or why not? >> mostly just regretting that i was not in strava. there are some remarkable companies out there that have really exploded and done fantastically well. as a category, we are actively adjusted in and companies have done a true rocket liftoff in terms of growth. that comes as a huge surprise to people. these fitness-focused companies not only have initial interest but long-standing support. strava will see millions of new segments on a daily basis. this is where you can keep track of what your friends are doing and compete on who is the fastest running up the street which sounds trite, but people become him swords into these social athletic things embedded into technology now. it is an interesting category. you said this earlier, strava will be one of the first apps showing up on the new watch.

cory: i have a sad story that i went out this morning and i forgot my jawbone. i left it on the charger. is there something going on makes the fitness technology more attractive than it would have been 10 years ago? or is it merely about technological advancement? paul: it has completely changed the canadian terms of the active community. i know i'm not the only one who denies the landing. i can discover nothing only one who likes to run at -- up and down a hill at my house. you discover these de facto communities and immerse yourself in it. technology enabled it but when it's creating it, you have the fitness community is that you

never knew existed before. that is what these devices are doing, exposing stuff that was always there, but you could never gain access to it. cory: a couple of headlines coming out right now. i encourage everyone to go to the website for the life -- the latest. tim cook saying the watches will send reminders. there will be a new workout at. -- app. i also wonder, will there be a focused on the mid-level priced watch? life -- >> that is what we are focusing on but all of these devices are helping us track our health. the challenge for the apple

watch is that it is more expensive than a job own or if it bit. -- job jawbone or a fit bit. other than that my thing they took out a lot of the health monitoring answers to try to maintain battery life and keep the price down. so far, not hearing a lot of unique attributes in the category. cory: i want to get to a soundbite of tim cook talking about the apple watch and reintroducing it into the world. here's what he's got to say. >> i would like to turn to the newest edition of the apple family. and of course, i'm talking about the apple watch. the apple watches the most personal device we have ever created. like the stainless steel and the

sapphire crystal, anodized aluminum and a job dropping -- jaw-dropping beautiful 18 caret gold. in addition to being a beautiful object, the apple watch is the most advanced timepiece ever created. cory: we've already heard it is often the best ever. it looks cool, i guess. one of the interesting things, i know paul, you could see that a little bit, but showing that model's outfit, or whatever she was wearing, is that personalization? i think there is interesting conflict apple is entering into right now. they are service -- sort of saying you can look special and personalize, and so can everyone. paul: this is the argument we

are having about apple's math influence -- math influence and whether you can have a widely available and luxury product at the same time. and i think you can. that is how you get away with charging $1300 for a device you can buy elsewhere for $500. i also think that one of the complaints that many people have -- going back to the fitness products again, the big triathlon device is like having a ping-pong table on your wrist. and our other products that are so thick that you could probably use the mess cupholders for coffee. this is something you could wear without embarrassing yourself or getting a caught as you walk through giant doorways or something. it's an improvement. it will at least get someone's attention. i still think the fitness aspect is the wrong focus. cory: i wonder if they even know

. you look at the digital in terms of popularity, the feisty soul a lot -- the 5c sold a lot less than the 5s the more luxury phone. can i ask you guys what to expect about the gold watch edition pricing? wait, what are we betting first? class i guess i will throw out $5,000 for the gold edition watch -- >> i guess i will draw $5,000 for the gold edition watch. cory: betting $5,000? >> no, no. the dream addition, i think the price will be 5000. >> i will have to say $5,001. i've watched the game shows. cory: in that case i'm going to go $7,500 and i'm going to guess

in the aftermarket as well. the event continues on. our sam grobart, talking about how they're using these things in fitness, monitoring and marathons. i'm noticing with the apple health app on my phone, it keeps up with other data, like my jawbone but it does kind a lousy day of it -- a lousy job of it. if it gets 10 days and this is the one i ran a 10k, is it accurate? -- and it misses the one i ran a 10k, is it accurate? paul: i'm singing about that earlier when they were talking about research products is that

you are turning this into a telemetry device and making specific claims about how you could use this as a diagnostic. the example they gave you're are talking about in the case of research parkinson's, and saying "ah" into a device. the whole notion of health-related telemetry requires a constant flow of information, because we all know that every biomarker you have goes up and down constantly, and similarly, the results you get -- you know, and active person changes day today. that is a really big issue for them. cory: indeed, it is. we are going to get just a few of the latest things when talking by the products and what it does. right now, as all pointed out there is nothing special about this watch that you cannot get other places. it is moderating -- it is monitoring your sleep, your movement.

i have been sitting in this chair for over an hour and i will go to someone else who is sitting in a chair elsewhere. matt miller is a new york and will keep watching this. we've got a wide feed of updates . we will keep following this all day. more bloomberg west later on in the day to see what we have seen. "bottom line" with matt miller starts right now. matt: from bloomberg world headquarters in new york, i matt miller in for mark crumpton. this is "bottom line," the intersection of economics and main street perspective. ♪ to our viewers here in the u.s., and those of you joining us around the world, welcome all stop we have -- welcome. we have full coverage of the stories. we look at how changes in making

roles are changing deutsche bank credit business. and apple ceo tim cook is unveiling details of the company's latest gadget, the smart watch. and the new superintendent book. let's get you to the top stories of the day. the european bond buying program, the ecb and natural -- national central bank started buying sovereign debt today under the 19 month plan. the euro area bonds extended a 14 month rally, fueled by speculation that there will be a scarcity of government bonds many of which are already showing negative yields. the ecb has injected 1.2 trillion dollars into the economy. and general motors will face aliens in a share buyback. gm will buyback $5 billion in shares. it also said it would return more money to shareholders of the cash trial continues to

grow. the cash pile continues to grow. wilson has dropped his request to become the director. and the u.s. supreme court will review florida's death penalty rules. high court agreed to hear an appeal from a man convicted of killing a coworker at a fast food restaurant. lawyers for the committee argued that -- for the defendant argued that a jury and not the judge should have decided if he was mentally disabled and therefore ineligible for the death penalty. apple ceo tim cook is speaking right now at the company event in san francisco, the big announcement we are waiting for. we been hearing a lot about the watch. brad bell joins us from the event in san francisco. we have discovered most of what the watch can do for now, at least the basics. brad: actually, tim cook is on stage now talking to developers

discussing in more detail about what the watch can do. there have not been many surprises so far. we know the watch runs siri. and we know we can send our heartbeats to each other. you can receive a phone call and talk to another watch. of course, it would be through your iphone in your back pocket and stop but we are definitely getting more news on the apple watch right now. the other news today is the redesigned macbook, 24% thinner. they also reduced the price of the apple tv from $99 to $69. and it also supports the hbo streaming service. map: none of the details about the watch yet have been surprising. i cannot imagine surprising at all. the macbook seems to have stolen the show. the thinness of the new macbook seems to be the big detail of

the entire event. radical and so far, but there is still a little bit to go. we will get price points and learn more about the apps the accessories and different straps you can buy with the three different kind of watches. the macbook looks great. it comes in gold and silver. it's got a new feedback track cap, which will allow you to use the computer in a slightly different way. today's focus is on the watch. we will see in more detail a kind of apps run on it. matt: i'm guessing they are chasing after people like cory johnson as he continues to hold the job alone up, where he -- jawbone where he continues to track his fitness. this iwatch does not seem to be waterproof, does it? brad: i do think certain additions like the sport

edition of the apple watch, will be waterproof. i think future versions of the watch will be more. another thing they announced today was a program called research kit. it allows doctors and health care providers turn the iphone into a diagnostic tool. the watch is a very personal device. ultimately, these kinds of wearable computers will be central to that goal. matt: thank you very much. when we come back, we will talk to more people about the watch throughout the day. you can get all the details on bloomberg.com. we will also take a look at the congressional budget office revision of the american action form. he's not wearing an apple watch. they with us. ♪ -- stay with us. ♪ ♪

matt: we are going to look at the congressional budget office it revised its projections upward. president of the american action form in washington, welcome back to bottom line, doug. doug: thanks, matt. matt: what do you think about this revision and the outlook from the current cbo? doug: these are revised january and the things that stay the same are basically bad news. $7 trillion in deficits over the next 10 years and that drives the debt up to $21 trillion and we see deficits rising in connection to gdp. and what is rising is things like medicare, medicaid the affordable care act, social security. nondefense discretionary

spending being held back. and interest has become such a big part of these projections that when we get to 10 years from now, $1 trillion deficit and 800 billion of it is interest on previous borrowing. matt: why is that the case now with rates about as close to zero as you can get everywhere around the world? why can't we borrow money cheaply? doug: what we make up on low price we are giving away in volume. we are borrowing far too much money. that is the real issue. matt: that is amazing with rates as low right? doug: yeah. matt: how could we borrow enough to have 80% of our annual deficit be in interest? doug: starting at a high level of debt. we are already at $14 trillion and then add another 50%. that is an enormous amount of

borrowing. it really does lead you to believe the federal government itself is the greatest risk to financial stability. it is the federal government not banks, and we need to get this picture fixed. matt: when you were running the cbo, it was still the biggest concern and it probably will be 10 years from now. health care costs what can you do about the rise? doug: the revision had a limit of good news from that point of view. the revised homeless running is down about $350 billion. $250 billion of that was the reduction in the cost of the affordable care act, largely because premiums are lower and enrollment is lower, and some saving on medicaid as well. there is some good news from the budgetary point of view. i'm not sure that the administration will be happy if to her people are covered. it is not a success from the coverage point of you, but all

that said, it is still the biggest part of the budget and growing too rapidly. getting health-care care costs under control remains the top domestic i already. matt: the obama administration is concerned with two full, covering as many people as possible, but the president also said time and again that he wants to slow the rising cost of health care. are you saying that obamacare has done that? doug: i don't think it has. we have seen a growing cost but it preceded obamacare. part of it is the recession and part of it is greater co-pays and deductibles and the employer market, shifting costs to workers. and likely the changes and health care, which is causing a slowdown. we still have to deal with fundamental problems. matt: douglas will begin --

doug, thanks. when we come back, deutsche bank is feeling the pinch. we will look at the banks adjustment pain in the world of stricter banking rules. ♪

matt: deutsche bank is i wholehearted is to stay committed to its fixed income business in a world of stricter banking rules. after raising $9 billion last year to bolster its debt business, it's credit business has actually been shrinking. lisa abramowicz is covering the story for us. you know it is doing everything he can, it's still seeing the top line get smaller and smaller. these are: some of this is intentional. -- lisa: some of this is

intentional. it needs to shrink in order to become more profitable. but how do you cut the parts that are not making money while bolstering the parts that are making money? traditionally, trading has been one of the most profitable corners of investment banking. this has been a dilemma for them. they have been cutting some, but had to recently height -- fight to hold onto one of their investment grade trading arms. matt: they have not had a great couple of years. it has been tough. is there any indication that business will turnaround? lisa: a lot of firms are betting on that, particularly smaller firms. there is a bet going on that one yields start to rise, then their business will turnaround. but that is the big question. it has been a business that has really changed especially with the increase in electronic trading stock that: lisa, thank you for that. i'm sure i will see you later

on. coming up, looking at whether greece is likely to meet its rescue commitment before it runs out of cash, which may be very soon. ♪

matt: welcome back to the second half hour of open bottom line." i'm matt miller in for mark crumpton. top stories today, first off, a check of the price of crude oil. you can see closing about $50 per barrel. a little bit of a swing there but far from the low of $20 that some of the most extreme analysts on wall street are calling for. have we put in the bottom? that will continue to be the question for crude. and families of those who were

on malaysian flight 370 held vigils and protests to mark the first anniversary of the disappearance of the plane. it disappeared on a flight from kuala lumpur to beijing. any reports of the battery on the underwater locator beacon had expired 15 months before the plane disappearance, and that probably most certainly hurt efforts to find blaming the first weeks after it went missing. in the nfl one of the highest-paid players in pro football, regardless of his nasty reputation. the detroit lions defensive tackle is about to sign with miami for 114 lean dollars with $61 guaranteed. he has a tendency to step on people. euro finance ministers say greece must pick up the pace of

bailout negotiations as it risked running out of cash very quickly. thomas miller is this former u.s. ambassador to greece, and now the president and eeo -- and ceo of a not for profit based ambassador, welcome. we are hearing reports today that only three weeks left for cash for greece. i you concerned? -- are you concerned? thomas: i've been on your program for four years with armageddon tom -- coming tomorrow. we are not talking about days or weeks or month. i think will have to find a solution that is acceptable to both sides. matt: there are reports that the greek type has floated, for example, nonprofessional tax collectors, even this morning tourist tax collectors.

are they serious about this? thomas: i think they are, matt but i don't know how serious is activity is. i saw that article in which they are actually proposing, if the article is true, that they would put wires on tourist to try to catch people in greece evading taxes. that is a little far-fetched. don't think people go to greece for tourism to help -- to help the tax authorities. matt: that is a little bit of a silly story. it is an outlier. but the last time the greek administration held a referendum, the eu totally freaked out. do you think it is possible that citrus --tsipras will do that now? thomas: i think it's possible. i saw the finance ministers

quotation on that and he said essentially, we keep our dignity or would give into greece. of course people will vote to keep their dignity. which is another way of saying no, we will not do this austerity. the last time they did this, the government in greece fell over this. but the question is, do we continue to go with the eu austerity package in return for the assistance we were getting? and the government, as i said to myself. it's very important to ask what the question is in the referendum. matt: you and i were talking about a -- a couple of people that work lawn greek debt -- that were long on greek debt and bought a very cheaply and made a lot of money. you don't and that the greek -- that greece will exit the eu, do you? thomas: they have come up to the precipice many times before and always punted and found a way to

kick it ball down the road. not to solve the problem, but greece has not exited. some people made a lot of money when they were buying $.14 on the dollar. i'm just a dumb former diplomat, so i don't give financial advice . but if i had the money i would say that reese will stay in the euro. matt: what if anything, we'll push them out? is there an outlier situation where some populist feeling could flare up or some election could be called that would push greece out of the eurozone? thomas: i think several things could happen. number one, if they went ahead and phrase the question "do we keep our dignity or not" the overwhelming majority would vote to keep their dignity which is a way for the government to support saying no to the rest of austerity.

what we have seen thus far is europeans have said you have to carry out your obligations, and that has been a pretty steady message. and the greeks keep trying to push the boundaries. i think i'll sides could -- i think both sides could mis estimate and -- matt: have they put too much pressure on this week economy? thomas: i think they put way too much pressure on the greek economy. in our own history, we needed a stimulus package to jumpstart the economy. and this has been nothing but austerity and has taken toll. there is no question in my mind that they put way too much austerity on greece. matt: a lot of people have

forecast that if greece does leave the eu, it will be horrendous for the greek economy. how do you think it would be for the rest of the eurozone? could it be a lehman brothers moment for the eurozone? could it be worse? thomas: if you had asked that question in 2012, i would tend much toward -- much more towards it being a lehman brothers moment. the eurozone has said for the past two or three years they've been preparing for the possibility of a greek exit. they believe they have put up many more firewalls that would limit the damage. we don't know because this is all psychology and politics. and the places most likely it could spread to is spain and italy, and that is then

trillions. it would really affect the ecb. matt: thomas miller, thank you for talking to us about greece. coming up, our latin america report next on "bottom line." ♪

matt: welcome back. this is "bottom line" on your tablet, your phone and at bloomberg.com. we are now on roku players. pretty much on every device you own. you think of the web on almost everything, now even your watch. it's time for today's latin america report. mexico's inflation rate dropped to its lowest rated nearly nine years. the annual inflation rate fell to 3%. the cost of fresh fruits and vegetables has also dropped.

policymakers and they cannot rule out a rise in inflation if the pace remains at current levels for a prolonged time. that is your latin america report. still ahead, more on apple's latest gadget, the watch and why ceo tim cook says it's time to buy one. it's $349 or $10,000 if you want the one that comes in a team caret gold. ♪

matt: let's get to some of today's top stories. i will kick it off with the u.s. credit reporting agency agreeing to make sweeping changes to improve the accuracy of their reports for consumers with medical debt. all three major agencies will employ trained staff to review consumer complaints about possible errors, fraud, or identity theft.

also, mcdonnell -- mcdonald's same-store sales fell 4% last month, worse than expected. global sales also came up short. that underscores the challenge facing the new ceo. he took over just over a week ago. mcdonald's said today the current performance reflects the need to evolve with today's consumers. and the largest mall owner in the u.s. wants to get even bigger. simon property has offered to buy another operator. the deal is valued at more than $22 billion. so far, that company, concentrate on the west coast has refused to negotiate. and an investigation by the cycling governing body.

a draft of report into whether the athlete himself took banned drugs in 1999. the head of the u.s. anti-doping agency promised further investigation into a sort of incidents of collusion between armstrong and governing's -- cycling governing body. because cycling is really important. that is a look at the top stories of today. and of course, the real top story of the day the apple watch. we finally have details on the wrist gadget from a but they don't seem to be different from what we were guessing to begin with. do you need one? can you get an uber with a? will you be able to check your e-mails or send your heartbeat to your partner? with me is alix steel and sam grobart. it's kind of exciting, but not as exciting i feel, as a normal apple product in production. sam: we already knew about this.

matt: i just saw that it will cost between $349 and $10,000. alix steel: i did note would be $10,000. sam: high estimate. matt: using almost 31,000 worth of gold, that is still the price. sam: because it is professional athletes. alix: and the chinese. metrolink i heard you tell -- matt: i heard you tell someone that 31 grams of gold will go -- will go into the watch. alix: no, one ounce of gold.

either way, you are looking at about 33 tons if you produce let's say, a million a month. that is not that much gold in the scheme of things. matt: $10,000, it's unlikely that someone is going to -- sam: it is a big status purchase and i think they are only exact -- expecting a few people to go after that. but the range of prices from $350 up to $10,000, i cannot think of another product that has such a wide range of msrp. matt: on drugs, maybe. alix: when i was scouring the world about whether this would move the gold market, one analyst said well, no, it won't hurt the supply and demand factor. but it is a big luxury.

you might have to replace a watch in a few years. matt: explaining it the breakdown in its graphic. alix: and china is eating up 18 caret gold items like crazy, especially among younger people. it's really whether this will appeal to them at the end of the day. sam: i watch the proceeding and i felt similarly that everything they were producing, all very expected. and all things you could probably do with your phone. nothing very watch pacific. it still were -- nothing very watch specific. it still means to be seen how this will do. : who do you think the market is? is this people who would spend more money for a better job own -- job ownawbone?

sam: i don't think apple has been the about reaching with other smart phone watches. this is much more mainstream audiences. they will see this and as far as they're concerned, this is the first smart watch that they know about. alix: what does this do to some kind of replacement cycle? we have seen people struggle because they tend to not want to upgrade their ipad. sam: no one is going to spend $350 every year or more. but there is the infrastructure with your phone and carrier that encourages you to upgrade subsidizes the cost of that. that is not happening with the watch. matt: and the beauty of the watch, it's one of the few things that you will buy and you know you will hold onto it pretty much forever. longer than a car, maybe longer than a house. ; and yet they don't come --

sam: and yet they don't come out every year with a new watch and saying this one is even that are than the previous one because now it has a flight at mechanism that nobody had. they last a long because -- presumably, there will not be a new apple watch every year or couple of years. alix: they don't want to be forced in spending multiple hundreds of dollars. sam: that is the big question. matt: talking about rollout or digital features with their -- sam: or will they move into some third-party supply arrangement? they could become apple watch ready fighters. al i will be talkingix: about this for the next two hours on street.

matt: yes, you will. we will continue to follow it here on bloomberg for you. check it out at bloomberg.com. scarlet fu is up next. ♪

matt: this is "bottom line" on bloomberg television. u.s. stock market is trying to recover as investors digested a new paradigm with higher interest rate brought on by a higher economy could be the end of the bull market. scarlet fu puts the six-year-old

bull market into perspective. scarlet: the usual suspects are central banking liquidity disruptions kospi technology growth and profit margins, even demographics. one thing they are certainly surprised by is the size and scope of this bull run. my first shot -- chart is one that has nothing to do with inflation target. it shows the current bull market, that is, the green., with historical -- the green dot with historical market. the current exceeds the average gain. that is the yellow dot right there. the current bull market, the green dot only exceeds two

other bull market when it comes to the length and size. matt: how much longer does it have to run? -- scarlet: six years running and if you look at current s&p operating margins, they are at 5.9% versus 7% in 2009. what could top that expansion? weight growth, which could finally be turning. even if we get a pullback, it may just run be a buying opportunity. michael hartnett of merrill lynch says you want to watch for signs of inflation hurting certain asset prices, like financial stocks, bonds, inflation -- and gold prices. he uses this second chart to point at how much more room there is to rally for stocks overall. this is the ratio of the s&p 500

total return, so price depreciation. when the line rises at that has since 2009, it shows that stocks are performing better relative to bonsall's of even the s&p 500 has made record high after record high in the past, -- relative to bonds. even though the s&p 500 has made record high after record high in the past year, they still have gains to make. hartnett also says to watch for a stronger dollar to drag significantly on earnings. that has not happened. matt: the dollar, goldman treasuries, in february it was risk high on -- risk-on with a rally in equities as well. what are you hearing for this month? scarlet: it pick up and wrist prices and risk-taking overall. look for volatility in emerging-market currencies.

also look for more selling of bonds. and other areas that might be right for declines are discriminate -- are discretionary funds. and he says health-care stocks may also be primed for decline so taking the money of the table there. matt: thanks so much, scarlet fu. get the latest headlines at the top of the hour on bluebird radio or streaming on -- bloomberg radio or streaming on your tablet. "street smart" is next. ♪

>> welcome to the most important hour of the session. i am alix steel, and this is street smart. stocks are rising on the back of you making the s&p more than tripling from its low six years ago. in brussels investors getting new reasons to worry about greece as european finance ministers tell athens not to waste their time. tim cook introduces apple smart watch and a new macbook. "street smart" starts right now.