Corps helicopter cost more than expected according to the pentagons cost assessment office. Be 144g stallion will million, 4 higher than projections. It also wont be ready to deploy until a year later than planned. They are committed to reducing the cost of the life of the program. Today hehusetts judge erased the murder conviction of aaron hernandez. The former nfl star killed himself in prison last month. The judge said she had no choice, citing state law that calls for vacating conditions when a defendant dies before an appeal can be heard. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am mark crumpton. This is bloomberg. Julia live from World Headquarters in new york, i am julia chatterley. Scarlet im scarlet fu. Joe im joe weisenthal. We are 30 mins away from the close of trading the u. S. U. S. The s p 500 approaching fresh records. Dataet should record low be explained for volatility . Where to go in the French Election now that the minimum account has inherited a slowgoing economy, what will the new leader need to do to deliver on promises . Himachal quarter for walt disney they report fiscal secondquarter earnings after the bell. We will bring in those numbers when they cross. Joe now lets take a look at what the major where the major averages stand. Abigail doolittle is standing by. Saying veryare not big moves for the major averages heading into the close. The dow the s p 500 fractionally lower, and the nasdaq higher by more than one quarter of 1 . Small moves, but nonetheless we are saying records. We saw a record earlier for the s p 500, and if the s p 500 can turn fractionally higher, it will once again put turn in a record close. Some mixed, basically unchanged trading, but nonetheless records once again. Hes us on the steps, names that could dominate trading tomorrow. The companies do report after the bell. Disney up about. 5 . Investors are looking for 1. 41 in adjusted earnings. Bloomberg intelligence analysts paul sweeney a sayings the keys to the quarter and the Stock Performance is espn2 scrubbers. If they are up, the stock will like performance is espn subscribers. A fair up, the stock will likely go up. Like tos would really see Gross Margins grow for the fiscal year 2018, perhaps by a full percent. Itll be extinct to see that debt interest and to see if that comes true. It will be interesting to see if that comes true. Ia nonsmall numbers either. We will know more soon. Lets look at one of the sectors dragging on the s p 500 and the dow member in explaining why those averages are slightly lower. The energy sector, chevron, conical, anadarko, all down. Now down more than 14 on the year. Much of this coming from the end of february on on supply concerns. Investors are waiting for the opec meeting on whether or not they will expend the cuts. Lets hop into the bloomberg and 8033. T g btv this is out of the election, the trump trade still in tact. Finances are still higher. Tech is also helping. Financials are starting to lag. On the bottom, look at energy in yellow. Down more than 3 . It will be extended see whether or not the tech strength can offset the Energy Business and the effect of the financials are well off their highs, joe. Now thatks, Abigail Emmanuel macron will be frances next president , what will his economic agenda look like . Frederik ducrozet, who joins us on the phone from geneva. Great to have you back up it we have been talking about the political ramifications. Lets talk about economics what you think will be the First Priority in terms of jumpstarting the French Economy . Frederik well, for a start, i think he has been very lucky, and that is pretty clear like him or not that is part of the, i would say the starting point in terms of the cyclical condition in france. At the very least, whatever he does in the next few months he will continue to enjoy a fairly supportive economic situation, a bit like a honeymoon in the next two months. I am not saying he will have no impact on the economy obviously not in terms of business conference in particular. It might be the first impact in terms of the Confidence Survey the next two months. There will be this positive and supportive context for him, and lets hope he benefits and takes advantage of it. In terms of priority, we know already what he will try and do in the first few months during the summer, including in the recess for the parliament. He will have two prayer is, i believe the first and only in terms of the political priorities, i believe. The first of be in the political life. The second will come fairly soon, and that will be much more challenging. Itll be related to the label market reform, and that has been, as you know, a sensitive topic in france. There have been many reforms in the past few years. Further innds to go terms of deregulation, flexing go, well,and try and some former president s failed, and that would be the First Political test for him. Scarlet it will be a political test, but would order to see kit the easy item first, or the hardwon first . Frederik he intends to go through the hardwon first, with french specific hard one first, with french specifically decree law that could bypass the parliament. There will be another election in june a legislative election. There is no guarantee that he will get government majority. Of thesaid even ahead election that he could go with radical tool and the choice of bypassing the parliament. Again, with the union in particular inference, that could backfire quickly. Will enjoysaying he a fairly supportive situation from an economic perspective, howalso go quickly to see both the union and the population react to the strategy. Julia yet, because he is already promised he promised on sunday he would make changes in the labor market by decree if necessary, but i think were missing something really important here, and that is angela merkel. He has to keep her happy, first, disney . Theres already talk he will head over to berlin next week to talk to her, and she has ruled out any kind of easing on spending limits for the french because she has her own election to win here. What is yesterday to comply with germans here to keep them on board first and foremost what does he have to do to comply with the germans here to keep them on board first and foremost . Frederik there is a lot of posturing, if you ask me. Angela merkel has welcomed his victory as well. She knows he was the only true proeuropean candidate in the campaign, and in berlin there has been a release release after the results. Then, again, she has to sell any change in terms of european policy to her own public. As you said, she faces local election first, and general election later this year. You have to rebuild, i think that is the key, the trust between france and germany that has been lost over the past decades, and that is something emmanuel macron, as i understand it is fully aware of it, and it will do his best. I am not saying he will sell those reforms just to please berlin, but it is part of his strategy. If he can do this, and managed germanthe french relationship back on track, and sell Something Else in terms of the european policies and institutions as well, he might actually succeed. Julia ducrozet. Rederik a long road ahead for emmanuel macron. Joe breaking news on walmart april familiar with the matter say the company is close to resolving a longrunning probe regarding to bribery investigations in mexico and china. It appears they will be close to resolving the probe for 300 million, a lot more a lot less than had previously been sought. Perhaps the government have been gone going for at least double that. This has been a longrunning thing. The proposed resolution would require a guilty plea by at least one walmart subsidiary according to people familiar with the matter. Appears to million be what the price tag will be for resolving this probe. From new york, this is bloomberg. Pay walmart is preparing to 300 million to resolve a long my u. S. Investigation into allegations of bribery from its employees according to people familiar with the matter. The penalty would be far lower than what the u. S. Had sought last year. I want to bring in Tom Schonberg who joins us from washington. Thanks for joining us. Why does it appear the final penalty will be significantly lower than what the government had earlier been pursuing . Tom it has been a longrunning case for the government more than five years they have been investigating allegations of , india,aid in mexico china, and other places by walmart, and as they got into this conduct, you know, a number of sources have told me throughout that they just really werent finding, sort of, major payments, or the type of cover up by the company as initially alleged, and it want of being a more difficult case. Last year there were some talks to resolve the case that one person told me they reached as high as the most 1 billion. Obviously, at this point, if walmart is able to get this deal for about 300 million dollars, it is obviously a large concession by the government that the evidence wasnt really there for such a high penalty. And of course, this by thegation, it began Obama Administration did the change prompt a quick resolution in walmarts favor . Tom that is hard to say at the moment. Number of career people have been working on a case people that were on the case during the Obama Administration, and they are still in their positions, and the Trump Administration has yet they still have many unfilled posts at the justice department, including the head of the Criminal Division that would normally play a lead role. I do think it is something that a lot of people will be looking into to see whether or not that moves the needle a little bit. At this point, it is difficult to say for certain. Julia many of those posts remain unfilled. Surely, there will be a problem in gathering the information, but we should also make the point here as well that walmart itself, since investigation began, i believe they have change the ceo, cfo, the heads of the u. S. And international businesses, and overhauled what they are doing as far as ethics and compliance is concerned. His that right, tom . Tom that is correct. The company has spent more than 800 million on the formsigation, wrapping in across the board. So, a very, sort of, significant amount of money spent by the company, you know, up until today. Also worth noting that what im hearing is one of their subsidiaries would be pleading guilty as a part of this agreement, which is still being negotiated, but the company itself may end up with a nonprosecution agreement and a corporate monitor. Tom schonberg,s reports and financial crimes. Thank you for joining us. Julia time for a look at the business the Bloomberg Business flash cell phone video has captured more troubles for airlines, this time clashes in for larry vale Fort Lauderdale, florida. Angry protesters fighting with employees and police. Spirit is blaming the cancellations on a dispute with the pilots union, at the budget carrier is routinely ranked as the worse u. S. Airline in the skies. Find more thanll 1 trillion worth of mortgage or no will us to improve its Balance Sheet and restore investor confidence. The canadian mother has been under investigation by regulators for possible mortgage fraud. They report firstquarter results on thursday. Amazon is escalating its online battle with walmart, reducing the minimum order to qualify for free shipping. You now have to buy 25 worth of merchandise instead of the 35 walmart requires to get the lowcost shipping. Amazon shipping will take longer, though up to eight days as opposed to walmarts to days. That is a whopping difference. Set visiting is disney is that the reporter ins after the closing bell. The Company Making headlines when they cut about 100 espn staffers, including onair talent. Costs andth rising any rodent subscriber base. Lets look at disney as a whole. Companys residence Revenue Growth has been negative in backtoback quarters, the first time that has happened since 2000 and. You can see total revenue in white, and media revenue in orange. Networks are critical because disney gets more than 40 of its revenue from that unit, which includes espn. You can see how the sports giant has lost subscribers for three straight years. Lower revenue is stressed, but so, too, are higher costs. Espn is the highestprice part of your typical cable tv bundle and it is vulnerable to cord cutting because the network generates much of its revenue from since christians. People, as we know subscriptions. People have been pretty quick to cut the cord. 600 30,000 Traditional Service subscribers in the first quarter. Disney might be able to fight off some losses by being part of new streaming Services Like hulu live. Is booming. Siness beauty and the beast is the Worldwide Box Office leader, and disneys expected to lead at the box office this summer with his lineup including offerings like cars 3of the caribbean, all of these proven franchises. The world of avatar opens in orlando, and Piper Jaffray forecast revenue from the parks will climb by 64 . Looking at the big picture, Analysts Expect a return to positive Revenue Growth and bob iger says modest eps growth this anomaly. Be an clueless you with the numbers look like after the closing bell. Reminder, bob iger will join Bloomberg Technology post Earnings Reports. Dont miss that. Joe Small Business prices have not, and in fact i have been going up. We have a chart that shows good news, dipped, and in fact they have been going up. This is bloomberg. Scarlet scarlet i am scarlet fu what did you miss we know apple has caching galore, but over 90 of the cash is stuck overseas and cannot come home without a humongous tax bill. If the government can agree on a tax holiday on the ba110 10 tax on bp treated earnings, tax onould have repatriated earnings, apple would have 230 billion to play with. Option thens of an disney and netflix. What we have improved his enterprise value and the estimated premium that has been 29 here to date. Of these are areas where apple but wepend 230 billion, know apple has been reluctant to shell out for big companies. Beets, 3 billion for but that is the most it has paid for a deal. Julia the big question for me is where do Companies Like apple actually keep the money . Is the cash on some random Balance Sheet outside of the country . Where does it go. . To answer the question i refer you to . Stay with me. This law allows this company to repatriate and, as long as they are buying u. S. Assets Corporate Bonds or u. S. Treasuries. Perhaps we can use this to explain a strange anomaly that happens in the u. S. Treasury markets. Im showing you the biggest holders of u. S. Treasuries per capita. If you look at the yellow bars, island is the Third Largest holder of u. S. Treasuries behind japan and i went. There is only 5 Million People in ireland. Real taxpple has had a battle with the irish concerns about how much money and what is going on with tax practices that are. Surely they are not the only ones. Perhaps this explains the anomaly. The cache is not even yet another countries. It is back in it is back invested in the united states. One final point, if i had put the Cayman Islands here, we would need a chart that which is to the top of bloomberg hq. Joe and i like how the Irish Government likes to avoid collecting taxes when they have this. Julia i like the chart. Joe we have some Interesting Data from the optimism survey. They always ask interesting questions about the nature of Small Business. One of them is are you raising prices right now what inflation is more or less. The white line is the percentage of companies out raising prices. That is the highest level since 2014. You can see at the end, the blue lines core pce. It lives up pretty closely with this measure with nfib. If more companies are raising prices per the survey, it is a good sign that more official measures of inflation will probably rise upward as well. Scarlet i feel like we have been waiting for a long time. Joe we keep waiting. The beginning of 2016 how much hired as any to go to register . Scarlet we are not going higher right now when it comes to equities. We just came off session lows. The s p 500 earlier touching a record high. It is currently down by about four points. The nasdaq still at a record high, up by 12, 6115 for the nasdaq. From new york, this is bloomberg. Julia whatd you miss . U. S. Stocks in the lower today. The nasdaq closing at another record high. Strong boosts from financial and tech shares earlier in the day. Scarlet im scarlet fu. Joe i am joe weisenthal. Welcome you to our closing bell coverage every weekday. Scarlet we begin with the market minutes. The nasdaq closing at a record high, gaining 3 10 of a percent. 500 could not hold on. Industrials dragging down by 37 points. No round numbers today. Joe i hate it. Scarlet industry groups, for out of the 11 sectors are higher. Discretionary stocks, homebuilders, auto companies, travel and leisure, they are higher. Utility and energy are the lacquers laggers. And looking at apple, a record high again. We pointed it out earlier how they have a huge cash board and if they wanted to make an acquisition the world is its oyster. United airlines, part of the discretionary grouping if you want to look out at how people spend their money, higher by 4. 8 . Receiving support from a shareholder. This is afterd Brad Gerstner said it would be going higher. Marriott trading at a record high. Fi