latest details with fifa. scarlet: you've heard about elon musk. what about his brother? mark: big media m&a continues. john malone is back with time warner cable. why is he still be on men out -- maodd man out? good afternoon. i'm mark crumpton, here with scarlet fu. stocks recovering from yesterday's selloff. indexes opened higher and have been building momentum throughout the session. nine out of 10 industry groups are gaining. take a look at treasuries, getting back some of yesterday's gains. lower price means higher yield. -- 10 year recovering

from a one-week low. a check of the dollar shows it is extending its gains, just barely. higher for the first time in nine days. this is a stronger trend of late. mark: let's look at the top stories where following at this hour. the bailout talks with greece are said to be going nowhere. miss thell probably deadline for a deal with creditors. for international officials told bloomberg that greece is not close to reaching an agreement with the international monetary fund and the european commission. last hour, we spoke to the former u.s. treasury secretary, larry summers. sides andirit on both looking into the real of this -- abyss for greece and europe

if this does not work out. i'm hopeful that common ground will be found. needs to get more bailout funds so it can repay an imf loan that is due next month. scarlet: british airways has won over the irish government with its plan to buy aer lingus. they will have to convince the biggest shareholder. of that owns30% 30% of aer lingus. they say they're open to talks of a formal proposal is made. their own attempt to die aer lingus have been rejected by religious. lingus.y aer an average of $299,000 in bonuses. that's about 40,000 more than the second-place morgan stanley. london makers have seen their businesses -- bonuses and squeezed.

bill gross called the short well-timed but not well executed. gross advised selling short the --ure german wound and april in april. his bond fund lost 2.5% in that period as he wagered that they would trade in a narrow range instead of bending all-out against the debt. scarlet: the obama administration is extending protection for waterways. a republican led congress. the protections come as the epa and u.s. issued final regulations on which rivers, streams and wetlands are waters of the u.s. and therefore subject to federal oversight under the clean water act. mark: the republican presidential field gets a bit

more credit today. rick santorum is set to announce his white house did. he finished second in the race for the parties 2012 nomination. he would be the seventh declared republican candidate. scarlet: the maker of spam goes on a health kick. hormel foods is buying a producer of natural and organic meats, applegate farms. changel says it will not the message or use of all-natural ingredient. will no longers put out monthly sales figures. they say they will announce june ande sales for then will stop providing the data. because he wasn't sales have fallen for six straight quarters. sales have fallen for six straight quarters. scarlet: 500 feet of cable have been swiped and that has caused delays for hundreds of thousands of commuters traveling through queens. the thieves will sell the power

cable for scrap. next halfng up in the hour, malaysia airlines may lay off thousands of workers. this will have some serious implications as malaysia air looks to be a regional carrier. scarlet: investing in the future of asia's biggest gambling hub. an inside look at mccalla's biggest casino. casino.'s biggest new let's go to julie hyman at the breaking news desk. more on the fifa scandal story. julie: i wanted to bring attention to something we often in technology -- broad, was trading higher. it has spiked higher still.

the company is said to be in advanced talks to be bought by a singaporean chipmaker. they had already risen -- there was a volatility halt and then the shares resumed trading higher than that. 15% of. -- up 15%. we will keep you posted and let you know if there are any other headlines related to that. mark: thank you. now, fifa. scarlet: corruption at fifa. garcia. with chris this case was built on cooperating witnesses. in addition to the indictment today, the criminal pleas of the

criminal pleas of four individuals were also released. at least one of them was cooperating with the government, this case over the last several years. this is a big deal for fifa and for soccer. >> think back to a at the dojption case that bears any resemblance to what they have announced today. ways, this type of long-term investigation is something we saw with the insider-trading cases. it's a similar type of approach. using white-collar tactics like living witnesses in order to build a case over the long-term. what we will have to look for is to see whether or not there are cooperating witnesses. >> what do you make of the fact he is not at the press conference today? >> it's not particularly

surprising. at staying out of the spotlight when the heat is on. i don't think he will be able to do that for very long. fifa has already 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, guess the beat goes on. wouldn't one think that maybe they should have said were looking into this? >> you would like to see some contrition from fifa. nothing really will change. if roger goodell were to go, the 31 owners would still be in charge and the corruption would still be the same. same thing with fifa. people are most

concerned about, soccer fans, is vote rigging. by narrow by definition virtue of statute does the doj's investigation have to be? or how broad could it be? >> it can be very broad. as long as there are some jurisdictionl -- can be established as something as simple as using an american bank through which the funds were funneled and that is part of the allegation here. these could be wide sweeping. if you are a prosecutor and you've indicted 14 individuals, to you, that's 14 opportunities to build a bigger case. that's what they are thinking about now. friday, he and his a position to be renamed head honcho yet again.

how massive this investigation is, wouldn't one make the argument, maybe we ?hould post on this for a bit >> that would be a prudent thing to do. deafhas been a little tone on these issues. say weie: fifa could don't care what businessweek says. but this, how can they nor it? -- ignore it? >> there is a big difference between the nfl and fifa. the nfl caves to public pressure. fifa is a dictatorship. they've done whatever it's wanted -- we've seen thousands of migrant deaths. that you will see more legal pressure and sponsorship pressure, they are still standing strong. erik: at the white-collar

defense firms -- scarlet: that was chris garcia. it is a mess. --k: i jumped the gun before this is one of those things that has so many tentacles. the question that she pointed teflon.seems to be scarlet: there are so many people invested in his success. mark: and countries, to make. scarlet: who knows what kind of skeletons come out of the closet? mark: we will continue to follow that. , one of the country's biggest government linked companies plans a transformation. ♪

mark: welcome back to bloomberg market day. i'm mark crumpton here with scarlet fu. scarlet: we will get straight to julie hyman with a look at how the airlines are faring today. down, but that has been the longer term trend against her day, we saw a plunge in the airline shares. today, they're coming back. jetblue, they have been gaining steam. they have been going down. take a look at the longer-term chart. you can see that this group peaked in 2001.

that was at the end of january. since then, it has been up and down, but mostly down. yesterday, this index and heard a decline of 20%. a lot of hedge fund managers happen been getting into airlines in the past few years. capacitye been discipline, airlines not expanding their fleets by much. that has given them more pricing power. tepper who exited his american airlines stake in the first quarter doesn't still hold delta and ual and jetblue. does still hold alaska and ual and some american airlines as well and leon cooperman holds ual as well. the prospect for the airlines might be changing because the view on capacity is changing. last year, we saw a 3% increase

in capacity. this year, that number could go up to 9%. these guys are staying in. we will see of these airlines can rebound beyond what we are seeing in today's session. scarlet: great context with the big investors. the big names invested in these companies. mark: let's take a look at the top stories crossing the terminal. regulators have cleared the way for a huge takeover in the cigarette industry. antitrust officials have approved the $27 billion purchase. they will have to sell for brands, including winston and salem to the british company imperial tobacco. scarlet: portis offering drivers d is offering drivers -- others include bmw mercedes.

go into ahad to dissent to restore power to its engines after they both malfunctioned in bad weather. the plane was cruising at 39,000 feet en route to shanghai from singapore. one engine returned almost immediately but the pilots had to descend to restore normal operation to the second engine. the aircraft had wondered 82 passengers and 12 crew members aboard. -- 182 passengers and 12 crew members aboard. absolutely frightening. mark: can't even imagine that. scarlet: employees of malaysia airlines are on edge because any day now, they will learn their fate. forward with aes massive overhaul that could eliminate a third of its workforce. 6000-8000 employees could be affected in this overhaul.

they are struggling to regain consumer confidence because of the tragedies of the 370 fight and 17 flight. it seems like a last-ditch effort to remake this airline. scarlet: they wanted to become more of a regional player. they were already in a financial mess before last year. this is an effort to preserve the airline but also be realistic about what they can encompass. right now, they have too much staff for that. thirds saying they will be offered jobs with new conditions. not all of them will be shown the door. what those conditions are, we don't know that information. scarlet: they are supposed to find out sometime this week. the one person who will not be losing his job is christoph mueller. he used to be the ceo of aer lingus.

he has been put in charge of which issition period taking longer than people had anticipated. , one big bet,p macau's firstned new project in three years. ♪

mark: welcome back. revenue is macau's slumping, hotel and casino operators are investing in the future of asia's biggest gambling hub. unwrappedertainment phase two of its planned $13 billion macau investment today. bloomberg was given a poor of the new rates carlton -- ritz-carlton. -- given a tour. >> galaxy prepayment is hoping for a repeat performance as it unveils space two of its resort casino. marian has partnered in the development, building asia's biggest jw marriott and ritz-carlton hotel. develops from gaming

hub to world destination. , our customeray will move elsewhere. launch are expected to studio city later the seer with wind, sand and mgm -- wynn sand and mgm. the ritz-carlton says demand is already strong. as we have a new product, we will be displacing some business the next 12 months, we are looking at and 89-90 1% occupancy. occupancy.

overnight, visitors and spend about five times more than daytrippers. it's part of the rationale behind the world's only all ritz-carlton. >> because you have the luxury customer, they stay a few more days. people like to stay 2-3 days. we are looking at a longer stay. we want to make sure they have all the comfort when they come to macau. interesting enough, these all of our facility. -- they use all of our facility. >> with billions of dollars invested, macau's casino industry is counting on it. scarlet: they are trying to appeal to families and tourists away from the big whales.

mark: part of the strategy seems to be the non-casino type. it's not everyone going in there and putting in quarters. scarlet: make it into a family destination, a fun place with a roller coaster and other activities beyond playing slap blackjack. they have their gigantic roller coaster. mark: there is already disneyland and disney world. it already looks like disneyland and disney world. they have a couple casinos like circus circus. that would appeal to my nine-year-old son.

mark: what happens in vegas -- julie: scarlet: you are off now. what will we talk about tomorrow? the rangers again. we get the e-mails -- the rangers again? we are both rangers fans. i've been a fan since i was a kid. if you are a fan of tampa, sorry. scarlet: we are driving our viewers crazy, including our producer as well. we have much more coming up. you know elon musk. what about his brother? ♪

[beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place

♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight [baseball crowd noise] ♪ ♪ [x1 chime] ♪ ♪ [crowd cheers] oh! i can't believe it! [cheering] hi, grandma! ♪

scarlet: welcome back to the bloomberg market day. we have breaking news on fifa. olivia sterns is at the breaking news desk. olivia: at last, we hear from the man of the hour, the head of fifa has finally put out a statement 24 hours after these arrests in switzerland. is a difficultis time for football, the fans and for fifa as an organization to her have seen no mention of the laying friday's people -- friday's fifa election. he is calling the event unfortunate, trying to make a big deal out of fifa's own cooperation. he says while there were be many who are frustrated with the he says thege -- investigation was set in motion when fifa themselves some of the

day ago ca to the swiss authorities -- a dossier to the swiss authorities. the independent ethics committee took "what action to ban those individuals named by the authorities from any football related activities at the national and international level." these actions are on top of similar steps that fifa has taken over the past year, he added. whatusly, no mention of they are calling for, a postponement of the presidential election. everybody is wondering now if theywill have to -- if

will face pressure from corporate sponsors or other parties to postpone these elections. that is the latest. the associated press reporting that trinidad has issued an arrest warrant for the ex-president, jack warner. let's get to the other stories making headlines at this hour. spain's government is calling for an overhaul -- that's according to a spanish newspaper which says madrid wants to play a greater role in avoiding future crises. the spanish government is urging greater labor mobility. tony blair leaving his post according to officials familiar with the regional work. a formal announcement is expected later today.

the quartet appointed blair back in 2007 with the goal of helping develop the palestinian economy and institutions. , it is a commodity that has caused delays. someone has been stealing the power cables. the national oceanic and atmospheric and missed ration announcing an early prediction for storm season. continues.&a where is dish network? all of that is coming up later on in the hour. business leaders from all over the world are attending the sea to montreal conference this week. three day event inspiring executives to think creatively. standing by with kimbal musk.

>> there is not one, not to, but three musk brothers and sisters. right here, we have kimbal musk. there was always a spark of entrepreneurship. where did that come from? kimbal: all of our family members are on super doors in some form. i have to give credit to our grandfather who was one of these explorers who explored random parts of africa for 20-30 years. that hein the plane used for exploring. he went all the way. mother's generation and father's generation and now mine. about takingthing that entrepreneurship energy and coming to north america, the land of opportunity. we have been blessed to be able to be here and do great stuff. 's one of the themes for c2

reinvention. 2010, you broke your neck and almost died. after that, you reinvent yourself. kimbal: i've always had this incredibly -- i've been very good about doing technology. yet, my passion was food. when i had my accident in 2010, it was a reinvention of myself. i won't be happy unless i do food. i decided i will figure it out. since then, we now served one million people a year in our restaurants and work with 225 schools across the country. sciencebe teaching while they learn how to grow food. it could not be a better marriage of my passions. >> so many americans are fat. what needs to be done to knit

this in the bud? there has been this intense focus on reducing the price of carbohydrates. , 2015 is a revolution going on in terms of what is needed and what change is happening. it's the most exciting time to be improved food in 100 years. noonald's just announced antibiotics and chickens. yesterday, taco bell and pizza hut announced no more artificial ingredients. we will get back to a place where we know what we are eating. it doesn't always have to be healthy, but to not know what we are eating has been a travesty and i really excited about the future. >> good news that taking taco bell is taking preserve is out. belldo you say to taco upping the ante?

kimbal: we love competition. we believe in getting the price down. to food.a pricective chipotle is an incredible value for the money. >> space x -- we just got news that -- to thise now certified space goal is to make exploration affordable. we will be able to take our military dollars and stretch them t. i don't want to say specifically because the missions will vary, 1/5sometimes it's as low as

-- quite a big difference in price. it's a fundamentally different price structure. america should feel excited about it. >> thank you very much for the time. much.t: thank you so up, one hot commodity is causing a major problem with the new york subway system. we will tell you all about it, next. ♪

scarlet: welcome back to the bloomberg market day. are stumbling in new york. it's time to: alix steel. -- call in alix steel. crude oil slipping for the third day. alix: also, reports that iraqi exports will soar. an additional 800,000 barrels a day. they are nearing that record 3.70 5 million barrels a day. this year come the expectation was for 4 million. we are grinding higher here. more supply and lower prices. scarlet: more supply and not the demand to back it up. let's look at brent crude,

declining even more, falling below $63 a barrel. there is a good analyst note -- they turned bullish in the short term. predicting a rebound to $80 a barrel. they are saying there is a the supply deficit. that might be the short-term case. what is the case to be bearish over the longer term? alix: this is a staggering call because many analysts are looking at higher prices in the longer term. doing with overall lower production. in the short-term, that's an impressive call. especially when you have u.s. production still ramping up here in the u.s. we saw some rigs added in different parts of shale regions last week. -- northf having dakota has 125 wells that could be completed in june. you can't hang on to a lease if

you don't drill it. they are forced to complete this well. that's white a staggering short-term call. scarlet: 25% increase from current levels. oppenheimer upgraded a couple of refiners. tesoro. petroleum and given aey've been simplistic way -- as long as brent is more expensive than wti, refiners are making bank. diverges -- that was more due to save the valuations. quarteruarter and third are weak because you have

refinery maintenance, so they shut down and switch over what kind of products they are making. they are not really making anything. ,he real issue for the refiners yes, they are making a lot of products. does that stay? is there the end-user demand? if not, that product winds up in a storage facility somewhere. refinery margins will go down and that is the overarching risk for this group. scarlet: sounds like a familiar dynamic. just a quick check of copper prices. the stronger dollar means you are seeing a bit of a drop in copper as well. fromng with copper hundreds of thousands of new yorkers can blame copper thieves for their nightmarish commute this morning. said 500 feet of copper cables along the subway tracks were stolen. that resulted in service disruption to the entire train

lines. you take the rc line? alix: i don't. you're going to rip up copper from the train track and resell demand for scrap copper. 40 pounds of copper are used in a car. 400 pounds of copper are used in the average home. scarlet: which is why all those houses got stripped in detroit when people were leaving them. people going in and stealing the copper. alix: overall, we've seen over the last quarter, supply has been preloaded supply in the first quarter was the lowest since 2013. -- supply has been pretty low. i'm not making a definite correlation, but that is making

--e scarlet: connecting the dots. 27 copper theft incidents with 11 arrests according to mta. alix steel will be back in 15 minutes. we want to get back to some other top stories. ebay has a new strategy to attract advertisers. merchants will pay for as if they lead to actual sales. ebay sellers will able to specify what they will pay to run an ad. the higher the percentage, the more prominent the ad will be cured planet fitness wants to stretch its financing into the stock market. -- its revenues are under $1 million. planet fitness offers discount gym memberships and has 900 euros locations -- u.s.

locations. flooding waters have started to receive but the city is still a mess. the flood has killed four people and brought traffic to a standstill. 12 others are still missing throughout texas. those are the top stories at this hour. today, the national oceanic and atmospheric administration announced in early production calling for a below average storm season this year. the atlantic hurricane season runs from june 1 through november 30 and it has been seven years since hurricane ike caused $25 billion in damages. with $8 billion being issued this year come is the insurance industry prepared?the managing director to discuss a risk and expect the loss of catastrophe bonds. >> these bonds are below investment grade. this is real risk transfer. this is not investment grade. , it's talking on average

about 4.81 right now. let's call it around 5% on the average cap. there is a whole spectrum of risk in our industry. there are bonds that pay around 3% spread versus bonds we just issued that had an 11% spread. not all bonds are created equally in terms of the amount of risk being transferred. >> is there a way to determine the credit risk by looking at the default rate? >> we look at it in terms of loss probability. there is a third party that analyzes the risk for you. that is expressed in the terms of an expected loss. there are expected losses anywhere from one in 20 year risks being transferred to one in 200 year risks. if you're going to dig a bond that has a one and in 20 or risk, you can expect a lot -- you should be getting paid a much higher spread versus

something that is so remote that pays out in 200 years. scarlet: the managing director at -- speaking with pimm fox big we have some breaking news. olivia: i have some breaking news connecting the dots here corruption fifa crisis and the investigation that the department of justice went public with today. i have a statement that said the indictment of fifa officials says an unidentified sportswear company bribed a brazilian soccer official for a sponsorship deal. that seems to mirror one obtained by nike. to andictment referred u.s. couple eva signed a partnership with a brazilian .ederation in 1986

nike believes an ethical and fair play in business and sport and strongly opposes any form of manipulation or bribery. that's what the company said today. they say they have been cooperating and will continue to cooperate with the authorities. nike was not named in the indictment. an named and identified -- unidentified sportswear company. we will continue sifting through this and get you more as it comes out. scarlet: nike shares did take a bit of a lake down as that headline crossed. we will keep you posted on any further developed. there is the leg lower. coming up, john malone is charter's biggest shareholder. we take a closer look at what

made it means in terms of its influence in the cable tv industry. ♪

scarlet: john malone making a comeback for charters $55 billion bid for time or cable. the dishthe mogul -- billionaire flying solo after several hundred billion dollars in industry deals. brooke it's not for lack of trying. dish was in the mix for directv last. sprint they have been on , they talked to directv but nothing has come to fruition. now, the question is, as more and more of these copies to get together, what is left over for him? the pressure is on to find some money to partner with. scarlet: his dish more likely to

be a buyer or target? brooke: they can be both. t-mobile has talked about the possibility. gotten a lot more expensive. it doesn't have as much competition because it sprint cannot buy it. what is dish is most valuable asset chair? brooke: the spectrum. they have built this huge smile of spectrum that is incredibly valuable to these wireless carriers. -- huge pile of spectrum. it will be a hot commodity. scarlet: getting bigger is always one option and then you have the flipside, split up. what is the argument for him to sell off pieces of dish? brooke: if you cannot find a buyer or the right target, it will have to put spectrum to use somehow. you split up the company and put the core tv business in one

operation and then put the nother structure. scarlet: right now, the spectrum is just this asset link to waste right now. brooke: it is just sitting there. , the you pay to build out a wireless network? scarlet: comcast, we've been talking about what it does next year to maybe it looks abroad for its next purchase. what are you hearing about dish looking beyond the u.s.? brooke: you never know. everything now is cross borders. you can never rule it out. scarlet: media is the place to do some m&a. you will be very busy. brooke sutherland joining us for the latest on media m&a. still ahead, bill gross sounds off.

we will speak with him after the break. ♪ . .

betty: it is it new in new york. -- we will hear from

bill gross. alix: and the fee for presidential elections are asked to be delayed as officials come under fire. is outand mary meeker with her annual internet trend report. we will interview her on her take of trend technology. scarlet: good afternoon. i'm scarlet fu reunited with alix steel. alix: we are seeing a rally underway with the dow jones up i -- techits and text box stocks leading the rally. greece is also moving the markets rd