fed raises rates? we will take you straight to washington for the headlines. scarlet: we will be hearing from .ber's chief advisor mark: jamie dimon is now a billionaire. good afternoon from bloomberg world headquarters in new york come on mark pocan, here with scarlet fu appeared scarlet: we have breaking news for you. the fed releasing its beige book. had to peter cook for the details. peter: this may beige book could provide jenny ellen and her colleagues at some reassurance the u.s. economy rebounded after that dismal first quarter. the anecdotal survey was

compiled by the dallas fed and finds that overall economic activity expanded from early able to late may, five of the 12 ad districts reporting moderate pace of growth, the rest are reporting more modest growth. the outlook among respondents was "generally optimistic. a manufacturing activity increased. most districts reported in uptake in retail spending. overall, vehicle sales rose. the strong dollar delivering a hit to the steel industry. travel and tourism increased everywhere except new york and kansas city. staffing firms reporting steady hiring activity.

the reports on other transportation services were generally mixed. rain helped deal with the drought in some parts of the country, that helped the agricultural sector. the avian flu outbreak hit poultry producers. most districts said residential and commercial real estate activity and construction improved since the last report. oil and gas reporting pretty big hit. no surprise with what we've seen for energy prices. some reports of layoffs, wages rose slightly. prices stable or taking up. of the slowdown was on the first quarter but not an economy necessarily racing forward. scarlet: thanks to peter cook in washington for the latest on the beige book. mark: let's see how the markets are reacting. julie, good afternoon. we've traded in a tight

range today. we've remained positive for most of the day. an enormouseeing amount of reaction, maybe a slight uptick in the s&p at this hour. pretty much holding steady from where we were before. if you look at the bond market as well, we've seen yields on an upswing today. after the ecb did not do anything to act on rates. still expressing support for its version of quantity of using. it looks like the yield on the tenure right now is right around 2.35% -- 10 year right now is that around 2.35%. as we take a look at what's going on with the dollar as well, that has her made pretty steady today. it had been trading lower. bouncing very slightly off the bottom. unless the beige book has any dramatic pronouncements, we

don't tend to get a lot of market reaction. it's more color on how the economy is doing. let's take a look at the top stories we are following at this hour. cbs is offering its showtime cable network channel as a standalone subscription on broadband. be available next month to apple tv customers for $10 and nine cents a month. launched a digital service that gives viewers access to the network's current series and a number of older ones. scarlet: apple is recalling its xl speakers after a customer reported it overheated. there were eight reports of problems with the speakers battery. says customers can apply for a $325 refund on its website . ready for more flash crashes and more market volatility. rules designed to

help make the system safer have also made markets less liquid and more prone to sudden swings. global fixed income and equity markets seemed reasonably balanced. scarlet: one of the sources of those swings, perhaps greece. lexus service has a message for his country's european creditors. let's get real. message. tsipras has a a final proposal to break the stalemate over bailout funds. --ditors have been asking the ecb president says any plan must accomplish several goals. draghi: the council wants greece to stay in the euro, but there should be a strong agreement. a strong agreement is one that produces growth, that has social and is also fiscally sustainable and addresses the

remaining sources of financial instability in the financial sector. this will be the component of a strong agreement. scarlet: greece has submitted its own proposal. it's just not good enough. mark: a day after announcing his decision to resign, sepp blatter is back at work at fifa headquarters. interpol has added six men with ties to be for -- ties to fifa to its most wanted list. scarlet: it would be a first for the nfl and yahoo! the league has signed on with yahoo! for the first global stream of a life football game. because of the location comes the game will begin at 9:30 a.m. eastern time. mark: welcome to the real world,

college graduates. adjusted for inflation, young college grads make less now than they did 15 years ago. oververage salary, just $37,000. wages barely increased while women's salaries fell almost 7%. scarlet: jamie dimon helped build two of the world's biggest anks and that has made him rarity among bank managers. he is now a leader -- billionaire. his net worth is $1.1 billion. j.p. morgan stock is near record highs. jump started was by the sale of $110 million in citigroup sales. he helped citigroup before being forced out. citigroup. build mark: for more perspective on the fed's latest economic report, we are joined by lisa brumme lisa and carl.

lisa: a bit of the reaction we did see was actually a bit of a covering of the selloff. the data really showed moderate growth, which is not consistent with rapid sudden inflation. it will be ok. it was described as anecdotal data used to supplement a hard enough that is already been released. does fomc included in its dashboard? rl: absolutely. there is theory and reality. this provides more of the latter. there's two things that caught my eye here. first of all, the retail. activity improving across the region. this goes into late may. retail sales were somewhat disappointing and consumer spending on the soft side.

a lot of that spending is going into services and there was lots of mention of the early easter holiday pulling sales into march out of april. retail was one thing that caught my eye. the second was the manufacturing figures. we've been in the soft patch for two quarters now. activity is lousy in the dallas fed district in kansas city fed district but elsewhere shows factories are regaining traction and these are both important developments. peter cook summed it like this -- no sign of the slowdown we saw in the first quarter, but not an economy racing forward, either. lisa: exactly. why are we getting this tantrum in the bond markets right now? you are seeing tenure at the highest level since november, 30 year similar. you are not seeing this massive

inflation -- there has been a rebound in oil prices but it has not been so dramatic in the past couple of weeks. fundamentals are marching along. e aare not seeing mayb contraction, but there's the stronger dollar. this is not a gang busters economy. scarlet: not the economy pushing bonds like they are now. karl: there were the comments from mario draghi earlier today's they would not modified the pace of quantitative easing. that, that not doing would suggest rates could be slightly higher. not significantly higher. lisa: their continuing the pace. carl: at 235 now. europe is not-

backing away from its stimulus. so why are people flipping out? people are recalibrating and saying, wait a second -- mark: mario draghi is saying today that is working. carl: the issue was maybe ecb would accelerate purchases around the time of these greek negotiations getting settled. that is clearly not the case. scarlet: do we get a clear sense of economic direction from the beige book or this week's data or do we need to wait for the main job support? bit ofe get a clarity, but not enough. it's mushy and unimpressive. the jobs data is the proof in the pudding. june is off the table at this point. the fed will not rush to raise

rates. lisa: i think the bond market right now is responding more to europe. there's this question of whether an economic data point from the u.s., especially happy to do do withs -- having to jobs, will have some dramatic effect on the market. right now, the focus is on inflation. the deadline for greece is friday. here we go again. carl: there will be a risk mentality -- i'm not so sure that friday is really the date. the important thing to remember is this support for the alexis tsipras government is deteriorating. the majority of greeks want to stay in the euro zone. we will have to leave it

there. thank you both so much scarlet: coming up come anthem taking a page from the starbucks playbook, offering its workers a free college education. what gives? what do they get out of it? ♪

mark: welcome back. i'm mark crumpton, here with scarlet fu. scarlet: let's head to julie hyman with a look at the markets right now. the fed beige book came out. what was the effect on the markets? julie: there doesn't tend to be much of an effect. it did seem to indicate that

there are areas of wage growth. i did want to look at the other movers we are seeing today. interesting trend of movement within the social media companies. we are seeing facebook, twitter, all on the rise. all doing well. aynga trading at e three-week high. those three stocks helping in technology. go pro is trading at its highest in five months. also seeing a gain in amazon, shares up 1.5%. out and put aame $500 price target on the stock. we are seeing a lot of $520 out there or close to it. the average price target is still for 70. -- $470.

up 40%.s last year comment fell by 22%. -- last year, it fell by 22%. some tech movers doing well today. scarlet: thanks, julie. let's take a look at the top stories crossing the bloomberg terminal at this hour. we got a snapshot of how the u.s. labor market is doing. american companies added 200-1000 jobs last month, slightly higher than estimates. 000 jobs last month. interest will soon allow users to buy products like clothing and crafting supplies straight on its website.

it's the startup first move into e-commerce. consumers will be able to see small blue price tags on images of items available for purchase. retail partners will include stores like macy's, nordstrom and kate spade and tens of thousands of local boutiques and brands. the bids are flying on ebay for a chance at lunch with warren buffett. the bidding is now more than $1.2 million. the annual charity event started sunday evening and cuckoos friday. -- concludes friday. offering admires a chance to get some one-on-one time with the founder of berkshire hathaway. scarlet: here's another top story we both like. starbucks,a cue from free collegeers a

education. employees can sign up for online degrees in business and health care at of the new venture universities college for america. anthem will reimburse up to $5,000 a year. employees are eligible if they've been employed for six months and work 20 hours a week. scarlet: the latest job perk. -- youinsurance is so can get health insurance without necessarily being employed full-time. mark: some of the other companies offering tuition. offering up to 5250 th. it seems the other companies are stepping up as well. scarlet: we will also subsidize some people's graduate school degrees as well. what do the companies get out of this? it's great pr.

you are buying attention at a nominal cost. to let them go to an online college. starbucks requires students to apply for federal financial aid. the taxpayer subsidizes this as well. i applaud the private sector, but i think the bigger question, the bigger issue here is what happens when an employee gets this degree? what do you do with it? plan, nois no game outline of how the employee can use that degree to move on to the next stage, what value is it? mark: we saw a lot of that during the financial crisis. folks a graduated at that time come out armed with a degree and want to get a job and have the educational qualifications, they just don't have the resume to go along with that. 3-4 years later, they are still working.

scarlet: everyone else has degree inflation. education, he of did get an engineering degree at harvard but did go to business school there. scarlet: why is harvard getting a new school of engineering? ♪

scarlet: five years ago, uber rolled out in san francisco. it's unlikely it will be slowing down in time soon. mark: they now operate in 300 cities. , the man advisor behind barack obama successful

presidential campaign in 2008 spoke with stephanie ruhle to explain whether he still room to grow. >> we have to continue to innovate. and make the service even better. bring the wait time even further down, make sure the service -- our drivers are remarkable. they provide a good service, very friendly. we have to continue to innovate, bring more products. we are experimenting with the delivery of food on demand. think yourdo you existing products need to improve? many say wait times are longer, drivers are worse, cars are not product hasexisting slipped back a bit. david: we are trying to improve every day. that weers tell continue to grow and we continue to have people making the decision not to drive

themselves, maybe even to ditch a car. we want to continue to get wait times down and bring it to more people. that's were something like uber pool, you are helping with congestion. how do we get that on scale? we are starting to see it work in cities like new york and 10 for cisco. our drivers do a remarkable job out there. -- new york and san francisco. any company has to innovate. is how wesion of uber can help. ,e want to reduce congestion have more and more people make the decision not to own a car. congestion is already intolerable. scarlet: he has been on a warpath of late. mark: stephanie asked him a good question. you've been hearing these complaints, or stories, whatever you want. is it about going forward or

trying to fix the existing model? scarlet: you don't use it, do you? mark: i do not. mark crumpton does not drive on the new jersey turnpike. mark: driving on the turnpike is another story. mark: he values his life too much good you are off for the day. i will see you tomorrow here we have much more coming up. joining the ranks of george soros and mark zuckerberg. he is a billionaire. ♪

just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. scarlet: welcome back to the bloomberg market day. let's get straight to the stories making news at this hour.

it's not quite an ultimatum, but european creditors will present a final proposal to alexis tsipras. he will be in brussels to meet with the head of the european commission. it will focus on the policies that greece must adopt if it wants to avert a default. one european official told bloomberg that it was not sufficient. led an from saudi arabia opec meeting with executives from the world's biggest oil companies in vienna. one was the ceo of bp. he had this to say about those oil supplies. >> there's lots of supply right now. u.s. oil production is certainly up and flat. it's not falling. chinese demand is not the growth rate using before. there's just a lot of oil around. scarlet: hello opec members were

told they should anticipate more supply. once the sanctions are lifted. longer theett is no second richest person in the world. the spanish retail baron is now billion -- $70.5 billion. the richest person in the world has anl bill gates who estimated $85.5 billion. a changing of the guard at the french open. beatenjokovic has just rafael nadal in the quarterfinal. he is chasing his first french open, the only grand slam he has not one. hour, up in the next half opec ministers meeting in

vienna. was making waves in the oil markets. .ore fallout from fifa will these corruption charges that her sponsors and companies from pouring money into the beautiful game? he did not get an engineering degree at harvard but did go to business school there. john paulson is still giving foreign million dollars for new engineering school. this $400 million. is now a member of the three, club -- three comma club. pimm fox spoke to bill coen about how jamie dimon built his fortune. >> the first is jpm stock. the valuation is very clear.

the other bucket is more mysterious and requires more of our special bloomberg -- take a valuation on the stock is sold he gote got fired -- fired because he did not sell when he was 90% down. to take that stock and compounded over the years on top of the salary he has received and do that over 24 years, that stake is worth -- >> a 6% interest rate. >> a fairly conservative assumption. a lot goes into that. that.tes, things like we're pretty confident that at one point, he is across the threshold. >> should this be of any concern to you? >> not really. as i have pointed out a few times, when jamie dimon first

came to j.p. morgan chase, one of his earlier shareholder meetings or investment a meetings, he said j.p. morgan stock should be $100 a share. now, it's $61. ride to be a tough j.p. morgan shareholder during the last five or so years. wonder, he is a popper compared to some of his colleagues. schwarzman worth $20 billion. -- it makes you wonder, why doesn't he just strike out on his own and be worth 10 times that? >> he feels like this is what he is supposed to do, this is what he was meant to do. he built citigroup and rebuilt

banc one and now is rebuilding j.p. morgan chase. when he retires, he might think about doing something like that. i don't think this is a guy that lusts after $30 million. is it unusual for someone to have this kind of money be in 40% stock? >> it's not unusual. you want your ceo to be aligned with the interest of the company. not a flashy guy. conservatively standard of life. he's not like one of these hedge fund tycoons. in, but if he had $20

million, maybe he would have more. he has been criticized for being tone deaf. >> absolutely. inng the top of the big bank the world if you look at personified he is as the fatcat banker cliche. the fact that he is a billionaire will only add more to that. pimm: the overall pay package is in line with the other executives. >> he and lloyd blankfein jockey for position of who gets paid the most. if you look over the years, wasserstein,ruce other. banker types who have crossed if billion dollar threshold,

he isn't able to cross that threshold after all that he has done, you have to wonder. scarlet: that was our contributor and bloomberg view, columnist. coming up, we hear from the opec meeting. more from the bp ceo, next. ♪

scarlet: welcome back to the bloomberg market day. we have breaking news crossing now. matt miller at the breaking news desk. bill canryone's cable now be set by cable operators without having to first request permission from local government it from theuest fcc. not been made public, but there was a vote in to fcc led by tom wheeler override or do away with completely localities, s'sicality's and state oversight of your cable bill. if time warner wanted to increase your cable prices in new york, they would have to ask

new york city first and if they said no, they would go to the fcc. normally, the fcc always granted price increases. at of 224 requests since 2013, all but four were granted. it was almost a ceremonial ruling in place but it will now be cast aside and cable companies will be set free to price your bill how they like. you see a bit of reaction in the stocks. time warner cable was already down today. comcast was not rising very much. blip, maybe attle knee-jerk reaction. it does look like a good thing for cable companies. they have always gotten approval from the fcc to raise prices in almost every single case. it seems it will not change very

much on your actual cable bill. scarlet: a bit less full of friction. thank you for the latest from the fcc. let's get your commodities close right now. alix steel is here with me. look at that. we have the dollar weaker and oil prices lower as well. alix: not a perfect correlation there. we saw oil over $61 a barrel just yesterday. we got the department of energy numbers in terms of production and inventory today and it shows a couple things. u.s. production actually rose by 20,000 barrels a day. .4%, buying less crude, using less crude. inventory rising significantly about 3.7 million barrels a day. you are seeing inventories hubsg come amazing storage

-- you are continuing to see inventory build in terms of product. the concern is coming you can make as much product as you want and use as much crude as you want, but at some point, the product will build so much it will hurt refining margins and refiners will say closing up shop for right now and that will weigh on demand for crude. extent: i wonder to what the opec meeting is looming large over the oil markets. ahead of the meeting, leaders gathered with executives and one of them was the bp ceo, bob dudley. he spoke to the surveillance team this morning. mark.here is a question how long it would take before production slowed down. production has been rising since the first half of the year.

resilienting more than some thought two years ago. scarlet: that was bob dudley, the ceo of bp. alix: i think the industry is dealing with continued oversupply and pressure on prices. you look at the rig count, dealing with 60% loss of rigs but still seeing production continued to climb. bp --ll see copies like iran is saying we will export 100 million barrels a day within six months of sanctions being lifted. that's the opportunity there. alix steel will be coming back in 15 minutes. we will talk more about the bond drought. we have more news coverage for you right now.

we have the federal reserve releasing its latest snapshot of the economy. the beige book says the u.s. economy expanded in the past few months even as manufacturers took a hit from the stronger dollar. fed districts reported moderate growth and three others described expansion is modest. bill ackman is looking for international buyers for the sale of bond holdings -- he will attend meetings to market dollar pots outside of the u.s. deutsche bank and ubs -- other bems will become managers -- comanagers. they are all subject to market conditions. the irs will give identity that victims copies of bogus tax returns filed in their name.

the irs says the textile and information on 104,000 taxpayers and used the data to file 13,000 fake tax returns. that led to $39 million in refunds. now that long time fee for president -- fifa president announced -- people are speaking out. fourvery good day football. .> we needed change at fifa this is the change we wanted. >> we are not going to have real change unless it is sweeping change. the risk right now as they replace sepp blatter with somebody in that same system of cronyism patronage. >> the overwhelming believe that michelle will be his successor

-- >> michelle has a problem in the sense that he is the european chief end of the worl. >> he has been one of the loudest people against sepp blatter come also one of the loudest champions for qatar to host the world cup. >> prince aly is a young man, he has a lot of baggage. >> the decision of running or -- i know he is considering this with an advisor. >> there's the possibility that agree to continue with russia in 2018. it's impossible to do this and 2022. that has to change. in qatar. that is never going to happen. they will not allow this to happen. >> i don't see how they can have

qatar.22 world cup in >> why did the executive of fifa decided to put the world cup in qatar against the advice of their own safety committee? -- i will leave it to you to make your own conclusion. has not sepp blatter announced when the election will be held. it cannot be held for at least four months. coming up, the biggest donation harvard has ever gotten and they can think john paulson for it. all the implications, next. ♪

scarlet: a record-breaking gift at harvard university. john paulson giving $400 million to harvard's engineering school, the biggest omission harvard has ever received and yet another example of how the rich are getting richer. joining us from boston is john lauerman and lauren. harvard has a $36 billion endowment, bigger than half of the world's economies. of the students who applied last year. it does not need the money. is this philanthropy or a billionaire buying karen to get mission for his grand children? .> poor little harvard

this is not only the biggest gift to harvard in its history, it' also replaces the $350 --lion gift that went to the they keep setting records. who knows what is next on the horizon. what's interesting about this gift, it's not stadium naming rights, it's the school of engineering and applied sciences being named for john paulson who most of our viewers remember from the credit crisis. it's poor engineering, which is a huge focus right now -- it's for engineering, which is a huge focus right now. is the latest mega gift. we had steve schwarzman giving $150 million to yale for a new on com campus center.

upgradethese are all to current facilities. harvard in the last year has gotten to other writing it. -- two other mega gifts. they've had a lot of mega gifts recently been none are going towards helping students specifically. scarlet: this is an arms race among these schools to build state-of-the-art labs. thata rate of spending pressures other schools to keep pace as well. will they charge higher commission as a result? >> tuition has been rising. students going to school is dropping. some schools have started to cut tuition.

the interesting thing about harvard and yale, they have such rich financial aid programs. harvard -- majority of students do not pay the full tuition rate. , overis relatively high $50,000 a year. most students do not pay it. they have an extremely rich financial aid packet for almost everybody that goes there. we talk about the bifurcation in america between the haves and have-nots. -- howhe ivy league financially sound is higher and? -- higher ed? laura: there is so much money at the top that the top schools are hounding most of the assets.

the top three have 70% of all the assets. 17% of all the assets. harvard enjoys nonprofit status, it owns a lot of land does not pay taxes on it. what level of discussion is there that other highly doubt schools could lose their tax breaks or should lose their tax breaks? laura: there has been legislation introduced that they should. they have so many benefits from not having to pay taxes on these huge investments. they argue they are benefiting the community. i'm not sure that it has come to a head, but cliques have argued for years that they should have to pay taxes. scarlet: you see any level of that comes close to

what the for-profit education sector has endured? john: sure. scrutinyame level of about quality of education, but certainly about price. that is something that comes up. the obama administration has commanded all schools, public and private to reveal their sticker prices. at whatents know tech they're getting into and give them an idea of how much that they might graduate with. thank you so much. still ahead, call it the bond bloodbath. mario draghi warns higher volatility is on the way. ♪

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francisco,on in san 3:00 p.m. in new york, 2:00 a.m. in hong kong. latest data in the fed shows the u.s. economy is growing, but is

it fast enough for janet yellen to raise rates this year? and move over warren buffett -- ortega is the the second richest person in the world. we will explain his rapid rise in well this year. announces a standalone showtime streaming service to the latest entry into the changing media landscape. good afternoon. i am scarlet fu with alix steel. let's get straight to a look at markets. alix: we are looking at a slight rally underway, but we're still kind of in the world of flirting with those record high spirit currently, the nasdaq is floating around its record close level. you have the s&p off its closing an intraday high. sort of around their, but we have not been able to catapult higher. part of