betty: stocks rocked -- soccer rocked by a scandal. 14 people charged on blundering and racketeering. they took millions in bribes before choosing world cup host cities. pimm: greek prime minister alexis tsipras said his country is close to an agreement with creditors. the age of 90, former aig chief executive hank greenberg is waging one of wall street costs longest and most expensive wars for redemption -- wall street's longest and most expensive wars for redemption. we will look at his legacy. pimm: good afternoon. i'm pimm fox. betty: i'm betty liu. the u.s. charging international

marketingicials and of rampant corruption. media and marketing rights to games. about this case with a former federal prosecutor, now a partner with a law firm. guest: this case was built, importantly, critically, built on cooperating witnesses. in addition to unsealing the indictment, the criminal pleas of four individuals were released. at least one of them was cooperating with the government in building this case over the last several years. this is a big deal for fifa and for soccer. pimm: what would you liking it to? if you think back to a fraud/corruption case you have seen or were involved with the doj that there's any resemblance -- that bears any resemblance to what we've seen today? chris: it is like what we saw with the insider trading cases.

betty: in comparison to the -- pimm: raj rajaratnam? building a case over the long-term. we will have to look at whether or not there are cooperating witnesses recording telephone calls or other things. betty: what do you make of the fact that sepp blatter is nowhere to be seen, not indicted , not at the press conference today? julie: he is good at staying out of the spotlight. i don't think he will be able to do that for long. fifa has released a statement with characteristic hubris that the world cup will continue to be held in qatar and russia. making that statement straight out of the box, couldn't one make the argument, well, i guess the beat goes on. russia, many people

said when those places were named, this stinks -- not, yes, still going to be there, 100 degree weather. guest: you'd like to see some contrition from fifa. but sepp blatter being there still means nothing will change. we talked about the nfl and roger goodell. if roger goodell were to go, the 31 owners would still be in charge, the corruption would be the same. same thing with fifa and sepp blatter. pimm: what people are most concerned about, soccer fans, is vote-rigging. whether the place is corrupt to the core, such that you get a world cup in a place like qatar. how narrow by definition, by virtue of statute, does the doj's investigation have to be? or how broad could it be? chris: it could be very broad. there is some jurisdictional scope to the u.s., there could be a case alleging corruption and bribery.

jurisdiction can be established as something as simple as using an american bank through which the funds were funneled. that's part of the allegation here. this could be very wide sweeping. to your point about where this investigation may go, if you are a prosecutor and you have you,ted 14 individuals, to that is 14 opportunities to build a bigger case, to go to the next level, and i think that's probably what they are thinking about now. pimm: that was chris garcia, former federal prosecutor. the thing about this whole fifa scandal is the money that fifa is mainly supposed to raise is supposed to go to develop the game in developing nations, you soccer programs. soccerem -- youth programs. they seem to be the victims. betty: absolutely. you wonder what is the next shoe to drop. wind --tunities to widen the investigation and find out more as to what has happened. when i read this in the morning -- pimm: someone turning states evidence -- state's evidence.

betty: when i read this this morning, hearing about corruption -- this has been an indebted problem here at fifa for years. pimm: not a shock or surprise if you've been reading "bloomberg businessweek." it was a previous cover story. very well documented. betty: very well. thes take a look at how markets are trading at the moment. equity markets, we are seeing the best rally we've seen in two weeks here in equities. the s&p rebounding from the lows we saw yesterday, up 0.7 percent. over 100 points right now. in the oil markets, you are seeing oil trade almost near a one-month low for brent. crude is down 1.4%. nymex is a little bit slower. brent is trading on the news out from iraq that they want to increase their exports by 26%. pimm: let's take a look at the

bond market. you see a little bit of movement. the 30-year, 2.9 percent. the 10 year yield is 2.16. let's see the strength of the u.s. dollar. 1.2380.nese yen, the pound sterling, basically unchanged. let's get to some of the top stories crossing the bloomberg terminal at this hour. the bailout talks with greece are said to be going nowhere. bloomberg news is now reporting that greece will probably miss this week's deadline for a deal with creditors. four international officials told bloomberg that greece is not close to reaching an agreement with the international monetary fund or the european commission. greece needs to get more bailout money so it can repay and imf loan that is due next month. an imf loan that is due next month. bank of america may make more cuts to its trading unit.

there was a 20% drop in the fourth quarter. bank of america chief executive brian moynihan said there may be more expense cuts. brian moynihan: if the environment stays as flattish, less volatility, we will have to keep working the expense base down the we've worked it down to one level, decent returns. we've got to probably work it down again. said brian moynihan also resolving all the legal cases involving mortgages was the other day's biggest economist went -- was be a they's biggest a'swas be of a -- was bof biggest accomplishment. shares our down. different story at tiffany and co. shares are up more than 11%. new products helping offset the effects of a stronger dollar

overseas. betty: regulators have cleared the way for a huge takeover in the cigarette industry. antitrust officials have approved reynolds american's $27 billion purchase of lorillard. reynolds will have to sell four of their brands to imperial tobacco. recode has been sold. no terms were announced. formerwas created by "wall street journal" reporter's, who had built up -- reporters who had built up a following. the republican presidential field gets a little more crowded today. former pennsylvania senator rick santorum is set to announce his white house bid. he finished second in the race for the 2012 nomination. he would be the seventh declared republican candidate. after theks have gone

irs, but they didn't have to hack into the system to do some damage. they used the irs website to steal information on more than 100,000 taxpayers. they taxd fact -- returns and got up to $50 million in refunds. fixed thethey have website that allowed the access thers says they have fixed website that allowed the hackers access. about 40,000 more than second-place morgan stanley. london banker bonuses have been squeezed the last couple of years. the eu has capped variable pay at two times the salary. bill gross admits he did a poor on his- a poor job advice, selling short the tenure german bund in april -- the 10-year german bund in april. the fund lost 2.5%.

againstot that all out -- did not bet all out against the debt. the new york rangers stayed alive, beating the tampa bay lightning 7-3. game seven is friday night at madison square garden. those are your top stories. pimm: that's coming down to the wire. that's a lot of people very excited. betty: are you a big hockey fan? pimm: no. i live by proxy. betty: including our 40 -- our floor manager. stocks.take a look at pimm: charter's bid for time a billionaireuts back at the center of the tv cable industry. we will take a look at what the deal means for his sprawling empire. betty: hank greenberg won't give up. we will tell you about his fight

to build a second insurance empire. more"bloomberg market day" ahead. ♪

pimm: welcome back to the"bloomberg market day." i'm pimm fox here with betty liu. betty: let's go straight to bloomberg's julie hyman, who has a check on how the airlines are doing entering a bear market. julie: today they have been bouncing back. if you look at where the airlines are trading today, some of the individual movers, ual is up 3%. jetblue is up almost 3%. american airlines bouncing back by about 1%. this comes on the heels of a

long decline, as betty pointed out. take a look at the bloomberg united states airline index. actually, it looks like we don't have that right now. from its peak in late january, 2006, through yesterday, it fell -- in late january, through yesterday, a big decline. what was happening, in part, higher.ces had been more importantly, there is a perception about capacity. for years, the airlines have been more disciplined about capacity. they have not been growing their fleets by as much. therefore, they have more pricing power. however, this year, there is a perception that capacity will grow more meaningfully. for the full-service carriers, we will see a jump to 9% capacity growth from 3% capacity growth last year. this big decline we've seen in airline stocks, who might have been hit by that? we had a lot of prominent hedge fund managers talk up the

airlines in recent years. david sold out of his american airlines stake in the first quarter according to filings. according to filings, he still owns shares of ual, delta, and jetblue. stake inros cut his american, but he still owns american and ual. leon cooperman owns ual as well. perhaps these guys are betting that this big decline we have seen will not be sustained. in the meantime, they have potentially felt some pain as we've seen these stocks tumble. pimm: thank you very much, julie hyman. let's take a look at some of the top stories crossing the terminal at this hour. former british prime in his or tony blair is leaving his post as the international community's desk prime minister tony blair -- former british prime minister tony blair is leaving his post as the international community's

envoy to the middle east. a formal announcement is expected later today. he was appointed to the post in 2007. spain's government is calling for an overhaul of the common economic policy, according to a spanish newspaper, which says madrid wants the ecb to play a greater role in the beauty -- in avoiding future crises. the spanish government is said to be urging greater labor mobility as well as completion of a banking unit. betty: some trying moments last week aboard a singaporean airlines jet. 30 had to go0 -- a-3 while cruising at 39,000 feet on route to shanghai from singapore. engine returned almost immediately. the pilots had to descend to restore normal operation to the second engine. with 182aft, passengers and 12 crew, lost about 13,000 feet before power returned. it landed safely in shanghai.

that's a look at some of your top stories this hour. i read that story this morning. if you were on that airplane, would you have even known the power went out? pimm: i think you would know you descended 13,000 feet. thank goodness for the capability and professionalism of the pilot. betty: and it's not the first time it has happened, where a plane has lost power midflight. back to the other hot story happening right now, the fifa corruption scandal. today, the u.s. attorney general indebted five corporate executives and nine officials from the powerful international organization -- indicted five corporate executives and nine officials from the powerful international organization. pimm: how is fifa supposed to work question mark david: it is a nonprofit -- how is fifa supposed to work? david: it is a nonprofit. in 1904.unded

it does everything from overseeing games, rules of the game, where the world cup is going to be, tv rights, merchandise rights, all of that. a very powerful consolidated organization in switzerland. pimm: where is this money supposed to go after they built all of the headquarter buildings, the various soccer facilities? where does this money go? david: they say 70% of the money they take in goes back to the development of soccer around the world. pimm: development of soccer around the world -- that is euphemism for something. david: countries that are members of the organization are eligible for about $50,000 on the low end, up to $5 million. there is a lot of money to go around. when you look at -- betty: you mentioned different ways that it generates revenue. as we were talking about, this is a not-for-profit. where does it generate most of its revenues? david: from tv and marketing. 43% is from tv, televising

matches around the world. marketing, 29%. the rest is a little under 28%. what's really phenomenal is how important the world cup is to fifa. 90% of its revenue comes from the world cup alone. we are talking about many billions of dollars it will make from that every four years. betty: i was just going to say, sepp blatter, the president of fifa, he is not a terribly well-liked figure, especially at this moment. there was a press conference in zürich. i want to play for folks who don't know who he is what the response -- we don't have that. essentially, one of the reporters had asked, how do you like being called a dictator? and he skirted the answer. he said, i've been called many things. my clock still runs as the -- still runs. pimm: he's been up -- david: he has been president since 1998. he is up for reelection yet again. you wonder what a guy like that makes. he makes a lot of money.

that's kind of a guarantee. but compensation overall within the organization has gone up. it's now about $80 million per year. pimm: in the recent "bloomberg businessweek" issue, the fifa cover, it details things, for example, the organization was supposed to give money to, let's and they were supposed to rebuild not only the building, but the infrastructure to allow children to play the game. is this the kind of thing that fifa trumpets, or is this something that, maybe it happens, maybe it doesn't? because the money goes to building lavish headquarters? david: they do trumpet it. the way the organization is structured, every country has one vote. smaller countries can wield tremendous amount of power. it can be analogous to a -- to the way the u.s. senate works.

a senator from a small state can wield as much power as a senator from a larger state. pimm: thank you very much for explaining how fifa works. still ahead, billionaire john malone is charter communications's largest shareholder. look ate will take a the sprawling empire. ♪

betty: this is the"bloomberg market day." i'm betty liu here with pimm fox. pimm: charter communications says it will buy time warner cable. $195.71 per share. charter lost out to comcast in the fight to acquire time warner cable. betty: with comcast pulling its bid to two government opposition, charter got a second chance.

we have this report on the biggest winner in this massive deal. charter: communications' $55 billion bid for time warner cable establishes charter, new charter, as the combined company will called, -- will be called, as the company's second-largest cable business. the deal does something else, it john malone,coon charter's largest shareholder, right back into the thick of things. probably the most important person in media that people have never heard of. hised "darth vader" for dealmaking prowess, he has been at or near the center of almost every major media transaction for decades. he rose to prominence as the ceo of telecommunications international, which was at one time the largest cable operator in the u.s. it would later be sold to you -- to at&t.

he would hold shares -- stakes gate, barnes &s noble, virgin media, and evite. in addition to media companies, he also owned the atlanta braves and two point 2 million acres of land in the u.s., making him the country's -- and 2.2 million acres of land in the u.s., making him the country's largest private landowner. the time warner cable deal, he is returning to his home market. at the age of 74, you might think such a transaction would be the capstone to his career, but many people who have been watching him over the years know that he is probably just getting started. betty: i love that, "darth vade r." he must love that, too. charlie for dish network, who is basically one of the few, if not the only, who is

flying solo right now in this hope -- this whole television market. he tried for sprint and mobile -- t-mobile, but couldn't get those. who will he now join up with next? does he need to, in order to grow? pimm: and how valuable a satellite broadcaster really is in this day and age. i will leave it in your capable hands. betty: much more ahead. coming up in the next half hour of the"bloomberg market day," we will take you live to montréal's festival, where the top advertising minds mix art with science. ♪

betty: kind of a hazy day in new york. welcome back to the bloomberg market day.

let's take a look at our top stories this hour. no promise into greek bailout talks. greece will likely miss the deadline for a deal with creditors. four international officials said reese is not close to reaching an agreement with the imf and european commission. greece needs more ballot funds so it can repay an imf loan . bank of america may begin to make more cuts in its trading unit. speaking at the sanford bernstein conference today, brian moynihan said there may be more expense cuts. staysthe environment flat, less volatility, we will have to work on getting that expense down. we have to work it down again over the next couple of years if the business stays where it is. betty: he also said resolving all of the mortgage cases was

their biggest accomplishment. s areel kors' share plunging, down 23% now. they forecast earnings that fell short of estimates, but it is a different story at tiffany's. shares are up 12%. first-quarter earnings beat wall street estimates. politics, the republican presidential field gets more crowded today. rick santorum is set to announce his white house bid. he finished second in the race in the 2012 nomination. is tops in london, at least when it comes to bonuses. they paid london bankers an bonuses,f $299,000 in $40,000 more than second-place morgan stanley. bankers have been squeezed in

the last few years with the eu cap variable pay at two times salary. much more ahead in the next half hour. we will take a closer look at china's ipo boom, minting a new class of millionaires. mcdonald's is making a big change in its reporting strategy. why it will stop releasing monthly same-store sales numbers. and at the age of 90 years old, hank greenberg waging when wall street longest and most expensive wars for redemption. some of the best creative and commercial lines are coming together today in canada, in montreal. the international conference known as c2 is well underway with marquee names like chelsea clinton and andre agassi. but what exactly is this festival about? >> how about a strategy meeting

suspended in the air, and , whereewed through fog you cannot see the person asking questions. whichassive birds nest holds a secret we are not allowed to tell you about. conference.c2 the goal is to join some of the worlds top companies with the creators in the world to make a carnival atmosphere. >> the idea is to mix creativity and commerce. it is held here at the arsenal, a former shipyard. now it is one of montreal's newest contemporary art spaces. 400,000 people are expected to come. it costs almost $4000 to attend all three days. professionals say it pays to play.

this year's conference is sold executives take a break from the board room for the playground. betty: not boring at all. he is in the same spot as when we first saw him. you have been rubbing elbows with some of the headliners there at c2 including alec baldwin. what did you talk about? you know, i had a good sitdown interview with him for about 10 minutes. one of the biggest things was about consolidation and change in the media industry. about verizonking and at&t, charter and time warner. years, wee next 15 may see one less television network, movie studio, and potentially a few fewer news programs. he did not want to name names but i'm sure bloomberg was not

among them. he also talked about change. the late-night comedy seachange happening with the end of letterman, leno, john stuart -- jon stewart signing off. >> the question is will though shows survive 15 years from now? willate-night audience, it survive the people stream it, watch it after the fact on their devices. i don't know what the projections are for how many people will be watching tv at 11:30 p.m. and 12:00 at night who are not in college. those audiences have gone younger. i am asleep by 10:30 p.m. hopefully. >> imo 11:00. 11:00. >> i think of those shows, their audiences are shifting.

i think letterman left because he was an older guy. betty: we will check in with you throughout the day, thank you. baldwin basically saying that david letterman got old. still ahead, how to become an airline millionaire. chinese style. ♪

betty: welcome back to the

bloomberg market day. i'm betty liu. the u.s. is charging international soccer officials and others with corruption that is systemic, rapid, and deep rooted. have mark barton live at fifa headquarters in zurich. actually, we are going to get to in a few moments. one of the big questions is how this will affect the selection of future host cities and what atar and russia,ta who will be the host cities in 2018 and 2022. a quick check on how the markets are trading. in the u.s., you have equity markets on one of her best rallies in two weeks. the s&p is up by .6%. the dow is higher by 106 points. oil prices trading at a near

one-month low. brent is down 1.6%. iraq willut that increase exports by over 27%. that is putting pressure on prices. staying on equities, let's go over to the european markets. here is ryan chilcote from london. >> equity markets, as you can see, it is a land mass of green. butce is on fire, up 3.5%, 2% ftse is also of more than . of course, greece tends to be very volatile, but nonetheless, a strong performance. cac was up. we are also watching the corporate space, in particular the airline industry. ba. the parent company of

they have gotten permission from the government of ireland to buy their stake in that country. shares in both companies are up as a result. the frenchtice, telecom company that wanted to buy time warner. the founder of the company today said they recently not prepared to do that. they were down in trading but pulled back at the last minute on the back of a broad rally here in the equities market. finally, and quickly, i want to show you the currencies. this is a dollar strength story. almost the same story with the euro. crashed with the dollar strength, and then went on a little bit of a rally because there is some optimism today that maybe the greeks will be able to pull off a deal with the creditors. betty: in asia, a chinese ipo

takes off in style. airlines is minting a new class of millionaires. jump to the maximum of 44% on its first day of trading in shanghai. the public offering has made millionaires out of the founding family, who still holds 79% of the airline. back in the 1990's, three brothers from a poor fishing village set up juneyao, who sells yogurt and other products. back in the u.s., on the markets, some of the big movers, i want to get to julie hyman. tiffany's is soaring. julie: the best performer in the s&p 500.

the company itself said profit would fall 30% this quarter but only fell 17%. obviously, that was better than estimates. it was hit by currency. however, it introduced a lot of new products which helped the bottom line. shares were up by 12%. different story for michael cores. the bloom is off the rose here. the stock is down 23% even though profit was up year-over-year. the company's forecast coming in below estimates. coach and fossil were also pulled down. i want to look inside the bloomberg terminal to take a look in more detail at coach and kors. initially, coach came blazing out of the gate after its ipo and surpassed coach in terms of cache in the market and popularity. lastyou can see it peaked year and has started to come

down. it has copied some of the mistakes from the coach playbook, according to analysts, including many stores and outlets, which in the mind of son, have diminished the brand. also look at the cop sales numbers. increases for coach in the green. pretty consistently until the rsst recent quarter, when ko cop sales came down 5%. really a diverted story but now starting to falter in a significant way. finally, a quick check on another pair of movers. lorillard and reynolds american. the two companies are merging. lorillard said it has gotten ftc approval and it looks like the deal could close in june. both of those stocks are trading higher. betty: thank you, julie. now a look at our top story crossing the bloomberg terminal.

ebay has a new strategy to attract advertisers. ads only will pay for if they lead to actual sales. sellers will be able to specify what percent of a sales price they will pay in order to run an ad. the higher the price, the more prominent that ad will be. planet fitness is planning an ipo, although we don't know how much they want. secretpany's filing is because it has less than a billion dollars in revenue. they offer gym memberships o for as cheap as $10 a month. programew go drive opportunities for on-demand, share driving. bmw and mercedes are also developing programs which are for car rentals by the minute. mcdonald's is not loving sales numbers.

the fast food giant decided it would no longer issue monthly sales totals after the june report. u.s. sales have fallen for six straight quarters. for investors, this is a key tracker of their ongoing turnaround efforts. for the market, it's a barometer of the american consumer, so why is the company getting more secretive in its turnaround plan? ink crumpton will be with me the next hour. as it has been noted, this is not the first time a company in a turnaround mode has decided not to put out sales numbers month by month. mark: no it is not. jack russo at edward jones and spoke to us. he says the monthly reporting that itself to more volatility and investors focus on short-term issues. he continued, it is a good move. it is long overdue. a lot of people say it tends to skew the stock price up and down and people lose their focus on what mcdonald's really needs to be doing. when they cut these sales

reports, i'm curious how the reaction will be from shareholders. what will they say, what information do they feel they are getting are not getting by these monthly sales reports? you noted some of the other companies. chipotle is doing this. betty: starbucks when they first started, yum! brands. mcdonald's is always the beacon for the fast food industry. so when they decide not to do this, it will be interesting to see if more follow. smaller companies may say, if mcdonald's does not do it, why should i? said, it is one of the reasons why the stock has been volatile. what do we have coming up in the next hour? guests will be camden fine of the community bankers. there have been lots of back and forth on capitol hill because dodd-frank has, as you know,

raised so much ire from original opponents of the legislation, or those getting into it now, and immunity bankers complain. they say some of the parts of they are probably better applicable to large banks than small banks and that they are not using a level playing it is a regulatory burden for the smaller community banks. we will talk about that and the fdic report coming out today that said community banks quarter profits were up pretty high. they did pretty well. betty: so the numbers do not really underscore that first point. counterintuitive, but we did pretty well. betty: you will find out what is going on. mark: and the fifa story. betty: much more ahead here. like hankno fury

greenberg. at 90 years old, he is still fighting the u.s. government, and he is still angry. ♪

betty: welcome back to the bloomberg market day. hank greenberg is 90 years old and he is ticked at the government, said, and definitely reporters. greenberg is suing the federal government over the 2000 and a lot of aig who he claims cheated investors out of $23 billion. we recently visited with hank greenberg at his offices which are not too far away from our offices.

you and i have been in his offices before. for you, it was not a comfortable situation. >> i was intimidated. this interview is already going much better. i could never live up to hank greenberg's reputation. tell me what happened. >> the idea of the peace which is out today on the terminal is about this man who is 90 years old. rather than kicking back and fightinglife, he is this multipronged battle. he is fighting to build up a new company because aig was taken away from him. he is fighting eliot spitzer, our former governor, who he is suing. he is fighting the new york attorney general's case, who accuses him of being in charge of sham transactions. the most interesting part, i think, is that he is suing the

federal government. his attitude was at the bailout was unfair, not in the way that occupy wall street protesters that taxpayer money was supporting financial organizations. unfair to him, diluting his stake in aig. betty: i know him pretty well , ande can be very spicy vitriolic with people he does not like. you bring up eliot spitzer, and he will go off on what happened. he did so in his book. remember, this is a decorated war veteran. he has probably seen more historical events than many of then in the thick of them, and you recount that in your story. i actually really recommend his book. sees thisut how he

incredible life that he has lived. he out fox's mikael gorbachev, ran who worky from i for him. i found the guy that worked for him. he is about 90 years old and he alsohank was amazing but rude and scary to work for. even a man that he rescued from an iranian jail, says that he is scary. but he also praised greenberg. it is possible for the people around him to be aware of how ferocious he can be, while also saying this guy drive is what is responsible for what is building one of the biggest insurance companies in history. betty: one of the biggest companies in the world before it was taken down. on the lawsuit, what is

interesting, his fighting spirit has actually turned around people's ideas, views about whether he can win the case. he was with us just a few weeks ago and this is what he said about the case. >> i went down for the closing arguments. i could not be present in the courtroom because i was supposed to be a witness called by the government, but they did not call me. so i was not permitted to go. i went down for the closing argument. i am pleased with how that went. i cannot say anything more. the judge is making his decision. it would be inappropriate to talk about that. betty: surprisingly, the judge seemed to be sympathetic to some of the points that he made. that youootage proves are more successful interviewer. i did not get him to talk almost at all about the case. betty: well, he was on air. listen, i think there is no

way to talk about everything hank greenberg has been through. you have to mention the fact that aig financial products were started under his watch and probably would not have gotten as massive without him. start, butig, he did you have to talk about other thatgs, like the fact everyone laughed at him when he city that he was going to sue the government. betty: we will see, the decision will be coming. great story. much more ahead, including former treasury secretary larry summers joining us in a moment. ♪

is 10:00 a.m. san francisco, 1:00 in new york, and 1:00 in hong kong. mark: soccer is rocked by a

corruption scandal. arefficials at fifa indicted on charges of money laundering and racketeering. they say they took millions in grantingfore hosting -- world cup cities. betty: we will speak to the ceo of airware. scrippsd we look at the national spelling bee as they get ready to crown a new champion. betty: good afternoon. mark: let's begin with a look at the markets at this moment. u.s. stocks rebounding from the biggest drop in two weeks, investors optimistic that greece has made progress in talks with his creditors. s&p 500 is up about