Lot of sleep last night. Equities have sold off in the last week. Equity futures are again in the red. Jointing cks are joining the 20 club. These companies have seen stock 20 . Ed wendy percent more on the markets, i want to bring in mike reagan. What is going on . This got us all by surprise. It was intact stocks and now it is broader. Stocks and now it is broader. Early march, late february, we saw this rotation out of the high valuation momentum stocks and rotation into boring, traditional stocks. Etfly, the industrial brought in the most inflows ever since it was created. That rotation last and for a while. We have seen more selling of the high flyers without as much rotation people are getting out, basically. Is this the start of a meltdown . It is hard to say. Goldman sachs but a firm, precise number on a chance of a 10 correction. He said there is a 67 chance. I dont know how he gets that number. Apart from that, he expects the market to close up a little bit. We could see a real correction between now and then. People have been waiting for that. Saying this is the washing out we needed in the market. Are we expecting to see another big selloff today . It is hard to say. Pretty flat market right now. Earningsews is alcoas after the bell. It marks the start of the earnings season. Earnings are expected to be flat. That leaves a low bar for companies to be. Thank you so much. Back in washington, the white house continues its push to reverse income inequality. The president will be signing to executive actions later today to increase transparency in federal contractors practices. So mattingly joins us. What will these executive actions actually do . Iswhat you are seeing today something the president can control. Federal contractors. He is putting new restrictions on how they can operate. This executive order this president ial memorandum will direct the department of labor to collect information and data on Pay Practices, broken down into race and gender. Trying ent will be he will sign an executive order order that will bar federal contractors from gag orders. Employees are not allowed to discuss pay. This should add transparency to the Pay Practices of federal contractors. Pay they see potential disparities, the hope is that they self correct them. How closely is the white house cooperating with Senate Democrats . They are hand in glove. The senate is starting their own move on an equal pay measure legislatively. Harry reid is bringing that to the floor today. Republicans feel like these proposals are purely political. They feel like these are show boats, show initiatives. It is not about equal pay, not about trying to shrink income inequality gap, it is about trying to score political points with parts of the countries that the white house and democrats will need in november. The white house pushes back heavily on this. That is why you do not see anyone coming to the table to negotiate. The white house is urging women to sue employers for wages from a nation. How big of a Chilling Effect is that going to have on employers and businesses . This is an issue the white house has been dealing with and sparring with business interests and themselves and democrats sent they started since they started with the Lilly Ledbetter act in 2009. That businesses and republicans have a problem with is that they think all this does is open the door to more lawsuits. This is not necessarily productive policy. It is not something that will squash disparities that are there right now. Economic officials point out two things. On these executive actions today, this is about transparency. Shunning a light on Pay Practices, forcing people to self correct. Issue the department of labor will use this for their own enforcement. It might not have to do with lawsuits at all. If the federal government sees disparities, they will act on their own. Thank you very much. I want to stay with jobs. The Senate Passed a bill to expect jobless benefits to 2 million americans yesterday. House republicans are showing no signs that they will move ahead for this legislation. Joining me right now is roger altman, chairman of ever core. Roger, i know that you have advocated for extending these jobless benefits. Do you believe this has any chance in the house . It is certainly uphill and the house. Most people think the answer is no. They should be extended. A lot of people misunderstand this issue. It is being debated entirely as a matter of social justice. Everybody has a different point of view on that. I think it should be debated as economics. Live inmericans families which are in 60,000 per year or less. Income hasehold 52,200rom 54,000 to right now. Theres a tremendous swath of american citizens, a huge percentage of the country, which is suffering declining incomes. They in turn have no purchasing power. It is not just a matter of social justice. The social justice argument is very strong. But i think this is a matter of economics. We will grow about 3 this year. Better than we have seen during the crisis. That is really not a great growth recovery rate by historical standards. One of the reasons we can do it faster is because we have a tale of two cities in the consumer sector. Extending those benefits will help close that gap, as you describe. Not the only thing we should do. I know you advocate for other measures. Republicans are saying, we will extend those jobless benefits. But we want to pair them with job creation measures. One of those put out this improving the keystone pipeline. Should the democrats compromise on that . That is a very difficult and contentious issue. I dont think it is a big issue in terms of energy policy. I dont think it makes a huge difference, whether we approve it or dont approve it, including environmentally, i might add. If i were president obama, i would approve it. But i dont know the answer to that. Whatever we can do at this point to create jobs, a big infrastructure initiative, it is a question of how to pay for it and administer it. I think we should extend benefits to the longterm jobless. I think we should raise the minimum wage. I think we should not have cut food stamps at the end of last year. This large sector of america, at least 40 , that are suffering declining incomes and cannot spend. Two thirds of our gdp is in consumer spending. One reason we cannot grow faster than 3 is because that Consumer Recovery is limited by this sector of the population which is doing so poorly. Do you support the president focusing on other issues of the labor market . Focused one extending jobless benefits and raising the minimum wage. They are also talking about closing the gender wage gap, making pay more transparent among federal contractors. Are these just side issues . Are these issues that they andld put on the background focus on key once to get republicans on board . No. We are in an age of severe gridlock. Impossible to pass anything. If you are in the white house and you are faced with this gridlock, you would do anything you could to try to address income inequality. The president said it is the challenge of our time. And to get some improvement in the job market. You would do anything you could to get movement,. Stay with me. Altman, the former deputy treasury secretary under president bill clinton. Vercore, jeffre christensen is running for the new york state assembly. If he makes it, he has plans to push for a higher taxes. He was once a jpmorgan derivatives trader and work for Goldman Sachs. He said he is not angry at the barons of wall street, of which he was one. He is worried about the other side. Stop laughing. General motors facing a massive recall of 7 million vehicles indicated that work on those cars would begin on monday. The instructions to Vehicle Owners say that beginning april 7, parts will become available for the six affected vehicle models that have been recalled. Zero gmis morning, dealers in the tristate area actually have those parts and cannot begin those repairs. Matt miller is joining us. Is that a surprise . I will explain what gm says in a second. We have a whole team of people calling around. We have called about 50 different dealerships. None of them have parts. A lot of them said, the parts are not even in the mail yet. It is not like theyre going to be here tomorrow. It is going to be a while. It may be that General Motors received them over night or early this morning and put them in the mail. They were not there yesterday. There were reports that there were in the wall street journal. I dont know where they got their information. General motors said, we always said beginning the week of april 7. You have to give us until next sunday before you can hold us to our word. Is that legitimate . I guess so. Is an incredibly high profile case and really important for gm to get right, they do not necessarily need to rush it. As mary barra testified earlier last week, as long as you take your keychain off the key and you do not have anything that is going to hit it, you should be ok. She said she even let her own son drive a chevy cobalt with this defect as long as he took the keychain off the key. Drive the car with the keychain off the key. It is going to take a while to fix all of these cars. It will be about six months. It will be until locke tober until they are done with this. They are not in a super huge until it will be october until they are done with this. They are not in a super huge hurry. They need to tell the truth about everything. Thank you so much. Coming up, deal or no deal . You are watching in the loop live on bloomberg television. We are back with roger altman. It is something of a bloodbath on wall street. Stocks have been doing very well. I am talking about the exodus of executives from firms. Stanleysen morgan former head of equity sales become ceo of an Asset Management company. Cavanaugh left jpmorgan to go to carlisle. A senior banker said to me yesterday, it is almost as if, is there anybody good left at these banks anymore . As someone who competes against them, im sure i can assure you there are lots of good people. This outmigration has been occurring for some time. We knew this. The events of 2008 changed that dynamic and accelerated it. , so many of the largest institutions, the universal banks and bank holding companies, continue to be in transition. That as a result of the stress test results and the uncertainty those created. Is a sense that these institutions are reconsidering their Business Models, that they are under a great deal of regulatory pressure, that it will be more difficult than it has been in the past. So, some of the talented people have begun to migrate out. Some are going to private equity, some are going to hedge funds, some are going to politics. Gus christiansen. Some are to independent firms. It has been going on at a high rate since 2008, not starting last week. Has accelerated . Does it feel like it has accelerated . No. There may be a few big headline guys like cavanaugh, but i do not think it is accelerating. If we step back and look at the a market as a whole, you are seeing and outmigration of talent and business from the largest platforms to the independent firms. A lot of the independent firms are much larger than they used to be and there are more of them. Not a development as of last week or last year. It has been going on for five years. When you recruit, whether it is middle managers or senior down to more of the junior sell on is your your banks different than it was a few years ago . It honestly is not area im not sure if it would be for any of the leading independent firms. Our arguments have been the same for many years. They honestly have. They have to do with a very different model that a firm like ours has. It is not for everyone. Some people think that some of the largest firms that have become so large. Others think they are so much in flux. A more focused Business Model is more attractive to some. It is not for everybody. There is a focused migration. Stay with me. We will talk more. Coming up, leading the way. They company set the pace. You are watching in the loop live on bloomberg television. Good morning. Bloomberg television is on the markets. Scarlet fu has a look at all that is selling. We look to be mixed right now. We are mixed. Futures are little changed. Nasdaq futures doing a little better than dow and s p. There have been no significant Economic Data of note today. Optimism rising in little more than economists had forecast. Alcoa is unofficially kicking off earnings season later today. The United States, emerging market stocks continue to move ahead. Up emerging markets index is 0. 8 . The dollar is weaker this morning, particularly against emerging market currencies. , by prices are moving up more than 1 . That is a run date 2 week high. New 2 week high. Thank you so much. Here is a look at our top headlines. Samsung posting a second straight drop in quarterly profits. The biggest maker of smartphones blamed weakening demand for the slide. They are counting on the fifth version of the galaxy phone to boost sales. 9 billion in damages over a diabetes drug. The two companies had the cancer risks of their drug which is used to treat type two diabetes. Likely bewill reduced. Tensions are mounting in ukraine. Several hundred protests of prorussian demonstrators seized a government demonstrators and said they are forming an independent republic and demanded a referendum for secession. The u. S. Said is it it is evidence that the testers may be paid agitators. Only four months into 2014. It has been an extremely busy month for deals. Bankers are sings a breakthrough from the flatness. Cristina alesci mama stirs this market. Market. Ors this is this a turnaround, perhaps . A lot of optimism. Not surprising. Bankers are paid to be optimistic. We did see a pretty large bump up in the value of deals getting done. We have seen a lot of big deals. If you look at the number of deals happening, that is flatish. Sometimes bankers can make more money doing lots of little deals than one big one in the same venue. Both metrics are important. I spoke to the global cohead of m a. At Goldman Sachs. Bigealth care has been a driver. We have seen a takeup in consumer activity. If we had three or four engines running, that would be fueled to a recovery. Industrials are likely to see activity. There are still digestion the needs to happen. If you go back over long period of time, financial have been a big driver of m a. Now come on the industrial that, we have already seen volume will be higher this year. A mergereen build as of equals between two large cement makers, making the largest cement maker. Governments are elected to see any banks get any bigger here in the u. S. Maybe a different story in europe. Last year started out with a lot of optimism. By the time we got to the end of the year, when you look at the value of deals, they were at the lowest level as a percentage of market capitalization since the early 1990s. He have to be somewhat cautious about being too frothy or optimistic about the deals going forward. There is another thing that bankers are worried about. Other then some geopolitical issue, the biggest risk to mna recovery is likely to be regulatory. Youou are in a board room, do not want to be in a position where you announce and you do not get it done. The Regulatory Environment as concerning for people. Hang on, i have got to get rogers take. On this interview. Do you agree the biggest risk is regulatory . Was a greatat report. Bankers are not paid to be optimistic, they are paid to be productive. To me, the big question is why has notsible turn happened sooner. People thought 2012 would be above 2011 in global m a. People thought 2013 would be above 2012. Too soon to judge whether this year, even in a moderate way, will break out. What was holding it back . Fundamentally, uncertainty. If you step way back and think about this in historical terms, what makes for m a up cycles . The answer is the perception and the reality that Business Conditions are improving, Strong Equity markets, robust Credit Conditions and Interest Rates. Just plain confidence. Those items are in place pretty well today. They were relatively speaking and place a year ago. They have improved a bit. The u. S. Economy will grow 3 this year, last year it grew about 2 . We have a slow improvement. It is too soon to say we have a big upsurge in deals. Good but quarter was there have been expectations over the last two years or three years that have not materialized. We will have to wait and see. You have to measure deals on dollar value on the number of transactions, each one together gives you the full picture. The full picture of m a. They both have to be up for a strong market. What do you tell clients to get them feeling confident . That is essentially what it comes down to, the Management Team feeling confident. That is not the role of bankers. Bankers are not going to produce a level of confidence in management unless they already have it. Banker, speak for every i do not think any good banker goes in and says you ought to be confident and get over this hesitation. No, they know their business better than any banker does. They know there are look better than any banker. They either have that level of confidence in their own business and interests and expansion, or they do not. Havee thing betty and i talked about is the idea that some young Tech Companies are not using bankers, like facebook. Those you get to companies . How do you successfully convince them that your services are valuable . Longat has gone on for a time. Not every single deal around the world involves bankers. It is not new that a deal here or there would not. It is very antiestablishment to say i will forgo bankers. Some companies that have made a thing out of doing deals on their own. There are some companies that have good deal technology internally on their own. I do not think that is a big trend, though. Of course you would not. I think the data would show it is not a big trend. It happens. There is nothing bad about it. The world does not revolve and should not revolve around bankers. Even though some people think it should. Have bankers then behind the christinas point, on understanding the issue and cultivating those relationships with Tech Companies . Im not talking about google and facebook. It is the younger companies. First, there are some bankers, p