carlos ghosn is here. what we will talk about all of that means for the united states. and a billionaire, jamie dimon has officially entered the ma club.e three com ♪ olivia: good morning. erik: breaking economic news. the isn nonmanufacturing index. we have seen more strength in the services sector. 55.7 in the index.

the estimate was for reading of 57. low estimates, still think doing expansion -- signaling expansion. there is improvement here, not as much improvement in the economy as economist were estimating. we have seen this recent trend of the additional money people earning, they are saving it instead of spending it. this could be a reflection of that trend. if you look at the different segments of the economy, manufacturing versus service is, services has consistently been doing better. personal spending numbers, services were the only number that saw, albeit lackluster, growth. erik: thank you. i mentioned we have a bunch of other economic data. indicator, 201,000

created. olivia: a little better than forecasted. let's see what it adds up to for the stock market. not a great deal. up fractionally. theia: later on the seve impact of where treasuries are trading ahead of that. 230: back to dthe neighborhood. for what can't wait happens friday. i will be in arkansas. you will be here. we start with the jobs report. companies adding 200-1000 jobs

201,000 jobs. jobs report comes out friday and is expected to show overall 221,000.rowth of thatts receded, a signal lows were returning to normal. 19.2% to $40.9by billion. erik: alexis tsipras has a message to creditors. he will push lenders to be realistic about what his country can accept. in brussels, his creditors will present a final proposal to break the stalemate. creditors have been asking alexis tsipras for a plan to reform greece's pension system and labor laws. mario draghi says that any plan must accomplish several roles. : we want greece to

stay in the euro, but there should to be a strong agreement. it is one that produces growth, has social fairness, but is also fiscally sustainable and addresses the remaining sources of factors of financial instability in the financial sector. this will be the component of a strong agreement. erik: it sounds a easy, doesn't it? greece has submitted its own proposal. one official told bloomberg it is simply not good enough. olivia: that threat of a default is one reason the global growth forecast has been cut. the global economy will grow only 3.1%, down from the 3.7% growth in forecasted last fall. the crisis in greece is hurting confidence and business

investment is lagging. erik: let's take you to the big interview of the morning, carlos powerfule of the most executives in the auto industry. he is standing by with matt miller. matt: thank you so much. let me start by asking you about auto sales. he had an impressive rate yesterday. nissan had a slight dip. what is going on, as far as nissan not keeping up? carlos ghosn: i think you need to evaluate the performance of nissan on a quarterly or yearly base. is not verybase representative. i am very optimistic about the performance of nissan.

last year we increased our position in the u.s. market and this year we will continue to progress, based on product renewal and technology. matt: i want to talk about the maxima in a moment. you have a problem as far as production. of yourot make enough compact suvs and that is the fastest-growing segment. carlos ghosn: we will support the sales of the compact suv by more imports. today we are having a supply coming out from our plant in korea. we will have more supplies coming from japan. at the end of the day, as we have a strategy of localization of production, you can expect more production from exit go and the united states. matt: had you make that decision -- how do you make that decision when you know at any point that trend can change? carlos ghosn: the basic strategy

is localization. we learned our lesson from the lehman shock. today, approximately 19% of our 90% of our sales in the united states are manufactured in the united states -- in north america. matt: the reason i ask about the newls is because of the maxima. i drove the car for the last couple of days. very impressive and quite luxurious for a $32,000 car. but it is not the most popular car to sell in the u.s. right now. forle are looking crossovers, suvs, and pickup trucks. carlos ghosn: you want to be a strong maker.

it does not mean you can neglect the others. forma is a very strong name nissan and a traditional name. we have a strong car. we want to make sure that we have at least 10%. matt: re: looking for 10% market share fully at the end of next year? carlos ghosn: today we are 8.4 percent market share in the united states and we have been progressing for the last four years. we will be at more than 10% by the end of 2017. by the end of 2016, we should be reaching those numbers. i so good about it. we have got new products in production. have developed a lot of technology.

you spend a lot on r&d for formula one. d feel like you are investing more than your fair share for the rest of the auto industry? carlos ghosn: i don't think so. you develop technology because you want growth to be sustainable. if you want to be sustainable in your strategy of growth, you have to have the technology. i do not think we are doing more than our fair share. if i compare myself to companies that have long term strategies, i am doing ok. if you compare me to people geared for the short term, i am doing more. i care about sustainability and the growth of the company. everyone is spending to build the same technology, it needs to have more consolidation. carlos ghosn: cooperation

between carmakers to develop technology is a good thing. even that the end of the day, we end up with mary common and technology. that is what we are doing. partnershiprategic with daimler. i am favorable to sharing technology without handicapping the competitiveness we need. tot: would you be open sharing technology with ser gio? are you in talks? i do not think there is anything specific. in general, we would collaborate with anyone if it makes sense for us. we believe that sharing technology can be very good for you, not only in terms of speed of developing, but ultimately

the cost. matt: thank you so much for joining us. erik: thank you. matt miller and thanks to carlos ghosn. theia: still to come, president's chief economist jason berman will join us and give his perspective on the slowing global economy and the role he is playing on the latest greece.ations for ♪

♪ olivia: good morning and welcome back to bloomberg market day.

straight to julie hyman with a look at what is moving in the market. adp coming innd, better than estimated even though we had the service report coming in worse than had been estimated. you have stocks rising today, not huge gains, that gains across the board. i also want to check on what is going on in the treasury market. we have seen the interesting divergence in perception about what is going on in the stock market and bond market. not that unusual. 2.34%.up today the difference in volatility between the two types of asset classes is also interesting. there is this unusual difference in the volatilities between bonds and stocks. take a look at my bloomberg terminal. what we have here is the index,

the top line. ix.the bottom is the v bonds been falling and volatility has been going up. investors have been going more nervous about the feds changing trajectory, whenever it may come. stock investors still do not seem to be concerned. these two things are going to have to converge at some point. we might see stock in terms of the volatility perception catch up with what we have seen in the bond market. olivia: thank you. global growth is slowing, the forecast cut to 3.1%. says the main culprit is the u.s.. the economy contracted in the first quarter. is at the forum in

paris, he is the chairman of president obama's council of economic advisers. thank you for joining us area do you have been defending the u.s. economy the past few months in the face of a slew of data points. shrank in the first quarter. is it still just the blitz you thought it was or are you seeing a deeper slowdown? : there is no question that a bunch of what happened in the first quarter was transitory, whether it was eather.ts or w the big thing to watch is the american consumer. by savings rate has shot up an unusually large amount. usually when we see that happen, we see it fall back again as consumers are still confident. better position to

spend the money. shift theuld like to conversation to what is happening closer to where you are in europe. there seems to be a new sense of urgency to get a deal done with greece. europe has put an offer on the table and alexis tsipras has put a counter offer on the table. what happens if they cannot reach an agreement? jason furman: i really hope they do. we have been encouraging both sides to be working hard, to be working together to reach out and force an agreement. gave you a good reason why. if you are asked what are the risks to the u.s. over the next year, one of the risks is that if you do not get a deal on greece. that is why we all want it to happen. it matters a lot for the europeans and it potentially affects the entire global economy. erik: there is so much

difference of opinion about what mean.it or default what would the impact on america be? jason furman: that difference of opinion is cicely why we do not want to find the answer to the question you just asked. there are a lot of things in financial markets where you can convince yourself that it is not going to cause a broader risk, it is not going to have any risk of spillover or contagion. often you convince yourself of that and you are wrong. we do not want to take that chance here. chances too great of a if there is a grexit. olivia: is there contingency planning? 's in the plan b pocket? : the discussion

here is very focused on finding a solution, and i think that is welcome because time is ticking. erik: do you have any sense as to where the european creditors are willing to give grounds to the greeks? it is pretty clear that alexis tsipras is not going to accept an offer that just says you have previousp to your commitments. they have got to give him something. the negotiations are not happening here today. the greeks have done a lot of reform in the last several years but they clearly need to do a lot more. that is what the institutions need to agree to. reform mostis the

urgent, pensions or the labor market? : the goal of all the reform is the same, to have the greek economy growing and growing in a more sustainable manner. ultimately, that is the shared addressed. set ofve the same interests. that is why we really hope and encourage them to do so. olivia: thank you so much for your time. that was jason furman joining us forum.ris, from the oecd erik: and we have breaking news. popping eye number. million being given to harvard's engineering school. it is the biggest a nation in

the college's history. it is going to rename the engineering school after paulson and establish an endowment to benefit research faculty development and financial aid. it is one of the largest gifts in the history of higher education. we are trying to figure out where exactly it ranks. raised $1.16ard billion asked year. also and is a graduate of harvard's is in a school, not the engineering school. the engineering school is where he is giving the $400 million. erik: of all the schools in america that do not need the is at the top of the list. that said, it it sounds like it is going to a good cause. this comes less than three weeks schwarzman gave hundred $50 million to yale

-- $150 million to yale. when we come back, why analysts just cannot seem to get it right. ♪

andia: investors journalists talk a lot about companies missing or beating earnings expectations. i do it almost every day. erik is rolling his eyes. always get itho it turns out they get it wrong more than i knew.

there is new study that shows , theverage estimate forecast error, mrs. target by 35%. ses target by 35%. the game of expectations. i think it is ridiculous. what the study is talking about is whether or not there was an improvement in forecasting accuracy since the new financial regulations went a couple of consequences- help to explain the situation, among them that research departments are no longer entitled to the cut of t fees generated by investment banking. on the whole, analysts are not making as much, not as much as they were 10 or 15 years ago.

it is harder to attract the talent. on the other hand, look at it truly cynically, which i'm inclined to do, in the era of they have to build models, instead of getting a tipoff. olivia: they are still doing it. erik: they could be underestimating the forecast. look at all of the companies that beat -- game.the game -- hate the olivia: thank you for joining us. more,ahead, much including the future of fighting cancer using your own. immune system. ♪

♪ good morning and welcome back to bloomberg market day. let's take a quick look at where

the markets are trading. a little bit of a rally underway. by eight tense of 1%. the nasdaq up by two thirds of 1% trading at a near all-time record high. we did get the isn nonmanufacturing index out this morning, showing the u.s. service industry expanded at a slower pace, the slowest pace in 13 months. report onve thep private employment that came in a little bit better than expected. just now, weekly crude inventories. julie: it looks like we have the fifth straight weekly decline in oil inventories. that is the first streak like that that we have seen since last july. it is a little bit of a smaller drawdown than anticipated, it nonetheless,we are seeing as yoe

oil prices turn positive. they have been negative on speculation the report may not be terribly positive for oil and looking ahead to the opec meeting on friday. gasoline inventories also down 334. thousand barrels inventories rising. overall, the headline number shows crude oil drawdown of 1.9 5 million barrels. we will see if oil can hang onto the gains of the looming opec meeting ahead of us. olivia: thank you. this morning's top headlines. opec leaders meet with executives from the world's largest oil companies in the end up. dudley.hem, bob he had this to say about the

global surplus. : u.s. oil production is certainly up. it is not falling. russian production is not falling. chinese production is not the rate we saw before. there is a lot of oil around. also said hey interested in investing in a ron if sanctions are in fact removed. consumers may be holding back the u.s. service sector. expanded atindustry its slowest pace in 13 months. the service sector makes up almost 90% of the american economy. consumers have been saving money from lower gas prices rather than going out and spending it. i day after announcing his decision, his surprise incision to resign, sepp blatters ck toork at fifa headquarters.

worstreeling om the scdal in its history rpol has d sin from fio its most wantedist. loretta lynch spoke earlier in latvia. loretta lynch: i do not have the -- comm onepp ,latte wn, exce tsay -- indicted officials 14 fifa officials. chicago is on its quest for its third cup. it would make the blackhawks the most accomplished club. tampa bay hasheoungest

roster in the leaguof the season on bloomberg market day, much more, inclung the late on wall stree the latest biion are wall turns is t a hee ndnager.of thr five. drugs spending on cancer topped $100 billion for the first time last year, this as a new class of six digit cancer treatment is coming to the market. they're called immunotherapies which use the immune system to they show promise but ar extremely expensive. dr. charles joins us. thank you for joining us.

it is great to have you on. i want to start with comments we heard from a doctor over the weekend in chicago. he came out swinging, very prices inf cancer general. do you agree with what he said? essentially, the increase in cancer prices does not match up with the improvements in efficacy. i think if there's going to be a change in the requirements over time, so that there are not temporary, mild benefits, but more survival, specifically drugs geared to increasing the number of patients cured instead of temporary remission. for them to be cost-effective, we have to focus on drugs that have stronger, more durable efficacy and curing cancer, not just temporary measures. olivia: do you agree that currently many drugs are mispriced?

attention lot of focused on the melanoma treatment with a six-figure price tag. do think the drugs on the market are mispriced? what i would say is that in the new melanoma study, for instance, there is a whole category of patients previously could not be cured. a number of those patients now, over quite a period of time have not recurred and may in fact be cured. it is a drug that is increasing the curing. often, patients will get a whole series of drugs that fail over time and end up costing a great deal more money than a single drug that may actually cure and improve the patient's life. olivia: let's talk about what is in your pipeline. you're developing several new cancer treatments.

give us an update on the progress you are seeing right now on those drugs. our pancreatic cancer vaccine is in the phase three trial. we are waiting on outcome data from that trial. in addition, we have a large collaboration with roche that blocks an enzyme called rdo. we are excited about the progress it is making. profit olivia your company's margin is slightly lower than your peers. to? do you put that of link: we brought in a lot revenue from our collaborations, and merck.

--ket for sales olivia: you are in trials for the ebola trial vaccine. can you make money on an ebola vaccine? link: the trials are ongoing and we are very pleased about the progress. hundreds and hundreds of patients are being enrolled. we are getting a lot of good safety data and data from the response to the vaccine. it is yet to be seen if we will get enough data to show clear efficacy with the vaccine in the field of their. there is a number of different vaccines for diseases such as smallpox and anthrax that have been developed and bought by the u.s. federal government or other federal governments around the world. there is a market there. we don't intend to make any

money off this product in the throat world and are developing it as a permanent solution -- in the third world and are developing it as a permanent solution. olivia: it is not a first world problem. it is something that can generate money for the link -- n ewlink? concern: there is a that potentially when people are traveling to africa, they could be exposed to ebola. the government has stockpiles for the concern that it may be used someday for bioterrorism. time.: thank you for your fundsahead, hedge managers are not the only billionaires anymore. ♪

olivia: welcome back. we are one hour into the trading session and it is time to get you caught up on all the market action around the world. i want to start with europe and go to hans nichols who is loving covering the markets from london. ans: take a look at all the green on the screen.

and the bank stocks are on a tear. the national bank is up 11%. athens,the story out of out of the equities market. take a look at what is happening with bonds. it is continuing, yields across the region are heading upwards. spain, u.k. leading the pack and even germany up a little bit. it looks like we are in a risk on situation. let's take a look at the mario draghi story of the day. thetarts to talk up economic data, not too strongly. i do not want to put too much on there. he did not say much on quantities of easing on how much further he is going to go and whether he is going to end it sooner or later. he said that we are going to stay the course. a bit of a luxury, but you can putting the euro

up a little bit and weakness in the dollar. one more look at what is happening with the british pound. you see, right here, see the big steep decline, that is negative pmi data coming out of the u.k. it is down just a tick. 0.8%. of itscally covered most losses. i will toss it over to julie. julie: we have some economic data here in the u.s. as well, adp reports the staging the big jobs report we get on friday, coming in better than estimated. services sector not expanding as much as had an estimated. about 13 expansion in months. nonetheless, on balance the economic data in the u.s. is being read at a positive. stocks are moving to their highs for the session across the board. the nasdaq tensely set for a record close, depending on where

-- on how things shake out in the day. take a look at my bloomberg terminal. a lot of green on the ca screen. only energy and utilities are down. financials of the best performers, among the best performers. utilities are the worst performers in terms of the index groups we were just looking at. mentioned what is going on in the treasury market. that is worth highlighting. the yellow on the 10-year note is the highest since november. of -- back point, it is tightening. olivia: i want to turn to asia. japanese yen, stronger

overnight. little change after fluctuating between gains and losses. one big story out of the region, a trading debut in hong kong, shares gaining 6%. it was spun off from a conglomerate in the biggest reorganization of the corporate empire. essentially, the reorganization created two companies. when the plans were unveiled, it would have allowed businesses to choose between a regional property business and expanding assets in more than 50 countries. ck holds property around the world.

assets are in hong kong. now here are some of the top stories crossing the bloomberg terminal this morning. more cost cuts at hewitt record a be on the way, which is splitting into two companies on november 3. interview, meg whitman was asked about possible job cuts. meg: there will be more restructuring costs as we continue to be effective and lean and competitive on the world stage. this is now a global economy and we have to be competitive. . we are very thoughtful about this. we doat i know is that if not get our cost structure

right, this will not be the happy ending that we all know it can be. whitman will be the ceo of the business enterprise and become chairman. you can see that interview right here on bloomberg tv at 7:30 p.m. eastern. pintrest will allow users to buy products straight from its website. it is the first move of the company into e-commerce. bluemers can see small price tags by the end of the month. those were your top stories at this hour. most readlook at the stories on the bloomberg terminal and at the top of the list was jpmorgan ceo jamie commajoining the three

club. he is now a billionaire. billionaire status is usually reserved for men running hedge funds and private equity firms. paid jamie dimon $20 million last year. hugh: you start really early making a lot of money. as he was a sidekick, he was doing top level jobs for companies that eventually turned into citigroup at a very early age. he was making $20 million at the very early age and when you compound that over decades, it gets to be a pretty big kitty. been making $20

million a year over the last 20 years? credit for this evaluation should go to pamela. she has been tracking jamie dimon for years. there are two big buckets. one is dpm stock, worth about $480 million. that is roughly half of his wealth. the other half is essentially an investment portfolio he did for the most part with stock from citigroup sales. the good thing about being fired from citigroup, which jamie dimon was back in 1998, is that he sold way before it crashed. he was lucky and away. -- in a way. olivia: make the case that he is worth the money. the crisis but a big dent in all of the banks and stock

performance. worth $1.1 billion? yes, because his valuation is its own justification. there are people worth more. this is a guy who was not sold or atock in jpmorgan, least that is what they say, et at all. i think he takes it very seriously. olivia: how do the other bank ceos stack up? hugh: they are feeling a little bit small today, i don't know. think about a ceo level jobs. these guys do not last very long. , makingo a billionaire $20 million a year, you have to do it for a long time. monahan has been the ceo for

five years and had lesser jobs before that. olivia: he could have made a lot more money, running his own fund. what motivates them to say at what motivates him to stay at the bank ? hugh: he likes being rich. but, i do not think he is primarily motivated by money. i think he is primarily motivated by putting his imprint on a huge, vastly important institution and having that institutions exist long after he is gone. olivia: he has done that. the only big american bank to stay profitable through the crisis. thank you.

still ahead, much more. including sepp blatter announcing he is resigning. how this will affect fifa's sponsors. ♪

♪ back.: welcome fifa's long-term president, sepp blatter, family announced his resignation. -- finally announced his resignation. he is now under investigation by u.s. authorities under the same operation that led to the fifa officials'rest. arrest. will it defer companies from pouring money into the world cup

game? quite a 24 hours. >> money talks. inquiries been recent because in some countries such pay a.k., you have to license fee in order to have your television. the question becomes, is the money the taxpayer is paying, is a corrupt going for and fragile and fraudulent process that awarded the world example.tar, for maybe, just maybe, they also -- anout and is hear alternative world cup. fox is joining me. don't go away. ♪

oilivia: good morning. it is 11:00 a.m. in new york and 4 p.m. in london. five years olds

and it's one of the most valuable startups at her. investors say it has nowhere to go but up. oilivia: meg whitman tells us why she decided to split up her company. pimm: and check this out. this is a $237,000 watch. we have the gentleman behind this timepiece. ♪ oilivia: good morning. i'm olivia sterns. pimm: and i'm pimm fox. we are 90 date -- 90 minutes into the trading day. let's take a look at the stock market. a lot of buying going on. assent of as of percent. big banks are leading the gains, j.p. morgan chase, wells fargo, o