from bloomberg world headquarters in new york, here's what we're watching this hour. stocks falling for a fourth consecutive day as brexit concerns heat up. our guests include austan goolsbee oil also pulling today -- austan goolsbee. oil also falling today. we are live at the bloomberg technology conference. among our guests this hour. markets close in about two hours time. ramy: fear is definitely in the air today. markets at session lows right now. down on the order of about .6% or more, down four days in a row

now. as that that starts its two-day fomc meeting for this month. were are fears of brexit as head towards june 23 and the referendum in the u.k.. u.k.ferendum in ,he s&p is still not that bad you're today or from the yearly lows. or from theate yearly lows. still up about 13% or so. even with this slide down, we are doing well year to date. let's take a look at the imap function. the 10 sectors in the s&p, we have a fairly big lean towards the negative territory. financials down the most by about 1.5%. material is down 1.4%. telecoms up .2%.

we did hear about the fcc and that neutrality rules. -- net neutrality rules. ricin and at&t getting a pop because of stability moving ahead. getting a and at&t pop because of stability moving ahead. the fed meeting today and tomorrow come interest rates on the minds of many. take a look at where we are with yields across the world. the german tenure is down three basis points. -- 10 year is down three basis points. swiss as well. the 10 year yield is down by 1.6%. its lowest since mid-february, i believe. david: we will talk about oil in just a minute. the: i was mentioning

finance that one company weighing on the s&p, synchrony financial down on the order of 14%. s&p loser, down by four points. this consumer finance company has said it is going to be writing off even more bad debt in the next 12 months. .he biggest drop ever a company has said it is raising forecasts for losses. david: let's check on the first word news this afternoon. todaypresident obama received an update from his national security council on the u.s. led campaign against islamic state.

afterwards, the president discussed the weekend massacre at an orlando, florida nightclub, the worst mass shooting in u.s. history. tosident obama: we worked succeed 100% of the time. an attacker only has to succeed once. our intelligence camilla terry come security, law enforcement have prevented many attacks and have saved many lives. -- our intelligence community, homeland security, law enforcement. this bite the extraordinary hard work, something like orlando can occur -- despite the extraordinary hard work. mark: a victory for companies like google and netflix. if federal appeals court has upheld a net neutrality regulations aimed at preserving equal access to the internet. google and netflix were among those who argue that internet service providers should not be able to offer speedier lanes

for those willing to pay extra. at&t and verizon disagreed. at&t says it will appeal to the u.s. supreme court. the u.s. has joined the investigation into the crash of that egyptair flight in the mediterranean. time is running out to find the black box flight recorders. they are expected to keep issuing pings for another 10 days. the plane's engines were made in part by an american company. elevated lead levels have been found in water in five more chicago public schools, bringing to 19 the number of buildings where tests have uncovered levels that exceed the federal standard of 15 parts per billion. water at all public schools will be tested. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world.

i'm mark crumpton. david: global oil markets should balance out by next year. aea said the supply is 40% less than estimated one month ago. for more, we're joined by kathryn downey miller. great to have you here. let's get your reaction to that .recast from the iea kathryn: anybody who watches the oil markets is interested in demand numbers today. on the supply side, we are coming down faster than expected due to these unexpected supply disruptions. david: what are the risks this

market is facing right now? kathryn: we are seeing those canadian barrels come back online. there are still issues with nigeria and libya. are waiting on supply disruptions to rebalance this market, it is tenuous at best. the iea get its forecast wrong? kathryn: they are looking at reported data. especiallyerfect, when you're talking about global international sources for the data. issues we see,er when we look at how iea reports and talks about north america, we think there are some fundamental issues with how they are looking at the market going forward. that will be interesting and something to watch. david: what are you seeing that perhaps they are not focusing on is much? expectinghe iea is

the u.s. shale oil production to rebound next year. looking at our numbers ending digging into the fundamental drivers of u.s. oil shifttion, we think that starts to occur later this year. one, we are starting to see rates returned to the field -- rigs return to the field. how big an issue isn't here -- is it here? kathryn: a huge issue. you do here producers come out and talk about how these shale rigs break even at $50. making this debt payments and interest payments is a real drag on liquidity. going forward, we will see

disparity between those who have and those who have not. there'sou mentioned hydrating -- high grading in the industry. producerse are seeing look within their own portfolios and allocate capital to the highest rate return assets. we are seeing that across the industry. investors in the capital markets and private equity choose to invest in companies that have and choosing not to fund and help out the companies that don't. we will see paths diverge here in the next few years. freezes,lks of asset this has not happened. talk about opec going forward. what will their role be going forward? kathryn: it is absolutely

diminished. supplyingica will be going forward. we are able to choose to invest in shale and bring those wells to market with the new year whereas these opec countries are really losing out on the virginie -- the opportunity to bring supply to market quickly. ofid: kathryn downey miller btu analytics joining us in new york. pat gelsinger joins us from the bloomberg tech conference. plus, a look at the nasdaq. " comingoomberg markets up. ♪

david: this is "bloomberg markets." its global expanded cloud partnership with ibm and yesterday announced plans to buy arcanet. is live withhis lif vmware ceo pat gelsinger. emily: thank you for joining us on bloomberg television. the biggest merger in tech history is almost complete. $57 billion. bmc will go private and vmware will remain trading as a public

company. pat: when the deal was announced , everybody was like -- emily: how? pat: here in headlights. in headlights. people got back to work quickly. for emc and dell, this is a full on merger. we remain an independent company come independent shareholders come independent ecosystem, get back to work. lots of curiosity, how is the deal going? we are closing in on the finish line. emily: what is it like having boss?l dell as an almost'

pat: the questions about his role at the board. we expect them to be more involved. it will be a close relationship. lots of interaction. i talked to him all the time. there are things we have to approve. we are working together closely realeven though many decisions cannot occur until after the deal closes. how can he help us grow faster? him, it's ok, pat, how can we continue to have great success with your ecosystem partners like hp and lenovo even

as i'm doing more with you? emily: you think bigger is better? megan whitman thinks leaner is better. pat: we are in a time of industry consolidation. the hardware industry is not a growth industry anymore. consolidate, maximize supply chain distribution strength. the sizes overwhelming, but when you get down to it come it makes a lot of sense. i'm excited about the potential. emily: microsoft buying linkedin. pretty massive. how much stuff has changed? pat: the industry will consolidate.

there will be major consolidation moves. i was describing that well before the deal was announced. this is consistent with that. they'll is a provocateur of that is argence -- and dell provocateur of that convergence and industry. it is a big deal, microsoft has to make it successful. deftness.n great emily: where will we see more m&a? cloud and social? the networking landscape. there are too many traditional players doing services and infrastructure.

plays bestber of si you have seen a number of si plays. across the landscape overall, there will be big acquisitions. we did one just yesterday. our software defined networking is a key piece of our data center strategy. everything moves from hardware into software. ae company we acquired had unique ability to visualize the network in a software environment. that is a compelling technology and a new product line for us. across cloud, mobility, management, networking, all , there will be good acquisition targets in each one of those. emily: there's been speculation about more features. willie stay? -- will you stay?

how long? emily: i'm excited about the opportunities to grow the company faster. we have laid out a strategy. clout, mobility, software defined data center. .- cloud i'm excited to take things to the next level. emily: microsoft is taking a lot of debt. how does that impact your ability to innovate? pat: dell has taken on a lot of debt. vmware has not taken on any debt. i have a very positive balance sheet. if anything, i have even more capacity for the future. what about dell? -- financing of the deal is they have very attractive rates. the cash flow should allow them

to the rid of some of the assets. -- get rid of some of the assets. they will be able to do very significant things it again. -- yet again. emily: the biggest tech merger in history is about to close. thank you for coming to the conference. david: that was emily chang with vmware ceo pat gelsinger. red across the board. several of the s&p sectors in the red and have been for most of the day. i want to look at some positive movers. come upat alibaba group by more than 3%, the biggest jump in the past three weeks and china's largest e-commerce company said they will see revenue growth rising to 48% in 2016. analysts were expecting 40%.

compare that to what happened last year, it was 30%. some of their strategy includes expanding into cloud, especially into new markets and rural areas inside the country. let's take a look at the solar panel industry. green energy at session lows. still higher on the day come up by more than 2%. the company reported its first profitable quarter ever since 2011. it reached agreements with some of its lenders saying it is renegotiating its interest rate. this comes after defaulted on $200 million of debt -- david: ramy inocencio at the markets desk. learn how to shoot a three pointer like steph curry.

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there's three teams using this technology right now. did it help your shot? >> i noticed a difference. right away, you start doing things to make the machine say 45. it is a great teaching tool. of bloombergudway businessweek. uber recently announced schedule drives. our interview with jeff holden is coming up next. ♪

david: from bloomberg world headquarters, this is "bloomberg markets." let's start with the first word

news this hour. mark: president obama will travel to orlando, port of thursday to pay respects to the victims of the weekend nightclub shootings. across thebeing held country. thousands gather to remember the 49 people killed in the attack. the senate has defied a white threatico threat -- veto 85-13 -- bill president obama objects to numerous provisions. the white house also opposes provisions that would limit the size of the national council staff and block a new round of closures.ace -- base -- father of revis dean camp

steencamp -- one of the big issues in the brexit campaign. the u.k. wants to restrict access to benefits for migrant workers. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton. david: commodity markets are closing in new york. it's taken look at today's biggest movers, starting with oil, falling to its lowest level in a week. at $48.49 -- the vti -- wti. the fed begins its two-day meeting in washington.

natural gas trading higher today at one point hitting its highest levels in nine months. back to the bloomberg technology conference, one of the fastest-growing companies in silicon valley, over has a $51 has an valuation -- uber $51 billion valuation. brad stone is live in san francisco. he's joined by jeff holden, the chief product officer at uber. brad: thank you for joining us. around the world are trying to understand the impact of uber and other ridesharing services.

jeff: reducing congestion is the core of what we are about. we want to have this city where we can unlock treasures, taking cars off the roads. it took me 46 minutes to get here yesterday. does, itut what uber takes cars off the road through a number of mechanisms. you have a lot less parking activity. long-term effects. we are doing these rider matches , taking cars off the roads.

taking people who would otherwise be in two or three different cars and putting them in one. 40% -- 50% ofco, trips -- are uber cool pool trips. in china, we are doing 30 pool trips a month. brad: is it possible you make the problem worse before you make it better? cars utilizing 50% -- that number will keep creeping up. you have high utilization of the cars on the roads. in terms of the number of seats occupied -- you are more densely

packing people in a car. chance that will go the other direction. limited -- took 400 metric tons of pollutants out of the air. brad: you also oversee uber's driverless car project. up myr am i from picking phone and having a robot come pick me up? wed: we will start -- jeff: will start seeing real activity on this front. people will take trips this year. over the next several years, you will see this becoming more mainstream. --d: have you written in ridden in an uber driverless

car? jeff: of course. brad: what are the costs of trailing google by two years? jeff: it's important that we are a company that has the technology to operate the cars and deal with the theyithmic backgrounds -- theoretically can do this. it is a tricky formula to have, but if you have it come you can do this. some other company is hundreds of thousands of autonomous vehicles on the roads, they are able to offer much better rider.cs to thhe

brad: we heard about news last month between -- about a potential deal between fiat and uber. jeff: it is a private deal, we are talking to carmakers. our culture is very outcome focused. brad: when will we see a deal? last topic, china. you have challenges in china. invent its way out of its challenges in china? jeff: we can. i'm a believer that ingenuity, it takesn -- perspective to invent your way out of a box.

in china, the mapping ecosystem is very different. you're up against a lot of we keep finding really creative solutions. , if yound of the day can -- you spend the first part of your career at amazon. uber is delivering packages. easy jeff bezos as a competitor now? jeff: there is a competitive piece. we are coming at it from a very different strategy. we are all about the transportation.

we're bumping into each other. it will be interesting to see what winds up happening. we have some interesting advantages. we have our own operating itemsk -- we can combine like picking up a package at you will pay less for that trip because what else is paying for the package. powerful -- it is natural for us to move in that direction. david: that was brad stone with jeff holden. coming up come a conversation andreessen. the morningstar conference in austan goolsbee is

our guest. that is coming up next. ♪

david: this is "bloomberg markets." americans are not letting a hiring slump slow them from going shopping. -- prevent them from going shopping. does this put fed policymakers --a patch for a rate hike path fora rate hike -- a rate hike? , thank austan goolsbee

you for joining us. the fed forecasting model is broken and we are waiting for things to go back to normal. ?hat is normal, then austan: for the next 24 months, we are in this not quite comfortable but affordable situation that we are transitioning what industries will be the drivers to growth. the thing that is broken is the model that says it will be the american consumer that will go -- it will being residential housing that will lead u.s. recovery. i don't think those things will happen. the u.s. savings rate will remain high by historical standards. to plugwe will have of modest 2%period

growth. vonnie: will it be that american consumers are spending less or relying on a different consumer? austan: it is a different consumer. -- consumeronding spending will be a mild positive but it has to be more export led growth. we cannot go back to the business model, the economic model pre-financial crisis. that was a bubble. in the fed forecast model, it is implicitly the most oracle relationship that's the historical relationship. vonnie: are there precedents for this kind of transition? austan: not in the u.s.. always ables, it is slow recovery. relativelyck with

modest rates until you get things -- vonnie: when can we start to see some normalization? what do you see the trajectory being? been a it has not secret, i've been of this view that the fed has established its reaction function in a way that was credibly non-credible in the sense that they would tell us we think we are about to grow rapidly and it doesn't come to pass and they say we will still raise rates, but not do it now. we will wait for six months. the same dynamic plays out. next 12-24 months, we will continue in that same dynamic. growth will be around 2%, not much faster and we are not in danger of overshooting -- the

normalization of the growth of the economy does proceed the normalization of rates. doesn't matter when the fed gives knowledge 25 basis point increase? does it help? austan: i'm not sure if it helps, it does matter. if they move too quickly, they might find themselves in the position the central bank of sweden found itself. convinced they were eminently about to start growing, they raise their rates and soon after that, they had to cut the rates. you have the uncertainties of the brexit vote putting pressure on the dollar. you know the u.s. economy needs to shift to more sustainable base growth and it is hard to get your exports up

when you are currency -- your currency is appreciating. vonnie: how many rate increases this year? austan: at most, one. vonnie: a little bit about the current presidential cycle. what happens, who is better for fostering economic growth? i probably said i'm for hillary clinton. donald trump's approach is ill-conceived and dangerous. if markets actually start factoring in the probability that donald trump were going to win, you would start to see things go haywire. that is not priced in yet. if he begins to transition to a more traditional gop type platform? austan: you've already seen him change his position on major issues two or three times.

if he says now i'm for something you believegop, do he is going to stay on traditional gop? look at his tax plan, it is a tax cut of $12 trillion that we clearly cannot afford. us the clearing trade wars with three of our biggest trading partners simultaneously -- under: explain to us how the hillary clinton , how that would foster business spending in a time of low interest rates. austan: fair point. i think what has explained that this you've seen it everywhere in the world is residual fear after the financial crisis and

thinking, g,tting anyone who did not have liquid assets died. i will never let that happen again. we will sit on this and wait for conditions to get back to normal. we'veay, in our minds, defined -- what i think is wrong with the forecast model is not just the fed, it is all of us. if we just sit and do nothing, maybe stuff will get better. vonnie: innovation comes from where? austan: human capital and brainpower and investing in science and education. vonnie: have the campaigns contacted you? austan: a little bit. not both sides. i look forward to speaking with mr. trump. , thank austan goolsbee

you so much. that is vonnie quinn at we morningstar conference will have live coverage of the fed decision in janet yellen's comments. let's head to the markets desk with ramy inocencio. ramy: looking at financials right now. their underperformance today. let's look at the xls right now. xlf downession lows -- at session lows, down for the past four days in a row. the lowest since april 13. let's take a look at some of the reasons this is happening. ,his company right here synchrony financial down more than 15% come on the 16% here. almost 16% here.

not the biggest percent loser, -- the biggest drop ever since it started trading about two years ago. capital one financial is down more than 7%. american express down by nearly 5% with capital one financial down the most since february. bloomberg intelligence came up with a note earlier that said this marks the first warning sought -- warning shot when it comes to credit. the first company that has said it is raising its forecast for losses. some asset managers also falling. following on the order of 2-2 .5%. across the board, financials are in negative territory. david: that is ramy inocencio at the markets desk.

back to chicago at the morningstar conference. morgan stanley, black rock getting in on this multifaceted approach. vonnie quinn is standing by with jon hale. vonnie: we were just discussing how many companies morningstar rates in terms of sustainability. jon was telling me 5000 and growing. explain the system and how it works. mutual fundsate based on their portfolio holdings. how will those company's .erformed we had 5000 companies under coverage. we use that information to roll into the portfolio level to sincee investors with a of how well their portfolio

managers are addressing the sustainability issue. vonnie: our companies embracing this out of necessity? -- are companies embracing this out of necessity? jon: go back five years, maybe only 10% of the companies in the world are doing that. there's a lot of incentive out there for fund managers to companies that manage their environmental, social and governance risk and opportunities most effectively are very attractive long-run investments for fund managers. vonnie: what kind of money is it attracting? jon: we're seeing very significant flows. ,rimarily institutional money global assets under management. reached $6 trillion. we are seeing a lot of new issuance of mutual funds in u.s.

that focus on sustainability outcomes. vonnie: i was speaking to someone attending the conference -- people come and want to invest in these products. it hurts us and as they underperform the benchmark. they want out. you have to make a return. used to be the case along time ago, 10 years ago or so that there was this reception that if you screened out companies in your portfolio because they do not align with your values, you would not perform as well. point --anding the those funds typically performed with conventional funds.

if you are a mutual fund focusing on est issues -- esg issues, those companies will do well in the long run. that we are starting to overcome. vonnie: is there a beneficial impact in terms of capital flows? if capital goes into these areas, the sustainable methods should get better and so forth. if capital flows away because you're not getting involved in things, there is a detrimental effect. the it is mostly on positive side with investors putting their money towards companies that do have positive esg performance, causing companies to think, when you to achieve best practices in some of these areas ourselves to compete for the capital. -- we need to achieve best practices. vonnie: we will keep an eye out for those ratings.

jon hale joining us from the morningstar investors conference. the next hour, we take you back to the morning star conference in chicago. also looking at stocks here. near session lows. the dow down .7%. the nasdaq down .5%. the s&p 500 down .6%. more "bloomberg markets" coming up. ♪

?c+sv >> welcome to bloomberg markets. ♪

david: good afternoon and here is what we are watching at this hour. one hour left on the u.s. trading day. the only thing investors are betting on is that the fed will not raise interest rates. this includes a two day meeting tomorrow. a final round of bidding through yahoo!. vying for the company. each maybe after something different from the company. what should investors do after the eu mentorship and central-bank policy meeting in the u.s. and japan. ramy: we are really at session lows.