of jcpenney says the turnaround should be easy. >> the u.s. is now the biggest energy producer in the world and we keep almost all of it to ourselves. is it time for congress to lift the ban on exporting crude oil. chris sacaout why thinks google would be the perfect suitor. olivia: good morning. let's take a look at top headlines at this hour. one of the world's best-known media moguls is stepping back. will give up his position as chief executive of 21st century fox. the new chief executive will be his son james. there are reports that he will

stay on as chairman. no word on when all this might happen. his older brother would take on coexecutive -- the role as coexecutive chairman. the international monetary fund says the ball is in greece's court. spokesman for the international monetary fund said greece's finances need to add up and right now the pension system is unsustainable. meanwhile, the head of the european union has a warning for greece. he is telling greece to cut a deal with creditors at the next meeting next week. coming whens someone says that the game is over. the upcoming eurogroup meeting is really crucial. it should be decisive.

we have no more time. minister greek prime is in brussels today meeting with european officials. alexis tsipras met through the night with the leaders of germany and france. the american consumer has gotten back in the game after being on the sidelines for much of the year. shoppers were back in force in may. retail sales rose one point 24% and the increase was broad-based. meanwhile, april sales were revised upward. still, they only rose 0.2%. olivia: fiat chrysler ceo sergio marchionne is looking for other candidates. to know if investors are interested in a gm deal. it is noteady said

interested. iegout is being considered as a plan b. assets to other pimco funds to help meet redemptions. investors left the funds after the departure of bill gross. the way has been cleared for chip wilson to sell his stake in lululemon. own nearlyhis wife 44% of the company. wilson and lululemon reached an agreement, part of which involved selling his stock. those are your top stories. up in the next hour of "the bloomberg market day," jcpenney's new chief executive is laying out his new strategy for the company. one of twitter's earliest

investors is sounding off on the company's untapped potential. opec's biggest members are pumping record amounts of crude oil. what that means to crude prices. all that and more on the bloomberg market day. olivia: markets are facing headwinds from abroad with uncertainty over greece and central banks. pimm: joining us now to make sense of all this is michael purvis. michael purvis. why should u.s. investors keep worrying about what happens to an economy that has 11 million people. michael: you are talking about greece. the u.s. markets have not been focused on it. the europeant of markets. if you look at the volatility levels, often they move in

tandem. during the greece talks, european volatility went up quite significantly while the vix was going lower. any issues related to european a cody's were not being transferred into the u.s. equities. very different scenario today. it feels like all of your stocks of been moving sideways with choppy trading and low volatility. large-cap companies are blaming weaker earnings and cheap oil. with these threats priced in. michael: i think they are priced in. it has gone from severe moves against equity and they are kind of consolidating. if you look at the dx why chart dxy chart, everyone is looking at the u.s. dollar or

everyone is looking at the euro. everyone was expecting a rush toward parity and i am not sure that is in the cards right now. midterm,ear two consolidation of the u.s. dollar seems much more likely than a rally up. olivia: what drives stocks higher? michael: if it is neutral, the bulls win. pimm: why? michael: we have risk yields at extraordinarily low levels. i can send you a 10-year government bond for 2.5%. does that make a compelling argument? percent is still way low compared to where it has been in the past. pimm: but you cannot eat gdp. if someone says, take a look at

my stock portfolio, alternatively i will give you a risk-free return of 2.5%, is that compelling? olivia: does it do anything for your equity strategy? michael: look, i think it would define. you brought up rate hikes. tons of discussion and debate over whether he get september or december or next year, but we just got a rate hike thanks to the german bond selloff kind of dragging the u.s. treasury yields up. yesterday it hit one point 05% that is a crazy chart. pimm: that is your favorite chart of the week, i would say. michael: how much it goes above 1% is a big question. as it relates back to u.s. thaturies, don't forget

buffers the spread rise higher in u.s. interest rates. the equityu buy market argument, any industry groups that you think people ought to be investing in right now? of what worked last year plays again this year. if you can find value in a higher valued market -- pimm: those are big ifs. olivia: they cannot find their own topline growth. they can also control their earning stream. it is still in play. is a very different part

of the stock market story. that is probably still in play for those reasons. pimm: what should take on energy and commodities? we have a big sale today. if you backup and talk about oil prices for a second, which underlies so much of the themes -- i call that the zombie oil right now. the oil decline has not been severe enough, long enough to get production out of shale. in a way, if the companies can continue to produce as much as going to keeps oil from ever getting above the trading range that it is in. the longer that happens, the

more it happens in the future. this concept of range bound oil is in play. olivia: everything is range bound. it is five months of august. i'm expecting some acceleration further with this consolidation. pimm: we have to leave it there. michael purvis joining us. thank you. olivia: still ahead, the new ceo jcpenney is laying out his vision for the first time ever. we will take a deep dive into the new strategy. ♪

olivia: welcome back. pimm: i'm pimm fox. let's go over to julie hyman. julie: i want to take a look at some movers we are watching today. we are seeing a lift in stocks. citrix systems -- we have some involvement. elliott management is closing a stake in citrix and saying it should consider selling two of its units. there we have it. krispy kreme shares are doing very well today. comparable sales at the doughnut .hain

the shares are getting a 12% boost. we are looking at a company called box. the first report for it after company's loss who was smaller than anticipated. they have been adding more corporate features to the cloud software to attract cloud clients. finally, one down-mover. chesapeake has been on the down list as of late. it is the worst-performing stock in the s&p 500. the earnings cash flow is being negatively affected by lower oil and gas prices. there was a hedge call that folks should short the stock and people have been doing so.

it now stands at 24% of the shares. it is the third highest in the s&p 500. it is worth pointing out that some people may be making money on the short. pimm: making some money. let's take a look at some of the top stories crossing the terminal. demand for new aircraft keeps soaring. boeing says that airlines will need 38,000 new airplanes within the next two decades. that is a 3.5% increase from last year's forecast. that two out of every five planes will go to asian airlines. big deal inen a north dakota oil fields. hess is selling half of its

bakken pipeline for $2.7 billion. the companies will form a joint venture to run the business. says it has a name for its new chain of smaller stores with lower prices. the co-chief executive says they will be called 365 by whole foods market. some of the proposed names included clever egg, daily shop, or swift goods. they stuck with 365 whole foods. olivia: it is really hard to believe that clever egg made it down to the finals. pimm: you never know what goes on in those meetings. the incoming ceo of jcpenney, marvin allison, is laying down his own turnaround plan. matt townsend is here to talk about this with us.

i want to read a quote from one of the things he said. he wanted to go to jcpenney, i could not find a greater upset opportunity where the financial downturn had been driven by poor strategic decisions. like he is saying that the fundamentals of isenney are fine and that completely not my understanding. i thought department stores were on their deathbed and i thought this target of the american consumer wants 50% off. he is basically saying, the ron johnson era, if you reverse a lot of that, if you fix what went wrong, it is still a strong brand. they claim they have 87 million customers currently. olivia: 25% of america shops. matt: it is no secret that

department stores have been struggling. that is one of the reasons why ron johnson ended up a jcpenney originally. allison has a great track record. u.s.ersaw home depot's stores -- one of the biggest retailers in the country. pimm: where else did he work? matt: target. he has plenty of retail experience. pimm: operations, though. matt: operations. he is not a merchant. that is done below him. what he did at home depot is customer service. one of the things he wants to do is simplify the jobs of the store employees and put the employees in front of the customer more often. olivia: that all sounds like ronrsmart jargon, but johnson crushed it at apple. marvin allison crush it at home depot. it does not mean you going to

kill it at jcpenney. matt: that's true. the stock is not done much for a long time. a little bit since johnson left, but not much. does have a proven track record, but what happens in 2016 is really what is going to make or break the company. there a difference between teaching someone to use the circular saw then what goes best with red? matt: that is definitely true. home depot has bigger stores, it is a warehouse. it might seem like mckenzie talk, but that is one of the things that really turned around that company. olivia: you and i should do a store check. it i don't even know where there is a jcpenney in the city. i would like that if we could go. still to come, one of twitter's

earlier's -- earliest investors sounds off on the untapped potential. ♪

pimm: chris sacca is known for his brash opinions, cowboy shirts, and early investments. olivia: he offered a message to twitter. emily chang joins us from san francisco. pimm: you spoke with sacca about in the real unicorns are silicon valley. what is a unicorn? is a private company that is worth over $1 billion.

there were more and more in silicon valley. guy who does not hold back. there are a lot of naïve and desperate investors who want to get into tech. he gave me one prominent example. carl icahn. what happens to all of these unicorns? how many of these are horses masquerading? naïve investors throwing out term sheets with no diligence. lyft.cahn investing in that is an example. if you really look at this thing, it is not going to be a two horse race. lyft does not survive. lyft isou think gone? company.er is a better

lower pick up times, better maps, higher quality of service. investor. are in uber chris: i am a huge uber investor. i don't think lyft will be able to compete. emily: isn't that like saying there were going to be no other restaurants because of mcdonald's? it is a much deeper conversation and we get into a lot more depth and the bad deals that are being done on "studio 1.0." sacca is pretty outspoken on how twitter can be improved. what did he have to say about the ceo? said he feels that all of the suggestions about how twitter can be fixed have been well received, but there has been questions about what his conversations with dick costolo have been.

chris: i have not heard from him since i posted that. ick all talk to d that frequently. i have talked to a bunch of other people at the company. it was a really well received post that, done right, sets them up for success. points wall street in a direction of, this is how you should be investing in the company. you should not be headhunting the ceo, you should be investing in these things. thatey invest in the stuff i mentioned, no one will be asking the question about whether dick costolo will be the ceo anymore. it certainly remains to be seen if twitter is going to execute on any of the things he laid out. google, facebook of alibaba, microsoft would all love to buy twitter. he is not campaigning for

twitter to be sold. he said, if they don't see progress in six months, maybe they should sell to someone else. pimm: don't miss the full interview tonight at 7:30 p.m. eastern and pacific. forward tom looking that. tune in at 7:00 p.m. to watch erik schatzker's "inside chevron." i am leaving you. pimm: well done. i will see you later today. relaxing the crude oil export fat -- ban. ♪

pimm: welcome back to the "bloomberg market day." let's take a look at top stories. he has been a commanding force and newspapers, televisions, and movies and rupert murdoch now

taping a step back. he is going to give up his title as chief executive of 21st century fox and will hand over the title to his son james. he will remain chairman of the company and will still run its strategy. the imf has told greece, see you later. greecem negotiating with is left brussels after failing to make any progress on a deal. spokesman said the remains are differences in key areas and the ball is now in greece cost court.- greece's astronaut and two others from the international space station have landed safely and cause extend -- kazakhstan. wasmission's extension caused by the failed launch of a russian cargo ship in april.

if you would like to appreciate model,ew top-of-the-line you had better have a pair of good hands. it is capable of responding to hand gestures such as waving to reject an incoming telephone call. it can also be controlled with a finger on a touchpad. the price is about $93,000. those are your top stories at the moment. also at the moment, markets are closing in europe. let's go to mark barton in london. 600 lost stoxx nearly half of its gains after the news between greece and its creditors. the biggest gainer in the world is in athens out of 93 global stock indices. the biggest rise since february.

it is all about the banks. look at the gains for the three big banks and greece. the move came before the comments from the imf, but still , massive gains. these banks had fallen 99% since the height of the financial crisis. i want to show you the impact of the imf comments on the european stock market. as i said, they came in our before the close. toy vowed to step up efforts find a package of reforms and budget fixes. the imf said the roommate are differences between us and greece in most areas. that is exactly when the dax heard the news. today gain its best in three years.

back to you in new york. coming up, the u.s. pentagon is preparing to send troops into iraq. we will find out what it means from a top house and democrat. 84-year-old rupert murdoch will hand over his title to james murdoch. the international monetary fund has key differences from greece. bremmer,peak with ian the founder of the eurasia group. the united states is now the biggest energy producer in the world. we keep most of it for ourselves. laws and regulations severely restrict how much oil the u.s. can export.

francisco blotched joins us now. francisco, great to have you with us. explain your thesis. when and what will cause the change in u.s. regulations to allow crude exports? francisco: we think there is in the tonehange and debate in washington dc. a year ago, no one wanted to touch the topic. today, we are finding a lot of around the topic. i think there is also a lot of people in the administration who have a greater understanding of the crude export ban. there is a debate going on. a year ago, there was not a debate. think about this. there is an issue around foreign

policy. allowing crude exports will tighten relationships between the u.s. and key allies. i think allowing crude exports is also an issue. why not let the u.s. producers export oil of the ayatollah is going to export oil. there is an issue around the republicans being in control of the senate. more importantly, the price of oil has crashed and gasoline is not the big issue it was a few years ago. gasoline is the lowest it has been in decades. athink it is less of political hot potato for most politicians. all of that means there is a greater chance of removing the crude export and over the next 24 months. that it happens in the next 12 months, but i don't think it will happen

before the election. right after the election, the crude export ban could be repealed under a new president. pimm: if it is repealed, whose oil does it displace? remember, unlike older copper or silver, crude oil is not a periodic element. it comes in different shapes and flavors. there is heavy, light, medium oil. america is producing a lot of light oil. like to refiners process heavy and medium oil because u.s. refiners are very complex. they are the most sophisticated in the world. on this light sweet crude oil and we would do much better exporting it to less sophisticated, more simple refineries around the world. pimm: francisco, tell us about

the infrastructure in the united states and how that plays into the potential for lifting this ban. francisco: we will need to build a little bit of infrastructure to make the crude exports story possible. i don't think it is terribly complicated. lng, that is a pretty expensive process. building up crude export terminals is a much simpler thing. you need to reverse a few pipelines. need to change some of the birth thing. i think it is relatively straightforward to convert some terminals and allow them for crude exports. the u.s. is the world's largest exporter of petroleum fuels today. there is already an export infrastructure for liquids in the country. pimm: just quickly, if this ban

is to be lifted, how do you make money? francisco: across the board, it is going to impact refiners negatively. it is going to impact refining margins negatively. it is going to help the energy companies. it will help them make more money. what we are seeing is a tighter differential between wpi prices and brent crude prices. pimm: francisco, thank you very much. the pentagon is preparing to send more u.s. troops to iraq. ♪

pimm: welcome back to the "bloomberg market day." the house is beginning today's of debate on the asian trade agreement. president obama is seeking fast-track authority that will help them negotiate this agreement. republicans are on board, but most democrats are opposed. banks are lining up for a shot at commercial lending businesses the general electric wants to sell. wells fargo, capital one, and toronto dominion are among those institutions that are interested. ge businesses have about $40 billion in loans. ge has been selling off the

assets of its finance unit. are going after people who raise money on crowdfunding sites and don't make good on their promises. man used thethe money to pay his rent and move -- a man who raised $120,000 to build a board game that was never built. the new u.s.says troops in iraq will not play a combat role. how was all that playing on capitol hill? peter cook joins us with more. decisione president's is getting a mixed reaction on capitol hill. you have some democrats worrying that it goes too far and puts too many americans in harms way. you have republicans saying the

president should take a more aggressive approach. i spoke with the top democrat on the armed services committee, adam smith. i think it is the right approach to train partners in the region to fight isis. it cannot be the u.s. military leading this fight. that part of the world does not take kindly to large u.s. military presence coming in and leading the fight. it has to be driven by the local population wanting to defeat isis. do we get,e is, how what has become a very shia-terry and government in baghdad to change its governments of that the sunnis will fight for them. dothat does not work, who the sunnis fight for to oppose

isis and where do they get their support? that is the part of the strategy i'm concerned about. said hepeaker boehner supported this step, but he questioned whether there was a larger comprehensive strategy? >> i think one of the cornerstones of that strategy is rebuilding a true power-sharing arrangement in baghdad, so that all parties feel invested in iraq. is a cornerstone of the strategy and it is hard to see that happening given the way that the government has been run. they don't seem inclined to do better. me ask you about another difficult topic on capitol hill. trade. the house is going to vote on trade promotion authority.

one of the democrats who has his positionunced -- how is adam smith going to vote? >> it is tough. i'm leaving against it. i definitely want to lower the terrace and form partnerships is thistionships -- but trade agreement going to do enough to help working people in the united dates? the concentration of wealth and the downgrading of the buying power of the middle class in think is the number one social justice and economic problem that we face. does this agreement do enough to address that in the right way? peter: what does it say that a congressman from a state that is the most trade dependent in the nation is still leaning against this. >> it says that workers have not benefited enough from the

economic growth. that u.s.see evidence government policies are going to change so that the average worker starts to see benefits from this. leaningongressman smith no is a warning sign for the white house that they may not have the votes needed to pass fast-track tomorrow. we just heard from house speaker john boehner and would not predict the vote total. pimm: who could decide the outcome? peter: the critical player to watch will be nancy pelosi. she was just asked how she is going to vote and she is not disclosing at this point. she said, watch her on the house floor tomorrow. there are a couple of procedural votes that will help -- happen main show.e there are a couple of preliminary fights to get

through first. pimm: i want to thank you very much. many thanks. coming up on, with all due respect," we are having an interview with wisconsin governor scott walker and he is leading in the polls in iowa. that is today at 5:00 p.m. eastern. of the top, change of fox. rupert murdoch picks one of his children to succeed him, the latest in a family succession drama that has been going on for years. ♪

pimm: it is one of our top stories of the day. rupert murdoch is taking a step back. he will hand over the title of top chief executive to his son.

it is the latest in a succession from a that has been going on for years. for more, i am joined by rob lafranco. what can you tell us about james murdoch? rob: the day that i met james murdoch, he was sitting in a bar with a stack of analyst documents on media companies. destined het he was was groomed to take over the company. guy toas his go-to understand digital. rupert was in his 70's at the time. he just had no clue how to segue from what he had into that world. james was his go-between to explain all of that. was quite clear that he had preferential thinking toward james running the empire. old -- james is 42 years old, hemes is 42 years

went to harvard university, he is a cyclist, and a black belt in karate. businesst his experience in the rupert murdoch empire? rob: that is interesting. the one with the most success on their own -- the other children were never really considered part of this and everybody knew that many years ago. is the one who has had the most success independently. her production company is the biggest in the world. it was sold to 20th century fox. james has had a couple of little ventures along the way. he was a music entrepreneur. rob: it never really took off the way elizabeth's ventures took off. james was always a little bit more involved in the global aspect of the business.

when he was put next to chase carey, the well respected operator that rupert chose to run the operation and ally, it became clear that this is where he was going. pimm: what about the future role of chase carey? will be a gradual handing over of the day-to-day operations to james. chase is very well respected. he can probably slowly step back and let james step in. murdoch is kind of a wildcard. james is much more of an acceptable executive. you talk about this merger possibility and james fits into the time warner culture much more than a renegade like rupert does. pimm: thank you very much. it is time for the options insight. here is julie hyman. julie: let's take a look at how stocks are trading. theave seen a rally for

second straight day for the major averages. they continue to gain. we had a retail sales report that showed a little bit of light at the end of the tunnel in terms of consumer spending. retail sales have been disappointing in recent months. joining me as max brier, senior equity derivatives trader at pmo capital. when you are looking at the action and expectations built into markets for what the fed is going to do, do you think there is a clay to be made here? my feeling is that expectations are leading a little bit too heavily toward a september hike. the fed would rather hike too late then too soon, given that inflation is nowhere near their 2% target. if they don't want to hike in , they can say that we

don't have the inflation piece of the puzzle in place to go ahead with a september hike. is there any way of playing that view in the market? scenario looking at a where june options will expire the morning the statement comes out. while we will probably stay somewhat range bound until we hear from the fed more definitively and get some clarity on a potential september hike, one strategy would be to the julyoptions by vix options, where you capture the fomc and the result in the move. julie: you think that we could see volatility drop off even more after the june meeting and then pick up again going out to july? i do.

a sufficiently dovish statement could drive the markets higher. i think that would be a trade right now and we could see the july vix break to the downside. julie: i want to look at another trade you are watching, the xl k , a tech etf. we are seeing correlations come together. stocks are moving together. it makes things harder if you want to pick stocks. because wearly hard are seeing high correlation on low volatility. that is a recipe for a boring market. it would be one thing if it was high correlation in a high volatility market. this is not a great recipe for the market. the low-volume speaks to that. tech has been particularly higher than the s&p. driven by these big announcements.

we have seen valuations expanding, tech stocks moving together. julie: what is your trade to make money off of that? for ah is pretty ripe reset and expectations. i like working at the downside with the xl k. i was looking at the july 24 put spread. it is a cheap way to get some downside exposure. thank you so much. we appreciated. don't go anywhere. much more "bloomberg market day" after the break. ♪

pimm: good day. >> welcome to the bloomberg markets day. rupert murdoch is said to be preparing to step down and hand

the title to his son james. we will look at what it means for the future of his media empire. pimm: the president of the european union accuses alexis tsipras of playing games. we will tell you how pimco survived following the departure of bill gross. ♪ pimm: good afternoon. matt: let's begin with a look at the markets. right now, as we speak, we see gains across the board. s&p up about a quarter percent. aie nasdaq