We will get justice for freddie gray. Believe you me, we will get justice. Were going to Work Together. If, with the nation watching three black women at three Different Levels cant get justice and healing for this community, you tell me where we are going to get it. Olivia anger is spreading beyond baltimore. Marchers in philadelphia clashed with officers. Some protesters tried to break through a line police set up near highway. Police say there were two arrests. Elon musk reveals his latest enterprise and makes sweeping predictions. He unveiled his powerwall batteries designed for homes and businesses. Solar panels and service a backup during outages. He stresses his plans could lead to pollutionfree Energy Production. We want to show people this is possible that that is the future we could have. Where the curve slowly rolls over and goes to zero. That is the future we need to have. And that is something and the path of talked about the solar panels and the batteries, that is the only path i know that can do this. Olivia he is promising delivers of the home batteries starting late this summer. Prices start at 3000. The death toll in nepal is now more than 6200 and thousands of people are still missing. Six days after the devastating earthquake, nearly 14,000 were injured, the u. N. Says 600,000 homes were damaged or destroyed. 2 Million People need food and water, medicine andauthorities Say International aid cannot arrive fast enough. The staterun Radio Network reports the families of each guilt will give killed will get 1400. Quickly losing friends on wall street commissioners of the professional the network fell short of estimates for the first time. Linkedin is also forecasting secondquarter sales will miss projections. The comedy expect revenues in the quarter of about 670 million. That would been early 50 million short of expectations. With the first pick in the 2015 nfl draft the Tampa Bay Buccaneers select Jameis Winston. Tom the top picks want to be leaving the state of florida post up the Heisman Trophy he took, Jameis Winston winston becomes the face of the franchise. They missed the playoffs or seven straight seasons and havent won a postseason game since 2002. Winston led Florida State to a National Title two years ago. The mornings brief it is an interesting friday. Chevron out with earnings. This is important after what we saw out of exxon mobil and bp earlier in the week. Some nuanced earnings among big oil. Construction spending may be showing a better america coming out of that her renders gdp report horrendous gdp report we saw for the first quarter. The consensus looking for better Construction Spending and along with that, Consumer Sentiment out at 10 00 a. M. As well i want to get to the data check. Futures up five, euro continues to advance well through 112. Oil near 60. Onto the next green, if you next screen, if you would. Even the twoyear does a little bit better. You see it expressing stronger euro, weaker yen. This is a way cool chart. It shows percentage change really well. Heres bill gross. Down they go. What a whiplash this week. Olivia last week, we really thought the tenure german bond was going to go negative, and now were back up to 0. 4. Tom small moves. What is so hard on the mapping of this what is so cool, the yields could barely move, but you get big price moves. People go, can you give me another drink . I dont get that. Olivia this is symptomatic that we saw the broader tried tide turning in the month of april. Tom would you link in the better u. K. Numbers and the good feeling of this friday . Olivia growth in european money supplies. We have had Economic Data surprising to the upside coming out of europe. Credit, the m3 number is close to where mario draghi wanted to be. That is the first time that is happened since i can remember. Tom did you think five years ago Olivia Sterns would be quoting m3 at 6 00 in the morning . I dont think so. The fed meeting. Something is changed. Bond people are rationalizing higher yields across the board. Have we seen this before . I think so. I think that means the price of bonds, notes will decline. George it is a most interesting friday. What will you be thinking about in your reading this weekend . What is front and center . We of been talking about interestrate sensitivity for many months, really since last year. As bond yields have declined in the pressure is starting to mount within markets and as you pointed, the price reversal has meaningful applications for investors. The key thing im going to look at is, how does money flow through the bond market . Our Bond Investors willing to take capital losses . Will they start to move their money elsewhere . There is been a steady march in the Corporate Market for many months in several years as rates have progressively come lower. The reversal of that money will have major locations. Tom have you ever seen a bond bear market . The answer is, no. I would respect those suggest they could be uglier than an equity bear market. George absolutely. The volumes of money at stake are huge. The shift as application for investors as well as companies. Companies have become highly dependent on very cheap funding. Corporate america has been borrowing like mad. Theyve sued of a significant coming due. Major shifts across capital markets. Some investors are prepared for it. There are spots to focus on. There are certain pockets of value. Olivia where is the opportunity and credit right now . If you look within high yield, there are Little Pockets of value. I said we want to stay geared to the companies will do well as bond yields move higher. You want to stay closer to the front end of curves. Long duration positions long maturity bonds are going to be highly price sensitive. Tom we will talk about the broader audience later in the hour. What does the proaudience do . They cant go to cash. They have actuarial responsibilities. You say go short duration. They cant, can they . George they can selectively. It is about how you position your portfolio. Institutional investors do need the duration. I would say they can pick spots around the world, as you point out staying in u. S. Corporate bonds is a long end of the curve makes much more sense than going into german tom where are you on the u. S. 10 year . Yellen, fed meeting, bank of japan, what does wells fargo call . George 250 by the end of the air. Still up a little bit from here. That has meaningful obligations. That means some capital losses are likely. Tom Apple Computer considering i believe with the roadshow on may 7, get in yen and the working Interest Rate is 0. 47 . Way under. Olivia why would they take the tax hit . Why not just borrow and pay back . Tom is that lemmings over the cliff . As every cfo going to have to do a bond deal . George they have been doing that for the past couple of years. We laud we have had over a trillion dollars in the past couple of years. We on track once again for that this year. The key to the corporate activity is kind of the rate at which companies are borrowing. Pressure point is going to sort of coincide with a very sharp increase in borrowing demands for corporate america. That has meaningful implications. I dont think that goes away. Prices are starting to come down. Yet the makings of a meaningful volatility shock. Olivia chevron earnings are out later this morning. We were word a couple of months ago about a big spread in high guilty energy. Have we seen that happen . George it has had a nice recovery since the beginning of the air. On crisis at craft a little higher. Credit spreads have tightened as Energy Prices have risen. Over the last couple of weeks, the markets kind of stalled out a little bit. I think we are fairly valued and Bond Investors are waiting they were waiting for earnings. They wanted to see how Balance Sheets responded. I think were in a trading range. Bonds have not kept pace with the latest move in Energy Prices. Tom we will talk about mortgages and what they will do with the yield back. Linkedin crushed. I love the word crushed. Twitter, crushed. The rangers, crush. What was that about . Olivia crash can be a positive. Like, tom, you crushed that. Moving on, still to go on bloomberg surveillance, tesla is making a big hey play in the battery market. Elon musk is crushing it. This is bloomberg surveillance. Tom good morning. 2. 07 u. S. 10 year yield. This get to our top made a headlines. Olivia navy ships are escorting u. S. Commercial ships as they sail through the strait of hormuz. U. S. Defense Officials Say it is to make sure they face no interference from iran. The new policy has not yet been officially announced but it is being adopted in response to what washington views as prerogative iranian behavior in the straits. A new Associated Press poll says your u. S. Citizenship isnt ample protection if used if you join a terror group. 60 support the use of drones to target terrorists in general. President obama is choosing his adopted hometown as the side of his future president ial library. It will be built on the southside of Chicago University of chicago has identified two possible sites to the obama family home. An official announcement is expected within a week. On the subject of libraries, the president was at an event yesterday in washington with a student moderator who try to answer a question about Writers Block, but the 12yearold middle school about the president was being a bit wordy so he told the leader of the free world to move it along. Listen, even the best writers usually it is not back at the first time they write it. I think you sort of covered everything about that question. He thinks i been talking too long. I got it, move it along. Tom line him up for a president ial debate. Olivia the president spoke about his early breeding habits and his postpresidency plans, and his facility with digital media. Tom that was fabulous. And the president taking that with a bit of grace. Lets look forward. So much to talk about. You will talk to george bory about the major american headache if we do get a higher regime, what is it mean for those mortgages . Could we ever get back to 5 or 6 . The box office heats up. I have been waiting for furious 8. The avengers are out this weekend. We will look at the Kentucky Derby on a sports crazy weekend. The horse racing here as 6 50 really interesting with people italian how to not lose money betting on horses. Olivia tesla wants to power your home. Last night elon musk unveiled two new storage batteries. His first foray into what he is calling tesla energy, a business he says could one day eclipse that of electric cars. This is going to be a great solution for people in a remote part of the world where there is electricity wires were aware where the electricity is externally expensive. You can take the Tesla Powerwall and it can scale globally. Olivia tesla stock has once again been on a tear since he dropped a hint on twitter about a month ago about the new product line. Joining us for more to talk about teslas plans is david. Thank you for joining us. What do we need to know about these batteries . David i would submit what elon musk once extremist a chicken in every pot, a tesla in every garage powered by solar planets panels on the roof. Up until now, you could have them on your roof will step this is a way to store that power at your house. You can use it when Energy Prices spiked. You could use it if the grid were to go offline if there were some sort of natural disaster. Utilities want to be able use this to alternative energy, store it, then send it out to people when they need it. Olivia help me understand how new this is. Is this a pioneering new technology or is elon musk inner ring a crowded field where he will have stiff competition . David co tesla is positioned to do it in a different way. I want to point to one statistic. I looked at research from a company in boulder, colorado. This industry is worth about 605 million. I 2024, it could be a 21 billion industry. Tom i dont think it is any secret i am not an elon musk fan. He is way outside. He is amazon as a joint partner on this with others. Is this about new lithium ion chemistry or the skill ability or just about taking out American Electric utilities . David all of the above. He is may no secret tom are they going to burn up like the lithium battery . David i hope not. Theyre building this gigafactory. Tom but is it a new technology, new chemistry . David the factory is not done yet. A lot of people have wondered as he is come out with this release he said, you can get this in your house by the end of the summer. To build these batteries for the cars and houses and utilities, that is ambitious and we will have to see if that can happen. Olivia mr. Musk is one who is pledge of omission. I am excited. Dismisseddo you think i can pick up a powerwall at home depot . Tom or buy it from amazon. That is where we are heading. This is really cool. Olivia that is a lot for the fedex delivery man. Tom this is really cool. Olivia still to come, former fx traders to professional handicappers. That means they bet on horses. They will tell us there is a way to actually make money on betting on horses. You can invest in stock come a goes up a little. But to see live animals run 40,000 hour and youre getting paid handsomely, there is no better game, no better investment in the world than horses. Tom good morning, bloomberg surveillance. Olivia sterns pulled the short straw, she is with me today. Lets get to a morning mustread. I think he is in his cottage in spain or something this morning will stop this morning. I went wild, george, when i saw that. Is there a new effervescence on this may day that screams higher yields, better economies . George number one, people are optimistic about the Second Quarter for u. S. Growth. Secondly, as we talked about earlier answer getting a little bit better in europe. I think that is where the pressure sits. Weve seen a meaningful relight mission of bones. Others have come higher. They have pushed higher. I think people are asking, is this just a technical revaluation or just a squeeze . I think it is a bit squeezey. The ecb will be buying a lot of bonds going forward. Yet to be a little careful about assuming this is a rush to hire yields. But it does seem like were going to move structurally a little bit higher over the next couple of months. Olivia how do you make sense of the betterthanexpected initial jobless claims and what happened a month ago with the jobs report . Tom the job stay is not today. We should say that. Usually it is the first friday of the month. Next week is the jobs day. We will have full coverage. That claims number, every pro i know when, wow, they were humbled over the statistic. Olivia we havent mentioned greece. What happens if greece leaves zero . George i think europeans have done a good job of trying to think atomic impact as well as the the economic impact. The bonds that are held, theyre not really held by beanie investors, whether it is somewhat, i think, contained from a pricing standpoint. Tom we will come back with george bory and look at home mortgages. In the next hour, william cowan, trying to get a sense on wall street. He disagrees. It is bloomberg surveillance. Good morning. Tom good morning, bloomberg surveillance. Olivia the Police Report of the freddie gray cases in the hands of prosecutors, but only sketchy details are emerging about why the unarmed like man died after being arrested by baltimore officers. A baltimore tv station says the autopsy showed injuries like those suffered by car crash victims, and the Police Commissioner admits officers taking great to a station made an extra stop that was not previously reported. This city was mostly quiet overnight. A third on of curfew was ordered after protests about grays death led to writing on monday. Police who did up last night in riot gear and removed protesters and reporters out of an intersection near a pharmacy that was burned it down earlier in the week will stop baltimores mayor is promising results in the investigation. We will get justice for freddie gray. We are going to do it because were going to Work Together because if, with the nation watching, three black women at three Different Levels cant get justice and healing for this committed it you tell me where we are going to get it in our country. Olivia anger is spreading be on baltimore. Marches in philadelphia classed with opposite hers. Some protesters try to break through a line police set up near a highway. Elon musk says his new venture could reinvent Energy Production and storage worldwide. He unveiled batteries designed to store electricity for homes and businesses. He says the goal is to completely transform the worlds Industry Energy infrastructure. Powerwall can store energy. Prices start at 3000. There will be no weekend rest and the talks on the greek debt rescue. The Prime Minister says negotiations will keep or negotiators will keep pushing for a bailout deal. Protecting there could be in agreement as soon as sunday. The bills are mounting, but its european neighbors wont send money until they believe greece will actually reform its economy. Comcast and Time Warner Cable are reportedly going shopping after their huge merger plans collapsed. The wall street journal has both are interested in bright house networks. The talks are said to be just parliamentary. The merger plan fell apart about a week ago under pressure from regu