senate intelligence committee with bipartisan backing. she is -- has faced tough questions about the kind of harsh detention and interrogation program the spy agency ran its so-called black site after 9/11. she was chief of base of a covert detention site in thailand where terrorist suspects were waterboarded. she told law makers -- lawmakers "i would not allow the cia to undertake activity that i thought was a come even if it was technically legal." a day after announcing he was withdrawing the u.s. from the landmark iran nuclear deal, president trump had a warning for the islamic republic should it consider restarting its nuclear program. out. trump: iran will find i don't think they should do that. i would advise iran to not start the program. be severe, there will consequences. mark: meantime, iran supreme

president trump's remarks tuesday threatened both iran's people and its government. secretary of state mike pompeo's returning home from north korea with three americans who were arrested there. secretary pompeo was there to discuss the upcoming summit between president trump and kim jong-un. the president tweeted the three americans seem to be in good health. he plans to meet them when they land in joined bait it -- joint base andrews at 2:00 a.m. on thursday. thursday's president wants to bypass the next parliament to expand its powers. a bill submitted to lawmakers would give the cabinet power to issue decrees with the rule of law. it would be good until the next president is sworn in after the june 24 election. 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'm mark crumpton. this is bloomberg.

♪ julia: live from bloomberg world headquarters in new york, i'm julia chatterley. scarlet: i'm scarlet fu. joe weisenthal is on assignment. julia: we are 30 minutes from equity trading in the u.s.. energy stocks, tech stocks, leading the way. the 10 year yield back above 3%. scarlet: the question is, what'd you miss? a goodwill gesture between president trump and kim jong-un. mike pompeo flying back from north korea with three freed american prisoners. a storm a connection clouding at&t and of art is. both companies paid michael cohen's firm. an activist wants to take the wheel at tesla. why firm representing shareholders of the electric

carmaker wants to oust frieder -- three directors. julia: "what'd you miss?" three american detainees in north korea are on their way home with president trump's newly minted secretary of state, mike pompeo. there relates comes at the -- as he u.s. prepares for talks with come just -- with kim jong-un. the north korean leader and a day after trump followed through on a key campaign promise to withdraw from the iran nuclear deal. are we getting the first taste of the trump doctor and? octorine? marty shanker joins us. let's talk north. we will pivot to iran. it's important. this feels like progress. rocket man to hear. marty: i think you have to give donald trump and his foreign policy strategies some credit. or all the credit.

the adjuster by than dutch by the north koreans to release these americans clearly is a signal that they take these discussion seriously. if at the meeting between donald anmp and kim, they do reach agreement, it is a triumph at that -- of that effort. julia: we have gone from the president talking about kim jong-un as rocket man, and they have established some form of trust to get to this position. rewind to 24 hours and we have the president walking away from the iranian nuclear deal. if there is some way you can see this u.s. administration has a strategy here for, in some way, using similar kinds of leverage and behavior to change the game as far as iran is concerned? marty: i don't discern a particular strategy. let's remember that on the campaign trail, donald trump promised he is going to get out of the worst deal in history. the iran deal.

when there wasn't even a glimmer of a thought that there would be anyrth korea detente of kind. you can't say this was part of any kind of unified strategy. ultimately, it was a political decision on his part to withdraw from the deal. he made that a number one promise in his campaign. he fulfilled it. scarlet: or, is a strategy simply to be the anti-obama? to do the opposite of what president obama did? he couldn't do anything with north korea, so push hard on that with iran, undo his landmark foreign-policy achievement? marty: there are many people who think this is a result of his disdain for the obama formant -- foreign policy. there is an element of that. there were a lot of democrats who were not in favor of this iran deal either. you can't lay it all on partisan politics. i think there is some visceral emotional element to this but he

felt this was a bad deal for america, and he was going to close out. even our closest allies cannot convince them otherwise. scarlet: how does this damage our ties with france, germany, with the u.k., with the eu? is this something the leaders can work fast? they have anticipated this would be the likely outcome. they move onto the next challenge. marty: i think it would be a failure of preparation on their part. as i said, donald trump said he was going to pull out. everyone predicted he would pull out. they try to convince them otherwise. if they were not ready with a plan b, shame on them. ultimately, america is the backbone of international -- evenking, even if we if we withdrawal, they will have to figure out a relationship with america that make sense. so much of the world order depends on the u.s. and our allies working together. they will have to figure out a way. julia: stuck in the middle is collateral damage in the form of european companies that have invested over this -- over iran.

they are caught up in this 150 day period where these sanctions will be imposed or not impose depending on what happens between then and now. eu does have a way to get around to sanctions if they choose to use them for you have already got european companies coming out and alluding to what you said. that is ultimately the united states as the kingmaker here. they will not flout u.s. sanctions. marty: it was interesting that the incoming ambassador to germany tweeted yesterday that, look, all business with iran should now stop. it was almost a threat. they are taking this extremely seriously. isn if france says there still a deal, we still plan to negotiating that with u.s. sanctions looming in the background, it will be difficult. scarlet: how do you read the president's comments yesterday wouldhe iranian regime

eventually come back and want to make a deal later on? he did give them the caveat of, they will probably be angry, and to be honest, i wouldn't want to do it either. but they will eventually succumb. marty: let's not forget what brought the iranians to the negotiating table to begin with. it was a regime in disarray. extreme economic distress. they are in a similar situation right now. scarlet: the communism is in freefall. marty: it is. if there is enough pain, it may be true that at a certain point, they can make concessions that will be able to create a situation where they can re-up that agreement. it will not be tomorrow. it may not even be weeks or months. scarlet: without that closet the president as opposed to. julia: we have talked about the europeans, we should also bring in the russians and the chinese. ultimatelye down to whether or not the europeans, the chinese, and the russians can in some way continue trade and support the economy of iran to prevent them having to come

cap in hand to the united states in,say, ok, fine, we give we have to give you something else in order to renegotiate a new deal? marty: that is a possibility. the u.s. financial system that supports the payments around the world are a key element to world transactions. they will have to figure out a whole financial regimen to keep u.s. banks out of any payments. afoul to sanctions the u.s. imposes. they would have to be a unique payment system. it's possible but it would be complicated. julia: i think the foreign secretary said the ball is in the united states court. we are waiting for them to come up with other the strategy is. marty: that is what you didn't hear and donald's announcement yesterday. -- donald trump announcement. what comes next?

except sanctions. how do you get iran to do what we wanted to do? coveringwe have to be this story carefully. what do you see as a next angle to pursue? marty: i think it is what happens in iran. the internal political situation is fragile. in power now are viewed as moderates, even though some people think that is crazy. the hardliners, if they see an opening, could seize on this and exert more influence in iran, which would make the whole move counterproductive. julia: it's president rouhani in a difficult position. scarlet: thank you so much, bloomberg's chief content officer. diversity in advertising. hear how png is changing the game. we will be speaking with carolyn tastad. york, this is bloomberg. ♪

, theet: carolyn tastad president of p&g says advertisers have an obligation to address inequality and bias. she spread that idea as a featured guest at bloomberg's business of equality summit this week. jordan home and set down with her at the event and asked about what it meant to be a multicultural marketer. think about multicultural marketing as marketing for today. especially if you think about the u.s. market. it is increasingly multicultural. i grew up in our canadian organization. toronto is the most diversity of the world. it really is just being relevant today. we work to bring that into what we are doing with all of our brand things. how do we think about it in casting, and characters, in speaking, in language, inhabits we show -- in habits we show?

and including to the causes and issues we take on. >> png is massive. you guys have your footprint on a lot of things. with that platform, how can png start conversations around race and class and disability? carolyn: i think you have seen we do that through our advertising. that is really important. we do that through the voice and advertising. sometimes that voice is very much a message for our brand. sometimes that voice is a message on a topic we think is important. we did an advertisement and a campaign last summer called the talk which really spoke to the conversation that happens in african-american homes. talk has beenhat happening decade after decade after decade. in an effort to inspire people to understand and to help change

what that nature of that talk is all about. we will take on issues like that. we will really work to bring awareness to it. again, when people are educated and understand, they can have a bigger impact. we believe that. >> a lot of this i hear is about empathy and making sure people are understanding. when it comes to corporate culture being discussed, how can you move those conversations to reality? carolyn: it is an important part of corporate culture. we spend a lot of time, while we focus on our advertising on normalizing conditions and thinking about what that is, we also work internally to create a culture where every individual can be there to authentic self. elementsincludes all of diversity. people with disability. gender. lgbtq. any of this. that is an important consideration for us.

, and an aspiration to create an inclusive world. of the things we're doing a bloomberg is from gender, and especially if you think about women of color, what are we doing to help bust of myths getting in the way and holding women back from full representation throughout the organization, including up to the sea suites. we have learned a lot of that from looking at ourselves. we have created an installation that talks about these five we chose toive that take on. we contrast that with the true reality to get people to get -- to get people to think about things differently there we think that is an important consideration. >> how does p&g stay authentic when you have these conversations? carolyn: it takes effort. number one, ensuring people understand we want to create that type of it alter. -- a culture.

i think it also takes understanding and empathy to your point. we invest a lot in creating dialogue, creating opportunities for people to have conversations, to talk, to have dialogue so they can learn to understand. i believe when you get to know an individual on a personal level, when you build a relationship with them, you just connect on some basis. and that shortcut so many other conversations. is a company that for many years has been built from within. we have a lot of great personal relationships within the company. for people who have started or people we have broad and it sternly, that relationship can help build the empathy. we are very intentional at ensuring we drive that. we are intentional in driving opportunity for men to really advocate for women and champion women. we have got a very strong lgbtq community that is really

embraced by not just the community -- it's really about ensuring that people understand and are aware of what is happening. and empathy is really critically important. scarlet: that was jordyn holman's interview with carolyn tastad of p&g. julia: it is time for the bloomberg business flash. tech entrepreneurs wiped $4 billion off of the fortunes of the world's mission -- which is family. aboutcart cofounders made $1 billion each after walmart, which is controlled by the wilson family. pay $16eed to put -- billion for a 77% stake in india's largest online retailer. omar shares fell more than 3% after the deal -- walmart shares fell more than 3% after the deal was announced. california is a first aid to

make rooftop solar installations on new homes mandatory. after june 1, 2020 will be required to include systems as part of a standard adopted today by the california commission. some critics have warned the new law will drive up costs of buying new homes by around $10,000. -- a person familiar with the matter says it raised the firm gained 4% in its first fund. returnedds on average around 3/10 of 1%. meantime, edgewater disclosed short on european stocks including total and airbus, have declined 80% since february. over $4 billion. that is your bloomberg said -- bloomberg business flash update. that was a great call. scarlet: let's turn to our stock of the hour. it's having its best session following its earnings reported we are looking at trip advisor.

also the best performer in the s&p 500. julie hyman is here with the details. it is a heavily shorted stock. we have to talk about times when we see what looks like partially a short squeeze. you're talking about under 20% of the company sold short. that is something to consider when you are talking about tripadvisor. model, aty's business this point, is to sell advertising on its main site. an auction system. i got background from bloomberg intelligence. essentially, a couple of its biggest clients have been cutting the prices that they are willing to pay for those ads. hotel revenue, that is how they categorize it, fell by 5%. we have a look at -- look at this on the bloomberg. you see the decline in the hotel revenue. those are the white bars. non-hotel revenue rose by 36%. that is for things like experiences that you can book on the website. i put this in perspective,

want to switch this over to value for year-over-year change. this is the biggest part of the business. the smaller portion, the non-hotel portion, is growing more quickly. it's healthier. but it is still a smaller portion. scarlet: the optimist would say there is a lot of room to grow. julie: that is, indeed. when you look at what analysts are saying, it is a mixed bag. you are still looking at a lot of neutrals on this particular stock. say a lot of the first quarter numbers came from currency tailwinds that were helping the company and that is not necessarily something that will be sustained. the stock has had a rocky time of it. it has come down considerably over the past few years. it's bouncing off the bottom. analysts are looking at a turnaround for tripadvisor. at this point, it is still in progress. julia: what is this about guidance?

julie: guidance from the company itself. the company coming out -- did they come out with guidance? i'm looking -- looking to see. scarlet: maybe you can get a sense of evidence from priceline. business isngs different. you do the bookings for hotels on trip advisor. it is much bigger as well. it is out with earnings after the close. scarlet: julie hyman, thank you so much. coming up, with president trump pulling out of the iranian nuclear deal, oil has been in the spotlight. we have the chart you can't miss on energy related companies. this is bloomberg. ♪ ♪

scarlet: i'm scarlet fu. anticipation the president trump would pull out of the iranian nuclear deal in yesterday's announcement confirming that move has thrown the oil market for a loop. this is crude oil. on monday, it was at a four-year high. it pulled back as much as four point 4% yesterday on the announcement. -- 4.4% yesterday. $71 a barrel again. if you look at how that has impacted energy stocks, investors have piled into u.s. funds tracking oil companies. this is trading activities. it is not a percentage gain or the price or anything like that. you're looking at xo p. you did not see a similar bump for xle which is a broader spider sector etf which tracks companies. you can credit just good luck. at the end of april, he recommended investors go long.

evenwould it be reasonable to et the same for earnings? i can tell you, that appears to be how it is playing out for the smaller companies. what he isted out showing here, the russell 2000 index tracking the national federation of independent businesses actual earnings index which is the blue line here. as you can see, it has tracked well over the past decade. as far as the gauge, showing companies quarter to quarter profit growth, setting a record last month in the russell 2000. it has reached new highs for the year. sometimes, you get rewarded. scarlet: we have seen stocks do

better. the market closes next. we have come off our highs. still holding onto gains. the s&p up 9/10 of 1%.

♪ energy,tocks rising,

financials, and tech fueling the gains. scarlet: if you are tuning in live on twitter welcome you to our closing bell coverage. we begin with our market minutes with u.s. stocks rising at the open and building on gains. we closed off highs of the session but sold advances with nasdaq 1% and it out adding 184 points and s&p 500 gaining a percent as well. energy is a big driver. below the 14 still index vix volatility that's for extra bind in the session. scarlet: let's look at bikeidual names, walmart,

flipcartling stake in the ca $416 billion, and analysts on wednesday morning talk about the , adopting a cautious tone and reflecting concern it will take time for this business to turn notable. profitable. see solar stocks up, and monster beverage falling 7.5%, it when you're low and missing estimates that overshadowed strong sales and jpmorgan downgrading the stock. advances holdings a 60% as they cannot with amazon -- a as the ship tires to

amazon through sears stores. julia: and we had the tenure option that was watched closely 3%,the rate is about investors waiting to purchase, and i can tell you they have to continue waiting. 2.995 was the percentage in that year. optio and a quick look at what is going on as far as the 2 and 10 curve. fast do we have gone there and we're at that level tighter they were months ago.

bear in mind we have u.s. consumer price data in thursday's session. measure of inflation is a touch wider as we see commodities gain in the session as well. scarlet: talk about energy leading the advance in the s&p 500 on the back of gains of energy prices, while prices in particular with wti back above 71 a barrel, and you can see brent getting a left. ift. 1.40 withslightly by gold demand possibly being stronger and then gradually declining as less sanctions take effect.

took two years for iran's gold to start falling so it will get a bit of a support for a while. julia: let's look at currency land and moves we saw in energy and oil prices. you can see versus the dollar, gains in the commodity currencies in the session. itsaw the euro losing steam, would happen a gain for the common currency since may 3, but it is not the case. you look at what is going on in euro sweden, it did fall as much as 1.4% in the session and the biggest loss since august of 2015. the central bank minutes released today in the session, a dovish reading challenged by that statement and you can see relative weakness year-to-date the swedish currency.

emphasized in the session today. those are today's market minutes. scarlet: breaking news, 21st century fox results with third-quarter adjusted earnings $.51 that is two pennies shy of what analysts were looking for. over network programming $4 billion as well, and we continue to dig through these numbers, but right now the initial rate for investors is a gain where looking at what happens with 21st century fox's assets with that comcast is preparing a bid for those assets sometime in mid june after it has come within agreement with disney. joining us now is larry hatheway. great to see you. you have been writing about the

new normal era in markets. julia brought that the vix. is that the new normal? it is a far cry of where increasednd the volatility that we have seen in months offour or five this year is certainly a departure from what we enjoyed last year, so in those ways there are meaningful differences out there. julia: driving the sensitivity we see in the markets are now and sentiment perception at risk? larry: back in early february when we had wage range, where we had higher-than-expected average earnings. we had a simultaneous witness in bonds, and since then it has been troublesome.

it was a myriad of things, protectionism and populism was returning in washington. saw in 2017 deregulation were the name of the game, and there are signs that growth has disappointed in europe and emerging markets. scarlet: julia mentioned bond yields and sensitivity, are you on the site of jamie dimon to prepare for a 4% yield on the 10 year? or for now, treasury yields have paid and will be the safe haven of choice for investors? larry: in my lifetime, and i have a few gray hairs, the timing is everything. will go into fits and starts higher and we will plateau occasionally when we have a challenge to the market is in a risk reduction mode than

respond mode. the fed willitable raise rates three times this year and perhaps three here, and getting a four handle on 10 year treasuries is probably not the fed. that will beas coming will be the ecb and the bank of japan physical readiness to signal monetary policy. julia: for the man and was going on as far as bond yields in the rest of the world. larry: absolutely. we can see over the last few weeks it is beginning to power this rebound of the u.s. dollar is so white that when central banks are ready to act that story and the bond yields and resume climbing. julia: to what extent is it rallying? is the newkey here

thing that has arrived is that some of the love of their with europe ish over. love that equity or flows are dampening down, which means interest differentials are resuming their place. scarlet: and of the u.s. pulling out of the iran nuclear deal. talk aboutearnings, u.s. earnings season, we are basically done. you noted a surprise first-round results that we haven't had more of a warm reception. gains year on% year and good performance from financials and tech and energy and materials. the market has not responded all that will to it. is thesehe challenge

earnings are the best we have gotten this year and is backward looking. as people look forward, they are going to reckon with weaker growth coming and certainly with some compression of margins. everybody knows there earnings story is going to get progressively less supportive as we get through the remainder of 2018, so i think the impact is subdued. julia: how do you explain what we see with portfolios in emerging markets? we talked about this numerous ,imes, this is a great trade and now we talked about arising u.s. dollar and rates and concerns about the growth outlook particularly for one of the dominant nations. what does that mean? is the ultimate opportunity in em? down and break em currency and rates, local

currency rates markets, everybody knows that the real concern is dollar strength. there for the recovery of the u.s. dollar is rotting. much as the currency position but the overall combined carry position. there is a lot of money that went into those markets. equity side probably should hold up over time a bit better. themately we are earlier in cycle in earnings in em. is true for industrials and materials and energy, they benefit from tech and financials. it will bring people back into that emerging equity complex sooner and they can back into the emerging that complex. hatheway, thank you. scarlet: more earnings news breaking across bloomberg. this is the company formerly

known as price like reporting first-quarter results. the outlook for the second quarter, the midpoint of the range it offered missed analyst estimates and they bring that the first because the stock is falling in after-hours trade we look at the performance. belowking for an eps estimates, and the midpoint is just below. the consensus estimates in terms of first-quarter numbers, eps adjusted of $12 a share and analysts were looking at 10.71. this is bloomberg. ♪

mark: president trump nominee for cia director told the intelligence committee she doesn't believe porcher works and she would not carry out any presidential orders she thought was immoral. covertkell meant a tension site and i like work terrorist suspects were water boarded. >> i never take the cia backed and interrogation program. the cia follows the law. todaylow the law then and , i support the law and would support a change in the law, but i will tell you that i would not put cia officers at risk by asking them to undertake risky, controversial activity again. mark: plans by catalan separatists to reelect the

region's former president was blocked by spain's court, and that is his chance to be reelected as the spanish government removed them from as he was arrested in march and is fighting extradition from germany to spain. benjamin net-net who travel to moscow today to meet with president vladimir putin. the two plan to discuss military coordination following new and they areria celebrating the anniversary of a world war ii victory over the nazis and health talks at the kremlin. new volcanic fissures opened up in hawaii speak island public police to go door-to-door today to tell remaining residents to leave. to latestssures are episode of nearly a week of constant volcano activity and they are in meeting dangerous

gases and law is poured onto the streets and backyards. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. julia: michael cohen may have offered more than legal advice to his market client, president major companies and russian oligarchs tighten vladimir putin papers from special amounts of money for insight into the trump administration. editor joins us now. you on the show, let's set the scene and understand what information we have to stage and we should make a point this information comes by the legal counsel to stormy daniels, with the alleged affair with donald trump. withere was a twitter post

no advance warning of a link that the best a dropbox sites aat contain what we call suspicious activities report produced by a bank about transactions that were moving an account set up by michael cohen, and that account not only had money leads to a port start, but we know it included amounts that moved from big corporations and a russian oligarchs and there has been little expedition of what the money was intended for and where they went and how this all came together. to hundred know thousand dollars from at&t and it might be more than that, when her $50,000 from korean air space, and also a link to a russian oligarchs as well. what is the response from michael cohen's side and the trump administration? from haven't heard a lot echo:, but we know he is under investigation in new york by

prosecutors and as a comic from his lawyer mili afterwards and he has been quiet. it is possible the money came from the firm and the firm type to the oligarch is different than the other payments. the payments -- it acknowledges there is some way to get insider access to the trump administration and as remarkable because michael cohen was a part of the trump administration. there is reference of how he was parasitic person hanging onto donald donald trump and looking for a way to monetize his relationship with the president. julia: to be fair, we don't know who went to who. although they say they were , and they by cohen

ended the contract. julia: and at&t said they did no lobbying or contract work. based on the information we have, there's a lot of questions that things we don't know. have any laws been broken or does it come down to ethics? it looks bad and i will remember anything like this for a president's personal lawyer is his advice.to give visit vi money move, yet a shot company that tries to hide the origins of where the money is going to. we don't know what is promised or is given to these companies. scarlet: you know robert mueller knows about this. >> he knows about this for a long time, he is well ahead of

us. up, look ating potential breakouts with three major assets. holdings out the holdings missing analyst estimates. this is bloomberg. ♪

scarlet: they stood the u.s. dollar hitting a high yesterday and let's turn to build a little garlic weekly segment, at the dollar and other asset are looking at the dollar and other asset classes.

here is your dollar chart. louise: what is interesting to the 2011ed to hold at uptrend, and what is interesting is yet a positive divergence in the momentum on the slower low, so it gave a hint that the price could start to let. we had targets of 92 and today it went to 93 and possibly towards 94 where you run into a bit more resistance and the 94 period, which comes along this line. it gets up to 94, and it has broken the 2017 downturn, which is a positive. abigail: this is a surprise to analysts and strategists and

this chart may suggest it could go back to the 100. i wouldi don't know if predict that at this point, but the monthly momentum that is structural -- we'll see what happens when he gets to 94 and consolidates a little, it may go higher. guess this isld bearish for gold, so let's look at this chart here. louise: all caps had a difficult time trying to get to this 1365 level. keeps pulling back and has so far help this little short-term uptrend. it is important that the 1300 hold is at the uptrend. if it can't hold maybe you go to 1250 or 1200, and what is important is to get to this level and push through 1400. indexl: but if the dollar

climbs above 94 it suggest the break that could happen and you look for that support in yellow at 1200? louise: it is very possible and to think that is key about gold is a has been inverse relationship to equities. equities are doing well and gold underperforms, maybe equities turned up, we aren't sure, but today was an interesting day and not a lot of positive buying, but it is trying over and over and i suspect gold is going to continue to languish. abigail: let's bring in oil. we have a dollar strength and also oil strength. louise: that is the interesting split their. re. let me take you back here where you have a shoulders pattern there, which took two years to

form, the recognize we have a 77% decline that takes time to repair the damage. 2017, you didn't follow through on that head and shoulders, but now it is starting to lift and we have 65.70, and it is going to run into about an eight year resistance line that takes it all the way back to the support of the top. when it gets up there, encounters the downtrend that comes in around 80, and you might have a bit of a pause. abigail: long-term selling action could come in. louise, thank you so much. next, grounding holds an organized labor and why the private aviation company has dumped keep businesses.

this is bloomberg. ♪

west virginia democratic senator joe manchin says he will vote gina haspel's nomination to be cia director to the full and her nomination will lead the central intelligence committee with bipartisan support. she faced tough questions about the type of harsh tension and interrogation program the spy agency ran at black sites after 9/11. of base at a covert site in silent or terrorist suspects were water boarded. she said she would not allow the cia to undertake activity that i thought was immoral, and

illegal. boris johnson said today the u.k. has no intention of walking away from the iraq their agreement despite america's decision to pull out. >> the government regrets the decision of the u.s. and ministration to withdraw from the deal and reimposed american sanctions on iran. did our utmost to prevent this outcome from the moment president trump took office. we make the case of keeping the jcp owing at every level. boris johnson says the u.k. will abide by the agreement as august iran complies. can you government says heavyweights rates have killed at least 132 people. the floods hit as kenya was recovering from a drought and more than 200,000 people were forced out of homes. military lookup there's something the point to rescue

those left stranded. historic powershift in malaysia and opposition coalition has won the election, mohammed will become prime minister again. the way represents a transition to democracy for malaysia, which is long been defined by racial politics. market is expected to be sworn in within the next day. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: let's get today's market action with u.s. stocks gaining energy stocks leading the advance with oil up $71 a barrel. the depth yesterday was short-lived as speculation increases that supply want to but with demand.

we have 10 year yields about 3%. and a battle brewing, 500 and 50 pilots who work for flex jet, a private aviation company, are giving up whether they should don't think labor. the propose to decertify teamsters and the union is pointing the finger back at the company. here with more is kenneth ricci. explain why you believe it is time for the pilots to dump the union? kenneth: we are not an airline, i were pilots are intimately involved with passengers so we have a culture we have to permeate, and number two is we are a management team that manages by trust and we like the relationship to the direct management and employees. we have operated in that mode for many years. pallet by backup and i

relate with pilots and i can fly and walk in their shoes. julia: this union has been in existence for two years. how has life changed as a result of that two-year period, has it create tensions? kenneth: what happened was we merged two companies together and one company was unionized and one was not. my lot they have to have a vote at the vote was a narrow vote in favor of keeping the union. to years have gone by and there is not a law of change. the way the rules work is that a part of the company where pilots were outside of the contract and we are able to change the competition at will. those are the highest-paid pilots in the industry. the ones who are bound by the union are on the low compensation so there is a bit of a financial issue. scarlet: could you say if the

pilots were to decertify and not be part of the union, that they would increase? happens with cases of a union going away, you can see throughout our history, our customers are the premium customers and are the highest net worth people and we cannot fly the highest net worth people pilots.ilow paid scarlet: i'm sure you can understand pilots would have to be in a union because they need protection. talk about the distinction of being a pilot for a union at an early versus your company? kenneth: a palette of company with flight one airplay alone and be on the same airplane date and day out when he flies and crew. murdeirror

it is much more regimented, you find the same routes and you fly from cleveland to chicago and back and forth, go to more random locations in our pilots have more judgment to call when they make decisions and they need the interaction. it does work as well as a intermediary. those who are in the unit are getting paid more than those who are and it would argue that is a blatant attempt by you to break the union because you are favoring the ones that aren't unionized. how do you argue against that? kenneth: that would be true if the union that show up. those ballots were there before the union got there, so our habit to compensate pilots has been imagined because of this. something in a union hasn't hurt them in your eyes and your willingness to negotiate? kenneth: what we really want is

that we are trying to build a culture of trust. if you think about having a family and every time you want to create a trust among your family members and you couldn't because you had to go through a third-party, that is what we are striving, to get back to that culture. scarlet: i hear about building a culture of trust and there are the professors is a companies like flex to have a constitutional right to express if board views, but it pointed out that a firm can unduly influence or interfere or course employees to a vote. how you draw a line of maintaining trust and not going over the line? we as a leadership team have operated the same with or without the union. we have operated with our pilots in the exact same manner while the union was there, so this has gone on well, and that is all i would say. julia: you expect legal action if the union loses the vote?

is a big event that has never happened before and we have never decertify the pilots union that is thbig. jobs and mostine pilots unions are different in their missions, but suffice to say if we win, it will change momentum. julia: you are not getting an advantage to pilots trying to make this union and those who are in the union? there are giving those guys and unfair advantage. kenneth: we don't know who they are, decertification is that in secret and we don't know who the pilots are but we don't more than 50% of the group had to sign a petition. julia: talk about your business. i want to end on a positive note

because you are expanding all over the world. talk about what you're doing here. we begin an exclusive operator with gulfstream and we operate in international markets. the world is becoming global now would tell you that five years ago our average flight was averaging six or seven hours, and now they're averaging more distances. people are doing more global work. scarlet: i wonder with the tax overhaul if that changed anything for how your clients use private jets. kenneth: there is poses and minuses to the tax overhaul, it's early makes you want to buy airplanes more, and that is an advantage to our clients. julia: what is the downside? kenneth: the rules and relations of how to use the airplane has been tightened up. you can use the airplane when

you are not going between are in a fair safety situation. kenneth ricci, thank you very much. coming up, but the like the establishment of a government and a eurosceptic lead. details on this of offering story next. this is bloomberg. ♪

julia: a key obstacle for ending a political crisis has been removed. former italian prime minister is open to the formation of a

government i the antiestablishment five-star movement and the euro skeptic northern league. the premier has perversely a post such a tie up. now, why now, why is he willing to set aside this point and allow for the first time ever, the northern league, the upper hand? >> he was essentially squeezed into a bit of a weak position after the march for vote because while he was leading the alliance into the election, the results put him behind the league. essentiallyeader became the spokesman for that block and started talks again with the populace five-star movement in the last minute

attempt to form a government and they are putting pressure on the italian president to reach a deal by tomorrow, otherwise he is going to name a caretaker prime minister to fresh elections. julia: the five-star movement have no real understanding of what governing means and have strong views on one hand and said it will never get together with an established party, and now you are tying them with a anti-immigration right-wing party. what this policy going to look like? while they have similar policies that support strong into immigration measures, both want to roll back some of the pension reforms and labor market reforms that have been adopted by the centerleft government. the real question is who is going to lead this government?

back and taken a step they are no longer insist on becoming prime minister in this government, so it will be interesting to see who emerges as an alternative to lead this coalition of populist, which has always been labeled as a worst-case scenario for financial markets. you and i know governments don't tend to last very long in italy anyway. what are people saying about the lack of duration this coalition will stand? prospects arehe not necessarily that they are going to last five years, to let the legislature, because these are unknown quantities. before, has been there but five-star has not been there before and have based their whole campaign as an

antigovernment and antiestablishment movement. it will be interesting to see what the reaction is going to be. his endorsement of this idea, it wasn't that strong that it would not oppose and is open to backing this administration, but he is going to take a very careful look at any programs and policies that are being proposed by these two partners. you are saying we might get a technocratic leader appointed by the president? dan: it is more likely if they wrap up this deal will get a from thesendidate two political moves. data have a vote of confidence from both houses of complement if they want to get up and running. the prime minister's

statement today, it left the door open that they will abstain for the vote rather than vote in favor of this alliance. julia: is still not clear cut. dan liefgreen, thank you for joining. scarlet: up next, and activist wants tesla to raise its game and why shareholders of the company wants to oust three directors, including a brother elon musk. this is bloomberg. ♪

julia: tesla is driving off the road, ctw investment group is campaigning against the reelection of three directors, including elon musk's brother. the executive director of the

firm says the prospects will continue success on a tenuous than ever and here with more is bloomberg's done a hold, start explaining who ctw investment group are and what proportion of tesla shareholders they actually present? their work closely with pension funds and unions and the present 20 $50 billion in management overall. in terms of tesla, they are small come up there and activist shareholder group and the group that urged tesla to add two independent directors to its board a couple of years ago and they are a small but influential and do outreach to largest additional shareholders. scarlet: is a surprise they represent union pension funds, what hedge funds doing investing in tesla? because the investor base is made up of fat boys and the

skeptics and doesn't seem to have any room for anyone else -- skeptics.d pension funds have diverse portfolios and use that comes to push companies to be more aggressive in terms of corporate governance and hiring women and labor issues and safety issues. i think ctw is trapped in the project and say we have got a problem with the sport here. tesla hit anef is ipo in 2010 and the board has not evolved much beyond that. of elon largely made up musk's family and friends in the two directors at plus summer our media executives we don't have any automotive manufacturing experience. scarlet: is the failure to of off that they stressed in their letter. mentioned, they had previous success in their push

to get tesla directors. the new at the time that james murdoch and linda johnson didn't have any expense in engineering or the electric vehicle manufacturing business and he didn't seem to be an issue back then. board atare happy the it independent directors but prefer to have seen people with more expertise on the board. tesla is a massive company with 40,000 employees and incredible market cap and are not only does something that auto industry but energy markets. there's a lot of discussion of how they can benefit people with high volume and fracturing and people with utility experience as does the moves into energy. the board members are still vc's who funded the company, and the two the today added are independent have media experience.

julia: we know elon musk is a stock character and one of the things they are worried about is he wants to start a candy company. and packing about this on aside,, whatjokes sense do we get that elon musk at the port are looking at this and thinking we do need to recognize that things have moved on and we are a big company now? responded toasn't the ctw letter to my knowledge. meeting islder coming up on june 5 and my care more discussion about it then. i don't get the sense tesla is about to add another seat or change its board in any way. yet to remember when elon musk started tesla and became involved, there were so many naysayers that he highly values the loyalty of the people who

believed in him his early days, and that counts for a lot. tesla was the underdog for a long time, in the early investors stuck with him and they have been through more together. is hard to let people like that go when you have that experience. scarlet: do we know if any other investors are on board with ctw? to see if curious other investors in this campaign, there's not a lot of time because the shareholder meeting is on the fifth and ctw is the only one i am aware of. julia: thank you for that, and they also paste tesla as well for being a successful innovator within environmental mission. scarlet: it is time for the bloomberg business flash. fargo is ordered to pay $100 million to harm mortgage consultants and private beach bankers in california and back

is sued for potential wage and labor law violations after workers complain they didn't get their breaks. a judge read the money they are entitled to should be based on hourly pay and commission. china's biggest social network is planning a u.s. ipo for music streaming. people with knowledge of the matter say bank of america and goldman sachs and jpmorgan are not the banks chosen by tencent to work on the proposed deal. surpass lastk to year's volume. clash with analyst at a shareholder meeting, he did not hold back after being challenged by investors that claims they encourage nicotine addiction and he went off saying i don't think that deserves an answer and he madenother investor the science.

that is your business flash update. julia: he went off. scarlet: what you need to know for tomorrow's trading day is coming up. this is bloomberg. ♪ oomberg. ♪

scarlet: u.s. stocks driven by

energy shares as oil rose to $71 a barrel, and uber ceo speaks to brad stone at a summit in l.a. at 7:00 tonight. and the bank of england making decisions tomorrow followed by a press conference. scarlet: that does it. julia: "bloomberg technology" is next. this is bloomberg. ♪

caroline: this is "bloomberg technology." coming up, walmart's largest deal ever. the retail giant agrees to buy a 77% stake in flipkart, in an effort to ward off amazon. plus, a deal that will shake up the broadband market in europe. and uber critics. customers will hail flngax