stocks extending their losses today with fears of slowing mobile growth and equities lower everywhere from europe to developing nations. joe: the question is "what'd you miss?" alix: the dollar held on to gains for a second day after falling joe: to its lowest in almost a year. joe:and we are about three quarters of the way through earnings seasons. tesla and whole foods due to report earnings in this hour. alix: what does the u.s. economy look like in the shape of a trump presidency? guest have a very special joining us, all of her run it is our cohost for the hour. we are going to begin with the market minutes. another selloff for stocks. it was kind of across the board. allhad energy, financials,

leading the way lower. s&p financial stocks, they were at a two week low. real leumi day and we had some eco-data that was bumpy and did not help to provide anything. joe: it was ugly overseas and asia-pacific was down. just once again, risk off, not that dramatic but not that great. oliver: it is a smooth ride up and once you get to 2100, things start to get shaky. a couple of sectors i think are interesting today -- you have the strength relative to the rest of the market -- these are three of the groups that help keep the market afloat year to date. thefact that we still have

s&p losing on a day, that has only happened twice. bondon the government side, we saw them going out on their lows of the day. 1.77. year yield at one thing i want to draw your attention to is the turkish lira. you can see it getting obliterated. the dollar strengthening, clinicalmashed on turmoil in turkey as the president and prime minister are at odds with each other. a good moment for emerging markets with the turkish lira really getting hammered. the dollar finally catching a little strength today. pretty much up against all currencies today. the story has mostly been dollar weakness but people were buying

dollars amid the risk off sentiment. alix: the action really was not in the actual commodity, it was the stock. stock down the most in four years with gold production falling 11%. down over 6%. company for the venture that killed as many as 19 people. a similar story in the oil market -- oil stocks got killed. anadarko off 6%. the move was in the underlying commodity stocks. dive into take a deep the bloomberg -- you can find all of the charts at the bottom of your screen. joe: i'm looking at some positive data. we have this negative market sentiment, but there was some

positive economic data this morning in the isam data. screen,o lines on the this is the employment sub index and the manufacturing index, both ticking up this month, both hitting their highs of the year and we have this jobs report coming out on friday and four april, these surveys showed an these employment surveys, so hopefully that translates to some good news. at ar: i want to look longer term trend that might be in focus today. is what investors are prioritizing in terms of how companies use their cash. we are looking at why backs, dividends and companies. these are indexes that spend the most money and there has been an interesting shift here twice in

the past year. the buybacks started off very strong here in 2014. they were outperforming the market until last year when things started to change. then we saw strength in companies with companies getting stretched on the margins and they need to figure out what to do besides using own -- using their own money to buy back shares. we've seen a clear shift in dividend related shares. alix: we have tesla earnings crossing. looks like they did a little better than estimates. a loss of $.57 a share. gross margin, which is the number everyone focuses on because tesla has a hard time being profitable, gross margins coming in a bit higher, 22%. expectations were for just under 21%.

car deliveries and car reductions are they numbers you have to watch with tesla. comingquarter production in at 20,000 vehicles, reaffirming its delivery schedule for this year of between 80,000 and 90,000 deliveries for this year. at $217 million. it's cash flows provided by operating activities is -$249 it is forecasting higher gross margins in 2017 on the model ask. it is looking to produce 20,000 vehicles in the second order and looking at a full year delivery that is 80,000 to 90,000 a year. nine -- upock is up after hours but it fell after

the bloomberg news scoop earlier in the day about it reduction executives leaving the company. while it is rallying nicely, that is after a day's dollars lee in the red. one of the vps leaving was one of the guys you ran operations for tesla, so the worry is to is going to pull off this model three execution? tesla looking at growth margins of 25% by the end of the year and for the model s to approach 30% by the end of the year. in: for more, let's bring nathan white. thank you for joining us. what is your reaction on these tesla earnings? the market seems to like it. is this a sign they are on track with their plans? relates tohink it production and future deliveries

and every thing i have seen looks like they are maintaining their confidence for 2016. raising itsmpany is full-year capex, about 50% ofher than its previous view 1.5 million dollars. where they going to get that money? -- $1.5 billion. nathan: they have talked about potential assets and leases, but they may take advantage of this timing. oliver: i'm looking at previous earnings related moves here. it has not seen a lot of big post earnings moves. what is standing out on a positive note? nathan: a lot of that is just the reaction from the day today. just the confidence for the full-year delivery. it indicates no major production

problems with the u.s. negativee cash flow $466.5 million. this is the problem with tesla. you might like the car and won it and think that it is cool but their cash flow is negative almost $500 million. you said yourself they would have to perhaps issue more equities. what is the turning point going to have to be for them? nathan: that's the problem and i don't see a turning point as a move to lower and lower gross margin vehicles. between 30,000n dollars and $40,000 per unit of capacity. foresla wants capacity 100,000 model brees, you're talking between $3 billion and five lien dollars just on the manufacturing size. the rally has abated a

little bit. tope's news today that production executives are leaving the company. does that give you anxiety about the ability for tesla to hit its rollout plan? nathan: elon musk is known for cleaning house. we saw that following issues in china. if you want to know or tesla is struggling, follow the turnover. a lot of manufacturing related turnover. what is the key thing to keep an eye on what the company? : the order conversion rate on the model x. 10 12000at should have and line have already received their vehicles. thank you for the

instant reaction. alix: we have earnings coming out from whole foods crossing. the company coming in a little side, $.44e revenue a share. eps was above estimates. one number catching my eye is calm sales down 3%. the estimates were down 2%. nevertheless, easy after-hours trading, the stock is up and a company says they are expecting sales growth up to 3%. grow in the middle of competition while it keeps cutting costs and ramping up promotion and marketing? customers were not buying into the promotion and that was hurting sales. down for thehat quarter by about 3%, but the market seems to like what they see. it does see a decline in full-year operating margins by

about 70 basis points. the last stock is 21st century fox -- earnings coming in at $.37, tang on estimates and terms of the segment revenue, it's a mix. it's cable programming revenue coming in better than estimated. tv is hang in line with estimates. film and entertainment a touch light. i bring this up because "dead pool" was amazing and awesome it was going to be a killer for their film and entertainment unit, nonetheless coming in a touch light there. that stock popping and after-hours. one thing worth noting on whole foods, it fell to its lowest level since august of 2011, so this rally is coming from a very depressed rally -- a depressed level. coming up, the chief international economist at

deutsche bank joins us for an extended sit down on inflation, the labor market, and jobs. ♪

mark: i'm mark crumpton. with get to first word news. a federal judge says he may order hillary clinton to testify under oath about whether she used a private e-mail server at country state to evade public records disclosures. the judge signed an order

granting a request from the conservative group, judicial watch, it wants to question state department staffers. lawsuits three dozen have been filed seeking copies of government records relating to her time at the state department. john kasich, the last man standing in donald trump's half to the republican presidential nomination will and his campaign later today, making mr. trump the parties present of nominee. people close to the campaign tell bloomberg news the ohio suspend hisl campaign at 5 p.m. local time in columbus. a huge wildfire has destroyed entire neighborhoods and forced the evacuation of fort mcmurray, a city with a population of 80,000 is home to the alberto oilsands, the third-largest reserves of oil in the world behind saudi arabia and venezuela.

the prime minister called the destruction absolutely devastating. there have been no reports of injuries or fatalities. global news 24 hours a day howard by our 2400 journalists in more than 150 news euros around the world. -- news bureaus around the world. alix: investors are starting to bet on rising inflation. demand for inflation for tech insecurities is soaring. have risen,anding meaning there is more demand and that etf is headed to its best performance in 12 years. joe: here to help us sort through the data is torsten he has been talking about the potential for higher inflation for a while. thank you for joining us. there's been hard time inflation anyone that could ever come again, so why are people starting to place that's on higher inflation? torsten: investors are voting

with their feet and there are several reasons for this. one reason it has been taking off significantly is that the dollar is going down. when the dollar goes down, there's upward pressure on inflation. we are the fed has said close to full employment. andfed keeps saying that they are trying to move rates up because they are worried about more coming. the second reason i think they're worried about piling in is to say maybe we should protect ourselves. the final thing is you see anecdotal evidence of wages going up and all of this combined, it makes sense more investors start to worry about the inflation outlook. wages is noink important topic as it relates to companies. numbers come out with productivity where we have week productivity and labor costs

rising. i wonder what that means for companies in particular and at what point in wages do we see pain on the corporate side? one way to think about is higher costs and it's bad for profit margins and companies. the tug-of-war here is between how much are wages growing up and at the moment, most measures of wages are going up to percent or 3%. yet more reasons to expect they have reversed the trend from last year and you should expect to see solid profit margins. i have a chart that i used to keep track of various inflation metrics -- cpi services, core cpi -- they had been trending up for several months and in the last month, they all took a dip back. do you think the trend is solidly higher for inflation?

is an important issue. the fed probably looked at your job and said we don't have to spend that much of a signal yet. we still have a little more room, so why don't we wait a little longer and get employment up even higher? the fed is still telling us we are near full employment and that's important. with the dollar falling and getting close to full employment , i would start to get more worried if i were the fed. alix: if the fed let's inflation run high, do they have two make up for it down the road? torsten: this is the key question. if the fed says we are not going to do anything and allow them to overshoot, will they just say that's right and we will wait for the fed or will they say the fed is behind the curve and maybe we need to trade rates higher as a result of inflation overshooting? alix: we're going to get a

preview of the u.s. jobs report on friday. we'll be right back on the other side of the break. ♪

alix: "what'd you miss?" day friday and today's 80 p report was pretty soft with payrolls showing u.s. companies hired workers at the slowest pace in three years and decline was rod based. is still withlock us. what is it going to be? torsten: we are 175 on the headline -- not too different from adp. let's not make a big deal out of fairly solid as long as we are above 80,000, we are still running down the

unemployment rate, so we should be ok. we have a slew of important numbers coming up, but between now and june, is there anything that would make said funds futures jump up? a lot of clients are asking how the fed hike in june, given the expectations of the moment? the data could change the tone and change the probability of a rate hike. the data comes in stronger and any probability of a rate hike go up. has basically made sure the door is still open if the data comes out better than expected at the moment. citigroup had a note saying anything over 180,000 on right is good enough to the fed to pull the trigger. i think that is out of consensus. think of what we went through in

january and february. now think about what economic data has done. -- data has been important has been performing quite well despite this turbulence. joe: this is an interesting chart we have. show us what we are looking at. torsten: the orange line is the medium weight occupation. this is total growth since 2010 in the first point is the vast majority of jobs created through this economy are high wage occupation. what is really good is the arrows indicate over the last year or so, we've seen more growth and low and middle income jobs. particularly in retail and services, we've seen a significant amount of job growth. goes to your point

about corporate margins. it's going to end up hurting corporate profits at the end of the day. at dividendsu look and buybacks, they are getting stretched. we had some recent data from manufacturing and it's important when it comes to companies because you have this delineation between services and what is happening there where there is strength and manufacturing is slowing down. a lot of people think it's not important. in particular, when the dollar started going up, this means high productivity sectors meeting energy and manufacturing, they started shipping low because we were hit by a higher dollar and lower oil. the productivity level was low, so one important reason the kansas city fed had a paper

pointing this out is we've had manufacturing which is done poorly m&a factoring sector is doing rather well and that's why we see growth -- you're not quite seeing the growth we would like to. i would like to talk about the fed and inflation running hot. goldman came out saying they were skeptical the fed would let inflation run hot. but not in 2016. you think the fed might let it go for a while? torsten: the inflation rate of two is not as shielding. it's just the symmetrical target we have. it's been below that target for six or seven years now. from a dual mandate perspective, we are close to full employment but definitely getting close. on friday.

right back. ♪

show me movies with romance. show me more like this. show me "previously watched." what's recommended for me. x1 makes it easy to find what you love. call or go online and switch to x1. only with xfinity. show show me more like this. s. 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. crumpton.mark let's get to first word news. it is the end of the line for republican presidential candidate, john kasich. two people close to the campaign say the ohio governor will end his bid for the white house just one day after the exit of ted cruz and cements donald trump as the gop standard bearer and sets up an almost certain match against hillary clinton in november. kasich will speak in about half an hour in columbus. president obama is in flint, michigan. he is addressing about a thousand people at a local high school. the president is there to meet

with governor rick snyder and talk about the lead contaminated water crisis. did drink some of the filtered local water saying that the water is drinkable but that it does not negate the need to replace some of these types. the president again speaking at the high school. michigan declared an emergency four months ago because of widespread contamination in the water. to state officials and one city official has been charged in the case. the environmental protection agency is accused of being 30 and handling waste water from oil and gas exploration. environmental groups are seeking a measure to compel the epa to regulate the disposal and say it has become more acute with the prevalence of fracking and increased earthquake activity. u.s. officials say an agreement has been reached to extend a fragile cease-fire to the northern city of aleppo.

a deal was reached yesterday and took effect at midnight. they say they have seen a decrease in violence since then but knowledge that while asians persist in some areas. dayal news 24 hours a powered by our 2400 journalists in more than 150 news euros around the world. -- news bureaus around the world. today, basically read across the board. the s&p down and nasdaq little worse. not very impressive in emerging markets. after the bell, late in the day, we got news out of turkey with ongoing political strife there. a red day all around. oliver: the nasdaq down and the russell small cap down even more. though oilm oil even

pulled higher, energy stocks never quite rebounded. and the winners were utilities and staples, the safety areas. alix: it was a crazy earnings day today after the bell. you have tesla reaffirming its delivery forecast and accelerating its assembly out but, pulling ahead by two years its plan to produce 500,000 cars a year. you have kraft to beating estimates on the revenue side as well as the earnings side. full foods topping estimates with that stock higher, held by cost cutting measures. trip advisor missing on estimates and second-quarter it -- prettyfit ugly fat stock, but on the whole, positive earnings with tesla and whole foods higher in after-hours.

"what'd you miss?" senator cruz and governor kasich are out and ted -- and donald trump is clawing his way closer to the nomination. ofs shows the 90 day history betting as trump becomes the nominee and his odds have just risen to above 40%. that's a remarkable chart. some gamblers think it's as high as 40%. what would a trump presidency mean for the u.s. economy? the seniornow is vice president and head of knowncy -- trump is not for his specific policy ideas. he seems to be all over the map frequently. -- what ao you see as trump presidency look like? toit's kind of hard understand because i'm not sure

if he has articulated a coherent land. first is his international plan and the idea that the poor u.s. gets taken advantage of by the small companies -- the small countries we trade with. u.s. is being taken advantage of, so some people think he will try to abdicate some of our treaties. the thing about the u.s. as we invest some money in foreign countries. foreign investors invest much more here. so there's a world of going back to anti-free trade and the u.s. would lose out because foreigners have much more here than we do there. the amazing thing is the policy mix. this could apply to hillary clinton or bernie sanders -- the best policy mix for the currency is tight monetary policy and loose fiscal policy. assuming trump is exaggerating when he says he would fire janet yellen -- i would assume the

federal reserve is in the middle of gradual normalization of monetary policy. fiscal policy is the moving element and it looks like it would be more accommodative under a trump presidency. you talk about policy, i it's interesting because trump has said he likes her but he will probably remove her. how a currency standpoint, important is this in terms of what would happen if trump is elected? a lot of things have a dollar impact on s&p right now. this year, the correlation between the dollar relative to its peers around the world got very tight about a month ago where you could see the impact when the dollar was reacting very closely with that. how does this affect the yellen

decision and what does it mean for markets around the world? >> i think the only way it can affect it is this meeting right before the election. that's the only meeting that will not see a change in policy. the chance of a june hike has been reduced with the flaring up of international issues again. i'd don't think in the short run that whoever gets elected, i'm not sure it is going to affect the dollar. showing aese holes 42% chance of a trump victory, international and domestic investors seem to be playing it down. let's say at some point, people start to think he has a shot to win. maybe the polls are getting tighter. where would you expect that to show up if investors become anxious about a trump

presidency? seee would you start to stresses form? they have this referendum at the end of june and sterling has underperformed. if you tell me a month from now 60%, i would up imagine that they suffered for it. whether they want to reduce assets in the u.s., all different ways that could weigh in on the dollar. oliver: is it mostly just about the uncertainty? is that why they are not reacting that much? guest: it's not so much the uncertainty. i think people feel they would not -- that he would not get the republican nomination but now it looks like he's going to get the republican nomination. roughly speaking, a third of the voters are minorities.

the democrats had to get 80% of the minority vote. two thirds of the voters are white and together, 80% of the minority vote would give the democrats 52%. joe: on the trade front, is there any concern that trump can't win or forces hillary clinton to take a protectionist stance? guest: you don't have to blame trump for it. i'm on my way to asia tomorrow and a big concern for a lot of our asian clients is what about the transpacific ship? maybe a worried that lame duck congress could pass this, especially of trump wins and they don't think they could pass it otherwise. go without't let you asking about your dollar call. how low does it go? guest: i think we're close to the bottom.

we've seen huge selloff since early january and i've seen some signs with the canadian dollar with a big downtrend today. i think it's close to the point where we need to get little more data, but we will see the u.s. economy getting better traction q2 gdp is tracking for and that will help ease the concern about the domestic economy at the same time international problems flare up again. you very much. we will have you back to track this story. alix: we do have some breaking tribune publishing board is unanimously reject ring the net cost unsolicited proposal. love more on this after the break, calling the proposal opportunistic and tribune is rejecting the proposal. ♪

a breakingwing up on news -- the tribune publishing board is rejecting the net's take over offer. tribune publishing calling the proposal opportunistic and says it understates the company's value. it will instead be proceeding with it standalone plan. time now for the bloomberg business flash, a look at the biggest business news right now. higherof tesla climbing post-market after the electric car company reported a smaller than projected loss. adjusted its loss, three cents better than estimated.

whole foods reporting quarterly earnings that beat estimates. cost-cutting measures help to cushion the blow. whole foods trying to shed its whole paycheck image, reducing expensive to cut prices -- expenses to cut prices. sales showed a modest gain. estimatesry fox says were mad. from dead pooles -- fox benefited from the cable system and affiliates pay as well as higher ad sales driven by fox news. that is the bloomberg business flash. joe: "what'd you miss?" again, it's going to be an interesting summer in the eu. greece debating its bailout. what's the big story we should

be a paying attention to? joining me is megan greene, with investment officer man u light management. every summer, we have new stuff. it's a conspiracy to keep us from going on holiday. with the referendum, the spanish election will be held a few days later and greece has never been fixed. those negotiations are going to go to the wall. joe: is it going to be the same thing -- go right to the end? guest: i think they will do like last summer and the greek government will have to cave and they will come up with something, but they will engage a lot of wrinkles -- a lot of brinksmanship. one of the new wildcards is

the refugee crisis. how do you see that affect things this summer? guest: i think in the short-term, the deal has been effective and has slowed down the refugees coming, but i think it will only be affect even the short term. we are already seeing more refugees come through libya. unfortunately, that is far more refugees will find a way, so this is a temporary fix. turkey and greece can't implement their sides of the bargain, so it will unravel. the macro trend has been the collapse and support for mainstream parties everywhere. some countries have seen a big surge in the are right and some have seen a big surge in the far left, but this is not totally new. is it different this time? could it go back to the

mainstream parties rican selling power or does this represent a genuinely new phase in european history? see the rise of extreme parties roughly every 10 years in europe. that coincides with financial cycles. i think financial cycles are broken. particularly with liquidity in the system. if you think we are not going to have this 10 year cycle, i think extreme parties are here to say. -- here to stay. using the socialist start to fall apart in germany and in italy. no matter what, the political center is not holding. germany, there seems to be s rising andreme angela merkel is still a popular leader.

how stable is her position? guest: i think her position as stable until she doesn't want it anymore. main now, the two coalition partners make up about 50% of the support. that's a small fraction of what they used to get. seeing the center parties diminish and the social democrats are really bearing the brunt of it. is a trend that is here to stay. joe: so she is strong and can stay as chancellor but we are still seeing some erosion? guest: she's gone from stratospheric levels of popularity but she's decimated her competition, so there is no alternative at the moment. joe: thank you very much for joining us. coming up, "kung fu panda"

was a franchise that made dreamworks and attractive option for comcast. we will tell you what maybe $4 billion deal possible. ♪

alix: "what'd you miss?" be the is setting up to next disney. they announce the $4 billion deal for dreamworks, which reported earnings after the closing bell on thursday. dreamworks is the focus of today's the numbers don't lie. works out to twice the multiple disney paid for lucasfilms. it's closer to disney's $7

billion deal for pixar with the their focus ony animation and the genre makes a profit. you have animated films like shrek with the highest profit 2005 2among elms from 2014. offers animation, they exposure to stable elevation production and new media business. dreamworks has doubled down on non-film sales to help drive this revenue growth. this, dreamworks has focused on putting out only to films a year in theaters. this quarter will include one of panda three" and $370 million internationally. that's one big reason comcast is drawn to dreamworks.

as you can see here, china box office has been growing steadier and expects to become the number one movie market in 2017. we will be keep in an ion all of its businesses when dreamworks reports its earnings after the closing bell thursday. joe: earlier today, bloomberg talked with cbs ceo les moonves is about buying dreamworks. they made an extraordinarily smart deal. they are a big feature film company, they are in the it mayon business, so it not have been a great fit for cbs. we are still primarily a television company.

are we looking to expand in content areas, absolutely. discussning us to dreamworks is the bloomberg director, paul sweeney. a huge jump up in the stock of dreamworks, already up to an elevated level. aboutxactly is so great this deal? paul: when one comes up on the market, you have to pay a big price because there are not lot out there. dreamworks is a fantastic studio, arguably the best animation studio in hollywood. jeffrey katzenberg, the founder of dreamworks has been shopping this company for the last couple of years and it has become clear that is a small, standalone studio, it is hard to compete in a global media business.

alix: what happens to jeffrey katzenberg? this is his a.b.. what does he do? : i don't think there's a roll here for him. he will take his money and his other business dealings and i suspect he will be a significant player in hollywood. he's the content creator and storyteller and there are a lot of studios that would like to do business with them. i suspect we will see them up on the screen going forward. alix: we all thought media stocks were dead after last summer. paul: they had a slap back to a reasonable level. you mentioned animation -- why is the animation aspect -- does it justify higher valuations? profitability is usually very good, among the highest profit for genres of

movies out there. the flipside is they are expensive to produce. typically dreamworks will spend about $135 million making a movie. it is not for the faint of heart but if you have a proven skill as a storyteller and animator, there is a lot of success there and we have seen other studios get into the animation business. you, i'll sweeney from bloomberg intelligence. alix: you can find the full analysis on the terminal. coming up next, what you cannot mix -- we cannot miss tomorrow. ♪

alix: i'm alix steel "what'd you miss?" joe: u.k. services for april comes out tomorrow.

oliver: and don't miss the initial jobless claims tomorrow. alix: and chesapeake earnings is going to be big. don't miss

due respect to all of that bad blood, what a difference a single day makes. mr. trump: he cannot do it. he's a joker. breaking tonight, senator ted cruz just ended his campaign for president. mr. trump: i don't know if he likes me or doesn't like me, but he's one hell of a competitor. he is a tough, smart guy.