on bloomberg television. betty: we are to take you from new york, to london, to hong kong. here is what we are watching. cutting deep after posting its second quarterly losses. shares are jumping as much as 6.4%. the ceo may wind down unwanted assets at a faster pace than previously rejected. mark: disney reporting after that bell. adjusted earnings of $1.40 a share. couldadvertising revenue be down compared to one year ago. we will get a preview, including who could be waiting in the wings to succeed bob iger. betty: i we facing a vortex of negative headlines?

that sounds ominous. this could send u.s. stocks plummeting. we look at the statement made on bloomberg television by a bank of america strategist. vortex of negative headlines? is julie hyman at the center of this? julie? >> not yet, but she said it is coming. maybe in june. the sentiment is so negative. even as stocks go higher. it is not surprising you are hearing about the vortex of negative headlines to come or people are betting on increasing volatility. certainly, a lot of investors are expect being it. -- expecting it. we saw a rebound that was yesterday, but is picking up. we have a gain of 152 points.

it is a broad-based rally. the financials are leading the gains we are seeing. you can see what we look at is mostly green, except a subsector within technology. , along withining all of the main groups of the s&p 500 are higher. oil prices, we see energy higher . energy, oil prices, as been bouncing around. and while ago.p there were not specific headlines that seemed to be spurring it. there are concerns over a supply disruption in libya and nigeria. it is coinciding with the .ownward leg in the u.s. dollar we saw a downward move in that index at the same time we saw an upward move in oil prices. i do not know if we have the

dollar index to look at here you have the downward leg coinciding with the upward leg of oil. not seem to be any headlines, but you saw them moving together. is drivingorate news the s&p higher, and 2 stocks are contributing? julie: one of them is amazon, which is gaining. in point terms it is the biggest contributor to the rally, up 3%. same-store sales for the online retailers, 12.9% was amazon's comparable sales growth. it was a slow down, but outpacing its peers. amazon will let people post videos and earn money from the apps, much like you to. allergan, the maker of botox and buy backgs, plans to as much as $10 million of its stock after it completes its

sale. no shares are higher than 5% here if you want to track the progress you can look at cacf on the bloomberg purity can track m&a. the m&a.n track he was the proposal of this acquisition last july. you can expect the completion in june. mark? mark: the european stoxx 600 is gaining by eight tense of 1%. yesterday, we saw a 6.6% decline for metals and mining companies. they are rebounding, one third. the biggest drop for the industry group since march. every single sector is rising today except for technology. and real estate. we have a banking earnings fast for you today.

let's start with credits. smaller than expected first-quarter. e confidence in delivering planned cost cuts. assets at ang down faster pace than projected. since he came on board as chief executive last year, betty, ubs shares are down 23%. credit suisse up 41% lower. that is a lovely stat. earnings fast continues. italy's biggest bank reporting stronger than expected first quarters. that is the italian lender. matixis is the french lender. market turmoil curbing lenders. asset managing businesses since february 9 of win both banks

failed to multi-year lows. neckare nac -- neck and falling by 5%. , the biggest dutch lender is reported 29% in first quarter profits. growing beating regulatory expenses. also a loss of financial markets divisions. shares up by 2.3%. what could be better? banks, banks, banks, banks, and banks. betty: i agree. a lot rolling in on the financial sector. vonnie quinn has more. vonnie: president obama will be the first sitting president to visit one of the cities where the u.s. dropped an atomic bomb. he will travel to hiroshima. in the past there has been concerned that a presidential

visit would suggest the u.s. was apologizing. north korea and staged a parade to mark the end of the first end of the ruling party in four decades. -un looks on. they gave him in selling more loyalists in the ruling ranks. links to his father's rule were perched. and isis militant and three others was killed when their vehicle was struck last friday. appeared in islamic state execution videos. a reversal in the middle of the night that brazil's impeachment process on track. the head of the lower house changed his mind and reversed impeachment proceedings against dilma rousseff. it is now of to the brazilian senate to- brazilian

put dilma rousseff on trial. the first group could reach of 29,000 foot summit as early as thursday. the attempts come after two years of disasters. an avalanche triggered by an earthquake killed 19 climbers and injured 61 last year. in 2014, 16 sure but guides were killed by an avalanche above the base camp. news, 24 hours a day, powered by our journalists. i am vonnie quinn. --ty: nejra getting bac getting back to the markets and the warning of vortex of negative headlines. risee vix, which measures leanings in u.s. shares hit its lowest levels of the year. ride thisfor a bumpy summer. is theel like june

vortex of negative headlines. you have the brexit, there is a 45% chance of this happening. you have the potential for the fed to hike rates. that getshe meeting everyone nervous. we are closer and closer to what could be the most polarized election that we have seen in our careers. betty: all good points. it is warned that that will push the s&p to 1850, back to the lows we saw in february. for more we are joined by the chief market strategist at oppenheimer. he had 2300 at the end of the year, among the highest on wall street. do you disagree wholeheartedly with her? >> we could always have volatility at any point and come back into the market. when you're dealing with the main topics that the

market deals with, you have a chance of a piece of economic data. betty: she is talking about a perfect storm. john: i don't think we will get that. the biggest problem with the brexit is that it is symptomatic of populist movements around the world, which would be expensive to the population and businesses of the country. i also think that it will not raise in june, because it does not want -- i don't think they will. to looking at 25 blips formalize it in december to remind us we are in normalization. i think we have good prospects to see as things get better. mark: let's talk about trailing pe, something you have referred to. is over three years.

it shows every time trailing pe above.times or just it faces resistance. why is that? john: a good question. in some ways, there is a collective memory in the market on valuation that just keeps coming back over and over. any time we find the market gets up 19 times, nervousness seeps in and it becomes more vulnerable to correction or even haircut coulden a we have been bumping against heaven's door at the 19th multiple for a while. we would be prone to see profit taking after a fabulous runoff from february to just recently in the markets. today, it looks like we might reenter a chapter. valuation is key. valuation and economics drives

the markets and returns. we're hoping to see dollar remains moderating to weakening. good for future quarters in terms of reporting seasons. in the second quarter we may get a boost. overall, perhaps we can see the multiple come down and stocks go up. .ark: the flipside is the euro i was fascinated in your notes that you wrote that the relative strength of the euro right now speaks volumes about its future. is this telling us we will have to get used to a stronger euro? is that palatable for european companies and the ecb? john: it's relative strength is what we would say. we have been proponents of the euro through the 2010-2012 -- all of the problems europe has been dealing with. it is a great reserve currency

with great support. when you consider the euro did not get to the parity point people were looking for last year, we think in an area of $1.13 to $1.16, you are looking good on the euro. your competitive with the dollar, but the dollar gets a break. it is more fair for multinationals on both sides. betty: i want to get back to talking about the idea that we are in a calm before the storm. mark was showing you the trailing pe chart. i want to bring up another chart . you can see on the right, viewers on your screen -- it shows the average s&p targets among the strategists. it is resting at 21.52. what is interesting is how they have come down.

you can see the blue line has come down as the markets are going up. what is that telling you? --n: it is contrar contrarian. the markets have shown resilience in the face of last august. resilience in the face of january where we saw the markets come back nicely from february forward. we are glad we did not lower our targets. we stuck with the 2300, the second highest on the screen. we will take it that way. betty: i will drink what you are drinking. john, thank you. the chief market strategist at .ppenheimer corporate movers, the shares of solar city plunging over concerns of a strategy shift. mark: tomorrow, do not miss an interview with the carlyle

co-chief executive and cofounder. david rubenstein will join us from the sky bridge alternative conference in las vegas starting eastern 3:00 london time on wednesday. ♪

mark: live from london and new york, i am mark barton. betty: i am betty liu. a look at the biggest business stories. botox maker allergan will buy back $10 million in shares in the wake of its failed union with pfizer. dropped sinces pfizer walked away. allergan is focusing on completing the $40 million sale of its generic business.

volkswagen closing in on a fix for the tainted diesel engines in the u.s. they say the fix would resolve part of the testing scandal and reduce the risk of an expensive buyback program. bloomberg business flash. let's go to the market desk where julie hyman is looking at the corporate movers. julie: a lot of them having to do with earnings. : minera earnings after the close of trading. --: minera earnings after the close of trading's pretty can see shares plunging by 12%. by 7%.ore sales fell old navy was down 10% incomparable terms in april, 2.6% increase is what analysts estimated. i used our bloomberg intelligence tools to look at comparable sales for the three chains, banana republic in blue

am in orange, gap in white. old navy was the only one holding of well for a while. that has changed as the lowest price of the three chains has turned to the downside. speaking of declines, solar city shares almost 25% as the company pulled back its installation time ins for the third seven months, and announced a new loan program for residential solar customers. it led one estimate to say "what is solar city?" confusing. is you are changing your business model, what are you doing as the company has introduced different finance packages for customers as it has changed the installation forecast. that confusion is reflected to what the shares are doing. the ceo of the company says it

to makewn to trying solar power accessible for customers, but the company has been experimenting with figuring out the best way to do that, and it is not welcomed well by the street. mark: coming up on "bloomberg markets", another move, credit suisse's chief executive shows he can cut costs. what next? we will discuss. ♪

mark: all eyes on zero. shares of -- all eyes on zero. shares of credit suisse are jumping. investors are looking past the loss and focusing on chief executive tidjane thiam's progress in overhauling the

business. he spoke to printing the quad today in zurich. >> one billion swiss rate of profit in this quarter. that means i do not think it will get worse, 4 billion trajectory. we have a 6.5 billion 2018 target. it does not seem so crazy anymore. mark: michael moore leaves the u.s. financial -- leads the u.s. financial team for bloomberg news. have they turned a corner or not? it has only been two months since they had to revise their strategic plan. the lack of surprise was good news. having it the study through the restructuring. mark: good news on the cost cuts. winding down the unwanted assets?

michael: they're going faster than people anticipated. they are halfway through their annual cost cutting in the first quarter. there is speculation they could go beyond what they originally laid out. they are getting rid of some of the distressed debt that caused so much loss over the last two quarters. news? why the good what is happening in credit suisse's business that is allowing him to do this? onhael: he has been betting wealth management, and that held up ok. the prophet there and in the swiss unit were flat to the year earlier. it was all in the trading business where you saw the losses and the non-core business . the businesses they are investing in held up ok. investors projected that that may continue.

on the trading side, they are trying to clean it up. you saw them getting rid of a -- coo's and distressed assets. betty: how does this compare? the restructuring, now that we have information, to what we are seeing at deutsche bank and barclays? seems tocredit suisse be among the most aggressive. barclays says they have shrunk it to the point they are comfortable. deutsche bank is still cutting. is going further and making a bet on wealth management. barclays and deutsche bank seem to want to remain the european champion of investment banking. mark: the first quarter could be the trough. he spoke to francine. he said, i don't think we can get as bad as conditions as we

saw in the first quarter. which is something all of the banks will be hoping for. michael: we have seen banks call the bottom a few times. it seems they keep saying, it cannot get worse and it inevitably does. he said this is the trough, and we will see. mark: time will tell. michael moore of bloomberg news. ready? -- betty? betty: cheaper oil has been a help to the airline industry. said profitsines have doubled. there are other challenges. ♪

show me top new artist. ah, ha ha. show me top male artist. my whole belieber fan group. it's not a competition, but if it was i won. xfinity x1 lets you access the greatest library of billboard music awards moments,

simply by using your voice. the billboard music awards, live sunday may 22nd, 8/5 pacific, only on abc. bloomberg world headquarters in new york and london i am ready lou. mark: i am mark barton.

let's check in with bloomberg's first word news. say a: iraqi officials suicide bombing in northeast baghdad killed at least 13 civilians. minibuser blew up his near a bakery in a shiite neighborhood. it also wounded at least 60. in canada, a first look at fort of the citywed 90% survived. 2400 structures were destroyed. 25,000 were saved. the fire forced people to fully backhey are being allowed for two weeks. building in west virginia. .- voting in west virginia democratic front-runner hillary clinton holds a commanding lead among delegates against sanders. republicans are holding primaries in west virginia and nebraska. clinton leads sanders

nationally, but the vermont senator fares better against donald trump. sanders leads the presumptive nominee 53% to 40%. to 53n, it is 49% percent. much closer. merrick garland wilson that a questionnaire detailing his credentials. it is the latest step in the thee house's push to break blockade on his nomination. it is the early step in the vetting of any judicial nominee. global news, 24-hours a day, powered by our 2400 journalists, in 150 news bureaus around the world. i am vonnie quinn. betty: let's get you caught up on the market action all around the world. in asia, you have -- you had pretty much a rally going on. what was significant looking at the hang seng index, shares

finally halted their slide. it was perhaps a sign that this bearishness on china is turning a corner. one big story out of the region is in china. regulators are looking at opposing restrictions on backdoor listings. seen an incredible amount of interest taking chinese companies back home here they are looking to control reverse mergers before another speculative frenzy. they're looking at introducing limits. you have chinese companies outside looking to use the back door onto chinese exchanges. among the limits being discussed are valuation caps on the number of reverse mergers. caps on the deal sides and deal volumes. discussions are ongoing.

there is no adjustment to the timetable yet. bloomberg, hong kong. mark: a check on european equities, 58 minutes left in the tuesday session. stocks are up. sox europe 600 up by two thirds. that is after the biggest weekly drop since february. on an industry group basis, a best performance, stronger than expected earnings from credit suisse, ing also rising. travel and leisure boosted by better than expected earnings by a local carrier facing resources rebounding from yesterday's hammering, the decline of 6.6%. the euro is against the dollar. earlier it was falling for the six consecutive day, the longest

since march harriet sterling fell for the sixth day against the dollar. deficit.trade it was not as wide as the u.k. deficit. the 10 year yield, lowest since april. yield 1.2%,0 year the lowest since april. let's go to the u.s. bloomberg's abigail doolittle. , how does it look? abigail: games are increasing. the nasdaq is up .5%. the index, the second-biggest point drag, the shares of norwegian cruise lines. they reported an in-line first quarter but below consensus second quarter profits. it offered a range of $.80 to $.85, below consensus by 18%. stephen was in ski is saying

these will be bought on any weakness aggressively. he believes norwegian cruise lines is positioned to benefit from continue strengthen the caribbean. that china could prove to be a pocket of strength looking ahead. mark: that is one of the biggest drags. what about the big point boosters? hill, kingp of the of the nasdaq, amazon. the stock hit a record high earlier in trading, boosting the nasdaq the most after bernstein rose it to $1000 per share. they are said to expand more in the next two years as compared to the last two years. he is bullish on all time frames and carrying estimates that are "massively above consensus." there's more than 40% upside potential . that is suggesting that finally the buyers may manage to

overwhelm the sellers. we will see how this continued bear market- bull- continues to share out. mark: thank you. , the world'ses biggest international airline reported a drop. stronger dollar and pressure from falling shares p are the first drop in 10 years. on the other side, they reported a four-year profit of 60 percent thanks to lower oil prices. optimistic onded passenger numbers and an expanded fleet when he spoke to manus cranny in dubai. in thee are head winds global markets at the moment that we continue to add to the fleet as planned. we are dealing with flatlining in some markets, as we have

before and we faced these economic issues. we will continue to grow as planned and take on another 30 odd aircraft this year, many of which were created. manus: what everyone was to throw forward, is it latin america? is it those areas? the transpacific route? is that where we can break new ground? tim: the asian markets, although there are headwinds in places like china, where we are seeing is business moving out of china into places like vietnam. we are putting in in hanoi. we are seeing asian growth in certain places that people have not seen before. the leisure markets are growing .uickly in places like bali as the corporate segments start

to diminish, we are seeing a growth in the high-end high-yielding leisure segments. a yield in dilution as if we did not do anything about it. this is from the time carriers. there talking about overcapacity. pressure on more yields? are you seeing on capacity? tim: the pressure on yields will continue to be strong. seeing -- we are denominated in u.s. dollars. we face that problem, but we have done it and managed it. mark: tim clark on the bloomberg markets, speaking in europe. the reason paris attacks have

taken a toll on carrier's bottom lines. a pre-tax loss of $35 million. last year, the airline posted a profit. expects a profit this summer and boosting dividends by 25%. the chief executive told bloomberg television the past position is strong. >> we have done a rigorous talents she to reveal, as you would expect. review,s balance sheet as you would expect. we would not be raising our dividend to 50% if we did not believe in the long-term success of this airline and it is done in confidence. we have an hour growth confidence ongoing. we can do this, it is the right ring for now. we have her send it over one billion pounds to shareholders since 2011. we have now raised it. it is the right thing to do. mark: capacity, let's talk about

that. . look at everybody the amount of capacity in europe right now is i watering. how do you cope with that? had you keep yields up? how do you deal with that situation? it will be a tough summer and an interesting winter. >> the environment is being driven by the low fares airlines. we are growing. easy jet is growing seven present or 8% per year. that is the right growth to take advantage of the opportunities in the u k and mainland europe. we are growing organically, but there is a lot to go for. we have 9% of the european market. there is more us to grow. we are doing that in an organic and low risk way. you are right. it is a tough environment.

it is not the capacity making it tough. ande used to capacity competition. it is higher, but not out of sync. it is external events. if you look at the 24 million loss, we are coming in at the same as last year at 5 million profit. it is the foreign exchange movement that affects us. paris and brussels, we have been able to do very well in the first half. that shows our customers like us and we are doing the right things for our customers. we are focused on our passengers. we have a resilient is this model. the business model is what will win in europe. mark: earlier on bloomberg move with guythe johnson and caroline hyde. it is time to talk about superheroes. betty: star wars is your favorite, as well.

earnings posting their after the bell. investors are looking into the future. secede bob iger as ceo? we will look at the candidates next.

mark: i am mark barton in london with betty liu in new york. let's look at the biggest business stories in the news right now. kroger is holding a national hiring event to fill open jobs for its supermarkets chains including whelps and food 4

less. many are for part-time associates who bagged groceries, es, or ring up items at the cash register. the jobs are permanent. investment research for $12 million in cash to offer data analytics to institutional corporate private equity and venture capital clients. leucadia andjoin leave the operation. the deal is expected to close at the end of this month. amazon.com will let people post earns to its website and money from advertising and royalty. it puts it in more direct competition with google's youtube. it art he has its own original productions to compete with netflix. that is your latest bloomberg business flash. betty: we will talk about

disney. cashing in big on "captain america: civil war."it brought in in its dumbest at box office debut, just ahead of disney's second-quarter earnings after the bell. will the success of its other hits like "star wars: the force concerns overoff cord cutting and espn? theirpeople forget that cable business is half of their operating income? paul: primarily espn is the biggest profit driver and has been a great profit driver for 10 years to 15 years. last summer, investors started getting concerned. espn reported they had on the margin of losing several million subscribers. that caused them to reduce their profit outlook for the cable

network segment. that caught investors by surprise. what we have seen is a little stabilization. we have seen some of the cable operators like comcast and time warner cable post video games. -- video gains. well the cord cutting issue is a long-term issue, it is more of a longer-term play and not necessarily a big negative in the very near term. betty: that trend is in place, it just might not be as drastic as we were thinking a year ago. there are questions on the cable business. on the box office side of disney, the theme park side of disney, is the growth going to be enough to offset it? look at their theme park and film business, they are in strong positions. the film business, which is traditionally unpredictable,

investors tend not to depend on those earnings -- for disney it is different because they have the products from pixar, marble, ,nd star wars -- pixar, marvel and star wars. it has been very predictable. over the next five years they have a strong slate of upcoming films. it is hard to find any holes. on the parks and resorts area, it has been good for disney and comcast. comcast has a theme park business. globally, it is good. disney is the dominant player. they will double down on china with the opening of shanghai china. it will be a growth driver over the next five plus years. mark: any update expected on the search for a replacement for mr. bob iger?

paul: it was a negative surprise when the news came out. i think the company was undergoing a diligent and thorough succession plan over the last five plus years. at the last minute it fell apart. i think investors will want to get a sense of is the board leaning toward an internal or external candidate? bob iger has 2 years left on his contract. he could extend it if they do not find a capable replacement. mark: who is the favorite? we have a few candidates. sheryl sandberg is among them. two is the favorite? paul: investors would favor steve burke who has a senior executive position running nbc universal and is a former disney executive. sheryl sandberg is intriguing. she has done a tremendous job at

facebook driving their advertising business. our external candidates. this is the most prestigious job in media and arguably in corporate america. i am sure there will be a tremendous amount of interest. it will be a demanding job and the board will want to take its time to make sure they have the right person to replace bob iger , which are large shoes to fill. i think there will be plenty of interest. mark: thanks, paul sweeney from bloomberg intelligence. still ahead, southern bees makes a poor impression. the high-end market for impressionistic modern art, going through a correction? that story, next. ♪

mark: the auction at sotheby's in new york may be the evidence of a cooling art market. it sold more than 140 $4 million of impressionist and modern art, its worst showing in that category in new york since the 2009 recession. sold for $20.4 million, a record for the artist. art market in correction mode? james: parts of it. the auction market is in a correction. this is the result of a few things. bidders are not participating as they were last year. auction houses are shifting strategies. previously, they guarantee a lot competition lots in

with each other. they bought it ahead of time or got a third-party to buy their top lots ahead of time here they discovered they were winning the lots but losing money every time they sold. ed and stopped guaranteeing the ticket items. that meant that collectors were less willing to consign these $100 million works if they were sell.uaranteed to you're seeing a pendulum shift of power from auction houses to dealers. what do they do? what do the auction houses do? james: they're trying to work it out. they're trying to scale back expectations. you saw on sunday, missing sales that were nine times less in value from last year.

phillips also scaled back expectations but sold within estimates. sotheby's tried to scale back expectations. it did not work out. they had a disastrous evening. betty: what happened? that wasis work estimated between $50 million and $20 million. faileded to find -- it to find a single bidder. not sell.62 lots did entire auction of impressionist and modern art went unsold in the public auction. they may have tried to sell them afterwards. mark: some are saying this is a healthy contraction, if a contraction can be called healthy. it is a case that some of the

speculators are being shaken out? james: that is the narrative. i'm not entirely sure that is true. auction houses suddenly do not have these super high-end works. they're dealing with second-tier artworks. second tier artworks do not get premium prices for obvious reasons. is that a correction, or then dealing with a different kind of inventory? we know from last week that a lot of work on the primary market worth millions of dollars was selling well. mark: bloomberg pursuits, , the european close is next. do not move. ♪

iaae-m" betty: i am betty liu.

mark: you're watching the

european close on bloomberg markets. support, students with dyslexia can survive. womansay i am a better because of this journey and joslin is an amazing woman with much to give the world. >> i get to ask questions first. you talk about how your daughter -- it was a stupid test and she didn't want to do it. all of these children will say there is this anxiety, etc.. but she read adequately so she was not identified as needing intervention. intervention,he she went from the 16th percentile to the 75th percentile. i am struck