uber wants a billion dollars and is asking the bank for a line of credit. ink: shot a five surge is its trading debut, up 51%. ort hang on to the gains will it go the way of his more famous cousin? >> good morning, everybody, i olivia sterns. erik: i am erik schatzker. let's find out what is happening in markets. it is moving the fixed income market. --is most definitely moving but right now equities are flat.

spiking.he dollar is we are also seeing the euro moving sharply lower on this news that apparently the german finance minister said greece might actually need the drachma if these bailout talks do fail. we are seeing broad dollars strengthening. look at this, oil now headed for a 10th weekly advance amid signs that stockpiles could be easing. it is the longest string of weekly gains for west texas intermediate since they started keeping record in 1982. erik: let's look at what is making news. the cost of living is increasing at its fastest pace in years.

that is the inflation level that we do tend to look at because it excludes volatile factors like price increases. when of the fastest-growing categories was rent. the fed would like to see inflation at around 2%. is stepping out summitimism -- in an eu she met late into the night with greece and france. she says there is a whole lot to do before that can happen. >> i will have some bilateral talks and have already spoken last night with the french president and greek prime minister. friendly,ery constructive exchange but it is clear that further work is necessary. erik: angela merkel was reported to the imf, european union.

they will contribute toward a viable long-term solution for greece but the french president stresses the need for transparency. >> greece needs to give as much information as possible on its reforms, which is what the greek prime minister is working on. erik: a greek official says they will be unable to repay the imf next month unless a deal is reached . the germans are talking about the return of the drachma. finance minister raised the possibility of a parallel currency for greece, if talks with creditors fail. they suggest that some in germany are preparing for a worst-case scenario in the ongoing greek financial crisis. german chancellor angela merkel says greece needs to do more to get the next round of bailout funds. to clean up the

oil spill on california's coast, it is becoming diluted. less than half of the 21,000 gallons that reached the water have been cleared up. sushi is being blamed for sickening 53 people in nine states. they may have eaten raw tuna tainted with salmonella and most of these cases are coming out of california. 10 people have been hospitalized. regulators on the verge of getting antitrust approval for an overtake. to win approval, reynolds has its blue e-cigarette business and it's cool brands. the clinton foundation is releasing a comprehensive risk -- list of the family's speech fees. at least $130 million for giving speeches.

the foundation received $26 million. jersey,ve from new chris christie goes off on the media. of the garden state rarely sensors himself in his public appearances so watch out when he is behind closed doors. he had plenty of off-color things to say about the media. have a look. >> this is a country that does not know what i'm doing every day. then just get away from a then. eyes, clean out your ears, and pay attention. erik: the dinner was off the record. one publication obtained the recording of his remarks and posted it online. disneyland is celebrating its 60th anniversary today. celebrations will take place in california and florida.

strollers --ed in opened its doors july 1975. olivia: my morning must read, warren buffett is against raising the minimum wage. what he thinks we should be doing instead. the latest and greatest in american heavy metal, we have a new look at the corvette stingray. interview.chatzker's mike pearson,with asked him about his big buying streak, and whether his stock will keep trading. olivia: the cost of living rising at a pace faster than expected. excluding food and fuel, it saw its biggest gain over two years. joining us to discuss is josh wright, u.s. economist. we are also joined by bloomberg

stocks editor mike reagan. they've basically made it sound like a june rate hike was off the table and then here comes inflation. >> we will hear from her later today but the reaction in the markets was pretty fascinating. stocks are down, treasuries are down, but a big exaggerated move in the euro. erik: lack of liquidity. it is a pre-holiday in the united states. there are a number of euro-dollar options expiring today. that is the ground covered by this move. hard to really make the connection too strongly but it is interesting that all these so-called pain trades we saw

being unwound in april, short euro, long dollar. it is basically a tough time to be a momentum chasing fund, to manage futures and try to chase these trends. it looks like the original trends are back in place that were reversed in april and may. i do not think janet yellen will make that any easier for futures traders. the policy is data dependent and we need to see stabilization but we further need to the improvement in the labor market. the fed took a pass on the labor market. we had a weak jobs report in march and a decent one in april but no time to make it up. it just raises the stakes even

more because may will tell you if march is just a blip or the beginning of a trend. olivia: we say that every month. it is a way to get people to tune in. how much black is left in the market? there is a lot. particularly in the q&a. other dataabout the point that we saw, the real weekly average earnings, up 2.5%. for the past few months there is been steady improvement. it is very much a lagging indicator so i think we saw stronger numbers the first quarter but average hourly earnings, that has not budged significantly. i think the reality is that it is a positive sign that inflation has stable as -- has stabilized.

services is a category were there happens to be a big difference between this and the fed report. janet yellen trying to talk momentum out of this market and is that possible question ?a you say bonds or stocks are overvalued but over the long term you have to back it up with action on rates. is that what she is trying to do or laying the groundwork for higher rates? erik: one thing we know for sure, a few weeks ago she talked down the dollar. the euro is back to $1.10. can we expect we will hear from the fed one more time if the dollar strengthens that far? >> certainly they could put stuff out in the minutes but they will always be a little reticent to talk about the dollar. that is not really their area of jurisdiction. i think the fed really tries to

be agnostic about asset prices and less they see something way out there. background is as a labor market economist. olivia: why do i need to care about a man session? look at who is sitting up here on this desk. michael: i look at those numbers in the first thing i think is men cannot have it all either. olivia: we are making this a purely economics conversation. this chart shows the participation rate of men is in a state of structural decline. why? matriculation and graduation, the proportion has shifted significantly toward women. it will be interesting to see

what kind of research comes out over time because we do have anecdotal evidence of how men , or theyng home more are switching and doing more of the domestic duties. olivia: the part i did find the part i found interesting was the lack of jobs is the reason that wages have come down. they had it all. including more money. the labor participation rate is fascinating because i feel like the labor market does not give you a lot of color. obviously if you want to criticize obama, you will say people are dropping out of the labor force because they cannot find a job. there is more to it than that. there could be a positive side, they be boomers retiring sooner.

oomers retiring sooner. secularou break down decline in this number? michael: you have to dig through the data but we do not have great granular data for this, and these are very slow trends. if you look at the horizontal axis on that chart. olivia: thank you so much, mike regan, josh wright, both of bloomberg economics. two men i think we can say have it all. erik: coming up on the bloomberg market day, warren says he has a better day than raise -- a better idea than raising the minimum wage. we will tell you what is on his mind when we come back. ♪

julie: this is bloomberg market day. i'm julie hyman. we have been watching currencies today, especially the euro -dollar tree. we got that inflation this morning that at the core level shows the biggest increase in a while. you can see it very clearly on your chart. otherwise, the u.s. stock markets, not much change. we have a lot of stock-specific notable mooves. sold its stake in a chinese company called elon for $671 million. it means it is getting out of the chinese market but it looks

like investors are happy with the price and the shares are up nearly 5%. aeropostale, we have had a lot of mixed retail numbers this week. came out earlier this week and beat estimates but not so for this company. second quarter lost will be wider than analysts estimated. the shares are down 13%. , one of the best performers in the s&p today. fell by 1%,sales partly because of the effect of currencies. the forecast for the full year leaves it room to beat analyst estimates. erik: thank you very much. olivia: it is time for my morning must read. warren buffett is worth more than $70 billion and he plans to

give away the vast bulk of his wealth. he is clearly in favor of helping people at lower income levels. the question is, why isn't he in favor of ways -- raising the minimum wage? he says he has a better idea, why not expand the earned income tax credit? i really like that. a couple points he makes about income inequality. in 1982, the net worth combined was $93 billion when today it is $2.3 trillion, up 2400% in slightly more than three decades, it. periodh the medium -- a in which the median household income has increased. i will read you a little bit of the op-ed. he said payments to workers diminish as -- the gaining wages

always produces a gain in overall income. the process is simple, you file a tax return and the government sends a check. erik: i was looking into earned income credit and there is a debate that is worth raising for who is -- who benefits the most from raising the earned income tax. it benefits those who are single and have a lot of children. if you are married and have a lot of children you also benefit but you have to be making more money to get the same amount of credit. it looks like the maximum benefit kicks in at around $20,000. worktt says it needs more and it should be carefully crafted. he is talking about something then what -- different than what we have today.

does not necessarily help the people who are making way less than $15 an hour. the people who are going to make $50 an hour or not necessarily going to be making it on a full-time basis. know ift necessarily they are married or single. i am not sure if it expansion of the earned tax income credit asefits the same people would increase from raising the minimum wage. saying the minimum wage distorts the market. erik: he is saying it would cost people lots of jobs and there is , chief economist to the president i think would vigorously debate that point as would a number of liberally inclined labor economists. i am in neither camp. i just do not think, as george attack he did yesterday, you

cannot make a blanket statement about the impact that a minimum wage increase would have. a lively debate. many important ideas raised by the op-ed. erik: worth reading for sure. jerry brown like the earned tax income credit. olivia: more to come on bloomberg market day. as americans get ready to hit the roads for the holiday weekend, we get a behind the wheel look at one of the most iconic sports cars, the corvette stingray. ♪

♪ olivia: sales of the 2015 chevy corvette are off to a strong start. sold through the month of april. we took the stingray for a test drive. >> we all know the corvette

stingray is quick. 455as a 6.2 liter, horsepower push rod v6 -- v-8 engine. it has a manual transmission that will hit 60 miles an hour and three seconds and hit a top speed of 200 miles an hour. this thing strikes fast and hard. it is a really good all-around sports car, especially for $63,000. people love it because it is a legend and it is so fun to drive. onefrankly, i would not even though it is relatively affordable. chevrolet has an image problem. it is unfair because of how well this car drives but the modern corvette is indelibly linked with the middle age man trying to recapture the youth.

lifer than the more subtle of a mustang, the corvette refuses to blend in. the massive front nose, blaring hipsnterior, and sharp exclaim look at me. that is unfortunate because the engine is superb. the gears move so smoothly. the v-8 has more juice than the bmw m3. the brakes are firm and responsive. there are a couple things i do not like about the car. it gets hot inside as it idles in traffic and the suspension is hard set for mind fearing highway strikes, not climbing over potholes. the leather feels subpar and the top feels too low. you will forgive as you accelerate past 50. even if you did buy this car,

you will spend all day explaining to people why you bought it and why it is better than the porsche or audi or the mercedes. maybe it is, but for me at least, it is no way to enjoy it. olivia: have you ever seen or a womanr 50 besides hannah actually driving corvette? erik: no. olivia: it is an image problem but a cool car. erik: i spoke with the ceo of valiant. he is a serial acquirer doing dollars in billion his deals. what is on his shopping list. ♪

like a gold-plated soybean. reliably fast internet starts at $69.95 a month. comcast business. built for business. ♪ olivia: welcome back to bloomberg market day. i am olivia sterns. erik: i'm erik schatzker. voteenate may take a final

on the fast-track trade bill, allowing president obama to speed up the trade deals being negotiated. 62-38day the senate voted to advance this deal. over maybe taking another step toward an ipo, seeking a billion-dollar credit line. companies current -- frequently seek credit lines before going public. jpmorganhe board of will not have to face a lawsuit. investors had claimed that the board did not do its job when a trader in london lost more than $6 billion. a former aide to prime minister david cameron said the company plans to close its company in

promotingy for not microsoft software. microsoft is not commenting on the story. voters in ireland are deciding today whether or not to legalize same-sex marriage. votes indicate the proposals will pass. catholics make up 85% of the country and ireland became one of the last nations to decriminalize homosexuality. a south korean court suspended a woman's sentence for assaulting a flight attendant after having a tantrum when she was served macadamia nuts in a bag. those were your top stories at this hour. let's take a quick look at what is moving the markets this morning. let's look at u.s. equities.

they are flat today. the real story is in the currency market, the euro --pping after angola merkel we are also seeing the pound, which has become a favorite of and a bigists, move in oil. it had a 10th weekly advance amid signs that a glut of stockpiles is easing. we are leaving out the strength of the dollar, a big move higher in the dollar off the strong cpi numbers. the strongest increase in monthly cpi and two years. erik: the dollar moving strongly against the euro. you will see a big advance, a bit of a pop. talk about mike pearson, the ceo of valeant

pharmaceuticals. of the most inquisitive companies in the pharmaceutical it industries. years, he hasfive done seven deals over more than a billion dollars. he is raising some questions about where pearson is going to go shopping next. he needs to get his leverage down so that he can go back to the debt markets and borrow more money, but he is ross affecting our here is what he told me. i think people are nervous about the emerging mac it's. -- markets. many companies are reluctant to go there and we like to go where people are reluctant. our strategy is somewhat of a contrarian strategy. -- i should look at markets like brazil or russia where we have seen currency

depreciation and say that is the place alley and likes to go shopping? dealsl: we like to do that will create long-term value for shareholders so we always look for the right price, and one that we feel we can earn a great return. we are also looking for markets that have great long-term growth prospects and that comes down to demographics, comes down to whether we believe income will rise over the next decade. we look at the fundamentals. economicre are the fundamentals good, from your point of view? michael: we like asia, we do like the middle east and northern africa. we continue to be bullish on russia longer-term. i think mexico and colombia, chile, peru, we like those fundamentals. those are just a few examples. erik: does the speed with which

you reached a deal for silex, even though it was a competitive situation, say something about the way that valeant is going to bid in the future? michael: we always tend to move pretty quickly. part of it that we have great interaction with our board. they are basically willing to meet anytime, anywhere, so we can get them involved quite early on. we have done a lot of deals and i think one of our core capabilities as well as due diligence and making sure we do that, and also integrations very quickly. we do believe speed is one of our competitive advantages. is your strategy going to change or evolve once access to capital and leverage dries up, as it inevitably well? always timese is

and a cycle were capital is more expensive but part of our strategy is to make sure that we always have access to capital. that is why we want to keep our leverage ratios at reasonable levels. topart of our strategy is make sure we always have access to the capital markets. that inevitably it will all dry up. there is aur point, cycle. there are times in which credit is readily available and there are times in which it is more expensive. the price of credit at times determines whether a deal is feasible or not. michael: that is very fair. if interest rates are much higher, it makes the hurdle rate for doing that deal much greater. if we go through a. like that -- let's say there is

a year, six months, our base business is performing extremely well and we are more than happy to continue operating our base business and use our capital to buy back shares. there has been periods of time when we have done that aggressively. erik: you walked away from allergan but that deal attracted a lot of attention because of the innovative approach that you took, partnering with bill ackman to an pershing square. we have talked about this before but i'm curious to know whether the success of that approach, inasmuch as you both made money, becomes a template for the future. michael: no, not necessarily. have learned some things about hostile takeovers using stock, especially against a target that is not interested in really evaluating our

business. i think it is not likely. i will never say no about anything but we are not likely to approach, take that same approach again. ceo miket was valeant pearson, up in toronto for a bloomberg economic summit. great to see him. olivia: and a great backdrop in the hallway behind him. it was awesome that you got him. my question is, at one point does valeant od on acquisition? erik: he would say never. he made this point at the end of the interview, we learned a few offer weom the hostile made against -- four alley -- allergan. the only way they could have done that was with stock. he said, we learned a few

things, meaning if we try to use stock in a hostile takeover we have to count on the target trying to talk our stock down aggressively, and that is exactly what happened. they had to sweeten their deal many times. eventually they did not get it. but it doesme money tell you they will be very reluctant to go into a situation like that again with an or mostly stock offer, which theoretically limits the size of a company because now they have to do it with cash and debts. olivia: and they have already got a lot of debt. erik: the only way to get rid of the debt is to use your paper currency. olivia: it has been real, we will miss you. erik: it is only three days. olivia: i'm staying with you. so much more ahead. looking for places to stretch the strong dollar abroad. you can even go to erik's

hometown in canada. places you should go with the stronger dollar. ♪

♪ olivia: welcome back to the bloomberg market day. we are about one hour into the trading session and i want to get you caught up with all the action. an hour away from the end of the trading session and an hour away from the weekend in london. an hour away from my long weekend. the ftse outperforming much of europe, hardly on the back -- on the back of gains. and the rest of europe trading sideways through the

back half of this week that the dax, the exit benchmark headed for one of the best weekly gains so far this year. market, it is the news, the u.s. cpi data print comes in just marginally higher. -- reaction of the fs market a weaker euro-- but just to show you how the dollar is performing against the other currencies in europe, the pound down almost one full percentage point. king dollar ruling the fs market -- the fx market in europe. olivia: really around the world we are seeing the dollar gained strength because of that cpi report. if you look at the pound, the aussie dollar, those are actually those that are moving down the most versus the u.s.

dollar. that is how much the dollar is gaining versus the krone. as john mentioned, this repositioning in the wake of that. biggest gain in two years time. the backdrop for all of this is that we are going into a holiday weekend in the united states. has fallen.s. stock dramatically. socks -- in s&p 500 stocks is down. if you take a look at the treasury market, we are seeing selling and yields pushing higher, which is in line with the same kinds of moves that we are seeing in the currency markets as well. the 10 year yield going up pretty sharply. on the stock level, let's look at hewlett-packard, coming out with earnings that beat estimates. about theormation

split. it loses some of the efficiencies it is had from being a combined company that the cost will be smaller than some analysts have projected. your attention to quest diagnostics, those shares have been spiking along with laboratory corp.. we are looking into why that is happening and we will update you when we have more. the nikkei, hang seng, and shanghai composite all ending in the green. the shanghai composite trading at a seven-year high, seeing its biggest weekly gain since december. one big story coming out of the region, investors are asking if regulators should have done more after more than $35 billion of market value was a and just two days this week. stephen engle has this report. foreign investors have

long used hong kong as a proxy to invest in mainland companies but they are now calls for money managers for even tighter oversight and investigate possible stock manipulation allr three listed companies tumbled more than 40% in a single session of the past couple of days. these stocks have surged more than five full each over the .ast year energy remains suspended. the head of energy lost $15 billion in a single day. now here are some of the top stories crossing the bloomberg terminal. agency says the uncle of kim jong on attended and eric

clapton conference -- concert. it has been the first time he was seeing in public since his younger brother took power. in london, a frightening reminder of the second world war, and unexploded bomb was found near wembley stadium. evacuated officials workers and residents. it is believed to have been dropped during the nazi raids over london. the eiffel tower is closed to the public, the reason -- pickpockets. tourists are locked out of the tourist -- the paris landmark. one of the stories that the finance pros are interested in today, you can see a few of them here. the one that caught my eye was the third one and that american

tourist getting more bang for their buck while traveling abroad in europe. the dollar has strength in nearly 24% against the euro. with hisjoins me thoughts of where he is headed this summer. pimm: i am not really headed anywhere but in picking up on the story about the eiffel tower, as a tourist you will not be able to go to the eiffel tower but there are many other things to do. strengthntage of the of the u.s. dollar in places like france, italy, greece, spain. olivia: anywhere that uses the euro. pimm: and also focus on things that are priced for locals eating if you are going to a hotel, they have the ability to quickly change your prices. if you are going to cultural institutions, like a museum, or domestic transportation, you will find that it is about 15 to

20% less in dollar terms than it was maybe five years ago. focus on what the locals are being catered to and that will give a good guide to make your dollar grow stronger. olivia: i'm really excited to go to europe this summer. pimm: where are you going to go? olivia: i'm going to france. all those interest fees, museums, and cultural institutions, they are priced in local terms for local individuals. you could also go to canada. olivia: visit erik schatzker's family. pimm: and maybe go to mexico as well. olivia: pimm fox will be joining me in just about 15 minutes. we will take you to the red carpet on the french riviera for the world's greatest film festival. stay with us. ♪

♪ olivia: welcome back to the bloomberg market day. every friday we bring you a story celebrating the good life and what could we do better to the filmnd celebrate industry at the cannes film festival. it is arguably the most famous week long of film celebration. it has been known to breakout films and up-and-coming directors. it is a marketplace for the buying and selling of international movie right. john joins the onset. john: my pleasure. olivia: you have been going to the cannes film festival since 1984. what has changed?

little torisingly industry adds inflows, fashions come and go but the essence remains the same. olivia: you said a lot has changed. john: a lot has changed in the industry. ted fromntioned before netflix gave the keynote speech at the market and his message of subscription vod did not go down particularly well with the theater-crazy french public. olivia: how does hollywood feel about netflix? feel really good about netflix because they are another buyer and they are very smart and forward-thinking. olivia: some of your peers are threatened. john: always.

there is our film. olivia: since it is what brought up the photos, let's keep on talking about the film. "carol."chett stars in it is one of the most talked about films. there is a story, you turned away women in flats? john: i did not. producer work combat boots and was admitted to the valet. my girlfriend were flats and she is a fashion expert. she is making a documentary about manolo blahnik and they let her in. i was not witness to anyone turned away. as we all know in hollywood and cannes by extension, all rumors are true. outia: some people tweeted that it was bogus but i hear

they enforce the dress code quite strongly. john: i have heard of directors being denied admission to their own film. olivia: obviously, lots of parties, glitz, and glamour. are you getting a lot of business done? john: yes. a lot of films were selling off of 10 minute reels. it feels really robust. olivia: what kind of films are selling? we make a big deal that hollywood is only interesting -- only interested in making sequels. is there and had a drama that sold for an astounding amount of money. erik: how much? john: they said $20 million but i think that includes the releasing cost as well.

erik: what types of films are hot right now? john: there was a drama with susan sarandon -- susan sarandon, elle fanning that sold off of a real. we have a film in postproduction that is garnering a lot of interest. erik: when you make a film nowadays, do you think, how will this sell to the international audience? john: if you do not, you are remiss. erik: thank you so much and congratulations on the success much more to come in the next hour of the bloomberg market day, including a deep dive into shop oify. ♪ we live in a pick and choose world.

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for greece and the eurozone. idea being floated, a parallel currency for greece. anchor: is inflation inching towards the federal reserve's goal? a $1 billionnts credit line from the banks. could this be a step towards a public offering? olivia: good morning. i'm olivia sterns. pimm: i am pimm fox. let's look at the markets right now. unchanged s&p 500 right dow jones industrial average down about 19 points, nasdaq up 11 points. a divergent market. olivia: