good afternoon from bloomberg world headquarters in new york city. here is what we are working at this hour. stocks losing footing as the trading day wears on. the major averages posting third straight week of losses. in april rose 1.3%. that is the most in a year coming amid lackluster earnings reports from retailers. the latest to disappoint jcpenney just this morning. as donald trump tries to rally republicans to his side new revelations are coming out about his past including accusations that he used several alter ego's to speak to reporters. we will uncover the details. markets closing two hours from now. stocks are down across the board pretty much near the lows of the session. here we are. slump forate friday

their markets and energy has a lot to do with it. said evenng as carol the nasdaq which has been holding up pretty well is down one third of 1%. the imap.k at much more rate on the screen. only some subsectors in the green and it is financials that at leastn the top spot in terms of percentage declines. there tends to be some coincidence of movement between the two because it concerns -- because of current -- concerns. they keep flip-flopping akin forth between the two worst performers. oil prices remain lower. even though there have been supplied constraint in nigeria and more supply coming back online in canada following the wildfires. we have seen oil steadily lower

throughout the session. let's look at the damage within the energy stocks. all lower. exxon declared force majeure in nigeria at one of its projects basically suspending production. of its contract because of that and then he can flip over and look at the and i -- energy stocks and declines we're seeing. her you have transocean, southwestern, and murphy. between the exploration producers and the oil services. we got the weekly oil rig count that came out at 1 p.m. fake oil is the index and you see the long-term chart. we saw a decline in the rig count. that should be a positive for oil prices but it was not. carol: any bright spots? julie cohen within refiners we're seeing a little bit better performance and that is something we some we heard about first-quarter earnings from some

of these companies. margins held up relatively well. some of these stocks are down but they are not down by nearly as much as the expiration companies. if you look at your today performance from some of the energy companies we have seen quite strong performance in the more volatile names. companies like southwestern , we doand natural gas not want to leave that out of the equation. it is down 10% but much like oil prices we have seen a rebound from the lows of the year and the stocks in many cases have rebounded by even more. friday the 13th market. julie: let's attributed to that. carol: mark crumpton has more from the newsroom. mark: facing the growing backlash over extremely long airport security lines, the head of the department of homeland security says the transportation security administration will

speed up the hiring process to do with the upcoming summer travel season. >> we have expedited the hiring tso's. we expedited the hiring of those to bring a month this summer. projected by june 15. facingeople have been growing lines topping 90 minutes and airports. the shifter $34 million to hire 800 screeners is not good enough. they won 6000 workers hired. a senior republican lawmaker said he will unveil additional funding to battle the zika virus. harold rogers said the anti--zika virus measure will be financed at cuts elsewhere. the measure is expected to provide less than a bipartisan $1.1 billion senate measure that was released yesterday. donald trump has picked up what could be a very lucrative

endorsement. a casino mogul said he is backing mr. term for president. he said the alternative to mr. trumping elected is frightening. they contributed $90 million to super pacs supporting republican candidates. julie hyman made reference to those canadian wildfires. the prime minister land and inform them are he to assess the damage. the flames and smoke forced the evacuation of war than 88,000 capital. the oilsands he arrived almost two weeks after the wildfire ignited tearing through the alberta town and surrounding areas causing several oilsands operations to shut down. dayal news 24 hours a powered by our 2400 journalists in more than 150 news bureaus around the world.

are talking about retail sales in the month of april. that is the biggest gain in a year and wholesale prices rising. the consumer price index gaining point two of 1%. will data influence the fed is a gets ready for its june meeting? here to talk about that is jim o'sullivan. nice to have you here. the data points, retail sales forecast. economist what does that tell you? jim: that helps the case for gdp growth bouncing back after the pace in q1. it is consistent with total real consumer spending. for consumerter 2% spending. this is not the only report that matters but it certainly does influence the fed and kill a

deadly numbers matter. >> you have the elections also and you think about when they will have a press conference and not. for is likely the scenario fed moves this year? think that is reasonable. i changed it to 2 after the and ultimately if unemployment is falling and we are getting some drifting up, exactly when, it is up for debate. i would not rule out june. we need the flow of numbers to help in the next five weeks. i do not think there's any question when you go back to where they were in december when they did the first move and

some moves. they backed off that in the primary reason is because of so-called global economic and financial developments. we had a big selloff in the markets and credit spread rose. the moves have been reversed in the dollars down from where was. global economics and financial romans remain a threat. financial conditions are accommodative. it influences them but ultimately it does not necessarily stop them. >> it does not create demand. how do we get to that point? what do we need to do to bring on demand? >> we have had demand from them -- employment and we have seen that in payrolls fairly consistently. the trend has been pretty consistently around 200 plus and i do not see any evidence that that has changed so demand is

there. gdp has been growing on average 2% which has been week bypassed standards. think the message from the retail sales report this morning changed- it has not meaningful in the first quarter week number was an aberration. upol: you sound kind of eight at this point or to some extent. corporate earnings were not terrific and you do not see companies full steam ahead in terms of expenditures. profits have been declining and it looks like they were down again in the first quarter. it was -6% or 7%. when the quarter started the earnings season started it was more than that so you could get close to flat on the quarter

whereas that number has been positive. when -- in addition there is no question there is a dollar effect here. revenues -- when you get the dollar up 12% on a quarterly average basis and the first quarter. that was for five -- points off of growth. no question that profit has been rising. the more reason is more positive from that perspective. carol: let me ask you about something and it has to do with what janet yellen and larry summers thing. larry summers is more concerned about secular stagnation. he said it has to be more than monetary policy. what center you on? >> from the fence perspective the have seen the employment

rate fall and inflation is below the goal of 2%. below. little bit unemployment has come down from 10%. they have been meeting their goal and i'm their perspective monetary policy has been working. it is true that gdp growth has been extraordinarily weak relative to the employment numbers. i think there is a point that larry has in terms of how do you get better potential gdp growth and it is probably not for monetary policy but that is a separate question than -- that fed officials have to address. or ever. to some extent they have to live with whatever the potential growth rate is. they with us to see a 4% potential growth rate that that is not what we're seeing right now. when you think about infrastructure you think about education and other things that will boost activity growth but there is not a lot the fed can

do. their mandate is in terms of full employment and they are very close on those scores. carol: thank you. have a night -- a nice weekend. we have more on retail and digging into the individual companies. a betterilers report second quarter after a rough start in 2016? and brazil's finance minister said they must set realistic goals. we will talk about how you was able to cut inflation and can he pull the nation out of its worth -- worst recession in more than ? century still dealing with a lot of things at this point. stick around. this is "bloomberg markets."

carol massar: this is a look at some of the biggest stories now. my lan will pay $50 million in cash up front and up to $50 million in future payments. the renaissance unit had $370 million in sales last year and has about 25 on market products with another 25 in the pipeline. and planning to nominate a directors to replace the entire board of -- the entire board. the move comes after their bid for the u.s. drugmaker was rejected. the new board members could choose to put it up for sale. theyation saying last week offer undervalues the company.

stepping downis from the board of square. he plans to focus on and infrastructure fund. that is your business update. check onan has a company movers. retailers.ll look at not just today but all week we have been hearing from the retailers, nordstrom cutting its forecast for the full year. the company habits for asnings-per-share as much 335. they cut sales forecasts like much of the department store industry. of sales in gillard's coming out with earnings that missed estimates. the company did not cut its forecast.

results missing estimates and same-store sales down .4 of 1%. storesseeing many of the underperforming. supplier third-largest to nordstrom. michael course another big supplier. all of them are suffering today. if you look at some of the other suppliers as well and what we're watching, a lot of these companies were you go to, department stores have been buying merchandise. and theut the malls real estate owners? they are also declining in today's session. malls have been seeing decline. i want to show you a chart that joe weisenthal one the bottle -- battle of the charts with today. this is the year-over-year change in sales and so-called non-storytellers. it also includes catalog and

direct mail but we are talking about e-commerce. this is the zero line so department stores have been negativery frequent sales declines in year-over-year sales and can see e-commerce, the growth is just a lie. when you look at retail sales a lot of it is because of dr. retail. that tells the story really well. carol: we will stick with retail for moment. which companies are poised to return -- reform better. we talked on the radio about this and the retail sales numbers. what you think is the most important aspect of this report? >> you have to focus on the year-over-year growth. you do see some improvement in april. what we have seen in the last week are pretty terrible results. when you do look at this and you break down department stores you

do see weakness. saying the trends are one is showing week. both are showing week. carol: we're kind of tired of the old guard. >> they want to be amused and excited. in going to a store has become boring. happens to the macy's and jcpenney, some of them have moved into the online world and they are doing it well. >> the online space is doing well for most of them, not all of them. is too small, it they have to close more stores, who needs 1000 stores? i think you'll see a lot more stores closing. has announced 18.

you need more than that to close. tried to change the model and they kind of went back and their customers like the coupons. >> jcpenney is doing something very different. the addition of appliances. they did appliances a very long time ago. it is the one area that is working in retail. it is big-ticket and has lower margins but it is not weather sensitive. when you think about the categories that are struggling it is apparel. limit on theo weather it does play a part. this is a good thing. that: let's go back to sales report.

based on what you are saying from the consumer, the consumers holding up? >> a think they are spending, they are just choosing were to spend. i do not think that more money but they are spending and saving a little more area they are going out to eat them a they're going out to travel. spending on their homes, they are shopping online. they're just not shopping in stores. still ahead, a start up hoping to make you a more efficient human being by just popping when it's -- one of its pills. markets."loomberg

carol: this is "numbered market." i am carol massar. utriboxrt up called n here. here.all ox, whatabout nutrib

kind of company they are. >> they sell what they call nutrovics. it used to mean something that would make your blaine -- your brain work better. if phil is not prescription but it has a number of herbs and nutrients and caffeine, stuff that is supposed to make your brain more alert, better memory, that sort of thing. carol: did you try it? >> i did. was a mild till that you're supposed to take on a daily basis and supposedly it helps your money -- memory over time so i have not gone to that time it. there's another one called sprint which you take when you're supposed to take when you have to get something done quickly. i took it with a colleague and

we were both typing like crazy. it is coffee combined with an amino acid which has been shown to improve the effects of caffeine along with a few other substances. help you not have a panic attack which is probably a good thing. carol: what are the regulatory oversight? using stuffany is that is approved by the fda. there are other companies that selling n-- also utropics. you do not need a perception but who knows? carol: what does it cost? >> it varies. for the first set of pills it is 40 to $50. for 10 of the sprint pills it is $15. otherare a lot of players, a lot of competition. that say other players

that their product is an actual nutropic. carroll: how big a market is it? >> they hire -- they are hoping it is a big market. s and a lotnvestment of people want to be better at with the do. the market is potentially big. thank you. still ahead. commodity markets are closing for the week. let's get a look at crude oil. you can see up about 3.5%. this is "bloomberg markets." ♪

[ soft music ] e.t. phone home. when you find something you love, you can never get enough of it. change the way you experience tv with xfinity x1. markets." i am carol massar.

mark crumpton has more from the newsroom. for: another busy week secretary of state john kerry. he is off to focus on crises in syria and, libya, and yemen. he had stage will he will join president obama in vietnam. women would begin signing up with selective service in 2018 under a measure approved. marks another step toward a day when americans of both genders may be drafted to the military. the white house has declined to say whether president obama would sign it into law. in the three months since justice antonin scalia died the u.s. supreme court has managed to avoid controversy. that is about to end. week of its term the court is expected to rule on affirmative action, immigration, abortion, and rick's debt. the series of rulings is likely

to come out on monday. the kremlin and to olympic medical -- medalist are denying report detailing a state-sponsored doping scandal. a spokesman called the allegations "a turncoat libel. the source of the report was the former head of russia's national drug testing lab. tweet for hours a day powered by our 2400 journalists in more than 150 near -- news bureaus around the world. carol: commodity markets closing in new york. let's take a look at today's biggest movers. crude down about 1%. weighing turnout against supply reduction from the u.s.. let's switch over to gold. little change. up .3 of 1%. a jump in april retail sales pointing to an improving

economy. we have seen a big movement to go. -- to gold. let's get you to click -- a quick look at raw sugar. there are supply sick of -- concerns and a rally against the dollar. we will look at the commodity trade. we do want to stay with his ill. the new finance minister has been named under the new president. he will have to deliver fast to pull the nation out of its worst recession in a century. he said the country must rein in on public spending, bring down new levels and propose fiscal targets. joining us now with more. that is quite a to do list created in terms of bringing

down public spending, also bringing down debt levels and coming out with fiscal targets that are realistic, what is the most likely thing they can get done quickly? while the finance minister knows everyone is in a hurry and everyone is impatient for brazil to get moving he is in no rush to announce specific measures. they do not want to keep changing whatever target. he said they need to be consistent and be patient and they will get things done. he announced no specific measures. carol: what do we know about the way he works and we he gets things done? >> is brazil's longest-serving central banker. he was the central banker for the two terms of lula's government in the last decade.

he had been mentioned for several posts in government and lula wanted him to be the finance minister for doma -- the second term. theas the skill to build consensus. in terms of bringing down debt levels that is another thing. how quickly can they work on that? problem.a massive the budget deficit is almost at 10% of gdp. it is a major attack. what they have said is they are aware of the size of the problem they have in their hands but they are asking us for a little bit more patience to tell us how they will tackled that and make is on adoes -- it sustainable path even if it takes a while in the short term to get us there. some ofust looking at

our reporting, your reporting become ateam, he did senior advisor. he has gone down to the private sector. can he bring back to the public sector? >> brazil needs to get out of this cold mess that we are in -- maybe he has the skill to get it done and negotiate better and not get so involved in the party politics. we will need to see what he can do. carol: what about his team and what we know about that team? >> we do not know that much yet. someone backg served in the past. he said he will announce a central banker on monday and make other announcements at the state-run banks so we will need to see what happens. need to move quickly

on everything. >> they do. quickly and hee said himself to keep the trust that investors are giving him early on. carol: thank you. the bureau chief joining us from brazil. coming up, did donald trump masquerade as a publicist to brag about himself? it is one of the unusual topics that is grabbing plenty of attention but will this matter affect voters? apple moving into the bright sharing business investing $1 er's chinese rival and when it means -- what does it mean for apple? and battling it out to be the termsaluable company in of market cap.

going back and forth in terms of that. ♪

carol: this is "bloomberg markets." i am carol massar. american and united airlines will try to beat the discount carriers at their own game, offering basic economy fares. and not including typical benefits such as being able to select the seat before getting to the airport. they are trying to compete with budget airlines like frontier. and the approval clearing the .ay the company expects the deal to

close next week. they have 40 stores in the country. and make or break time for the romeo.d alpha -- alfa sedan -- how do you say it? the critical launch in the u.s. is set for the third quarter. that is your business flash update. julie hyman has a look at another banker. is it julia? >> we have some breaking news here. it's stake inntal pepsi. you can see the stock falling off shortly after that filing

came out. held 18 million shares of the company and now has cut that holding to zero. stock price is in white and the holdings are in green. the position was taken back in 2011 and built upon to reach 18 million shares. it has been cut to zero. it is cutting its stake in general electric. general electric also fell to its lows of the session after we got these headlines. ge is down by 1.7%. i also noticed in the past two moments where starting to get headlines on bridgewater. bridgewater cutting its stake entirely and companies like coke and viacom and fossil, increasing stakes in other companies like intel. we will keep looking at these

filings that are coming out and give you any update. it varies in terms of the reaction that we get. it is also a snapshot in time. the holdings on the last day of does not necessarily mean they are doing it today. you do see reactions were investors follow along with the strategy of some of these big names. carol: thank you. now to it was presidential politics. as hilly clinton and donald trump become likely to face each other. there are growing calls for donald trump to release his taxes while the wall street journal reports that profits from a clinton charity went for a four profit company partly owned by friends of hers. -- now recordings

have popped up. i love the story. what is going on? >> it has been reported for years that he occasionally on the phone would impersonate his own spokes worsen, a fictitious spokesperson. in one lawsuit he acknowledged he did that. even though there is an audio recording that sounds like him from quarter-century ago he said on the today program that it is not him. there is some dispute but it is a strange story. he goes to this image of trump as someone who is just to frivolous, who has led a life of which means he is not up to being president and his supporters saying either it is not him or who cares. we are in a different stage. he needs more support than he currently has it carol: does he need to be more presidential or

appear that way? >> the argument that the clinton folks will make his he does not meet the standard of being presidential enough. he has redefined the image of a republican nominee. if he wins he will redefine the image of the presidency. is impersonating your own spokesman a quarter of a century ago important? like to seewould something different. maybe it resonates better. mark: this one is a little odd. it is not story. carol: ira member doing a real it was prettynd accessible. >> he likes to handle it himself.

the currently not in his own name. involvede clintons are with the clinton foundation. talk to me about this story about profits going to potentially another nonprofit that was friends with the clintons? mark: this is a complicated story but it brings together a lot of strands of clinton controversy. the clinton foundation takes all this money that is contributed to almost all of the goes try to help people around the world and here at home. in this case the money went to a for-profit company owned in the the by longtime friends of clintons and longtime friends of president clinton's and with -- questions have been raised about how wide a nonprofit is giving money to a for-profit.

a fair question. the clinton foundation has responded with the host saying this is not unusual. what has people talking is the identity of the people who own this company. not so much the practice of a nonprofit helping out a for-profit company. carol: do you see the clinton foundation tripping up the clintons? mark: there will be more stories. it is this confluence of the personal with the political with governmental and with the foundation because there is a big overlap with the clintons between who dealt with the foundation and gave the foundation and benefited and who had business with them or friendships with them. carol: let's talk about donald trump's taxes, do we care? do you want to see them? mark: we should all want to see them. there are some things that happened that do not make sense

and demands made on candidates. this makes sense. it is a basic level of transparency. i am hoping that donald trump puts them out in full, not just summaries of the first case -- page with the redaction. all modern nominees have put out their tax returns. donald trump will be expected to. as you said before he plays by different girls but we will see them and i asked -- he pays a pretty low rate. tool: what will he want [indiscernible] of hishe source investment, the nature of his investments, perhaps the people he has been in partnership with mother of all sorts of things. mitt romney who is one of the fiercest critics said there has to be a big bombshell in there. i am not sure there is. it might be some embarrassing things that there is a lot of

skepticism that trump when he says i cannot do it because i am under audit, people feel like if you could find a way around that you could. out "with all due respect" at 5 p.m. up, will write sharing help apple return to booming growth? they are investing in a chinese ridesharing company. also look at markets following the session lows. we are down across the board. this is "bloomberg markets." ♪

carol: this is "bloomberg markets." i am carol massar. apple has invested in a chinese ride service. it is a fraction that apple is

sitting on. opening up questions about investments and increased dividends. artist was asked whether apple or hold. sell, >> definitely a buy here. it is very cheap for you to profit cycle will bottom in the june quarter and we have a company with $233 billion in cash and lots of opportunities. al: if the stock goes down like it is going down is this a good stock and a trueblue deployed cash to his shareholders. when they deployed cash to shareholders like they deployed cash to china? >> they have a $250 billion cash deployment strategy and they have done a good job. what i would like to see is a bigger hike in the dividend. they just hiked it but if they a 3% yield that would be very attractive for investors.

scott: this is the biggest in china. to uber what we see more of this kind of funding for the small rival to over or other -- or other american technologies? >> it allows apple pay to spread throughout china. build goodwill with the chinese government. number three it is an interesting area and there's lots of talks about apples -- apple being involved in economist cars. think of all the cash that apple has overseas that they cannot bring back to the u.s. including china since they generated over $50 billion in revenue noster -- last year. rather applenot buy more or invested more deals like that that in five or 10 years can bring you a bigger share price instead of giving back in dividends? >> a think they can do both. a $250 billion

capital deployment strategy from $200 billion previously. part of that is dividend, part of that is share buyback. higher dividend yield would be very attractive. was earlier today. here with further details as from our joining us san francisco bureau. let's talk about apple's motivation for doing this. into the all and move transportation apple? >> no. i think brian custom a couple of motivations there. it is a drop in a very big ocean. are -- theyons than have had problems and they imovies from and

selling. it gives them access to some interesting data and technology on the ridesharing friend. apple'sim cook of pointing to hire margin services as a growth area. iss it show that apple which known so well for its incredible hardware that it is saying we are going to shift more into the software world? what this is a hint of they can do in hardware. in terms of what their next eight blockbuster product may be. this is the worst kept secret in the bay area but apple is in some capacity working on electric, probably self driving cars. -- [indiscernible]

in terms of mapping data that helps with the development of that product. that product will have a huge settlement if it comes to market and that is the higher-margin part of the business. carol: we know that apple has been hiring executives from other companies whether it is tesla or mercedes. i want to go back to something you said earlier. for having this relationship with a chinese company it does help them potentially significantly in terms of the chinese market going forward, doesn't it? alex: yes. in that transpires to be the place it is the hugest market in the world so it is an upside. haveiring elements, they some people think thousands of people working on this project in they want to see return. certainly investors will.

carol: they still have a lot of cash in hand to do a lot of things. thank you. joining us from our san francisco bureau. you can see more on "bloomberg ."st are toing up in the next hour more on brazil. it will be saying about investment opportunities after the change in leadership. we are an hour away from the closing bell. we have stocks near the lows of the session go -- down and we're looking at a 6% decline when comes to the nasdaq. this is "bloomberg markets." ♪

carol: welcome, everyone, to "bloomberg markets." ♪

carol: good afternoon. i'm carol massar. here's what we are watching at this hour. stocks and banged the week on a down note. lackluster results for major retailers. the s&p 500 headed towards its streak and four months. the acting president of brazil doesn't see change to investments -- does see change to the game in their economy. and apples bet on investing in ridesharing company didi. what does it mean for uber? there one hour away from close of training for the day and the weekend. let's head to the markets desk and check in with julie hyman. we are pretty much at our lows. reporter: