mohamed el-erian after -- after mohamed el-erian announces resignation, it has been rough. everything has gone wrong for him. he has had redemptions, the bond market has turned around. the rally has ended. he uses -- loses mohamed el-erian. why did he let you come in when his back is against the wall? turmoil has been hard on him and he felt he did not have an opportunity to express what this is unlike for him and say his piece. impressed by how analytical and reflective he is. about distressed to read the negative depictions of himself. >> people are saying he is impossible to work for. hadad to pete -- mohammed

first up is my exclusive interview with mohamed el-erian. we will hear for the first time how he feels about his famous exit from pimco. it caused an uproar in the financial world. then activist investor bill acton will join what market makers" at 10:00 and at 3:00 this afternoon, i will talk with warren buffett. it all starts right here about an hour from now. here is a look at our top headlines -- according to david einhorn, we are in another tech bubble he is getting that she is betting against tech stocks that he thinks will fall up to 90%. does not say which stocks those are but you can figure those out. boeing has first-quarter earnings that beat estimates and sales rockets fell. -- sales profits fell. dow chemical posted first warnings -- first quarter earnings. by results were driven bigger margins. and also by stronger sales in china. the company has not been very bullish on china's economic growth. with us is the dow chemical chairman and ceo. great to have you back. >> nice to be with you. >> what happened with topline growth? ame

he was on the board for decades before his son howard joined. >> what about mohamed el-erian?> you know the story. mohammed has stayed quiet on his surprise departure from pimco until today when he gave us his first television interview. the exit shocked many global investors, and pimco founder bill gross has publicly skewered mohamed, pressing him to tell the world, why did you leave? mohamed would not be drawn into a fight. >> bill is one of the world's best investors. i had the privilege of watching him in action. he's a great investor, somebody who is able to differentiate signals from noise and someone who is very committed to delivering value. the other thing that has been accurate is bill is a part of a talent pool at pimco. that is a deep pool, an enormous bench at pimco. that is key for the firm going forward. >> he said he wanted to spend time with his family and his daughter. he doesn't want to join in another big firm. he did though just sign a new book deal with random house. it is his second book. he remains the chief economic advisor to allianz. busy, pimm.ping

el-erian is making his first comments since he left pimco. what he thinksow about europe and disinflation. to do now? you going mohamedf the brilliant minds of the bond market. >> warren buffett on, are we going back to the 1980's? >> let's get to our agenda. president obama arriving in tokyo. he is having dinner right now with the prime minister of japan. this was the first stop of his tour of asia. that does not include china. china will be the backdrop to all of this because of the disputes over different regions in the area. >> new-home sales. >> there is the president and ambassador kennedy. cool.t is new-home sales. we will see if they are cooling. yesterday, existing home sales were slightly weaker. what about new-home sales smr those numbers come out at 10:00. we are looking for 450,000. that will be an increase. in other two numbers we have the past two hours have been weaker. for -- reportures was fascinating. full coverage of the apple earnings this afternoon. the use of cash -- exercise come boring, no new products. people expect iphone sales have tapered off because s5.he launch of the galaxy people say a

mohamed el-erian and warren buffett. in between, william ackman. this, went a primer on will get you ready for that interview with bill ackman at 10:00 a.m. this morning. look for those three interviews. -- i havetreated tweeted it out a number of times. host, irwin simon, ceo of hain celestial. i have agreed to do a juice cleanse. >> that will be a painful week for you. a week? >> it could go nine days if you want to do it right. >> china's may factoring sector is struggling. her to sing manager index shows

liu,anks very much, betty conversations with mohamed el-erian and warren buffett. coming up, shuffling assets in the pharmaceutical industry. they are working to adapt to pressures from shareholders. you'll meet the chief executive of shyer pharmaceuticals coming up next. ♪ >> so far, it has been a big week for the pharmaceutical industry. novartis unloading and picking and deals with glaxo smith klein as well as eli lilly. valleyill ackman backed and pharmaceutical. he outlined his intentions on bloomberg tv's "market makers." >> we are saying that the combined business is a much better business than either business separated. we have committed a large amount of capital to this entity. we have committed to a select stock in the venture. we have a contractual requirement to own it for a year. we intend to own it longer than that. we are a big believer in not just of this transaction and what the company becomes, but we are a big believer what happens when deal two and three and four happen from here. pershingckman of square capital with some insight into the evolvi

mohamed el-erian speaks. and what was life like for him now? our exclusive interview comes up , and wildcard. by the way, david letterman gets a visit from the man who is going to take his job. stephen cole bear showed up on "the late show" last night. you know what? i will let them take it from your. >> i will do whatever you have done. >> no, you don't want to do that. >> no? >> it seems to have gone pretty well, dave. >> it has gone on. [laughter] [applause] >> i am obviously thrilled. >> i am thrilled as well. in a situation like this, i have been doing this for a long time, they could have just as easily hired another like me. but they didn't. they hired a guy -- >> of like me. every is like a snowflake, dave. we are all unique in our own way. ♪ >> this is lunch money, on bloomberg television. we are everywhere that you are. i am adam johnson. today? mohamed el-erian speaks. he made headlines in january, you may recall, when he unexpectedly left the helm. >> time for me to act with you and with others, w

mohamed el-erian after -- after mohamed el-erian announces resignation, it has been rough. e wrong for him. he has had redemptions, the bond market has turned around. the rally has ended. he uses -- loses mohamed el-erian. why did he let you come in when his back is against the wall? turmoil has been hard on him and he felt he did not have an opportunity to express what this is unlike for him and say his piece. impressed by how analytical and reflective he is. about distressed to read the negative depictions of himself. >> people are saying he is impossible to work for. hadad to pete -- mohammed to pick up the pieces because he had made such a mess. >> he was a dictator, he did not listen to dissenting opinions smoothamed was there to things over with the staff. he admitted he could be hard to get along with. he is focused on bond trading. introvert, why do i have to apologize for that. he is one of the greatest bond investors ever. many people are inclined to forgive him for that. he wanted to point out that he is not a bad guy. he is trying to learn from this. he is trying

he may have been needed in negotiating peace between bill gross and mohamed el-erian. el-erian announced his departure in january, a surprise, and gross suddenly found his company wrapped in public scrutiny. sheila, who followed a bill gross around for a day where they are based. what was it like? was there a lot of tension? electric an environment. he has seven monitors, most of them bloomberg monitors am aware he is watching all of his bond prices. and he showed me his 450 billion dollars worth of portfolios, which he has -- his $450 billion worth of portfolios, which he has on paper. and i sat in on a famous investment committee meeting. this is the intellectual heart of the company. the top people debate economic ideas. i watched a number of managers prevent -- present their strategies for growth to their colleagues. it was fascinating. >> he confessed quite a bit to you. >> he was very open. as you explain, he has gone through some turmoil and he'd recently. heated -- turmoil and recently. mohamed left. without him, he found himself adrift in trying to find a new w

knew mohamed el-erian while you're there. is it fair, all of this negative publicity?he is a terrific investor. great guy. he has done a great job and will continue to do a great job. i am not worried about bill or pimco. >> he is writing a book. that is his slight second act. think -- where is he going to end up? >> he has a lot of options ahead of him. go work in a government agency, nonprofit, he will do great. -- nobody better to write a book on central banks than mohamed el-erian. >> it sounds like all of you guys na li pimco go on to -- that leave pimco go on to interesting things. paul ryan recently introduced a budget plan that could frame the coming election. it shows a republican party that wants to eliminate the deficit by cutting social spending. democrats are looking to boost the safety nets. we are joined by scott rigell of virginia. great to have you back on the program. what did you think of this budget from paul ryan? >> i supported. there was a debate in whether we should bring one to the floor because we are under a two year agreement. i was convince

at things have gone so wrong the firm he founded and his disagreements with mohamed el-erian. casualty of obamacare -- kathleen sebelius is quitting. ♪ >> you are watching "in the loop ." live on bloomberg television. i am betty liu. bloomberg television is on the markets. it is 26 minutes past the hour. this tab -- tech selloff is really something. >> it has resumed. futures are heading lower. we saw the s&p fall yesterday. the nasdaq fell -- the biggest decline since november 2011. those names that were the biggest winners of the bull market last year, tech names, internet names, social media stocks, those of all been the biggest losers. one sector that has been the hardest hit is biotech. this is the nasdaq biotech index. it fell more than 5.5% yesterday. down inest names are the premarket also this morning. a all lost 7% or more. there is no clear roundup -- trigger to this roundup. everyone is still at a loss. note, thatnt out a it looks like a rotation from growth into value. seenis a sector that has incredible growth. here you go in yellow. this is the s&p biotech index

mohamed el-erian has a new title.out the rise and potential follow central banks. he has hired a powerhouse literary agent to represent him. the fbi is investigating trading firms. agents are trying to determine if they broke the law by acting a nonpublic information. testifies about the faulty ignition switch linked to 13 deaths. she will have to explain why gm decided it would be too expensive to stick -- to fix the part. march u.s. sales are up about 13% above the estimate of

recall in january when bill's bond kingdom was shaken when pimco's ceo mohamed el-erian left the company. here is mr. gross a few weeks after that. >> were we disappointed when he left? yes, we were. he will be here until march. mohamed came back, not only the heir apparent, but the future ceo. i thought i had done my job but obviously not. >> this is bill gross yesterday. >> extremely disappointed. i thought i knew him better. we hired him to be my successor. does it make me mad? yes, that makes me mad. does that make me disillusioned, not really. i would simply say, come on, mohamed, tell us why. the furor over the past two months in terms of the headlines are quite exaggerated. and it is not indicative of what this company is, was, or will be in terms of our future structure. >> bill gross is still not over the el-erian departure. mr. gross' management style has received mixed reviews, from direct to tyranical. it is in the cover story of the new edition of "bloomberg businessweek." "am i really such a jerk?" "dictator" was also thrown around a couple times. >> a leader has to be forc

and bill gross says that mohammed el-erian should've come forward about his role as a head plunge manager. >> this is not indicative of what this company is, what this company was, or what our company will be. >> he spoke to trish regan. he says that el-erian's departure was a mystery to him. you can read the full story in "bloomberg businessweek" on newsstands and online. >> thank you. u.s. stocks declining today, nasdaq falling the most since 2011 as earnings season begins. for more on what is happening, i want to ring in the chief executive officer -- bring in the chief executive officer of a company, and also from new jersey, i have chad from a company overseeing about $150 billion. chad, i want you to start us off. is there a specific reason for today's selloff? >> there was the chinese traded data as well as concern over the euro. market -- the european market. although the united states market hit a pothole in q1, the vix is doing quite well, to take an example, with the jobless numbers that have come out. >> do you have an explanation for today's selloff? >> i agree with chad. the

also, tomorrow, bloomberg tv will have an exclusive interview with mohamed el-erian, the former pimco co. chief executive. att will be with betty liu 9:30 a.m. wall street time. ♪ >> a wave of acquisitions hit the pharmaceutical industry in just last 24 hours. and when the dust settled, it seemed like novartis went to a swap meet with glaxosmithkline and eli lilly. investors cheered the deal today as health-care stocks in the s&p 500 were the biggest gainers of all of the major industry groups. and the mergers may not be over yet. for more, i'm joined by shannon pettypiece and also steve brozak , president of an investment bank that specializes in the pharmaceutical industry. shannon, i know you wrote the story today and have been following what is going on. swap of ao do with a variety of properties. inartis, which is based switzerland, glaxosmithkline, which is based in u.k., and eli lilly to my based in indianapolis. >> it is interesting to see all of these big pharmaceutical ceos and executives that usually can keep with each other come together. other comewith each together. basi

ira, former co-ceo mohamed el-erian wrote that one of the things to keep in mind from the fomc during this week's meeting, context. what is the fed's context? >> their approach is caution. they have to be cautious because they are worried if they go too early and they wind up taking back some of the monetary stimulus that the economy will not be able to stand on its own two feet. they are going to be cautious. that does not mean they think things are going to go badly. they both continue on this pace and they will continue to taper, $10 billion a month. they will wait and see how the economy and the markets respond. the they will move on. >> for you as a market participant, the question is going to be because the members do not add up neatly, do they end in october or december? do they change the $10 billion amount every month. inwe think they will end october, they will just do an extra $5 billion at the october meeting. day thethe end of the market is already pricing for this. the bond market has been basically pricing for the end of qe since last summer. i think that is still the p

also, tomorrow, bloomberg tv will have an exclusive interview with mohamed el-erian, the former pimco co. chief executive. that will be with betty liu at 9:30 a.m. wall street time. ♪ >> a wave of acquisitions hit the pharmaceutical industry in just last 24 hours. and when the dust settled, it seemed like novartis went to a swap meet with glaxosmithkline and eli lilly. investors cheered the deal today as health-care stocks in the s&p 500 were the biggest gainers of all of the major industry groups. and the mergers may not be over yet. for more, i'm joined by shannon pettypiece and also steve brozak, president of an investment bank that specializes in the pharmaceutical industry. shannon, i know you wrote the story today and have been following what is going on. this has to do with a swap of a variety of properties. novartis, which is based in switzerland, glaxosmithkline, which is based in u.k., and eli lilly to my based in indianapolis. >> it is interesting to see all of these big pharmaceutical ceos and executives that usually can compete with each other come together. basically, wh

mohamed el-erian quit unexpectedly.the big bond suffering withdrawal from a hot new strategy. investors are flocking to make money as interest rates increase. unconstrained bond fund has lost $2.7 billion to redemption. similar funds have seen a big increase in deposits. citigroup posting a big first quarter beat.. profits surprisingly rose as it released money set aside for bad loans. details coming up. i have alix steel. >> citigroup making $1.30 a share, about 1% higher year on year. revenue came in over $20 billion, much better than the down 7% many were estimating. they released more loan-loss reserves. consumers and businesses are paying back their loans. they have to set aside less money to protect themselves. million, more$673 than wells fargo $500 million. the other highlight was in fixed income and trading revenue. that was down 18% year on year coming in at $3.8 billion. jpmorgan's fixed-income revenue fell 21%. how much they make by giving loans and taking loans themselves was up slightly, 2.9%. ever course

mohamed el-erian has a new title. he will write a book about the rise and potential follow central banks. he has hired a powerhouse literary agent to represent him. the fbi is investigating trading firms. agents are trying to determine if they broke the law by acting a nonpublic information. testifies about the faulty ignition switch linked to 13 deaths. she will have to explain why gm decided it would be too expensive to stick -- to fix the part. march u.s. sales are up about 13% above the estimate of 10%. we see automakers continue to climb and exceed sales. with more and particularly on meri kara, i want to bring in -- , i want to bring in matt miller. matt, let's start with you. we know there is a lot of trouble that general motors is in. what about mary barra herself? is going to answer why she did not know about this as the chief of engineering design. before she was made ceo, she was in a number of other leadership positions at this company. runningently, she was hr. before that, she was the head of product and

mohamed el-erian is weighing in. >> i do sit occasionally at the is a ripoff oft the consumer.f you watch the stock and how bid, before $60.22 you can put an order in, that disappears. they should hold firm for a period of time. >> we're joined again by sallie krawcheck. the former top executive at merrill lynch and citi wealth management. as well as now the owner of 85 broad. sallie, is it a ripoff? way michael lewis writes, it sounds like it is. he has done a great service, he is a talented individual bringing attention to an arcane area of finance that most people do not understand. he has presented it in an understandable way. now let the debate rage. >> the debate is raging. some companies are getting hit by the accusation. i know you are on the board of motif, an online brokerage service as well as other things. is it fair that this is happening to them? >> the market will determine that, that is what a market's p ole is. is this a big deal for the organization, are they going to lose clients ormone money? it is hard to argue against the this being shined on thing. i alwa

former pimco ceo mohamed el-erian says bill gross is one of the world's best investors.st tv interview since the surprise split with pimco, he explained why he left. >> when your daughter comes to you, as my daughter did, almost a year ago, with a list of 22 things that you have missed as a parent, you realize that there are special moments in your children's life. every parent knows it. i was missing too many of these. it is that simple. formula one president bernie ecclestone's trial underway, facing allegations he paid a bribe. he denies the charges. since run formula one 1995. >> shares of sodastream international on a report that starbucks will buy a stake in the company. local media says starbucks is trying to buy a 10% stake, valuing soda stream at $1.1 billion. is bracing fors a rough ride. investors getting set to grill anthony jenkins about bonuses and tax. we will be live at that showdown. see you in a few minutes. ♪ >> good morning. you're watching "the pulse," live from bloomberg's european had corners in london. let's talk about the foreign exchange story.

former pimco chief mohamed el-erian and commentary on cnbc.com says policymakers are likely to -- futurengs before making any decisions like lowering rates or launching an asset purchase program. a decision is expected at 7:40 a.m. eastern time followed by a news conference from mario draghi coming up at 8:30 a.m. eastern. we will have more on today's euro events in just a few moments with ross. he'll be joining us from london. right now, take a look at the futures. check things out right now, you will see that the futures are indicated higher. dow futures up by about 14 points even after those big gains from yesterday where you saw the dow reaching aew

former pimco chief mohamed el-erian and commentary on cnbc.com says policymakers are likely to -- future meetings before making any decisions like lowering rates or launching an asset purchase program. a decision is expected at 7:40 a.m. eastern time followed by a news conference from mario draghi coming up at 8:30 a.m. eastern. we will have more on today's euro events in just a few moments with ross. he'll be joining us from london. right now, take a look at the futures. check things out right now, you will see that the futures are indicated higher. dow futures up by about 14 points even after those big gains from yesterday where you saw the dow reaching a new all-time high. we start giving that back a little bit. we did see some big gains across the board. if you check out currencies, you'll see right now that the dollar is higher against the euro and the yen. euro is trading at 11.3764 and the yen is at 103.94. and the ten-year note spoke of 2.8% on wednesday. that's the highest level it's seen in just about two months. you can take a look and see it's just below that at 2.79%. andrew