good afternoon. i'm scarlet fu. alix: here is what we're watching at this hour. stocks are up around the world are in real story is emerging markets. they and in a seven-day losing streak arian scarlet: disney's red hot of the business will be in the focus when they report earnings. alix: the victims of a made up ponzi scheme are fighting to get their money back. scarlet: we are halfway through the trading day. let's head over to julie hyman. julie: risk is back on today.

yesterday it kind of was. volume still remains below the 20 day average. dow which fell the most yesterday, it's rallying back today. gains are up 190 points. they are showing relatively strong gains. the s&p has a big cap gainers. we have amazon. thatel advisor reports amazon saw an increase in sales it was a little bit of a slowdown. u-turnis introducing a -- youtube service. -- allergan is introducing its buyback. companies that

are contributing most include goldman sachs and owing. we see a broad-based gain a number of different types of stocks. we can take a look at goldman. they are rising today. we've got a broad rally within the financials today. that's one of the most heavily weighted groups. it helps the overall indices. if you look at some of the other financials, jpmorgan is among them. to have that? jpmorgan, bank of america, wells fargo. breaking newssome in the act sector. corn prices are popping on the latest usda were. look at this pop. there we go. this is up 3%. usda cut brazilian

corn and soybean crops. let's check out soybean prices. it's almost 5.5%. that's a little movement. that crops will be at records in the united states. brazil and argentina are important producers for coin and soybeans. -- corn and soybeans. julie: that made up be good news for american farmers. alix: they are getting paid more. : the job openings for march, it is the second highest ever. we are seeing a report effect of job related companies and placement agencies. all of them are rising today. we've got a role and personnel

services companies. all of them are rising as well. bp is not getting a huge game. got this rising to the second highest on record. sign ofthe other strength in the jobs market. the april jobs number was a bit mixed at best. scarlet: everything else is not so great. thank you so much. alix: we have more from the newsroom. voters in west virginia go to the polls today. hillary clinton holds a commanding lead among delegates against bernie sanders. they have races next week in kentucky in oregon's. republicans have primaries in west virginia and nebraska today. john kasich is on the list to become the running mate for

donald trump did he expresses no enthusiasm for the position. they have spent weeks checking his interest in being on the ticket. the man claiming responsibility for a deadly shooting rampage in colorado springs planned parenthood is back in court. hiss a hearing to determine rental capacity. the psychologist will testify. countsharged with 179 including murder and attempted murder. president obama will become the first sitting u.s. president to visit one of the cities where america dropped an atomic tom. the president will travel to hiroshima while in japan this month. there was concerned that it appear the united states was apologizing or dropping the

bomb. i am mark crumpton. back over to you. scarlet: it's been a web saw week were brazilian markets. it's only tuesday. the impeachment process appears back on track. alix: for more on the outlook or brazil, we are going to ring in the head of research at the capital markets. she joins us live from miami. what you going to do in the next 48 hours around this senate impeachment vote in brazil? the screenwriters of house of cards are getting their cues from brazil. there is very elevated volatility. i think they are going to look at impeachment going through. i think it's inevitable.

from the turnover of power to the vice president. composition, is going to be tech aircrafts or cronies. that's what i am looking for. i think that's where it still is headed. we know that things don't proceed as smoothly as they could looking at what happened yesterday. what kind of volatility to you anticipate? senaterrow we get the vote. i think the president will be impeached. the end game is she will be impeached and she will be gone. tohink the market is going look at reforms. with the central bank get anything? will there be reform to the tax

code? think there could be more upside from here. that, the market realizes this is so deep rooted. the risk comes from the probe. this runs so deep in the economy. everyhurch -- touch sector. scarlet: when you look at the dollar, the following dollar is critical. are they strong enough that if the dollar gains on shifting hold on to, can they their gains? >> you are right. this has been a critical underwire of emerging markets. it's not something that's going to change. if they do hike more than that,

you would see a selloff in emerging market currencies. my view is that emerging markets are going to outperform other markets. economy is u.s. mediocre in terms of growth. let's have been halved. oil is surging. that is positive for the peso. i think another thing we need to consider is investor positioning. we have seen inflows returning to emerging markets. purchases of the emerging market index. investors, they are

going to remain impressed. that is going to keep emerging markets outperforming. alix: we've seen that investors have told $115 million from the most popular mexican etf. mexico is not that bad when you compare it to other countries in latin america. why? >> you nailed it. the past three months, issa can growth has been about 3% in latin america is normally negative. retail sales are 5%. in latin america they are negative. is very cheapso and liquid. the correlation is very high. peso is still used as a

hedge. i think that's ongoing. inflows remain strong in mexico. i think there has been overdone it 18. scarlet: thank you so much for joining us from miami. check, there are some headlines earlier this hour that indicated supplies are going into the wind. alix: you can see what's happening to soybean prices. now it's 4%. nonetheless, it's a huge spike. you had the report the talks about the world outlook for coin -- corn and soybeans. this is actually going to be light versus estimates. the stocks will be lighter.

like we're starving for soybeans. it's lower than what we were expecting. scarlet: it's a big change in tone where there was an oversupply of every kind of commodity. alix: less than you would of thought before. it's moving right now in the commodity market. scarlet: coming up, your mistry stock of the day. it still has a long way to go. ♪

scarlet: let's head to our markets that were julie hyman as a check on company movers. mistry our review of the stock. alix: you're getting good at this. it is soda stream. in andcan always tweed make their guesses. julie: tweet me your guesses. you see the pop we had in today's session. we look at a one-day chart. the company's earnings per share fell 28% that came in above estimates.

revenue is rising 12%. that's coming in above estimates. you can see the 20% gain saw in the stock. the ceo said the gains with len i strong is this in europe. there is a turnaround they are half ofn france are in the company's revenue does come from western europe. that's driving a lot of the gains we are seeing in the shares today. there is a decent amount of short interest. that can contribute. this the stock since the ipo. $20 a share. several big spikes over its history. it came down sharply. it hasn't traded above its ipo price since last summer. some other stocks are doing quite well. we see new records being touched to plaxico and campbell soup. it that's a different kind of

liquid. thank you so much. scarlet: it's time for the rloomberg business flash andube has started a guild in new york. it would give protections and benefits. drivers have a higher standard other in thehan contractors. they would this in meetings with management on a regular basis. the robin hood gala raised $61 million at its fundraiser. that's less than last year. donors chipped in $50 million. there was a challenge grant. included larry think and bill ackman and it david einhorn. that is your business flash up

date. alix: captain america and jungle book are big hits for disney. investors are concerned about espn. what will happen to the operating income? disney is the focus. the best, disney had quarterly profit in history. it was driven by the $1 billion income surge that you see right here. that is thanks to the success of star wars. -- movie made over $2 billion. that will show up in this scores reports. looks reallyndup good. they have another star wars movie still to come. disney may set box office history if they can generate $3

billion in 2016 in domestic sales. this is the problem. this is 13% of the operating income. cable networks made up 46%. that area is what's worrying analysts. espn is key to the cable business. generated revenue. 10% higherhave a field $7.31 this year. this could expose it to a high level of risk if the tv bundles lose favor. to dots a lot of money sports content. disney has $53 billion in sports commit. that's among the highest of its peers. we follow all of this. they report earnings after the

u.s. closing bell. we have much more coming up on number markets. stay with it. ♪

alix: private equity sees lower cost in a capital. jurisdiction brands like this for where and canadian close retailer. are --: searchlight cap cap said how low rates are expecting his industry. quite high.s are s&p has been flat since the start of the year. the european markets are slightly down, but if you look --a historical content context, they are still historically high. we see high multiples in equity. that is driven by low interest rates. we are living in a new paradigm. we've never lived in a world with such low interest rates for

such a sustainable amount of time. people are searching for return. wine, art. anything. cash flow. anything that can be levered and generates a lot of cash flow. gets treated that much higher. start from the top and go down. a load of money is sloshing around. you're not guessing. what you get the opportunity? >> you've got to be more creative. when he launched searchlight, we did not one of fund that was as large as possible. we wanted to be flexible.

we can buy control, a minority stake. we can buy debt. that allows us to help solve solutions. mark: you will take him -- a minority position. inhave the expertise to come and run your company better than it's been run and get extra value. why is that minority position working for you? you make sure you have strong alignment of incentives of people who are co-investing with you. sure inalways make these minority investments we have significant board representation. we've been very innovative and working with corporate partnerships to help them by other businesses. the value for them is someone comes in and provides the anchor mental capital to buy a company. we are trading a little bit of influence for a better entry

valuation. >> you like brands. when you look at your portfolio, what is it exit strategy for any of these? you? re an endpoint for >> we like brands that are bigger than the underlying company. we can invest in that at a reasonable valuation. we think there's a lot we can do with those. if you do a good job you can go public and sell it to another business. it creates a lot of options. it not operating at peak level? is it moving into different territories? >> we bought two successful regional lands. boots.makes rubber rain heritage a canadian brand. they have phenomenal chairs in

their core markets. we wanted to internationalize them and drive the sales of those is more internationally and leverage those brands and their consumer loyalty. >> you can bring access to capital. things they were not themselves doing. >> maybe they weren't incentivized to do. it, maybe they were not doing it as quickly or aggressively. sometimes when we invest, we can attract new management because we can share some of the equity in the business with new managers. that was oliver harman on number go. scarlet: we will speak to a lending start up. ♪

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alix: live from bloomberg world headquarters in new york, i am alix steel. i am scarlet fu.

let's start with headlines from first word news. mark crumpton has more from the newsroom. mark c.: beginning our news today, donald trump's campaign manager will reportedly lead the search for the running mate. he will lead the team that will search for and vet top candidates. they will include ben carson. bernie sanders and hillary clinton are in tight races in swing states. mrs. clinton leads in florida and pennsylvania, but mr. sanders leads in ohio. secretary of state john kerry says businesses should use the united states and its sanctions against iran as an excuse to not do business there.

canetary kerry says banks open accounts for iran, lend money, and facilitate legitimate transactions. in canada, an initial look at fort mcmurray shows that 90% survived the fire. 900 peopleearly to leave their homes. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. scarlet: thank you so much. let's get a quick check on u.s. markets before we head over to the nasdaq. we are looking at green across the board. in fact, the best levels of the session. alix: now, let's go to abigail doolittle, live from the nasdaq with the latest. abigail: we have the nasdaq in

full rally mode. it is the index is best winning streak in more than a month. the big story, amazon. shares are sharply higher after bernstein raised the price circuit to $1000 per share. that implies a 40% upside. we may also have investors reacting favorably to the news that the company is going to start a new online video posting service to compete with off of phabet's- als youtube. when we look at a one-year chart a battle, we see between the buyers and sellers, bulls and bears. on the strength, buyers are attempting to take out the

sellers, the selling pressure. if they can close above the record high, above $700 for a commencing amount -- convincing amount of time, it could suggest that they trade higher than current levels. scarlet: thank you so much. alix: shares of lending club oftinue to slide at the news the head of the company. their business model being scrutinized, it leaves many wondering if the future of the peer-to-peer lending space is doomed. burton: with us is that -- matt burton. we have to start with the dramatic questions. is peer-to-peer lending doomed?

>> i think starting out yesterday, we call the lot of the investors who are on lending platforms,any of the not one of them is pausing their buying today, which is a vote of confidence. there was obviously an issue to be dealt with and was addressed in a way that buyers felt comfortable that they will continue to be partners with lending club. i do not think it is a crisis yet today. alix: you look at loans from many peer-to-peer lenders. in your best judgment, was this an isolated issue wher or do you see hints of this elsewhere? >> i think the treasury just put out their white paper today which calls for more transparency within the space, which i think has been a common -onee over the past x months

year. we need to institutionalize this nascent asset pass, and bring in more transparency to make sure the process, both for buying the loan and servicing of it, is done at the same quality as other asset classes before. this is an emerging asset class. it has huge potential, but is relatively small. inrlet: these companies are their infancy. will you be changing the relationship with lending club in any way? >> i will not. i have a very strong relationship with the person who took over the executive chairman , who i think has a great relationship with the technology community, as well as wall street, given his back ground from vsat. when i woke up, i think everybody i talked to was shocked.

the plus that lending club has leaders that can step up. alix: one of those leaders of course on the board is john mack , the former head of morgan stanley. he was one of the investors in the hedge fund buying funds from lending club. around a little bit yesterday. he is also an investment in orchard. what is your relationship like with john mack? >> if you look at the founding team of orchard, there is a strong background on the technology side and credit site, but we did not have a deep background with financial services. that, i reached out to john mack and others to bring to really guide the company and make sure we were building it in the right way.

my background, previously at who will -- google, is not a highly regulated space. there was a huge learning curve to make sure we were building the company in the right way from day one. scarlet: a learning curve, and a different environment. interest rates are getting ready to rise further. how confident can investors be in assessing the different loans being made here since this is a relatively new business cycle, and it has not really been tested yet? >> i think the interesting thing is people thought the credit cycle would turn first. a lot of the funny issues that have come in the news have been broader credit issues that affected not only discredit other spaces as well. on the credit side, we have not .een a cycle turn while we have seen pockets of

deterioration, they have taken care of those. i think the thing from the rates perspective is the actual duration on the asset is very low. compared to other types of fixed income, this is almost self liquidating. scarlet: tracy alloway likes to call it regulatory arbitrage. alix: something we have seen ,ith companies like on debt they were only able to sell 26% of their loans, but hoping to sell up to 45%. do you see a mismatch between supply and demand? >> they are interesting. this is part of the complex the with in the space. there are so many models. they operate in a hybrid model. costwere able to see the

of their capital decrease, which made it more attractive for them to hold more loans. that was the shifts. alix: they wanted to hold them? >> correct. in different diamonds, there will be different channels that you leverage for the capital acquisition side. the real trick is holding businesses that perform in different credit environment as well as different economic times. scarlet: here is the question going forward. what role should regulators take in my drink this part of the market? it is going through big changes. >> we saw with the white paper today, the first thing is they thought that more protections were needed for small businesses. industry groups are calling for the same ink. there need to be more rules so that theyers understand the products. some of the other recommendations were on the , that don'tpect

exist today, but we are working hard to build one. you have liquidity options -- here, it is a very different environment. it is new. all of the infrastructure has not built like it has in other asset classes. alix: sometimes i hear the alarm going off -- how are you guys the samek, doing stuff? the worry is lending like a bank, doing what you did akin 2008. that is the concern. for us, we are a software company. i am not a bank. scarlet: a tech company? >> a tech company in financial services. i licensedpany is software. i'm not a bank in that regard.

some others out there, yes, there are parallels to financial services companies. there was a whole credit card in the 1990's that eventually consolidated. i think we are seeing a similar wave today. you see a lot of these companies form, and they are figuring out ways to serve the consumer that banks cannot today. the reason we are all talking about this is because consumers are not going into bank branches and filling out paperwork for loans. they are going online. consumer behavior has shifted to create the opportunity for all of these businesses. they are the ones trying to fil i need. alix: great stuff. really interesting. oft burton, ceo orange platform. the headnight,

of bentley university. ♪

alixscarlet: you are watching bloomberg. alix: i am alix steel. this is your global business report. scarlet: the global oil gluttony continues. saudi arabia will pump up production that is already near record high levels. alix: car sales rising more than 6% in april with gm reporting big gains in suv sales. th banks lost in the

first quarter. saudi arabia plans to pump more oil. the ceo of saudi aramco says they will have significant grow th this year. the saudi's are leaving opec members and a battle for higher cost producers. alix: car sales rose in china straight month. they were up in april. among the big sellers, general motors and toyota. short in itsup first quarter report after combining with another company. users paying less

in mobile networks. german industrial production fell more than expected in march, the second straight monthly decline. manufacturing and construction also declined. they have been depending on -- credit suites reporting a loss that was not as big as expected. they lost 230 million swiss estimates.ating the ceo explained why he sees better time ahead. regenerated one billion of credit this quarter. i do not think we will get worse conditions. we are on a 4 billion trajectory. and the target does not seem so crazy anymore. alix: he also said he is

confident he can deliver more cost cuts and wind down at a faster pace. expansionis on and and wealth management. scarlet: time now for our bloomberg quicktake, where we provide context and background on issues of interest. organic food sales have gone through the roof even though food certified as organic sometimes costs twice as much. the organic food market is now part of the mainstream, with about three quarters of pushers selling organic food, including walmart and target. thee labeled organic, department of agriculture says it must be freed of genetically modified organisms. ated must be freed -- mee must be free of antibiotics and growth hormones. poison gas research in world war bannedo ddt, which was

in 1992. in 1990, after the usda passed the organic food production act, organic food became more common. in the past decade, coca-cola and others started snapping up organic food startups. here is the argument. people say that organic food has more nutrients. skeptics say that eating organic food is not improve health. meanwhile, you have groceries like kroger filling their aisles with organic food. fertilizing foods improperly can result in e. coli contamination. foods labeled organic are not even an hanley healthy, like organic gummy bears. for more stories, visit bloomberg.com.

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alix: this is bloomberg markets. i am alix steel. scarlet: i am scarlet fu. now to one of the most read today, on the bloomberg mark and andrew made offer off.sed -- mad alix: hundreds of cases have been settled, just not this one. joining us now, eric larson. the ponzi scheme collapsed eight years ago. what is this how? the lawyer for the estate does not want to give the trustee the money they want. they say they should be able to

keep it for the beneficiaries because they did not know about the fraud. the trustee claims that they did. they want back all of the salaries, bonuses, and everything they got over the years. scarlet: how much would that total? erik: $150 million. scarlet: including interest? erik: i don't know about interest. scarlet: how important is this? the trustee has already recovered $11 million. it is not a huge amount. offy don't want any mad relation to get any money. alix: how does that work when the two people they are trying to get money from our debt? erik: at that point, it is up to the lawyer. he is the lawyer that they called after their father confessed. a third is like

person's account of what happened. how does that stand up in court? erik: who knows if it will ever go to trial, but the fact that seemare dead, it makes it more difficult for the trustee. he is pushing for the full $150 million. scarlet: what is the trustee trustee's strategy? erik: he says that the record show that each of the sons got exorbitant salaries, and they should have known it was fake money, stolen from the investment advisory business. he said that they took out sham loans to buy property, and they never intended to pay back those loans. he is ready to take it to trial, if you can. alix: where is the money? wills, together

they have about $35 million. there is no way that the trustee will get $150 million anyway. stocks, bonds, and upper east side apartment and a home in greenwich, connecticut. some cash as well. scarlet: it was said that they should not be able to 1 continue, there was a verdict in london as well. erik: it was filed by the london filing a subsidiary. trial.as a the british trustee lost the case. the brothers were cleared. he claims that that should apply here. the trustee says no, the u.s. case is far broader and involves much more allegedly wrongdoing. alix: were they ever tried? the brothers?

erik: they were not. they were investigated by people familiar, but they were never charged and not named in any lawsuit. scarlet: they did not come up in the lawsuit where five employees were accused of abating fraud -- evading fraud? erik: they were mentioned. although they were not defendants, it was mentioned in the testimony that during a 2005 investigation, they deleted a lot of e-mails before the regulator arrived. e-mails that could have revealed the ponzi scheme in 2005. they took moves to hide the performance of the unit that they oversaw. alix: thank you very much for a comprehensive. eric larson. in the nexting up

hour of bloomberg markets, we will sit down with the president and ceo of the anita center for women. ♪ . .

alix: it is 1 p.m. in new york and 1:00 a.m. in hong kong. scarlet: welcome to bloomberg markets.

from bloomberg world headquarters in your, good afternoon. i'm scarlet fu. alix: i'm alix steel. a triple digit gain for the dow was financials and tech shares leading the way. amazon up after an analyst boost the shares to $1000. scarlet: credit sweeties is surging on news that the ceo is winding down unwanted assets at a faster pace than projected. alix: big oil spends years and ilion's of dollars giving rights to drilling arctic waters, but now they are growing cool to claims that it would net the next big discovery. let's yet things started and head over to the markets desk where julie hyman is keeping track of the triple digit point move in the dow. that was holding

back stocks from having more of a rally with a mixed day yesterday, but all three major averages are down. the dow has been gaining with the worst-performing index yesterday. not only are you seeing this rally, but we keep taking legs up. which, if you are able, that might be a good sign. you can see these steps up hitting incremental new highs throughout the day, whereas yesterday, stocks kept attempting rallies that were not successful. thatf that said, one ring has not changed from yesterday's session is the low volume. right now, we are running about 13% below the average. in particular, two groups doing better today, energy and materials are seeing sharp inclines in volume versus that

20 day average. that's something to keep in mind. you just heard it mentioning rising toazon shares a record today. all of these other stocks are at also with mcdonald's and pepsi reaching intraday records, showing the rest of the rally with a lot of diverse industries. this recentbout upswing in stocks, it is worth pointing out that if you go to the end of 2014, stocks have not done a lot. they are up by 1%, even though again year to date has been impressive, it has not been if you look at the last 18 months or so. about ad talking breath, most commodities are up today, but not all of them. energylet's look at the

complex. there are concerns about supply disruption in libya and nigeria. the energy administration cutting its outlook for gas production and raising its price estimate to $2.25. you can see natural gas rising today. alix pointed out, you can see agricultural indexes rising today. you see corn rising and soybeans getting a boost and the stuff not doing as well today, gold and copper, those are in the losing category. scarlet: thank you so much. alix: let's check in on the first word news with mark crumpton from the newsroom. mark: a super pac acting hillary clinton is reserving an additional five point $3 million in advertising for the fall.

that brings the general election ad plans to more than $130 million. the latest by ortiz are for commercials on black and hispanic radio stations in ohio, florida, nevada, colorado and virginia. supreme court nominee merrick garland has submitted a questionnaire detailing his credentials and experience to the senate judiciary committee. it is the latest step in the white house push to rake the blockade on his nomination. the questionnaire is a standard early step in the vetting of any judicial nominee. opening statements are underway in the civil trial for the colorado theater shooting that left 12 people dead and 70 injured. 28 victims and their family are suing cinemark holdings with -- which owns the movie theater. they said more security measures should have been in place. james holmes was sentenced to life in prison nine months ago. a car bomb struck a bus carrying turkish police officers in a kurdish city, killing three and

wounding at least for the five others. no group has claimed responsibility for the attack. kurdish rebels have been choosing police and military targets and july when a fragile peace process collapsed. global news 24 hours a day powered by our 2400 journalists in more than 150 news euros around the world. i'm mark crumpton. back to you. scarlet: credit sweeties posted a $311 million loss which was well below analysts estimates. cost-cutting measures announced in march are on track. down francine lacqua sat for a much different interviewed in the one given in march when he said the markets were going to help. francine asked him what has changed. guest: there was a time in january or february that were very bad. march was better and april was better than march and may is

showing some positive signs, but it is difficult when you are in that position. sentiment feels fragile there. francine: less volatility is what you are experiencing there? guest: the market is very sensitive and there's not much liquidity. lot.ews flow triggers a francine: so it won't be easier to make money in the markets? not necessarily. there has been an improvement from january and february. 63%s very strong and up year over year. the m and a pipeline is strong, so there are some spots where we see strength around global growth, including china.

francine: on the job cuts, 6000 job cuts this year and you are on target? >> we have done 3500. we are 58% into the target at the end of the first quarter, so we think that is progressing at pace. we have a target of 1.4 billion of net savings. we believe we have done more than half, so we are confident in that target. for the present topic, i am always sorry to have to talk about job losses, but it is the price we have to pay to create the platform for the future. that is really what all of this is about. to be successful, we need a strong capital base. we need relatively stable income

streams. risk and that something maybe we don't talk about. good compliance and healthy growth so that we protect the reputation of our most precious assets. we really think about selling just to give a quick example, i talk about the connection between private bank and investment bank. we need that flows in asia -- one billion of that is a reference -- people who know our investment bankers have said you'd have all of this money, why don't you give it to private bankers? show that the numbers

the potential number is huge with potential high-quality earnings. alix: that was the ceo of credit sweeties speaking with francine lacqua. at shares ofg credit suisse having a pretty tough year. the stock is up, but that purple line, look how much it has underperformed ubs. we are seeing a rally and a big climb up. scarlet: you can look at the .etrics of this if you look at the return on common tangible equity, credit suites in this case is the light blue. capital metric is higher than deutsche bank.

line there --hite i'm getting all of my colors confused. another way of looking at it is valuation. it suggests there is a lot more room to fall. when it seemsing, likely market has liked what they have heard. the tier one ratio was much better than analysts expected and they are deepening those cost cuts and they are doing all the right stuff. keep in mind this whole sector -- or member the cocoa bond fiasco? tankedre getting totally throughout the sector, so there's the reality and then there is market sentiment. scarlet: when it comes to the big banks, everyone is waiting for the proof. everyone has these grand plans of how they are going to indoor the lower for longer rate environment.

then, investors are more likely to say i don't need to be in this in any big way. alix: coming up, the maker of oh talks is buying back as much as $10 billion in stocks. with the money be better spent on acquisitions? that story, next. ♪

alix: you are watching bloomberg markets. scarlet: it is time for the

bloomberg business flash come a look at the biggest is the stories in the news right now. job openings in the u.s. have risen to the second highest level on record. the number of jobs waiting to be filled rose to almost 548 million in march, indicating financial work has remained steady. alix: wholesale businesses increase their stockpiles for the first time since september. the commerce department says inventories rose .1%. that's the sharpest jump since february of 2017 and the result of higher oil prices. scarlet: the friendly restaurant chain has sold its business to dean foods for $150 billion. it's the biggest a straighter of milk and other dairy products going back to 1945. the transaction is expected to close late in the second quarter. alix: kroger is holding a nationwide hiring event for all

of its chains including ralph's and food 4 less. many are for part-time associates who stock shelves or ring up items at the cash register. the company says the jobs are permanent. will update its definition of healthy. it told the maker of kind food and nuts bars that their product should not be called healthy and asked for reevaluation of the terms noting that the fat in its bars comes from nuts. that is your business flash update. alix: that's a fair point. scarlet: i like those kind bars. alix: they are really sugary. scarlet: that's why they taste good. julie: i'm looking at retail right now with cap coming out with its april comparable sales and culinary earnings. andes are plunging by 12% in particular, same-store sales

were down 7% in april. analysts were looking for a gain orh limitary earnings at 31 $.32. analysts had estimated $.34 and when you break it down and look at the individual brands within gap, it looks even worse. this is using the bloomberg intelligence tool to look at those sales by various chains. here is the latest month -- banana republic in blue and old navy in orange. on aavy down 10% comparable basis and that's a problem for gap because old navy had been one of the standouts. it was one of the last remaining gainers and that has turned around and it is not recovering and is generally not seeing a recovery. the ceo said it would turn around by the spring but that does not appear to be happening. if you look at some of the other

retailers, we are seeing a pullback today. a pretty broad pullback. flipside, the maker of crocs plastic shoes is doing well today with shares of 36 percent after that company's earnings beat estimates even after it said second-quarter revenue might be short of estimates. an incredible gain there. same-store sales rising. it's an interesting contrast. scarlet: i feel like i don't know many people who buy the real crocs. alix: i've by the real crocs for the kids. scarlet: although they are deeply on sale all the time like the gap. alix: i really do my part for them, i have to say. scarlet: there is data out today that says trouble. julie: we got the number

foreclosing inventories, and if you look at inventory to sales for u.s. apparel, it is at a record high. there's a huge inventory buildup and that is not getting turned over. we see glimmers of that and results from companies like cap, but this is not a very positive indicator for those types of companies. lots of supplies for tj maxx and marshals. they have better bargaining power when you see a chart like that. alix: allergan is getting it own injection today. shares are up on news that the botox maker plans to buy $10 million in stocks. 13%let: shares had fallen pfizer walked away from its proposed takeover, but could the $10 billion be better spent?

buybacks, but no, day? guest: it seems like -- but no m&a? this guy has been a deal maker and they have done deal after deal. was named watson pharma five years ago and it's one of the biggest companies in the pharmaceutical world, but there is a point where you run out of stuff that's appropriate to buy and they had this exit with pfizer. there are going to get bought in this tax inversion and that tell apart and what they are saying now is we are going to take a pause and buy back some of our stock with the money we are going to get and they say they focuses going to be a billion dollars here and a billion dollars there. he talked about that they might be open to a transformative deal

if a once-in-a-lifetime opportunity comes along or that they could potentially be a white knight for somebody. seem like the focus is going to be on smaller assets than they had gone after in the past. alix: is allergan a target now? guest: it has gotten so big that i think that is ethical. one of the main benefits this company has as they offered the opportunity for a company like pfizer which is so huge to get out from under a to u.s. tax domicile because allergan is located overseas even though it is in new jersey. there are not that many people who could swallow allergan. it's going to be $160 billion due to the pfizer transaction stop it's almost too large to get hot. appetite toave the do their own sort of thing, but it would be a rare player who could go after it and not run in to the types of policy hurdles

pfizer did. scarlet: how is the underlying business performing? guest: things seem to be headed in the right direction. botox is their big one and the underlying business is reasonably healthy. they redid their guidance today. why big oilahead, companies are abandoning the arctic after spending aliens on drilling rights. that story after the break. ♪

alix: after spending more than $2.5 billion in drilling arctic waters, big oil has walked away from millions of acres of untapped oil and gas. could be years,

if ever, if they get another chance to buy drilling rights in the region. set this up for us. companies are spending all of this money when oil prices were rising and teams like they could continue to move higher. when the oil companies bought these leases in 2008, prices were $88 a barrel and there was a concern about nabbing resources. this was before the horizontal horizontalom and -- drilling boom and hydraulic fracturing. this was a relatively untapped basin and it was kind of a final frontier. they thought here was there chance to net a monster discovery that could yield oil for decades. alix: it is incredible how much

oil and gas is in the arctic. this really poses a problem because the oil and energy world need big discoveries to keep on producing. a shield field is not going to cut it, so what happens? guest: oil companies are looking with long time horizons across the world. norway is in the middle of a licensing round and russia has interest. there are other areas of the arctic that will probably be tapped. and you are right that they really need these offshore .onster discoveries for decades shale production has a shorter duration and scale.

the reality is the next oil auction in this area could be 2020 or 2022. they might get canceled altogether. that's a decision facing the obama administration right now. $80 oil gives folks a lot more comfortable. near that right now. thank you for joining us. alix: still ahead, encouraging women to enter technical careers. we will ask the ceo of the anita borg institute which companies are paving the way. ♪

alix: from bloomberg world headquarters in new york, you are watching bloomberg markets. scarlet: let's start with the

headlines with mark crumpton in the newsroom. mark: voters in west virginia go to the polls today. democratic front runner hillary clinton holds a commanding lead among delegates against rival bernie sanders. they have races next week in kentucky and oregon. republicans are holding primaries in west virginia and nebraska. ted cruz says he will, in his words, respond accordingly if he wins in the brassica and sees a path to the republican presidential nomination. he dropped out of the race one week ago. senator cruz said he is not holding his breath. a baltimore police officer accused in the freddie gray case has chosen a trial before a judge rather than a jury. the officer faces charges of assault, reckless endangerment and misconduct in office in connection with the 2015 arrest. freddie gray was a 25 euro black man who died after he was

injured in a police van. the trial is scheduled to begin thursday and is expected to last about five days. fierce fighting between iraqi army and islamic state militants today as part of the government offensive against most. smoke could be seen coming from the horizon, presumably a result of earning oil, and attack used by the militants to provide cover against coalition aircraft. golden state steph curry has won his second straight most viable player award. the first unanimous the warriorstory, beating portland 132 to 100 25 to take a three games to one lead in the western conference my finals. dayal news 24 hours a powered by our 2400 journalists in more than 150 news bureaus around the world. back to you.

alix: it is a struggle playing out in front page headlines -- google and microsoft hiring more women. ellen pao is launching a new initiative called project include that aims to tackle the problem of diversity in technology. bias is not gender just a problem for silicon valley. employing women in so-called stem careers will be a necessity. telle whitney aims to help that happen. welcome. telle: it is great to be here. scarlet: you joined the anita borg institute and in 14 years, a lot has changed. what hasn't changed? it is really important to have women at the table. the work we do is to bring more notice to this and what has emphasis and the

fact that we are talking about this more than in the past. scarlet: what has stayed the same? telle: the numbers are about the same. we have the top companies in technology and the numbers have stayed pretty flat in the last five years. alix: why is that? my daughter is 19 months old. i have to assume it starts to build a -- an excitement and interest in coding. for young people, it's the excitement to really make a contribution to the world. but for women who go into computer science, they drop out and what matters is the culture, building culture where women thrive in the tech industry. all companies are tech industry these days. manyet: we saw so differences in the culture with

holding back ellen pao in her career. becomethey break out to more than just a female support group? telle: i think it is important that the people involved want to make a difference. and know what it takes taking their own personal experience and adding that to research makes a huge difference. alix: we tend to hear platitudes like if you have more women in the board, you will do better -- as services become much more important, that technology, if women are not part of that, we don't set world policy at the end of the day. telle: this is why it is so important. we are 50% of the population in technology is something that will change all of our lives. having women at the table is fundamental to our future.

it really is. scarlet: these are statistics that highlight the mismatch. 18% of women hold computer science degrees. what is needed on the corporate or legislative level to move the needle when it comes to hiring more women in stem? telle: accountability is key. knowing your numbers. that's why the top companies effort is important. what you measure, you will change. we know how tois create change and there are companies doing this today. have on the flip side, you push back. interviewed an investor that 70 hiring pool for women is smaller and he did not want to lower his standards to open the pool for women. how do you combat a name investor saying something like that? telle: that is an argument i get all the time. cannotportant that we

lower the standards. creative andmore where they go to look for talent is one thing they can do. that vcs, because it is such a male bastion is the place we have not seen the kind of change i would like to see and there are some real opportunities there. like germanylaces where you have angela merkel who is a former scientists, there's more representation of women in the boardrooms. is this unique because if you want to link it to the elections, we have not seen a female leadership role that visible. at the heart of the institute is that role models matter. we see companies with a higher representation at the executive level. you better believe that if there

was a woman president that it makes a difference for all those young women who think i can do almost anything. your institute comes out with a leadership index each year. what is your criteria? telle: we measure at the entry level, mid-level and executive level. companies that have the best numbers throughout, one of the trends we are seeing is more and more finance companies, melon being one example, are participating. -- all companies are tech companies and most finance companies see themselves as technical companies. the criteria for the leadership index is about the representation of women throughout. scarlet: speaking of companies that may not he in the index, sasha nadal of made headlines in 2014 when he suggested women

should not ask for raises but wait for the system to reward them. in howu seen any change microsoft approaches career advancement since then? telle: that was actually at our conference where he spoke. once again, right after he spoke, he said i'm sorry and spent a lot of time trying to create in microsoft. they have published their pay support fromaving the top has made a huge difference. recognition and publishing the numbers. thank you very much. alix: telle whitney from the anita borg institute. wereet: canada's banks much -- were once touted as the most solid. they are now behind her peers. alix: one analyst says this

could be the calm before the storm that sends you stocks sliding. scarlet: we will hear from a ball that says despite the pessimism, stocks are headed higher. ♪

scarlet: this is bloomberg markets. alix: it is time for the bloomberg business flash, a look at the biggest is the stories in the news right now. technologies --

it will give members new protections and benefits while avoiding a fully fledged union. under the terms, uber drivers would have a higher standard of section and so than other independent contractors. amazon.com will let people post videos to its website and earn money from royalties. it puts them in competition with youtube. already offers programming over the internet, including productions to complete with netflix. alix: budweiser is getting patriotic just in time for the white house. they will rename their beer america this summer. they campaign is being launched into a competitive market foamy with craft beers and eight ranking public racing itself for the presidential election. the cans and bottles will be available starting may 23.

i don't know. scarlet: that's temporary, right? an americahave please with a chaser of giga. aeger.ser of j julie: the irony is that it has the same name as a check here. in america, where we are, solar city is the stock we are watching today. down 24 .5% because of confusion over its business model and the fact it is cutting its solar installation forecast for the third time in the past seven months. one analyst on the call today said what is solar city? there's a lot of confusion on wall street about what this company is. it has changed its model several times and offered the front financing plans to bring in different customers. the ceo said on a conference

call today that it is all about catering to the consumer, trying to figure out what the consumer wants, but investors do not seem convinced. the short interest on the stock is relatively high. the stock prices come down and we see the short interest ratio come down but as a percentage of float, it is at 37.5%. unusually high, reflecting the negative sentiment surrounding this company. solar stocks have been underperforming. i was shocked to see this chart, even underperforming coal here today. incredible solar has done so poorly. on the one hand, you have rising demand for solar. you have addictions to store even more and on the other side, you have individual companies

and bankruptcies saddled with a lot of debt and execution issues with individual companies like solar city. that has really put pressure on the stocks. todayle of other losers -- mankind, the drugmaker, those shares tumbling, down by 27%. the companies lost was wider than estimated and is selling more shares. it's going to hold a direct public offering with a combined purchase price of $1.03. the company has had a lot of troubles and back and forth. it had an agreement to istribute and -- why am blanking? asthma. i'm really doing well today. becauseement ended there were concerns about lackluster sales.

the company had struggled to recover after that. scarlet: for eight years in a row, the world economic forum had deemed them the world's soundest -- we are talking about canadian banks. now they are trailing compared to global peers. alix: canada can lehman global rules for this change. explain these new and what they are doing to canadian banks. in lameany way to fit canada, i'm for that. other banks around the world have caught up and that is what doug alexander who wrote this piece knows. theiran banks pumped up capital levels in 1999 when there was an overall global movement toward this. it really force them to get the capital levels up sooner rather than later and the rest of the banks since the financial crisis have been working steadily to make sure their capital requirements are higher. canadaer part is the way

looked at the assets of banks in terms of regulations was related they pull all the assets into one, be they junk bonds, cash or mortgages, it is a slightly different way of measuring what kind of tier one capital you are looking at. which canadian bank is the biggest lag or? : at the moment, it is toronto dominion. they have a leverage ratio of 3.7%. if you look globally at this picture, it is the six egg banks we are looking at. they are the lowest against say the 15 biggest european banks. banks at 6.6% for the average leverage ratio.

one year ago, we saw a narrow advantage to the u.s. banks and essentially the european banks were on par on this particular measurement. switching gears to round it out, what is the latest on the wildfires in alberto? : the government has gone in and done a proper reassessment. they say 2400 buildings or structures have been completely destroyed in the fire, but the upside is 25,000 structures or buildings have survived quite well. in some ways, the damage is quite a lot less than expected. on the energy front, we have energy executives meeting with the premier. son: royal dutch shell looking at getting their workers back to this site. we saw the mines themselves and drilling operations largely unscathed through these fires. scarlet: i suppose if there is a

silver lining, that is one of them. value --ing up, hello that's the call from bank of america and merrill lynch. why she thinks high-quality is keeping its call for the s&p. ♪

scarlet: too many investors, markets are too quiet right now. one way to read -- to measure the relative call him, and has been more than a month since the s&p moved more than 1% in either direction. alix: yesterday, we spoke with the merrill lynch head of strategy and warned of a southerner -- of a summer swoon that could put the s&p down and revealed where to find stocks. guest: all you need to look for

is the stability of earnings. when you buy a u.s. company, you are paying for the underlying earnings potential. if earnings are stable, nice and protectable, you should pay a premium for that predict ability. if earnings are all over the place, you should probably be compensated for that risk. aat is really unusual and is rate opportunity for investors is that stable earners are trading at a discount to volatile earners. techu look at cap companies, these are the most able earners around. they have diversified and markets and they were the only or that managed to grow earnings during the financial crisis. but big cap tech stocks are trading at the lowest relative premium we have seen. to buys an opportunity cheap quality without overpaying like you might be for utilities or staples and capture that

underlying earnings power rather than overpaying for perceived safety. this shows high quality versus low quality stocks. where do you see it start to outperform? think two months from now, that white line will be above the orange line. joe: we have to plan this segment. we are heading into an environment where we are paying a premium for quality and being compensated for risk, which is something we have not done for years. that mean value stocks will outperform momentum stocks as we have seen in the first quarter? guest: on a cyclical basis, momentum looks dangerous. a very small set of stocks crushed it and the rest of the market was basically flat. i think we are done with that. we ended last year with growth stocks super crowded, momentum

stocks got really expensive. still expensive in the stock shows the best performers and where they are trading relative to the market. we are at pretty stretched levels in terms of valuation. i like value. companies that are generating cash rather than using cash, value companies tend to throw off cash. i like value. : one of the big at macro stories is the weakening of the dollar. of the strong dollar and a fight a lot of expectations. what does that mean for international companies? do they benefit from that? guest: some get hurt and some don't. what has been the theme is every stock with foreign exposure has sold off on dollar risk. there might be interesting

opportunities to buy cheap multinationals that are discounting strong dollar risk but might not actually exhibit that. was yesterday on "what'd you miss?" she talked about the brexit and how that could have stocks all off. that it is quiet -- how skeptical people are of this rally, there such high short interest in buying of volatility products to hedge. we have low volatility and seeming lack of concern and on the flipside, we don't have many people buying into the rally. it's hard to know which way the sentiment lies. where thes clear sentiment lies when it comes to commodities and this will be part of our show later today. this is chinese commodity

trading. this is the volume of trading in iron ore and cotton and the white line is open interest. open interest is if you are going to go long, but look at the volume that is increased in the past two months. joe: the amount of speculative fervor we have seen in chinese commodity futures is absolutely astounding. scarlet: does fervor ever and well? joe: never. the headwill talk to of commodities research at goldman sachs today and what happens with chinese commodity buying. aheadt: is it blue skies for easyjet? we will speak to the ceo of the carrier. ♪

david welcome to bloomberg markets. ♪

david: stocks rising today, but are they entering a consolidation phase? our guest believes that will be elected -- a reluctance to buy. oil down to two-week low, and gold dropping to a one-year high -- from its one-year high. campaign officials visit cleveland. markets close in about two hours. stocks at session highs. julie hyman is standing by. julie: falling is languishing a little bit, but we see the recovery continue today. the dow, which was the burst performer yesterday, has been leading gain