to keep greece in the euro area. we will have the latest on the debt talks as the deadline rapidly approaches. pimm: president obama may send hundreds of u.s. troops back to iraq to train their military forces in the face of recent gains by islamic state. alix: were you a kid when playing pac-man was all the raise -- was all the rage? x, my generation, generation is called the gloomiest generation. good afternoon. i'm pimm fox. alix: i'm alix steel. we want to look at the markets at this moment. we are looking at a triple digit rally in the dow, significant. it is all about the potential of german chancellor angela merkel being satisfied with

greece committing to at least one economic reform. we don't know what it is, but one economic reform. we saw a rally underway in the oil market, when the inventory numbers hit. we have been grinding lower ever since. we saw a 6.8 million barrel drop, but we saw a buildup in product stock. also is a reflection of the weakness of the u.s. dollar. that's take a check of the bond markets and see fixed income. more selling in the bond market. the yield on the 30 year r, 3.2%. yen gains against the u.s. dollar following the comments from corona, the head of the bank of japan, and the

pound-sterling -- from kuroda. germany may have found a way to break the deadlock over greece. bloomberg news reports that chancellor angela merkel's government may be satisfied if greece comes up with at least one economic reform. that would be enough to open the door to at least some bailout money. but germany still wants greece to ultimately come up with a full package of economic reforms. a republican congressman says his party leaders will head -- will hold a showdown vote on trade this friday. the measure would give president obama fast-track authority to negotiate a trade deal. here's house speaker john boehner earlier today. boehner: republicans are continuing to work, and we are seeing some positive momentum in the right direction. getting democrats on board is the big problem. they made the a last-minute hangup on how to pay workers who

lose their jobs because of the free trade pact. the next target for federal prosecutors, trading in the treasury markets. bloomberg news reports the justice department will look into whether financial touche and's are sharing information -- financial institutions are sharing information improperly. the engineer of the amtrak train involved in that fatal crash last month outside philadelphia was not using his phone just before the derailment. federal investigators who analyzed phone records announced their findings today, but they still do not know why the train was going more than twice the speed limit when it left the tracks in philadelphia. eight people died and 200 people were hurt in the crash. alix: step aside, russia. the u.s. wears the crown as the world's biggest oil and natural gas producer. u.s. oil production rose to a record last year, gaining 1.6 million barrels a day.

the u.s. again supplanting russia in the world's top spot. the emergence of u.s. energy has enabled the world's largest and hasto reduce import caused a slump in global energy prices. the shares of johnson controls are rising today. the industrial parts company is considering a breakup. johnson controls says it is thinking about spinning off its automobile parts unit, allowing them to focus on other condition -- other divisions, such as its congressional -- such as its commercial air-conditioning business. alix: tesla will start making suv.eries of its model ceo elon musk says more than half of the orders of the model x come from women. that contrasts with the model x sedan, which has a mostly male customer base.

major league baseball has its first no-hitter of the 2015 season. thrown by chris heston of the san francisco giants. he and the visiting giants eat the new york mets 5-0. he struck out 11 batters and had no walks. beat the new york mets 5-0. he struck out 11 batters and had no walks. in the next half hour, we will talk about three seismic shifts shaking up the world of energy. pimm: then, gone are the simple ledgers of a game of pac-man for generation ask. -- the simple pleasures of a game of pac-man for generation x. hikesand if the fed interest rates, will investors flee the bond market? we will tell you what a new report from citigroup says. pimm: bowing to calls for transparency, brazil has released details of its banks

lending. alix: there are political ramifications here as well as some of the industrialists are major political donors, and president dilma rousseff proposes more transparency at the bank. with us to discuss the revelations is bloomberg reporter robert franco. robert, is this surprising? yeah, the big companies are going to be run by billionaires or you can say the same thing here in the u.s., and the banks were bailed out. robert: these arguments happen in every country in the world. it is exceptional in brazil, where you have extra disparity between wealth and poverty. that argument is taking place publicly, and many of its

wealthiest people are being brought in. paolo, can you explain what the political ramifications are for dilma rousseff? : the president has offered a program that favored more intervention in the economy, and the b nds was chosen for a vehicle for that. a bank supported by the treasury of result, and it went on this binge, maybe excessive, so there is no allegation so far of wrongdoing. but there were questions about the transparency of the operations, so responding to pressures from society, from s, led by a former professor and honorable person,

and started to open up and reveal its accounts, as it should. alix: paolo, what does it do for dilma rousseff and how she runs the country echo she is dealing with higher inflation, low a scandal that flings mud all over the place. can she get anything done now? paolo: she can, but she will have to give more space to private -- to the private sector, to private creditors. ds, of the criticisms of bn it was crawling out other sources of finance for investment in the brazilian economy. to the united states later this month. we will be here to try to convince investors to go back to brazil and to do that, she will have obviously to present a picture where you have more space for private investors to

bnds is already cutting back. robert lafranco, tell us who are these billionaires and what kinds of companies do they control? robert: there are more than two dozen billionaires who have received these loans. some of them are at market is,l, but the controversy the loans that are below market level. it is across the board as brazil's economy, though wealthiest people in brazil to control those companies. alix: what does it wind up doing for the company when they clearly need the subsidies in order to survive?

robert: i do not know if it is a question of survival. this is a spat happening between and the supreme court. these companies are big companies and they have access to other forms of finance. they just have to pay a little bit more. the argument for these below-market loans is they help create jobs. it is the trickle-down theory. it will play out in some form or another, or if it is a greater election -- a greater revelation of the books. alix: we really appreciate it. lafranco. pimm: it is a time of massive change in the energy industry. alix: we will tell you about three shifts that will impact the industry for years. ♪

pimm: welcome back to the "bloomberg market day." check thes just markets with julie hyman. triple digit on the dow? julie: it is about the best in a little over a month. definitely notable. we have a couple of things going on. we have the greece-germany headlines a little while ago, perhaps signaling process on negotiations in the greek bailout. , alls are snapping back the major indices up by at least 1%. , netflixotable movers

shares trading at a record after shareholders approved a stock split. we do not have exact details, we only know it was approved. but the shares are up by 5%. target to $722ce on the stock. marriott is saying it will roll tv's inlix service on some of their hotels if you already have an account or it take a look at johnson controls. largestime it was the auto parts company in the u.s., but now it is boring -- it is exploring some sort of option for its auto business. this still makes a little over half of its overall revenue. deutsche bank says a spinoff is more likely than the sale of this business. those shares are up by 5%. we also seeing a rally in the banks. we have really seen a tear for the banks. , goldman sachs trading

of the highest since the end of 2007. the post financial crisis period as well. aboute been talking a lot tech higher, financials higher. it is really a broad-based rally. this is another way of measuring that. this is the advance decline line for the nyse. it does not include nasdaq, obviously, but you are seeing it is the highest we have seen thus far this year. this is a ratio of the stocks, and it is the highest we have seen all year, so another measure of the incredible read -- the incredible breadth of the rally we're seeing today. not just magnitude. alix: i love that chart. thank you for bringing it to us. pimm: let's look at top stories across the bloomberg terminal. a new deal is pushing spotify's

valuation above $8 billion. that is double what the music streaming service was worth when it raised money in late 2013. a swedish phone company is paying $115 million for a 1.4% stake. spotify has more than 60 million users. apple just unveiled its new music streaming service and it is already under investigation. the attorneys general in new york and connecticut want to know if music labels conspired or were pressured into favoring apple. apple is trying to catch up in the streaming music business against rivals such as spotify and pandora. as julie hyman mentioned, marriott international will offer guests access to netflix on televisions in its guest rooms. select hotels will let guests use netlist by signing into their existing accounts. guests can also sign up for new subscriptions. netflix is available at six

marriott properties, with six more launching this summer. shares of netflix are surging the most since april, this after a ubs analyst raise the price target on the stock to $722, up from 600 yesterday. yesterday there was a move to pave the way for a stock split. those are top stories of the hour. bp has released it annual statistical review of world energy, and it shows three shifts that are shaking up the energy business. alix: the first one is with u.s. oil production. this blew my mind. what it talks about is that the u.s. is a bigger reducer than saudi arabia. it you ever think that would be real? that that would ever happen? pimm: with the introduction of fracking, new technology, and exploration in the united states, i guess that will happen and continue for quite a while. what you do is

produce natural gas as a byproduct. the other startling fact about u.s. production is they have had -- we have had consistent, over $1 million barrels -- let me say that again -- one million barrel .er day production growth and we should add in that the united states has the infrastructure to take advantage of all of the oil and natural gas. it is no good having it if you cannot get it to the market. alix: we are not able -- we are not the only one that has shale, we just need to access it. the shift there -- it is still important to the global world of demand, but the growth rate for energy consumption is falling, coming in at 2.6%, the

smallest increase since the asian crisis in 1998. pimm: that is one, that is two. you have china. never three. alix: renewables are a big deal, and people are using them. if you include nuclear, andossil fuels, oil, gas coal combined. att will continue as we look pricing come down. solar panels were huge, an incredible shift in the energy world. again, the solar energy that is turned into electricity is able to be fed into the grid whether it is from commercial solar farms or solar panels that are on the roofs of people's houses. aix: of course, nuclear was power. people using it, and it is impacting the energy community. a really cool report.

i loved it. it is great to wake up to. pimm: we get a signed copy. that.love still ahead, the clinton global initiative is back, but where are and where is hillary clinton? betty liu is getting ready to sit down with the manage charge, former president bill clinton.

alix: this is the "bloomberg market day." i am alix steel, with pimm fox. pimm: the hottest deal if you are in denver this week is the hunting global initiative america -- the clinton global initiative america conference. the roster for this year's gathering looks a little bit different. betty liu is there and joins us now. you have made lots of trips to cgi events over the years. what is different? betty: there is definitely quite a bit that is different this year, alix. i have been to cgi in new york, their annual event in september. it has been a way for world

leaders and ceos and politicians and heads of ngo's together together. -- toa unique event that gather together. it is a unique event that only the clintons could organize. what is missing are prominent republican voices here. right now the organizers of cgi have been very careful to say that this -- that the clinton global initiative has nothing to do with the political side of the clintons. even so, it is difficult for republicans to come here and speak on a platform that is so obviously closely related to the clintons. guys has also been -- you know about the funding controversy we have heard of over the last several months. that has cast a shadow over this conference, and in fact we have heard in recent days that various sponsors who are closely tied with cgi for a number of years, including exxon mobil --

they have decided this year not to sponsor cgi. the clinton global initiative has said that it is not related at all to what we have heard about with the donations, but it is interesting to see that some of these companies are rethinking their sponsorship of cgi, guys. pimm: what are some of the big ideas coming out of the clinton global initiative america in denver this year? betty: there are a lot of big ideas. cgi has tackled everything from childhood obesity to education and small business in the united states, the elephant poaching in africa. i am going to be right behind me, hosting a panel, speaking about diversity in technology. we will have the first chief technology officer in the white house with us. jake schwartz will also join me, the ceo of an online education company called general assembly.

we are going to tussle on that big idea of diversity in technology. following on that will be president bill clinton himself, joining me on stage for a half-hour long conversation. alix: looking forward to that. are you nervous, betty? betty: not nervous, i'm ready, guys. ready. come on. alix: i would totally be nervous. do not forget that he's interview -- do not forget betty 's interview with bill clinton, live at 2:00 p.m. eastern. pimm: i am not going to say goodbye just yet. are talking about generation x. do not miss it. ♪

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 alix: welcome back to the "bloomberg market day." i'm alix steel. now to top stories crossing the

bloomberg terminal. there is hope that germany may be able to break the deadlock over greece. 'sancellor angela merkel government may be satisfied if greece comes up with at least one economic reform, opening the door to at least some bailout funds. germany still wants greece to ultimately come up with a full package of reforms. president obama is sending 450 u.s. troops to train iraqi forces at and bar province. they will not be in a combat role. the u.s. is sending more military commit to iraq. john boehner says he supports the plan but has questions. boehner: it is a step in the right direction, but as the president admitted, he has no strategy to win. this is another tactical move. alix: there are already 3000 u.s. troops in iraq, and most u.s.-led airstrikes have not stop islamic state from capturing large chunks of iraqi

territory. hasny isakson has said he parkinson's disease, but the disease will not have him -- will not keep him from running for reelection next year. he is taking two medicines for his condition. fifa is suspending the bidding profit -- the big big -- the bidding process for the 2026 world cup. organization's secretary-general says it would be nonsense to start the process now. potential bidders include the u.s., mexico, canada, and several european nations. that is a look at top stories at this hour. coming up in the next half hour, what will happen to the bond market if the fed decides to hide -- to hike interest rates for the first time since 2006? what a new report from citigroup says. then, what is really driving profits at u.s. automakers?

we will tell you what an analyst says about one of the industry's most closely guarded secrets. and what do workers really think about their bosses? we will find out what a new survey says about the most loved ceo's. xers.y bites for gen that is me. americans born in the middle 1960's to the early 1980's are facing more financial headwinds than the generations before and after them. family pressures are on the rise. nearly half of gen xers are raising children. housing a pattern -- a parent or an in law. many have more debt than savings. that is some serious stress. but is it all set faces for the forgotten middle child generation back at i have some experts to help us out. gary redman is the founder of tcr consulting, which helps businesses market to young adults. he joins us from san francisco. and i want to bring back in pimm fox, our esteemed baby boomer.

do you feel like you are better off than me in terms of stuff you had to do with versus what i had to do with? pimm: i think it is all very subjective. the concerns people have now in many ways are identical to the concerns they have always had, whether it is social pressure, financial pressure, or interest in society and the issues people are focused on, whether it be the environment or politics. there are always these things that bother you. you have more of them now and more of a rush to compensate for not having everything. it is odd that there is such a discrepancy between baby boomers and generation xers or even the millennial generation because you go back 40, 50 years, there was not much stuff to have. you did not really know you didn't have it. you sit,y, from where is there a depression among the gen xers? are we alms? -- are we bums?

gary: we have a lot of things that are different from other generations. the difference between us and millennials is that millennials are much more optimistic. they are accustomed to things being handed to them. they have grown up in a time when even in eighth place you still get an award. even though things are tough and they are stressed about the economy and paying back student loans, they feel like in the future they are much better off. generation x -- we are still suffering. alix: part of the survey said 23% of gen xers received no 2%se, and 26%, just a 1% to bump in the last 12 months. something that stands out among millennials is they are more entitled. is that a good thing? gary: a lot of millennial's are still not in the job market, but those who are, they have

expectations that think they are going to work out for them. even if they are not making what they want to make right now, they feel like in the future they will get that job that they want. alix: i think i am a relatively positive person. that was hit, a lot of stock market health was wiped out. we have more time as baby boomers to make up that money, versus an of -- versus a baby boomer approaching 60. the 1982 recession was actually worse than the recession that occurred in 2007 through 2009. it was worse. it also depends on when you enter the job market. if you missed those first few years, it becomes a catch-up game that is very difficult to win. so it may have less to do with when you are born than the current age at which you are currently employed. concerns that you have at the age of 25 will be different than

the concerns you have at the age of 35, 45, and so on it if you ask yourself things that used to be considered luxuries that are not necessarily necessities, the question becomes, do you have more than one television, mobile phone, electronic devices. all these things that you never spent money on before -- now, if you do not spend money on them, you are made to feel like a failure. alix: gary, you have to sell products to different generations. how is it to define a generation? there was an article talking about the george catalano generation, which would be me. remember that guy, "my so-called life"? how do you define a generation? difference a big between the gen xers and the millennials. millennials think everything has to be easy.

will not really do the work for you, so they have different expectations about how things will be sold and marketed to them. if you do not make it easy, they will tune out. even telling advertising partners with a website, when there is something, something after the, you have lost them. thingsre too many other they will have to be distracted by. alix: is that because they are lazy or they grew up in a world where they have an iphone? gary: they are definitely not lazy, but they think in a certain way. we all have to catch up to where they are. and's or instant you get things in -- things are instant, and you get things with the press of a touch of button. alix: how did that different -- how is that different from how you would market me as a gen xers or pimm fox as a baby

boomer? time whereremember a you got ads for free because there were -- it is an entirely different perspective. we have grown up in a place where we remember the way it used to be and we are more willing to be patient for things to come. alix: that brings up the difference of technology, right? pimm: and also the facility of the technology. if you have young children and watch them with technology, you understand that this is almost an intuitive skill that older generations such as myself, you are more worried about making a mistake then you are in figuring out how to use it. as a result, you have a different affinity for what role to place in your life. if you have a young child, you know the battle is, how do you get them to spend real-time with thrilling human beings, as opposed to spending time in front of the screen?

which has more spending power right now from where you sit? gary: again, a lot of the millennials are still coming of age and getting money from their parents, who are often generation xers. they are used to getting everything they want. in the old days, you had to have your nikes and your reeboks. now it has to be the technology. that stuff is expensive. you look around, and you see everyone has a smart phone and in the latestads game systems. they seem to be getting the money when they need it. alix: guys, thanks so much. webman -- jerry redman and our own baby boomer, pimm fox. still ahead on "bloomberg market day," what could happen to the bond market if the fed decides to hike interest rates for the first time since 2006?

♪

alix: welcome back to bloomberg market day. now it we look at the european markets. we want to take a quick look at it with mark barton from london. mark: after the longest losing stretch since december, european stocks finished the wednesday session high, the big news coming 20 minutes before the european closed angela merkel's government may be satisfied with greece committing to one economic reform opening the door

to bailout funds. according to people familiar with germany's position. she arrived at a summit in brussels. she said where there is a will, there is a way. the goal is to keep greece in the euro area. the athens stock market was closed before the news crossed the bloomberg terminal, so it did not affect the stock market there. look at the moves along the subsectors. every single one of them rising today, all 19 -- oil driven rise iny a two-day, 5% the price of brent crude. maker, a big ship decline of 21%, bigger than since 2008. it lost a contract to supply parts to apple's iphones and watch. biggest rise today is a british bank, first they on the

job for bill winters as chief executives. waste.egend to eliminate other greek lenders are declining after bnp paribas cut its aggregate estimate. it did not benefit from the latest news on greece. in thehina surged shanghai trading debut. the listing comes as china hopes to boost nuclear power generation and cut pollution. cnn pc has become the first nuclear operator in china. the company has a distinct advantage in the bond market as the country expands its nuclear power. aims to more than double its capacity by 2020, and analysts say it will require $16 billion of investment every

year. now need tor firms raise capital fast. cnn pc says it plans to use its ipo funds of $2 billion on four nuclear project. to get towe want julie hyman for some of the big stories of the market today. triple digit right around the height of the session for the dow. julie: it goes back to what mark martin was talking about, about germany being open to some sort of deal with greece. it is a broad-based advance as well. the s&p breaking a three-date losing streak with the dow at a four-day losing streak. they are trading higher than they have in a month. we have been talking about the tight trading range frequently for stocks this year, and this rally today is a good one, but it does not change the fact that

we are in the tightest trading range in at least 20 years. my colleague pointed this out, coming out with this graphic. this maps the range in the s&p 500 each year, going back 20 years or so. the high that is from the top of the market that year, the top of the s&p, to the bottom, was 48% in 2008. this year it is 645% -- it is 6.5%. in 2008 there was a range of 61% of those stocks. this year it is 17.5%. another way to measure the lackluster activity in stocks this year to look -- has been to look at the volume in the s&p 500. it has in pretty steady all year long. that is the volume specifically in the s&p 500. looking over the five-year period, over the five-year period, it is clear we have seen a steady decline in volume.

in other words, this year investors have not had much to be excited about. that is causing a compressed trading range as well as a drop in volume. to take a tour of some of the other asset classes, where we have seen more volatility and more drama -- 2.47% is the highest we have seen since last fall. we have seen a selloff in bonds in the u.s. as well as in europe . there has been a big movement in the yen versus the dollar today, under -- after the central bank the yen wentsays as low as it was going to go. he backtracked a bit. oil, which isn of trading at its highest this year . it has since come down a little bit. $60.90 per barrel after the industry report earlier that show the big drawdown. grew.but product stocks

that is part of the issue. now to some top stories crossing the bloomberg terminal. officials in upstate new york are in their fifth day of searching for two is skipped killers. officers are going house to house in a town. that is where david sweat and richard used and -- and david -- and richard matt use power tools to cut out of their cells. korea, where the death toll has climbed to nine from an outbreak of middle east respiratory syndrome. more than 100 cases of an ers have been confirmed so far. the outbreak is the biggest outside the middle east, and it has prompted south korea's president to cancel her upcoming meaning with president obama in washington that her upcoming meeting with president obama -- with president obama in washington, her upcoming

meeting. citigroup says we may be ignoring the biggest factor that could fuel a liquidity crisis. bloomberg reporter in a villa ahmed has been looking into that story. also joining us is mark crumpton. the is the elephant in room? what is citigroup more concerned about? >> that all of our money is in the same three places. we've seen $3.7 trillion of growth in the u.s. corporate bond market over the last decade. yet that money has gone to three different types of investors firmly. so you are seeing insurance companies and foreign investors, they are -- their holdings have grown exponentially, where 20 others have not grown at all. mark: when the fed finally raises interest rates, what is the fallout? nabila: we know that dealer inventories are a quarter of what they used to be, but they will not be there in a big way

to cushion the fall. so the big question is, who is? alix: our investors were hitting more into cash. raising their cash distribution to 11%, you can presume that might be money waiting on the sidelines to buy. are we see more of that happen? we are seeing some of that. in october last year, some of areinsurance companies stepping into buy some of these assets because they can hold and they do not have to mark to market. the: you mentioned inventories of corporate bonds falling the most. does this mean they -- that it is cyclical and bound to happen given the deep drop? nabila: they cannot hold the kind of money that they are used to because it is a different set of risks. alix: the article was amazing.

here is something a little different in the next hour. what do you have? mark: a lot of stuff. one of those we will be keeping ,atch on, is on betty liu the interview with former president clinton. but something is going on with egg production in this country, where now we're looking to europe to buy eggs. the one thing we have to find out is, what will this mean for the consumer? our price is going to be higher because we have to look overseas for eggs? it seems like one of those things that is kind of a cheeky story, but it is not the cap -- it is not because it has wider economic implications. you love eggs. it has cookies and bread with us. thank you. mark, i will see you in a few minutes.

coming up on the bloomberg market day, driving up profits. how automakers like ford are turning trucks into big money, next.

alix: welcome back to the bloomberg market day. trucks are high marking vehicles. just how high? outside the company boardroom, nobody really knows. carmakers keep this information intensely guarded because it would cripple sales if made public. matt miller reports. matt: take a look at fort's f series. ford's f series, the best selling truck in america for over 35 years. north american production sayssts at lmc automotive

it has always been their bread and butter and will continue to be. this truck is ford. analysts routinely use the nicely rounded figure of $10,000 when plugging profit numbers for the f-150 into their models. operating margins can extend north of 15%. that number varies depending on the model. the f-150 starts at $26,000 with a basic two-door, two wheel drive excel, but runs quickly passed $28,000. of course, stiffer competition or overproduction can weigh on margins because it forces the manufacturer to offer incentives profits.into a change in production can also affect margins. with the recent switch to aluminum bodies, ford production dropped by 40% in the first quarter, and overall north american margins dropped from what would have been over 10% to just 6.7%.

key financed at chief financial officer bob shank says thank god for the f-150, saying once the truck reaches full production in july, it will drive a breakthrough year for profits. thef series makes up 90% of company's automotive product. in some years it is more than 100% the does everything else loses money. in the months that led up to the great recession when oversupplied led to the bankruptcy of general motors and chrysler, all three detroit carmakers offered such big incentives, they lost money on all of their cars. it was only the trucks that kept ford afloat. ♪ olivia: 10:00 and san francisco.

1:00 in new york and one of rock a.m. in hong kong. is the bloomberg

market day. german chancellor angela merkel says her goal is to greece in the euro area. the latest on the desktop with the deadline rapidly approaching. --debt talks with the deadline rapidly approaching. olivia: president obama going to send more troops. mark: we will tell you what is shortage that is forcing the united states to buy eggs from europe for the first time in more than a decade. alix: good afternoon. i am alix steel. mark: rm mark crumpton. rallytreet and markets in on optimism that greece will reach a deal to avoid a