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. the nasdaq also declining 34

points. scarlet: just off the session lows. you would expect to see treasuries up, and they are. prices are higher, that is the yield. 2.11 %.ear, treasuries headed for the first weekly advance in more than a month. maybe that means a selloff in treasuries has ended. pimm: could be. scarlet: let's get to our top stories. voting in zürich is underway. 209 delegates to the fifa decides will does i -- whether he is elected to a fifth term as president. a few days ago, he was an overwhelming favorite. but then officials were charged in a scandal. before the voting began, he pleaded for unity. 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. scarlet: he would need to get 2/3 of the vote to win on the first ballot. . this support comes from africa and asia. the first quarter was worse than estimated. the u.s. government now says the economy shrank in the first three months of the year. u.s. g.d.p. fell at an animal rate of .7%. the initial estimate had the economy growing slightly. among the reasons, bad winter weather and a strong dollar that hurt exports. american stealing less optimistic about the economy. the university of michigan's consumer confidence index fell 36-month low in may. the decline from april was the biggest since the end of 2012. 56% said the economy was improving, down from 68% at the start of the year. pimm: shares are rising today. "the new york post" reporting intel is close to a deal to buy the semiconducter maker.

last month, bloomberg reported altera had rejected an offer from intel. biggest technology deal is $37 billion. when pimco went looking for a new chief executive in 2013, it turned to goldman sachs. bloomberg is reporting the president was on the short list to succeed mohamed el-erian. pimco's i get never regressed beyond conversations. not commenting and is considered a possible successor to lloyd blankfein. in japan, a volcano erupted on a small island sinning smoke and ash miles into the sky. the video showed clouds of dust exploding from the peak. more than 100 were evacuated. it is the second time it has erupted in 10 months. the island is located about 620 miles southwest of tokyo. those are your top stories of

the morning. it is déjà vu all over again for greece. with the greek government beginning to exhaust its cash reserves, there is no indication a deal to unlock more bailout money will be agreed. hans nichols is at the summit in germany. give us the latest. is financeatest ministers left with nothing but recriminations and harsh words for greece. in some ways, he was perhaps the strongest arguing a case for european unity might mean they need to keep firm and fast with their rules, which would mean a greek exit. jack lew is the u.s. treasury secretary. he talked about shifting the date. he seemed to be expressing frustration that the dates and deadlines keep getting missed. i asked how concerned he was. here was his answer. >> from january until now, too

much time has been spent unproductively. the challenges this week is it is a weak weather has to be aggressive. -- has to be progress. h anow once you reac general agreement, you still have a lot of work to do ahead of you. hans: we all know deadlines force action. problem is the deadlines being shifted. the latest is the idea greece could lump sum payments to the i.m.f. june 5, they owe 300 million euros. they could push that back. they owe 1.5 billion through june. they could have that payment come at the end. finance ministers seem to want to have some kind of firm deal by june 5. they are quite far apart. if there is one theme running through the morning, it is that there is not enough progress needs to make a

decision about what direction they want to take their country. scarlet: june 5 is the deadline we have in mind. alexis tsipras who leads the party reportedly spoke with angela merkel. do we know what progress might have resulted? hans: no. we tried. on the phone call, francois merkel, wengela asked the finance minister of france. he did not give us a readout. it is difficult to get a readout when three has of state have a conversation. if there will be recriminations, we may get some line coming out of that meeting. right now, everyone is in the same spot. that is that greece needs to make a decision on what direction they want to go. will they reform pensions? will they do something on labor laws? will they meet the targets? this morning, we heard from varoufakis again. he keeps saying they are close to a deal.

byt is rejected at least others. no one in dresden thinks greece is close to a deal. pimm: when is the next meeting? when do they get together again? hans: that is a great question. if there is some sort of agreement on a technical level -- just to give you a sense of how difficult technical talks can be, they were supposed to start wednesday in brussels. for the airport was closed, so they were delayed for hours. if you have an agreement on the technical level, you will still have to have a political discussion. that would require all 19 finance ministers as well as representatives from the banks and monetary fund, which has been the harshest critic of greece. you need to have those three get together. nothing is scheduled. what used toorts be called the troika, now call the institution, wants to have something by june 5. nothing is confirmed.

right now, we are in limbo. the scary part is we are getting closer to when greece will run out of money. pimm: thank you very much. hans nichols reporting from dresden, germany. scarlet: i like how he tried to has become the institution. it sounds friendlier, like they are not so unreasonable. pimm: is also a differently which. go-pro: still ahead, jumping into virtual reality and drones. why investors are loving the company moving to the skies. pimm: card sharks heading to las vegas this weekend. a look at wall streeters playing in the world series of poker. ♪

scarlet: welcome back to "bloomberg market day." i am scarlet fu. pimm: i am pimm fox. breaking news on cuba. we want to go to peter cook for the latest. .eter: it is official cuba is being removed from the united states, the state department's list of countries that sponsor terrorism. this is not unexpected. a 45-day window from when the president first informed congress he planned to remove cuba from the watchlist. congress had 45 days in which to cast a vote in opposition. there was no vote in congress. this not totally unexpected. this is just the latest death in the effort for the u.s. and cuba to try and normalize relations. the other conversation ongoing and still not yet resolved is

the opening of embassies. still disagreements over exactly what people within those embassies will be allowed to do, particularly u.s. officials in cuba. how free they will be to talk to whoever they want. some sticky issues still out there, but this is a significant move, symbolic more than anything else, for cuba being removed from the u.s. state department's terror watchlist. pimm: thank you, peter cook, in washington. let's turn our attention to the markets. we go to julie hyman with a look at what is happening now. julie: i want to start with altera. we have been following the stock after "the new york post" said intel was in talks with the company. that is something we talked about last month. the thinking was altera have rejected a bid from -- had rejected a bid from intel. "the financial times" says they are near a $15 billion deal with altera. take a look at the terminal behind me.

you can see the move. the more dramatic fashion, we are seeing the stocks like on -- spike on those headlines, as you might expect. we had "the post" report this morning. this has more of a price tag and is from "the financial times," so we are seeing more of a reaction. more broadly in the markets, we are seeing a pullback that started more sharply about 15 minutes ago with the major averages all down at least .6%. if you look at the intraday chart of the s&p and dow, you can see the following off we had happened in the last half hour or so. some investors are pointing to a disappointing chicago purchasing manager's index. a lot of folks have said there was no specific catalyst. we saw other assets move sharply at the same time, including oil prices. we saw some movement in oil

prices at the same time upwards, going in the opposite direction. onrgy stocks now in the red the s&p 500. gold prices as well. we were watching the make a sharp move at that point in time, in that case downward. it has been a confounding session on that front. i should mention the dow and s&p are set to have their worst weeks since mid april. scarlet: thank you, julie hyman, for the latest on the market. let's get to top stories crossing the terminal. plenty of questions about your house speaker dennis has to -- hastert being charged in a cash money scheme. they say he broke banking rules. the indictment did not say who the other party was the nature of his alleged misconduct. president obama's trade bill appears to have the votes in the house of representatives. the authority measure has enough votes for passage.

the senate has already passed the bill. it will let the president submit trade deals to congress for an up or down vote without amendments. that would ease passage of the big trade deal. the founder of the silk road will be sentenced to at least 20 years in prison, the mandatory minimum. prosecutors want him behind bars for longer. they say he collected more than $18 million in bitcoins with the drug website. it is the start of a wild weekend for hockey fans. tonight is a winner take all game seven between the rangers and lightning. tomorrow is another game seven between chicago and anaheim. the winners face-off for the stanley cup. those are your top stories. pimm: go-pro is looking to disguise. the portable camera maker says it will move beyond the signature brand and expand to drones and virtual reality. the report sent shares soaring yesterday easing investor concerns go-pro could be a single product company.

how will the new products define go-pro's future as a hardware, software, and media company? cory johnson is in san francisco. why does this move makes sense for go-pro? the promise for go-pro has always been in the future. the present product selling cameras on a stick and evaluations have been out of wet with what the business has been. it has always been there will be something else. with the cool videos cameras. they are fun to watch and shoot. the evaluation of the company has gotten so extreme. when they ran the ipo process, the promise was they would be a media company. not just a camera on a stick, but a media company. trading at 11 times book with estimated growth of 20%, but p/e ratio; times earning,

they have to have something else. excitement is now what they can do by offering a camera on a drone. they don't have that product in the marketplace. the future could be anything you can imagine with go-pro and its shares right now. pimm: this sounds like something out of an old playbook. you could go back to the beginning of television and radio. you had to that made hardware and decided they better figure out what to put on those broadcasts. this is not new. is there a playbook for go-pro to be successful? ry: that is why everybody is watching on zenith television. actually, it is bloomberg television and maybe that is the point. there are interesting applications. i talked to one of the executives at google who had a device of 16y s mounted with software that would fire them all at once. if you could make this work and

spend the $8,000 it would cost, you would get this cool device. google felt it was a way to capture more information and put it online for people to use. check out what he had to say. google has been organizing world information and making it universally accessible. we think of this as a natural extension of that. capturing world places, important moments in history, and organizing them in a way anyone anywhere can experience for all time. i think there is something important and special in that. there is moreon information to be captured and new ways to capture it, maybe that is what the go-pro drone would do. that does not make the stock more valuable yet. but if it was a big success, it might someday. scarlet: we are all speaking hypothetical. go-pro is a hardware company trying to move into software and wants to be a media company. are valuing the

company at higher than a typical hardware company. cory: i can tell you is not there yet. they don't even break out a media component as a segment when they report revenue. if it were 5%, they would have to report. you can safely assume whatever revenues they get from media are less than total 5% of revenues. this is a very expensive stock at a cool product. there is a lot of competition from lots of makers of these devices. these guys have mind share if not market share. pimm: thank you for your mind share, cory johnson. scarlet: go-pro trades at 69 33%s reported earnings and times estimated earnings. coming up, tickets for game seven already the priciest ever

for an nhl playoff game and we are not even at the finals. ♪

pimm: card sharks are heading to las vegas this weekend for the world series of poker. the event attracts not just poker professionals but also some big names in wall street and hollywood. david takes a look at the engine driving the world's biggest poker tournament. the 46th world series of poker at the las vegas hotel and casino. the tournament caught fire in 2003. espn signed a multimillion dollar deal to broadcast the weekend cable with

specials, color commentary, and something called the whole card camera. amateurs got a new perspective on how professional play. popular. poker was caesars now owns the rights to the world series of poker. there were sold in 2003 in a $1.45 billion deal that included casinos. since then, the prize pool has gotten bigger. 2003 to.8 million in $227.7 million last year. television viewership has not kept pace with all that growth. at 3.3 4 million in 2004. last year's peak was one third of that. watching events that last for weeks, espn has planned more live coverage. there are 11 new events.

there is a three-month break before the finals. the world series of poker says that gives players extra time to line up sponsorships. for caesars real casino, the longer the event, the better. it draws in crowds during the summer slow season. the world series of poker accounts for 35% of its annual revenues. have you ever watched the world series of poker? pimm: i have not. have you? scarlet: when i was pregnant with my first, they were airing it all the time. i kind of got into it but i have to confess i have never played poker. pimm: i understand the appeal of winning all that money or losing that money. put the appeal of watching people play cards? you need a talented producer to make that exciting and riveting. pimm: yes. either that or you need to be doing something else while watching them play cards. it is like watching someone read a book. scarlet: it is not the most exciting thing. pimm: i know where you are going to be watching things tomorrow

evening. scarlet: in front of the t.v.'s that because it is a big weekend for hockey fans. we have game seven in the eastern and western conference finals. the rangers will take on the lightning tonight in new york city. if you want to go to again, you will have to pay up. the average ticket is going for just under $1100. more than three times as much as a ticket to tomorrow's night -- tomorrow night game seven between the blackhawks and ducks. the most expensive for a non--stanley cup game. pimm: if you want to see them play in tampa bay in previous games, about $171. scarlet: much cheaper. the face values range quite a bit. to $1900.om $153 at anaheim, it goes only to $700. pimm: there is a reason you know these details. not only are you a fan of hockey, but you are also a

hockey player or former hockey player. scarlet: and a hockey mom, which is what i spend most my time doing when i'm not here. i played defense which means you have to be able to skate backwards as well. we also have the nba finals coming up. i want to compare the game seven price tickets for the non-finals in hockey. the nba games are more expensive at $1026 for game one -- sorry, for game three. game one is a most $1300. and theywith seatgeek said there are multiple listings so prices will likely drop. pimm: have a good time watching the game. thanks for being with me. we have more of "bloomberg market day" ahead. ♪ we live in a pick and choose world.

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the obama administration is taking one more step towards normalizing relations with cuba. they removed cuba from their list of state sponsors of terrorism. this is largely symbolic as they had announced the move last month and congress to action to block it. delegates of the fee for conference are deciding right now whether he will get the chance and be elected, reelected to a fifth term. support has waived the last few days because of that corruption scandal. he says he is worried about the organization's image. let the rotation of p5 and football be dragged through the mud like that. and those who are behind this and those who are truly at fault, especially if they are convicted and found guilty, these are individuals and not

the entire orgization. the united states, canada, and much of europe are expected to vote for one of his opponents in the election. environmental protection agency wants to cut the amount of ethanol in fuel. change rises at the pump. and you can buy the home of the late former superstar michael jackson. it was once known as neverland ranch. it is located about 130 miles northwest of los angeles. had to the property into a combination amusement park and the zoo, but he's not visiting it after -- he stopped few live on bbg television and streaming on your phone, tablet, and at bloomberg.com, now on apple tv visiting after it was

investigated on allegations of child abuse. red, they continued weakness in greece. sector.e movers, retail this is a british retailers that sells food but clothing. the stocks of today because the thanksgiving a double upgrade. an italian media companies that from af that walked away deal earlier this week. bank,eece's largest depositors continued to pull the money of the bank, so that -- so it has

disappeared. another political story, this is a 30 day charge. the pound is down over 30 days. this is where we had the election, this is where we had the euphoria after the certainty of the election, it is all gone now. a quick update on the euro, as showingsee that is weakness of the long run as well. that is the story here in europe. pimm: thank you. coming up on the bloomberg market day, bloombergs car guru, matt miller got his ride of his life would be got to test drive the latest lamborghini supercar. and the fee for elections are underway to determine the president's future. will he win a fifth term? we will review the results as they come in.

hour, weg up next hugot up with barra. about whenulation the federal reserve will raise interest rates. here is who said what and why. >> we should assume they will hike in september. that is the most probable. it is not 100%. the economy continues to improve as i expect, 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 heard the most conviction we have heard yet in terms of we will have a rate rise this year. >> wait and see what happens. it now, weo announce

can wait. ing withve been grossinw quantitative easing, which to a longer moving policy change. we expected for them to begin in september. >> it has been in place for 6.5 years. we have a very big balance sheet will we have to think about unwinding that. that is where we are. pimm: earlier, erik schatzker and mike mckee talked with a strategist about his position. >> if they fail to increase rates this could be very damaging for the market. it will be an acknowledgment that the government -- economy is weak six years after the end

of the recession. i think they have to raise rates and that is essentially built in. what is not really understood is the unintended effects and the language that will be used to a company that rate increase. mike: we really do not want to have to explain to you or tell you that we rates are going to go upcoming you were going to know because the economy is going to be in good enough shape. is too much of session about the first rate increase, where we begin. what we really matter is how we end. how far they go, how fast they raise. : i remember talking to you when you were covering chipmakers and computer makers. you have a few into the kinds of treasurers -- you have a view

into the kinds of pressures and stimuli that companies feel. why is the transmission having so much working trouble? why are they not it's been survived to spend more money -- incentivized to spend more money? there's tremendous uncertainty on where growth is coming from. this is the first cycle where you are six years into it and there's complete disagreement about what is going to drive growth. even the fed, after all this is saying that the growth will be at the trend line. mike: is it better to hold 2%. then to take the chance of losing money. scarlet: is this realistic? >> you can set any target you want.

the question is whether it will deliver the growth that they are looking for, and they just do not know. his yesterday argues that qa did not provide the growth and that they want, and you get an academic parity that has to be proven out in the real world. he said this proves forward guidance? forward guidance will be because it will push the long-term interest rate and that will boost growth. and they are arguing it did not work any better than anything else. beyond three to six months is pretty much ignored because nobody has that much of a foresight. thewould be communicating intent of the fed, but there's very limited value in it. mike: you were talking about the fed raising rates a stove was going to happen to inflation or growth. there concern is that if you

itave rates too low, gives distortion in the market. >> you up to over into your horizon. -- you have to look over a two-year horizon. we have very strong labor markets, and very low interest rates, even if we had started sooner on lowering rates. i think that that could lead to asset polls if we are not careful. mike: do you see that happening? >> the negative rates to create dislocations in the market. and the fed was hoping that they will not have to keep it this low for too long because they will create wealth effect which they have done i, and they were hoping to create stimulation, where they failed.

i think they can point to hazen of signs of hope that it will be strong enough -- positive signs and hope it will be strong enough. still ahead on the bloomberg market day, will the market be a match for the 30 and younger crowd entering wall street? how they prepare for a fed recall. ♪

pimm: welcome back to the bloomberg market day. i am pimm fox and let's take a look at some of the top stories

are crossing the terminal right now peter the u.s. senate is holding a rare sunday session. it has to do with the national security agency's antiterrorism surveillance powers, they expires on monday. booksa has authority to do collection -- bulk collection of phone records under this law that is expiring on monday. a little more than an hour from of the websiter silk road will be sentenced to at least 20 years in prison. transported celebrities from jackie onassis to muhammad ali, and now the last checker cab in active service is being auctioned off.

in 1965icab was built and taken out of service in 1999. it was later sold for $131,000 auction company bottoms expects the taxi to bring in no more than $15,000. the taxi driver is not included. those are your top stories at the moment. trader is coming college will be facing a big challenge. what are these new entrants into takestreet, what is their on the feds raising of interest rates? >> they are excited. there are a lot of new entrants, as they have not traded through the full tightening cycle before. i thought a lot was said about children's of wall street traders have not traded through one from the meeting they

started in the past 10 years or so. them have not treated three market correction or a 10% decline in the market. a lot of them are getting bored, they are getting ready for some excitement. they want something to shake up the environment. this might be the thing to do it. any specialere training classes or seminars that is going on in order to initiate them so they know what could happen? >> and a lot of them have talked to their superiors about what could happen with an interest rate hike. wrongview: something goes -- who do you call when something goes wrong. from older and younger traders about what could happen, how to interpret the data. the marketabout how interpret certain things and how you should react to it. pimm: there is a statistic that you have uncovered, the arty present -- for that 30% of young

traders have never seen a rate hike. >> correct. that was surprising to me. a bigger demographic than i thought. and the average wall street trader is 30 years old. go ask their superior to ask what it was like when, and then they fill in the blank to give experience? >> absolutely. some say they read books and papers, but there is nothing that can prepare you for when it actually happened, because we coming off of superlow interest rates. a lot of older and younger traders are in the same boat, because it is a new thing. we did have a few people say that older and younger traders alike might be a little spooked, or surprised. pimm: something for them to bond over. >> exactly. pimm: thank you very much.

still ahead, bloomberg's very own matt miller and self described car geek got to drive the latest model of the lamborghini.

pimm: lamborghini's new superveloce. is fast,veloce light, and will only set you back about half $1 million in matt miller got to speak to the maker, and got to test drive it. this is only the first time

we are doing it, so we have high expectations from the customer side. the customer additions you do. how important is that to the lifecycle of a model? >> we tend to do special editions if we have a good idea, anething that is related to addition like this. it is a unique supplier. foundation of lamborghini. we thought that this was a good match for us. matt: you develop those tires with this car. what does that mean to

lamborghini? how important is the ring is a test for your car? >> it is very important. it is a very long ring, and it has long straight to my difficult corners, so only a car a super sports car that is covering everything is able to do a perfect lap time. there are good on the streetcar on the corners, but most cannot do the violence. this is making the difference between a very proud of the superveloce. our customers tend to use the cards over the weekend. on aimes they use them daily basis, which is very good. and we're trying more and more to bring our customers and fans of the racing with activities to not only go fast and experience the maximum speed and handling, but to teach them what this car

is able to do. from safety, to high speed, and to be the owner of the car. matt: who was the owner of your car? the wall street person, the lottery winner? >> and launch of self-made. they own a business, usually a male. it depends upon the region of the world. asia, north america, and over here in europe. they come from every type of business. but mostly they are self-made. pimm: that was matt miller speaking to the lamborghini chief executive. it is now time for options insight. julie: we're coming up to the top of the hour, which means that we are on the markets. let's take a look at the action today. drop lower in the

stocks, so all three major averages have bounced now. it's try to make sense of from the options perspective. joining me now is juried woodward. he is the equity strategist at bgc partners. thank you for joining us. the lowsint we were at of the session. we were setting up for the work -- worst week in at least a month's time. what is happening today? >> this is a move that they looking for for several weeks. missed premiums have gone very low over the last month. there was not a lot of upside catalyst that investors had point to, with risks in china, and uncertainty about the near-term picture. looks like as pretty garden-variety kind of a move, and more treatable move to anything more significant.

julie: so this is not flesh it out? >> i do nothing so. it is an arguably healthy market to let people repositioned. it also helps people who are putting on hedge positions to monetize those. but you have to be pretty nimble these days. julie: i want to talk about what you're looking at for today. it is a little bit then sir then we usually talk about. i wanted to get into it. theare looking at transpacific partnership, and a chance of passage. what that is point markets. talk me through what effect it could have. let's talk about the premise that markets are discounting mechanisms, that they anticipate changes to future cast flows and they will present into the acid today. assuming that the president gets fast-track authority from the this deally soon, will not be negotiated until the summer, and the real economic develop defense -- economic

e felt forll b several quarters. the big effect we're looking for is in effect from the trade deal for intellectual property and also some supply costs. julie: tell me which were trade is commendable talk about why. >> by at the money calls on the consumer discretionary. and like fulltilt he option is pretty ordinary, pretty low. i think that you're not paying too much of a heavy premium to get into the position. it is you bullish exposure, and it investors to start researching estimates, they will raise the multiple for consumer discretionary stocks and that should track pretty well. they have a lot of the big holdings, they should have positive exposure to greater intellectual property, and also slow0 lower supply chain costs.

julie: i also wonder if they are looking at any obligations on the other hand from the dollar. if we continue to see dollar strength, that might be an area that is exposed to currency risk. a big question that a lot of people are looking at radio to have to take a position on that at some point. i think that with regard to this trade deal, the countries that we are working with here are high wage companies. so the concerns that people expressed about manufacturing and other areas does not apply. this is a different type of globalization. julie: thank you for joining us. more after the break. ♪

pimm: good afternoon. >> welcome to the bloomberg market day. we are waiting results from the chief election.

ifachief election -- f election. out: and time is running for greece to make its latest payment. scarlet: facing a shareholder lawsuit. we will go over that story in a moment. pimm: good afternoon. betty: let's begin with a look at how markets are trading in the midday. equities are lower.