oliver quickly on in hong kong. haslinda: welcome to bloomberg markets. from bloomberg world david: from -- bloomberg world headquarters, good afternoon. last rally. -- track00 is on it for its biggest gain in nearly two weeks. twitter is giving users more say. they will no longer account -- count me attachments as characters. can they do anything to help a stock with an all-time low? monsanto reportedly ready to reject a takeover offer from , but it leaves the door open for more negotiations. we are one hour from the close of trading. julie hyman has the latest.

do we continue to see the momentum we saw in this morning? julie: we have. thee was more velocity to momentum earlier. stocks have been hovering at the highs of the session for most of the day with an aspect in the day. the dow up more than 200 point, the biggest one-day gain for the major averages going back to march 11. it looks like it has to do with evolving views on what the federal reserve is going -- is going to do, even though there was not news to change the perception here we have seen a risk-on tonight. look at the interest rate possibility using that fund futures -- what is the likelihood the fed will raise rates in june, 34% in july, almost 54%. another way to look at this, blowing up this chart that is on the bottom. you can see it larger -- the change we have seen in expectations and the big spike up now to more than 30% -- the

recovering view of what the fed is going to do in june, june specifically. looking at bonds, bonds have been reflecting that view. we have been seeing more of an increase in the yield, particularly on the two-year yield, but we had an auction that drew very high demand according to dealers. so, we are not seeing as big of an increase in yield or a drop in price as we were earlier in the session. nonetheless, the trajectory is higher. if you look at the bloomberg dollar index, you will see is continuing the uptrend we have seen the past month. if you look at the dollar versus all of its major trading partners, the last month, it is up versus them all. we have seen in all trend the dollar as of late. back to stocks, looking at the i map, not only do we have a large increase in stock prices, we the have breath, so all groups in the s&p 500 are higher. information technology group is a 2%.

financials also up by about 1.5%. shery: back to stocks, what are some of the big movers today? julie: individually, we have been watching the story on monsanto. it bears repeating what has been going on here. the company rejecting voted for bayer, sayingrom it is too low, and of stock price is below $122 because there is skepticism on behalf of market participants has to to whether a deal could get done. finally, xilinx -- similar news there. the company has withdrawn a bit of $15 billion. market cap is $12 billion. not citing anyone specific familiar with this. it is not clear as to whether a big will materialize, but the stock is reacting as if it will. shery: thanks a lot. david: before we get to have

lunch with mark crumpton, breaking news -- toyota is making an investment in uber. we have seen gm do this with lyft. we will be following this throughout the afternoon. now let's check on the headlines with bloomberg first word news this afternoon with mark crumpton. mark: new york jets owner woody johnson is the latest major public and donor and fundraiser to death donald trump according to a person familiar with the matter. he was the finance chairman for jeb bush's failed presidential campaign, and now he plans to raise money through a joint fundraising measure. the majority of americans say trump should release tax returns. a poll by morning consult surveys says 66% of those surveyed say presidential candidates should release returns. only 21% say candidates should not have to release tax filings.

loretta lynch is in faith hill, north carolina, to celebrate the police department's improvement and oversight. it was part of the tour that was created following the 2016 shooting death of police -- 2013 shooting death of michael brown. the brussels police chief -- a demonstrationy that was called to protest the center-right social and economic policies. at least one of the policeman was injured at authorities used water cannons to disperse the crowd. local news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. david: about one hour from the close, the dow is up about 1.33%. ,he s&p 500 also up about 1.3%

and the nasdaq up almost 2%, 92 points at 4858. shery: the next guest is maintaining a cautious stance toward equities, saying the at best.tlook is stephen auth joints -- joins us. we have seen a trade sideways, frustrating goals and bears. you were once a big bowl. your target was 2500 and one point. where are you now, and where you see equities going from here? the year werlier in scaled back our position and we have maintained a cautious stance since. our view is there are a lot of forces that are uncertain right now and they have to play out. they can be positive or negative. one thing that is happening today that is interesting is the negative fed announcement, if you will, is being taken positively. that is actually a good thing. look at the industrials -- what they are doing today -- they are

having a nice bounce. people are saying a be the economy is strong enough to take a thread hike. that is one thing we have -- said hike. that is one thing we have been worried about. the cyclical side of the economy is also doing well with this hike. i think that is good news. that is a positive. some of the things that worry us -- we are still out there with brexit. go either way. i know the polls are heading toward staying, but we won't know until we get through that vote. china remains an issue for us. they put a lot of credit into the economy, stabilize that, but can it grow is a big question. then, the election, we think, leads to a lot of uncertainty. this point, come at cautious, with a view that maybe things could get sunnier later in the year, but i think it is hard to buy this market aggressively at these levels. shery: your price target is still 2150. we think mr. auth: eventually we can get to 2150, but near-term we are less certain, frankly.

david: i need to give you props for your recent note, "cloudy with a chance of rain or sun." shery: [laughter] david: how are you looking at what the fed said last week and what is on the table for the next meeting? mr. auth: we have been thinking they would go in july. it is hard for them to go ahhead poll, a week before. if the polls are favorable, i think that opens the door, but what is the difference -- june or july, i think they really want to go, and unless that etiquette materials -- materially worse, think they are going to go. that is good for the banks, and we are seeing it purely like the banks. that is one of the stocks i would recommend here today even. side of the economy and stock market are popping on this. we would still come ourselves, by more of the defensive spaces, which are underperforming --

underperforming. if the fed keeps going, the dollar strengthens. that takes another bite out of u.s. earnings. it is a two-edge sword. shery: you talk about u.s. earnings, we are coming to the close of a season now, but that is not have that much of an impact on u.s. stocks. not much has changed from the beginning of earnings season and now toward the end. why is that, and a you think earnings could get a boost later in the year? mr. auth: the market does. if you look at the consensus on bloomberg, they are currently at about 17 on earnings. we are at 115. a lot of that is back-half loaded. if you look at the former 12 months, which takes you into the next year, you see a big goose, and the consensus is 135 on earnings in the s&p 500, which is a big jump. if the economy can hold on, the election does not digest, and china does not blow us up -- shery: you think china will blow

us up? david: they have a lot of --mr. auth: they have a lot of weapons, and they can at least stall for time. i do not know if they can get the growth they need. david: you like u.s. banks. european banks --what else do you like? mr. auth: we like the u.s. thanks on the interest rate story, but we think there is better valuing european banks. one of the stocks i put on the list is bp parabolic, the jpmorgan of europe, if you will. well-capitalized, the same problem that deutsche bank has, very, we think, cheap, and it is really underperformed the u.s. side. now, the ecb is not hiking yet, but they are following the fed eventually. i think the european banks -- if you have a little appetite for some risk taking here, you are on the right side of the trade. you are not paying up for something. these things have underperformed for a long time. shery: you do not advise investors to be aggressive right

now -- you are saying there will come a time to take a bigger swing. when will that be -- after the fed, after the decision on brexit -- when is the? -- when is that? it could be as early as even the summer. if you get through the initial problems, get comfortable -- if china can hold the wall, or hold the door, midi, to use a "game of thrones" expression, if they can hold their through the summer, i think we will be getting out of the wet. the election is a whole mother -- woods. the election as a whole mother topic. there are some possible permutations. you could have one side, hillary with an all democratic congress, and then on the other side you have trunk with an all republican congress, and an something in between. no one is sure what trump is going to do on trade and some of these other things. i think there is some uncertainty in the market over that part of the thing, but i think when you get through some of the rest of this, you know, the sun could come out. david: there you go.

mr. auth: my disposition is for the sun to come out. i tend to be able, but -- to be a bull. shery: flights of for a chance of sun. the more optimistic there. thank you so much. stephen auth, of federated investors. david: coming up next, we will hear from two ceos from the world's biggest banks talking about the challenges posed by the markets and negative rates. that is coming up next. ♪

david: this is bloomberg markets. i am david gura. shery: and i am shery ahn. david: let's of the major

indexes. the s&p 500 of about one point 2%, 20 points, 2076. the nasdaq, up almost 2%, 92 points at 4858. shery: time for the bloomberg business flash, a look at the business stories in the news right now. ucla has signed a 15-euro panel contract with under armour valued at $280 million. the pact represents the biggest college sports apparel deal yet. the contract eclipses the 2014 deal between under armour and notre dame, which included an equity stake in the apparel giant. david: radio giant i heart media has one and battle against media lenders, with a texas court ruling they were within rights to transfer assets be the creditors reach. the lenders had threatened to put the company into bankruptcy of the transaction. expert -- the judges agreed it was an effort to boost

profitability. shery: another twist in the summer rest the legal drama. they have replaced two former trustees, the viacom chief executive officer and george abrams, both suing to block their removal. that is your bloomberg business flash. david: the ceos of two of the world's biggest banks tell bloomberg the banking i'm it is not an easy one right now. evidence of that is a lack closing the unicode ceo to step down once a successor is named. banks,as for other exclusive interviews -- jes staley and james gorman both feet challenges. morgan stanley ceo jes staley set down with stephen engle in beijing. he says despite for corner profit falling 53% from the year of their he still feels "really good about the bank's latest results. these were tough

markets. the was almost no equity issuance, very little retail activity. there are a lot of things that made the particular set of businesses we have difficult to process. notwithstanding that, we made over $1 billion. three years ago, in that kind of environment, morgan stanley would have lost $1 billion. the model works. the returns were modest, not where we want from but i wasn't troubled by it. maybe i was on my own on this, but i felt pretty good about the fourth -- first quarter because this was a challenging environment, and we produced. in a good environment, there is a lot of upside. stay tuned. forhen: what gives you hope optimism -- a rising ages environment will help you a commodities rebound? -- help you. a commodities rebound? it starts with the business model. we have $70 billion of capital.

when i started the job 6.5 years ago, we had $40 billion. we have over $200 billion of liquidity. the firm is in great shape. as the markets start to rebound to a more normal environment, which is what we are seeing toatively -- relative february, morgan stanley will do better. shery: that was morgan stanley ceo james gorman in beijing. david: half a world away, jes staley was asked where -- where he sees european bank lane -- banking over the next two years? mr. staley: barclays is can -- committed to the u.s. investment space. we like the hand we have between new york and london. we are a set up bank and the u.k.. 30% of the country's gdp goes through our payment systems every day. we have a strong consumer business in the u k, germany, and the u.s.. we have more credit card uses in the u.s. today that we have the

united kingdom. we have a great corporate bank, a strong investment bank. we have some news on deutsche bank today. is it better for you if you are stronger on your own, or do you need at her rivals in europe? mr. staley: the investment banking industry everywhere is having a difficult time. you could argue that almost no investment bank, the american, german, or british, is covering its cost of capital. for thenot healthy financial system globally. it is not just an issue in germany. it is an issue also in new york. if you look at the return on equity's of the u.s. investment banks, you have to say this industry is still structurally impaired. francine: but this is what -- again, when do we get that repricing? structure impairment is not healthy. are we going to -- do something need to happen so that we get unlocked from this? mr. staley: clearly, i believe the answer is yes to that where we are not going to wait for that at barclays and we're going

to run our investment bank in a way that to shareholders want sooner rather than later. do you worry about deflation in europe, what that means for monetary policy, and therefore the financial markets? mr. staley: i think everyone has got to keep an eye on this noble experiment, but it is an experiment -- running with zero to negative interest rates. the impact that it has economies long-term, we just don't know. onall need to keep an eye this. i'm encouraged by what is going on in the united states right now. pre- theraged by economic winds we were facing in this vote, what was going on in the united kingdom. let's hope the global economy continues to grow and we can leave zero to negative interest rates behind us. shery: that was barclays ceo jes staley speaking in exclusive interview with francine lacqua. will lookll ahead we

at how to trade currencies and royal as speculation grows the fed will raise interest rates this summer. that is coming up next. ♪

julie: you're watching bloomberg markets. i am julie hyman. time for options inside. jim is joining me right now, and like everybody else, he is watching the fed. we have been talking a lot about the fed and other chances of a fed interest rate increase are coming for work, and you have been looking at what has happened in the past, kind of, after the first, which we, of course, first had in december. >> right. julie: what has your research shown? >> we want to draw the relationship between the beginning of rate hike -- cycles and volatility.

we went back to 1990, when the fix data begins, when s&p sector data begins that we want to in in this analysis. -- embedded in this analysis today leaves you with three tightening cycles. 1999 was in the same economic expansion as 1994. late-cycle, typical u.s. economy heating up. the fed steps in, begins to tighten. that is more comparable to the period we are you now, because we're just about at the anniversary, seven years since the economic expansion. what you find is when the fed begins to tighten in these historical scenarios, markets are lower over several months, over one- and three-month period s. also, volatility is higher. the point we are making out of this analysis is that no matter how well telegraphed is the beginning of said tightening, it does tend to induce volatility

in u.s. equity markets. julie: which is interesting. we saw stocks perform well after the fed meeting -- minutes and fed speakers, and stocks are performing well today on the perception the fed is going to be more aggressive. mr. strugger: right, for sure. if you look at the fed fund future, it is 65 basis points, less than a full rate hike price in at this point. our view is the jawboning from policymakers will he continues to have to upward momentum narrowing their perception of the world and the market perception of tightening, so that probably continues. we think they're in lies -- and therein lies the potential trigger for volatility. potential trigger for volatility in year-end options. you are looking at a dollar etf, for example. exactly.ger: a trifecta of trades to play into this environment is the fed

begins to ratchet up its rhetoric and actual tightening. new.p. -- new u.p. powershares etf. we have been talking about this for clients. sticking to the upside on the dollar has made it more interesting to them. the question is is the strengthening of the dollar sustained -- and we want to play it, go out to december, by -- buy 25 strike calls out right, and that will give you nice upside to ongoing strengthen the dollar. julie: have to leave it there. jim strugger, thank you, on how to play the fed. ♪

world atom bloomberg's corners in mint on manhattan, you're watching bloomberg markets that i am david gura.

shery: i am shery ahn. bloomberg first word news. mark crumpton. chris: bernie sanders is requesting a re-canvassing. the center's campaign says it will ask the kentucky secretary of state to have a officials review electronic voting machines and have absentee ballots. they both received 27 delegates, but one delegate remains to be allocated. a federal judge has ruled that a law curtailing early voting in ohio violate the 1965 voting rights act and the equal protection clause of the u.s. constitution. the state argued the changes were minor and ohioans had many opportunities to vote. a day after praising closer relations between the united states and vietnam, president obama today sought to promote greater freedom for the country's citizens. in a speech in hanoi, the president told activists and not

in the resent would improve vietnam's economy, stability, 30 u.s.onal power lawmakers say they are encouraged by growing defense operations with india, but they are concerned about slavery. half of the 27 million people in slavery around the world reside in india. today, the senate foreign relations committee examined ties between the world's two largest democracies i had of the indian prime minister narendra road -- narendra modi's visit next month. i am mark crumpton. david: thanks much, mark. markets close in about 30 minutes. have begun to little is live at the nasdaq's -- nasdaq with the latest. index is performing the other major indexes on exposure to biotech and overweighting to technology. the nasdaq is on pace for its

best close in nearly three months. the second biggest boost to the nasdaq are shares of apple, up three days in a row, with a near-term rally that would set off a disclosure of a nearly $1 million position in apple by one buffet's -- warren buffett's berkshire hathaway. it could be upside based on a report yesterday with apple asking suppliers to increase production plans for the iphone 7. shares of apple are actually higher than the open -- the bearish open after the bearish march report. a round trip here for the shares with apple. the second -- actually the biggest boost for the nasdaq today is microsoft. the stock is nicely higher, up 3% -- more than 3%, after cowan upgraded microsoft to an outperform. analyst gregg moskowitz is citing the potential for revenue acceleration in the microsoft office suite, and he is bullish on the cloud business, saying more than 10% upside potential

for a stock that is down 7% on the year. perhaps a turnaround for the shares of microsoft according to wells fargo, david. david: abigail, we will talk about twitter and a couple minutes. had a really, really down day. what is the latest on that company? is down today,r more than 2%, and it stands out amongst the technology strengths. we had a downgrade to sell from neutral. he is saying there is advertising for tea, a tough road ahead, and he says hope is not a strategy -- fatigue, a tough road ahead, and he says hope is not a strategy for twitter, stock down percent year to date. -- 40% year to date. shery: for more on twitter, let's bring in bloomberg analyst jitendra waral from san francisco. twitter has done so much to attract new users -- streaming live nfl games later this year. it doesn't seem to be catching

on. will this make a difference -- does allowing users to have more freedom with the limitations and characters, so one? jitendra: not big enough. the biggest concern -- brand advertising fatigue was a bigger issue. our brand advertisers walking away because user growth is not picking up? is notve to show that happening consistently over the next couple of quarters, and actually show these changes are making users come back, which we have not seen so far. david: i'm struck by the way this has happened. there was so much conversation about twitter changing the character limit. it seemed to drag on for months at a time. the same thing happened here in a compressed way -- whether a link should count toward characters. compare that to other company's were decisions like that -- yes, they are well thought out, but thought out behind closed doors and they happen. what do you make of the

deliberative process behind this change? jitendra: if you look at the change, the time it takes for the change, and compared to google and facebook, already looking to ai and the next leg, versus twitter stuck with fixing past problems. from an execution standpoint they're are not moving as quickly as their competitors. about exactly -- talking their competitors, facebook, snapchat -- they are getting into news much more, and that is something twitter had an upper hand in. what does this mean for twitter in future revenue, especially shen it comes to mobile ad where they do not seem to be doing great there? jitendra: if you look at the mobile advertising, it is very top-heavy -- google and facebook , the next players have single-digit market share. with snapchat beating twitter in mobile app usage in the u.s. this month, we saw its -- we saw with comscore data -- the worry

would be the shift -- would it make it more difficult for twitter to hold back its losses happening in terms of user growth and brands both? david: i was talking to brian weser a little while ago, and he said you have to scale back the and visions the company -- you cannot say maybe someday twitter will have the user growth facebook category will be as big as facebook is. are you of that mind as well -- these are two separate entities, two different things? jitendra: absolutely. the strength of twitter -- if you focus on the power users -- they have more -- in general, influential users, it is small. having a mindset that they are not trying to be facebook, they are different, i check in different types of advertising, that would really help. shery: before we go, let me touch on sony. i know you cover company assaulted their profit just

missing estimates -- a lot to do -- not only because they were hit by that earthquake, but also because of just a slowdown in the smartphone industry. their strength in the gaming industry with movies -- you have "angry birds that birds" thatangry they are distributing -- will that make up for things going forward? jitendra: there are three legs -- what is a stable entertainment business for the next couple of years. you have the gaming business growing strong with vr and subscription networks. and the earthquake impact and the smartphone slowdown -- those are the near-term hiccups. long-term, the business would have opportunities in automotive and the internet of things, and henceforth. gaming and stable entertainment, even the financial services business that is contributing a big chunk of their profits is what is, sort of, like, taking them in a positive territory

with investors right now. david: jitendra waral, to a very much. jitendra waral, bloomberg intelligence analyst joining us from san francisco. another company seen a dramatic fall in its stock today is best buy. shares turned lower on news is cfo will be stopping by -- stepping down. shery: david schick is an analyst that covers best buy. he currently has an overweight rating on the stock and joins us now from washington. thank you for talking to us. what happened here, because the cfo came back from retirement to join best buy in 2012. what led to this resignation, but also where does the team go forward estimates is this a big -- forward? is this a big negative on the company? mr. schick: this had to happen. sharon had to retire at some point. she came back. she was instrumental in forming

a much more efficient company, focusing on market expansion rather than sales for sales sake. she was going to retire. this had to happen. it is not really change the position they are within the industry. it doesn't change the framework they have, i think, for operating margin expansion and return on capital. so, it is the kind of news that moves stocks in the short-term, but it had to happen at some point. david: situate best buy for us if you would hear -- a company largely -- i look at i could buy a television on amazon, and walmart, if i wanted to, online as well. how essential are the big-box stores going forward -- this is a company that is going to need physical space going forward? mr. schick: well, you bring up a very important point, which is best buy is used to competing with online -- amazon, walmart -- the customer has a lot of

options, and it is very difficult. it is very difficult to sell hard-good retail in a big-box, compete with price every day with folks without rent, but what we see with larger ticket purchases and consulted purchases, consumers do not mind buying from a place they could return it. that is one element, and the second is what business models are used to computing. 24% online growth for best buy, that is an acceleration from the mid-teens we have seen. on the channel work since and categories. they are doing very well online. david, best buy margins have recovered from 2013 lows. that has a lot to do with cost-cutting. given the profit forecast missing estimates, do you think they should even cut more cost, and do they have room for improvement? -- d: mr. schick: there is cost cuts

in turn parts of the business, investments in other. they were higher in 2013 and 2014, higher now than they were in 2015, and it is a holistic view of how they go to market and how they service the customer. it is not simply cost-cutting for cost-cutting sake. it is modernizing the approach to the customer. david: give us the bright spots -- where is best by doing well, in terms of selling what, or, you know, where is it doing well from this report? mr. schick: sure. first of all, i was a cop store sales are about 2% better than the initiative and gaining share. you talked about the difficulty in the smartphone business. the investment world knows that. to be running a flat comp while the product cycles in mobile and tablet are negative, they are gaining share. home theater did well. parts of computing are doing well.

we think there is a better product cycle, including the potential for virtual reality -- not to move the needle, but get excitement going at the end of the year. mark seven for mobile, and maybe computing at the back-half of the year. treading water listen private is a fun thing, that's fine thing, and i would again .2 the 25% online. that is a bright spot. shery: you are for joining us. david schick of consumer edge research. david: toyota is making an investment in uber. we will look at the road ahead for the technology coming up next. ♪

bloombergs is markets. i am david gura. shery: and i am shery ahn. the time for a look at the bloomberg business flash, a look at the biggest stories in the news right now. toyota is making investment in uber to explore a ride-sharing service. they're making a strategic investment in the company that will include toyota special vehicles to uber. david: how big of a deal is this -- tunis from detroit, bloomberg auto analyst jimmy butter. this is -- and jamie butters. this is another in the treatment deals. we had the gm and lyft deal not long ago. jamie: the auto industry is being assaulted by all sorts of change, and least of those is this constant -- not the least of those is this ridesharing is his. -- it changed the way might change the way people

choose to drive, choose when to own a car, or when not to. nobody wants to get left out. toyota has a lot of money. it is easy to make an investment and see what is there to learn. shery: how big will the investment be -- do we know the size of the investment or what the partnership will look like? didn't say,ompanies and they did not play that up as being a high priority. presumably, if it was big, toyota would have to disclose it as a material amount. we are working with our sources, but the indications are that is not a large investment. it still doesn't mean that it is not important because they get to sell cars to uber, and as david mentioned in the intro, we have volkswagen investing in get , gm mention -- investing in lyft. there is a land grab in the industry. with is anning interesting -- with uber is

anxiously situation keep an eye on. why.: do you know i got linked to the party -- wide toyota was late to the party? gm got 9%, which makes them a leading shareholder, and it would take more than that to get the kind of say in uber, which has power itself. maybe that was a better fit for gm, i would think. shery: uber has faced a lot of resistance worldwide -- european lawmakers, places in asia as well. will toyota be able to deal with this, or just doesn't matter with them and it uber is a one-time investment with? hase: certainly, uber caused a lot of construction in the taxi market. unique about places in new york where drivers or owners have to invest so much money in the right to operate a taxi, i'm in

there is is very similar to a taxi-like company, they call it ride sharing, but it acts like a taxi and it undermines their business. you get pushed back in paris and other cities where drivers feel undermined. to much of that flows back toyota -- probably not that much, but the closer they are uber, the closer they are to having the collateral damage. david: the close of trading is minutes away. a look at the major averages. the dow is up 1.3 percent, 223 points and 17,003 at 16. the s&p 500. the nasdaq is up 2%, 96 points, at 4861. ♪

markets close in about 10

minutes. julie hyman has your market check. julie: it looks like markets will close it just about the highs of the session. stocks have been rising through the day and the nasdaq is broken above 2% for the day. the down about 223 point here, as investors look at the prospect of higher interest rates and are not too frightened by it, because it appears to be underpinned by better economic data. sales the latest today to rise to the highest since 2008 -- new home sales the latest today to rise to the highest since 2008. look the advanced decline number. it looks at the stocks rising versus falling. it is the biggest one-day gain for the major averages since march 11. you have the steepness of the advance and the breath going for 10 look at the bloomberg, another way to measure it is looking at the imat. all the groups are in the green. it is a broad-based rally.

all the groups in the s&p 500 are higher. big-cap technology has been part of it. if the economy is doing better, this is a group that is poised to benefit. microsoft getting an extra boost from being upgraded at colin today. apple continuing what has been a recent run for the stock. alphabet painting in the rally. the large banks have been doing -- participating in the relics of the large banks have been doing well, which they have been habitually when we have seen yields gone -- going up. on the bloomberg -- that function, i'm looking at thebkx versus the 10-year yield. it has struck steadily with bond yields thus far. the prospect of higher rates is rates a boost from potentially. david: giuliani, teamwork. let's dive deeper -- julie

hyman, thank you. let's dive deeper into the market. is stephening us liberatore. thank you for joining us. mr. liberatore: two or for having me. shery: we have the yield notes -- the highest nielsen the december auction. what does that tell us about a potential rate hike? mr. liberatore: it's indication that the markets are thinking, look at the way the fed has been discussing their intentions, but they have made it very clear they would like to hike, that is where yields have risen. the market today -- the auction went well. it was rated outstanding. i think it is a further indication of how much the market is no somewhat fighting -- is still fighting the fed and its view going forward. let's talk more about

that. it seems up the fed has been telling you guys in the market this could be coming, we're dead-dependent, etc., etc. what accounts for the disconnect, as you see it? mr. liberatore: we have had some any opportunities with the fed has said we want to raise, and then they postponed because they were faced with a variety of issues, whether it was economic data or geopolitical issues. they have come up with whether or not the fed is in a position to go forward with raising rates the way they have. we started off a year saying they would raise four times this year, and within the first six weeks of the year they adjusted back to two. shery: you think they will protest --postpone again? i do.beratore: i do not think they will go in june, too close to the brexit vote. we are seeing runaway inflation and tremendous work out with the rest of the world slowing. i think the fed is in a position to be forced to move in june --

i don't think the fed is an position to be forced to move in june. david: we have seen longer bonds oxygen j -- in europe, like 50-year. when that happened in the u.s. question records the message you take away? that has been: discussed and domestically, the fed should be looking at locking in the low rates longer. shery: recommend could be a missed opportunity once the rates go up. mr. liberatore: you can make the case that for the benefit of the taxpayer we should be looking at longer-dated paper like this, but i think the treasury has always been focused on maintaining a normal curve in order for the bond market to function properly as the most liquid bond market in the word -- world. five-star mention a bond fund -- how do you build this and what to look for question mr. liberatore: we are running this as a actively benchmarked to the aggregate. we are looking to generate a

double bottom line. towant to generate access performance financially and provide a positive impact or two investors. david: challenging to run a green muni fund? mr. liberatore: ashley, it has been fun. it gives us a competitive advantage at the end of the day because at the end of the day you get paid for avoiding losers not picking winners in fixed income. it leads us to investing and supporting those that are the industry leaders in respect of spaces. shery: stephen liberatore, thank you for joining us. mr. liberatore: her for having me. david: a quick look at the numbers. next.you miss" coming up ♪

>> moments away from the closing bell. >> joe weisenthal is off today. ♪

>> u.s. stocks closing near highs as the s&p had yesterday in over two months. >> the question is, "what you miss"? energized by healthy employment. the debate over helicopter money. why is it not the first option on the central bank list? oliver: euro area finance ministers meet in brussels to deal with greek relief. can they find a compromise? we begin with market minutes. the dow is up, stocks at their best levels of the session, joining the rally that we saw overseas. if you break it down into 24 industry groups, every single one of them climbed with the worst performer being energy ga