time is running out 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. of tradersbe a lot

are already headed out to the beach, although janet yellen will be speaking at 1:00 p.m. the big story is in the currency markets. the dollar is rallying off the bat of those inflation numbers. the biggest month over month increase since january 2013. we are also seeing euro weakness we think these comments -- the german finance minister saying if talks with greece fail, they need to start thinking about a parallel currency. pimm: pound sterling also losing a little bit of value against the dollar. olivia: i want to show where we weeknding this 10 -- 10th of gains in oil. the longest stretch of gains since 1982.

gas is still 30% cheaper than it was this time last year. go to europe, good time to be an american. now it's time for a look at the top headlines trade we will start with inflation. this is the fastest the cost of living has risen and two years, the inflation level minus a cost of fuel and food, which are more volatile. one of the fastest rising categories, rent. the federal reserve is considering when to raise interest rates and said it wants inflation rising at a 2% level. in the senate, a final vote on a held bill make -- may be as early as today. led an effort to block the bill yesterday. they say the trade agreement could end up costing jobs in the

u.s. germany may be preparing for the worst when it comes to greece. ministern finance raise the possibility of a parallel currency for greece if talks with creditors fail. the comments come as some in germany suggest germans are getting ready for a worst-case scenario. an eu summit in latvia failed to produce a deal today. angela merkel said greece needs to do more to get to the next round of bailout funds. i will have some bilateral talks and have already spoken last night with the french president and greek prime minister. friendly, constructive exchange, but it is clear that further work with the institutions is necessary. olivia: merkel was referring to the imf, ecb, and the so-called troika behind the greek a lot. -- bailout. reynolds is best known for

its camel brand of cigarettes. to win approval, reynolds had to offer to sell its loop -- blue e-cigarettes and cool brands. risingof dear -- deer this morning, forecasting better-than-expected profits for the year. sales of the signature green tractors have been falling, but deere is offset that with growing demand for its dump trucks and other construction equipment. it is a house that has probably seen its share of flappers, bootlegged gin, and parties until dawn. now you can purchase the long island home where f scott fitzgerald is believed to have written "the great gatsby." coldwell banker residential brokerage has listed the home for $3.8 million.

for that you will get seven bedrooms, six full bathrooms, and one half bath. coming up in the next hour of the "bloomberg market day," learn why hewlett-packard's split may end up costing more than expected. plus, hollywood is banking on remakes and sequels, including the upcoming "dressing park".-- "jurassic as we have been reporting today, cpi data signals inflation is moving towards the fed's goal, which could mean a rate hike sooner or later. the fed is haunted by the threat of another taper tantrum, and that could delay liftoff. the head of macro

strategy agreed capital. peter, big surprise on cpi. is inflation back? guest: it looks like it might be. the fed minister kept talking about the transitory effects of low inflation. the fed is preparing us to expect inflation and that they really want to move as early as june. olivia: it is surprising. the minutes that came out this week look doveish. another this morning's numbers look a lot more hawkish. guest: we will hear from janet yellen today and get more guidance from her. one of the thinks they said in the minutes was that careful committee communications regarding policy intentions could help dampen markets. is that really the case? quarter-point rate increase as scary of a thing as tapering, qe, and can the fed really talk us out of this? guest: they have already gone a

long way to talking us out of this. the fed has been working and pushing the markets wider. when they did the taper it was a non-event. taper catcher? ben bernanke3 said, there is possibility we could start tapering asset purchases. the market $35 billion a month but it went down. that was the tantrum part of it. olivia: the freak out. guest: some were calling this a potential taper tightening. not sold yourave

bonds in anticipation of the increasing interest rate, have you been living under a rock for the last five years? guest: people are longer treasuries and longer more treasury risks this year than last year. ( why? guest: one of my favorite charts is bloomberg takes the average forecast of the analysts. for the first time, the forecasts are lower than the 10 year yield. pimm: looking in the rearview beer -- mirror is not a good way to drive a car, right? guest: sometime this summer we could see the 10-year go to 280. guest: the other big issue is all this talk about liquidity problems in the treasury market, because of new regulations, banks can't hold the big inventory of on state used to hold. -- bonds they used to hold. of liquiditylack

that everyone has been trying to flag. what happened in october? guest: that says it all. rallied out of whack with any of the fundamentals in one day. a lot of people are pointing at liquidity. we have not moved to this all electronic age. the bid offer is tiny. these very rapid moves were people trade at a small size, it triggers more selling. pimm: can i bring up oil? is it the dollar stronger now? yes, we think oil has probably hit its peak and we think it will start declining again. we are going to see some growth and production again. we have seen a lot of speculative longs. pimm: so 60 is the ceiling for

you? the strong dollar should help speed that along. olivia: i want to get your thoughts on the trajectory of tightening. i want to play some sound from mohamed el-erian. we don't have a soundbite. yes, may be the fed is going to tighten this much and this much. it will not be a normal tightening. guest: there will be a certain amount of improv. pimm: improv from the federal reserve. guest: is it a failure if they tighten a little bit and have to cut quickly? guest: i think we will see qe4 hike, have a dramatic impact in the economy, and they will have to wind up doing qe4 before we see a 1% fed fund. --ore we get to 1%

[indiscernible] then you want to be back in bonds. i think the ship is sailing as in now. guest: peter share, and mike reagan, thank you very much. tuned for live coverage of janet yellen's speech on the economy coming up at 1:00 p.m. eastern. meg whitman has a pc problem. >> while the pc market is weaker than we anticipated -- pimm: second quarter earnings report, next. ♪

go straight to julie hyman with a look at what is happening in the markets right now. julie: we have been watching overall markets that are little changed, but we have seen interesting movement into individual stocks. take a look at quest diagnostics. we saw the company shares spike earlier. they are still trading higher, and this apparently is after a tweet that has since been removed by an individual calling himself options hawk. that is a buyout approach. that does spark an interesting debate. it happens once in a while when you get someone tweeting, there is no vetting, but you do get the stock moving because there are algorithms that scraped twitter and other social media sources for their trading position. beware,ware, or seller

depending on what this stuff says. we will still keep monitoring quest diagnostics. taking a look at time warner and charter communications today, the "wall street journal" reporting the charter will be approaching time warner with another bid. time warner has been the subject of speculation ever since the comcast offer for the company and deal for the company did fall apart. we are looking at intuit as well . numbers,concern about that they would not be as strong as they have been recently. the company came in and beat analysts' estimates. we are seeing those shares up by 4%. pimm: thank you, julie hyman from the newsroom. olivia: now we look at some of the top stories crossing the bloomberg terminal at this hour. the price of oil is falling today, crew down as much as 2%.

consumer prices rose faster than expected last month, bolstering the case for higher interest rates. americans will take advantage of those lower gas prices this memorial day weekend. says 37 million americans will travel 50 miles over memorialome day weekend. the daughter of the korean airlines chairman will be released from prison. in february a korean court gave the woman a one-year sentence. she had ordered a korean air flight to return to the gate in new york after a flight attendant served her macadamia nuts in a bag instead of on a plate. pimm: those are your top stories straight let's move on to hewlett-packard. that areed earnings better than estimates. shares arising on the news.

the pc and enterprise business units down year over year. gevo executive meg whitman has offered more details about the company's restructuring, saying hewlett-packard may take a $3 billion charge. what is going on with hp? guest: it was a mixed four to segments were down across the board. there was no segment that was spared. you have to sift through all of this to find the silver lining. you seemingly did because you said they put some pretty good spin on this. if you look at the cost cuts, they continue. andou look at all the puts takes, they reaffirmed guidance

despite these headwinds. currency was and continues to be a major impact. they were down 7% year-over-year. five percentage points came from currency. last and not least, the pc business is doing ok. olivia: cory, i think what everybody wants to know is, can the split actually revive growth that hp. every single business unit at hp is shrinking. this is the worst a sales decline may have seen in a year and a half. across the board, everything was shrinking. you have got to do extreme yoga to find a way to look for good news in these results. the business is shrinking because they managed expectations -- i don't know. smaller, lesss profitable. the free cash flow is a lot worse this quarter than it was.

the software business is supposed to be the hope for the future. it pc sales is better than could have been, also smaller. across the board, every single business unit was shrinking. profits were worse, and they quietly announced, really buried the news of another restructuring, $3 billion restructuring that will go another three years. this company has been doing restructuring since all the way back to the year 2000, every single year they have had restructuring charges. it is not restructuring after 17 years. pimm: what is the bad news, corey? that,other than everything else is great. it is an amazing quarter that shows how difficult this business is. areia: perhaps investors applauding restructuring even if it is restructuring in perpetuity. cutting costs is better for the bottom line.

a periody are ending of what started with 20,000 layoffs. now they are going to start another one. olivia: you're off. pimm: if you ran your household the way [indiscernible] runs the business, what would your house look like? guest: you see what dell and ibm and hp have gone through. it ain't easy. hp is doing the best it can. olivia: does it get better after the split? guest: i don't know. pimm: well done. bloomberg's cory johnson. olivia: still to come, this memorial day friday, are summer blockbusters losing their originality? does this trailer look familiar?

more on the summer sequels, next. ♪

olivia: summer movie season is underway. there is a remake of the poltergeist, and tomorrowland starring george clooney. a movie that is based on the theme park attraction. pimm: this summer you will not see much more that is original. it's all about remakes, sequels. just like it was last summer. ♪ ared: the summer, studios investing in franchises. the thinking is that if the movie was a success, why not make a sequel or prequel?

the summer movie season kicked off with "pitch perfect 2," and that made more money over its opening weekend than the first film in its entire domestic run. there will be more comedy sequels. will have to prove you're a person in the court of law. july. "magic mike xxl" in what we are seeing is a sequel to last summer's summer of sequels. was amer 2014 there fourth "transformers" movie, another "teenage mutant ninja turtles" movie, and "22 jump ofeet," a sequel to a remake a tv show. producers and screenwriters seem to be spending a lot of time in the archives. the first "terminator" came out

more than 30 years ago. park" morejurassic than 20 years ago. the fourths installment of a franchise that has been around for decades. studios are finding fodder in video games and old tv shows. seems to be working out for the studios, on track to make $5 billion over the next few months. and that is summer box office records. >> i will be back. olivia: i like mike walberg, but i am shocked that ted has the legs for a sequel. pimm: anything can be a sequel. sequels go back to the beginning of hollywood. olivia: these are all huge budget films. studios are saying if i am going to put out on hundred million dollars, i want to take less risk, and building on the

franchise, it is not just box office sales. it is royalties and all the merchandise. pimm: all the george clooney masks, right? what is the worst sequel you ever saw? reloaded"? olivia: i did not see the first one, but "jurassic park" -- i'm interested in that one. pimm: still ahead on the "bloomberg market day," shares of spotify soaring in their first day of trading. we will take a look at the initial public offering pipeline. ♪

pimm: let's take a look at the top stories at this hour.

the new inflation report may set the stage for the federal reserve to raise interest rates later this year. the so-called core cpi rose 3/10 of 1% last month. rents were higher. medical care rose the most in eight years. ok to marge,it is according to bloomberg news, chairman tom wheeler of the fcc called chief executives at time warner and cable and charter to say there is no banner -- ban on big deals. executives have expressed concern following the fcc's scuttling. in california, weather is making it difficult to clean up an offshore oil spill. waves are as high as your feet in the pacific ocean off the coast of santa barbara. a pipeline broke tuesday and less than half of the oil

usually makes it into the ocean has been cleaned up. two beaches have been closed and the area is closed to fishing. there is something that might reduce those you're taking delays in airline travel. the faa has approved a new data and e-mail link between control towers and planes. pilots can file flight plans and request route changes in a matter of seconds, rather than long radioave a conversation. the system is expected to save airlines time and money. those are good top stories of the morning. the markets are closing in europe and for the very latest, let's go to bloomberg's john farrell in london. john: let's wrap up the trading session this friday. vodafone is pushing the ftse high. john malone flirting with the idea of putting those two together, giving a ftse lift elsewhere.

the dax still on for a pretty big week of gains. outside of the market, the noises coming from greece. data, core inflation, inflation is starting to pick up. people are starting to think about their positioning in the effects market. euro dollar sinking of the back of that data point. also whacking sterling, down almost one full percentage point against the dollar. yesterday the story was pound power. this morning it is king dollar through the day. the fx market against the pound and the euro. back to you. pimm: coming up on the "bloomberg market day," paris in the spring time. with a stronger dollar, how much will it cost compared to five years ago? the travel economy is coming up.

from sin city two holy city, a look at how mecca is taking the claim to home of the largest hotel away from las vegas. walmart is putting its money where your mouth is. that is with the humane society. we will sit down with the humane society president to find out what is going on. the initial public offering market is trailing last year's by nearly half. this year we have seen nearly 13 battle dollars -- $13 billion in proceeds. companies raising billions of dollars. begin-commerce shopify's efforts yesterday, will this convince other private companies to go public? she covers the market for us and looking at technology companies

is a partner at tritone research. is there any detail that tells us why so few ipos compared to last year? guest: it is a confluence of a few factors. the s&p 500 has risen. the overall benchmarks have risen so much over the last investorsyears, that have wanted to participate in ipos to achieve that alpha, to outperform the markets. this year the benchmarks have not been that stellar. the supply true on side with companies going public. so many went public over the last two years. there is a smaller pipeline, this year, of companies that want to go in. , it you factor in energy just isn't that right time to go public right now. pimm: i will come back to this idea of benchmarks. i want you to comment specifically on the technology business and the idea that

people are piling billions of dollars into private companies. is that different than it was in the past? guest: it is definitely different. shop if i was a great deal. they raised 130 million dollars straight you compare that to last week, carl icahn put $100 million into lyft, the number two player in the ridesharing space. if you look at year to date in 2015, the amount of capital flowing into tech companies in the private landscape is eight times that of the public side. it gives you a sense of the scale of what is happening. pimm: i want to bring up airbnb and uber as examples of what you are saying. if someone like carl icahn is putting the same amount of money -- anpify raises individual is a public market. if you are a private company, do you want to stay private as long as possible because you pump up the evaluation so when and if

you do go public, the payday is even bigger? guest: that is part of it. when you look at what happened with ansi -- etsy -- theiraw an 88% jump in share price because there was so much fervor surrounding the company at the ipo. now just a month later, once they posted their first earnings report, they are trading very close to that ipo price. when you look at this as a private company and say, if i stay private and the capital is cheaper in the private markets because there is so much cash in there, why don't i stay private and i don't have to deal with any of this public outrage from and myinvestors, employees getting that sense of anxiety as they watch it crumble? staying private is easier for a lot of these companies. pimm: etsy goes to oopsie. shopifyess of emboldened other companies?

guest: it could be. generally speaking, a lot of these companies will start private trade it used to be you go public to grow. nowadays, the companies grow other private, and you have facebook going with $4 billion in revenue. nowadays the companies that seem to be going public are going public to get liquid. pimm: what about the pipeline that exists right now? we are going to see fitbit? guest: probably next month. you are seeing it pick up a little bit. univision, vizio. guest: we have an ipo watch list of 100 companies likely to go public. a number of these are so-called unicorns, valued at over $100 billion.

i think it will be a slower trickle that we have seen in the past. what to get your thoughts on a couple of these. we see the list of public companies, the idea fitbit -- there we are. univision -- which one of these stands out? of theunivision is one key companies that most people who are watching the ipo market are focused on univision is one of a slew of these private equity backed companies bought during the buyout boom that will come out. this will be bigger in size than a lot of the tech ones. it could be $1 billion. that joins other companies such as first data and sunguard that are all speculated to be doing ipos this year. the biggest ipos we are expecting for this year. there's no alibaba, but maybe these sponsor backed deals could

fill the void. pimm: my thanks to bloomberg's leslie picker and kayla of triton. americans hitting the road for memorial day weekend. we are about to get more bang for their buck. ♪

pimm: welcome back to the "bloomberg market day." some of theok at top stories across the terminal right now. the u.s. senate may have a final

vote on the trade bill as early as today. that would give president obama fast authority to negotiate trade agreement such as the one being considered in asia. democrats led the effort to block the bill yesterday, but that effort failed. america's largest food retailer wants to change the use of antibiotics in farm animals. walmart is telling its suppliers it wants fewer antibiotics used in the production of meat and eggs it sells. today farmers use the drugs not just in treatment of disease, but to fatten the animals. a new studies adjusts that men have an advantage over women when they are looking for their first job out of college. men are more confident they will be successful and make a good salary, and a study comes from job engine monster.com. it says 16% of college women were confident they would find a job compared with 27% of college men. those are your top stories at the moment.

this summer you need to expect more traffic jams and more crowds at airports, starting with this memorial day weekend. triple-a predicts this weekend will be the busiest memorial day travel period in 10 years. meanslook at what this for the tourism industry, i want he joinsin adam sachs, us via skype. why is this summer travel season going to be better for americans? adam: it's better for the travel industry. you look at the trend of the performance of the travel industry, whether you look at the hotel or aviation sector or theyecreation attractions, posted record levels of demand consecutively starting in 2011. it has only gotten better in each consecutive year. it has been a remarkable run. 2015 is seeing

continued momentum in demands for each of these sectors. it is being largely driven by domestic markets, travelers within the united states traveling domestically. what about overseas travel? m: it is showing its affect on outbound travel from the u.s. 8%. outbound travel is up year over which is extraordinarily strong relative to typical trance of growth -- trends of growth. it is having the reverse effect on inbound and we are seeing a marked slowdown of travel in the u.s. to keep markets in europe, and from south america and japan , because the u.s. is anywhere between 10% to 30% more expensive than it was a year ago. the perspective of an

american traveler. what about canada, mexico, and south america? adam: for an american traveler, all those places are more price attractive than they were a year ago. certainly more value compelling than they were a year ago. 10%, theian dollar riau off 30%. off 30%.off -- riyal look at aook a comparison of what it would cost a family of four to do a five-star vacation in france now versus 2009. and geto bring that up your thoughts on it. we're talking about $4000 for current estimates. if you go back to 2009, about $5,100. with thousand dollars between now and five years ago.

adam: i think we are seeing in 2015, it does take a while for currency shifts to then affect behavior because the booking window and the planning cycle -- this summer is when we are likely to see and a celebration of u.s. travelers going abroad, but also a marked deceleration marketsraction in some that typically sent significant volumes of visitors to the u.s. because it is significantly more expensive than it was a year ago. pimm: still ahead on the giganticg market day," mega-resort hotels. why investors are betting big on middle east development. ♪

pimm: for most of us, the memorial day weekend signals the beginning of summer. it's time to pull out the barbecue grill. what most of us are cooking, steaks. maybe they are being cooked all wrong. ome man behind amazingribs.c gives us a tutorial on the perfect steak. i am often heard to say there should be no rules in the kitchen or the bedroom. my name is meathead, and i run the world's most popular barbecue and grilling website. ngribs.com.d amazi anything you cooked indoors you can cook outdoors, only better. we are standing on my deck.

at this point in time i probably have 18 to 20 grills on hand. this is where we do experiments. we are constantly trying to cook outside the box. today i thought i would show you something unusual. i'm going to take a bushel basket full of grapevine and stuff it in. it's going to make a massive flame. when the flames die down, you have really hot coal. i'm going to put this flank steak directly over the coal and it so it gets a dark service, but not too much heat down into the center. what a lot of people don't understand is they think the hot air is what cooks the meat all the way through. but in fact, hot air inside your grill cooks only the outside of the meat. it is the outside of the meat

the cooks the inside of the meat. 106. i need more time in there. another important technique we preach is their monitors. meat is done when the thermometer says it is, not the clock. medium rare steak is 130 degrees approximately. good juicyet really medium rare flank steaks, and then we are going to cut those flank steaks across the grain and we will have hopefully very juicy, very tender meat. i love what i do. i hope it shows in the food. here, you sawu is this, what do you think? betty: i like my steak medium rare. but i am not a huge -- i leave the grilling to the guys. i will eads, but i could not eat that whole thing. that is crazy. pimm: i don't think that is a

single serving portion. betty: sometimes it is, pimm. if you go to steakhouses sometimes they have huge pieces of meat. vegas may lose its title is having the world's biggest hotels. there is a complex slated to open in saudi arabia in mecca, $3.5 billion resort complex. he will have 10,000 rooms, 70 and thists, helipads, is -- a lot of this is to cater to the people -- the pilgrimage to mecca, the harsh. betty: so we will be four-star and five-star rooms? -- it will be four-star and five-star rooms? pimm: this has got to be the big market for them right now. betty: huge market. there are four helipads at the complex. sheldon adelson owns the

venetian in vegas, pioneered this whole concept of hotel entertainment. i actually went to see sheldon adelson last year and stayed at the venetian. here is what i saw. it was so big i could not even fit my face in the photo. pimm: great picture of your forehead. betty: these guys measure themselves in certain ways for success. [laughter] ioc you -- i will see you in a few moments. let's go to julie hyman in the newsroom. julie: we are approaching the top of the hour. let's take a quick look at what is going on on his final day of the week going into the holiday weekend, we have seen volume

trending below where it typically is. we also had that inflation number this morning, consumer inflation rising the most in two years, stocks falling across the board. the s&p, dow, and nasdaq all pulling back. ,or today's option insight equity derivatives strategist at baycrest partners joins me. is a little slow going into the holiday. but what are we seeing in the options market as a result of that cpi numbert today? in other asset classes we were seeing a big reaction. the fix, we think it is going down towards the 10-handle mark as we approach the lowest volatility period of the year seasonally, then we saw a guy who sold -- we believe he sold some of the vix calls on may 14

come back today and by those calls back. that are the june 18 calls we saw go up at $.45. happen?hy would that our analysis is right, he sold those june 18 calls on may 14 around $.90. he could cover them today. $.45, that's a great trade. julie: let's talk about costco. season for a mixed the retailers. how do you think costco will do? guest: my trade and costco is bullish. i want to buy the june 148-152.5 call spread and pay $.85, $.90 for it. it is an expensive stock and it has not sold along with the rest

of the details sector which has really seen a lot of bearish pressure on the stocks, walmart, target, they have also old off with oil -- all sold off with oil coming back from the lows. the membership rates are going up. they are opening stores, and it is a very good lish long-term story. there might be some hiccups along the way. sales might take a hit as a result. julie: thank you so much. much more "bloomberg market day" after this break. ♪

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pimm: it is not :00 a.m. in san francisco, midnight in hong kong. -- 9:00 a.m. in san francisco. betty: they cost of living rises at a faster pace than expected

in april. we will take a look at another round of talks on the greek debt crisis. german finance minister says he is considering a parallel currency for greece. betty: we will look at how theme parks have become increasingly important for disney's business. ♪ pimm: good afternoon, i am pimm fox with betty liu. let's look at how the markets are trading, equity markets are lower. the dow is down by 48 points heading into the memorial day weekend, so volume is then. the s&p is o