good morning, when david einhorn talks investors listen.rkets have been paying attention to einhorn ever since he bet against niemann brothers months before the bank collapsed in 2008. he says there's a good chance earnings will strength this year and the market is too high if earnings have peaked. he knows the impact on oil prices and the stronger dollar is having on earnings but also the effect of the productivity bust on margins. companies cut labor faster than output and higher connectivity lead to better earnings and stock prices. labor costs will likely rise. he also has harsh words for ge and his decision to shed most of its finance business. ge capital -- ge's $16 billion charge will drain another 5 to 7% from s&p 500 earnings adding to the debate about the integrity of the country's reported results. einhorn says that ge chose to exit rather than face it's first fed-supervised stress test is one of the first real successes of the dodd-frank reform law. it fell 1.7% in the first quarter versus a nearly 2% gain in the average u.s. st

david einhorn's micron trade. we'll break down what it means for the hedge fund giant's portfolio coming up. >>> let's start with apple. thought we were going to break there. i like that. april has been a big month for the company in the past few years. in 2012, apple launched its dividend. last year, in april, apple increased its dividend again. plus, the 7 for 1 stock split. citigroup kicked off this april, reiterating a buy rating. joining us is jim suva. good to see you again. >> great to see you again, scott. we think it's going to be an exciting month for april coming up in the month of april. >> all right. what are they going to do? >> first of all, earnings are on the 27th. as people start to do their due diligence in field trips, we think they're going to take a look at the due diligence and see that the iphone 6 is selling great. in fact, the higher configurations of the 128 gig and 64 gig are selling so much better. big margin improvement. big asps for apple. everyone's talking about the problem apple h

david einhorn said today green light capitals taking new positions.tails, we go to scarlet fu. fax that is right -->> that is the right according to a letter bloomberg upturned. general motors and air cap. when it comes to general motors, greenlight capital bought shares at 34 dollars 60 two cents in the first quarter after selling a stake in early 2013. gm closer to breaking even in europe and low gas prices should boost demand for suvs and light trucks. on the flipside, greenlight exited against companies involved in mergers and acquisitions of the first quarter. this is all according to the letter obtained by bloomberg. mark: scarlet fu joining us from the breaking news do -- new stuff. more details coming up on street smart at the top of the hour. scarlet will be back with me for another edition on -- of off the charts on the other side of the break. we will look at the beloved new york rangers who are tied 1-1 in the first round of the nhl stanley cup playoffs. stay with us. we continue right after this break. ♪ mark: welcome back. it is late apr

david einhorn and dan's results are in. it's a mixed bag. the offshore fund regarded as the flagship up 3.3% for the quarter, handily beating the s&p. apparently with names like activist and phillip 66, at least on the long side. although, of course, those come directly from filings which could be dated at this point. and we don't know exactly what's in his portfolio in terms of credit and other asset classes. probably some greek bonds but not sure exactly what else these days. for einhorn, a frustrating quarter thanks largely to his big bet on micron secnology, semi condition. micron shares fell 22%, dragging down green light with them for an overall loss of 1.8% in the quarter. so as you mentioned, scott, with the s&p basically flat, you know, that is an underperformance for einhorn. for lobe, a decent beat. >> you want to weigh in on what you see? you're in this space every day. >> yes. and we're getting some of our numbers in, still really early. green light puts them out like at 401. >> right. and lobe too. >> and lobe too. which means

david einhorn said your mutt -- numbers are more like 20%.hoot every year to grow by 30%. over the course of the year, we kind of get in there. it's a very ambitious goal. very few companies try to grow organically 30%. we think we've got it in us because of the wonderfulness of our product. stephanie: if i was your employee or your mom or your sister, if i was investor i would care about numbers and if you're doing it. guest: we shoot for 30%. we don't do the kabuki theater of having a secret number and then put guidance around that. that so tiring. stephanie: i agree with you. guest: maybe they will hit the goal but they know that i like setting goals that are possible to miss and are ambitious. my employees know that missing is ok because that's what makes the culture resilient and powerful. stephanie: do you like being prepared to john ledger? guest: is he a good guy? if so i think of him all the time. erik: don't you think there's some sense in a setting expectations for investors that you can meet? i could go to the gym and say that i'm

and joining me now from washington is robert ian einhorn, a senior fellow from brookings brookings. you've been this round. you know these sanctions. you know the iranian nuclear program. what do you want to see in this deal to conclude that it's serious, that it will actually restrain iran's nuclear program going forward? >> well andrea the goal was to get a complete framework, all the basic elements of a deal and then have them fleshed out by june. it's not clear whether they're going to meet that goal. the deputy foreign minister of iran said this morning that no deal would be announced today. he said there would be a press statement indicating progress that had been achieved. now, the americans have pushed back against that saying that any joint statement today is going to have to be very concrete, very detailed. so it will be important that some of the key issues that were left unresolved before this week of negotiations would be worked out, including some that you discussed with michael gordon. >> bob, when we look at the iranian nuclear program, they've made advances on centr

matt: i haven't seen that anywhere also historically a turnaround painted like with david einhorn.wn 5% and it will get worse. that $16 billion is after-tax and it will be a drain of 5% to 7% of equity earnings alone. alone. even without that you're looking at a drop of more than 5% this year. betty: if you are able or berries to the data differently. jeremy siegel -- he says what happen in the first quarter and what is happening in the first quarter is a one-off. it is absorbing the big rise in the dollar. matt: and the oil crash. betty: that has happened already so let us move on. number 7 -- crafting a better mac & cheese. one of the foods i grew up with. matt: everyone did. betty: the company announced original craft mac & cheese 10 longer be made with artificial preservatives or synthetic dollars. they will replace that glowing orange with something else. matt: it'll be interesting to see what the new color is. betty: white? pale yellow? matt: they have 78% of this market. i was reading about the historical development of kraft macaroni and cheese. jim craft developed a way to

alix: thank you so much, that was robert einhorn.ore coming up on "street smart." ♪ alix: the unemployment rate for american veterans is on the decline. out of work at american vets who have served in the last 14 years has decreased, but there is still so much work to be gunned -- to be done. we have a veteran of the war in iraq and the cofounder and president of honor that services, jesse, welcome, it is great to have you here. what is honor that -- honor vet? jesse: there are so many wonderful skill sets that veterans have, yet there are tremendous unemployment rates, so we are looking to close that gap. alix: you served in the marine s for four years, so what is like -- what is it like to serve for that many years and come home? jesse: it is a total shock and you know what is expected of you and you get out, and you have to figure out what you are going to do for a living and hate your bills and figure out what you are going to do, and i think in that major focus for veterans, there is a lot of challenges that many women have in f

einhorn says the bear case is still $14 a share. fidelity and guaranty life ftl, is soaring by 11%.were previously controlled by phil falcone. railing the most after hrg group says it may sell the company. hrg says it may divest its entire 81% stake or even a portion of the holdings. that is also getting a big lift. stephanie: remember johnny bush the ceo of athena health? that guy can only be described as another level. erik: a unicorn. keeping the's hotel music festivals. we will talk to the guy behind the summers warped tour. ♪ stephanie: welcome back to "market makers." he helped to found katy perry, no doubt, and eminem, and now his company is kicking off the warped tour festival, the largest touring festival in the country. kevin lyman is here, the founder of the company that puts on the tour. i need to start with -- you are not aware of this -- my very first date with my husband took place at the warped tour. i cannot believe i chose to go on a second date. it is unclear how the warped tour makes money. when i went, it seemed like a bunch of normally, i'm showered tattooed pe

einhorn. olivia: really? of all sectors, tech companies get the most of the revenue overseas.on and answers. olivia, you have that? olivia: i do. a great question today -- what have you learned from jack welch? here are some of the answers -- authenticity. jack will remember names and family details of employees that he has not seen in a year. tom: ok. do you have that skill? brendan: no. not in any ways. bill clinton had that skill. olivia: i have a post it on my computer of brendan's children's names of sagan answered us lesson learned, leadership is about imagination, creativity, and improvisation. i love this quote -- if you do not have a competitive advantage , do not -- -- do not compete. tom: that is a very good quote. we will continue on bloomberg radio, bloomberg television, "in the loop" next. stay with us. ♪ betty: good morning. it is tuesday, april 21. you are in the loop and i am betty liu. we have a great show ahead for you this morning, starting with a market ball. jeremy siegel joins us on what he makes other recent fed mumblings that might forestall a rate inc

that toughness may be reaping dividends at the negotiating table where long-time negotiator robert einhorn says iran is driving the harder bargain. >> the iranians may have concluded that the u.s. team was under so much pressure to get a deal that the u.s. and its partners would make all the remaining concessions. >> reporter: jim sciutto, cnn, washington. >>> another big story we're following -- iraq says its hard-fought battle for tikrit is over. the prime minister led the celebration wednesday in the city held hostage by isis for nearly a year now. it took several attempts to retake tikrit. the final push came with help from shia militia and u.s.-led air strikes. iraqi troops are still battling pockets of resistance. >>> rescuers are fighting freezing temperatures and biting winds in their search for 15 people still missing after a commercial fishing ship sank off russia's far east coast. this happened in the sea that's 250 kilometers south of magadan. at least 54 have died. more than 60 have been rescued from the icy waters. still no word on why the ship sank. >>> we're going to take a

toughness may be reaping dividends at the negotiating table, where long time nuclear negotiator robert einhorn is driving the harder bargain. >> the iranians may have been concluding the u.s. team was under so much pressure to get a deal that the u.s. and its partners would make all the remaining concessions. >> reporter: this interim deadline was originally intended by the u.s. and its western partners to be an early test of whether a broader agreement is possible and specifically whether iran is willing to make concessions for that broader agreement. these delays could be last minute posturing but at a minimum they leave that question open. >> jim sciutto, thank you so much. >>> in other world news an oil platform in the gulf of mexico turning into a fireball. this was the startling scene as smoke leaking out over the ocean after a fire turned into a full-on inferno. mexico's state oil company says they do not know what sparked the blaze but confirmed four people have been killed. local emergency services say at least 45 others were hurt. they dispatched eight fire boats to extinguish the fl

the presentations are going to be einhorn's are fun to watch.you'll join us on monday for that. still ahead, this is navind navinder sarao, the london trader accused of contributing to the flash crash in 2010. up next we talk to his former employer. could he have really contributed to the flash crash? we'll find out next. >>> plus, it's fed day. there's our countdown clock. 1:14:20, until the news. >>> back, white collar prison time is the subject of a new cnbc documentary airing tonight called "white collar convict." there's a common perception that when corporate big wigs go to prison they have it easy. the reality is more complicated as former tyco ceo dennis kozlowski found out when he was convicted of looting his company. here's a sneak peek. >> i did not realize i was in trouble until the jurors came back and started reading guilty. that's when it really hit me. >> in 2005, he was sentenced to eight to 25 years. dennis kozlowski, ceo, became prisoner 0584820. >> the first thing that happened was a fight amongst two people sitting right nex

we talk about david einhorn bill ackman, and carl icahn more than anyone else.changing, but it is the myopia of the political structure in our country. everyone lives for today. no one wants to look 5-10 years down the road. until that changes i sure don't see how it is going to change anytime soon you are probably right. stephanie: he is so smart, betty liu, that stan druckenmiller. betty: great interview. stephanie: thank you. betty: what else is he like? stephanie: extraordinary track record. even though he is very negative long-term and is really worried about interest rates being low he is making a ton of dough. he likes equities, telecoms airbus in europe. he is positive about japanese equities and his bullish about the chinese economy. i pushed him on the property situation in china. he said look at the chinese economy. it is only growing, only getting bigger, only getting better. he is really positive. betty: even at 7% growth. stephanie: he is most concerned about the u.s. and interest rates. get on it. i will have the whole interview on "market makers.

david einhorn's green light capital has taken a new stake in general motors. the hedge fund sold off a position in the auto maker nearly a year ago. the gm put ignition switch recall issues behind it. it also expects them to begin the $5 billion greenlight buy back soon. einhorn says it's tougher to find good long positions because valuations are on the high side and earnings are in a precarious spot. >> a new warning from mark mobius this morning. >> right now we're seeing emerging markets outperforming the u.s. and the world. since the begin ofg the year we've seen theoutperformance. now is the time to shift out of the u.s. >> corporate earnings are poised to disappoint. switched to a u.s. recovery at early stage and government regulation. he favors emerging markets over most u.s. investments. not sure that's the most original thought from a lot of guests we've had on this show. we're sitting there saying ems and europe and out of the u.s. that seems to be a theme pretty prevalent out there. >> it's one he has been focused on for awhile. but we have heard th

david einhorn says it rely capital took new positions and chicago bridge and iron company, general motors and air cap. the firm exited short bet against a play and safeway semiconductors. less than an hour until the close of trading. right to the breaking news desk where scarlet fu is looking at the action. it is like a whiplash from friday. >> 214 point rebound from 280 point find friday. the dow and s&p 500, the best day in a month. the nasdaq gaining the most with an advance of 1.25%. china helped to cause the globally -- global equity selloff friday. over the weekend in removing some of the sting from the decision by cutting the amount of cash thanks need to cut aside -- set aside from the reserve. the fx side recovering a bit from the 4.2 percent drop friday. shanghai stocks did not get much of a list. they close down trimming the year to date gain from 30%. i know you will be discussing greece shortly so i wanted to give you a snapshot. john 1% before the meeting. that will determine when they will pay the bill and pay the workers. the euro ending at 40 rally that took it from 105 t

europe you're looking at a higher capital rating on cash than you are on sovereign debt as david einhornown bonds. now the anointed safe asset, it's a matter of price and value. in 2005 and '06, everybody loaded up on securityized mortgage structure. that was the asset of the cycle. now it's sovereign debt yielding just about nothing. we can't act surprised if it doesn't work out. >> understood. let me ask you real quickly, ben bernanke joining an advisory role at pimco. what do you think of his post-fed moves? >> the proof that our federal mandarins have way too much power over the lives of people in finance, they are asked to serve high-level salesmen when they get out. >> jim grant putting it in very few words for us. >>> we have breaking news on apple, we understand. >> what we have here is a dow jones industrial average report saying that apple found defects in certain key components of the apple watch that just got released. the story goes on to see a key component of the apple watch was found to be defective which prompted apple to limit availability of the highly anticipated prod

our first speaker on my far left is bob einhorn. a senior government official in multiple administrations. he is someone who is going to give us the state of play in what is going on with negotiations, the unresolved issues, what he sees needs to be tackled in the days and weeks to come. our next speaker is suzanne maloney, one of our nations are mere iran -- premier iran watchers in the government and outside. she will give us tehran's look on this. our last speaker our last speaker is not giving us a foreign policy perspective, but he is going to explain the political dynamics and ramifications in the united states. together, we will end up with a much more nuanced understanding of the issues that are dominating the front pages. without further ado, let we turn this over to bob. bob: thank you very much, tammy. first, a few words of background to the current round of negotiations in lausanne. last november, the p5 plus one countries and iran agreed to a second extension of the interim deal they had reached in november 2013. in nov

hedge fund manager david einhorn reiterated his short position on the stock. he originally announced a short position last year at the investment conference. those shares you can see down by 5% kelly, bill so far today. back over to you. >> thank you for now. for more on the markets and if the s&p 500 could possibly hit 3,000 within the next five years. >> did you say that? let's bring in adam parker morgan stanley's managing director joining us at post 9. welcome back. >> thanks for having me. >> what did you say, 3,000 -- >> about a year ago what we were getting a lot of questions about was the market is up five years and is it over? i thought it was astrological. you have to have some reason that's going to cause the market to decline. we collaborated with our economics team and it has to be the economy rolls over corporate arrogance grows, put costs in place that aren't merited or the credit cycle deteriorates. we kind of think we could be in the middle of a long expansion. >> it's already been a long expansion. >> it has. >> 2020 would that be the longest