>> this is bottom line, the intersection of business and economics with a main street perspective. leaders gather in normandy to mark the 70th anniversary of d-day. u.s. payrolls push pass their prerecession peak. and a look at the race for the triple crown. to our viewers in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines.

president obama had an informal meeting with part -- with vladimir putin on the sidelines of today's the day of services -- today's d-day observances in french. hollande's office says there is a possibility of cease-fire talks in ukraine. >> the question is is it possible? his answer was the ukraine central government must explain to the separatists exactly how it intends to devolve power, how it plans to give the separatists more autonomy. ukraine's central government must show it -- and show its will and wisdom.

i asked him what he is prepared to do to bring about a cease-fire and he did not answer that question nor did he say what he taught the separatists say to do -- nor did he what he thought the separatists need to do to get into more substantive peace talks. his answer point out the big problem, it is not an answer that the white house or even france will really appreciate. hoping president clinton after these discussions is prepared to use his influence on the separatists to try to get them to sit down at the table with the ukrainian government. we heard the president put all of the blame on ukraine's central government, saying they are the ones that must act. in terms of the likelihood on the back of those kind of comments that there could be substantive talks leading towards the cease-fire in ukraine, i think the likelihood of that is very slim.

>> we began by mentioning president clinton and obama had what was called an informal meeting on the sidelines of d-day observances. what can you tell us about their conversation? their entourages did absolutely everything they could to make load --t the state state to launch where president obama and president putin even julie met -- to make sure they weren't sitting next to one each of -- next to one another. apartere sitting so far with a couple of queens between them amongst many others. we saw the tension when president clinton and president obama past one another a couple of times. saw presidente obama talking to the queen of england, ignoring the russian

president. the we saw president clinton talking to the german chancellor. it was a 15 minute meeting. i think the biggest achievement that was their first face-to-face talks since the crisis began in the ukraine. it does open the door for more dialogue. >> ryan chilcote joining us live from normandy. the controversy surrounding the trade of five taliban detainees continues.namo bay many were unaware of the negotiations. life couldrgdahl's have been jeopardize hat word of that trade leak. senator feinstein in an interview with al hunt did not agree.

>> the president cannot even call you hours or days before hand. do you think that was because there was a credible threat from the taliban that they would kill him if they weren't leaked the -- if they were leaked. >> i don't think there was a credible threat but i don't know. i have no information that there was. >> for more on this conversation let's go to washington and get more from alpena chairwoman feinstein disagrees with the white house about the safety of sergeant bergdahl's life. in do youns from here expect an investigation? >> i expect most will -- expect multiple investigations. chairman feinstein is very upset. she has been deeply involved in a lot of these issues. she is supportive of the demonstration in general on surveillance matters. the fact she wasn't notified ahead of time, the counterpart in the house mike rogers wasn't notified, this continues to burn -- to burn up

there. we have another clip from senator feinstein about sergeant bergdahl and what is next. let's take a listen. >> he is an american soldier. was takent, he hostage. whether he walked away, a wall -- awol, the army will figure out. obsolete -- an absolute obligation. the one thing i would say is the vice chairman of the joint chiefs made very clear, crystal to have was going justice, the army would do the

appropriate investigation, and the fax -- the facts would come out. >> did that play a role in the negotiations? >> i think it may well have with the white house. the american involvement is and by 2016. what do you do with these guys? ring them back here and try them, they agree with that. there's tremendous political pressure not put them anywhere in this country. you don't want to send them back to afghanistan. difficult question. from the administration's point of view, they got something and they gave up something conditionally. >> al hunt joining us from washington. you can check his full interview with dianne feinstein tonight at 9 p.m. washington time right here on bloomberg. and tonight on charlie rose, jay carney for the hour. a week ago president obama

accepted carney's resignation. tonighterview is 8 p.m. . coming up, the employment report from may. we will break down the numbers and find out why there is little indication we would see a sharp rise in hiring this year.

>> u.s. payrolls were pushed past their prerecession peak. the economy gains traction. let's bring in michelle girard, the chief u.s. economist at rbs securities could she joins us from stamford connecticut. welcome back to bottom line. note today.a it said the trend in hiring is slightly better than the effort increases that were reported in 2013 and 2012.

you did caution there is little indication of a sharp acceleration in hiring this year. are the fundamentals telling you? >> we came into the year. many people came in with high hopes for 2014. this will be the year we gain traction. capital spending. they are all going to accelerate. we thought we have seen improvement but just gradual. there is an improvement versus the trends the past couple of years. growing 213,000 per month, which is the year to date trend, it falls short of where we need to be to see the economy step up from the pace it has been growing. really i think this sets the stage for an upward trajectory.

employment is beyond its peak of 138 points. that was reached in january 2008. why has it taken so long to get these jobs back? >> because the economy has really recovered so gradually from a very deep and -- very deep downturn. sharp recessions it has been followed by quick uptake's and recoveries. this was very different. we had a very deep downturn. of that is why we are talking about broader economy or jobs. recovery hasr the been gradual. it has taken four years to get back the jobs that were lost in the downturn. >> where are the jobs seem the most strength and where -- and which sectors are continuing to lag? >> we have seen more strength on

the service side and in recent months construction and manufacturing, those cyclical areas that we tend to put a lot of focus on, actually had been improving. i would say in general we are seeing job gains could much across the board. we are firing on all cylinders. the job gains continue to be relatively modest. speaking with chief u.s. economist at rbs securities. if the economy is creating more jobs, why does wage growth continue to lag? >> that is a big question and that goes back to how much slack is in the economy. we are creating 215,000 jobs per month on average. there are obviously not as many people who are entering the workforce to look for work. that is why even with a very modest job growth we are seeing the unemployment rate moved down. the question is how much slack is out there.

in her defense you heard the chairwoman tell everyone there is considerable slack. she thinks we are not getting the wage growth that we ultimately need to see to get inflation back towards the fed's target. that is the real question. i don't think there is as much slack as the fed chairman but it does speak to the fact that we are getting more wage growth. slack in thel economy. >> what can janet yellen and her colleagues do to get this jobs picture to and escape philosophy? i have to tell you, i don't think it is a monetary problem. i don't think there is a whole lot the fed can to. -- if it is afor political problem than we all are in trouble. >> exactly. you have the fed trying to compensate. the fed is really being forced

to try to do what they can to get things speeded up but i think it is the wrong medicine. of that ultimately worries me down the road. -- ave policies >> coming times did ben bernanke said he needed a dance partner? what do the may employment numbers mean for growth in this quarter? >> there has been a real jet that's real disconnect between gdp and payroll. i have to say, i am looking for three percent gdp growth, a rebound in the second quarter. it is weaker than it should be. overall i think the underlying -- the underlying trend is 2.5%. i think that is consistent with the numbers we have seen today. joining us from stamford connecticut, it is great to see you. have a great weekend. coming up, schools are done.

now it is time to look for a job. we will look for job prospects at this year's graduates.

>> bloomberg news higher education reporter has been tracking the trends. i almost felt like saying, thank you very much, let's go to something else because that is what their job prospects are. >> you are looking around and you would be very lucky to get a job that is in your field. and that is a paid job. --e students and reached and and recent graduates are looking

for jobs. it may last 10 or 12 weeks. itif they are getting a job may not be exactly what they are wanting to do and hoping that work experience will lead them to the next job. 22-year-old with college degrees were underemployed. they were taking jobs where they did not need that college degree. talked about the u.s. unemployment rate, the numbers for may. what do the employment numbers look like for college grads? >> they are doing better than their peers did a few years ago. they are not the type of jobs they're looking for. there are lots of signs of underemployment. >> what type of jobs are they getting? job doing what a hopinge looking for, but

it will be consulting, , maybetrative assistant that yogurt shop you worked at in college. graduatesw that many are traveling nontraditional paths to get there field. about a four-year secondary education and then you are saddled with debt that you cannot pay back on time because your income does not match your degree. >> they are taking whatever job they can take. if you have a federal loan you can sign up for one of the payment programs where they will work with you to figure out what your loan payment could be based on your discretionary income and it may be very low given you have to keep in mind that will extend the life of the loan so you're paying more in interest over time. of >> for those that graduated during the worst part of the

recession, how are they faring? >> we had in our story a young woman who graduated from davidson, a great liberal arts, which in north carolina -- liberal arts college in north carolina. eventually she found a position. it wasn't exactly what she wanted but it was a job that lasted for some time. jobs overseries of the years that did not take her where she wanted to be. five years later she could -- five years later she finished a master's degree and she is close to where she wants to be. hopefully they are on the path to where they want to be but it is difficult. >> speaking of that path you know from the store that young people are getting awfully to a slower start. they are delaying homeownership, delaying getting big ticket items because they basically cannot afford it. >> especially if you have student debt.

there is a growing economic convergence between those who are making a couple hundred dollar loan payments every month and those that don't have to. >> let's take a look at the full-screen. that tells a story. 65,000, 700, household be. only 8700 dollars. >> it make sense if you're putting $800 or however much per month toward the student loan payment. that is discretionary income you could be putting somewhere else. >> the student loan debt is getting a lot of attention in washington. we expect to hear? >> next week you will hear student loan debt at least twice. chatdent obama is having a on tumblr about student loan debt on tuesday. we will hear more about senator elizabeth warren's buildup will allow refinancing for student loan debt.

it is getting a lot of discussion in washington. >> before i let you go, we should mention some kids are getting jobs in their field. what your major is, what you are pursuing. chances are you are going to have a better time finding a job in what your field is. >> she has been tracking the trends on the story, good to talk to you. we are coming up on 26 minutes past the hour. bloomberg television is on the market. jonathan ferro is here with the details. >> good afternoon. is called divergent central-bank policy. it is about the fed versus ecb and about perception versus reality. this is the federal reserve's spanish sheet. you see it climbing to $4 trillion. there are adding to assets every single month. compare this to the ecb.

see that compare and contrast right there? they borrowed one trillion euros fourth of loans from the ecb. they started giving them back to the ecb. we have a whole set of message -- set of measures. pretty much everything is in sync. one was another round of cheap money with conditions. the second was a plan for asset person does -- asset purchases. the bank will borrow that money and will the plan remain just a plan and will this balance sheet continue to contract? being told about divergent balance sheet and divergent central-bank policy, that may not be as emphatic as you may think. a quick look at stocks because we have a busy week and busy day, record high on the s&p 500. record high on the dow jones as well. their work.done

the jobs is a sweet spot. back to you.

>> welcome back to the second half-hour of bottom line on bloomberg television. thank you for staying with us. -- the check the stop top stories. the suspect charged with killing three wild mountie canadian police was arrested unarmed. he had been armed with high-powered long firearms and had been spotted three times on thursday, we -- eluding the theunt that shut down

tranquil city of 16,000 people. benjamin lost key wants head -- once heads to roll. toinsider says he is pushing have the bank's cdo and 13 others dismissed. federal authorities are said to be looking for a $10 billion fine for the alleged violations. defeatedntonio spurs the miami heat 110 to 95 in the open of the nba finals last night. a broken air conditioning system sent core temperatures soaring into the 80's. the conditions took lebron james out of the game. he suffered leg cramps and sat on the bench wrapped in ice towels. that is a look at the top stories this hour. a day after mary jo white took equityo beef up the u.s.

markets the commission announced enforcement actions against one of the biggest independent dark pool traders and another against one of the largest trading firms. peter cook has the details. was the timing related here? the sec insists the timing was coincidence will but it does touch upon the market structure issues that were identified thursday in her speech. the first involves liquid net theh provides services to institutional investors. they have agreed to pay a $200 million fine for failing to keep the dark pool dark enough. 2011 it wouldate allow employees outside of its alternative trading system to access some of the confidential trading information on the system, which it then used in marketing to other potential customers. the firm did not admit or deny wrongdoing.

the problem was a lack of oversight and tremendous measures are in place to prevent a recurrence. no clients were harmed in the sec does not disputed. toy jo white is proposing shine even more light on these dark pool operations and forced him to be more transparent going forward. this is an issue we are not going to hear an end of. involvesther case that securities, what can you tell us? >> the los angeles based brokerage is accused of violating market access rules. the firm is one of the biggest in terms of nasdaq trading volume speed from july 2011 until last year, they commissions and fees by failing to adequately police thousands of trade and a system even after red flags were raised. -- it allowed traders

tracked access to the u.s. market without pre-approving them and without having control of their risk settings, creating a situation where these traders could engage in illegal trading strategies is part of manipulation and other schemes. >> among those accessing the , a latvian trader previously charged by the sec. the commission is going further than charging wedbush. -- they will determine if the firm will flee violated the law. >> peter cook, thank you. walmart's annual shareholder meetings is in full swing. join us fromill fayetteville arkansas to find out if god look the lynn -- if doug macmillan 10 -- ♪

>> it is time for today's latin american report at the start of the world cup is just a week away. in most countries around the world the cup is a highly anticipated and religiously followed event. bloomberg businessweek has a look at the world cut -- world cup by the numbers. >> it is the most viewed sporting event in the world. 2010 world cup in south africa was shown in every territory on earth. 3.2 billion people watched. that is 46 .4% of the world's population. more than 30 more million fans have attended world cup matches -- 34 million fans have attended world cup matches. the salida 20th world cup held in 20 stadiums across brazil created 32 teams will compete in 64 matches.

the winning team will take on $35 million. germany has promised all players a 400-7000 dollar bonus for capturing the title. -- 400-7000 dollar bonus for capturing the title. $470,000 bonus for capturing the title. the host country has a good chance to win the cup and it wouldn't be the first time. brazil has made more appearances at the world cup than any other team. result has taken home the trophy -- brazil has taken home the trophy five times. >> stay with bloomberg all next week. we will have full coverage of the world cup and show you how global business uses the stock pitch.ses a soccer

erik schatzker will bring us reports throughout the week as the world makes its way down the road to real. that is your latin american report for this friday. walmart is holding its annual meeting in arkansas and the world's biggest retailer is struggling. there are questions over corporate governance. outside at the university of arkansas. walk us through what you witnessed so far today. forhe annual meeting shareholders and employees happened today in fayetteville at the university of arkansas. that has now died down. shareholderlso some proposals that did not end up going through, including appointing an independent chairman. he is of course a member of the walton family. owners. long-time

that is what we witnessed this morning. from a very interesting westion and answer session also heard from doug macmillan. he spoke to the media briefly. of what he really has been painting it is a picture of a transformed walmart. retail has gone from being a -- to more of where customers are being treated in a more personal way. they are telling us what they want and we have to react in our system to be able to provide that. what that means in practice is you are not going to see as many walmart super centers. you are going to see smaller format stores that speaks to what walmart seizes as the changing need of the customer. open manyy plans to

of the neighborhood markets this year. about 300 stores this year, about -- if you express stores. they see a pathway to at least 2000 of those neighborhood markets, making those comments in that meeting. walmart has really been emphasizing it in recent years. that is what they hope will push the sales back up again. >> what about the extravaganza of a performers being brought in? >> harry connick jr. was the mc of the event. we saw for realm, we saw sarah mclachlan. a lot of that has to do with employee morale. we also saw florida georgia line, a popular country act performing.

folks that to get these excited to ideally take that excitement back to their stores, not just around their country but around the world. you do have a bit of that disconnect between all of the festivities going on. and then some of the underlying struggles that the company is facing. between the executives trying to offer this pep rally atmosphere and then those various musical acts, it was a good show. >> julie hyman joining us live from fayetteville. horse racing's highest achievement. we will bring you the triple crown. ♪

>> the 140 sixth running of the belmont stakes takes place on saturday. california chrome will attempt to become the first triple crown

winner since 1978. president and ceo of the national thoroughbred racing joins us on bottom line. horseracing's greatest event but belmont is probably the sports's greatest challenge. aside from a longer distance than what we have in the derby, what makes the belmont so tough for triple crown hopefuls? they can taste history. but they always seem to get their heart crushed. it is the third race these horses have run in five weeks. that is a frequency you don't often see. especially in this case, california chrome will be running back for the third time in five weeks. that is a challenge in and of itself. turns,lso wider sometimes the track can get deep. of there are some challenges

negotiating a bigger venue and for the jockeys. making history, what does it mean for california breeding?terms of >> you can ask five different people and get five different answers. of i think we are looking at a horse that is being valued him -- being valued in the $2500 range. it remains be seen how well he wins, how he does after the race. his value continues to grow, especially if it goes on and wins a couple of more races. >> to a lot of triple crown winners, have they done that in the past? >> i think you have to prove in the case of california chrome that he has the ability.

he doesn't have the breeding that you normally see. slapdon't know if it is a for the horse or not but they say he does not have the royal bloodline or royal genes. >> it is deep in his pedigree. he needs to prove it on the track. some are quibbling with his confirmation. his legs, how they work, how they move. a is a trouble? some see not the smoothest in him but he is very efficient. sometimes it doesn't matter how you look. saying theysome are are going to keep running him. >> that is the way. just win. the me about this chase for triple crown, what does it mean for your industry in terms of promotions?

probably double or triple the attendance. as many as 120,000 people. i know there is some's -- some concern about that many people. they showed up with a lot of enthusiasm. you're going to see 120 5 million to $150 million bets on the day. attendanceng to see in the 120 range. you're probably going to see it doubling or tripling of the television ratings. 4.5.r was a maybe this year gets us up to 13. lots of people tuning in. >> it has become an entertainment event as well as a horseracing event. you're not just talking about the track.

or eightbully seven dollars for every double the bet on track. >> how much does belmont get? >> that is a good question. the more money that is wagered on tracks the bigger the revenue stream. of they get fewer dollars from these remote wagers but there are many many more rate -- many many more wagers out there. >> you mentioned about the triple crown and snow winner since 78. jimmy carter was president for last time a horse won the triple crown. can california do this? >> no question. it all depends on what kind of race he brings to the table tomorrow. race. to run his best some say it is his to lose. i never would say that because horses develop at different rates.

you just have to run the race and see how it works. >> i guess a lot of people are going to be rooting for this horse. your life.en >> i have been in it for 20 years. it,alk about the buildup to especially when you are getting new people in who haven't been exposed to it before. that isf the things difficult about horseracing is understanding the point of it. a tripletalk about crown winner, now people understand this is a big deal. this is a horse that has accomplished amazing things. it makes it more accessible to the average sports fan. that is why it is so big. talking about a blue-collar story. alex waller -- alex walter. it has been a pleasure. have a good time at the race tomorrow.

stay with us, in other check on the market on the other side of the break.

>> get the latest headlines at the top of the hour on bloomberg radio, streaming on your tablet and bloomberg.com. that doesn't for this edition of bottom line on bloomberg television. if i am mark crumpton reporting from new york. thank you for joining us. on the markets is next.

flex 56 minutes past the hour, which means bloomberg television is on the markets. let's get you caught up with where stocks are trading right now. we are up across the board. nasdaq, record highs atutiful jobs comes in 217,000 woman north of 200,000 for fourth straight month. but move it to the european equity markets -- let's move it to the european equity markets. that would be a record high opinion of that is europe's equity benchmark and a six-year high. clearly aimed at the ecb, giving these equity markets a bit of a list. etf's popped on yesterday. historic rates. investors have been ahead of the curve. and $10 billion in new cash this year, which is 20% of all etf inflows.

our etf guru joins us with what has seen the most action. where is the money going? kluck's the big daddy -- >> the it has taken in $8 billion in the past 12 months. it makes the most influential of any etf across the board. to get going non-eurozone countries here. this one also has the u.k., sweden, switzerland. been the im etf has you etf, which only tracks eurozone countries which uses the euro. if you're looking for a more targeted play, this one has attracted a lot of investors. this is number two in terms of influence. number one and number two are european etf's. >> if i am worried about the euro getting whacked, i don't

want to get hurt on the effects side of things. can i get hedge? >> wisdom tree love that question. the european hedge etf, this one and then goes along shorts the currency out. by looking at companies that get 50% of the revenue from outside of the eurozone. and then it gives it a little bit of extra safety. it is a well-designed etf. if you look at what happened last year, that went through the roof. it was the number one getter in .13. it crushed the one that had the currency impact inside of it. it has been a huge thing in the etf space right now. >> one question doing into the eurozone. yesterdayes announced that it does not just excess just exacerbate

the flow. >> when we talk about the money going in, as somebody who watches this stuff all the time, it does seem like it could be late in the party. we are talking tens of billions of dollars. the amount of money has been doubling in the past year. the ratios some of and fundamentals, they are inching up towards 20. you are looking at returns of 60%. to fight a central bank? >> we believe that there. thank you very much. the big one is to go in hedged. street smart is up next.

>> docs on the rise. rise.cks on the "street smart" starts right now. welcome to the most important hour of the session. 60 minutes left until the closing bell. allegations of sanction violations on top of a record $10 billion, and a penalty.