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 positive report. what could have derailed it was

news imf -- imf says we never leave the table. scarlet: a lot of expectation was build into excess retail sales numbers. much better than anticipated. as a result, treasuries are recovering the cousin only mashed economist estimates. we had a selloff yesterday and it pushed the 10 year yield to an eight-month high p we are at 2.3% on the 10 year. you want to look at the end going lower. japanve the bank of is unlikely,ng it then you have standard chartered and bank of tokyo mitsubishi saying do not expect the games of yesterday to last. come off a little bit from that

yesterday. all right. we have got a lot more coming up on the markets in the next hour. in the meantime -- look at stories making headlines. the president of the european union is telling the greased prime minister to just decide whether to accept the conditions on financial aid. this is as the imf negotiators left brussels empty-handed after failing to make progress in a debt deal that would help greece avoid default. the primus to spoke to reporters in belgium after a bilateral meeting when the eu commission president jean-claude juncker. jean-claude: working in order to greece it to remain differences, and especially the differences in the fiscal issue. to assure torking

agree with the recovery. viable public debts. lookst: alexis tsipras alix: skippy. and they left the table. if you believe, then good things will happen. that is kind of what we're seeing. earlier on bloomberg television, the eurasia president talked about greece and the pressure they are dealing with. feels he has pressure but he also has to ensure he does not have so many defections when he finally cut a deal that he no longer has the ability to govern. he does not want a minority government that will be short lasting in the place will fall apart. he is the author of a book, superpower.

fox sayst century shareholder rupert murdoch is stepping down. the 84-year-old would be replaced as the chief executive by his son, james, and his son would he come -- his son laughlin would become executive cochair of the company. rupert murdoch would continue to chairman orxecutive no word yet on when the reorganization would take place. another sign of strength in the labor market. stayed below for a 14th straight week. holding onto workers in anticipation of a pickup of demand. alix: americans started shopping again last month. retail sales rose 1.2% in may, matching at dictations. dealers, winners, auto you are seeing a rise today.

encouraged bybe gas prices that are still lower than they were a year ago. john boehner says the asian trade deal is about more than just commerce. he called the agreement delay for the u.s. to counter economic influence. two days of debate on economic trade paired one bill would give president obama fast-track authority. republicans back to the measure while most democrats are opposed. he says he tried to compromise to her john boehner: we're working to address the concerns of the aisle. we have rejected procedural changes by house democrats turned his vote is about doing what is right for the company -- for the country. scarlet: who pay for retraining workers who lose their jobs because of the trade bill? coming up in the next half hour, republicans candidates are in utah vying for an endorsement from mitt romney. hear what wisconsin governor scott walker had to say. biotech on fire.

some of the highest-paid executives in america. big oil. scarlet: a recent study finds almost half target the energy industry. all of that and much more is coming up on the bloomberg market day. alix: retail sales last month were strong across the board, including a 1.5% jump in sales. one exception slid -- exception was j.crew. that drove the company to cut 175 jobs. i sat down with the retail consultant earlier. he is not exactly worried about the j.crew fallout. business'sart of the sweaters. theywent into a direction make changes and this is

something that will be a long-lasting. aarlet: do they need to make bigger risk and bigger change? >> i do not think that is something on the cards. an incredible force across all of their brands and assets in everything they do. this is a more technical issue around products. you know, they have secular tailwinds behind them they have ahead of them as well. >> j.crew cap the prices on the higher end. does the company hold the line on prices? even as e-mails let everyone's's mailboxes and d value goods? price. may hold the they may deemphasize marketing the luxury side of that business. they even feel they did it in the last quarter or so. deemphasizing the market and not necessarily the price.

has at: mickey dressler great track record of turning around the gap and j.crew. couldn'trgued that -- an argument he made that he is not it -- not as good as -- not as good as sustaining it. >> not at all. he is an all-star quarterback and what we do. risk with hime and he is on the perfect track and still has a lot of space ahead of him. scarlet: to receive repercussions in the company because of this weakness? trexler wanted it to and then it was considering an ipo but it seems to have shelled that. does it change what the company plans to do? >> i do not think so. an international opportunity is off the charts. they put their toes in the water internationally already.

there is a lot for them to do. ultimately, people know them for the reputation. reputation is reputation. they tend to compete and do incredibly well. i think this is a blip. scarlet: are you a fan of j.crew? alix: no. i do not get enough good quality for the high price. the t.j. maxx.r coming up on the bloomberg market day, wisconsin governor aboutwalker, what he says rubio's 2016 ticket. a preview of that interview is coming up next. ♪

scarlet: welcome back. alix: greece rained on the parade. julie hyman is looking at what is holding stocks back and giving it away. julie: the biggest declining group in the s&p 500, energy stocks, your favorite. if you take a look, the s&p energy index is down .2%, but -- the priceay

gains may not be sustainable in part because in the month of may, we saw saudi arabia, and pumping. chesapeake energy in particular. and the fact saying he is not optimistic about the company. earnings and cash flow will be negatively affected by lower oil and gas prices. the stock is trading at its lowest since september 2008. a lot of negative commentary on huge increase, and the third highest in the s&p 500. it is not just chesapeake pulling back today. oil services and drilling stocks

trading lower. transocean has consistently been one of the worst performers in the s&p today. in barclays.these a number of different reasons behind the call from barclays. the worst is yet to come say the analyst. customers are struggling to improve their project. still lower than we have seen a year ago. they are also talking about the price of oil potentially being a negative. take a look at my bloomberg terminal. i have the price of oil versus the recount. it come down significantly. what is interesting here is we , if oil goes hire, that might not cause a continued in the recount.

there is already oversupplied. you might see the pricing not improve. alix: we have seen the basin here in the u.s. starting to add over the last few weeks. thank you very much. scarlet: coming up, a look at the top stories crossing the terminal. we will do it now. if france prosecutor said doctors who treated the copilot who crashed the germanwings jet felt he was unfit to fly but they did not tell employers because of german patient secrecy laws. including three appointments with psychiatrists. all 150 people were killed in that disaster. the associated press is reporting investigators believe a prison employee had agreed to be the getaway driver but he never showed up.

the lockup is closed and police are searching cars. the manhunt has also extended into neighboring vermont. scarlet: a three-person crew from the international space station has landed safely in kazakhstan. almost a month more than planned. the mission's extension was caused by a pharaoh -- failed launch of a cargo ship in april. those are your top stories. republican candidates are meeting with mitt romney fined for mitt romney's's endorsement and access to his extensive list of donors. mark halperin had a chance to sit down and interview scott walker. let's hear what he had to say about his fellow candidate marco rubio. the way to stand out is form a ticket. the one people talk about is you and senator rubio.

does that interest you in the least? >> i like marco rubio. i think there is a lot we bring to the table. i do like marco rubio. we have similar thoughts in defense and i like the fact you ,aw, you probably commented saying happy birthday from 140 something to another. a general -- a generational issue there. >> if they announce we will run as a ticket, do you think that would be a gimmick or something voters would say, that is a strong team that make sense? >> quite a few people have made that suggestion. for now, he is a quality candidate will be formidable in this race as things progress. we will see where things take us. joke about it that

people mention it and we would probably have to arm wrestle who would be at the top of the ticket. scarlet: john heilemann joins us now. we arees it mean that already talking about the front and back of the ticket already. what does that do to the race? >> it is exciting and fun to talk about. republicans, grassroots, some of these are two guys, scott walker and marco rubio who do represent a new generation of republican leadership. some people think they would make a good match set. the other a senator from the southeast. one with a fair amount of foreign-policy experience and the other without very much executive experience. thes not that surprising what is surprising is that scott walker does not just shoot it down. a lot of candidates say no, it is too premature to talk about that.

now it is seeming like he is warming to it. pairs?re there other >> to be clear, i do not think anyone is planning any such thing, but, it is a good spectator store -- sport to match candidates up, especially with so many republicans running for president. only one can win. the consolation prize is a big prize so people have a tendency to want to game it out. you so much. you can catch the interview tonight. you do not want to miss it. plus, rick santorum. scarlet: i wonder how many of these say that so they can be a viable candidate. they did that on the good wife on tv.

they just say that as a motivation. that was part of the cliffhanger where we do not know if that will happen. alix: much more coming up here not just talking about tv. ceo's from the highs executives in america. that conversation is coming up. ♪

scarlet: you want proof the section istor -- moving? jumping by more than 90% in its ,irst day of trading, now 100% $2.2 billion. the nasdaq biotechnology center has shot up more than fivefold, more than doubling the s&p. this bull run is making a few

top managers at pharma company some of the highest-paid executives in america. discuss, laura. let's start with what kind of compensation the ceo's is receive? how do they get it? typically, they're getting paid in options. they have an inherent value and now whenever there stocks go up, you see a huge gain in the value of their option packages. alix: a lot of these companies are still profitless. relatively small amount when you look at other executives and their pay packages. it is mostly at the, why the value of their pay so i. we value compensation. it has really added to the value of the pay.

what do they do? laura: we have two cancer therapy developers and a couple that focus onnies diseases. excitingsurprising and for us because we have crunched these numbers and have been able to add these guides to the high-speed executives list that you would not necessarily see anywhere else. the biotech industry is very dependent on clinical trials, bits by larger companies. once any other big pharmaceutical company comes in and decides they want to buy the company, that is typically when the executives will cash out. alix: they are allowed to cash

out before it? is it m&a contingent? laura: it depends. typically if they are taken over, the bigger company says hey, you've done your job. scarlet: what does this mean for the executives themselves. from: we had a great quote an analyst in the story who said the wealth can be fleeting. you have a good clinical trial one day, and then poor results next day, and your paper gains can go way depending. does that make the ceo's is want to do more than they would? if they say, i will make a million dollars, i will want to push for that. we look at the history of some of these executives, you have seen they have moved from small biotech firm to small biotech firm, cashing out on the

account. scarlet: thank you so much for joining us. alix: i will say goodbye to, scarlet. ating up, there is a change the top of fox. the latest in the family drama that has been going on for years. we will have all the juicy details. ♪

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headlines. has court felling a 50% stake in its processing unit. , therivate equity firm price tag is a most $3 billion. has him partners, the deal is expected to close early in the third quarter. iran is back in the oil selling business in a big way. the agency says oil importing nations but the most iranian crude and sanctions were imposed three years ago. crude reached 1.4 million bill -- barrels per day. to fifth place after sanctions curbed output. new york state has banned fracking at -- outright but texas has presented -- prevented cities from banning fracking. county home, a county by fight. harvard business school professor michael had this to

say. michael: this is the biggest economic opportunity america has for the foreseeable future. this is driving what little economic growth we have right now. we have got to work through a win-win pathway here where we can get the economic pat -- benefit while dealing with these issues. extractionural gas company says it is not to blame for a recent rash of small earthquakes in north texas. officials told the agency they believe earthquakes occurred naturally pair now that he has been turned down by general motors, sergio marchionne is looking at other candidates. he has been working with an advisory group to see if investors would be interested in a gm deal. gm already said it is not interest and marchionne is considering france's as a plan b. if you want to appreciate bmw's new top-of-the-line model, you better be good with your hands.

sedan is series capable of responding to hand gestures such as waving to reject an incoming phone call. controlled with a finger on a touchpad. very cool. >> in this car behind me, you will see many other number one first for the industry. we have got gesture control, so you can see -- use a signal like this to take up the volume -- turn up the volume on your radio. you can accept a phone call. other technologies such as self parking. press the key, and the car will move into the garage completely safely. the price is about $93,000. those are your top stories. coming up in the bloomberg vision to, k is has a fix twitter. find out what was said to

bloomberg's emily chang. investors consider focusing overseas for some longer-term growth. later in the hour, it computer coding dominates our lives but we know little about how it works. it is the cover of the latest issue of bloomberg businessweek. all of that and much more on the bloomberg market day. today's's top stories, rupert murdoch is handing over the reins to his son, james. the announcement is the latest in a drama that has been going on for years. robert lafranco spoke earlier today to pimm fox. murdoch,he day i met he was sitting at the bar with analyst documents. i'm sure he knew at the time, that he was groomed to take over the company. veryd always spoken glowingly that james was a great guy. this was the 1970's and he just had no clue how to segue from

what he had in that world. james was his go-between to explain all the that to him. it was quite clear he had preferential thinking towards james running his empire. , heames is 42 years old went to harvard university but did not graduate, left early. i understand he is a cyclist and black belt in karate. what about business experience in the empire? >> of the three children, the one who has had the most success on their own -- >> three children out of the four. other ones, everybody do that years ago. use of the world have been reported and was sold to 20 century foster james had a couple of ventures along the way. mm: he was a big music on nor

for a while. robert: not a big one. loughlin was always a guy who preferred staying at sydney, he was given the newspapers to run the older murdoch empire. more was always a little involved in the global aspect of the business. chasee was put next to carey, the well respected operator that rupert chose to run the operation in l.a., it really became clear, this is where rupert is going. today's news solidifies that for everybody. >> what about the future role for chase? robert: chase i am sure is very well compensated by murdoch . he could probably slowly step that benefit is murdoch is a wildcard and james is much more of an acceptable

executive if you will. if utah, the merger possibility, james fits into the time warner culture much more than a renegade like rupert does. alix: that was robert talking to pimm fox. hackers have a new favorite target and that is energy. ofkers attacked nearly half the global mining sector at least once last year, second only to government according to another study. as if last year's oil drop was not enough, they are now pay cyber crimeswith than any other industry. joining me now to discuss, isaac, who loves oil as much as i do. such hotil companies hacking? banks andnk about for criminals, you get the payback. energy is traded.

you could get some kind of edge from snooping that way. also, obvious, for competitors, information.his is seems like most of these impacts are coming from foreign nation states doing industrial inionage which could be used a cyber war kind of a way to create physical damage by infiltrating. alix: like i will shut down the onlear reactor for something -- along those lines. we know the government is still struggling with hackers. isaac: it is a huge issue and all the cyber security companies are eager to sell them to help them prepare. it is interesting. consequences. a lot of the physical infrastructure systems were brought online since the big blackout on the east coast to

improve reliability. what people did not anticipate is once you connect everything, it creates a new tax service. alix: how much has -- have they spent so far? billions each year and the number is supposed to increase. alix: cruise inside -- in terms of the types of companies, different comfy base -- different country based, is there a theme here? side: it depends on whose you're on. they point to the usual suspects . but it goes both ways in a lot of ways. let's not forget the snowden documents, one thing they showed was there is a big controversy a few years ago. alix: it does not necessarily mean it is russia and china. isaac: last year, russian hackers were allegedly looking north america basically

trying to infiltrate the system and take control later on. you mentioned utilities. what kinds of energy companies are getting hit the hardest? isaac: all these things are online and run by computers. it is an opportunity where you could have fiscal damage from the cyber attack. you know oil companies are dealing with lower oil prices struggling there. how much would incremental earnings bomber companies? finance for example, that huge wake-up call and they do not have customers banging down the doors demanding it like you would with a credit card or a bank. that is one of those things that has the cyber security industry clamoring.

.lix: thank you so much a good perspective on hacking and the energy industry. coming up, one of twitter's's earliest investors, we'll hear from chris just ahead. ♪

alix: welcome back to it i'm out steel. -- welcome back. i am alix steel. julie hyman is looking at all the action or we were up and then we went down.

julie: it is just a matter of how much higher we were throughout the day. the imf wasines out not satisfied with the and so they took off. stocks did not reverse course. we are now seeing the nasdaq that 1%. one thing has been the better than estimated retail sales data from earlier this morning. that has been affecting to some degree the bond market. fall today. yields we got better than estimated economic data. because of the selling we had, was somewhat muted good treasury reaction is having a speed through into the stock market.

mainlysome relief today, utilities. i also want to take a step back and look at the bigger picture for stocks and the longer-term picture for stocks. a note out for credit suisse the probability of a bubble for u.s. stocks. chance there is a 70% that a bubble could form in u.s. stocks but there is not a bubble yet. it may raise its target to 2200. if you look at how he compares to other strategists now, he's pretty much in line. there is still some degree of optimism. why doesn't he think we're in a bubble here? reasons is the s&p 500. this is a 20 year chart of this, the pride of the s&p -- price of the s&p is that line.

a forward basis for the s&p 500. you do not tend to see a big decline in stocks until the number gets 223 or so. he says at least by that measure, it is not alarming enough yet to create a bubble. he is looking at a number of different factors, and that was one of them caught my eye. investors have not been as invested as they had been. a lot of juicy details in that note. thank you. a look at top stories making headlines. actor christopher lee had died. best known for his role as counteract a earlier in his career. he was later the lord of the rings trilogy and appeared in a star wars attack of the clones, 93 years old. spreading the news, new

jersey town from across the river from the city that never sleeps lost its frank sinatra centennial celebration. hoboken,was born in 1915. he was 82 when he died act 1998. homer and marge simpson have been happily married for close to 30 years in primetime television. it now looks like the end for at least one episode. homer and marge will split up homer will pick up with account -- a character voiced by actress lena dunham. -- as usualiversal is not talking. chris is best known for brash opinions and early bets on companies like twitter, uber, and instagram. he has a vision to fix twitter, including selling to google. emily chang sits down with him

for studio 1.0. he joins now from san francisco. i cannot wait to hear this conversation. what was the big take away? emily: he thinks google would love to buy twitter along with facebook and microsoft and alibaba and that these companies all have something twitter could add a lot to but he is not campaigning publicly or privately for twitter to be sold. he just wants twitter to be better. he feels there have been a lot of lost years and there has been a lot of turnover there. he recently released what he thinks twitter can be. he thinks this is where twitter should be now. i asked him, i was interested to know how twitter and people within it have responded to these thoughts. take a listen to what he had to say. from him?e you heard to datenot talk

frequently anyway. we are pals but it is not how to the ordinary that i hear from him. i talked to other people. thats a well-received post i think, done right, sets them up for success. it points wall street in the direction of, this is how you evaluate the company. you should not be headhunting with the ceo. focusing on these things. if they execute on the stuff i laid out there, no one would be asking the question about whether he should be ceo anymore. he says if they do not ask it should on this stuff, if he does not start accelerating again, maybe they should hand it over to someone who could do a better job. he does not see anyone on the board who would lock a sale of twitter. he thinks everybody on the board wants twitter to be a strong and independent company but he's truly believes if twitter does not start doing some of the things he's just it will not happen. >> what does he think about a

potential bubble in silicon valley. we are now seeing some of these companies want to go public. what did he say? -- there islieves no question there is a lot of money coming from silicon valley. everybody wants in to silicon valley. this money as funding companies that should not necessarily get funding. it is taking talent away from other companies and taking attention away from other companies. he thinks there is a bubble and there will be a downturn in some of these companies will go away and some people will feel a lot of pain. if you think everything will go bust, no. but he does see a lot of dangerous signs out there and bad deals being done. what he calls naive and desperate investors. icahn made a big mistake by investing in lift. he believes, as it over investor, he believes with will

not survive this, that uber will , uber will business win and lift will essentially die. that is one example and he would not point out others. i urge you to watch the full show tonight on studio 1.0 because it is really a great listen. alix: i am really looking forward to it. thank you so much. you can catch the full interview tonight at 7:30 p.m. eastern and pacific. still ahead on the bloomberg market day, investment opportunities outside the u.s. we will take a look at why the strong dollar is proving to be a tailwind for multi-natural basis overseas. plus we will look at retail sales and how stocks fared after the numbers this morning. ♪ ♪

♪ where do you find value in the markets? stocks parade around record levels are the portfolio manager for global equity is joining us now to help us answer this question. to do have you. where do you see value? >> outside the u.s., specifically here at valuations are lower than they are outside in the u.s., and profits are still low compared to where they were. there's more upside potential for profit and you certainly have got economy's recovery in europe and more momentum in japan. either they go down in the u.s. or more likely they probably go up outside the u.s. alix: part of what we have been healing about the bond route

selloff and the movement into stocks has been that inflation has been picking up. wind up hurting stocks or is that a benefit? >> i think some level of inflation will be helpful. inventories and bring it through the system with inflation. i think that would be a positive. are you looking at japanese stocks, european stocks? companiesoking at based in europe and asia and select emerging markets as well. emerging markets, some companies have very strong to teach it positioning and with weaker

currencies overseas, if they exposure, then if they have got cost structure, it reduces in dollar terms. foreign multinationals are in good shape. what about the to station between mid-cap, and large cap? >> in the u.s., i want exposure to domestic. multinationals in the u.s. tend to have more foreign earnings. i would rather have the opposite outside the u.s. in general, i want multinationals, which tend to be larger, so outside the u.s., part -- probably the larger caps. alix: credit suisse had a note out. five $.5 trillion of funds that can be used for m&a, buybacks, and dividends. the number blew my mind. what do you think will be the driver? >> the most acute driver right now is currency.

announcement this week. japanese corporate particularly in u.s., europeans are also looking significantly to move into stronger currencies. the balance sheet, taking a low yielding cash balances, and adding to the earnings power. alix: thank you for being here. greece.a little more more bubble talk to much more ahead on the bloomberg market day to the close is coming up next to her we are looking at the dow up by 22 points. ♪

alix: we are moments away from the closing bell. .his is "bloomberg market day"

♪ [bell] you are looking at stocks keeping their rally. height, the dow was up at one point by 100 points. ofdid make an overall gain 45 points. utilities, and telecom was the top performer. the drag was energy, oil prices sliding a little bit. ,ere with me is joe weisenthal a managing editor, to me it was all about news core today. rupert murdoch is stepping aside and the new world of media is coming to fruition. he