with erik schatzker and stephanie ruhle. erik: ahead for you this hour the greek standoff. the high cost and perceived value in nba. and you will hear from the publisher of vanity fair about what caitlin jeter passes -- cover means for their bottom line. stephanie: 8 million hits in the last day. the youtube behind-the-scenes video, massive views as well. erik: bloomberg news has wrapped up their banned substance -- it becomes after a late-night meeting in berlin. angela merkel held a conference

with the head of the ecb and the european commission. the head of the oecd predicted the two sides will reach an agreement. >> when you have some a people so intelligent and smart and important inflectional trying to get a deal, mike variances you normally get a deal. it may be in the 11th hour. it is always the case but i think there will be a deal. erik: the great prime minister said his government came up with his own plan. a shakeup at the transportation security administration comes after test revealed disturbing laws in airport security. there are reports undercover agents were able to smuggle in items such as fake guns or bombs.

in 67 out of 70 attempts. the tsa says the problems remain a real threat. >> the terrorists go to school on how they can learn from possible vulnerability. >> abc news reports one under covert agent but a screener up -- failed to discover a fake bomb taped to his back. stephanie: hundreds of people in china may have died when a cruise ship capsized carrying more than 400 people when it overturned in a storm on the yankee river. rescue crews were able to rescue several passengers trapped inside the ship. herbalife has gone on the offensive against its nemesis bill ackman. he is called an irresponsible opportunist. it has launched a website called the realbillackman.com.

herbalife denies allegations. we have never seen a short seller go after a company as aggressively as bill ackman has to that is true. by the same token i've never seen a company start a website to specifically go after someone in bill's position. they go on to try to discredit him as an investor. the guy has only had three -- over the last 11 years. if you want to criticize him, i'm sure there are ways to do it. i think it is strange to see a company do this, a company who does not answer questions on conference calls, has refused to engage with him and does not really speak publicly, we have not seen the ceo speak of a

clean quite some time. i am surprised they would launch the website. erik: i actually feel they should have done this a while ago. all is fair in love and war. this is not friendship or the playground. it is money. the gloves are off. herbalife has every right to defend itself. i take no sides here. i am sure they hate me just as much as bill ackman does. if ill is going to do presentation after presentation and find video and handed out to reporters and journalists like you and me and have a tear on bloomberg television and other media, why shouldn't herbalife do its own thing? stephanie: i guess i'm just surprised, a publicly traded company setting up a website specifically against him. he is trying to make public why

this is a corrupt company. they are trying to make public what, that he is a jerk? maybe they should be making it public what a great company they are. erik: they have their own website. all right, we will make that the first you need to know the number two thing you need to know, inflation in europe. euro area consumer prices rose for the first time in six months giving some relief to ecb policymakers who so badly wanted to avoid deflation. 0.9%, the fastest pace in nine months. also, the proof point for quantitative easing. the yen at a fresh new low since 2002 this morning, showing quantitative easing in japan and at least, it would seem, in europe, it is working.

many open questions about whether the cutie actually works. europeans and the japanese doing even more, pushing qe more aggressively than we did here. stephanie: the world's's biggest companies are getting even bigger all with the help of near record levels of m&a activity. among the 20 companies with the largest relative increases in market value, this is based on data compiled by bloomberg. the heartbreaker is those bankers who worked 110 hours per week they will probably not get paid that much more if you put into context the huge success they are having. erik: the larger the deal, the smaller the fee in terms or further more, if we are talking about bankers for a moment, the target company seems -- ceases to exist.

always better to be advising the inquirer. stephanie: now let's head out to julie hyman who has got another for us. julie: auto sales will come out throughout the morning here at analysts are looking for an annual rate aired it is an easily adjusted annual rate for the automakers, a little over 17 million. interesting as a side note to what is going on with auto sales, looking backward a month ford is shortening summer vacation for 16 of its factories. that is to keep up with demand in particular for its pickups and suv's. that would be a forward-looking sign for that automaker. erik: i love the fact that we get monthly numbers from these automator factors. that is what i love. stephanie: give them a little

time. the fact that they have to report monthly, it is so much pressure. i like to give them a little space. erik: in the meantime, apple is taking on spotify. the streaming music business. the wall street journal says apple will launch a $10 per month streaming service as early as next week at their worldwide developers conference. apple already sells as much as 85% of music downloads worldwide. the market is shrinking as more and more people choose to stream their music rather than buy it and build up their own libraries. stephanie: this battle is getting more interesting by the day it we were talking about the success or lack of success that jay-z is having. if you think about how much you use itunes, just three years ago i took my app off the phone the other day. i was like, itunes, do i even use that?

people change their tune overnight, pun intended. erik: i seem to remember it being $8 billion. i want to see what apple can do with streaming. amazingly, it is a rounding error. even if apple builds a business with streaming as big a spot of five, $8 million against a market value of 700 82 billion? stephanie: if apple gets it right you're adding another element to the ecosystem that we will be addicted to. we have to move on. we will get our eye on the global markets today. stocks in europe and asia are mostly in the red while futures are also taking a leg down this morning. on the minds of investors is greece, of course. let's take you to hans nichols in london. what you make of these markets? hans: we have two proposals coming out. creditors putting the fitted --

finishing touches on their proposal. this was done lace -- late last night. they got together in berlin there they are putting their finishing touches on their proposals. at the same time mr. sippers this morning said no we are the ones who will be putting our proposal together. it is not clear whether or not the proposal is a last chance proposal. they have been clear it will not be an ultimatum. on this news, it seems a the euro is reacting positively especially to the idea that these five liters got together in berlin reached a consensus and are apparently ready to send that consensus. stephanie: people are finally thinking everyone is getting on the same page? hans: you came across corky, and that is not to say you have a shrill voice. stephanie: a positive message

out of it? until now with the handshakes and smiling, we're hearing opposite information from the finance minister in germany. do we think they are getting on the same page? hans: no. whether or not there is daylight between angela merkel and the finance minister. one thing that has been clear in the last 48 hours is that the prime minister of greece is almost as strident in pushing for reform as if i miss mr. pair there was earlier an idea that he would come in and clean things up and antagonize some of his colleagues. it does not appear to be the case and just this morning, we heard strong comments that they would insist on striking what they say is a fair deal. stephanie: thank you, hans nichols. i appreciate you saying i do not have a shrill voice.

joining us from london. erik: coming up, what is a business degree worth these days? a look at that question next. ♪

erik: still ahead, we will talk to jerry siegel about his take due stocks still have room for bonds. stephanie: it is time for our headlines of the hour. the senate is scheduled to vote on extended programs today. lawmakers will consider a house bill that will reauthorize surveillance but it would eventually phase out and is a's's authority to collect and store records of phone calls. president obama back to the house birth -- the house

version. walmart will raise and starting pay for with a 100,000 u.s. managers and workers in nationalized apartments. walmart has been under pressure for the way it treats employees. the chain says it will increase minimum wages or half a million entry-level workers. a high profile gender discrimination gives out in silicon valley. a jury rejected the claim that she was discriminated against as a junior partner at venture or -- venture capital firm perkins. she claims she was subjected to a sexy charged atmosphere and was fired when she was complained. she is now the interim ceo of reddit and those are the top headlines of the hour. erik: elon musk, the comcast chairman and ceo wilson, neil blumenthal, even at one point warren buffett, they are just

some of today's industry leaders who got a business education at wharton's. jeff is with us now. good morning to you. let's talk about the value of an mba in today's economy. how do you prove it is worth as much as it was a decade ago? quite it is a very good question and one that all of our students ask. i think the answer is the proof is in the pudding. our students are getting spectacularly good jobs at high rates pair that is not bad. if you look at the marketplace i think you see a lot of schools now having to think much more about convenience, part-time and evening programs and maybe moving online. for his schooling this, i think the face-to-face experience getting more valuable and not less. stephanie: what are those

spectacular jobs? traditionally, people viewed it as a gateway to wall street. is that true and is it what your students want? >> we still do well in wall street and goldman in places like that and hedge funds and private equity. in a lot of ways, invented those industries. i think a few look at our profiles at the moment, it is interesting. one are going to financial services but about another third go into technology and start us and i think it tells us a lot about the trajectory of the economy. stephanie: it traditionally is not the school that breeds students want to go to technology. >> stafford is a good place and it happens to be right next door to silicon valley. that helps them, but we have a

fantastic facility in downtown san francisco just under the bay bridge and south of san francisco is a booming tech help . i think if you look on campus of course it is true that what is known as the finance school i see the sign every day in my office. but if you look under the hood a little bit, we have a mage -- an amazing range of activities on campus and i think our students understand they get incredible and broad-based value in education, where the number one attribute's analytics. we take data really seriously and we take its analysis really seriously. if we are entering a big data era, then that education looks pretty good. erik: a year before the crash, 48% of graduates went in and got jobs in finance and today's down to 35% of what is the more ideal number for you? >> i do not think we have an ideal number. the market is speaking at the

moment and as i said, i think having a nice allen's -- balance between finance is enough for me. we tend to think about entrepreneurship as basically being something that happens in a startup in the bay area. what we know some of whom you mentioned, there has been incredible entrepreneurship in the financial services sector in the last decade or so and alumni have been really involved in that. stephanie: what percentage of your students are women? >> one thing i should remind everybody, we are very unusual among our peers in that we have got 2500 undergraduates and it is fair to a our undergraduate is the program is the best in the world, but mba, over 40% of our entering >> are female and that is also true at the undergraduate level. i think that looks pretty good

among our peers, actually. erik: collect -- let's talk about other industries. finance, still the destination for 26% of wharton grads. technology is up to 14%. after that, it tapers off to radically. health care, only 6% of your graduates. manufacturing, less than 2%. why is there not more diversity in the destinations for graduates in terms of the sheer numbers? the percentages speak for themselves. >> it really depends on how you measure stuff. the number you used therefore technology, which i'm sure is one of ours was 14. but if you have a broader definition of technology startups and entrepreneurship, we get up to about one third and one third of financial services you also had a small number of media and entertainment.

when i think about that i think about analytics. stephanie: we're out of time. ♪

stephanie: welcome back. this is my partner, erik schatzker. dollar general's revenue and sales both missed estimates. shares are up about 3% in early trading. the senior equity research analyst at jefferies has been quite bullish on the stock. what is it you like so much about dollar general? i'm guessing the prices. daniel: it is squarely in the value space where i think american consumers are focused

here it but he has got a story i inc. he will be able to capitalize on the consolidation in the space. family dollar and dollar tree are about to combine. you're going to see it accelerate at dollar general and relative to other retail earnings, the dollar general numbers are actually ok. sales slightly below consensus at 3.7. it is still not that and they pull off a nice cps be at three cents by better gross margins. erik: the outlook, it is consistent with what they have released before and seems consistent with your target thesis. did you see anything in today's's report that suggests there may be room in there for your upside thesis to play out? dan: i think the upside was gross margin. we thought there might be gross -- and it was there.

the company is doing a better job on initial markups and i think one of the callouts to their credit was better transportation costs. a lot of retailers complained about the port issues in higher trucking costs and dollar general navigator that well. stephanie: in terms of store renovations, many of us are scratching our heads, is this an efficient use? does the dollar general customer care? one would think they're there for great prices. dan: store environment is also very important. we have really example's where a lack of consistency in the store experience led to a share loss. walmart in particular, family dollar in particular. dollar general has been maintaining the stores consistently remodeling and relocating and keeping customers happy. to kind of get back a bit here on where the upside potentially

this year, one of the things we are seeing is better confidence and lower income households. as confidence improves along with jobs and wages, that is potentially set up for better sales later in the year as well. erik: part of your thesis is predicated on the point you made a couple of minutes ago, that the family dollar and dollar tree will be distracted as they were to integrate as part of their merger and dollar general has this opportunity. what if they aren't that distracted? what is the next move that dollar general would need to make to take advantage of the opportunity? dan: dollar tree has a big opportunity here but also a project of integrating 8000 stores. it is unprecedented. it will be a massive project. integration will have hiccups along the way. dollar general may be able to benefit from that longer-term,

dollar tree could make those stores better and that could potentially be a threat at some point but i think in the near term, dollar general is well-positioned. erik: we thank you for joining us this morning. an analyst at jefferies and we are talking about the dollar store business. it is time now for some of our top stories. dueling proposals over greece and it's locked up bailout funds. the greek prime minister says his government submitted a plan aimed at unlocking the money. just as creditors were coming up with their own proposal and that is why we call them dueling plans. the president's plan came after an extraordinary meeting in berlin. the heads of the imf, the ecb, and the european commission. new push back in fifa in the corruption scandal in the international soccer governing body. the number two official under fifa president sepp blatter

u.s. prosecutor calling a bride. a statement of its own said the official was not involved in that payment and that it was approved by a former finance chair who died last year. i guess he will not answer any questions about this. one of those competitions that is bound to make someone unhappy. agreed to make spain the number one restaurant in the world. this happen in a ceremony in london last night. they serve modern spanish suzanne. dinner and wine would cost more than $300 per person. one french chef to says you do not even know if the judges it in the restaurant. you could call it the world cup of restaurants and it is subject to vote buying, allegations of bribery and corruption. stephanie: we hear the same thing about oscar voters. these are industries of passion. food, entertainment.

somebody who loses, of course he will say he did not lose fair and square. now we will get you breaking news, auto sales for the month of may are coming out now. fiat and chrysler, we just saw that number. let's go to julie with the latest. julie: this is the best again for fiat chrysler in a decade. it is partially -- it is artie seeing strong sales of its jeep and ram pickups and add to that the sedan sales, and that led to a 4% gain. 200 200-2000 227, excuse me. that was the number of vehicles north american delivered last month to we will hear from gm and ford in the next hour. stephanie: thank you, julie. erik: still to come, exclusive

interview with the russian foreign minister sergei. why he says the latest fifa probe is all for show. ♪

erik: welcome to our viewers around the world, in london, and elsewhere, and possibly even moscow. relations between vladimir putin and president barack obama are pragmatic according to a russian foreign minister. in an exclusive interview here is what he said today. >> president putin from time to time toss to president obama over the phone. they are very pragmatic and they

discuss specific areas of cooperation where both countries could benefit and we do the same with john kerry on a much more detailed level. i would call it the realization of the need for normalcy. erik: for more remarks, with us from moscow, what does he mean? how do you decode a word like pragmatic? >> i think this very much reflects that they can work with the u.s. on specific issues. of course, the overall relationship remains very strange. but for example, on efforts to combat -- the islamic state on negotiations surrounding the nuclear program, there are areas of common interest and for russia, this is an important element of its foreign policy and it wants to be taken seriously by the u.s., and i

think today what was interesting for me was how he was very moderate in his tone. he is a tough interlocutor, but here, he really put out the message that russia and the u.s. are managing on certain issues to improve their relationship. erik: where else do they have common interests beyond isis? >> as i mentioned, there are the talks on iran passes nuclear program, terrorism in general is a threat and they of course want to get back into the g7 which is to be the g-8. they feel that they have things they can contribute in terms of the world economy. primarily, it is anti-terrorism that is the u.s. and russia today. erik: one issue that has captivated the world's's attention americans included,

who are not known as the world's's most passionate soccer fans, is the fifa scandal. i was fascinated to see what they had to say there. we will play it for our audience now. >> those accusations and whether they are true or not it is up to the investigation of the court to decide. what he did say was the timing of this show was certainly scheduled as a way to do rail the electoral process in fifa. i do not think anyone thinks of targeting the world cup in russia, no. erik: i suppose it should not surprise anybody that he does not think this should cause the cup to not be played as scheduled. what do you read into the way he

responded to those questions? >> he said there was vastly no evidence of any wrongdoing by russia. a swift investigation into the way in which the bid was handled. i think basically that is what russia was counting on, that despite the scandal, he was firmly in place. certainly, russia sees the hand of the u.s. in this. they will not comment on the accusations. they said the timing of the arrests, which took place just before his reelection, ones and -- was an indication against him. erik: anything but unanimity. thank you. stephanie: when we return, a

cover that broke the internet yesterday. some say that it won the internet. caitlin jenner's thread in vanity fair. how this is exploding into the digital world overnight. stay with us. we will have the publisher of vanity fair. ♪

stephanie: gross strategy, how it plans to take back market share. erik: now to the top headlines keeping us up to date, the best for fiat and chrysler in a

decade, surpassing estimates. sales of the sedan sword. also strong for the ram pickup and the jeep suv's. a congressional hearing today on last month's fatal amtrak crash focuses on safety. lawmakers want to know why amtrak did not spend the profits it made for automatic speed control. traveling more than twice the speed limit, eight passengers died in the crash. fitbit on wall street. the company's's plan ipo, amending its registration plenty to offer nearly 30 million shares at a price of $14 to $16 per share. the company will trade on the new york stock exchange under the appropriate ticker. those are some of your top stories for the hour. stephanie: yesterday, we said

goodbye to bruce and hello to caitlin jenner. vanity fair released this july cover yesterday and it has been nothing short of explosive. i want you to check out these statistics. 12 million people have watched the behind-the-scenes video of her photo shoot. vanityfair.com has reached record traffic. it tended number one on both twitter and facebook right after the cover was released. a most tall million followers. even the president tweeted at her. the publisher and revenue officer of vanity fair, a big day, a big week, congratulations. what does this mean from a business perspective? >> i think this is part of a

continuing story with two things. big cultural moments. last month, some of the numbers you gave us we had our biggest single day of traffic on the website and that was the release of the star wars video. that gave 1.5 million visitors. the numbers are beyond anything we have ever seen. it took us to does ours -- the famous cover she did with the champagne glass. it is beyond anything we have ever seen. erik: that is what we really want to know. how do you make money off of it. >> digital newsstand replaces the real news stand. it allows us to do t does things. for the first time, an innovative pay wall so we were sending people to go and buy the issue or described -- subscribe

to the magazine. if you do that, you get the entire article. it is the first time we ever did a cover and released it a full week in advance to get the story online first before we get to the magazine. that allows us to make money and it also allows us to serve advertisers on the site. that is new. erik: will we ever get to the point where they choose to advertise in the printed magazine? i do not know whether this is possible probably not enough runway left, but if the advertiser new caitlin --caitlyn jenner was on the cover, when they want to be a part of the print edition? >> it is an interesting part of

our conundrum for it we have certain issues like our hollywood issue. we see a huge spike in the number of advertisements we get in those issues. it is more difficult when we are doing it around news events like this. advertisers would love to embrace and now we have seen how well it has been received. we knew after the diane sawyer interview. this was well planned when the interview happened. a major outpouring. it was our first indication this would be a well -- a warm welcome. stephanie: six months ago, we talked about the digital resolution -- revolution.

>> we are a monthly magazine not competing with the internet. if there is one magazine left on this earth, i would make it vanity fair. we do something we tell great stories and we are in the hands of great writers and we team those up with great photographs. stephanie: so what is the strategy in terms of how you maintain, you have 8 million unique views yesterday how do you keep it going? >> there will always be great spikes in traffic. the editor in the business knows how to capture the story and find that scoop. think of the reliefs -- release of the first photos of cruise. these are great moments and he has made it the mission to be at

the center of it. it is a digital story, and then you commemorate that or memorialize that. there is a reason he chose vanity fair. he wanted to live on with were with the magazine. stephanie: she. >> right. erik: knows a few things about making money. who is exploiting who? >> i think that is a great question. without covered well in the times this morning. everything is a campaign. everything is a coordinated campaign. we are admittedly complicit in that. it is part of the nature of what we do. we are capitalizing on this event and capitalizing on the twitter account and this cover story and many other things for profit.

this is a capitalist and commercial business. the digital resources when we just had a magazine. it is a great move forward as a media business. this is the way we want to live. we want a dynamic and robust magazine and we have amazing moments. we would be in great shape. stephanie: congratulations. a huge success for vanity fair and caitlyn jenner. erik: up next, an update on early stocks moving ahead of the opening bell. ♪

erik: let's take you right now to julie hyman out of the newsroom with three stocks to watch ahead of the opening bell. julie: we have been recapping of these headlines. the company had its best may in a decade, as well as cheap and pickup sales per you can see the shares are lower. it is confusing as to why. the estimate was 2.6%. we will continue to track those shares. also looking at deutsche bank this morning. the ceo is speaking at a financial services conference in new york they are trading higher by about 2%. u.s. boosted shares, i believe. maybe this are german shares. not seeing anything cap -- terribly radical. he says the companies to grow its timer equity business that business is profitable for deutsche bank. he said it did look for a

geographical mix change when it did its review of the business. finally looking at cracker barrel this morning. the restaurant chain is sending it national dividend of three dollars per share and boosting its quarterly dividend by $.10. the company is also raising its 2015 earnings-per-share forecast as well as comparable sales forecast for the full year. stephanie: thank you so much. cracker barrel is a favorite of. spirit still ahead, jeremy siegel. we will take you back to the city of brotherly love. erik: valuations in the stock market. dr. siegel will answer. ♪

>> live, this is market makers with erik schatzker and stephanie ruhle. erik: good morning once again, everybody. it is our new time, 8:00 to 10:00. stephanie: we have had a great hour behind is a great one ahead. a potential stock market bubble. here is a look at the top stories is morning. kris pet -- greece creditors unlock bailout it. bromberg -- bloomberg news

reporting they had wrapped up their plans in substance but are still polishing up the document. this comes in the wake of a late-night meeting in berlin. angela merkel hosted that's of the imf ecb and european commission. talks went past midnight. >> when you have so many people so smart, so influential, trying to get a deal, my experience is you normally get a deal. it may be extended to the 11th hour. i think there will be a deal. stephanie: meanwhile, the greek prime minister says his government has come up with their own plan for no word yet what either of those proposals contained. a shakeup to the transportation security commission, including

the reassignment of the agency's acting chief, after it was revealed that there are very big flaws in the airport securities. reports that undercover agents smuggled in items like fake guns or bombs in 67 out of 70 attempts. officers will be retrained and procedures will be officially changed. the tsa says the problems are major threat. >> the terrorists do have a threat. stephanie: one undercover agent was stopped 20 soften alarm but he failed to find a bond taped to his back. erik: a corruption scandal in the international governing body. fifa president seth blatter.

fifa issued a statement saying the official was not involved in the bribe payment. it was approved by a former finance chair who died last year. herbalife has gone on the offensive against billionaire hedge fund manager bill ackerman -- bill ackman. the company calls ackman and irresponsible opportunist. it has started a website called therealbillackman.com. those are some of your top headlines. stephanie: new research from goldman sachs pitts two economists in a head to head. both asked, if u.s. stocks are overvalued, he says concern has risen and a correction could be coming next year. jeremy siegel takes the opposite view. the professor joins us now. what is your thesis?

>> my thesis is basically, that although yes, i agree the current valuation of the market measured by the standard price-earnings ratio is a little bit higher than the historical average, i think a higher ratio is fully justified in a record low interest rate, and even when the fed raises them they will remain low on the historical standard and in my estimation and my colleagues, lower discount rate means a higher average valuation for the stock market so i certainly do not believe it is overvalued at current levels. erik: that is a key point. where do you think the funds will peak once the federal reserve is at the tightening cycle?

>> my belief, it and it is one of the rare times i agree with bill gross p are you know we disagree a lot on the stock market in the last five or six years but he named the new neutral of the fed funds rate as 2% and my own calculations confirm the average fed funds rate over the next decade will remain at two. it does not mean that at the peak of a tightening cycle, it will not be above two. three or maybe four but it will then be brought down below two down to one or one half when the economy softens. we will have lower average number of interest rates. the fed funds rate might peak above two but i do not think it will be the 4% we know the fed has in the plot that it puts out every coder in the economic projections. stephanie: in terms of

valuations, is very number range that gets you concerned? >> my feeling is if we get well beyond 20, 22 or 23, we're definitely at a rich valuation. in perspective, the stock market got to 30 price-earnings ratio in 2000. that was a time of much higher interest rates. it was a clear valuation of the market and even i was bearish in 2000. those levels were not justified. but i can certainly see 18 to 20 as the new normal valuation of the market, rather than 15, 16, which has been the valuation during most of the postwar time. erik: goldman sachs went back 17

years and looked at a number of different kinds of assets. and they came to the conclusion that on a percentile basis stocks look overvalued but other things look more overvalued, like tenure treasuries, mortgage spreads, volatility and mortgage basis. do you agree with that? >> yes, interest rates will rise. we have a 10 year a little bit above two. i think it could go to three or three and a half. probably, that is a new normal 10 year. it is pretty much a historical spread there. yes, bonds are much more expensive than stocks but my calculations safe the tenure guest 3.5, and that posts losses

on the bondholders, stocks at that level should be valued 18 to 20 at 3.5% of a 10 year treasury rate. so yes, i would say bonds are more overvalued than stocks. i do not think stocks are overvalued. i think they are fairly valued given the new reality of lower growth and slower inflation that i think the u.s. economy will experience in the last 10 years. stephanie: thank you so much for joining us, professor siegel. erik: up next, the restaurant known for its rotisserie chicken wants you to check out its menu. the company ceos of next. ♪

erik: and there was a bankruptcy and now there are fewer than half that many. boston market opened just three restaurants last year. george is here to talk about expansion plans. before we get there, i want to know who you are competing with. boston market markets itself as a healthy alternative to mcdonald's. who do you see as competition? >> we are a bit of a hybrid. in the afternoon between 4:00 and 6:00, we almost compete with supermarkets because busy moms have a choice to come to boston market where it is convenient to pick up a family meal, or go somewhere else, do their shopping, and at the same time pick up food to put on the table. stephanie: a grocery store to

get rotisserie chicken or go to boston market. >> not only do you get great rotisserie chicken, but it has high standards about how long we serve at you after we cook it. more important, you get the size that come with it. it is the full meal, the full solution, to put the food on the table when you get home. stephanie: let's talk about potential changes. there is a big push for healthier options, for meat to be served that has higher standards. where do you stand on all of that? when you talk about mom's -- serving dinner, it is important. >> no added hormones or steroids. at the same time, we have 100 meals that are 550 calories or less, steamed vegetables steamed potatoes. we are looking at taking our rotisserie platform and cooking turkey in the rotisserie. cooking the rotisserie really

makes a difference about providing a healthy product. then we will cook vegetables as well down the road. erik: the chicken is fresh and what about everything else? how much of the menu is re-thermal lysed? >> we bake our cornbread throughout the day. fresh vegetables that we seem as well, we focus fresh ingredients on our restaurants. erik: stephanie mentioned many restaurants are trying to offer healthier choices. there is something we might call ethics inflation happening in the food industry. where does it know next question mark -- next? what is the next phase? >> the business has done so well lately because we are very clear and transparent about the source of the product and the fact that we -- we focus on the product,

we focus on a fresh product it is not change, it is important that we listen to the customers and really understand what their concerns are. sometimes, scientifically, it might be that the product is ok, or the ingredients, but at the end of the day, it is what the consumer senses and fields -- feels. stephanie: woody think of shake shack question mark >> it is an interesting concept. erik: you must learn from other people. look at the private equity firm out of brazil. the wizard, running fast food restaurants, burger king what can you learn from a guy like that? >> i always look at sustainability and you have to look at three or four years of sales.

for us it is sustainability and improving your business year after year, and that you cannot tracked more and more customers into your restaurants. stephanie: my mother loves boston market. >> good to hear that. stephanie: thank you for being here with a spirit we will send you out to the newsroom where julie is breaking down ford auto sales. julie: down 1.3%. the series of pick us and sales, fusion sales down 7.5% sales of the escape seb down 8.3%. overall the smaller than estimated 1.3%, we'll see how the shares trade. it looks a little get a little bit of a lifting shares at 1%.

erik: thank you very much, julie. stephanie: put your boxing gloves on it when we come back, around 10, herbalife versus bill ackerman. they are fighting back with a website dedicated to just a big bill. ♪

stephanie: herbalife called bill ackman and irresponsible opportunist. ackman has shorted herbalife's stock -- this is kind of unheard

of for a publicly traded company to create a website to battle against a short seller. . thinks it is normal. erik: no, you miss conceptualized. stephanie: eric thinks it is justified. i think it is super out of character. tells what you think? -- tell us what you think. he cannot hear us. it will go right back to you and me. i'm happy to continue this conversation. in all sincerity, bill has come out in the most aggressive a voice. i cannot think of another short seller who has gone on a crusade like this. erik: he appears to take it very personally that he is offended

he has taken his shorts and done something that few hedge managers have ever done. i would say bill ackerman has gone on a campaign unlike anything else we have seen from a short seller. stephanie: why is this a good move for herbalife and how does this help? >> investors for the last years have been wondering why herbalife has been more aggressive, cut back on an ongoing basis. he has made many speeches, so it seems herbalife is finally on whatever comfortable footing now to buy back with the website. >> does it smacks of desperation? >> i am not hearing from folks that they believe it is.

that they would actually come out and go after ackerman in this way. stephanie: what do we think bill's's move will be? he has been out there asking herbalife to answer questions asking herbalife to engage. the fact that they have not, but now they are doing this, what does this tell us? >> if anyone thinks he will go away on this, i think they are wrong. he has got to wait it out. stephanie: we have got to leave it there. it will not be for long. ♪

erik: the dutch find mr. -- the dutch prime minister -- far from a deal with this is shattering some of the optimism that emerged overnight.

the greek package, because degrees have submitted their own proposal, have to meet certain economic positions. creditors, the eurozone and effectively -- that is the latest from the dutch finance minister been a moments ago. we are a few minutes from the opening bell. a convenient opening for our conversation with tracy, the executive editor of bloomberg markets, and mark, the ceo of capital management. we have got to start with greece. tracy: we have to start with greece today. yes. this is a disappointment for markets. we have reports out the creditors were quote -- to a finalize deal. it is an offer. at the same time, we had the

greek government coming out and saying they were close to finalizing their own version of the deal. there was a great quote from the greek prime minister saying greece is the one that submits the plan. it is obvious there is a lot of disagreement here. >> i think there is a lot of tempest in a teacup. i do not want to be in that camp. i think there is no question in our mind that they will come up with a solution. they cannot afford to pay right now. they need to extend. it is pretty popular, and it has worked and it will work. there is a lot ego, shall we say. tracy: signs of inflation in the global markets. we have workers in japan seeing wages rise faster than the cost of living for the first time in two years, which is pretty

massive. in europe, we have signs of inflation, and we have seen the euro get stronger on the back of that. stephanie: he is a beneficiary. >> look, they have no choice. the ecb had to pick up the the -- the baton. the fed said, we're done for a while. the fact that there is a little inflation in europe is a lot better than the dreaded d-qwword. if they do not continue to ease -- stephanie: jim's's favorite

short, the economy that the tesla took up the government paired how do you not love it? >> they just sold $2.5 billion with a 100 year maturity. investors were more than happy to take this debt from a junk rated brazilian company. >> this is one of those assets that will exist. yes, they had a terrible government that was stealing. i wrote in one of my presentations, when my baby steals from me, she goes to rio. the ceo was taking money and heading off to rio. but she is gone. she'd is to go as well wow -- she needs to go as well, but i am on the other side of this one. >> you guys might have heard the

opening bell moments ago let's take you to julie hyman, who has some not early movers, but more breaking auto sales. julie: i have got both. general motors coming out with auto sales up 3%, better than estimated, much better. analysts were only looking for a gain of 1/10 of 1%. i'm not see many more details yet in terms of what may have done well during the month. this comes on the heels of both fiat, chrysler, and ford coming out with numbers that also beat estimates. it seems as though it may have been a strong month overall for the automaker. we continue to look for details on that. more sentiment coming from analysts that they are not so sure about that deal. the analyst is struggling with how the deal will add value to shareholders over the long-term and also, he disagrees with the

assumption of a 7% compound annual growth rate. going higher has been dollar general. first-quarter earnings beating analyst estimates, as did sales, which came pretty much in line with estimates. comparable sales rose by 3.7% and gross margins came better than estimated as well for dollar general and those were up by 4.6%. >> thank you. i want to the back to the ceo of capital management, $4 billion,'s running all that money right now. >> our favorite market right now is japan and it has been for a while p are we like health care a lot, in particular pharma not necessarily biotech, but by a pharma. i like technology, i still like china. stephanie: not concerned that

technology is feeling overvalued in any way? >> we feel their pockets of biotech and small tech overvalued. think of apple. apple is cheap. the ratio is lower than the market. its growth. they made more in the first quarter than the bottom 400 companies of the s&p for the last five years, and one quarter. stephanie: are there s&p companies outperforming just because the markets move up? do those companies pale in comparison? >> absolutely. indexing and etf's i will not use the word a dumb, but they must buy things, no matter what the price. people put money in the basket, and people are flooding money in index funds, which they do all the time, not saying this is a market top, but they tend to do that, because they like the cap

waiting, so a lot of companies rise with the tide. >> can i beat you up for a moment? why isn't it performing better? you are able on japan and i do not see japan among your top holdings. i do see american airlines. this is a mutual fund that you started managing. there is a lot of leverage exposure to u.s. equities. >> it is a good question. japan has been great. we have got about 7% in japan. we have got more. they were quiet january and february. we did not have enough exposure in china. we do not have enough exposure there and that was bad. the biggest exposure was airlines and airlines were great for us last year. really tough in the first quarter as people i think are confused about the fact that the

average price of oil last year was $93 and this year it is in the 50's. for some reason, the thing going from 50 to 60 hertz airlines. it doesn't it i think it has been fantastic the rest of the year. finally, we lost a little bit on greece and i think greece has yet to come this year. erik: you have got cash and treasuries in there. why? >> it is designed to replace a 7030 allocation fund. it is supposed to be balanced. we have got cash on the short end and nothing in the belly. stephanie: what do you hate? we only have got a few seconds left? >> i'm scared of global bond markets. i think there is a bond bubble. i will spend time later this

afternoon with julie talking about it. i wrote about that in my letter that he is concerned about a government bond bubble and then elliott manager paul came out today saying he is scared of that as well. i think, you know, it is scary. erik: but this is precisely what every bank in the world incentivizes you to do, to buy bonds and sovereign debt. they are buying sovereign debt. >> they are. they are doing a pretty good job getting people out of cash and bonds. erik: if you could step in front of the central bank bid, you could make money. >> yes, but i tell you what, i like short european bonds and long treasuries. that seems like a good trait. stephanie: mark, thank you so much for joining us. he has got to go see julian. a little more important than eric and me.

we will be back with more. erik: we will talk about why the past month has been a monster for u.s. automakers. ♪

erik: in the meantime, a monster truck rally, americans bought more trucks and cars for the 25th month in a row. why? chrysler made sales up 4%. here with us now to talk about auto sales is matt miller and jamie butters happens to be in new york city as well.

>> i feel you do not like to say monster truck rally because you do not appreciate the genius of that. erik: i prefer the radio advertisements. matt: sunday, sunday, sunday. the seasonally adjusted average selling rate is up, but the action -- actual sales rate and units will be down. people were like, how could that possibly be. there was one fewer day this year, so that explains the discrepancy in those two numbers. >> it is even harder in michigan to buy them on a saturday. you cannot buy them on a sunday. dealers are not you cannot buy them. nowadays, people shop online,

and people got a lot of their shopping done sundays even if they cannot do the transaction. klassen those people are buying a ton of trucks. they continue to do so. it has been a trend i thought just since the recession. i set imo is shocked to hear that people buy more trucks. i looked at the longer chart, back 20 years. it is really more surprising when americans are buying small cars. it is a rarity that only happens typically during recessions or when gas prices take off. stephanie: where do suv's fall? >> it is a huge part of the trend. what people will be buying is a lot of fort escapes and hondas and now even the smaller crossovers they get a more favorable fuel economy and regulatory environment. matt: and keep in mind fuel

economy is still approaching 30 miles per gallon. do gas prices make that much of a difference is the question. >> i'm looking at the fort headlines right now. the s series sales are down almost 10%. >> and the problem here is they cannot build them quickly enough. they came out with a new truck, and aluminum truck. >> they have been running one factory for the last nine months instead of two. >> they would be selling gangbusters? let's presumably, yes. a fully loaded, everyone who sells is at the top of the line. in three months or so, by the second half of the year they should be going buster. >> usually, automakers shut down the summer because people do not buy cars as often or as much in the summer. but they're cutting it short because they cannot build those fast enough. the fiat chrysler ceo predicted

ford would have difficulty building these new trucks because aluminum is a harder material to work with than steel. they have been doing still for a long time and it looks like they cannot produce them quickly enough to meet demand. he is having no trouble producing cheats quickly enough to meet demand and it is very high. the truck story plays out nowhere better, as far as sales units as far as sales i am, then at fiat, chrysler. they are doing incredibly well with cherokees, which we count as trucks as well. >> they have always been the most truck heavy pier 1 i moved to detroit 15 years ago they were selling 80% light trucks. minivans also counted as light trucks. the minivan franchise. they are still very high although the minivans are way down as they are retooling that factory. stephanie: i agree with you, i never want one, but let me tell you, every once in a while when i get in one, it is such a pleasure when the door just

opens, when you walk straight into it. i hate how much i like it. but it is a pleasure. i am never getting one, but gosh, i secretly love them. have you ever been in one? >> a minivan? of course. >> step up in the minivan, as opposed to sitting down. >> i'm hearing our producer saying to wrap it up. he is angry with us now. >> we will take this opportunity to look at a few of our top stories. details are out on fitbit plans ipo. the company plans to offer a 30 million shares at 14 to 16 dollars apiece. the company will trade on the new york stock exchange. the last quarter generated $337 million of revenue, $48 million

of net income. it is a profitable company. the associated press says agent peters will participate in a voluntary practice today after nine months away. he missed the final 15 games of last season after facing accusations of child abuse in texas. chevron is indefinitely delay a multibillion-dollar oil project in the gulf of mexico. some cables to tether the bigfoot platform. that is indeed me in the video. i have been to see the platform. there were no spills or injuries. the situation is serious for chevron, because it may threaten the ability to meet its target by 2017. the platform is due to start pumping oil late this year. that is me looking at the platform in december when it was tethered to the texas coastline. it is now being towed back into

shallow water. stephanie: i cannot wait to see all of that. in the wake of a corruption scandal, we have one bold idea from bloomberg feel on how fever could make a stick. stay with us. ♪

erik: coming up, the executive vice president of retail operations will be there to discuss this the power nitro brand of gasoline and the state of business coming up. stephanie: but we have got more to cover here as activations of bribery unfold as the road pauses most powerful soccer organization fifa, there is a looming question. can fifa actually be fessed -- fixed?

a bloomberg columnist has an intriguing idea. how can fifa be turned around? it seems like this problem has been going on for decades. grexit as. >> it has. my suggestion is let's make it a publicly traded company, but most importantly, let's give it shareholders who are going to hold its feet to the fire. stop these ridiculous practices. melting away into people's pockets, and most important way, let's add transparency to the process by which the world is awarded every four years so it is done on merit and not on bribery and not on who leaves the biggest brown envelope in someone's hotel room.

stephanie: how would this happen? this correction comes in the senior parts of the organization. how do you make a change like this? >> 209 members of fifa. the smaller guys seem to benefit disproportionately. gross thomistic product, feeding -- if you look at europe, where the game is most actively played and where most of the money is, the european organization has more than a quarter of membership. if they threaten to boycott threaten to take members away, you could maybe to get -- get to a stage where you could threaten to hold an alternative world cup situation then it could force change. but someone has got to get serious about this and really start saying to fifa, it cannot be business as usual. there elected the president last week p are not charge of

anything yet, but the department has a roster of existing executives it has already subpoenaed. you cannot have an organization of a beautiful game, the mode -- most-watched sports in the world, acting the way it has come a continuing to and pretending it can just carry on the way it is making it a public company, and some of its bigger members will have to force the issue, that is a good solution. erik: criminal charges were not enough to bring about a change in fifa p not yet are what will it take? >> it will take more resolve on the parts of these members. the game will carry on the matter what happens to fifa. every dollar that goes into corrupt officials pocket is a dollar not spent on the grassroots for the sport. tarnishing what is one of the world's brand names, you're going to want change and you have got to push for it. stephanie: i love the idea.

let's see if something like that could happen. before we go, it is time for one of my favorite parts of the show. picture this. the oldest woman on wall street is turning 100 years old in august. irene bergman has enjoyed a long story career which started back in 1942 after her family fled not to germany. her advice, do not do anything stupid. she says in this business, you have to get the confidence of your clients. she admits one mistake. i missed apple totally. it was too much for me. erik: so much love lost. moving more than one million padlocks from the bridge over the past five years couples have attached initial love locks to the bridge and tossed the keys into the river below. after 45 tons of metal to get

the bridge's fragile mesh, there is a structural issue. french officials thought they might completely detached. there is no plan to fish more than 700 pounds of keys out from the bottom. stephanie: we are going to talk about picture this. there is only one image we can talk about because if you miss it, you have been living under a rock for the last 24 hours. it is caitlyn jenner the former olympic champion, and reality star bruce jenner. that if there features him after his transition to caitlyn jenner . jenner tweeted from her new account saying i am so happy after such a long struggle to be living my true self. the account said a new record -- set a new record. after spending 10 seasons as the patriarch keeping up with the

kardashian's, jenner will have her own show on e! chronicling her new life as a woman. 10 million views, a big deal. that is it for "market makers." i will see you tomorrow. ♪

>> it is 10:00 in new york. >> welcome to bloomberg markets. >> we will look at the latest auto sales numbers, and what they mean for the thickest company running america's gas stations. >> a bloomberg exclusive.

why relations between russia and the west are not as bad as some think. >> vanity fair introduces the world to caitlin jenner. we will hear from the publisher on how it got the worldwide exclusive. betty: good morning, i am betty liu. erik: i am erik schatzker. betty: julie hyman is in the newsroom with the headlines.