from bloomberg world headquarters, good afternoon. i am carol massar. apple reportedly extending production cuts for the iphone of mid-slowing sales. can the tech giant move beyond its core product or have we reached a peak when it comes to apple? brazilian lawmakers beginning the impeachment process ahead of the sunday vote. has her presidency run its course? is herballife a pyramid scheme? maker of a new documentary about the victims who have lost thousands. we are one hour away from the close of trading on this friday. ramy inocencio has the latest. it has been an interesting day considering the run up this

week. right now, i am calling it flat. it is noncommittal. there has been a lot of data we have been crunching over the day. this is where we stand with about an hour left to go in the trading day and week. the s&p 500 down .1%. the dow not far behind. recently flat. as i was talking about data, u.s. factory output fell, consumer sentiment felt. all of this weighing on the markets. also, oil falling. let's go to my terminal, the bloomberg terminal, and look at what is happening with the sector health of the s&p. as few ase had three sectors in the green. utilities of the most by .8%. energy down the most by about 1%. that has to do with falling oil.

let's look at what is happening with wti crude. down for the 2.8%, third day in a row. dohae looking ahead to when 18 ministers from oil-producing countries will get together and say, do we want to cut production or not? also quickly, the bloomberg dollar spot is down by about .2%. the following dollar but off session lows. carol: noncommittal, i like that. major market averages over the weekend had quite a run-up. ramy: looking at today, he would not get a sense of the entire week. this is where we are. red today but for the week in positive territory. the dow is up the most for the week by 1.8%. with the s&p as well as the nasdaq, it is its best week

since april 1, as well as its highest week since new year's day. let's cycle through a couple of the best groups this week. best in financials. citigroup, you would have seen a rise in your shares by about 11%. j.p. morgan, 7%. let's head over to energy stocks, also getting a boost. chesapeake energy, 61% over this week. southwest energy not far behind. let's hit the boards for materials. freeport-mcmoran is up the most. better-than-expected numbers in line over china's gdp. 6.7%. maybe that is not so unexpected. carol: thank you. let's get a check of the headlines on this friday afternoon. mark crumpton has more from our news desk. earthquake with

a preliminary magnitude of 7.1 has struck southern japan. it struck barely 24 hours after a deadly quake hit the same region. shook the region at 1:25 a.m. local time on saturday. l agencyorologista listing and advisory up to three feet along the coast. the agency says the operator is reacting -- operating normally. the vermont senator making the trip while he faces a crucial new york primary against hillary clinton next week. senator sanders joins several speakers commemorating the 25th anniversary of a high level teaching document by pope john paul ii at the end of the cold war. bernie sanders: pope francis has played a profound role in turning many minds around about the urgency of the moment in terms of dealing with climate

change. when i received this invitation, i know it is taking me away from the campaign trail for a day, but when i received this information, it was so moving to me that it was something i could not refuse to attend. mark: the vatican says pope francis had no plans to address the conference or meet with senator sanders. mrs. clinton says she will do more to make housing more affordable. she visited a senior center in harlem ahead of next week's new york primary. mrs. clinton said she would provide more funding for housing subsidies for low income people. hillary clinton: today, too many new yorkers are struggling to pay rising rents. they are being priced out of communities where they have lived for years, pushed further away from jobs and quality schools and good transportation. and latino and black families are being hit the hardest. mark: mrs. clinton said she would create a program that

gives people a $10,000 match for a down payment to buy a home. more presidential politics through the day. join us for an interview with republican president of candidate senator ted cruz of texas on "with all due respect." russia's defense ministry rejects complaints by u.s. officials who say russian attack planes came dangerously close to a navy destroyer in the baltic. u.s. officials call the maneuvers unsafe and unprofessional. but a russian military spokesman says the pilots were using all measures of precaution. u.s. secretary of state john kerry had a phone call with the russian foreign minister. he said the u.s. officially objected to the unsafe maneuvers. local news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. carol: stocks are off a little today.

the s&p 500 has rebounded 14% since the february low. the seven-year bull market weeks away from becoming the second longest in history. my next guest says oil has been the biggest factor in the turnaround in stocks this year. chris wolfe is chief investment officer. nice to have you here. glad it is friday. it has been a busy week. earnings news is coming through. we have had another run-up in stocks. chris: you had a big turn in february with a change in fed policy. you had a swing of the dollar and commodity prices that contributed to a lot of folks playing the under, what was undervalued. a lot of those have come back strongly. that has helped propel the markets higher. you showed a graphic earlier of energy names and financials. those were things that did not perform well. carol: what has changed fundamentally? anything? chris: at the big index level, not a lot. the big driver is the change in

fed policy. think was the we u.s. going its own way versus everyone else. it is going to be a lot closer, similar interest rates and growth. i think that has restored confidence the dollar is not one to take off relative to other currencies and create other issues in emerging market that or growth dynamics. the price of oil and other currencies has come down. is i thinkting thing it has restored confidence that global growth is not going off a cliff. carol: do we have to be concerned about the duration of the bull market? does it bother you at has been going on for seven years and counting? chris: by 10 years, it will be the longest in history. i think it matters because there is historical reference market participants and rules people play by. profit margins have been higher for longer. they may come down, but the

reality is companies are being more efficient. they are finding way to make cuts. carol: more efficient him if they are not growing earnings. chris: it has been about cost-cutting. carol: that does not make earnings look great. chris: it helps. carol: these are profit estimates cut more than usual. chris: it is worth showing the revenue line because this is the key. what is going on behind the scenes is the revenue lines come down. there are some estimates revenue growth might be 1.5%. a really low number. that will drive incredible focus on cost. carol: revenues have not been growing. that underscores the weak economic growth in the united states and globally. chris: that is exactly right. do you know what a penny farthing is? consumer is the big wheel in the

u.s. the world is not that. that is the u.s. economy. the stock market is a regular icicle -- bicycle. when one piece is following -- falling, that affects the stock market more than the economy. carol: it is not just the u.s. market. we know developing markets are more important than 10 years ago. we used to be able to put them to the side. we can't anymore. chris: that is 100% right. of 2% orntage of gdp 3%, but global trade is an important function for bilateral and multilateral. when china's lows, other economies slow with it. you say oil has been the biggest correlation. we have had it this year. you say the rebound in oil is a

big reason? chris: as oil has gone lower, it has taken sectors with it. it has become the point of fear for most folks about where global growth is going. it has come down, but oil prices signify there is more help in emerging and commodity-german markets. carol: what about the doha meetings? are you watching closely for what it could mean for oil prices? chris: we are. we have a big call planned for our advisors monday. i think the reality is there's not a lot expected so a surprise could jar markets. we don't see a lot. the supply and demand market does not shape up for a lot of agreement out of this. we will see. carol: what worries you about this market environment? chris: the fact we don't have a lot of valuation support and i think the revenue environment is going to drive pressure around cost. because the accumulation of debt in the financial system at the corporate and national level, we start to run out of options.

the longer we go on with low revenue growth, the more we will see challenging parts of the market. energy. oil prices at $40 into next year. , we know the story around a high-yield energy names. carol: we have seen this cycle before. and we start to see things pick up. any anticipation of that happening? chris: i thought you were going to say the weather. consumers are spending what they earn. wage growth and inflation are the big driver's. if you are not growing at 5% or 6%, you don't need to make the same investments. carol: you can't. chris: a world of cost-cutting is a world of m&a and buybacks. i think if things stay like they are, there will be a bigger story on dividend growth. carol: have a good weekend.

ofthe next 20 minutes "bloomberg markets," brazil moving one step closer to impeaching the president. will the political stalemate come to an end or does she have a shot at holding on? the nasdaq lower for a second day. we talked tech stocks leading and lagging on this friday. shining an zero" light on victims of the alleged pyramid scheme and bill ackman's crusade to short the company. this is "bloomberg markets." ♪

carol: you are watching "bloomberg markets." i am carol massar. a quick check on the markets.

benchmarks appeared to be closing the week in the red. we have seen quite a run-up in equities this week. industrial average is down .2%. nasdaq down eight points. s&p 500, 2079, down about three points. it is time for a look at the biggest business stories in the news. michael saunders will join the bank of england's monetary policy committee. earlier this month, he predicted the u.k. economic expansion will slow to .2% this quarter. the appointment is for three years starting on august 9. it is said to have rejected an initial investment basel from the canadian government designed to shore up the finances as the sides remain at odds over corporate governance according to people familiar with the talks.

the canadian government is looking for a more favorable deal than the one struck by québec to support the jet program. arring a major breakthrough, deal before the annual meeting on april 20 night is said to be unlikely. sun edison is talking with creditors about restructuring is financing. the discussions are ongoing and there is no assurance they will result in a deal. negotiations come as sun edison faces default on at least $1.4 billion in loans and credit facilities. that is your business flash update. oil prices fell for a third day in a row. the drop coming just before major suppliers meet in doha this weekend to discuss an outfit freeze. the team on "what'd you miss?" will be covering all the anticipation. joe weisenthal joins me now. this is a big deal. we have been speculating all week about what is to come.

joe: in january, we first got the headline about saudi arabia and russian agreeing to some sort of oil freeze. this weekend, countries representing 60% of world oil production will meet in doha to discuss formalizing this frees. expectations are not that high going into it. saudi arabia has set a frees to. make much sense if iran is not playing a car. iran has said it does not see much need for one. they are talking. that could perhaps keep a bid on the market. we are seeing oil rally the last couple of weeks. carol: there are big players. chris wolfe said he is watching closely what is going on in oil specifically in terms of shoring up the equity market. some big players will not be there. u.s., china, canada, brazil. they will not be active at the meetings. joe: opec and the main

oil-producing countries have a hard enough time coordinating. it is harder when you have countries like the u.s. which is a gigantic player now thanks to shale. they will not be there. coordinating within opec is tough. it is going to get even harder. carol: we will see what happens. let's talk about brazil. that is a big story as well. the other big story this weekend. their stuff going on in terms of the impeachment of the president. on: 2:00 in the afternoon sunday is when they are expected to hold a vote in the lower house. the pro impeachment side needs a 513 members of the lower house. that will be interesting. my favorite fact is they are delaying a soccer match in brazil and they will have big outdoor screens showing the vote. is a huge national event. i'm sure you have seen

pictures. when they are delaying a soccer howh, you know invested people are in the story. even if they do get 2/3, there is a process. they have the upper house. it has to go to the upper house. we will see if it passes. carol: it is hard to imagine she stays considering they have their worst recession in over a century. they have been beaten up and battered. there has been so much corruption throughout the government. it is hard to imagine her staying in place. funnier things have happened. joe: i would say it is more sad than funny. you look at the people who might replace her. there are not a lot of people perceived as being particularly clean now or avoiding controversy themselves. even if she were to leave, there would still be a mess. that said, we have had this incredible rally across emerging markets this year, including

brazil. it is conceivable regardless of what happens, maybe brazilian markets can continue to rebound. carol: two big stories to watch. thank you. joe weisenthal, cohost of "what'd you miss?" coming up, we are going behind-the-scenes with the director of a new film. here is a clip of "betting on zero." >> i was in an advisory board meeting. i said what do we have to do? i cannot believe the government has not acted. maybe the right thing to do is to cover the position. decide we are interfering because the government is afraid to step in to situation with shortselling. ♪

carol: this iscarol: "bloomberg markets." i am cal massar. stocks slightly in the red but still on track to report weekly

gains for the second time in three weeks. ramy inocencio is standing by with how the options market is handling the action on this friday. managerining me is the cboe in from the chicago. we are down about .25%. for the week, we are up by the best rally since april 1. what are you looking at for guidance? we are looking into moving next week on the earnings front. sunday, coming out of doha, those announcements could influence the market on monday. it will be next week when you look at earnings kicking in. straight when you look at the market pushing around the december highs, it is a rally 2080 level. it is an area critical for the market. if we see some weakness, we could see more selling because

we were unable to take out the december highs. ramy: microsoft is flat for the year. got a question about how it is doing, the d.o.j. will that have any effect on the stock? >> it is possible. , theyou look at apple situation does not appear to have affected the stock. i do not see it impacting the stock in the short-term. longer-term if it gets dragged out, potentially. when you look at microsoft, i don't dig it will impact the stock in the next couple of quarters. ramy: them trying to block authorities from taking customers' e-mails without notification. let's get to your trade. what do you want to do with microsoft? >> next week, we have earnings on thursday. the last couple of earnings announcements, big spikes higher. we have seen microsoft jump higher post earnings

announcement, about 4.8% on the week. i'm looking at a potential trade to get long microsoft. ramy: microsoft does report earnings thursday, april 21. do you think anything is going to sideswipe what they will report next week? what are you expecting for them? revenues from $22 billion. i'm looking at a call spread in microsoft to get long that stock. have some downside risk reduction. but ultimately, i'm looking to play for that pop in the stock post earnings announcement. ramy: thank you. more "bloomberg markets" coming up. ♪

carol: from bloomberg world headquarters in midtown manhattan, you are watching "bloomberg markets" on this friday. i am carol massar. let's start with a check on the headlines.

mark crumpton has more from our news desk. mark: barely 24 hours after an earthquake killed nine people in southern japan, the region has been hit by a more powerful quake. the latest quake had a preliminary magnitude of 7.1. there is no word yet on damage or casualties. japan's meteorological agency lifted the advisory for a tsunami up to three feet east of the epicenter. the news agency says the nuclear reactors are operating normally. michigan governor rick snyder and water experts are proposing the state institute the country's toughest lead testing rules. this comes in the wake of the flint water emergency. other recommendations would require utilities to test all schools and day care centers, not just homes. lead plumbing disclosures would be mandatory in home sales. next tuesday is the new york resident of primary. hillary clinton has a lead against bernie sanders 57% to 40% in the latest nbc news-wall

street journal poll. other surveys have mrs. clinton with a lead ranging from 10 to 13 percentage points. from north carolina, the cancellations keep coming. is cancelingeil stops by two touring shows protesting the state law that limits antidiscrimination protections for the lgbt immunity. other artists who have recently canceled north carolina appearances include bruce -- andteen, riga start, starr. global news. 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. fill your investment bill ackman was certain he could prove it carol: billion our

investment or bill ackman was certain he could prove herbalife was a pyramid scheme. it debuted at the tribeca film festival. the director joins us. why did you make this film? >> i was intrigued by the role of money in american life, in our values, our sense of who we are, and what the american dream is. when i came upon this story, i thought a film that focused on hedge fund billionaire's moral crusade against a company that represented values i hold dear, health, nutrition, and a chance to realize the american dream, being accused of being a pyramid scheme might have surprising elements and high-stakes conflict. those are two elements any documentary maker would be looking for. carol: you spent a lot of time with him. >> we started filming in

november of 2013, 2.5 years ago. carol: what was that like? >> and adventure in many ways. from a documentary some point of view, he is a wonderful subject. to takeiven and willing on long arts to achieve what he was to do. he is articulate. he was open and willing to allow us to come and willing to answer any question i put to him. those are qualities that make for a good documentary subject. carol: you've got bill ackman, the wall street story we have been accessed with. you have the story of the company pushing back and saying here is what is going on. you have other investors pushing back at the same time. and then you have the individuals who are leaving -- believing herbalife can make a better life for them, that they can make a living. you have the main street story going on as well. how do you play with all of that? >> one thing film is a particularly adroit medium at

doing is showing the connections between disparate people and places and drive them together so viewers can see relationships they might not otherwise be able to see. we were able to participate -- get the participation and involvement of a number of former herbalife distributors to bring their stories to life. i spent the better part of two years trying to get herbalife executives and distributors to cooperate. they declined for reasons of their own, which i respect. what i was committed to bringing their perspective to write in the film -- to light in the film and was able to find archival material and from new sources that i think fairly represent their point of view. carol: i'm curious if you went to the film three years ago with a certain perspective and as the story continue to unfold as you shot it and talked with ackman and individuals, if your opinion changed at all. >> i was led by curiosity.

i have never really heard of bill ackman or herbalife. i was familiar with the brand, it is a local soccer team in los angeles. beyond that, it's name is on the jersey of the local soccer team in los angeles. beyond that, i was not terribly aware of either entity. but i was curious about the nature of the conflict. as it evolved and i started working on the film, one thing i was struck by was the intensity of the disagreement between the parties and their willingness to characterize it as a moral matter, a matter of good and evil. as you know, bloomberg has covered this story for a while. these are bitterly contentious combatants. not over at all. that was a challenge. i anticipated this would be resolved before the film came to an end. it became clear fairly early on it was not going to be.

one of the challenges was fighting and ending to the film in a story that did not have an ending. i think we found a satisfying way to do that, something i hope audiences will find satisfying. carol: what will surprise people? >> that the tenor of the debate ,eached this moral pitch characterized as good and evil, and describing armies being aligned on either side. carol: covering it from a business network's perspective, it was fascinating on certain days and kind of mind blowing to have bill ackman come out and carl icahn come out. well respected individuals in the financial community coming out with very strong and differing perspectives. >> and very personal perspectives. it was and remains a very individual issue. from the documentary point of view, very exciting and engaging.

one dimension i did not touch on that i have found to be moving and engaging is the main street dimension if you will. i was drawn to this part in nature of the high-stakes wall street conflict, but in large measure because of the scope of herbalife. it is in 93 countries, 4 million members worldwide. i was drawn to the fact the story would reach a lot of people and might touch a lot of people. interestedbe regardless of the outcome of the story and film. those individual stories, the u.n. mainstreet dimension was something i was surprised by and makes the film unique. carol: i am curious. it is fascinating in the last again to see how many -- in the last decade to see how many documentaries have been made about the financial area. 20 years ago, would this have been as interesting? has something changed since the financial crisis in the general

public's interest in films of this type? >> in our lifetime, i think we have witnessed a massive redistribution of wealth in this country. that has made people that control wealth subjects of scrutiny and interest, and rightly so. carol: and it affects many people or the global economy. >> it affects many people and the global economy. drew me to this film was you had an individual who was a beneficiary of that, a 1% of the 1%, but someone claiming to use that position and power to make a moral stand. he has been criticized. a lot of skepticism has been launched in his direction about the nature of that stand. the film takes a look at that. i did not have any particular conviction one way or the other, but i did have a lot of curiosity about that. part of what drew me to the film was the sense the general

population would share that curiosity. carol: congratulations on the opening. good luck with it. ted braun the director, the movie is "betting on zero." it opened at the tribeca film festival last evening. shares of apple down after reports the company will extend iphone production cuts another three months. will apple face more pressure from the handset business? we will look at that in a moment. as we head to the break, a live look at donald trump speaking at a rally in upstate new york ahead of the new york primary on tuesday. you can watch his remarks on the bloomberg app. "what'd you miss?" will interview republican president candidate ted cruz in syracuse today at 5:00 wall street time. tune into bloomberg television to catch that. this is "bloomberg markets." ♪

carol: this is "bloomberg markets." i am carol massar. it is time for the bloomberg business flash, a look at the biggest business stories in the news now. general motors are recalling pickup trucks for problems with seatbelts. it covers 2014 and 2015 vehicles. g.m. says there have been no reports of crashes or injuries from the seatbelt problem. dealers will repair the vehicle's prior to delivering them to customers. discussedaters creating texting friendly movie theaters to appeal to youngsters. just two days later after backlash on social media, the company says it is leaving the

idea on the cutting room floor. lounging abortus superyacht in the caribbean sounds great. it is hard to relax when you have a hefty engine repair bill and a crew to pay. the annual cost of operating runs about $5 million. ultra wealthy people are choosing to rent instead of buy. large yacht charters rose by 21% last year. that is your business flash update. markets closing in about 17 minutes. abigail doolittle is live at the nasdaq with an update on trading. abigail: looking at the nasdaq closing down slightly right now. on the week, the nasdaq is on pace to finish up on the week by more than 1.5%. the index found its 2016 high midweek. very interesting. over the last four weeks, we are looking at a series of mixed weekly closes. from the end of march, down, up.

the last time we saw this inconsistency was last august and september and may suggest uncertainty on the part of investors moving into earnings season. the worst point drive this week on the nasdaq 100 and worst areentage performer, shares down more than 20% after the hard drive maker cut its fiscal third-quarter revenue and gross margin outlook. pre-announcing. a lot of weakness came in march. the street is bearish. they cut the rating to a hold from buy. you see the sellers broke the stock in january of 2015, sending it into a sharp downtrend. just today, the stock was broken again with fresh lower lows. carol: ugly for seagate. what was the stock that boosted the nasdaq the most this week? abigail: a taut boost is apple -- a top boost is apple.

weekly gains were pared today on a report saying iphone production is expected to decline for a second quarter in a row by 30%. apparently iphone sales are slowing ahead of the new model released later this year. downtrend ofr selling pressure that seems to be pushing apple down in the near term, perhaps suggesting apple could see recent lows closer to 95 dollars or $100. it will be interesting to see how this plays out. carol: thank you so much, abigail doolittle. for perspective on the apple news, let's bring in a technology analyst. a week ago, he was on our air cutting his price target and joins us now in studio. what happened in a week? >> there are always stories. tim cook talked about being cautious about drawing too many conclusions from any and visual story. i think that is true. the nikkei does a decent job but

is not conclusive. there is a cycle issue going on now predominantly in the u.s. market and perhaps elsewhere where people are holding onto phones longer. it iss story is accurate, leading into the second quarter before we have the next big launch of the iphone 7. our era a were on week ago and cut the price target. now you are cutting your estimates on apple. do you feel you are getting more negative on the stock? >> it is a red flag when the operators in the u.s., one of the biggest markets, china is very important for them. if they are providing information indicative of customers holding onto phones longer, that could be a structural change in the market we should watch. when the iphone 7 comes out, people could start upgrading faster. but there is reason to be concerned. other people said it is selling great and everything else.

there were other calls saying they thought the numbers would be better in the june and september quarter. carol: you and i have talked about maybe apple is not the growth company we thought. how do you look at apple? >> we had a phenomenal growth came outm when the 6 because there was a latent demand for the large phones. the last time we were negative was 2013. the stock had difficulties. we think they can return to if you get017 excited about the iphone 7, if that is enough of an incremental improvement to reverse how long people are holding onto their phones. carol: if you look at the technology trends, how much more can you do? it has got to be a big incremental move to say i need a new one. a the problem with that argument is you have heard those

arguments made with past phones. someone comes out with a review that says this is not incremental enough, and then they have a huge quarter because there is latent base that has not upgraded since the 5. carol: i feel like apple is a great technology product. but it is also a brand. people want the latest and greatest from apple. will people get another one? >> i think people have been sticking to the brand in terms of the phone and buying other products as a result. there was a time when apple was doing very well against android. there is the risk, not that an iphone customer switches to android, but maybe there take great from an existing android user starts to slow. carol: we will leave it there. are you going to come back next week with another report? >> hopefully with better news. carol: thank you. coming up, the close of trading

moments away, about 12 minutes away. let's look at the major averages. the dow down about 40 points. nasdaq down about 2% -- .2%. the major equity averages have seen a rally this week. stick around. this is "bloomberg markets." ♪

carol: this is "bloomberg markets." i am carol massar. markets closing in about 10 minutes. ramy inocencio has your market check moments away from the close. ramy: i want to check on apple because we have been watching that since news crossed the tech giant is going to continue its production cuts through the second quarter. this is where apple stands now, near session lows.

about 1.97% down. it has been as low as 2.1% down when the news first hit. it looks like the upgrade cycle is being extended. that is hurting apple. let's look at the majors with several minutes left. s&p 500 down by little more than .1%. the dow is down the most by .2%. we have seen minimal red all day for the s&p. the trading band was only about seven points or so. u.s. factory output fell. oil was lower. majors for the week, let's take a look. they are up for the entire week. nasdaq is the biggest gainer, 1.8%. before the nasdaq as well as the s&p, it is seeing its biggest and best week since april 1. also have to talk about banks because banks today were on the downward trend. banking for the week was on the

upward trend. citibank was up 11%. j.p. morgan and morgan stanley also up. for the day, they were down despite even citibank coming up better than expected. i want to and seagate talk about in terms of the best and worst on the s&p. seagate rallying 60%, the best week since march for. chesapeake said it would retain the $4 billion credit line. carol: thank you so much. let's dig more into what is driving stocks. the big story this week, mike regan is here to wrap it up for us. it was a big week for bank stocks. mike: the clear leaders this don't know if it is surprising, but it is very interesting because earnings are bad for banks right now.

citigroup, bank of america, j.p. morgan, all down in double-digit percentages for the quar ter. at the bottom is a much the earnings-per-share dropped in the first quarter. the blue bar is how much the stock gained in the week. it is this weird inverse correlation. it is hard to explain. carol: is it that they did not come in as bad as everybody thought? mike: they were a little better than expected. banks that have reported beat estimates by about 5%, which is traditionally the range companies beat by. some of the themes out of the conference calls are that everyone is cutting expenses and they have socked away plenty of on loans to losses energy companies. that sort of sets them up for good shape if when things do rebound. oil in the first quarter was

averaging $34 a barrel. it didn't much lower. now it is above $40. some of those reserves could be trendingif oil keeps above the assumptions in the first quarter. it is a lot about how bearish people have gotten on the banks before all of this rebound. carol: very negative leading into this. for some time. it was not just a few months of negativity. it was for a wild. mike: the bank index peaked in july. there was a 30% slide by mid-february. that skepticism got exaggerated. there were a lot of banks trading below book value. value hunting stock pickers, that will make you chomping at the bit to get them. carol: it makes you wonder about the outlook, if what they are doing to improve the bottom line is cutting costs. mike: there is a leap of faith you would have to make that this

poor trading environment that hurt a lot of investment banks, postponed a lot of deals. you have to think, will that turn around? will oil continue to trend higher? there is weakness today, a lot of weakness in oil, and the markets ahead of the delhomme meeting. a little bit of taking money off the table ahead of that. carol: you have a great column on the financial earnings. mike regan, we have got to run. that will do it for this hour of "bloomberg markets." "what'd you miss?" and the market close coming your way. less than four minutes away from the close. for the week overall, we have seen a rally. ♪

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scarlet: u.s. docs posing slightly lower on friday. joe: the question is "what'd you miss?" doha.18 nations head the joe: the political drama that has taken over brazil. we will take the climactic is that climactic turn. citigroup joins us. u.s. rival is slashing cost to ring out profits. we look forward to goleman sack earnings next week. we begin with our market minutes after going down and going up. we close with modest losses. if you look at the performing groups, it is kind of a recap of the first quarter. energy were the biggest laggards. we didn't really do much.