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tv   Bloomberg Markets  Bloomberg  May 15, 2015 2:00pm-3:01pm EDT

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ia: the honeywell ceo's is the hitch the euro for the first time in years. isk: american ballet theater selling its 75th anniversary. how the ceo or revenues by nearly 20%. scarlet: the preakness is running tomorrow could what are aoh words that american phar could win the second leg of the triple crown? mark: good afternoon from bloomberg world headquarters in new york. i am mark crumpton here with scarlet fu. scarlet: tgif. mark: yes, it is. scarlet: we have been trying to make our way back to the unchanged line. haven't gotten there yet. if you look at treasuries, they
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are rallying for a second day. soft data on empire manufacturing and industrial production as well as consumer confidence. all seen as a challenge for in interest-rate increase. take a look at the dollar, mark. and stephanierik talking to mr. cote about the strong dollar impacting business and honeywell. we are starting to rebound off of this little bit. we had a decline earlier. a check of oil -- nymex crude, while, look at that. drop, saw its to fight back up again. scarlet: stuck at that level. mark: stuck at that level for quite some time now. ceo, notsaid he is a oil predicted. either way, it was a great
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interview with mr. cote. watch it on scarlet: we will bring you highlights later on. mark: it is official, russia's economy has had its first decline in six years. it's something 1.9% in the first quarter, better than all forecasts in the bloomberg analyst survey. growth to stall the last year of the u.s. and western europe imposed sanctions over the fighting in ukraine. plus, while prices collapsed and the ruble plunged. a judge may end up deciding how much money victims cap from the fatal amtrak derailment. is $200 million. eight people died in the crash in philadelphia and more than 200 were injured. investigators say they may get some answers about why the train was feeding in the next two days. i am pleased to report that we have contacted the engineer and he has agreed
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to be interviewed by the ntsb, and we look forward to that opportunity. we will be meeting with him in the next few days. the: the lawyer for engineer of the throttle says his client suffered a concussion in the crash and recalls little. but he says the engineer was not under the influence of drugs or alcohol, and that he wasn't using his cell phone. the u.s. marines are confirming that the wreckage of a missing helicopter has been down. -- found. the copper disappeared while on an earthquake relief mission today was -- it was carrying six marines and two nepalese soldiers. it is unlikely anyone else survive. video of the elevated helicopter showed a marine delivering food and supplies to earthquake victims. scarlet: the prime minister of india is calling on china to reevaluate how it approaches disagreements between the asian giants. narrated for modi -- narendra
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modi's specifically concerned about a long-running border dispute. the countries had a major border standoff last september. investor carl icahn is raising the stakes in a car booking battle between uber and lyft. ican has put $100 million in lyft. one of the managing directors at his firm will be joining the board. consumer confidence has fallen this month by the most in more than two years. the university of michigan index for may was lower than the lowest estimate of economists surveyed by bloomberg. news that the economy stalled in the quarter shook many americans' outlook. the increase in gas prices also hurt. people are more worried about losing their jobs than any other time since 2009. speaking of data, factory output stalled last month and manufacturing was virtually unchanged in april. for the fifth straight month,
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total industrial production decline. as youturers, mark, know, have been hurt by this strong dollar. mark: mitt romney's strong he's had in the ring again but this time it is a boxing ring. he is taking on former heavyweight champion evander holyfield at a charity bout in utah. mr. romney: you may think this is a joke but i'm taking this very seriously. hello? evander holyfield: that day, i got to be the best. mark: the two are raising money for a charity organization to help impoverished people around the world. wonder if anyone disclosed any shoulder injuries. that is going to have big repercussions. mark: did you really just go there? scarlet: i did. mark: oh, man.
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coming up in the next half hour they are selling melted ice, yes, they are, from nassau coliseum at $20 per half ounce of viable. scarlet: the business of being born in america. "bloomberg businessweek" reports on a crackdown on deluxe services that help mainland chinese women come to the u.s. and have babies here and go home. mark: hilton has to myanmar. the country's welcoming western companies. we will look at myanmar's does this transition next. scarlet: honeywell international is one of the biggest companies in the world and chairman and cote sat down with erik schatzker and stephanie ruhle on bloomberg television. mark: they discussed honeywell's investment strategies and how the price of oil changes things for the company. isid: the big thing for me
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to be able to operate regardless of the environment. part of it is to ensure that nothing is ever a big piece of the portfolio. there is no one thing that makes the company, either. we have got to be consistently good operators everywhere. for me, oil and gas is 10% of the company. but at the same time i need to people to operate that 10% as well as i can. stephanie: what are you doing so well? honeywell stock hit an all-time high. david: yeah, it is kind of nice. since we broke 68, the old is kind ofgh, and it nice, it happens pretty regularly now, but the thing that we do is to make sure we operate our business is effectively. diversity ofhe opportunity, which sounds like a catchphrase, but it is real. you look at the businesses, the macro trends, the --graphies, like looking like having a lot of bets in a lot of places.
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by the same token, the majority so inm are going to kill the first quarter, we had a 10% earnings increase when the nearest competitor is something like two or three. dollar?w about the david: oof. i like dollars. [laughter] erik: the dollar has been very volatile. the pound strengthens, the euro strengthens, the weakness of the japanese yen has timeline for the time being. how do you manage that? david: in general i never did. my real trick is doing the best i can to overtime match currencies. when you go to asia we had asia manufacturing design capabilities. same thing in europe, same thing in the americas. you can't predict where it is going to go and if you do, you will be right half the time in a job like mine. trying to predict it is silly. erik: you say you never did get
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does that mean -- david: i still don't. this is the part that's interesting -- this year i hedged the euro for the first time -- stefanie: why? david: i felt like for the first time ever there was a crash coming. stephanie: what made you think that? watching what was happening in europe and what mario draghi said he would have to do. i felt with the oil price decline interest rates would rise. we hedged the year at $1.24, which looked pretty smart right now. but i say that the thing with currencies never know is are you going to be right at the end of the year. you don't know. but i felt like a high probability outcome was that the dollar would strengthen. we hedged for the first time in years and it was a good call. dropped and didn't
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get to parity and now it is back to the 114 numeral -- $1.14 neighborhood. if this is where we stayed will you hedged next year? david: i already hedged at $1.10. i looked very smart when it was $1.05 and now i don't look so smart went it is a dollar $.14 -- $1.14. i felt my investors and operating businesses needed more certainty. if you have that kind of certainty in makes it easier to make the operating decisions you need to. you have received so much praise from investors and look how well the stock has done. this massive rise of activism -- it sounds like ceo's are waiting for activists to come knocking can have you change your behavioral? not really. i have always try to run the company based on a number of perspectives. i don't want to just make this quarter. i want to make this three years
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from now, five years from now. seed planting for the long-term the other thing i've tried to do this if i own this company, what would i do? if you approach it that way it allows you to ignore that your projector going on and go ok, what is the right thing to do here, and stick with your convictions. for a while investors may argue why aren't you doing this, why are you doing that. but if you stick with it you can get somewhere. i got this a lot when i first got to honeywell. everyone wanted me to sell the specialty materials business. i kept saying that it was a bifurcated business, half good, half not. what should i do the part that is good and allow another -- is someone else's share owners to get the benefit of the good business? today pmt is a $10 million business. it was $3 billion back then. that was honeywell ceo
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scarlet: that was honeywell ceo david côte speaking with erik schatzker and stephanie ruhle. the company is very active in looking at companies in core aerospace business or adjacent, nearby areas. maybe we will fight a headline in the coming days or weeks. mark: as he was saying during the interview, they look for areas where there is volatility and they want to explain that to investors, they want to explain whether strategy is and what they are doing, and the stock is up this year, first quarter it was up as well. ceo, côte, honeywell investors are pleased with his performance. scarlet: he can come back onto bloomberg to explain those moves to investors. how about that? mark: absolutely. still ahead, you can on the ice at nassau coliseum. it is the former home of the nhl's islanders pick we will tell you how much it will cost you, next. ♪
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mark: welcome back. im mark crumpton, here with scarlet fu. scarlet: let's check in with julie hyman. jules? julie: it has been a lackluster session. the nasdaq up by a quarter. it seems like we closed with that record for the s&p yesterday but couldn't hold it. we have utilities up and financials down. let's check on some of the movers, though. there is news that broke in the last hour that has affected the stocks involved. the maryland public service commission approved pepco's
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acquisition, a six pointed $8 billion deal. it is subject to 46 conditions, but nonetheless, it is an approval. you see what happened to the shares. and pepco spike and pepco is the best performer in the s&p 500. speaking of strong performance, look at netflix as well. people familiar with the situation say netflix is in talks with the media company controlled by jack ma as well as potential other partners to get into the chinese market for online video. that would be, honestly, a big market for netflix. shares going to a record above $600 for the first time. the worst performer in the s&p 500 is green mountain. remember that system that was much heralded of the company announced it would be coming out with where you could make cold drinks like seltzers to compete with soda stream? it will be delayed to some
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degree. more than analysts had anticipated, it will not be fully rolled out until next year, 2016. investors are not too happy about that and they are sending the shares lower by 8%. much, julienks so hyman. i feel like they have been talking about that for a long time, the cold beverage system. it hasn't come to fruition. mark: it's -- scarlet: are you going to buy one for the holidays? mark: how did i know you are going to ask me that? no, i'm really not. i'm going to the store. let's look at the stories crossing the bloomberg terminal. speaking of sodas -- is dropping sodas from its children's not even though its owner is famously fond of carbonated drinks. dairy queen is part of warren buffett's berkshire hathaway empire. he enjoys ice cream but he is a big fan of cherry coke. dq is following similar moves by mcdonald's another fast food chains. the ever-growing list of republican presidential candidates could soon get even bigger.
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former texas governor rick perry will announce on june 4 if he is making another run for the white house. he is the longest-serving governor in texas history and is spent months traveling in the early voting states of iowa, new hampshire, and south carolina. an icon of american music is dead. bluesman bb king died last night in his home in las vegas. he grew up in poverty on a mississippi cotton plantation but became one of the most influential guitarists of the 20th century. he inspired everyone from eric clapton to jimi hendrix and had one of the first blues songs to reach the pop charts, "the thrill is gone." the great bb king was 89 years old. those of the top stories we are following this hour. scarlet: another story that caught my eye -- it is for you, mark crumpton -- the end of nassau coliseum. the new york islanders will be moving to brooklyn next season. they are trying to make money and give fans a piece of the arena.
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at $20ll be selling ice per half ounce of i'll be that is the headline. this could be a huge payday for the isles. you double this for half an ounce, 256 ounces -- this is math here --you are looking at me like -- mark: somebody to research on this -- somebody did research on this. $120 a gallon, it thousand 500 gallons to fill the whole hockey rink. they could make $4.3 million if they sell all the melted ice. mark: i just don't know what to say. is. water is what it scarlet: its water from nassau coliseum. in the 1980's when they had the islanders dynasty -- i would want a piece of the boards or maybe a seat. scarlet: maybe you could blow on it a little bit. mark: the great mike bossy. scarlet: i was thinking about
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this -- if they really wanted to get maximum dollars for it, they could get new york rangers fans on this. how do you do that? put "top man sucks" on the vial. even i would pay for that. i had to put that in. up, the head to myanmar and worth hilton hotels are setting up shop. scarlet: i think the answer is yes. ♪
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mark: myanmar is open for business after decades of economic isolation. the country once known as burma is rolling out the welcome mat for western companies, and hilton worldwide is the first
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u.s. hotel giant to set up shop. erik schatzker traveled to myanmar to see the potential and the challenges of operating in a new frontier. erik: for almost 50 years, this was off-limits to the west. like cuba, myanmar was a closed economy. now the country once known as burma is opening up. ofjust imagine the billions dollars to get energy, roads, infrastructure. that by default is a tremendous opportunity. only three years since the u.s. lifted sanctions. hilton moved fast. already there is a 200-hilton in the new capital city, a luxury beach resort on the bay of bengal, and plans for at least
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three more hiltons. >> after the sanctions were lifted, there was great interest from a business perspective to come to the country, and also from a leisure perspective. erik: for decades this was what the world knew of burma. a brutal repression under a military dictator. tourism is taking off, growing by more than 400% in 10 years. the rest of the world is starting to discover myanmar's breathtaking beauty, its rich history, and of course, the food. >> this is the riverfront. look at the size of that, look at the color. they are naturally very sweet in flavor. why do people come? that's why. is missing in myanmar our first world standards. after so many is isolation, the economy can barely meet the basic needs of western companies, like hilton.
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>> trying to make five start from scratch is quite a challenge. finding team members, settling them here, getting supplies to the hotel, a lot of logistic challenges. to more than wants double tourism in the next five years. the government has a list of friends in business to help. hilton's partner is a construction tycoon that a u.s. state department official once called an up-and-coming crony. tell me about your strategic partner. >> so far we have nothing but great respect for each other. a lot of robust due diligence is done before we choose business partners. so far so good. gdp couldmar's quadruple by 2030. you can't see the scale of ambition in the new capital, carved out of forests and fields in just a decade. lefthe enormous city has
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-- less than one million inhabitants. judging by the grill used international airport and the deserted 20-lane highways, hilton may have to wait for years to earn a return on its investment. mark: that highway shot is pretty telling. scarlet: pretty amazing goodhearted erik schatzker get a trip to myanmar? mark: probably by asking could the point he made that the gdp may quadruple by 2030, that is fascinating. scarlet: from a low base, though. mark: very much. scarlet: the law of big numbers and small numbers. mark crumpton, your weekend is here now. mark: my weekend is here. good to see you. scarlet: we have much more coming up. birth tourism in the united states.
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fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. [beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place ♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight scarlet: welcome back to the bloomberg market day. i am a scarlet fu.
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let's get straight to stories making news this hour. we begin with the decline of the russian economy, the first in six years. gdp fell 1.9% in the first quarter, but that was actually better than forecast. u.n.h stalled after the and u.s. in those sections over fighting in ukraine. plus, oil prices collapse and the ruble plunge. how much money victims of the fatal amtrak derailment could receive could be in the hands of a judge. calculated atwere $200 million. eight people died and more than 200 were injured. investigators say they may get some answers about why the train was speeding in the next few days. robert sumwalt: i am pleased to report that we have contacted the engineer and he has agreed to be interviewed by the ntsb. and we look forward to that opportunity. we will be meeting with him in the next few days. scarlet: the lawyer for the engineer of the throttle says his client suffered a concussion
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in the crash and recalls little. but he says that the engineer was not under the influence of drugs or alcohol and he was not using his cell phone. carl icahn is jumping in the middle of the car booking battle theeen uber and lyft, and investor is raising the stakes could he is putting $100 million into lyft, which accounts for the biggest chunk of the companies $150 million round of funding. one of the managing directors at carl icahn's firm will be joining the board. p athis painting by montréal and went for $50 million last night at christie's. it was an auction record for a modernist painter and it sold your the end of a record two week frenzy in new york. billion has $2.7 been optioned at risk is, so this piece -- at christie's and sotheby's. those of the top stories is our. -- this hour. coming up in the next half hour, american pharaoh takes a second shot at winning the preakness
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tomorrow. the american ballet theatre opened this weekend against company ceo will be talking about the 75th anniversary and the good life segment. you can see the highlights from today's heated interview with ken langone as well. all coming up in the next 30 minutes. of all the things to do in new york city, visiting 1 world trade center when it opens this month will be on the must-do list for tourists and natives alike. norths what the company's america ceo had to say. patrick: the opportunity to be on site as we were going through the process of installing the agreement was huge in motion and a great sense of pride. scarlet: it explains why china is a great area of focus for the committee. patrick: china is a key growth area. superok at the number of tolls in the asia area, it is substantial.
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look at london and new york and it was more paper for high-rise facilities in those two cities than in the history of my career. it is a fun time to be in this business and it is all driven from urbanization. urbanization is the key. scarlet: patrick says he sees no evidence of softening in the u.s. economy despite the latest data we've been getting. according to the 14th amendment, any child born on american soil is automatically a u.s. it is. fast-forward to 150 years after the law was first passed. companies are organizing trips for pregnant chinese women to travel to the u.s. to have their babies, and uncle sam is not happy. susan burke feels about about this birth tourism in "bloomberg businessweek" and joins me now. you were introduced to countries like -- i love this name -- usa happy baby. how do these countries work? susan: they are based in the u.s. but have representatives in china who recruit primate women
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and guide them through the visa process and also the customs process here in the u.s., bring them into apartments -- in this case from southern california -- give the recommendations for doctors and hospitals, for a month after the birth provide women with special foods, nannies, to make sure they have a passport for their kids, and then they go home. scarlet: what is illegal here? there is the visa and getting the visa. they are paying hospital bills, not skipping out on the bill, either. were not themen subject of a recent homeland security investigation. they are material witnesses and the agencies themselves are being accused of tax evasion, essentially money-laundering, in the visa fraud comes in with the question of whether or not the women were coached to actually lie during the visa process, and also whether they were explicit about when they were coming to the u.s., what their intentions
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were. they come on tourist visas, but that is fine to come here -- scarlet: i be pregnant. susan: you can definitely be pregnant. scarlet: is there a problem in the application process where they say "you look pregnant"? susan: there is a now. so people are asking the state department to be more clear and exquisite about that. what it is not illegal to do so. generally the officers asked, what is your purpose. if they find out you want to give birth or are coming for any medical treatment, they say, can you pay for it, and then come are you attending to go home? those are the two main concerns of the state department. scarlet: let's make a decision between what is going on with birth tourism and what people say is illegal immigration -- these are not people who are coming over and plan to stay in the united states. they are going back home.
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so far for all of women the intent is to get a u.s. passport for their newborn and benefit from that in terms of possibly education, eventually the child being able to come back. when the kids turned 21 they can petition for green cards with her parents. but the intent for the women is not to move to the u.s. with their kids. scarlet: it's an insurance policy for the kid for the future. -- if i werestion to have a baby in china, not that i am going to, what he or she be given chinese citizenship? susan: no. america and canada are the only developed countries, among the few countries in the world that automatically grant citizenship to anyone who was born on u.s. soil. scarlet: what kind of discussion is there on regulating this birth tourism? it has homeland security hot and bothered and i'm sure congress wants to take us up at some point, too.
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challenging the 14th amendment is a serious matter and republicans over the years have tried to limit the scope but it has never gone far. the bigger kind of problem and immediate possibility for change are bringing the business you're out of the shadows and regulating it. are coming over and staying in apartments are being provided food, medical care -- scarlet: there is an ecosystem around us. people aret of benefiting. if it is they deleted, potentially a little less profitable, but out in the open. scarlet: are these u.s. or chinese committees? based in the u.s. but operate in china? susan: it is all a little murky. they have representatives in china but the bulk of their operations are here. nannies, cooks, drivers. the bulk of their business is
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here, but they have to make sure there is a steady flow of women from china. scarlet: how big a priority is this for homeland security? susan: home it's a pretty has a lot. [laughter] but they put a lot of resources into this. berfield, love this story. about -- i1985 for 1985 throw back. >> ♪ we are the world we are the children ♪ scarlet: why are all these foreign ministers singing "we are the world"? the answer when we come back.
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scarlet: breaking news -- the boston marathon bomber jury has reached a penalty in the decision phase for dzhokhar tsarnaev. the court is not returning until 3:30 eastern time. we will bring you the headlines in the decision as soon as it comes. the jury has reached a decision in the penalty phase of the trial. joining me ise, alix steel and she will help me get a check on how commodity prices have settled. the dollar is weak or once again. are we to assume that commodities are higher? alix: no. oil on the longest losing streak since march. we have the bigger sees this reactive baker hughes number -- we have the baker hughes number. nobody cared about that and now everybody does. ok, the number of rigs that were cut, 8.
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illegal for added -- eagle ford added 2 rigs. balkan, nothing. ofrlet: the stabilization oil prices at around $60 is giving people a reason to go back to and produce more? alix: right, or bring up their wells that had been drilled but not filled. perhaps hedging production. a lot of hedging for 2015 because of the rise in oil prices. bank of america is coming out and saying you are looking at $50 oil because we have so much oversupply. scarlet: that will keep the cap on prices. ix: that is a conversation in the market. every rallies met with more production which leads to a decline in prices, keeping some kind of range bound. opec, of course, isn't cutting it all. scarlet: saudi arabia sticking to its stance -- alix: not just that. $800,000 --,
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800,000 barrels a day in june. it is not just saudi arabia, it is members of opec we need money. scarlet: what about other commodities? alix: natural gas had a really interesting week. it was hot. never wednesday? -- remember wednesday? it was like 90 degrees. watch out for rig cuts here. if you cut oil rich, you might be cutting nat gas rigs. you cut therigs, you cut supplies. the dynamic to look out for in this market. scarlet: natural gas is the forgotten stepchild here. --x: it seems to be the case there is the whole other issue. the other commodity you have to watch his goal. i pointed out because it tends to move inversely to the yield. we also had a report from the word gold capital saying demand sunk in the first quarter.
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investor demand was good, jewelry demand was pretty terrible. india was ok, china and the middle east were not. that is a negative. china has been touted as the make up for what india falls off. they had weaker demand of the first quarter. scarlet: what happened to the indian wedding season? alix: there was an issue about taxes. you are paying more to import. if you import a certain amount, you have to export a certain amount. the whole idea is that narendra modi's government would change all that. scarlet: you are going to stick around because i want you to take a look at this. there is a real feel-good moment at the end of the latest nato summit. foreign ministers join together and saying the modern version of "kumbaya." >> ♪ we are the world we are the children ♪ out theirhey belted rendition of the 1985 charity single "we are the world." in place of cyndi lauper, huey
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wass, michael jackson, this greek and turkish officials singing their rendition. way, they went to the turkish summit after briefing the eu on the smuggling of migrants across the mediterranean sea. a big conversation on twitter -- they said you are promoting peace and yet you are sending troops into afghanistan and iraq and libya. there were crazy tweets out there. "they should says, stick to singing instead of their usual bombing." scarlet: ooh. alix: "better than nato warmongers singing 'we are the champions.'" a lot of ridicule based on the
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harmonious singing, although it was pretty bad. scarlet: i'm just a surprise they knew the lyrics. that they were singing "we are the world" and they had the melody and harmony. everyone knows how to karaoke so they probably sang it at karaoke a few times. alix: maybe. able on twitter not pleased. -- people on twitter not happy about it, not pleased. scarlet: you will be back with the decision on the jury on the boston marathon bomber. alix: the key is execution or not. scarlet: alix steel, everyone could she will be back at 3:00 p.m. let's get you top stories crossing the bloomberg terminal at this hour. we begin in israel, where benjamin netanyahu is got his fourth term as prime minister. he has not named a foreign minister could he is holding out the post in an effort to get another party to join his coalition. last night he survived a confidence vote in parliament by a two-vote margin.
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now to processing good the field is set for the preakness stakes in baltimore and american phar is a 4-5 favorite. crownses won the triple 1978. chili's is revamping the look of its dishes to make them look better on social media. diner -- that is because of diners who like to take pictures of food and share them on twitter or facebook. we want to go back to the preakness. as we mentioned, america's best hope for a triple crown winner takes the track tomorrow. american pharoah has been described as a freak of a horse. the self described horsemen joins me with more. are you going to go to baltimore? david: i will not. i will certainly be wagering on the race. scarlet: your wager is on? tvid: it is going to go on
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and say "i like a favorite" but i really do like the favorite. he is a standout horse and hopefully he shows it tomorrow. what you did at the last race, the kentucky derby, was to look at how may times -- it is not a metric everyone pays attention to. comes not something that up a lot but this year as we watch the races several times, it was clear that the jockey really was very aggressive in using the web, realogy -- in using the whip, really to a fault. you have got to put the whip away and be confident as a rider. it has caused a lot of buzz in the last couple weeks. i don't know if i want to call it animal cruelty per se, but you will not the american pharoah be whipped 32 times tomorrow. scarlet: but the jockey fell to the need to do it last time. he will not be reluctant to pull
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it out again. david: he will not. as someone who was watched tens of thousands of races in my life, probably too many, a good writer really doesn't need the whip get both hands on the reins and drive the horse to the wire. in that case the jockey was clearly nervous and out of ideas and kept flailing away. i would be shocked -- even if the horses in a tough fight, you would not see hit 32 times. i will let you know on monday. scarlet: the last triple crown was back in 1978 could what has been the biggest change in the was racing industry that may be preventing the next triple crown winner? david: a bunch of trance but the biggest is one you are seeing here this weekend. back when secretariat was winning the triple crown, all the horses that ran in the derby would proceed to run on in the
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belmont. nowadays, what a lot of people have been doing his say all right to my rate in the derby, did ok, got beat. of thehold my horse out preakness, seed the preakness to the kentucky derby winner, and when at belmont and have a fresh and rested horse and attack there. you have seen a time and time and time again that be fresh and rested horse at the belmont defeats the derby winner. that is a big change. when the secretariat was running in the belmont for the triple crown, he was facing the same tired horses. the order of california chrome after he was defeated went on the state -- went on this and big rant of how unfair it was, that it was cheating to withhold horses from the preakness. scarlet: but there are no rules against that. david: no, it is perfectly fine. but it is true, the modern thoroughbred is not quite as durable and sturdy -- scarlet: what is that?
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david: interbreeding. there is so much at session with the breeding for speed could you have lost some of the durability -- scarlet: it is a trade-off. david: pictures years ago used to pitch every day. you see the same thing with the horses. iny are pampered and babied ways they were decades ago. scarlet: what is the distinction for the jockey between preparing for the derby and preakness? espinosa'slook at case, he was the rider of american pharoah. everyone wants to keep him p inned. in the derby he had options. he now has to get his horse running out of the gate and spread the field out and figure out where the ghost from there. if the whole thing gets bunched
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up, he is in trouble. scarlet: he has to watch this prodigy very closely. -- the strategy very closely. thank you very much from our horse racing expert and liberties. ballet at the american theatre is on the rise even after 75 years. we will speak to the ceo. ♪
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scarlet: again, we have breaking news. the boston marathon bomber jury has reached a decision in the penalty phase could i want to bring in our bloomberg reporter here. we already know that the jury had found him guilty. it is a question of what happens next, what will be the penalty. david: if you look at how this played out in the courtroom, you almost saw the defense team cede this to the prosecution, the fact that dzhokhar tsarnaev did a responsibility for the bombings. this is deliberating on
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wednesday. has been deliberating for more than a day and what we have heard in boston, have averted at 3:00 -- we have averted at 3:00 and the court is set to reconvene then. scarlet: the decision is treat life-and-death, prison. in check to make a case for white tsarnaev should be given life in prison rather than the death penalty. you have a continuation of the emotional testimony from the victims families, those who were injured and killed in the boston marathon bombing. when you saw from the defense side is a number of people saying that which it happen is that dzhokhar tsarnaev should spend the rest of his life in prison in florence colorado, the maximum security prison, where
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he would be in solitary confinement for the rest of his life. known foren prejean, the book and the meat that was based on her life, did testify on behalf of the defense for the penalty phase could the jury did hear from a lot of people and we will see what i had to say in a few minutes. scarlet: 3:00 p.m. is the time that the court is returning -- re-adjourning to give the decision. between life in prison .ersus the death penalty dzhokhar tsarnaev faces a possible death penalty in the boston marathon bombing. we will have much more coverage on this as the bloomberg markets day continues.
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mark this is the bloomberg "market day."
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lyft gets a funding boost with help from carl icahn. why he is betting on the start up instead of our tribal uber. record labels are not happy with free music services. why a company thinks it might have the solution. good afternoon. i'm scarlet fu here with alix steel. x: stock split much flat on the day. still at a record high for the s&p. lumpy data,really consumer sentiment falling, then not doing anything for stocks. we are seeing utilities and energy do really well today.


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