we've got reaction from dish network ceo charlie ergen on murdoch stepping down. scarlet: and keeping it in the family. will have a view of chevron you won't see anywhere else. ♪ mark: good afternoon from bloomberg world headquarters in new york, this is "bloomberg market day. " i'm mark crumpton. scarlet: and i am scarlet fu. day for the s&p 500, but there are still making questions over the greek debt talk. but there is a big catalyst and

a cousin of these retail sale numbers, we are seeing recoveries in treasuries as well. retail sales only matched expectations is that of exceeding it. fedil sales would push the ever closer to lift off. let's take a look at the dollar yen. for itas a 12 year low yesterday, and you can see the dollar is stronger and the yen weekends much to the chagrin of the bank of japan. mark: and let's take a look at thetop stories crossing bloomberg terminal at the top of the hour. mr. murdock will be giving up hisposition as fox ceo, and successor will be his son, james. no word on when all of this might happen. james's older brother will take on the role of co-executive

chairman. matter of succession is on the agenda at an upcoming board meeting. in just a few minutes, we will get the reaction to murdoch's news. stay with us for that. scarlet: moving on to brussels to where reporters listened a discussion. >> we will keep working in order to come to an agreement. we are working in order to reach the differences and the differences in the fiscal and in the financing issue. toare working in order wille an agreement which assure that greece will recover with specifications and viable public debts. scarlet: i counted three

instances of the word working. he spoke after eu president said that they will decide on the conditions of more bailout funds. mark: the mark -- the american consumer is getting back in the game. shoppers were back in may. the increase was broad-based. eight winners included car dealers, clothing and building materials, and other stores. apple sales were revised upwards. scarlet: another sign of strength in the labor market. unemployment benefits stayed below 300,000 for a 14th straight length. this is due to a pickup in demand. the federal trade commission, the ftc, has settled a case against a man who raised

$122,000 through a kickstarter to produce a board game that never materialized. the ftc said the men canceled the project and said he would refund the money, but instead, he used the cash to pay his rent and move. scarlet: and doctors treating the copilot who crashed a said he wasplane unfit to fly. he had seen seven doctors in the months before the crash including three appointments with a psychiatrist. all 150 people on board were killed in that disaster. mark: boeing says airlines around the world will need 38,000 new planes in the next 20 years. that is a 3.5% increase since last year's forecast. actor christopher lee is dead. he appeared in more than 250 movies and was best known for his role as count dracula early

in his career. he later appeared in "the lord of the rings" trilogy. christopher lee was 93 years old. those are some of your latest stories the sour -- this hour. rupert murdocht: is stepping down and handing over his son, james. here is charlie ergen's reaction. when he knows he wants to do something, he is knowledgeable, he is curious, he does his homework, and he makes a decision quickly. he can get to the board pretty quickly to make a decision. a lot of companies spend a lot of time making research and getting a lot of analysts, but he does not need a lot of them. a strategic thinker. he understands how the whole thing comes together, which is not normal for most ceos. when he did the first nfl deal,

and he paid $600,000 -- $600 million for the rights, he was right, and he made his station more valuable. he got lead in to shows like the simpsons. he he not done the nfl deal, would not have gotten there, certainly not as quickly. i think he is one of the all-time greatest business guys that i have ever met and certainly in the united states. he has done a great job and he is fortunate that james is no sludge. -- no slouch. he has been well-positioned in that company for a long time and he is passionate about the business as well. you have to start with really successful people. they have a passion for what they are doing. scarlet: you can catch more with betty liu's interview with charlie ergen coming up later.

coming up in the next half hour of the "bloomberg market day," cow emco survived a -- how pim survived a wand fall. -- bond fall. mark: and how are hospitals getting away with charging skyhigh hospital bills? we will discuss it when we return. scarlet: all of that and much more coming up on "bloomberg market day." mark: facebook's annual meeting the virtual and arm, oculus, is in the spotlight today. scarlet: you can see their virtual-reality headset right here. it is the first available to the masses and it comes with the next box one controller. we're joined by david kirkpatrick and he writes about

the facebook effect. what is the one thing that facebook wants oculus to achieve? facebook doesn't intend to become a gaming company, in fact, it is not even interested at the facebook level of gaming. ame berg -- facebook has transitional position and it toward becoming the interface for computing and certainly the interface for social computing. it is important for oculus to create a world for games. scarlet: what is the difference between a virtual reality and augmented reality? david: virtual reality is what you put over your eyes and you can't see anything else and you are actually where you are, but augmented reality allows you to see the world around you and impose upon it virtual elements so you can interact with virtual

things that don't interfere with your ability to also be in real space. investors like fertile reality, it is hot for them. why is it taking so long for the payoff? david: it is not taking that long for the payoff. this is a huge transition for the technology industry and the entertainment industry, and we are saying very rapid -- seen very rapid developments. , for example, magic leap, which is oculus's quasi-competitors. they have not even announce what they are doing with it yet. in some sense, investors have to be patient, but when the payoff comes, it is going to be really big. i think facebook will make quite a bit of money in gaming before they start using it for the things that zuckerberg really wants it to be which is an interface for computers. mark: you talk about investors,

and when facebook bought oculus a year ago, they paid $2 billion for it. david: sucker berg is a super long-term anchor, so 21 billion in the end is getting a great deal, but if you spend big, it is because he believes in something for the long term. there is a lot of controversy of who is going to win. there is no guarantee that oculus is going to be the virtual-reality winner. today they announced something that made people very eager. i think it was something that shows they will be a major player, certainly in the gaming space. anrlet: let me ask you obvious question. google classes did not take off because nobody wanted to wear them. why does facebook think someone would want to wear these ugly goggles? sitting atwear them your desk or standing in your living room and that is it. stuff, whichlity

is sort of what google glass was part of, is attended -- is intended to assist you. scarlet: so it is not a mobile device in any way? david: no, it is a totally non-mobile device for the time being. hopefully we'll watch television and have a gaming situation, and you will have things with space shooters and really aggressive dinosaurs and dragons coming up two, etc. separateding its own event today, whitey think that is so important, why is that a milestone -- why is that a milestone and wise that so important -- why is that so important? it has an attachment to certain samsung phones that has a tool that will help you watch 3-d virtual immersion movies, so this is a big product that everybody has been waiting for from oculus that they have been

developing ever since the beginning. mark: they are showing everybody that we can stand on her own? david: i don't think they would be doing a lot of this if they did not have facebook's money behind them. they have tremendous backing of a giant of technology. scarlet: i just want to give your thoughts on facebook expanding to this buy button. this is where the can finally beyonde on people's data advertising. how significant will this be? you can write in your of smallto a number businesses specifically geared for the tests, but the fact is that buying things inside of facebook makes a lot of sense, it makes a lot of sense for us as users, because of the convenience factor, a can keep users inside their "walled garden," so it is a

holistic way of building facebook to include shopping much more thoroughly. potentially to amazon, ebay, alibaba, and other companies who are in this purchasing space online. scarlet: thank you so much, bloomberg editor david kirkpatrick. mark: still ahead on the "bloomberg market day," how pimco dealt with the departure of bill gross. that is coming up, when we return. ♪

mark: welcome back to "bloomberg

market day," i am mark crumpton here with scarlet fu. scarlet: let's go straight to julie hyman with economic data giving us a bit of a lift. yes indeed, retail sales are ahead of estimates if you back out of auto sales. ado want to look at the dated chart of the s&p 500 and look at the trajectory we have been on. remember we got those headlines out that the imf said it was not making progress with those talks with greece and that it was leaving brussels without continuing those talks. withe have a reaction those stocks but not nearly a reaction to the stocks that we have seen in europe. the s&p is now up at third of 1% . some of the movers helping contribute to the games today oil company, the the most active oil driller in the balkans.

it agreed to silly 50% stake of its pipeline unit in that region to global infrastructure partners. it is going to get about $3 billion in cash. aat is from a debt sale in joint venture and they are now going to run this as a joint venture. also getting active citrix systems. thelly, i want to look at cloud storage company box run by aaron levie. -- the revenue forecast raised for the first time this year and it is up considerably more than the beginning of the session, still up by 3%. you know, that cloud business is a very competitive one, so all

of the companies in that space have come under scrutiny to see how well they can compete. scarlet: it seems like every single quarter, you wait for the ceos to talk about what they are going to do in that growing area. julie hyman, senior market correspondent. think back to september when bill gross left pimco. that means that holders would be forced to dump holdings to meet redemptions, and instead, the funds clearance all happened under the same roof. >> when you are doing this kind of cross-selling, you know there is going to be the fcc on your back at one point. so you want to make sure that it is done it in good faith. ifryone was circling pimco you remember, and they were trying to get a feel of their positions and how to capitalize on that. there was this anticipation of a big move and it kind of never happened. it just happened to be selling

and others within pimco just happened to be buying. erik: pimco is the winner here because they were able to do selling and is there a loser? mary: it is interesting because the first thing they to my mind is that this was an exercise in market stability, and everyone expected this huge crash and what it would mean for bonding and liquidity as everyone try to race through the system. we did not see this and everyone said, look at how this is so stable and orderly. sure, it did go very well and pimco's managers did a very good job managing its liquidity demand, that at the same time i still feel a little cheated. doesn't have to be tested. they were working within the confines of market regulations.

that happened to work out in this case and you're right, that is what happened and it turned out fine. that it is kind of an interesting exercise to think about getting a giant fund without the backing of another fund, as in this case of pimco's case, we would have seen something different. scarlet: that was bloomberg's mary childs. this creates all of these dilemmas, but if you have all of these liquid securities and you get rid of them, then you have all of these ill liquid -- ill-liquid stuff. mark: the funds started seeing outflows two years ago, so this is not something that just happened. scarlet: you are right, this is not something that just happened when bill gross left. onk: according to our story bloomberg terminal, this is

something that has been going on for years. like you said, this is not something that has happened ever since bill gross left. as mary pointed out, it is one of those things where the eye might be on bill gross, but some of these things were in the works before he left. scarlet: the total return fund was so massive, it tended to move the market. you could not move in very carefully or very delicately. mark: a good story on the bloomberg terminal and a good story on bloomberg.com. you might want to take a look at that. here is a look at some of the stories crossing the bloomberg terminal at this hour. and marchionne has been working with investor groups for agm deal. gm says it is already not interested. marchionne is seeking citroen as a plan b. amazon.com is facing a probe

into its e-book contract publishers. the online retailers may be squeezing out retailer competitors by saying that they cannot get better terms. this is an investigation into amazon's latest clash with the eu. amazon says it is confident that agreements with publishers are legal. and the way has been cleared for 's owner to leave as chairman. after leaving as chair, he claimed that lululemon lost its way. he sold his stock and that finally enables him to sell his stake if he wants. of those are your top stories at this hour. scarlet: and coming up on manymberg market day," hospitals are charging up to 10 times the amount of medicare

rates in hospitals. that is not the only thing. stay tuned and we will tell you about more, next. ♪

the 50 u.s. hospitals that charts the most for their services, 20 are located in a florida and all but one of them are for profit. that is according to a recent study that says that hospitals don't limit what they charge and at most, many charge up to three times the amount that medicare has for allowable costs. there isoss the nation a push for transparency in hopes to slow down the increase in health care costs. exceptionally high medical bills malia patients to avoid much -- or tore or to avoid declare personal bankruptcy. scarlet, this is interesting because you can't help but see to see the correlation between 20 locations in florida and where a lot of the demographics are. scarlet: what is interesting is

a lot of the hospitals in that survey says that the data in that survey does not reflect what people actually pay. so there is a published list and what people actually pay, that is what they defend. told that allere hospitals market it up, but the for-profits are doing it for a much higher rate than the nonprofits. scarlet: you and i know this from having families and everything, you can always negotiate down the fees at a hospital and doctor's office, but it calls -- but it involves calling someone. absolutely, well, i am out. i will see you tomorrow. scarlet: that's right, and we will be right back. ♪

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 scarlet: welcome back.

for top headlines crossing the bloomberg terminal at this hour. a changing of the garda 21st century fox, bloomberg news is reporting rupert murdoch is preparing to step down as ceo. he will hand over the job to his son james. remain theoch will company's chairman and tried strategy. house speaker john boehner says the trade deal is more than just commerce. he called to counselor the chinese economic influence. two days on legislation and one bill would give president obama's so-called fast-track authority to most democrats are opposed. john boehner says he has tried to compromise. john boehner: we have worked to address the concerns of members on both sides of the isle. sensitive anded procedural changes about house democrats. this is about doing what is right or the country. workers loser just

because of the trade bill. u.s. businesses have increased their stockpiles by the largest amount in almost a year. the commerce department said inventories rose for 10 -- .4% since april, the biggest of 2014.since may the revamped seven series sedan is capable of responding to hand gestures such as waving to pick up -- reject incoming phone call. the price, though $93,000. positively epic baseball tantrum to tell you about, the minnesota twins outfielder going absolutely bonkers after being rejected from a game last night. threw just about everything coming could his batting gloves and elbow pads and even his jersey. lost to the kansas city royals 7-2 p right gets it did not work. those are your top headlines. coming up in the next half hour,

kellogg's sales happen soggy this year but the company is looking to turn its numbers around with an online snack subscription service. john watson spoke about how politics and fracking are affecting his outlook for the year. computer coding, if it is the future, why don't we know more about it? it is our business week cover story. we will have that and more coming up. fiat has not given up all hope but the prospect of a friendly murder -- merger with general motors now seems to be split. matt miller spoke to bloomberg reporters about which other ceomakers the fiat chrysler may be considering. gete is trying to shareholders on every major company shareholder list to see if they would help him pressure mary barra to consider talking

with him about some kind of merger. that will be a tough one to pull off, given he is kind of going down his list of what other carmakers might be willing to do a deal with him. it is not a long list. on that list jumps out and says, yes, they will do this, but that is where he is casting his eyes now. mark: he still has not given up on the idea of trying to lower g.m. to the table. >> he would love someone to take a big stake, but generally speaking, those guys like to move in and move out quickly. bill ackerman's effort he had last year did not work very well. i'm a little skeptical he will get that kind of support from someone. matt: i was going to ask you, in your career covering mergers and acquisitions, have you ever seen

work out well where a smaller company wants to essentially merge or get taken over with shareholders in a bigger board that is not interested. very candid.be this is usually the minnow to convince the will to play with them in a little bit. we moved on to volkswagen and maybe nissan. is a massiveag and company. this question mark how serious a partner with it be? david: they are growing in china p well and they have an alliance, but that is why it is the last ditch for sergio. it does give him or sale, but not the kind of 10 million plus kind of vehicle sales every year that he is looking for. that is why they are kind of further down the list.

full slag and has done merger and acquisition work, plenty of brands, mass-market, all the way up to the luxury stuff like bentley. they can make these deals work. they run volkswagen audi and other brands as sort of a confederation, as opposed to a centrally controlled company. they can make these things work well and are pre-good at integrating. right now, they said they are not interested. the other question for me is, why would i not wait until sergio is in deeper trouble and is worthless to go in and negotiate a better price if that is what i wanted to do? matt: last question here. goodouldn't toyota be a withdate for a partnership sergio. wouldn't it be a match made in heaven? toyota does not just like

going out and acquire. they do partnership well. they had a partnership from gm in the past, but they are not a big inquirer. what they like to do is go into a market and do everything the toyota way and sprout up plans and do it organically. doing business and that culture propagates on its own without having to buy somebody else'stuff and retrofit it. they do not like taking used cars and putting them in the shop and fixing them. other possible merger options for fiat chrysler. one of the biggest oil process in the world, we will bring you a view of chevron you will not see anywhere else. erik schatzker, coming up. ♪

♪ back.t: welcome i am scarlet fu. think of it as netflix for snacks. bloomberg learned kellogg's is looking to launch an online snack subscription service, just as rival general mills has its own year .5 venture. -- year-and-a-half venture. they reported a 44% drop in profit, kellogg's, and are looking for a way to grow.

as -- if kellogg's does move -- i have to bring in alix steel because she is the commodities queen here at bloomberg, but also because you are a little bit excited by this service, unlike other food ventures, which we will get to in a moment. >> what was interesting to me, there are a lot of these kinds of services and you pick and choose what type of food you want. if you're into indie food, i do not know what that is but let's box is i did, nature free of artificial ingredients. if you are into sports, you need to hydrate. you can pick or choose.

general mills tried this and it did not work. be a place a lot of companies want to get into, mother seems to be difficulty getting traction. appeal, i can see the like the way tech companies want software services rather than hardware. >> netflix moved from a service where they send you dvd's. imagine shipping protein bars entering drinks. that will a few pounds. that will be an issue as well. what is also interesting is as kellogg's moves to this snack subscription service, you have pizza hut moving in the other direction. you were appalled by this. this is a pizza with a hot dog crest. how do you pick this thing up? >> i do not think you do. you pick it up and then up at --

end up leading the rest of the pizza. it is sticking to its core. first-quarter sales of pizza hut were pretty much on shale -- unchanged. hoping: they are 14-year-old boys with ravenous appetites will provide it. all right, you will stay here with me p let's check out how commodity prices have checked out in trading. wti declining on a stronger $60.72.it is at will move thellar commodities at some point but also, saying the recent value we have seen is under threat. that is not new. many analysts have been saying that for a while. the ideas opec is still pumping record levels. you are looking at saudi arabia to keep on pumping and really what round -- what route -- what wound up happening is disruption to supplies of products.

once refineries come back from maintenance, with they come back online, it will not be an issue anymore, which means we will not eat all that crude. selling half of its processing unit. is this the m&a we have been waiting for? like yes.t, i was i'm a little skeptical now. what is fascinating is the price. , saying that the whole business could sell for 1.5 billion dollars to $2 billion. this is a midstream infrastructure play. the oil industry, that is selfie place. they have orbits oil in the midwest. this is what it refers to it we are dealing with trucks, railroads, transportation. what is interesting that hess did say, they're looking for acquisitions, and this money

will definitely help free cash flow. it will help them in a way that m&a would, but it is not the juicy we were waiting for. go,let: quickly before you a mention of energy stocks at the s&p 500, they are the worst performers because of the trapping oil prices. of course, that is in reaction to the stronger dollar, among other things. alix steel will be a back and in the meantime, we will not stray too far from commodities. 85 ilion dollar question for chevron shareholders is, will the major led products -- projects in australia payoff? inside chevron's biggest projects in the world in this report. >> 37 miles off the coast of northwest australia, here on a remote island with no time -- no chevron isesidents,

building a natural gas plant. everything here is on a scale that defies description. this stuff is enormous. >> this is the largest project chevron has ever undertaken. >> gorgon is on peril island. is on the mainland on the australian outback. together, they will produce about 4 billion cubic feet per day of natural gas. what is happening and i see what their needs are. they need power, for example. it will come from natural gas. pumpth projects take gas from under sees projects, clean it, freeze it, and load it down for japan and elsewhere in asia. what are we looking at here? >> the inside of a tank. this tank is 92 meters in

diameter, 47 meters tall, and this will be full of liquefied natural gas. we will fill it up every debt -- every couple of days. it is big. very big. we stone is set to start production in 2016. so far, it is on target. gordon is wildly overbudget and a year behind schedule. >> one of the worst in the industry. the harvard business school, you know, projects or a case study or what not to do, that would be gorgon. the whole industry has been stressed over the last few years. the cost of goods and services has more than doubled pair we saw the australian dollar grow rapidly and certainly the cost than we or higher expected. we also have more cyclones that went through. we think the project will be a

very nice contributor to us for a long time to come. scarlet: catch the full special tonight including an exclusive interview with ceo john watson, plus a further look at chevron's billion-dollar megaprojects tonight on inside chevron. yet a commodity because there is no futures market for them, but what makes a diamond valuable? a slick marketing team certainly help, history shows. >> there are two things in the world that lasts longer than time. love is one of them. a diamond is forever. voted the best slogan of the 20th century, for almost 70 years. the head of marketing and market makers this morning to explain the value of diamonds. >> diamonds are something

particularly when it comes to important occasions in life that are much more about the emotion are, toolism than they me, about displays of wealth. for thingsre given like weddings or important anniversaries or the birth of a child, they are symbolic and they come in a wide range of prices. you do not need to spend thousands of dollars to have an important symbol with a diamond. can you get for less than thousands of dollars? >> if you go to, you know, a jeweler like k's in america, you will find they've got a wide range of diamonds even below $1000. it is not that you have to be super wealthy. you just have to believe in love and believe in commitment. that is really what a diamond -- >> if i wanted to buy a fairly large rock, a one carat diamond, according to the wealth of data in the bloomberg terminal right

here, you cost me a little more than $7,000. that is down by some 40% from 2011. how do you stop diamond prices from plummeting like that? inwe do not see that picture the diamond market at all. if you look back over 10 years, you would see pretty strong growth in diamond prices and if you look at the medium qualities of those which most americans are buying on a regular basis, for his like bridal or anniversary, you will find it has been pretty good. >> that was the head of marketing on bloomberg television early this money. let's get you top stories crossing the bloomberg terminal at this hour. thanks are lining up for a shot at ge's commercial lending business. reporting that wells fargo, capital one, are among those interested.

the businesses have about $40 billion in loans. to choose onhas nba players and now the uniforms will have the famous swoosh as well. an eight year deal. the company is replacing adidas. fifa says it will hold an on july 20 ining zurich, when a date would be set for the presidential election to replace sepp blatter. it will take place between december and february. last month, 14 soccer marketing executives were indicted on charges, including racketeering, money laundering, and tax evasion. coming up, dominating our lives but we do not think much about it. why no one should ignore it anymore. coming up. ♪

computers, code, run your life. whether you're banking, or streaming your music. it is so important that it has just been added to the national curriculum. what exactly is it? 30,000 words have been devoted to answering the question. and ford is a programmer wrote the article and explains what it is all about this morning. software is everywhere. it is all around us in this room. if you want to understand how things are powered, how people gain power, or a facebook is a $200 billion company, understanding how code works is one of the ways to get that knowledge.

a ceo does not necessarily need to learn how to sit down and write a program, but they should know how software comes together because they are spending a huge amount of money on it. millions of dollars can go down the hole. learn what code is and what the different languages are and how it all works. olivia: how difficult is it to learn? i made it through about 30 minutes and then gave up. paul: this is what we try to do with the article. you can learn basics about, it is a for loop and it lets me repeat things. the work of software development is very different. that is just -- it is that kind of stuff, how you work together with other people and right code, how you get everyone to work together to build giant applications. that is the stuff you want to learn about and that is what we are trying to get out to people in the issue. olivia: one idea is it is crucial not just to understand

the basics of how it works, but the cultural component of how coders work. paul: it can seem weird but 18 million programmers are around the world and they have their own set of rules for living their lives and getting products done. if you talk to a programmer about the right kind -- it is serious. it is serious stuff. olivia: you write about east coast versus west coast. is that bad boy versus death row? paul: it is more complicated than that. it is hard to beat the native colter of silicon valley. there are third-generation programmers and developers out there crating stuff. -- creating stuff. there is a culture of making giant platforms that end up being worth billions of dollars. we are trying to build that on the east coast collectively but we are not there yet. some companies like this one, bloomberg, are extraordinary but a lot of us are still listening. olivia: the general management out there, how many ceo's is our

-- are really qualified to run the companies? paul: tricky question. i would say it is probably time to and more. .carlet: check out his article that conversation, j.crew, coming up in the next hour. ♪

scarlet: rupert murdoch preparing to step down as the ceo of 21st century fox and hannah title to his son james. we will take a look at what it means for his media empire. : one retailer not doing so well is j.crew. scarlet: one of twitter's early investors sounds off on untapped potential. we hear from chris just ahead. ♪ scarlet: good afternoon. alix: we want to get straight to the markets right now. 54 points per part of this story with retail sales number, came banging line with estimates from they paired we also had an upper revision from april. anyways lise it, it was a