deal valued at 4.4 billion. this could help them make more money from multiple video. mark: myron weiner looks into his crystal ball and tells us about 10 things to watch in 2016. gross is given about $700 million so far. we will hear more about his philanthropic efforts and his definition of success. good afternoon, i am betty liu, here with mark crumpton. welcome to the bloomberg market day. let's start with a look at what is moving the markets up on this tuesday. at thetart with a look

markets equities. we had that global slide in bond prices. that is having an effect that is causing some volatility. you can see red across the board. the dow jones industrial average is down about 28 points. the dow had been down as much as 180.4. the s&p and the nasdaq are also lower. nymex crude, it is up about two and a half percent, trading at 60-75. gold futures are up as well. gold trading at $1993 and $.50 in tryouts for top betty: must take a look at how treasuries are trading. you can see that they are stabilizing. to year yield is unchanged. the tenure at two and a quarter. you are seeing the dollar weaker

with the bond selloff. also with equities falling. the euro trading a little bit $1.12.r here at let's look at the top stories. the death toll is 41 from second second eric -- earthquake in more than two weeks. the quake registered as a magnitude of 7.3. tremors were felt 500 miles away in india. quake toppled already damaged buildings, rescue helicopters are on the way to the hardest hit areas. willing -- ree from the quake. ling john kerry is in russia meeting with vladimir cutin. relation ease family -- he's at least strained relations between the two.

it was his first tip to russia since the beginning of the crisis in ukraine. the secretary of state was expected to push russia to have pro-russian separatists in ukraine cease-fire. theerday, russia accused obama administration of trying to isolate russia. mark: waters in the pacific are in the early stages of forming pattern that will change global weather patterns temporarily. this happened happened since 2010. forecasters say that this crimps olympic hurricane activity, southernre rain to the u.s. and warms northern states. it has a strictly brought drought to parts of asia and rains to south america. betty: the tornado that struck a small texas town destroyed 120 homes.

in arkansas, a couple of died inside of their mobile home after a tornado tore through the area. their tall there survived. texas authorities are trying to keep secret the supplier of their lethal injection drug supplier. the bill is a setback for group seeking disclosure about who provides execution drugs in the nation's busiest death chamber. texas has executed six convicted killers. that: no injuries after this bus exploded. you can see on the massachusetts turnpike. it was in route to boston from new york. the driver noticed smoke, pulled over. all 47 passengers were able to retrieve their belongings and were put on another base. mark: warplanes bomb targets ahead of the cease-fire. the jets are from the coalition led by saudi arabia for a u.s.

diplomat is now in yemen's capital. he plans to meet with the shiite rebels and make sure that the truce holds. betty: greece might have dodged a bullet. weeks, the country is trying to strike a bargain. the government says that they will pay the imf $840 million it owes but pretty soon the country will feel the cash crunch. >> the liquidity issue is incredibly urgent issue. this is common knowledge, let's not be divided. it seems to me that from the perspective of a timeframe we are facing, we are talking about the next couple of weeks. mark: senator richard shelby bank reform act a work in progress. the chairman may unveil his bill

today. it would remove some of the tougher restrictions from small and medium-sized banks. it would also revise congressional scrutiny of the federal reserve. betty: there is a shortage of barrels that are used to age the booze. they're all makers cannot find enough oak. the industry has not recovered cash.he bourbon sales are up 35%. hoardingu have people bourbon in their basement. mark: the golden state warriors rebound. they tied their western conference semi finals 2-2. game five is wednesday and golden state. those are some of the top stories we are following on this tuesday.

betty: coming up in the next half hour, what do investors need to look out for in 2016? advice from the blackstone group? mark: what does the largest u.s. carrier hope to get out of the deal? etty: finn janice capital. why he didn't retire, go way to the beach. you will have a preview of an exclusive interview. government bonds sold off continuing this decline. many investors are wondering, purchasing a tantrum beginning of a bear market in bonds. thet down with vice-chairman of blackstone group night asked in that question. byron: i think it is going up, i saw that for long time. there is a lot of liquidity out there, looking for a safe place

to park. i think that is why you see yields in europe lower thin yields here. that is incredible to me. there isn't a european balance sheet except in germany that is at all like ours. they are really expensive. interest rate are negative. , higher yields. betty: the fact that we are seeing this selloff, does this competition the situation for central banks? harder for the fed to raise interest rates, for the ecb to exit qe? byron: what makes it hard for the federal reserve is the economy is doing better. then, it is easy. right now, you're wondering

whether it will be september, december, because they're worried the economy will not be able to be strong enough to sustain it. betty: when do you think that the fed will raise rates? byron: september. think they are justified to do that? byron: it is not september yet. i think second curve in the third and fourth quarters. the illiquidity, we have heard lots of bond traders complain. if say some of it has to do with regulation. the dodd-frank rules that have made banks hold onto their cash positions even more and that is creating this huge dislocation, they say, that is a coming crisis. do you share that view? byron: i hear it myself. they say it is very illiquid. hear it mostly in the high-yield segment. you can trade all of the treasuries you want.

betty: is there a coming crisis there? byron: i don't look at is a crisis, but it is a difficult situation. eddie: where should treasury yields be? byron: only run 3%. long-term, the long-term treasury yield at six, i think it can go back to 3% with the present level of liquidity. betty: do you think we can get back to a 6% yield? byron: not anytime soon. betty: has oil stabilize? come back.ink it has if we do a deal with iran and the sanctions are lifted and they can sell a million barrels a day more than they are selling now, that could drive the price back down. otherwise, if there's no deal iran, theun -- with

stabilize. good oil continue lower? byron: a lot of things are in place for oil to go lower. the inventory is high, speculation is high. the developing world is consuming more oil every year. my view is that the price of oil is headed somewhat higher. i don't think it is going back to 100, but you could see it in the 70's. betty: some are warning it could be coming from china, at tech bubble burst in, that we could see another 08 happen here in this country. byron: no, you need something to really destabilize economy. i don't see anything out there that magnitude. betty: not china? byron: no, china has total control over its economy. and can pull at fiscal

monetary stocks. betty: where is the mist of buying opportunity right now? where's the big idea people are missing? byron: innovation is a big idea. they are still serving more exciting products and technology, particularly in biotechnology. over the next five years, we variable improvements in disease control. betty: what keeps you up at night? byron: that investors are too complacent. they don't expect anything, so they are vulnerable. night iskeeps me up at the fact that it is hard to get anything done in congress. so, the dysfunctionality of our government is a problem. betty: that was byron wien.

if you missed anything, you can catch the entire interview on bloomberg.com. but: you mentioned china, was he saying that regardless of what goes on over there that there will not be any ripple effect over here? betty: basically. he was saying that china was slowing down. yes, there are troubles, but the government has a grip on the economy. they will not let it get out of hand. there will not be a ripple effect here. ahead, why does verizon want to buy aol? mark: cory johnson is looking into what is driving the steel, he will give us his thoughts next.

♪

welcome back to the bloomberg market day. betty: let's get straight to julie hyman with a quick look at how the markets are right now. it is been a bit of selling going on. julie: one of the things that has been limiting declines has been oil and energy stocks. i want to focus in on oil. wti touches the highest level of 2015. opec has boosted its global oil demand outlook. that helped matters. saudi arabia came out and talked sayingts production, that its production is a three-year hide but is not using it much further. help matters as well. the s&p 500 energy group is the best-performing sector in today's session of the result of the increased pressure we have

seen. that is limiting the decline. among the top performers, we have transocean as well as noble. transocean trading at a three month high. mark: julie, thank you. betty: the u.s. equity market might be down overall but shares of one company are soaring. mark: aol stock jumped after verizon agreed to buy the company for $50 a share. that is a 17% premium over yesterday's closing price. joining us with insight, cory johnson. why? why do they want this? cory: why not. it'll add to verizon paulson earnings. this recognizes a very interesting direction for verizon. verizon is acquiring two different types of businesses. the pilot businesses closest. this is still a big part of aol.

2 million people still receiving their internet connections through the courtesy of aol. what is interesting is the push into the advertising world and having a full advertising business. also, the content world where they will own some important of the that the provider connection to the internet come it doesn't make perfect sense, that they have to be the content provider as well. imagine if every highway had to own every restaurant off the highway. then they would have to pick what kind of russia to be successful. this is a choice that verizon is making. betty: tim armstrong has been gathering and creating original content, and of course he bought the huntington post too much hoopla, what kind of content is going to be that attractive to verizon? post bought the huffington

too much hoopla, what kind of content is going to be attractive to verizon? cory: when you compare it to yahoo!, google, to the biggest sites on the internet. users ofof the most internet sites, they are right there in the top four. mark: are they still relevant? cory: the numbers don't lie. betty: they have techcrunch. huffington post. aol.com is where a lot of people begin their day. betty: a lot of people start their searching on aol.com? cory: that is what happens. what is suggesting here is the advertising business. theirade some of platform. a lot are scratching their heads, that they had a video platform and that it was so

young and that they would sell it for so much money. what sense to that make. same, start to see a well the program out of business. makes an ading that pop-up on your phone, on your tablet, or on your web browser. it brings it all the way from the maker of the ad to you, the user. betty: i guess that drink between marissa mayer and tim armstrong met nothing. cory: i'm sure they had a good time. mark: another deadline for greece.

betty:betty: greece faces a long

list of deadlines. they owed the imf worth -- roughly $888 million. the finance minister has said that greases liquidity situation is getting increasingly complicated. eece's liquidity situation is getting increasingly worse. seems to be ine worse shape than many economists thought, dealing with slower growth and a debt to gdp ratio of 180%. 880 million dollars is a lot of money but it is a small fraction of their total debt which is much bigger, $368 billion. to take the combined fortunes of the three richest men in the world, you would billion to get grease out of the red. the thing is, as soon as grease makes a payment, there are more deadlines around the corner. look at june.

1, 2, 3, 4 deadlines. at the end of july, there is a $4ger payment, almost billion they have to make to the european government. greece has been begging european finance ministers for more money to pay their bills and what they've been saying is that, greece, you will not get any more money without meeting some conditions. maybe pension reform, the way you pay government workers. if greece does get more money, that will buy the company more time and that would get them through the end of the year. that begs the question what happens next. we had two big bailouts and it is likely they would need a third bailout. in order for that money to be there, negotiations would have to start right away. betty: now, we know. latest on the negotiations with european finance ministers? david: there was concern that they would tighten restrictions.

there is a sense that the tenor of these negotiations is changing. mark: any movement on the concessions? david: we heard from negotiators, they seem to be chastened a little bit here. the deadline is approaching, there is a sense that maybe now they will have to do more. minister hasime said is that they are beginning to work on this. they will have to bargain make some concessions. betty: it is so tightly wound s tri it feels liken it any momentg it will break. david: what happened is that they were able to move some cash around to make today's payment. when you hear that and you look like any one of these, it could

be something. david: international investors don't seem convinced. even if things turn out, if there's a deal, that greece can't get their fiscal house in order. david: there are still some optimism out there is that greece will be able to come through this and stay in the union. note, we that happy will say goodbye to you, mark. mark: thank you so much. we will show you a different side of the bond king. how bill gross is trying to change the world through philanthropy. we will be right back. ♪

♪ the: welcome back to bloomberg market day. let's get you straight to the top headlines.

the largest u.s. wireless carrier is buying an internet pioneer. verizon will pay $4.4 billion for aol. share, a 17%$50 a premium to aol's closing price yesterday. aol became famous for its dial-up service and its you got me on that vacation. they are developing. selling ads online and delivering high-quality video. coming up later today, we will talk to tim armstrong at 4 p.m. the u.s. senate is preparing for a test vote on an asian trade legislation would give president obama fast track authority to negotiate a deal. the president has aligned with the public is on the issue. many democrats say this would hurt u.s. jobs and wages. sir richard branson's virgin group is getting into a new game. they say the new enterprise is going to take a run at what it calls but is of a tory fitness

offense like running and cycling. hired mary -- the firm will be headquartered in new york city. sequel opens" today in china. lton" is dominating the box office, it has taken $310 million so far. raked in moreovie than $1.5 billion but analysts say the sequel continues to fall behind the original. soaring to greater heights in dubai, a stuntman and his protege took to the skies in jet powered wings. moving through the air at 125 miles an hour. they completed the first twin

human for nation flight in aviation history. those are your top stories we are following at this hour. hour, up in the next half bill gross is sharing his riches, giving away hundreds of millions of dollars. we will hear why he is sharing his fortune and how he defies success. progress inporting its discussions with finance ministers. they have agreed to maintain life support for the financial system for now. we will see how the financial markets reacted. john kerry held his first talks with the russian president in two years. secretary kerry met with president clinton is so cheap -- secretary kerry met with sochi.nt putin in

bill: success becomes a function of what we can do. what we can do for the rest of the world. to help others and to prove some of the price success can blend into success for the future for others. mark: despite a recent bond selloff, grosses about to prove that it is not about the size of your fund but the legacy you leave behind. lisa, good to see you. -- gross is about to prove that it is not about the size of your fund but the legacy leave behind. lisa: seeing his kids on the soccer field. honestly, the take away is that he is moving on to the next phase of his life where he is

trying to establish something that is greater than himself or his track record. and moving to something more humid. more h mark: we have seen him at pimco, thenuman. lisa: there has been a shift to unconstrained funds. as investors start to think, this 30 year bull market bond is ending. what does it mean if you cannot get solid 8% returns annually by just investing in regular bonds? of those days, for most people, they believe they are over. going forward, what does that mean? how does he establishes legacy now in this new regime? global bonds have lost $456.4 billion of value in about three weeks.

you mention that it sounds exciting, but is it? lisa: just it with that in perspective, i looked on the terminal to find out what the equivalent for the gdp would be. venezuela's economy is smaller than the market value lost. that is monumental. really being not realized. these are just yields picking up where however many basis points which is resulting in these massive losses. investors are finding it difficult to exit their positions. lisa: the markets are becoming more volatile as trading stalls. after central banks pushed investors largely into the same sudden, ifll of a there's some shift in the market. there are not a lot of people there to take the other side. what does this mean going forward.

how about those retirees, looking for some regular income. what about the big sovereign wealth funds? it is very difficult. people are using other instruments, options, interest-rate swaps. people are looking for ways to maneuver quickly and that is exacerbating some of these bigger swings that you are seeing. we are seeing markets in the u.s. bounce back. again, as quickly as they fell off, because there is more volatility. mark: the federal reserve, central bankers, what do they think? aboutthey are concerned had a exit from the unprecedented stimulus plan without causing another market seizure. what happens when they signal, yes, we are going to hike rates now or in this particular date.

how are you going to look at the fed funds futures? they are looking away from the predictions come in effect members themselves. they are saying that they will end the year lower than what the fed members themselves are predicting. in other words, there is going to be a disruption if the fed comes out and says we are going to hike this year. mark: the hike, i guess we will have to wait until september the consensus is that it will not happen next month, in june, or in july. when the fed the size they will hike rates, how will the markets we at? >> a lot of it does depend on the economic data. they will say, there's going to be some kind of massive shift, there will be a reaction. it is not necessarily going to be what everyone wants to see. what the fed is hoping for is the economic data is solid enough and consistent enough, both in the u.s. and hikelly, that they can

rates without causing a disruption that would actually stymie growth and go against what they were trying to do. story ona's bloomberg.com. thank you so much. you can watch erik schatzker possible interview with bill gross and hear more about his life without pimco, have you define success and why he is giving away his multibillion-dollar fortune. still ahead. toshiba tanks. shares of the japanese industrial giant are under accountingid problems. that story and more when we return.

mark: welcome back to the bloomberg market day. let's get straight to a check of the markets. julie hyman is standing by. julie: we have stocks declining across the board. fairly moderate declines. two fourths of 1% down across the board. we were talking about the advances we were seen in energy prices and therefore energy stocks. of course, that is being counterbalanced. stocks why we are seen declined. materials stocks, that is a big stick liner by percentage, down about 9/10 of 1%. that is wiping out the gains and then some. let's go towards materials. disappointing earnings. fmc corporation coming out with earnings per share that missed

analyst estimate. taking 6%. international flavors are reporting earnings that beat estimates but their forecast is coming up short compared with what analysts had been anticipating. those shares down about 4%. let's check on rack space. this is a provider of cloud services. going into its earnings report, expectations were someone elevated because amazon, remember, broke out its web arvices numbers and reported 49% increase in sales. rack space, it was tough to meet at elevated level of expectation. rack space coming out with a disappointing forecast, at least disappointing to investors and traders today. that one ofhas said its clients has moved some of its business to africa, so that will cause a hit in the second quarter. julie, thank you. now, a look at today's market action, from asia and europe.

let's begin in london with jonathan ferro. jonathan: thank you. let me wrap up the trading day here in london. it has been ugly session for equities. the footsie off by 1.34%. the dax down by almost 2%. off by 1.34%. you can get doomsday scenario, it is worth considering that the stoxx 600 is still up 16% for 2015. that is a remarkable gain. the volatility, the route in the equity market, the catalyst is right here in fixed income. , italy, france, spain, germany. equities selling off, bonds is selling. the euro getting a little bit stronger.

are up another 8/10 of 1%. it has been a weaker dollar. i will bring up sterling for you. it goes higher by the expense of 1%. up a half of 1%. hi. one right here, a 2015 back to you. david: the outlook of toshiba shares, at least seven banks have stopped coverage of the stock. they're basically say that we will wait. investors really hate that raise, accounting irregularities. is abouthis understated costs across some of these other projects. themght actually see revised downward some of these previous earnings reports at some point in the future. now, to the top stories, the $3 billion legal pot business in the u.s. cannot find

a place to stash is cash. banks and credit unions were doing business with companies in the marijuana trade. it is now legal in 23 states. this more than a year after officials at the treasury department told banks they could open accounts with that fear of legal or regulatory problems. big banks say they simply will not provide services to companies that engage in activities that are illegal under federal law. more than 200 million americans live in areas where state and local laws ok the sale of pot. heardg arguments will be wednesday in the boston marathon bombing trial. the jury will begin deciding whether dzhokhar tsarnaev should be tried for life or executed. witnesses is a death penalty opponent. tsarnaev felt

sorry for his actions. mcdonald's plans to offer more items from adamma and a half to three dollars. plans to offer more items from a dollar and a half to three dollars. tom brady has been suspended over deflategate. his agent says it is ridiculous. the patriots have been fined a million dollars and will lose a couple of draft picks. an nfl report will find that brady was generally aware that football's used in the afc championship game against indianapolis had been partially deflated. those are your top stories. scarlet fu joins me with more on this story. it will not go away. a lot of people are starting to weigh in. -- tom brady'sys agent called it ridiculous.

he is a jerseys doubled in sales after this went to an effect. this is not having an effect on his fans. mark: the social media result. the owner of the jets -- scarlet: they had their own deal. [no audio] she had to take on a tweet, because there was a smiley face, tom brady suspended. taking a little bit too much glee. scarlet: she deleted it. that tom brady will agree with that because he wants to play football. donald trump came out. he said, in that tweet that he believed in a sense, that brady would have won if he was

throwing a soccer ball. scarlet: leave it to him to leave with an exclamation point. very consistent with what he is like. mark: the former dealing with, excuse me. he and bill belichick go back a very long way. i am wondering what he will say. we have been seeing a lot of the former patriots are coming out and they are defending this. they are saying, the refrain is, .ell, everybody makes mistakes scarlet: they say, they always push the limits, they push the boundaries. if you get caught with the open secret of cheating, it might not be such an open the grid. it might not be something that they can cast the blind eye over. mark: scarlet, thank you so much.

still ahead, john kerry met with the russian president vladimir putin. the agenda, ukraine, syria, and yemen. we will have the latest. ♪

♪ john kerry met face-to-face with vladimir for the first time into useful -- in two years. john kerry tweeted that he had some frank discussions. did the meeting make any difference? capitolok is on hill where he is tracking the big senate vote on trade. let's start with the u.s. and russia. did he make any progress?

peter: we are waiting to hear from secretary care of. supposed to have a joint media availability. it hasn't happened yet. u.s.r bf heard from the side is what kerry tweeted out, saying that he had a frank conversation. on the russian side, somewhat a frank tone. a broad range of issues, russia remains ready for instructive corporation after this very brought on most importantly by the fighting me have seen in ukraine. a lot of confrontation there. this agreement over edward snowden. the last time john kerry was in russia, it was just before edward snowden lasted in russia. have a face-to-face meeting. the u.s. was hoping to open those lines of communication with vladimir putin. that at a minimum has been achieved. mark: you talked about a whole

host of tensions, but can they work together on anything at this point? peter: there is a whole host of areas that they can discuss. iran, there have been some differences. the russians have agreed to send them a defensive missile system which caused education in the u.s.. not sure if that came up in the course of the conversation. there are areas of potential compromise. one area where they were said to be under some discussions today, that was syria, whether they could forge any compromise. they have not had any real areas of compromise in regards to syria. we will see what john kerry has to say. mark: the president battling fellow democrats including the senator from massachusetts, elizabeth moran.

talk to me about that vote. will the obama white house prevail? peter: in the past few moments it has been abundantly clear on capitol hill from talking with tenant democrats that they will be able to block their own president and not allow him to move forward with this fast track to legislation in the senate which would pave the way for the transpacific partnership. this is a big blow to the obama administration. clearly, the white house was hoping for success today for top they thought enough democrats would join with republicans and move forward with this legislation. it did not happen in part because of tenders like arbor boxer on the floor. in 1988, i voted to allow the ministration to negotiate the north american free trade agreement. then, five years later, i saw the deal. it was a bad deal.

i voted no, but it was too late. thati saw the deal, i knew i couldn't six it because that is what fasttrack is. peter: reality what happened, even though the democrats are with the president on trade promotion authority and the specific trade bill, many of them decided not to support moving forward at this time and hope to boost their leverage in negotiations down the road. the white house is hoping it did move forward. this is a blow to the president. the white house blindsided by the vehemence from their own party? peter: i think you have seen about the presidents on comments from elizabeth warren, that there has been, that the white house is clearly disappointed with democrats standing in the way of their own president.

mark: will there be every visit of this in the future? peter: the reason they want to get this done before the next vacation for congress is cut the transpacific or should negotiations are underway. this is supposed to be done, finalize the pacific partnership. now, the timetable, definitely in question. be sure to catch peter's interview with richard shelby ahead in the senate banking committee as he unveils his bill to overhaul dodd-frank. that is coming up the next half-hour as bloomberg market day continues in just a minute for.

cory: 11:00 a.m. in san francisco. top andsheldon wants to

oversight to the federal reserve and ease the regulatory burden. .> nfl draft the hammer we will speak to a former patriots executive on what is next. to givel decide whether president obama fast track authority to negotiate the agreement. we will have the headlines when it happens this hour. ♪ ♪ mark: good afternoon. i am mark crumpton, here with scarlet fu. two hours. we are taking a look at the