spotlight today. we will have details. scarlet: more fallout from fifa. the european soccer organization has called on sepp blatter to quit. handsmore money changing in china than the u.s. what's driving this record -- good afternoon from bloomberg world headquarters in new york i'm mark crumpton, here with scarlet fu. scarlet: u.s. stocks were at record highs, then have come down a little bit here. off by 64 points. .3%.&p 500 losing if you look at how treasuries

are trading, it's a little changed day. the10 year yield stuck -- 30 year bond selling off a little bit here. we did have pending home sales that came in better than economist had -- economists had anticipated. a 12 year low over's the dollar for the end. -- for the yen. mark: let's look at the top stories we are following at this hour. there has never been a big deal in the tech industry. broadcom $437 billion in cash and stock. because of increasing production and design costs -- avago is based in singapore. om is the biggest maker

of wi-fi chips. scarlet: tropical storm andre poses no threat to land. to specter to strengthen and could become a hurricane by late friday. warning thatma climate change will make more storms more intense and damaging. he received latest briefing on the hurricane season during a visit to the national hurricane center in miami. government weather forecasters are predicting 6-11 storms this season with three developing into hurricanes. the season officially begins next week. mark: we heard from the embattled president of soccer's ruling body just a few moments ago. sepp blatter presided over the opening of the fifa congress in zurich, switzerland. he addressed the corruption scandal. i cannot monitor everyone all of the time. wrong, theynt to do

will also try to hide it. but it must fall to me to be of the responsibility for the reputation and well-being of our organization. and to find a way forward. mark: the head of the european soccer organization has called on sepp blatter to quit. he is favored to win reelection tomorrow. scarlet: oil stockpiles in the united states fell for the fourth week in a row. inventories are near the highest level since 1930. there is speculation the oil glut will persist. west texas intermediate was trading at the lowest level in a month. a top apple executive appears to suggest that cars will be the company's next frontier. asked at a conference where apple wants to invest its cash, jeff williams said "the car is the ultimate mobile device, isn't it?"

apple has been pushing its team to start producing a car by 2020, although the program could still be halted. scarlet: honda motors says it will add 350,000 vehicles to its akata airbag inflator's in the u.s. investigators are continuing to search for the root cause of the effect that has killed at least six people. mark: china's most wanted fugitive is in the united states in new jersey. wasformer deputy mayor hiding abroad after being accused of embezzling more than $40 million. as he tried to enter the united states with a fake dutch passport on a train from canada. the chinese government has been cracking down and published a list of 100 fugitives who fled the country. 40 of those people are reportedly in the united states. those are your top stories at this hour. scarlet: coming up in the next

half-hour, where will the san diego chargers or st. louis rams end up in the future? it could be los angeles. why it's all about the stadium. appearow the view stacks to the observation deck at one world trade center opens friday. scarlet: more fallout from fifa. sepp blatter poised to win another term despite calls for him to resign. we will have that and much more. dick fuld's reemergence. the former lehman brothers ceo made his first public address and years in new york city today. bill wrote a piece about where the main players in the financial crisis are today. he spoke earlier with erik schatzker in betty liu. he hads able to surmise just advised something called

the national stock exchange, a small penny stock -- less than 1% volume stock exchange based in new jersey. some clients on buying that and then he went to china. i think this is a business thing. about how your piece you were trying to find these guys. talked -- >> talk to me in 2008. >> you cannot find dick fuld at all. .> we know what he's doing >> he is to have his attorney who would take all the calls and then say no, he won't talk to you. his attorney retired and so now, he's got no one playing that role. made half piece, he

$1 billion, right? in about seven years time. y is he going to come out again? why not just go away, by an island somewhere and live out the rest of your life? >> this is about redemption. he was viewed as the villain of this crisis. for folks like dick fuld, its annexes tension -- existential question. is there redemption? i was looking at the list of former members of lehman brothers executive committee and that only find two who have redemption in wall street. michael now runs fixed income at millennium. not a bad place to be. at aig.o

everybody else has been scattered to the wind. firms tome other harris and chuck prince, where are they now? warren spector could stand o'neill -- no redemption for these guys. >> some are looking for it and some would rather slick off quietly. warren spector is out and about doesn'tork city but want to have anything to do with wall street anymore. is enoughe, nothing and they have enough money and they can live the way they want to live and live quietly. dick fuld, this is about redemption. of course, he can't find it. olivia sterns has been following the story. did you hear any remorse in his words? olivia: he'd knowledge to get things wrong.

that he acknowledged he did things wrong. -- he was thinks asked what he would have done if he could go back to september of 2007. , please understand, about a day goes by that i don't think about lehman brothers. -- not a day goes by that i don't think about lehman brothers. he says he may have missed the -- did wef the market do everything we could? yes. he's at lehman brothers in september of 2008 was not a bankrupt bank. mark: i imagine he takes exception to being portrayed as the poster child for this because lehman was not the only one with problems. >> i'm sure he does take it very personally. he said my 96-year-old mother still loves me. this cuts deep to the bone and this is about why he is coming

back. he thinks it's about redemption. you presided over the largest bankruptcy in u.s. history. why are you getting back into business? he said "bite me." he was joking, but then he said this is what i like to do. i have my team and we love to build businesses. he is getting back in. he quoted rocky, had a sense of humor about it. he did say he was going to donate all of today's speaker fees to charity. scarlet: i can't help noticing that he was quoted as saying this talking about a perfect storm causing this easy access to credit. we were all curious about what he was going to say -- he said it was a perfect storm.

this buildup of u.s. bull market mentality. he put the bulk of the blame on the government for pushing homeownership and easy access to credit. recorde about this amount of borrowing. 50% of the market was controlled by hedge funds in 2008. rocky.uoting it's about how hard you can get hit. he got hit hard, too. scarlet: the gorilla is back in the jungle. mark: the timing of this -- he could have done this before. do we have a sense of why he did this now? >> he wants to get back in the game. the first couple of years, there was a bit of legal overhang. now, he is free and clear. scarlet: probably some crisis managers talked him through a timeline.

you make your rounds now and talk about everything in five months, you can lodge your next venture and get a run to come in again. you look at the executive committee of lehman brothers in 2008 and there are only two people who are anywhere back in , the l.a. area is closer to getting pro football back. we will have more on that, next. ♪

mark: welcome back to bloomberg market day. i'm mark crumpton, here with scarlet fu. scarlet: let's go to julie hyman with a look at the markets right now. red arrows all around. julie: not seeing huge red arrows. not as big as we saw on tuesday, but we are seeing declines across the board for the major averages. .25 --ywhere from the ceo talking at a conference last night, saying that may is coming in the little softer than we had in mind. that's according to the ceo. he says he is not adjusting the second quarter outlook. apparently, traders and investors don't feel that way. the stock is down 9% today.

company --nt rental there is also a manufacturer presenting at a conference saying it reaffirmed its 2015 outlook but says it's a challenging environment right now. there is difficult and market demand. we are seeing joy global and caterpillar taking a hit as well. these stocks are part of the dow jones transportation average. this is a movement that a lot of people have been watching. you are taking a look at the transportation average in the blue, tracking with the green dow jones industrials. ,f you are a proponent of dow you want to see the transports confirming the move in the industrials.

i want to emphasize this movement. has kept going up, at the same time come the transports have gone down. there is this divergence. to some people who are subscribers to dow theory, this would potentially be a warning sign. we will see how long that lasts. part of the decline has been the airlines, seeing particular weakness this year. scarlet: there will be much more competitively priced -- they will be much more competitively priced. thank you so much. mark: let's take a look at the top stories crossing the terminal at this hour. a drugmaker will pay a big price to settle and ftc case over generic drugs. they have agreed to pay $1.2 billion t. they unlawfully

protected a sleep disorder drug through agreements with generic drugmakers. says the fed will probably raise interest rates later this year. said the economy has rebounded from that week first quarter and is moving towards the fence goals. janet yellen said she expects to raise rates this year if the economy meets are forecast. george batak he is the latest republican to get into the race for the white house. pataki is bata announcing his candidacy in new hampshire. he has been out of office since 2006. he follows rick santorum into the race. santorum announced his candidacy yesterday. those are the top stories. scarlet: los angeles football fans have been deprived of a hometown team for two decades now. have the l.a. suburbs

approved big-ticket stadium projects. if they build it, will they come? joining us from los angeles is james walsh. walk us through this stadium situation. james: there are three teams and play and two cities that are vying for different combinations of those teams. there are a lot of moving pieces. the oakland raiders and san diego chargers are both looking to move to carson, a suburb south of downtown l.a. in the st. louis rams are looking at inglewood. any or all of those three teams l.a. make move to they have not had a pro football team in 20 years. will they come? that is key to the financing and the viability of these potential

moves. scarlet: the teams always want some help from the public sector. tax subsidies. metro l.a. is a bigger market in terms of the number of people and therefore dollars. an la-based team should be able to command higher ticket prices and tv rights. you can make the argument that they don't need as much in public subsidies. small cities have said they will not offer a dime. person is paying money to clean up the old landfill. the big difference here is what is called a personal feel license -- rich people buy these things. it's the equivalent of a season ticket. l.a. has a lot more rich people in it then san diego or oakland or st. louis. carson plan revolves around having these personal feel license is sold. san diego's financing component is a much smaller percentage.

can they sell enough of these seat licenses to make the financing plan work? mark: speaking of the public, is this something they want? >> that is the question. l.a. has not had a pro football team in 20 years. most of the fans today have never had a football team in the l.a. we have two basketball teams, a baseball team and another one in orange county. it seems like the appetite for a football team is not huge here. these teams have done their marketing studies and know what they think they can do in terms of filling up stadiums. it's an open question because we have not had a team in a long time. what is your favorite football team right now? >> i'm from michigan, so i had to go with the detroit lions. up, we will take

you to the top of the newly opened one world trade center observatory and show you how it ranks among other skyscrapers competing for big business in the air. ♪

the observatory at the top of one world trade center opens to the public on friday. a ticket to take in the view from 1250 feet will cost $32. >> to the top of one world trade center takes 47 seconds. this is the fourth tallest building in the world. at the tallest building is

necessarily have the tallest observatory. this is not even among the top 10. in dubai is the world's tallest building. it's observatory is 1000 feet lower. -- when shang howard the shanghai tower opens later this year, it will be the second tallest living in the world but will have the tallest observation deck. tickets are not cheap. the upper observatory at the burj klifa costs $106. a top, there are lounges and boutiques. there is a bar, a cafe and a steakhouse. the observatory's operator expects to earn $875 million for the owning partnership over the next 15 years. this will be the third big observation deck in new york. the other two are top of the

rock and the empire state building. 7 million tourists visit every years, it'snext few estimated that number could grow to 9 million. one world observatory expect to see 4 million of those visitors every year. even though i've lived in new york for all my life, i've never been to the top of the former world trade center or empire state building. mark: it was spectacular, a beautiful view. scarlet: can you feel its way? mark: i did not. scarlet: i was in someone's office and its weight a little bit. -- it swayed a little bit. ♪

scarlet: welcome back to the bloomberg market day. let's get straight to the stories making news this hour.

it is the biggest acquisition ever in the tech world. buy broadcomeed to . at the latest deal and industry best hit by consolidation because of the rising cost of production and design. it's a singapore-based company that was once part of hewlett-packard. broadcom is the largest maker of wi-fi chips. lyft are pushing back against new york city regulators. the changes would address fares, availability of wheelchair accessible cars and restrictions on picking up passengers at airports. the companies contend these regulations would discourage innovation. u.s. prosecutors want to know what role american banks played in the soccer corruption scandal. money involved in the two decade-long bribery scheme passed through u.s. banks,

including citigroup and jpmorgan. the banks have not been accused of wrongdoing and citigroup says it is cooperating with the investigation. 14 people happened charged in the case, nine of them officials with fifa. those are your top stories. hour, up in the next half tv is better than ever. the entertainment industry will air more than 400 original tv shows this year. there just aren't enough of the worst to make this golden age last. -- or insight from the famed economist in the g7. china's record equity turnover per at more money is changing hands in china than in the u.s. europe calling off its boycott of fifa. extendatter is poised to his hold on the governing body. this comes after officials open investigations into fifa,

alleging corruption, racketeering and other misdeeds. sepp blatter has not been charged but nine officials and five others were named in the u.s. indictment. sepp blatter addressed the allegations earlier today. sepp blatter: actions of individuals bring shame and andliation on football demand action and change from us all. we cannot below the reputation to betball and fifa dragged through the mud any longer. everyone all of the time. wrong, theynt to do will also try to hide it. be --t must fall to me to

responsibility and well-being of our organization and to find a way forward to fix things. scarlet: bloomberg television spoke with international soccer officials. here's what they had to say about the allegations. has disaster like this never happened before and there is only one chance -- we need a change. but, we have to vote. this, now what we say i'm clean, i had nothing to do with it. has been there for a long time. it's hard to believe that he did not have some suspicion of something that was going on. in exchange -- it's serious mismanagement. languagee innuendo and

, there has never been any hard evidence put forward that sepp blatter is corrupt. a lot of other people did that during his governance. >> if it is true that $10 rerouted, don't tell me the exact president of fifa doesn't know about it. >> this all happened on his watch. when these things happen on some at his watch, is it right to give that person in charge? is aet: fifa not-for-profit organization that makes billions of dollars a year. >> sepp blatter has ruled world football for 17 years. he has overseen five world cups. fifa is a not-for-profit

organization with 209 members. 16 more than the u.n. fifa made more than $5.5 billion between 2010 and 2014. the majority comes through broadcast deals and sponsorship. $250 million of prize money goes to participants in the world cup. billion goes on world cup expenses. to solidarityoes programs. islands with the appellation of less than 60,000 people has received a $2 million since 2002. these tiny countries all vote for the president of fifa. scarlet: that was jonathan faro in london. we will bring you more details and headlines as the story develops. economists on it

that -- >> the best solution would to keep on negotiating find a cover mice. -- find a compromise ♪. ♪

scarlet: welcome back to the bloomberg market day. we've got about 90 minutes to go in the u.s. trading day. let's get a check on the leading and trailing sectors. utilities is the only group out of the s&p 500 to rise.

on the downside, you have industrials and energy shares down by .3%. out moneyare pulling from energy producers for the first time in eight months more than $1.5 billion has been withdrawn. let's check on crude oil right now. the beauty i is down, but not as much as before -- wti is down. alix steel joins me now to go through the numbers. before thell take up markets closed, i'm not sure why that happened. there were some positives and negatives. , you didn't have good we arey draws not seeing that storage armageddon that we were expecting. on the negative side, you still

have u.s. production right around record highs. we saw briggs increase last one -- riggs increase last week. you did have a built-in product stocks -- build in product stocks. inventory up 1.1 million barrels. , buteries are working they're making more products that might not be used in that is the issue. a glut in the raw materials. there is a theme here. what about supertankers? they haul about 2 million barrels each. ix: that's crazy. it depends on where the oil is going. we have a supertankers surge and all that oil is going somewhere to be sold, that does point to

strong demand. estimates say there are about two or 20 million barrels being stored on ships -- 220 million barrels been stored on ships. is heavily a hard time offloading its supply. -- having a hard time offloading its applied. we make the same kind of crude. nevertheless, opec will have almost half a billion barrels of oil in transit to buyers at the start of june. that's the crux of their whole strategy here. let's move on to corn. alix: it's different" your corn prices are popping. -- different and cool. corn production is forecast to fall this year. by about 25 metric tons.

the planting areas will contract because it's higher cost hurting supply. consumption in asia is popping. they're looking at a deficit in vietnam and indonesia. --s different scarlet: stick around because commodities, a dirty word when -- theseto television networks are looking to make the next madmen or game of thrones, spending millions chasing a dwindling audience. some interesting numbers. the entertainment industry will air for hundred original tv shows this year. it costs around $3 million to make one hour of scripted tv. -- 400 original tv shows this

year. cable networks pay about 70% of that for the rights to air the show on tv. alix: that is where the money is being made. scarlet: everybody's looking for the next big hit. they will create big-name stars out of this. alix: advertising fees are so spencer because these broadcast content guys have to make up the cost. so expensive because these broadcast content guys have to make up the cost. scarlet: those people watching within seven days of the show's original airing have fallen 11%. within seven days. you typically watch shows a month after they go off there. that's where the networks will wind up making their money.

six of the over 100 shows come only -- walking dead being one of them. it is hard to find those hits. tv for 24o watch hours a day for at least eight months to catch up on every scripted series that aired last year. that's crazy. my favorite series is "the americans." their is real danger of it being canceled. the numbers just aren't there. that's why streaming is so interesting. look at breaking bad, it wasn't getting a lot of traction but then that expected up and became -- it became a cold favorite. ult favorite. 199 from basic cable

channels. 129 on broadcast networks and 24 came from streaming. i'm really curious to see the growth rate of each of those over the next year because i know, for me, i just watch netflix. scarlet: it's a good time to be an actor or actress. they are trying to make more tv shows. the opportunities are there e. tweet us and let us know. you will so much for be back in 15 minutes to take us through the market close. diplomatss. iranian plan to meet in switzerland to reach nuclear court by the end of june. john kerry and the iranian talksn minister will hold

saturday in geneva. european and iranian officials have suggested the talks may require more time. a wrongful death lawsuit filed by the family of michael brown is moving to federal court. brown was shot and killed by a white police officer in metro st. louis last august. his death touched off months of unrest. that suit was filed last month in state court but the st. louis post-dispatch says it's moving to the federal level on grounds that it deals with constitutional issues. david tepper getting behind a new hedge fund, providing capital for the first time in his storied career. cash --ing capital to the new firm will invest in global credit. runningd in 2010 after sales at morgan stanley. steve schwarzman says if he was 30 years younger, he would be an entrepreneur in silicon valley.

blackstone.under of he says the tech sector has so much amazing value creation. finance ministers and central bankers from the g7 are meeting in germany. what makes this g7 different is the participation of superstar the chairman of ruby global economics spoke with erik schatzker. >> the two sides are moving in the right direction. there is a proposal on both sides, still differences, but those can be narrowed. the misss realize payment -- there will be significant damage for greece and also contagion for the rest of the world. i see a sense of something more

contract but moving in the right direction. the 1.6 billion will be paid by june 5 and hopefully by the end of june, there can be an agreement on --uctural reform foreclosing fou erik: why should increase just put capital controls in place right now -- why shouldn't greece just put capital controls in place right now? it is financing deposits and other investments. put the controls in place now, stop that from happening and then you can take them off at some point. for now, there has been some stabilization of the -- as the

negotiations are going in the right direction. -- if therecontrol payment, they will impose a deposit freeze and capital control and if they don't have enough money to pay the imf, they might have to issue ious, the beginning of a parallel currency. , more moneying up changing hands an in china than in the u.s. ♪

scarlet: what goes up, must come down. chinese stocks ended their seven-day rally, plunging the most important ones. they lost 6.5% overnight. the record volume of trading, combined turnover rose to $380 billion overnight. volumeceeded the u.s.'s yesterday by $132 billion. joining us is the founder of north growth capital. thank you for joining us. turnover is a in remarkable given the u.s. stock market is more than twice the size of china's. it is late may, we are in the selling season right now. is this run-up in chinese trading activity a precursor to a more permanent condition? >> good afternoon. thank you for inviting me. on the chinese market, the turnover, the opening in shanghai and hong kong has been a market changing move,

increasing trading volumes dramatically come in both directions. it is a large number, there has been record openings of accounts in mainland china as well. there's a lot of interest in equities. the market has done well since january. up 20% in hong kong. that continues to spark interest i mainland investors. scarlet: also overseas investors. that has people talking that msci will do the same as well in early june. tell us housing of it that would be. gabriel: a huge move and huge change for the chinese equity market. index -- if% in the you include asia, that may increase to 45%. the largest market in emerging

markets. this is from 5% just 10 years ago. msci is aby into futuremove liquidity coming from overseas investors. they will also be included in the all caps or world index, to some extent. -- all country world index, to some extent. scarlet: a lot of new money finding homes. what companies do you have that the chinese government can excessively -- effectively manage the stock market? gabriel: so far, it's been pretty good. the chinese equity market as defined by msci china or even shanghai has been in a bear market since 2007. ,t peaked quite a while ago similar to other indices in emerging markets and it only recently started to rally. reasons --quidity

the government is not discouraging investment in the cooties. also for fun i told reasons -- in equities. also for fundamental reasons. scarlet: you have quite a bit of your money put into chinese equities as well. 30% of your emerging market funds. what was the last action you took? look to we continue to add in the technology sector like internet companies. we also like the e-commerce sector. companies like jd and alibaba have reported strong numbers. listing last year. also, we look to financials. financials have been very depressed over the last seven years. that includes banks, insurance companies, property stocks, asset management companies.

very global to bulls anywhere from five to 10 times earnings. -- very low multiples. scarlet: there you have it. we have some breaking news. olivia: we have some breaking news on jpmorgan. according to a person familiar, jpmorgan is set to/thousands of thousands of jobs. from its global workforce, about 2% of its total workforce. this comes as jpmorgan is consolidating its back-office support and relying more on technology and human tellers. -- then human tellers. ♪

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is 3:00 p.m. in new york, 3:00 a.m. in hong kong.

this is the bloomberg market day . anchor: another day, another republican throws his hat into the presidential race. thelet: and we explain legal claims behind fitbit. scarlet: good afternoon, everyone. i'm scarlet fu here with alix steel on this thursday afternoon. is off a nasdaq fraction. a pullback from those record levels. part of the reason, scarlet, transport leaving the the client. the dow jones looking at the longest losing streak since