> was his hand forced? reexmamine who gets the cup. people said this is enough. people saying weedis what is need wto out corrupstion. did you think blatter would go

voluntarily? >> no. i think it is a reflection of sponsers. >> because is it possible where we could see committee?eld via ayingat is waht they are syain that they need to take charge of this. i am concerned that across the

executive structure tehre was an allowance of cross and the committee will need to take much more power. of people will be blowing the dust off plans, what like?yours look >> i think they would look at of theng the regions easy because it is too for the cayman islands to atfluence policy and the

doesn't present it. willa: blatter says he resign as president adn he want s to hav ea new election in december 2015 and march 2016. the weatlh look at lth gap. >>

olivia: i went does that with you, the co-author of the report put out by brookings. it was at the booking conference on this issue of whether or not the fed is increasing income and equality in the u.s. it seems now that the standard argument has been the fed has been helping the wealthy because they own the bulk of assets. they have been inflating asset prices. why do you disagree with that? >> we disagree with that because what the fed is doing is moving interest rates and we have seen

and to prices gone up large extent of fixed income securities. if you look at fixed income, the reason fixed income prices are going up is that the returns are going down. we have very low interest rates. if you think about who games and who loses from low interest rates, if you are a sabr, somebody who has the wealth, then you are in fact going to lose at least over the course of three years from low interest rates. if you think of somebody who owns fixed income securities, they -- the payments they will receive does not change with current prices. there will be an increase in the short run but down the road, low return on low interest rates can protect bad sabers and sabers are the ones at the top. mark: let me get michael in

here. michael, the former fed chairman wrote on his blog at brookings, and i quote, the degree of the equality that we see today is primarily the result of deep structural changes in our economy that had taken place over many years including globalization, technological process, demographic trends, and institutional change in the labor market and elsewhere,". why do you suppose he did not mention gender and racial bias and dissemination -- and discrimination? trying: i think he was to make the point that when we talk about inequality, we are not talking about relative to 2007 when they first started rolling interest rates. we are talking relative to the 1970's and 1970's -- and 1960's when inequality was much lower. i don't think he was trying to give us an exhaustive list but rather to refocus the debate on the fact that it is really a very long run trend that we are talking about and sometimes it

predates the easy monetary policy strategy. olivia: what do you think about this argument that matthias is theng that middle class is biggest class of quantitative easing because the fed made that cheaper and the people who tend to have the most debt, particularly mortgage debt are those in the middle class? thatel: i agree with argument and i think it is helpful that we distinguish between wealth and economy -- and it probably

obviously benefits of the middle class, how you define the middle class in 25th teen and how can those in the margins and specifically i am thinking of fast food workers who have been demanding a higher minimum wage, how can they get into the middle class and succeed without a living wage? find a middleid class broadly asked percent of income distribution. fringesxtent that the can be helped. policy will at least contribute very much to that. frome who are said to gain lower interest rates are the ones who have large mortgage to a lot of debt, but the ones at the bottom do not have a lot of debt because they don't have a very high homeownership rates among the starting to lower

start a race. final questionck -- obvious a, the fed has a dual mandate inflation on unemployment, do you think the fed should be targeting inequality? i think it is a blunt instrument for targeting inequality, so i think the real advice to stay mostly focused on existing mandate. do you michael, what think? michael: i agree. i think targeting is better left to congress and the fed should focus on the mandate it has. olivia: fascinating conversation. thank you both. still ahead on "the bloomberg market day," fitbit is running toward an ipo. we have got the numbers you need to know about the start up, next. ♪

olivia:olivia: welcome back to "the bloomberg market day." opined bolivia here with mark compton. let's go straight to bloomberg's matt miller with a look at the odd is moving off the main numbers. matt: you see a little bit of a rebound in markets in general. take a look at what we see with ford, general motors and chrysler because it has been a pretty decisive day as far as beating estimates with the unit sales numbers. you do see chrysler's stock down a little bit. general motors up a little and ford really close to little change. the interesting thing is when you take a step back and look over the last 12 months, gm up about 5%, for down about 5% but really looks like not a lot of movement on incredible performance where it is 17.3, maybe 17.5 million annual

average units sold for the entire industry. of course, these two are reaping big gains but not as big as the gains of chrysler. if you take a full look -- a look at a full chart of chrysler, it is up 80%. a lot of money for john alcon and family because he is sending a ton of jeeps. jeep has sold more cars in the year than months this it has ever previously. the brand is doing incredibly well and trucks are doing incredibly well because of low gas prices but also because technology has enabled these cars to be incredibly fuel-efficient and get more than 20 miles per gallon in highway miles. some small suvs like a jeep renegade are getting more miles per gallon, more than 30 on the highway which is better than compact cars were doing 20 years ago. jeep and the trucks over at ram are helping drt -- sergio and chrysler outperformed forward liking a little bit even though

they are doing olivia: i am personally awaiting the ferrari suv. -- sitr news, the fit it as plans to raise as much $478 million. bankerspetition, and jump to find the valuation. earlier, tim fox and betty lou spoke with drew armstrong. drew: it is a real business. they make a product that people by. is continue to use, which sometimes an unusual thing in one of therld challenges -- and one of the challenges as people get these,

and they stop using them. betty he: it is like a diet -- everyone goes on a diet, and after a few months they give up. drew: it does not come with a $3.3 billion valuation. but they are giant companies. i am guessing they have new do notecause one-third continue with their fit bit. drew: a lot of times you are given them as gifts. 50% of the company sales came in the fourth quarter. instead of you going out insane fitbit, they will say i need this, -- i will have to get a hundred dollar gift. then they will play for a 4 -- with it will drop off. they have to figure out how to get you continuing to use it, get you data, to the website.

betty: vertical. will make the money -- foundry group, softbank, are they selling any shares? drew: i do not know. i would have to check on that. going into the corporate wellness market is probably one of the biggest pathways. pimm: explain how that would work. andrew: you are michael bloomberg, and you are thinking it would be great if my employees got up and walked around more. no suggestions. you are able to track the data, and you can sell this to companies. you can see how active people are, do employees need to be getting up from their desks more, walking around. betty: instead of a lunch break, how about a fitness break. there you go, problem solved.

drew: if you can get that down, it is a big deal. pimm: when will it price? drew: the ipo should price in the next few days. the $3 billion evaluation is at the high end of that. --k: $3.3 billion valuation wow. itvia: here is the thing -- is a startup company that is making money. that basically never happens. you can make money in a vc round, but not get to the growth phase where it is profitable. mark: what is making them successful? olivia: a lot of people want them. clearly, i do not wear one, but i worry about the fact they are going public at a time when the most successful, powerful tech companies in the world, apple and samsung, are getting more and more into the wearable technology market. mark: that is a story we will

continue to follow here at bloomberg news. you are done. olivia: thank you for having me. thank you,-mark: olivia stearns. coming up, the bloomberg market day -- climate change in germany, and why some are pushing to reach any other does not need approval by the u.s. congress. ♪

mark: welcome back to the bloomberg market day. united nations climate change negotiations are underway and the french foreign minister calling for a deal it does not need approval by the u.s. congress. he told delegates "we know the politics in the u.s. -- whether we like it or not, if it comes to the congress, they will

refuse." here with me as the head of the americas for the new energy bloomberg finance team. ethan, thank you for your time. talk about the reverberations. when i saw the story breaks, i thought this is something that seems like it could get ugly. ethan: i do not know if i would go that far. i would say the french minister is adept in understanding u.s. politics. the president signs international agreements all the time that does not receive international approval. this might fall into that category. mark: can the deal have any teeth without u.s. backing? olivia: it could, but i would --ethan: it could, but i would say it would have u.s. backing but is not binding. mark: won't countries exist that it is -- insist that it is legally binding? ethan: they will, but there is a

free-form situation where different countries are making different pledges for what they hope to achieve and we expect the final do will be a series of individual country pledges laid down alongside each other and they will collectively be called an international agreement. mark: the french minister said we must find a formula valuable for everyone and to the u.s. without going to congress. what is valuable to the united states? ethan: what would be valuable is pledges from other developing countries that they would take a more responsible path than the u.s. has when it comes to co2 to co2 emissions. we may start to see that. we have certainly seen the lesser developed countries making pledges to mexico and others. mark: what are the economic implications of this? >> potentially quite substantial how we generate fossil fuels. ofeady we are seeing some

those take place in europe for they have a carbon price. in the u.s. we are certainly see gas driven by economics primarily but could be accelerated by for the regulation. mark: at this point we are something that is practical. understanding the practicality of what goes on in the u.s. political circuit. there is a great deal of internet --ward the toward the climate pact among republicans on capitol hill. in reality it would not vote forly come to a some time. unlikely they will switch so violently between now and then that you will have a friendly congress. all right, ethan singler, head of the americas for the finance team. at fifa, sethst blatter says he will resign as president. ♪ ♪

mark: welcome back to the bloomberg market day. from the net

bloomberg world headquarters in new york. going straight to your top headline. greece futureer is at an impasse at this hour. rival controls with a debt payment set for friday. minister saide his government submitted a new plan. officials from the country's creditors have reportedly agreed on what would be a final opportunity or the country defaulting. the euro rallied on optimism over a deal. minister --nd finance minister said they are far from any agreement. thevictory automakers year.tes last general motors posted the best performance in may since 2007. growths forecasted sales would be almost flat. the chrysler had the best make in a decade. u.s. sales rose 4% last month, beating estimates. sales of the chrysler sedan forth sales actually fell last month. itwas not as much as

affected. ford brand sales down more than 1%. lincoln was up almost 4%. meantime, nissan sales also fell less than expected. seth blatter says he will resign the corruptionid that has rocked the sports agency. for a promised to call successor, speaking at a hastily arranged news conference, he to mandate does not seem to be supported by everybody in the world of football. >> elections are closed. is the challenges fifa facing have not come to an end. ifa needs a profound restructuring. blatter's 79 years old. elected friday. seven soccer officials were arrested in direct ahead of the congress. placeections will take

sometime between december and march. those are your top stories. perspective,e froman greeley and brandon bloomberg view daily. what are we to make of this? doing a victory lap a couple of days ago. now he says he is gone. this is a pretty incredible turnaround. you have to wonder what they have on him. what changed other than a bombshell report that is highest lieutenant was directly involved in receiving the $10 million payments. his: are you suggesting conscious got the better of him? not so much conscious but corruption and overwhelming evidence. trouble figuring out who other than the sponsors would have had the power to say we had a pretty good run, it is time. do we have to assume that is who it was? perhaps. maybe it is actually the case the u.s. government got

instance.done in this it does seem the evidence was snowballing. munich this will continue. you did not know it was going to happen this quickly. >> we are talking about the power of the purse. events,'s one serving the soccer matches, the every four years. is it possible they just said enough is enough? >> it is. fifa is individual from the sponsors. adidas. invention of they got together with coke and put money intoly this, we could create an organization that could .etermine the future of soccer the reason it has so much power to dole out to the individual associations, the caribbean federation, jack warner was the association who was also indicted, that money the sponsors. they are the lifeblood of the organization. i noticed you said dole

out as a process to award. opposed to award. sethto me about that he came to have this much power. we are talking about a man who at scenes help as it he was untouchable. >> i think the biggest comparison is roger goodell and seth blatter. roger goodell come solely from the owners who employ him. was able to sit stand challenge after challenge because that's corruption was so rampant and widespread. he is ahead of the beast and theing rid of the head of beast is great but the body still remains intact. mark: all we have been hearing from the past couple days after wasas reelected president the c word, corruption. this has been rampant and going on generations, going back maybe

late 1980's and 1990's, did anyone ever say anything to your knowledge? >> it depends on what you are talking about. what investigations you are talking about. fifa has conducted its own internal investigations. mark: you is i both know the mean becausehat i it does not count. you are investigating yourself. >> there have been thestigations of associations. zurich. not get to this one got to zurich. that is the real distinction. power is ak that funny thing. something happened over the week where youst saw people coming out, david cameron and head of the english association saying he has to go. once people are brave enough to go, thentator has to everybody else sees may this guy could actually leave. i asked karen weaver of drexel, what it may look like seth blatter.

are we talking about a committee fa?ning fi >> i think that is what we need, think we will see that. placewas a lot of time in to rally against -- rallied behind one person. the overwhelming belief is the be hisill actually successor. while he has been when of the loudest people calling against him, he was one of the loudest champions to host the 2022 world .up the corruption is very rampant. could the u.s. push him out? did the action by the justice department push him out? >> i think the action by the justice department alone did not do it. it enabled his sponsors and iner allies to say perhaps

his in a defensible position and they pushed him out. the other thing that will not change is this north and south dynamic that within global soccer. you really have a lot of smaller countries that are very resentful of the power that germany, germany have the global power and economic weight. like talking about the sec in college football. quick yes. this will continue to exist. a way toill find out create power out of that resentment. does fifa go from here? >> they need to get over there resentment issues. any call for reform will be seen smaller, developing nature -- smaller, developing nations. overnight, happen

but i think while the sponsors play the major role, the u.s. department of justice did scare some people into thinking maybe should change some things around here. pulling you out of a five-star hotel in zurich will do that. thank you both so much. up, the bloomberg market day. we will take a look at what is the bank of england strategy as he cuts rates for 13 this year. then, as she nears the age of 100, wall street veteran irene for enjoyingdvice a long and successful career. finders keepers goes on sale today. -- mega authors that publishing houses have come to rely on. we continue in just a moment. ♪

mark: welcome back to the bloomberg market day. york.ark crumpton in new theight to a check of markets. julie hyman is standing by with the details. a reversal in had stocks in the past couple of hours. now trading higher after being most of the session. if you look at the three major .2%.ges, you have them up being generous here as we have had the turnaround. if you look at the bloomberg terminal, you can see the intraday moves we have had in the s&p 500. line.s the zero we moved up a little bit after noon. did not seem there was a particular catalyst to move higher. the group gaining earlier started to gain momentum. , materials, industrial stocks gaining momentum as the day went on.

notable move in the dollar today. versus a basket of other stocks or currencies i should say, and the dollar is we, downhe most in 10 1.6% in part because we have gained so much. i know we will hear more from european perspective in just a moment. the dollar has been losing steam. at the same time, oil has been gaining ground. if it does continue to gain more today, we could even break through the high we have seen for the year today. 1.8%. areooks like traders looking at to the inventory report in the u.s. and speculating it could show a drawdown. that will be supportive of oil prices. bondsy, i want to look at . the prices falling for the most in two weeks. a european bond selloff as well. now we are seeing selling in the u.s..

it does seem they are reading it as positive. the yield at 2.7% on the tenure. it is not over in terms of economic data this week. friday culminates with the jobs meeting isthe opec friday as well. julie hyman, thank you. taking a look at the action in asia and europe. rate cut.test beginning in london with the chief international correspondent, hans nichols. we have a bit of -- of a diversion story. equities.art with taking a look at what is happening in greece. almost 2.5%. we see some positive territory italy.n and in germany negative territory. taking a look at the movers there. look down here.

mark down almost 2.5%. daimler down 2.5%. now to the bond market. a better sense of what is happening here. week barely see the risk on scenario. clearly see the risk on scenario. -- see strong movement from italy and spain. the story of the euro today. look at the euro go. it is up almost 1.7 5% on the day. earlier there were reports greece was preparing their proposal and creditors were proposal,their finishing it up and putting the touches. you saw the euro really move. the dutchs when finance ministers said they are quite far away from the actual much progress being made. looks like it shrugged that off. a quick look at the pound. similar stories. of almost the pound

0.82%. almost a full percent on the day. the reserveank of india cutting the benchmark interest rate from 7.25% to 7.5% -- from 7.5% to 7.25%. this may spark outflows from fear.and emerging-market the reserve bank saying it front rate cut to see how the monsoon rains will infect -- will affect inflation. the chances of the week monsoon rising oil prices and external volatility. india's consumer prices are set to fall until august according economists.of the central bank says it will by january to 6% 2016. top stories the crossing the bloomberg terminal. a scary moment at the french open. security guards evacuated spectators conceived under the giant tv screen where a large fell,of metal paneling

slightly injuring three fans. they also are cordoned off the seating area with red and white tape. strong winds have been blowing around paris all day. the order final match temporarily suspended but did resume a short time ago. -- the quarterfinal match. airport security has led up to a shakeup of the transportation administration. there are reports undercover agents were able to smuggle through banned items like rate guns or bonds and seven out of attempts. acting chief has been reassigned. officers will be retrained and procedures will be changed. long for a take pilot and india to get a flight certificate. in some cases just 35 minutes. concern about the quality of india's pilots have been -- as budget airlines create demand for hundreds of new pilots. the government reviewed of all .lus airline pilot

at least 18 suspected of using to windocuments promotions or certification. that is a look at the top stories we are following. will be with me in the next hour. this is interesting. piece, therg ,9-year-old financial advisor almostergman who manages $2 million for institutions, this woman is a legend. story, which is encourage everyone to do, it to behow she has managed successful and be patient and to be above reproach at the same time. --outhebysipapas"whiskeyoo

scarlet: i thought the best quote was the longer you are in the business, the less optimistic you are. her piece of advice was holding on things for three years before you do anything with it. they interviewed a couple of people who are done business with her. said one of the strange dichotomies is because she has her own wealth, she is .ot after your wealth this is someone you can trust with your money. she is not putting you into a position so she can make money from you. made the pointso she missed apple completely much for her. too she seems to be doing well for herself otherwise. articles another good on wall street culture. it is all over the bloomberg terminal. 24-year-old analyst was found sachs who dead after working a couple of all nighters. --was in the investment base

banking group by goldman sachs. it felt like he basically worked .imself to death he did not know how to calibrate his hours and stress and find balancehe work-life that's investor bankers are pushing them towards. i am always curious when i see something called work-life balance. when you die, your tombstone does not read i wish i had spent .ore time at work the idea is you are supposed to find somewhere you are not doing weeks80-100 hour work that are stressing young people out. banks are finally stepping up to do something about this. they are. you are hearing a young analyst saying they cannot make saturdays anymore. ended they later sunday night. they have to work on the days of the weekend matter what. even though they are making a move, it is the culture thing. look at places like japan. the government trying to mandate people take the days off they blotted -- allotted.

it is a cultural thing. you need to show your face time. maybe the millennial's will change that. mark: they want their boss to see them at work, after hours. mental note, this is someone who is going to work. as you said, working your self to death is not the answer. we will continue to discuss the fallout from fifa. we are also going to talk about auto sales. a decent may for gm. ford we did see a decline but than anticipated. jamie miller and matt miller talking about that. ceo of dominoes joining us as well to talk about what they are doing in terms of job, market, and his take on minimum wage. thingsf macro economic he can speak about. mark: no doubt. thank you.

author stephen king has been scaring of millions in profits 1970's.e a look at the economics of mega authors after the break. ♪ ♪

"market makers." back, i am mark crumpton. "ephen king's latest novel finders keepers." went on sale today. over 1000 novel. still one of the biggest of the big-name authors. the type of author that publishing houses have come to rely on. successful,e him so aside from the fact that he really scares people gekko >> dimension 50 novels but he has done a lot of short stories. he is keeping busy. -- you mentioned 50 novels, but

he has done a lot of short stories. he is working hard. what does it mean to be a successful author 2015 gekko >> ? >> there are a group of authors year, andt a book a they're very successful at doing that. he makes 90 million per year. dan brown 28 million. robert 28 million per year. he is tied for number six. making 16 million per year. both david and i are looking at the graphic on the screen as you are, and i am saying shut up, 90 million. they are still selling well. is expected to sell at least 300 million copies. he has done it now for four decades, and shows no signs of going down. i would imagine the

publishing house is reaping the rewards as well. absolutely. a lot of folks are still coming out. you see a movement toward the can tellauthors that really well. wayside is the mid-level authors. they are betting on big ones and .ooking for the next big thing that might be the author 50 shades of grey. gllian flynn who wrote "gone irl." are the scary books still the one selling gekko >? >> they are in part. , tons of young women came who were big fans of the .ooks that were sequels they are really into reading digitally in traditional format. years the fault was -- whichwith was huge and the young adult crowd.

what are the other big books for gek?ummer am eager to see harper bo the sequel took. " to kill a marking bird." oom has her second novel out in many years. i am sure it is going to be great, but how do you follow ?at you take 50 years. thank you. appreciate it. coming up later, republican candidate george pataki joins us. find out what he has to say about the underdog campaign at 5:00 new york time. ♪ ♪

mark: it is 11:00 and san francisco, 2:00 at new york a rock a.m. in hong kong. 2:00 a.m. in hong kong.

fifa resident has the he will resign amid candle. quite some of detroit's biggest auto sales have not seen sales years.in we will break it all down. get the door. it is stopped the nose. the company with ceo. he will join us live from the new york stock exchange. ♪ ♪ good afternoon from bloomberg world headquarters in new york. day."s "market u.s. stocks near the best level of the session. .2%.ces of the first back-to-back gain for since mid-may.