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. there was a note out saying, it

doesn't take anything for the company, they will still have to cut and they have a capital return issue at the end of the day. >> for me -- alix: to that point, we also talked to dish network. is one of the all-time greatest business guys i have ever met and certainly in the u.s. james done a good job and is no slouch. well-positioned in that company for a long time. he is passionate too. really successful people have a passion for what they are doing. alix: he is no slouch. for me, the most exciting thing was the split day for greece. there was a huge rally, as well.

maybe they are getting closer to a deal. right after the market closed, there was an amazing headline, imf said, we are leaving. you heard things that they have never left the table, but we will see what happens to the athens market tomorrow. alix: basically, they came out and said, the ball is very much in greece's court. progress in a no marrying differences, bye. >> yeah, see you later. and there was a quote from the eu, that set up make a decision. and april was a good

retail look, it was broad-based. i was interested with the note that arise in the savings ratio has risen 1% since november last year. they expect that to fall. my education was people will use that money to spend. if they decrease the savings ratio, they will spend more cash. >> at the beginning of the year there was not much economic growth. so these numbers are nice. one of my favorite numbers i look at is the growth in food service and drinking sales. people are going to the restaurants. i'm under the belief that people who are not confident about the economy, they cut back on eating out first. it was down from last month, but it was actually still really high. alix: i thought that was great. i was looking at china as well.

these numbers are not awesome, but not bad. the word is stabilization. if we look at indicators on how we understand china, i look at iron ore. so one of the world's biggest miners came out and said that prices inorts iron the back of the year, and they produce. that is a positive indicator. positive indicators for china. the consider right now is end of the day for china. but at the beginning, 9:30 a.m., that is when new zealand starts. the beginning of today was a surprise cut from new zealand. dairy the things was weak prices. they have a major part of their economy as dairy. milk tol a lot of china. if you look at this chart, the

milk sold at auction in new zealand, there is a company that does it, their version of the gdp is the weekly milk action. they have a low and another indication, yeah maybe in short time, china is -- alix: they sell a lot to china. >> the big picture, a ripple effect from china slowing down is that drag in milk prices. alix: i don't know what that combination means. buying milk ork iron ore. and now to you guys. benjamin, what is a big indicator for china? >> milk is a small segment. [laughter] >> that is the key question everyone wants to know.

there are quality issues coming out from new zealand, it could be a specific issue to new zealand. i think milk coming out of europe, i think they are accessed about -- accessed -- obsessed about quality. that has been a big source of profits. milk, we are working on it. , if you lookarket at higher bonds in china, even with default, they have allowed companies to default, there has been a 4.6 percent return so far this year on chinese high-yield bonds. compared to almost 1% loss on u.s. government bonds erie it -- u.s. government bonds. one of my hot topics was the

bubble conversation. 60-70% chance a bubble could warm in the medium term. but a lot of people say, don't worry, we are not there yet. --ical bull market lasts months. this should run in 70 month. if a correction inevitable? >> think prices need to go higher before you can call it a bubble. then you end up with a 20% decline. i don't think we are there yet. we would argue that share prices are going to be more muted performers. if you see a huge run like you have done in china, the share prices and the market earlier this year, you could call it a bubble territory. but until then, i think we are on safe ground. >> there is a story about scott google securities,

he said that he would be better off looking for a big pot -- finding ather than bubble in the market. qualityaying the credit is ok. you will not see a run-up in yields quite yet. people are starting to believe in this reality, but you would not see a catalyst for a pop. >> they said there's a 60-70% chance for a bubble. are we doomed to a world in which we only have bubbles and crashes, we rally massively and then decline/ alix: we want to go to julie to talk about twitter. julie: it looks like the ceo of twitter will be stepping down. they have been criticizing his leadership. share has spiked sharply.

this was talked about in a filing today. he will step down and jack dorsey will be the ceo of the company. it seems that the current ceo agreed to cancel all remaining on invested equity. -- atl continue to serve the same time twitter is reaffirming second earning forecast. this is big news. there were questions about how long he would last as ceo of the company as the shares were waning. he has undergone criticism. ask costolo will step down ceo of twitter. very timely that emily chang just talked about this issue. shares are up by about 10%. alix: joe, what do you make of this? haswitter's performance

disappointed. it has not seen heavy change much, it looks the same as it did six years ago as facebook and instagram have exploded and gone to new areas. twitter, one of their big shareholders said, there are all these things you can fix. alix: people really didn't like the promoted items in twitter that were popping up. where as with instagram, people were ok with it. >> if you have a pretty picture, people seem more ok with it that. beener and instagram have in that battle. alix: as we see stocks continue to rise, companies really have to find ways to get online growth. the competition has been fierce, but this may not have happened two years ago. >> absolutely, you have to find growth, ways not to disappoint.

or maybe you have to cut costs or do something clever with your cash. buybacks, that is why you're seeing more with these companies. alix: joining us now is emily chang. and leave spoke to dick costolo, what is your take on the news? shocked this has happened. i've talked to people close to twitter, the founders at times, all of them have been publicly supportive of dick costolo as ceo. he told me time and again that he will be the ceo of this company and the skills he has support, and now we hear that jack dorsey is coming in as interim ceo. a guy who is running and other ,ompany -- another company

square. there has been momentum behind investors who are not happy with twitter's performance. you and i were just talking things -- thinks twitter can do to make things better. in that moment, -- thought that dick costolo could get things done. is, one billion people have come to twitter and have not stuck around. this is a company suffering user growth, lagging user growth. this is a company that many people think can be bigger than it is. so much is going on on twitter, ise tweets, but that stuff too difficult for regular people who do not understand that service to find.

twitter takes a lot of work and dick are things that costolo has not been able to fix. there has been turnover, in five years, there was a lot of talk that it seemed take had assembled a team that could finally execute. he brought in anthony noto and promoted new product guides. it certainly seems like things are getting in order, but it doesn't seem like the board has confidence in him. alix: i don't want you to speculate on what triggered this, but in your experience, who has been pushing for change and how quickly was that voice growing? twitter is a firming their second quarter, so things have not magically changed. >> -- emily: well street has been hard on dick costolo. saying that hen

should be fired. a lot of of people saying that this company can be more than it is. over the years there has been so much drama with regard to this company. an entire book was written on it. as far as i can tell, it seems the board has not been aligned. a lot of people have been rotated in and out of the board. a lot of bad blood on the floor. jack dorsey was there, then student dick, then the -- then it couldn't get it together. there has been questions about the twitter board and if they are aligned because of all the competing voices. alix: what might jack dorsey bring to the company that is --ferent than dig costilla?

dick costolo? is all aboutorsey simplicity. that is his push. he is supportive of the live feed and keeping live, that is the cornerstone to him. tweets thatsurface are really cool but maybe don't show up in your feed because you only see what was written five seconds ago. jack dorsey certainly cares about keeping that chronological feed alive, but at the same time, there is a question of how did they make that easier for who is ake my mom facebook user, to get into twitter and understand it without having to do too much work. figuring out who to follow, logging on, figuring out usernames. usernames are difficult to understand on twitter. search needs a lot of work.

it is a consultative product that has a lot of potential. has been rough on dick costolo, do you think that in terms of a long-term ceo, will they look outside the company were people inside who could rise up and be the new leadership? emily: there are people inside can turnny, folks who twitter into an incredible business. it has more to do with user growth dan -- than revenue growth. spent a longhas time at goldman sachs, does he have the product sense for vision that twitter needs? some people would question whether he does have that. one of the main difficulties with twitter is that it has not

had a founder. does dick costolo have the respect of the troops because he is not a founder? how difficult is it to execute against the is not a founder. ceo's,difficult, founder/ people defer to them. they are allowed to take bigger risks. there are some names being tossed around. and the founder of instagram, i have heard his name being tossed around. but who could really do this better? they can't get mark zuckerberg. it does lend some more thought to this idea that maybe google or facebook comes in and buys twitter. inevitably say in independent -- an independent company? i think historically that

they have never wanted to sell twitter. mark zuckerberg wanted to buy it several years ago. i just got so this amazing aboutte -- anecdote purchaseho wanted to twitter. there was never any doubt that they wanted to be an independent company. mark zuckerberg has shown no fear in putting down a lot of money and making big bet, and mark zuckerberg would love to own twitter and improve things he thinks are wrong. who knows? twitter would add a lot of value to a company like google who has never gotten social right. a speculation for a big twitter deal has been happening for years, and it has never

happened. will god the like, we to julie now who is looking at the intricacies with twitter. julie: i wanted to look at the stock. the perception of the stock and how that explains what is happening. this is a chart of analyst calls on the company. are buys. there are fewer seller ratings now than shortly after the ipo. the beige is neutral, these are the price target. there is some optimism about the company, however, over all the sentiment is not terribly positive. to i have a chart going back the ipo of the company. stock,have seen the remember $26 in 2013. since then it is higher.

it is trading around $35 right now. that is where it closed today. you can see the waning sentiment reflected in stock prices. we have run ups with how can we monetize this in a new way? and then the stock comes down again. it seems like that is one of the more it's essential challenges with disk -- with this company. what is twitter going to be under a different leader, that is the question that comes to my mind. ,lix: as we talk about mna benjamin is joining us and talking about this. what kind of premium you expect to be demanded as we move forward? >> 30%. some we have seen is closer to 40%. fx the balance between the buyer and seller. currently, share prices are high

, companies are feeling confident. if i will sell my business, i the a big fat premium and motivation of the company with the cash burning a hole in the pocket to do a deal to show action, that shows great motivation on their behalf. acquisition premium is relatively high right now. alix: back to twitter, does twitter have the upper hand in negotiation power? emily: twitter has a multibillion-dollar business. it has 300 million users. twitter gets a lot of criticism for what it has not become, but i think we should take stock in what has already become. this is a company that has changed the way we communicate. it has changed the way that we do our jobs. and deliver the news. it just bought a company called

periscope, a live video company, that could change the way that we do television. that said, twitter has a lot more potential. it certainly has negotiating power in a sense that this is a -- an incredible product. we have a lot to desire, but it is because it is already so good. alix: we are looking at a statement from twitter, it cost a low saying that he is tremendously proud of the team and what they have accomplished. he says that they have great leaders who work well together. a strategy that informs objectives and priorities. he says there is no one better than jack dorsey to lead twitter. there will be a conference call in about 45 minutes, the company will be holding a conference call. hugeer users, joe is a

one, talk more about how this is a huge change and how the media landscape might shift when you have the biggest ceo leave? . i wanted to find it, i remember six months ago, twitter came out with this mission statement and it was utterly ridiculed because, with twitter, they should condense it to eight week. it was this 400 word, maybe not that long, but saying that twitter would be the primary news platform and everybody at it,at it and looking unnecessarily long, this is open -- indicative of the company, a cannot to find itself. people like me and you, we love it, but other people don't get it. alix: yes, and mark from san

francisco. what is the biggest challenge that twitter will face over the next few months with interim ceo, jack dorsey? >> i think it will be finding someone to take that permanent spot. jack dorsey has his own company to run, it has its own series of issues. square,ent company, they have taken on venture capital and they continue to raise more money. it is a huge business. to juggle the responsibilities with running a public company hison an interim basis with private company, that is no easy task. there is a short list of executives who have been able to pull off being ceo of two fast-growing companies at the

same time. that would be like you jobs -- steve jobs, you can't raise the bar much higher than that. alix: what is going to be the desire of people to step into that role? what are the chances that dorsey gets stuck with it? >> i don't know that he would be upset with being chosen as the man to save twitter. he has tried this once before, they brought him back be head of product while he was still running square, said he spent some time at twitter with all these new ideas on how to change the product. he clashed with some people, he didn't last long there and he ended up stepping away. inthis feels like a retread that sense. that is what makes me think that dorsey is not going to be a permanent fixture. he obviously is a founder and an inventor of the product.

alix: were you surprised? been, investors had headng for dick costolo's for a while. this was not a huge shock. he had been weathering some of the issues well, but you can only cry against the tide for so long. investors want him to sell the company to google or someone else and get it back get in and sit. alix: mark, thank you very much. benjamin,thal, lisa, and emily chang. much more coming up on twitter. ♪

emily: dick costolo steps down as twitter ceo. jack dorsey takes purpose interim ceo. we have much more ahead. this is a special "bloomberg west" from san francisco. ♪ emily: breaking news -- a big shakeup at twitter. just in the last hour, dick costolo is stepping down as ceo. jack dorsey stepping in as interim ceo. the stock surging on this news. investors have be