p.m. in new york, 1:00 a.m. in hong kong. mark: the greek prime minister is calling on all parties to decide on a debt deal. drops along with wages. we will look at what it means for the economy and a potential fade rate hike. mark: he will tell you why corporate giants are becoming the biggest buyers of corporate bonds. amty: good afternoon, i betty liu. mark: and i am mark crumpton. let's begin with a look at the markets. investors reacting to the may job to report which shows payrolls rising by 280,000 workers. traders anticipating whether the fed will raise interest rates later this year and whether

greece and its creditors can reach a deal on debt repayments. the s&p 500 is down fractionally at 2095. the dow jones industrial dropping 28 points. the nasdaq is in the green today, although just barely, at 5063. afterrices the climbing the release of the jobs report. gold trading at 1106 to seven dollars an ounce. opec agreed to meet its target. .83ex crude is trading at 57 a barrel. betty: the bond market reacted swiftly to the jobs data. you just heard the new york fed president will dudley said the same thing which will likely raise rates this year. you can see yields jumping. also, the dollar at a 13 year

high. also on the back of that jobs report and the belief that we will see rates rise despite what the imf has said. mark: the new york fed president says central bankers are still likely to raise interest rates. here is the quote from a speech in minneapolis. i would expect in the absence of offering -- ud has a permanent phot on the marketing committee. the fed meets again on june 17 and june 18. betty: this came in the wake of a jobs report not seen since the holiday season. payrolls jumped in a may by the

most in five months. employers added 280,000 jobs. economists surveyed by bloomberg. companies are more optimistic at the economy after the first quarter slump. month fors the best wage growth that we have seen since august the 2013. we still have a lot of work to do on real wage growth but this is promising. betty: the jobless rate inched up at 1/10 of a percentage point. the greek prime minister called on international creditors to withdraw their unrealistic land to provide the nation more money, he addressed lawmakers, said a deal closer than ever but that the country does not want to give in to what he calls blackmail. last night come he told the leaders of germany and france had greece could not trade more austerity for bailout funds. greece. today's scheduled payment to the is toll stop the new plan bundle a number of the upcoming payments and come up with the

money at the end of the month. no country has done that to the imf in three decades. that is look at your top stories. mark: coming up in the next half-hour, opec ministers meeting in vienna agreed to keep their daily crew production -- crude production at 30 million barrels. betty: we will tell you about the challenges facing the world against retailer. adds the u.s. economy 280,000 jobs, wages increased to 43% compared to a year ago. betty: look out, pimco. corporate giants of from apple to oracle to pfizer have become some of the biggest buyers of asporate debt, snapping up much as half of the bonds issues. mark: this has some issues with asset managers, using corporate

bonds is their favorite way to boost returns. your story points out that no industry has announced the piles of cash than tech. how much are we talking about and how intense has this made the competition for bond allocations? reporter: we are talking about half $1 trillion. it has impacted competition because they are coming in and anchoring deals. million atying $200 a clip of a billion dollars issued. they have got a lot of powder in the market. betty: lisa, why are they doing this? lisa: they have a lot of cash, what else are they going to buy with it? are they using their overseas money to buy into this? lisa: yes. there was a report out today from bank of america that shows in europe, nonfinancial companies are building cash at the fastest pace in the post

crisis era. , whatis this glut of cash are you going to put it into? mark: is this a threat to pimco? pimco is coming in and buying what they want. it is a bigger threat to the smaller fund managers missing out. they are coming in and arm muscling out pimco a little bit. some of the treasuries saying they do have to take this anymore because they can say, hey, we have got other alternatives. betty: is this distorting the markets at all or are they replacing other players? it is business as usual? lisa: they are setting $40 billion worth of bonds. they're going out and they are buying corporate bonds of other companies that are little bit higher. it feels a little weird.

you have to think if you are borrowing at 1% and you are investing at 2%, at what point does this become an issue? ofkind of feels like some the vehicles that we saw in days of your. is it an issue for the overall bond market? lisa: at some point, they cannot find anything to invest in other than a bonds are not yielding very much of their competitors and their peers. what does that say about the economy and what happens when interest rates to rise and maybe they do find other invest in its. it raises another level of question. as -- as if it needs more volatility. someave the details where of these banks selling these bonds, they are heading over to what, reno? mark: talk about gambling.

apple and oracle have their cash units based in reno. betty: why are they based in re know? nabila: it is about taxes. it is the casinos, of course. betty: that is our new home. thank you so much. cash, "it is johnny shot a man in reno just to watch him die." opec makes the decision to keep its targets unchanged. betty: what that will mean for the markets, coming up next. ♪

♪ back to theme bloomberg market day, i am betty liu here with mark crumpton. there is a takeover in the drug distribution industry. car kill health has agreed to buy harvard drugs from port square partners. harvard distributes generics and over-the-counter drugs. it will give cardinal special packages that providers want. experimentaly an drug lowers bad cholesterol more than older drugs. officials are questioned whether to approve it or wait for additional results. this is the first in a new class

of cholesterol drugs to come before the -- monster is recalling nearly 540,000 cars and truck's in the u.s. and canada. the automaker says they need to fix air bags that can explode with too much force. the models included the 2003-2008 mazda six, the 2006- 2007, maas to speed six. to cut agreed to recall 33.8 million of those devices. that is a look at your top stories at this hour. go straight to matt miller with a look at the markets. matt: take a look at the markets. not of lot of movement as the indexes are concerned.

we have seen no change in the dow and the s&p 500. although the dow is headed down for the week and it will be the third weekly loss and that will be the longest losing streak since march. you do see fiat chrysler here behind me. there is little bit of news. the company will not be able to do it's completed spin off of ferrari until at least october 2. that is because regulatory rules , since they completed their merger, they had to wait one year before this spinoff ferrari. that could be a disappointment to some shareholders. a lot of people may be got into the stock because they only wanted to get shares of ferrari and it's spinoff. it was originally planned to happened by september. if it happens late, that could concern people. take a look at oil, a little bit of down pressure. actually, the whole week was down for oil.

that is the first time we have seen a losing week for oil and 12 weeks. it is falling a little bit but not too much and that is giving traders hope that his resistance hit a floor. opec said they would have a 30 million barrel tax on the oil that they produce. they did not raise that. it made investors happy. take a look at the refiners because they have been a highlight of today's trade. you can see energy, financials gaining, you see refiners all doing better than the rest of the energy to, except for the drillers. you so much. as matt mentioned, opec will remain its crude production target, leaving the market oversupplied. the sector --

the secretary-general says lower oil prices are the new norm. >> now the cycle is down, you have to live with it. we have to get our country to the new reality. mark: he said the new reality is coming. x: do what you want. they noted $30 million is a guide's, not a quota. that further implicates that you can produce what you want. you have the oil minister for saudi arabia saying that oil production is a sovereign right. they are not going down without a fight. to make more money because sanctions have been crippling their economy. iraq productions have been crippled by this civil war.

they will want to pump as they want. who are they going to cut, saudi arabia? daddy: are we going to see this rebound that we have experienced in the last quarter kind of come down again? x: i thought we were going into the 30's and that didn't happen, that is why i am not a traitor. we would see lower prices over time. part of what we have seen is that asian demand has come off a little bit. has been a huge demand driver particularly for countries like iran, iraq, saudi arabia. buying it for their strategic reserves, not necessarily for end-user demand. barclays said that if they hold output at 31 million barrels a day, then the market will be oversupplied by 1.3 million barrels a day. mark: you talk about fundamentals, what is the strong

dollar doing to these fundamentals? is it turning it on its head? deutsche bank said one of the main drivers of oil prices will be the dollar. we have seen the fed five first from other central banks. that was the action we saw today. the initial response went up and then it went back down and you can attribute part of that to the stronger dollar on the jobs number. for many be pivotable across the board. betty: alix steel on the oil market. much more head. a big change at walmart. mark: they are naming the grandson in law of sam walton as the new chairman. market day continues after the short break. ♪

back to theome bloomberg market day. i am mark crumpton along with my collie, betty liu. eddie: -- a big announcement in

arkansas. penner has been named the chairman. greg: because of our family's commitments combined with strong director voices, we have a great balance. this is so important right now the terminus change that all of retail is going through. mark: olivia sterns joins us from fayetteville, arkansas. we understand that doug mcmillan got off the stage. what did he have to say? olivia: i would like to point out that he got off the stage and then rod stewart got on the stage. walmart knows how to throw a shareholders meeting. my big tech away was that he wasn't so much focused on his competitors. we talk a lot about why is walmart losing market share to the dollar stores, how will they compete with amazon.

doug mcmillan feels the biggest obstacle is internal. >> we are threatened much more by the things that we control than those outside of our influence. our real villains are bureaucracy, complacency, the lack of speed, and a lack of passion. olivia: he has a ready made some announcements in the last couple of months to try to address those issues. to get theying proper store managers back into the region. there also investing more broadly. they are raising wages, they are improving training, and they are making it nicer in stores. they are trying to improve what is happening. think, walmartts does have the macro tailwinds behind them. they have got to fix what is going on inside. they have to fix what is

going on inside. they made this announcement about greg penner. tell us more about greg penner. : he is 45 years old, he is a walton family insider. he has been on the board since 2008. he will bring with him a lot of tech experience. venture capital firm out in silicon valley. that is one of the things that walmart highlighted in his background. key growthng to be a area for walmart. there are a few reasons why people are really excited about the potential opportunity for walmart. perhaps most of all because they have 4500 stores across the country. if they can figure out how to leverage those into distribution centers for the online operation, they could really give amazon a run for their money.

sterns on us from fayetteville, arkansas. college commencement season is wrapping up. this year's speakers included journalists, filmmakers, and of course plenty of actors and politicians. here is a look at some of their wit and wisdom's. >> congratulations. >> congratulations. >> to the class. >> to the class. >> of 2015. >> 2015. ♪ >> good morning, graduates. >> it is on indescribable privilege to share the stay with you. >> you made it. >> you look good. >> and you [bleep] >> this is a dark chasm of yawning uncertainty. >> there is an incredible amount of pressure on all of you to succeed.

>> it will be like the hunger games at there for you guys. >> there may be days when you will say to yourself, i cannot. you can, you can even. >> if you have amazing dreams, amazing things will happen. >> you are reaching for your destiny. >> as for the mess we have made, you can change it. >> we broke it, you have to fix it. >> if i could give any advice, it would be -- >> make it into you make it. >> people climbing that ladder of success. >> do not make jack esses of your selves. >> remember what f scott fitzgerald said. >> drink responsibly. >> listen to jazz. >> veered to the left. make your parents proud and figure out how to end global warming. >> break a leg. >> may you ride internal, shiny,

and chrome. eternal, shiny, adnd chrome. mark: now you have years of student debt. betty: i think the left shark has the best chance of a career. you just started your weekend. coming up, we will take a look at the may employment report. we will sit for the numbers and see what it means. bloomberg market day continues in just a moment.

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mark: welcome back to the "bloomberg market day." i am mark crumpton.

into 5.9 earthquake hits killed into climbers and injured 11 others in malaysia. when hundred 30 people are stranded on southeast asia's highest peak. -- 130 people are stranded on southeast asia's highest peak. chinese boat has been turned right side up. 14 survivors include three people who found air pockets in the overturned boat. officials are blaming the accident on bad weather, but it placed the surviving captain and first engineer under police custody. one of saddam hussein's most well-known aids is dead. theas known as the face of hussein regime. he died in a rocky version of the age of 79 years old. he was a close advisor to saddam. insurrendered to u.s. troops

2003, shortly after the fall of baghdad. about 15 feet deep opened up on a street in denver, swallowing a police cruiser. the sergeant inside managed to crawl out. authorities are surveying the damage from tornadoes that swept through northern colorado overnight. those of the top stories at this hour. as we mentioned, the labor department report on jobs and wages for the month of may far outstripped expectations. the u.s. economy added 280,000 new jobs across many industries, especially automakers, retailers, and in local governments. workers are making more money for a change. wages rose 2.3%, compared to a year ago. a pace we only reach twice as the financial crisis. what makes a business confident enough not just a higher, but also pay more? joining the is the cofounder of a dinner delivery app that

raised more than 20 million -- $100 million in venture capital. me is lindsay. let me start with you. the jobs report today, it was better than people expected, that's the good news. this?r any bad linings in lindsay: it certainly be expectation. themarket has lowered expectation for labor gains from 300,000 down to 200,000. the market was elated with this number. when we look at the underlying fundamentals, on a three-month average, it leaves little change. it may be a step in the right direction from the more pronounced weakness was on march. it's really hard to apply to report that gives us slightly back to where we were just six months prior. we spoke to an economist

to says this only reinforces the view that the economy is a lot healthier than the gdp data implies. has the economy regains momentum? lindsey i think it's regaining momentum from the extremely guess we saw the first quarter. it supports the assessment that we are making further improvement in the labor market. we have quite a ways to go. on average 200 to 250,000 just to cover demographic change. looking at the three-month average, this is hardly a robust labor market. mark: you are actively hiring right now. is that because you are confident in this economy or your business model? guest: absolutely. it will have to eat, multiple times a day. this probably less of a discretionary income than other excesses would be.

you have to help people eat well even when they don't have time to cook. we are beating -- bringing the food to people, with the next ordinary team in every market. for us, that's a business that people really desire and need and have a strong demand for. demand, notng that as much impacted by the environment. mark: the united states is producing far fewer startups in past decades. why do you suppose that is, and what needs to be done to turn that around? tri: i'm fortunate to live in the silicon valley, and for me, it's a warped view because i see company starting up left and right. it's hard to explain that. i don't pay attention as much about why it's different in one market versus another. the businesses are growing, the economy is looking

great from my perspective. the business is doing well, we are just keeping up. mark: how is the climate for startups? lindsey: we are seeing a multiyear low for business development. in part it's why we've seen such a lackluster hiring pace. modest.sitive, but very you talk about five years into the recovery. we've seen this on the business investment side. awashsses despite being in cash are hesitant to invest in equipment, structures, or full-time new employees. an increase ine average hourly wages, but the pay is still barely rising above the rate of inflation. is that was keeping this economy from taking off? lindsey: it was a welcomed increase. we are still talking about an average base of right around 2%, which we have been out since the end of the great recession. so gnosis datable upward momentum in the pipeline as of now.

as far as long-term growth in the economy, what is keeping us down -- we need to see that outsized growth in business development. without business development, we don't see further hiring or income growth, and consumers are kept on the sidelines. delivery pay your people very well, i think it's about $22 an hour. why is that important? make it ant to amazing experience for our customers. industry the on-demand that actually hires are delivery team is employees, not contractors. they get w-2s. we pay them well because we want to make sure we met them carefully, we train them well. they are the face of the company. everything also about the company, people access the app and see the menu, place an order all through mobile apps weather desktop or some than like that. even when they call us, just a phone call. the humanry person is interaction. we want to make sure that the amazing experience.

they get to know you very well, they know exactly what you like. you want the delivery in the back, or once this doorbell not pressed. if you have a child or a dog at home or something like that. for us, is absolutely important to make sure these are some of the very best people we have. we have to pay them well. we give them a fair wage. they get to do a great job. mark: you started your company in 2010, and have said that the did not the economy factor into your decision. why not? all about the service we are offering. we launched in new york and a layer couple months ago, it's been growing 45% week over week. is to the point where we are just barely keeping up. if we go any faster, the wheels are going to come off in the car so to speak. we want to make sure we get great tea makers -- team and members. christinemark:

lagarde said the fed should hold off on raising rates until 2016. today, the new york fed president said the fed is likely to raise rates this year. was that a shot across the bow? lindsey: we maintained our forecast for 2016 for some time. fed officials have been overly optimistic in expressing the timeline. we have been on hold out for five years. fed numbers keep telling the market will be soon, it will be soon. it takes more than the fed's optimism to move rates. it takes the underlying strength in the economy. right now, with household spending declining, nonexistent inflation, and modest employment gains, that does not sell a recipe. lindsay joining the in studio, and from san francisco, tri tran. his app has raised over $120 million in venture capital. thank you. coming up in the next half hour

of the "bloomberg market day," the great premise or delays in payment to the international monetary fund. he said the proposals creditors is not realistic and he is calling on all parties to decide on the debt field. the latest on the hackers who stole data on u.s. government employees. and ahead of the warped tour music festival tells us what it will take to win in the music streaming wars as apple prepares to take on companies like spotify. "bloomberg market day," continues in just a moment. ♪

mark: looking back to the "bloomberg market day," i am margaret in. mark crumpton.--

julie hyman is standing by. seen stocks under pressure, i want to look at the other assets and how that is seating through the stocks. if you take a look at the u.s. dollar, we are strength after the daughter -- the jobs report. upve seen gains moderate, .9%. we've seen the dollar gaining the most since november of 2011. if you go back over to the stock market, the effect that is having seems to be putting on some pressure on companies to get a lot of the revenue from abroad. apple is down .5%. they get 40% of their sales from the u.s., but nonetheless, the rest of it from abroad. , big international company, are being affected by that. i wanted to look at what we're seeing in raise today. i want to take you into my bloomberg terminal. you are looking at the year-to-date chart of the 10 year, is about 2.39%.

as you can see, it's the highest we've seen all year long. i wanted to go back to the one-year chart as well. we are seeing it at the highest it's been since november or so. a significant move up in rates today on the back of that jobs report. how is that seating through the stocks? we've seen this happening with a high-yielding stocks tend to be hit when rates go higher. we are talking utilities and telecom stocks that are down the most, providing the biggest weight in the biggest drag on the s&p 500. utilities and telecoms both down more than 1%. that's because the stocks that have high dividend yields tend to perform, or the perception is that they perform not as well as rates go higher. but there also stocks for the rates appear to be benefiting, if you have a widening yields curve, that would be good for the net interest income of the banks.

bank of america trading at a six-month high. that's the sort of push and pull we are seeing in the markets. stocks don't appear to be in the driver seat today. they are reacting to what we are seeing in the rates market and in the dollar. mark: julie hyman, thank you. now a look at the biggest stories from asia. here is elliott gotkine's and what is next for the greek debt drama. elliott: time is running out for everyone, not just the greeks. the premise are addressed lawmakers in parliament early on a friday evening. he began his comments to lawmakers 45 minutes late, striking a consolatory tone, talking about the need for a mutually beneficial solution to the debt problems. he went on to criticize greece's creditors, talking about the proposals on the table being an unpleasant surprise, saying they were unrealistic in the grease wouldn't give in to blackmail. he says greece is closer than

ever to finding a solution. the current bailout deal ends at the end of this month. if they don't strike a deal before then, is expected to run out of money. huge ipo may be coming to the market. legend holdings, not a household name, but a company that holds about one third of the world's largest pc maker lenovo, then its high-profile. it got approval for a listing of hong kong. that's been raised through ipos here in hong kong, not including secondary cache listings. traffic has been very busy because the markets have done well. mark: let's take a look at the top stories crossing the bloomberg terminal. it's almost a complete victory for barclays in a battle going back to the start of the financial crisis. barclays has reached a settlement over the acquisition of lehman's assets in 2008.

the bank will receive all but $80 million of the 1.1 billion dollars in assets which were in dispute. will boost first-half pretax profits by $750 million. connecting anis internal investigation into possible money-laundering from russian clients. the probe may involve $6 billion in transactions over more than four years. the german lender is analyzing data from 2011 through 2015. this follows a request from the bank of russia for deutsche bank to examine the stock trading activities of some clients in the country. two of europe's biggest wireless and cable providers are in talks to swap assets. vodafone confirms it's in the originally -- early stages of company --s with a liberty. in horse racing, american pharaoh goes for the triple crown in saturday's belmont stakes.

advertisers may be the real winners. of its horset 90% racing adds long before casual sports fans had heard of the horse. now sponsors like long jeans and ram trucks are poised to benefit from that bump. at the price of a private lunch with warren buffett is nearly $1.6 million, and the price is likely to grow before the auction wraps up tonight. the bid remains well below the 2000 12 winning bid, more than $3.5 million. it remains the most expensive charity item ever sold on ebay. that's a look at the top stories we are following at this hour. u.s. officials say chinese hackers are responsible for stealing records of as many as nearly 4 million u.s. government workers. they were assigned to the same signs thathere are this is from the same people behind other recent hacks. he says everyone has to be

concerned about cyber security. >> i'm sad to say that no one has that good at it. obviously, there are some sectors of the u.s. economy that have been better than others and are more sophisticated than others. and within the government, the military and intelligence networks tend to be better shape than some of the civilian agencies. as we saw with the snowden incident, even very sophisticated intelligence entities can be penetrated from inside the organization if nothing else. mark: scarlet fu is coming up in the next half hour of the "bloomberg market day," and she joins me a studio. this is a huge story with a lot of evil. u.s. officials believe chinese hackers, perhaps with the implicit support of the chinese government are behind all of this, which would make for an awkward state visit by china's premier in september. that would certainly be an interesting point of discussion that both sides will look to

avoid, even as they try to talk through all the trade issues as well. mark: we have been through this before, the u.s. government saying chinese hackers, russian hackers -- at some point, the discussion on capitol hill as the administration is trying to fast forward -- at what point do ,ou compel industries governments, state governments here in the united states to improve themselves or prevent cyber security -- scarlet: who is the onus on? mark: should be voluntary or mandatory? the government needs to be the liaison, forthcoming with when there are hack attacks. companies want to start taking matters into their own hands in turn move beefing up their own internal things. mark: they don't want the government involved in this. werlet: in the next hour, have the president and ceo of the silicon valley leadership group, a trade association that represents almost 400 a silicon

valley's biggest companies. what's interesting is their study on the silicon valley hiring boom. companies are planning a hiring spree, 64% of ceos say they are planning to do just that. if an improvement from 59% last year. mark: that is a vote of a common -- confidence for the u.s. economy. scarlet fu coming up. apple is set to unveil a music streaming service next week. what will it take to win over ear?illennial year -- ♪

mark: welcome back to the "bloomberg market day," i am mark crumpton. unveil aexpected to streaming music service next week and its worldwide developer conference in san francisco. they are still negotiating with

record labels over some of the terms. but with from edible competition from spotify and pandora, is it too little too late? matt miller sat down with kevin weiler, ceo the warped tour. matt: all of the technology came out of apple, and they went back to the music platform. i think the winner is going to be -- everyone is on their mobile devices. if they can optimize it to mobile, they will win. matt: does it make sense that they bought beets? kevin: the original platform was not that good. matt: they paid $3 billion for it. what do you think about the sustainability of spotify ? everyone uses that. it's kind of the king of the hill.

do they hold onto that? kevin: i go back to mobilization. 60% of everything is coming off mobile devices. this new generation of the adapters, the 13-year-olds to 19-year-old's that are going to sustain a company over time, you have to get to them. no one's platform is really tackle that. whoever wins, i think is going to win. matt: the warped tour is very attractive to millenial's. what about your artists. the most part, they are millennial's. are they going to sign up on any service, do they go exclusive with something like tidal? kevin: they want exclusive content right now. -- therehink a service is just wants to make money. they have the huge roll out with the stars were making a lot of money. of river start making money, there are 99 people that are just try to keep her roof over their head.

i don't see those artists being exclusive to anyone. miller joins the outset. matt: the world to her has been around for a long time. the kids that are going to an hour so young, 14 years old, 15 years old now. , andarents get in for free he builds an entire separate tent or area for the parents to hang around in, called the reversed daycare. the parents can kind of chill and listen to normal music and watch tv or go on their iphones. the kids are listening to punk rock out on the to her. geezer central. with playing at warped tour -- who is playing at warped tour? punk it's basically a pop, to her. a band called h2o, a and i grew up with 25 years ago was going to play there. youe are some bigger bands,

will occasionally get like that religion playing. but not usually that big. mark: what about the apple connection? matt: these are the bands the kids want to download or listen to on a streaming service. they can get it from spotify if a band hasn't signed yet for a label. the bands want more money than they get from spotify. you see that in situations like jay-z's tidal. hopefully everyone can get paid better with apple then through spotify. mark: matt miller, i guess i'm going to the old folks tent. coming up in the "bloomberg market day," the greek debt crisis. the prime minister addresses parliament after delaying a payment. ♪

mark: is 11:00 a.m. in san francisco. this is the "bloomberg market day."

mark: the strongest jobs report of the year. what it means for silicon valley. american crown heads for the triple crown. goy: 1 -- mark: once you business class, you can go black -- you can't go back. freudian slip. [laughter] mark: ok. it's friday. good afternoon. i'm mark crumpton. that was thelet: best line. let's take a look at equities right now. not much in the way of direction. punch. 500 basically the dow industrial losing 45 points, the nasdaq moving higher. the jobs report came in much be