To use a private email and said yesterday she broke no laws. The email she has turned over after screened for Sensitive Information. The upper hand against Islamic State history mrs. They captured account a town and militia men are now gearing up to retake it itself. The cia reportedly played a key role helping the Justice Department is part of our lives between cia and domestic lawenforcement. It uses an airborne device that could locate specific cell phones. The dollar hit a 12 year high against the euro. Up 22 against the currency here that will eventually make things cheaper. A factor in yesterdays steep decline in the u. S. Stock market. And a billionaire investor has work for the fed. Jeff predicts the central bank will have to reverse course if it raises Interest Rates this year. The cofounder says the Federal Reserve is intense on being a blockade and is worried the fed will repeat mistakes. In pro football, one of the biggest checks is going to a defensive back who is leaving the super bowl champion patriots and coming back home to the jets on a fiveyear, 70 million year. Those are your top headlines. In a good day and the stock markets. The three main benchmark indexes fell marking the worst day in months for the s p 500. It appears markets are in the mood for a good oldfashioned tantrum. Mike is here and one of the catalysts come the reason we use the word tantrum, a temper can trim, a cliche from last year. Is it happening again . The jobs data on friday as well as speeches from fed officials like Richard Fishel yesterday, are really having people push forward the timeframe when they think rate increases in the middle of the year toward the end of the year. That combined with stimulus actions from the ecb. There is that overseas earnings will be heard as a result. Results back. If you dollars a barrel strengthen the dollar will exacerbate any declines in oil the dollar is a big factor as well. Matt are you hearing other analysts and economists saying this fed will be is being a blockade . They will start racing and then reverse course. They stopped raising rates and began lowering about six months to a year later. He is the first one i have heard floated the idea. Matt what are the forecasts for how far this fall could go . You mentioned david bianco. Hes keeping the year and forecast pretty much unchanged at 2150, about a 5. 2 gain from yesterday. On average, the main wall street strategist is looking for a close up about 9 from yesterdays is closed. For now, it looks like one of these tips. We have phone in the market of three steps forward and one step back. We have seen the dips regularly over the years. The question is what is the big correction everyone is waiting for . Only time will tell. Matt we will have david bianco on the program at 9 00 to hear it you do not want to miss that. He is calling for a 9 drop if the fed raises rates. Thank you very much. We will surely be standing here offset with your pad ready when david bianco joins us. Annual reports from the fed yesterday in a second round in a stress test. The states the stakes are particularly high. Michaels his new job could be on the line. Michael moore joins us. First off, lets clarify the fact that all these banks have actually passed the stress tests for the First Time Since 2009. They all have sufficient capital according to the fed. Quite yes theyll pass the numbers last week. The questions today are, will the fed approve the capital plan . Let them give the Access Capital back to shareholders citigroup pass on the numbers with the fed says, we will not pass you because we do not like the way youre going about this. Matt citigroup has spent couple hundred Million Dollars running models. Michael is pretty serious about not only passing the test, but also giving money back to shareholders. Bank shareholders have been waiting for a number of years to see the payout ratio go up. The thought is if banks of the new utility, they need to pay dividends like utilities as well. They so far have not been doing that. Michael really diving in, trying to make sure they are able to give more back and prove to the fed they have a handle on all the businesses in countries. Matt wells fargo aced it by two percentage points. Goldman sachs is squeaking by. Will they pay out . We are waiting to see if they have to change the payout request or change the structure. One thing about Morgan Stanley a lot of their losses are in the early part of the cycle so some analysts think goldman can restructure its request so they pay more in buybacks later in later times and not in the early part of the test. Matt you can watch bloomberg for coverage or go to our website at bloomberg. Com. Thank you for that. Hillary clinton defended her use of a private email out and server while she served as secretary of state. She faced over 100 reporters yesterday. She maintained the account was used for reasons of convenience so she would not have to carry two devices. She said security was not an issue with this. Hillary clinton the system we used was set up for president clintonss office. It had numerous safeguards. On property, guarded by the secret service. There were no security breaches. Matt jennifer was at the u. N. Yesterday and joins me now. Jennifer, thank you. I wonder about the one device issue. I am sure you have more than one email account on your iphone and i have at least two. Why did Hillary Clinton only managed to use one . It goes back to the technology of late 2008 and late 2009. It was more complicated, especially with a government account. Various people i have talked to have set on twitter in the last day that they could not use their white house email on their personal phone, that they needed to have a blackberry that needed to be separate from their work email. She is a seniorlevel official so it seems likely that would be the case for her and maybe it would have been different by the time she left the administration, but she already had a routine down from the beginning. That seems to be may be what she is saying there. Her office has not asked wayne that many mortgage help. It seems like the most likely explanation on that. Matt all the technology existed for people at apple but maybe not there. It is still very reliant on blackberry and was much more so a year ago. Matt i do not think a lot of people delete personal emails, especially those that would be meaningful for them in the trippy about be the focus of republicans going to award. Click yes. It is an odd thing to delete 30,000 of your personal emails. I decided i could not do it because i never knew if i would actually need some of those emails. To think that somebody like Hillary Clinton did that is kind of wild and it seems to lead republicans and other clinton credit debt clinton critics and knowing the history of secrecy and scandal, to wonder why she deleted these emails, what was in them was it just because she did not want her personal life to become even more tabloid fodder than already is or didnt have to do it missed behavior with the Clinton Foundation for she was talking about benghazi . Matt jennifer, thank you so much Bloomberg Politics reporter. Coming up, we will hear from one man timothy massad, chairman of the commodities futures trading commission. Stay with us. Matt a look at our top stories this morning, European Central bank expanded asset purchases and will push euro area inflation toward its goal according to the ecb president mario draghi, who thinks an economic recovery is on the horizon. Today in frankfurt, he talked about the start of quantitative easing. Evidence points to further improvements in economic activity. Ecbs one point trillion dollar Buyback Program there seeing if banks and companies will come rush cash into the economy. Seven marines and watch oh soldiers are missing after a held after rash in the florida panhandle. They were flying in heavy fog on a Training Exercise on a remote beach. Rescuers reached the scene earlier this morning. The names of those on board are currently being withheld. A former j. P. Morgan chase executive is invading the world of virtual currency. The ceo Digital Asset holding. The Startup Company plans to use bitcoins for settling asset trade. Planning to cut jobs, up to 2200 of them in sweden. Part of a costcutting plan improving profitability. The Company Wants to save 1 billion over three years. Those are your top headlines. Senate republicans say sanctions against iran have worked in the past, why not try them again . They are defending a controversial letter they sent to iran. The letter warned army leaders that any nuclear deal they made with president obama could be overturned once he leaves office. Mitch mcconnell says the republicans simply fear the president will make a bad deal. Mitch mcconnell to make a deal with one of the worst regimes in the World Without any congressional input leads you to believe he will make the deals we all fear he will make. Matt finance leaders are at boca raton right and betty liu is down there with them. The fia International Futures industry conference. Betty is joined by tim massad. Betty great to see you this morning. I know you will deliver the keynote a just and a little over an hours time. You have got 1000 of the most important people you could imagine in your field in the exchange world. What will you tell them . Tim i will reveal what our priorities are in the coming months, including continuing to look at our rules and make sure theyre working for the commercial and users relying on the markets, finishing the rules required under doddfrank and looking at issues like Cyber Security automated trading. I will also spend time clearing household we have done a lot of work in that area and well do more and i will speak some about that. Betty there is a lot of debate about trading and whether the u. S. Rule you the u. S. Will have to get closer to what International Requirements are right now. Where are you seeing the move on that front . Tim that is a very good question. The rule is a very important piece of the overall framework airline committed to harmonizing the rules of ross borders. We have had good conversations with europe and japan and im hopeful we can get the rules to be substantially similar. They will never be identical, but i think we can hopefully bring them close together. Betty are they moving closer to Global Standards . Tim i have said i am prepared to be flexible on some issues in order to get there. Betty there has been a lot about market manipulation. We have seen the cases around raking foreign currency rates. How do you restore the confidence in various benchmarks . Tim enforcement is one of our biggest priorities all the time to we dedicate a lot of resources to it. We have brought significant actions against the largest banks. Were trying to manipulate Foreign Exchange rates and we will continue to bring those kinds of cases if we see them. We have brought cases, a new way given the increases in electronic trading. You do not really intend to transact. We have put people behind bars working with the Justice Department. If you look at our cases, there have been a number of things were people who have tried to pursue manipulative strategies have ended up in jail. Given the increase in automated trading, it is certainly something were paying attention to. I think we have very good markets in this country. They have a lot of integrity and i think we have a lot of good controls in place. They are the most dynamic innovative markets in the world. Our job is simply to do all we can to keep them that way. We are about five years out from doddfrank and have put a lot of regulations in place. Are you satisfied with where we are in the rules . Yes, we have made a lot of progress to bring the overthecounter market out of the shadows, create more transparency, create more reporting and emphasized Central Clearing that has been very important. How much of the trading should go on regulated exchanges . We set up a framework for that and a lot has moved on to those regulated platforms and i think we will continue to see it. People are still getting used to that and it is still working it is still getting worked out. It is more about which products are suited to that type of trading. I think we have major mendes progress in all these areas but the main thing is we are focused on making sure the markets still work for the businesses. Betty thank you for joining me. Tim massad. We will be back in just two minutes. Matt you are watching in the loop live. I am matt miller in for betty liu. We are keeping a close eye on shake shack today. The shares of the burger store have doubled since day right. It is set to deliver its first Earnings Report public to the company. The newest fast fast capital dining craze. I want to bring in the chair of independent ratings and analytics firm. The most interesting of all is shake shack because we all love to eat the burgers. What do you think about the Earnings Report . For the most part, when companies go public, the banks time it can have a feeling they will have perfectly good and consistent numbers and beat expectations and the stock will likely perform quite well. Classic was priced preipo and has doubled since then. It is a little off where it broke but has held up better than i think the step this thought it would. The skeptics thought it would. It is a very strong rating of a zero to 100 scale. It is certainly the highest of the companies that have come out in the food and Beverage Market over the last couple of years. We think highly of the company. It is a very efficient as this. The real challenge for them Going Forward is how well they can use protein proceeds from the ipo to carry out expansion plans and what kind of profitability they can achieve in those new stores around the world. Matt to your point, all of the gains came on the first year of trading. Maybe this will be some impetus for growth Going Forward. Lets move to vox, an interesting company. It is very popular, especially among the tech intelligence. It is basically a cloud anyone can use but is more developed and dropbox. They are competing against dropbox and google and microsoft. It is a competitive landscape. It has Collaboration Tools and is very enterprise focus. That is all well and good, but they still have a lot of major competitors and it is not as though that marketplace is some mystery to google and microsoft. A lot of money and Balance Sheets going after the same market. In contrast to shake shack it really had to go public because they did a private equity round in the middle of 2014 that carried with it penalties if they do not go public by the middle of this year. Their timing was probably a little more out of their hands than a typical ipo and there is more variability in their first Earnings Report as a public company. You can see things being better or worse. Will they make money . Not anytime soon. We rate them as a 23, a low rating. For historical comparison, 90 of companies that have failed in the past 20 years have felt filled a 40 or below. The Balance Sheet has Resilient Properties. They are not at risk of defaulting in the next 12 months, but they have a lot to prove. Matt compared to 85 per shake shack. Lets talk about pepsi. Etsy. It is like an ebay for people who make their own arts and crafts. That is also a very niche player. We rate them exactly the same as mock spear they have got more Resilient Properties so while they are rated at 23, the resilience factors in them can look more like a company in the 50s. The kind of Balance Sheet and the kind of cash they will have particularly on hand after the ipo means theyre also not in a risk of default in the shortterm. They are not profitable and are burning a lot of money. It will take a while before they can prove how the Business Model will be longlasting and efficient. They also, i would say, are probably an acquisition target down the road. The players who go into the stock when the ipo comes will realize there are risks of execution and competition and ultimately, this could be taken out by a larger player. Matt fascinating. Thank you for joining us for the chairman and ceo of rapid ratings international. I want to give you a look at the top stories we are following this morning to Hillary Eaton says she deleted 32,000 emails from her years at secretary of state. She says none of them are government related. She handed over another 30,000 messages from the personal account she used. She says it was more convenient to use a private email server but she told reporters she has broken no laws. Hillary clinton the server contains personalcare indications from my husband and me and i believe i have met all of my responsibilities and the server will remain private and i think the state department will be able over time to release all the records provided. Matt the state department is going through the emails to screen out Sensitive Information before passing them along. A key role in government spying on cell phones in the u. S. The agency helped the Justice Department developed technology to the spying was part of analyzed between the cia and domestic Law Enforcement agencies. The system uses an airborne device that can locate specific