." lisa: welcome to bloomberg world headquarters here in new york. i am lisa abramowicz. and i am david gura. it is time for massive change in brazil and the president is on the verge of impeachment. david: and countries are going accord ine climate paris. we look at the impact of climate change. julie hyman has the latest. julie? julie: we get closer to the close on this friday. investors are still weighing a lot of it news and the dow has

turned higher at this point despite eight -- despite a tough as caterpillar, general electric, microsoft. the nasdaq is taking the biggest tumble of the three major averages. it looks like energy is the best major group at this point. because of financials as well, this is pulling stocks back up. you look at what is going on with energy, oil prices are up by nearly 2%. southwestern energy, one of the energynergies -- companies to report its stock, has gone up. within the financials, we have

also had earning it news, and that includes suntrust and eat tree financial as well, 3.5% -- e-tree financial at 3.5%. david: all right, some gains, but what about the tech stock? have: tech stocks do not an insurmountable problem, but still, it is a pretty tough slog. microsoft, as i mentioned, projections,sts' and visa, you don't think of it as text, it is coming out with earnings, but also saying its earnings have been delayed so that could create problems on the shares. andot facebook, amazon, facebook is a bear market down

20% and there is also concerns from the google results that go through the rest of the companies that rely on advertising. and there is a cyber security company, secureworks, and it sold at $14 per piece. of the them at the low initial range and you can see the shares are not doing much today. much, julie.ou so we have seen some amazing moves in alphabet and microsoft shares. now we go to mark crumpton in our newsroom. mark? mark: thank you, lisa. great britain is trying to decide if it will stay within the european union. obama: i am not coming

here to fix any votes. i am not casting a vote myself. i am offering my opinion. , everybodycracies should want more information, not less. mark: the president also discussed the situation in syria, saying he has been long skeptical of president vladimir putin's actions in the country. he is also, and i am quoting here, "a preeminent murderer of a terrible regime." threeere is also news of -- seven dead in execution-style killings at three homes along the ohio river. police say there is not an active shooter and no arrests have been made. pike county is a predominantly rural, appalachian region east of cincinnati. a lawyer representing the

staffer who set up hillary clinton's e-mail server before she was secretary of state will not testify before congress. this is after news broke that the justice department had offered him immunity. the subway station in the brussels area where a suicide bomber killed more than 30 people will reopen on friday. it has been closed since march. belgian media is saying "a wall of memories has been installed at the station so subway riders can express of their emotions by leaving written messages or drawings." hours a day in more than 250 news bureaus around the world. i am mark crumpton. lisa, david, back to you. david: mark, thank you.

finally returned to global credit markets after a 15 year hiatus. by thee are joined cofounder of jaguar growth partners. it look at brazil, you look at the stock market that has gained 22 percent so far this year. has it gone stoo far? thomas: first of all, nice to see you both. david: nice to see you. know there's a lot of effervescence regarding this, but we believe that independent of what happens, it is going to be a very difficult 2016 and 2017 with negative growth this year minor to flat growth and growth really beginning in brazil in 2018. inid: this is a country

needs of structural reform. what has to happen for brazil's mprove? to ip thomas: we believe that those reforms have to take place in order for brazil to really turn a corner. with the impeachment, that is not a clear path to acquire consensus as we know. latin american consensus takes time. lisa: if you want to take a look inside my terminal, you growth domestic product was -3.8% and the year before was at -3.7%. moving out, where do you think is the brightest spot? thomas: we can look at regionally and within the country. andike the andean sector

hospitality. in brazil, despite the growth or lack of growth that has been flat for the next 12 to 24 months, we see opportunities on the shopping center side of brazil. it is a resilient business. despite overall retail numbers coming down, the shopping center has a cultural foundation in brazil where families really spend their whole days there. they take credit for actually developing the food court in the 70's and exporting that to the united states, but it is a cultural foundation to brazil and therefore, we believe it is very resilient and will make it through these very tough times and then rebound behind. david: looking about real estate, you are most interested in commercial real estate? atmas: we are looking retail, convenience, office development and ownership of vehicles, specialty finance throughout the region,

we have been doing this for 20 years across sectors, so it is familiar territory for us. lisa: so moving from brazil to america's'south second-biggest economy, they just had a bond sale, very well received, and there is a lot of speculation that argentina could gain an investment grade rating within the next few years. do you buy this? do you think this is a bright spot? argentina getting positive right now. it has had all positive signals. thenically, i believe it is largest single bond offering in emerging markets. all of these are very positive. however, there is still serious work to be done. there is going to be emphasis put on energy that is going to have to be absorbed i the population. there is a population that is

not used to absorbing those difficult things. it is going to be choppy for the next year or two years. by no means what has occurred recently could mean this is a clear path to success. the obstaclebout of corruption in the region. you see what is going on in such a macro scale. you see similar investigations in mexico and in latin america. is that something investor kurds -- something investors need to know how to navigate? thomas: they have to be very careful, it has to be very transparent, which we have done. we have limited the risk by limiting at the dealings directly with the government. david: that is not necessary to have more direct dealings with the government? theas: we much prefer

private sector and have established a reputation for doing things the right way and we are requiring our partners to do that. it is very important to us and to our investors. lisa: so go shopping malls. thank you very much, thomas. david: coming up in the next 20 minutes of "bloomberg markets," the yen has fallen more than 20 points today after offering a negative rate on loans. we will take a deeper look on how this would impact markets. as world leaders plan to take action on climate change, we look at which industries are most vulnerable. david: going into break, we look at stocks here as the climate agreement was signed in paris. solar was down about .5%. more "bloomberg markets" after the break. ♪

david: this is bloomberg markets. i am david gura along with lisa abramowicz. the: it is time to look at biggest stories in business right now. puerto ricothat will default. the commonwealth is short on pain its debt. also -- it maymy also default on other debt because it only has $5.6 million as of april 1. david: it looks like the government is getting into insider trading cases. they are working with matt gardner, the ceo of the so-called cartel trader chat room. asy will look into this

early as the summer. they have gotten guilty pleas from five global banks. that is your business flash update. julie hyman has some updates on food and drink. julie: food and drink. lots of updates today. starbucks will start us off. that is the easiest. the company has seen uncharacteristically slowing in the americas, which include the u.s., obviously, slowing to about 7%. if you look across the restaurant universe, this is an enviable number, still, it wasn't quite as quick as analysts were anticipating. -- shares aredown down by 6%. sticking with beverages of a different time, boston beer is another one we're watching. there shares were down 10%. also, its first-quarter numbers were missing estimates.

according to intelligence analysts, the company's new products are not attracting enough drinkers to the brand. samuel adams and angry orchard are sort of the core brands and they did not see as much volume, so the core shipment volume is down 6%. that is the worst showing in six years. also, of course, we are watching mcdonald's today. those shares are unable to maintain a gain at the opening bell today even though mcdonald's is showing still that ons turnaround is firmly track. it is offering all-day breakfast now, and that has helped sales as well. another context is that shares were up 30% last year and they closed at a record as recently as april 19. but between starbucks, mcdonald's, and the other news we are getting on the is at itss today, it

lowest in more than one month's time and obviously, these earnings reports are a big contributor. david: that is julie hyman there at the markets desk. the yen weakened the most in 17 months and there is a possibility that the bank of japan will take it easing measures as early as next week. as wethe yen is now venture into negative rates, people are wondering about it. lisa: will this yen move last? this is what japan wants. they want a weaker yen. let's look at what drove the decline in the end versus the dollar. are rumors orre speculations of that the bank of japan next week will decide to not only cut negative rates ieper into negative territory, but also to try to offset the damage by banks to basically pay

them to make loans. david: something that bloomberg reported this morning. lisa: correct. instead of having a stick for the banks, there is a little bit of a caret -- of a carrot. there is a question of whether deeper negative rates will stimulate borrowers to ask for these loans. that is the big problem. where is this loan demand? it is nearly nonexistent, well, not nonexistent, that it is not in demand. this is something that people are wondering about. will this weakness continue and potentially, will the bank of japan be overly desperate at this point? david: you look at how much the yen has a weekend, it is not extraordinary, but it is quite a person amount here. lisa: first of all, it has had a amazing run. since january 29, when the jacob

-- when the bank of japan made the announcement, i want to take you into my terminal, and this is future inflation expectations in japan. this is looking a five-year forward contracts. in other words, inflation out in the next five years. it has fallen since january 29's announcement from the bank of japan. it is less than two point 5% over -- less than 2.5% over the next decade. this is not confident. this does not show traders that japan will be successful. david: can we predict it period -- a period of predict ability? a volatilecould be time. more volatility is based on the central banks. still ahead on "bloomberg markets," could climate change put more than 42 billion dollars in global financials at risk?

that is just ahead. ♪

lisa: you are watching "bloomberg markets." i am lisa abramowicz along with david gura. more than 100 nations came to paris to sign a pact on climate change. david: the u.s. has set ambitious targets. we are joined by an author who climate change through his company, eco-strategies. as you look at it, how are companies taking the risk now? >> there are two things going on, the risk of climate change and the risk of regulations and they are taking both very seriously, some in some sectors more than others. i don't think there is real

regulations and pressure around carbon. countries around the world agree now that they need to ratify it. the good news is that china is going to ratify by september. there seems to be some urgency in some countries to ratify before the end of the year, before the next election year. they want to kind of get it done under obama. lisa: is there concern about the cost of legislation and this particular bill with respect to implementing more earth-friendly practices or is there concern about global warming and the effect it will have on businesses? andrew: there is really both. ceos are getting this and in some sectors more than others. in food and agriculture, they are seeing the effects of extreme weather. in the meeting in paris, that was when it started it all, sign whatmeeting to they started discussed. i was on stage with the ceo of

kellogg's and he talked very clearly about the risk in their supply change. they are seeing pressure from the risks of routes and storms. they are saying that they cannot grow enough food in the future and there is a real threat to their business and they talk about that way. what are the efforts seen on this kind of efforts -- on this kind of situation? do they hire someone? andrew: that is about corporate sustainability or whatever you want to call it. most large companies now have a sustainability officer of some kind and someone who takes it seriously as a full-time job, but it does need to get in bedded in the product design and the innovations. tot it looks like now is tackle carbon is in large part doing a lot of renewable energy buying and renewing efficiency in a very aggressive way. we are seeing that now. this has skyrocketed, especially

in sectors like tech and a few others. they are buying more gigawatts worth of renewable energy. lisa: how much does this a change what companies have to do? you know, what was signed is a commitment at the country level, and we have no global regulations, right? the u.n. is a voluntary body and is a part of that, so it has to happen at each country level. i think there is going to be some permanent is asian -- some permanence over the next couple of years. there will probably be some cap and trade. china isn't lamenting all full country cap and trade. ofyou cap the supply something, you price it. i think we will see harmonization, but it won't be fully coordinated. countries are going to have to deal with different regimes and different regulations in different regions. and you will see that with the

united states, they don't want 50 state regulations, so that is going to be a nightmare, and instead they are pushing for something more federal. the companies came forward and said yesterday, sign this and we will have more power. obamas the pathway that has pursued. there are big companies saying that they are in support and they want to see it happen -- they. you so muchw, thank for speaking here. we know that this would cost potentially billions of dollars. andrew is joining us here in new york. here is a look at oil today heading for its third straight weekly gain. more coming appear after the break. more coming up here after the break. ♪

show me movies with explosions. show me more like this. show me "previously watched." what's recommended for me.

x1 makes it easy to find what blows you away. call or go online and switch to x1. only with xfinity. headquarters in new york, this is "bloomberg markets." i am david gura.

lisa: and i am lisa abramowicz. with a check on headlines, let's go over to mark crumpton. mark? mark: thank you, lisa. in a meeting today with prime minister of england, david cameron, president obama said britain's attentional exit from the eu could have reverberations across the globe. president obama: this affects our prospects as well. says morepresident progress is needed toward a more lasting cease-fire in syria as. and all tops he was performed today on pop legend, prince. he was found in his suburban compound in minneapolis. investigators say it could take days or weeks before they figure out the cause of death. the artist was 57. and there are worries over the zika virus leading players on nba teams to have concerns about a trip to puerto rico -- major

league baseball to have concerns to puerto rico. in north carolina, three wildfires have burned nearly 17,000 acres. firefighters are hoping they will get some help this weekend from mother nature. there is a chance of rain across the state on friday and along the coast on saturday. the biggest fire has burned 14,000 acres. officials are still trying to determine the cause. global news 24 hours a day powered by our 2400 journalists in more than 200 50 news bureaus around the world. i am mark crumpton. lisa, david, back to you. david: let's take a look at the markets, starting with iron ore. iron ore tumbled. goldman sachs predicted it would fall back in the fourth quarter. it would be a drop of nearly 50% from current levels. oil, on the other hand,

continues to rally up to 9% this week. it is the third straight week since oil has advanced. the market may rebound. lisa: let's stick with oil and get some more insight now. we are joined by david marino. david, is the drop in production createsoil in enough to a change that we have seen recently? itself, people are seeing a drop down, but we realize it is not going to happen. drilling has pulled back steeply. you saw in earnings today they are going to do better in the next quarter. they are not expecting a rebound in their results. started to pay out in production. we are seeing a boost in prices.

the stronger the gasoline demand going into peak driving season, drivers are ramping up, you need more crude, so that is helping. in, ita lot of talk seems, about market rebound. what are the indicators, as you see them, and does that now seem to be happening? definitely. what you see his production drop and demand is not growing as fast as it had last year. next year, it will probably eke close to flat for gasoline demands. so the market will rebound, the question is when and how long it will take. you are really going to see the market flat to almost a slight deficit. lisa: there was a story today's that -- today that there was some changes in the last quarter and it suggests that there will be more bankruptcies. at what price do the bankruptcies sort of stabilize?

what price do these oil producers need? david m.: it depend on where your land is. it varies so much. it is hard to say. at this price, everything is good, we are going to start really. we are saying $50 to $60 for a certain amount of time and that will start bringing the rates back out. others will start to complete wells they have already drilled but haven't finished at a lower price. if you're in some of the best parts, you can start even earlier. david: what is the next event that people in this business are going to be looking towards that could potentially change? david m.: people are looking to get together again in russia to meet and possibly -- [laughter] david m.: i will believe it when i see it. there is going to be a lot of talk going up to it. to seed be interesting that they would be going into an

agreement at this time when they couldn't enter an agreement last time. david: david marino, thank you. and the discussion of minerals by australia was asked manus cranny. we are not expecting that it is going to hold for an extended. of time.ed period things like iron ore and all of these come back down again, but the long-term outlook for commodities looks quite positive. we expect over the long-term it is going to be quite strong and given where we are positioned both in terms of where we sit on the cost curve, we think there is still fantastic opportunity. >> it is interesting what you ore mike, about iron commodities. yet you are saying that do you expect them to come back and your ceo is saying about iron

ore prices. what is going to bring those prices down ben, do you think? mike: i think we need to look at it and at the fundamentals that have driven the recent price run-up. now it isn't just sediment, we have seen uptick in activity in china that has led to more steel demand. there is very low inventories for steel and very low inventories for other products. they need to purchase more fairly quickly and that has brought prices back up. we are going to see more cost and more production through new investments and as that happens, once the mills are through the restocking cycle, we do expect we will see prices come back down again. >> a little bit about your attentions, in the recent past, your business has emphasized oilets in copper and the

and gas sectors and given the opportunities that are out there at the moment, are you tempted to widen the shopping list? the reason that we have talked about copper and oil as the areas we would like to grow is we have seen the fundamentals for those two commodities being the strongest. au've got the decline rate in existing oil production and that means you are going to need a new investment in the markets and copper, by the end of the decade, we expect to see the market in deficit, which should mean higher prices as well. on the m&a front, we have had a long-held strategy that we are sticking to, which is to operate low-cost expendable upstream assets. that has been a winning strategy to date and it will be a winning strategy in the future. needthey do come up, they to compete against internal opportunities to deploy capital. one of the great things but the

company is we have a portfolio of higher returning projects that we can bring forward in due course. m&a orn't categorize acquisitions as being highly likely. we will never say never but it is not highly likely. mike henry from melbourne. coming up next on "bloomberg markets," the presidential candidates have a week of five state primaries to campaign. pay: and uber has agreed to as much as 100 million dollars to drivers in california and massachusetts. will this change employee relations? break,and for we go to microsoft announced that it is getting hit hard today, down 43 points at 5.5%. more "bloomberg markets" after the break. ♪

david: this is bloomberg -- this is "bloomberg markets." i am david gura. general motors boosted compensation for its ceo to $26 million in 2016. most of it was paid in stocks and bonds. this led to a $12 million stock war. there was a one-time grant of two point $2 million in options. pharmaceuticals -- valeant pharmaceuticals

says that they would hire a new joseph papa. cuban born people are allowed to disembark on an island. the first cruise from new york to cuba will happen on may 1. and that is your business flash update. the presidential candidates are --y for primary candidate the presidential candidates are busy for primary contests in five states. wins meanwhile, whoever the nominations, john heilemann joins us now to discuss with more. john. john: aloha. mahalo. lisa: what does this mean for donald trump?

john: i don't know. the donald trump people went down and we don't know if donald trump will get to 1237 delegates. we don't know if he is going to be a more presidential candidate. we don't know why the elites and the establishment terry and -- establishmentarians should be for him rather than against him. there was the last meeting before the convention really for the establishmentarian group, but if there was a contested convention, these people hold his hate in their -- his fate in their hands. a lot of these questions came up and a lot of donald trump people didn't feel compelled to be there. more is going to depend on what happens in these contests in the next six weeks. it is an important thing. members aret of rnc

kind of waiting to see how this thing plays out and they are hopeful that if donald trump gets 21237, he will be more traditional, as paul brandenburg 1237, that gets to he will be a more traditional candidate. these when you look at five states, when you look at these primaries coming up, where does ted cruz stand the best chance of gaining delegates? john: he is going to get wiped out on tuesday so ted cruz is already looking on the next set of contests and the contest beyond that. you ok there? lisa: i'm ok. four/20 anymore, so you don have any excuse to cough anymore. /20 anymore, see you don't have any excuse to cough

anymore. [laughter] john: if you look at where ted cruz has won, he has mostly won in mountain states and great plains states. there is nebraska, south dakota, nebraska, and these are all winner take all states. these are stays where you should do well. indiana is also a state where ted cruz is going to spend a lot of time because he thinks he can win. all of these are states that look pretty good for ted cruz. i am not saying he is going to win them. ted cruz has also abandoned pennsylvania, he is there today, but mostly trying to pick up a few delegates, but he is really looking down the road further. lisa: is ted cruz doing well? john: i don't know. know.t we haven't had a contested convention in 40 years, so i don't know. we have precedent that is meaningful, so you can look at

that. when you look at what hillary clinton and barack obama did with the contested sites, we can say what is going to happen in the next few days. no one knows what they are talking about in a contested convention scenario. there are a lot of people who seem to think that no one is at 1237, and they have a convention that goes to multiple ballo ts, then hopefully someone should be able to run for president this year. if ted cruz has worked a lot of delegates out there who are bound to trump on the first ballot but they are actually ted cruz trojan horses that will likely to switch to ted cruz on the second ballot, he could win it not because he is an establishment favorite, but because he has done a lot of detail and targeted work and what he would say, it plain by the rules, and ted cruz could become the nominee and it is possible that the whole convention could go john

kasich's way. or marco rubio or david gura. who knows? david: let me ask you one last question here looking at bernie sanders in new york. john: with a sledgehammer in one hand and a machete in the other. and a chainsaw in his third hand, although he doesn't have three hands as far as i know. david: we have the brooklyn bernie, and more aggressive campaign, hitting hillary clinton hard on the campaign trail, is this come and gone? john: he hit into her pretty hard last night and took great comfort in joe biden making some comments in "the new york times" or he likes a big, ambitious not aatic nominee, cautious one. arnie sanders sees on that as talking point against hillary clinton. he is still hitting hard on her,

just as hard as he was one week ago. any people say he should change his tone and pipe down, the more he hears that, he gets more loud and he is an irascible guy. lisa: bernie sanders with a sledgehammer. john heilemann -- a machete and a chainsaw. lisa: thank you so much. john heilemann from "with all due respect." let's head to the markets desk now where julie hyman has the latest with the movers on the retail space. julie: i have my machete. it is under my desk right now. actually, i do have a bone arrow at my desk. lisa: whoa. julie: no, nerf, nerf! all right, let's take a look at the markets and the world of shoes, shall we? skechers shares are rising at

27%, eating forecast. is belowd forecast what analysts estimated. analysts over at bb&t say that domestic growth will slow but international growth may come in to replace it. steve madden is another shoemaker we have heard from retail kabul sales. earnings-per-share match estimates and yet the shares are down about 1%. itscompany was cautious for full-year outlook. and then, stepping away from her earnings, we got an analyst note on orange today, and it was a cut to sell. the company is re-focusing its shift to e-commerce. they say it could be harmful to nordstrom and they say turning to profitability is hurting, he nordstrom.rand of finally, sears announced it is planning to close almost 80 stores, 68 kmart's, and most of

these closures will happen in late july. the storefront has closed -- has shrunk dramatically in recent years. you can see the store count here and you have the kmart is in orange and sears is in yellow. you can see from 2012 forward just an enormous decline of this retailer. lisa: thank you so much, julie, and i should mention that sears has a lot of debt. thank you so much. coming up on "bloomberg markets ," uber is going to shell out millions of drivers -- millions of dollars to keep its drivers happy. ♪

lisa: this is "bloomberg markets

." i am lisa abramowicz along with david gura. luber decided to settle with its drivers. david: this is being called a victory for uber. emily chang joins us from san francisco. this is something uber has been dealing with for a long time, it has been piecemeal in places like seattle and other cities. affect uber? emily: this is definitely a win theirer because it means long-term goals may be sustainable. they don't have to worry about worker benefits. it does only apply to workers in california and massachusetts. arizona,t affect florida, and pennsylvania, that many are looking towards these lawsuits as a change.

many people say that their drivers value independence and they say that they are pleased that drivers would remain as independent contractors and not employees. uber says it's drivers appreciate this flexibility, that said, they will have to pay up to $100 million to drivers and give drivers more information around situations, such as when they are barred from using the app. there are going to have to create drivers associations, not in the sense of unionizing, but luber will have to work more closely with drivers to create a more sort of friendly environment. will have to work more closely with drivers to create a more, sort of, friendly environment. as employeess not but as contractors is something i spoke with governor jerry

brown. take a listen to what he told me. and the brown: the apps flexible sharing economy is incredible. there is a point where workers have to have a sense of security, but this new, amazing tryibility, we are going to to provide the benefits of both the old style and the new style flexibility, and it is not going to be all the way one way or all the way the other way. emily: now the one thing that this does change is as you know, you don't have to tip and uber driver, but uber now uber drivers can put signs out that say "tips are appreciated." i know that passengers just love pressing a button and getting in and getting out and not having to worry about it, so it will be interesting to see how many drivers will actually do that. an economics

advantage, and that was sort of the big deal was not having tips included. settled the lawsuit earlier this year but lyft doesn't have as many drivers. here in san francisco, anecdotally, you have heard , sot more people using lyft a lot of passengers are moving is not lyft, but that necessarily being replicated in every market. david: all right, emily, thank you so much. that is emily chang. you can see her today on "bloomberg west" later on today. more "bloomberg markets" after the break. ♪

>> welcome everybody, to bloomberg markets.

carroll: from bloomberg world headquarters in new york city, good afternoon, everybody. i am carol massar. a result we are watching -- fed day fast and approaching. will global headwinds and market volatility upset the rate hike thailand. mcdonald's reported better-than-expected earnings thanks to holiday breakfast, but how long can value meal sustained a comeback? putting a lid on wall street pay it curb measure -- will excessive risk-taking in the financial industry? we are just one hour away from the close of trading. let's head to the market desk where really in a sense he'll has the latest -- randy in a sense he'll has the latest. : wee