tv Bloomberg Markets Bloomberg May 2, 2016 2:00pm-3:01pm EDT
david: welcome, i'm david gura. what is driving the market on this, the first trading day of may. we had live to the global conference, our interviews were with steven tananbaum and neil chriss. defaults on a payment and the governor admitting he does not expect to be able to make a $2 billion payment in july. we're going to start this hour at the milken institute global conference in los angeles to go to steven tananbaum. erica: i'm here with steven tananbaum.
i want to begin our conversation by dispensing with the myths we're going to talk about liquidity. is there liquidity problem in the corporate bond market? from the perspective dealers, liquidity is different because there are fewer dealers. and their ability -- erik: you were talking about banks. steve: they have less of an for -- if i had 100 million charter bonds, they might have bid for half of them were all of them for five years ago. -- now, they are building bidding for what. they can trade property. the balance sheets are smaller. they've shrunk the balance sheets, so what does that mean for liquidity? that there ismean
more liquidity. that's what you hear. but the reality is different. if you look at the number of and buyers, there are many more and buyers today the weather was for five years ago. and they have a lot more money. if the distribution mechanism. on may not be able to get the wire, it may take an hour or three hours or a day to move 100 million in a liquid mean. but for 80% of the market, which is 1000 basis points are tighter, i would say the liquidity is relatively the same. there are a lot of charts you can look at, what is the total market size versus the volume of. you will see that that ratio over the last couple of years has actually been growing. there's been more volume of trade relative to the market size. i will give you one other comment. ushave a senior trader join over the last couple of months. he was astounded. the liquidity we are getting.
you are an end buyer. matters, you are experiencing this is an investor every single day. why are so many people complaining about lack of liquidity? steve: the dealers generally have less availability. some and buyers who think there's a liquidity problem too. steve: you are looking at the 20% of the market that is you are not going to have it within a multi-market. erik: it's usually a wider spread. steve: and something trays on dollar price, it's a different type of market versus spread, which is usually tighter. if liquidity is fine from the standpoint -- anderson white's find from the standpoint of an end buyer. in the past when the banks were the market, maybe spreads were
tighter. you could move securities master. you're the risk of things gapping down a little more. and spreads her white or. buyer,e standpoint of a that can be a good thing. spreads are wider than what they were two years ago, but if you look at the last two years, they are actually be close to the 20 or average. only triple c has spreads that are wider. as of may 2016. on triple c's, i would say given where we are in the cycle, seven years into a cycle that usually doesn't fall more than 10. that's typical that the most junior part of the capital structure are going to yield larger than average capital strike. erik: a given where we are in the capital cycle, we are seven years into a 10 year cycle, are things appropriate are priced?
knows what the cycle is. we do have a cycling australia, for 20 years. we believe we are probably closer to the environment of 2002. in that it becomes this personal question. are you being compensated for the risk that appears to be given where you are on the cycle? we think you're not, probably speaking. and that the market will reach that direction. we will retest the february lows. downmarket. i can't tell you if it's three months. erik: does it feel like it's going to be soon? steve: it feels quite healthy. think we have a full market short-term bull rally on where we think we will be. given what you describe in terms of liquidity and valuations, what are you doing and how do you take advantage of these numbers? steve: there are a lot of themes.
there is idiosyncratic distress, whether it's puerto rico, there are a lot of boxes to play there. puerto rico misses a 450 million bond payment today. to theit brings people table. we do think there are some boxes that have additional credit enhancements, there are other boxes that we think are a higher priority. have as somewhere we senior relationship. we think it's an interesting situation. bonds defined by sales tax. when you say interesting, are you a holder now? steve: we are. erik: getting more interesting? steve: if i didn't have a position, i would initiate a position. erik: you think the situation is
going to work out in your favor? steve: i think there is a win-win. whenever you are dealing with a negotiation with the government, there are many pass it can go. we think there is a clear win-win that it can happen. theirthey can reduce interest expense, reduce their debt. a think oversight is probably responsible outcome given the situation. it certainly worked very well for washington, d.c. ok, we can throw detroit into that bucket as well, i suppose. things are still evolving or working themselves out. you described idiosyncratic opportunity. it doesn't seem so idiosyncratic if you are energy, it's almost all the stress. you have to have a perspective, it's a commodity. our view is we don't know. that's an honest answer. we think there's a lot of crosscurrents, there's oversupply, which looks like it's dissipating. is also demand issues.
the demand issue medium to long-term can be challenged, given that the largest user's automobiles. we think that what we are focusing on is some of the fallen angels and the companies that have world-class assets. erik: these are families that have gone from investment-grade to junk. yes, are fairly large, have world-class assets and a lot of options. not only could the issue equity, but they could issue debt. you look at something like anadarko, which is a fallen angel. the stock dropped about 25 points. this is a company that we started investing at $15 billion market cap and $15 billion of net debt. we found that very attractive. we felt alike company should be trading around 300 over. that's pretty much where it's
gone back to. erik: 600 plus over. steve: edited up being about 25 points. it can be a lot of deterrents. we think in the fallen angel world that we barney had $100 billion of downgrade of investment-grade to below investment-grade, i think it's actually about 85. we think by the end of the year will be close to 200. we feel as if there is a healthy amount of additional supply coming in, with good total return opportunity. erik: mostly in energy? isve: the majoritysteve: energy, basic industry, oil, service. there are other companies who are being downgraded. but for the most part, it's energy-related. erik: steve, great to have you. david, that is steven tananbaum. bottom of the hour, we returned to los angeles
with neil chriss. let's check on the bloomberg first word news, mark richt and has more from the newsroom. -- mark crumpton has more. mark: indiana's primer will be important to his goal to catch up with hillary clinton. senator sanders is telling supporters with 10 states let's come his campaign needs to earn more than 50% of the remaining delegates of for grabs. sanders says he has 45% of the pledged delegates awarded so far, but only about 7% of superdelegates. $26 clinton raised about million in april, the campaign said it has $30 billion in the bank having intimate. senator sanders raise the first amount -- the same amount last month, marking a steep decline from the $46 million he raised in march. jerry sandusky is back in court as he continues to pursue appeals of his 45 count convictions of child sexual abuse.
the 72 euro claims he was wrongly convicted. he is serving a 30 to 60 year sentence for abusing 10 boys. turkey's interior minister says a car bombing that killed two police officers and wounded 22 others in a southern city near syria was carried out by militants linked to islamic state. up to 50 people were detained for questioning in the attack. in recent months, there have been a number of bombings in turkey blamed on kurdish militants or islamic state. global news, 24 hours a day, powered by 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton, david, back to you. david: still ahead on "bloomberg markets," was driving today's decline in oil prices? that's coming up on "bloomberg markets." ♪
david: this is bloomberg markets, i'm david gura. time for the bloomberg business flash. american express is putting more money to track card molders -- tracking cardholders. amex is working with a sense of urgency to cheap improved results. it's trying to achieve its worst slot -- stock slump. they have todering be, for 72 hours starting today. the company field comply to an order to turn over data in a criminal investigation. the parent of usa today is stepping up its takeover fight for tribune publishing, saying it will withhold votes for eight nominees to the company's board. was$815 million offer
unsuccessful. tribune owns the chicago tribune and the los angeles times. and that is the bloomberg business flash. julie hyman has a check on the latest. julie: we see a little bit of a recovery after last week's declines in with the steepest since february. major averages are now at the highs of the session, even the nasdaq which is been a laggard today with little changed earlier and had been labored throughout the session. if you look at the s&p 500 throw the course of the day, clearly see this movement upward here. we are now up by about two thirds of percent. we see potentially a breaking of last week's losses, take a look at the bloomberg, what happened last week was notable not just , but thef it pullback low the week was lower than the low the week before. if that makes sense. hopefully this isn't too difficult to see. this is a chart the looks of the weekly performance, the highs and lows are essentially the low last week was lower than the low the prior week.
over the course of the week, which according to some technicians, could be a negative sign going forward. beht now, that does look to the case. in today's session, some of the groups that are gaining include the transportation stocks as well as the utility stocks. the transports are closely watched as a proxy for the overall economy. one of the things that giving utilities a boost today is the natural gas prices are falling. the cost for utilities. you can see natural gas is down by about 6%. david: looking at the economic data we got, construction spending is a little lower than forecast. julie: lower than forecast, but the prior month was revised higher considerably. in addition to that, we're the solidonomists say number could even lead to a little bit of an upward revision in gdp. we are seeing homebuilders rise after we got these numbers. for to much across the board, kb of the housing
finance companies are also gaining. pressure hathaway is on this list, i'm sure doesn't hurt that we heard from warren buffett the and all meeting over the weekend , wells fargo also gaining as well as jpmorgan today. david: julie, thank you. still ahead on "bloomberg markets," the outlook for oil. crude is meeting demand with a big drop after beating 20% in april. is this a sign of tough months to come? we are seeing oil down 2.2%. more "bloomberg markets," after the break. ♪
the index has risen about 22% since february 11. the s&p 500 set this year's low, wondering if that tells the whole story. longson joins me now. adam: think for having me. it's a point where we have the same sort of forces we've had all year. macro drivenvery market. i think it's tough to describe as idiosyncratic oil fundamentals, whatever thing is so correlated. we've seen the dollar fall, dollar rise, dollar fall in every asset respond. it's generally what we've seen in oil, which is happened last year. david: i know you've been looking at demand in emerging markets. what are we seeing? the: everyone focuses on u.s. being healthy, but it's less transparent, we are seeing signs of not a collapsed but much slower demand growth on the emerging markets. if you just put it in context,
it's rather simple. china's slowing down, many of these countries cut subsidies, they are very commodity linked. it's hard for them to respond with faster growth and a slower commodity gdp environment. david: is this for gasoline demand? one of thebeen bright spots, the market is extremely bullish on gasoline demand. occurring, the problem is it is decelerating. we've seen that in china and all across the board. one of the problems i personally have is if subsidies are being removed and economies are slowing, it just leaves less money for the consumer. thinking about the reports we saw last week from chevron in a fun mobile, it seemed like indeed that's what those -- that's where there was a bright light. adam: it's been one of the hopes that gasoline demand an overall oil demand have been very strong. if demand is not strong, it just delays recovery and supply can only do so much.
david: reports out about opec looking at production, it seems to be there's a rise more than many people thought. adam: correct. at a minimum, if you look at supply, there's a number of disruptions that help the sentiment. as a litany of those that you can go through. many of those will resolve and supply will come back. the other challenges opec production will rise. even if you put market share debates off the table, you are looking at a situation where saudi arabia will rise sequentially just for seasonal demand, iran is rising, number of countries welcome back. david: it's been a while since we last spoke, we were speaking speculatively about what iran would be able to do. what have we seen? adam: it's a bit mixed. they were at about 3.3 million. that's up several hundred thousand barrels a day. this quite a bit of speculation about if they are exporting, but production is rising. we do expect it to continue to rise. we can debate how large it is,
we think they will get up another couple thousand dollars -- thousand barrels a day. what are the hurdles they face in terms of building up a structure? are not fullys removed, there challenges with getting tinkerers to europe, and questions about lack of investment that they have had in the past. and finding buyers. david: it's across the board, but nothing insurmountable. wele we are on the subject, have this meeting, and gone, nothing happened there. optimistic that the big will happen at the next meeting? adam: i'm not. urgency falls is oil goes up. we see the rhetoric come out that i wouldn't make in my best case, but the risk of some sort of escalation or taking of more market share if prices recover goes up. of our concerns. if you think about the long-term recovery, which everyone seems to be certain about, is there a challenge that opec can present
to that story? do we need thing from the u.s. as quickly? can we grow? i can't doubt the resource, just the will. david: what role as the u.s. playing? adam: u.s. as the swing producer. it's a fast-paced response rate mechanism up and down. story, a keythe focus of many producers around the world as some thing that seems to get cheaper and cheaper, better and better and can respond not overnight, but given time, faster than anybody else. david: it's a critical components. talk about the bottoming out process for oil. adam: i think we've seen close to the bottom. ,f you look at where prices are it's going to lag three or four months. we probably saw the bottom and prices in january, we count should be closed and thing should be picking up. risk of stimulative supply to quickly, producers getting too excited to quickly
as we saw last year. while demand is flowing. i take a step back and say if macro fundamentals have essentially been driving this market and that's the marginal investor, is it macro things that cause them to be scarce? time't remember the last there wasn't a scare in the summer. when i think about what economists are saying, they'll see a risk of deceleration later this year. the u.s. dollar strengthening back. all of those things could be a catalyst for selloff. when the market is as long as it is, which is very different than equities, ironically. full process. david: take a lessons from the learnings -- the earnings from last week. exxon mobil was able to do well because diversified. you look at chevron is a company that's gone into liquefied natural gas. do the best the direction this industry is going into -- more diversification? always beenisadam: a strong tomato diversify or
integrating or not great the key lessons that come out of this are don't fall in love with debt , don't fall in love with leverage. and if it's going to be a cyclical injury, and more so if the cartel is not there to help, those of the types of lessons i think we learn -- shore up your balance sheet, be more protective, more thoughtful, hedge more which is a key contract for oil prices it wasn't there before. i think those the types of lessons -- the debate of how you structure company will continue to be there. david: adam longson, morgan stanley research commodity analyst. still ahead on "bloomberg markets," neil chriss. also look at stocks on the way out. all in the green. more after the break. ♪
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mark crumpton has stories from the newsroom. mark: facing a make or break moment, ted cruz is a blitzing through indiana in a desperate it to overtake donald trump in the states primary tomorrow and to keep his own white house hopes alive. he is the only -- donald trump is the only candidate who can neededhe 1237 tilde gets for the regular voting. senator cruz is still try to push towards a contested convention. the first u.s. cruise ship to cuba and nearly 40 years crossed the straight and pulled into havana harbor. becomes theer ship first american christian to dock in havana since president jimmy carter eliminated all the restrictions. u.s. cruises to cuba only became possible after president obama and cuban president raul castro again the process of normalizing relations in 2012.
another measure is on congress to help solve puerto rico's debt crisis. the u.s. commonwealth will default on a two under $40 million bond payment towards developing banks -- $240 million bond payment. congress is working on a rescue plan. playground concussions are on arise in monkey bars and swings most often involves. that is according to the centers for disease control and presents in. most -- and prevention. most 214 kids were treated annually. some had brain injuries including concussions. global news 24 hours a day powered by 2400 journalists in more than 150 news bureaus around the world. i am mark crumpton. back to you. david: commodity markets closing in new york, let's look at the biggest movers. gold advancing over $1300 an ounce. that is the first time since
january 2015, crows closing at 1291. for the first time in three sessions, this was over data showing manufacturing cooled in december. wti closing just under $45 a barrel, down for a second day after rocks exports approached record high in april and opec boosted output levels very little back to the global institute in los angeles where we are joined by hutchison hill capital. reporter: thank you once again. neil, nice to see you. yours here at the milken institute level conference to talk about hedge fund industries. we have pretty good fellow panelists. hat is your view?
neil: there's going to be a lot of conversation about where we are going in this industry, hedge funds performing ahead of the last quarter, what does it mean, and where the industry is heading. reporter: dan lowe describes the first quarter as catastrophic. he said the hedge fund industry is in the west of the -- midst of a washout and more specifically in certain strategies. do you agree? agree, butee, i do the timing of the question. hedge fund investors are frustrated, but more importantly, they are frustrated with the performance is too much .ike the end of season i think it will cause closing and eventually eight period of consolidation. reporter: why not now? inertia, aesult of
lot of momentum, investors that want to be in hedge funds, also a lot of fear. equities are near a high in the u.s., monetary policy may be in its last gasp trying to stabilize financial markets, and people are afraid. reporter: so if dan uses the term washout or tilling field, what is the turn you would use? neil: a wave of closure and consolidation. yvonne: not quite as bad. neil: no. erik: how does that compare to the last cataclysm of the industry? neil: there will be higher demand for hedge funds either to outperform the industry provide something truly differentiated from the industry. so that will lead to some hedge funds saying we can't or are unwilling to make investments to do that. erik: you run a hedge fund, $4 billion in management.
from the research you have done, to what extent do they truly generate excess return? neil: we haven't done that kind of research, but a small fraction is due, a small fraction have. erik: i guess i would almost say, what do they have running a hedge fund if you can't generate excess return? neil: there is a moderate try. it is a market question, will investors try to generate this? be a big seachange. erik: from your perspective, you are all about uncorrelated returns. what is more if valuable for the investors, fewer alpha or uncorrelated alpha? neil: that is really a question for the investors portfolio.
they can find monetary strategy that would guarantee they are up every year 30 percent, 40%, but usually they want diversification. a blend of many different types of returns. we provide something uncorrelated with usual markets. for oneing back to low moment, you lousy performance the industry has put in to the theeasing -- future muted lousy performance the industry has put in -- neil: we are in an unprecedented period of monetary policy. what happens is investors become incredibly reliant on capital appreciation. you seed of environment swift reactions, good news, you see a lot more volatility. erik: the ultimate uncorrelated returns among hedge funds. why are they so many crowded trades, wire hedge funds in the same division? neil: there is a lot of smart
people they are our good ideas. evidence is the hedge fund the ip index that goldman sachs puts out, the total return, 200 basis points a year. on the other hand, another reason. a lot more knowledge, there are conferences were people talk about ideas and exchange ideas, and there is climate change. erik: i'm sure you saw warren buffett again attacked hedge fund fees and also consultants fees. is he right to go after fees? neil: i think he is right to raise the question. investors should be getting something that justifies their pen. so it is not one-size-fits-all. there may be some hedge funds that don't deserve to see if they get market shares. there are other hedge funds that are performing significantly above industries providing significant [indiscernible]
erik: are these coming down on all? are you seeing pressure? neil: yes. erik: to the lp -- when i say personally at hudson hill, you deal with limited partners, many investors also invest in other hedge funds. neil: this is ongoing and a persistent conversation always with our investors. erik: how will we see yet evolve over time? neil: investors are going to go with their feelings. they will redeem the hedge funds they don't feel like giving them something that is worth the fees they are paying, and that will force hedge funds out or force them to lower their fees. erik: we have seen a number of redemptions, larger macro funds have returned capital to investors either voluntarily or involuntarily. will that continue? neil: there have been massive outflows to begin with, and
hedge funds have seen some lows, but the results of the general shifting around the act of rotation into some. so regular demand for hedge funds, there could be more at output. erik: where does the industry go from here, and specifically -- so that is broad, and specifically, how are you managing such an hill -- hutchin hill? neil: the hedge fund industry is only going to respond to demand for more high quality output by upping the ante. there is data, competitions, people to produce high-quality outflow, but it will make them more expensive and need affects to run, because they cannot raise fees. what we are doing is developing strategies around the world and
capabilities, continuing to abilities to allocate across strategies. and continuing to develop, provide a very low beta, traditional alternative products. erik: great speaking with you here. neil chris. this.ith back to new york city. in the next hour, we would hear from the cio of a cure. misso rico is poised to eight $242 million bond payment, the biggest people in the long-running debt crisis. should congress save the island? ♪
♪ david: this is "bloomberg markets." time for a business flash a look at the biggest stories. slower paceg at a in the u.s. last month, still struggling with a stronger dollar and week mobile demand. demand -- we can global demand. baker hughes has a buyback back shares to supply organization to save $500 million annually after the collapse of the planned merger with halliburton. they will buy back shares totaling $1.5 million and debt of that, using the proceeds of the breakup fee. 200 dollars pay a current -- hulu is offering a new thing.
the online video service is in talks with two of its owners, 20th century fox and walt disney, gaining rights to channels like fox and espn. hulu has not progressed as far with comcast, the largest cable operator. wherego to the markets julie hyman has a look at the snp's biggest winners and losers. julie: stocks are up at the moment, half a percent, 0.6%. one of the percentage performers, up nearly 7%, after the latest casino revenue. still seeing declines, but smaller than estimated, 9.5% instead of 13% estimated by analysts. services, the food coming up with quarterly estimates. on trimmingfocused expenses. the company or member was
supposed to take over u.s. foods last year, and then the acquisition was terminated. in thebeen cutting costs interim, and that helped expand margins, shares her writing the largest in two months. cabin oil, they came out with earnings on friday, did not do much. we are seeing shares up 3.5%. some analysts are saying it is production outlook more positive, the stock having the biggest one-day gain since august. another we have watching is amazon getting praise from warren buffett at the halfway meeting. jeff bezos particularly getting those, those shares rising 3.5%. it is leading gains overall in the consumer discretionary box. on the downside we have earnings from seagate, out with earnings on friday, shares fell sharply. analysts downgraded the stock,
particularly bank of america, merrill lynch say it could be in jeopardy at the level it is that now. the energy industry, that is the second quarter loss wider than it had been estimated. those are some of the losers and winners at the moment. david: thank you so much. still ahead on bloomberg markets , a group of bondholders on ways to find solution to the puerto rico debt crisis. that is coming up after the break areas ♪
david: this is "bloomberg markets." puerto rico defaulted on a $240 million bond deal, so the pressure is on congress to solve the debt crisis. press secretary josh earnest addressed in this. >> the situation gets worse by the day. and some days, and some days, the situation gets notably worse. it only makes a bailout more likely, which is why we continue to press hard for republicans in congress to stop dragging their situationo address a that is having a negative impact on more than 3 million americans who live in puerto rico. david: we are joined by judd gregg. he is coaching senior bondholders on the puerto rico crisis. how big is this milestone. this is the biggest yet. put this in context. judd gregg: this is the
beginning of the waterfall effect. if it continues, puerto rico will go into some kind of economic cardiac arrest, and that will be expensive for american taxpayers because puerto ricans are american citizens. they have a large number of people, they will be picked up by the social safety net. this is an opportunity to see some governing. i congratulate speaker ryan and chairman bishop because they have to put together a bill the purpose of which is to govern. it does not cost taxpayers any money, it does not use bankruptcy or set out an outline of how to use this debt crisis. david: i just spoke with stephen ,enenbaum of triage management he said he was optimistic there could be a solution. win-win.k there is a when you are dealing with a negotiation with the government, there is, there is a pass they can go, but there is a clear win-win that can it happen, they
expense,e risk that -- oversight is possible given the outcome. it works very well for washington dc. david: so do you share his optimism? judd gregg: i share his view there is a win-win situation, and if the speaker's proposal work chairman bishop's proposal can be passed, how you get to the resolution, it is constructive and will give puerto rico the breathing space they need and without any taxpayers dollars, then yes, we can accomplish that. david: what has been the difficulty on capitol hill? a lot is a word folks have been reluctant to use. it has been bandied about. there was legislation that was largely disliked. one thought that was a good sign.
i -- judd gregg: i think it is a good line. it set up a process we would bring bondholders together and have an agreement, and then you have an oversight board like the city of washington, and it worked. you have very strong outside, federal oversight. that is the right approach. what is the retardation? politics read this is an election year. much easier if you are candidate not to take a position then to take a position on a because you have to explain it, and is not easy to explain. so the calendar works against us. it is one of those situations where it is not going to cost taxpayers anything if they take action and govern, but if they don't, and you go into this economic spiral in puerto rico, it is going to cost taxpayers a lot of money, because you to support those folks to leave the island. david: how clear is the threat of legal action?
a lot of lawyers are waiting in the wings to see what happens. [speaking simultaneously] judd gregg: i don't think legal action is the right course. i think the much better action is to have congress pass a bill which believes -- which gives a clear pathway. legal action is an alternative. david: there will be people looking at this play out and say this is emblematic of everything that is wrong with washington today. the senate will only be in session for a hundred 24 days this year. there does not seem to be much urgency on capitol hill. , easilyre it used to be elected representatives. have things changed, and is that hurting? judd gregg: what is changed is the congress has started to become atrophied by its own structure, specifically the house of representatives, because so many districts are gerrymandered to be one-party districts.
the immediately get challenged left or right depending on the district. so it is not set up to compromise. the checksum balances requires consensus. you cannot govern in america by standing in the corner. you need to be in the middle. and gerrymandering has undermined that. and on social media, the shouters take the floor. issues,k about these they shout. that forces discussion off the table. david: we will take time to talk about the primary tomorrow in indiana. you through your support behind governor john kasich. judd gregg: i did. david: what is his plan going forward who are judd gregg: i haven't talked to him, and he has a long road and it is a narrow path. donald trump is on the superhighway, he is on the dirt road running along beside him. it is clearly, if donald trump wins in the indiana, it seems he is the nominee. david: is donald trump someone you could support? judd gregg: i went to hear
marcie has to say. he seems to be erratic and superficial. i want is here what he has to say when it comes to responsibility, the response ability of being a nominee. david: as you watch all of this play out in the republican party , how do you react with it? splityour he clearly between popular on one side, establishment on the other, strong conservatives in the middle, how do you react the way things are fracturing? judd gregg: our party is fracturing, but moreover the personality and populism, which is resolvable. the democratic party is truly fracturing, because they had been divided. you have a socialist winning eight of the last nine contests, and that puts him in a position where they are saying, we believe the mainstream american economic side, market-oriented capitalism, and we will use to -- moved to socialism where it
has failed everywhere like venezuela, greece, spain, the soviet union. so we have a bigger problem there than we have. yes, our party is fractured, but it can be pulled together. yes some of their party is on a very destructive course. david: former new after senator judd gregg. thank you for being with us in new york today. coming up in the next hour of bloomberg markets, more interviews from the milken institute conference. ♪ a lot of green as we have been talking about. this and the 500 out -- s&p 500 up. ♪
david: from bloomberg world headquarters, i am david gura, and this is what we are watching. markets are adding green after the biggest weekly loss in february. we start in may with a traditional may headwinds. how should you play the market? and kim blackberry right to the ship. and this hour from the milken institute in los angeles. and the highest breed -- high-speed, the next wave of rules coming out for the derivative industry. one hour a with the close of trading, stocks are hampering -- hovering around session highs. julie: the s&p was down last , the last since you are a fifth, so seeing a bit of a bounce back. it is on lower volume.