they say they are a long way away. we will get the latest in berlin. the: it is a big month for automobile makers. some are celebrating their best may in years. olivia: time is ticking for apple. -- a watch is taking a new long time to load, can apple fix the problem before it is too late? pimm: good afternoon. i am pimm fox. olivia: and i am olivia sterns. let's look at that market, stocks lower after a three-week low. investors weighing economic data and potential progress in greek debt talks, in particular, the fact that inflation in europe came in better than expected. also, what is showing in the commodity market and see what is moving in oil and gold.

1.1, one quarter percent to 60 and one dollar nearly. gold futures higher end up about one third of 1% and trading just below $1200. wem: the dollar falls and see commodity prices increase. let's stick a look at the fixed-income income markets and what is going on with the 10 year, two .27%. a little bit of a selloff. also, as so often the 30th, 3.03% for the long bond. finally, a look at currencies, you can see the strength of the euro versus the u.s. dollar. the euro increasing to 11129 and goes all the way down to its a what is going on with the pound. also a big move higher. strength in the pound versus the 1.5331.k, top stories crossing the bloomberg terminal at this hour. the big the automobile makers are beating sale estimates for the month of may. general motors posted at the percent gain, that is the best

performance in may since 2007. analysts had forecast sales growth almost flat. e-mail, fiat chrysler had the best may in one decade, u.s. sales rose 4% last month, beating estimates and the 200 sedan sales soared. ford sales actually fell but not as much as analysts expected. ford brand sales were down more than 1%, lincoln sales were up almost 4%. meanwhile, nissan sales also fell less than expected and honda sales in the united states rose more than 1%. analysts expected a drop of more than 4% at honda. the federal reserve governor says the weak first-quarter had a time to before rate increase. in a speech in washington, brainard said there is value to waiting for more data to see if the readings on jobs and inflation improve. there is an the net, value to watchful waiting. while additional data helped her

find the economy's underlying momentum in the face of headwinds, broad. if the label market strengthens further and inflation readings continue to improve, liftoff could come before the end of one year. pimm: before the end of the year, all right. the weak first-quarter gdp reading has given federal reserve positing -- readers pause. friday, the second reading on the u.s. economy showed .7% of the decline. greece has come up with the proposal to break the stalemate over its belles lettres program, so have european credito. they are still not close to reaching a deal that would avert a greek default. ahead of the european finance minister says there has been progress that not enough. until greece comes up with economic reforms that creditors won't sign off on any agreement to give them more money. olivia: the apple watch has a punctuality program -- problem.

the apps are slow to load. new tools foriled the device. the upgrade will be one of the key highlights and that -- in the annual conference in san francisco next week and they're already about 4000 apps for the apple watch. there is software that runs in the device and apps that run on the iphone are controlled via bluetooth. managers at citigroup new about efforts by thomas hastened to manipulate benchmark interest rates. that is what the traders said in a 2010 letter that was written days before the bank higher 10. the note was shown to jurors earlier today, the fifth day of hayes trial. the 35-year-old hayes faces a counts of conspiracy to manipulate the libor. that is the benchmark used to value more than $350 trillion of loans and security. more thanders fell expected in the month of april. orders for consumer goods were also down and so were orders for durable goods. the government figures new

factory orders are upward to more than 2%. for as not take long pilot in india to get a flight certificate. this is scary. in some cases, it is just 35 minutes. concerned about the quality of pilots in india has been growing and decreed demands for hundreds of new pilots. in 2011, they reviewed the license is about 4000 plus airline pilots. at least 18 were suspected of using forged documents to win promotions or certifications. those are your top stories. that is terrifying. pimm: first of all, the number of fatalities because of air crashes in india has gone down since 2010, so maybe no direct correlation but they do not use the automated hobbs meter that most airlines used in order to track. olivia: the hobbs meter? the aircraft, on and it measures the oil that starts flowing. a lot of this measurement is still done by hand. olivia: i once took a flight in india because it was the

cheapest one on something called kingfisher airlines, like the beer and i thought the fact that the airline was named after the beer -- pimm: was a good thing. olivia: my theoretical i bet it was cheap. pimm: you got off ok? olivia: i'm here. pimm: did you get free beer question mark olivia: i don't -- free beer? olivia: i don't remember. they drink a lot less in india. herbalife fights back, launching a new website posting out -- pointing out investment failures. wem: in los angeles, the -- go inside hollywood's makeup mansion craze. announce newta may rules this week to cut emissions from large tracts but the idea is already creating controversy. back to one of our top stories, the great standup. after four months of antagonism and extended deadlines, there is evidence now in greater urgency and efforts to and the impact and decide greece's fate once and for all. or is it?

the country owes for payments to the monetary fund this month and the package expires at the end of june. grease runs out of time and money, how big of a risk does the country's future post to global financial markets? let's weigh the evidence with their own cash, the chief investment officer of merrill lynch wealth management. he is also the author of the newly released "aspirational investor." joining us is lisa abramowicz who covers all things fixed income. let's begin with you, congratulations on the aspirational investor. if you were an aspirational investor and looking up the use of events coming out of greece what?e european union, would you do with all this information would you file it away on the interesting or is it relevant to your investment decisions? say, the first thing to do is step back and understand what is going in greece, russia, and a lot of the world is political.

in honorunder, maybe of john nash who tragically died in a car accident last week. this is political brinksmanship that is devoid of economic fundamentals. what decisions get made over the next few days really should be understood in the context that these are longer-term problems. greece has a fundamental issue. a european union has a fundamental issue around states that have fiscal and political. olivia: so client to call you up and worry about resolution -- ashman: i'm say, what is the purpose of the money? which is what i tried to stress in the book. what is the purpose of the money you are investing? is it tactical? do you want to outperform everyone else? olivia: your job is to sort of figure out how to handle risk. what you tell clients who wants to make money regardless of whether it is for retiring? is an: we tell them greece

small part of the economy. when you see this kind of news, the market will sell off that it is a buying opportunity. lisa: i think the people who i speak to in my world look at sort of central banks and they generally versus exogenous risk from these brinkmanship types of situations, right? can the stimulus actually overwhelm the potential for some kind of pick up or worse from greece defaulting or russia entering the worst financial situation? can't stimulus here all? right now, the markets seem to be saying, yeah. look at inflation numbers. olivia: inflation came in better than expected in europe, and this is what i thought was interesting, i have a bond deal chart because i know you love that. pimm: makes it special. olivia: this shows that the 10 year bond yield are back to where they were on january 22 win mario draghi launched.

lisa: you just want a way back into my heart. olivia: thank you. alisa: honestly, i think there is some question whether this is the ecb stimulus working or oil prices rebounding. there is also a question of, are people already preparing for the ecb to and their stimulus even though they said nothing about this? and why? this is crazy, right? in the markets, and this is to your -- the market don't look for what the data is now. they try to look at what it will be in six months and try to prepare for that and price it in. i think one concern i have heard from bond investors is, you know what? font markets are undergoing a dramatic an unprecedented situation with thank intervention. are these markets safe anymore? : two things, experience that investors have had for the last 30 years with bonds has been a phenomenal experience. the fact that they got both

safety and yield on the they will not get that going forward. yes, they get safety at a very expensive price. you will get paid back. but you will not get yield. lisa: that has not get what is going on this year. everybody has been saying for the past three years, don't go into bonds, you will potentially feel dry, lose money, and yet, they were turned incredible year after year. ashvin: we absolutely say you must stay in bonds, but stay in whatever way you normally have. to ask you about this idea about using the concepts you have learned about behavioral finance because you get people making decisions based on headlines or news reports. i'm wondering if you can just give us a little detail on how to put together the portfolio that will help an individual or indeed a professional reach their financial goals? ahshvin: that's a good question. i have a phrase that says the markets don't care about you, so

i'd used in all your time obsessing about markets? markets isyou aren't because you want to extract returns. if you actually think about your entire balance sheets in terms of three portfolios, a safety portfolio like bonds that you will bail up for, a market portfolio that will give you market returns and lots of volatility, and then an aspirational portfolio which is really what creates wealth like your business. lisa: central banks globally have printed enough cash to build a six lane freeway made out of a hundred dollar bills at circle the earth more than once, right? if we have this situation, arguably, it is unprecedented. arguably, you have a situation perhaps we cannot bottle -- fall the same model that you once did. is there a chance that that kind of classic investment thesis won't work? ashvin: i'm trying to point out that this is not the classic investment. just having a safety portfolio for safety which is expensive

and a market portfolio that is in today's times. let me remind you that the central banks are in no hurry to unwind. you could take decades. -- you. treasury at 2.5 might argue is very expensive relative to equity. it is very cheap compared to the tenure -- the german 10 year bond. tomorrow, if it becomes one point 75, it is still an expensive compared to the german bond. olivia: are you recommending people have more cash? it is ano, i think lousy safety option. stay away from cash. olivia: why? there is no inflation. : if you have a tax bracket, corporate wants, high yield, whatever you want to do, but cash is just a very expensive way of grabbing 50 today and being frozen as the markets move around. olivia: t like so much. -- thank you so much.

and thank you so much to lisa, my favorite -- my very favorite bond woman. still ahead, much more, including herbalife fights back. pimm: more than two years after billionaire investment -- investor bill ackman was in the illegal pyramid scheme. the company has started a website stating bill ackman as an irresponsible opportunist. we have got details, next. ♪

pimm: welcome back. i am pimm fox. olivia: i am olivia sterns.

let's get a check with senior respondent market julie hyman. julie: one is moving just in the past the minutes, more dramatically and that is macy's. there are a number of hedge fund owners of the company that are calling on it to explore its real estate options. you can see quite dramatically the reaction the shares once the headlines started to cross. i was just scanning some of the biggest holders to find out who could these hedge fund guys be. the only one that popped out with green light which owns about 1.7 million macy shares. that is about point 05 of the percent of overall shares. those are trading higher but not just macy's. we saw a move up as a group in many of the retailers, so we have got nordstrom, jcpenney, kohl's, all of them seeing a bump up in shares. in terms of real estate options, really the most notable example of a retailer that has optimized those options has been sears which spun off some of its real estate holdings into and is the

least back of those properties. that potentially could be something we are talking about here and not exactly clear. i wanted to get a quick check on one of the dow movers today, iron mountain, the stock is cut to an underperform over at jefferies, jeffries raising concerns about what it calls multiple problems, including cash flow issues at the company. pimm: thank you very much, julie hyman. olivia: herbalife is going on the offensive against the nemesis bill ackman. pimm: it has launched a website called the real bill ackman.com which paints bill ackman as any responsible opportunist. bill ackman hasn't shorted $1 billion worth of herbalife stock and accused the company of running an illegal pyramid's game. during this now from atlanta's bloomberg's own way in stamford who has been covering the herbalife story extensively. bill ackman has been making these accusations for more than two years -- why is a black only

acting now? duane: herbalife has taken heat from investors over the last couple of years. saying that they have not been proactive enough and that they have not gone after bill ackman fighting fire with fire. that is what this i say what they are doing now. they hired a new head of the communications divisions, almost one year ago, who has been getting in there and retooling the department. inhink part of this is effort to say, look, we are going to take the gloves off. we are going after ackman with some of his own medicine and take the website. olivia: i am pretty sure bill ackman and his team are prepping the decimation lawsuit right now. in the meantime, the website the billackman.com is up and running and what is the evidence that they are siding?

duane: you bring up the defamation argument. a lot of the site is really just leaks to news articles and various publications that have written critical stories about bill ackman and his campaign against herbalife. there have been very a's reports about investigations on u.s. authorities looking at some of his business dealings when it comes to herbalife and talking with some of his subcontractors. it is very unclear whether any of that will amount to anything but those are the kinds of stories that they are posted on the site. they also put up a video hedge fundarious management and some of their investment companies like target and sears and how those have been less than fruitful for him and the hedge fund. that is mostly the kinds of things you see on that website. pimm: doesn't this highlight the value of buying up websites not only that your opponents would one day want or maybe even those that you might want in the future? this is big business.

duane: absolutely, almost one of the first steps in the playbook. herbalife bought this domain name and several others way back in early 2013, there shortly after bill ackman first became and went to look with his accusations in december 2012. they have had the domain name for a couple of years and just now actually putting wanted to use. pimm: duane, as far as the campaign goes, who is this aimed at? investors,s aimed at it is aimed at regulators, it is aimed at pretty much everyone who was paying attention to this fight. her two years, you had bill ackman with a high-profile fight of his own. if you google are black, one of the first signs you find is herbalife.com, which is one of bill ackman's slams. he has been very out front with his arguments against herbalife calling it the paramedics came. saying that the people who run the company are guilty of that.

-- calling it a pyramid scheme. saying that the people who run the company are guilty of that and you are seen a counter to that argument. olivia: thank you so much. bloombergs lane stanford he was been all over the story from atlanta. it is up 40%. pimm: mud slinging the internet, imagine that. olivia: that is about as sexy as business news gets. pimm: still ahead, forget about keeping up with the joneses. olivia: we will give you a tour of one of the most expensive mansions on the market. what you can get for over $100 million. stick around. ♪

to the soggyeback day in new york city. this is "bloomberg market day." i am olivia sterns. pimm: i am pimm fox. a cyclic at the top stories crossing the bloomberg terminal

at this hour. chevron says they will delete a multibillion-dollar oil project in the gulf of mexico. they say some cables required to tell the the platform to the seat sank last week. there were no spills or injuries but the situation may threaten chevron's ability to meet target for 20% increase in oil production by 2017. the platform was due to begin pumping oil late this year. investigators probing a fatal amtrak crash in philadelphia have not ruled out human error. that is according to amtrak's chief executive. no defects in the braking system or signals have been found and there was no evidence of the train was hit by a projectile. the accident killed eight passengers. investigators say the train was traveling at 106 miles per hour, more than twice the speed limit on that area of track. those are look at some of the top stories. olivia: let's take a quick look

at what is happening on the markets as we reach it made day. equity indexes all in the green. looks like equities have turned around a little more of a risk on attitude. this morning what will we saw was bond yields keeping up in europe because it looks like once again -- pimm: but they said the spanish is up 2% since the first time since november. olivia: that is very significant. that means yields in europe are back to where they were before. inore mario draghi launching january. inflation is back because of oil but -- go ahead. pimm: i'm going to turn it all over to you in your capable hands. olivia: thank you so much. much more on the european debt story and more coming up on "the bloomberg market day turco don't go away. we will be back. ♪

olivia: welcome back to "the bloomberg market day haircut i'm olivia sterns. let's it a look at the top

stories. fitbit is ready for a run on wall street. ipoils to plan and add the and they will offer nearly 30 million shares at $14 to $16 each. the company will trade under the ticker f i.t.. they generated revenue about hundred $37 million with impressive profits of 48 million dollars in the first three months of 2015. that company is profitable and going public. -- dan loeb said at the start of april he plans to disregard the market proper. it was the right decision. up 5.7 percentd in 2000 15. almost doubled again in the s&p 500. other managers who trade mostly stocks did even better. capital management jumped two point 6% last month and capital rose to a .6 percent. hedge funds are benefiting from increased mergers, a jump in

biotech docs, and rising chinese equity. herbalife is on the offensive against billionaire bill ackman. nutritional supplement company calls him an irresponsible opportunist. it has launched a website called therealbillackman.com. akron has shorted $1 billion of herbalife stock and called them a pyramid scheme. herbalife delight -- denies those allegations. to world war i army heroes, one black and one jewish, have received the medal of honor. president obama hosted the ceremony at the white house almost one century after the men bravely rescued comrades on the battlefield of france. the men may have been denied the military honor in the past due to discrimination. sergeant williamshemin -- william shemin repeatedly dodged gunfire to pull safety -- soldiers to safety. and sergeant henry johnson single-handedly fought off surprise german attack. that is a look at the top

stories. coming up in the next half-hour, pulling the curtain back on the nsa's power. the senate moves forward on a bill to reshape what the nsa can and cannot do. plus, the apple watch is not working like clockwork. issues are popping up with third-party apps and we will play what they are. blame fors the fed to the growing wealth gap in the united states? it is the trillion dollar question. we will look at the winners and the losers of the heads policy decision. auto sales are rolling in and results are better than expected. gm and chrysler reported rising sales while ford, nissan, and toyota sales declined but less than analysts expected. epa is trying to put large commercial trucks on a field direct. here to talk about implications for the trucking business is not -- is matt hardy. of course, our very own car guy matt miller joins us as well.

matt: as in 18 wheelers and tractor-trailers? olivia: i read tracking. matt: i think we are talking about trucks, suvs, and even the tiny little suvs like high-end day -- like hyundai. olivia: this story is trucks are crushing it and doing well. is it going to continue? matt: the guidance from honda for example is that they will continue to question as far as trucks are concerned. they released a bad -- a brand-new pilot that hit dealer lots this month and hrv did very well last month, so yeah, all signs are pointing to trucks continuing to sell well in america. as they have since trucks have been invented, right? we always buy more trucks and cars whether it -- unless there is a recession. olivia: we actually are talking about big trucks. his is a segment into monster

trucks but we do want to talk about big trucking industry because of the bmi metal protection agency trying to get more fuel-efficient mileage standards. your areaobably more of expertise. i believe the average fuel economy for a big truck is five miles? matt: five to six miles an hour talking to my uncle who was a tracker and we were on the phone and talking to one of his friends who was also a long-haul trucker and they were saying roughly six miles per gallon. they said some of the older trucks that still do six miles and some new ones still duke six miles per gallon, so they are skeptical at being able to get nine oscar gallon at a big sleeper cab which is what the epa is calling for. by 2027, 100 years from now, keep in mind -- olivia: or 12. matt: one of the best selling luxury cars in california is a card that sand -- that was like a jets and fantasy 12 years ago and now it is real. -- excel iney once

all electric 18 wheeler. matt miller: one of the original founders of tesla, is electrifying big rigs right now. beingare big rigs electrified and of course, natural gas, we talked to bill pickens about this, it is a great way to drive big trucks, especially ups or fedex. olivia: the question is how difficult is it going to be for the auto companies to shift gears? find, but you have done a lot of reporting about forward and how difficult it has been to switch assembly line over to the lighter body, aluminum trucks. we are not talking about changing what is going on inside the body of the car. that has got to be a lot harder. how expensive will it be for the carmakers to get the fuel economy of to nine miles a gallon? matt: we were thinking most tech makers are against it, but it is the buyers and operators against it. truck makers love this because it is a new fleet of more expensive text, maybe 18,004 class eight truck which is a vehicle about 130 to $140

already. a big expense. a lot of people behind the text by than themselves so they have to finance all the extra cost. if you look at who was excited, people who trade the soul super on board and volvo books that we -- slightly less on board. kind of super excited because they see profits and money and this is a mark where people are reluctant to spend more money and now they will have to because the government will make them. olivia: better fuel efficiency standards is good news for humanity and the environment. the average price is up $18,000, will dr. go down to consumers and they will go up? matt: i was thought the biggest -- the best way to ship this was on blimps. there was a company called cargo -- olivia: are you trying to get banned from the show? matt miller: no. i was reporting in germany in the early part of the last decade and they can move goods,

not only more fuel -- with more fuel efficiency but much faster because the average truck also moves goods at eight miles an hour. it is a surprisingly low figure as far as distance traveled our what the big trucking industry. warren buffett would rather see trains -- olivia: what is your uncle think? matt: the issue is that when you have these things, the price gets packed on the consumer but what happened when fuel prices went up a few years ago, the price was not on the consumer but on the trucker with fuel surcharges. i think we will see a big problems for truckers and the consumer and everyone else will do well. matt miller: first ball, it is a very dangerous job and a lot of accidents -- bloomberg did a great investigative report on how many dangers accidents happen and how much that figure has increased because truckers faultlessly. all the sleep, when the cost get passed on to truckers, they feel the need to drive more to make more money and they don't sleep as much as they should.

the is why it is one of higher paid jobs if you look at employment reports and also one of the most dangerous. olivia: good point, matt miller. you will be allowed back on the program. thank you, guys. on "the come, much more bloomberg market day." coming up next, we will talk about what you can buy for $100 million in l.a. maybe five bedrooms, maybe. ♪

olivia: welcome back to "the

bloomberg market day." i olivia sterns. let's look at where u.s. stocks are trading. let's head to julie hyman who has a big story. julie: i am watching currencies and commodities today, in particular we are watching what is going on in the u.s. stock market. we are seeing energy shares of best performers up about .8 of 1%. this green part of your pie, if you will, with the u.s. stock market. oil prices are also rising. we are seeing oil pretty much at the highest, not necessarily of the whole year, but near its highest of the whole year. this is a year-to-date chart of oil and the highest in three weeks, if it surpasses the prior peak, it will indeed be the best -- the highest we have seen all year. it looks like the expectations for tomorrow's inventory report are that we will see a drawdown in inventories in the united states that would push up oil prices.

of course, you throw opec into the mix and that meaning it is happening on friday but no huge expectations for what is happening there. we've got big oil majors performing well today. everything from exxon, crude oil prices there today that are up 1.9% and stocks like exxon and transocean and halliburton and they are gaining as we see oil prices again. here are some of the big movers. exxon mobil not up as much because it is heavily weighted. definitely helps energy gain as a whole. also wanted to look at what is going on with the euro today because that is a notable move. the fact that the dollar is falling is also helpful toward oil prices. here is that euro, up about 2.2% and in particular, this move this morning as we have had various headlines coming out of the greek negotiation, even though there is not necessarily a lot of optimism in some of the headlines contradicting each other, we are seeing the euro gained. olivia is laughing because you

have been following all these headlines. it has really been going in hopes, hopes -- olivia: i am five years deep into the greek debt. i was excited about inflation numbers out this morning. inflation came in better than expected that a lot of people saying, don't get excited because inflation may not be back get quite in europe. julie: europe traders got excited. olivia: i will listen to you stick about the euro anytime. thank you so much. speaking of rising prices, one of the biggest homes in u.s. history is driving on a los angeles hilltop at $100,000 -- at 100,000 square feet. the record half $1 billion for the price tag. we take a look at what goes into selling these mcmansions. -- these make a mansions. megabirds eye view of any mansion in construction. half $1 billion and the u.s. record sustained developer.

artist renditions imagine the finish complex. one in the latest of a series of luxury homes on the market around the world. while we can't access the early construction site, nearby, this is a property we can. 25 acres on the bell are hilltop owned by billionaire jeff greene. this is currently the most expensive residential listed property in the country. go to palazzo don't amore, the listing price is $195 million choice.s you are going to take me on a tour. highest i closed the sale in the united states at $50 million in 2010. now, we are seeing many sales at $100 million. >> the music room is first. >> this is spectacular. >> wow. this is three times the size of my apartment.

this is one of the family rooms and there is a mini versailles in the backyard and a vineyard next to it. upstairss the winetasting. this is my favorite. >> meantime, a larger one downstairs that holds much more. there is also the formal dining room and two-story entertainment complex separate from the house. >> here we go. >> we are ready to dance. >> with the revolving dance for, anling alley, movie theater, infinity pool. when it comes to buyers, the error appears thin. >> we get people from around the world coming to look. because of course, if you want a real estate that accommodates a large family, there are not many like this. >> looking ahead, more luxury properties like this, over $100 million will be sold this year. in new york, connecticut,

france, and hong kong. if that does not sound like a lot, think again. this is more than $600 million in total. if it has revolving dance floor, market joining me now for a look ahead for the next hour. mark: it is a gorgeous home but if you juxtapose that with one of the eggs we will be talking about in the next hour which is income and equality. you see a home like that and obviously, it is on the market for a reason. there has got to be buyers out there for it somewhere, how much else do you need? olivia: it is a question we will ask our guest in the next 15 minutes at to what extent they think the fed has been inflating asset homes of hundred million dollar homes. what else do you have coming up? mark: we will be talking about climate. the french foreign minister saying that there will be in international agreement -- if there is not an agreement on international environment will

change, they will have to go behind because some of the members don't believe that congress can get their act together and agree on something that would limit the amount of greenhouse gas emissions, coal, fire pollution and whatnot. , we are saying that perhaps should do this without the u.s. congress which raises the question -- if there is an international agreement -- if that agreement is signed, doesn't have any legitimacy of the united states is not backing it as well? olivia: of course, that is always the issue with global climate agreements. what is your key question? mark: i want to know, if they asked that the u.s. congress does not have a role in this, then what happens? does that mean the united states of america then has a stick to international agreements? agreements that it did not agree to? and the way congress seems to be headed right now, that is a debate they don't even want to have. house speaker john boehner and the senate majority leader

richmond, and their rank and file, they have been against this and have been vocal. leadersenate majority mitch mcconnell and their rank and file, they have been against this and have been vocal. olivia: breaking news coming out of fifa. fifa president calling for a new president to be elected. this is pretty incredible because fifa went ahead on friday and had that scheduled der want hish blad fifth president and you are looking at a live shot who was the president of fifa speaking out. are we going to blatter? he doesn't think a new president should be elected. mark, this is interesting. of course, thank you -- ahead had called for blatter to step down given all the arrests and allegations we saw last week of

corruption. of course, the investigation launched by the u.s. attorney general into deep-rooted corruption at fifa. defiant about it but now he is calling for new president to be elected. mark: this is obviously, was money paid? where bribes paid to get world cups, sponsors ships and such? mr. blatter has been defined and remain to find saying that that stops at his door. that he did not know about it, he had nothing to do about it. now we are hearing that his second-in-command may have had access to $10 million which may have been dispersed to socialize around the world and they are notng now, maybe they did have access to that money but maybe another higher up in fifa who is now deceased may have had access. olivia: i think it quickly becomes a question of accountability. if he did not know what was going on, then he needs to go. if the does know, he needs to go even faster.

mark: somebody asked me the other day and i realized this is a stretch, it reminded me of iran. it reminded me when president reagan spoke to the nation and president reagan said, i did not know about this but i should have known because i am the president of the united states and i am sorry. i'm wondering if mr. blatter had said, i did not know about this, i did not locate any exchange of money, i certainly did not ok that any bribes be paid to any government officials or other soccer officials -- but i should have known about it because i am the president of fifa and i apologize. olivia: i think a lot of fans globally will be happy to see ladder standing on stage now saying that a new president needs to be elected as soon as possible. he is calling for them and says needs restructuring. we will continue monitoring the headlines coming out of this extraordinary fifa news conference in switzerland.

don't go away. more on bloomberg in a minute. ♪

olivia: a comeback. i am olivia sterns and we have breaking news coming out of zurich. fifa president will resign and calling for new presidential election just days after being elected to a new term. just to recap the news, blatter is speaking in europe right now. was just on stage same there needs to be a new president and he is going to call an external area congress as soon as possible and he says the mandate was not supported by everybody, referring to friday's vote and needs profound restructuring. joining me now to discuss, brendan greeley and cohost of "surveillance." has dr.'s corruption man and he has been defined as the head of fifa and suddenly a

change of heart. do you know why? brennan: i do not. i do not.: there obviously is a political mandate and then there is raw power. obviously, you want the politics of the vote, where is power contained? one is, you had more people coming up with the ecb should not be present or than ever before. no one dared to do that when people speak out against a -- against you, it is a sign of loss of power. olivia: and the head of the european -- brandon: me of all people correcting your french. saying that they will not stand for that. i think that when we are talking about everyone, what we mean are the sponsors. this is." conjecture. there has been no public note of this but i can't think of anyone wielding the power that the sponsors do in stepping in and say, ok, you had a pretty good run their. if this is going to have to

change going forward. this is such a profound change of tone for what he said to finally after his election, this is my congress, i will take the last word, i will take this forward. i can only imagine that this is not pressure coming from the weight of the european elite, from the u.s. prosecutors, this is his sponsors. yourcture, -- this is conjecture, but they are the only people in power who can sit down and make those changes. olivia: we saw the like of the sick, mcdonald's, giant corporate sponsors. is sees that just too big to drop -- is fifa just to be to drop? fans will still tune in and it does not matter for the sponsors because it is such an attractive advertising platform they don't want to lock away. brendan: it is hard to put my finger on what has changed this time. i am guessing that what made him resign or change election is this is actual legal proceedings. an event that goes all the way to fifa.

there have been indictments and convictions of various people around the world and very internal hearings that they have had. this is the first real legal proceedings with any way that thatto fifa and i expect -- this is or projector -- pure conjecture -- but we do know that his second-in-command was named in the indictment. olivia: lots of questions, including whether or not this means the jordanian prince is not a likely successor. who knows? he will have a busy day in front of you. brendan will be back with more. we cap, steph blatter will resign and -- and calling for a reelection. don't go away. we will be back. ♪