europe's largest bank plans to eliminate as many as 25,000 jobs and sell operations in turkey and brazil. we will look at what is behind the action. betty: the private equity firm, cerberus capital is said to be buying homes in the u.s. as it expands its push into the rental business. is -- we will see if he has been able to avoid the gaffe that has plagued other candidates and their overseas trips. betty: good afternoon. mark: thank you for joining us. let's begin with a look at the markets at this moment on tuesday. stocks mostly higher, the market trying to come off a three-day losing streak. due street's slide has been

in large measure to investors pouring over economic data, trying to figure out when the fed will raise interest rates. a check on the board shows the s&p 500 and dow jones industrial average both up about .25%. the nasdaq is falling at this hour fractionally. gold is moving, gold futures are higher, of .25%. up over 3% today. nymex trading at $59.96 a barrel. check on howk treasuries are trading. there has been more bonded volatility in the anticipation of an interest rate hike by the fed. the two year yield -- we were a month ago. 2.2

in the currency markets, the dollar has been quite volatile. it is lower against the yen and a slight -- and slightly stronger against the euro. let's get a look at our top stories this hour. the latest on greece chat -- the germanon greece -- the chancellor and greek prime minister plan to hold talks on the sidelines in brussels on tuesday. that comes after some tough talk on greece. must decide if it wants to carry the difficult load. greece has submitted a new proposal to unlock a lot money. one official said it's just a rehash of older plans. the largest bank in europe will cut house and some jobs, a move aimed at restoring profit. hsbc plans to eliminate as many as 25,000 jobs, about 10% of their workforce.

trying to cut costs by about $5 billion year. they will sell businesses in turkey and brazil and step up investment in asia. deutsche bank says its offices were searched as part of an investigation into security transactions. they say bank employees are not accused of wrongdoing. batteredbank has been by a series of scandals and surging compliance costs. the ceo are -- the ceos are stepping down. general electric is taking another step away from banking. ge will sell the majority of its private equity lending business to the canada pension plan investment board. the price is about $12 billion. it helps buyout firms lineup take over pricing. in april that they

would unload capital assets. airlines are cutting forecasts, american airlines saying benchmark revenue days will below are than expected and revenue from each seat flown will likely fall 8%. concernsreinforce the that the market is getting weaker. motors board is telling fiat chrysler no thanks when it comes to a merger. the fiat ceo made an offer and it e-mail for the gm board to review. a decided their own plan for efficiency and growth to generate more value than merging. mark: mcdonald's is reaching of theto the early days obama administration, naming robert gibbs to lead its global communications division. he was the white house press secretary under president obama. he will -- he will report to

steve easterbrook, who took over as ceo back in march. jeb is is in germany, saying demands agression stronger u.s. action in protecting european alliances. mr. bush will meet with leaders from three different countries. before leaving for europe, he shook up his campaign staff. the "washington post" is reporting mr. bush, who is expected to formally launches campaign on monday has filed his initial paperwork to run. that's a look at the top stories we are following this hour. betty: last evening saw a record willin housing --cerberus buy over 4000 homes specifically with an eye on sprucing them up and renting them out. advantage are taking of printing firms.

several companies have been snapping up properties, but as the economy improves, will that trend continue? joining us now is the president and ceo of gti s. this acquisition we are seeing of the bulk portfolios, is it hardere it might make it for people to afford rental properties? guest: i don't think so. i think it's becoming more efficient as institutional groups get into the market, we see more efficiencies and being able to run these properties better. there have always been a lot of homes on the market, generally 11 million homes. it's a huge market, almost 15 million homes are rentals at this point. betty: you have been doing this for a while and you and i talked about this five years ago when you started doing this. cerberus now buying 4000 homes

will stop are into late? guest: i think it is a long term business. cheap, gethe home some income and flip the home. a morei think we see permanent part of the population renting. a lot of the houses are rentals. isn't that a bad sign? if you don't see people buying homes, what does that tell you about people's credit and ability to save? guest: what you are seeing right now is the millennial's who are starting to age and creating the lifestyle of being in the inner-city and they are getting the trade-off where they want to have a home. traditionally, people thought you move into a house, you buy that house will stop today, people are making a lifestyle financialnd make the

decision about whether they want to buy or rent that property. story about a millenials being priced out of some of the biggest cities because of the price of residential real estate and stagnant wages which janet yellen has expressed concern about. that in the year ending april, rents increased faster than home values for the first time since way 12. if the rents are high, doesn't mean millenial's cannot save to buy a home he goes they are paying so much money for rent? guest: it's part of the overall cycle. we are starting to see job growth and we see that getting better. the people that it will hurt most is generation x, who came in after the baby boom. those people got killed because they'd bought at the wrong part of the cycle and lost a lot of equity. of the homeut 60% price on average and now it is 30%. mark: so it is about timing?

guest: and it is about timing. credit rates are still historically low. people will make the decision to buy when they can buy. we are starting to see initiatives to do that but we have a long way to go. betty: did you see the piece on the front page of the "wall street journal" talking about home equity loans coming due? you had generation x getting these home equity loans out on their houses and now the principal is coming due and the delinquency rates have shot up, double since people have started to pay their principal payments. 4.7% of these loans are now delinquent will stop is this a troubling sign? backs -- is and get gets back to the problem of generation x and how they lost their equity. but as home prices continue to

grow, you see them balance off as far as what their values are. they took them out, use them as a piggy bank and traded them for short-term assets and now they have to pay the piper. home prices dropped, so they have a great -- so they have negative equity. mark: a new survey was released i the macarthur foundation that found a significant majority of americans have not surpassed the housing prices from seven years ago. guest: they are absolutely right. the majority of the country, we 30 still 30% below -- percent below and nowhere near a recovery. formationn household -- we are producing 600,000, people are staying home with her parents and we see household start to demand to come back in. but it is starting to see the credit come in. who cares what the interest

rates are when you can't get a mortgage? wages are slowly starting to go up and i think he will continue to see a recovery. up and ischiller is think we will continue to see that trend. betty: the fed is about to raise interest rates. talk about trying to loosen up some credit and that is introducing more volatility. guest: it is, but if you can't get a mortgage, it doesn't matter what the rate is. as long as there are initiatives to provide credit to those people, the economy is growing and i will take that any day. thank you so much. tom shapiro. coming up, when it comes to voicemail, are you hanging up for the beep? people are.of we will tell you how companies

are cashing in on the trend. ♪

betty: welcome back to the bloomberg market day. mark: let's go to julie hyman with a look at the markets on this tuesday. julie: we have stocks muddling along today. we have had some higher and had some lower. let's look at where they stand right now. if you look at the three major averages and where they are today, we have the s&p and down solidly more in the green and the nasdaq has wiped out all of its to client.

look at what has changed in the dynamic. on thea big weight airlines and they are still down, but not enough to counterbalance everything else we are seeing. more than making up for the declines. a lot of action in treasuries today. the government completed an auction of three-year notes that the highest yield we've seen on a three-year auction. deals --the primary dealers rated it average, not terrible, not great, but average. the two year yield bumping up and we are seeing significant moves across the yield curve. some interesting action. as for the dollar, we have been talking about this cross asset volatility. the dollar has not in immune.

of bouncing a lot around throughout the session as investors tried to figure out what to make of bank activity and what the fed will do next. on oil, i want to touch prices. we see oil up higher today, going above $60 a barrel. the outlook for shale production in the u.s. is that we will be seeing a little bit of a crimping of that. opec saudi this strategy of letting oil prices get depressed has succeeded in cutting down production to some extent from those shale producers. we will find out more when we get the inventories report tomorrow. mark: thank you so much. betty: leave a message at the never mind -- few people are

using voicemail. companies are turning to cut services so they can save money. mark: are we looking at the death of voicemail? >> the telegraph, the pager, the typewriter -- nobody uses them anymore. and this -- you have reached the voicemail of -- voicemail is starting its slide into the history books. it is early days, but pushing the downturn are companies like these. jpmorgan says it will drop service for about 136,000 consumer bank employees -- 56% of all staff. savings of $3.2 million. coca-cola is dropping voicemail at its atlanta headquarters to the tune of a few thousand dollars. to the to do for a few thousand thomas saving a hundred thousand dollars. citibank and bank of america are

reportedly thinking about dropping voicemail as well. voicemail service dividers stand to lose. you might have heard this for leaving a message -- one of the biggest companies that provide voicemail -- cisco, are other major providers who should be watching the voicemail slide. but why voicemail has declined, texting has rocketed. it is faster and people are simply more mobile. in 2000, u.s. mobilephone users sent about 12 million texts each month, according to a nielsen study, but that's nothing compared to 2014, one billion texts were sent each and every month. nearly 500down to texts per month per person, up

from just 60 a decade ago. the rise of the texts and the fall of voicemail are intertwined. this is really about mobile, isn't it? guest: it is. looking to later this year, we are expecting 200 95 million people having cell phones around the country, but looking ahead to 2018, we will add 20 million more. we are not going to see an end to this. about smartphones and feature phones, feature phones are what i like to call dumb phones. not just land lines, but cell phones that don't have easy texting capability. those are going to drop over the next few years. and her member when we had feature phones, how difficult it

was to text on those. you would have to hit the letter three times. now we have iphones and android phones. betty: when i talk to mark, i just text him from here. we actually don't talk anymore. i thought this was incredible -- it saved jpmorgan $3 million. how much does it cost? ramy: according to jpmorgan, they say one line cost $10 million. multiply that across 100 36,000 cutters, that equals a lot of money. chair at thee vice lloyd and touche and he says cost savings are secondary. people are just reacting to the fact people are just not using voicemail anymore. i know i don't check my voicemail. i left a voicemail for my reducer. ramy: no one checks it anymore. mark: thank you.

i won't be calling you. betty: still ahead, he is president obama unlikely ally on trade. we will get a preview of our conversation with congressman paul ryan. ♪

what if they only knew went on during the commercials. welcome back to bloomberg market they. betty liu because she told me i had to be here. the arm twisting continues on capitol hill -- the house of representatives could vote as soon as this week to give the president fast track trade authority, but it's not clear he has the votes he needs. betty: the president is getting help from an unlikely ally -- congressman paul ryan who will be talking with peter cook next hour. peter joins us from the hill. is this an unlikely team and are

they any closer to victory? peter: it is an unlikely team and they are getting there. members of the administration spoke with agriculture secretary tom the fact and expressed confidence that they will get the votes they need in the house of representatives. but they are not there yet and that's why we have not had this vote scheduled in house. we will press paul ryan on when the vote will happen in the house and where he stands in terms of vote count. he has been horse in the voice making the rounds on radio and tv pushing for trade promotion authority, but he has been doing arm-twisting behind the scenes with his fellow republicans, but it is democrats oppose the biggest problem. only 20 have committed to back the president and house and he may need more than that to get him over the finish line. mark: who could make the difference in the trade debate?

peter: nancy pelosi is clearly the most important democrat and she has not committed to back this. if she were to give her green light to this fast track paid bill, -- fast-track trade bill, this would pass without any problem. but she hasn't done it. she has reservations about this legislation, about the larger trade agenda the president is pursuing and the european trade deal. she is not on board and until she is, there will be questions. else do you plan to ask paul ryan about? peter: they still disagree on health care. the president may big speech defending the health care law. we want to ask paul ryan about where his alternative stands to the president's health care law. to talkre also going about where tax reform stands on capitol hill. about commone talk

ground between the president and paul ryan on that but the chances seem diminished that there will be any big tax reform bill. cook in washington. you can see his interview with congressman paul ryan in less than an hour, at 2:15 eastern time. that means i'm going to sign off. talk about politics making strange bedfellows. her member told legit debate -- paul ryan and barack obama were not the best of friends but they need each other now. hour, up in the next half tens of thousands of job cuts at europe lost the us bank. we will talk about the health of investment banking overseas. stay with us. ♪

with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions.

you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount mark: welcome back to bloomberg market day. i'm mark crumpton. thank you for staying with us. let's get you to the top

headlines at this hour -- workers at chipotle are getting a boost and benefits starting next month. the restaurant chain says they will receive paid vacation, sick pay and tuition reimbursement. the benefits were previously only offer to full-time workers. chipotle has more than 50,000 employees. blue apron is making a big move -- the company announced it has raised $135 million in new funding led by fidelity investments. we spoke with their ceo earlier. we are investing in our fulfillment infrastructure and supply chain to allow us to get people fresher food at better prices and help them cook at home. mark: blue apron announced the opening of a new warehouse and dallas, texas, that will allow them to distributed most of the continental united states. campbell's soup is adding some spice to its hartline -- they ,ill buy garden fresh gourmet

the number one refrigerated salsa brand. and also make hummus tortilla chips. they will add more of today product in effort to reinvigorate sales. -stylen call it netflix noshing. kellogg is looking to start a subscription snack service. the company has assembled a team and invested in a direct to consumer food business. just last week, general mills ended its subscription snack offering after a year and a half. those are the top stories we are following. bank, isope's biggest cutting up to 25,000. -- 25,000 jobs stop they will focus on the fast-growing asian economies. the restructuring plan makes hsbc the latest bank to follow in the footsteps of its peers. deutsche bank announced its code ceos would step down.

the np and barclays have also undergone strategic changes. i'm joined by the head analyst at london capital group. studio is robert friedman, bloomberg news editor at large for finance. is this about a restoration of profit growth or is hsbc sensing a shift in the global financial climate in europe? brenda: i think it is a combination of the two. hsbc has tried to be so many things to so many people, so i think what we are seeing now is a retrenching of the retail banking sector and a concentration of where the growth is present, and that is within asia with a view to shutting down the likes of brazil, shutting down operations in turkey. it's about shutting down the price of business working well moving away from some of the areas that are not.

hsp has taken a hit over the manipulation of currency markets, tax evasion and money laundering. will the moves announced today be able to restore investor confidence? robert: usually when you job cuts, you0 get a spike, but i think investors are unsure whether it's enough and there's a lot of speculation on whether the company is going to move its headquarters from london to hong kong. i think stuart gulliver has a lot of work cut out for him before he wins back investor confidence. mark: what does it mean for the landscape of ranking in europe in light of what we heard yesterday about deutsche bank? as brenda said, a lot of things are reevaluating the universal banking model and ubs was one of the first ones in europe to cut way back on investment banking. shareholders have rewarded ubs

in terms of its share price and book value. signalanks are taking a to take some action. europe has lagged behind the u.s. banking sector in cutting assets and cleaning up the mess after the financial crisis. just mentioned the ceo, stuart gulliver. under his plan, the risk -- the bank will cut some risk rated assets with a target of return on the wii of more than 10%. -- giventtainable even not only the backs -- the bank's size, but he announced the regulatory environment was making things difficult. brenda: i think it's a rather lofty achievement to get the return investment by 2017. bank brought its

asia, iters toward would likely save $4 billion over the next decade. but keep in mind there is a levy and hsbc tends to pay the most off of that because the majority of its balance sheet is ace off the u.k.. would be good for the bank but not necessarily good for the u.k. economy and the financial sector makes up 8% of gdp. it looks like a likely scenario given the fact the government is playing hardball in relation to regulation and levees. mark: what does this mean for the future's of the biggest players in europe? of jpmorganou think and goldman sachs, if you look at the euro zone as an overall picture, we have seen better growth and an increase in investment.

easing andntitative the interest margin will be something of an issue but we are seeing a move in bond yields as well. bute may be opportunities, i think hsbc might not present the best opportunities when you take in context some of the other u.k. banks. we heard hsbc announcing it's going to sell operations in turkey and brazil. what's the motivation for leaving this country's? robert: you saw similar moves by citigroup. brazil and turkey are big i think it is a significant departure from this notion of banking everywhere. i think you'll see more consolidation in the future. making andhe banks asia pivot as well? robert: there is a higher growth there and hsbc has a history in asia.

betting hsbc does not move its headquarters because they would rather have the levee in britain than being under chinese law and hong kong. i visited their headquarters in shanghai that was taken over by the communist party and i'm not sure they want to subject themselves to the same vagaries of life there. mark: we have been mentioning during the course of this interview about the restructuring plan. would it change course if hsbc were to relocate from london because of those regulations, the regulatory burden and the higher tax burden. is that possible that it would change the dynamics here? brenda: i think it has been used as a threat that there could be a possible pullback and this is what is being held over his head in the u.k.. with the exposure to the euro zone and the fact we are starting to see signs of growth,

shortsightedght be . you have several issues with regard to credit with regard to age as well. that might be something to be concerned about but i do feel they will start to focus and concentrate their efforts were the revenue is. it is 70% coming from asia and about 8% from the u.k. what message does a move like this send to european banking regulators? robert: european banking regulators are consolidating control over the banks. they just moved from national regulators to ecb regulation. they have toughened their stress test, many years after the u.s. did the same thing. they are starting to get it together on the regulatory side and banking side.

of offeredll a lot to be made and jpmorgan and goldman sachs are still doing well as far as profit to be made and there are positive signs for europe down the road once this restructuring takes place. mark: we have to leave it there. kelly is the head analyst at london capital group. thank you very much. coffee thrivean anywhere? ♪

the: welcome back to bloomberg market day. i'm mark crumpton in new york. it's get to julie hyman for a check on the markets. julie: we're watching the major averages muddle along but turning a little higher for the dow and s&p. the nasdaq had been holding on to its losses. let's look at how the major averages are doing. seems to be growing concern among investors about the sustainability of a stock rally. we have seen it erase it gains, about .1%. one of the elements investors are talking about is the number of stocks above their 200 day moving average. that's a sickly a momentum indicator.

for much of the rally, we have seen a relatively high number of stocks be above this momentum indicator. about 59% of stocks on the s&p are above the 200 day moving average. that is an eight-month low, even though it's eight -- even though any breakdown is raising some concern among some investors. another chart we have highlighted that bears repeating is the dow jones industrial average versus the transports. one reason transports have been under pressure is the weakness we see. the orange are the transports and if you see the transports significantly underperformed the industrials, that could signal further stock declines, particularly in the broader dow. speaking of the dow, the biggest component, one of the biggest components, the biggest

component of the s&p 500 by weight would be apple and we have seen weakness in apple for the past four sessions. we have seen declines there and those declines are continuing. that's the worst streak we have seen for apple since january. when a stock that big is doing poorly, that can be a source of concern. mark: now a look at today's market close in europe. my colleague is reporting from london. >> declines for the stoxx 600, the index falling to its lowest since february. investors focusing on chinese inflation data, reporting to tepid demand at home and abroad. yesterday, i told you about the dax index entering correction territory, continuing its downward slide. it has lost 150 billion euros in value. some respite today with the

greek benchmark rising .6%. the officials within greece submitting fresh basel to its creditors to unlock fresh bailout funds. it's a vaguesays rehash of earlier proposals and is not considered edible. if you wanted evidence of the rest of the decline, this is the -- onet your on the stock the stoxx 600, every single one declining on this tuesday session. this is the corporate story -- hsbc cutting jobs and selling operations. those will reduce the headcount by another 25,000. it wants to achieve cost savings of five alien by 2017. wiped 1.5 million pounds

out. the stoxx 600 banks indexes up by 13%. hsbc underperforming year to date. look at the top stories crossing the terminal at this hour -- job openings in the u.s. rose more than forecast in april. the latest report says the number of positions waiting to 267,000 toith up five point 4 million. rates of hiring and firing decreased. the number of americans quitting their jobs was unchanged. u.s. wholesalers boosted stock tiles in april, the largest amount since january. inventories rose .4% and sales increased 1.6%. an increase in inventories can be an indication of rising business optimism as companies restock empty shelves.

a victory for new jersey governor chris christie. a court has ruled he does not have to fund a pension budget cap of $1.6 billion. they said it's up to the state -- thisure and the diffuses an issue that could have been a problem if he decided to run for president. former house speaker dennis has to it is scheduled to appear in court, accused of running -- accused of raking banking laws. he is accused of paying someone $3.5 million to cover up past misconduct. plea.expected to enter a audi at a conference today in berlin, the ceo pledged to 'onboard datatomers

rather than trying to profit from it. he said car owners want to be in control of their own data. starting next march, you can buy a mercedes that does some driving for you. the revamped he class sedan will have a self driving system for highway speeds. drivers will have to have their hands on the steering wheel and the system will not be able to handle sharp turns by it self. that is a look at the top stories we are following this hour. the owner of the tampa bay lightning spoke to bloomberg about how he plans to make hockey popular in florida. >> my formula for success is roughly breaking even, having a great team and being able to compete for the stanley cup and making a big impact on the community. we make no apologies for being in tampa bay. the sport of hockey is the greatest sport there is. great athletes, fast-paced, close games and hockey can thrive anywhere. would love to be

the green bay packers of the nhl and there's no reason we can't the company that. mark: the tampa bay lightning leads the chicago blackhawks in the stanley cup's playoffs. two events coming up today you don't want to miss. you are interviewing the jockey of american pharaoh. i want to talk to him about how jockeys get paid and to what extent he credits the horse for the victory versus the jockey. to a handicapper that said in any kind of horse race, they believe the horse deserve 90% of the credit and the jockey is just a pilot to not get the horse in trouble. mark: a pilot holding on for dear life. i do not believe people understand how strong jockeys are.

to hold on to something -- sometimes they are holding on with one hand and they go to the whip. scarlet: he had to do that several times. mark: some people are saying maybe he hit american pharaoh too much. scarlet: i don't know how much controversy there is now that he got the triple crown. mark: and this is turning out to be a much better series than people thought -- unless it involves chicago or the heat, people won't tune -- this is a very good series. think it's going to go to seven games, just like the lightning and black hawk series will go to seven games. i have to take it back to the rangers. there was a great profile last he was five years

old, his parents found him thought heks -- they was reading books but he was watching the rangers. mark: we will see you in the next hour. still ahead, jeb bush, the former florida governor is in europe just days ahead of his official 2016 announcement. that story is next.

mark: welcome back. jeb bush has filed initial paperwork for a presidential run according to the washington post. the former florida governor is in europe and gave a speech in germany today. he will head to poland and estonia. the trip comes days before his official presidential announcement.

phil mattingly joins us from washington. what is the governor hoping to accomplish on this trip? phil: he will officially become a candidate next man -- next week. you try to present yourself as a insident and voters see action and believe they can see him in the oval office. this gives jeb bush an opportunity to hit on an issue where he thinks there is an opening -- that's russia and the ability to serve as an ally to europe. particularly on the second of these arecountries -- countries very unsettled by the issues vladimir putin has raised with the incursion into ukraine and jeb bush feels like he can take advantage and show he has control of the situation and thanhe is more robust

barack obama has been in the oval office. i find it interesting because lindsey graham has said he has just about as much international experience. he has the bona fides more than the former first lady. is mr. bush trying to leapfrog senator graham on this? phil: i think even jeb bush us team would say lindsey graham has foreign policy cornered. what jeb bush is trying to show is not only through his work as governor when it comes to domestic policy, he is not week on foreign policy. one of the big vacuums is foreign policy -- because so many of them are new senators like marco rubio or have only served as governors, that

clearly means a lack of international experience. jeb bush is saying not only do i know the players and the issues, but i can speak deeply and eloquently about those issues. you mentioned his speech in berlin -- he had a 15 minute q&a where he took on all comers from edward snowden to nato and russia and climate change. his willingness to do that on stage is where he thinks he sits in advance. phil mattingly joining us from washington, thank you. coming up, our chief washington correspondent interviews congressman paul ryan and finds out why the republican chairman of the house ways and means committee is one of president obama's biggest supporters when it comes to trade. ♪

mark: it is 11:00 in new york. house republicans are still working the phones to a fast-track trade deal.

we will speak with the house ways and means committee chairman, paul ryan. scarlet: general motors tells chrysler it will pass on takeover talks. mark: and he's the man who made history at the belmont stakes, guiding american pharaoh to winning the triple crown. he will join us live in the studio. mark: good afternoon. this is market day and i'm mark crumpton here with scarlet fu. scarlet: let's get a look at the markets -- it's kind of boring and equities right now. the dollar is rebounding but we are in search of a catalyst