Previously recalled cars. The dispute may depend on fraud. Joining me now with matt miller. But talk about the most recent recall. Put this in perspective. Comparednot anything to the 2. 6 million that were recalled in the case that everyone is concerned about. It is a small number of suvs. They are 2014 models. They are doing this as quickly as possible. Before anyone is killed, for. Xample, and an accident are if would not surprise me 2014 is a record year for recalls in the industry. They are not necessarily a bad thing. Not every car is going to come out perfect. Will be problems. You want the manufacturer to recall the car if there are issues. I have never had of a problem for which the car as we was recalled. I am assuming this will be a case for most of the people driving. Bill, this leads into your area of expertise. The victims of the faulty engine recall versus those seeking there is newes. Gm and old gm. Claimsexplicitly took on for personal injury and death. They did not take on liability for economic damage. The time you spend schlepping around getting a car fixed was the decline in value of a car. Who would want to buy a cobalt if youre afraid that it will be a death threat. That is a large part for economic damages. New gm did not take on that liability. You have said that the reporting has been way off base. Yes. Both sides are both shoveling tons of forstmann aware. Very polite monday morning way of saying something else. [laughter] plaintiffs and gm are saying the opposite. The plaintiffs do not have to prove fraud. Why are they going after fraud . Few can prove fraud, your damages are a lot higher. What they have to prove first is the gm knew about the defects and did not notify the people until they can file claims in the 2009 bankruptcy. If gm knew andnow if gm time, it doeshem not give them a claim against new gm, it gives them a claim against old gm. Judge may tell them, you have to go on to state courts or federal courts and establish successor ship. You have to prove that new gm is the successor to old gm. That very possibly might be different issues because state laws are different, if it comes down that way. I wonder how much of this is sort of theatrical play for the court of public opinion. Feinberg has gotten involved. Im sure he wants to make a deal he they go to court wants to make a broad sweeping deal they can wrap up everything and put to bed all of these claims. You are exactly right. To come upffs want the a smoking gun and reputation damage to gm after that would be awful. The ideal situation is to get this thing settled before there is more reputational damage for gm. What is the shortterm overhang on the stock and its reputation . Up almosts were still 7 . We did not see the fall off. I dont think that you saw decadel effect of the recalls, if we can call them that. You may see a bigger effect in , the company is separated fairly well. Is going to mistake a chevy cobalt for chevy and paula impala. The quality of what they are building now cannot be compared to what they were building in 2006. On the other hand, investors are concerned about the overhang. The ticket 1. 3 billiondollar charge in the First Quarter for this. I do not think anyone thinks that is as near as much as they will pay in the long term. We have to leave it there. You so much for clarifying the case. We do have some breaking news. Olivia sterns is breaking it down from the newsroom target is saying that their ceo and is now stepping down. It is effective immediately. In his place, the ceo John Mulligan will be stepping up to read he will become the president , as well. Of the board will step in as nonexecutive chairman. Theyre asking for the ceo to stay home with target as an advisor. These changes are effective immediately. The target ceo stepping down and the president and chairman of the board is in his place. Cfo John Mulligan. Moving and shaking, president obama will get a chance to show off his talents as a stand up comedian. At the white house correspondents dinner. I am happy to be here even though i am a little jetlagged from a trip to malaysia. Go to tohs we have to get cnn coverage today. Msnbc is here. Fair a little overwhelmed. They have never seen an obvious an audience this big today. Brothers have used a shadowy rightwing organization as a front to get a table tonight to rid fellow, fox news. Im kidding. Lets face it, fox, youll miss me when im gone. It will be harder to convince the American People that hillary was born in kenya. He was pretty funny. I have to say. Peter cook joins us. Did you get some cool selfies at the nerd prom . I did get some pretty cool selfies. Most of them i did not recognize unless they played in the nfl. It is the weekend we hate to love in the words of the washington post. Is excessive, overthetop, but it is a lot of fun. There were a lot of good moments. I stayed out a little bit too late, i have to admit. Thing that stood out to me was president obama suggesting that Hillary Clinton could win the nomination in 2016. It was the lead story on meet the press yesterday. What did you make of that . She was the missing piece to the puzzle. It was one of those moments. She had a big moment in there on saturday night. Jewel mckale mchale spoofed as well on hillary and the president. Puzzle the missing piece. I thought they can you joke was the highlight. Governor christie did not have a great light. Night. Any jokes that really fell flat . It has to be hard. President to comedian. He has a future as a comedian. , i do not think he is going to be as funny as he could be the year before. But he is. I would definitely not want that job. No, core comedian for me. Your you, peter cook returning to one editors spoof of the white house correspondents dinner. This out julia louis tries dreyfus. That makes no sense. And give a cap. I got my just. And this hair. Thanks a million. I also love that. The Vice President and president obama are powerless when it comes to being in the driver seat. Megan hughes is here to explain. I dont have a drivers license. I am kind of Like Congress right now. Why cant they drive . What is the security issue . One to become president or Vice President come your keys are gone, effectively. Secret Service Agents are trained in defensive driving. This is something they have been very strict about since the jfk assassination. We see the entourage of vehicles all the time. Gm cadillac limo known as the beast, the president is on the move. The president of the Vice President really do not drive, at least on the open road. The Vice President really does seem to miss it. He did address the north American Auto show in detroit. He said that was one of the negatives about joining the president ial field. There is one overwhelming reason not to run for president. [laughter] that 060 in 3. 4 seconds. [laughter] 3. 4 seconds this comes out of the hole like a bullet, man. I could hardly wait to take on my friend porsche. Im serious. We do know the president strove once in 2010 and 2012. Once was around the white house, once after touring an assembly line. Secretary of state Hillary Clinton recently said that she had not driven in 18 years. Beat. Otally have her though the drive somewhere . There are some president s really cannot give it up. They were barred from the open road. So they drove around the properties. You had george w. Bush in his pickup truck on his ranch. Reagan often drove on his ranch in santa barbara. The fourwheel drive g. Jeep. You just have to keep it on your property. You do not have to give it up altogether. Thank you so much. Megan hughes in washington. Coming up, it was the most expensive house on the market. We will show you what you will actually get when you are willing to spend nine figures. Returning for a limited run on fox. We will look at the network strategy. You are watching in the loop live. I am alix steel. Jack bauer lives. Joining me now with more is paul sweeney. You have never seen 24 . I think i alien . Will get sucked in this time. The first season was absolutely the best. Why bring Something Back in the form of a miniseries . It is a great character, a great series. The movie industry brings back sequels and prequels all the time. Why not television . Fox is bringing it back as a shorter series. 12 episodes. I think that reflects the fact that people, viewers have a ofrter time horizon with all the Programming Options that are out there. Aey are simply trying to do smaller, shorter duration series. That is where viewing habits have evolved. Is Binge Viewing where we are going . Is this what we can continue to expect . I think we will see more and more of this. Network television has become more of a yearround strategy of programming. Were starting to see more and more Networks Program around the whole calendar so that they have more flexibility to introduce a shorter series, longer series, flexibility to vary the format. Weeku dont want to wait a to binge for you. They want to keep alive. What was 24 like one of first started versus now . What is the tv landscape . It has dramatically changed. We have the internet, viewing a video of video. We have netflix. There are lots of different ways to watch tv. There is Binge Viewing, which did not exist back when 24 started. They want to make it an Event Television so that they can get more live viewing and charge higher advertising rates. Any word on how advertisers are been responding . They respond well to miniseries very well. Hbo had a successful run with you detect to. Under the dome true detect ive. under the dome was also very successful. We will see how this one goes. It is certainly very high profile. The reviews have been pretty mixed. Im a little concerned. Paul sweeney of bloomberg industries. Gets ready tobaba file for what may be the biggest ipo. Maybe Rupert Murdoch is just a romantic at heart. Wait until you see what he bought. You are watching in the loop live on Bloomberg Television. Top stories. Down as ceo will step chairman, president , and chief executive. The chief Financial Officer will serve as the interim ceo. The sales and reputation have taken a hit since hackers stole data on millions of customers. Asian stocks slid overnight following group boards that showed that chinas manufacturing contracted for a fourth straight month. Slowdown could be deepening. Quartereporting first earnings that topped it estimates. What he thinks past the hour means bloomberg is on the markets. Markets correspondent Olivia Sterns has more. Silver futures are trading higher this morning. Theyre extending the rally they had on friday. I am joined by bloomberg trade expert greg bender. Greg, it has been a pretty wild ride this year. What is really driving the price of silver right now . A couple of different place right now. We are having a big balance off of 19 support. It is technically oversold, but not on absolute basis, but also relatively to gold. The gold to silver ratio is a bit higher. Is that something the traders want . Gold is the main focus in the Precious Metals market. Silver is also looked at relative to gold so it is extremely important. Obviously it is not central banks, it is industrial demand. Looked at as an safe haven, a currency play. Silver is very industrial. It also draws a lot of spec you wouldve interest in a lot of retail flow as well. How are you trading silver . It is the poor mans gold. You have to look at silver as a cheap, safe haven play. We have seen it in tents a fine in the ukraine association. Seen it intensifying in the ukraine situation. Then the medical side of things. Silver, it is a major antibacterial product. Uses of different medical for silver are continuing. We are continuing to see demand pickup. It should go from here. What is your trade . I think you look at the calls. 203 days till expiration. I am looking at the 20 21 call pread. You want to look at the risk reward ratio. Good balance on risk to reward. The call spread is the way to play it. You have plenty of time left. Lets put that traded to real terms. Contracty one silver the price goes up, the you have made 5,000. See another flushed to whom 19. Down below 19. Thank you so much. Our thanks to greg bender, as well, for what is driving silver prices. I want to find out where i can find the silver in my iphone. That does it for futures and focus. We will be on the markets again in 30 minutes. Number, 140 7 million. That is how much the most expensive Residential Property in the company just country just sold for. It is a beach estate in the hamptons. Rosenstein is a hedge fund manager. While. Nice property wow. Nice property. Regularly talk to Real Estate Professionals to find out where the money is flowing. A real estate confidence impact index has been put together. Great to have you here. Home. Illion make of these numbers . Big numbers. Real estate is attractive and getting more attractive. That is what we are learning from our Confidence Index as well. Where are investors putting their money in real estate . They are looking at where they are going to shift their money in real estate. They are looking to expand their portfolio holdings. What i thought was very interesting is that investors are looking to get out of triple net leases. What is that . Are typically longterm, investmentgrade leases were you have a tenant leasing a property and taking on all responsibilities. The owner basically gets a check. It is a great safe investment and has been for the last several years. It has been impacted positively. Capitalization rates will be rising. As they rise, those types of assets start to look old model a lot more like bonds. Bonds typically fall when Interest Rates rise. Ofmay be time to divest those type of foldings and a look at more actively managed real estate or real estate with more time. Risk is a relative term. There are people a if it is not trading like bond, my assumption is that it is going to be more volatile and more risky. Of course you have the upside. Risk is relative. Risk is relative, but it sounds like there could be more volatility in there. Do you get worried at all . Are investors worried about what the top might be . Index whichd this is going to come up quarterly. The First Quarter of 2014. What we have seen based on that index is that 96 of respondents believe that the market is attractive and getting more attractive. That there is a demand for more real estate and expectation. You mentioned where the demand is. Andichild families industrial. Where is the real money . It will be in inflation protected leases. Properties that have leases were you can increase rent. The apartment buildings or hotels or Industrial Assets were t. U can build it in a indexe not segregated our on geography. Were sitting in new york city. Manhattan, 147 million houses. What are you personally doing right now . We have been invested in multifamily. We are not buying retail at all. We believe that retail is over built in america. Square43 feet as feet of retail for every citizen in the u. S. Many people are now shopping on the internet. Bricks and Mortar Retail is something we have been divesting of. Like data related centers. We like medical because of the demographic shifts and population changes. Distribution is going to become more important as people shop more on the net. Is there anything youre noticing geographically in your investments . The major cities and the cinderella cities, very, very strong and getting stronger. Apartment or she ate in price . Price . Eciate in likely. Likely my husband will be so happy. Gets ready tobaba maybe do its ipo. Stole data hack that for millions of customers, targets ceo will step down immediately. More on the fallout. If filing is imminent for a filing is imminent for alib aba. The company referred to as the has Partnership Arrangements were a small group can nominate a Board Members nominate Board Members. A key distinction here. Versus Companies Like google. Investors say this is an in between solution. Structuredual class in single class share structure. Do ishey have decided to partners to nominate a majority of the board of directors, which are then approved our shareholders. This is the one key issue that gives this specific group of people or power. One class of shares, but a group within that class of shares has more power. Exactly. This was enough for the Hong Kong Exchange to say no dice, you cannot list here. Im curious about the Historical Performance of this type of thing. Isshere was a study done by that companies with a dual class of shares underperformed by about one third. Investors at t. Rowe price said that they understand, by allowing the founders with a vision to maintain control, but over the long run, we would like to see these dual class share structures disappear. Did it think that alibaba would do it . Is that enough to get the t. Rowe prices interested . You are investing in an ipo for growth. Seem to think that the partnership thing does seem to be fishy, but it is not enough for them to say, we are not going to invest in ali baba shares. There is too much Growth Potential to let any Corporate Governance issues get in the way at this stage. Is there a correlation a ipo and thelibab recent tech selloff . It is pretty proportional to the market cap valuation of alibaba. It is true that when these big ipos come into the market, especially these big tech ipos, we will see a big selloff. That is largely because the prices have to drop in the overall market. Thank you so much. I really appreciated. Will step down following a data breach at the company. We will have more on the management shakeup next and if the camera moved the blackeyed the target has. Breaking news. Targets ceo is stepping down to be replaced by the cfo on an interim basis. Joe, what did you make of the shakeup . It is something that has been talked about for a while. Have beenthing we anticipating coming. I think it is probably a good thing for target. I think they need fresh blood at the top to help reinvigorate change. Be the mulligan will interim ceo. Who would be a good fit to help remove the black eye of the data breach . You probably want somebody with some decent Retail Experience with a good merchant background. Maybe it is somebody like you Mindy Grossman or a diane neal or a share in turn he sharon turney. Whereyou go another route you get a younger person coming from a different aspect of the business . Maybe someone with more of a digital background, who can understand the multichannel blending of ecommerce and retail. Then you could add a merchant to heme. Team te this seemed a little bit rushed. It does. Given that he had hung long on as long as he had. They are probably coming up on their Board Meeting soon. They probably wanted to clear the slate. In terms of the technology and safety aspect, the company does have a new tech Information Officer and did new technology officer. Is it over with . Is it done . It may not be done just yet in the consumer mindset. I think they have done a good job in trying to fix the problem they have had with the security breach. They have not claimed that there have been any issue since then. I have not had any issues. Believe i would be curious to see they have said that sales trends are coming back. That makes sense to me. The stock is only down about 2 on the year. What is the number one thing you would want to hear out of the new ceo . Merchandising innovation. Freshness, newness. Theyre all the same thing. They need to inject some freshness and excitement back into the store. Attitude,cheap chic the zips they used to have. It seems like it has been lost in the past couple years. What are you expecting for the next couple years . The second for quarter. We are really low double digits single digits, excuse me. We are still seeing pretty low sales. If you go back to the holiday season, before the data breach happened, they were putting up samestore sales for the period above their guidance. They were actually having a decent trend. All of a sudden, the data breach hit and sales slams to a halt. February they last reported and in recent weeks they had seen fail starting to pick up again sales starting to pick up again. If they can get back to a stronger trends later this year, that will get back to a little bit more formal trendline for them. The latest attempts to put the data breach behind them. We will be back. Welcome back. Lawmakers are committed to one big ticket item. The newest aircraft carrier. It comes with a price tag of nearly 13 billion. Peter cook went aboard to find out what taxpayers are actually getting for their money. The uss gerald r ford, named for the 38th president , is taking place. It is americas newest super carrier. It is still a work in progress. Welcome to the bridge. The captain took me on a tour. He will be responsible for more than 4600 failures who will serve on the most expensive worship in history. Every system is either dramatically improved or wholesale and completely brandnew to this class of ship. All of the innovation is meant to boost productivity while at sea. We wanted to increase the capability of the platform and decrease the manning of the ship. There were three aircraft elevators instead of four. Separate helicopter landing pad, and a magnetic catapult system. It will be able to allow 24 more flights 25 more flights per day. Havext summer, we will sailors packing this place it in correct first, lunch, and dinner. 14 million feet of electrical and fiberoptic cable. Is designed for aircraft that are not even on the ship yet. They will enjoy more airconditioning than ever before. The Living Conditions are much better. Over budgetis 22 and six months behind schedule. What are taxpayers getting . In 2065,l you that this ship will still be doing the things that taxpayers in 2065 needed to do. Do the American People really . Eed 11 carriers everybody wants one. Why would we think about having less . Amazing inside look. Is 56 minutes after the hour. That means Bloomberg Television is on the markets. Taking a look at futures. They point to a lower open this morning. The nasdaq is off by 0. 5 . A whammy really. You have that European Union cutting euro area growth forecasts. Plus, jpmorgan coming out, saying that it is expecting a slump in its trading revenues. All of that is weighing on the stock market. We are on the markets again in 30 minutes. Coming up, the big shakeup the target. The ceo stepped down that breachd after the that resulted in the stealing of information. You are watching in the loop. Were 30 minutes from the opening bell. Futures indicate stocks will open lower. There are growing concerns about the ukraine. Could getslowdown worse. The Los Angeles Clippers have moved onto the second round of the nba playoffs. Who will end up replacing Donald Sterling as the teams owner . Cardallout of the credit data breach at target. The ceo is out effective immediately. Targets reputation has taken a hit after hackers stole data from millions of customers. The chief Tech Knowledge he officer has already departed. They got a chief Information Officer in there. Is this all about the breach . Really there have been a number of missteps that target made by the ceo and the team in general. Companysnaged the involvement in canada. Other Product Launches have not gone well. Target is way behind online. You were just talking to joe feldman, who talked about the lack of freshness the target. When is the last time we called it turned shea target . Does not have that cash day like it used to. It is sort of like walmart now. It is to get the strategy back in place. Is this going to do it . This is going to be enough to replace the ceo. It is partially about time. Target is making the migration to the embedded chip technology. That will be a huge step up in terms of security, data security. It depends on who it is. Who is the replacement going to be . Mindy grossman as a potential successor. President of the u. S. Operations of walmart could come over. Not a lot of noncompete issues. Who are you going to get in place that is going to make a difference . Strategy be online stale scum are reinventing the Retail Experience, deeper security . It will have to be all of those things. Inyou want to get a merchant there who is going to improve the product mix. The online has to come way back from where it is. The stock really has recovered from the data breach. The ceo is pretty much a lie for a target. Injoins the Trainee Program 1979. He became the ceo in may 2008. The stock is up 14 . That has outpaced some retailers. Has beeny a underperforming. It has seen some weakness. It seems fairly rushed. It feels that if you are a hardy unhappy with your ceo and you have been trying to get out from under it, why fire him so quickly now . That is a very good question. This did seem somewhat abrupt. Other things in place. The cfo will be taking over. The search is not underway. Gives credence to the idea that it happened rather quickly and abruptly. Why now, wew mentioned the board of directors meeting. Were still trying to figure out all of the pieces as to how this happened. Thank you so much. Julie hyman is following everything target. Moving and shaking, katie couric may end up back at her old show, at least on a temporary basis. She has talked with nbc about filling in for Savannah Guthrie on Maternity Leave later this year. Her current title is global anchor for yahoo . Today showd the for 15 years. Nbc is not commenting. It is in second place behind good morning america. We do have breaking news for you on southern bees. Sothebys. She is ready for us right now. Olivia, tell us what you have. It looks like there is peace loeb. N sothebys and dan loeb has been agitating for change and change the way they do business and become more contemporary. Wanted to have a shakeup of the board of directors. Hewanted to be on the board. Also wanted harry wilson to be on the board. Sothebys has reached a bit of a packed. Until now, they have been fighting very aggressively to standoff from the pages changes that loeb has been proposing. The three Board Members that dan loeb wanted to put on the board will not be joining the auction. Stephanie ruhle joins us now. You have been reporting on this for a while. What do you think about this . This is very interesting. To extend it, they are preserving the they currently have in management and on the board and sending it to this added group. Sure seems like that will when they sit down next, it does not mean that rupert will not be criticized. To shore it up and create change. Is openingthebys the kimono, while there is a huge amount of criticism, we just heard over the weekend, maybe this is a case where dan loeb and sothebys are on the same page and night can turn it into the best company they can. This has been confrontational up until now. Here we are, just days away from the vote, they possibly seeing the writing on the wall. Come on dan, come on in. Is there a big bubble in the art market . They said absolutely not. The ultra one percent is getting hotter. The amount of uber wealthy is only growing, especially internationally. You will be talking to all of the Top Hedge Fund guys. What are you looking for . The best trade idea. In thee 3000 people audience, lets go through some of the speakers. Bill ackman. It is an allstar lineup. In a year where hedge funds are giving chop up and ground down. Up and groundpped down. When David Einhorn first spoke out years ago, when he takes that stage today, the moment he mentions the company, watch your screen. It will be moving. We will be watching you with all of your fabulous interviews. Stephanie ruhle. Thank you so much. Do you want to know your own professional Basketball Team . You may have a chance. What it takes to buy the team. You are watching in the loop. The l. A. Clippers will be up for sale if the nba gets its way. What does it actually takes to become the next owner of l. A. s pro Basketball Team . Jon erlichman joins us in los angeles. Thanks for being here. What is it going to take . Will they be able to force the trust to sell the same . That will be the first big question. I think they will. I think it will be a mess and take a lot of time. I think the suitors lining up may just want to wait a little while. I think adding on the team is going to be like trying to buy a house when you dont on the title. Fairpoint. The price tag. 575 Million Dollars, 1 billion. What are you hearing in los angeles . There is potentially a big tax bill that goes in to selling that Donald Sterling was not intending to sell. A tax bill makes for a big price tag differential. You have to see what kind of bids are coming in wants to move toward 1 billion from 500 million. Who has that kind of money and wants to take on the kind of debt . There are names lining up. Oprah winfrey has the resources to do it. That group. Is debt limit you can carry 175 million against the team. Up with have to come liquid capital and the neighborhood of 800 million, at this point. Besides the economics of it, youre also dealing with a limited supply and demand thing. People will buy it if the economics does not make sense. Who it will be will be somebody with a lot of money and somebody you can pass the nbas of adding process. I wonder about the heightened scrutiny that someone may be under when they purchased the team from sterling. While you can potentially force an owner to sell a team, can you force an owner to sell the specific individuals. This has come up in conversations i have had. It is very likely that the could be some mystery bid or somebody that Donald Sterling is comfortable with, who he trusts, who hasnt said something about him in the press. One of the key overlooked issues in this story is he going to sell to people who he doesnt necessarily now . It is a question of whether the nba will be obliged to give him any say. That may be a condition on which he can go more easily. They also might try to say, youre banned for life, you have no say. This is what youre doing. I want to bring in christopher caldwell. He wrote about this topic. It is going to be hard for the nba to discipline mr. Sterling without establishing principles of draconian justice thatll rim a fight inconveniently for other personalities in the league. Sort of what you were talking about. It is hard to tell people what they can and cannot do. It is a very slippery slope. Call for racism or indecency we have heard in the nba. Lets start deposing everyone who owns a stake in an nba team and find out. These risks can blow up. I think the lawyers are very smart and will prevent it from dragging on and getting to public. That could stir them to want to pursue it. Thank you so much. Who will buy the clippers . It seems like a question of the year. Disappointing economic data. We will dive deeper into what has gone wrong. The u. S. Economy may be picking up speed, but the rest of the world is not keeping pace. Economics editor Michael Mckee has more on what is going on. Had the growth area issue, china, what is ringing stocks lower today . It is the ongoing story of chinas slowdown. What they do have is showing signs of slowing down. Today with the purchasing managers index, coming lower than forecast, and showing contraction for the fourth month in a row. 30 of 31 provinces missed their estimates. Growth is coming in below the partys target. Officials are promising brought stimulus. You will not see a big major Growth Stimulus Program out of china. We saw the reaction in the asian markets. Sold off. Both. All they tried to make it sound positive. 0. 8 . Keeps the ecb in play. Everyone is wondering whether they will take some sort of further action. What is the correlation between stocks in the u. S. Now or my grab and this from someone what is the correlation between the stocks in the u. S. Now . We see a divergence between the future and what happens at the end of the day. It is really china, what is going on in europe, and the uncertainty of the ukraine hanging over everything. Andriday, jpmorgan came out said we will see trading fall by 20 , trading revenue fall by 20 over the next year. That is weighing on the market as well. All of theig deeper, reading over the weekend was how things were not good. We finally get good news and Everyone Wants to take it is bad news. Lots of things impacting futures here and in china. Thank you very much. We have the top 10 trades. We will have those after the break. Keep it right here. Welcome back. I am alix steel. In for betty liu. Bloomberg television is on the markets. Olivia sterns has the latest on futures. Futures are pointing to a lower open on the market area and it looks like the escalating are concernskraine among investors. We have disappointing numbers out of china. The fear of a slowdown coming out of the second largest economy in the world to rid we are coming off highs. The dow hit a record high last week. We will be on the markets again in 30 minutes. Lets count down with the top 10 trades. Olivia stays with us. Julie hyman joins in. Bank of america. Warren buffett is confident they will overcome an accounting mistake. Number nine is facebook. Nuven video metrix are coming video metrix are coming soon and will be available. Dyna corp. Regulators have fined the orp y sina c regulators have fined the company 815 thousand dollars for unhealthy and indecent content. Twitter. Shareholders are holding onto the stock. Stock will become eligible for sale tomorrow. Is. Umber six ariad pharmaceuticals. Said the potential upside is dramatically lowered. Nokia plans to spend 100 Million Dollars backing companies that develop intelligent hard technology, joining the likes of elon musk and google. I am looking at jpmorgan. The u. S. Bank says that wall streets trading slump has deepened and could last until the second quarter. This is according to a new regulatory filing. Pfizer reports firstquarter profits that the analyst estimates. Pfizer is trying to buy astrazeneca for one of the biggest deals ever. It was not able to do so now because of the rules the surrounding its offer. B e aerospace. No decision has been made. Your number one stock to watch, target. Regain is working to loyalty. Will now serve as the interim ceo while they seek a permanent replacement. We see the opening bell. We are going to go to the call on the markets. We will bring in stuart freeman. He is bullish on the stocks. A good morning. Job did you make of this number on friday . Positive numbers up front, but when you dig deeper, we does not going up. People leaving the workforce. What did you think . Is a positive. We are seeing job growth. We are seeing jobs coming up and out of the hole. We do not have the participation we would like to see, but it is growth and as we look forward to the initial claims numbers, our work will continue to go lower, which is more positive for more modest growth in jobs this year and next year. S p trading near record high, do you have a price target . We came into the year thinking we would have a more targete market, our right now is 1975 to 2025 on the s p. We are looking for 118 in operating earnings. That is up about 6. 7 in earnings for the year. Aboutquarter earnings of 7. 5 . We are on target for that hundred 18 right now. You have been looking into earnings, what have you found . Wewhen you look at earnings, heard some talk about how much we have seen earnings rise. We can look at how may Companies Meet or missed analyst estimates. Usually we see a figure of two thirds are better. That has been pretty consistent. Something we talk about frequently is when you see Companies Beat consistently because you have a game in place for Companies Give guidance and analysts underestimate the earnings, how do you get a sense of the real quality and how good are the earnings in actuality . I am curious how strategists get at the meat of it. How do you measure what makes good earnings . We have seen earnings come down. Weather. Ouble with the into the reporting season, when it came along, we were at 71. 5 outperforming. What was the number . How broad was it . It was about 7. 5 . Earnings season is over. How broad was it . For every 2. 6 companies were up in the s p, there was one that was down. It is a little less than the average of last year. It was better than the average of the year before. This part of the cycle, and is not a bad number. It will be the continued improvement that you are noting. ,ou happen to like the cyclical but olivia has been looking on the bull case on utilities. You talk about expectations. Utilities has blown expectations out of the water. This is year to date stock performance. 12 sinceup nearly the start of the year. The s p overall, up 1. 8 . Consumer discretionary is in the red. Companies are paying out dividends above where the tenure trade is. If you look at what theyre doing, they are driving momentum. Bottom line forecast, s p overall came in at four point six percent. Energy is lower. Financials, upside surprise. Utilities in the First Quarter up nearly 20 . That is how much they grew the earnings. Perhaps, not the time to be underway. Underweight. It was a good quarter. The First Quarter last year was really good for the place where investors went to hide, utilities, health care, consumer staples. That is what did well in the first part of the year last year. As investors became more competent in the marketplace, it was a cyclical market. As we move ahead, we will see cyclical earnings dominate. We saw utilities become more expensive in the First Quarter. We saw industrials become less expensive, discretionary is expensive. Basically, utilities were the underperformer last year. Investors moved to them during the pullback. A lot of cyclicals is where the hot stocks were last year. I think it looks a lot like last year. Ofwill have nine months outperformance from cyclical stocks and not utilities. Thank you so much, stuart freeman. Coming up, it is the battle between Procter Gamble and store brands. G is smiling at the latest developments. We have a behind the scenes look americas next base kraft. Spacecraft. P g is waging a new war in the. Olivia sterns is back with more the story. They have a history of fighting to uphold patents. What is the big deal about this crest white strips . They hurt my teeth. Better than going to the distant tenants de ntist . Such a big deal because it is such an enormous success for Procter Gamble. It was the largest Product Launch ever. Inventor of it compares it to the ipod and both crest white strips and the apple ipad made talk toing agents product of the decades. Y are a huge sales for sales driver for Procter Gamble. Been slumping. There is nothing that Procter Gamble can do about that. Suing asuming Company Called cleo. They make generic teeth whitening strips that are sold under the store name brand. It is a very attractive competitive product. Cleo is being sued. Target pulled them from the shelves. This is despite the fact that a judge found in favor of cleo. You think, why is this such a big threat . This is the point. This is part of the aggressive strategy to use lawsuits to protect their patents. 40,000 patents. A lot of people accuse them of being patent trolls. Had thethe 1980s, they famous diaper wars. They sued kimberlyclark. Cocacola, and now the next target is whitening strips. Thank you. We appreciate the update. Heres a look at the top tech stories. Climbed into the top of the box office ranking. Amazing spiderman 2 is the sequel to the 2012 spiderman. Revamp at movie zone. Movie phone. Timesn still find movie and buy tickets, but it will also be a site for tv show times. A shakeup at sap. Their longtime technology chief is leaving. That is three weeks before Bill Mcdermott takes over as the companys sole ceo. There is a new shuttle about to take flight, but nasa is not making it. Private companies will be. Theyre launching a competition to see who will be creating the next space shuttle. Bloomberg got a tour with ceo elon musk. The first time we were racing into space, it was about national pride. This time, it is about money. The International Space station is a near zero Gravity Laboratory dedicated to research. The end of the Shuttle Program world with only one way to get there russia. But it is embarrassing the United States has to bum rides from the russians. Taking flight. E nasa will not be making it. Private companies will. We are building this in anticipation of a market emerging. Nasa is hosting a competition to build a spacecraft to shuttle humans backandforth. That contract will be worth billions. Spaces likel commercial aviation was back in the late 1920s and 1930s. It is being enabled by the government, but it is going to take off. There is competition and competition is good. Spacex,nders boeing, and sierra nevada. The stakes are high. Multibilliondollar aerospace companies, each determined to win the contract in order to become the leader in the emerging space industry. Nasa has been outsourcing work to private Companies Since the start of the space program. Theythis new contract, become the client instead of the boss. With private enterprise assuming all of the physical and financial risk. Every spacecraft we have flown has been built by a commercial company. This is another way of procuring that spacecraft. I am convinced we will have a reliable spacecraft when the time comes to sign the contract. The more we test and push exploration, smarter and better we are going to be. To continue to go beyond what we currently know. Tune in to bloomberg tv on wednesday night at 9 00 p. M. Eastern as we take a look at the next space race. We will have an indepth journey through the booming business of space expiration. A crackdown on russia continues. Over the past few years, tax havens have been pulling in money from Russian Companies trying to lower their tax and keep assets safe. These could be the key to to pull backtin from ukraine, but only if they agree to cooperate. That strategy. How will this work . Right now, the way it has worked so far is that the passes sanctions and the members of the European Union sign onto that. The question is whether these countries, were a lot of russian corporate assets are located, like luxembourg, netherlands, cyprus, and switzerland actually want to do things on their own, do things that are more severe than those things. Hat is not considered likely what happens of these tax havens get more aggressive . The obvious 1 it is complicated. Owner of the energy , he was on the sanctions list back in march. Despite its origins, treating russian oil and gas is actually a dutch company. Of a branch in geneva. That is an obvious example. Other examples would be. All of the big Russian Companies use some version of structure. Business d lose were they want to do that . There is a lot to lose. Theseality is, some of countries are members of nato. Whether the security interest of the whole are threatened by russias continuing moves in ukraine. Where is russian money most in . That is a complicated question. It seems like the biggest Russian Companies use similar structures as dutch operating companies. Cyprus and the netherlands seem to be the destinations of choice. Some of the money has since gone to other parts of europe. We do not know that right now. Thank you so much. We appreciate it. For in the loop. Tomorrow, tune in. Sheldon adelson will be in the loop with an exclusive interview. Withll cover the business the 10th wealthiest man in the world. It is 8 00 a. M. Eastern. Have a great day. Bloomberg television is on the markets. Lets get you caught up on where the markets are trading right now. Stocks are lower following last weeks gains. Increased tensions in ukraine are some causing concerns among some investors. Chinese manufacturing contracted for the fourth straight month. Both of those points are perhaps weighing on the markets. The s p still up. Are trading near the alltime highs. Investors are trying to figure out whether this bull run will continue or if we are due for a correction. Tom dumarc is calling for an 11 correction. For more on the possible form, i am joined by joe. Him, what has to . En for the s p 500 to close without falling below 1884. Today, we are down pretty big. His principles are still in place. The numbers are moving targets. If there are disco days of strong closes in s p, we could days1 if there are two of strong closes in s p, we could see 11 . He did make a similar prediction in spring. He did. In early february, he made a similar prediction. That did not happen and there was an eight percent rally in the gauge. Of people put a lot of stock into what he says. He has shown in the past and that he can predict inflection points in the market. How big is his following . Our story did well with him. People want to know what he has to say. He has nailed a couple of those in the past and people hang onto every word that he says. It is all technical or does he look at any other macro factors . He does not look at fundamentals that much. He looks at historical trading levels, historical highs and lows, moving averages, things like that. Fundamentals as well. He thought if there was a good number in payroll on friday, we might see the high, but because was notconomic number as good as expected, i do not think that happen. What to other investors say . Theres a guy named jeremy, an investment strategist that called the tech bubble in 2000. He is projecting the s p to rise to 2250. He think that will correct about half of that level in late 2016, following the president ial election. That would be a huge move. He called the tech bubble. I think at 2250, that overextended level in equities would be around where we were for the tech bubble. Those are two of the big guys in the market that like to make these calls. For more, you can go to bloomberg. Com. Thank you for joining us. That doesnt for on the markets. E will be on the markets again in 30 minutes. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. What all the consolidation means for the industry and for consumers. Saying goodbye to the irs. Companies opting out of the u. S. Tax system by incorporating overseas. Celebrity smack down. The biggest brawl that escalated on market makers. George clooney versus steve when. Good morning. Welcome to the new week. I am Erik Schatzker youre watching market makers