That these policies are not doing enough to revitalize growth. 1 . S p 500 is down the nasdaq is down the most. Or 2016y, we hit a high on the nasdaq. Happeningk at what is week to date. Even though we saw the uptick ofterday, we had two days declines. So with that we are down about 1. 5 . Now to year to the day, losing what we had seen earlier in positive territory. The nasdaq is down the most by more than 3 . With all of this happening, lets see what is happening with safe havens. Looking at the 10 year, it is down six basis points, 1. 69 . The japanese yen is strengthening against the dollar. David heavily traded big cap stocks are making moves today. Apple is accelerating losses, down by nearly 2 . Btig cut their price target from 141 to 130. They say customers did not grade as fast as they expected, and that is accelerating in the fourth quarter. Verizon down by 2. 6 . Jeffries is downgrading the stock to a hold from a buy. Bios video platform needs to get to scale. David thank you. The nasdaq had been negative, but now the s p is down as well for the year. Lets check in with mark crumpton. Hillary clinton and donald trump are leading three weeks ahead of the maryland primary. On the republican side, mr. 31 p has 41 , compared to or john kasich, and 22 or ted cruz. Onyland has its primary april 26 along with rhode island and connecticut. President obama is still lobbying for Merrick Garland but a group of conservatives appears to have someone else in mind. Elected,d trump is they want him to elect utah senator mike lee. If ted cruz is elected, he says he would consider lee, who is his best friend in the senate, for the job. A man who served as a nazi guard in auschwitz has died. And deadly attack on the market in yemen was by a saudi military Coalition Using u. S. Explosives. It is the first time the u. S. Has been linked to the airstrikes, believed to be the deadliest Coalition Bombing during the yemen civil war. Lisa jamie dimon use his annual letter to shareholders to want about geopolitical risk. David joining us now is the global manager at tia. How concerned are you about the ramifications of a Grexit Brexit . Of most interest to me is the polling on the righthand side. 30 want to stay, 30 want to leave, and 30 dont care. If they see a lot of of violence, they are likely to vote in favor of leaving. If they see the economy is still holding, they are likely to stay or investors in europe, any kind isuncertainty around brexit a buying opportunity. Think the stock markets are pricing in all of the possible implications of a brexit . You already see it in the pound. You are paying a low multiple for trough earnings. There are a lot of good signals happening right now in europe. The europeans will be the last ones to see them. David walk us through some of those good signals. Where do you see the good signs . The market has been grinding down on corporate earnings. Right now, you are paying low valuation for trough earnings, and that is a compelling case to buy. The banks have recapitalized, and it is all wrapped up with quantitative easing. It is a real case to be at least partially waited in european equities. Global investors are huddled into the u. S. Market right now. Asia is cheaper because earnings yet. Not troughed what about spots in europe that you like better . Do you see a compelling case, even in a place like that . Recently, you are seeing pmi in some peripheral countries get stronger. They are at multiyear highs. Are you sympathetic to what jamie dimon said, that we are still looking at years of uncertainty . As an investor, you have to go where you get aid. In europe, you are paying a low multiple on track earnings. Paying an. , you are alltime high multiple. Indonesia you are paying 12 compared to 14, but the earnings have still not gone down in asia. Investor would a u. S. Go to europe and invest, european stocks traded on u. S. Exchanges . There are many european which are trading at giveaway multiples compared to their u. S. Counterparts. You can buy nike for 30 times earnings, under armour 470 times, or the fetus, for 21. T is a safe haven those are the sectors that Global Investors are hanging out in and are overpaying or safety. Thank you, chris. We appreciate it. [indiscernible] up next, i sit down for an exclusive interview with ken bentsen. Lisa this is Bloomberg Markets. David is sitting down. The shift could save billions for investors annually. Speaking yesterday, thomas said the new rules are all about axing a broken system. This is about a system that is structurally flawed. The incentives are not aligned. Is consumers best interest not aligned with the current incentives that result in payments to brokers. They said it was poorly drafted and flawed. Kenneth benson is with us for an exclusive interview. You say this will protect investment or retirees, you disagree with that. I disagree with the premise the department laid out. Congress voted six years ago on this and directed the sec to study the issue and authorize them to write a fiduciary role. We strongly support that. But we may have ended up we dont know, this was very complex when it was proposed. Marketuld cause confusion by adding yet another standard to the marketplace. You look at this retirement market you have a lot more people investing now. Distinctionsnal may have been lost on some people. Members, case of our almost all of them have dual registrants as advisors. Really it is what the customer is choosing. They tend to choose based on price and choice. We dont know yet because we have to figure it out, but the customer could be negatively impacted. This is what the sec took many years looking at. Mary jo white said if we restrict choice and raise cost, that is not what we want to do. At the end of the day, the industry has been in favor of a uniform fiduciary standard when providing personal investment advice. We just think the way the department what about it would have unintended consequences. David people who do not will sayd these rules i want my broker to be acting in my best interest. This rule appears to be doing that. Rule limits what you can invest in, limit your choice of how you want to buy services, investors may not like that as well. Those are the issues we try to raise with the department. On one account, it is my all of itary account, is retirement at the end of the day, one may be taxable and another is not. That could create some confusion. David do you think there will be followed from here . It could create compliance issues for her. They have to create metrics to go across the industry. , i issue with the secretary take issue with how this was portrayed as a broken system. This was a highly regulated area of the market. The way the law has been moving, has beenhat enron moving, its very much a fiduciary model a lot got lost in the rhetoric. Came oute rule yesterday, im sure you are working your way through it, shall take on is that this is a weaker rule than expected. If you look at stocks yesterday, a lot of brokerages were up. Is that a victory for you . This,ry word matters in the lawyers have to look at every single word. I dont know if those are the right adjectives to use here. Is it effective, how will it affect investor choice, price . Those are the things we need to look for. David you mentioned compliance. I wonder how this will change how brokerages do businesses. As you see it, what will demand it be like . The vast majority of brokerages already put their clients best interest first. Two reasons. Many are dual registered, so they are running fiduciary accounts for clients that want of service. And its an incredibly competitive marketplace. Those that do not put their customers first will tend to see their customers leave. Have the deepest, most cap the liquid markets, the most democratic retail brokerage markets. I think all of those work in the investors favor. What concerns us, if you layer over what is already a highly regulated area, it could be quite costly, and those costs do get passed on. David we hear a lot about the advent of robo advisors. We are having our private client come today in midtown. Number of through a panels where you had industry professionals talking about this. The industry is looking at it on as a substitution but complementary, as part of the investor model. More and more people are using technology across demographics. Where we think there might be a concern, turning the entire marketplace, or a huge segment only, without the human touch. The human touch is very important in terms of investors staying steady, not reacting to shortterm negative news. David there has been a lot of backandforth. Do you see your firm suing the Labor Department . Are right now, understanding with the rule says, how our firms will implement this, what compliance regimes and systems built they will have to do. That is a decision the numbers will have to make, but it is very premature to even consider. David thank you, ken bentsen. Lisa still ahead, we are following the selloff. Here are the markets, red across the board. All of them now in negative territory or the year. Looking at oil, it is down, a big driver of the law a lot of the negativity. Not convinced we will see a sustained reduction in inventories. 5 30 eastern, janet yellen, ben bernanke, alan greenspan, and paul volcker will participate in an event. You can watch that live on bloomberg tv. Thank you. David it is time for the Bloomberg Business flash, a look at some of the biggest news right now. Treasury secretary jack lew says he disagrees with the courts ruling and says that life is not too big to fail. Nor thethis dangerously lessons of the financial crisis. That Research Shows companies are making fewer bets on startup companies. Last year have that he was number of venture deals in war years. Boeing has landed for new orders for its 747 jumbo jetliners. Ordered 12 737s. They also delivered fewer jetliners than they did a year earlier. Stocks are just about at their lows of the session. We do have some green on the board. Wynn. I want to go to jumping to its highest in eight months. They are up by more than 9 toer a Company Raised them outperform from market perform. Just yesterday, they said they byld see 2 billion ebitda 2019. Jumpath beyond getting a from some of the earnings they reported. A lot of the green has been pared down from earlier. It had been as high as 7. 5 . Mp sales were up 1. 7 compared to the estimate of one 0. 8 . They say they could do even better in 27. Valeant, it is, up 2. 7 , similar to bed bath beyond. We are seeing that pairing from earlier today, but getting a respite. Toport from its lenders waive a default as well as ease some restrictions on its own pack. With all the problems that it has been happening, it is still down 6 year to date. Lisa coming up, the commodity close. Oil is falling a bit. David from bloombergs World Headquarters in new york, this is bloomberg market. Lisa lets get a check on bloomberg first word news with mark crumpton. We have breaking news on the penama papers. Senators Elizabeth Moran of massachusetts and Sherrod Brown of ohio are seeking a treasury inquiry into the socalled penama papers, looking into whether u. S. Companies were involved. The senators send a letter to treasury secretary jack lew. The have been revealed this week by a German Media Company and now it has made news around the world. Apparently some individuals and governments were allegedly involved in taking some of their money and putting it into other locations that is led to repercussions in the governments of iceland and others. We will bring you more developments as soon as we get them. Which am a credit qualified to be president of the United States . Senator Bernie Sanders says Hillary Clinton failed the test. Sanders listed wall street donations to miss clinton plus super pac and her support for the iraq war as reasons why she should be disqualified. Asked theclinton was senator sanders was qualified to be president , she declined to give a direct answer. President obama is heading back to the classroom. Hes returning to the university of chicago where he will argue Senate Republicans should give his supreme nominee a confirmation hearing. The gop leadership is holding terms, saying the late successor to Antonin Scalia a should be chosen by the next president. Federal investigators will be in flint, michigan this weekend, speaking to people who complain early about problems with the citys water. More than 100 people submitted complaints to the Environmental Protection agency or white house before october of last year when a Public Health emergency was a cleared was declared. The investigation will determine the epa response to the crisis. Islamic state militants have kidnapped 300 cement workers and contractors in an area in northeast syria. They were abducted from a town outside damascus where militants launched a surprise attack against Government Forces this week. Descendents of former Party Leaders and south africa are calling an emergency meeting of the African Congress to discuss the future of president jacob zuma. He has apologized for his handling of a spending scandal but that is not stopped calls for him to resign. Global news 24 hours a day howard by our 2400 journalists in more than 150 news bureaus around the world. David Commodity Markets are closing in new york. Lets look at gold continuing its gains today following the fed minutes out yesterday. Officials are remain cautious about raising rates. Coffee dropping to a fourweek low. Supplies out of brazil falling, and in news of an unexpected crude declined. Lisa the drop in oil prices massive layoffs in north dakota off massive oil industry. But what would a rally in prices mean for uncompleted wells . Question. Close the opposed the question. Guest with the number of im prettympanies, sure they will not be able to complete a well in less than 12 months because you have to bring and people in the state from the ethanol industry. Or 50. Ay between 45 productionart on moree 2017 and if there is stress on the market, they may need more time than what we had expected. Alix you really cant get production back online until april 2017. One thing that might prolong things are the ducks we have a chart showing the rise of these wells in the mail in the major shale basins. You go in and drilled a well but dont finish it, so that when oil prices rise, you can finish them quickly. What is your take on how fast they can come online . Guest i can highlight what i saw in north coda. Able to complete 220 wells in a month. With a fracking company, you can only do one third, which is a small figure. It would also take more time than we had expected. , one tell you one example us he persons we met told fired three quarters of his employees. Uncompleted well. Complete the well and i just want to highlight that when we had a strong shale industry in 2010, the Unemployment Rate was much higher than today. Incentive. Ke more coming up in the next 20 minutes, movement in trying to resolve the puerto rico debt crisis. The households a hearing as the house treasurer says theres no way they can pay their bills do in july. Lisa in the president ial race, mistakes are rising ahead of the new york primary. Hillary clinton and Bernie Sanders are raising their rhetoric. David tesla received 325,000 orders for the model three. Can tesla meet the demand . David this is Bloomberg Markets. Rico secretary says the commonwealth may be able to make a 422 million bond payment due next month. However one analyst says theres no way they can make the payment due on july 1. Afterthis comes threatening to halt payments on the debt load. Decision,legislative the general Obligation Bond in perrigo fell its most and eight months. How big a deal was this decision . It was huge for investors because it allows the government to not pay if they choose not to pay. For july 1, if you count all the debt, it is 2 billion. Discretion does the governor had in what he can and cannot say . Can pay anything you want. He can choose to continue to pay but he has for months said we dont have the months to pay these bills. Lisa talk about why the legislature did this. Did they do this because they are running out of money or is it a political move not to keep paying general Obligation Bond at the expense of other bonds held by local residents in puerto rico . Not only is it the debt moratorium, but the other piece helps preserve the bank which is running out of cash. Governor to go into the Government Development and again preserve the meaning good assets that has. David lets talk about what is happening in washington. The House Natural Resources Committee has a draft plan. What does that look like draft for that was not well received. Guest it is a work in progress and we are anticipating changes to the draft today or tomorrow. It is set to be introduced formally next week, but what it will have so far that we know of thatfederal Council Board will oversee puerto ricos finances for a set number of years and manage any type of debt restructuring that happens for the island. In the meantime, the general Obligation Bonds they have come up with a plan to put this structure forward. Why were they taken off guard by the news this week . They were taken off guard because the administration the bank was running out of money and in fact, some public agencies on the island used the Government Development bank as their checking account. These agencies have started asking for their deposits back. They can handle these requests all at once. Investors were caught off guard because they werent anticipating this loss. Race for thehe white house. Hillary clinton and Bernie Sanders trading jabs at stakes begin to rise. Tenders