bloomberg television. betty: we will take you from new york to london to hong kong in the next hour. here's what we're watching. you could call them the fed for. they all come together for a historic conversation with a set about financial bubbles, inflation, the recession, politics and more. itk: from verizon to google is said to be lining up with yahoo! that is pushing back the deadline. a look at the bidding to buy the struggling company, and what it means for the future of the current chief executive marissa mayer. mark: while human never see the broadway hit hamilton, we will give you a chance to meet the man who designed the costumes. bloomberg businessweek said he is one of the world's most

original thinkers. that is quite a promise. let's head to the markets desk with julie hyman has the latest on this rebound of the markets. julie: i went to a fundraiser for my son school. a pair of hamilton tickets in the auction went for four thousand dollars. cause, they are a hot commodity here in the city. it's good to markets. it looks likes cap markets are very hot. we are seen a bounce back from yesterday's decline, and, we are really seen a switch flip day by day here in the markets. ,ot just here in the u.s. globally, risk on, risk off. thise seeing a breaking of week in the japanese yen as well. is rising versus the

japanese yen the first time in six sessions. among other things, japanese officials making indications that the bank of japan of a government would be willing to intervene with a currency intervention. it was very vague. nonetheless, they are hoping to trigger that reversal. u.s. stocks every commodity driven. energy materials are the two best-performing groups. it does feel like financial tech is a broad-based rally. markets stay mostly green. a lot of that is due to oil prices which have been surging today up more than five are sent, if you look at the wti, 5.5 percent right now. we'rey specific catalyst seeing for today. interesting enough, as you saw, the dollar is rising. that is not something that would be positive for oil. oil is the best percentage mover. we have energy and transocean

all gaining in the neighborhood of 5% this morning. mark: retailers are not doing that well. julie: they are one little sliver. we have the same sales. alcoa trading yesterday. stocks tumbling 12% after cop cells fell. and by 14% at banana republic, jpmorgan had a note on some department store retail cutting earnings estimates. nordstrom, macy's and dillards are all affected by that. though stocks are declining as well. mark: julie, we are out today but up over the week. an analysis plan losses and gains on a daily basis. 2014,aid, between october since we hit it too much eye on march the 16th right there, the stoxx 600 is down by roughly 3%, since the 2.5 year low there,

the stoxx 600 is up by 9%. that puts the last week or two in perspective. stock indexes are a fair games. have the volatility index earlier set for a third weekly increase which was the longest stretch since mid-january. it is touch and go whether it will rise for the third week. look at this aired what a wonderful chart. these are the constituents of the stoxx 600. look at the top 10. most of them are italian banks. what a day for the italian banking industry. that is after the credit chief that italian said financial institutions are intensely working on a solution that would see private investors anticipate in this in supporting the ray e raising as julie mentioned the yen, i cannot

resist doing some quick technical analysis. the dollar is below its 200 day moving average. interestingly, it is oversold looking at the rsi 27. analysis a technical analyst, you know the time to buy the dollar is when it sits back above 37. have a bit of technical analysis on a friday afternoon to send you bidding for this hamilton tickets. indeed, although it seems ke you need over $4000. you need the money. let's check on first were news. vonnie quinn has more. vonnie quinn bernie sanders is backing away from comments that hillary clinton is not qualified to be president. saying we have to fight back, with conversation for the white house, sanders

said hillary on her worst day would still be infinitely better than anyone on the republican side. establishment republicans are so eager to defeat donald trump that they are ready to give cruz.crash to rival ted donors are bolstered by cruises victory in wisconsin. he is addressing the republican jewish coalition in las vegas. kasich declined invitation. kerry is of state john in baghdad for surprised visit. he is meeting with the iraqi foreign and other top officials about the islamic state. they talked about military advances. officials are putting the extradition of the para suspect on hold. he has been since his arrest on march 18. officials say the delays because of investigation and belgium. concerning a deadly police raid in the belgian neighborhood.

belgium after the pair's attacks that he faces preliminary terrorism charges. greece resumed deportation of refugees to turkey. 120 for people were sent back onto boats to a turkish air force. i know, over 200 refugees percent back to turkey. global news 24 hours a day powered by.400 journalist and 150 news bureaus around the world. i'm vonnie quinn. betty: last night in new york for the chairs made history. janet yellen joined by her appeared via ao video link. the conversation rates from the challenges and holdings to a powerful position in the state of the u.s. economy. >> i would not describe this is a bubble economy. we have relatively weak global growth. but, the u.s. economy has been

doing well and, domestic strength has been propelling us forward, despite the fact that we are suffering dragged from the global economy. betty: our next guest was at that event. chiefaunders is a investment strategist for charles schwab. you know, market geeks are cool these days. what was your big take away from that event? luck, one, interesting even though she did not ask the question to the rulers out there if we will have a sears recession or, to use a presidential candidates turn, a they bothcession, took an opportunity to go right to that issue. that wel the notion have a serious recession which is imminent. or, we have a financial bubble which is about to burst. and, the biggest laugh that was

garnered last night was when she was asking bernanke about the balance sheet of the fed. and come how you unwind that. he said it is not my responsibility anymore and pointed over to yellen. that got the biggest laugh. play part of to that conversation you just mentioned about the discussion on the recession, let's play what been said about the recession. whichre is no sense in expansion will base. the risk of a recession is more or less constant every year. , we cannot forecast it. there's no reason to think that just because we have been come in this case dealing with seven years of recovery, we are not due for another recession of all. betty: that leaves the question, if the economy will continue to move along the way it is now,

where does that leave the fed? case met you can anticipate potentially to moves. yellen was very clear to talk about that in the dependency factor and that the fed is not on a predetermined course. think that is a misperception a lot of people have that they have an ideal what they will do and they are just decided to group out that information to those of us that are watched the fed. the data will be a function of what the fed is going to do. this point, if the economic data continues as it is, i think will possibly get one more thing to this year, if the data moves one way or another, that could change the trajectory of the fed. get a sense of where the equity market is heading. i want to go be the projected estimate for the snp. last quarter was falling by 10

percentage points. the most since the fourth quarter of 2011. aose that leave for earnings? means we have this rebound in equities that we have seen since february the 11th might have legs. gets sete bar often low by analyst are particularly coming in a more uncertain environment. so, i do think analysts probably set the bar a bit too low. now, it does not mean that companies will action coming with reports to take you back from positive territory. i do not think we reach positive growth until the end of the year. i think given that valuations way, i expressed all the think you will to see that return and earnings growth before the market can move higher. i do think that when the season is finished that would have all the reports in. the actual report will be something better than the -10%.

month, the sellers market index jumping up by 13%. the biggest monthly rise is 2009. we had a bit of a change this week by 1.3%. when the gains are over, what could propel emerging-market cracks we arer? neutral on emerging-market equities. we're let people stay at their emerging allocation. that is based on the view that although emerging markets certainly, at valuation, is one of things that propelled it, it is also more tied to commodity cycles than is the case in the united states. , we haven the move up been turning the move down. technically, that asset classes got way oversold, and we have seen short recovery rallies. we do think we may continue to

see some bouts of rallies, but come is probably more likely in a range and not an environment that you one of back of the truck and load up on. betty: before we go, getting back to earnings, we had tom on earlier this week said he see aes earnings, we will material effect from the lower dollar a bit more static and that we will see a mature effect on earnings of the coming quarters. you sure that view? >> i think we will see a return to earnings compared what we've seen the last few months. i do not think that it will necessarily happen are in the quarter we going to report, certainly, on the benefit of the export site for earnings, particularly if the dollar stays don't these levels. that has been an important factor. if you look at the drag on earnings, it has taken us down this expectation, the vast majority of that has been

concentrated in the energy sector. we're talking about three quarters in a row of upwards of 75 to 100% decline in energy sector earnings. second to that will be the basis material sector, clearly, those have been impacted by what we have seen in the dollar. so there will the reasons you are seeing on the out quarters, a lift back into positive earnings territory. mark: thank you for joining us. the chief investment strategist at charles schwab. coming up next, we hear from bloomberg exclusively that financial regulations and negative interest rates are sapping global companies aired will have more on the interview coming up next.

mark: welcome back. i am mark barton. i'm here at betty liu. u.s. banks are expected to report a tough quarter starting next week. investment makes remain under pressure. schatzker talked to the investment make with a seismic change. crossroads where we are seeing increasing regulation. we have these competitor strategies which are changing the way we need to look at our competition. that has been amplified by markets which have been challenging for the last decade. when we put all these together, we need to navigate a long-term perspective by trying to cross a year that is shaping up to be

quite difficult. is it more or less challenging than it has been in the past? >> it has not been easy. but, what is happening now is that we are firm with regulatory rules. with the market conditions what they are, and with shareholders increasingly questioning the long-term profitability in investment banks. has neverhe pressure been as high to try to reshape our model to something that can hold water and convince our shareholders that it is worth investing in us. >> three weeks ago come eason client activity was still week. has it improved? >> we see some indication in the u.s. that things could slightly become better. but we have seen that before, and it has reversed quickly.

we are a little more optimistic. not significantly. when you see the s&p stage the recovery has come at you do not count on that? --we think that the lego level of the s&p should support better market activity. we are already banking on that. we're very cautious. we are looking for the path the next few weeks. erik: when you talk to clients, what do they say is preventing them from taking risks? >> uncertainty. we are facing a new kind of uncertainty. if you go back a long time, we used to watch economic data of this kind. today, what impacts the market is different. collections in the u.s.. .rackets in europe

sanctions in russia. energy crisis in the middle east. negative interest rate monetary policy. thathese are all things have a very significant impact on the market. are not really used to this kind of forecast. that puts everybody at a position of wait and see, trying to see what will happen to these things, and where they will establish the new rate. >> andrea or sell their talking to erik schatzker. >> next, coming up, it seems like writing about returns has in shaped by new shaming. what can be next on bloomberg markets?

julie: it is time for our weekly deep dive. when comes to talking with friends about investments, bragging about returns is being replaced by c shaming. that is according to a new report. here to discuss what is is the etf analyst and author of the institutional toolbox, eric with us once again. shaming, i find this fascinating that people are cocktail parties same well oh you pay 2.5%, i only pay whatever percent. why is this now becoming a hot topic? david: i do this at cocktail parties. i'm in the bubble. what is happening is that the conversation is now going where the results are going. for a decade, we have seen the transfer of money from active funds into low-cost funds in the

etf. the more people that own them, it will become a thing. the millennials love this. it is going to build. when you get see shamed, this will silence those people. they are literally the cheapest on the planet. they have these oducts. so, will be on the bottom.

julie: also, they are on the total world etf. get in commission free. it is even cheaper. vanguard come obvious it, low guard. it is he told world and thousand five from it stocks. it is 50% u.s.. it is literally like your and tire portfolio. it opens as well. one that be sort of the holy grail? eric: this is the thing. enter smart data. it is like this is active management. growth, significant they had one of the largest old school issues using fundamental metrics.

it rebound using to things like book values in price earnings. it is certainly like a mini active manager. they picked up some alpha. minimum volatility is up 15. it is cheaper and cheaper and cheaper. julie: thank you so much. dogma this low-cost etf. still ahead, the bid for yahoo! starting to emerge. why would anybody want to buy it? we will break all down.

betty: live from world's headquarters here in new york, i betty liu. mark: i am mark barton.

let's check in with first word news today. vonnie quinn has more from the newsroom. the ruling coalition says it expects a note of no confidence for a vote of the new prime minister. johann send took office a day ago. indicatedminister that the leak is an effort to avoid taxes. north koreans working at the same restaurant went to south korea. officials say it is the first time multiple workers in a restaurant overseas have escaped from the same location. north korea sanctions are bitter point of contention. enticing theem of citizens to affect. they said individual conscience should be the guiding principle for cap. the pope said it impacts family and marriage. as outlined in a 256 page

document that rejects the emphasis on hardline rules. church must no longer hold films who fail to live up to the gospel ideal of marriage and family. authority istion talking about last month crash on the new plane. they said a shift in the horizontal stabilizer occurred as the crew tried to climb out of an aborted leading. the aircraft slammed into the ground. 62 people aboard were killed. facebook has another relaunch plan. a space x rocket is set to plan take off this afternoon. it is including experimental and final module that may one day be used for space hotels.

thank you. i want to start in asia. it is an incredible rally that i have seen in asia overnight. partly due to the fact that the yen has declined for the first time in six sessions. another big story from the region was out of china. we have the stabilizing economy as you stocks lower last night. stephen engle reports. stephen: china's record bond rally is at risk. tenure sovereigns have seen their biggest decline in 10 months. it is adding deflation over the improving economy. that includes the chances for further stimulus. 17 analysts surveyed by bloomberg news say it will maintain its paws on the monetary easing. the data due monday will likely

show the fastest deflation in two years. now that the stabilization of the economy is more certain, the collection in the bond market is more certain. we are about an hour away from the end of friday session. mark: stocks are rising for the third day this week. forstoxx 600 is on track the biggest drop since october 2014. u.k. stocks are rising. let by drug companies. stocks are down for a fourth week. it is the most since june. however for an industry group. we have energy stocks of by 3%. week have been of since january. and, banks are up today.

the top 600 bank sector. it is up for the consecutive week. let's go over to the u.s.. abigail doolittle has the latest. what do you have for me? i would they are recovering from yesterday's loss. one of the best performers in the nasdaq 500 is the shares trading higher on the news. it is a standard product business unit for $2 billion. this is drawn in the interest of the jac capital. they said the segment sale makes sense. the stock has largely recovered. abigail, loads of great on the nasdaq. abigail: one loser does stand out. it is one of the worst performance in the nasdaq 100.

this capital has gone through several topics, but, the standout under performed price target is by come. analyst stephen k policies significant structural challenges for the company. this follows a downgrade earlier from michael nathan, some bearish work this week on viacom the stock below its moving average. suggesting that sellers could just push shares of viacom lower. betty, what do you have? betty: we are learning more about the potential buyers for yahoo!. verizon and google are among the possible suitors. they are saying is anyone really that interested in the company? joining me know is paul sweeney. who broke therman story force. alex, let's start with you. yahoo! assets are valuable?

paul: verizon bought aol. yahoo! and aol shared similar businesses. they have problematic advertising technology. the come with a large digital reach. betty: why would they want the objective paul: verizon's plan is to marry data with users. they have 100 million subscribers through wireless environ, you can take the digital data that you get from the users of aol and yahoo!, and marry that with this advertising technology that uses algorithms to show digital advertising, and that was a mobile video product which, her verizon has already introduced, that seems to be the plan, because her businesses are so similar, you can reduce a lot of cost. there is synergy with verizon that you might not get with any other company. i think that's why verizon is taken such a hard look at

yahoo!. mark: what can verizon or google dotime or at&t or comcast that marissa mayer could not achieve? paul: the real challenge for any owner of you who is to try to get that core operating business growing, yahoo! has been a business that has seen its revenue decline every year for the last six years. it has a large user base. users,e billion monthly they have not been able to make those users a compelling by for advertisers. the real challenge for yahoo! is aat is it is no longer credible player in the search market. google took over that business. shiftsocial media, they they miss that shift for social media, they lost that to facebook and linkedin and snapchat. is a company, it is a

business, it is a platform that is really struggling to get the attention of advertisers, and the hope is that with a larger media player, whether it is it -- it is a technology company, maybe they can reengage that big user base. betty: you know, could someone else,." paul: of course. we know of many of these companies will make a first bid. they are game to pair up with a new strategic layer that could come along. thate also reported today the deadline has been pushed back a week until april 18. that suggests there are other businesses and maybe a who could make a humor calls to try to get other people involved. plus, some of the big players are reporting. at&t, comcast, disney all have limited to no interest.

so, that narrows the field down a little bit. mark: relevancy is big. to keep yahoo! relevant comments like you said, have this huge user base. does not have a day was around it like many of these other blue-chip new, modern technology brands. where is the relevancy what comes to yahoo!? mentioned, they are working to establish a place for them were searched is the dominant platform for advertisers, or social media is a dominant platform for advertisers, and they also lack a viable mobile strategy. we know consumers are consuming more content on mobile devices, and advertisers know that. they are trying to shift to a viable mobile platform. yahoo! cannot check those boxes. what does have is over one billion monthly active users.

it has a lot of high-quality branded content such as yahoo! homepage. it is not being monetized at all. so, the real question is, there are hundred $50 million of cash flow from the company. can it be deployed and managed? thank you. paul sweeney, bloomberg intelligence. he broke that story on yahoo!. we have more breaking news of goldman's tax. he is releasing his annual letter. julie hyman has the highlights. julie: we're following from jamie dimon's letter from earlier in the week. the near-term environment will prove challenging. he said he is generally optimistic about the longer-term. he said the combined ceo chairman structure serve from

goldman sachs, he also said he was to continue a dialogue with the fed and sec. he looks like the lead director for goldman's ford is making commentingnts, he is on his optimism about the longer-term. also, he goes through the pay package. goldman sachs is awarding a $7 million bonus over eight years. that is if the firm meets certain targets. $30 million is down from 31 million from last year. ceo amonghighest-paid the u.s. lenders for the fourth straight year, even though, and the income has gone down by 28%. will continue to monitor this letter. i will be back and erik schatzker will be back with any

further updates and highlights. note, the annual meeting for the company will be may 20 in jersey city. mark: coming up, have you ever wondered how broadway actors get into character? we have some help from them. we'll tell you about it next.

betty: breaking news. live pictures from texas were two people are dead and shooting at lackland air force base according to the associated press. there were reports that the gunman is still at large and is still active. it is the home of air force

basic training. we will continue to monitor this incident. mark? businesse for the flash. we will look at some of the biggest business stories in the news right now. and, volkswagen has now until may the 16th to respond to a law student that makes it possible to sidestep omission tests. reachedice department an agreement giving the carmaker more time. it will still need the judge's approval. vw could face as much as 46 billion dollars in penalties in that case. see cg is continuing up its trading unit. to a familiaring sector sign a new division will be in englehart's commodities partners. -- planningcleaning announcement today. facebook is trying to get people to share more personal content.

some people say users are less willing to post updates about their lives as their list of friends grows. instead, facebook's 1.6 users is sharing more news and information from other websites. that is your latest business flash. let's get you some hamilton tickets. betty: thank you. mark: i am coming. betty: bloomberg businessweek is up with its worth angle design. designer for the broadway musical hamilton, reporter mark made off joined the story now. we cannot stop talking about hamilton. word-of-mouth is so strong on the show. tells about haswell. >> he is a lovely guy.

he grew up trying to be an actor hee a lot of people here said he group with asthma and his mother gave him a sewing machine. so, he growth making close, and that segued naturally into being a behind the scenes creator. how did he get this job? with lynnworked here well maranda on in the heights. i guess it was a huge hit seven years ago. before that, he created a great relationship with george seawolf. brought the noise, front a funk. they had a poetry jam. so, he had a slowly building track record. mark: what sets them apart from other costume designers? what

would you say his signature is? is a what i'm struck with delightful objects position , anden and everyday person these fantastic figures. this,uniquely suited for because his training was a classical theater. as an african-american designer, he was always asked to do shows that people on the streets. so, when you look at his work on hamilton, they are all people who could have walked in off the street. they are also in elegant revolutionary war costumes. something i noticed throughout his work. give tonya pink ins dressed as a 60's housewife -- made. she is talking to his fantasy woman coming out of washington. he loves that juxtaposition between the surreal. betty: did his costumes have an

impact on production? mark: yes, it we chose paul, hamilton is unkind of anything else. you are taking 20 people sometimes and putting them in a rehearsal studio to develop a piece. in this situation, the costume designer was the glue, and my view to hold the whole show together. they developed this shoulder up rule. where, everything from the shoulders down with be revolutionary worker. everything from the shoulders up would be the actor as they were just on the street. glue thatas the allows the audience to be both in the history, and in the contemporary universe. betty: thank you. bloomberg businessweek, you can read more about hamilton design costumes. breaking news, we want to bring you an update on that shooting

at the air force base in san antonio. you're looking right now at the county sheriff. he said two people have been found dead. it appears to be a murder-suicide. at this point, he does not know if there are other victims. officials are inside do an inactive search. we'll have more when we return.

mark: a few months ago, pierce 76 was home of the police department. , now it is some of horsepower. we got an inside look at the classic state of the classic card manhattan. thank you for joining us. from horses two horsepower. how did this come about?

clerks this is a great story. it is a public park. is part of the hudson river. the car club placed a bid to take over the space. when the police stables moved , and the basecks was open for bidding, and the car club has worked on this project for a year. finally, they have ownership of the space. mark: tell us about the car club. how may cars? how does it work? hanna: there are 40 cars in the club. both modern cars and vintage cars. month in dues,r plus, you have to buy points to get days for driving the cars. at the end of the year, it cost $9,000, plus your monthly dues to be a member have 30-40 driving days. it works on that kind of system. betty: mark wants to join, how much does it cost?

hanna: we have 450 members right now. there is a four-month wait, give or take. it is doable. will have to be patient. you're probably have to know somebody to join. betty: calling matt miller. mark: exactly. what happened to the stables? hanna: they moved up. there on the ground floor. it took a lot of finagling. there are one dozen horses now up there. it is a brand-new stable. it is state-of-the-art. betty: is it a luxury high-rise? hanna: yes. be up for interpretation. car, i know you love your what is your favorite?

him: there is a 69 ford bronco. it is bright orange. it just looks amazing. they have a 63 corvette stingray that i have had my hands on. i love it. they are very fun. ok.y: thank you so much. hannah elliott. at can find us a much more bloomberg pursuits. travel, watches, dining, and property. you can just go on the bloomberg. we have a headline coming across our bloomberg right now. the u.s. is pressing ahead with its appeal in the brooklyn iphone privacy case. government dropped its fight over the iphone access in california. they are pressing ahead with an appeal in the iphone privacy case. we have more details as they come across. mark: coming up, just under 30 minutes away from the coast. we will have more action coming from the final bell.

we go to germany's stephanie finance minister. we'll have a look at how the forces are faring on this friday session. they are rising for the third day of gains this week. two days of declines. as i said, the stock europe 600 is on track for its fourth consecutive weekly decline. that is the longest losing stretch this october 2014. the best-performing industry group this week our health care stocks. they have been gaining on speculation and earnings operations. i have a lovely chart on that to show you in the next half hour. the european close is next. ♪

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betty: it is 11:00 in new york and 11:00 p.m. in hong kong. i am betty liu. mark: i am mark barton and you are watching the european close on bomberg markets.

♪ mark: we will take you from new york to london in the next hour. economistrmer chief gives us his take on negative wantsst rates and why he qe2 boost europe's economy which he says is recovering slowly. releasingyd blankfein his letter to shareholders, we will tell you what he is saying about the firm and the state of the economy. mark: a first interview with the ministernance deputy about the state of the european union as it faces challenges from a potential brexit. continuing negotiations.