We are watching remarks from janet yellen speaking at 915 9 15 eastern time. First, a look at our top stories this morning. Facing new pressure by the days end. Looking at pushing tougher collateral rules on the banks. Those need the ecb to stay afloat. The greek finance minister is meanwhile up the. To have fruitful discussion to confirm and will be yet another move in the direction. Thank you very much. Betty it will be able to make intelligent way Million Dollar payment due today. The price of oil is rising again. Intermediate trading advertised level this year. Some analysts think u. S. Companies have cut the number of active oil rakes to the fewest in almost five years. We will see whether Oil Inventories are rising when the report comes out. It that will be watched very closely. Agreeing to buy another drugmaker that focuses on treatments were rare diseases. The company says it will pay nearly 8. 5 billion for bio pharma of connecticut. Synergy the is developing similar drugs. They learned he flew downward for a minute for no apparent reason. The germanwings jet crashed in march and killed all 150 people on board. Incredible. For the first time, california is ordering mandatory water has to do with a drought. Anywhere from eight30 6 . Some of the biggest cutbacks are being imposed on wealthy communities that did not reduce their consumption enough. The drought is now in the fourth year in california. Those are your top headlines this morning. And come well get the latest read in employment in the u. S. Stay with bloomberg. What do we expect possibly from fridays government jobs reports. I want to bring in our chief u. S. Economist. Carl, what do you think . Karl carl we should be building. The worst is in march. I think we see a modest improvement but will continue to see these problems in the Manufacturing Sector due to the stronger dollar. That will be the key in the details of the report. Betty we were all shocked by how ugly the march number was what a downsize surprise it was. Nick was pretty confident we are going to get a 200,000 plus print. I want you to listen to what nick said about why he thinks this. Nick 80 has gone to College Educated workers. We are running out of those people are there is only 400,000 underemployed College Workers left to get a job. Past that, we talking about low level of unemployment for the group and perhaps were running out of employable people. Betty that was more him explaining why he thinks we should come down from their, but tax receipts by businesses, it looks like they were hiring. Carl what i heard from nick sounds like good news to me. The labor is always available when employers are willing to pay the go in rate. It is an important signal that labor inflation is finally starting to turn up in the economy. We should see evidence of the labor cost data last week at the employment cost index. At least were moving in the right direction where we are seeing income games. It is coming at a critical time for the economy where we can chalk up the export center for the cycle for the medium term here. An important engine to this point. The strong dollar changes the dynamic. Exports will not be a growth engine. It will depend on the industry and u. S. Households. They need to see stronger wage gains. Betty the stronger wage gain will that get some people already counted in the labor reports because they have given up . Carl that is the big bet the the question is the Labor Participation rates, another key detail to watch. The jobs report is just not turning the corner yet. We should not be looking at it to until we get to a neutral unemployment. When we get there, we will see the Wage Inflation the egg enticement for workers to reenter the wage will be better paychecks. We are not. But are getting there soon they somewhat nicolas is saying. Betty i was surprised by that number. 400,000 or so college age. Carl not surprising to may because if we look at the dislocations during the recession of the labor market, the folks at the bottom end of the spectrum with a lower skill level saw a much larger dislocation. If you look at the Unemployment Rate for people with a college degree, less than a college degree, the Unemployment Rate moved much more dramatically. Betty great to see this morning. Our Bloomberg Intelligence chief u. S. Economist. On the corporate front, we are watching shares today after the stock halted briefly on news the stock bloomberg broke the story last week that another would be buyer approached forcing it to hire Financial Advisors to field takeover offers. Oracle and now microsoft speculated a deal might actually make sense for ibm. Who better to discuss this than the guy who helped break the story, bloombert west editor at large cory johnson. Cory this is quite a deal. He who broke the story, the market value with zero profits. We are looking a lot closer now to 50,000. It is very interesting because it is a stretch for microsoft. A different kind of business. Microsoft made an emphasis that it wants more revenue in the cloud. Betty you mentioned oracle and you and i talked about it last week. First off, why would this make sense . You mentioned the cloud part . Would that be the biggest part . Cory it has got to be. They are selling similar products but for any company lets look at this. It loses money. The growth rate will come off a lot, growing at 38 year over year it is fueled by acquisition. It will suddenly drop this year. It will add about 1 billion of growth or 5 billion is suiting the assuming the analysts are right. When you look at the delusion it will hurt their earnings, it does not create a lot of free cash flow. And it will be diluted for any company to acquire. Microsoft is a bigger business and they have got a better Balance Sheet. They can do with some amount of equity as well. I think oracle is unlikely to do it because they feel like theyre beating sales for us. The market will add the same amount of growth the salesforce will add but if you look at what it will do betty who wants it the most . Cory ibm is also interested. Earnings per share by about 19 next year and they do not have the cash to do a 50 acquisition. It is to bake a guppy to swallow. For ibm, their Balance Sheet is already so stretched. They have limited cash resources. So it starts and from a competitive reason, i do not think oracle is likely to do it because they have artie got a salesforce doing very well and growing fast in the marketplace. Microsoft makes the most sense. Betty all right. Corey cory johnson, great to see you. Coming up, many Energy Companies in the red but getting a Second Chance at life in the debt market. We will hear more on this trend from distressed investors. David barse is the ceo of 3rd avenue management apparently will be back. Management. We will be back. Betty asking for lower sales. He told a judge he cannot come up with 7. 5 million. Fighting extra just into the United States. Prosecutors say he played a key role in the market plunge of 2010. Up sharply in the premarkets, a Company Posted better than expected Quarterly Results. Herbalife is in a running thatll with investor bill ackerman. He said herbalife is a pyramid scheme. The california Tech Industry pauses to remember a popular executive. David goldman was honored. The 47yearold ceo died in an accident last week while vacationing in mesko with the family. He was the husband of Sheryl Sandberg and she posted a note on her Facebook Page last night calling her husbands death and unexpected hell and the darkest and saddest moment of her life. Those are your top headlines this morning. In the meantime we are getting breaking Economic News on the job front. A little lighter than what economists estimated. Scarlet an increase of 160,000. A consensus among economists we interviewed was an increase of 200,000. A 189,000 increase for the month of march. This number is important because in the lead up to the big jobs report on friday, and this is the last major indicator that could shift expectation at least in the marketplace for the jobs number the employment number typically is underestimating the Labor Department number. Be consensus among economists we have surveyed is for the friday number to come at 200 thousand marking a big increase from the disappointing 100 26,000 number we got in a previous month. I am trying to pull a tough futures are doing now and we look at s p, dow, and nasdaq futures. Here is lower little bit following the adp numbers. And lets take a look of the dollar while we are here. Right about at session lows. Half of 1 . 5 betty. Betty thank you for more on the markets and where you place your bid bets among all the data, i want to bring in david barse the ceo of 3rd avenue management. David, the last time you are on with me was job stay and i recall you were like, i do not really look at this stuff. David alan krueger is far more impressive than i am. Betty when you see the data, which kind of seems inconclusive now, for you, does it make you say, if i was going to take a big bet, maybe i would weigh in a little bit . David it is a game theory. I did a little work because i was thinking you might ask me a question about it today. And i am wearing a pink tie and it looks good. They were expecting 200000 and this came in light. So let the folks like allen and others debate this now for the next few months and three years from now, you can bring me back on your show and we can talk about the companies we are buying today holding today, and that is what we care about. Betty are you worried none of that matters to you at all . David if something crazy had occurred that would change our general rhesus, we are bullish on the United States economy and we own good quality, value securities in our portfolios based upon that thesis. If something were going to occur with those numbers that changed the general direction, then of course we care. Betty i want to talk about oil and we spoke a few is ago by phone. You were saying there are interesting plays in oil. One of them was penny stocks. You are actually buying the debt of it. David we did. A specific security was recently issued. What has been going on, and there has been a lot of chatter about this since the price dropped, that high, 100. 5 billion highyield securities in the marketplace and the energy space. With the price drop, the bonds are at risk for layering. For companies that have the ability to raise new capital market, not for everyone. This is only for companies that have sufficient resources to be able to do this, but come in with second lien financing which is security we fought we purchased and provide the company with necessary liquidity to get it through the timeframe. Betty how do you know they will not going to . David there is a scenario that is not good where Oil Prices Drop even lower and stay lower for a longer time. That does not seem to be the case at least for what we know today. If you asked me about oil prices, wti is over 60. That is changing with some of the theses were. That is owing temporary and we are not banking on that either. At least there is some runway out there. This has now happened with a few companies and we see it as a model for a number of others coming into the market eventually. Betty would you buy equity . David no. The trade for us is an wellcapitalized Companies Like apache. Those companies have a different opportunity than the companys highly levered. Betty David Einhorn was at his own conference and he essentially slammed the entire shale drilling industry. Lets bring up part of what he said in his talk. He said these companies have negative economics and aside from a few choice david i read his Powerpoint Presentation and it was well put together. Entertaining. We were on the other side of one of his thats in the past. And he was not completely wrong there either. In this particular case he is speaking to a specific subset of what is going on in the fracking industry. He is not speaking generally about the market for oil and gas and companies. He is really focusing on the fractures the frackers and t he mother frackers. Most of these companies are not cash flow generative companies and he tried to compare them to businesses that are cash flow. In these cases, they are sending oil. It is not a cash flow story. Betty we will be back into desmonds and we will talk much more. We will be back. good morning. Im betty liu. Bloomberg television is on the markets. Scarlet fu has more breaking news for you. Scarlet oil currently just shy of the best level of the year p u. S. Companies are reducing the number of active rakes the fewest since september of 2010. What is a path toward 70 . Lets talk to the Senior Market strategist to joins me from cme. I first want you to give us a linkage between oil and what we see in the bond market. Which one is the horse and which one is the card . Pullback in the dollar index has played the biggest impact on crude oil. A lot of other commodities picked up as a result of that. I think you nailed it when he started talking about u. S. Oil production has probably peaked here. We are at the lowest level since 2010. That has a direct input on crude oil. Look at last and p are and we have been talking about this week after week here on bloomberg and we are seeing the impact of it now. Oil prices pushing through, 60. Scarlet what do you anticipate in terms of inventory numbers that will come out at 10 30 a. M. Today . We saw api come out last night and they expected the same thing. A buildup of one million. If we see another drawdown, now, it will be a shock across i think some of the Energy Markets here. If we see that drawdown anytime you see the negative number here, it will cause another layer and anyone who got shorted above the six dollar level, they will throw in that how quick the and you will see the price that up to the next resistance level. Scarlet what is the significance overall of this 60 level . We finally got past it. It is a round number but to what extent is it a temporary move versus one that opens the floodgates . It has got a couple of Different Things here. The fact that we broke above it, that was old resistance and now it is new new support. The countries will start waking up again. They are all the sudden profitable again on the oil production. It puts kind of a happy momentum toward a lot of Different Countries and companies out there as well. I think they have started to jump on this thing and said hey, this all market thing is alive and well and growing and prices could head up from here. Scarlet so the momentum builds upon itself is what youre saying to we have got to talk about saudi arabia. It increased output to near record levels in oil prices are rising. With the meeting about one month away from now the policy of letting the market dictate oil prices, is that vindicated . Quite yes theyre still doing the same thing here. Libya is a big producer of oil and the production levels have dropped down to about one third of what they had years ago. That is part of the recent you are seeing bread food as well at the highest level. Scarlet betty was just talking about david im ones criticism of the shell trailing industry i was wondering what kind of impact that has. Do people talk about it . What check what kind of shattered as that have . That guys a genius. He impacted companies yesterday. As far as cheryl shale oil is concerned, if you believe we have hit a production top on here, we will see production come down quite a bit here it may impact some drillers a little bit. They will be able to flip the switch on at any point in time. Investments have artie been made. The holes have been drilled. It is just a standing investment waiting for the switch to be turned. Scarlet thank you very much. Eddie, back to you. Betty thank you, scarlet at the news desk. The European Central newsbank thing here tightening collateral rules on those banks. Ecb keeps greek banks afloat. They will meet monday to discuss reform before it sends more bailout money. The greek finance minister sounds cautious. Quite it is important Good Progress has been made and solidified and it yields very quick, successes moves in the direction of reaching the remaining gap. Betty it will make its hundred 25 million a 200. 5 million payment. 225 million payment. Labor candidate ed miliband portrayed conservatives as the party of the rich. The latest polls show neither side will win absolutely so they will have to talk forming a coalition. Bmw rose better than expected profits. It posted Quarterly Results that todd to the average forecast of analysts surveyed by bloomberg. The company credits sales of its suv bmw with the worldss biggest luxury carmaker. A pricey picture to hang over your fireplace. The van gogh sells for more than 66 million in a new york city auction. The painting is called lovers lane and went to a private buyer from asia. Many of them have been going to those are your top headlines this morning. Twitter is helping to change the game of investor activism with one tweet a new generation of shortsellers and researchers are able to shred their views, wiping out billions of dollars in market value perhaps in a company. How do we know this . They tell a story, sort of. 136 public campaigns last year, up from 121 in 2013 according to a research firm. They are getting stronger and more public and they have got bigger megaphones out there. Still at us the ceo of 3rd avenue management. I was checking this morning and you are not on twitter. Why is that . Carl icahn is. He has probably got somebody else doing the tweets for him. Betty he does. You do not want to do that . Know, a place like a firm like ours uses, like writing a letter, which we want the management to see were not about using the Public Domain in order to exe