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 that is due to the

currency market and bond market. scarlet a lot of directionless trading or no -- not so much in the currencies. the euro has risen to a two-we cai versus the dollar. there is volatility, according to mario drago, and the euro at $1.1251. alix: it was set in order for the euro to plummet, you need dovish action. we did not see that. part of the deal today, no market was really all about the continued bond fell off we have been seeking. -year yield climbed to 2.36% pure the 1000 year german yield, .88 percent. it was an negative land a view weeks ago, it feels. that is wreaking havoc across the other aspect classes. scarlet: we will discuss more on the bond route in just a moment. meantime, we want to look at the other stories making headlines. a big change for cable customers are the u.s.

an agency official briefed tells is reallythe fcc cable providers, including comcast, can raise customer rates without approval from local governments. despite opposition from broadcasters, the fcc, led by democratic chairman tom wheeler, voted to take away oversight of basic programming packages by states, cities, and other localities. with the change, the fcc will assume cable companies deserve to escape local rate regulation. it will fall to jurisdictions to ask for permission to retain the power. alix: another sign that the risk of deflation in europe is pretty good the ecb president is at central bank has raised its forecast for inflation this year from zero, but just 2.3%. mario draghi -- but just to .3%. draghi said you should continue to see right through the next couple years. mario draghi: the impact of the lower euro exchange rate and the ascension embedded in futures markets of somewhat higher oil prices in the years ahead,

inflation rates are expected to pick up further through 2016 and 2017. alix: the ecb has jumped started europe's economy with $1.2 trillion quantitative easing program. draghi center is no need to expand and. scarlet: the federal reserve releasing a snapshot on the u.s. economy. the so-called beige book says the us economy expanded in the past two pot months, even as manufactures to gain it from a stronger dollar and slowdown in energy-related investment or four of 12 that districts reported moderate growth. three others report expansion is moderate. officials will hold the next and june 17.ne 16 alix: or lou today, we got a snapshot of how the labor market is doing. the adp report says american committees added 200-1000 jobs last month, slightly higher than estimates are tomorrow, we get initial jobless claims. friday, the day the government comes up with the may jobs report. an ultimatum,e

but european creditors will present what they call a final proposal to greece's prime minister. the new proposal will focus on the policies that greece must adopt if it wants more bailout aid needed to avert default your greece submitted its own plan yesterday, but a european official said it was not sufficient. oil prices shot of refrigerant the government's report on crude inventories earlier today. stockpile fell for a fifth straight week, the longest string of declines since last july. however, the energy to pharmacist total oil inventories remain near levels we have not seen in 80 years. plus, u.s. production continues to claw its way higher. scarlet: that is a look at the top stories. bloomerp in the marketing, former rhode island governor weekend caffe is expected to announce his bid for the u.s. presidency today. we will tell you what that means for the other democratic candidates for the race. alix: the nissan ceo is speaking big market share gains, we will

speak to someone about why he is sticking with his target. coco bill gross' next big short is china's index. but not just yet. timing is to be determined. alix: the global bond rout deepens after mario draghi warned that higher market volatility is here to stay. mario draghi: we should get used of high volatility. at very low levels of interest rates, asset prices tend to show higher volatility. in terms of the impact this might have on our monetary policy stance, let me tell you that the council was unanimous in its assessment that we should look through these developments and maintain steady monetary policy stance. scarlet: joining me with reaction is peter, head of macro strategy and green apple, and lisa from whence it follows the

bond market for bloomberg news. -- lisa abramowicz who follows the bond market for bloomberg news. there is a lack of liquidity, and that is being blamed for the soft today. is that reasonable to you? peter: yes, their problems in europe. its acteeds to get together. you have a trifecta. fundamentals suddenly look better. adp was decent. yet the technical for the positioning is wrong. everybody's talking about how low bond yields are. that is not true. alix: when you look at the bond market, that is where people go for safety, right? is this going to fundamentally change the way investors see the ethnic class? lisa: people have been waiting for this for a long time. if the bond market will see an incredible rally, the bull market is over, there will be a lack of a safe haven, not a

haven. that is to be determined at this point. whether we have seen the start of that move? when you are seeing is more volatility in bonds than even stocks. to peter's point, when you're seeing is that people have plummeted into the same assets for years. even now, they do not really want to wholesale sale. it is not know, is this the real thing or not? you are seeing trading in the margins of and they are shifting by hundreds of billions of dollars each day, causing a big tantrum. the people are not locking in necessarily those losses but actually selling or holding en masse. scarlet: you tweeted that markets always revert to the mean. but which mean to we revert to? leader: we have been seeing buying of the tips in the treasury market. that is looking well, much cheaper than it was a month ago. i think the realistic issue is that we were at two dollars -- 2.60 present on the 10-year last summer care we have added over 3 million jobs then. so why is that not a realistic

level? people are focused too much on the year champion we have to go back longer-term. that is why this elephant has long to go. lisa: we talked about what is at play here is inflation. the models for inflation have really broken down. we do not have a sense here the money printing has not ignited inflation yet. people are questioning what will. suddenly, use inflation picking up the people are wondering, is this going to be at? is inflation going to surge? this office really in the 30-year bonds, the 10-year bond, not the two-year spirit this is not a federal reserve-spurred selloff. this is an inflation -- this is all about inflation. peter: and we have seen yellen look at that. shown signs of inflation. yellen says we have to look at alternative measures. alternative measures are showing higher inflation. scarlet: i do not want to talk

about greece, but the last-minute resolution in greece on friday or sunday night halt the selling? make: no, i think it will the selling go faster. you will see a risk-on triggered in europe, they were selling off. but spanish and italian bonds were rallying. the flight to safety bid will disappear. bunds and treasuries will continue to sell off you and i .xpect a deal dog you want to deal. merkel now want to deal. so a deal will happen. the deal.raghi want merkel wants a deal. so a deal will happen. green spot ande it was greece. it was sort of an irony. spot. always been the red scarlet: reverting to the mean. alix: when you look across the bond market, is there a market that has adjusted to this volatility that we have seen? peter: not really. the credit markets, investment

grade, and high-yield have held in very well. some are down a little bit today, but they are outperforming the treasury market. so far, i think people have been reluctant to sell the corporate bonds. alix: is that a risk-entrée? peter: partly. that people are worried about the liquidity. so they sell their corporate bonds in a moment of fear, they may not be a buy them back. we need another leg down. lisa: the volatility, isn't really that traumatic yet? or is it really just a concern of how bad it will get? if this keeps going and going but you do not feel like there is a bottom like you did at some point in mate -- late may of 2013, that could become a problem. but the blips and moves are not -- peter: a lot of investors feel comfortable that they own a 30-year bond with value. they do not feel comfortable owning a 2% 10-year. alix: on but they will on a amount.s bond for that

scarlet: breakdown liquidity. we used that word constantly. we have a lot of global a quiddity thanks to the european banks -- we have a lot of liquidity. ly limitede a relativ trading liquidity. treasury market, you will see a lot of trading at a specific price. a lot of back and forth in a narrow price range. as soon as someone comes in with a larger move, it instantly gaps wider. what is people scalping will call fake liquidity. it looks like there is a lot of liquidity, but it is only for the narrow price range. it resets and comes back in at the new higher or lower price. alix: does this game change when the federal reserve stuff reinvesting their maturing securities and it starts to tighten? feature: we have seen a hand on the off the run treasuries. all these high coupon, longer 20-to 30 haves,

in your bonds. they are hard to get pricing on. they're not accurately priced. we have seen discrepancies with etf.an no one knows with a big value is on a response, so have lost liquidity. scarlet: price discovery once again. alix: fascinating. : peter and lisa, thank you. alix: coming up, former rhode toand governor is set announce his bid for s. presidency. we discussed how the former republican turned independent post to unseat hillary clinton as the democratic front runner. ♪

garlic co. welcome back -- scarlet: welcome back. julie hyman has an update on the big day in treasuries. not so much or equities. julie: there are things worth noting. we did have things to consider that he were talking about. of course, the ecb, the stuff on they liquidity side of the treasury picture, how that might be clinging to equity. .30 1%.is up the dow and the nasdaq each getting .5%. we have seen movement in the dow jones transportation average. you're looking at the year to date. it trending lower today. there is concern about what that might mean for the sustainability for the rally in the dow jones industrials. recently, we have gotten a rebound really, a three-day rebound in the average that at

this moment is the best since february. we will see how it is at the end of the day. market, we have to look at what is going on there, as well. there has been a more disk i did move. 2.37% is the yield on the 10-year right now to it we have economic data in the u.s. today and people looking forward to the job report on friday. there is interplay between the andand the federal reserve where they are in their tracks of quantitative easing. its besturo is having two-day rally in london four years. again, the same driving factors. the ecb nonliving today, but still, as you have been talking about, committed to easing in the eurozone -- of the ecb not moving today. scarlet: thank you so much. now i look at the top stories crossing the terminal. there are concerns ukraine is headed back toward a full-blown war. separatists in eastern ukraine

say 15 people in territory under their control were killed today during battles around the rebel stronghold. dear craney in government and rebels have accused one another sparking the latest round of unrest. it is the worst violence offense of the cease-fire was reached in february. give identitywill theft victims copies of bogus tax returns filed in their names. the move comes after a bloomberg news article about an identity theft victims' effort to learn how much of his personal data identity thieves had included on a return filed in his name. complicated. the irs says thieves of stolen 104,000 taxpayers and used the data to file some 13,000 state tax returns, which led to about 39 million in refunds. scarlet: that is the least couple kitted part of that story. those were the top stories. the democratic pool of white house contenders is growing. former rhode island senator a governor lincoln chafee is expected to become the fourth

politician to announce his bid. scarlet: he is known as the last liberal republic to serve in the senate. in 2013a party switch to joining as with more is john heilemann. talk about this more. this is a colorful guy. he was once a republican and now is a democrat. in between, he was an independent. he has covered the waterfront in terms of party affiliation. he was the mayor of a town in rhode island for four terms. he was then a u.s. senator appeared then the governor for rhode island. he won the governorship in a multi-candidate race where he only had about 35% of the vote to his performance as governor was poor enough and he cannot really run for reelection. his approval rating was so low. he has had the kind occur that would make some people wonder why on earth he would be running for president. it seems he is running to make a

point, which is hillary clinton cannot be trusted and america needs to be not so adventurous in terms of world affairs. those are the two big points he wants to make. we will see how that goes for him. the idea that he will be the democratic nominee, not taken people inusly by many the democratic party. alix: a lot of work to just make a point. there was a new iowa poll to the question of decimal george w.'s influence be a good or bad thing if his brother gets elected and has to run for presidency? a majority of people said it would actually be a good thing. i was surprised at that. what was your reaction? this is kind of the gold standard poll for iowa. we have been rolling it out all week. a lot of people, it will be surprising. a lot of people get confused -- with a jeb bush real george w. bush problem is for jeb bush. we asked whether people would mind if he was the advisor, and

they do not really my tim is the advisor to jeb bush to the question is whether they want another bush in the white house. we talked to iowans in our focus group a couple weeks ago, and they were worried that the bush name will make jeb bush unelectable, because george w. with theot popular broader electorate. it is not at all republicans do not like george w. bush. that is not the issue or the issue is that republicans worried that george w. bush, as an overhang, looking jeb bush house.the white alix: thank you so much. watch "with all due respect." it will have former providence, rhode island, mayor on the show later today. definitely watch for that. showst: fans of showtime may soon have another way to watch their favorite shows good beginning in july, cbs will offer showtime tv service over the internet as a standalone subscription.

a month and will initially only be available on apple products. apple, ipad, and apple tv. alix: 10 million or so people pay for broadband internet service, but we do not pay for cable. so we kind of live and die by these apps are credit suisse had a note out siding cbs as one of its favorite picks, saying there are a lot of growth opportunities for those with the best content as viewers shift from tv, cable, to more online. scotus cbs worked aggressively with the cbs all axis late last year -- scarlet: cbs worked aggressively on this. still ahead, ims hill -- i am still mourning the loss of the rangers in the stanley cup finals. i cannot bear to watch it. ♪

alix: tonight, the chicago ofckhawks play in game one the stanley cup finals. scarlet: very good. new york rangers fans, like our director, four dr., and me are still licking our wins after the rangers lost last week. dna shelled and not play favorites, but come on, it would have been better if the rangers made finals for the second year. david reports. always comes to have one of the nhl a posthumous original six teams in the stanley cup finals. -- nhl's original six teams in the stanley cup finals. the rangers have won, if they had, two pre-expansion teams would have met in the finals. that would have boosted ratings. last time that happen with 2013, chicago versus boston, it's exciting game series that averaged 5.35 million viewers. new york is the largest media

market in the u.s. future cargo, number three. tampa, st. petersburg, number 13 . new york is also the biggest city in the u.s. with the most hands. watching games, buying heads, buying jerseys. these are fans of teams that fans of other teams like to dislike. that means a matchup involving new york is a big draw. hockey'shave helped bottom light jet the rangers in the stanley cup finals, but marginally. sports economists say the problems cannot be topped with just one still are series. hockeyith raging spirit has devoted fans. it just does not have as many devoted fans as football, baseball, basketball. look at finals game in the last quarter decades -- 2011, game seven of the bruins versus the vancouver canucks. just over 8.5 million viewers tuned in. impaired users in a of football,

last season, a game on average got double that. the real issue is revenue. last year, the nfl made about $10 billion. major league baseball, about $9 billion. the nhl, around $3 billion. that was david gora. go to a north dakota, 27-year-old man was found guilty while driving a zamboni under the influence for he was a rested while driving erratically that she was arrested last winter. he was sentenced to nine days. alix: and like $1500 or something. he is pretty psyched. it was on youtube. alix: much more. we're talking about bill gross. ♪

♪ welcome back to bloomberg market day area we will take a look at the top headline area apple is recalling its speakers

after a customer reported that it overheated. there have in problems with the batteries. burned.on's finger was customers can apply for a refund at its website, and they can also receive apple store credit. bill ackman is looking for buyers for square holdings. according to a person familiar with the matter, ackman will meet with investors outside the u.s.. will be arranged in europe, north america, and asia. there will be additional meetings on june 8. they are considering investor grade -- in dollars, subject to market conditions. it will be a first for the nfl and yahoo!. the league has assigned on with yahoo! for the first three global streams of live games.

yahoo! will stream the game teamen buffalo and another , beginning at 9:30 p.m., eastern time. coming up in a bloomberg market from megill hear whitman about a strategy behind the split of her company. and bill gross says at the next opportunity is waging against chinese stocks, but he does not say when. and we will see the stock market at the close. that and more, coming up. is optimisticn that the carmaker's performance in the u.s., they have increased production in north america. their global strategy is explained to matt miller. >> we have learned our lesson.

today, approximately i would say north our rate in america, the same thing in china and europe. but we want to do is vocalize as much as possible, so when you sports from one or two countries. a nissan over the past couple of days, very impressive, quiet and what serious for $32,000. it is not the most popular kind of car to sell in the u.s. a four-door, sports sedan people want crossovers. >> we want to be a global maker. two segments which are progressing the most in the u.s. are compact suvs and the large pickup truck. but you cannot disregard the

others. maxima is a strong name for nissan. a strong car,e starting today. we want to have at least 10% of the segment. matt: are you looking for that market share early in the next year, 1.6%? >> we have been progressing a lot over the last years. thanink we will be at more 2007 -- 2017. we should be reaching the numbers. i feel good about it, because there is new product introduction and actually, making them in the u.s. is important. matt: you spent a lot on formula one efforts, do you feel that

you are investing more than your fair share for the rest of the auto industry. think you invest in technology, because you want your growth to be stable. investing will help you down the road. if you want to be sustainable in growth, you have to invest in technology. we are not doing more than our fair share, if i compare myself to other car companies, we have a strong long-term strategy. people withre me to a short-term, i'm doing more, because i care about the sustainability and growth of the company five years down the road. sergio from chrysler talks about the act that everyone is spending to build the same technologies, he says there more collaboration. >> yes, there is a lot of waste

in the industry. everyone coming with their own developments, even though at the end of the day come a we end up with common technologies. partnershiprategic with another company, where we are developing technologies with them. i don't mind sharing the technology without handicapping the company. you share with sergio marchionne? are the two of you and talks? >> nothing specific going on, i mean in general, we have absolutely no reluctance to collaborate with anybody as long as it makes sense for us. we believe in the fact that good,g technology can be not only in terms of the consumer, -- alix: the last hour you heard di

top $1 billion. warren buffett is no longer the world's second richest person. ortega now takes that spot. but his is ortega? rob is here to explain. who is he? >> he is not a well-known name like warren buffett. if years ago he became the richest person in europe. ortega is the guy who likes to be left alone. him, i justfrom want to be with my wife out on the p out that the outset without someone paying attention to me. that is hard to do. alix: how did he get there, he

itex.e founder of ind i know that zara is under that. his company has a reputation for extremely tight operating. they have a fast fashion inventory process, where manufacturing takes place around a world. they can restock the entire stores around the world, but they have a great international spread right now. alix: i appreciate it. we do have breaking news on fif a. jilly has more. -- julie has more. toie: there is news related a gentleman who had an apartment in trump tower for his cats.

schemetted to a bribery in soccer broadcast rights and 1998.volvement from he said that committee members at fifa were in on the private scheme, that bribes were accepted with the south africa world cup choice. they agreed to take bribes, it was concealed by wiring money to the caribbean. , blaser says he made all of these admissions and documents unsealed. he faces 20 years in prison on a top charge related to all of this. he was granted $10 million bail. all this according to the agreement of his plea

with prosecutors here. as we get more details about the corruption within fifa we will get more headlines and more details. he was pretty much of the key witness toward the arrests and indictment of the fifa officials. the transcript is from a 2013 guilty plea hearing that is now being made public. these headlines now crossing as i speak. i will bring you more of them as we get more from the transcript. --x: as we fifa may be fifa scandal, the fifa there wasn't speculation that there were more people that they were able to turn to get all of this information out. julie: we just don't know about them yet. this is the guy that we know about, at this stage. if we get any more details as to

what the allegations are, it seems like this is going to be the source of that. now we see in the transcript had health issues, diabetes, rep told -- correct ctal cancer treatments, i don't know if that affects his a position to take this plea. he did say that the toys for south africa world cup was based on bribes. we will get more details on elements of a bribery that are being alleged by the u.s. government, does it have to do with other world cup as well. there has been a lot speculated upon, that this is the first leading to what we are talking about. alix: more to come on that.

thank you julie. coming up, emily chang joins us with her interview of hewlett-packard ceo meg whitman as she prepares her company to be split into two parts. ♪

♪ alix: welcome back to bloomberg market day. time now for a look at the market, 15 minutes before the closing battle. we will head to julie. we have talked about a little bit of volatile itty -- volatility today. let's look at utilities and , buty stocks, falling financials and doing well. 500 on aok the s&p

daily basis, there is called to liddy -- there is volatility. a lot of up and down. nothing fundamental. year we have seen more dramatic movement as the ecb did not do anything on the right front, but expressed willingness to be supportive. the 10 year is now using 2.37%, sinceghest we have seen november. rising concern, not only about the liquidity issue in the bond market, which i know we talked about earlier, but also volatility, relative between the bond and stock market. if you look at the bond versus stocks, you will see a different picture for this year, if you look at the bloomberg terminal. on the one hand, bonds have taken off.

on the other hand, that is down. among the folks highlighting chiefs a problem, the international economist saying that the ball market is expressing concern about the trajectory of the federal reserve and equities at some point will catch up and that source of concern. you are also looking at frontier communications, that is one of the best performers in the s&p 500 today. ofy announced an offering $700 million in stock. all of that to fund its of verizon of lines in california, texas and florida. it removes overhang of the stock. and in context, frontier is the most shorted telecom stock in the s&p 500. alix: i didn't know that.

that was a look at the markets. and now top stories. get ready for more market volatility, pimco says that rules designed to make the system safer have also made market less liquid. the report also says that global fixed income and equity markets seem reasonably valued. there housealien and -- billionaire paulson giving harvard millions of dollars. his engineering degree there, but he did go to business school there. and a new report says that young college graduates now make less than they did 15 years ago. the average salary, just over $37,000. wages for men rarely increase, while for women, it is up 7%.

and turning now to hewlett-packard, they will be splitting into two companies on november 1. one company will take a personal computer business, the other on business services. emily chang spoke with meg whitman about the split in an exclusive interview. emily, what did she tell you about this turnaround for hewlett-packard? details from her about when she started thinking about this split. she said, last spring she went to the board and said, i know there has been talk about splitting the company. she said, i really do think this is the right decision, in terms of getting the board to do it, it was an emotional journey. this is a company that has been around for 80 years. she believed that this was the right choice. it has not been an easy ride for her, she has been a 3.5 years.

coming into it, there were things that she didn't expect. look how she describes her experience. >> it is hard. whenever you come into a turnaround, i have done a couple of them, it is harder than you think. even though i was on the board you find out things that you couldn't see as a board member. the company has been through a lot. perseverance, you get up every morning and you fight the good fight and you win hearts and minds of people in the restore the customer service emily: response. -- emily: she has been a ceo for a long time. she said she has spent a lot of time talking to ceo friends. i asked who she has talked to, listen to what she had to say. g, the ceo there has

been a great counselor for me. starbucks, iz of was one ofhim, he the earliest board members i had at ebay. emily: what kind of things it did they say? turnaround ata starbucks, we compared notes. emily: one of the things howard said was that he really have to win back the hearts and minds of employees. she has also been talking to john donahoe, the ceo of ebay, who is splitting his company now into ebay and paypal, how coincidental that is. she said, they have been comparing notes and it is helpful to have someone in the same boat. alix: what did she say about layoffs, cost-cutting, them trying to scale? hp is looking at

restructuring charges through the split, 2 billion -- $2 billion more. she has artie cut jobs and she said that there will be more layoffs. at this point she does not know how many people will get laid off, but it is something to think hard about. it is the hardest part of the job. she says, they just have no choice if they want to get to a better hp, these are the hard choices. alix: you can catch more of that interview on bloomberg west today, you don't want to miss it. the complete interview with meg whitman is on thursday night. bill gross is smiling because he sees the next big opportunity. he says it is china. we will discuss is next. ♪

♪ alix: bill gross says the next big investment opportunity is short chinese stocks. not just yet. surged and far outperform the s&p 500 this year. these levels may not be sustainable. anding us to discuss, mary mike reagan. i like this have a short, but i don't know when that will be. mary, we heard something similar with germany. >> he is known for these broad announcements. you have this big idea, but then he trades around it. there is some disconnect between -- sometimes you have a fully short and it doesn't -- chiptle short, and it

is workout. >> that they would get him on the phone and clear it up, because he could mean he thinks that they will go higher, but it is difficult to short that market right now. is about to get easier. not to get into details, but basically the mainland chinese sages have a link with the hong kong exchange. the shanghai composite is the big one in china, it is artie connected to hong kong. -- already connected to hong kong. it is not quite as free as you can in this country. they don't want errors -- borers orrowers, taking and

then shorting. alix: mary, you said that the pieces can be good, but the timing and the off. it seems like a bad word of mouth that way. why? >> bill gross feeds on this noise. he likes being the center of attention. it carries a great weight in the market when they click on the story, the e-mail what he thinks because he is a legendary bond investor. there is a different paradigm of what he is investing. before ite just days is decided if the chinese stocks will be included. like the government is

more positive on chinese stocks. >> for sure. bill gross is not the only when i think we should be shorting chinese stocks. clearly looks like a bubble to a lot of people, but the problem with bubbles, because that this could be the beginning of a bubble. it is difficult, everything i have read is that people think this rally in chinese stocks will end when the government wants it to end. talking china. good to see you guys. close.up, we have the we are talking about wendy's ♪. ♪

from queer moments away the closing bell. moments away from the closing bell. this is bloomberg marketing area

-- market day. [bell] you are looking at stocks climbing their way higher into the close. point.bt up by about 64 up.s&p 500 is also and the nasdaq retreating from the closing high that it had earlier. the real story, the dollar had of worst day since the end march. i am joined by joe weisenthal. one stock that really, it attention today was wendy's. wereannounced that they buying back $1.4 billion in stock, they pop at 800 -- over 800 million today. it is unusual that they