we discuss the future, especially in the u.s.. with a: and petrobras scandal. alix: officials race do finally, finally agree on solving the financial crisis. we will see. scarlet: good afternoon, everyone. i am scarlet fu, and i am alix steel. announcer: if you take a look within the s&p, you are seeing utilities, health care, consumer staples, the safety plays, deeply in the red.

this, the risk on trade there. look at what is going on. the euro has been on a tear all session lawn. it actually reached session highs. , cautious optimism nonetheless, moving closer to some kind of resolution. $111.65.dollar now at things are not as bad, not disinflation. announcer 2: not disinflation. announcer: the wti is up over $61 a barrel. all i wanted appearing from the situations that the is not reflecting what we are seeing, although it is a demand driven doré, and all of this is heading into the opec meeting,

and many think that opec will not do anything at all, and if they do anything, it would be to actually raise the quota. scarlet: what was that range we just broke out of? alix: that is a good question. rather than pretending that they are not. and that is our friday chat. blatter says sepp he is going to resign. speaking at a hastily arranged said itference, blatter needs profound restructuring. blatter: it is going to be held as soon as possible, and a new president will be elected to follow me as the new president. i will continue to exercise my

fanction as president of fi until the new elections are going to be held. alix: he was elected to a new term on friday comment with several being arrested ahead of the fifa congress, and it is said that they are investigating sponsor and fifa 'sca-cola says blatter resignation will help them reform. working on rival proposals for the condition of a financial lifeline with a debt payment for this friday. greek prime minister alexis tsipras said his government submitted a new plan. reportedly agreed on a new offer to avoid defaulting, and there was a rally on optimism. the dutch finance mr. said is to

sheehan are still far from any agreement -- the dutch finance ministers said we are still far from any agreement. value for waiting for more data on jobs. >> this argues for giving the data some more time in firm further improvements in the labor market and firming of inflation towards our 2% target. but while the case for liftoff may not be immediate, it is coming, and it is a clearer view. this had given some policymakers pause. there was a decline in gdp during the first three months of the year. the big three automakers all beat estimates, general motors posting a 3% gain, their best performance in a month since 2007. analysts had forecast growth would be almost flat.

salesile, chrysler, u.s. rose 4% last month, beating the estimates, while ford sales actually fell, but not quite as much as expected, down by about 1%. lincoln was up almost 4%, and meanwhile, nissan sales fell less than expected. alix: the nsa surveillance bill has cleared the senate. it would you with provisions that expired on sunday, but it would put limits on them. the bill would end their authority to collect records. courtwould have to have a order to get records from the phone company. a final vote would come later today. however, harry reid says they could delay things for a week, and that is a look at our top stories this hour. scarlet: in focus today, greece, with the nation's creditors reaching an agreement with what might be a final, final offer. joining us from athens is a profession of economics at nyu a

busted yesterday and, also an advisor to the bank of greece. -- a professor of economics at nyu stern. sir, you are joining us by phone. you are in athens. they are getting down to discussing some sort of reform plan. should make think i you aware that i am not advising the greek government, not right now. main point ofhe your question, i think the two sides are pretty far apart, that there are two sides, one proposed by the creditors, and they are far in terms of how soh taxes should be raised, it is not like we are close. i do not think we are.

it looks like the euro/dollar relationship means we will see some kind of a deal. what you think happens if we do see some kind of resolution before friday in the currency market? cs: --sor economi alix: go ahead. >> i think the base case scenario is we are going to reach a deal by the end of the month. i think what we are indicating is that they could combine those payments at the end of the month. maybe friday is a little bit less critical than it used to be, but i think he could take a deal in drive. i do not think there will be a huge upside for that. nicholas, over to you,

greece seems to be more of a political problem, at least to investors in the way they are positioning. what are -- investors ignoring when they write it off? conomides: it will not be a critical issue, but if one country leaves a club that is supposed to have no doors, obviously others might go, and who knows when and under what circles dances, and that is a -- and political issue, who knows when and under what circumstances, and that is a serious political issue. there are the conditions in greece and also in portugal and ireland, and so on. scarlet: all right, nicholas, you sound somewhat relatively pessimistic, but, does greece have more power than we give

them credit for? 99 billion euros is what the central bank of those other banks all over the eurozone. in particular, it is mostly germany. if they default, if they get kicked out of the eurozone, germany does not get repaid, and it one point does greece, nicholas, have the upper hand? mides: i do not think greece has the upper hand, because it really needs the money from the eurozone. we are not going to keep giving you more and more and more money unless you see that you can balance your budget, that you are able to pay to some extent the loans that we have given you before, and we also know that if goeso bankrupt, if greece bankrupt, then you are destroyed, and we will have a little bit of damage, but not

much, so the dynamics of the game are such that it is very hard for greece to win. scarlet: vassili, what trait opportunities does this present -- what greek opportunities does this present? think the wrong conclusion would be you have to buy the euro on positive greek news. look. i think since the start of the year, it has been a lot about ecb qb, about data, and i think it should continue being that way. in a way, i think what the euro is turning more into is a relative yield play, and the fed is able to hike later this year, it is much more important for euro/dollar than what happens to greece. outside of the worst-case scenario, such as greece leaving the euro, that would be hugely

important, huge volatility them, but outside of that, we are really just focused on the economics and the fundamentals here. alix: what is the procedure now? greece has submitted its own proposal. what do the next four days look like? des: for theonomi economists, let's say, they need to take these proposals and try to shrink the gap that exists between them. as i said before, right now, it is very, very can herbal. shrunk, thenhas the politicians can find a way to gloss it over and say we are in agreement, but i doubt this is going to happen this week. it is very unlikely, but like said, they are no longer a problem, because they are going to consolidate their payment, so there is a little bit of time for this to be done, but it has to be done by the end

of june. not only because there are deadlines that end at the end of june, but also because there are very considerable payments to the european central bank that need to be done in july. there is no way that grief is going to do without receiving some aid, some loan from the europeans. so we have a deadline this friday, and then another. it is a faux deadline. do they default, do they not default, schizophrenia, or to and this right ignore it look at officials in terms of coming up with a more credible plan? economides: that is not really feasible, because whatever the greeks do not pay, the germans are others will pay,

and that will not happen, but what we could do for the debt is make a program in which the maturities get elongated, get put further in the future, let's say 75 years, and if we do that, the net present value of the greek debt is going to fall considerably. it is going to fall to 50% of what it is now, and i think that is a good show, a usable solution, and i think the greek government only needs to propose that, and it will happen. scarlet: all right, thank you so erebriakov from bnp paribas, and nicholas economides from nyu stern. we want to get more from julie hyman. ie: at the deutsche bank investor conference, some comments about the timing of the

fed rate increase. listen to what he has to say. fink: a more divergent world that is going to create more instability worldwide, and that is the next five years. we are going to have action by the federal reserve. i think it will be september. i think it will be the beginning of a long, slow normalization, and then i think by january or february, we will see the bank of england following up. fink has notin, wavered from that september. a lot have been changing expectations based on the data. all of that said, just like the other headlines here, he says he does like stocks. he likes european equities for the past month. he says do not fall in love with them, because he also likes

chinese and japanese equities. he is, quote, not frightened. inhibited, the fed he says, by the value of the u.s. dollar. the author says he thinks the and reserve should ask why the consumer is not to me right now. we definitely have seen them consumption numbers, most particularly the spending numbers yesterday for the month of april showing no change. basically that nation in spending, so interesting headlines. we will continue to monitor what he says at that conference. i love that. by the stocks, but do not fall in love with them. awesome. scarlet: i would be scared of them. absolutely. next on the bloomberg market day, the dow off about 25 points. ♪

welcome back to the bloomberg market day. let's look at the stories ross saying the bloomberg terminal. a helicopter from doctors without borders, rationing in a crashingern reason -- in the northeastern reason -- region. investigators probing the fatal amtrak crash in philadelphia human error.d out so far, no defects in the brakes and signals have been found, and there was no evidence the train was hit i projectiles. the accident killed eight.

investigators say it was traveling more than twice the speed limit on a bend. meanwhile, they wanted a white amtrak never spent the money that it needed for automatic control. a doctors say secretary of state john cary's operation on his leg went well, and he came out of surgery a short while ago. he was arriving after being on a military flight from switzerland. he was cycling in france. they say they will have no information on what his ability to travel is look like, especially with the agreement on the iranian nuclear story. and we want to go straight to julie hyman. we are really waiting for jobs friday. julie: we want to take at the big movers that we are watching in today's session. intel continues to be one of them after it agreed to a purchase. it is being downgraded.

the analyst there is struggling with how the deal is going to add value in the long term. he also disagrees with the assumption of a 7% compound , and another rate cut. cablevision could be a french company of austria's next target. however, they think it is more likely to buy a verizon operation. those shares are off. if you look at my bloomberg terminal, i want to show you what has happened to cablevision shares as of late. we have the yellow here, and they have pretty much track, interestingly, the orange. time warner cable. of course, time warner cable is being acquired by charter. it had an agreement to be a quiet, and yet, is pretty much in a connect to date, both up

about 18%. again, because of that speculation that it would be involved in some sort of a deal. i have also put comcast in here just for a reference about another cable provider who did not succeed in making an acquisition. date, soor the year to it is interesting that cablevision has participated, and again, citigroup is trying to throw some cold water on that speculation. also, another stock that is being affected, big lots being upgraded at barclays. they say the shares have pulled but the sentiment from investors is euro negative, given that the company is making some progress on its initiatives. alix: all right, thank you very much, julie. scarlet: still ahead on the bloomberg market day, stephen king selling over 300 milling books. we talk about the keys to his

lasting success, coming up. ♪

♪ alix: stephen king's newest keepers" goes on sale, and he has been selling many books since his first book back in 19 74. alix: and the type of offer that publishing has come to rely on. our bloomberg reporter joins us now. what makes someone like king so successful and has such a command of that market? report: this is the tip of the iceberg. he has also written plays and tv shows and movies, everything, and he has dabbled in nonfiction, as well.

likes to write, and he has been quite busy over the last decades. scarlet: if you build it, they will come? david: yes. james patterson made $90 million last year. it is incredible. he has all of these plots figured out. he comes up with the characters, then he shops it out to aspiring writers, but he is making a lot of money with people working for him. they can make a lot of money doing that, but that is not the road for most writers. amazon has the publishing dispute. and there are some new attractions. david: and when you look at what publishing is doing these days, by having these big name authors, there are less

mid-level authors, and what they are trying to do is find the next big thing, so they are --e. l.or yell james james, who is going to write the grey."0 shades of alix: and you have to make it into a movie. came out inie" 1974, and i think the movie came out two years later. david -- always a pleasure, scarlet fu. scarlet: i have to take off now. alix: we are discussing fifa, ne xt. ♪

♪ welcome back to bloomberg market day. let's get straight to a look at the top headlines. comments today from blackrock

ceo, larry fink. the investor conference, he told the audience how he feels about u.s. equities at this time. >> i'm not embarrassed for the united states, will they have better returns and other areas -- i do fundamentally, i am not frightened of u.s. equities, there is good allocation. " onlye also said, european equities, but never fall in love with them. and his third point rose 1.9%, again inost doubled the s&p 500. other managers that traded stocks did even better. month, jumped 6.2% last

and david einhorn rose as well. these are benefiting from increased mergers and rising chinese equities. it is a california style brawl. mark zuckerberg and other neighbors are at odds to obtain rights to property. they do not want him to build a mansion overlooking his house. zuckerberg's former neighbors say that they deserve -- deserve money and they are suing the developer. there's a trial date for november 9 area watch has a punch allow the problem. are slow to load. to fix that, apple will unload new tools for the applications. the upgrade will be a key highlight of the annual conference in san francisco next week. there are already about 1000 apps -- 4000 apps for the apple watch.

and that is a look at the top stories at this hour. coming up, in bloomberg market day, tidbit is offering details on the highly anticipated ipo. we will tell you how much money they hope to raise. u.s. auto sales are out, we will tell you which automaker has the 2000 -- best month since 2007. and we will look at the federal reserve, pouring cold water on the strength of the u.s. economy. and that is one of the biggest stories of the afternoon, sepp blatter announcing his resignation a few hours ago. this is days after being reelected to his fifth term. in his speech, he called for a new presidential election, saying that fifa need reform. >> the elections are closed, but is challenges that fifa facing have not come to an end.

fifa needs restructuring. now is jimmy, a former soccer player and captain for the u.s. national team. world cup,n the fifa 2006. >> i feel like one of those munchkins on the wizard of oz, dancing around. i can't believe this actually happened. alix: so you were shocked, any indication that this was coming? >> you thought maybe that it was a possibility that they would hit him eventually, but not this fast. it talks a lot to his ego that he would wait to get elected and then resign a few days later. alix: so the federal pressure, is your impression that this have to do with the federal investigation and it is working its way up to number two? >> the money trail is getting too close to him. he is savvy, he has been in this position for a long time, he has

exit strategies in place. he got to a point where he needs -- needed to resign with grace instead of getting arrested. alix: he doesn't seem to want to give up control. he said, since i will not be a candidate, and am therefore from constraints that the elections impose, i shall be able to focus on driving far-reaching, fundamental reforms that efforts. previous very poetic, i interpreted it as i am not president, but i will be just as powerful. >> i think somebody wrote that for him. his vision is incredible. he is a bit delusional with ifims that he has made, but you cannot do that as president, how can he do it now without can train -- constraints? that is confusing. alix: right, now he wants to impose termd

limits. .he longer list was huge why didn't you do that as president? end think he just wants to his story on a high note. he wants to be a hero of this whole thing. saying, i wasn't aware of it, there were bad people anything. he is in fact at the top, he is the one controlling the rest of the body. alix: what is the power of the sponsors? coca-cola said they want fifa to clean house. do they have the power to make them clean house? >> no question. they did not get there without having sponsors, tv deals, so it: payment, budweiser comes in saying things need to change. the perception around you is negative, around fifa it is

negative. if you want us to sponsor the big event, you need to step down. alix: can you tell us anything about the man who will now oversee these measures? >> it is hard to say, but the spotlight will be shining bright on the reelection and who will be in charge. i think he will play everything straight. alix: it will be the next president? >> i'm putting my name in the hat. alix: how do you do that? >> i figured why not. there are a few guys out there. there is a former player for francine has experience. -- for france who has experienced. there are plenty of guys. theeople want to complete upheaval and get fresh blood from the bottom to the top. biggeran you bring in a -- banker, can they run out a

lot better? >> there is a risk for them to be corrupt as well. looking at the internal workings, who has the most power now that sepp blatter has stepped aside? >> it is hard to say, it has been pushed to different regions. key members will have more power. michelle -- michelle bottini might have power. think they are reluctant to take the power until the investigations have played out. alix: behind the scenes, in terms of the country struggles, forid have folks calling sepp blatter to resign and others who supported him. >> as much as we don't want sports to be mixed in with politics, it is. world leaders and get involved. i can't really say for sure with

regard to how much it influences all of this, but when you think about the 2018 world cup in russia, you have to think that both of those tournaments are on the table. will we push forward with that? feel fixed in russia did not come off well. cutter has plenty of human rights violations, trying to build these stadiums to have that in structure -- infrastructure. they need posturing to make sure that these world cups are still held, because they are moneymakers. . you for coming down. detailsid that offering today on the ipo, they are seeking evaluation of as much as $3.3 billion and hope to raise $478 million.

can fit the justify the valuation? drew is here. >> it is a real business, they revenue5 million of from last year. they make a product that people by. and they continue to use it, which is sometimes an unusual thing in the tech world. one of the big challenges is that a lot of people get these are my victim them as gifts, then they stopped using them after a few months. alix: it is kind of like a diet. everyone is on a diet, after a few months they give up. >> the diet doesn't come with such a big valuation. alix: but there are giant companies, so i'm guessing that they have a lot of new users. many people do not continue with the said that. >> i don't know if you guys have

them, but a lot of times you give them as gifts during the holidays. 50% of their sales last year came in the fourth quarter. instead of you going out and saying i want a said that, someone says i want to spend $100 on a gift, and they give them a fit bit. use it for a while and then it drops off. this is an issue. these guys need to figure out how to add on other services to get you to continue to use it. get that data, go to the website, those other things that are key after the one time purchase. pimm: who will make the money from this? softbank, are they selling shares? >> i don't know. one of the interesting things is that they are looking at going into the corporate wellness market. mm: do you get premiums for

the company? thinking it ise great of my employees walk around a bit more. you give them fit this and you are able to track -- it's bits -- fit bits keep track. up froms need to get the desks moore, walking around. my suggestion, instead of a lunch break, a fitness great. expense, if you can get that down, it is great for the coming. they are starting to do -- the ipo will get a prize and the next few guys, $14 $60 -- 14-16 dollars a share. is not theg up, fifa

only global organization that is hiding scandal. trobras,discuss pe coming up next. ♪

♪ welcome back to bloomberg market day. , 15 now for the markets minutes before the closing bell. we will head to julie who is looking at the action. julie: will we close up, close down? take a look at averages. at the moment, we are in the red. but we have been bouncing up and down today. let's look at the s&p 500, that

shows fluctuation that we have had today. take a look at the chart that we have, there we have it. we were lower for much of the early session, then higher, then lower. the range is tight. not a lot of conviction, certainly one way or the other. you have to look outside of stocks today. look at the u.s. dollar, the ds why index seeing -- dsy index seeing the most fluctuation today. actual inflation. and continuing negotiations with greece causing fluctuations with the euro today. oil prices at the highest today, at least made 12 and depending on what we see, that will continue. will we see them gain, we will

see about that. now at 4.8%. weekly inventory report tomorrow for oil. a lot of speculation having to do with inventories and whether we will see a drawdown. and bonds bought up the most over the two weeks time. we are seeing interplay with europe where we continue to see a european bond market selloff. alix: of course, we have the job data. and now top stories. euros, oner i army black, one jewish have received medals of honor. the president host in a ceremony at the white house, almost a century after the two men rescued comrades on the battlefield. pull of men to safety after a bloody battle. rescuingfficer

comrades well holding off a german attack. and a scary moment at the french open. taken out after a large piece of metal paneling fell, slightly injuring three fans. cor off ated -- seated areaded after high winds. and you want to eat the world best restaurant. that is in spain. restaurant magazine has named a spanish restaurant the number one restaurant in the world. it happened at a ceremony last night. this restaurant one the same award two years ago. you cannot have a concept like this without controversy. a french chef said, you do not even know if these judges eight

at the restaurant they voted for. making a return to the bond market. it has been her by-kick back scandals -- by kickback scandals in the past. and now the surprise investors 100 year bonds. it is the first emerging-market company to issue long dated notes since 1997. lisa joins me now. year bonds, for 100 that?uld find that -- buy lot of people. it was originally at 9% yield, but it went down to 8.4%. after the bonds were sold, even more people came in to buy them. it is mind-boggling. 100 years, 2115, do you think we

will use cars? alix: do you think they will be around in 100 years? company with scandals. they had to take a right down due to corruption related expenses. this is the company that is able to borrow 100 years right now. alix: who are the investors in this situation? is it my grandma, she will just hold this for 100 years who will give it to her great-granddaughter, or is it a trade? dollars are billions of from these funds that need to go somewhere and need that yields. is a magic number for pension funds. other institutions are trying to match income with obligation. this does have home in some of

those types of firms. if you have big pension from funds, this-pension coupon looks good. that said, these bonds are the most vulnerable, 280 increase in yield or -- to any increase in yield or inflation. alix: how easy is it for to get out of the set? long-termooking a bonds, monitoring them, they in two months. that is the most ever for a two month. . these can really tank. alix: so the bond that will mature in 2044, we have seen this with petrobras. investor seea bond insurance any company that has these issues? and you have dollar-denominated

bonds at a time when the dollar could increase, how will that factor in? price ofave oil, the oil, and has rebounded, but it will continue to fall. there are factors. alix: it was a great story. thank you for helping me break it down. some automakers have not seen sales this good in years. we will see who is benefiting most for the month of may. ♪

♪ alix: the biggest u.s. automakers and their estimates for the month of may, chrysler posted gains. this was less than analysts predicted. and matts is julie

miller. perspective, a these auto sales at a post recession high, but that in context area that context. >> we are back up to over 17 million -- $70 million, so a real come back as far as our sales and there seems to be a long way to go. the average age of a car on the road is 11 years old, people need to buy new cars, but how can they do it? there is all kinds of new credit devices, leasing has grown, it used to be only for a worse -- porsch or like this. and now termse of loans are longer. people are getting six-year

loans, seven-year loan. boom here. a how healthy is it for the automakers and for the consumers.-- alix: julie, how healthy is it? >> the one that surprised me the most was chrysler, whose sales are among the strongest relative to expectation. and the stock is down today. thoughdoes not seem as -- and that is not typical, they don't always trade on the auto sale numbers. there is a debate now if a company should release monthly data. mcdonald's adjust. -- mcdonald's just stopped doing it. traders have already made that decision. they are trading on the longer-term. >> as they should be, month

month is notone enough, for sure. alix: what about the issue of the automakers? >> if you look at stocks over the last 12 months, you will see that gm is up, ford is down roughly 5%. that is not an up arrow or down arrow, they have issues in house. there was a recall problem, ford has had the switchover from the former f150. and how long can the sales go on? closeok, we have the coming up next. the dow is down 27 points. ♪

♪ alix: we are moments away from the closing bell. marketing -- this is bloomberg market day. ♪

alix: choppy session, the stocks finishing lower today, closing lower for the third time in four sessions. but the dow did end up off session lows, up at one point. a did climb their way back by about 30. the real story, the dollar suffering the worst drop in two years as the euro killed it. by joe weisenthal. one stock that caught my eye was built the -- delta. revenue, andenger the reason why a cop my