capital,ross of janus and james glassman will join us from jpmorgan. our usual a team for jobs day. ♪

capital,s from janus he thinks the fed will be hiking. vonnie: an interview you will only see right here on bloomberg. looking at brexit with the referendum rapidly approaching. let's get to the stories you need to know about. in london where oil tops $50 a barrel. jodi schneider in japan. and mike mckee right here in new york with the latest fed talks. the rally continues in crude. brent toppinggh, $50 a barrel for the first time this year. javier blas, talk to me about driving things toward and barrel. alter javier: we are losing some had thousand barrels a day in nigeria. -- 700,000 barrels a day in nigeria. in the background is the demand that a strong. everyone is driving a lot in the u.s. that combined with supply outages is bringing us to $50 a barrel. jon: i want to talk about debt supply. a $9 billion auction -- what does that tell you about market conditions? javier: the pain for the producers has been really acute. you see qatar borrowing $9 billion. they have a big production, relatively reduced population. it is not a country

joining us from san francisco, brad slingerland, portfolio manager for the janus global technology fundere was a big sell-off especially in names like sales force, like workday, that looks like a really good move. you shifted out of old tech but didn't cut apple. why? >> good morning. thanks for having me. yeah, earlier this year in the volatility, we fell back on our fundamental research and modeling to determine that the volatility was really not impacting the long term transition to the cloud which is really a five or ten year decision companies are making. we are seeing significant budgets move away from legacy i.t. vendors such as oracle, hp, and into the cloud stocks. companies such as workday, service now, net suite, sales force.com. so we made that shift out of legacy and into the cloud stocks. apple was really a separate decision. we are under way apple quite significantly expressing somewhat of a cautious view there. however, it is still a position in the portfolio based on the strength of their installed base that they have on the iphone currently. >> big position. more than

heading us is a member from janiuar janus capital. neil, based on the market action that we saw yesterday, increasing concerns about whether or not the fed is going to raise rates in june. does the fed threat then rally? >> i don't think. so i'm not going to speculate on when they're going to raise rates. the bottom line is you know they're going to raise rates. it could be june or september, next year. what the real important question is what are you doing in the fixed income market if the fed's raise rates you? know they're going to go up. it's just a matter of time. and i get very, very concerned about the $3.5 trillion that is sitting in fixed income mutual funds as i look forward into a higher rate environment. >> they could be potentially at risk. talk to me about stocks. do you do anything differently with your stock portfolio? >> no, not at all. if you look at the market, i think the market is in great shape here. reminds me of 1982 to 2000 market where it was up each and every year. except for 1990 when down .5%. one thing th

jim janus says he's skeptical about the forecast. shares continue to move lower.n for him and all the positions he mentioned today were not new positions. tesla reports after the close of trading. solar city is another short he is reiterating today. solar citysees getting into financial trouble today. he talked about alibaba again, not a new short for this company forhe says he sure did it accounting reasons. it reports earnings before the opening tomorrow and he reiterated his short position in valeant. ares interesting that these reiteration's of existing positions, yet the stocks do appear to be moving. said bank of the ozarks is his pick for a short. the balance sheet may come under pressure and tank of the ozarks .s overly concentrated shares have since recovered to some degree. i have to tell you about a joke one of the presenters made. and early employee at facebook and venture capitalist, and owner and director at the golden warrior's says there is a multi-trillion dollar monopoly hiding in front of us in plain sight. but then he said it was a joke. amazon

he asked how big a return bill is expecting on his janus fund. our expectation is a 3% to 5% return. it doesn't sound great, but it is much better than the stock market so far. i think that is a realistic objective, but it has to be done recognizing credit spreads and curve and the yield stock pes are artificially elevated. , everyone is uncertain, but there is no doubt a zero or negative interest rate policy in many parts of the world or close to zero policy in the united states produces artificial asset prices. an investor has to be careful, time, armageddon is always there. carrying the sign the world is going to end tomorrow, it usually doesn't. nor does it end in a year. an investor that invest money with janice or any other firm or simply by themselves has to know there, between here and there is a time where hopefully you can make a little money as opposed to lose money, so we are investing conservatively, but with the recognition that somewhere out there, there is a point in time where the risk can be even more elevated than it is now. wh

heading us is a member from janiuar janus capital.

. >> and i noticed the last report that you made was janu y january 11th to this committee that was a year ago january - >> no what was included in your packet says at the bottom land use and transportation january 11th of 2016-2017. >> i'm sorry if there are of was a typo in the last presentation to the land use committee was the quarterly update was supervisor wiener mentioned january of this year. >> okay. >> so i apologize no problem that make sense i of these comparing the two and one of the questions i had was an excellent that report i actually differentiated between penalties assessed and penalties collected and in this report you show penalties assessed but not penlites collected i was wondering how that number has changed. >> we've collected been one hundred and 60 of the penalties assessed there was just - >> so in terms of the penalties assessed have gone from the last report you assessed 4 hundred plus and collected one and 34 thousand now up to 6 hundred and 95 thousand and collected one and 60 thousand so in terms of penalties collected to date - we're over $160,000 200

capital,ross of janus and james glassman will join us from jpmorgan. our usual a team for jobs day. ♪ francine: welcome back. we look at currencies, commodities, and the markets. i am francine lacqua in london, tom keene in new york. barclays is carrying out its promise to shrink the thanks global footprint, selling one third of its stake and barclays africa for $879 million. jes staley said the bank will treat from africa, one of the measures he is taking to raise cash and lighten its capital burden. rolls-royce says earnings will start to revive in the second half of the year. a forecast they will be close to break even through june. 2016 will be a challenging year overall because there has been weaker demand of the company's marine units. about 15,000 electric cars and now the company says it plans to ramp up production to a half million cars a year by 2018 to meet demand for its new model three. they are in a have more than 325,000 orders for the new car. that is the bloomberg business flash. francine: turkey's prime minister is expected to step do

capital,s from janus he thinks the fed will be hiking.rview you will only see right here on bloomberg. looking at brit

a conversation with william gross of janus capital. look at that at 4:30 p.m. this afternoon. surveillance." ♪ francine: this is "bloomberg surveillance." i am francine lacqua in london. tom keene is in new york. buyers are saying it is confident that it can be -- bear is saying that it can -- bayer is saying that it can meet monsanto. aaron kirchfeld covers deals for bloomberg news. i like the way you put it earlier, which was that they said no thank you but in the nicest possible way. are they looking for a higher price? i think it is evident that they are. they said we respect they are as a brand -- we respect bayer as a brand. we think it is inadequate what they offered, and we want guarantees on the risks with regard to regulatory questions and financing. francine: we spoke to the ceo with tom keene a couple of days ago, and he would not budge. we tried to press him on whether he would pay a higher price. and he do it? i think he can. he could raise more financing or sell more shares. their last six unit he still has some tools in the shed box. tom: i am fascinated -- and

bill gross, fund manager of janus capital had cautious words about the investment environment.exclusively to erik schatzker at the fixed income event in california. his thesis -- get used to lower returns. janusour objective with and the unconstrained fund is a 3.5% return. much better than the stock market so far. so i think that is a realistic objective, but it has to be done recognizing that the credit and the yields and the yield curves and the stock pes are artificially elevated. everyone is uncertain. europe, british consumers remained resilient. spending was up the most in a most a year and it helped to offset scarlet: falling export and business investments. scarlet:scarlet: a french drugmaker has cleared a hurdle getting a drug approved in the u.s.. an fda advisory unit says it should be approved for sale. ng to grow ini africa. they will start operating in the capital and tanzania within a month. a already operate in kenya. they will experiment with a cash payment option. alix: time for a bloomberg picked take when we give context and background on issues of interest.

also, the cio of janus capital.he next hour, and we are still talking about an incredible win. we will be talking about what is and in the championship john nickel weight -- john nickelwait will be talking about how he is looking his wounds for not betting this year. of all years. back to you guys. megan: i don't think i want to see those images any time soon. jonathan: would john trade the premier league's? ask him. i am not so sure. that: he said he thought that was silly. only later did he realize it was 100,000 points. up next, a look ahead to what is on the agenda for today and the rest of the week. ♪ ferro.n: i am jonathan we are 24 minutes into the session. major indices in the red in america. down by about 1.5% in the s&p 500 and dow jones. europe having their fourth day straight -- fourth straight day of losses. checking the board quickly. the head of payrolls friday, a soft adp report with treasuries rallying off the back of the board. crude keeps climbing higher, up by 2.6%. short the euro ahead of payrol

muddying the waters is bill gross of janus capital.e a listen to what he had to say. >> i think they should raise rates in order to give savers tha a break at the bank and the money markets. at the same time, the fed probably has to support the arket -- that is the long bond market. this has to be a slow and delicate process if they are going to raise rates and there cannot be a lot of volatility . i think qe has to come back at some point only to provide funds for fiscal spending. jonathan: joining us to weigh in on this is tom keene straight off the radio. tom: you nailed it with the goldman sachs call right after they throw in the towel and say we do not know where we are. confusion is the right word. it is baffling the polarity of what we saw with the dynamics of nonfarm payrolls versus good hourly and wage growth. everyone is confused. jonathan: he told me we would have a three-month average of around 200 k, going into a june meeting could tom. tom: what are you waiting for? jonathan: are we waiting until june for a rate hike? tom

from bloomberg tv and on bloomberg radio, bill gross of janus capital coming up minutes after those numbersk you very much. bloomberg markets is next. ♪ >> is 10:00 a.m. in new york. i am vonnie quinn in for betty liu. mark: this is bloomberg markets on bloomberg television. ♪ vonnie: here is what we're watching. alibaba sales surge. the e-commerce company seeing a 30% gain in revenue as they gain new users and sales on mobile devices. excuse me. trumpundlach says donald is extremely comfortable with debt. a closer look at what trump presidency would mean for investors. vonnie: and how tesla's new forecast could change the entire industry. introduce half a million cars a year by 2018?

we will have alan krueger and janus capital possible bill gross joining us.ow can we please have first word news? matt miller with first word news. matt: a number of prominent republicans have backed away from the parties likely presidential candidate dr. on donald trump, but he now has one of the richest republicans in his corner. children allison is telling "the new york times" he is backing donald trump. in regionalvoters elections gave no sign that they are ready to defy their leaders and leave the european union. prime minister david cameron's conservative party appears to be on the brink of picking up council seats. he is opposed to the u.k. leaving the eu. nationalists are on course for a third straight victory in scotland. herla sturgeon will extend turn as the head of scotland semi-autonomous government. the wildfires in western canada have spread to an area bigger than new york city. the numbers are staggering. more than 80,000 people have fled the people of fort mcmurray. the fire may turn out to be the costliest catastrophe in canada's history. in