Sm nonmanufacturing. I croak on micron announcing earnings after the bell. Announce earnings tomorrow. There is a little bit to talk about. Just a little bit. Worlds largest bond fund. Stocks, bonds, currencies and commodities. I almost did not do it at least a second screen. Will join us later on the importance of the press conference. Equities do better than good. We will talk about that in a moment. I would also look at the cr be indexed. Crb index. What has not moved, the two year zero. 45 . Here is the equity markets. Up we go. One of the great themes here is no. Scarlett had to stay at home for two consecutive days. Never. I got up extra early to shovel myself out. The spring rally is what we will touch on. You call it spring but it has been very buoyant. That is better than what i said. Scarlet fu outdoing me once again this morning. An exclusive. Notice how many people hate the rally. They just will not buy into it. We will not make you wealthier. We will make you smarter here. Interesting and frankly very sad front page this morning. Atreferring to the shooting fort hood, texas, the biggest army base in the u. S. On iraq veteran killed greek soldiers and then shot himself. 16 others were limited. Being treated for posttraumatic stress disorder. Home to more than 40,000 soldiers. What is fair to say . What is fair to say. He was in chicago where he was tying to find closure. Do not yett net know what happened but obviously that sense of safety has been broken once again and we will have to find out exactly what happened. Peter cook to join us shortly to give us more perspective on that. The second frontpage story has to do with money. About to play a much bigger role in politics after the Supreme Court struck down the law after it counts the total amount that can be contributed to a candidate. I thought the reporting was great. To me, technology ruling. Majority say forget about technology, trust the law. Veryinority is saying clearly, you are wrong, the technology will be used and manipulated for an ill outcome for society. The new ruling does not change the limits on contributions to specific candidates. The game and many other ways. Absolutely. Touch more on this. Phil mattingly will join us later on. The last frontpage story, another day and record for u. S. Stocks. You pointed out the dow chart. Add a new record. Ust shy of a new record feels different every day. This is not twitter or facebook. I am in cash. At least you are getting this. In the first two months of intoear you had inflows bond funds of about 15 billion. Simultaneous outflows that reversed in march. People are going back and. Classical physics. Holding up the market. Jobless claims today. The big jobs report tomorrow. Consensus is the u. S. Economy added two hundred thousand jobs. We will see that tomorrow. Lots of Economic Data today and then we go into the jobs report. Going beneath the headline data this morning. Of on to serious matters fort heard for hood. Gunmen opened fire. T least 16 wounded peter cook is with the secretary of defense. Charles hagel in hawaii. Mr. Cook torrance a seven night by some. Thank you for joining us in our early new york morning. It a perfunctory reaction by the secretary of defense . Is it by script or something new here . We are talkingt about another one of the shootings at a u. S. Military installation is a strange feeling of deja vu. Something the president has had to deal with and chuck hagel and today in honolulu a cast a cloud over his fourth trip to asia. Terrible tragedy. Referred in a moment of science silence. Cantis a feeling of believe this has happened again but this is a traumatic issue for the military dearly dealing with Mental Illness and the stress of the wars. The shooter has served four and wasn iraq in 2011 being treated possibly for ptsd. Top issues for chuck hagel and the Defense Department overall. Greatly appreciate your report. Reporting from honolulu and diamond head this morning. Look for the interview tomorrow. A little different conversation than it was supposed to be 24 hours ago. Wall street go to cash. I have been in cash since 2009. Kate moore thinks i am crazy. There it is. Courage within a fouryear plus bull market. Where is the correct right now and . You mentioned earlier veryment has been cautious, not a lot of Risk Appetite out there right now. We saw inflows into bond flows and the first part of the year. Everyone was rotating back into fixed income. That is a very good and as we make new highs. I like the skepticism frankly on the retail side, institutional side. That is great. This goes to Michael Lewis coming up later. What is the does thinks in between the psychology of the retail, the little guy and the institution . Is the distinction their . The Pension Funds are looking more at asset liability match. After a significant run in the Equity Portfolios over the past few years, they were reallocating and rethinking about funding. I think the regular Retail Investors thinking they had a tremendous run and valuations looked or expensive. They started to become skeptical but not doing the work of digging down into the quality of the companies and overall market. We have our clients goal fully invested. What about investors pushing the market up and policymakers sounding extra cautious. I like the fact that policymakers are more cautious. We have relied on quite a lot of policy support and had the policymakers put a floor into the market. Now we are at a place where the economy is standing on its own two feet. That gives us the opportunity for policymakers to step back and the market to normalize. When you say the economy can stand on its own two feet, does that mean the Global Economy does not need all the sugar in a more . Not as much. And the year of incredible policy differentiation. We are in a year of incredible policy differentiation. Pope the fed reducing reducing support. Could indicating more support. I want to talk about a bluechip portfolio. They own bowling, home depot, microsoft and chevron. All of the usual names. They are making a good return, versus the risk taken but performance is lousy because small cups have done well. Is this a year for the old triedandtrue names . I think people will look more at the road of the value opportunities. We want to say some stuff is cheaper because the growth story is not a strong. What do you buy . What is the value trap versus the value . There are some stuff in tech that has very high multiples that we still like frankly. Does not look exceptionally cheap but think has a strong secular story. We think we need to differentiate between what can grow and what is cheap because i has a much lower growth prospect. Equity market. Scarlet fu has your company news. We start with Credit Suisse. Restating the Fourth Quarter loss. 534 Million Dollar deficit. This larger loss comes as they set aside for mormon tax for more tax dispute. Masters 24 month coming to an end. Master started at jpmorgan as an internal most three decades ago. A pioneer of credit derivatives, credited with inventing the credit default swaps. Ron howard and brian glazer joining with Discovery Communications to start a new studio. It will produce short videos for online viewers. The oscarwinning duo behind Box Office Hits including a beautiful mind. The headline there is they are not doing movies. Comes like you to sounds like youtube. And theus as ron howard ceo of Discovery Communications. West liveoomberg special conversation. More on that later on. In a world of 140 characters, twohour movie is too long. Can you believe we got through 12 minutes without saying highfrequency trading . Likes congratulations. We are going to discuss highfrequency trading with Michael Lewis. Has distorted the markets and brings us to the twitter question of the day. 7 00. Ewis will be on at what should he write his next book on gecko crowd sourcing for mr. Lewis. Tweet us. Working on a broadway song right now. Rigged, andtown is it is unfair. New york city, folks. Blueit up in red white and as they make their effort for the stanley cup. On the lewis with us next hour. Looking forward to a conversation with mr. Lewis. We hope you tune and worldwide during the 7 00 hour. I am tom keene. With mia scarlet fu and adam johnson as well. Highfrequency traders under scrutiny for allegedly for a running investors and distorting markets. Stoking the flames as the new book boys. Here is what he said about how the traders are gaming the system. Understand why if i am a stockbroker to pay a commission but why on top of that is the broker turning around and selling my order to a highfrequency trader for the right to execute . What is the value in that . It is quite clear. Opportunity toe exploit. He has advanced information about the pricing of the stock market. There is the price theory of treading. There that pontificate. They do not know the math. A few that actually get it. Irene aldridge studied electrical and financial engineering. She joins us right now. Have been really fortunate. I still have no gray hair. Got more gray hair listening to the debate. You are terrific on the order of paul well montt. Peter carr and the rest of them. What is silly about this discussion . A gorgeous morning out there. I would like to say what is great about the markets and highfrequency traders contribute to the market. Doubt thatis beyond the u. S. Markets are the best in the world. It is the best Financial System, the strongest Financial System. We also have lower transaction costs, lower spread. Why is Michael Lewis so upset . I think he has his own reasons. Upsetl lewis is specifically because he thinks markets are unfair. Let me tell you why they are fair. I want to get to the morning must reads. Terrific mandatory read on global wall street. Hitting the ball out of the park on opening day. Consistentlyho beat the market but retailer investments are dumb. Trading with them is a good way to avoid been picked off. Efficient markets and highfrequency trading, is it really only about the arbitrage of dumb traders . Absolutely not. I think retailer investors Retail Investors are extremely sophisticated. This is why we have seen a huge exodus of investors over the past few years. Many people say the highfrequency traders are driving. Moser are by and hold x investors. The markets were in the dumpsters. Of peopleng a lot point to, and we have seen this is highfrequency trading firms do not have trading losses very often. They go through times where they are extremely profitable. Is it because they go home flat that night and do not actually take positions . This is true. Most of them go home flat that night which means they do not carry risk. The main reason they do not lose money is because they directly engage in the same business as most brokerdealers. It is ok for goldman to not have a losing day but it is not ok john templeton, he told me once the idea here is every good idea at some point everybody catches up to it. They arbitrage away the profits. Is that happening to highfrequency trading right now . When Michael Lewis rests writing it was real profitable. Relying is a trough of on very high speeds. Those people have moved on to new strategies. Efficient s more we did not get to this level. We will do it next time. Blake masters built jp morgans commodity business. How banks are dealing with increased scrutiny of the hard assets. This is bloomberg surveillance. Streaming live. N your tablet we will be right back. Good morning, everyone. Futures up three. Dow futures up 25. With me is scarlet fu and adam johnson. This comes from the New York Times. Here is what he said kate more of jpmorgan am a you used to run emerging markets with lewis bacon. You can look at the u. S. And emerging markets, how do you think this compares . There are parts of the economy that have not had a real fire in their belly. Beenps not perhaps not innovating or investing in the way they should. Indicating they really want to compete on the global stage. Which sectors get it right . I would say tech. What you are also reflecting from that article is places like china are not happy with just where they are. They are looking forward, planning forward. They may not like the transition or like how it plays out, but at least thinking about the next leg in the economy. To behink that we need overhauling parts of the u. S. Economy and the labor force, educating people differently. Very quickly, is there a man of manufacturing Renaissance Capital growth i do not know if there is like it shows up in some of the headlines. I think some of the Energy Renaissance has been very good for import costs for manufacturers, but i do not think we will have americans going back to unskilled labor. Going to be very different. Just kate more. Michael lewis joining us. Lex what should Michael Lewis writes his next book on . Treat us. Tweet us. Good morning , everyone. With mia scarlet fu and adam johnson. A quick data check. Lot of data to check nymex crude goes nowhere. There is the bit on futures, doll futures up 23. Likes another Top Executive leaves jpmorgan. Another Top Executive leaves jpmorgan. Here to tell us why this matters u. S. Managinghteft, editor for the financial times. come and go. Es this is not new. Why is this a big deal . She is a woman in a mans world. Very few that have managed to reach senior status. She has been with jpmorgan for almost three decades. That is a remarkable run. She was really at the forefront of a lot of financial innovation a couple of decades ago that bad. Ht about good and very is this more condemnation what what she did with credit default swaps . Nothing to do with credit default swaps. Commodities business has been sold. In some ways, part of a normal turnover. She is striking is probably the last of the group that helped to build the business two or three decades ago. You own the franchise in derivatives. Ou did it with fools gold i looked at the ft umpteen years ago. I am like you are kidding me. A lot of the crisis the book part of life, partly because of my book, and frankly, a lot of that was completely unfair. I believe very strongly one reason there was so much focus on her is because she was of her. She stood out in an industry. What was the critical the strength distinction . Criticism for a disgrace product. There was a good sign and outside. In the early days, there was hope that this could be used to manage risk. Unfortunately it got not just used that very badly abused. She was not an angel, not in any way entirely blameless for the mistakes made. One of the messages about her career is that if you are a woman who stands out and willing to engage regulators and stand up and be counted him unfortunately you become very visible. Of the say a lot criticism attached to her ended up being very unfair. You know her personally. What do you think she does very does best . She is an entrepreneur. She managed relationships within jpmorgan for many years. She is last of the greats still there. A wildly creative mind. Someone willing to stand up and get involved in the regulatory process and represent the industry. Have you ever heard her say i screwed up on that . There are people in london thats messed up way back. But did she ever say i did not do that right . Stood upctually several years ago with her yes, we had on and said made mistakes. Many other bankers that did not do that. I am not saying she is blameless. Many people got swept up in hype. Many were naive. She did it knowledge that. What is her significance to jpmorgan top brass overall . Wishy in contention to be ceo one day . Now that she is left, clearly off the table, but i wonder. If you go back to the original Jpmorgan Group to say where are they . None of them are at the bank. Every single one. Of oneh the exception that has gone to a regional bank, they have gone to the regional bank. That shows if you want to be part of the sexy, inciting you are probably not sitting there. What will you write about uncredited joe derivatives . Right now i am looking at the changing of the guard and new era and thanking. Writing about the fact that you have more tech entrepreneurs giving back and getting involved in entrepreneurship. Why does jpmorgan necessarily need a changing of the guard when it was the only bank able to get through the entire crisis without a single quarterly loss . Not saying nothing new but representing a wider shift. What is interesting about jamie dimon right now is the number of senior staff who have recently left, even banks that appear to be completely untouchable still need to have questions asked about them for management style and what is going on inside the bank. I would not be surprised if there is more screen to Going Forward in the coming months. We have a lot to talk about. An interesting story. Paintings in our world . Painting in the art world. For the past four decades,s two stolen paintings valued at 7 million have been hanging on the kitchen wall. Worker boughttory them back in 1970 five. 70. Last summer spotting one in an art book. There it is. Art experts told the New York Times it might be worth 15 million. The other painting is by peer bernard. It is all that circuit 1905 stuff. My best knowledge is the ham and cheese in the lobby. I would say the europeans do this better. Much more accessible. A lot of stolen art. What was the movie just out . Monuments men. London . A big deal in not so much in london. The reality is you have a huge amount of art and the Second World War that went missing and is still missing. Have not cover themselves in glory in relation to this. Any people have asked questions about where a lot of assets are. Will remain for a long time. The famed roman cross from early medieval. It was like in four or five parts. It inin yugoslavia found the 1950s. They think it came from richard lionheart. He was in germany. 1066. They think the cross ended up in yugoslavia or germany. I am not sure the viewers thought they would get it either. Contract theyou passage of wealth and power ov