the case for the federal reserve to raise interest rates this year. telling lawmakers in athens the latest creditor proposal is a bad negotiating trick. we discuss more. theirec maintaining production levels. we examine the global ripple effects. good afternoon. i am scarlet fu along here with alix steel. happening.ng is at least inequities. pretty much relatively flat. that&p is fluctuating with 100 day moving average, below its 50 day moving average.

that is touching on that average. scarlet: if you look at what it is doing now it is pretty consistent with performance for the week. the nasdaq just turned positive for the week up high -- by 0.1%. [applause] part of that story is playing out in oil markets. part of that had to do with the count number and you look at bread which is moving higher. you did not have opec raise its production target.

that was through the whispered conversation. the market interpreting that in a bullish way. oversupply is the same when it comes to oil. let's get treasuries. you may have not gotten a month -- much of a reaction. yesterday's gain was short-lived. the 10 year yield at 2.4%. the highest so far this year. atx: last friday we were 2.12%. an analyst thinks there is more volatility. scarlet: the yield curve is flattening with the five year yield moving faster than the 30 year yield which is a reversing -- which is reversing a trend. the meantime let's get a look at the headlines.

thisng interest-rate at hour. central bankers are still likely to start raising interest rates this year if the labor market improves even further. labor market continues to improve and inflation expectations remain well anchored, then i would expect in the absence of some dark clouds gathering over the growth outlook to support a decision to begin normalizing monetary policy later this year." dudley has a vote on the policy-setting open market committee. the fed meets on june 17 and 18. scarlet: coming in the aftermath of a job or -- jobs report not seen since the holiday season. employers added 280,000 jobs. well above the forecast of people surveyed by bloomberg. month for the best

wage growth we have seen since august 2013. we still have a lot of work to do on real wage group -- growth but this is promising. scarlet: the. -- jobless rate inched up to 5.1%. twice five minutes ago, -- 25 minutes ago, saying a deal is his countryever but does not want to give in to blackmail. have greece pushing off today's scheduled payments to the imf and the plan is to bundle a number of upcoming payments and come up with the money at the end of the month. no country has done that in three decades. the last one was zambia. and the oil cartel decided not to change its output ceiling.

sending the price of crude oil higher. 30c has kept the ceiling at million barrels a day but other nations have been pumping a million barrels etc. -- extra. a new era for walmart. the board has elected gregg penner as the next chairman. grandson of sam walton. he is taking on a new role after joining the board of the world's largest retailer in 2008. penner: we have a great balance. this is so important right now with the tremendous change that all of retail is going through. scarlet: walmart sets the state a year ago when they need him to the newly created position of vice chairman. that is a look at the top stories.

generator --a lawsuit, deciding not to appeal. look at the tough odds. strain of banana killing fungus threatens to wipe out the crop. much more coming up on the "bloomberg market day." added 250,000my jobs. mohamed el-erian spoke with betty liu about his reaction to the unexpectedly strong jobs report. mohammed al arian: this is a good report and lots to like about it. -- netver reviews and revisions and wage growth, 2.3%,

the best monthly gain in two years. people are coming back into the labor market. all of this points to a healing labor market. the market reaction with textbook in terms of yields higher, the dollar stronger. the equity market is torn. it is torn between saying good news on the fundamentals and worrying that this may make the fed hike earlier than they would like. is -- the bond markets moved in reaction to this. much earlier and much more visit -- visibly than the equity markets. why is that? : what isl-erian happening on the economy and central banks -- this report said the economy is strengthening. we are bouncing back, and the fed is likely to hike this year.

there was a clear message, higher yields. the equity market is torn because people realized central banks have been the market's best friend, and they would like so fed to remain ultra-loose the worry about the hiking message in today's number. at the same time, they look and say we like the fact that fundamentals getting better. the equity market is in this tug-of-war where if the bond market sees clearly that the two things are aligned. betty: could there also be some pessimism? we had a editorial out that said this is great, we have seen solid jobs growth but if you add in part-time workers and we have havert here of what we crashed here, if you add in part-time, people who are working part-time who are necessarily do not want to be .orking part-time jobs the jobless rate is much higher than the 5%, closer to 7%.

the jobless rate. given that scenario, we are still way off than where we were that ishe recession and a reason why we should hold off on hiking rates. mohamed el-erian: unambiguously, we are not back to where we need to do in terms of economic robustness, growth, prosperity. we still have a long way to go. the labor market can improve further and in particular, part-time to full-time, increase participation rate and get wages to be more dynamic. the editorial is right in terms of absolute. we're not there yet we're getting closer. remember that we also start from a situation on the policy rates at add -- abnormally low rates, suppressed interest rates. you have to counter with this. i think net net within the fomc

this will be seen as conducive to them hiking this year and not waiting until next year as the imf has suggested. he also responded to the statements. bankers are still likely to raise interest rates if the labor market improves further. el-erian: --mohamed el-erian: this was explicit -- one of the conspiracy theories was maybe the imf was message on a behalf of the fed. i think the imf has different reasons to do it. it is notable that dudley comes of the next day and says the hikes are likely to be this year and that is what i think you have heard me say over and over again that the most likely

outcome will be a september hike. el-erianthat was vomit -- mohamed el-erian. -- more on the discrimination case.

scarlet: welcome back.

we're seeing lower. want to look at the interplay. take a look at oil. we had a big opec meeting. opec not making any decision or making a decision to not make a decision and change production quotas and it has been a wild ride for oil. %. is at 1.74 --went lower as we can need continued to see strengthen the dollar. a curious day. that does not save us the losses for the week for oil. oil snapping his 11 week winning streak this week. still down 2.1% despite today's gains. i wanted to talk about what is going on with the emergence between oil and oil stocks. even when oil prices were lower, oil stocks were higher which is an interesting phenomenon. that is continuing even as oil

prices move higher. energy stocks are among the best performers in the s&p 500 so they have been helping to support any gains we have seen. i want to look at the year to date chart of oil prices versus oil stocks. oil prices are in green. oil stocks are in pain. what you have seen is an oil has rebounded by 10%, oil stocks have not followed suit area they have fallen by about 3.2%. we have seen do virgins in the past month or so as oil prices have moved sideways. oil stocks have continued to move down. we have had this rebound today and over the past couple days. over the longer term, there has been this do virgins and i wanted to talk about that. i note that this is something that you have been watching pretty closely. saudis had opec and the trying to put pressure on shell producers.

big oilen it comes to and shale producers, they are still pricing in higher oil prices. it was interesting that transocean was up but they are getting less money for the services they provide. 20% and 30%.een we were going to see some m&a. dislocation -- the oil companies were pricing in too high of a oil price. as save they are seen companies. they are not going to get broken by oil prices tumbling the way the smaller companies are. thanks.

taking a look at the top stories. david rainey has been found not guilty of making false statements in an oil spill probe. defense attorneys said he did the best he could with too little information it had no reason to live. a takeover today in the drug distribution industry. the price about $1.1 billion. generic andributes over-the-counter drugs. the deal will give cardinal specialized packaging options that hospitals want. scarlet: regulators said that an -- anmental drugs experimental drug lowers cholesterol better. of drugs.new class

--y are considered the most tht since the statins of 1980's. pao said she will not appeal the decision if kleiner peyser and drops -- pays her. from san francisco, emily chang. what are the chances that kleiner perkins says this sounds great? emily; we found that ellen pao is asking kleiner perkins to be her $2.7 million for ship -- a suit that she lost area kleiner perkins won this sexual dissemination lawsuit.

valleyf women in silicon have said they saw themselves in ellen pao. pay $2.7ing liner to million on top of asking kleiner to drop the $1 million they say she should pay them for court costs. she is asking them to pay her $3.7 million if you look at how it adds up. she did file for an appeal if you'd days ago. -- if you days ago. she has 40 days to file the brief. a judge will not look at the appeal and to potentially next year and if it is granted it could go on for years. it has been going on for three years. kleiner perkins did try to settle. she does not want to settle and now we know there is a number on it in terms of how much money she is asking for from kleiner perkins. thinking, does she think she has a chance of

winning an appeal if she is putting a price tag on it? sayy: there are people who she truly believes she was discriminated against and she wants to make a point. we do not know what her true have somes are but we numbers to back things up. scarlet: still ahead, setting win the triple crown. no one has done it since 1978. we will break out his chances. are you watching? alix: i have to. ♪

scarlet: how is the belmont

stakes, the third and final event in the triple crown event. american pharaoh has a shot at winning the triple crown. the odds are pretty long. david: belmont park on long island. 110 years old, the home of the belmont stakes, known as the test of the champions. the last triple crown champion in a horse called affirmed 1978. there were 10 others before him including secretariat, gallant fox, and seattle slew. we turned tohy, the in-house expert. editor andanaging horseracing expert. he has been following

horseracing since 1990. reason is what he calls the pack. 1978, affirmed raced against other horses. american pharaoh is of against seven. the field is pretty small. it is common to have a field of 11, 12. the second reason, the ambush. if a horse loses the kentucky derby, his owner may decide not to run in the preakness. resting up until belmont. the first 120 five years until 2000 of the running of the races, that had never happened derbya horse ran in the and skipped the preakness and when the belmont stakes. since then it has happened seven times. david: five competitors ran the derby but skipped the preakness.

number three, the distance. race track in north america. they will do one big lap. a mile and a half around. these horses have never raced the distance in the life -- their life and they never will. d: the last reason there has been such a drought, the calendar. horses used to run all the time on two or three weeks rest area that pace only happens during triple crown season. >> a lot of times he will just not fire his a-race, given those circumstances. david: how does american pharaoh look? >> he is a standout in this race. with atry to beat him

horse named materiality. scarlet: i was speaking with two professional handicappers and they said when you're looking at the horses in a race like this, ands 90% about the horse 10% about the jockey. i thought it was all about the jockey. alix: i was reading here that american pharaoh was almost repossessed area and a collateral for a loan. it would have been a different story. fascinating how that worked out. andlet: the history genealogy is always great stuff. sorry to see you go. have a good weekend. coming up, much more for you. stay with us. ♪

alix: welcome back to bloomberg

markets they. fayetteville,in arkansas joins us over the phone. away?s the biggest take thata: the biggest news is he still has it. and the grand chairman of walmart will step down. thathe is a walton family insir with a lot of institutional shareholders calling for unmold -- an independent chairman. a lot of people are excited about what kind of technology expertise he might be able to bring. he spent the last 10 years or so in silicon valley. you recently spoke with

the ceo, what did he say? olivia: what i really wanted to know about was gas prices. low andgas prices so what he said was yes, he is seeing walmart customer spending some of their money at the pump. areaid people underestimating that there is not a lot of inflation. we know that these prices have inflation hasfood been eating up some of the spending. i tried ask what is a 50% move at the pop do for your bottom line and he said if there is one thing you can have for your crystal ball it would be forecast for gas rates. alix: we have some breaking news

and we go right to julie hyman. ofie: where watching shares diageo spike. thatumnist saying resilient executives behind 3g capital to with warren buffett and that they are potentially interested and are in the early stages of a purchase of diageo. digital version of this newspaper this report and we are seeing those diageo shares spiking behind me. the shares are now up by 6.6%. we are seeing some similar beverage companies on the move. we're seeing others spike downward at the same time we saw diageo shares spiked upward.

we also watching shares of bud on the move. keep monitoring this and see if we can get anymore details it i did when to your attention. alix: coming up, competition heats up. opec is not backing down. they continue to pump oil. will it be enough to stave off its rivals? says that there time has come to introduce a dividend. americans are getting ready to work this summer. they added 280,000 jobs in may. greek prime minister alexis tsipras addressed the nation

today. he said our proposals would be devastating. where are the bailout negotiations going from here? nick burns is a former u.s. ambassador to greece and is a professor of diplomacy at the harvard school of government and he joins us now from cambridge, massachusetts. thank you for joining us. what is the political will of line ofo abandon this reform and get a deal done? guest: i think we are seeing a very hesitant and divided greek government. the fact that chancellor merkel lagarde. together to offer -- got together to offer a united front is a good sign. but lagarde. the prime ministerg

difficulty keeping his own coalition together. significant opposition to accepting a deal and with the appeal to the greek people he seems to be setting himself up for disappointment. the only way out is to accept these terms and to move forward with very difficult internal reform decisions. if he does that he risks division in his own party and great public dissatisfaction. he said he might have to put such a deal to referendum with the greek people. speech as a today's way of setting up the great people for a bigger decision at the end of this month. they've now postponed payments until the end of june. alix: grilling the creditors in greece are haggling over 7.2 billion euros. it is a drop in the bucket.

why not just pay it? how much money is that really when they go so much more -- owe so much more? guest: a lot of this is about politics and keeping his coalition together. a lot of it has been brought about by the inexperience of this greek government. he came into office several months ago they immediately took on the german government by asking for war reparations. it took on the u.s. and the russian leadership. they have made a lot of mistakes and find themselves without any country supporting them. there is unanimity on the european side. go but toowhere to accept this deal and to move ahead with these reforms. that would be very unpopular,

politically risky and could lead to some scenarios. take a page from our bloomberg economist because actually they need a weaker currency. if you take a look at net exports it has continued to rise. greeceis weirdly give and upper hand? guest: i don't think it does. i think the europeans have definitely signaled they would prefer to have greece stay in the eurozone. they don't want to see a grexit or a departure of greece from the eurozone. current greek government to develop a coherent reform program and others in the future

might ask for similar reforms if greece is given a relaxed deal. that is why the european central bank and the imf have insisted on payment terms that are consistent. i think the frustration in europe is a greek government has not given them highly developed and detailed series of commitments. eu would like to postpone and keep greece in not at any cost. it looks like they're prepared if greece fails. at this point what you put on the percentage of a grexit and bankruptcy? guest: the probability of a greek departure is higher now

than it has been at any time since 2010-2011. . don't think it is a certainty he will have to variously -- very seriously consider what the european union has put before them. it could be division in the syriza coalition and it could be more elections in greece. that is far better than all of the risks of leaving the eurozone. alix: wouldn't give me a percentage but it seems like the risk is increasing. now to another topic, if you love bananas, you will hate this story. there is a killer fungus attacking fruit. it appeared in australia, asia and africa. it has not attacked top exporter

ecuador but is enough to scare dumb monti produce -- dlel monte produce. the banana culture makes it serious the disruption because most of the world's cavendish bananas are clones. production did increase in india and china which accounts for 37% of output. we eat a lot of it and is. we eat almost as much as apples and oranges combined. still ahead, opec makes its decision. it is keeping production targets unchanged.

alix: well back. -- welcome back. 15 minutes before the closing bell. the stoxx didn't do much but the dollar saw some action. >> it is really been other assets driving stopped trade today. the dollar rose after we got the stronger than estimated jobs numbers. at the highs the session was up the most since november of 2011. a relatively dramatic move we saw on the dollar today which means that a lot of the exporters were lower today. .o take apple

, procter and gamble as well. all of them being dragged down on the s&p 500. on my bloomberg terminal i have note.t of the 10 year you can see it is the highest we have seen all year. a relatively dramatic move. the note. caveat always is it is low by historical standards. not just the year today but looking at the one year chart it is now the highest since last winter. a notable move at the very least today. as of late we have seen utilities and telecom stocks come under pressure. because they have relatively high dividend yields. the utility and telecoms trading lower today.

on the higher side, the financials. here there are two things that work. number one, if you see that yield curve widening that could be good for the net interest. also if the economy is improving, you have jpmorgan trading at a record today as is wells fargo. goldman sachs trading at its highest since 2007. alix: thank you so much. now to a look at some of the top stories making headlines. that owns giant guinness, johnny walker and kettle one rose almost seven years -- the most in almost seven years. the brazilian billionaire is considering a takeover bid.

google will start to issue monthly reports on its self driving cars. vehicle wass rear-ended yesterday. there have been 13 accidents since the company began. the price is likely to go before the auction wraps up tonight, but the bid remains well below the two dozen 12 winning bid of $3.5 million. it remains the most expensive item ever sold on ebay. crudeaintains its production target. opec says low oil prices are the new reality. >> now the cycle is down and we have to live with it and accommodate ourselves, our people and our country to the new reality.

fairer price is the price we have now. alix: joining me now is the president and founder of drug ereer advisory -- brookeshe advisory and research. -- gianna, thank you for joining us. arabia, look at saudi the goal has been keep pumping and market share, where is saudi arabia in achieving this goal? if you look at their policy, they have held the line. -- the endgame has been that most of the smaller ones have been very effective at achieving their objectives. do you agree?

dan: not quite done yet and a lot keep buying stocks. that is white the saudi's have kept the pedal to the metal. $30 million -- 30 million barrels per day just means as much as they want to produce they will go for. iranians will -- start pumping more should they get a deal. everything looks bad for shale producers. another couple quarters of this will make a big dent. alix: you think we will have a lot of bankruptcies? we have been waiting for the m&a and we have not seen it. dan: that is true. i point to a lot of speculators rotating back into oil securities. everything seems to be overpriced. they rotate in. there has been a lot of

speculation overtime there is a small drop. compared far glutted to the five-year average. all of these things backfire at some point when literally the production becomes too much to bear. we get a double-dip recession in oil prices. alix: gianna, do you agree? -- gianna: i continue to see weakness and i wouldn't see triple digit prices for a long time. as your other guest mentioned, the high levels and production inventories all point to a slow recovery in the crude oil market. alix: does that mean that you expect supply to be the driver of oil? gianna: what we have really seen here is the battle of who is the lowest cost producer. the lowest cost producers are

winning. right now it is opec producers. but we have to be mindful of is that what opec says and what opec does our two different things. historically they have never held to their own self-imposed quotas. it is revenue for their countries. everyone of the smaller countries has incentives to put more barrels on the global market. alix: the saudi arabian oil minister saying that oil production is a sovereign right, your point -- to your point when his shale going to become the new opec? they could affect this really quickly when it comes to production. dan: part of my new book is this changeover of this marginal swing barrel that has been in the hands of opec for as long as we can remember. in the unitedhere

states that shale becomes the swing barrel. for our shale producers it will turn out to be a big advantage. oilhe end, independence and is based upon markets and shale producers are not nearly as flexible as opec nations are with their low cost of marginal production. alix: i am looking very forward to reading your book. good to see you both. much more coming up on bloomberg market day. google shuns cash payouts since going public but one investor says it is time to change. ♪

alix: google has the attention of one investor. charles sizemore calling on google to put their money to work in dividends. he says it's time to grow up, where your big boy pants and start paying a dividend. he doesn't actually own shares. this is like a legit call. how far is google hide the curve in the dividend massive payouts? guest: as far as companies in that size there are about 11 that do not pay dividends. it is a pretty interesting list. --ks are hathaway is another berkshire hathaway is another one it does not pay dividends. -- beg brookshire a shot

rkshire aside, google wants to spend its money on r&d. the driverless cars. google glass. it is interesting because so many are criticizing companies paying too much in dividends and not investing. here is and what example of the other side. you'll hear about it too. does google wind up getting a lot of pressure? it is so stiff in some ways. money and buybacks is a way to woo the money to some side. guest: their stock price has flattened out over the last couple of years. the last time they were at a record was 16 months ago. alix: that is pretty significant. guest: right, but think of google if you go to the ipo in 2004, it was a dutch auction.

google wanted all of wall street to google what a dutch auction was. when they created the new share class, they do things their own way. people can complain all that they want, but these two guys have the voting control. unless they somehow cede control, they can do whatever they want. alix: complain all you want but at the end of the day, tough luck. coming up, we close the week of trading and bring you the u.s. closing bell. ceoill talk jobs with the of --

alix: mere moments away from the closing bell this friday.

you are at stocks falling for a second day. the tao suffering -- dow suffering its third straight weekly loss. typically the safety plays are moving the s&p lower. joining me now is joe weisenthal. what struck me was that crazy move on the 10 year yield. 2.12%.iday we were global bond selloff is

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