Stocks are headed up to their session highs of a with that said they are still in the red. Right now lets take a look at where they stand. The dow is coming up on the flat line, but the s p 500 is down by about a third of a percent. The s p is down for the second day in a row, and this is its first backtoback losses so far this month. Part of the reason for that is because of the retail data that we did see earlier today. Sales for february falling, and januarys game revised to a decline. We will see how the fed will factor in that with Interest Rates tomorrow as well as the day after. I want to show you the General Health of the s p in its sectors. Four are in the green, six are in the red right now and looking at the positives, Information Technology is of the most, by about a quarter of a percent. Utilities not too far behind. 1. 5 , care is down by which had been preceded by materials. Energy is down by about 1 as well. I also have to talk about what is happening in the pharma world, especially with what is happening with valued we can see a little bit of knock on effect happening here. Down by 10. 5 , no surprise it is getting hit in tandem with valeant. This is the s p is biggest liger today. A laggard today. Basically, there is a limited growth driver for distributors and they are seeing the end of a 15 year super cycle of generic introductions that are coming to an end. David oil prices cannot be hoping that. Ramy of course, continually being an issue. Energy looking at oil. Oil down off session lows by a little more than 2 . This is its first time in a month that we are seeing backtoback falls, in particular because of a wrong that we have been talking about throughout the day today and yesterday, saying that it will not freeze oil production. And iranian production climbed last month by the most in almost two decades. David thank you. Now lets check on the bloomberg first word news, Mark Crumpton has more from our news desk. Mark president obama has reversed course on drilling for oil off the southeast coast. The administration is withdrawing his pledge open much of the southeastern Atlantic Coast to offshore drilling for the first time. Coastal communities and environmentalists had imposed the play and so did the pentagon. New york financier george is returning to the ticket political giving after an 11 year hiatus. He has spent or committed more than 13 million to support Hillary Clinton and other democrats. That is more than his total disclosed spending in the last two president ial elections combined. Alarm over the candidacy of donald trump and cruz voters in five ted cruz. Five states are voting today. The same band of conservatives that toppled former speaker, john boehner are blocking the current budget. That means that they could fail to pass a budget for the First Time Since they retained control in 21011. Man in charge of the water control insulin flint, michigan, says it right he should have realized. Bysays he was grossly misled state and federal experts who never told him that led was leaching into the citys waters live. Theead was leaching into citys water supply. I am Mark Crumpton, back to you. Lisa lets get back to the market. U. S. Stocks getting a lackluster performance as they question if they could be reaching their limits. Haveal Central Banks now dipped into the market. David what are they ignoring risk . I know a couple of months ago you shifted a lot of assets away from hedge funds, your wilting in the equities markets. Are you still confidence in that move . The commentary were talking about with regard to equities is not think that equities are wrong or going into a bear market, what we are discussion is relative risk to market right now, after this rally equities are seeing everything is fine. We will not have a recession, do not worry about china. We are comparing those assets,quities, to structure credit and theres an emergency in value. You can focus on cash flow, and inefficient prices. Last week the European Central bank kind of changed the game in credit and certainly in credit markets in europe. How much does the ecb really change the picture for the u. S. , reticular really with respect to Corporate Market . Global supplyck out of credit markets, prices should go up to the same degree. You saw a very violent tightening and spread investment grade, because all things being equal european buyers will have less to buy over there. We think we have seen that reaction already. If you on investment credit youy you are saying that think it will be relatively low and you will be compensated for that. The returns for us are not high enough were trying to go into what opportunities with far higher yield. David there is so much going on now. When you look at all of that on the horizon, and then the market, do you think that the markets are reckoning with those events as legislation be . Bear markets are tough to call. Some would argue that we just had a big correction and we are not in a bear market rally at all. We know that equities are arguably much more overvalued than all credit assets, particularly those in structured credit for Mortgage Backed securities. The price action does remind us of bear market rallies in 2000, and in the financial crisis. Lisa within the structure credit market, some of these could last for a wild. While. Banks were selling a lot of the lower rated, driving prices lower. Looking earlier at bloomberg, showing how much prices have declined in mezzanine ratings. Will this persistent there are not buyers . Everything is driven by supply and demand. Theres is not a lot of liquidity from dealers, they have sucked of these access rights moves. These prices you have tons of cash flow. Do not care prices ever go on, you probably prefer they do not commit giving have cash for longer. In the shortterm term we are very cognizant of the fact there equitiesher great hello, market prices could go lower. So we elected valuations here and we are willing to hold them for a long time. David youre talking about regulation here. You say you see opportunity. Explain. What doddfrank was designed to do with the safer and resilience in the next downturn, and never cause a downturn again. The knock on effect is a limited ability for banks to take risk in the market in structured credit. What that means is that when we have these big changes in sentiment, or one big motivated seller, there is no propriety trading desk with enough Balance Sheet to take that down. Extreme pricee leanings than we have seen like we have seen in structured credit. Lisa what about liquidity concerns, and another five that does not have the luxury of longterm capital . That is something we take very seriously, because we provide our investors reasonable liquidity. We have intermediate liquidity strategies. Equity, we private do not do real estate, but we take things that will take a quarter to liquidate. For us to the only area that is dangerously low on liquidity is massive spreads. Are three points off your spread, that should be sufficient. David thank you for coming in. The next 20 minutes of Bloomberg Markets, blackstone president tony tans is next. He says energy will be the most attractive area in a private equity firm this year. Lisa and he is a prolific fundraiser for Hillary Clinton. We will see if she can beat Bernie Sanders in ohio. David trump is currently 90 delegates ahead of ted cruz. David this is Bloomberg Markets, i am david gura. In an exclusive interview today, tony james gave insight on the firms activity in private equity, real estate and the energy market. When oil prices go up, youre going to have suddenly a lot of companies that were in the process of rushing back that need capital because they can drill wells again profitably. They do not have access to capital. They are still overleveraged versus the value of their reserves, and a do not have access to equity as a result. Italys capital even when prices go up. I think we will have a loss of activity. A lot of activity. be your most active investment this year . Gift. We thought it would have been last year, but it did not prove to be the case. We were either smart or lucky that we did not do a lot, but now we have a lot of dry powder and we are able to do a lot of deals. Interestrought in some and investment and things will get better. People talk about the elasticity of the crisis. Do you see this, and if so where . I do not know about a ceiling, because problems can spike through the ceiling at any will. But absent that it is a normal market. You are talking prices in the 75 area, longterm. It might curve to 50. It is well above the curve. Been among thes most volatile of commodities and investments that anybody could want to be or not want to be part of over the past 18 months. As the Financial Market volatility, and in particular what weve seen over the last few months expected blackstone business in a positive or negative way . Both. In one hand it has created new investment opportunities, but we have had markdowns of existing portfolios. We are in a business where that is the way of the world. We benefit from new investments, but we pay the price on old ones. Erik a longer three Main Business is, which is best suited to deploy capital right now, in which is best suited to monetizing right now . I think we are doing both in all businesses, actually. Right now there is an amazing opportunity in credit, which is not so much based on fundamentals, but liquidity through the banks falling back and a lot of reductions coming through the fund because of energy worries. I think that is great. Estate, the u. S. Has gone a little pricier, but europe and asia, we are doing a lot of things. Suddenly, there are values out there. News, ae company in the Chinese Insurance Company that has made a bid for store board, sold the waldorf astoria in 2014. It seems you may be selling that Insurance Companies some more properties. In china they talk about the next warren buffett. Chairman is a very smart man, and he has a longterm investment horizon. Anddifference between china america is the stored value of stocks. People are used to owning stock, they think that gives the value. In asia, the middle east, and other parts of the world it is real estate. The stored value is real estate. You hold it a long time. It will take care of you. I think he has that attitude. He is buying some great assets. Lisa that was an exclusive interview with the blackstone president and ceo of tony james. And coo tony james. Lets head to our market desk where remy has some stocks that are moving. First off to chipotle. Down,tock right now is coming off of session lows. Down by about 2. 4 . Sterne agee coming out with a call saying that it expects lower receipt totals coming out of its restaurants because of more coupon redemptions that are coming out. I got a coupon in the mail saying come back to chipotle. But these receipt totals are lower basically. That is despite better traffic levels in january. Oute capital also coming with something on chipotle, saying it spoke with the food safety specialist, and basically that specialist is cautious about the food safety outlook for the company. They think that samestore sales can recover, and has an outperform rating. Lets go to apple. Apple is seeing its highest price since the first week of january. They say they will see surprising of science. The firm anticipates it will sell about 6. 5 Million Units alone. This is the head of the 52 million iphone guidance that they think will happen. Seeing the worst point since the january low if it. Scraping the bottom for the whole entire day. City is downgrading the stock to a neutral from a by uy. They do not believe the nearterm Business Trends are going to improve. The price target being lowered into 70 from 86. Lisa thank you. Did you go have your marino for burrito forri lunch . [laughter] vote in primaries, but all eyes are on the state of ohio. Can kasich pull off a win in the Buckeye State . Lisa this is Bloomberg Markets. Turning to politics. My states are voting today in nominating contest, but all eyes are on ohio or donald trump and john kasich are not into that and the stakes could not be higher. A kasich wind could put him around, but a Trump Victory would put him within reach of the nomination. David Bernie Sanders is looking to make headway against Hillary Clinton after his surprise when in michigan. Lets start with governor kasich in the polls. The internet quit donald trump he isnt and neck with donald trump. John they are all consistent on this matter. There is no chance outside of a that marcoacle rubio would win florida tonight. Sometimes miracles happen. You do not want to say it is outside the rubble of all possibility. But he is outside three far. Even the rubio campaign, there is a totally different tone and tenor. In the john kasich again, they are just brimming with confidence. In john kasich world, he is a guy who has never lost a campaign in ohio. He has about a 70 approval rating, one a reelection in high 60s. He says they know how to win on ohio, and have done a lot, so they are very confident. And the public polling suggests r thant will be close they would like it to be, but will be a genuine race. Lisa lets say that john kasich by a slighto margin. Does this give his campaign lines . Legs . John it gives it life. We are in a single elimination game. If he wins that state, he goes on. If he loses, he calls it quits. How strong his legs will be, a lot of questions will come into play. The capacity for him to raise money, he needs to do that. He will need to get out to utah and get ready for the arizona and primary races next week. For a long establishment republicans, their attitude previously has been that donald trump and ted cruz were either going to have to get shot or get poisoned. Received a long establishment support if he demonstrates he can be trump in ohio and that he could conceivably do well in other states like illinois. He could finish second there. Mitt romney was on the trail with him yesterday. A lot of them assume he will endorse him if he wins tonight. That will bring him a stream of that establishment both. A lot have been skeptical, but they are looking for some way to stop donald trump. Keeping john kasich in the race kasich butsement of also an endorsement of continuing to have a split field that may be able to allow various strong candidates to be trump in different places. That might be the best path to theing donald trump below number of delegates and pushing this to a contested convention. Take what is he able to on the other midwestern states . Position onish trade he has been pushing against Hillary Clinton. He has a chance tonight, a chance to win three of the five states. He could win illinois, he could win missouri, and he could win ohio. None will be cake walks, but he could win all three and in terms of delegates, Hillary Clinton will win so many that she will still end up with a net delegate advantage tonight. But if sanders can win three out of five states, the momentum moves for him. David thank you. More Bloomberg Markets coming up. Hohes woiithongestc . Estc. Thlais hotas hkeca hyson at y llseg ca hke cwistomin biness rnte fid , p cth bou e. Juais hotas hkeca hyson at y ddstus azetomimed ag y wiourofr eie esr a adylr onheesev. Or upde its restn i, w c u doe t eth dveryay oding uc pwiwiro fi hthatelroui david from bloombergs World Headquarters in new york, this is Bloomberg Markets. Lisa headlines with mark crumptt the news desk. Mark today is primary day, one of those days where we can separate those who might win from those who might be leaving the president ial field on both sides. Kasichsio and john futures could be hanging in the balance. They are both desperate for wins in their home states of ohio and florida. Hillary clinton is hoping to keep Bernie Sanders from building new momentum in the midwest. There are more delegates up for that almost any other day in the primary calendar. While florida and ohio are the biggest prizes, three other states are also awarding delegates. Dont miss a special twohour edition of with all due respect where mark keilman where Mark Halperin a John Heilemann will break down the votes. The gop wants all messages between 14 state Department Officials and private email domains associated with Hillary Clinton, former president bill clinton, their daughter, and the clinton foundation. They want to locations between state department and officials at the u. S. Agency for International Development which distributes foreign aid. Is Obama Administration continuing to lift restrictions regarding when and why americans can visit cuba and what merchandise they can purchase. The new rules say individuals can go to cuba as long as they have a schedule of authorized activities. Americans will be allowed to purchase cuban alcohol and tobacco products. In other news, Prime MinisterJustin Trudeau is expecting to announce canada will run for a temporary receipt temporary seat on the United Nations council. The prime mister will be in new york for meetings with the secretary general. Though miss our exclusive interview as Bloomberg News editorinchief john nichols late sits down with the canadian a. M. Newister at 9 york time. Global news 24 hours a day powered by our 2400 journalists and more than