talking about when we can expect lift off. we will decipher it for you. >> we could find out when it has been reelected. >> live from new york, it is the saturday night live museum exhibit. all characters on display to celebrate the 40th anniversary. erik: consumer confidence from the university of michigan. julie hyman has the details. a -- actually it is mike mckee.

mike: 95.9. we had some reverses in the stock market. some reverses in the economy. line --sought gasoline also sought gasoline prices go up. current conditions rise to 100.8. consumer expectation. also from the preliminary numbers, both of those down from april. the fed keeping an eye on inflation expectations. we will call that essentially unchanged. the fed doesn't believe first quarter gdp is as concerned about chicago purchasing managers.

doesn't give you a lot of indication about what they are going to do going forward. julie: u.s. stocks were lower before the number came out. they pared some of their games for the month of may. higher price means lower yield. 2.17%.g the two-year at 61 basis points. erik: the news you need to know at this hour. u.s. economy shrank by 7/10 of 1%. a smaller contraction than most expected. bad weather was a factor, so was the stronger dollar. this is the third quarterly contraction in six years. in switzerland the economy shrank more than six years. due to theat is stronger frank, which made

exports more expensive. julie: the greek government isn't dealing in reality. positive reports about bailout talks do not reflect the situation. by sundayd be a deal but creditors say the two sides are not even close. a $1.7ed money to make billion payment to the ins next month. jack lew says greece needs to come up with a workable economic reform plan. >> what happens in a world where they put a credible plan together is something that we will have to see. credible if there is a plan there should be flexibility to make it work.

julie: 209 people deciding whether stepladder will be the face of global stock. it was considered a sure thing until the corruption scandal this week. now much of europe is pushing for another candidate. called for him to step down. cameron: you cannot have accusations of corruption at this level and on this scale in this organization and pretend that the person currently leading it is the right person to take it forward. is the ugly seen side of the beautiful game and he should go. the sooner that happens the better. he may not get the two thirds of the votes he needs to win in the third -- in the first round. the senate will meet in a rare sunday session. lawmakers are facing a deadline to renew the 14-year-old patriot act.

fullents want to stop collection of americans phone records in the national security agency bases that on cause. erik: a volcanic eruption forced evacuation of a small island. it shows clouds of rock and dust exploding from the peak. more than 100 people were evacuated. this is the second time the volcano has arrested in 10 months. hour, we in the next are waiting to see if they reelected president of fee for. the indictments of the justice department, the investigation by swiss criminal authorities. and then it is the biggest deal in the history of tech m&a. of in meet the harvard class 2015. putting percent say they have

cheated -- 20% say they have cheated on homework. -- ofter of them send them said they spent their college years sleeping alone. been a weekend of mixed economic news, culminating in ain't gdp report that was better than expected but that are them what economist had estimated. whenk of a speculation on the fed would begin raising interest rates. here's a look at who said what and why. >> we assume they will hike in september. it is most probable. >> i think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. >> we have heard the most

conviction out of chairman yellen in terms of we will have a rate rise this year. >> we don't have to announce we will do it in september. if the economy is growing slowly we will wait. >> with quantitative easing policies and language, it speaks to a longer period of time and slow-moving policy changes once they begin. >> zero interest rate policy already in place. got the very big balance sheet. that's where we are. >> cohead of multi-asset solutions, he manages $115

billion in assets. mike mckee making his way to join us as well. of debate but the consensus seems to be we will have a rate rise this year. your? --hat mean for for you? >> i think this will be damaging for the markets. i think they have to raise rates. that is essentially built in. of what is not yet understood by the markets, one of the language that will accompany that demo we don't want to have to explain or tell you that rates are going to go up. we want you to know that the economy will be in a good shape. she said there's too much up session about the first rate

increase. of what really matters is where we end, and that will depend on the economy, how high they go before they stop raising rates. talkingember you were -- you are covering ship makers. you have a view into the kinds thatessures and stimuli companies feel. havingthe transmission so much trouble working? why aren't companies incentivizing to spend more money? them thed is asking same question. why aren't we seeing an improvement in pricing power? there is tremendous uncertainty. this is the first cycle i can think of where you are six years into it and there is complete disagreement for what is going to drive growth.

>> isn't it better to hold 2% paper? bowler put out an academic paper where he proposed the fed use nominal gdp as a target for policy in this zero interest rate environment. is this feasible? >> the fed can set any target they want. question is whether it will deliver the growth they want. his paper you -- his paper argues the qe won't provide the growth. has to be proven out in the real world. concerns he the raised his the efficacy of guidance. >> over guidance will really help you because it will push down large -- push down long-term interest rates. erik: does forward guidance help you as an investor? >> not really. anything beyond six months, nine

months at most and you pretty much ignore it. you may communicate the intent but other than that there is very limited value in that. >> i just want to ask you, you were talking about the fed raising rates based on what will happen to inflation or growth. rates too low for this long it creates distortions in the market. >> you have to think ahead over a two-year horizon. looking are basically at is a very strong labor market and a very low interest rates, even if we get started to normalizing rates. to assethat could lead bubbles if we are not careful.

>> the fed was hoping they won't have to keep it that low for too long because they will be able to create wealth affects, which they have done in faith. now i think there is a limitation to what monetary policy could do at this point. think they can acknowledge that if the monetary policy is not effective. i think they can point to positive signs and hope the sentiment will be strong enough. erik: he is chief market strategist at maybe and our own economic editor. awaiting theare results of that presidential vote. be reelecteddder to a fifth term in fee for -- in fifa?

erik: we have some breaking news from the environmental protection we take you to julie hyman for new you will standards. julie: new fuel standards. the community has been waiting for this for some time. the epa is proposing significant reductions in the amount of petroleum refiners are required to blend into the supply. the mandate stands at 10% and it like these new allow the levels to be below that for 2014, 2015, 2016. you -- it is a bit backward. renewal willding

fuels in 2015 and 7.4 billion gallons in 2016. we are trying to figure out the reaction. a bit of a death after this came we wouldou would think see less demand for corn. a buy on theeeping refining companies as well as the ethanol producers, which is still trying to make sense of this. we will update you on it as the day goes on. scarlet bank it does look like corn is extending its losses, moving down on its session highs area in the meantime let's get you a look at some of the top stories at this hour. the founder of the silk road will be sentenced to at least 20 years and president. -- 20 years in late prison.

prosecutors say he collected more than $18 million in bitcoin . plenty of question about former house speaker being charged in a hush money scheme. someone 3.5d to pay million dollars to cover a past misconduct. he also broke banking rules to do it. the indictment doesn't say who the other party was. president obama's trade bill appears to have votes in the house of representatives. fast track authority measure has enough votes for passage. the senate has already passed the bill if it will allow the president to submit trade deals without amendments that could eat path -- that could ease passage for a major deal. erik: we are awaiting the results of the fight for -- of the fifa elections. in his opening statement to the

congress, he said he can't be held responsible for the actions of others. >> it may not always be easy but it is for this reason we are gathered here today to tackle the problems that have been created and to try to solve them. erik: bloomberg's mark barton is vote is, where the taking place. brendan, you are a football fanatic. mark, let's go to you first. we spoke a couple of hours ago. what has developed since then. mark: the excitement has died down. barricade,g of the

the sitdown has disbursed. left the area. we have a local man shouting profanities at officials. i'm hearing the voting could be -- could about to begin. victor has to win a two thirds majority -- two thirds majority. aside, the real excitement could the that could be about to begin. and -- the real excitement could be about to begin. brendan: all the european associations vote against him, that is 53 votes. we cannot assume that but let's they allively assume

agree. then you add the declared against seth, new zealand, usa, canada, australia, and jordan. to 100.d to get there is one interesting development. erik: a jordanian prince is on there. brendan: there is one .evelopment the south american bloc could vote as a block against seth. argentina has come out against him. here is the way i would think about this. game theory there are cooperative and non-cooperative games. they clobbered game is like soccer and chess. game thereoperative are no rules. if we play according to the rules that seth wants us to play, there is no way he can lose. it has to be a non-cooperative game. team sayinguropean

we have to play in the next world cup. : you mentioned a german protester yelling profanities. have you seen any asian or african protesters causing a rocket out there -- causing a ruckus out there? mark: the africans like him. they said they support blatter. these countries should vote independently of each other that they came out and said they will support sepp blatter. they have still said we will support him. love blatter.

there are some strongholds that may be turning. asia as well. already north america and canada are against blatter. it could be a shock. if there is a second vote, sepp blatter is widely except did -- widely expected to win. erik: let me jump in here. of at did a quick bit arithmetic. i came up with 68 current anti- blatter votes pre-and have you heard anything higher than 68? -- a votes. have you heard anything higher than 68? mark: he needs 140 to get through. that is a two thirds majority. it is close.

it could be closer than you think. they are hoping that people are reconsidering because of the scandal. erik: we will have to leave it there yet the vote begins minutes from now. brendan greeley in new york and in zurich our own mark barton and the unidentified area man. ahead, could goldman and up at kodiak go -- end up at pimco?

-- erik: ourng

reporting suggests that pimco considered the president of goldman sachs after mohamed el-erian left a ceo. what might have been different. gross ended up flooring with his colleagues at pimco. money flowed out of the total return fund. now he is at janice. i don't know how different it would have been with gary cohen. he is fascinating nonetheless. on that note, i did you farewell. have yourself a fantastic weekend. scarlet is still with you.

straight to's get this morning's top headlines. america feeling less optimistic

about the economy. the consumer confidence index fell to a six-month low. the decline from april to may was the biggest since the end of 2012. at the start of the year. just a few days ago the president of soccer's governing body was an overwhelming favorite to be elected. vote. may be a closer sepp blatter was waning. much of year and that much of europe will vote for a jordanian press -- jordanian prince. not always be easy but it is for this reason we are gathered here today to tackle the problems that have been created and try to solve them. scarlet: he does have strong support in asia and africa but he may not get the two thirds of votes he needs to win in the first round. uber coming out with --

coming out with new privacy policies. complained about a tool that allows the company to know where writers are at all times. more thanrst time in two decades, chevrolet will build camaros in the usa. the company is moving production from 2016 models to michigan. the plant will add 500 jobs. ford chairman bill ford said selling cars and trucks will not be enough to keep the automaker rolling in the next century. automakers are preparing for a future that includes sharing vehicles. the great grandson of henry ford told bloomberg the company will have to deal with two different worlds. it has to have the intellectual for -- intellectual horsepower to navigate an uncertain future. grads weigh in on shocking things they did in college and what they're planning to do after graduation.

meet the class of 2015. and we take back -- take a look back at 40 years of saturday night live. on the next hour, go pro to be more than a one trick pony. story at the moment, the biggest tech deal in history. --adcom to be bought by bought $437 billion. businesses are sitting on piles of cash. brooke sutherlin wrote about this today. she is with us now, and so to his tom giles. we love our superlatives here a bloomberg news. the biggest news is two companies are not household names. semi conductor or industry is prime for consolidation. to fund thesey

chip designs of people are turning to acquisitions as the way to grow and keep expansion going. scarlet: we have heard spinoffs and splits pivot that has been the trend for ebay and semantics. why is that more attractive than an outright acquisition? they have diversified and they have really become subject to activist pressure. activists have said we can get ife value from our shares you sell this part of the business, if you give us ownership of this particular division. that is what has happened with some areas of technology. conductor space these companies have to get together to survive. chips are expensive, chips aren't cheap. also remember the customer base is shifting. apple, those two companies are favoring their own ships -- their own ships.

scarlet: how does a stronger dollar play into all of this? plays into all m&a. it gives company more firepower to go after these deals and to boost their growth. scarlet: could there be a deal on this? brooke: some say this could be a big target intel or qualcomm. on the other hand of all go seems to have a great deal lined up. -- on the other hand avago seems to have a great deal lined up. scarlet: there has been talk of sales force in the software world. there has minutes much activity in social media. tom: your growth is still a lot higher there. a great?

with what happens in twitter. google is one that comes to mind. those companies are mum on the word. you have to really asked the question about management on twitter. one of their biggest cheerleaders has said he is going to start be more critical. we might see a new wave of agitation. scarlet: what is the level of anticipation for investors and companies themselves? just the seminot conductor industry, it is all tech companies that are just not growing the way they are. you don't know how long these low interest rates will stay around. now is the time to do it. thanks a lot to brooke

sunderland and tom giles. on bloomberg market day, harvard graduates weigh in on what they are doing after school and some shocking things they did after school.

scarlet: was it you caught up on all the the action around the world. we will go to ryan chilcote in

london. ryan: you much a sea of red with the exception of poland. just turned red. nothing good there. greece is still in trouble, down 1.5%. that sellsompany food and clothes. a low-cost clothing retailer. the more you buy, the more you need. the stock is up almost 3%. a double upgrade from the banks. an italian media company. shareholders continuing to punish the stock. we talked about this yesterday. stock was down by 7%. greeks are pulling their money out of the banks. since this great government came to power they have pulled out of nearly a fifth of all of their

money in the banks. no good news there. one more political story. day isto show you the 30 very interesting. all of that certainty on the pound. it is nearly gone. julie, over to you with a look on the u.s. market. the julie: if you take a look at what is going on with averages, declines across the board. some economic data was a little bit disappointing. a contraction that had been anticipated by .onfidence in terms of what we are seeing, there's a push and pull in the market.

energy shares are on the rise. that has been helping manners -- helping matters. we are seeing a decline overall in the major averages. oil prices also a factor today. we had some inventories data that showed a larger than estimated draw down in the inventories. rising.es started shares are on the rise with those oil prices. some of the refiners have been doing well. not a huge bit. stock rentals is a pulling down the industrial for the second day in a row. after an executive made

some comments saying the environment is not looking great. scarlet: thank you for that recap here in them united -- for that recap here the united states. swinging between gains and losses in shanghai before settling in the red. new numbers from japan show an economy stuck in neutral, raising concerns whether japan can meet its growth targets. benoit coeure prices in april rose 3/10 of a percent from a year earlier. better than forecast but excluding the last year's tax hike. now expect core inflation to decline this year. policymakers have raised their assessment of spending the latest data shows a surprising downturn.

house uprising fell for 13 -- household pricing fell for 13 months. bang -- scarlet: it turns out an executive at goldman sachs was considered for the top ceo job at pimco. cohen wasolly -- gary on the short list. he is not commenting. the infamous former home of the late superstar michael jackson is up for sale and it could be yours $100 million. -- acre acre state estate is located north of los angeles. he turned it into a combination of use and park enzi. he stopped visiting after it was searched by police under allegations of child molestation.

and spectacular new views from the tip of manhattan. the world deck -- the deck at world one trade center is open to the public. you can see 50 miles on clear days, sometimes looking down on clouds. those are your top stories. and we are waiting for the fee fifa presidential results. here's what the delegates were saying walking into the meeting earlier today. >> you think time is change -- change? is now for >> now is from blatter. >> my head says blatter will make it.

know welet people cannot tolerate what has been happening at fifa. in some regards it is the beginning of the end for blatter. >> this is a secret election. secret election. we have seen crack's in the asian world. with a positive crack. scarlet: everything you want to know that harvard's class of 2015. time inback at that cambridge and looking forward to their future in the real world. looking through number of them -- through some of the numbers, what struck you the most? >> 60% of respondents said they have never used marijuana.

talking so much time about the legalization of marijuana and the merit -- and the medical use. popular culture says it perhaps starts in college. 60% of the class of harvard that graduated that answered the survey said they have never used it. scarlet: maybe because it is legal it is whole home. -- it is ho hum. there has been some underreporting there. pimm: maybe they were under the influence. , what i foundat interesting was three quarters of the black students said they felt marginalized during their time at harvard. scarlet: that is a pretty overwhelming majority. pimm: the popular zeitgeist and

what everyone else is looking at is 20 percent said they did not have sex while at harvard. scarlet: 24% were not able to hook up? pimm: it all becomes kind of vague. 19% had cheated in academics at harvard. there was a question having to do with grade-point inflation. a minus or above, more than 50% of respondents said their grades was a minus. scarlet: they also don't think there is great inflation at the same time. pimm: there is an 11-year-old student from arizona who is entering the harvard class this september. she is a child prodigy. who takes the survey has a

lot to do with what the survey results is. scarlet: we will have all the latest headlines, including talking some hockey. take you back in time through 30 years of snl. that is coming up next on the bloomberg market day.

scarlet: it is friday but we are talking ahead to saturday. every saturday night we bring you arts, entertainment, and the good life. it will showcase 40 years of the iconic sketch show, the longest comedy tv show to stay on air. mark, welcome. what made you decide to create an interactive museum about snl?

ofk: it has been 40 years the amazing history of this show. there has been talk of an exhibition with an inside look at this show. it comes together every week and starts on monday. we switch it on on 11:30 on saturday night. scarlet: you have loren michaels participating in this. is he the control feet -- the control freak he has been seen in the press? mark: i had full access to the staff and cast and all the amazing people. some people have been there all 40 years. started whenner the show started in 1975.

the lighting designer has been there a long time. the one thing, it has remained consistent. is theu walk in there mail graham. he was 75 or 74 and has remained consistent. what has changed is the casket that's what keeps the show young and relevant. scarlet: you talk about how the work begins on monday, take us through why you want to emphasize the process rather than some of the names. the process is where you focus a lot of attention. >> you will have a daughter, mother, and grandmother. to kind of layout the show chronologically doesn't make sense because you don't want to

exclude anybody at the beginning. the sketches are mixed throughout. the thing that keeps it together is this monday and tuesday. the scripts are ready for the first time. built.al steps being hair, makeup, it is this amazing energy coming together. scarlet: what is the biggest draw for snl for the millenial's? mark: the show wants to be edgy. the show is very current. things have changed. current now is the internet. they need to copy snl for many years. stuart or is john weekend news. i think it because it is relevant. most of all it is funny.

scarlet: what do you think chinese comedians are looking to put the show on their? mark: the writers and performers come first over and snl. that is important to anybody who writes their own material. is amazing how many countries around the world have a version of snl. number give the exact but i have seen clips of many languages and cultures doing their own exhibit. scarlet: your favorite character? belushi.ove jim as far as the characters, anything he did. scarlet: the designer of the snl exhibition, that opens this weekend here in new york.

we want to get to julie hyman in the newsroom. mixe: at fake and an linkable move in the markets. -- a big and inexplicable move in the market. line on thethe screen behind me. leg downward, which we are already down. the losses toed about three quarters of 1%. that is happening on all three major averages. they have mirrored the move we have seen. ,f you take a look at the dow it seems pretty broad based here in terms of the decline we are seeing. not confined to anyone sector. want to point out the move we are seeing in the financials, the spider financial etf is one --a hit down almost

down almost 1%. 90% of the components are down. downtrials which were before, down more sharply 1.1%. the only group in the green at this point in time. scarlet: i'm also looking at crude oil prices. the dollar remains slower. treasuries are also at a lower yield. probloomberg market day, go may be known for its wearable cameras but the company is branching out and investors seemed like it.

. . .

scarlet: it is 11:00 in new york and 4:00 in london. -- pimm fox: welcome to "bloomberg markets."

we decipher it all for you. scarlet: go-pro wants to move into drones and virtual reality. investors are thrilled. lamborghini could be years for half $1 million. matt miller got an exclusive drive. scarlet: of course he did. ♪ scarlet: good morning. i am scarlet fu. pimm: i am pimm fox. we are 90 minutes into the trading day. let's take a look at where stocks are trading lower. right now, the s&p 500 down about .6%. of the dow jones industrial average drops below 18,000, down 135 points.