Feasibleost now a more 35,000, about half as much as a flagship model s. Elon musk, a massmarket player. Lets head to the markets where julie hyman has the latest on the markets. Yet again, the fed induced rally. Betty day two of the yellen reaction here. It is a presumption of the rally a batch ofr commentary than iraq interrupted by other federal Officials Say we are not quite as dovish as all of that but janet yellen coming back and saying yes indeed we are. Like thatappeared to and we have seen the rally continue across the board. I want to take a look at futures on bloomberg. Probability in our model of how likely it is to see interestrate increases at the next meeting coming up. Were looking at a low likelihood of the rise here and i want you to know the numbers. 27. 5 in july, 37. 6 and it is a stark difference. I will take the chart back going back to march 28. Youre looking at a 10 percentage point drop at least in the probability of Interest Rate increases at upcoming meetings. A dramatic move in the past several days. Reactioneen a dramatic to we saw the 10 year ago as low as 1. 8 . Definitely that lower likelihood of Interest Rate increases coming in. Lets take a check on the u. S. Dollar versus some of its main trading partners. We have been seeing weakness. That continues, the euro and the pound gaining, the dollar falling versus the japanese yen. Betty energy gains among them. We will get inventories and about 27 minutes or for now, i will bring those numbers. If you take a look at bloomberg, we have got informationtechnology continuing to lead gains. A big bounce back in tech stocks. Financials also bouncing back. They were weak yesterday. A quick check on apple. Apple is advancing and being upgraded to outperform this morning, among other things, analysts are saying the company could adopt a new type of screen earlier. 100 billion euros being added to this. 1. 7 . Seeing up we have got miners leading the charge. Yesterday, the worst performer today and over the course of the year. Oil and gas behind them. Clearly, notes of caution coming from janet yellen really wedding the appetite for investors to get into equities. , trading of bound the 16 points in march. A bit of a rally despite Economic Sentiment on the downside. The bloomberg index, this is the Economic Sentiment in the eurozone. It has been going down to we are at 103, the lowest level we have the eurozone since february of last chair. A 13 month low for this. Oney going into equities similarly, significant movers in the benchmark metro. Betty, you were talking about earlier. Oft jump since november 2013. This an m a play . Does it where the appetite of investors or potential buyers of its electronic unit . It is really partitioning its food retail and electronics. Angloamerican america. M a speculates about this as well currently up 13 . The chief executive setting itself up to be sold. That we will talk about later in the next hour. Lets check in on the bloomberg first word in. Vonnie quinn has more from the news desk. Vonnie at a town hall hosted by cnn, donald says he does not feel beholden to the loyalty pledge because he has been treated very badly. Federal court judge Merrick Garland is leading with two more senators today meeting with two more senators today. Illinois senator mark kirk becomes the first republican to meet with garland. Yesterday. Him the Senate Leadership is refusing to consider the nomination saying the next president should choose the successor to the late antonin scalia. Thecyprus to expedite Court Ordered eight days detention for the 69 rolled who faces charges including hijacking, possession of explosives, kidnapping, and threats to commit violence. Is said to be psychologically unstable. A bill would have strengthened the companys say it of emergency. Two proposals days after the attacks in paris that left one of the 30 people dead. The United States is prepared to beef up security. The pentagon will announce today a degree to the region in february. Concerned about threats from russia. Global news 24 hours a day powered by. 400 journalists and news bureaus around the world. Betty thank you. It is all about the yellen effect so far. The s p in the dow closing yesterday a 2015 hi. They are continuing to rise as julie mentioned after the edge chair struck a dovish tone. Once a dove, always a dove. Mom and said there is rising concern about unintended consequences of the fed. Sees one more highest hike in the future. Strategist at wells fargo investment institute. Mom and brings a great point. Seeing the big rally in the last market islls you the way more sensitive to macro factors. The fed is really the only game in town . I do not expect it to really change. We have tried to tell the clients do not doubt the resolve of any Central Banks to do with they think they need to do to boost inflation and boost economic activity. Since march of 2009, Central Banks have been played with a huge role in the rally we have seen with the s p 500. I think Central Banks will continue to play a huge role. Down the line, and you have been around long enough to , the central bank, the u. S. Central bank always has a tough time extricating itself from an easy policy to a tight policy. It is always a bumpy road. Extremely easy Monetary Policy now. Easy to not expect that somewhere out there, the roads would get bumpy. They someone sounding alarm bell for a while is bill gross. After theat he wrote speech by janet yellen. The economies are at stall speeds and they have got to bump up nominal gdp growth rates or else. Believes and things will go south rapidly. The emerging markets are tied to commodities and china, largely. Commodity markets, it does not look like it is going to get all that much better. We are supply and demand balancing out. Those countries continue to be susceptible to things like dollardenominated debt and all of those things that are going to pop up in the issues from time to time. Will continue to have problems in at least the near term. To be a largecap u. S. Stocks. That will be the way to go. It will probably be the way to go through the end of the cycle, which has a couple more days to go. Should i be caring about payrolls on friday when it seems janet yellen has the more global perspective on everything. She does have more global perspective. But the number for me, when i look at that historically, it may directionally have informed but it is not something i really count on here it if we see the 210 consensus number this friday, that is fine but i would argue 25,000 net new nonfarm payroll jobs, added one where the other there, you are in the ballpark. What i think for me is the most important number we will see, and i would have told you this six employment reports ago, yearoveryear change an average hourly earnings, is expected to come in at 2. 2. That is disappointing. It might inch up a little more. Fed is watching what is happening with wages. Always focused on labor market and labor wages. He say we need higher levels of confidence among consumers and investments. Here, 13 month lows despite the unprecedented stimulus once again unleashed by mario draghi. What county eurozone and other Central Banks do . The eurozone is gripped with a lot of political dissent and those types of things. It is tough to have a high degree of confidence. Theou have written anything equity Strategist Group that i work with has written over the afour or five years huge factor on why we have been positive on stock spirit we will see higher confidence and it has stumbled a bit lately. Over the course of the next three or four quarters, you will see that inch in the right direction. It will be a bumpy road. But i think well see higher confidence and that will help the stock market and consumer spending. Things are somewhere between ok and good but not great. We have got a chart that bearsyou a lot of disagree with what you just said about Consumer Confidence. Really coming up against Consumer Discretionary stocks, you can see from the chart it has gone up 50 in the last three years or i want to focus on the last portion where you see that spike that began in the latter half of last year. Confident that as a consumer, it will come back. A lot are against that. Consumer discretionary sector has performed very well since the march of 2009 lows. When i see the chart, it makes me feel better that we are overweight from the Consumer Discretionary. There are people betting against it and there have been people betting against the consumer for quite a long time. They have been wrong. I think they will continue to be. Great to see you. Thank you so much. Much more ahead on bloomberg markets. Candidates finance minister outlined his plan to jumpstart the economic jump juggernaut. A bloomberg exclusive. Do not miss it next. Caroline live from london and new york, im Caroline Hyde along with betty liu. Time for a look at some of the biggest business stories in the news right now. Is a partial victory for activist investor carl icon who has been battling aig. The insurer has abandoned the use of credit default swaps. He has argued it created the wrong incentive. Focus on return equities. The company says longtime probably based on shareholder return. General electrics selloff of its operations continues. His sale is expected to close in the third quarter. Millennials may be able to revive the slumping breakfast cereal. The maker of frosted flakes as special k is repositioned some as a snack from the early 80s to year 2000. The sheer in the afternoon and evening has been rising. That is your business flash. Where is the serial you need it . Need a second breakfast. Canadian Consumer Confidence reached a 2016 high this week after the countrys new finance chief delivered his budget, lets get the details right from the source. With bill,nterview finance minister of canada. Thank you very much peerless get straight into it. Thank you. Your Prime Minister, my promised her as well, made a Campaign Candidates fiscal deficit good deficit at no more than 26 million. A pledge already broken by your first budget. We are here in new york city. What message does it send to investors, particularly Foreign Investors who you need to buy government of canada bonds . The message we want investors to have, the famous if we want canadians to have, is that we are focused on growth that will help canadians. The agenda is to help middleclass canadians succeed after a challenging area era. Commitment to growing the economy, something we know will make a difference. We know investors want to see an economy that will grow at a healthy pace over the longterm and that is what we are setting up to do. We are talking about canada. Canada taught the englishspeaking world how to be responsible and run balanced budgets. Rewarded canada by restoring the triplea credit rating. What if they do not agree . I think theyre going to a great. What we said we wanted do, we are blessed in canada with a particularly good situation. Ourave been able to lower gdp. The lowest net debt to gdp, which gives us the most capacity to make investments to grow the economy. Importantly, the imf, the oecd, and g20 countries, they are recognizing in an era of low growth and demographic change, is usinghould be doing fiscal measures to grow the economy. We are Getting International observers on board and i am confident investors in canadian be supportiveg to because we will enhance the longterm judge after he of the country. We are in fact and embracing all canle who look toward how canada be more successful in the future. We know that having not only a better infrastructure that helps people in the country, creating a more innovative environment and creating a plan for growing businesses, this will help put as a country stage that made decisions that could make a real difference. David lets talk about the commitment to investment. The developed world is stock at Interest Rate at or near the zero bound. There are questions about the efficacy of unorthodox Monetary Policy. Is it safe to say looking at the and yourat you government believes spending is the only way to kickstart an economy at this point . First of all, we do not call it spending. We are making investments in the future of the country. There are places where those investments might look like spending but investment in education for indigenous people, this will help more people in the longer term. We would say we need to be doing things that are going to enhance the growth. A prescription for what we should be doing given the canadian situation. The low Interest Rates are capacity to make investments and the ability with a very educated arkforce to take advantage of more Innovative Society it is a positive thing for us. Would help canadas growth trajectory and for that matter the rest of the developed and developing world is other countries like the developing dates and the u. K. Were not fiscally conservative . We recognize every country is in a different situation. Our capacity is very positive. What im trying to say is what you like to see them doing what youre doing . We believe taking fiscal measures is appropriate in the face of the low growth environment. That is something we will be talking about at the g20, taking in order to enhance the capacity of the country, but also to help the next generation of canadians to be more successful. That is a discussion and each country will have a different situation in terms of how they could execute on that. Your budget has 4. 5 billion on new child subsidies. His Income Redistribution the only way to truly address the inequality problem . From our point of view, we look back over the last generation and realize middleclass generations have not been as successful. We believe finding ways to enhance the family will not only help them but will also help the economy. Someone who is a middle Income Canadian getting on average and0 more on child benefits the way we have done this, they will put that back into the economy. Good for the economy. Over time, that will help the growth. We think it is about helping people and helping the next generation by having a productive economy. Philosophically, do you agree about the point about inequality . We agree that having a country that enables all people to be successful is important. If we have a country where middleclass is not able to grow their incomes, that is not ok because we are able to grow the economy and make sure it is inclusive growth and that is what we are working towards. A conspicuous absence in the budget why . Is taken ahave done withat how we could deal the country broadly. In the case of the aerospace sector, it is a critically important industry. Very successful. A very Successful Company in that. To anyone out there considering buying it, it is a great jet. Putting forward on the government come on along with them, we have not finished the Due Diligence yet. David you came out of that so you understand the issues on that matter taxpayers. Would you attach conditionality to financing or funding that the demolition of dual classed share structure . Otherwise, they will say the canadian government is subsidizing a wealthy family that has a controlled interest in the country. I think canadians expect us to do our due jurrjens, to consider different alternatives and how we could make investments. Consider how we could ensure we have employment in the sector, how we can ensure we continue to be successful. We are going to consider all of those issues as we go through Due Diligence. It is preliminary to talk about the decisions. David how long until the Due Diligence is done . We do not have an exact timeline. I know you would like a deadline. We think we need to work through and understand the issues. When we have results, we will come back. Thank you. That is the honorable bill, finance ministers of canada. Caroline still ahead, jack lew. International sanctions are not all they are cracked up to be. Caroline welcome back. A sunny day in the u. K. Materials and Energy Stocks doing the heavy lifting this morning. Betty, you are live in new york. Day asa rather bright well, but kind of cold here. Im waiting for spring time to arrive and what that means for the markets, what does it mean for the Energy Markets as we continue to pump our houses with heat. Inventories are now just out here in julie hyman has a breakdown on inventories. I believe it is the seventh week in a row we have seen a increase in the weekly inventories number. 2. 3 Million Barrels is where theyre coming. The drop of 2. 5 million in gasoline inventories, and much bigger than estimated drop of about 1. 1 million here. It looks like this could potentially be bullish for oil as we get the numbers. To run to the headline numbers, crude oil up two point milley to my emails. Inventories down 1. 1 Million Barrels as well. Me what is going on with the oil prices in the wake of what is going out. Lets look at the bloomberg here. We typically get a little more of an updated look at what is going on. Now gaining some steam. We have seen a big recovery that his been going on over the past six weeks or so and the oil prices. Wti climbing by more than 40 since february 11. Now more than 50 since the shortterm well as we have seen the ongoing climate oil prices. To give another look at what we we here for inventories, have been seeing weekly climbs for seven straight weeks but this is smaller than estimated. Betty a bit of a mixed reaction. You saw the price of oil go down but it is now back up again. People digesting little more of what the impact is. Vonnie quinn has more from the news desk. Thank you. In indianapolis, prosecutors ar