>> from bloomberg's world headquarters in new york, good afternoon. >> here is what we are watching this hour. the dow is down 100 points. optimism may be fading among investors. >> a gawker files for bankruptcy after losing the hulk hoganda privacyv case. iitd is now reportedly putting itself up for auction. -- gawker files for bankruptcy after losing the whole cogan privacy case. it is now reportedly putting itself up for auction. >> stocks retreating for the second consecutived session. a the s&p 500 is below the

belowd: -- the s&p 500 is the 21 hundred level. the nasdaq falling the most in two months. take a look at treasury yields. the 10-year note falling the fivet in january, down basis points. of course, we are seeing global bond yields plummeting. commodities are lower, oil trading below $50 a barrel, falling 3%. we are seeing a rising dollar countering disruptions from nigeria to canada. is rising, week, oil reversing last weeks loss. take a look at gold. socks falling, we are seeing more demands for safe havens. gold futures are rising for three consecutive sessions.

vicks gainingthe all week, in positive territory all week as we see market turbulence rising across the board. and energy is leading losses for the second straight day. >> not surprising since yields are continuing to drop. financials are leading the declines for the second consecutive session. so manyamerica and others, citigroup, wells fargo, now falling. citigroup falling more than 2.5%. we also have energy companies leading the declines today. oil is trading below $50 a barrel. it's one of the worst performers for the day. itsapeake energy is seeing worst day in a month, along with southwestern energy, which is also seeing three weeks of gains. atnie: let's get a look

bloomberg first word this afternoon. mark crumpton has that. mark: senator elizabeth warren and hillary clinton held a private meeting today at mrs. private residence, a day after the massachusetts mrs. clintonsed for president. speculation that elizabeth warren could be clinton's running mate. donald trump tweeted -- house committee investigating the terror attack in benghazi has issued a subpoena to a senior pentagon official who criticized the probe. the assistant secretary of defense will be interviewed under oath next week. he accused the gop led panel of making costly and unnecessary to the defense department. the committee's senior democrat called the subpoena and abuse of

authority. in thee count is over closest election in peru's history. the former finance minister has of theected with .2% vote more than his opponent. his opponent just conceded the election. be result is expected to official in the next few days. the cleveland cavaliers may be back in full strength for game four of the nba finals. kevin love, who hasn't played since game to because of a concussion, participated in the team's morning shoot around and could be cleared to play tonight against the golden state warriors. golden state leads the best of seven series 2-1. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. back to you. are oncentral banks

cause, developed economies are barely growing and profitability appears to have peaked. ofnie: joining us is when state street global advisors. we have been seeing buying and safe havens as the week draws to an end. or at least positioning so that people are not going long into the weekend. what is going to come next week? >> stocks are trading like it's a greek tragedy. i was reminded by my colleague about sisyphus, who was punished so hubris, for constantly. gods he had to roll a large rock up a hill only to watch it fall back down again. it seems like that is how markets are trading. we keep rolling the stone near

market highs, but as hubris central bankers, it keeps rolling back down. result, we have seen traders pair risk positions looking toward next week with the bank of japan, the fed vote, paring risk at this point. david: of all the risks you mentioned, the doj, the fed, the election, what is the biggest risk you see? >> i think it's the lack of economic growth that we see. there seems to be no follow-through, david, in terms of quantitative easing, negative interest rate policies. it has not been enough to spur economic growth. in my view, the volatility we are seeing in markets since last summer is the result of oaks seeing that economic -- folks seeing that economic growth rates are much further out on the horizon man anyone anticipated. as a result, we seem to be in a

directionless, listless market, this greek tragedy as i called it. vonnie: are you advising people to go into cash or gold? >> we continue to be somewhat defensively positioned in terms of stock-bond mixes. but given this and marmon, we are expecting more of folks total returns to -- this environment, we are expecting more of folks total returns to come from income. we like dividend growers. we like some parts of the fixed income market or equity like instruments with fixed income characteristics, preferreds, convertibles, high yield. from our perspective, in this environment that's likely to be lower for longer across multiple , more returns are likely to come from income. how long is this likely to play out, do you think?

how long will sisyphus be rolling this up the hill? >> what is interesting is that central bank halle c, permanent liquidity is preventing the natural occurrence of the economic cycle. we have been in this long and we continue to wonder why it is so long. it's because central-bank policy is preventing the natural of the cycle. we have been in growth purgatory for a while. underwhelming economic growth combined with low rates and low inflation. i think this will continue until economic policy gets out of the way and allows capital to work. are you expecting more volatility going forward? >> yes, experimental

central-bank policy will continue to be a challenge. think one of the reasons folks are paring back risk this week is that the doj -- boj surprised some folks this year. trust factor where folks are not sure what the policies will be. andine that with brexit politics everywhere, including the u.s. election, and i think we are likely to see volatility continue. to the feding meeting next week. after the most recent minutes came out in the meeting before , do you think the disconnect has gotten smaller or become reattached? are nownk june and july likely off the table in terms of interest rate rises. if anything, the fed is coming more around to the market point

of view than the other way around. think it's likely for the fed to remain on hold. the data continues to be mixed. the labor market conditions index was down. jobs claims are up. what am i to make of that? consumer credit deteriorated. at the same time, the consumer sentiment index held up well. mortgage applications ticked up. in this environment, i think it will be really hard for the fed to begin normalizing policy with this murkiness in the economy. you mentioned that you like high yields, corporate's, and so forth. any concern about a bubble? >> what we are cautioning folks on his reaching for that yield concern about how much you are stretching for that yield. we are concerned in this

environment where look with it he is flush and central bankers have accommodative monetary policy. we believe there are parts of the market that are stretched. believe that for convertibles, high yield, preferreds at this point, valuations remain reasonable you are able to produce in a low return, low risk environment. we do acknowledge that, but in some instruments, you need to be careful about how much you are paying for a low risk yield. david: thank you. up, hulk hogan and peter thiel appeared to have defeated gawker. the website has filed for bankruptcy. we will have the latest, next. are looking at live coverage of the funeral for muhammad ali, being held now in louisville, kentucky, his hometown.

the interfaith service will include representatives of religions and eulogies will be given by bill clinton, billy crystal, bryant gumbel, and more. ♪

david: bloomberg markets. i am david growth. -- david gora. checking the markets, the dow down almost 1%. the nasdaq down just over 1.5%. time for our latest bloomberg business flash, a look at some of the biggest business stories in the news.

goldman sachs being questioned about fundraising. the fund is at the center of several investigations into legend corruption and money laundering by public officials. apple's next iphone will use modems from intel replacing qualcomm in some version of the dish versions of the handset. versions of the handset, according to people familiar with the matter. china will work on qualcomm chips. we will have more on this story later in the program. a deal ends an extended takeover contest. debt and includes other liabilities. the combined company will be the chemical producer

-- producer of their chemical in north america. david: hulk hogan and peter thiel have one there lawsuit against gawker. -- have won a lawsuit against gawker. story, for more on the let's bring in jerry smith, who covers media for bloomberg news. what does this mean for the media landscape? going to continue to publish as normal, but they have filed for bankruptcy or and againstsing this case hulk hogan. we know they already have one company that has agreed to buy a magazine is been publisher for many years. our sources are telling us the

offer is around $100 million, but it's not a final deal. they are going up for auction. there could be higher bidders. it remains to be seen what happens. david: we got a statement by nick denton saying -- let me ask you about the involvement of peter thiel, the venture capitalist, who has backed hogans legal cause in this case. have raised the concern that if it's possible for a billionaire to do this, it makes it very difficult to come at a billionaire without fear of retribution. emily: it is fascinating to see people in silicon valley taking sides on this.

journalists are angry. jeff bezos, the ceo of amazon, says peter thiel is basically digging a grave for himself and should have had a thicker skin. on the other hand, there are venture capitalist that gawker not nice things about who have come to peter thiel's defense. i sat down yesterday with a legendary venture capitalist and -- ofr of an microsystem sun microsystems. i asked where you draw the line when it comes to freedom of the press. here is what he had to say. >> the definition is very ambiguous now. is a bloomberg journalist the same as a hustler magazine journalist? is a blog poster the a journalist -- blog poster a journalist?

where do you draw the line? to me, there are two things that matter. anything that goes without , is going tolances go to a lawsuit. to nick denton, i say he needs checks and balances. that -- ift supports it were up to halt hogan, the lawsuits would be irrelevant. gawker and denton did something to hulk hogan. he created a legal case. it's important to use the law for protection. point, wellesting taken, a court did find gawker guilty of doing something wrong. i spoke to peter thiel and he was a bit more reflective. he did not go so far as to say

he had regrets, but said at times the reports perhaps strayed to a bit more snarky than he would like, but again, these are reports that were put up on his website. gawker says it will mount an appeal. obviously, it will get loans from this bankruptcy. be?difficult will an appeal >> nick denton put out a statement today saying look, when we sell our assets, we are going to have the financial resources to continue the work we are proud of. obviously not the outcome he was hoping for. but in the state and he just put out, he seems very optimistic about the future. david: thank you very much for joining us. vonnie: still ahead, is this airline stock ready for another takeover? -- take off? ♪

david: welcome back to bloomberg markets. >> joining me for today's options insight is a chief market strategist, she joins me from the cboe in chicago. it's great to see you. saw stocks surge earlier in the week, but that's now gone. how long are we going to keep trading sideways? >> we are not getting the follow-through. let's put this in perspective. the week is still break even after all this action today. this is just a one-day pullback. overall, the markets are still positive. we have to have perspective of the big picture.

au sell europe pull back little bit, but down 2% is not a big deal. the markets are not that afraid as of yet. you saying known as knowns are less of an issue than unknown knowns. what does that mean? i let the markets tell me information. i try not to predict. as things stand now, we talk about the fed rate hikes. we have been dealing with that issue for months and years. the markets already digest that. same thing with brexit. we have seen a healthy rally over the last few years. our market has been closing high as well. that is a fact we have been dealing with for some time, and the market has not reacted negatively to that. >> explain your southwest airlines trade for us. >> southwest has been holding up

well. if you look at the other major airlines, they are down 15%-20% southwest is and relatively unchanged. ,e are seeing a push above 44 which targets 48 on the upside. as oil prices stop rising, that could very much be a positive for the airline stock. i really like the risk reward at southwest now. >> we are seeing the vic said the highest level in three months. what are key pieces we should be looking for? areelieve it or not, we seeing a many fix explosion with ix explosion with a pop-up. the sideways to downward

pressure might be lifting. x has time the vi popped up, it has gotten smacked back down. we will look to see if that can continue in the future. >> thank you. handing it back over to you, vonnie and david. still ahead, tesla denies allegations of suspension problems and says it did not bar safety regulators. we will break down the controversy, coming up next.

scarlett: from bloomberg world

headquarters in manhattan, you are watching bloomberg markets. i am scarlet fu. alex: and i am alix steel. mark: david co., one of the biggest backers of the republican convention won't support to the cart -- the in july.ext gathering neither david nor titles will contribute to the hosting this year. the coke industry billionaires are among the country's biggest and most influential conservatives donors. the u.s. house has passed a bipartisan bill to restructure puerto rico's debt. it still has to be passed by the senate. puerto rico faces a july 1 a $2 billion

payment. the government says it doesn't have the money. chairman angela merkel says she plans to keep her country guessing about whether she will run for a fourth term. at an event in berlin, she a $2n payment. the said she is waiting for the right time to decide. sinces been chancellor 2005. approval rating in april was the lowest in her third term. you are looking at a live shot of an interfaith memorial service for muhammad ali in louisville, kentucky, the champs home town. he has been remembered as a buildtful man who work to bridges between the gaps between races and genders.

the worst drag on the nasdaq this week and the worst performer is biogen, shares down more than 15% on news that the company's drug failed to meet

primary stagef a study. shares are at a low from november, 20 13. take a look at a one year chart. we she -- c bearishness. the stock is back on the bottom of the range after this week's drop. a pretty vicious selling momentum, suggesting that the stock may not hold this time around. may traffic is up half a percent. capacity rose by one point 7%. some investors may take this as that pressures are starting to a bait, but one a muchrg analyst has different view. he believes that recent fare increases are unlikely to help american airlines, not just in the june quarter, but this year. shares are down more than 20% on the year. pretty bearish. us about the outside mover of note this week at the nasdaq.

>> just today, eagle pharmaceutical shares are soaring, no pun intended. really flying high, up more than 20% on the week on the news that patents on's leukemia drugs were upheld. until 2026. 1. rbc is saying the momentum today take them higher. shares ofved with the eagle pharmaceuticals are going into this weekend not so happy. that is a look at what happening on the nasdaq. much, abigailu so doolittle, joining us from the nasdaq. tesla is going on the defensive after regulators found a potential safety defect in the model s. company a blog, the wrote there is no car company in that implies that they are

examining the issue. this is in the very early stages. not all of those actually get to the recall stage. particularly when you only have models, if you have a recall, it has a more adverse impact than on other automakers. scarlet: give us your thesis for

why you believe tesla is a sell. >> one of the more interesting pieces of news this week is the introduction of the model asked s 60lowatt -- model kilowatt hours. after all the hype we saw with the model three reveal, they are going to be depending on the twice thehich is price. demand for the product is weakening. launched a model three. that's going to put a lot of pressure on the earnings margin. there are obviously a lot of other concerns. alix: answer any kind of cancellation risk with these cars? -- is there any kind of cancellation risk with these cars? >> there have been a handful of cancellations. i think as we get closer to the delivery of these vehicles, there will be even more. customers might not realize how all of thets with

options they expect. they might be disappointed they don't qualify for a u.s. tax credit, which could make it big -- a big difference. scarlet: there are concerns that auto sales may have plateaued and may even turn south further. how does tesla fit into that? broad concern for the whole industry. they may be a little more immune, but is not one of the key focuses. , midterm, the focus is on the model s. model three gets delivered, how profitable will it be? those are the fundamentals they are focused on. alix: well, not only making money, but they need the money to make the cars. >> they just did a capital raise. i think they have enough cash for the next year, year and a half. the model three is going to consume a lot of cash. they have address that with a recent capital raise.

tesla is celebrating a 150 price target on the stocks. alix: coming

>> a really ugly two days for u.s. stocks. scarlet: and a flood into government bonds. we will discuss that further. meantime, a look at some of the biggest stories in the news right now. scarlet: they are said to be bringing most of their team to provide substantial investment according to people with knowledge of the matter. rogersstor who trained is said to be his biggest in 2011. they are planning to start a partnership in the fourth quarter of this year. gawker media has filed for chapter 11 bankruptcy in new york. the gossip website told a judge it could not afford to pay a 140

million dollar jury award to hold cogan for posting a sex tape online. hogan for posting a sex tape online. scarlet: an airline is reducing growth for this year and cutting its forecast for revenue. the carrier cited the current fuel and revenue environment for the changing capacity plan. alix: for the first time in five decades, u.s. airlines have won permission to resume service to cuba. southwest, and three by thewere approved department of transportation. they will fly to nine cities in

cuba other than havana. scarlet: and that is your business flash update. alix: we have been watching shares of intel. the stock has gotten a boost. by the department of transportation. they will fly to nine cities in cuba other than havana. bloomberg has exclusively learned that apple iphones will use modems from a carrier other than intel. scarlet: this is huge news. ian, intel has been trying to get into the mobile space for years. we talk about it every time they report earnings. this is a big step in that direction, isn't it? terms of revenue, probably not. we are looking at orders in the hundreds of millions. we have been trying to get into this business for arguably decades. this is a major endorsement from arguably the most important mobile phone maker on the planet. in hope would be if you are intel supporter that this would be the first of a fewbloomberg y learned that apple iphones will orders and a new beginning for them. alix: how did intel secure the

contract? >> we don't know the details. what we do have is conjecture. if you are looking at it from apple's perspective, it's not great because you are giving a major chip maker $3.5 billion a year and you have no leverage in terms of price negotiation. you cannot threaten to go anywhere else. we are reporting is correct, apple has somewhere to go. scarlet: this sounds like it would be bad news for qualcomm. but qualcomm chips will still be in apple phones, correct? >> qualcomm has not lost the contract completely, which is what some of the rumors were saying. this is bigger than anything going on in the u.s. , but anyno panic there time a major customer says we

could go somewhere else and get the same kind of power, you have to look at that. risk of havinga chip in an at&t phone orderscomm ships in

scarlet: this is less significant a financial news for the company, but fairly important when it comes to the significance of symbolism for intel. is it enough to cause any kind of relating by analysts? >> let's break down the numbers. at&t is predicted to sell about million. a $50 billion your company. it doesn't even scratch the sides. this is a validation of intel's efforts and orders from other companies. much, iank you very king from san francisco. scarlet: as we have been reporting, with about 15 minutes

left to go before the close, equities reporting a major selloff heading into the weekend. us is joeing weisenthal, cohost of what did you miss? global storyy the that's really the take away from this week. scarlet: there's a great chart here on the bloomberg. it shows a freefall in yields. bond yields int the u.k. k, germany, japan. we talk about this every day on what you miss. it's groundhog day all over again. >> it sort of donned on me yesterday when we were doing the market minute at the beginning of the show, it's the same thing every day, record yields.

it's really stunning the degree to which it's so steady. that short -- chart we showed in a few countries. you see yields screaming lower. an incredible bull market. alix: also saying that verizon is said to bid only for web at yahoo!'s behest. verizon is also willing to buy yahoos patent and real estate. yahoo! only seems million to wao sell its web stakes. verizon is said to make a 3.5-$4 billion offer for the yahoo! core. saiden loans offer -- also to have offered $5 billion for yahoos patent. a nonstophis is drama. yahoo! excepted first-round proposals in april and excepted all kinds of offers. all of this according to bloomberg reporting, which cited people familiar with the matter. it has gotten 10 bids. we don't have any sense of what yahoo! wants to do here.

alix: the yahoo! board is said to meet soon to evaluate a proposal. some more details. looking at a $5 billion offer yahoo! web. verizon only bidding for the web at yahoos behest. alix: joe, sorry to interrupt you, but we will be picking up the idea of a market selloff laver, market strategist. before we go to break, one more look at the big boards. today selloff.

s&p picking up a little bit of steam. this is bloomberg markets.

markets closing in just about 10 minutes time. >> we are seeing the stocks continuing to fall on this last trading day of the week. a lot of caution ahead of the week ahead of the fed meeting. if the dow jones losing six tens of 1%. of the s&p 500 just turned .egative the nasdaq is falling by more than a percent. we are of course talking about one stock in particular that has seen a rough run, goldman sachs is the fourth consecutive session of losses. drawingearing they are

scrutiny from u.s. regulators on its fundraising from malaysia's struggling. four different countries investigating it over allegations of money laundering. westlake chemical has agreed to buy -- since februaryt and the highest level in more than a year. >> thank you so much. wrap up theing to trading day of the week, what happened in the last two days that had a huge rally in global bonds and stock selloff? mike: i don't know how much you can take away from this. it would be silly to think we could keep marching higher to a record without some sort of volatility. there is the story of george

soros getting their rish. anyone who perceived to know the situation with george soros, here he is getting bearish right before the brexit vote. specifically win that all came out, showing that the people , when thato leave ball cannot showing 55-35 in favor of leaving, you can see the british pound versus u.s. dollar took a major spike down. the big question is the rally .as overextended everyone thinking that the fed would be more dovish. i don't know how much you could make out of it. i wouldn't be surprised to see

volatility on this. >> we also saw the vicks pickup. that in recentn days we were saying there was so much complacency out there. is interesting to look out .t the futures on the vicks the biggest gains are through the end of june, double-digit gains in all the futures through the fourth week of june. then the much smaller gains. a lot of anxiety seems to be censored around the brexit vote at the end of june. u.s.o is around to buy stocks yeah kobe keep hearing how foreigners are ditching u.s. stocks. who is left? >> the buybacks have been down comparatively to -- down comparatively to the case they had. is the sense that some of

them may have been chasing this rally and that is why we have the melt ops scenario, where it had a little too much exuberance . only the 10 year treasury is looking at the lowest they have been in multiple years, but the down 190 basis points. >> that bill gross tweet didn't help for supernova in the bond markets. you very much. we are about to counter down to the close. take a look at the market averages.

?c+sv scarlet: we are moments away from the closing bell.

i am scarlet fu. it jumping i am joe weisenthal. -- let: stocks decline with commodities and bond yield falls as investors brace for a series of key events. john: household wealth in the u.s. is rising as real estate values drive the game. the charts you can't miss. scarlet: and a fund manager who invests in energy. if they see values and bankruptcies. we begin with our market minutes. the dow falling 100 points. it fell as much as 126 points. the readen a day in from beginning to end. in the last 40 minutes we did see the indexes pared their loss