report and hinted he would with drawl from it. germany, and france have lobbied mr. trump to remain in the deal but the french president said after his meeting last month he expects the u.s. to exit the deal. totesters gathered outside rally against the trump administration's move to end fororary protected status tens of thousands of hondurans who lived in the u.s. for two decades. 57,000 hondurans are covered under the program. they have until january 5 to sort out their affairs before returning home or to normalize their status and other ways such as marriage or sponsorship. the european union will investigate crimes committed against ethnic serbs during kosovo's war for independence. they agree to set up a

prosecutor's office in 2015. the war for independence ended with a 78 day nato air campaign in june of 1999. nato's commander for southern europe says russia is moving into the eastern mediterranean. russia is using the syrian civil war to increase his presence in syria. >> president putin has taken advantage of that. in by assad.d assad was desperate. the people didn't like it. he is under incredible pressure. >> the chemical weapons facilities in syria attacked by a nato ally on april 14 were in areas under the eyes or oversight of russian forces.

global news 24 hours a day, powered by more than 2700 journalists and analysts in 120 countries. this is bloomberg. ilia: live in new york, thi am julia chesley. scarlet: i'm scarlet fu. joe: stocks and oil losing ground. julia: the president tweets he will announce a decision on the iranian deal tomorrow. scarlet: what'd you miss? the waiting game is over. president trump will get verdict on the iranian nuclear deal tomorrow. the oil rally takes a breather following his surprise announcement.

crude takes a leg lower. the next round of negotiations begin today in washington. the clock is ticking to get an agreement before lawmakers turned their attention to midterms. limbo over the nuclear deal ins tomorrow. president trump tweeting i will be announcing my decision on the iran deal tomorrow from the white house. crude oil took a leg lower on the news pushing past $70 a barrel for the first time in three years earlier in the session. joining us, david. great to have you with us. i can understand about the news flow, that oil would be under pressure. why is oil soft? is it taking the uncertainty out? >> there were a few headlines.

the u.s. and european negotiators may be close to a deal that would allow them to change the nuclear deal but not completely scrap it. the question is where are we? is the u.s. walking away? a lot of the market has rallied on that fear. you start to see people selling off. scarlet: you have venezuela as a factor. this is something bank of america merrill lynch with think is a bigger factor. >> that is the new new news. clean andtrying to arbitration award attaching assets that they have not had in venezuela but in other areas. whether they can do that, whether this stands up to further challenges remains to be seen but the prospect of losing

supply is booting the market or it did. joe: with regards to iran what is the range of supply outcome that could come about the decisions? how much are we talking about that could affect the market depending on what donald trump and his counterparts the side? we have seen estimates of half a million barrels a day that could be lost to the market. that would be significant. that is the worst case scenario. below that you have situations where there is a renegotiated deal. maybe you do not lose as much. joe: we are focusing a lot on the geopolitical headlines.

whether it is toronto or venezuela. stuffis also the macro and the rally that has been going on for six months. when you talked oil traders how much are they focused on the day today? that has kept demand projections strong. adding iran and venezuela on top of that is the cherry on the icing on the cake. there has been a lot of momentum behind the rally because of that. we also have opec

meetings on june 22. we were talking but the prospect of different voices. , saying heexpect sees and $80 oil price by summer. at what point do we see even noisier noises coming from opec to push the price back down? >> we saw iran coming in and saying we think oil is where it is at right now. ,he feeling from saudi arabia they want it even higher than that. said wei oil minister have not reach what we need to do yet. metrics, they no longer really apply.

we are looking to where we are thesetable satisfied with deals. >> it is open to interpretation. how do you think opec or sonnet -- saudi arabia the fines that? nice, buts talk is that is what a cynic thinks. scarlet: a line in the sand. >> those things have that as well. all things oil this monday. coming up, struggling with the cost of goods and materials. next what ityou means for earnings for the rest of 2018.

joe: tim joins us now, a professor at the university of oregon. the bloomberg opinion columnist. thank you. we are not done with earnings season but definitely one of the big themes you note is rising cost pressure and an inability of companies to pass them on. what do you make of the current conditions? wei was pointing out that see a lot of measures of prices rising. from the isam and people worry this will translate into higher inflation. i tend to see relationship where

that linkage is actually quite week. prior manufacturing has to show up somewhere else. they are going to show up somewhere else in weaker mergers or forcing them to push forward with more work on productivity. >> why doesn't the inflation that we see on the corporate side, whether it is labor, commodities, necessarily translate into higher prices? be deep seems to psychology of low price inflation now. it is running strong among the public. firms are having a hard time passing on to consumers. that is a factor. firms have to look for other places. one place is inefficiency.

another could be suppressing wage gains. wage growth for the last couple of months is still weak. that could be the case as well. ofimately there is the issue corporate margins, could they go lower? joe: does the fed care? if it is not really translating into consumer inflation, is that the inflation that is not going to spur a faster pace of monetary tightening? >> that is exactly right. the fed is going to be watching these prices when wage costs are concerned for signs the economy is overheating. they are going to be cautious about reacting given that link to inflation is weak and

inflation expectations are in this environment. what they are going to be expecting at this point is overshooting. i do not think they are going to overreact to resource prices. they have may be done that in the past. i do not know if they are happy with being hawkish. given the rise of oil prices. wearing that would translate. i don't that they want to do a repeat of those concerns. their focus is on the inflation number at this point. how far can they push the economy before inflation starts to emerge? thatwas going to ask about precrisis when oil was surging and the economy was about to

fall off of a cliff. people were talking about inflation. how much do you think that has centralark in terms of bankers around the world not wanting to repeat that mistake? we have learned inflation expectations were much stickier then maybe we thought. prior to this last cycle there thestill a lingering fear 1970's were around the corner and if you let inflation get out of hand, the end was near. that does not seem to be the concern so much anymore. that reflects the flat yield curve, the inability of inflation to push dramatically higher despite years of low interest rates.

so i do think you need to see something more on the inflation front to get them nervous. joe: i want to ask you about that. some, it is a source of anxiety. but there is a benign story you could a company with a flattening yield curve. what is your interpretation? have had passed curve cycles, the flattens. this cycle has been no different. we have seen the curves steadily flatten for years now. i do not get worried about that. i think it is likely to happen.

rates getrm interest to their longer-term level, and bring up toward that longer-term level, you have a nicer equilibrium where you are probably stable. as long as the fed can maintain that environment, still reacting to negative shocks like we saw. .r hiking interest rates may that neutral rates are coming up. higher,art to unhinge then we could have stories about where policy should go. the harder point of policy is when we do flatten the yield curve. policymakers are going to have to make a decision do they keep trying to press forward or do they back off and see how the economy evolves?

joe: thank you very much. >> thank you. julia: time for the bloomberg business flash. his holdingas cut an american international group. the insurer was absent from a list of icon enterprises during a presentation held last week. valued the highest market of any company holdings. he criticized them for not meeting profitability targets. the koch brothers are betting on the clouds. by anave been led investment in a startup in the cloud computing sector. the rounding fund, funding round , $25 million. the plan is to use tech to manage big data.

apple could break through the $1 trillion mark before the end of the week. companyets most viable are bringing the market cap to just under $921 billion. the stock rallied last week after sales slashed estimates the latest quarter. asia-pacific facing china's plan to reduce financial services group is legit. she does not see tensions easing soon. she spoke exclusively to bloomberg today. >> we only would expect a trade war to actually happen but we do expect friction to continue. be one of theto most important issues facing the global economy.

julia: bloomberg is live in beijing. speaking to jamie dimon. that is your bloomberg business flash. >> we are watching international flavors and fragrances. shares are lower on news the company agreed to buy an israeli company. abigail doolittle joins us now. there has been a rush of deal making. >> in terms of their products we do not actually know them but they are in everything we eat. israel, they are best known for natural flavorings, especially alfalfa. iff is trying to move into that space. that is the trend. these companies are two of the biggest companies. now, this would be the number two player.

,f we hop into the bloomberg not surprisingly, 52% of fragrances and flavors. operating margins, flavors are more. muchwe don't know is how are the natural products? that is what they are going after. size, itms of relative is expected today. , we arerms of valuation looking at the equivalent of 106 dollars. that is according to the statement. it does have to be approved. the largest shareholder own 36%. they have been saying a have been considering a deal. i would like to return to iff. we have a beautiful uptrend.

today, starting to break. you can see this using the g tv function. longer-term this is out of the way. perhaps the strategy to go more to the natural products will continue over the long-term. >> entirely new stock. international flavors and fragrances. >> coming up, emerging markets flying. into the year. not so much now. this is bloomberg.

misset: what'd you question mark stocks extending friday's gain, losing some momentum. on friday the s&p 500 rose the most in almost four weeks. it wasn't enough to finish the week higher. down.ished this is the second straight week

in which the index is stuck in neutral. with the bulk of earnings behind us, 83% of members have reported. the question now is what will be the catalyst for the next leg of this market? president trump pronouncements could be the trigger here as it has been today. but stocks are going nowhere fast. s&p 500 is down. the technology sector as well, they are back to the proportion of the index. interesting to see if that comes from the text once again. , emergingto this year markets have outpaced developed market equities. then we saw pressure right and center. cameron pointed out reasons to be cautious. the first is the emerging market

yield premium. that significantly drop. if we look back, this is five-year treasuries. even a year ago that was around three percentage points. seen tightening of that premium in 2018. now have a look at what is going on as far as the earnings yields. you get a great pickup but look at the premium you get over local currency? you can see what the lowest level we have over the last several years. it is less than we have seen. a final point of caution. what about the u.s. dollar. you are looking at the relationship on the offset you can see.

don't worry, a bit of a pullback. still opportunity here. the market closes next three take a look at the major indexes. we are holding onto gains in the u.s. stocks. ins in the u.s. stocks. .

♪ >> they find index is high --

the fang index high. i am julia chatterley. scarlet: i am scarlet fu. >> imed joe weisenthal in san francisco. welcome to the closing bell coverage everyday from 4:00 to 5:00 eastern. scarlet: the market minute, u.s. stocks opened higher, extending friday advances and then they lost steam this afternoon after the president said he will be making his announcement, his decision tomorrow at 2:00 p.m. on the iranian nuclear deal. we finished higher but not by a lot. witht the level as earlier the s&p 500 earlier gaining as much as 8/10 of 1%. if you look at the movement in the major averages, i will pull it up on my bloomberg. 2:45ecline came at around

or so when the announcement came from the president that he would tell everyone what his intention would be. more lows before we climbed out of the whole towards the close. thea: nice having uncertainty taken out of the market but risks for investors. scarlet: we do not know what the decision will be. he is known to change his mind at the last minute. earlier come energy was leading the way and oil pricing's -- notes about $70 but energy the best performer, it was the tech group, up 8/10 of 1% with energy losing momentum and only gaining 2/10 of 1% on the day. surging most since 2016 after elliott management bid to acquire the medical company. $160 per share, executives failed to correct operational issues, they gained to $146 and

change. international flavors, abigail doolittle said it jumped to a russia dealmaking and agreed to buy an israeli company for $7.1 billion in debt. gramercy property trust, blackstone, which owns the biggest real estate private equity fund has agreed to buy the company and raising its warehouse wager in doubling down on investor real estate, buying the real estate investment trust or 2750 in cash. joe: let's look at the government bond market. there is nothing to say, no major macro data today. no movement in the two-year and 10 year. julia: let's move onto currency land. the dollar started off rallying against almost all g10 currencies with the cost coming in the form of the euro-dollar

and we see the euro hit fresh lows, $1.19, a bit higher than we were. sterling is gaining, that was strongest performing currency, very much trading, u.k. investors -- closed for a bank holiday today. we had swiss cpi coming in lower than estimates. a quick snap shot from friday to today of what is going on as far as em currencies, i have talked enough about the weakness, but that gives you a broader snapshot of the losses relative to the u.s. dollar, just the colombian peso and the burglary 11. gaining versus the dollar in the session. joe: let's look at the commodities. oil had briefly broken above $70 earlier.

as we talked about, on the news of the donald trump iran decision coming tomorrow, it sold off a bit and finished below $70, gold not moving, lumber futures up $10. lumber is on an incredible tear. it can only move by $10 for the future each time. incredible rally for lumber. a longer-term look at the price of oil. we can see how it is about to eclipse at $70 level for the first time since late 2014. a lot of specific anxiety about venezuela, iran. with much bigger picture supply and demand, opec stuff has been in place of the middle of 2017. the big picture is that we are in a rally. those are the market minutes. scarlet: joining us is jack -- from boynton beach, lord of weird -- boynton beach,

florida. geopolitics having an overbearing influence on markets and you could say we saw evidence of that today with the president's tweet that he will be making his decision on the iranian nuclear deal tomorrow at 2:00 p.m., causing a pullback in u.s. equities. is that a foreshadowing of what will happen if he does decide to pull the u.s. out? >> i think so. i think investors are taking an exaggerated view of some of the geopolitical things going on. deal we expecte he will pull out of will impact oil prices. i am not sure it will impact other large caps in the u.s.. certainly, european stocks, a different matter. it will have a bigger impact on markets then perhaps the underlying fundamentals would suggest. prospectst about the

on the ongoing negotiations with nafta? do you expect in the coming weeks the nafta agreement agreed in principle and how does that translate to your expectations with china for you are more cautious? >> we are sanguine on nafta. as the president has refined his views, they matured with understanding trade somewhat, his focus now i think is single-mindedly on china. i think there are terms and conditions that could be approved, perhaps, in nafta. i do not think the president will rip up nafta and walk away from it the way he described it during the campaign. i think we will reach a nafta agreement. that will be good news for canadian dollar, good news for the mexican peso, and for u.s. automakers. i do think the risk lies with china. -- i dowe are likely to

not want to say likely, less than 50% but more than what other investors believe, headed to a showdown and perhaps a trade war with china. we want to position for that. joe: let's talk about a big theme of the year, the rise in rates, we have seen a pullback at the long end, 2.95, cannibal be 3% level, nonetheless, you say fair value on the 10 year is high as 4%. how do you get to that number? fallout onuld be the other asset classes we have a significant repricing? >> two ways i get added, terry -- very similar results, nominal gdp, prior to then bernanke's experiment with quantitative easing, historically, the 10 year treasury tended to track nominal

gdp, real gdp plus inflation and right now nominal gdp is over 4%. that would suggest other things equal, which they are not, the 10 year treasury should track for handle -- the four handle. the other way we look at it, we look at the earnings yield, just the reciprocal of the p/e ratio of the s&p 500, and compare that with the 10 year triple b bond yield. both of those yields tended to go on top of one another, because the triple b bond yields was a funding cost for most of the s&p 500. aboutle be bond yields 1.1 or 1.2% too low relative to the earnings yield. both ways of looking at it with very similar conclusions. scarlet: if you say intermediate-term interest rates are a risk, what do your clients make of 3%? a line in the sand for them?

do they do anything based on is getting to and staying at 3%? balance.keeping us off all other things being equal, i would love to own this equity market as we enjoy 20% earnings growth. we have 70% of companies meeting on top line. the problem is that there has been this tug-of-war going on between stocks and bonds, historically, over the last 10 years, bonds have had one armed tied behind their back. what i believe is going on is the 10 year treasury is tied -- heather to the european central bank -- tethered to the european central bank, and if the european central banks walks away from its quantitative easing program as they promised in the fourth quarter, that is likely to push the 10 year treasury yield higher, and will likely put headwinds downward pressure on equities as we try to rebalance between stocks and bonds. right now, i will invest in

--cks long-term, but i think i would like to see a little more clarity on what the european central bank will do before i start committing capital into stocks at a real big way. julia: mario draghi has said that there is no hurry as far as the retracing of qe, with some of the growth something we have seen spillover from the first quarter of this year. what do you think is going on with emerging markets? a month ago, people were saying consistency -- consistently that emerging markets can be with monetary policy, this time different, fundamentals remain strong and in recent weeks, people pulling back risk from the region. what do you think is going on and what will provide greater opportunity perhaps to get involved? marketsnk that emerging is an extension of risk-taking and moving out on the baedeker.

-- baedeker. higher interest rates at home and aversion to risk-taking, or i should say, a more palatable yield from risk aversion will likely put a damper on emerging markets. the other thing that is a concern going back to what we talked about with this potential trade war, keep in mind that china represents more than one quarter of the emerging-market index. anything that could create issues or uncertainties around china will in fact that index. long-term, it is cheap, cheap relative to other markets. if you are willing to tighten your seat belt and hold on, emerging markets will play out. julia: thank you for that. jack ablin, thank you. coming up, they trump effect, voters head to the polls in 40 states tomorrow and the

president is urging voters in west virginia not to support don blankenship. the full story is next. this is bloomberg. ♪

♪ >> i am mark crumpton with first word news. before and ministers of france and germany say they will continue to up hold the nuclear agreement with iran regardless of what the u.s. does. in a news conference in berlin, the french top diplomat and his german counterpart said their countries are committed to maintaining. president trump said today he will reveal his decision on whether to keep the u.s. in the landmark accord tomorrow. bloomberg television and radio will have live coverage of the remarks tuesday at 2:00 p.m. washington time.

the trump administration has sanctioned three more venezuelans and 20 companies under their control for a narcotics trafficking. in addition to the dozens of current and former venezuelan officials the u.s. has already targeted. the list includes economic sanctions at a time when venezuela 60 refinance it huge international debt. the president pence made announcement during a speech at the organization of american states. a man accused of killing four people at a tennessee waffle house last month will undergo a mental health evaluation before going to court. the judge in nashville granted a request by the defendant's lawyer that he get an outpatient evaluation before moving forward with court proceedings. he faces multiple charges in the april 22 shooting, including four counts of criminal homicide your latoya cantrell has taken the oath of office as mayor of new orleans, the first woman to

hold the post in the city's 300 years history. in her speech, she stressed the need for new orleans residents to work together to solve challenges. louisiana's three largest cities, baton rouge, and freeport, all have black female democrats as their leaders. global news 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. julia: voters head to the poll tomorrow, totates, vote in congressional elections in primary races to determine who is on the ballot come november. republicans are racing against history will democrats are focusing on carving out enough wins to get back in the majority. national political reporter is in washington with the leader -- with more. the president pushed us towards

west virginia with a tweet over the weekend telling people to vote for either candidate, just not one. talk us through what happened and why he thinks it is important. >> president trump getting involved in the west virginia primary, urging voters not to support don blankenship, a fairly controversial former colbert and who served jail time and said inflammatory and racist attacks against mitch mcconnell, the syndicate -- the senate republican majority leader's wife, elaine chao, this is us republicans fear a top like a chip victory, internal polling leaked by republicans that show blankenship has been surging in the final days and if he wins, republicans think it will be another alabama as the president suggested where they nominated an alleged child molester who lost in the general election to a democrat in a very red state. joe: a few weeks ago, don blankenship was in third place in polls and he came out with a

cocaine mitch at and -- add and people started talking about him, was it these inflammatory ads? outsider,unning as an antiestablishment candidate. he is echoing a lot of the americats rhetoric of first and saying fake news. attitude, aoutsider burn it down attitude is very appealing to republican voters in this day and age and some parallels. and perfect, to president trump's campaign when he was seen at the -- as the outsider taking on the establishment and blankenship is trying to do that. the fear among republicans is that he is far too damaged to win in november. scarlet: west virginia only one state holding a primary with indiana, north carolina, and ohio holding their primary tomorrow. what will you be watching out for, what is most interesting? >> indiana, there is a three-way

contested republican primary between two u.s. congressmen and one former state representative. there are a couple of interesting things, it is a very fierce and bitter fight. the candidates are slinging all sorts of attacks from personal attacks at each other. and this is a contest over who is trupier, who support -- trumpier, who supports the president more, some having a make america great hat, the other one said he should have a nobel prize, this is a state president trump one by 19 points. where he got his vice presidential candidate. scarlet: thank you for that wrap up. breaking news, according to regulatory filings by snap their cfo is stepping down, effective

on may 15 and will be replaced by someone from amazon. if you look at their shares, moving higher on this announcement in after-hours trader -- trading, up 1.6%. coming up, paul singer making his move as elliott management $6.5 billion bid for athena health, sending shares soaring. we have the details ahead. this is bloomberg. ♪

scarlet: a shakeup continues in the health care industry with an all management making cash offer to buy athena health for just under $6.5 billion. if you look at the shares of the health platform, they surged on the news and they climbed over

17% over the past two days. let's bring in our drew armstrong. elliott management said executives at athena health have failed to post a host of operational issues, what are they concerned about? >> specifically, everything. [laughter] the letter starts off very polite and welcoming. it goes through a biblical level post of difficulties they see the company having managed to engage itself in. everything from failure to do cost-cutting fast enough, screwing up guidance, not making their forecasts. operational issues and executive turnover. jonathan bush, wonderful man with great vision but does he screw things up. i have it on my screen. it goes on and on and on. julia: $100 million worth of cost cuts separated the ceo and

the president and the chairman functions, jeffrey immelt was brought in as the german -- chairman. you can see reasons for caution but why now? what are they trying to achieve? elliott'slook at history, they have had 9% stake for a wild and they say they have made this approach privately in the past. one of the things we seek when a big shareholder gets involved or an activist it's involved, oftentimes there is an effort to work things out in a polite and civilized fashion. in a boardroom somewhere. when things are not moving fast enough for the person with the stake, they want to see more action and put out a letter like this with hope of attracting more support. today, some folks are in agreement with what elliott is proposing. at least they like the idea of a , let's do everything private and get our payday and be done with it.

we see that time and time again with m&a situations. scarlet: talk with other shareholders and are they -- have you talked with other shareholders and on the -- are they on board with elliott? >> jonathan bush was speaking today, our reporter grabbed him and asked him what will you do? he says he needs to talk to their board. we do not know response from the company other than they are considering it. something interesting in the letter, the fact that elliott says, we would be willing to pay one -- 160 per share. this is the start of the public process and there will be more actions. a lot of investor interest. they made an offer and that they were willing to negotiate. it does seem like there is upside for athena at 160. scarlet: in the past, they have made an -- julia: we have seen them make an offer like this and

someone else bought the company, they have alluded they are trying to flesh out interest. >> anytime you put a company in play like this, you have to ask if there is somebody else out there. other folks can look at athena health and make the same judgment, this is a situation where you have operational issues, stock has gotten battered around. you have problems with guidance. there is short-term quarter things they are not taking care of. makesa private acquirer sense or a strategic back and folded inside and make those problems less prominent while they bring their expertise to bear. this will be the start of a process no matter what the outcome is with elliott and a group of private equity firms or some other buyer. julia: any response from athena health? >> not other than they are considering it. scarlet: go back to jeffrey immelt, is he going to put his imprint on this company? >> he may not have the chance.

scarlet: the company wants him to do something, right? athena health brought him in for a reason. what will be his role? >> they talked about his management expertise when he came in. it was abouts -- separating the chairman and ceo roles and bringing stability to the management team. there have been five different cfos in the last couple of years . a degree of turnover that has happened at this company. -- that is not how you run an organization. julia: a shift in january when elliott management was distressed at the prospect of jeffrey immelt coming in here -- coming in. julia: thank you for that. dealg up, the nafta trade u.s.,ake or break week as canadian, mexican officials try to resolve an impasse in key areas of the deal.

we will have the latest from new york. this is bloomberg. ♪ mom, dad, can we talk?

sure. what's up, son? i can't be your it guy anymore. what? you guys have xfinity. you can do this. what's a good wifi password, mom? you still have to visit us. i will. no. make that the password: "you_stillóhave_toóvisit_us." that's a good one. seems a bit long, but okay... set a memorable wifi password with xfinity my account. one more way comcast is working to fit into your life, not the other way around. we use our phones the same way these days. so why do we pay to have a phone connected when we're already paying for internet? shouldn't it all just be one thing? that's why xfinity mobile comes with your internet. you can get up to 5 lines of talk and text included at no extra cost. so all you pay for is data. choose by the gig or unlimited.

and see how you could save $400 or more a year. xfinity mobile. it's a new kind of network designed to save you money. click, call, or visit an xfinity store today. ♪ >> i am mark crumpton with first word news. president trump has tweeted his decision on the iran deal will be announced tuesday at 2:00 p.m. washington time. the president has frequently criticized the nuclear accord and handed he will withdraw from the agreement. germany, france, and the u.k. have lobbied donald trump to remain in the deal. the french president said after his meeting with president trump last month, he expects the u.s. to exit the deal appeared bloomberg television and radio will have live coverage of the president's remarks tomorrow at 2:00 p.m. washington time. the national rifle association has named oliver north as its next president.

this follows their annual meeting in dallas over the weekend. oliver north is a retired marine corps officer whose convictions and the late 1980's iran-contra affair were overturned. he is an author and a conservative commentator on fox news and will resign to take the new role within a few weeks. their current president is stepping down to devote more time to his firearms business. police in savannah, georgia have released 911 calls made moments after a large military airplane crashed last week. motorists describe the aircraft plunging nose first into a state highway. one caller tells emergency operator that it just fell out of the sky and on fire. the military c-130 hercules cargo plane crashed on wednesday on a highway near savanna killing 9 a.m. and from the puerto rico national guard. the military is -- nine people from the puerto rican national

guard. the military is investigating. of a possible compromise emerge in the train schedule with union leaders talks in paris with the french prime ministers with discussions of amendments to reform national train carrier with strikes resuming in the evening through thursday morning. strikes are planned through the end of june. global news 24 hours a day, on air and at tic toc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. julia: let's get the market action today. scarlet: let's get the market action today. gains were more robust earlier. energy shares were at one point the best performers because of the move higher in oil prices

but after the president said he would announced his decision tomorrow on the iranian nuclear oil we saw energy and prices come down and energy stocks go down and take ended up the biggest gainer. level cabinet negotiations in the three nafta nations agreed to meet in washington this week to attempt to break through on the trade deal. it promises to not be easy. here to talk about the state of global trade is mickey kantor, a former trade representatives involved in nafta in 19 in a four and the former u.s. commerce secretary. he joins us from los angeles. thank you for joining us. >> how are you? julia: i am great. you have a lot of experience and tackling these kinds of negotiations. there are underlying issues, whether the rules of origin from auto production, what is your some on the probability of kind of preliminary deal being reached in the next couple of weeks? >> when you are not in the room

it is difficult to tell. these are tough issues. the rules of origin for instance have to do with our auto industry. the north american auto industry is in great shape. integrated totally. when you play for the rules of origin, you disrupt that important industry. you look at sunset clause, if you've and that after five years, it makes no sense, why would anyone sign the agreement knowing that in five years it could be over? it is a difficult negotiation. there will have to be compromised. it has to be win-win. good agreements are not good if both sides do not win. we saw softening from the administration from its initial demands, whether giving up perhaps on the sunset clause, or a decrease in the initial rules of origin requirements. points ofhe starting the negotiations to where they

are now, how do you assess this administration's approach to negotiations? >> there is a lot of bluster out of the white house. a lot of threats out of the white house. a good jobr has been and been doing a professional job with a realistic manner. that is the way it will end up. of thethe rhetoric out white house would stop and allow the negotiators to come up with an agreement with all three countries living with and continuing to progress. nafta was a success, not perfect, needing updating and changes. for instance, on the dispute settlement mechanism, it needs to be tougher and we need to enforce these trade agreements. i would hope the negotiators give and take with the three allies, the three countries important to us, it is a common market and needs to be treated as such. julia: back to what you said

about it being crazy to try to hold onto this concept of five-year sunset clause, it dies if you do not renegotiate. why would, reportedly robert lighthizer clinging onto this, why would he do that? >> maybe he believes it, i do not know, i have not talked to him about this. -- all three countries, as they try to abide by the agreement over the next five itrs, it would mean that would disrupt, it would be a certain, it would hurt business in north america, it is not a good thing. maybe it is only being used for negotiating purposes and leverage. then maybe that makes sense. i have never thought that using something like that for leverage works because the other side knows what you are doing and understand what you are trying to accomplish. scarlet: it seems like a lot of what the uss put out there as the man's could be used for negotiations -- the u.s. has put

out there as demands could be used for negotiations, when the u.s. remake -- things there cannot be compromise on? >> i would like for them to take the labor agreements which we instituted in 1993, never been done before in a trade agreement, and environmental and labor provision, i would like to see the update it and strengthen it. that will level the playing field between the u.s. and mexico and be a good thing. we should stop talking about ands and the sunset clauses talk about the real issues we face like environment and labor issues. scarlet: robert lighthizer was one of the five principles who went to beijing last week to negotiate in beijing along with the commerce secretary and treasury secretary and peter navarro. the administration is getting distracted by china and not able to tie up loosens with nafta -- loose ends with nafta? >> you have to walk into gum at

the same time. china is critical. we are in a duopoly between the u.s. and china and we need to work out his agreements with china. the chinese are playing fast and loose with some trading rules. particularly with protecting intellectual property and forced technology agreements. we need to get the chinese to change. but we need to open up to china and look at -- should we look at the asian interest -- infrastructure banks and how we deal with china and other ways? the u.s. and china need to learn to work together. we are the two most powerful nations on the face of the earth. china is not a distraction, it is real and important, but so is nafta. joe: the people in the corporate roles you talk to, how concerned are they about nafta? has it improved since three or six months ago when it felt like there was a lot more talk about

the talks falling through? >> they are very concerned. it affects their business. nafta has been a success to a great degree but not perfect. the people in the corporate world live with trying to build their business every day. they do not want uncertainty. what is happened over the last few months is the creation of uncertainty and even chaos. but, over the last few weeks, it has been quite. the white house has not been attacking mexico and canada and the nafta agreement like they did before. , if we pullworried out of the iranian agreement, the nuclear agreement with iran, what that will mean for the iran, what that will mean for the nafta negotiations. mexico and canada will look at it and say, when can we rely on the u.s.? scarlet: that will be a question. mickey kantor, former u.s. trade representative and u.s. commerce secretary, thank you. larry robbins, ceo of glenview

capital discusses why he stands by his health care holding. a programming note, our exclusive interview with jamie dimon they will join us live from the jpmorgan global china subject -- summit in beijing at 9:00 p.m. eastern only on bloomberg. ♪

scarlet: a medical billing company has value but that should not stop tenet healthcare from selling it. that is what larry robbins of glenview capital management said . he spoke to vonnie quinn earlier today. >> we are proud to have been an engaged owner and tenet healthcare and had two people join the board in early 2016 who stepped away in the third quarter of 2017.

it pursued an agenda of new leadership that has now embraced with a change of ceo in the fall of 2017. the stock has more than doubled, adding 1.7 billion dollars in market value since the management change. we believe the best days for tenet healthcare are ahead as the agenda that the team are leaving is a simple and logical agenda to improve patient satisfaction with a focus on quality including time management and quality, not just earnings-per-share. it involves better capital allocation and cost-cutting. we believe there is another round of cost-cutting. they are looking at development on core assets including their conifer business and we expect an update in the next three months. >> how much can tenet healthcare get for conifer? >> the market will determine that but we know that, in the short time that the team has been running tenet healthcare, they have improved the profitability projections for

conifer by 15%. the best way to achieve full and fair value for an asset is to have a credible path to run that for value independently. and offer it to a serious financial and strategic buyers. we will see that we believe tenet healthcare as a third-party revenue billing company and management company is a valuable asset but does not need to be owned by tenet healthcare. all of their customers have been attracted to other hospitals on the belief it is not core to running a hospital if you need to do the revenue cycle management. theou have not talked about stock in four years and have owned it for 5.5 years. a huge amount of debt. -- initiated a proxy action in february of this year and put it on the website, our views, we say we did not wanted to be a campaign to distract momentum from the current management team but one of the ability for shareholders between

annual meetings to have some say in voice. the company's board heard the quest from ourselves and shareholders with a special meeting provision. we have not talked publicly on television about tenet healthcare, and frankly we are a little disappointed that the legacy board took so long to focus their time and attention on that which is necessary to revitalize tenet healthcare. we are thrilled that there seems to be the appropriate pace of refreshment and time and attention. >> in the general area of health care, $1 billion of shire, what is there a come? >> a deal with takeda. the irony is that many companies are being bought and financed by paidnefficient by -- shire a fancy price for a company. we see that boards and management teams tend to want to accomplish that which is on a

consultant and strategic plan at any cost, rather than looking at returns on capital. in their efforts to de-lever, they -- they had every opportunity to purchase their own shares at single-digit multiples of earnings for sure. take a divot come as a smaller akeda,y -- decatur, -- t one can ask -- they will increase their own debt in order to buy shire. we think the deal is about 35%. takeda stocks come under pressure with equity to own. trading ate deal is deal prices. we think it would be confirmed and we hope to see is in. >> you spoke about the they have had a few rough sessions. buying more?

>> our philosophy is not changing and we do not comment on day-to-day. attitudesitive and our has been to add over recent weeks in those positions. some of the noise is because we expect president trump and boj to come up with try tols later that will address the rising cost of pharmaceutical prices. was the ceo of glenview capital management on bloomberg markets earlier. disney marvel superheroes have been taking the box office by storm. that is not the only thing investors want to hear about, when the company will report earnings after the bell tomorrow. we will discuss from new york. this is bloomberg. ♪

anda: superheroes screaming m&a with disney reporting fiscal second-quarter earnings after the bell tomorrow, the blockbuster marvel hits may be overshadowed as investors hunt for any mention of the media companies deals to purchase fox ss. -- fox assets. about the deal but do not want to skip over the great things that are going on. appad the espn plus launching in the second quarter and movies that have given them a boost. >> a lot of moving parts with disney and the parts are moving in the right direction. the film business is hit after hit, including what we saw last quarter and this quarter. more "star wars" to come and the theme park business turns out

double-digit growth in operating income every quarter. investors, and operational perspective this quarter will focus on espn plus and maybe early feedback from management about the uptick in feedback. gnosis grabber numbers for a while. futurer has placed the of this company on direct to consumer streaming of their content, whether disney family or espn sports, he is stake the future of the company there. investors will look for feedback. joe: the direct to consumer business, we have seen the headlines about how netflix, a fraction of disney, is close in market cap with disney. what do investors want to learn about that eventual netflix competitor from disney? >> they want to hear what

content will go on to that disney branded direct to consumer product. what movies? what original programming? and how much they will spend in terms of programming for the direct good consumer offering -- direct consumer offering? are these new businesses, will they be profitable? how long will it take the company to reach profitability? in order to know that, how much will they invest in programming and how much will they charge to every subscriber every month? early feedback, we may get espn plus. willet: and what extent it make up for subscriber losses at espn. the proposed merger with 21st century fox and the purchase of those assets because comcast formalizes interest in those assets as well. a bidding war may emerge at some point. how much can they stay on this conference call tomorrow in terms of progress?

>> disney keeps everything close to the best and i do not expect management to say much directly. investors will ask many questions about this strategic future of the company to see if they can send somebody language -- since some body language from management about how critical they view the sky and fox assets and how far they want to go financially to push and how aggressive they will be? julia: what is plan b if they lose these assets? >> it is to look for more content, but not a lot of foxes. theirre ramping up investment in programming dramatically and recognize that they need to go direct to consumer. in order to do that, you can never have enough content because you are not competing against time warner and fox, in the future, they believe they are competing against google, facebook, netflix, amazon. scarlet: everyone has plenty of cash in that world.

our director of north american research, thank you. that's get to the bloomberg business flash. after sounding off last week on an earnings call and doubling down on the trash talk with investors in a series of tweets, elon musk just said $10 million on tesla. he bought $9.85 million worth of shares in his electric car company today. that is the biggest purchase since march of last year. he was already there biggest shareholder and his stake is close to 20%. japan's dictator pharmaceuticals are on the verge of its biggest acquisition ever, according to people familiar with the matter, their agreement to buy rival shire. the last offer was for $64 billion. two of the three major record labels on track to reach more than $1 billion after selling state in spotify. they went public last month and warner music group sold 75% of its stake for $400 million also the record labels sold for $750

million. spotify has been gaining subscribers but shares took a hit last week after growth sales failed to meet expectations. jay-z's legal team rushing motives for a subpoena to give him unlimited testimony in an sec probe. a potential financial reporting violation after a row down assets that pay $200 million to acquire his rock aware brand in 2007. -- they claimnt the sec wants to generate headlines from a high-profile case. that is your business flash update. scarlet: -- julia: good ha ir. ♪

♪ u.s. stocks extended advances by giving up gains after the president tweeted he will make a decision tomorrow. this, we, do not miss

host a business of equality summit that will bring together business, academic, political leaders, nonprofits, and activist do this is the -- discuss the future of society at large. julia: disney reporting their second-quarter earnings after the bell, we will bring you a breakdown. scarlet: that does it for what did you miss. julia: bloomberg technology is next. this is bloomberg. ♪

♪ emily: this is "bloomberg technology" and coming up, more questions swirl around tesla after it was a earnings call and ceo elon musk is putting contractors on notice, starting with warren buffett. and this date of streaming, the industry think brought to life and how that rivalry between spotify and apple will play out into is getting paid. and the u.s. midterm elections kick into high