. mark: the imf urging the fed to delay raising interest rates. scarlet: it is showtime for internet television. why the network is the latest to paul in the trent -- fall in the trend. mark: stephen curry takes the brain to the nba finals. will it be a slamdunk? -- takes the brand to the nba finals. will it be a slamdunk? scarlet: 2:00 p.m. in new york. mark: i'm mark crumpton, here with scarlet fu. scarlet: the bond selloff has stalled. it is equities turned to fall. the s&p 500, dow and nasdaq down by about 1%. the dow losing 186 points.

bonds initially extended their loss but have since stabilized. a higher price and lower yield. they're getting a bit of a bit here as the greek debt talks continue. beforemore of that friday. the euro is stronger but off its high of 11380. the dollar is hyper's the yen. that's high versus the end. little changed at this point at 95.49. the international monetary fund on the u.s. federal reserve to hold off from raising interest rates until the first half of 2016. the imf also said its forecast for the second time in four months. the lenders have the dollar was

"moderately overvalued." it would be harmful if it gets much stronger. legarde: in weighing the risks, we think there is a case for waiting to raise rates until there are more tangible signs of wage or price inflation done on currency evidence. in other words, we believe a rate hike would be better off in early 2016. mark: last month, janet yellen said she expects to raise interest rates this year if the u.s. economy meets forecast. columnistsew expressed surprise. >> it is very unusual or the imf

to be so specific and explicit about a policy action. it was today. it told the fed it should wait until 2016, even of a data remains fluid. mark: the imf expects growth to fall to 2.5% this year. it projected u.s. economy to expand by 3.1%. growth.ts expect 2.5% scarlet: a couple of key economic figures came out best last week, fewer americans plied for that apply for an employment benefits. the smallest in more than 14 years. the bloomberg consumer comfort index fell to a six-month low. higher gasoline prices could be the culprit. since 2015. the government of lexus slippers says it's objecting creditors

develop proposal that alexis tsipras says it's objecting the proposal --that thadebt proposal. regulators are suing -- the securities and exchange commission has filed suit --inst a firm called u.s. house of representatives is unlikely to vote on fast-track trade bill authorization until the week after next. that's according to a republican aide. fast-track authority would like president obama present congress with proposed deals that could ratify or reject but not change. john boehner says he hopes to get the bill on the floor in the

next few weeks. scarlet: apple says it is making progress on backlog orders sports new watches. all but one of its watch versions will ship within two weeks. the models will then go on sale in the actual stores. the field of republican presidential candidates keeps growing. rick perry is now in the race for a second time. he is the 10th declared candidate. jeb bush urging supporters to sign up to attend an announcement he is making on june 15. he will announce in man miami. mark: shares of t-mobile and dish rising today. there's talks that the two companies are in merging talks. the t-mobile ceo would run the combined company. ceo would like a $50 billion stockpile of airwaves put work.

in 1998 mclaren f1 sports car on display in new york. the auction house estimates that when it goes up for sale on august, it may bring $12 million. you will join an exclusive club -- jay leno and ralph lauren on the same model. -- own the same model. scarlet: coming up in the next half hour, 300 cities coming the country suddenly five years. fast theack on how ridesharing app service has grown. mark: cbs makes showtime prime .ime online a standalone internet service. we will hear from its ceo. scarlet: china's market could soon get a new rush of cash. all those stories coming up.

mark: back to the imf move emerging the fed to postpone raising rates until 2016. we are joined by lisa from abramowitz and carld o lisa reaga. carl: we're getting closer to time. june is not in play right now. why we are having this discussion at this point is a bit unusual. just the imf operation scheduled in the fed's timeline. in the past week or two, we've janet yellenrr emphasizing that the rate hikes are very much in play. he's confident the imf

consulted with the fed before making this augmentation public. who is this addressing? karl: the investor community. they are trying to make the point -- i'm sure they told the fed and the fed responded saying you are entitled to your opinion. said the fed will be bullied by the data, not bullied by the imf. scarlet: what about emerging markets? the imf is trying to include them. rl: said a tightening cycles have not been kind to emerging-market economies. it was the case in the early 1980's with the latin american debt crisis. there is a past track record when the fed starts to tighten, problems develop. ,he most important difference

this is a that moving very slowly. -- a fed that is moving very slowly. mark: how is that band market taking this news today? lisa: yeah, that's nice. selloff, the gains in the 10 year treasury, and began before she spoke. in the two-year treasury which should be the most sensitive to her comments, the most affected by when the fed exactly hikes interest rates, you are singing minimal movement. it's really not that significant. scarlet: i want to bring into context what's been going on lately. using this chil selloff in treasuries. >> sherman's liquidity problems in the ups and downs on a daily basis or even on them it is best minute basis scares the hell out of me. i don't think we're in a bear market just yet, certainly until

inflation starts to move closer to the 2% target. liquidity the molecular credit and volatility it implies. liquidity, liquidity and volatility it implies. will it pick up so much that it will actually trickle down and have a real effect on the economy? mortgage rates climbed to the highest since october this week. that will affect anyone who goes out there and tries to get a mortgage to buy a home. that trickles into the real economy. that's what people are concerned about. christine lagarde and the imf are looking at it saying if you already have tightening in europe because of a tantrum, that potentially counteracts the ecb's affect. that you told us today june is off the table. when is this going to happen?

carl: the fed wants to wait until they are confident the economy has gone through this first quarter. steadye more months of payroll gains, 200,000 are gdp numberse q2 which we don't get until the end of july. that makes the september meeting a perfect timing to be confident. gross mentioned a bear market the core pc -- deflator was -- scarlet: what is the bigger risk to the markets? moving too early or too late? because we've had this tepid pace of inflation. september is not necessarily to send. lisa: mike schumacher said the exact opposite. the biggest risk is moving too late.

the risks are mounting by the day. i was looking at a report, a paper by professors led by goldstein. he was looking at the difference between bond funds and stock funds. investors are much more responsive to bad news in bond funds. they're more likely to pull their money out of the fund that stock fund investors. why would you put your money in a bond fund? you want to get your money back. you start seeing negative returns, the investor will be more likely to get out. if you start seeing a lot of red, people are worried that they will start pulling their money. thank you both so much. scarlet: still ahead, today marks 26 years since the violence in tiananmen square. what has changed since that historic event and how modern-day china represent. that remembers it.

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mark: welcome back to the bloomberg market day. head over toave to julie hyman with a check of some of the big movers of the day. we are at session lows right now. julie: we will look at some up and down movers. i want to talk about the big deal everybody is discussing today. potentially t-mobile --. dish. there is fallout elsewhere among the telecoms. -- as t-mobile and dish

have been called the only two suitors left, i don't know where that will leave sprint. investors are selling the shares , they are down by 5%. we are watching at&t and verizon. not directly linked to a potential combination between t-mobile and dish from a but at&t was upgraded over at jpmorgan over optimism that the will be positive for at&t and verizon's acquisition of aol might not be so positive. another area of green we are seeing today is in the casinos. casinos that are focused on macau. this in part because they have done so poorly recently. we had an executive from galaxy payment saying macau gaining should improve in the second half of the year.

it was hit as china clamps down on corruption. all of these stocks rebounding today. take a look at my bloomberg terminal for a year-to-date charge of the macau china gaining index. you can see the declines we've seen for the year, down by about 23%. ,f you go back a little further these stocks peaked in january of 2014. since then, down 57%. there is a rebound stood a, but on the back of a lot of decline -- rebound today, but on the back of a lot of decline. mark: let's look at the top stories crossing the bloomberg terminal at this hour. plus angeles is on its way to becoming the biggest city in the united states with plans to gradually raise the minimum wage to $50 an hour. -- $15 an hour. an initial vote passed overwhelmingly but another is required for final approval because the first one was not

unanimous. says hang $43 million to settle in money laundering investigation -- prosecutors have been looking into the banks swiss subsidiaries. hsbc says it has approved practices to keep clients from using the bank to evade taxes or launder money. there is more fallout from major league baseball's steroid scandal. a cousin of alex rodriguez has been sentenced to seven months in prison on federal drug charges. he served as his personal assistant. he was one of 14 players linked to drug use. he was suspended from baseball for all of last season. today marks 26 years since china's government crackdown on protesters in tiananmen square.

june 4 has become an anniversary for overseas chinese. china, therend was a massive whitewashing effort. my must read today is from a woman born in 1989, 70 miles southeast of beijing. she writes about coming to terms with 1989. she describes house she only knew the event as a student right. when she got to college, she began exploring what actually happened and talk to foreigners and used a vpn to see these kinds of videos. in her essay, she reflects on what that generation of students means to her and her peers. no matter what they wanted to achieve or whether their plan was mature enough, they put

their next out and amended their rights. among my generation, we close our eyes and learn how to play the game rather than protest against the corrupted world. we had been taught to be opportunists. i thought that was a powerful way of reflecting back on what happened. mark: you mentioned what's going on because ever since 1989, the chinese government -- if there is anything that says tiananmen isare on a website, that taken off-line. they don't want anybody to talk about this. if there is any mention on china's version of twitter, that message could not go forth. it cannot transmit. electronically transmit money in those denominations. mark: they're asking the chinese government to make efforts to let people know this was a part of your history. the rest of the world knows about it.

scarlet: that might fall on deaf ears. there are tens of thousands of people in hong kong. it's a lot different this year because you had student protesters in hong kong. also protesting for their own democratic rights in hong kong. ans now about beijing being obstacle to hong kong's own aspirations. wrote -- she noted there was no entire generation in china with little or no knowledge that this event happened 26 years ago today. scarlet: doesn't affect their lives. coming up later this hour, we have more on modern china. this time on the stock market. ♪

scarlet: ub turned five years old this week. turned five years old this week. it's already in more than 300 cities across 58 countries. lessons he'sut learned from the company's public fight overregulation >>. i can come off as a somewhat peers advocate for uber. i also realize that some have used a different a word to describe me. i will be the first to admit that i'm not perfect and neither is this company. like everyone else, we make mistakes. we are passionate about learning from them. scarlet: as for the next five years, he is eyeing increased efficiency. >> more innovations that make uber cheaper than owning a car is with the next five years are

about. one major innovation we've ruled out recently -- ruled out recently is uber cool. .- pool when the company pulls up and you open the door, someone else is already inside the vehicle. two people taking a similar route at the same time now instead of taking two cars are taking one. when you chain enough of these rights together, you can imagine the perpetual trip. the driver picks one passenger up then picks up another, drops one-off, picks up another and the trip keeps going. the driver then always has a customer in the car. when you get to that level of efficiency, you can bring the price is way down. scarlet: he has a long way of -- he had to describe

exactly how it differs from what they do now. mark: he admits he is in the bull's-eye. a lot of people have said that uber might be putting tax economies out of business. taxi companies out of business. when he is tried to paint the picture -- what if you don't know the person? scarlet: they talk about the sharing economy. it's more like an on demand economy, really. you are taking off. mark: i have to. i will see you tomorrow. latest: coming up, the in the over-the-top trend. ♪

scarlet: welcome back to the bloomberg market day. let's get straight to some stories crossing the bloomberg terminal at this hour.

a request from the international monetary fund to the federal reserve. hold up raising interest rates until the first half of 2016. the imf credits the west growth forecast -- it's as the dollar was moderately overvalued and would be harmful if it got much stronger. lagarde: higher rates could still result in significant market volatility with financial stability consequences that go well beyond the u.s. borders. we think there is a case for waiting to raise rates until there are more tangible signs of wage or price inflation that are currency evident. thather words, we believe a rate hike would be better off in early 2016. scarlet: last month, janet yellen said she still expects to raise interest rates this year if the u.s. economy meets are forecast.

the government of alexis tsipras says it is rejecting its creditors bailout proposal. the proposal would "deepen poverty and unemployment." greases asking the imf to bundle its payments into one lump sum payment later this month. -- greece is asking the imf. in the probe of herbalife may come this summer. bill ackman has shorted $1 billion of herbalife stock and has called the company eight pyramid scheme. -- a german scheme. subway following to belize lead in going all-natural. -- chipotle's lead in going all-natural. it will be able to did gradually over the next 18 months.

facing stiffer competition from fast casual chains like panera and chipotle. those are your top stories. ,oming up in the next half hour a key opec meeting begins tomorrow in vienna. will officials cut production? the great debate over whether china's shares should be added msci. stephen curry is taking under armour to the nba finals. it could be a game changer for cord cutters. showtime will take on competitor hbo and the likes of amazon prime and netflix to sell standalone digital subscriptions in july. the service will cost $10 nine nine cents a month and work on apple devices. matt blank was on bloomberg television discussing the strategy behind new service with

pimm fox and betty liu. matt: we started off by looking at our current business model. when you adjust for all the offers out there and the packages out there, that was about what consumers were paying through the cable operator or satellite provider or at&t or verizon. additionally, we look at the over-the-top video business. we like the feel of that number and where we were versus some of the competition. betty: the competition being hbo now at $14.99. did you think that was overpriced matt: we will see. that's where we picked the $10.99 price and we feel pretty good about it. it would be easier to raise prices at some point in the future. we want to start out with a price that will attract the most consumers.

betty: what about the pay-tv subscribers right now? are you going to cannibalize some of those viewers? matt: we don't think so. there's 10 million people who have a broadband only subscription. they don't take video services. note a few weeks ago, they now have more broadband subscribers than video subscribers. that is a growing opportunity. that first target for us as those 12 million or so broadband subscribers who are not taking video. why not go to them with a ng at ant video offeri good price where they can buy showtime for $10 nine nine cents .99? we have nearly 24 million subscribers. opportunity

generally in the video universe to grow showtime. betty: do you think eventually pay-tv, that model is going to go away? matt: i really don't. not in our professional lifetime. a lot of people are happy getting all of those channels, sitting down and watching television and the technology keeps improving. betty: how can it not? how can it not cut into the pay-tv model? matt: is it going away or just barely stable -- fairly stable? they are also broadband providers. broadband becomes a part of their offering. are you really going to distinguish in the future -- do people really care where the signals coming from or do they care about the consumer interface?

these are great consumer interfaces that compete very use theh the way people internet in general. betty: how does this impact showtime? h today. about dis i know showtime is on sling tv. it will be. how does this over-the-top likeing impact something dish acquiring t-mobile? >> they now in addition to their satellite dish business now has a gigantic wireless device business.

it makes them a bigger potential distributor as a technology continues -- the technology continues to evolve. charlie needveryone nee this? matt: he did not mention anything about the t-mobile deal. he is an aggressive guy. betty: he is a standalone guy right now. matt: he is. up, wti backs up the $50 level before tomorrow's opec meeting. why they are expected to keep production levels unchanged. ♪

scarlet: welcome back to the day.berg market we have less than two hours to go -- crude settling near its low of the session, back to the $58 level. i had to bring in alix steel for some context here. we talk about oil's weakness. the big opec meeting is tomorrow. what is the linkage? alix: the underlying theme is not whether or not they will cut

, but increased their quota. quota, isise the telling the world we believe in these higher prices, we believe in the demand, we are not going to cut. we will defend our market share. more supply in the market -- we are still oversupplied. that will weigh on oil prices. saudi arabia taking a stand here and pushing opec along with it. are they the most important oil producer in the world? alix: yes and no. it produces 10 million barrels of oil a day, the biggest producer in the world as a single country. the growth rate tells a different story. citi crunched the numbers and found that over the last decade, opec and russia increased their production by 5%. brazil 5% and

canada, 40%. -- brazil, 25%. the growth rates tell a different story. scarlet: the north american shale revolution. what is the risk? at the expense of their spare capacity. spare capacity is what they're able to bring on in about three .onths it can stay for about three months. that is spare capacity. like your piggy bank at home. this increased production is coming at the expense of opec's spare capacity. inwas at 3 billion barrels october and is now down to 1.8 billion. if you eat up your piggy bank, won't rainy day, you have it.

you don't have the extra oil to make that up. geopolitical concerns -- alix: may be prices would be lower on a fundamental supply and demand basis because we are 2 million barrels a day oversupplied. wildcard really been a -- libyan production picked up. it's a real wildcard in relation to opec. when sanctions are lifted come iran says no problem. think it will be 500,000 barrels of oil a day. scarlet: everything depends on john kerry's recovery. the energy market would be looking at this in a whole different way. alix steel will be back in 15 mins.

let's get to som top stories. 's power could come to a chaotic and. end.aotic economic pressures in and russia -- flooding in ghana's capital setting up a huge explosion at a gas station. more than 70 people were killed. dozens of people sought shelter at the gas station in nearby shops to escape the torrential rain. the country's highest appeals -- he's 86 years old and in failing health. the new trial will start on november 5. jack markell taking advantage of raised $1.6ma

billion by selling new shares in his alibaba pictures group. up hundredalready 45%. -- 145%. staying with china, 2015 may just be the coming out your four chinese stocks. msci will announce next week whether will add chinese equities. joining me to consider the impact of that inclusion is brendan laherne. disclosure, you have a horse in this race. brendan: definitely. does it make it more likely that fif msci will do the same? brendan: if we get an announcement around the stock connect program over the next several days, it's a done deal.

right now, it would be difficult for msci to do so without the stock connect program up and running. the move by vanguard applies a lot of pressure. scarlet: the connect program currently in place is shanghai and hong kong. there has been market rumors and will launch in mid-august. we have not had the formal announcement. in order for msci to include their definition of china international, an element of those stocks are lifted julie le still have a few days. government regulators are aware msci decision. scarlet: china's initial leading would not be huge. it would be partial. it's very symbolic. it represents a lot of money. quantify what a full inclusion

of chinese shares would mean. brendan: it doubles the size of china. 1.9 trillionthe -- $240k would go into billion would have to go into the securities we own today. this affects all of their indices. asia and japan, a lot of money would have to go into this market. scarlet: emerging markets is the one people look at. way -- we'veular seen huge gaines and declines as the overall market has rallied. will msci provide more stability? brendan: they want to see foreign investors come in and institutionalize what has been a

predominately retail marketplace . a lot of the money going to the chinese stock market went the housing which has been fairly soft. trillion of $3.5 wealth created with the stock market doubling over the next year. that helps support one of their main policies, domestic consumption. scarlet: i want to bring in what bill gross said. our traditional metrics like p/e ratios applicable in terms of breaking down barriers of entry? brendan: we avoid what he was boarding to, a small cap in china up 200% over the last year. it's amazing. we are focused more on the blue-chip companies undergoing reform by the government among state owned enterprises. looks frothy.

of 1000. adding pes a lot of dreams might get shattered. we specifically avoided those securities delivered late. scarlet: what have you been adding to them? you are focused on china wouldn't comes to your etf. wendan: one of the areas find most appealing today are the u.s. list of names. the top 15 stocks in china listed on the new york and nasdaq in november. this is a big addition, about 3% of msci emerging markets will go to the top 15 copies listed here. internet, achina domestic consumption play. laggedan area that has the market in hong kong. to draw at's hard not conclusion that there is fragility there because -- >> it's a momentum driven market. there's been too much focus on new accounts being opened. we have seen that continue to

pick up. the government is time to crack down on margin trading. it makes them nervous. they want to support the stock market going up because the domestic consumption -- scarlet: thank you so much for your perspective. up, under armour taking a chance on stephen curry. now, he is taking the brand all the way to the nba finals. ♪

scarlet: the cleveland cavaliers to off against the golden state warriors tonight in game one of the nba finals. two fans, it's lebron james for steph curry. behind the scenes, there's another battle. it may be a chance for under armour to challenge nikes dominance on the court.

the nba could not have asked for a better match. who is the underdog here? >> as crazy as it is, it seems like the underdog is lebron james and the cleveland cavaliers. which is wild because he has been here for five straight years now, probably the best player in the game right now. they are the clear underdogs. scarlet: do any of the other players matter when it comes to endorsements? series, probably not. kyrie irving has a shoe deal with nike. it's lebron and his signature shoe versus curry and his shoe which just came out this year. they will be wearing the sneakers in the postgame press conference. they will have something on them. it's a big moment for under armour.

the only started making basketball sneakers five years ago. game forbeen in the decades. is the first time they've had one of their athletes on a stage like this. scarlet: there is a difference in the way that under armour and nike approach how they signer athletes. here ands the behemoth under armour is the smaller player. nike can sign as many players as it wants. it can sign lebron james. has lesser armour money. they have to be smarter and savvier. they took a shot on steph curry two years ago. that's the way under armour plays. they have to be strategic. you saw it in gulf. -- golf. he was the masters this year and they look like geniuses. scarlet: steph curry's daughter is a superstar in her own right. >> she has become a star in her

own right. she is part of his commercial appeal at this point. >> whether that helps them sell shoes, we don't know. it has raised his profile. scarlet: under armour is taking a page out of nike's book, limited-edition -- >> scarcity, making them in demand. one sells out, they will come out with agree t -- the curry two. scarlet: a red hot pair of sneakers and an athlete on a hot streak does not necessarily create an empire. reebok is a bit of a cautionary tale. iversen whod alan was the most popular player in the league. reebok today doesn't have much of a basketball business. they eventually got bought by adidas.

what it means long-term, we don't know. and if they sweep the cavs he becomes a popular player, doesn't mean under armour is going to take off. scarlet: is there any other corporate logos we should be aware of? >> you see the standard players will be there. under armour and nike are the most compelling. under armour versus nike on the basketball court tonight. thank you so much, gentlemen. tamara's jobs numbers could help paint a clearer picture of just when the federal reserve may begin raising interest rates. ♪

in san: it is noon francisco. >> this is the bloomberg market

day. discuss a market take on this latest greek move. deferschristine lagarde interest rates until the first half of 2016. the ball is in janet yellen's court. >> and why this campaign will be different from rick perry's last one. scarlet: good afternoon, everyone. i am scarlet fu here with alix steel. good friday eve, everybody. we are looking at a pretty steep selloff across the board, but off the lows of the session. 50-day around that moving average, which a lot of traders --