john hyland: i'm john hyland with the first word news. richard blumenthal opened a surprise investigation on the pga and liv golf. blumenthal, chair of the senate permanent subcommittee on mergers is looking at how the newly performed -- formed entity will be run. pete buttigieg says the philadelphia i-95 collapse will cause substantial disruption in the region and is a cruel reminder of infrastructure need as a tanker truck caught fire

under the overpass in this section of the highway carries 160,000 vehicles a day. in italy, the former prime minister, silvio berlusconi, has died. he ended up being their lobbyists serving postwar prime minister but his tenure marked 56 handles and allegations of corruption but he was one of the most influential figures in italian politics in the last several decades. he was 86. bloomberg news powered by 27 hundred journalists and analysts in 120 countries. i'm john highland, this is bloomberg. katie: let's get it quick check on what's going on in the markets right now. gains on the s&p 500 are at 4/10

of 1%, so we are holding on to the bull market that we achieved last week, 20% gain from the lows we saw in october and we are actually almost back at the level that we were before the federal reserve started raising rates. we see the 10 year yield right now at three basis points, 376, 377 is the level they are. the dollar index is rising 1/10 of 1%. not a lot of movement there. oil continues to fall. wti is down 280 per barrel. jon: people dig into the crude selloffs, coming up. tech is leading the way, the usual suspects in that subgroup. discretionary stocks are doing well today.

carnival in norwegian are up notably. jp morgan out with bullish commentary. navigating where the economy goes from here. and the news that we are tracking all session long and a couple of different sectors, certainly biotech has had shares of chinook after that huge deal in novartis with a big payday. shares rallying 58% today. of course we have been watching the deal with nasdaq itself acquiring addends up from tomo bravo. i know that we do compete with adenza in providing trading risk solutions. transfixing the mining world for months, glencore looking at coal business, an alternative to the takeover bid that they had repeatedly rejected. let's bring in our metals reporter who has been tracking

every twist and turn in this one. here we are, glencore seems to be back at the table. >> the latest bid is that glencore is making an offer for just the coal business, the idea being that diet in a cash deal -- they buy it in a cash deal and love it with the existing assets and eventually spin it off into a coal company in the next 12 to 24 months. i think the key here, it had been contentious, the previous deal, the cash deal would give them the money they need to help fund their endeavors in what would potentially be the growth of their copper business. matt: this seems like an obvious plan b. they missed the copper assets. i guess they can spin off the

coal unit they want to get rid of but it appears to be a much better deal for teck, right? joe: and we don't even have the real details in terms of the cash that glencore is offering. their original deal is still on the table. it might still be early days, but at least you have something from them. they had been pretty quiet for the past month since the shareholder vote was pulled. so we are finally getting glencore back on the radar. it will be interesting to see what happens next, how these negotiations play out and it seems like for the first time we have both parties you know, acting on the same level here and at least engaging in what might be a possibility. jon: we will see what happens and obviously teck is getting

more interest in their copper business. and the aluminum market? joe: it's an interesting one, the north american conference was very bearish with a dominance in positions last month. we recently learned today that they have been taking delivery of the metal, commercial trade, effectively buying up aluminum to sell on to customers. one of the big things, though, is that the russian material they had been getting, they have not been taking delivery of. that's an interesting one given the latest numbers we saw today showing that two thirds of the metal on the lme right now is russian. katie: -- matt: thank you for joining us, joe. a lot going on around glencore, a lot of stories it's touching. joe deaux, talking to us about the potential deal.

meanwhile, oil extending losses as we pointed out after goldman sachs cut their price forecast again. we recently spoke with jeff curry about the call. >> oil, copper, the rest of these markets don't have a positive carry. you are going to drain down these inventories as much as you can. oil and copper are a liability and not an asset right now and until they become an asset, no one is going to want to hold them. matt: julia, this is really interesting. last year jeff was very bullish, thinking you would avoid recession. china reopening would be fantastic for commodities. and we have continued stimulus spending going on here. what happened? julia: this really is a sign of

oil saying that we are not going to reach the prices we expected. the chinese demand rebound was disappointing. they underpinned the note on the fact that they have seen higher supplies coming from sanctioned nations and of the more global supplies are in the market, we are not seeing the demand offset. as he said earlier, the fact that we still have macro economic headwinds with higher interest rates, that is not incentivizing people to hold onto oil, it is incentivizing them to put it the market. jon: how is that impacting those that were bullish and were maybe trying to ride it out? julia: honestly i feel like goldman sachs is one of the very last bullish people. there has been a bearish sentiment after oil couldn't rally when saudi arabia had the surprise output cuts. they were not happy that oil prices were this low and they

unexpectedly cut production by 500,000 barrels per day. even the oil markets said they had a miniature jump and then they paired them all. it's a bearish sentiment all around. for the bulls, it's not a good place to be trading. matt: julia, thank you very much, talking to us about the incredible falling price of oil. coming up, salesforce having ai strategy and other earnings are high because of ai potential. we discuss the strategies, next. this is bloomberg. ♪ you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989!

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jon: this is "bloomberg markets." time for the stock of

the hour, oil shares hitting an intraday record high with analysts boosting the firm view on the stock with ai tailwinds helping the company. they expect that oracle can grab some market share in terms of the competitive cloud computing market where it is one of the smaller players but everybody is talking ai these days and there is certainly excitement there. matt: absolutely. people want to buy ai if it is not priced too high. let's talk about that right now with our bloomberg intelligence senior technology analyst and nancy tengler, cio of laffer tangoe investments. nancy, let me start with you. it has been such an amazing phenomenon to watch in terms of the rise of nvidia. which has been unbelievable. as if it were the only ai play out there. what do you think of the action the market has seen in the last couple of weeks?

>> well i mean this is a pretty pivotal moment in technological history. it starts a new industrial revolution or technological revolution, if will. i don't think we are experiencing the kind of valuations we got in 99 in 2000. we were at earnings and cisco was trading at 120 times next year's earnings. it's not big earnings now and i think these valuations are reasonable. we don't own nvidia, it just never was cheap enough for us but we do own some of those that could be in microsoft and oracle. what do you think about the lack of breath that has been amazing, nvidia being one of the few that has really gotten universal acceptance as an ai play. are there companies i haven't seen with runaway valuations?

>> when you look at the chip side, and nvidia is one of the only ones out there but on the software side you could bucket all the major software companies around the world. microsoft, google, oracle, all of these companies will get bounce because whenever they have a very large installed base they can go out and create more ai products to enhance the productivity of the software so when it comes to software services, i think the revenue contribution is broad-based and not singular. jon: obviously, nancy, for these big companies when there is so much attention around these investments it's interesting to see these targeted investments. i heard salesforce talking about how they in many ways are doubling down with potential big

partners down the road. as an investor do you like to see that strategy? nancy: i do. i have had oracle for over 30 years in the joke in the old days was you pop the stock when olson was at the company and you sold when he went out on his adventures. he's back and forth. now we don't have the dual ceos yet. i think that what they demonstrated was that they could step in, and this is the case with all great companies. if they miss a technology they can purchase the competitor or step in with a partnership. i like the transaction. it improves internal productivity for them but they are using it to solve hr problems and allows them as you said to have another, another thing to sell when they go out in their, in their array of lawyers, they can sell this to the cloud customers and i think it only enhances the productivity.

this company has been thoughtful about it and are taking a page out of the satya nadella playbook where you build a partnership. maybe you gain market share because you have jumpstarted those that have tried to develop the technology. jon: i get the sense in part of this is based on what salesforce executives have been saying but the idea of enterprise customers being concerned about how their data is being used in an ai world, some of these offerings are very much geared just to the security of the data for their customers. anurag: that's absolutely right in and the case of oracle i would say that they have one of the biggest data footprints of any customer. frankly speaking we haven't seen the base move to the cloud at this point and that's a big opportunity for them. those customers have moved their workflows to the cloud and oracle should gain their respective share of that shift.

matt: in terms of the brats or lack thereof, nancy, do you expect the rest of the market, a broader question, expect the rest of the market to catch up to the few mega cap tech stocks that have gained forward do they need to compel -- come down to earth? jon: i don't think that they are out -- nancy: i don't think that they are out of line. we were adding to those names in the fall because we knew that the economy was slowing down in that masters would ultimately pay out for reliable growers. i think that some of this, maybe in the case of nvidia, they may have got a little bit ahead but amazon and google have room to run, trading below pandemic highs, though they have come up pretty dramatically. i do think that you want to be specific and disciplined. we own rod to come and are

getting dividend and paid to wave certification of their underlying product offerings. but i do think that you want to participate. you have to be careful if you get a pullback that any meaningful level like last fall. it was in the buy range for 20 minutes and i was occupied doing something else, so we missed it. same with tesla. that was a name that we added in january that was a part of this ai phenomenon and you just want to play all aspects and not just one. jon: thank you a lot, nancy and anurag, appreciate you both stopping by today. christian vote day is out of the hedge fund that he founded. he will bring you the latest, next. this is bloomberg. ♪

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," and our for what it's worth today is 32. that's how many years ago christian o'day founded his hedge fund business. he's been removed following reports of women. a lot of people covering that story extensively coming out of the weekend. substantial reporting on that story. matt: we should point out that these are allegations of his treatment of women that have not been proven, however these allegations have persisted for 25 years. so i think it is interesting that it takes until now for banks to pull away. possibly because what we saw happen at jp morgan, who agreed to pay $290 million to settle a lawsuit alleging they knowingly benefited from former client jeffrey epstein's sex

trafficking ring. this according to a person familiar with the matter. ava benny morrison cowrote the story and joins us now to talk about it. broadly, it looks like when we see crispin o'day now removed, a week after the removal, it shows sensitivity to these kinds of allegations. >> that's right in this case have been going on for more than seven months. it was at the end of last year that a victim of jeffrey epstein filed these court claims against jp morgan and since then there have been a lot of public disclosures about whether to keep the supply at the bank when there was all that growing publicity about the sex trafficking investigations and the looking into his sexual misconduct. executives at the bank were deposed, recently jamie dimon. pressure was building and there was a lot of public interest in the case and it seemed like a

pretty good time for both parties to come to the table and negotiate. jon: i guess in terms of the reputational risk, did that factor in as far as your reporting tells you about how they got to this point? >> i think absolutely, you had top executives at the bank being forced to face depositions, there were 10 emails there were older about compliance staff and retainers years after. notably of course there former executive brought serious questions about that behavior and relationship with jeffrey epstein. i think that would have been a real headache for the bank promote reputation and public relations standpoint and

definitely would have played into the decision-making here. jon: to clarify, are there still cases outstanding involving epstein and the banks? >> to others, the u.s. virgin islands where epstein had a private estate. jp morgan had similar claims and they have filed their own lawsuit against jes staley, alleging he should be liable for any of the damages that might be awarded against the bank. jp morgan says staley is the reason they kept him on as a client and that he misled them in vouching for epstein others work debating whether to keep him on or not. matt: i wonder about the significance of the settlement. is it a lot were a little for this kind of class action suit and how does the money get divided? who gets it? >> it's a lot, it's one of the

biggest civil settlements for a sex trafficking case. i spoke to someone at the trafficking legal center today. the next biggest case was $80 million so this is quite significant from a legal context for jp morgan, which recorded a revenue of 38 ilion last quarter. it's manageable for them but the conditions of the settlement haven't been disclosed yet so we don't know exactly how the money will be divided up but deutsche bank settled a similar case about a month ago and they set up a fund where victims can apply, essentially, for a claim. matt: thank you very much, ava, covering that jp morgan epstein settlement. we will continue obviously to cover this case as the other two outstanding cases are litigated and/or settled. for jon erlichman, i'm matt

miller is bloomberg. ♪ thanks to avalara, we can calculate sales tax automatically. avalarahhhhhh what if tax rates change? ahhhhhh filing sales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh

>> a busy week for investors, a big decision for the fed. romaine bostick kicking you walk to the close. a countdown today to what could be a third straight day of gains for the s&p 500, seeking to settle above at 4300 level for the first time going back to august. a modest gain and a relatively narrow one with big tech and big discretionary names leading the way.