>> we are going to take you from new york to london to rome in eight of the next hour. this is what we are watching. campaigning for a brexit is being suspended for a second day after the murder of labor lawmaker jo cox. prime minister cameron says it is time to treasure for this democracy and drive hatred out of politics. >> oil recovering from its biggest drop since april as bob dudley speak to bloomberg. when will markets finally rebound? a classic song margarita inspired more than a happy hour don't drink. we look at the global conglomerate made of hotels and

merchandise developed over 40 years. we are 30 minutes into the training day in the u.s. let's head to the market as with julie hyman. wish they would've written in the margarita discussion during the break. let's take a look at stocks. seeing a selloff in the u.s. despite the rebound elsewhere, especially in european stocks. in the u.s., it is not happening. the nasdaq is down .5%. let's took at the -- let's take a look at the bloomberg. we have commodity stocks higher. on the lower end, consumer staples are selling off, particularly soda stocks are getting hit after philadelphia instituted a soda tax. technology and health care lower. technology, there was a ruling in beijing against apple same the company in france on a

patent of the chinese phone maker -- saying the company infringed on a patent of the chinese phone maker. it just applies in the city of beijing, not elsewhere in china, but could set a precedent for other cities and regions. are also and alphabet taking a hit today. we are watching these and mastercard. these the saying yesterday -- visa saying yesterday they are going to help merchants with technology. that per -- that might perhaps increase cost. mastercard shares are also down. we have a commodity rally, a bounceback, a rebound commodities. crude oil rising for the first session and seven. copper futures coming back and

natural gas as well. that is causing an increase, a rebound in some of these commodity producers. if you look at the shares and we saw that through the imap, energy stocks are on the rise. chesapeake energy, freeport, and energy energies are all higher. mark: stocks are rising. the stoxx 600 is gaining 1.6% gaining for the second day in three. we have dropped six days out of eight and on our third consecutive weekly decline. that is the longest stretch it augustest stretch since -- since april. 36% of a brexit before the death of jo cox. murderggesting that her

has made a vote more likely. any in the referendum today for the second consecutive day in cox's death.jo this is europe's sphere index. it is dropping. yesterday, we rose to the highest level since august. climb point yesterday, we to the highest point since 2011. we are coming off of those highs today. look at the ftse 100. ftse 100it occurs, the good fall to 5300. i drew a little green line. the last time we reach those levels, it was 2011.

the index could rally as much as 14%, talking about the euro stocks. it could fall as much as 15% if a brexit happens. occurs,remain vote u.k.'s biggest supermarket itsator, would be selling home and garden for $20 million. this is a great chart showing the 12 month price target. a year ago, they were neck and neck. they are diverting once again. vonnie: amazing. thank you, mark. let's check in with bloomberg first word news. >> thank you. british opposition leader jeremy corbyn says parliament will pay

tribute to slay lawmaker jo cox. the unusual for move and cameron agreed. the two men appear side-by-side at the side of the killing in northern england. they lay flowers and cox's memory. lost the mosthas brilliant campaigner. epitomized that politics is about serving others. our nation is shocked. it is a moment to stand back and think about some of the things that are important about our country. killingn called cox's an attack on democracy. has --hers -- searchers have recovered the second part of the black box of the egyptair flight. investigators hope the devices can tell them why the plane crash killing all 66 on board.

a 94-year-old former sergeant who served in german has been counts ofty of 17,000 murder for hoping -- for helping in all 1.3 million jews iot too death camp -- in a naz death camp. iraqi forces are trained roadside bombs in the government complex. -- iraqi forces are clearing roadside bombs in the government complex. many are criticizing president obama. it comes in an internal document saying that military has been overwhelmed in syria. global news 24 hours a day, powered by 2400 journalists, in more than 150 news bureaus across the world.

vonnie? vienna, central manager joins others in sounding the alarm for a british exit in the eu. have a listen. >> we can shed light on the economy on one choice of the other. we have done that in a publication that will boot -- that will be released soon. we have released -- we have reached our determination and the economy risks of leading will be on the downside. vonnie: the number of policymakers signaled they are not ready to act since a leader vote win this week. lower. global stocks global stocks lower.

you just heard christina lagarde that the economic risks are to the downside. what about the market risks? brexithave to think that is being priced in two global fixed income markets -- priced into global fixed income markets. economy that is been accelerating at the middle of the year and inflation rising. policymakers are moving glacially. all of those push yields up. one plausible explanation is that brexit fears getting traction. and you have negative interest rates. they are related. ityou do get a remain vote,

would not be unreasonable to see some of those fears unwind. the one caveat is you would be hard-pressed to explain the entire move to global markets to get safety from brexit. management,t longer-term holdings -- are your clients concerned? or are they riding it through? >> this may be falls into the latter category. have a global marketplace -- you have a global marketplace. downside risk of to keep manifesting itself. one of those risks that continue to test a pretty fragile recovery. themes, of investment something that has come into prominence, which is an up

inequality trade. -- which is and what up in quality trade. vonnie: even at negative yield? about u.s. investment grade is basically giving you more or less equity-like returns this year, but with a fraction of the wrist. we have a similar type of positioning where we like the u.s. equity markets versus elsewhere in the world. in a situation where the global risks are to materialize, the and does better in the up quality market. cash on thebout the sidelines? there is a lot of it according to merrill lynch. fund managers have cash piles of 5.7%, the highest since 2001.

barclays is time to put a figure billion isg $140 sitting on the sidelines. when does that cash be put to use? if we get a remain vote, will that be a trigger? >> that will be one of many triggers. as you can see from that chart, a persistents been one. it was not garnered in the first place by brexit. it has been garnered by the uncertainty of how much longer this cycle has to run and what are the returns on risk assets? do get a lot of that cash to work, you need people to be convinced there is more room to run. -- this cycle is somewhere in the middle with a few more years left before the next u.s. recession. in that case, we are advocating putting that cash to work. mark: how does that play into the thinking when it comes to the fed.

this week, two more rate hikes still seem to be in place. three next or, through the year after, that is not so bullish. the markets are still not buying it. too many., >> if anything, they are continuing the process of defining what gradual means in terms of the trajectory of rate hikes. they are doing so gradually. march, they took out to fill hikes out of the 2016 projections going from four to two. they will do the same thing for 2017 and 2018. a hike every six months or so for the next two years. vonnie: you mentioned u.s. equities as a better play. where will we see the leadership? >> some hints are coming from recent data. cpi, itmorning's

services prices doing well. goods prices are a bit of a drag. that is indicative of the tightness in the u.s. economy. services sectors and domestic sectors, that is where you see manifestation of strength. vonnie: thank you. coming up, value over volume -- that is a message of oil companyy as the balance as stocks. more from dudley, next.

♪ mark: by from london and new york, i'm mark barton.

it is a hazy friday, vonnie. right, mark. is that on purpose? mark: we pay them and we pay . em 10 pounds vonnie: oakville, ontario, and chicago. viacom says earnings for the quarter ending engine land the edight analyst's -- lagg

behind analyst's estimates. siemens and a corporation has agreed to combine functions. europe's largest company will own most of the capital of the new business. that is your bloomberg business flash. mark: oil has had its biggest weekly drop in more than two months. brent crude is looking like this. predominately, it is the weaker dollar falling for a third day. we are seeing nymex crude up by 2.6%. brent crude up by 2%. -- by 3%.

dudley told ryan chilcote saying that he sees oil stabilizing. to begin to see by the end of the year, we will get back into a supply and demand balance on a daily basis. that will firm up, i think, the volatility somewhat. then we will still have a lot of stock we need to work off for the next two years. mark: still, oil's recovery remains fragile. here is what dudley told ryan about future growth. very, very getting about capital. we had been pursuing value over volume. it is not just getting production up. being the low cost producers, the name of again going forward in the industry, we were up around 27 billion two or three years ago. we got about 17 this year. we think we can operate next

three years. mark: still ahead on "bloomberg weekly dive into the $3 trillion ecf markets is next. ♪

vonnie: welcome back to "bloomberg markets." apple is down and trading, but we just learned that hathaway has been a community mistaken iphone maker. and $99 a share, the company purchased an .8 million shares of apple through march 14 for just under $1 billion. that is what we know of the purchases. let's get straight to julie hyman. etf isthe low volatility

crazier than ever. we have seen 31 different etf's attracting inflows. isr to break it down bloomberg's etf analyst. first, i want to talk about why. we have called -- we have seen analysts calling for an uptick in volatility. .> it is really a mania overall, these things were launched for investors who want less risk and will forgo upside to limit downside. this year, it is performance chasing. yet seen $13 billion rush into these things. no matter where you look, they are outperforming the parent index by about 5%. etfou have a u.s. lowball and the market is up 2%, that is lapping the market.

we have seen an etf grace. can pull andetf's $13 million in six months. but for a soft beta category, it is odd. everybody wanted to currency hedge. those etf's took $7 billion in the first six months. the fact that these have taken it is almost the biggest craze in terms of an etf category. >> do these crazes flameout? >> currency hedging, right? that central bank trade stopped working. will stick.money some people who have gone in when they buy it, say, they like the idea of lowball going forward. lowball etf do it they say. if you look at the volatility of the s&p 500, or the lowball a

powershares, they are between 10% to 20%. selloff,is a violent sometimes at number titans because everything is going down. normally, it is giving you a smoother ride. >> interesting. what about the ones that are not as common that are taking in the cash during this craze? >> the powershares small-cap lowball is like an oxymoron. you go to small-cap to get the volatility. up 8% for% -- it is the rest of 2000. that is a nice chunk of change. >> this is an interesting one. the euro currency hedge lower volatility. we have seen lower volatility in the pound. >> this is a bit like taking to

crazes like chocolate and peanut butter. you have lowball and currency hedging. the benefit of this one is it is 35% less volatile. the lowball is working really well in europe. this one is 25 basis points. it is drawing money in because the regular currency that is most popular are triple the cost. they been guarded the category -- the vanguarded the category. >> thank you very much. vonnie: still ahead, microsoft was not the only bidder for lincoln. we will tell you who else was courting ♪ the networking site. get ready for the rio olympic games

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-- over the new york skyline. this is "bloomberg markets." i'm vonnie quinn. mark: and i'm mark barton. let's check in with first word news. much andra has more. -- essio russian cyber gangs have been linked -- they have been linked them to a number of bank heists. ae record breaking theft from bangladesh central bank. the head of one of france's largest unions said there is no reason to stop the protest of labor performs. leaders say the government should stop parliament tree debate on the proposal. the reforms would make it easier for businesses to fire workers. president obama's meeting with saudi arabia's deputy crown prince. the complex in yemen and syria

are the topics on the agenda. this comes after the senate passed legislation to allow totims of 9/11 families dispute saudi arabia and chechens. new details are emerging about the night and the attack in orlando, florida. message to send a his wife during the rampage. it is unclear if she knew where he was when she received them. says the family has been put on no-fly list as the investigation continues. people are causing to remember a gun attack in centerline a. it has been one year since 19 people were gunned down in a manual ame church. the attorney for the shooting suspect says he has no plans to move the federal trial from the city. global news 24 hours a day, powered by 2400 journalists, in

more than 150 news bureaus across the world. vonnie: thank you. microsoft cofounder bill gates says linkedin will be the facebook for careers. he spoke erik schatzker about its potential. think the value of the to companies combined is greater than the two by themselves. i love the idea that the market wants us to show that. the company that is an expert in software -- it is great that they have and opportunity to surprise the world. this professional feed in linkedin, that is how i want to learn about my career, my company, my industry. i am going back there. valuable make that has as the facebook feed in the --ial world, that is huge

that huge valuation will happen over a period of years. vonnie: we are learning that microsoft was not the only suture for linkedin. sales worth was also in the running. our m&a reporter has more. salesforce was in the running. they probably would have made a presentation. away someorce given proprietary information that might help its competitor? >> we don't know exactly how far the discussions went which would answer your question about how much do diligence was done between the two who companies. salesforce dropped out fairly early in the running because salesforce turned around and bought demand. what is interesting is that sort of implies and we don't know the specifics yet, that salesforce -- running to fill parallel running to m&a processes -- two

in a processes. from what we can do, we don't know if they even knew about each other. if this detail about what exactly did salesforce bid, when did they come in to the process, we will learn more and the proxy that will have to be submitted when microsoft and linkedin say this is how this merger came together. that will be in a few weeks. there is no exact date yet. salesforce won't he named -- won't be named. we have enough information to find out exactly that was probably salesforce. vonnie: i was surprised salesforce was going for something like linkedin. alex: yes and no. salesforce is much smaller than microsoft. that said, if microsoft is looking at linkedin, microsoft is a competitor to salesforce. as a matter of fact, microsoft

thought about buying salesforce last year. but those talks dissipated after we broke that story. similar to linkedin, microsoft shares fell. from my understanding, they heard that from shareholder saying, don't do this, at least not yet. salesforce stock has gone up and up and up. they are more successful today and when microsoft was talking about them doing a deal. nhey cannot come to an agreement about price. maybe salesforce decided that the price was too steep and too big of a bet. microsoft decided vessels force was too big of a bed for them -- microsoft decided that salesforce was too bit of a bet for them last year. if you look back to the last two months or so, the enterprise software world has blown up in terms of m&a. there are 7, 8, 9 deals that

have been announced in the last two th months. there is something going on here where the spread between buyer and seller has become appropriate enough for deals are getting done. on top of that, you add in the partners vista equity are looking at a lot of the software companies, and they are bidding on them. what that is doing is that the public companies that may be want that asset are thinking, if e equity firms are buying it, they will sell it at a higher price meaning we had to get in now and not let them buy the assets that we are interested in. if we wait, they will scoop them up and then they will be more beensive five dollars -- more expensive five years down the road. mark: so we are not looking at a bubble in this space? alex: i don't think so.

there are a lot of software companies. a lot of them are private still in the are unicorns. -- a lot of them are private and they are still unicorns. maybe it is time for us to sell, too. that will continue over the next 12 months. vonnie: thank you with that great scope. thanks. mark: coming up, it is the anti-establishment fight gaining ground in rome's upcoming mural election. we will talk about the future of big eu, next.

♪ is bloomberg markets. i'm mark barton in london. vonnie: and in new york, i'm vonnie quinn. bloomberg's abigail doolittle has a life that has the latest live in the nasdaq. atgail: we are looking another midmorning selloff for the nasdaq. the index was down a 10th of 1% outpacing the losses in both the dow and s&p 500. overweighting the of some of the the technology shares. the worst presenters performers this morning, linear technology. this at cleveland research has offered a cautious mention at the chip company. be slowingpear to for the fiscal first quarter across multiple end markets. china's electrical vehicles slowing. technology -- investors are not

taking this so kindly. mentioned the force of weakness of the nasdaq versus the others. which one standout? abigail: apple shares are down down the s&ping 500 and nasdaq. on the news that china has banned apple from selling the iphone 6 in beijing on a patent infringement issue. capitalists are saying that apple should not see any impact. but with the first drop in sales for apple and more than 10 years, investors are buried -- or very sensitive. they may think this could be a sign of more bearish news on the iphone to come. vonnie: what about the news that birther have to weigh -- berkshire hathaway? andail: berkshire hathaway

warren buffett are long-term investors. thatit was first announced that position was taken on, the question was, will they add in the quarters to come? -- we willw after know later. they are long-term investors suggesting they seem something over the long-term that is positive. vonnie: abigail, thanks, from the nasdaq image, 10. minutes are roughly 40 from the end of the friday session. it has been a turbulent eight days. we are rising for the second in three, but stocks have fallen six days as we approach the u.k. referendum. murder of joer the cox. shares arebrexit proceeding today. brexit at 36%. yesterday, they were up 44%.

is on target for its third weekly drop. industry groups gaining today. check out the best performers. banks are up 3.8%. travel and leisure all gaining. interesting moves in the currency markets. it has been a turbulent period for the pound. the pound rebounding from yesterday's midday march low against the dollar. and after an a to date run of games for the 10 year, that run has come to an end. the yield is rising today. italy will be holding local elections on sunday. the country antiestablishment five-star movement has a chance of winning rome and upsetting the government of the prime minister. he could also spell trouble for ecb president mario draghi

fighting for a unified european economy. john, to what extent does a five-star movement in the mayoral election in rome change the political landscape in italy? >> right. the question is if matteo renzi oh is losing his magic touch. he has been in power for 2.5 years. veryis a -- there is a strong upsurge in italy. roman means the focus of this. the corruption by previous administration. this is what the democratic renzi could end up losing the capital. that would be a tremendous blow renzi's. -- for matteo >> we have italy/sweden match

behind me. guess italy scored. i had the same feeling when england was playing wales. italy, the increase in popularity of the five-star movement. it is a reflection of these populous movements right across the european region, isn't it? john: that is right. and becoming more crucial because of the elections we are expecting. obviously there is spain. france, andermany, we are seeing various movements both at the local level and at regional level gaining power. in italyopulous wave this time. overe: that game is now and italy has beaten their competitor. if you look at the 10 year yield, french and german bonds

-- the markets are clearly not taking too much notice politically at the moment. john: right. you're correctly interpreting that at the local level. but if you look forward to october, italy is going to have a referendum on its own, not on meeting the eu, but an overhaul of the senate to try to fix the italian government. it is what matteo renzi is calling the mother of all battles trying to enter the government can stay in power longer. he has also promised that if he loses the referendum in october, he will step down. anything that points to his popularity going down, to his party note being on the top one in italy raises a serious question mark over his future. vonnie: is it the perception economy, is a healthy or if there want good policies hurting his party?

part of thes problem. the rejection by the populist movement is not only can for corruption of the establishment, but also the very weak the time recovery. the funds that were set up, the private sector fund, was to try problemsthe bad loan affecting the banking sector. it is too little, too late. it is impacting weak, modest growth. mark: john, thanks for joining us from bloomberg news in rome. we are the channel that brings you euro 2016 results. it is time for the bloomberg business flash. look at some of the biggest business stories in the news right now. the biggest u.s. airline missed their chance to lock in the cheapest fuel prices and 12 years. it has risen -- just fuel has risen more than 20% since

january. delta did not lock in those prices. they may have felt burned because airlines lost billions on hedging is screwed plummeted to $26. there is a deal in the specialty chemicals industry. the price, $3.2 billion in cash. albemarle is looking to pay down instead from rockwood holdings. as we were just talking, we learned more from berkshire hathaway's in apple -- berkshire hathaway's investment and apple. it is based on recent regulatory filings that provides details on investment. the company purchased 9.8 $976on shares of apple for million. that is your latest bloomberg

business flash. vonnie: still ahead on "bloomberg markets," march is no wasting away in margaritaville. we will hear from the company's ceo about it lifetime brands. ♪

♪ pursues,nd today's margaritaville has become the foundation of a booming business, nearly four decades after it was written. this growing company is made up of hotels, resorts, restaurants, merchandise, media, and lots more. schatzker, said down with the company's ceo and asked him why the jimmy buffett brand is much more than just a state of mind. >> the business is a lifestyle brand. we like to say whatever your latitude, we try to bring margaritaville into your life,

whether it be going on vacation and the physical way and one of ,ur resorts, having a vacation shopping for clothing, a blender for entertaining at home, we like to bring that lifestyle to you wherever you are. erik: you are already in four distinct businesses -- lodging, alcohol, you mentioned the beer, margarita mix, licensing media -- that is a lot to start off with an you are continuing to expand? >> the first margaritaville was open in key west 30 years ago. one of the nice thing about margaritaville, it continues to expand. we have our own radio station. when you drive into work and you want the weather report in valley for a surf report, we provided. of $2.5stem-wide sales

billion last year and growing dramatically right now. it has got real critical mass. erik: how faster you growing? 20% to 20% rate. we just opened in hollywood, florida 350 room resort. we are doing a project in orlando with vacation ownership and hotels. that is the fastest part of our business. erik: let's talk about jimmy buffett. >> one of my favorite topics. erik: i'm sure. why jimmy buffett of all things? why jimmy buffett in terms of someone who has been able to bring that world -- the lifestyle to so many people. jimmy is an interesting guy. very successful musician, but he is a writer. there are six authors number one on the best selling list.

hemingway, steinbeck, dr. seuss, and jimmy. to jimmyre is more buffett then margaritaville? >> yes it is. it is jimmy's take on life. it is really the attitude. it it is a very unique way of looking at the world. work hard, enjoy yourself, be responsible. erik: how big is this company be --you are doing 1.5 billion $1.5 billion in sales. good times the size and five years. erik: but the lifestyle is fun, but is it profitable? >> it is very profitable. it is the fact that everyone is having so much fun. they are vary connected -- they are very connected. erik: i am curious. you do have an outside investor. sleeping their

ingre of profits -- sweep their share of profit. >> you know how that world works. there are so many different ways you can do that that don't necessarily impact the corporate structure of the company. we are having fun doing it. it is exciting. one of the elements of the resort business is it is capital-intensive. we have hit an inflection point where capital is available. an interesting statistic -- if you go back 18 months and ahead 18 months, $1.5 billion is going into the ground our name on it. that is fun to be able to now tackle projects of that size. we anticipate we will be in the all-inclusive business. we are just getting started --

it is like we are just getting started. vonnie: that was erik schatzker with margaritaville's ceo. they make you relax immediately. mark: i like the idea of relaxing. too much tequila, vonnie, not so sure. [laughter] coming up, it is the european close. looking ahead to russia for and what excuse interview for the chairman of energy and gas company. european stocks are remounting -- rebounding. we are heading for a third week of decline. the stoxx 600 up by 1.4%. ♪

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you're watching the european lose on "bloomberg markets." vonnie: take you from new york to london to st. petersburg in the next hour. trimming weekly losses as we head to the close. and health care tech and consumer stapleles are lower in the united states. brexit campaigning on hold for a second day after the murder of u.k. lawmaker jo cox. parliament will be recalled onday in order to pay tribute. and microsoft bill gates sits down with bloomberg tv to talk about the company's massive deal to acquire linked in. we bring you highlights from that interview later in the hour. mark: 30 mes