companies that are cash generating represent very great growth opportunities. people want to pay for growth because that is the hard thing to come by. there is a lot to be had. you look at these stocks with 20% or 25% revenue growth for the next three years. caroline: camtek is the out performer today. our volumes are up 12% compared to the 20 day average. nasdaq was your outperform her. nasdaq 100 hitting a record high. key names like netflix leading higher. ahead of earnings out of twitter tomorrow. amazon later in the week. joe: the rebound and netflix is extraordinary. it fell after the earnings. and it was like, never mind. and it went to rallying. an indicator when you look at the nasdaq continuing to gain, nasdaq 100 at record highs. still ongoing optimism in these names. taylor: we heard so much about the growthiest of the growth.

thatu are going into deeper segment, let's get a deeper dive into the action with our market reporter starting with you, abigail. abigail: similar to you and luke, i have small caps. so does oppenheimer. look at this chart of the russell 2000 which was brought two weeks ago. area is bullish. he loves this stock market rally. he wants to see confirmation from this russell 2000. thank you for him as for the russell 2000 to break above 1600. that would give confirmation, movebig caps are on the care we have the russell 2000 below the 200 day moving average. as you are pointing out, last year it led to the downside. in august 2007. it will be critical to keep an eye on this russell 2000 as to whether it can break above the 200 day moving average or not as a broader market tell. despite today's small moves and low volume, let's look at the s&p 500 year to date.

2019 is on pace to be one of the best starts of the year ever. performanceat the of the s&p 500 january through april this year, we are within the top 10. this year's gains of over 15%, over half of those gains of the best year, that was in 1975 when the s&p 500 added 27% january through april. there are so -- still six trading days left. there is room for the s&p 500 to run and make bigger gains and earnings this week and next week. could provide the catalyst. s&p 500 within one percentage point of its all-time high. there is a possibility we could hit another record. the earnings that have come in so far have come in better than expected. romaine: one of the individual movers today i want to look at is spotify. the shares down more than 2%. this on the news that sirius xm is planning its own streaming service for eight dollars a month. remember, a week ago today, the

last monday, spotify shares fell 4%. that was on news that amazon was going to start its own streaming service through its echo device. a lot of concern about increasing cap petition for this company. buckingham research cutting its target down to 165 on the stock. this stock debuted one year ago back in april of last year at $132. right now, trading at about 2% to 3% above that price. caroline: great analysis romaine and our team. still with us, david and luke. have been talking about the outperformance of tech,. we have earnings coming thick and fast, bracing ourselves. coming in,ill be perhaps some tell in terms of the china exposure. how much are we starting to see earnings winning or losing to market expectations? luke: we are seeing on the bottom line and only on the bottom line, earnings beat expectations. when you factor that into the

irnings recession narrative, think coming into this season, we were expecting something close to 4% year-over-year with the bloomberg estimate. that is down to -3.3%. we are trending in the right direction. therestingly, to have earnings recession, you need the second quarter to play in. you have not had this q2 estimates nudged down much at all throughout this. i think it is safe to say the story has been positive when we are moving further away from that possibility of earnings and directing's. joe: we got more real estate day to day. we have holdings home reporting tomorrow which i know because i saw it on the screen. [laughter] i'm curious, this is an area that was weak in 2018. there seems to be early signs of a rebound. i'm curious if you see that changed rate picture, much lower rates, filtering through to acceleration of the housing market? david: we have had a first

quarter that is bad in terms of how the economy looks at the data. that's right. if we are at ring me -- or near a goodtes, this would be time to consider buying the home builders. i think we are going to see continued demand, if we expect they are economy to do well for the next 12-18 months, that makes sense. if the curves stay the same, you will see banks do well. that will be around mortgage origination. i don't think it is an exciting area, one could expect good earnings there as well. taylor: we talk about earnings recession, it leaves me back to the question of a fundamental versus a headline rep. when we look at the fundamentals, things like a paper we are waiting for whirlpool to come out. they have been a gauge on terrorism -- on tariffs. how much is that a factor as you look at valuations? is it the headlines, the tariff risk? that: this is a risk

people underestimate. everyone assumes that as soon as the trade deal is struck, things will be ok. i tell people that is something to watch. asst of all, immediately deals come together, the president and the administration began taking a look at europe and going back to their other trade issues which are significant. there is a whole issue of compliance. this will be a punitive thing on both sides. president trump would be relatively quick to act if he thought things were not going exactly right. it could be politically as the presidential election comes up. this issue will not go away. you should be watching the trade impact on whether it is an appliance manufacturer or commodities, it is a big deal. something we consider to be and our top two or three risks for the next several years. they are not going away. caroline: what are the other two? david: a lot of policy related things. as an example, let's look at the fed. without the fed was going to raise rates twice. as recently as a few weeks ago,

they were pricing and they were going to lower their rates twice over the course of the next 12 months. both will be incorrect. we need rates to be sanguine. market expectations. that is a second, and predominant risk. if a group comes in higher than people expect, a would be a normative for the fed to raise rates. caroline: interesting. we have u.s. gdp on friday. joe: big week for macro in that respect with the economy. speaking of the fed, we had herman cain, that will not happen. this should be important stuff, who gets nominated, but it does not feel like the drama around any of these nominations is really having much of an effect on markets. luke: there is absolutely no sign in terms of term premium all of thespread, independence of the federal reserve is being threatened to the point where you demand higher risk premium on either credit spreads. i think wall street was from the

beginning saying, it is going to be very -- they may not get nominated, we have seen that not happen. if nominated, they might not get confirmed. twoonfirmed, they are still out of many in a sea of voices that they do not have dictatorial control. it was a long series of bars to climb. this did not get out of the first gate. the fedseems like strikes again in terms of stealing our conversation. thank you to david balin and bloomberg's luke kawa. that does it for me in the closing bell. romaine bostick is stepping in next four "what'd you miss?" we will be taking a closer look at the u.s. strategy for our run -- for iran. this is bloomberg. ♪

caroline: live from bloomberg world headquarters in new york, i'm caroline hyde. joe: i'm joe weisenthal. caroline: here is a snapshot of how the u.s. stock markets closed higher. volumes were down. joe: the question is "what'd you miss?" caroline: we are going to zero p are mike pompeo wants to end trumpn oil exports, the administration no longer giving economies and -- a sanction waiver. . a guest joins us. courting controversy. elon musk has never been one to shy away from a fight. the animator goes to short-sellers. musk is taking aim at a critical supplier. panasonic. student loan debt tops $1.5 trillion last year. to eliminate down

student loan debt for millions of americans. today was the story of oil. rising to the highest level in almost six months as the u.s. announced it will not reissue more,il labor spared for kevin cirilli is standing by with one of the key policymakers for iran and the trump administration. brian we are joined by hook, the u.s. special representative for iran and a senior advisor to secretary of state mike pompeo. no more waivers. why? brian: because we need to do night i ran the revenue it needs to destabilize the middle east from all of its proxy wars. secretary pompeo announced a year ago that we are going to be going to zero imports of iranian crude oil. to take off about one .5 million barrels over the first, i would say, maybe the last 10, 11 months. now we will take off the remaining million barrels. kevin: i was struck by the

secretary pompeo earlier today providing some ambiguity in terms of whether or not there will be a push of the deadline. passede any extension may 2, or is that the absolute passed may 2, or is that the absolute deadline, or is there any grace period at all? mr. hook: there will be no renewals of any of the exceptions. mr. hook: there will be no to risk being sanctioned. to date, no country has. there are over 20 countries that used to import and are now at zero and have been there for many months. there is no hint at all that they want to run a foul of

american sanctions and we do not anticipate that with either. we're giving countries a choice. you can do business with the united states or you can import iranian crude oil. given the choice it is not a hard decision. kevin: china is a largest buyer of iranian crude oil. they have reiterated their opposition to unilateral sanctions. that was anticipated. do you have any concern about china's message in all of this or whether or not that would directly impact the oil market? mr. hook: i think china's big equity is ensuring a very steady and stable supply of oil. we have forced closely with saudi arabia. today they released a statement ensuring that they will offset any iranian darryl sutter lost. iranian crude is not an exotic crude. there is a number of countries that can supply china with its energy needs. there will not be any supply interruption as a consequence of our decision. kevin: + you are here, you said we have to wait until we see

what the decision will be. you also said you wanted to take great care because he did not want to create any type of volatility in the geopolitical oil market as a whole. why do you think the market is in better shape today, with this announcement than it was six months ago? mr. hook: because all of our forecast shows supply exceeding demand. the saudi's are going to be there to offset any losses. the united states has been increasing production. look at all of the fundamentals, they are very sound. we have a well supplied and stable oil market. if you are driven by the fundamentals, there is no reason to think this will impact the oil markets. saudi and uae and the united states are working to offset the loss. kevin: what about india? been grantedia has a waiver in the past, the second-largest importer of iranian crude oil. we are not going to be giving out anymore waivers. have any concern

that the removal of iranian crude from the market will fuel any other of a price spike? you know president trump doesn't want to see that. we will hear about it on twitter if there is a massive spike. mr. hook: i think you have seen a slight uptick today. there is a number of drivers behind that. even predate the announcement this morning. the dashboard of geopolitical risk, there are a couple of hotspots. i was not qualify them as hot. we manage these things very well. we have calibrated our national security interest, and our economic interest. we have done a good job of balancing that so far. we have taken off 1.5 million barrels of iranian crude and that has not hurt the oil markets. kevin: broader step back, now there are folks who thought this cannot be done a year in the making, it has been done. what is the next step? if the goal is to get iran to behave like a country that does not want to engage in nuclear activity, but is the next up are now that there is no more waivers granted?

mr. hook: it puts us in a better position of economic leverage. most of the regime's revenue comes from oil exports. if you want to change iran's calculus for funding all of these proxy wars around the middle east, you have to get serious about the oil. we have seen an impact. iran is having a harder time meeting of their funding commitments for hezbollah, four, has, for their shia proxies in syria. we want to make it harder for iran to execute its foreign-policy. we will continue putting pressure on this regime. we are in the early stages of this. iran has a choice, they can either start behaving like a normal nation or they can watch their economy crumble. kevin: brian hoke, i know you will come back and tell us about the next step. thank you for coming into bloomberg on a busy day. representative for iran and senior advisor to secretary of state mike pompeo, brian hook. back to you in new york. caroline: what a great

conversation, we thank you. let's get you to breaking news. guess has been on the come back. this is a company that is announcing a $215 million convertible senior note issue. they will be repurchasing up to $150 million or more of their shares outstanding. the key here is they are cutting their quarterly cash dividend from 22.5% to 11.25%. romaine: going in the opposite direction, whirlpool. they reported net sales that came in light. eps for continuing operations. the company reaffirming its outlook for free cash flow. that seems to be what investors are hanging their house on. should point out the company announcing an increase in its dividend and an additional buyback of stocks. up, tesla's plagued with trouble from shanghai to short seller. more on their big data next. this is bloomberg. ♪ this is bloomberg.

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fullne: tesla is talking self driving cars at its palo alto investor day, boasting all tesla's being built will have " the best full driving capabilities." best buy a small margin, best buy a huge margin. it is in the cars right now. all tesla's being produced right now have this computer. the otherd over from one from -- about a month ago and switched over model three about 10 days ago. all cars being produced have the -- have all of the hardware necessary, compute and otherwise, for full self

driving. romaine: the company also grappling with other issues including a model as bursting into flames in china come a public fight between musk and his battery supplier panasonic, and tesla accusing a short seller of harassing its employees. joining us is max chafkin. what is the main takeaway hear from the autonomy event which seems to include a lot of information we knew? max: i think it is about letting investors and to some extent car buyers know that there is something ahead for tesla. if you are buying a tesla, you are not just getting this electric car, you are getting a strategy of autonomous vehicles. focuselon musk's way to on the future rather than the present which has been up and down. joe: are they really good at designing chips now? max: hard to know. these people they have brought in our huge names in the field, the machine learning guy he was speaking earlier is famous and academic circles. there is no doubt that there are

really great technical people there. i think the conventional wisdom if you talk to tech people with be google is in first place with everybody else way behind on autonomous driving technology. that is part of -- some of this is a business problem, technical problem, and others. tesla is good at the marketing side. caroline: i thought they were good at the event as well and listening to elon musk there, it sounded like a snooze fest. it was not like he was dominating in his usual way. max: early on he said something like, it is ok if we go along. we will take as many questions as we want. the idea is to present this as a very serious, very technical, almost unimpeachable a technical. this willlly, some of trickle down to the mainstream so car buyers and the quote you played is the most important quote, car buyers think, do i want to buy an audi each run when the best self driving chip is in the tesla?

this is academic until regulators get on board which could happen a decade from now. romaine: people don't necessarily buy cars based on academics. they buy it on what they think will impress their friends or what they like. we have this video that seemed to captivate the internet. some combusting in china what do we know about this? max: we don't know much. we know that tesla said they are looking into it. have not looked closely at their responses, but it looks like they are not disputing this is something that happened and happened recently. romaine: with an audi next to it. max: electric cars catching on fire, this is a thing and it has to do with the chemistry of these lithium-ion batteries. we remember from the exploding laptops, there is a chemical reaction that happens i can lead to these runaway thermal situations. they have been rare. i think there have been a dozen or so of these in the life of tesla. joe: so, just to be clear, you

mentioned elon would like people to think about the future and self driving, have cars. in the meantime, the perception is there is a still -- is there is still a demand problem? max: the depends on your point of view on demand. the number of people buying these is higher than it was a year ago which is what the bulls will say. that said, we got the car numbers a few weeks ago, they were not good. we are expecting a not great quarter this time. he feels like consumers were really buying these in big numbers to get ahead of the u.s. tax credit which it basically halved. the demand has fallen. there has been this assumption that there is an unlimited audience for these cars and that is an assumption that i think is baked into a lot of investors valuations of tesla. if that is not true, if it turns out to be that there is a point where people would rather buy a

toyota rav4, that is going to create problems. caroline: very briefly, the fallout with panasonic continuing. max: yes. elon musk basically has two levers to change the conversation. one of which is these splashy events and the other is a twitter fight. we are seeing a bit of a twitter back and forth with the ceo of panasonic. caroline: investors pleased it is not the fec this time. max, we thank you. a check on the latest business flash headlines. samsung will delay friday's scheduled release of the smartphone. the company said that the device needs further improvement. some test models suffered screen failures after only days of using. is galaxy fold on this price $2000. shares of intel fell. issued a short report on the toymaker. a seemingly dysfunctional management and the recall of a sleeper over. that it makes it hard to play with.

that is your business flash update. something that took my attention, ipo me -- ipo needs. names, tyson foods, seeking to raise at least $184 million in an ipo. excited for kind of this. i am not vegan, i don't eat this stuff. would never eat it. but i'm excited about the promise of having viable alternatives to the old veggie discs we remember from our youth. caroline: [laughter] be a hugeis going to cultural fight. -- people will be worried one day this is all there is. it is going to be enormous. caroline: it already is. apparently the key risk in the ipo document is they may not be able to call it meet anymore. meat.e: it is not

. we will talk medicare for all and all of the talks going on in washington spreading to wall street. we are talking health care ahead. this is bloomberg. ♪ re ahead. this is bloomberg. ♪ moving is hard.

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renita: let's go to first word. house speaker nancy pelosi is pushing back on democrats calling for the impeachment of president trump, even though she's as the president "engage in highly unethical and unscrupulous behavior." following the release of the mueller report, pelosi said in peach men proceedings are not the only way to uncover the fact needed for congress to hold mr. trump accountable. pelosi admits democrats do not all agree on what call they should take following the report's delays. the state department is confirming that at least four americans are among the dead in a series of the sunday bombings that rocked sri lanka. the department says those

killed, several others were injured. nearly 300 people were killed in the explosion. officials are blaming a local jihadist group. centers in egypt closed today after a third and final day of voting on constitutional amendments that would allow president abdo to remain in office until 2030. the results are expected within a week. the referendum is virtually guaranteed to be approved as the government pushed to grant its legitimacy. erdogan issident facing a rare sign of rebellion within the governing party. his former allies are attacking his leadership following a shock deterioration in the economy, and stinging losses in local elections last month. it was once his hand-picked successor at the helm of the ruling party. the party must face the reality

as decreasing public support due to what it called eric and policy. -- called arrogant policy. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. health care debates in washington, bleeding into markets as medicare for all fears send the s&p 500 index spiraling to its worst week since december last week. there may be signs of healing as opportunities begin to open up for bargain hunters. our next guest is -- says it is a dominant narrative. let's welcome analyst michael new show. thank you very much. this seems so distant still. so much has to happen for radical overhaul. we know how difficult it is for anything to get past, even something much less ambitious than medicare for all. how concerned should investors

be, and was the type of selling we have seen over the last few weeks overdone? achael: we really saw and -- confluence of factors. it was panic selling. it was not increasing the probability of this happening. having aars away from real debate were something like this could be passed. investors don't think the probability has changed. to, 1% or 2%ed across-the-board why have we seen a significant selloff? macroctor in terms of the backdrop is you saw a very strong shift from defensive into cyclicals. that was a confluence with the political headlines we see. that, comes down with people looking for answers and increases the fear. it is fear of the fear. we knew this debate was coming for at least a year or more. the question was when is it going to matter and should it matter? and is the fear of the fear,

particularly in the health insurer stocks, a group that has outperformed for multiple years, it has been the source of the alpha for a lot of books. they are asking the question, should i care more about medicare for all or not? what they are worried about is the other guy worried or not? it is fear of the fear that has driven this. it is not the market priced in the probability that has changed. romaine: we focused a lot on the medicare for all actual proposal. there is a broader debate about health care costs that seems to be picking up steam. theclearly have not just on left liberal side, but even the right-wing circles a clear acknowledgment that something needs to be done. and something seems to involve the government. michael: right. you look in washington, there is a debate between the pricing and coverage side. medicare for all is focus on the coverage side. no medicare for all is an umbrella term for the democratic side where it comes from wanting universal coverage. and there are steps to doing that.

also, controlling cost is something that is more bipartisan, particularly on drug pricing. we are seeing it more on the provider side with legislation on balance billing. the ground has shifted on drug pricing. that is where you see there is a higher chance of actual change in the near term versus complete government control. caroline: were you surprised by ceos starting to weigh in? like united health care that seemed to capitalize the fear that you have executives looking point blank at medicare for all and deciding to take it on. michael: i think they can't ignore it at this point. the stocks have moved. they have to make the record chief. it will be highly disruptive to the system, if you moved everybody into a medicare plan. and you paid medicare rates, it would be highly disruptive to the provider side. commercial insurance reimburses higher rates and subsidizes the rest of the system. ritika: you mentioned health insurance -- joe: you mentioned health insurance companies have

outperformed. they are under fire from the left but also from the right in stillnse that there are court challenges to obamacare and the model could be ripped up. we don't really know if trump were to be a reelected, with republican senate, they may take another whack at it through the ritual that -- the legislative route. whether it is medicare for all unlikely, is it 10 years from now, five, could you imagine the current health-care system in the u.s. looks like it does or is there a good chance that somehow, whatever it is, is different? michael: i don't think it is complete status quo. it is like how fast and dramatic steps we will take. there is broad support in the democratic party for universal coverage. if you look at the legislation that the house democrats have actually started to put through committee, they are talking about stabilization of the obamacare exchanges, increasing subsidies, maybe you can get a buy enough medicare that is optional.

there are incremental steps where you could have the government paying for more but it is not like wholesale disruption or forcing people to change plans if they do not want to. romaine: if you are an investor trying to figure out how to navigate this, are there parallels you can drop between what is happening now and what happened with implementation of the aca? michael: in 2008 -- i would say not only did you have uncertainty on the policy side, there was also the last time you had a downturn in the fundamentals of the health , where there was a fundamental earnings decline. you also have the financial crisis. quite right because now you have the policy risk versus the fundamental risk. what it comes down to navigating years,t potentially two it really comes down to timing the valuations. valuation is a lot better, more attractive, compensate you for taking on the risk now over the

next 12 come up with for months. caroline: do you think it might buy? michael: i would buy managed care. willing to ride out the ups and downs, i would be taking advantage of they selloffs. romaine: thank you. that is analyst mike newshel. raceemocratic presidential is heating up as elizabeth warren proposes scrapping student debt for millions in her latest plan. more on that next. this is bloomberg. ♪ this is bloomberg. ♪

caroline: time for a look at wonders trending across the bloomberg universe. terminal users are reading about the housing market, failing to decline despite an increase of

entries. buyers in urban areas in the western u.s., after a jump in mortgage rates made it more expensive to purchase costly homes. in 57 years, time the participation in the labor force of retirement age workers has cracked the 27% mark. sky high health care costs has made the concept of leaving the workforce something that senior citizens are fearing instead of desiring. a comedian hasng won the ukrainian presidency. 73% of the vote. incumbent for their economic pain, lack of progress since the revolution five years ago. the former comic says he is an ordinary man who came to break the system. we will follow these stories on the terminal, bloomberg.com and tic toc. romaine: thank you. news out of washington today from both sides of the aisle. elizabeth warren is making

headlines with her proposal to eliminate student loan debt for millions. meanwhile, president trump drops his plan to nominate herman cain to the fed. joining us is bloomberg opinion carl smith and director of policy and research, mark cuban. welcome, mark. i will start with you, specifically on the proposal from elizabeth warren. an ambitious plan. by her estimate, it will cost the country more than $1 trillion over the next decade. is there any real return on this or do you have any estimate of what the potential return on this for all of this spending is? mark: it is an ambitious proposal. it is i would say a proposal that matches the scale and scope of the problem. it is easy to forget that we went from a world in which student death was an afterthought, it was taken on by people for graduate school, middle-class families, to make ends meet to a situation where student debt is required to go to college. that happened pretty rapidly over the course of a few decades. studentequence has been

that has worked out for some people but for others it has been a ticking time broad and prevented people from moving on with their lives and getting the value of their education they thought they might get. it has been burdensome for communities of color. warren's proposal is something that is a reset on the system and says, we will return to the days when not only was public college tuition free for many people, but you do not have to borrow if you are a lower middle income student which was the goal of the system a few decades ago. joe: karo, come in here, what would be bad if the government with the stroke of a keystroke reduced everyone students about 20? carl: i think the main thing is that gives away a lot of money to people who are relatively high income. that is number one. clear two, it is not exactly where you will go with that, how that will affect people's perception of credit. market and whether credit is secured i think it also

contributes to the sense that the government is going to continually bail out people in any -- in these situations. i think it is probably -- it is an interesting proposal. i at times thought that might be the way we would have to go. i am not sure i am 100% on board, in large part because the people who will benefit our people who are already fairly upper income. colethink at least warren -- i think at least warren's hold proposal encourages money to be thrown at the problem. you see that the availability of the loans has seen the price of college go higher as colleges compete on amenities, as they have a research race that is not benefiting the students. all sorts of things have been radically increasing cost, in large parts because we have these loans we are throwing at them. get rid of the student

debt we have, but if we move to a more guaranteed funding system, it seems like we are encouraging that behavior to continue. i am not sure that is the best way to go. are steps being taken into the proposal to reduce the racial wealth gap when it comes to looking for student loans. i'm interested by the element of those who do not finish their studies and in some way get most of their student debt eradicated as well. does this help the situation or does it harm -- does it help reduce the inequality or keep it? mark: this program was specifically designed to address the racial wealth gap. it is true that people who attend college or graduate school tend to have higher incomes. the debt forgiveness plan, if you look at the language of warren's proposal today, it would provide $50,000 of debt forgiveness for people making $100,000 or below a year. it faces out for wealthier

families. it is targeted at middle-class families and those who have a lot of student debt but whose incomes are not skyhigh. nothe point of whether or this would have governments through more money at the problem, i would say one of the reasons we got to this point is that state governments disinvest a dramatically over a few decades, and certainly after the great recession and community colleges in particular were 40% of all students are at, they are not spending more than they have been on amenities then they have for the last few decades. the problem is a bottoming out of public support which has led to up to 60% of black students at community colleges have to borrow. public a reinvestment in dollars. i would say it is an investment that has been lacking over the past few years. romaine: what happened to the idea of making is either free or in radically low cost? that was proposed at the tail end of the obama administration and it never saw the light of day. are seeingnk you

some states that have acted on that after president obama proposed community college. tennessee was the first state to provide free community college in some form, and a few other states have started it. states are experimenting with the idea of free college. california has a long tradition of having free college. what happened was states did not invest with the demand for education. whereas college going used to be the province of a relatively wealthy few, you have the most diverse economically and racially generation in history wanting to go to college and states do not keep up. does, others plans plans that have been out there would bring sanders states back to the table and say we used to do this, why can't we do it for most of our generation? joe: i want to change gears and talk about the fed. the withdrawal of herman cain today. trump back on the lookout. someone who isor

both conservative and who believes that there is no reason to raise rates. that sounds like you, karl. are you in the running or would you accept a fomc position? if not you, then who out there do you think would be a good replacement? karl: i don't know if i am in the running. i would accept if it was offered. i have not heard from anybody about that, so i do not know that i am being considered. who should be considered? be -- mary on you would would go for it. i heard he does not want to take an appointment from trump. that's bad. larry lindsey is another good guy. an out there pick, one that would make a big splash who who is an sumner

a commonest and also a very famous blogger. hasink he probably certainly given the field we have now the chops to be on the fed. those are the people i would think about. joe: really appreciated. karl, thank you both for your perspective. caroline: let's get a check on the business flash headlines. sales of previously owned homes fell in march. 5.2 when annual rate of million. down 5% since february. that is the fourth decline in five months. national association of retailers forecasted it will not pick up until later this year. boeing have been lower today. the company has rejected a story alleging that its plants in color and line a is -- the new york times account shows a skewed account of the program. it said metal shavings were often left inside the jet. haveina, regulators outlined a new approval process for video games after a year of scrutiny.

more clarity for tencent and other players who have been struggling with a crackdown in the world's largest gaming market. government has been targeting gaming addiction. ghosne: -- joe: carlos threatens to underside -- underlined the self betrayal as a victim of corporate entry. that story is next on asia ahead. this is bloomberg. ♪ this is bloomberg. ♪

joe: now to asia ahead, new indictments detailing carlos ghosn redirecting money from nissan, undermining his argument that he is a victim of corporate intrigue. we will talk about this with shery ahn. osn, is thatfrom gh everything was above board. there is a new set of charges against him and they cut beside it. he has been blaming it on

nissan. that this is some corporate intrigue from a to get him out of the picture to establish that merger between mitsubishi and nissan. alliance, heat portrayed it that way. right now we are seeing that we are getting more details of what the charges are and this is related to funneling $5 million for knees onto his personal account in 2017 and 2018, through this middle east corporation. this is qualitatively different from past accusations of understating his income. or using his privilege as the head of nissan to gain some -- to throw lavish parties. there have been tons of accusations against him. this is real embezzlement. this could be huge. romaine: has he responded to this? shery: he released a statement on monday saying this was because of -- he has been going on about that. videoeady released that

statement before when he was rearrested back in april lashing out that the top brands of nissan. he is going with that narrative. caroline: do we assume the prosecutors in japan have gone on a fishing expedition? thesehey first of all saw accusations and then he came out. then they thought, we will do more digging. caneems amazing that a man so earnestly say that he is a miscarriage of justice but has really been embezzling and thought no one would ever catch wind. shery: sources tell bloomberg that this was a tactical move from prosecutors. that they already knew this in the beginning but they needed time to follow the money to see where those $5 million had gone, which corporations were involved at this point. was then arrested, detained for 108 days in november. none he was released for about a month. he said he would have a press conference and he was rearrested.

prosecutors need at that time in order to be able to establish all of these links and where the money was flowing. joe: the one thing that i have heard several times about the japanese justice system is that almost nobody ends up walking away. what do we know about the defensive legal tactics to really -- would be a tremendous beating of the odds? shery: we do not know that much about the defense because first of all, we have not heard from carlos ghosn directly. the press conference never happened. he had a video that was released. people were expecting that because he was released on bail for them a one month that he would have time to sit down with his defense team. he does not have that much access to his defense team. the little we have heard from his defense lawyers has been that it will be a focus on how much nissan already knew. that all of this was pre-approved by the leadership there and those are key questions.

i didn't anybody stop him from doing this all these years? that will be a key point. caroline: whether the ceo is doing the accounting on his own is the question. fantastic. shery, we thank you. don't miss daybreak australia and daybreak asia starting at 6 p.m. eastern. reports for first-quarter earnings. joe: i will be watching economic data numbers for u.s. new home sales for march. they are out at 10:00 a.m. eastern. romaine: don't miss this, texas instruments reports its first quarter earnings as well. caroline: that is all for "what'd you miss?" romaine: "bloomberg technology" is up next in the u.s. joe: have a great evening. this is bloomberg. ♪ ♪

♪[music] >> i'm emily in san francisco. technology."mberg tesla unveils its next generation of self-driving with c.e.o. elon musk calling it, quote, the best ship in the world. will it live up to the hype on the road? plus, samsung has delayed the its first foreheadable itstphone after reports of first screen