residential election to create targeted politico data. -- political data. the consumer did actually consented that at the time. ofe broadly the narrative consent is problematic. when people have to use these platforms it doesn't matter whether or not they understand. >> it is not a question of just informed consent, it is about is it proportionate to the message consumer is getting. president trump should have reported a payment to michael actress stormy daniels. under at the looks rules, the amount of the income should be reported in broad ranges. scott pruitt returned to capitol

hill to face a senate committee on several ethical allegations. abusing public trust and making a mockery of his responsibilities. they challenge prewitt on frequent taxpayer-funded first-class travel, questionable spending decisions, raises for top aides and allegations of sidelining employees. delegations republican say are a distraction and under shadow -- overshadow his policy work. populist leaders are meeting and a final push for a coalition the five, official for star party says the policy program is almost settled although there are outstanding issues that include security and immigration. of the leak parties are in final stages of talks for sharing cabinet responsibilities. no word on who will be prime minister. love news on-air and that

byk-tock on twitter powered 2700 journalists and analysts in over 120 countries. this is bloomberg. scarlet: live from bloomberg world headquarters, i'm scarlet fu. joe: i'm joe weisenthal. scarlet: 30 miss from the close of trading, modest gains for u.s. stocks and the 10 year yield. joe: what'd you miss? a question hangs over the proposed summit with president trump and kim jong-un. north korea threatened to pull out of talks. yields are near the high watermark seeing treasuries gaining steam. turkey's erdogan wants to hand in the country's monetary

policy. investors look to intervention from policymakers. president trump responding after north korea threatened to pull out of his june 7 summit. and comets is national security adviser made. fulton has invoked libya as the ministrations model for dealing with the regime. , he warned it is absurd to do their compare the dprk to libya, which had been at the initial stage of nuclear development. if the u.s. is trying to force our unilateral abandonment we will no longer be interested in such dialogue. the president addressed this during a meeting say north korea had not raised concerns directly. as for the summit president

trump told reporters we will have to see. leader of ourby a national security coverage in washington. proposing,olton was shouldn't that be negotiated in advance? >> typically that is the way these things would work out. everything about this has been atypical. instead of having mid-level negotiations, that the leaders fly in four &, this time it is the reverse. there has been not a time of groundwork laid. there have been gestures of goodwill. the release of the hostages. commitments to sign a peace treaty. unknown andils are being worked out even as the white house and south korea and north korea continue to keep up their plans for the summit. joe: it is interesting that

there is this limit 80 -- libya example, given the fate that caps off he met -- does the example of libya create problems for any country that we are trying to convince to give up nuclear weapons? .> it does within the rarefied word -- world of arms control experts, they are talking about a nation and voluntarily -- that voluntarily give up weapons of mass distraction. when you talk about the other 99% of humanity they think about their leader getting essentially tortured in a secluded in the streets of his own country. , thecularly kim jong-un unelected head of north korea, will not look at libya as a

favorite model for anything. there is reason to look at it. there is a technical reason why people think it is a success. when you look at its leader and what happened to the chaos that engulfed the coulter -- no one looks at the and sees a lot of of a politicales agreement and the success that should follow. scarlet: if you don't go with the libya model is there another model? i would have said iran. is notiran nuclear deal something the trump administration is going to bring up. >> right. it would be the other one. it was much more complex agreement than what libya entered into. it would have provided a bit of a model. i think it will build a model for what happens in north korea. to gete is an agreement

rid of north korea's nuclear weapons program those inspectors who the administration has criticized as being unable to do the job in iran, those are going to be the people called upon to go to pyongyang and scour the , forry for nuclear weapons radioactive material, for secret labs. is for the rest of the world, outside of the united states, that is seen as the best model of a modern arms control agreement. joe: to be clear, as of this moment the white house is planning on that singapore meeting? >> absolutely. they are trying not to be too thrown off by the last 24 hours. there has been an expectation these little hurdles or road blocks might crop up more.

north korea has done several things ahead of this meeting. they let the detainees go. they have promised to reach a deal. they offer the original invitation to meet with trump. from their point of view they feel like they have made concessions. now they are starting to raise the stakes and say don't take us for granted. we are going to expect something. >> i need to turn to a bloomberg exclusive here by jennifer jacobs. who has been, antagonistic towards china, has been excluded from the china talks. he'll be meeting with the treasury secretary commode u.s. trade representative, wilbur ross as well. -- he will be meeting with the u.s.treasury secretary, trade representative, and wilbur

ross. once it is a great scoop. it is an development. at the least you see it as a fig leaf for peace offering to china ahead of thes delicate talks. one of the most antagonistic people in our administration towards free trade with china is not going to be there despite the fact that he has a top job and would normally play a key role in these discussions. the are looking to minimize conflict that could come out of this meeting. it is a sign they would like to have success from this visit. jacobs spokeifer with two administration officials for this scoop. peter navarro declined to comment. thank you. these are -- he leads our -- onal

joe: it is going to kill him. since he was there the first round. the yield curve continues to flatten. this is bloomberg.

scarlet: long bonds nearing the high watermark. the 30 year yield inching towards three and a quarter percent. close to its highest level since 2015.

10 year yields, 3.1% mark as well. at its highest since 2011. brian, if you look at the charts we have taken another leg higher in the last 10 minutes. it may be linked to the news that broke not so long ago. not being in the china discussions is a good thing as far as making some progress and not offending the chinese. maybe a leg up. we are near these high levels. yesterday was not an aberration as far as the selloff. there is no huge buyer swooping him -- whooping in. joe: looking at the 30 year yield, reaching important alliance including a yellow line in purple line, what are these lines about?

>> many colored lines. one of the interesting things, around 3.2%. every singleo>> be they seem to be more well supported. >> i have an interesting question. the 10 yearlk about as opposed to the 20 year? financial links. it is a pretty big deal. the treasury market moves any time a big investor borrower issues that. >> i like that. let's go into the bloomberg. we are looking at the treasury spreads. say this but what does each one indicate?

>> it is largely the same story. when you look at the pure yield curve, it is the three-month bill, being higher than the s&p 500 versus the 10 year. and 30's, a little bit more indicative. which the long bottom doesn't move so much. we are seeing the selloff spreading to the youngest majorities -- to the longest majorities. in invertedthe past yield curve, it signals a recession would be coming. i know there's a lot of academic discussion on what an inverted yield curve means. practically speaking what does it mean to traders and businesses? right,s bad for banks they make money off of the

spread between short and long so, that is not good. with the banking sector, the whole economy has problems. weirds seem intuitively to think that if you own a 2-year note you are going to be getting more yield. it doesn't make a lot of sense intuitively. we have seen a number of fed speaker starting to talk about this specifically, it sounds like they are paying attention to whether rate hikes would invert the curve. what have they been sending? fed's,ou look at atlanta and their job. the third mandate. ont puts a lot of pressure them. isis interesting that there such a focus on it.

theyhlighted it maybe would have to start talking about it because the yield curves were near the flattest in a decade. they have been asked the question a lot. its week he has mentioned every time that he doesn't see any reason the yield curve should invert. he used as justification as why we should not raise rates so fast. presume ifould we you know how to read markets, and one who is more academically trained? >> may be i think it is interesting. we are depicted this expansion. so it makes sense the curve is flattening. i think that a lot of people on becauseare concerned usually there is a rise with the 10 year and the 30 year. now we are starting to see that.

fed speakers have been coming out and saying that. you better steepen the market. it is the open question. we have a bit of a relief steepening the pressure seems to be flattening with the fed tightening. we will have you back on to discuss further. let's get to the bloomberg business flash. try kde capital management has fallen on hard times according to people the money with the matter. middling performance. blackstone have redeem their investments. jpmorgan ceo jamie dimon says president trump did the right thing offering a lifeline to china's cte. cte crippled after the commerce department cut off access to

american suppliers. the u.s. economy has a year or two more to grow. menu macron will meet with tech ceos to talk about social responsibility. they will explore ways the sector can positively impact consumers. starting today, an additional on whole foods products for prime members. they will extend a shaun white this summer. that is your bloomberg business flash. prices are at oil multiyear highs. this is bloomberg.

joe: oil prices holding steady. investors shrugging off the ie moved to cut demand forecast for crude. you can see we are at the highest level since 2014. studio,now in the energy and commodities for us, great to have you here in new york. tell us about this incredible rally we have seen pushing around a.d.. that?re the pillars of opec, we are talking saudi arabia. they decided to cut production. that is a lot for standard.

venezuela, they collapse over the last 18 months. the global economy is doing well. now you have the geopolitical environment in iran. >> quantify that demand increase. there is a fair amount. voluntary and involuntary. we may increase oil demand 1.1 million barrels today. every two years we are increasing demand what used to take three years. where is that demand coming from? >> it is still coming from china. seeing, the we are strongest amand. softer demands for gasoline.

the demand for pratt -- the demand for plastic is strong. that is driving the market. to need a lot of support produce that amount of plastic. demand, they did warn that we are getting to the point in oil prices where we might see demand the structure. toi was in london, i went the pump to fill up the car. it was not something i have shopped for in three to four years. that was expected. delhi, in brazil and many emerging countries. it is going to be painful. there he important change in the oil market for consumers.

a lot of subsidies have been removed. to theme transmission pump is a lot more direct. joe: if we are enduring that tipping point, higher prices destroy demand the what does that say for the comfort level of saudi arabia to keep seeing it increase? >> saudi's want prices around $80. you just have to be painful to consumers but not that painful. hotel.ike a they want to charge the room to a point where the hotel might be 19 but -- 90% occupied. saudi arabia is close to that price. they need to continue nextng that oil for the 50-60 years. they are not going to destroy the market. iran, how big of a deal is

that? >> a lot bigger deal than we were thinking. they are getting more and more nervous. they are getting this, they are not going to be able to buy a lot of iranian crude. joe: great stuff. thank you. i love the hotel analogy. catch hobby year to him -- javier again tomorrow. tackling trends in the commodity world. the market closes next. looking for games for u.s. equities. checking on oil now up by a quarter of 1%. 3/10y stocks as a group by of 1% in line with the s&p. from new york, this is bloomberg. bloomberg. mom you called?

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yields are rising great the 10 year yield are approaching 3.1%. julia is on assignment and if you are tuning in live on twitter, we want to welcome you to our coverage. with market minutes. we are looking at gains for u.s. stocks. it looks like we are resuming an upturn. >> a quieter day than we are used to. >> there's plenty to talk about .hat it comes to the drama before theannot act

thursday board meeting that he is planning to hold. he is blocked at least until thursday. it had been lower already. season.ill earning the sign there the department store is exceeding with its offerings. well.k mention as ae russell 2000 closing at record high. thank you to clifford for pointing that out. >> let's take a look at the government bond market. it continues to put pressure today.

3.1%.r yields hitting today, a little bit return bond.opean sovereign the potential formation of a government in italy may include unnerving investors. we don't want to hear anything about renegotiating the debt. a brief yield, that might carry over. i'm glad you bring up what is happening in europe because that is happening -- having effects on the euro. the euro is now at its lowest point this year. there is political uncertainty,

but the final also confirming a slowdown there. also, we have to mention what is going on in turkey. made a new record low. see a reversal after turkey central banks were monitoring markets and taking necessary steps under the currency. if you look over the three month taked, he says he plans to more responsibility of monetary policy. the -- the lira is the second worst performing market currency after the argentinian

peso. investors say they will need to raise interest rates because of double-digit inflation. of a development. down hair. it just keeps going up. those are today's marketplaces. >> for more, let's bring in rob barnett. market bubbleck -- i point that out because the we are seeing

bubble behavior most notably a wrong -- among tech stocks. the thing about bubbles, they longer, sod continue the first thing we did is find what a bubble is. people use that without any definition and we think it is important to have a record definition. broad -- others

would say they would never be booked to identify one in real-time. bubble,now we are in a can you make money with that knowledge? >> the short answer is yes, absolutely. going to step further, you can identify when you are in a bubble. there will people who identified the tech bubble, but again, you need a definition if you want to identify a bubble. our definition is simple and that is it is difficult to frame a set of fundamental forecasts for companies that would justify current valuation.

the assumptions would have to be extremely aggressive in the second part is the great majority of owners own because they expect the rates to go up and be able to sell to someone at a higher price without having any clear thoughts as to the evaluation value -- of the company. that would hold true for tesla, netflix, and the list goes on for a lot of companies in the tech sector. >> how do you profit off the fact we are in a bubble? do you do short socks? >> as you point out, that is fairly risky because your losses are limited. example.take tesla's rate of about $3

billion per year and has to turn to the markets to get that cash just to stay in business. if it is headed to zero, maybe it would be five dollars per share. the example we use in the papal hyperinflation, but not at the very end of it. there wasn't a week. youhich they felt tenfold just lost 49 times or money. that is incredible. six weeks later, the currency tumbled and the stock market went to zero. you would have been right, but you would have been wiped out. assets. underweight the

don't hold them if you are not .oo sure about tracking >> villa -- the lesson is don't try to be a hero and make the , justst trait of all time towise investing .heoretically beat the market lot of viewers have read the books the big short in one of the subtext is

some of the folks who made those profit -- profited handsomely. arnott, thank you so much. participatent to when things are elevated. some breaking news. fourth-quarter revenue, this is the outlook and also looking at increase. this misses the average estimate, so that might be like -- why you're looking at a drop.

topline bottom line and the estimates. the adjusted revenue beating analysts. that is less than what analysts are looking for. a ton of interest in all these video game companies because none of them are fortnight and that is what everyone is playing. from new york, this is bloomberg. ♪

♪ >> right -- peter navarro

reportedly has been excluded from tomorrow's high-level talks with china's top economic envoy. they will me instead with treasury secretary steve mnuchin . book and say lately he behaves erratically and unprofessionally. russia launched an air campaign on behalf of president bashar al-assad in 2015. they have use submarines to launch target syria.

he told the un security council tracethat recent events when he calls a troubled directory of intense confrontations over syria. the graduates of the virginia military institute today, has taken a veiled shot at president trump. mention thed not president by name, but alluded criticizingcies by those who ignore long-standing allies.

global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. >> james bullard, president of the federal reserve is worried the central bank to tighten into recession. >> i think you would have to see upside beyond what is actually , sog forecast right now people are already forecasting inflation slightly above target. stronger than expected growth, above and beyond what we are already expecting.

i will think that is all that likely. >> jay powell gave a speech .ooking at emerging markets -- ty much the argument telegraphed. they can handle this. you look at indonesia and looking at turkey having to raise rates. what you think of that? -- what the you think of that? -- what do you think of that? new.is is not really this is an issue that has been around for the last six or seven years. be the the story has to

charge of the policy of the united states. sure they would like to have more influence, but we have to run monetary policy for the u.s.. countries outt of there. we can't do everything for everybody. >> yield curve flattening is on your list, there are concerns of volatility in emerging markets, particularly with oil prices rising. that the fedrned

is entering a dangerous zone? >> i guess my main point would fed wasdea has been the , that out of position anything we did was inching our way back to an ordinary situation so you didn't have to think about reacting to the data. now, we are well-off. the balance sheet is shrinking. you have to take into account much more carefully and you know exactly what is happening in the economy. you can't say we will be on politics so far. we would be reacting as it comes

in. >> hikes too much and we get pushed into a recession. .we overdo it and don't react i think the committee will be this. awful of there's no reason we have to err on one side or the other. >> do you think the market is they will be for total rate idea thatot >> the you are naming rate hikes is something we should get out of the business of doing.

the st.was president of louis fed. this is bloomberg.

>> we look at some technical chart. >> thank you. of ime is walter zimmerman cap tech analysis. we going to take a look at. -- we are going to take a look. you have a great long-term chart, a pattern i happen to

love that suggests we could see a big spike. fromis is the live board 1989. in terms of a classical analysis, you have a bullish falling. downtrend were the lines would be her, these are converging. it is a big oldish -- bullish pattern. troop confirmation, you would probably want to see back over that. what you looking for here?

is -- typically you correct one of those. it will get you to some lofty true this would be an early warning signal taking out this. pattern ofger have a the highest highs and the lowest lows. oil.t's take a look at >> these are the funds. they are in the long position. the first thing that strikes you is this pile of speculative isgth, but the other thing it peaked back on january 23 of

this year. $66 and $.66. this has been making lower highs even as they continue to make higher highs. theink it means not even bulls trust this because it is highly unusual that funds would not be adding into the new highs. you have to wonder, what are they doing? on january 23 where that is it peaked -- where that is where it peaked? there's a very good reason why they should be looking at the stock market. >> let's talk about the stock market. the last time you joined us come at brought up the idea of a tax

bubble. update us on our view. this is january 26. every previous stock market bubble, the dow peaked first and then the nasdaq peak later -- peaked later. time. been a long i think the connection to crude lost its value during the asian financial crisis. >> it sounds like you are bearish and cautious on both stocks. thank you. game.next, the waiting investors grow impatient.

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mark: i am mark crumpton with first word news. the senate has voted to reverse legislation to reverse the fcc's effort to deregulate the internet. fccvote follows the repealed back in december of net neutrality rules that ensured equal treatment for all web traffic. free republicans joined with democrats in voting to appeal the rule scheduled to go into effect next month and now heads to the republican-controlled house, where lawmakers are unlikely to support the effort. renewed tensions between israel and turkey are escalating. the situation took a turn for the worse following the deadly violence along the israeli-gaza border.

a day after expelling the israeli ambassador, ankara has asked israel's consul general in istanbul to leave. israel summoned a top turkish diplomat to be reprimanded for what it called the harsh treatment of its ambassador. the exchanges came less than two years after the countries reconciled and exchanged ambassadors after six years of animosity. guatemala opened its new embassy in jerusalem today. it is the second country to do so after the u.s.. what amal is president dedicated --guatemala's embassy president dedicated the embassy just two days after the transfer of the american embassy from tel aviv. the central american nation was the second country after the u.s. to recognize israel 70 years ago. the arab league says members were preparing a plan in response to the latest situation in the palestinian territories and israel. assistant secretary-general for the arab league would counter

the latest decisions taken by the u.s. or any other country that plans to move its embassy to jerusalem. the statement came after a meeting in cairo to discuss the killing of palestinian protesters by israeli forces at the gaza border. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> let's get a recap of market action, modest gains for u.s. stocks. for the russell 2000, a record high for the small-cap benchmark. we should mention that the 10 toward 3.1is moving percent, so we continue to see that selloff in treasuries. >> pretty impressive on the small caps. for theeen a rough week turkish lira, the currency dropping to a record low before

rebounding as the turkish central bank vowed to take necessary steps. for the first time since he came to power 15 years ago, investors are not so enthusiastic about the prospect of an erdogan reelection. we welcome the founder of crim stone strategic macro from london. i think we have lost the guest? yet,et: he is not ready but i'm glad to take to full screen came up earlier. take two tumbling in after-hours trading. take two's fourth-quarter revenue outlook misses the analyst estimate. or the revenue that was reported misses the average estimate and the outlook trails the consensus estimate. no fortnight. joe: we have michael harris now of crim stone strategic macro from london. thanks for joining us. what is the message the market is sending right now with

regards to turkey, this pretty vicious selloff in the lira? >> i think the simplicity is there has been something unsustainable in turkey for quite a while. there has been a lot of stimulus, the current account deficit rising. the central bank has rates that are relatively high but not high enough to protect the currency, and now we see a period of dollar strength and everyone looks for the weaker links. turkey clearly seems to be one of the weaker links out there. scarlet: interpret what it means when turkish president erdogan says he will take more responsibility for monetary policy. does that mean he is going to prevent the central bank from raising interest rates, which would be one way of stemming inflation? and closing some of the current account deficit? >> i would keep in mind, he has been saying this for a long time. this is probably the first time he so clearly said it to the

international investment audience. it is questionable as to why he decided to do that. this has been his mantra locally for a long time, because he thinks it plays well. we need to keep in mind that he has been hyper focused on securing the executive presidency since 2014. does not dominate turkey nearly as much as the external audience perceives. that he is gimme going to win the election. he probably well. but there is an element of nervousness, and a lot of the communication and policies that have been disturbing the market for quite some time are driven by that simple math of him thinking about the need to win this election on june 24, because this is what he has been fighting for for the last four years, five years. if he loses, there is no plan b. joe: in theory, historically

some of his comments about central bank independence have not been welcomed by investors. on the other hand, they like the stability of his role. what is the ideal outcome for the international investment community from this election? >> i think you sort of set it in the sense that stability is important. we will get stability no matter who wins because they have empowered the president, this newly elected president will have effectively almost all the constitutional power. and so regardless of who wins, i think we will get stability. the question is, though, will we get the reforms and positive moves? it is a little tougher when someone has been around for 16 years for the markets and believe in an emerging-market reform story just because the same person has won an election. there is brand damage in turkey. it will take time for the market to appreciate that, but i think the one simple message is

erdogan, if he wins, his timeframe will suddenly explode to five years. the next election will not be for five years, whereas constantly since the get the protests, corruption allegations, general election, , shooting down a jet, migrant crisis, incredibly volatile political cycle in turkey since 2013. this should come to an end. from thes or someone opposition wins, which is a possibility because erdogan does not have a definitive lock on population, and that is the threshold he needs, unlike the lower threshold for the prime minister ship. he is nervous. turkey should not be growing nearly as aggressively as it is. all things said, the likelihood policy more pragmatic

once the election is through is significant. we still need to see if he is willing to make those choices. bank decides the central is not independent -- which i don't think he will do -- for what it is worth, he has always been behind the scenes whenever the markets have been punishing turkey, and the central bank has needed the hike. it is rare that decision was made without him being involved. scarlet: the election on june 24, what happens until then? it is rare for him to state explicitly that he will take more control of monetary policy. would we expect him to make more announcements like that to make sure he cements the likelihood that he does get reelected? >> i think what we need to worry about is if he feels like the polls are not showing he has a strong enough position, the policy volatility could be enormous. ,his was a bit of a known goal because i don't appreciate there

is a lot of domestic voting mileage by telling the international domestic community this, because it has been in negative form. the currency hit has been noticed in turkey. he could do things my nationalistic and geopolitical perspective, picking fights with neighbors and the international community, or taking the view that i'm not going to raise rates to defend the currency, i'm going to attack speculators, because on a six week view there might be more votes than there would be in common policy. the next period before the june 24 election, i can say with confidence that there is no policy clarity, because every decision will be driven by votes and not calming the market. scarlet: michael harris, founder of crim stone strategic macro, joining us from london. thank you for giving us your perspective. coming up, the supreme court opened the floodgates for sports betting and everybody is looking to cash in. but why team honors like mark

cuban might not be getting as big a return as they expect. this is bloomberg. ♪

scarlet: the supreme court ruled states can legalize sports gambling and everyone is eager to cash in, including professional team owners. mark cuban think that everyone who owns a major sports franchise just saw their value double. but our next guest is not as optimistic.

we welcome a bloomberg opinion columnist. you point to the fact that a lot of teams in the english premiership league, you can gamble on those and the values have not skyrocketed. >> it has not made any difference. the premier league is a very successful, profitable league, but it is not because of gambling. it is because people are crazy about soccer and they are the one the in the world that can sell television rights to china, india, sri lanka, brazil, anywhere in the world. by the way, i did not put this in my column, but racing has not exactly been -- horse racing, you know, you got the kentucky derby and everybody else loses money. joe: in your column, you deconstruct several of the points that people make. one of the theories is that people will just watch more sports on tv if they can bet on it. you are skeptical of that. >> extremely skeptical. we already have fantasy football that has fantasy and

definitely caused people to watch four quarters instead of shutting it off, because they want to see if they beat the spread. as what you have not seen that stuff has risen, you have not seen an increase in the number of people watching sports. theare seeing a decrease in number of people watching sports that has been going on for three or four years. espn losing 16 million or 70 million subscribers in the last four years. arest do not -- people who in favor -- who think this will be a windfall for professional sports, they have this vision that everybody in america just wants to gamble. there definitely are people who want to gamble, but i don't think the whole country is going to race to their television to place bets on sports games. scarlet: is mark cuban wrong and that the valuation of sports franchises will grow? you have david tepper buying the

carolina panthers. people are paying a lot of money for these franchises. >> they are, but it has nothing to do with gambling. it has to do with them being a rich guy who wants a prestigious, status team. it is fun to own a team -- most of the time. you should ask howard schultz about the seattle supersonics. they love it. it puts them at the center of everything, makes them heroic in their hometowns, but has nothing to do with gambling. joe: another theoretical way that gambling could boost the value of sports teams is if the league's were to get a cut of the revenue. by your measure, you said that would be very small. >> i did not really say this in the column, but i would be very skeptical if the states and even federal government give the leagues a cut of it. the leagues are going to want a cut, but anything the league gets is something the state does not get. states are going to taxpayers

20%, 25%. this will make up a huge portion of their budget. the second thing is, once you start steering money to the league, what happens the first time you have a scandal? what happens when a referee gets caught throwing a game or throwing the point spread to make money? there will be congressional hearings about the money that the teams are getting. it is going to be a mess. scarlet: i hate to go back to the english premier league, but those teams don't get a cut, do they? >> they don't. they are calling it the integrity fee. no, they don't. what they do get -- let's acknowledge this -- 50% of the teams in the premier league have a gambling company logo on their jersey. that's something that will almost surely happen in the u.s. over the next four or five years , but i don't know how much money it would bring. joe: you are saying maybe it

could be a few million per team. >> i don't think it will be a gigantic sum of money. it is not that professional sports teams won't get any money bad it ising, it is going -- it is that it is going to be relatively minor. it is not going to be a game changer the way they are hoping. scarlet: let's switch gears a little bit. how does this further or change the debate over whether to play -- pay college athletes? >> i think one of the things that is going to happen is that the federal government and state will be encouraged to pass a law that will put amateur sports outside the gambling. for instance, you don't want anybody gambling on high school games, read? once you say that, you go, what about college games? obviously people gamble illegally on college games now, but i sincerely doubt that that will be allowed. scarlet: march madness will still not be legal, the

gambling? >> i would be very surprised if march madness is gambling. even the brackets are illegal right now, although nobody calls you on it. scarlet: joe nocera, thank you so much. joe: coming up, it is one for the record books. at christie's. the details on that jaw-dropping auction for this rare artwork, next. this is bloomberg. ♪

scarlet: christie's setting new record prices during its impressionist and modern art auction, thanks to works by malevich and bring to see -- and

brancusi. katia.o see you, let's talk about this brancusi painting, which has set records in the past. this time it sold for $85.8 million? >> that's right, it rose in price considerably. that was a record for the artist, who is very important in russian of an guard -- russian avant guarde. two records, the other one for brancusi's culture. people who bought it actually paid $5,000 for it in 1955. when i calculated the return, it was over one point 4,000,000% -- percent.million joe: pretty incredible. what about -- what is it about

this painting with the blocks and rectangles, the malevich, that holds such an appeal for buyers? >> just in historical context. it was one of the first abstract canvases. is very popular, but back then, people were pacing -- painting landscapes and still lives and portraits, and malevich broke it down to basic geometric forms, very radical at the time. scarlet: you write about how the auctioneer made a difference. he was charming and authoritative. does that make that much of a difference? >> you really have to have control over the room, inspire people to bid. you have to be funny, you have to be authoritarian. he did a great job. he is a fairly new auctioneer at the big evening sales and did a great job. mentioned obviously that the painting had sold before and is worth a lot more.

are there indexes against which paintings are attractive, so we can say stocks go up over time but still might underperform in the overall market? have the paintings beat the overall? >> the paintings indices? this one certainly did. you can compare to stx. brancusi,ure by definitely did. we areng here is that seeing it this season, there are so many great collections on the block. the rockefeller collection sold for over $800 million last week. this week there are a lot of estates. we are seeing that these great collections, you buy early, you pay relatively not so much, and then you hold. 5 decades, your return can be astronomical. but now people like to trade and it is a different mentality, so it is interesting to see how art does overtime against the

indices. scarlet: there was supposed to be a sale of some picasso's by steve wynn, but that ended up in cold -- ended up being pulled because of damage to the artwork? >> big drama. friday, something happens. it was a big secret. le, we don'to know exactly. that is picasso's self-portrait from the 1940's, estimated at $70 billion and there was a lot of excitement about it. all of a sudden, it is withdrawn. and there is another painting withdrawn. the irony is that steve when had another picasso that was also for sale, a beautiful woman, picasso's lover at the time, and he purchased it and when i got damaged, he ended up selling it for more. he seems to be having really bad

karma with picassos. scarlet: that, this year in general. joe: not something you have to worry about if you are investing in stock. scarlet: thank you so much, great talking to you. "what'd you miss?" the etf industry has something for anyone, including millennials who will be driving trends for years to come. of course there is an etf targeting their buying power. >> the global millennials dramatic etf trades under the sitting kicker mi ln. exposed trex company is to spending categories relevant to the millennial generation, those born between 1980 and 2000. it is based on consumer spending data, consumer behavior, technology, and demographics. miln is weighted heavily in the internet and retail sectors. it includes amazon, intuit, facebook, netflix, nike,

starbucks, and home depot. the fund has $80 million in assets and has returned almost 40% since launching two years ago, outperforming the broader market by 5% things to a big overweight in netflix. miln gets a green light in the bloomberg intelligence traffic system because what you see is what you get. joe: coming up, what you need to know for tomorrow's trading day. this is bloomberg. ♪ ♪

scarlet: a modest gain in u.s. stocks and the 10 year yield of 3.1%. coming up, walmart reports first-quarter results before the bell tomorrow. joe: and economic data. i will be watching u.s. jobless claims at 8:30 a.m. tomorrow. scarlet: bloomberg technology is up next. joe: have a great evening. ♪ retail.

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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. hyde,ne: i am caroline this is bloomberg technology, live from boston, showcasing the innovation, diversity, and power of the regional tech economy. coming up, boston has become a standout city for testing self driving cars and we are at rides indoor track getting a look behind the scenes.