erik: i'm erik schatzker. ahead of this step for a new drug that could prevent heart attacks. stephanie: a mere $25 billion in advertising is up for grabs. we will speak to the executive in the middle of deciding where all of those go. erik: but would you worry about if you are running america's second-largest company -- the ceo of chevron, john watson. greece tops the agenda once again. looking to leaders of germany and france. angela merkel expected to meet to talk about how greece may get more money. greece is running out of time and money to make international payments. the problem now is how greece will perform in its economy.

germany members of parliament are getting set up -- fed up. >> we want greece to stay in the euro very much. greece has to come up with proposals, proposals which are really serious and what they are delivering at the moment is not serious at all. erik: the head of japan's central bank says he cannot cvn falling much more -- see the yen falling much more. 1% on a dollar after comments by a governor -- a 13 year low earlier this month. 11% last october stephanie: there is a new valuation for spotify p are more than $8 billion, twice what it was at

the end of 2013. a swedish phone company took a 1.3 million dollars stake in spotify. it has more than 60 million users. it is amazing because they are not actually paying anything. apple announced it was coming out with its own streaming service. moving on, and advisory panel recommended the fda approve the first of a new >> drugs aimed at heart attacks. the fda usually follows the advice of its 53 panel but not always. in a few minutes, we will speak with the doctor running the global organization working to get parliament approved. in the nba finals, it is clear who the m.v.p. is there lebron james scored 40 points to lead

the cleveland cavaliers over the warriors. they now have a two games to one lead. seth curry had 27th or the warriors were behind 17 points entering the last quarter. finally, he found his groove but it was too little, too late. better luck next time. erik: breaking news on johnson controls. vonnie: exploring options for the separation of its auto unit. they make a lot of things related to auto all sorts of other things. the automotive unit about half. power solutions we hearing

johnson controls has engaged goldman and sensual advisors to explore its options. it has no specific timeline for a review but options are being considered. the stock is up about 7%. erik: thank you. let's talk what the five things you need to know this morning. you can say johnson controls is among them. the return fund cut almost two thirds of the u.s. government debt holdings in may. this was just in time for the selloff we see in treasuries. from 23.4% back in april to 8.5% in may. pimco's total return fund is enormous and it is a big market mover.

it may be why the treasury market was selling off. stephanie: without a doubt. blackrock even fidelity needed to make a move that would make a difference to them, it would no doubt affect the market. erik: at one point, it maxed out at $263 billion in assets making it the single largest on the planet. now they have 170. any believe it is down to 107? stephanie: the street had inventory so they could exert -- absorb a big firm like blackrock. now things are so different. see how good at math he is? moving on to number two, msci ended up holding off often to work with the chinese security

regulator to overcome security obstacles. i'm wearing a jim chanos hat here. they decided to work with china's regulator. how much can you relieve, or maybe they will say, i will get over it. erik: i think they took a diplomatic approach. stephanie: let's head to the newsroom with julie hyman. julie: number three is a twofer. a big market myth. it surpassed 1% since -- the first time since september. the recent data points we have seen in europe have been improving. also a lot of supply coming to market in the u.s. then the yen is searching after the bank of japan governor said it was hard to see his nation's and currency falling further.

he basically said common sense would say the yen had gone down as far as it would go right now. stephanie: we have got to move on quickly. glassdoor has just released his third annual employee choice awards. the most popular ceo's is among employees include larry page mark parker, and mark zuckerberg. i would like to know a companies actually participated. it has only been around for three years. it is a west coast based company. i wonder how many companies participate. i have not been in banking for a while, but i do not know there are too many banks -- erik: we have got to move on. los angeles may hike its minimal wage to $15 per hour. this faces a final vote from the l.a. council today.

briefly, i would say this is what is supposed to happen. this is a republic. studies and states and municipalities can take action on their own. it might happen and then people would decide. maybe it is not quite enough to entice you to move there. stephanie: who'd want to live in beautiful weather with gorgeous women? erik: chevron getting a big boost from an fda advisory panel that examined the potentially blockbuster cholesterol drug. doctors recommend a vote i 13 -- by 13 to 3. it is on its way of having a piece of the multibillion-dollar cholesterol -- with us now, a doctor head of

the k-9 unit. thank you for joining us. i am sure you are pleased to the advisory panel moved your drug forward. here's what i and a lot of -- a lot of people want to boot -- to know. >> we were really pleased on yesterday's vote allowing us to keep moving forward with the fda for patients with high risk of disease. h a menace opportunity to get it better controlled. erik: are you going to continue to try to get it approved for a broader amount of people? dr. edelberg: we have studied it in the high risk patients the patients with genetic forms of high cholesterol. those who are high cardiovascular risk of heart attack. and the people who need to take them. we have really studied these

high risk patients. stephanie: where you go from here? dr. edelberg: we're looking forward to discussions with the fda and health authorities so we can get it out to our patients as quickly as possible. stephanie: what will it cost? dr. edelberg: we cannot really discuss that at what we should focus on is the medical value. the bad cholesterol is an important risk factor one of the most important risk factors for cardiovascular disease. so many of my patients have had recurrent heart attacks, not able to get the ldl, the bad cholesterol, under control. we can add it on and get that ldl down for patients with genetic forms of high cholesterol, those who have had

multiple risk factors, as well as is patients who cannot take -- erik: can you explain whether -- i will go back to the question i asked you before. why would it be proposed or studied only as a compliment or replacement of a certain successor because based on what i've read and i were not claim to be super well read or informed, it does have a lot of side effects. dr. edelberg: it has been great for our patients and has done tremendous things to reduce cardiovascular risk. many of our patients cannot get to treatment goals just with this alone. we developed this to be on top of it aired patients should not be reducing that but the extra

ldl lowering, that is what we developed this four. we see great tolerability. patients and investigators who really reported they have done very well with the drug. erik: i know you are not prepared to talk about the jug's cost but it is estimated somewhere in the order of $10,000 per year. nevertheless, expensive. are you worried about how well the insurance industry will accept the drug at that cost? dr. edelberg: we are focusing on the approval process here and focusing on making sure we are clear on the medical value of lowering that ldl. we are working with all of our stakeholders with physicians and patients as well as insurance

companies themselves. erik: dr. jay edelberg. thank you. stephanie: when we return, a media review enzi. an unprecedented number of companies are revealing where to put the big advertisement dollars. we will speak with the media link ceo next. ♪

erik: here is something you do not want to miss today. bill clinton sits down with betty liu to talk politics, the economy, and, as always, much more. he has much to say. live from denver today. stephanie: let's talk about one of my favorite subjects, the media, changing right before our eyes, which might explain why an unprecedented number of companies are currently undergoing media review where

they reevaluate how they are spending billions of advertisement dollars. it was even dubbed media poses a 2015. who better to bring in than the expert. the ceo of media link a strategic guiding firm. welcome to market makers. explain how this worked. michael: think of it as a beauty contest. you bring in pretty girls and choose which ones you want today. stephanie: facebook, snapshot -- snapchat? michael: no, the media agencies who will plan the media for the world's load -- largest marketers. you have an agency that works with you as a partner to plan and be strategic. erik: is this like television

upfronts for the advertising business? michael: it is a bit different. these are long-term relationships, generally. historically, if you were a roster agency, media companies -- we hand them down generationally. along with a short shelf life something we talked about for many years. it was 18 months at one point and has moved up to 24 or 26 months. as those jobs change, the relationships change with them. that was historically where they would happen. now, as stephanie said, it is unprecedented. some are close to $26 billion are in play right now. those agencies historically placing billboards, those

relationships are in question and the movement of those dollars is obviously unprecedented. creates quite a stir in the marketplace. stephanie: let's talk about where those advertising dollars are ending up. billboard radios and magazines? michael: hardly. i think it is highly overstated. i think media dollars do not always follow eyeballs. they're starting to appear the challenge, and when you use the word digital, i like to clarify everything is digital. we are hologram, we are digital. if we were, we would still be digital. as a result of that there are a lot of challenges. one thing driving a lot of these media reviews and the

transparency issue in terms of or the moneys being invested, and who is making what on the transaction. erik: how much transparency is there right now? michael: not as much as marketers seem to want. a couple of drivers i think are leading this charge on media reviews. procurement for most companies is playing a larger role in the marketing and media space. as a result, there is a demand for more proof of investment. erik: you can get some of that from digital platforms in a way you could never michael:. michael: absolutely procurement plays a larger role. it should unnecessarily be first chair violin. that is how a marketer should use procurement, as a tool and not a sword.

seemingly the term, programmatic, really just at the end of the day, as matt at media link likes to say, it is really just solid media combined with better dad -- better data. it is important and makes an impact on the business, it is really what it is. those two things transparency or the lack thereof and said we trust. there is not the same trust between agency and client as there used to be and that needs to be restored. there is a fifth thing for good measure. the other thing is the lemmings feeling -- theory. someone who follows what everyone else is doing. i think there are lemmings in the market today. stephanie: hopefully none of us

are any of them. michael, thank you so much. the chairman and ceo of media link. ♪

♪ stephanie: welcome back. i'm julie hyman and it is time now for futures and focus. we are looking at gold today as the u.s. dollar begins to weaken. a two-month low after that better than estimated u.s. jobs report. joining me is scott bauer, the senior market strategist at trading advantage. gold has not been something we have talked about as much. there has been action in the bond market, action in the currency market.

gold has sort of been quietly rebounding in the past couple of days. do you think it will last? scott: i do not. one reason we have seen this is the better than expected jobs report we saw last week. we are also seeing a little bounce because we see some uncertainty coming out of greece. they will, they won't. it puts some pressure out there and boosts the price a little bit. over the last few months, we have seen lower lows and lower highs and that keeps us in the. pattern. though 1200 was a critical area of support and we broke through that, we're trending close to it and i think we see 1150 the next big area of support before we see 1200 again. julie: interesting. there has been concern about

volatility to we have seen volatility in bonds and currencies. one would think investors would be looking for something you perceive as stable or safe here. why isn't gold benefiting more than that? scott: we have a swiss e-mail week this in the dollar. when we see that bounceback that will be a negative for gold as well. technically and quite frankly fundamentally right now the overall trend is still the downside. a couple little blips from the jobs report last week p overall trend is the downside. it marks a pretty stiff support level and will now be really stiff resistance and will come up against major sellers in the area. i really think when everything economically and everything news out of europe and greece settles out here, it will put a lot of

pressure on greece. julie: thank you, scott bauer of trading advantage joining us from chicago. erik: thank you very much. >> time to take you to the top news stories. in egypt, a suicide bomber blew himself up steps away -- in the city. after the explosion, police shot and killed two suspected islamic militants. johnson control is considering an official breakup. johnson said it is viewing whether to spin up its auto parts unit. that would allow the company to focus the other companies such as building air-conditioning system. auto-parts generated more than half of $22 billion of revenue last year alone. erik: republican leaders in the

house are pushing for a vote on the trade bill. it would give president obama fast-track authority to negotiate a trade deal getting democrats onboard is the obstacle and there may be a hang up to lose their jobs because of free trade if it were possible to even know that. an airline industry group thinks millions of flyers shopping for suitcases. the group recommended carry-ons be smaller than the current standard size. stephanie: i love it but i say baloney to now that they charge for luggage, i sit on my plane and watch people -- it is -- it tortures me. so far, they do nothing. we all sit in our seats.

they need to police it. we're sitting in our seats and now they have got to take people back down the road. i hate tweeted at delta when it happened. they are allowed to misbehave. come on now, delta. we already just hit one. ., erik: the accident that took place a few weeks back from a new york city down the train derailed from philadelphia. as you recall, eight people died, more than two edge people were injured. many questions would be asked. we don't -- we know already the train was traveling at more than twice the speed it was supposed to be traveling. there are questions as to why speed control devices were not put in place that would for -- force the train to slow down.

stephanie: many people are also saying, think about amtrak. it has been in trouble for years . think about people, tracks not being in service. this will obviously only worsen the situation. erik: maybe will -- it will improve it. i'm a believer if you improve the tracks, we have a european standard -- a swiss style, people would -- stephanie: i take the train to d.c. on a somewhat regular basis. i know somebody who does. why do i even make the attempt? we know it will not work out there does us is happening today? at noon, jamie dimon is lunching with global leaders in chicago p are you may be a lucky one attending. i am sadly not. jamie dimon is really coming back out into the public.

probably right around this time. erik: he had throat cancer. he got cheated and he is better and to that point, he is back. after talking to tampa bay lightning yesterday we have all got hockey fever tonight. game four, chicago blackhawks hosting. in chicago preparing for the big game, tampa bay released the series 2-1. i am in his corner p are i love the blackhawks. the guy seems to genuinely love hockey. he says it is ok. stephanie: of course he does -- erik: hang on a second. stephanie. he is a wealthy dude. he says it is ok if all i do is break even. he is not looking to milk the fans for tons of money.

he said it is ok if i break even. yes got a real estate project pair that means the fans will probably get a better spirits -- experience. stephanie: i think they get a better experience whenever the team wins. erik: still to come, i will take you inside one of the world passes biggest energy companies. that would be chevron. ♪

♪ erik: chevron, the second largest oil producer in the united states, is active in more than 180 countries, palm's 2.6 million barrels of oil and natural gas every day, and the ceo faces tough decisions come about oil prices, for example. political risks and frackers on the one hand and the nobles on the other.

i sat with the chevron ceo to find out what makes this company different than the rest of oil. less we are a little different. oil and gas production relative to down streaming chemicals. the geography where we have chosen to invest russia and middle east relative to competitors. we have had to make choices based on investment returns we have seen. we have chosen now not to be a part of southern iraq. we did not see economic returns. erik: it seemed when oil is at $100 the independence had the best business model. we are living in a different time in a different place only seven months later. was big oil build for price environments like this? less i have been in the industry

for 35 years. we have been there before. economic conditions have changed and costs have changed. different fiscal terms, different risks and other risks we encounter. we know the projects will not oh is be exactly what you expect but we have to have the balance in our portfolio and we have the advantage to do that. as opposed to just a short-term view of the u.s. business, which has been a blessing for this country, but it is not the only thing that will be needed to bring and she who world -- energy to the world. the development has been tremendous for this country and the independence that largely fueled that growth accomplish

those things. if you look at the production for oil, is four or five million per day. 93 million barrels per day. it is interesting, it has not worked out that way. there have been fewer places where the rocks have worked and the economic system is in place. the world will need a lot of energy. it will need shale production but also deepwater and other forms of oil and gas in order to meet the needs in the marketplace. stephanie: that is the current game plan. these guys are nowhere in fracking. do they have a next one? erik: a few years from now, these companies, chevron, bp the majors, are going to look

back as the best of all possible -- all possible things. they have time and they can go back having learned from the independence. some of the independents will be driven out of business and driven into the arms of big oil and they have now seen what fracking is capable of. they're not spending a lot of money now but when it comes time again, they probably will not miss the boat. the next boat. i do not know which boat is, but that is the problem with these companies. there are so big and slow moving in a thicket terms of decades and cannot actually speak things staring them in the face. and they have this opportunity when oil prices plunge to the saudi's to go back. a whole lot more of the exclusive interview with the ceo

of chevron plus, a look at his company's biggest project in the world, 50 $4 billion in australia, plus we will talk about what this company, chevron, is doing. for more, 10:00 p.m. eastern time stephanie: still ahead, back on the big strain -- big screen, we will give you a sneak peek for the teaser trailer of the new hunger games movie coming up next. ♪

erik: still to come, a close look at the money behind building a new sports league in today passes digital age. right now, the premarket, stephanie. what are you laughing at? stephanie: can you imagine doing one of those challenges? run, push-ups hands dan.

american ninja warrior is one of my all-time favorite shows. but this, they were throwing a live event crossfit gay marriage i was so blown away by these women, regular civilians doing that. and then dropping it and going like --what scenario would i ever be in? throwing it on the ground. like never, pretty much. i never want to do that. i have no interest. erik: i was saying, there are some stuff on the move. i want to know what they are. stephanie: julie hyman, when you see a woman like with that giant barbel, it is the opposite. erik: julie, i cited training for that event yesterday. julie: yes, i was trading -- training for that exact event. a lot of people do. very lucrative now. i want to hear more about this

later. jim works is the first up this morning, being initiated. the stock is down 2% in the premarket. analysts basically said they are too optimistic in earnings estimates and earnings shares might peak given the delivery of shows to netflix over the next couple of years. we are also looking at lending club's this morning. fifa up by 3%. analysts are saying it is still the early days and that there is a large opportunity for lending club as it expands to different types of products. finally, this one is interesting giving the -- given the news that it is destroying the auto business pair the entire company being cut to underperform. a couple of reasons here, one of them is the valuation that stocks have declined recently.

a good year in terms of prices. stocks, 10%. erik: julie hyman. stephanie: we have got to move on. i'm getting hate letters by the tough mudder enthusiasts. i kind of get that. let's picture this. blowing up riff -- with really fit people. okey-dokey. how about this here this is horrible. a fire that roque out monday night, it is still burning days later, sending thick and dark smoke into the sky. at least five people have been killed so far, including three of the firemen there to perform rescues on the scene. at least eight storage tanks are on fire and that the emergency

is now under and show but residents are obvious event waited. the fire is still going and the cause is still unknown pair these current images what is today, thursday? erik: it is wednesday. stephanie: wednesday. my gosh. erik: welcome to my world, everybody. katniss is back. the teaser trailer was released for "mocking jay part 2." stephanie: there she has her jennifer lawrence. erik: here we go. ♪

erik: the official twitter account movie related poster. stephanie: i'm guessing your daughters are huge fans. erik: they are. they love the books and the movies. stephanie: i love the movies and have not read the books. i think the whole theme is a little mature for kids. erik: that is the way it always is. stephanie: you know what, i just wanted innocent household. that is what it is. i will definitely see it. i love jennifer lawrence. "sewer linings playbook" is an amazing movie. i'm a jennifer lawrence fan. ♪

stephanie: outside of the company boardroom, and accounting offices, no one really knows, carmakers make

this information guarded because it would cripple sales. it does not stop analysts from guessing here the results may surprise you. >> take a look at fort's f series. the best-selling truck in america for over 35 years. north american production analyst jeff schuster says it has always been their bread-and-butter and will continue to be. this truck is ford. analysts routinely used the nice round figure of $10,000 unplugging the profits into their models, and can extend north of 15% or the number varies depending on the model here the f1 50 starts at $26,000 for the basic two-door, two wheel drive, but runs quickly passed $78,000 for fully loaded at 450.

of course, overproduction can weigh on margins. it forces the manufacturer to offer incentives. the change in production can also affect margins per with a recent switch to leumi embodies fort's production dropped in the first quarter and overall american margins tracked from what would have been over 10% to just 6.7%. the chief financial officer bob says bank got for the f1 550 and says it will dry -- drive a breakthrough year for profit. the morgan stanley analysts said fort's f series makes up 90% of the company's automotive profit and in some years, it is more than 100% because everything else actually loses money. in the months that led up to the

great recession when oversupply went to the bankruptcy of general motors and chrysler, all three carmakers made such big incentives that they lost money on all of their cars. it was only their trucks that kept for to float. erik: matt miller is right here. stephanie: and he owns a ford f1 50. matt: that is a good disclaimer. stephanie: it came and picked me up in a snowstorm. erik: if for trucks in general counter 90% of profits on a regular year, why do they make anything else? matt: they do have the other 10% of profits and the ford family wants to get money for that. also, brand loyalty. it is not all about north american business. globally, the focus is the biggest selling nameplate there is.

more focuses our soul than any other car in the world. big suv's do not have the same impact that they do in the u.s. and a need to continue to have a foothold around the world. stephanie: if you are a global brand, is this what you need to do? did not try to make this argument to you yesterday erik:? erik:i was not -- yesterday? erik: i was not arguing with you. a fair point, why not just -- just do trucks? matt: they need to do as matrox as they possibly can. production is down still. sales are still down about 1% and what they need to do is get into the factories and keep making them. they should be normalized in production by july. stephanie: we will be back with

more. ♪

>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. erik: good morning. i'm erik schatzker. stephanie: i am stephanie ruhle. in case you're wondering, it is wednesday. we have got a lot ahead. the justice department is eyeing his next wave of probes. first, why don't we give you the news. vladimir putin says russia has no relationship with the group of seven nations but is willing to meet with any g7 leader one-on-one. that is what the russian president was doing earlier

today in italy where he met with the prime minister. putin says sanctions imposed on russian ukraine of hertz relations with italy. he meets with the pope later today. greece wants the leaders of germany and france to help break the impact. in brussels, the greek prime minister plans to meet today with angela merkel. negotiations on how greece can get more bailout money are deadlocked. creditors are frustrated they are not delivering the reforms they want. was the engineer of the amtrak train on his cell phone before it derailed? investigators aren't that could come out with their findings later today. accident happened in philadelphia last month. eight people were killed and about 200 more were injured. erik: the justice department may charge general motors with fraud

in an admissions case or prosecutors have determined gm probably made misleading statements and concealed information about the switches. those have been linked to more than 100 deaths. apple just unveiled its streaming service and already is under investigation. prosecutors in new york want to know if they were pressured into favoring apple. the company is not commenting. that should not surprise you. rivals such as spotify and pandora. at the moment, those are your top headlines. stephanie: the justice department is eyeing the next wave of prose in the financial markets. the doj has begun examining trading in the treasury market and is looking into a possible collision situation in the gold and silver markets according to three people familiar with the matter. who better to bring in than the woman who is on it, keri geiger from bloomberg news. what is the word?

keri: it was like the expansion they have had great success with, which resulted in seven banks total being guilty to collusive behavior and guilty of fraud in some of those cases. they're basically taking the model and expanding it to other product lines and benchmark speared we are looking at certain trading and treasuries p or we are not sure what part of the treasury market. it is in very early stages it all-encompassing at this point. we are also looking at precious metals and certain types of oil. this is a way for the department of justice to figure out if there is criminal activity happening. it is a fair counterpoint. erik: is this just a dragnet or do you have reason to believe that they suspect something? keri: it is probably a little bit of both. the way the last case came

about, they were able to look through other product lines and e-mails and different things and probably catch some things there. erik: look deep enough into the bank and you are bound to find stuff that is bad? keri: you will keep finding bad things. banks led guilty to numerous issues over the last few years and they are very easy to help the department of justice cooperate at this point. it is in their best interest to do that right now. erik: they want to be like ubs was. hang on. they caught a break on libor or vice versa? keri: because they violated the terms of agreement, they had to change it to a heavier penalty, a guilty plea. erik: yes. it worked the same way for barclays.

berkeley started to cooperate with regulators earlier than any other bank and paid a lot less. keri: yes. the department of justice it is likely they want to make it easy for the banks to come in and volunteer information in exchange for leniency. every product group for them to be looking at, opportunities for all the banks to come forward with what is going on. stephanie: we are learning now they are expanding their reach. what is the timeframe? are they saying, we're looking at other markets? how long do with ink before we could have any announcement? keri: one exchange took two ears start to finish. they are getting better these investigations, more efficient there they know where to look and how to look here they know where to put pressure in banks to get involved. these will take at least more than a year. er: great story.

i'm courage everybody to check it out. let's turn to energy markets. chevron is doubling down on fossil feels at a time when nobody can say when or if crude prices will rebound near the company is investing billions of dollars on oil and gas in the world. i took a look at one of chevron's's largest drilling platforms in a special report. >> we are one of the largest leaseholders in new mexico. the industry has been on a steady path. when i joined the company deepwater was a couple of hundred feet. we are now drilling at 10,000 feet and producing a 7000 eight of water. it is a very different environment but has been a steady path of improvement over my 35 year career. the question says oil prices were plunging, chevron began plunging oil, the $7.5 billion

project -- at the same time. the company was putting the finishing touches on bigfoot. >> a 5.1 billion dollar major project. i do not know of anything that has probably got more engineering more technical from the design to the generation that we have out here. >> it is 450 feet tall, kind of like a skyscraper south of new orleans. >> our drilling rig. >> then something went wrong. chevron plant to anchor it. in late may, six of them lost buoyancy. all of them are sitting a mile down on the ocean floor. >> if you are into long-term

deepwater offshore, that is a different business, a much higher technical set of requirements and risk. you better operate to manage the risks you face in the deepwater offshore or you end up with a bp disaster. >> now chevron is telling back. they cannot say when the platform will start pumping oil or reach capacity at 7000 barrels per day. it will not the way starting target of december of 2015. erik: more for my exclusive interview from the chevron ceo john watson. we will take you inside plants in australia. that is tomorrow night, inside chevron, 7:00 p.m. eastern time. stephanie: cancel your plans. ♪

stephanie: welcome back. you're looking at beautiful shot

at london. now, in beautiful -- beautiful new york city. ge racing to sell off units of its financial business. they just announced a $12 billion deal to buy private equity lending unit and that may set up ge for another round of deals. rick is here to tell us what is next to it got this news yesterday. eric was really pounding his chest, so proud of the canadian pension to have this kind of dough to put down to buy this kind of business. you were feeling good about it. erik: i was saying how interesting it is that canada has a security plan to invest in private assets. so far, they have made a lot of money. stephanie: talk to us about ge. rick: they did this 12 billion dollar deal yesterday. they are in the process of

selling off about $200 billion of assets in total. they originally said when they announced the plan a couple of months ago that it could take a couple of years. it is going a lot faster than anticipated. they think we will have it all done by next year and will probably have another couple of deals to announce. erik: are they rushing to get rid of the stuff because we are in a low rate environment investors are hungry for yield and maybe they will not be quite as hungry for some of these credit products, because that is what they are a couple years down the road. rick: yes. this is something they have been intended to do for a number of years. the financial crisis, they have been trying to shrink the financial unit. it was not until they felt the market conditions were right that they really took the plunge and decided to sell pretty much everything they are going to sell. stephanie: seeing as how it is going so well right now, could one make the argument they are doing it too quickly and if they

held a longer, maybe they could pull out of it? rick: you could make that argument and i do not think ge is that concerned. for them, the price they get for these assets is not necessarily the only thing they're worried about. they want to get out of this as quickly as they can. in some cases, the ability to close the deal might be as big a factor as they get. erik: one thing i wonder is how much pressure does jeff feel as they trade in the premium for the s&p 500 price for earnings. ge is pretty much where the market is. there was a time when they were building the finance business when ge traded at a significant premium to the s&p 500. does he talk at all about that? rick: from time to time, but you

know, it may be a little bit of a sensitive subject. i think a lot of people recognize when he took over as ceo back in 2001 just before september 11, the stock price was maybe a little overinflated and had nowhere to go but down at the time. it is not where it was then, but it has been doing well. erik: sort of the low single digits. rick: right. it is up 8% or so this year. they have got a big pop when they announced the plan back in april. stephanie: thank you for joining us. erik: let's look at some headlines and show you what is making news at this hour. a suicide bomber targeted yesterday in the southern city of luxor. police say they kill two suspected islamic militants.

so far no claims of responsibility. investigators went over the engineer's phone records. it happened in philadelphia last month. eight people were killed and more than 200 were injured. you might think airliner bathrooms could not get any smaller. guess again. boeing plans to do just that on an updated version of the 777. they squeeze 14 more seats into the cabin. it makes me wonder how small the bathroom has to be in order to get 14 additional seats into a 1777. stephanie: it is also a time when americans are getting bigger. it is their problem but what are we going to do about the fact americans are getting busier, they will not fit in those seats, and those bathrooms, i can barely fit in them. erik: we will not have to do anything about it. stephanie: when you sit next to

the person who does not fit in the sea, you have got to do something about it aired eric and i are airing all of our commercial airline complaints today. okey-dokey. coming up, the dollar and the credit markets. we will look at why dollar weakness can be a big risk to corporate debt. ♪

stephanie: good morning, san francisco or in the morning. beautiful town. also pretty nice in new york. you are watching market makers and we are talking pimco. back in may, just in time for

the gym selloff. as the markets break for a rate hike, where should investors and debt in those fixed income markets be going? let's bring in for his debut on "market makers," a former colleague of mine, rich. big news out of pimco what they're doing with treasury. how does this affect the market? rich: we have to put the context of the move into account. 80 basis points since the lows of june. clearly pimco is reducing its rate market. what we have to think about is the dollar volatility both significantly changing compared what we have seen last year. dollar down 4% in the last couple of weeks. rate currency, spreads wider. erik: why does the dollar matter for the high-yield market? rich: the dollar is important for tita's reasons.

one is, foreign investors own 20%. erik: purely about foreign demand. rich: correct. and they play a role in u.s. high-yield. stephanie: let's bring up the chart right now. rich: as you can see from the chart here we are looking at total return of u.s. dollar high-yield relative to treasuries. keep in mind the pimco total return fund is primarily focused and governments. you'll see a massive outperformance in high-yield market out to date relative -- one of the things that has been key for corporate bond this year is lower duration and higher spread. stephanie: are we seeing people move into high-yield and corporate ons in a different sense? rich: one of the things we have taken a look at is your to date flows. something that could be

concerning to some people is the rate of info into the high-yield market as compared with u.s. or overall equities. this chart shows you inflows as a percentage of assets and you see high-yield is off the charts. stephanie: what are you most concerned about in credit? what is first thing you're looking at now? rich: you have to be concerned with the macro and company specific fundamentals. we are absolutely concerned with the level of rate volatility picked up in the last couple of months. it is very unusual to see this level of rate volatility in government safe markets. that is important. stephanie: we have got to leave it there. ♪

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 erik: we are just a few minutes away from the opening bell here in new york city. tracey holloway's with us. let's talk about the markets trade. this is what we do everyday.

tracey: the number one status got the port from bp. it is a seismic shift in the landscape of global commodities markets and it means a whole bunch of things not just for oil prices but also politics and fun stuff like that. stephanie: like what? tracey: four oil prices, all eyes are on the u.s. it also means a lot for things like opec and opec was oh is a big name for oil markets. erik: an oath because lost control of the oil market. tracey: i am sure a lot will be happening on that front. erik: gases being included, right? saudi arabia still produces slightly more oil. tracey: actually, i think the u.s. is now the biggest oil producer as well. it has unseated saudi arabia.

erik: that is worth a wow. tracey: it is amazing. number two has got to be the yen. the yen has been surging and falling and falling. markets reacted strongly and it looks like the yen's place for its biggest one-day gain against the dollar. erik: i want to know what you think the governor of the bank of japan's up to here p or why would you say -- here. why would you say you think -- unless you are trying to telegraph to the market something about intentions when it comes to bond buying? tracey: the market interpreted that as meaning maybe the boj does not keep easing. maybe what happens later is he actually act down a little bit bit -- backed down a little bit. erik: then he overshot the other way.

just imagine for a moment janet yellen. janet yellen has been trying to talk down [indiscernible] not like that. stephanie: that is apples and oranges. janet could not 30 would create complete pandemonium third it is not even an option for. janet yellen scratches the left side of her nose during remarks in a whole world flips upside down. give us number three. tracey: the drama over at target. stephanie: as in, is there enough exclusive products to fill all those suburban houses in america who are dying for it? tracey: not quite. target last night asked that we published a press release advertising what would they say at the shareholder meeting about the dividend and also reiterating this $5 billion share buyback.

the stock went up and then they said we didn't publish the press release. it was a mess. stephanie: how does this happen? it blows my mind. tracey: people were thinking this is another one of those situations. it was confusing. erik: they confirmed it last night. tracey: more buybacks continuing that the theme of share buybacks in the u.s. market. stephanie: blows my mind could there you have it, the has been -- bell has been rung. erik: tracey, thank you very much. stephanie: it wasn't about lily pulitzer and those blowout items. erik: stocks are trading higher. let's take you to julie hyman for some of the morning movers. julie: it looks like we will snap three-game losing streak at least initially as we trade out of the gate.

take a look at netflix. shareholders confirmed that it is going to be splitting its stock. we are seeing the shares rise to a record on that. a couple other things about netflix that caught my eye. marriott guests at some hotels will be able to watch netflix on their televisions if they are netflix subscribers. that would be the first hotel chain to do this kind of program. another ubs or netflix item, he asked it is raising its price target. quite another leg up for that stock. johnson controls from this company was once the largest u.s. auto supplier bernama wants to upload the business entirely -- but now it wants to offload the business entirely. it has been building components business, power supplies business. that would be the other portion of it. shares up by 4%.

another deal of talk about in the insurance industry. tokio marine, obviously a japanese-based committee, with hcv insurance for seven $.5 billion. you expect to see hcc trading substantially higher on this. it looks like we have a little bit of a delayed trade on that. but interesting, saying that the cross-border deal in the insurance industry -- tokio marine has been pretty acquisitive but this is the largest acquisition. erik: julie, thank you very much. with us now from blackrock managing director and chief investment strategist in san francisco. we took a look at san francisco and it is a bit of a cloudy day there. there are a few clouds hanging over financial markets. treasury yields and sovereigns worldwide have been backing up. in that world that i've just described, what do you like?

>> well, there is value outside the united states, and one of the defining characteristics so far this is that by large, international markets have been doing better. despite the volatility in the yen, we still like japanese stocks. bank of japan, despite the comments, will be keeping monetary policy eas for a couple of years. ythat is a big tailwind. closer to home, it comes down to where are you in the u.s. market. by and large, u.s. stocks are not cheap but there are pockets of the value. we see better value in some of the more cyclical names -- technology, financials. this is a sector that will benefit arguably from rising rates which the opposite of what we are seeing a lot of the more rate-sensitive parts of the market that have been hit hardest. stephanie: are you not concerned about evaluations -- valuations in tech names? russ: it depends on where you

are in technology. by and large, if you look at a lot of the large-cap -- i will call them old-tech names for lack of a better term -- the valuations are not that stretch. these are the ones who will benefit if we see the expected improvement to the u.s. economy in the second half. erik: russ i'm thinking fixed income. i mentioned this selloff in sovereign debt. it has been happening year but really accelerating in europe. the 10-year yield, the yield on the 10-year bund cross 1%. when it was almost zero moved 1% mean something. the move on the french suburb on a couple days ago crossed 1.2 and is headed towards 1.4. what is behind it? russ: what is behind it is several things pretty think

about where we were in the european barn market -- bond market, the yields were impossible to object if i believe that europe was heading towards deflation. even then, you have the lows of 25% of the sovereign debt market with a negative yield, something that economic textbookso tell us should never happen. one, there is in some recalibration about europe. inflation is still very low, but back in positive territory. second, this was the reversal of a crowded train. everyone was long european debt, thinking it was a huge tailwind from the ecb. when that started to unwind, it went very quickly, and that is where we have seen this movie and b-- move in bund yields. most of it has already occurred but it illustrates a broader point. this is probably coming to an end and investors have to expect more volatility. erik: is this the time then, to

step into european sovereign debt, or would you still wait a little while and see how it shakes out? russ: i think for a dollar-based investor, it is hard to argue that a 1% yield of german bunds is that attractive. erik: why? if this selloff is over, you could make some money. russ: well, it is possible, and that is the logic of people who are buying german bunds when you were five basis points, thinking that if the ecb is buying, they could go negative. but it is a dangerous game for the longer-term investor and you are not being rewarded very much. there are better opportunities closer to home, for example, in u.s. high yields and tax-exempt. stephanie: but in u.s. high yields, if we experience more volatility, we will be smack dab in the middle of a credit for a problem and that is a hard market to get out of. russ: well, right now any market, particularly in fixed income, is difficult to get out of.

we saw the change in the liquidity regime. none of this is particularly cheap after many years of central banks being the marginal buyer of the bond. but if you look at the u.s. high-yield from you look at the spreads that are available, the yields available, relative to the volatility, it is still a reasonable source of carry in a low-yield world. we do not space it is still more attractive than buying german bunds for the dollar-based investor. erik: people are looking for opportunities beyond equities and fixed income is of this low yield problem. do ever think that there was a problem with precious metals become attractive again? russ: gold is an unusual asset class and there is argument why it belongs in a lot of portfolios in the long-term. it is an uncorrelated asset class. the problem with gold is gold has no deal. in periods like 2011 and 2012, when the rates were negative and going down, that was fine.

the problem today is that you are seeing these abrupt back ups in real yields. the 10-year u.s. yields have gone up by 50 basis points in a matter of a couple of months. that is a huge headwind for an asset class like gold that produces no income. if you believe that real yields are going to continue to rise, you may want precious metals in the portfolio, but it is probably an environment where the allocation should be lower. erik: thanks for joining us this morning. blackrock's chief investment strategist. stephanie: still to come a critical look at that book that everyone here in new york city is talking about. the lives of some of wall street's biggest hitters but our own megan mcardle is a scathing review.

stephanie: you are looking at

sunny new york city and in our next segment, we will talk all about this town. it is a book that has been making waves among more than just new york's wealthy. "primates of park avenue" a memoir authored by wednesday martin. it might viral after it brought to light incidence among manhattan's elite, like retards spins paying their stay home -- like a rich husband spaying their stay home wives bonuses. but many found falsies -- fal sies? -- fallacies in the story portrayals. bloomberg's own megan mcardle was no different. she writes, "martin says she telescopes certain events to protect the privacy of certain families. does this matter? yes, for a few reasons. the first is the stubborn journalist at the that the minor

details have to be right, too not just the big picture." megan joins us from washington, d.c., with market people love to hate on the rich especially the thin, wealthy, beautiful park avenue overachievers. is this book a whole lot of lies? megan: weis might be a little bit strong. it is not unknown for memoirs to compress things, change names, move things, just for narrative clarity. but i do think that what she did is a little bit beyond that because it seems that what she has done is not just -- some of the inconsistencies are, like, she puts a bag of macro runs -- macarons at a party that did not get from a store that did not open until years afterwards. you are tried to add a colorful detail. but some of them seem to move expenses from the upper west side, which is where i hail from, very different from the

upper east, over to the upper east to make a better story. and i do think that that matters. it is also a symptom of a broader thing, which is that when i read the book -- i grew up in new york, my mother was a real estate broker in new york and never can i read something about a bit of role-playing you about, such as selling apartments of fancy upper east side buildings, she exaggerated to the point where it did not at all resemble what my mother, for example, remembers from her times selling accounts -- stephanie: but hold on a second. you grew up in new york city. when was your mother a real estate agent? she is writing that it happened in the past two years. there could be changes. megan: she moved to the east side in 2004 and left in 2007. my mother stopped selling

real estate in 2008. so this is during this time. erik: he was the question i have -- people are jumping on wednesday martin, and perhaps for good reasons. if there are these inconsistencies, she put herself out there and she should get what is coming to her. but my question is about the publisher. where were the fact checkers? could somebody not have checked a few of these things consummately at simon & schuster, for example? megan: so, for example, publishers don't do fact checkers -- erik: not in the more. megan: i don't think they ever did. it is expensive to fact check books. magazines do it. but it is a very intensive process. when i would do an article for "the atlantic," it would take me to go through the queries. -- take a week to go through the queries. erik: she had an editor, presumably?

megan: ultimately the industry works on trust. it would be very expensive, it would cost tens of thousands of dollars to fact check the book. stephanie: even if the book is wildly exaggerated does wednesday martin and simon & schuster win either way because a week ago i did not know who she was and we are all talking about it. megan: that is the kind of downside of these things. jonah lehrer got his book told there are those who get their books pulled for inaccuracies, but the inaccuracies have to be pretty glaring and central to the point of the book. stephanie: they can still make a screenplay whether or not it is the truth. megan: indeed they could -- erik: make a better screenplay without being entirely 100% nationally megan: -- megan: fiction is better than real life come usually good stephanie:. stephanie: megan, thank you for joining us this month. our own megan mcardle talking

about this book that everybody's talking about. erik: we will introduce you to a new coed sport were many of the biggest us stephanie: i'm a girl and i cannot do that. ♪

erik: coming up today on bloomberg television, former president bill clinton sits down with betty liu. live from denver at 2:00 p.m. eastern. betty liu with bill clinton. stephanie: here-- gear up kids. workout as a spectator sport? it is called grid. weightlifting, gymnastics, and track. i'm 0-3 on that list. the ceo is with us now. i'm watching some hard-core badass people climbing ropes

and doing handstands. what do we call this dea dlifting? seems like crossfit nation but maybe i'm wrong. >> crossfit meets hockey. it is 11 races over two hours. the rules are set so they are slightly biased towards the women so we want the coaches to really activate in the most successful teams in the league the men cancel each other out and the ones that really put the work into finding female talent -- stephanie: draft well -- how do you pull this together? we have never heard of it, and you have entire teams and coaches and arenas. >> we are crossfiters and the head of the sport pioneered a lot of the shots of the crossfit games for years and yet been thinking about this for years, and the issue with crossfit is it is kind of like the search for the individual citizen woman

in the world but it is not really a team sport and it takes days to run an event. almost like cricket in a way. hundreds of people out there, in comprehensive will rules, really hard to follow on tv. -- in comprehensive will rules, really hard to follow on tv. erik: are you competing with pressfit games? --crossfit games? jim: no threat we have 33 or going to the games this year. stephanie: how did you get involved? jim: i have always been a crossfiter and i would test olympic athletes and crossfit athletes going to the games. erik: why do you describe yourself and your colleagues as excrossfit-ters? jim: i think we coexist with crossfit. we are a different sport and we draw a lot of athletes -- erik: but the training regimen -- jim: we are all competitive crossfit athletes, quite a few

of us, or they run their own gyms -- stephanie: ok, help me out here. that right there, that is not asking for some shoulder separation injury? it hurts me to look at it. jim: first of all, you need warm up -- stephanie: can i tell you something? i could warm up for the next 17 years and that is not going to happen to me. jim: i guarantee you with an -- within six months they would have you doing apollo. -- a polo. stephanie: are they your number one, edition? -- competition? jim: it is to find the fittest people on earth. erik: are there ways of training for the sport that don't involve crossfit? jim: sure, we have a number of ex-olympians. one of the greatest in history from the seoul olympics -- erik: he is lifting weights and

doing this? jim: yesterday well on gymnastics. erik: really? stephanie: do these athletes have day jobs that are not in the fitness world? if you look at what they are doing -- jim: it is a great question. the thing to imagine is that these are the top trainers and a lot of these people own their own gyms. they take two months off and the rest of the year they run the ir gyms -- stephanie: do they get a lot of money if they win? to take two months after job -- when i watch my favorite show, " american ninja warrior," these people are living in their mom's basement to train. jim: the matches are not that onerous of the schedule. erik: is it a labor of love or do they make money? jim: no they make some money. they're not living large at this point. the camera is on the athletes 39 minutes of every hour. stephanie: the goal is to get

sponsored? jim: figure sponsorship deals further gyms in their practices. erik: this is pro do you envision? like an amateur? jim: what is happened since way back in prehistory, november of last year, we have had nine different amateur leagues for an they started competing. the difference between then and us as they are like ftc football versus the nfl. 14 players got drafted to pro teams. stephanie: when do you hope to be profitable? jim: end of 2016. stephanie: wow if a vegan. yogi crossfit competitor in your link existed from one of the talking about? jim: wow, what accommodation. stephanie: erik can do that.

you can jump on one of those boxes. jim: welcome i think what they talk about is how you do everything faster. it is a hidden dimension of the sport, not just the physicality. it is how you relate with the rest of your teammates and how smart you are. literally races come down to seconds. stephanie: showstoppers. jim kean, we've got to go to commercial because i think i am going to be recruited. that is it for "market makers." i will see you tomorrow, this guy is sticking around.

>> good morning, it is 3:00 p.m. in london, 11:00 p.m. in tokyo. president obama is considering

sending more u.s. troops back to iraq. announcement coming as early as today. erik: inside chevron -- my exclusive interview with the ceo , and a private tour of chevron 's beleaguered offshore drilling rig. olivia: and the return of the hamburglar? why mcdonald's is bringing back its old mascots. here is a hint -- it has to do with millenial man. olivia: good morning. i am olivia sterns. erik: i'm erik schatzker. i have to say, behold h -- the whole hamburglar thing is really does. this is ridiculous. -- is really does. olivia: it is a progressive hamburger company