Market and we saw the s p turned negative again for the year. Julie sort of bouncing around a bit today. Turning negative for the year once again. It looks like investors are looking ahead to the fed minutes this afternoon. They want more information on the thats next move and in waiting for the ash on the feds next move on the feds next move. The s p and our remain in the red today. And dow remain in the red today. The bestperforming group today as we see an increase in estimates for the fed to raise rates or moving. Orward of those estimates financials have been benefiting from that kind of you. Technology, relatively strong. Drop in Consumer Staples as well as Utility Telecom and discretionary. Target is part of the story today. Another retailer disappointing. Earningspershare actually beating estimates put sales weakening. Comparable sales up 1. 2 . One point 6 is what was estimated by analysts in the company Ceo Brian Cornell saying it is an increasingly volatile consumer environment. That echoes what we have been hearing from some of the other retailers. Target from the story on. It looks at those comparable sales. You can see the trend has been slowing growth over the past several quarters and his growth of 1. 2 is the smallest since the breach. That big credit card breach all the way back in 2014. The stock is having its worst day in about seven years and is trading at its lowest since november of 2014. The damage is not limited to target. Some of the other big box retailers are down today. Walmart is down with earnings tomorrow. We have yet to hear from the. Iggie, down 3 costco down 3 as well. Home improvement has been a bright spot. Lows is a bright spot. Shares up 2 as home depot flags after its members yesterday after its numbers yesterday. Lows comparable Sales Numbers of 7. 3 . The second time it is outpaced home depot since 2009 and the widest outpacing, the biggest cap between samestore sales and home depots ever. Interesting that it is taking a leadership at least for this quarter. Betty besides looking at the retailers, the dollar is also something to watch. Perhaps rising expectations for what the fed is going to do. P about 4 10 of 1 we have seen with the exception of oil some of the other commodities lower today particularly within the metals. Gold and copper trading lower. That has been putting pressure on some of the miners. I know that has been happening in europe as well. Mark you were talking about how you are pretty much flat for the year. The stoxx 600 itself, slightly different story. It looksself Like Technology is not treating me well on my return area i can move on to this. We are down 9 for the year. We have not had a 1 gain for almost a month which shows you there is a lack of a trigger for further gains. Today we had Goldman Sachs cutting its rating on equities to neutral. Says the stock may not be attractive until they exhibit sustained earnings growth. If you needed evidence of or a lack of it go no further than burberry. The group the luxury group lowered property expectations. It unveiled a multiyear turnaround plan based on a narrow product range. This puts a lot of pressure on chief executive officer christopher bailey. He is also the chief creative officer. Can he do both jobs at once . These are the big four Luxury Goods Companies in europe area were very down by 24 . Christian dior, up by 13 are hermes up by 25 . Earnings and sales missed estimates. Bernstein says second half result missed estimates and weekd the results were and applied market shares lawsuits. Shares are down by 7 . They were 9 lower. The biggest fall since january last year. Just getting away from the earnings that, we had some data out of the u. K. , showing that the u. K. Labor market is cooling. The number of people in work rose by 44,000 in the First Quarter of this year. In the back end of last year we saw a figure three times that level. Unemployment fell by 2000. Rates of the lowest level in a decade. Earnings, excluding. Onuses, slowing to 2. 1 we are below the 2. 9 we saw in july last year. No evidence of wage pressure. Our Companies Holding back ahead of the referendum . It seems so. Betty it would make sense. Lets check in on the bloomberg first word news. Shery ahn has more from our newsroom. This one a split decision. Bernie sanders won the democratic president ial primary in oregon and Hillary Clinton claimed victory in kentucky. Hours after the polls closed it was too close to call. The primaries did not do anything to change the dynamic of the race. Clinton is inching closer to the number of delegates she needs for the nomination but sanders is not giving up. Let me be as clear as i can be. I agree with you, we are into the last ballot is passed. Shery the next big test for the democrats, primaries in california and new jersey and four other states. According to their latest Financial Disclosure form the former president took him 1. 4s 1. 7 million in 2015. Down 93 from the previous 16 months. Likely republican president ial heinee donald trump says made 557 million last year. His Campaign Provided few details of how he earned the money. Is in cairo for talks with egyptian officials. They are exploring ideas for supporting a new is really Palestinian Peace bid. Kerry flew to the capital the day after egyptian president offered support for French Initiative to revise the Peace Process and says he was willing to serve as a mediator. In sri lanka, rescuers are searching for 200 families missing after a landslide caused by torrential rain. At least 19 deaths blamed on the weather so far. The mud making it difficult to use heavy equipment in the search. Wildfires in canada are threatening Oil Sands Operations again. The nations Largest Oil Producer has evacuated three sites and was restarting in northern alberta. Canada has lost about one Million Barrels of production per day because of the fire. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. Im shery ahn. Betty thank you. Lets get back to our top story. A both that minutes are due at 2 00 p. M. Eastern time today. Dennislar is rising as lockhart and his San Francisco counterpart John Williams both say at least two rate hikes this year, maybe warranted. These are projections at a point in time. They are not promises. I dont know how many rate increases we will have. My assumption currently is two, possibly three. I dont know. It depends on how the economy evolves. Two to three seems reasonable given where the economy job growth we are seeing, inflation data we are seeing. Betty there still remains a number of risks that could knock the fed off course. Joining us. S Patrik Schowitz a global strategist at j. P. Morgan. It seems like almost overnight the chances of two rate hikes has suddenly gone up. I want to point our viewers and you two are bloomberg which wirp. The function here, what the fed is predicting in terms of rate hikes. Now it is at 18 . Has it changed enough . , weik for what its worth change to september after the last fed minutes. There clearly has been a concerted action by fed speakers to get a little bit more risk into the market. I think they are probably uncomfortable with so little being priced dan and they want to have a bit more option alley ality. Ion we thought it would of been a cheap thing to actually put a hint in at saying june is actually a live meeting and they didnt. Thats kind of what tipped us over the edge. In addition to the speakers we have had a bit of better u. S. Data. The data this quarter was very weak. That caused people to push out fat hikes. We had push out fed hikes. We have better Industrial Production data the other day. Some of the stronger bears on the u. S. Economy have been pushed back a bit. Betty have we priced in enough properly in equity . Patrik the equity market is a little bit betwixt and between and we see a little bit of that. Good news is good news. Bad news playing out yet again. We have seen this movie so many times. I think the equity market probably initially would not like a hike to the honest. Traditionally we always say the equity is the market has a bit of indigestion. The problem you have this time is that the hiking cycle is so delayed. Traditionally hiking cycle tells you the economy is strong enough. This time we are so late in the cycle with hikes its not as clear. I would also point out toward emergingmarket risks. What the equity market might be worrying about is if hikes get priced in, that leads to a restraint than in the dollar which we dont think but if it does people are going to start what caused the selloff earlier this year . Were is mostly about china. Mark patrick you say the hiking cycle has been so delayed. Will it further delayed by the upcoming referendum . We had some bloomberg today frome reports economists which suggest if the u. K. Votes for brexit we could see the fed pushed back by up to months. What do you think . Patrik i think the problem that the fed has is the timing is a little unfortunate. The next meeting is about one week before the actual referendum. They wont know what the outcome is months. Hat do you they can look at the same opinion polls as we do. Opinion polls in the u. K. Have not covered themselves in glory in recent years. We are all suspect about what they show. Vote, whetherit they have hiked in june or not i think that will probably lead to financial volatility in has the potential to push them back. Pollsat its worth, the seem to be trending towards showing more of a majority from a for their hard to read from this time. Mark japan dodged recession. Declined. Inclined. Cap x declined. Are we continuing in a stagnation in a stagnation environment that has been in place for two decades . Contractual acceleration. Datak japanese gdp came in stronger than expected. We are pretty negative on the fundamentals for japanese assets. Underweight Japanese Equities and have been for a while. Issuet think the real in japan is the risk that the boj and a bit more coordinated with the government, does Something Big in june or july. That could give you a rally in japanese risk assets. We probably think that would remain shortlived unless it can really change the direction in the end. We are dubious about that. Mark thank you for joining us. Showk schowitz, global just at j. P. Morgan asset management. We will check in on the u. S. Companies moving in the early session including apache, surging on reports of a potential deal. Mark live from london and new york, i mark barton. Betty im betty liu. Its time for the bloomberg is this flash. Stake too raise its become the industrial robot maker possibly largest shareholder. A deal that values the German Company of 5. 2 billion dollars and illustrate the surge in Chinese Investment in europe. Kuka said it would evaluate the offer. Volkswagen trying to diffuse investor criticism. Andan to improve profit review management pay. A plan outlined in a letter from ando to activist hahn. Tor chrusis the brewer is due to be taken over by anheuserbusch later this year. Sab miller was hit with costs associated with a takeover along with charges related to its african operations. Bloomberg business flash. Lets head to the julie a lot of rumors and reports this morning that are moving stocks. Whether or not they are going to happen. One example is apache. Apparently there was a report on something called oil and gas people. Com that Occidental Petroleum was going to be making an offer for the company. Occidental says we dont know anything about this report. Apache says all we talked about at the townhall today was more details for layoffs. The company said it will be cutting 37 jobs and its north east unit. Shares did surge in the premarket now coming down to some extent. Still higher on the day up by almost 4 . Occidental said it did not know anything about the report. No shares are down about 1. 3 in the wake of that. We are watching the andersons. A grain trader, one of the largest remaining independent grain traders. It rejected a hostile takeover offer from hc to holdings. Holdings. Hedge fund manager phil falcone was making this offer. Its board of directors has hc2ct did two offers from at 35 and 37 per share. That price is 43 higher than the andersons close on tuesday. Shares are also trading higher. Church and dwight is moving on some speculation this morning. The maker of arm and hammer baking soda. Shares are higher by almost 2 . Negocios reporting that proctor and gamble might be interested. Representatives did not respond to requests for comment. I want to take a look at the chart overnight that shows the intraday movement in the stock. We did see a spike on speculation and it came back down as people brushed that off. Mark thanks very much. 10 21 in new york. Still ahead, a bloomberg exclusive. The cochairman of bain capital and coowner of the Boston Celtics shares his investment playbook. Betty you are watching bloomberg markets. Im betty liu with mark barton in london. Havens. Is seen as a safe Stephen Pagliuca, interview with Erik Schatzker he provided insight on investing in todays economy. Steve sibley put we are to in the were in the proceed with caution spectrum. What we have done in response to this more at that economy more tepid economy, our fund size, we have 1000 people globally. We are staffed up to invest responsibly and really proceed with caution. We have about a 7 billion u. S. Fund. We had larger than that before. We are excited to fit where we think we can find those Growth Opportunities into transf transformative opportunities. Erik from the perspective of a investor, what is proceed with caution mean . What are you doing that you what you not doing that you might do . Steve i will tell you what it translates to. There are Many Companies that are selling at a large premium now that have that are stable , high market share companies. Probably not much to do with them. They are well run. 13 to 14metimes pay times the kind of environment we want to stay away from. We dont see how we can do that much better. Erik even though in another time good market share, mature company, stable flows might be attractive. Steve and another time when you are getting 3. 5 to 4 gdp growth those companys can benefit because they are larger and can gain more share in a growing market. Its difficult to gain share in a flat market. So what we are trying to do is a smallerompanies company, one of the higher products. The higherquality products. I think we doubling in tripling the size of the company in this economy. Mark that capital cochair Stephen Pagliuca exclusively with bloombergs Erik Schatzker. Still ahead, Charter Communications chairman and chief executive tom rutledge joins us following his companys 55 billion acquisition of Time Warner Cable. Betty live from bloomberg World Headquarters in new york and london, i am betty liu. Mark b. and i mark barton. Lets get to julie and im mark barton. Lets get to julie. Julie well has been gaining a little bit of steam, up 2 3 oil has been gaining a little bit of steam, up 2 3 of 1 . We are seeing a build in inventory that is unexpected. 1. 3 Million Barrels. Cushing, oklahoma, inventories building by 461,000 barrels, a drawdown of 350,000 was expected. Alix steel, one of the experts in commodities, pointed out that most of the canadian supply goes to cushing. Even with the supply destruction that happened because of the wildfire in canada, you are seeing a build in cushing, that would presumably be negative for oil prices. A larger than estimated drawdown in gasoline inventories, me rely its interesting that the crude inventories are seeing this kind of buildup. Behind me on the screen, you are starting to see a little bit about bit of a comedown in oil prices. We saw a trade downward. Now hovering down up about 1 10 of 1 . We will keep watching these numbers. Like an unexpected number on the headline and on the cushion supplies quite an unexpected number on the headline and on the cushing supplies. Betty more from our newsroom. Limited damage has been reported after a powerful 6. 7 magnitude earthquake struck Ecuadors Pacific coast this morning. Its the same place a devastating quake hit a month ago. This mornings quake knocked out power and woke some residents. Residents poured into the streets but eventually returned to their homes. People familiar with the negotiations, israel may settle for half of the 1. 7 billion fine egypt was ordered to pay. Egypt was fine for violating a contract withpply israel. French police are taking to the streets to protest against what they describe as hatred directed at the force. Police gathered during their lunch breaks today in about 60 cities across france, including on the republic product republique plaza. One of the girls kidnapped by boko haram from aborting skill in nigeria has been found. From a boarding school in nigeria has been found. She is the first of nearly 300 girls were adopted more than two years ago. Recoveredthe first after nearly 300 girls were abducted more than two years ago. Betty ceo tom rutledge joining us following his companys ticky 5 billion acquisition of dust companys 55 billion acquisition of Time Warner Cable. Meanb. what could this for the parties . We will ask Virginia Governor and former dnc chair Terry Mcauliffe, next. Mark b. its time for the Bloomberg Business