post, it is part of president trump's executive order to streamline government agencies. the president's proposed budget would eliminate 3200 workers, cut the epa funding by 31%, and cancel funding for climate change research. plus an additional 50 programs. united nations secretary general antonio guterres will attend meetings in washington later this week. he will discuss financing for peace at the world bank on friday and speak at the imf opening meeting on saturday. the secretary-general has no plans to meet with president trump, but says he believes, "that will happen in the near future." bill gates says he is counting on the president to be reasonable when it comes to cuts in health care budgets. he microsoft cofounder spoke with bloomberg television today in geneva. bill gates: you have seen his pragmatism on a number of things. i certainly hope that these

receivedlated budgets some of that attention. mr. gates is confident that the proposed cuts won't make it all the way through congress. former president george h.w. bush has been hospitalized with pneumonia. mr. bush's 92. according to a family spokesman, he remains under observation and will not be discharged today. but looks forward to going home soon. global news 24 hours a day powered by more than 2600 analysts inand over 100 20 countries. i'm mark crumpton. this is bloomberg. ♪ >> live from bloomberg world

headquarters in new york. joe: we are 30 minutes from the close of trading here in the u.s.. scarlet: u.s. stocks falling to session lows. all major indexes, i should say the down the s&p negative. the nasdaq still hanging on to gains. joe: the question is, what'd you miss? has beenbill o'reilly forced out of his position at fox news. the warning signs are getting darker. the biggest money manager told bloomberg today about what he thinks poses a risk to markets. earnings so far have been mixed. after the bell with qualcomm and ebay. announcing results. joe: let's look at where the major averages stand as we head towards the close. abigail doolittle is standing by. abigail: we are looking at mixed averages, the down the s&p 500 down. the dow down .6%, nearly near

session lows. the nasdaq still up slightly. both the down the s&p 500 are being weighed on by ibm. the nasdaq does not have waiting there. another drag on the dow and the s&p 500 is the energy complex. oil trading down sharply down nearly 4% after inventories dropped. basically in line, but a surprise gasoline inventory build. that is a bit of what is happening here. two of the big companies dragging on both the dow and the s&p 500. strength for the chip sector. they put up a monster first quarter that is helping the increment companies. under some pressure today, this is typically considered to be a leading indicator. they do to buy that equipment today.

the overall market weakness going to the close, the stocks are well off of the highs. and finally, looking at stocks doing well going into the close, we have sinclair broadcasting up 4% on the best day since march 1. we also have tribune media trading higher as sinclair is interested, aiming to buy tribune for a high 30 per share, scarlet. adjusting the stocks are trading higher on that report. itself -- setss us up perfectly for the next conversation. we are bringing in alex sherman. the latest here is the price tag. the high 30's? that tribuneting is trading up because there were whispers that the price may be higher in. -- higher. we are hearing not so likely. there may be optimism that any deal is happening here. it does sound like sinclair

really wants to get a deal done. the other piece of news, i want to get done theoretically by the time the tribune reports earnings which is next month, may 9. there is still a very big overhang here. the fcc votes about whether or discount.nstall the is.let: explain what that alex: you may remember your old tvs, they have the dial channels one through 12 and in a dial underneath. one through 12 was vhf, uhf was 13 and up. anything like that anymore. there was a discount for uhf channels. when it comes to capping your sorts ofere are all

different rules about how many stations. last year, 2015, democrats decided to do away with the discount. people watch through cable. cap.sh companies over the it made them not able to get bigger. the stations themselves really want to get bigger because bigger is better in the world of broadcast tv. more leverage when you negotiate with pay-tv providers or the content providers themselves. fox, nbc, abc. is reinstated. themselves now aren't over the cap anymore and we get bigger. rallyingee sinclair

4%. what is the analyst take that it could mean for the bottom line? alex: definitely bigger is better in the sense that not only are there synergies involved in a deal like this because the company basically does the same thing. and from a leverage standpoint, there is no question that there will be messengers and we improve from that standpoint. i will say that there are other buyers here. fox might do something with a private equity firm. those things are still in the background. to watchll continue that story. bloomberg m&a reporter alex sherman who wrote the story on tribune. both stocks up in the late trading. miss?ou the first batch of boomers born in 1946 turn 71 this year. they must start withdrawing their retirement plan. younger boomers are expected to move their assets to more volatile sources. that spells a big upslope coming

from decades or equities over the next decade. joining us now is sam who wrote a report on the subject. the founder and portfolio ofager, a startup discretionary hedge funds. thank you for joining us. is it really this simple? a bunch of people retiring and taking money from the stock market. >> thanks for having me here. what we have seen historically as people turning 71 actually selling down their assets. it is that simple. but that long-term debt, people forget about it. one thing that we've noticed in recent years is that companies have been buying up a lot of their own shares. are we more balanced?

a policy. definitely the corporatization of north america is something that has happened. how much further can ago? what are the unintended consequences of that? especially relative to debt levels on corporate balance sheets and the level of interest rates that the fed can raise. your report on this subject had a number of interesting specifics put into what you're talking about. this chart of how americans save all the way projected out to 2060. and what we see, starting about now is a blue line at the bottom. the percentage of americans that will be dispersing as it really starts to climb. how much are we talking about? how much per month are people

going to be pulling out of the market as they need to pay for retirement? and pull out of their ira? that inestimate is 2017, we will see outflows of anywhere between $350 billion and year up to about 300 $50 billion by the year 2025. that is every year coming out of the equity market. that is both from disbursement 55 and foro from age the rest of their life. younger generation x needs to start saving more conservatively. and we have millennial's coming-of-age, working, contributing to the 401(k). are they likely to put more money and equity as well? sam: i get the view that there access to of

financial assets that there maybe wasn't 30 years ago for younger generations. what we see at the same time is that younger generations are much more burdened with debt. the potential for them to save is going to be delayed compared to previous generations i about 10 years. ofhink we have this lapse time or the younger generation should be saving more. will be saving less than previous generations at their age. joe: you pointed out that for years, the boomer generation every month putting money into the market. it sort of implies a view that fundamentals aren't really that important. that there is a pool of money out there that people need have money for their retirement. pe, evaluation, the state of the economy, the fed. the things we talk about is not as important as this supply and demand balance that we see. is that right? sam: that is definitely my point

of view. we tend to find justifications for our actions for the valuations. end, it's a supply demand balance. i tend to stick to that view, yes. to what extent do you think the coming flood of disbursements is priced into the market right now? how understood is it? i think it has always been on the back of the mind of most people. age 71,nding that at people have started dispersing assets is less understood. think with long-term issues, people tend to push it back and say, it is well-known and in the market. i still haven't heard much counter arguments to this point or from otheranks

hedge fund managers. founder and portfolio manager at light field capital. thank you for joining us. a chat with blackrock ceo larry fink. we talk about first-term performance and industry tends -- trends. this is bloomberg. ♪

scarlet: blackrock missed on revenue last month but beat profit estimates thanks in part to investors pouring a record $64.5 billion. larry fink joined bloomberg for an excuse of interview today and broke down the performance.

>> it was other income and on-base fees, we came right in line. we had a very special charges. we prepaid a bond issuance. a $14 million expense in the quarter. chart that we took and preannounced related to the restructuring of the equity. about thery excited quarter, even as you noted, $80 billion in inflows. in an industry that predominately had outflows. and what was great about the quarter was pretty broad-based across. equities.llion in $33 billion inflows in bonds. approximately $1.5 billion of inflows in both multi-asset and $1.5 billion in alternatives. it was a pretty broad-based

inflow. it was global. i would like to have every quarter like this. >> the numbers do kind of speak for themselves. but they are backward looking. 19 days. how would you describe the state of your company right now? >> 29 years of hard work, building relationships worldwide. >> people know that part already. it is sedimentary every day and every year, growing and building relationships. it is expanding our presence across the globe and in different products. as you know, eric, i have traveled continuously throughout the year. i am very happy and proud of the relationship we are building.

clients are seeking our information and opinion more than ever before. eric: is that to say $80 billion of quarterly flows well ahead of last year's average quarterly pace is sustainable? larry fink: i would not say that. i would never predict that type of future because i don't know what is going to be in the future. eric: you know something. inflowsnk: we saw huge in the fourth quarter. it carried to the first quarter. we always talk about the wall of cash. some of that cash has been put to work. as we see the consternation in the marketplace, there is a little pullback now. i think people are waiting to see corporate earnings to see if there is a justification of the significant rally. , asserting that we will continue to grow that size or even higher, i would never make forward estimates.

the dialogues are greater, deeper than ever before. at 12% sales are moving revenue growth. eric: you technology risk management business. all the components of the organization are doing quite well. eric: let's go back to the flows for a moment. because they may not be predictable. they do say something about what clients want and what their appetite is. you do have your finger on that pulse right now. so have flows slowed since the end of the first quarter? not necessarily. it is too early to tell. i don't talk about this current quarter, but i would say flows are still quite strong. opportunities are just as robust.

the opposition is just as deep. there were flows from equities. almost $7 billion on top of $20 billion in 2016. a business you are already trying to fix. larry fink: we are in the process of fixing. eric: how much of the $7 billion and how much of the $20 billion is a problem unique to blackrock? and how much of it is a street trendy? productsk: some of the are unique to blackrock. much of it is industry. we're still seeing very large outflows as an industry with -- we have been a big beneficiary of that. we are seeing many more active as anrs using passive asset class. and so those trends are continuing. you have many financial advisors moving even before we know what

the regulation outcome will be. we are moving towards an advisory relationship. an advisory relationship means that they are using more and more etf's as instruments. we announced a big restructuring. we have mark wiseman running the platform and doing this. the reaction has been strong. the performance is good. equity.ly with the we had tremendous performance in the first three months and two weeks. was blackrock chairman and ceo larry fink in an exclusive interview today with erik schatzker. the u.s. equity indexes had the session lows and we still look at the nasdaq up by a hair. almost eight points. the dow and s&p lowered by about .3%. most major industry groups are down with only health care,

industrials, and consumer discretionary positive. even there, it is barely positive. one of the big stories is the plunge in oil prices. huge collapse there. day, and in the afternoon. a big drop on inventory. that is dragging down the energy. out at: bill o'reilly is fox news. what does this mean for the the profitability of 21st century fox? we will explore. this is bloomberg. ♪

joe: fox news has announced the departure of bill o'reilly, bringing an and to a decade run at the tv network. paul sweeney talks about what it means for 21st century fox. and of itself, his show is the highest-rated show and generates the most revenue. 1% of the entire

company's revenue stream. in itself, it is not that big. but if you step back and look at the cable business for 20th century fox, the cable network of theses are about 80% operating income of the entire company. take a look at fox news and they have lost a lot of their primetime talent over the last six months. not to mention robert -- roger ailes. -- itkelly, bill o'reilly calls into question the ratings of the entire primetime lineup. they will have to see how it plays out with some of the newer players filling the rolls. it's a very unusual time or time for fox because we are coming into the upfront selling season where the tv networks go to the advertisers in may and say, here is what we will give you next season. an advertiser may step back and hold a couple dollars until i see how the ratings play out. uprlet: i'm glad you bring advertises because it may have

been advertisers pulling out of the bill o'reilly show that tipped the murdoch's hand. public company, when they see dollars walking out the door, they have look at the situation. something that blew over after a couple of days. they sensed there was staying power behind some of their major advertisers and how they were thinking about not just the o'reilly show, but potentially about some of the other fox networks. sayingnger murdoch's that we need to make a change here for the good of the entire company going forward. they hope the tucker carlson's of the world will step up and maintain the audience for this network going forward. tucker carlson will take over the bill o'reilly timeslot. it thank you so much. bloomberg intelligence media analyst and intelligence director. the market close is next. let's take a look at the major indexes before the close. session lows just moments ago,

coming back up a little bit here with the dow off by 123 points. this is the fourth straight day the dow has moved by 100 points. joe: a little action. scarlet: a little bit of volatility. this is bloomberg. ♪

scarlett: navigating the uncharted waters. insight from stanley fischer coming up. plus, earnings bonanza after the bell. tolcomm and ebay expected

report soon. the dow at the lowest since february 10. i am scarlet fu. joe: i'm joe weisenthal. if you are training and live on twitter, we want to welcome you to our closing bell coverage every weekday from four clock to 5:00 eastern. joe: we have some breaking news. stanley fischer speaking now. he says downside risks abroad are noticeably smaller. also, brexit has not led to a significant financial turmoil in the market and china's economy appears to be on more solid footing. the focus on abroad very interesting because last year, so much attention paid to that. it appears that now the fed appears to have, waters abroad.

international mandates became somewhat of a third mandate last year. joe: for the last several months, we have seen data strong. spilly fischer says any over from a policy divergence should be manageable. not necessarily concerned about the international situation. he says china appears to be on more solid footing. some benign comments about outlook from stanley fischer. begin with: we market minutes. the fourth straight day in which the dow has moved 100 points. a little bit of volatility coming back here with questions about the durability of the trump trade. the dow off 120 points.

nasdaq holding onto gains, rising by a quarter of 1%. we should note that oil prices were a big reason why you saw some weakness across the sector. if you come inside the bloomberg, you see that energy stocks were the worst performer down on the session there, reflecting the decline in oil prices. health care shares up 2/10 of 1%. of individual movers, stake on the energy theme, chevron at the lowest level since november. marathon oil having the biggest losses since september. on the positive side, you had land research gaining by 7%. a record high, in fact. let's take a look at the government bond market all around the world. takingrates in the u.s.

a little higher today. still pretty low. remember yesterday, really bottom following out -- falling out there. japanese 10 year ending at 0.1. at one point, zero today. all of the progress only to be appraised. scarlet: well said. in currencies, we see the dollar strengthening. you can see there, the straight line of. it has come back a little bit. over the last two days, i wash. among emerging market currencies, the mexican peso, the biggest loser. some headlines on the trump order wall. a report showing that total cost could surpassed 70 billion dollars. the original trotting out of the fees. did not include

you can see here, over the course of this year, the peso giving back some of its massive gains this year. it had lost about 20% of the value from late april until, i would say, mid-january of this year. joe: now a look at commodities. a lot of interesting action. you can see it following off the cliff until around 10:00 when it really started to weekend. lots of concerns about rising. unexpectedly high inventories of gas in the u.s. it almost broke $50 per level -- per barrel. let's take at another area, industrial metals. kind of a mixed picture there. copper down a bit. iron ore up 1.6%. gold down a little bit. definitely among the more

negative of the market. scarlet: those are today's market minutes. joe: let's keep on the commodities theme. i want to go into the terminal. this is really great because it breaks down the different commodities. you have the bloomberg commodity index. different commodities behave differently. , down,bottom, energy year to date. the purple line at the top, precious metals. which i want to focus on is the metals again. thel up slightly from start of the year. at one point they were up 11% 2%. to date, now, just up for me, this is a story to watch. these industrial metals declining is interesting. scarlet: certainly a reflection

of what is going on in china as well. breaking news. american express reporting results. thatue is higher anticipated. $7.9 billion was the reported number. you can see the stock reporting now. it had gained as much as 3.2%. perhaps more importantly, american express reaffirming the full year views. american express, as we know, under some pressure, certainly seeing the likes of jp morgan and the chase credit card take some higher and cards away with the sapphire card. about csx, the rail and transport company. offortably ahead expectations.

coming in nicely ahead of expectations. we see the company is taking a restructuring charge. i had it here. beatll, looks like a solid on a constant basis. the stock responding positively. scarlet: you can see it right here on the bloomberg. the straight shot of their. joe: let's take deeper into have in store.we we are joined by tobias. he joins us from his company's offices in new york. what is your read on earnings season so far? >> it is a to tell. companiest 10% of report. numbers are showing a modest the

price in earnings. scarlet: in fact we only have about 11% of the s&p 500 having reported. financials, more than any other group have reported. there is attempting should perhaps to look at the results and draw conclusions about the rest of the corporate world. what would you caution against generalizing when it comes to financials? >> i have seen some financials numbers. there's a lot of discussion about trading revenue. it is not particularly relevant for credit card companies, or for that matter, regional banks. i think it tends to distract us from what is really going on. one of the biggest concerns that has been talked about a bunch is activity has been

destabilizing. it does not tell you anything about the future. it tells you about the credit 2018.ms for the end of i do not like looking backwards. i was tell people you are going to get into a car accident if you are driving forward looking at the rearview mirror. you will hit something at some point. joe: a lot of the postelection trades, what people were calling the trump trade or reflection -- reflation has really scaled back. is it about more fundamental things going on with the economy, investors getting ahead of themselves? what do you think is the story? >> it is a good question. there was a postelection bounce

where expectations got ahead of themselves. when we were talking to people in washington, they were telling us that we should not expect anything before august or september on taxes. people were getting all worked up on it happening in april. if you were either stupid or naive if you wanted to believe that. number two, the flattening of the yield curve have also heard the financial specifically. areas helped some other but it has heard a big chunk of the market. you were talking earlier about thegy, prices pulling back energy stocks. people were kind of layering that into the economic call. to bring inant something that larry fink had said earlier about the importance of earnings.

>> bernanke season is probably the most important issue for the markets today. the marketplace had higher expectations on quick actions out of our government related to andreform, infrastructure, the regulation. those are the three things that the marketplace looks for. that will take obviously more time. if we do not have earnings validated, we could adjust downward five or 10% from here. scarlet: saying that earnings trump trumps initiatives. as you look at companies and the outlook, how come much -- how much can we expect in terms of visibility? >> two answers to that. the first is management will always be somewhat conservative. they would rather overpromise and under deliver. there is a tendency to be

cautious. you hate that cautiously optimistic commentary. the second piece is what are the drivers. spendingd capital surveys, we look at what people call the soft data. living standards which have been easing. all of these tell us that we should see some significant economic improvement which will earnings.side i agree with mr. fink on the earnings being critical. i think it is really about earnings and not about trump. the first quarter will be the first breakout quarter. i think the bottom-up consensus is looking for double-digit growth. scarlet: double-digit growth in terms of numbers. tobiassed like village --

, you are sticking around. joe: i want to recap some of the breaking earnings we have got after the bell starting with cfx. we want to correct some early reporting. the restaurant had been 790 million. scarlet: we should make the distinction that there are gap earnings and adjusted earnings as well. cap earnings, the actual was 39%. seelet: finally, on amx, we that stocks beating estimates. you see the stock there up 2%. from new york, this is bloomberg. ♪

for first wordme news. the prime minister wants to increase the conservative party margin in the comments as sheep of -- as she prepares for brexit talks. the conservatives with a 20 point lead over labor. in france, one of the suspects accused of allegedly plotting an attack had been on the radar of belgian officials. the country had open an investigation into the 23-year-old after his family reported to officials that he and plannedicalized to go to syria. president trump says now it is a

race between hollywood and georgia where a democrat that the president claims is backed by the media narrowly missed winning a congressional seat outright in yesterday's special election. he 140% of the vote in a primary that was seen as a proxy fight over the president's agenda. on june 2.e off global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. i am mark crumpton. this is bloomberg. thank you so much. we have ebay coming out with results. the first quarter beating resident -- beating estimates by a hair. this quarter, missing the consensus estimate. for 47s were looking persons -- $.47.

this quarter, the estimate does trailed the consensus estimate. the outlook has been reaffirmed. after-hoursby 3% in trade. have results out from qualcomm. beating nicely expectations. on the revenue side, $5.99 billion. were expecting lower, so would be there. quiet a range. it says that apple's manufacturers have reported underpaid royalties. there are still some issues out there relating to royalties. scarlet: "what'd you miss?"

tobias, you are an expert at distilling and measuring sentiment. you have a chart for us that is proprietary. that highlights how there is less panic and more euphoria. to what extent is it driven by earnings versus washington nuances, all of the noise coming out of d.c.? >> there are nine factors in the model. the capture a lot of things. are nine factors and the kind of work together. we are actually stuck in neutral territory. we have backed off a bit in recent weeks as the market has struggled, but we are in really neutral territory. it is not telling us that people are particularly excited. quarter.urvey every a higher there is

probability of a jump in the market or drop in the market. theas literally split down line. investors are unsure. markets do not collapse when investors are not excited. we do not have a euphoric perspective. we do not panic. the world is not blowing up. the jobless rate is going down. consumer spending is up, perhaps not as much as people would like. there is not a real confidence in markets. people like to look at the vix. i think it is a useless measure. the probability of gains are and as high as the vix, 30 40. people talk about it as a fear gauge. i'm sorry, it isn't. fearwe never called it a gauge on the show, i just want to point that out. one of the comments you have made before is it does not take

any guts to come on and say the markets will be higher next year. that is what the stock market typically does. it goes up most of the time. the only question is if there is an elevated chance of decline. when you look at where the sentiment is, what is the typical twelve-month out reaction to this? >> 74% of the time, the market is up 12 months later, looking at the same historical base that you are looking at at the chart. i don't know the exact number, but it is probably close to 90%. it might be it he a percent, 89%, but it is not 75%. when you start getting into euphoric territory, that is where you worry you have a chance of losing money. joe: all right.

citigroup managing director and chief u.s. equity strategist. thank you for being on the show. scarlet: some breaking news. rex tillerson is speaking at the state department on iran. he had earlier in the day said the u.s. has a strong partnership between u.s. and saudi arabia. he adds that iran could travel the same path as north korea. again, a direct quote from his statement, iran could travel the same path as north korea. if you want to see any more of his comments, let's listen in right now. : indeed, tillerson iran foments discord. just yesterday, the regime

exhibitedexhibited -- thus threatening saudi arabia's southern border. coalition forces in the arabian sea have revealed a complex iranian network. iranian naval vessels continued .o undermine the persian gulf conducted cyber attacks against the united states and our gulf partners. iran has been behind cyberattacks in the rest of the world, including a plot to kill investor todi the united states. whether it be assassination attempts, weapons of mass militias,n, disabling

.ran has destabilized piece political opponents are regularly jailed or executed, reaching the agonizing low point .f executed juveniles iran arbitrarily detains foreigners on false charges. several u.s. citizens remain in iran.r iran's nuclear ambitions are at grave risk for international peace and security. pastor tor habit and use the resources available to unsettled peoples and nations. with the latest test of a medium-range ballistic missile, iran's continued development and proliferation of nuclear technology is an defined of a

you and resolution. it has stated that it will conduct a second test flight of a vehicle that would put it closer to an operational in a condo ballistic missile -- intercontinental ballistic missile. no discussion of iran is complete without mentioning the a.po it only delays their goal of becoming a nuclear state. this deal represents the same failed approach of the past that brought us to the current imminent threat that we face for north korea. the current demonstration has no intention to pass the buck to a future and missed ration on iran. the evidence is clear. iran's provocative actions threatened the united states, the region, and the world. beginning,ted at the the trump administration is currently conducting a

competence of review of our iran policy. once we have finalized the conclusions, we will have clarity and conviction. thank you. iran is complying with the terms. deal andeak out of the iran is being sanction for its territory. another option for many republicans on the hill to their connections. secretary tillerson: i think it is important on any conversation and this is a mistake on how that was put together. it completely ignored all of

those threats that iran poses. i just went through a few of those with you. that is why our view is we have to look at iran in a comprehensive way in terms of the threat it poses in all areas and regions of the world. a is just one aspect of that. as i said, it really does not achieve that perspective. it is another example of buying in our ambitions. we buy them offer some time and then we have to deal with it later. we do not see that as a prudent .ay to deal with iran it as anothered example of the failed approach with north korea.

on north korea, is there series consideration being given to relisting it as a state-sponsored terrorist? secretary tillerson: we are reviewing all of the status in terms of state-sponsored terrorism as well as all of the ways we can bring pressure to bear and being gauge with us on a different footing then passed talks have been held. >> do you worry about the situation? tillerson: i'm sorry, i did not catch all of your question. >> [indiscernible] tillerson: we are concerned that the government of

violating. we are concerned about the situation. we are working with others particularly through the oas to communicate those concerns to them. all right. that was rex tillerson speaking at the state department. most of the comments on iran. he was earlier in the day talking about the partnership with saudi arabia. thatnutshell he is saying the u.s. is conducting a review of policy. the obama administration with completely deal, finally did other threats.

joe: he accuses iran of discord. as you pointed out, only delaying the weapons program, no fundamental change to it. he says the u.s. will not be passing the buck on iran to future presidents. probably a subtle, there are about the past a mr. trump. scarlet: let's get you some other headlines from mark crumpton. mark: president trump may meet turkish president ordered on -- erdogan . the white house is discussing the possibility of a face-to-face meeting. president trump called him on monday to congratulate him on his referendum victory. chicago cubs co-owner has withdrawn his nomination to be president trump's deputy

commerce secretary. that is according to a person familiar with the matter. timeportedly had a tough undermining his ownership of the baseball team to meet ethics rules. the president announced his intention to name him november 30. he formally sent the nomination to the senate. jason chaffetz is returning to the private sector. in a facebook post today, the chairman of the house oversight committee said he will not run for reelection or any office in 2018. he was elected to congress in 2008. he said his decision was not based on either health or political concerns adding that he was confident he would have been reelected. the new england patriots met president trump at the white house today. their visit was overshadowed by the news that their former teammate aaron hernandez killed

himself overnight inside his prison cell. he was serving a life sentence for murder. his lawyer said he will conduct his own investigation saying there were no conversations with hernandez that would have indicated this was possible. last friday, he was acquitted of two other murders. aaron hernandez was 27 years old. global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: thank you so much. let's get a recap of today's market action. we have stocks, a mixed day here with equities and the dow and s&p 500 losing ground. energy stocks, the big laggard here. let'get a rundown of some of the earnings we got after the bell. i am looking right now at cs ex.

that is the one green one after hours. interestingly the asx came in a little shy. 173 dollar -- million dollars restructuring charge. investors liking what they see. scarlet: you did see ebay and declining iness after hours. the second quarter forecasts estimate.e consensus american express's revenue beat estimates. as you can see earlier, the stock was timing in after-hours trade. joe: and, on qualcomm, we have that stock taking a little lower for the q3 outlook trailing estimates. 1.6% after hours. revenue $1.2 billion.

scarlet: a quick correction. this is after hours trading. earlier we were showing regular day trading. joe: "what'd you miss?" un-can a retailer become amazonable? walmart is trying to do it, buying retailer banda bows. has some ideas. oliver chen, senior analyst for collier and company. my of session right now is york andhrough new seeing all of the empty retail space. how do you survive this? >> i agree with you. physical store traffic is

undeniable. you like a good bargain, you like shopping such as tj maxx, ross. companies, tiffany and company. upgraded shares on louis vuitton. amazon, 50 million but people shop there more for replenishment goods. there is a revolution happening such that a lot of stores in the middle such as macy's and jcpenney's having to close. scarlet: e-commerce really where they are trying to expand. butproducer told us it is no bows. you would not know that because you cannot go to a store and talk to anyone about that. you can only see it online. >> what walmart is doing in the

acquisition is acquiring great talent. good point in case because it is really about bricks and clicks. consumer still love stories. trying on a suit, trying to figure out the right size, also fashion, theatest best cold shoulder top or stretch denim, it has everything to do with touching and feeling. the shopping experience, as we look at it and we do our research, it is a little stressful. trying toreciate you bill me out on my mispronunciation of bought a bows. they do have one physical location that i have been to. i do not have that excuse for getting it wrong. from walmart perspective, it is

fairly tiny. they bought jet.com, which is bigger. a powerhouse,e buying their way to relevant struggle -- relevance? >> keep in mind about 90% of the population is within 10 miles of a walmart. is click and here collect, buy online, pickup from store. the transformation happening is happening now. walmart is 50% grocery. a big frontier is how the united states involves with grocery habits online. they are in a good place in terms of the race. scarlet: i'm glad you brings up grocery. so often it is focused on apparel. i wonder if we are at peak

apparel. >> apparel has several levels of problems. zara, forever 21, and others can provide you a great product at a low price. pressure.s been under on the other hand, food is low-margin but high-frequency. amazon is trying on all fronts. retail has to compete. we know of a lot of these old line retailers have gotten clobbered this year. are there any picking through the wreckage, seeing the stoxx down, and a company that is un -- amazonable.

>> beauty, a lot of the skincare, cosmetics. we like the casual inflation of america. think of lululemon, yoga pants. dust towear them from dust -- dusk to dusk. walmart.think of the best in the world, every day low prices. you think about tj maxx, ross, that is the way we would scarlet: play it. scarlet: thank you. thank you for the much-needed inside. trade'sp, enter integration with ameritrade. this is bloomberg. ♪

miss?": "what'd you td ameritrade maintaining forecast for the year. rival,an to obtain their he does notut expected to close before september. talk about what work has already been completed and therefore will be in effect by march 1. >> we still expected to close at the end of the fiscal year which is september 30, but the planning was well along the way. some of the expenses we thought would happen in the first year of integration, we brought forward because we are out of planning. we announced october, september. the team, they are working well together. we are awaiting revelatory

approval so we are still competing but have to plan to be one firm. to thecloser and closer date and they get further along with the programming. we have to decide which ones we keep. it is quite details at this stage. joe: i'm looking at a chart that 2014, your trade in late down to a little over $11 in trade. is this the future? >> not only is it the future, it is the past. k to 2005, webac were all born out of regular and changes. it was literally hundreds and hundreds of dollars of trade. we started the era where it was $50 a trade, and getting down to single digits. you have mentioned you

have ramped up some of your spending related to integration. how much does that speak to the idea that investors are coming in and are more excited about what they are saying in washington? >> we certainly saw a very interesting trends the last quarter. there were some rebalancing of the portfolio. there was clearly more activity for new traders coming into the marketplace. to accounts were up medically. we cannot figure out how much of that was due to interest in the marketplace as a result of changes and how much of it was investors rebalancing the portfolio in light of the new mistress and. for example, we saw, on balance, 10% more accounts trading them last year. as you know, volatility was down year-over-year as well. it was one of the lowest volatility quarters in history. joe: is there a change in the

behavior of the new people entering the markets? obviously the decline in single still ames relative, well-known story. if any indication that is changing? >> the big story of the court is snapchat. what we saw was first the new accounts skew younger. or sevent was six percent of the trade. a bump in volume. many of the trades skew higher in terms of the mobile trade as well. that was just one effect. clearly the biggest effect of the quarter was taking a look and think who would be the losers and winners of the new and mr. asia. the biggest change was health care. go figure.

scarlet: is volatility in general good for you? is that something you look for? >> fine until the means -- volatility means uncertainty. derivative traders will trade more on that level of volatility. frankly, you are probably more aware than i. there is a lot of head scratching going on as far as having this level of this and this region with all of the uncertainty with direction, frankly, global fears amounting, and at the same time have record vix. -- record low it does not add up. we're waiting for it to change. i think it will. joe: it is interesting you mentioned the lineal investors coming in and snapping an opening for them. bearish guest arguing a

case that a lot of the bloomberg would be adequate i think -- izing. how much of a headwind you think there will be from this millennial generation, help underinvested are they? >> one is when does the bloomberg peak in terms of the deregulation of their assets. this is a few years out. you can argue that you are at peak speculation probably in the 2020-2020 two stage. only five years from now. that might be assets. we also find that when the clients get a little older, they have time. what people need when they need to trade is time. you action see -- actually see, our average client is in their 50's, and one third of the clients coming in our millennial's. these countering effects. it is difficult to crystal ball

say, what is the effect of this. it will be a couple of years out. when millennials are coming in and investing, are they going to stocks because that is strangely what you want to do when you want to take on risks? or are they going to etf's, credits, currencies? >> generally they do what most people do. they trade what they know. story, literally getting a text message from a friend of mine whose son was 16 and said, i need to get an account. they trade what they know. hawkey, thank you very much. fascinating insight on the nature of markets right now. we appreciate you coming on. up next, part of our exclusive interview with the cochairman of the bill and melinda gates foundation. and bill gates, what he thinks of president trump's take on the health initiative after meeting

last month. this is bloomberg. ♪

scarlet: i am scarlet fu. "what'd you miss?" d.r. horton benefiting from an improving economy and mortgage that,- mortgage rates, from a historical standpoint, are very low. let's look at the company in today's numbers don't lie. starting with the stock, the white line, and other homebuilders, the orange line, soaring this year. climbedton alone has 24% this year. driving the gains, the homebuilder sentiment holding at the strong as level in a decade. confidence and sales, the orange

line, traffic, the blue line. a shortage of existing homes on the market also benefits the list. the conventional wisdom is that the housing market would feel some pain by rising mortgage rates, but besides the increasing rate in the affective rate, mortgages rose to the since 2010.l for now, they seem to be shrugging off the costs. d.r. horton at a good position to capitalize on any upturn in housing. they closed on 40,000 homes in 2016. the white line shows an almost 50% closing gap between d.r. horton and the next largest competitor. even with land and operating revenue is stable for now. becomingss home brand

a bigger part of their business. expenses of land and materials could present a headwind to the gross margin in 2017. we will be following d.r. horton's results before thursday's opening bell. also tomorrow on daybreak america, home depot cofounder will be discussing housing. i will be at 8:00 new york time, 1:00 in london. joe? joe: what did -- "what'd you miss? i" last month, bill gates visited the white house. his issues of global health and education widely known. he recently told bloomberg that he is counting on president trump to be reasonable on issues like health. >> i am a strong proponent that evenation in health and

getting health systems around the world to be decent enough so that, as pandemics developed, you see them early, you detect them before they get completely out of control. ebola, which did not spread very quickly, think goodness, we still had to dispatch military activity to all ofavoid it covering africa and getting into the richer countries. if we understand on health -- under spend on health, we will have an epidemic of some unknown pathogen that will be economically, and militarily, beat very expensive.

we have some leaders like general mattis, the secretary of defense in the united states. that could anything horrifically go and kill millions of people, it would be an epidemic. you do not want to get out of balance. theou have been vocal and foundation has been vocal about being deeply troubled about the amount of cuts in the united states of america. iran, northrump on korea -- what is the possibility that cuts beat scaled-back? >> i think there is a very good chance that the proposal will not end up being the exact budget. there are things like the hiv life-saving work that gets done that has a very strong backing in congress. congress andrough they require enough votes in the

senate that they cannot just be completely one-sided on an issue like this. i do not think large cuts will take place. although, when that was first put forward, certainly, we had get even thend defense community to say, hey, they care about these things. joe: that was cochairman of the bill and melinda gates foundation and microsoft cofounder, bill gates, in an exclusive interview with bloomberg. coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: a lot coming up tonight. don't miss this. you have japanese trading at 7:00 tonight. joe: i will be looking at u.s. initial and continuing jobless claims. scarlet: don't miss this. the president hosts the italian prime minister at the white house tomorrow. joe:

hey you've gotta see this. c'mon. no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. alisa: i'm alisa parenti, and you are watching "bloomberg technology." president trump may meet with the turkish president next

month. a white house official says the administration is discussing the possibility of a face-to-face meeting between them ahead of a nato summit. on trump called erdogan monday to congratulate him on the referendum on expanding presidential powers in turkey. the chicago cubs owner has withdrawn his nomination to be president trump's deputy commerce secretary. he has reportedly had a tough time unwinding his ownership of the baseball team to meet ethics rules. he was among trump's first batch of nominees. utah republican congressman jason chaffetz is returning to the private sector. post, the house oversight committee chair said he will not run for reelection or for any office in 2018. he said his decision was not based on either health or political concerns. biggestle east's airline is reducing its number of flights to the united states. emirates says there has been a drop in demand caused by tougher u.s. security measures and