>> from bloomberg world headquarters, i am betty liu. vonnie: i am vonnie quinn. betty: janet yellen sees interest rates gradually rising. she spoke of short time ago. janet yellen: economics is broad. a good stream growth in the united states over the past year. i am cautiously optimistic these headwinds are now fading. betty: and the oil rallied marches on with crude topping months high. i'll be debbie officials say the worst is over. -- abu dhabi officials say the worst is over. to meet the top ipo, japan's messaging app line

three testing the waters in both the u.s. and asia. and it exceed what has been an miserable year for tech offerings? markets are closing out in just two hours on this monday. let's go straight to the market desk where ramy inocencio has the latest. reporter: we saw the markets take a leg loader -- lower, but we closed high today. it was a very short leg down over from yellen speaking today. the dow is up 120 points, 0.7%. the s&p is up 0.5%. the nasdaq is up 0.6%. onwas looking disappointing friday, but she said you should not a talent -- attached to much significance to one labor report. looking at the mood from today's market reaction, it is off of a very limited volume.

it is quite surprising. take a look at this bart chart. this is the fps function on the terminal. you can see the orange of the chart, blue and salmon. this blue in spreads -- represents information technology, down 25% against the moving average. health care is down 22% in terms of volume, also 15% down in terms of consumer discretion. on the flipside, this is not much of a flipside. financials are up nominally 3% and financial -- energy a little bit. energy is the biggest leader on the s&p in terms of sector gainers. its also take a look at what is happening with the s&p since may 21. we point out may 21 because that was the last new high. 0.96%. we are less than 1% away from that record high just about last

month, may 21. we will see if we can crack that today. let's take a look at what is happening in terms of the biggest point gainers on the s&p. that would be these behind me. apple is up 1.1%. the news is that india could accept that apple could not have to go with the local sourcing rule india has put out. schlumberger is up 4%, exxon mobil up 0.9%, both of them rising on rising oil. all hitting -- oil hitting $50 a barrel. with that said, let's take a look at the biggest percentage gainers on the s&p. those happen to be oil or drilling related. equities, look at that 12.3%, domestic energy up 8.8%. this is the biggest jump in two weeks. cfx energies of the most since the past month, 8%. betty: thank you so much.

let's check in now on the bloomberg first word news. mark crumpton has more. goes intoary clinton tomorrow's california primary needing just 23 my delegates to clinch the democratic residential nomination. that is according to the associated press. voters in california, new jersey, and four other states to the polls tomorrow. a baltimore police officer charged in the death of freddie gray has opted for trial by jury. the driver of the van transporting great was mostly negligent when he failed to buckle gray into a seatbelt and call a medic for help. six officers were charged in gray's death. another officer who chose a bench trial was acquitted last month with assault and other charges in connection with the arrest. metchinese vice premier with u.s. trade representative kirk michael foreman today. is the eighth round of the

strategic dialogue. they are marking on topics like how to advance both countries with economic openness. the president of turkey and the king of jordan have joined a long line of world leaders, religious figures, and superstars such as beget mohammed ali's funeral on friday. billy crystal and bryant gumbel are also some of the names on the list. bill clinton will deliver a eulogy. the dalai lama was invited but sends regrets he will be unable to attend. news 24 hours a day powered by 2400 journalists in more than 115 news bureaus around the world, i am mark crumpton. back to you. step -- stocks are gaining with the s&p nasdaq running higher after slipping following the disappointing jobs report on friday. vonnie: the next guest is saying

the fed will not raise it rates in june, they will wait to the brexit vote. he is joining us now. tony, i know you were listening to the fed chair very closely, and trader is going off of the table as well. all possibility has gone away to look at w.a.r. p. the whole thing was so ridiculous. -- >> now it is totally off the table. i can't imagine people trying to invest their money off the individual data. severalhe did mention things like productivity, whether that would improve, or the labor market was going. your stock relies on this environment. >> i made a mistake of not technology when the market recovered that the corporate bond market did not recover. the index state high. the tone of the credit private

credit market never improved. rate low.lutely the it was unique since 1971 to not have a 15 to 20% as an p5 hundred -- s&p 500 move to agree with what you have seen corporate bond market improvement. that is where i try not to focus on the individual data points but the history of what happens when you get such credit in the so when you. betty: look at friday, you say this is an opportunity. >> sure. i went back because everybody was freaking out about how disappointing it was. i looked at everything with year over the last two years, you have had a larger sequential drop in payrolls. i think the idea, and i got a point out since 19 -- betty: where in the cycles were the sequential -- >> every year. outside of the recession years. 2011,ically 2014, 2013,

1995, 1996, 1997. it is important to her member since 2003, the average payroll number from average reports gets revised up by 40,000 jobs. vonnie: she did say friday was disappointing. she meant and china and europe and the uncertainty surrounding those issues. can you really say this year will be the same as any other year the fedcreated 2013 was backed off and we got that stimulus. we will not see this, but announcing rates would act in that way. you have already seen such a dramatic drop. it was interesting on friday. everyone is worried about the guilt -- yield curve. the short and thanked more. you had a steepening of the yield curve on a statement where you are down 11 basis points.

what we need to do is look at what creates recession. historically what creates recession since the early 1950's is an inversion of the yield curve. is just down credit. without credit, a service-based economy falters, and you have negative earnings. betty: you just don't see that right now. >> it would be historically unique. betty: and another guy said the markets are premature and their reaction. what he said in the greenberg -- bloomberg news conference, it announcepremature to this for the rest of the year. investors will continue on a quite on tile interest-rate journey this year and matter what. some volatility is here to stay. >> but i don't think it is just fundamental volatility. .here is structural volatility regulars from dodd-frank took the banks out of proprietary trading.

so the market is not going either direction. wall street is not allowed to play. the banking side of wall street. so the corporate bond market is located in february and january because they could not retake their selling. liquidity as much as fundamental -- fundamental civil he cannot shift as fast as the body market despot a market. vonnie: why are we seeing more investment order -- why are we not seeing more investment. even janet yellen talked about that. fear among such investors towards the stock market. that includes ceos. for six years, you have been able to improve your earnings for corporate share repurchase programs. dividend increases, returning money to the shareholders. that has increased to where i think it should be sold. the bond or get trade is pretty much over, and now it is a much

more offense of trade. i went neutral mid-march after use of the big move in the market. got back in the game mid-may when the corporate bond market improved like it did. so you need to have at least 15% six to 12 month move. the thing i like about this, it is not the janet yellen will not raise rates until december. it is just based on historic president, what happens in the economy when the private sector has credit flowing freely? may was a record may. offensively, financials would be information and technology, a basket of deep industrials like energy and materials. there is real recovery. betty: all right, good to see you. cheap market strategist at kenyon annuity. at the bottom of the market, we hear from dennis lockhart, president of the atlanta fed, and what he said about interest

rates. vonnie: up next, fixing china's economy. china can see the weakest growth in the quarter of a century. and here's a look at the growth over the past five years. ♪

♪ you are watching bloomberg television. this is the business report. here is what we are watching. gets aitaly's premier huge news from a chinese interest giant. vonnie: leslie is expanding in china with products on the e-commerce side.

china.le is expanding in public and private debt. how china can achieve economic reform that it needs. vonnie: chinese retail giant assuming,'s group -- suming pursuinggroup is control of a major european sports team. purchaseso that will new shares into malan. wagering on e-commerce to list sales. the of unveiled 57 products new to the chinese market on alibaba's cap form -- platform. these are not available in stores. second-largests oil producer says profit fell 59 percent as oil prices declined to 812 year loyal -- a 12 year

low. russian producers have been partially buffered against the oil,in crude by weaker which includes taxes that decline with lower prices. and the u.s.-china strategic dialogue is now underway in beijing. we learned that china must improve communication on that monetary policy. >>-when you talk to the economic policy makers, there is a question that they understand what they need to do in terms of having market forces become much more determined of resource allocation, in terms of opening areas of competition internationally as well as domestically, in terms of excess capacity. vonnie: it is time for the bloomberg quick take, or was invited content and background. -- where we provide content and backward.

we examine the challenges that china faces. let's dissect what is hurting china's economy. swellingompanies, public and private debt. massive overcapacity in the property market, and that is just the start. an aging population, environmental degradation, deep-rooted corruption. the battle to contain these challenges is playing out in different ways across the 31 provinces. no one knows all of this other than the chinese leaders. in 2013, china completed this transfer of power. -- jinping -- she's in pain the government abandoned the one child policy crackdown on bribe taking, and try to make the currency more tradable. and then this happened. the economy ran out of things.

the growth slowed to 6.1% last year. they shifted from exports and manufacturing to services and that took its toll. trillion in $5 value in front of the government to intervene. so what happened to embracing market forces? here is the argument. on one side, the imf and china's trading partners say the country needs to loosen the guiding hand if they want to seek economic reform. on the face of it, tiny leaders agree. but in a pump up the stock revealing the impulse to shelve reforms when the going gets tough. spiraling debt has become the greatest priority to protect , but the whole economy could founder. betty: that is the global business report. for more stories, go to bloomberg.com. staying on this story, the fed

and how janet yellen is speaking at a roundtable event in west philadelphia right now at the west philadelphia skills initiative. you can see her right there. patrick parker. you can watch their comments on the bloomberg at live go. ♪

betty: this is "bloomberg markets." vonnie: let's head straight to the markets desk where ramy inocencio is looking at company movers. ramy: negative right now. let's take a look at the home repair. we take you to home depot as well as lowe's, both falling on the order of about 2%.

cleveland research says that expectations for the full-year upside we have both of these companies is now being edged back to original targets. they say they have a notably softer april, and that is part of that. home depot seeing the lowest since march, lows since the mid-may. i went to go back to the hog for all of those dabbling in the hog, that is harley davidson. harley davidson also down 2%. this is in part because goldman sachs has downgraded this talk -- stock from neutral to neutral neutral. registration checks for the second quarter have been stalling out, people not buying as many harley-davidson bikes. goldman sachs is also marked lowering the price target to $50 a share. and onwards from the hogs two handguns, also falling today. 2.5%, order from 3%,

storm move your down 6%. this is because the background checks year on year and month on month or both falling in terms of these. pointmillion versus one -- 1.5 million euros year. also put froms buy to sell. i will give it back to you. vonnie: you may know these people. there carter network show is entering its fourth season. but the question is, is this the year their alternative style of comedy will go mainstream? >> you can read all about it in the latest bloomberg business week. tim and eric, your fans. >> i don't know them.

years,and eric s few they remain, they are comedy. it is weird. their show out of austin was on it 12:30 in the morning on adult swim, which is cartoon network. handed is entering its fourth season with dr. steve -- and it is entering its fourth season. instead of making their own comedy, they are doing something different. they are talking about how other people may comedies. betty: why is hollywood interested? >> is guys were making their own weird show. betty: it is weird. >> if you are at work, i recommend waiting until after work to check it out. i have been doing it at bloomberg. than making that awesome show over and over a last few, over

years, they have a piece that has been reducing tv for outsiders. have you ever seen nathan for you on comedy central voter david: i don't get out early in the morning. an amazing show. it is all about business. our viewers would like it because this guy nathan gives awful advice to small businesses trying to help them. then it gets weirder. there is the eric andre show which is an unbelievably, beautiful, decomposed version of a late night talk show. another doing another one that will be online. it is all perfect when television is breaking apart, and a voice like this is valuable. yeah, television is breaking apart. why is this so valuable. >> i talked to the head producer of the simpsons. he said, i don't think there will be another show like the simpsons or friends, the myth

shows to please everybody had attract huge audiences. going forward, as the internet and tv blur, what will be valuable as eccentric voices, even if they turn off some people, and not everybody like bonnie knows them even if they are cool people. vonnie: it should not be an excuse. >> it could bring audience that is sticky and obsessed with the work and dazzled. those are the kind of voices that will be valuable. vonnie: always telling us the hit ways. you can tell the story in the latest bloomberg businessweek. ♪ e

betty: this is "bloomberg markets." vonnie: let's start with the headlines. mark crumpton has more from the newsroom. isk: tropical storm colin

gaining speed and strength as it takes aim at florida later today. it has maximum sustained winds at 50 miles per hour with some slow and the strength possible. the center will approach the coast of the florida big bend. this afternoon or tonight. governor rick scott has declared a state of emergency. residents in on oregon town have been given the all clear to return home. they were repairing damage from the train that crashed and sparked a fire. 10,000 gallons of oil have been removed on the plants. president obama will make his first visit to spain for meetings on the economy. then he will be in poland beginning july 7 for a nato summit in stopping that he will meet with the prime minister during his visit. he will hold talks with spain's king.

nba m.v.p. steph curry is withdrawing from consideration to play for the u.s. olympic basketball team. he decided to pull out for his words, several factors, encoding recent and ankle injuries. -- knee and ankle injuries. state leads the series 2-0. global news 24 hours a day powered by 2400 journalists more than 150 news bureaus around the world. back to you. let's look at commodity markets closing today. oil trading your the highest price in months and signed the market is rebalancing. you can see 4969 up about 2%. w to you after a 12

year low earlier this year. vonnie: and your morning glass of orange juice may be getting costlier. they jump to the highest in two years as tropical storm: crosses over into florida. heavy rain damaged trees in brazil. betty: nickel is trading your the highest prices in seven weeks. there are concerns about the destruction of supply in colombia due to workers strikes. that is the friday jobs report, sending their mark into your reaction mode and setting up the question of how the head is digesting all this economic data. vonnie: early this morning, atlanta fed president dennis lockhart talked about what is going on his mind. i think the combination of the jobs report on friday and the brexit consideration justified patients.

but i am speaking only for myself. the meeting is live, i don't know how it will come out. the committee could arrive at a decision to increase the fed funds rate. as i assess the situation currently, i am prepared to be patient. reporter: what does patient mean? >> patient for me means first getting beyond the brexit vote and seeing how the data comes in for the next two weeks. my fundamental view is that the economy remains on a moderate growth track. let us say around 2%. and that it will be sustained for the rest of the year and beyond. myi am not really changing overall view of the economy just because of the jobs report on friday. however, the weakness of the jobs report is something i think justifies a little bit more patience. you don't think it

is a new trend, what you think happened? >> there are two or three ways it could be interpreted. the first is that it is indicating a slowdown in the economy. i don't believe that is the case. is itcond interpretation is the natural slowing of job generation as we get closer and closer to full employment. that is clearly a possibility. the third is what we have seen and this most recent report revisions to earlier reports is the waxing and waning of data, to and fro we see in the numbers and economies that will never be totally linear. that is possible as well. the key point for me, it does not take me off of my basic view of the economy growing at around 2%.

reporter: for the fed policymakers, it is where the reward is eerie pce inflation is up. we came with the job report, labor and short supply, prices going up for eight months. what is the cost benefit ratio at this point? >> i don't see a lot of cost to being patient the july meeting at least. so i don't think the fed behind the curve on the point of view of inflation. i think we can, i'm speaking for myself, but we can be watchful and see how things develop in the next two weeks. reporter: let's talk about monetary policy itself, still in correction in. -- still extraordinary. the be a floor for inflation, or

is it contributing to growth at this point? >> i have to believe that the policy that now stands continues to stimulate the economy. i don't see that it is putting a floor under growth and inflation. i think it met stimulative. that is not to say that the neutral rate isn't fairly low, but nonetheless, we are still at it stimulative stance of policy. reporter: 40 see the fed funds rate at the end of the year? where are your dots? >> i will revise my inking on that desk thinking on that since december. in the school -- i believe we have enough meetings, five meetings including june next week.

there are enough meetings to conceivably if the data is justified to go to three, move. i'm thinking in terms of two moves between the end of the year. that depends on how the economy performs. betty: that was atlanta fed president dennis lockhart. great interview. in the next 20 minutes of "bloomberg markets," making corporate boardrooms more diverse. it is with women in the corner office are much better at appointing women board members. however, with women holding the ceo title, less than 5% of s&p companies, little progress is being made. vonnie: the japanese messaging app known as line is in line to become the biggest tech ipo of the year. rather lackinghe year for ipo's? betty: companies that have gone

public this year are few and far between. ♪

♪ betty: this is "bloomberg markets." vonnie: it is time for the bloomberg business flash, looking at the big missed desk biggest stories right now. selling steel in texas and

oklahoma. tointerest in -- $1 billion undisclosed buyers. million, devon will sell acquisitions in the aunt arctic -- antarctica. they: another twist in sumner redstone legal saga. it is imperative that redstone be submitted to a medical exam. they are trying to block removal billion media empire. in court documents, redstone's daughter and others are trying to convince a calm examination. vonnie: facebook founder mark zuckerberg found his twitter account hijacked. he released a statement saying none of the victims nor their accounts were accessed. affected accounts have been

resecured. that is the bloomberg business flash update. let's go to the markets desk where ramy inocencio has the latest. ramy: if it is from the ground up, it is up. let's take you to wti crude. more thany a little 2% right now. it has been jumping for the marked -- for the most we have seen in the past seven months. this is the first 2% rise in the past three weeks. we did see earlier when janet yellen was talking, a leg down. we have recouped most of that over the course of the afternoon. we did see this problem on signs supply isl oil receding. militant attacks in nigeria of course as well as the weaker dollar pushing interest on commodities priced in dollars. it fell off of what is happening, let's see the other oil makers. halliburton up more than 4%,

phillips also 2.7%. these are food commodities. take a look at what is happening with wheat, corn, and soybean. they are all up. , this is getting a november high. the reason is whether-related. a lot of rain in russia is slowing down the planting season and raising concerns there may be fungal diseases. with corn, whether is also an issue. up 2% here. it is a 10 month high, but this is a lower south american outlook because of weather. b mo is saying falling south american profits and more demand from china is affecting the price. you got stuck about fertilizer we talk about -- you have got to talk about fertilizer, and this is falling. products --saint

the chinese economy will keep buying more and more potash. 6.3%. is up betty: thank you so much. vonnie: bloomberg recently launched a gender equality function that provides investors with valuable reference data on gender equality. accesss you can statistics and product offerings and whether companies support gender equal legislation. some of the biggest companies in the world. betty: new research shows the impact it is having on more diverse workforce. a new analysis of 1000 corporate board rooms shall women in a position of power have a lot less trouble than men have at finding other females for the key roles. here to explain those findings in today's edition of walk the

talk is stephanie. she is the cofounder of women on 2020. surprisingly, women don't need to have binders full of women to figure out where they are. >> that is correct. show threer studies things. when women are in leadership positions as ceo or board share, there is a significant more gender diversity on the board. secondly, more seats are not held by a small group of elite women. in fact, we found was 75% of female directors on the fortune 1000 are only one of those large company boards. that is a great opportunity to find qualified women. betty: you say there is more breadth. why is it not being common voter >> there is a number of reasons. men tend to know men in their

network and don't know how to reach out and attract those additional women. vonnie: so is there a system of mandates in certain countries, 20%, 30%, some of them as much as 40% are supposed to be put on boards, government mandates. is that something we can bring in in the united states? with that be acceptable to companies? >> i don't think companies want mandates. what we do need is more men to get involved in this issue and realize it is a profitability issue, not just a women's issue. betty: what research do we have on how men view this topic? >> men don't think necessarily that gender diversity is a priority. that is where the campaign comes .n, 2020 women on board

we want to reach out to both men and women, engage them in conversation so they realized companies with diverse towards are more profitable and provide a higher return to shareholder values. betty: why the conversation on boards and not more broad? >> the tone is set from the top. when more women are on the boards, then they will participate in more improvement processes to get women involved in all parts of the organization and let them achieve greater participation. betty: i believe i read through one of the research reports, it may have been yours or someone else's. when more women are on boards, companies, there is a seeming pattern that is different from the way companies engage less in m&a, what kind of pattern -- is that true?

are there patterns? >> again, it is hard to necessarily talk about causality in terms of pattern. women tend to bring a diverse perspective. that is what we are looking for, diversity of thought. the board is not just sticking in the short-term but sticking in the long. the implications of decision has both in thepany short term as well as in the long run. i think that value is one that women can bring as well as looking at risk in a slightly different way than men. vonnie: beyond the economic benefit of having more women involved, what other women benefits are there? they are numerous, i am sure. , theving women involved benefits are numerous. other than profitability, women tend to be socially conscious.

they tend to think about how a decision impacts both the company as well as the stakeholders, employees, consumers, and the communities. i think that broad perspective is really invaluable for companies today. vonnie: and you think, i am curious about this -- there was some talk about policy. do you think hillary clinton in the white house could help your cause? >> absolutely. anything we can do to give women a greater voice, whether it is in politics, a greater voice in the boardroom, i do believe that will help transform corporate america. that is really what one of my passions is. giving women a larger voice, we will make the u.s. and even the world a better place. betty: thank you so much. cofounder and chair of women and boards 2020. the bloomberg equality index, go index on bloomberg.

vonnie: you can see the leaders and the laggards are doing well because they are already in the index. betty: it is hard to find companies with zero. shery: you can learn about the economic performance of having women on boards and ceos at g ei index. betty: it started as a messaging app and branched out to merchandise and more. outline appears to be heading for the -- how line appears to be heading for the biggest ipo. ♪

♪ betty: this is "bloomberg

markets. " vonnie: look to be the biggest initial offering, japanese messaging app line is making itself public. it is listed in tokyo and new york sometime late to mid july. betty: the goal is to raise between $1 billion and $2 billion and have valuation near $6 billion. let's bring in emily chang in san francisco. that is a lot of money to raise. what exactly are they planning to do? make a big push into the u.s.? emily: a big push to u.s. investors to get them into but they ares ipo, focusing on expanding in southeast asia, looking at companies like, countries like indonesia. what is interesting about line is they are possible. it is a narrative they are pushing. they are hovering around 200

million users for quite some time. if you look at tencent, which makes an app goes to line, they have 700 million users. there is a huge disparity. line is doing things like bringing everyday tasks like getting a car or ordering food within the app. something facebook has been experimenting with. if you compare them, you may think of facebook and snapchat as their competition. they have struggled to get beyond the japanese market. if they are able to pull this ipo off, this of be the biggest ipo of the year. globally, it has been an incredibly dry market. line will be testing the waters. vonnie: they did try to years ago, and it did not happen. emily: they were going through

management issues, they replaced their ceo. it did not happen. as you guys know, the market had been difficult when square and match went public. there is the idea that potentially the window was reopening, but it hasn't happened yet. the jobs report for last week will not help. when you look at what is ahead in the ipo pipeline, so far there is only one company with the techish base that will go public, and that is lugo, and internet software company. there are a few more, even though tenet as well for the ipo deal, but it is unclear if that will happen. betty: so what do you make of the valuation? it is an interesting violation. it does not compare to what you are seeing at tencent. some people say it is -- you

look at the fact that they are not growing. their revenue stream is fairly diversified. you look at facebook and twitter , when they went public, advertising made up 97% of revenue, 89% at twitter. line,ising makes 35% for but content also makes up 35%. this is revenue from smartphone games. and then digital stickers, 22%. vonnie: you can catch emily chang weekdays at 3:00 p.m. eastern. with then interview ceo for birch desk. ♪ ?c+sv

♪

>> it is 3:00 p.m. in new york. welcome to bloomberg markets. roadbloomberg headquarters, i am betty liu. vonnie: and i am vonnie quinn. janet yellen warning to not overreact to the weak jobs report. she was saying gradual rate hike could still be appropriate as the good outweighs the bad in the economy. u.s. stocks are kicking off a week now in green at the s&p is trading at the highest level since last july. and a bloomberg exclusive. vonnie: our interview with jack results for his chinese officials. why he is calling on china to improve monitoring policy communications. we are an hour now from the close of trade and i want to head back to the market desk where ramy has the latest