Probably still have to carry your luggage. What must be done to upgrade the mass transit . Hillarys headache. She has earned 12 million since leaving the state department. That puts her in the 0. 01 . Do the clintons still feel your pain headed into 2015 . You are watching market makers. I am Erik Schatzker. And i am stephanie ruhle. How was your weekend . Great. And how was yours . A little beach time for both of us. Lets get the top business stories from around the world. Ol operated by barclays has seen trading numbers plunge. Volume fell almost 80 . The High Frequency traders played a role on that exchange. Rupert murdoch may soon raid his bid for time warner. He may 1 have to raise the cash. He may sell off his assets for europes paytv to do so. Could be worth more than 13 billion. That would allow him to offer more cash to time warner shareholders. In the battle in gaza is intensifying efforts to negotiate a peace fire. Dozens of palestinians and 13 israelis died in the conflicts Bloodiest Day so far. John kerry is in egypt to draw them toward a truce. Benjamin says the offensive will Netanyahu Benjamin says the offensive will continue. More bodies are being retrieved on the crash site in ukraine near the russian border. The recovery effort has been chaotic and the government says the rebels have given investigators limited access to the site. Our abc news correspondent was there over the weekend. Now he is in the city of danyetz sk. What did you see at the crash site . We arrived for the first time on friday evening. It was very hard to get there. Very difficult road to drive on. The smell hits you before you even see it, what this novel combination between jet fuel and death. When you got there, it was a very grim site. Wreckage was still smoldering more than 24 hours later and nurturthere were charred bodies everywhere. Almost two days after the crash, the bodies were still there. They were finally picked up on saturday. The hopeful news is that they have been kept for the past 24 hours or so in a refrigerated rail car not far from the crash site. The hope is that eventually, and hopefully soon, they will be transported out of. Reunited with families. Is it realistic for a full investigation to take place, given how grim the situation is and the limited access . Even if there had been, i think that we are now four days after the crash. There were significant concern that that crime scene has been contaminated. All of the evidence has been sitting out in the elements and may have and moved as they try to get the bodies. It has been moved since they were getting the bodies. The rebels were accused by the United States and other governments of being behind the attack. They have been securing the site and may have tampered with any evidence to prove who did this. The big concern is that they do not have the investigators there. The longer this goes on, the harder it will be to put the investigation together. We understand that the dutch government is growing increasingly anxious and frustrated over the lack of access to victims bodies. Im sure other governments feel the same way. From what you have seen and heard yourself, reported on the ground, does it seem that the are trying to contaminate the crash site . Are they using the bodies and lack box as a bargaining chip . The selfdeclared prime awayster of this break city says they are not willing to turn over the bodies until International Experts come here to check them. They do not trust anybody else m and say they will be framed for the attack. The hopeful news was that, just today, a small team of dutch experts were able to finally reach the site. They were able to see the bodies and go to the wreckage. They hope that this will pave the way for them to be able to move the bodies on the rail cars to somewhere safer. They can eventually be moved onto kiev. Also, this could pave the way for International Investigators to come in. All of that is very much up in the air. We do not have a date or time for when they would be able to travel or where they would go. Now . At is putins calculus if you backed into a corner . Everyone has been saying that the russians are the ones who hold the cards with regard to the rebels. Last night, shortly after midnight, president putin came out on Russian Television and gave a statement. This was after marathon phone calls with world leaders. Clearly, a lot of pressure on him. He went a little bit further, calling for violence to end and for an investigation. There are two things he did not say that everyone has been calling for. He did not call on the rebels to turn over the bodies and he did not call on them to preserve the crash site. Ukrainian government released an audio recording that allegedly proves these rebels had shot down flight 17. The u. S. Department, government, has accused the rebels of shooting down this plane with a missile. Have you seen any evidence to prove that that is what happened . I think it would be very difficult for me with my untrained eye to prove anything on the ground here. You look at the pieces of the and youage nuc see things and wonder if it could be shrapnel. That is why you need to have trained investigators. It will be at least five days tomorrow. Will he evidence be in by the time investigators get here . Thank you for giving us the latest. That is what it looks like up close. Now for a financial point of view, we welcome back peter, managing director of Dragon Capital, ukraines biggest investment bank. He is live from kiev. There is a bit of the delay, so work with us as best you can. Mentioned that Vladimir Putin is being blamed for this tragedy. He risks becoming an international pariah. What does that do for ukraine . Hi. Eah, well, i would actually concur onh what kieren said earlier in terms of a monumental amount of pressure being put on putins shoulders now. It is actually very crucial for ukraine to see how the next few days would play out. There are a couple of events that one should focus on. Obviously, tomorrows meeting will be crucial. I would also highlight an event in the hague this case will be up for judgment. This is 140 billion. That may serve as a template for ukraine to give a little bit of crimean lame that they are building up now. This is something that we will be watching quite closely. The United NationsSecurity Council its meeting tomorrow. From your perspective, what can the Ukrainian Government do right now . The fighting has flared near donetsk and they are disavowing any involvement there. Weekve been talking last about who has and does not have leverage in the situation. From an economic point of view and a financial point of view, what cards does the Ukrainian Government have to play . Putins hadsay that the most influence and control over the truth and the events in the east of the country. It does look like the president onht now is trying to focus the momentum and push his advantage in donetsk. We are you look at it, looking at the prospect of an ur ban military operation. That cannot be done without a significant amount of human loss. This is something that the president is very mindful about and is trying to avoid at all costs. Does the crash and the heightened tension affects the way you are running Dragon Capital . Um, no. The capital is extremely quiet. There is definitely a sense of shock and sadness. I have driven next to the Dutch Embassy and it is completely, being laidowers are down and the emotion is definitely very present. Peter of the crisis is focused on the east of the country now. I was asking about Dragon Capital. Does this news affect your business and how you are running your company now . Ah, yes. Sorry, the line was quite bad. In terms of business for our company, there is definitely a fair amount of attention being focused on this country. The bond segment is actually quite active. The yield have been quite resilient. Yields are around 89 . For ukraine, that is not bad. Corporate yields are also quite high. On the bond side, there is quite a bit of tension and declines. In the equity segment, it is tricky or. Ukraine does not have a tradition of being an equity market, as much as a bond market. Nonetheless, we are seeing quite a lot of tension on this. Peter, thank you very much. Managing director of Dragon Capital, ukraines biggest investment bank. How should investors positioned themselves with all of this political turmoil . And, subprime is back. This time, it is not mortgages. It is car loans. The president of the United States is scheduled to deliver remarks on ukraine. South lawne from the of the white house at 10 15. And now, lets ask this question. Tanks are rolling into gaza. Siteis 50 miles from the where the Malaysian Airlines flight crashed last week. As we speak, stocks are trading down. The dow is rallying and stocks are close to their lowest level in years. James is here. They are catering to wealthy families. Jim, thank you for joining us. What are you telling your clients and what should their posture be at a time like this . Geopolitical events usually do not affect the stock market unless they get out of control. Do not react to it. In general, the market is not cheap . It is in the zone of ok. You generally want to have a conservative quality posture. Not because of the geopolitical events, but because of where stocks are selling. We dont want to wait until things are out of control. By then, the market will have reacted. What are you looking for to determine for yourself what constitutes outofcontrol . Outofcontrol will be sanctions. They got so serious that they caused a default of the Financial Institution in russia, which backed into europe and the United States. We are a long way from there. That is how it would happen. We would continue to punish them. In gaza, it would be of hezbollah decided to join the fray. It would be a regional conflict that has the potential to affect the price and the flow of oil. Those are the two negative scenarios. I do not think either of them will happen. It is unlikely that they will happen. It is possible, but unlikely. These events could be an excuse to sell off. This is a very important earnings week. I think earnings will be ok. If there is a selloff, i do not think it will be a sustained one. Stocks are not cheap. Even if we do not see a market dip, could we see more investors, especially private law clients, put more money in cash . Theres been a lack of confidence in the market and this cannot make people feel more confident. Could we see more people sitting in cash . This market has caused worry. That is what the bulls say. The individual investor may be permanently impaired. They have the financial crisis in 2007. They had the tech crisis in 2009. They may put less in stocks than they would have historically. Institutional investors are tremendously complacent. They have tremendous speculation in certain aspects of the market. Sum is Small Technology stocks. The speculation of the fixed income market is as bad as it was in 2007. Isnt as bad given that there is less leverage in the market . There is leverage in areas that we do not know. The reach for yield is back. This is a big debate. The fed has forced people to take on risk to boost up the economy. There are those who say that it is creating risk that we will experience in those situations. Do you believe that that constitutes a bubble . If so, what will happen if it bursts . A bubble is hard to find. There is no asset class that is cheap. Stocks are relatively cheap. What the fed has done is made everything expensive. Commercial real estate, real estate in europe, junk bonds, european bonds, lowquality stocks. There is no asset class that is compellingly cheap. So, the jury is out on the longterm implications of what the fed did. Were telling investors that you can stay in because the economy is growing and multiples are ok. Absolutely upgrader quality in the fixed income and stocks. Even if that means lower yield . Absolutely. I would take a lower yield in income to preserve my capital. Someday this party will be over. With the kind of move that you have, it could be a noncomfortable kind of move. You dont want to be the last one at a party ever. Always have fear when others have great and great when others have fear. There you go. We will be back a couple of minutes here on market makers. Greed and fear makes me think you need to be watching it 2 45. I will be speaking with bill ackman. Welcome back. Were approaching 26 minutes past the hour. Temper on the markets. Topic of conversation, herbal life. It has been the topic of conversation for the last year and a half. Bill ackman is for me aback, front and center. He is presenting. Short. He is it could beld his moment for an epic takedown. We have been waiting for that for almost 1. 5 years. Just a few days ago, herbal life called his campaign against the company propaganda. You are right. The onus is on bill to prove that it is something other than propaganda. All of these other events that he has staged, apart from the initial presentation it was pretty compelling, even if the investigation has not proved every accusation correct. These events that he has staged have not materialized into epic takedowns. He has had a number of massive investors on the other side. Out of them have closed their positions, whether you are talking about demo dan loeb. You have not seen another investor side with bill ackman. The regulators have gotten involved. Bloomberg did a piece recently about herbalife people who claimed they were victims. Other organizations who said they looked at individuals who worked with herbalife and got the wool pulled out from under them. There will always be disgruntled employees. What bill gates to prove is that this is a ponzi scheme. And, unless something happens tomorrow, we are a fairways away from proving that it is a ponzi scheme. In the meantime, all of his eggs are not in that basket. He is partnering up with valley and. I will speak with him at 2 45. We will talk about allergan and his big presentation tomorrow. Junking your junk bonds. We are witnessing the late to safety in the market, with investors selling off high yield and high risk or it plus, the road to ruin. Why america is shortchanging its future. The controversy, still ahead here. Stay with us. Live from bloomberg headquarters in new york, this is market makers, with Erik Schatzker and stephanie ruhle. You are watching market makers. Now, we minutes from are scheduled to hear from the president himself. For barack obama will deliver remarks from the south lawn of the white house on ukraine. Haveis an advisory we received from his administration and we will bring that to you live. Lets take a close look at the markets. Bond investors are getting nervous. After the plane crashed in ukraine and the invasion of will gaza, money poured into treasuries. I would like to welcome the head of u. S. Credit training at tcw, which manages over 140 billion in assets. Good morning, jeremy. With all of this risk cap and income are you taking money out of high yields and investment and moving them into treasury . Toi think it is important think about the backdrop of the marketplace as we think about high yield. We should ensure that the macro risks have increased. Will he think about financial risk, that is what the market has been focused on. Look at the marketplace, you think about the risks that is taking place in the market. It is more a factor of prospective returns and where yields are today. Less about the geopolitical concerns in the marketplace. Spillover this would into a broader macro selloff. You dont think that is the case, you think it is contained . We think there are a number of risks in the marketplace. Geopolitical is the forefront today. We see other factors at play. A lot of those factors relate to policy and what is going on with Central Banks globally. They remain accommodating in riskier assets. To us, as we think about moving out or upgrading the portfolio away from the riskier parts, they are focused less on the geopolitical concerns and more on where the spreads far and the compensation you are receiving. In that upgrading process, what are you selling it what are you buying . Say that when we think about the market as a whole, we think about the backdrop like this. You think about centralbank policy and what has been going on, we have heard time and time again. We would agree that the initial response from the central bank and the fed certainly was correct. As we think about what is going on and the effect of that policy, it has waned. Increasingre in a dramatic way. When they compare at zero, Corporate Bonds actually look attractive. We would take the other side of that and say that it is time to move out of and under waste. What are we selling today . Were moving under waste in triple cs. Were moving out of the riskier parts of the market. We think about asset light companies. I just want to interrupt you. Lets break it down. Credit is not necessarily a normal asset class. Where do you want to be or worry do not want to be . We want to be focused on scenarios where we have downside protection. When we think about downside protection, we think about companies that have hard and tangible assets. Where do we not want to be . Riskier credits. We do not want to be an asset light company. When we think about where the marketplaces today, we think that the reward is asymmetric. When we think about yields of bullets they are, we look to protect our portfolio. Were moving into higherquality portions of the marketplace. Money still seems to be going into those assets light companies, the lower quality credits. How do you explain the willingness of so many other investors to take risk at a time like this . I think, as we look at the market, there are not many reasons to point to, other than extremely low rates. If you think about what the central bank and the fed is communicating, they are telling you that the rates will remain low for an extended period of time. That gives investors comfort. When you stare at cash that is earning you zero, your pro spective return on a chapel c bond might look attractive. If you introduce any kind of normalized default expectations into the back end, you quickly get to a zero or negative return in any medium term horizon. The market is very difficult to tim