 30 seconds to do this. folks want to the social experience. i think that is a testament to the brand that they have built a lot of brand loyalty and enthusiasm around what they are doing. betty: it is, like waiting for the iphone, right?

there were lines around the corner, but it was interesting to see the work people crowded outside. let's talk about a competition. we have a chart that says, compared with competitors like the chevy, the bold, the spark, the mercedes d class -- no, it is the price per mile guide. you divide the sticker price by the driving range, it shows that tesla comes out on top. cars, our thesis is they don't make economic sense. we're still making a luxury sail our lifestyle purchase. thiswe saw last night is is a fantastically comfortable car for the size. it is going to perform very well. it will have the gadgets you would want in this sort of vehicle and a far more sophisticated way than the other vehicles. indigo who isn't going to hurt the most? >> i think you're looking at the bmw and the mercedes.

betty: tesla has had kind of a spotty past -- not meeting production targets, but -- >> there had been delays on every vehicle. betty: and we're still waiting for the full rollout of the model x. >> a couple of weeks ago they were talking about procing 300 cars per week, which is a little ahead of schedule. could meet the timelines on the model 3, we will be thrilled. i don't think that is in the numbers at this point. i think folks are expecting the in 2018. up to happen given the experience they have with two high buying vehicles, we expect them to ramp up much faster and a much more efficient way than they have in the past. using the analogy of apple, how much do we think tesla helps -- will they make the electric car ubiquitous, even in the face of loyal oil

prices and gas prices? to myld only go back original argument that this is a lifestyle purchase, i think they are accelerating the adoption of electric vehicles for sure. there are moving technology forward and sharing bits of that technology that can aid other competitors. i think the core part of this platform is their ability to design a battery pack that is resilient and manages its cooling and thermal cycling very well. i think that is something they will keep to themselves and keep an advantage on. at this point, they're moving it forward, but we don't see this as wide adoption across the entire auto sector. it is still something that gives him the 5% to 10% of the market share range. , thank you very much. all things tesla. coming up, just how safe is the election process? -- things politicians

politics from hackers, no less. influence thing across latin america. how did he do it? next. ♪

caroline: i am in london with betty liu in new york. time for the bloomberg business. some of the biggest stories in the news right now. big three u.s. automakers have come up short with their march sales. general motors, ford, fiat chrysler missed estimates, but sales were up. meanwhile, u.s. sales rose 13% for the month, beating expectations. consumers get up to for the

automakers crossovers and sedans. home retailer unanimously recommend takeover to shareholders. home retailer at about $2 billion. the grocery chains path was cleared when steinhoff and a national dropped its offer. the stars have come out in favor of new copyright laws. katy perry, billy joel, and rod stewart are among those asking for changes in the digital copyright act. the music industry argues the law puts too much of the burden on artists to police websites. trade groups reject those claims. and that is her latest business flash. betty: we all know our credit cards and e-mail passwords can be vulnerable to hackers, but what about political elections? jordan robertson profiles the man who claims he hacked elections across latin america for eight years and startling

claims for our elections here in the u.s. jordan joins us now from d.c. the men we're talking about -- the man we're talking about, who is he and what is his role in political hacking? whoe is a colombian hacker is sitting in prison serving a 10 year sentence for hacking these negotiations between the colombian government and farc marxist guerrillas and their 2014 presidential election. what is interesting about him is that was not the first presidential election he hacked. through a team effort here at bloomberg, we were able to gain access to mr. cipolla in a epulvedan prison -- s in a colombian prison. we were able to validate many of the aspects of this. one of hacking presidential elections for eight years throughout latin america.

betty: that is incredible. he traded software called social media editor? >> exactly. that is one of the reasons he is talking to us. a question i've gotten is, why is he talking? the answer is too full. one, he is this software called social media predator, essentially, his hacking platform. the colombian government apparently has come up with a very unorthodox and creative strategy for rehabilitating him, which is to say, repurpose your hacking tool to help us defend our networks and protect the integrity of our elections. he really wants to show he is being rehabilitated in a main driver for that is yes told us repeatedly, he wants to get out of prison and he has fallen in love in prison with a woman he knew from the outside. he says, no human can wait eight years to get married and have children and to all of the things he wants to do. it may sound strange that by

confessing to some of these actions, that could potentially help him get out of prison, but in the cyber security world, this is a very rare skill set for somebody to have. there are not many people in the world presumably that do what he has done. that has made him very valuable to the colombian government and he is hoping, to others as well. caroline: it sounds like a film script in many ways. give us the vendor -- valuable this man. >> as he likes to tell us, andres could have made more money hacking banks or credit card numbers, but he did really well. the capstone the congressman's was hacking -- a competence was the election of 2012. 600,000 dollar budget. a lot of that went to pay for equipment of hackers and tools and things like that. he made a very comfortable

living. he lived a nice life before he got arrested. he was able to fight for his political beliefs. betty: jordan, he says the u.s. elections are being packed? >> absolutely. he says there's so much at stake in these political elections that we would all be naive to assume they're not being manipulated. they may not look exactly the the latin hacked elections. latin betty: jordan robertson, thank you. ahead, one ofl goldsmiths prestigious tournaments. it starts next week. none other than matt miller will be talking to us about the masters. he joins us to tell us why he thinks it is the best sporting event in the world. ♪

caroline: next week, thousands will head to augusta, georgia for the masters tournament hosted at the most exclusive golf club in the world. matt miller says there are nine reasons the masters is the greatest sporting event in the world. he joins us now. defend your claim. i find it boring. i want sweat and tears and beers. matt: you can definitely get beers and there are your fair share of tears as well. i'm sure there are more than nine reasons. what i'm talking about is sporting events you actually go to. i've had the privilege of going to a lot of dust wimbledon, seen the rugby at an formula one all over the world, the super bowl a few times. but none of it is as great, as far as a live experience, and

the masters tournament. thedo because the masters is spread over four days, maybe because of the company. it seems like a lot of people that go are just thoughtful, considerate, polite sports fans, not the drunken louts with you the rugby 7's. whyy: it is so great, doesn't he get anywhere near the numbers that people watch the super bowl? matt: i'm not talking about watching it on tv. i see you could find it boring on tv. i'm talking about actually attending a. you have entered super bowl, betty. it takes a lot out of you. at the end of the day, you're tired. at the end of the day at the masters, you really feel like u.s. bancorp time well and you are a better person -- like you have spent your time well and you're a better person for. that is not how i feel after watching the giants beat the patriots. caroline: talk cash him at talk money. where is the money made at these

events, sponsors? matt: one of the reasons i think the masters is the best, they .ring in $115 million we don't really know the number. that is an estimate. they don't have to. it is a private one. mostabout 300 of the wealthiest and powerful people in the world are members of the club. they basically throw this tournament for the benefit of humanity. they make about $45 million, for example, on selling souvenirs at the tournament. but they don't really need that money. they sell a lot of concessions -- food at the tournament. they do not charge too much, 1.50 forfor a beer and $ a sandwich. they want you to have a good time. they don't need a profit on it. there was a point when they were at the masterss because they did not let women in.

some suggested they would cut sponsorship will stop they said, ok, we don't need it. betty: where do they make the most money? >> probably from selling shirts and hats and golf balls. the average patron spends about $250. betty: not broadcast? >> maybe $25 million on broadcast rights. things are kept secret, only from them in the networks to know. what they want to do, what bobby jones wanted to do was throw the greatest golf tournament in the world, and that is their focus. betty: where is your green jacket? >> i, unfortunate, do not have a green jacket. betty: matt miller, thank you. ♪

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. betty: 11:00 a.m. here in new york, 11:00 p.m. in hong kong. i am betty liu. kevin: live from london, i am caroline hyde. live from london, i

am caroline hyde. going to take you from new york to london in the next hour and this is what we're watching. u.s. stocks a recovering from early losses right now after this morning's march jobs report. adding two hundred 15,000 jobs last month, but european stocks remain lower in energy posting losses as oil prices live. betty: saudi arabia reveals plans to create the world's largest sovereign wealth fund that could eventually control more than $2 trillion in assets. caroline: apple drops one of its biggest heart suppliers, adding phillips. we look at the supply chain shuffle ahead of the release of the iphone 7. betty: