francine: costolo quits. twitter's ceo steps down. founder jack dorsey relinquishes his role. no more time for gambling. the eu president warns greece that the game is almost up. and, virtual reality is set to become household reality as facebook and microsoft team up to bring the oculus rift to the xbox. welcome to "the pulse" live from

bloomberg's european headquarters in london. our top story today, twitter ceo dick costolo paying the price for the social media service's lack of user growth. costolo will step down and jack dorsey will return to take charge temporarily. caroline, this came really as a surprise. after hours, the share price went up. caroline: they seemed to like it. the share price spiked as much as 13%, all because this man is relinquishing his power. he will step aside on july 1. he's been there since 2010. he did achieve all that. he took twitter to the market. sensational valuation. since then, the share price has more than halved. more than 50% wiped off its valuation. therefore, he is bowing out. he leaves 60 million stock

awards. he does remain on the board. some of the things, he decided that he wanted to move away from twitter and find someone to take his place. they now have an interim ceo who comes riding to the rescue. jack dorsey himself, the cofounder. 2008, he was ousted. he has moonlighted of it in the interim. he has helped formulate new products. now he's going to take up the charge as interim ceo. interesting, who does this remind you of? who came back to save a big tech company back in the day? none other than steve jobs, a man that jack dorsey is said to mold himself up on. he has a uniform in the same way that steve jobs does. he refers to himself as an

editor in the same way steve jobs did. in the same way that steve jobs rode to the rescue for apple maybe jack dorsey sees himself as a longer-term figure as the ceo at twitter. he would have to be talking to his current company, square, who he also founded and is currently ceo of. no matter who takes the reins, it is going to be a tough act. they have to turn around the downward trend at twitter. we saw 18% growth in people adding on to twitter. 300 million in the last quarter. that is slowing down. compare that to 1.4 billion users on facebook. instagram whatsapp, both owned by rival facebook. facebook tried to buy twitter back in 2008. they are seeing problems there. this is eating into their advertising potential. he marketers think that twitter

has less than 1% of the digital advertising market. compare that to google, that has 31%. khmer that the facebook, that has almost 8%. advertisers aren't yet coming to twitter. we will therefore be thinking, who will be taking the reins in the longer term? i know a man whose up to the challenge. snoop dogg wants to become chief executive. he took to twitter last night saying, snoop dogg for ceo. francine: i think that would be genius. caroline hyde with the latest on twitter. are we expecting too much of twitter? my real twitter question is snoop dogg as ceo, would that work? tweet me about that. she it is from the imf have left brussels, -- negotiators from the imf have left brussels. they rebuked prime minister

alexis tsipras for playing games with greece's future in the eurozone. hans nichols joins us from berlin. jones hayden in brussels. hans, what is wrong with the imf? hans: it seems that the imf wants to send a clear signal that talks are in a standstill. one way to do that is to withdraw your negotiators. that move is reverberating here in berlin and all throughout germany. it is one of the reasons that angela merkel's government is considering the possibility of a greek exit. the other reason, they are saying that meeting between tsipras, hollande, and merkel that nothing came out of there in terms of progress. no real investments. what all the creditors seem to be waiting for is some move from greece. the only reason to be optimistic

for a greek deal is look at the public polling inside greece. the latest poll we have is a survey of about 1000 respondents that says that 50% of those surveyed want to see greece stay in the euro. they want to see some sort of compromise. only 37% are backing this hard-line approach by mr. tsipras. if he is reading these polls, he may want to offer some sort of new proposal. right now, everyone is waiting on something new from greece. thank -- francine: hans, thank you. jones, put this in context. do you think this is salvageable? jones: i hope so. the creditors are waiting in brussels for another proposal from greece. we are hoping to get that today. hopefully, that will come. the eu president said yesterday in strong language that next

week's meeting of the eurogroup the euro area finance ministers on june 18, that is when something has to be decided. he said that should be the decisive time, the decisive meeting to see if we are able to bring a package together for greece. so that there isn't a default. now, we are waiting to see what we get from greece today. francine: let's see if we get more news on it. thank you both. jones hayden in brussels and hans nichols in berlin. for more on this, let's go to munich where we are joined by eric nelson. great to speak to you as always. is this crunch time? are we going to have a deal? >> i don't know when we get a deal.

i think we will get a deal. greeks want a deal at the end of the day. they wanted because they really want the stability, and the government's strategy doesn't seem to work domestically. i'm sure the germans will go along with something that is ok for now. the bigger one is, if the imf on board, and then persuade the spaniards and the slovakian's and the other euro countries which are much more hard-line than germany to put it through their parliaments. francine: if you are so confident and we are still waiting for the counterproposal if the imf walks out, where does it leave the others? a lot of people think like you, that angela merkel doesn't want to be the chancellor where someone was kicked out of the eurozone. do we need a referendum in

greece to make sure that tsipras negotiates differently? erik: at the end of the day, the imf would be in line with the germans. i think this is a given. it is clear that people are fed up with this scene. i was talking to somebody here. when you talk to officials on the european side, people are just fed up with this. they've never seen anything so completely ridiculous in the way they approach it. but it is what it is. people really want this thing to be sorted out. i'm glad i'm not the imf guy who has to bring this thing to the board. francine: i'm glad i'm not either. do you think we need one proper reform from greece for the creditors to sign up? that is what we heard from angela merkel.

that they just want one commitment. erik: that seems to me to be a little bit of a pr kind of thing. at the end of the day, all these programs, that is what the imf always does. an imf program is one where you have a staggered criteria, where you meet the performances, and then you get your money. i'm not quite sure what this new thing is but i think it is a fancy word for what we used to have. francine: and you think they will definitely stay in. the talk has been that it is dangerous to go to greece at the moment because you can get stranded. you are confident that nothing negative will happen on greece? erik: i'm not so sure when this comes to a conclusion. it is so hard to read what the

greeks are up to. i would not be surprised if they end up having a runoff to the imf. that will almost certainly lead to capital controls. maybe even other controls on deposits and what have you. it is because they keep dragging their legs. how fast can you get a program through parliament and get the money out? it has to happen by the end of the month. that means that the deal has to happen this week. otherwise, we will have a period of billing to the imf. that brings us to a very complicated situation. then we have a bridge loan which we've had in some really poor countries in the past. the important thing, in my opinion is, the alternative to this is not an exit. i really don't believe they have

the political or technical capability of starting their own currency. it will be economic chaos, and the greek government will fall. francine: thank you so much. erik nielsen stays with us. we will be talking about volatility on the markets. about 45 seconds ago, yanis varoufakis has taken to twitter. this is something we are often used to. he says contrary to stubborn rumors, we never gambled. this in reaction to some of the press saying they have gambled too much. mr. yanis varoufakis saying, we never gambled. here's a look at what else is on our radar. dominic strauss-kahn will learn today whether he's been found guilty of aggravated pimping charges linked to a string of sex parties five years ago. he insists he's innocent and

he's being prosecuted for a lifestyle that is no one else's business. rupert murdoch is preparing to step down as chief executive officer of 20th century fox and hand the title to his son james. a person familiar with the matter says james' older brother will become executive chairman. china's security chief is in jail for corruption. he pleaded guilty to three charges, including bribery, abuse of power, and leading state secrets. he was sentenced after proceedings in shenzhen. facebook has announced that its oculus virtual reality headset will work on the xbox one. oculus will start to ship its consumer version of the headset in 2016. the device lets people immerse themselves in games or experiences. now let's look at what is still to come on "the pulse."

at 9:35, we will hear from the mexican president. at 9:45, we break down the huge numbers the "jurassic park" franchise as the latest film hits the big screen. at 9:50, we take a look at the new ferrari causing controversy among purists. ♪

francine: welcome back to "the pulse." we are live on bloomberg tv and radio. let's head back to munich, we're joined by erik nielsen. i want to touch on volatility but i want to get back to the point about greece. you said that if greece were to leave, it wouldn't have any capability. we don't know what comes next. is this one of the reasons that you don't think they will leave the eurozone? because then it is the abyss? erik: sorry i couldn't hear the last part of the question. if they leave? francine: you were saying that if they leave, they don't have the capability to print an alternative currency. erik: right. so the point, it is kind of

quite simple in a way. what does it take to issue your own currency? number one, you have to have fiscal notes which are reasonably sophisticated so they don't have any see counterfeit. greece does not have a printing press. there are not that many in the world that will produce safe notes. so they have to be ordered. they have to be delivered to greece. you can't make a plan and announce it. they have to be distributed to the banks which are halfway nationalized or under capital control. not an easy task for a government that can't organize a barbecue right now. now, you have the currency up there. you have to make it legal tender. it means that you have to force people to accept it as payment for services and goods. it is easy to say you can pay your taxes with it, but are you going to be able to persuade some other place to accept this new funny money?

if he takes it, can he use that money to pay his bakery or for the gas? the point is money needs to be a commodity of trust. i don't think they have the trust in the population. they may print this money. but to actually transact is something different. in that situation, you can't pay your taxes. you can pay your taxes in iou's or new drachma, but will employees take this new funny money as payment for their services? big question. it is not straightforward at all. francine: interesting point. talk to me about volatility in the markets. the u.s. is recovering nicely. we are still concerned about greece. we have huge volatility.

erik: it is phenomenal. i will say two things about that. the first thing is, in terms of the key volatility, it is moving in more the right direction. it is about -- the recovery in america and europe are quite fine. you have no business being at these levels. bunds should be moving higher. we think they will move still higher. the incredible speed and volatility, i don't think is going to last. while it is very dramatic right now, once we come into the southern months within a few weeks, the flow story, all the standard money flows will be supportive almost certainly of

these type of bonds. i wouldn't be surprised if you see 10-year bond yields stay below one through the summer months maybe even lower for a while. so the volatility has been excessive. my guess is, it is going to calm down. to the end of this year or next year, we are moving higher again, almost certainly. francine: does that mean you are expecting a fed rise still this year? erik: we think september. to be honest, i think it is quite the exception of what the fed is doing to excuse why they haven't done it. you look at these 10-15 indicators we look at in the labor market. on every single labor market

indicator for the united states that i know of, you are now in a stronger position than you were before the crisis where interest rates were a lot higher. while there may be a bit of an output gap, you see quite substantial increases in house prices in america more so than you can argue is a domestic phenomena as in germany. in my opinion, the fed is behind the curve. they need to get started. francine: thank you so much for that insight, erik nielsen. of next, as rupert murdoch prepares to hand 21st century fox to his son, we will look at what that might mean for business. ♪

francine: welcome back. rupert murdoch is preparing to step down as chief executive officer of 21st century fox. let's get more with bloomberg european technology reporter mark beach. great to have you on the program. is this the end of rupert murdoch? we knew he was thinking of how his legacy gets continued. mark: absolutely. this has been coming for quite a while.

certainly the take from the fox camp is that he still remains as a chairman, executive chairman and effectively number one. but he is 84. he is looking for his legacy. in the meanwhile, he remains as active as ever and tweeting away like mad. francine: i enjoy his tweets. more murdochs to keep the twitter people happy. does it mean that james murdoch is the chosen one? mark: pretty much. he is going to be running the company on a day-to-day basis. having said that, his brother is going to be his boss nominally. james is going to be doing things on a day-to-day basis. francine: he has had to overcome some setbacks. mark: he has. people will remember the hacking scandal the closing down of the news of the world.

murdoch thought maybe they would buy all of sky, and they didn't. and they thought about time warner, and they didn't. francine: mark, thank you so much. we are back in two. ♪

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francine: welcome back to "the pulse" live from bloomberg's european headquarters in london. twitter ceo dick costolo is stepping down. jack dorsey, cofounder, will take his place on july 1 until the company can find a permanent replacement. costolo presided over the company's public debut in november, 2013. the stock has declined more than 50% since the end of that year. greece has been told to

stop fighting creditors' demands and sign a deal. the eu president said there is no more time for gambling and warns that the game is almost up for greece. that came as the imf team walked out of negotiations. dominique strauss-kahn will learned today whether he's been found guilty of aggravated pending charges. the former international monetary fund chief insists he's innocent and that he's being prosecuted for a swinging lifestyle that is no one else's business. let's get a quick check on the markets. mark, we are talking about zimbabwe. mark: we certainly are. this is an incredible story with numbers that are mind-boggling. the zimbabwe dollar is going to be taken from circulation. what that means is that the central bank of zimbabwe will offer five dollars for every 175

quadrillion. not every day we deal with quadrillion's. 175 quadrillion is 175,000 trillion zimbabwe dollars. this is to help formalize a multicurrency system that was introduced in 2009 to stem inflation and stabilize the economy. it does mark the official dropping of the currency, but to be fair, transactions in zimbabwe for many years have been done in the u.s. dollar and the south african rand. you'll remember, the economy plunged into crisis many years ago back in 2000 when the government seized white-owned commercial farms to distribute to black growers. it slashed exports of tobacco and other crops. inflation surged to 500,000,000,000%.

that recession ended in 2009. other policies implemented since then by a coalition government. the economy has begun expanding. the regulation of foreign currencies has helped tame inflation. no longer is it in the hundreds of billions of percent's. it is incredible to talk about 175 quadrillion, which is 175 trillion zimbabwe dollars. i just want to move on to the bond market. sovereign bonds across the world are on track for their worst quarter in almost 30 years. that is measured by the boa merrill lynch government bond index. the gauge dropping 2.9%. that is the biggest quarterly loss since the third quarter of 1987. it got me thinking. are there any other sovereign bond markets that have actually

risen in the last three months? we've got a wonderful function called the bloomberg world bond indices. come right in. you need to look quite close to see how sovereign bond markets have fared. all in the red. there's only one global sovereign bond market that has risen in the last three months. the new zealand sovereign bond market. it is up by a mere 0.2%. i searched even further. i wanted to know what only the best sovereign bond market, but the global bond market including high yield and emerging-market debt. this is the answer, russia. the local bond market denominated in rubles has risen in the last three months by 12%. not for the fainthearted. from september to december, the bond market fell by 21%.

francine. francine: thank you so much, mark barton with the latest on bond markets and the zimbabwe currency. a big announcement yesterday. oculus unveiled its new product to be unveiled to the masses next year. they announced a partnership with microsoft to help it grow. here with more is caroline hyde. the gamers have been waiting for this. caroline: exactly. end of the first quarter, maybe even april, they will be able to get their hands on a pair of see goggles that you put on and it completely immerses you in a game. i had the joy of being able to play with it. it is amazing. what is so phenomenal is they are teaming up with xbox. interesting joint venture. i'm not really sure if i would want to be inside assassins creed if i want to be inside halo. it is terrifying.

many gamers probably aren't ready for the fully immersive virtual reality. francine: i was a bit nauseous and i was just looking at football pitch. apparently women are more sensitive to seasickness and things like that. they are working on it. the gamers are excited, but this can go beyond gaming. this can be used in a wide range of things. caroline: we've got no price point yet, but so far, microsoft has been trying to develop augmented reality. they've got a headset. it is interesting, the dichotomy between virtual reality and augmented reality. augmented reality is when you are still in the room, but there are perhaps digitally made products in front of you on the table. in virtual reality, you are transported to a whole other world. some people feel augmented reality is where the longevity

is. $120 billion industry by 2020. bigger than virtual reality. virtua lady -- virtual-reality could just be gaming. augmented reality, where mark zuckerberg is thinking long-term, you could be looking at your own feet, your own hands , that is where perhaps the longer-term view is. taking it back to gaming, there were so many interesting product launches yesterday. they were announcing a $10 million fund to inspire developers to make yet more games where perhaps you are not killing everyone. they also had the next iteration , which at the moment is just a prototype, the oculus touch. this is basically like a wii. do you have one? francine: i don't. caroline: you have a controller

and you can be inside a game playing things. this is what oculus is making. you can put gloves on. not only are you seeing in virtual reality, you are able to move things, touch things. you can be actually picking up a gun, shooting. this is what the oculus touch is promising. francine: so what is the thinking for microsoft? is this positive? caroline: i think it is. they win no matter what happens. it has been interesting trying to figure out the winner for virtual reality. you have samsung teaming up with oculus, using its technology where you put a samsung phone in your headset. many have been trying to work out who is the winner. microsoft has perhaps a bit of a stepping stone on sony. they've got augmented reality. they've got virtual reality. even if virtual reality doesn't

take off in the way they think it will, it is not quite so exposed. they can jump on the bandwagon. francine: interesting. caroline hyde with the latest on this oculus rift. first now in may 2016. for more tech news, join us on bloomberg starting on monday. we will have complete coverage of london tech week. that will be something you won't want to miss. now, for an exclusive interview with the mexican president. he sat down with bloomberg. we started by asking him about the mexican economy and whether he could add more dollar options. >> i think it is a decision that the bank of mexico will have to take. in the end, i think the government has great responsibility, taking into

account everything that happens on the world stage. we have made some adjustments and we have commitments with zero-based budgets. so we can control public spending and also decide where the investments go. so we have one institution that is the mexican bank who decides on those merits. >> you mentioned the mexican bank. the governor's term expires in september. will you reappoint him? president nieto: in december, you can ask me that. >> do you think he's done a good job? president nieto: i think he's done an excellent job. he has acted very professionally and he has demonstrated -- he also proved his diligence in other financial areas, for

example, the international monetary fund. >> that sounds like a "probably" to me. president nieto: we will see in december. francine: up next, as "jurassic world" hits the big screen, we look at the numbers behind the franchise. ♪

francine: "the pulse welcome back to "the pulse." let's talk china. in a week of fears over chinese stocks shanghai-based python securities has signed a memorandum to bring more companies from the u.k. we are joined now by the deputy ceo in a bloomberg exclusive. thank you so much for joining us here in london. just give me a sense of what investors should be thinking when they are looking at chinese stocks. there is a little bit of concern that we are in a bubble. i guess this bubble can be there for a long time. we are just at the beginning of a huge appetite for the chinese market. >> yes. we are surprised to see the markets have such good torrents

in the past 18 months area -- such good performance in the past 18 months. only less than 2% of the chinese people are in mutual funds. [indiscernible] francine: so this would mean that it could almost triple in size. >> yes. [indiscernible] it is a good way to bring money to more economy-driven investments. i would say that is a good indication for the future of much more broad and deep

development of china's financial market. francine: the west is preparing for a lot of reforms in china, including liberalization of the renminbi, financial initiatives. do you think the reforms we are looking at will come sooner than those things? >> yes. i would say the market be formed -- performed so good because investors became accustomed to the good momentum of deregulation. there was huge momentum for people to change their mind. [indiscernible] there will be more strict requirement for disclosure and

transparency. this new company must obey with more strict regulations and pay attention to investors externally and internally, and also to pay higher dividends to the investors. from all angles, the chinese companies are behaving more properly and more market oriented. that gives investors more confidence. francine: do you think this will be in the next year, or will it take longer? we heard from the msci this week , saying that they will work actively. how soon can that happen, and will that change your role?

you are trying to get the chinese-listed companies here. you talk about the fact that we need to have confidence, that chinese comments -- companies are governed like the others. >> i'm quite excited. [no audio]

, some good valuation companies -- i cannot mention names but there are a handful of candidates seeking to be here, and to tie versa five -- two diverseify. francine: thank you so much. the deputy chairman -- deputy ceo of python securities.

"jurassic world" is ready to take over the box office. original, king kong, the state-of-the-art effects pitted the dinosaurs against the eighth wonder of the world. although that is sketchy, $2.8 million. adjusted for inflation, that is

about $51 million. "jurassic park" arrived in theaters in 1993. in total, the movie made $914 million worldwide. for its 20th anniversary, universal studiosfrancine: there you

go. pretty exciting. we are going to take a break. back in just a couple minutes.

familiar with the matter, who says that james' older brother will become a chairman. china's former security chief has been jailed for life for corruption. he pleaded guilty to three charges, including bribery, abuse of power, and leaking state secrets. he was sentenced after proceedings in tengion. facebook has announced that its oculus headset will work on the xbox. oculus will start shipping its consumer version of the headset in the first quarter of 2016. the device lets people immerse themselves in virtual games. the zimbabwe dollar is to be removed from circulation formalizing a multicurrency system introduced in 2009 to help stem inflation and stabilize the economy. the central bank will offer five

u.s. dollars for every 175 quadrillion zimbabwe dollars. that is inflationary pressure. for those listening on bloomberg radio, the first word is next. for our viewers, a second hour of "the pulse" is coming. we will be looking at the new ferrari. a lot of people in the newsroom wouldn't buy it. would you? we will go through that area and, what the gut chrysler will do. we will talk about that greece, also talking twitter and oculus with eileen. that brings us to today's twitter question. are we expecting too much of twitter? this is after the resignation of dick costolo. jack dorsey is back in charge for the moment. we will go through what it takes to lead twitter. what are they looking for? we just told you about "jurassic world."

we will go through the appetite for dinosaurs. this is a film six to seven years in the making. it is at the box office this weekend. we have plenty to talk about. ♪

francine: twitter jk ceo steps down. the founder retakes the role he was pushed out of in 2008. the imf walks out of debt talks. virtual reality set to become a household reality as facebook and microsoft bring the oculus rift to the xbox. good morning to our viewers in

europe. i am francine michael. -- i am francine locke while -- francine lacqua. caroline hyde has details for us. caroline: he

meeting. he said we need something. the meeting should be decisive. we need to have something else

on the technical level. we need to have the expert get closer together. it does not look good. francine: thank you. here is a look at what else is on our radar. verifya person said that his older brother will become coexecutive chairman. -- will learn if he will be charged. he insists he is innocent and that he is being prosecuted for a lifestyle that is no one else's business.

leaking state secrets. he was sentenced after proceedings. facebook has announced its virtual reality headsets will work on the xbox one. the device lets people immerse themselves in games. up next as investors pull money out of emerging markets, stay with us. ♪

francine: welcome to pull spaying." -- welcome to the pulse. you have been looking at some of the emerging work. >> i have. zimbabwe, this is a story. it is not every day i get to talk about claude julien's. that is what locals will be offered. they are offering five u.s. dollars to every 175 quadrillion zimbabwe dollars.

five dollars for every 175 quadrillion. this is to help formalize the multicurrency system. that is the zimbabwe story. according to this merrill lynch bond the facts the gains have dropped. within the hemisphere, has any bond market posted positive returns? you have to look close to see some of the market returns.

the sovereign bond market is down by 5%. france down by 5%. it causes the bond market to rise in the last quarter. a gain of .22%. i look a bit further. i did not want to focus on sovereign bonds. i wanted to focus on the entire global bond hemisphere. i wanted to find out what is the best performing global bond market. it led me to this country right here. get in here. the bloomberg-russia local

sovereign bond index. we had a gain of 12. this is the local bond market. it is not a bond market for the fainthearted. the bond market fell by 26%. since december the monetary policy of russia has been loosened. the bond market has risen by 30%. you have to have headed to russia. francine: we will have a guest

talking about turkey. the imf on to the story because they thought there was not enough progress. we have to put this into context. angela merkel is in a tough position. she does not want it to be her legacy to leave out of the euro zone. she is in a difficult position. angela merkel saying it is a -- the right thing to pursue on greece. our next guest is a markets strategist.

this week, we have turkey. there will be a difficult formation of a government. the rates market in turkey funny enough, we got all of it back almost. it supports the view that the markets have seen a small majority government under the late ap. in the medium-term, having more checks and balances, a coalition government, might be increasingly filtering into the markets.

the central bank will not be under as much pressure. we have rating review scheduled. both have turkey on triple b minus a negative outlook. francine: i look at the emerging markets and as soon as a fed moves, no matter how much we have been flagged this is coming, we will see huge outflows. what do you buy at the moment. we had structural reform.

quakes we have been an environment for the past year where the dollar has been very strong. this environment, local currency dominates that. emerging markets will be under a lot of pressure. we are still more comfortable even though we are conscious -- [no audio]

francine: a little bit of both. >> mexico is one where there is a lot of reform. everyone likes it. brazil is interesting. we are seeing a lot of positive fiscal momentum. the risk we are worried about them but still it comes under --. in brazil, you have tight

monitoring policy. the central bank we think they are going to hike a few basis points. this year, we are going to have 1% contraction growth. francine: thank you for coming in. up next, the oculus rift is coming to the xbox one. ♪

francine: a big tech announcement. -- is to be unveiled to the masses next your. they announced a partnership with microsoft. >> quite the fanfare. they have unfurled what seems to be the feature of virtual reality gaming. it is a headset. a pair of goggles you put on,

but you are immersed in the prehistoric times. the easiest protocol is gaming. it is where the money is going to be, the most easily accessible. microsoft has joined with oculus to put their technology together. you might be able to play halo or c4. this level of a martian, -- suddenly, they are able to do well with their augmented reality program. microsoft has invested in

augmented reality. this is where you put on a headset and we can see digital projects -- products on the table. virtual reality is when you are transported to a whole mother world entirely. some say augmented reality has more money. the purchase of oculus is making sense. someone will see a doctor. potentially, augmented reality is where it is. this is a big play versus playstation. everyone is rushing to get into virtual reality. francine: i am sure it will be

leaked. we are back in a couple of minutes. we have a couple of headlines from angela merkel saying we should go back to the table and renegotiate.

francine: welcome back. these are the top headlines. twitter ceo is stepping down. aco provided over the public market debut in 2013. start -- stocks have climbed more than 50% since the end of the year.

there is no more time for gambling. the game is almost up for greece. we will learn today if -- will be charged. he is being prosecuted for a swinging lifestyle that is no one else's business. jonathan ferrell has the markets. jonathan: stocks in europe a little bit low. a pullback on a periphery. down a third of 1%. a sea of 100, we are down half a percentage point. a big move yesterday. update percent. the imf comes out.

stocks doing the inevitable this morning. greek bank stocks taking a huge gain. these guys are not close to a deal. off the highs for the week. the big sounding is happening on the periphery. up by eight basis points. a refer to love some of the gains. if you look at the merrill lynch index, heading for the worst quarter since 1987. eight great write up -- a great writeup on bloomberg.com.

euro-dollar got interesting. i will show you why. we are down 7/10 of 1%. what happened here, angela merkel delivering a speech in berlin. many of you expected a headline on greece. you got a headline on the fx market. francine: thank you for those latest headlines. -- is looking at other automakers as merger candidates.

all according to a source familiar with the matter. -- said no way. >> we do not know if marchionne said no to jam. i need to merge with the company. they have the highest cost.

there is an advisor working with him. francine: why is he pushing to merge? i remember when he was in charge, he said there would only be three or four big companies to survive. why don't we share this? we need to be profitable.

francine: we have the whole story. we will get back to you shortly. the unconventional -- should not be dismissed. >> here is the thing about the ferrari. they knew they had to develop something that would expand their market. rather than go the suv route, they did this.

it is unique, intellectual even. this the 12th coupe might be the embodiment of -- himself. it feels like jumping on a hot-blooded thoroughbred. it just wants to run. he goes zero to 60 miles per hour in 3.7 seconds with a top speed of 208 miles per hour. you will feel every second peel off. it is possessed by the same

energy that you feel. you feel like you are sitting courtside in the middle of the ferrari kingdom. it has the same circular vents instrumentation and leather stitching and detail. the rear seats are small. do not expect anyone to drive across country. it does not mean it feels different than other for our use. this can hold its own. who is counting?

francine: hannah was having fun. up next, rupert murdoch begins to -- we will look at what that might means for business.

francine: welcome back. rupert murdoch preparing to step down and hand the title to his

son. that is according to a person familiar with the matter who says james' older brother will be -- read let's get more with mark. quick's -- >> i am sure he is getting very entertaining tweets.

francine: what do you make of this. it means there's something in place. even if rupert murdoch is present, he's going to take a back step. >> at some point, the rains have to be handed over -- the reins have to be handed over. i do not think you would see a huge amount of change with regards to fox's strategy. francine: do we have a hunch about when they will do that? ian: if you look at that, it is a mark generational change where

the old guard is stepping down. james murdoch used to be ceo of sky. james murdoch can see the trends going on, given that fox sold its stakes and sky -- in sky. i think it is more the lack. there is more chance they will take 100% control. francine: -- >> some have suggested the results were that rupert murdoch took a different view to his

loyalty and his other siblings. it is interesting to see. whoever you regard as seen -- as being the successor, all three of the murdochs with no intermediaries in the way of management. it will be interesting to see that. francine: they have come back through setbacks. are they the right people to spearhead these companies? >> it has been successful. in the u k, there was a certain section of the media that -- the murdochs. they have done well on the pay-tv space and so forth. james murdoch, his first meeting came across as nervous.

by the end people said it was a great shame that james murdoch was leaving. he had done a fantastic job at sky. the risk of the charge of nepotism gets thrown about. you have to look at the base of what he has done. it is hard to argue against the choice. >> we have the situation at fox where he has been doing coo stuff. francine: are we expecting anything? you both think something while happen. >> there are questions, what

happens to sky and what happens with time warner. rupert was a major force. maybe he could work better with time warner if that deal or something gets revised. >> there will be a hiatus to work out the strategy. the landscape is moving so quickly. if you look at the deals that have been announced you almost cannot rule anything out. francine: thank you for joining us. up next, how can twitter move forward after the departure of its ceo? we will look at their future. ♪

francine: welcome back. let's get more on the news . twitter ceo stepping down. here is how it stacks up against facebook. 302 million users to facebook 's 3 billion users.

where does twitter go -- facebook's 1.4 4 billion users. where does twitter go from here? do we need to give it time? >> a lot of questions there. you are expecting investors to buy the stock. taking that further, he has been there for disco years. -- four two -- for two years. people were getting restless. interesting the interim position is going to jack. not sure --your question is key. are we expecting twitter to be a commercial phenomenon like the

facebooks of the world or is a cultural phenomenon? a lot of these cultural phenomenons shifted what people do online and how they engage and they are not moneymakers. francine: we were having the same conversation about facebook a couple of years ago. if you were in charge, what would you do? how do you get this back on track? >> that is the challenge. he was trying to stay the course and do innovative products and get our users to be more delighted with the products to engage more. potentially not worry about new user growth. we think monetization will come. that is what facebook had done.

all of these things, they tried before. revenue has increased over 200%. it has grown. it is now 3% of the u.s. ad spend on twitter. not a bad degree of market share. francine: how do you commercialize it further? do you streamline a? -- it? >> you will need to do things that might sacrifice near-term revenue. you have to reposition the company to investors that is not going to be a money making machine in the next two or three years. the other announcement as they are going to list the restrictions. you are competing with whatsapp

or snapchat. you are also saying we're going to do what users want. francine: if i am a celebrity or journalist, mike tweet gets lost. -- my tweet gets lost. is this a problem? you have to cut through all of the savanna. >> blogging was transformational in terms of communication and people connecting. it made no money. twitter is powerful in terms of journalism, how people are conversing, the question is how are you going to monetize it.

you start building off of the platform in other things. blogging led into advertising. we need to see if twitter can do that. they need to figure out the next. francine: is there a username you would like to see? >> i think they have to be cautious not to go strictly commercial. i think it needs to be a balance between somebody thinking about revenue and how to characterize a friend that for investors and not forgetting users first. nothing will happen without user engagement. francine: thank you for coming in. a look at what else we are watching, we are joined by hans nichols. it is all about greece. we just lost hans.

angela merkel has been talking. we heard from a couple of her advisers. germany does not see the imf aborted the talks on greece. we heard from the imf. they pulled their guys from greece because there was no advancement in the talks. what this means for the future of europe is huge. we understand through sources inside her ministry, saying that she does not want this to be her legacy. she does not want the chancellor that lets greece leave. 51% of germans think there is a bigger chance of greece leaving. she is having domestic issues. she also has her own personal legacy. keep it here.

have a great weekend everyone. ♪

announcer: this is "bloomberg surveillance." tom: twitter brings back a fallen founder like falling -- like -- jack dorsey returns to salvage twitter.

you remember dow 10,000. can you get ready for the doubt 20,000 hysteria? and maybe finally women's soccer can fill seats in the stadium. good morning, everyone. this is "bloomberg surveillance ." it is friday, june 12. with me, vonnie quinn and brendan greeley. women's soccer. brendan: usa! usa! today we played sweden, a powerhouse in international women's soccer because they have a commercial league. tom: i do not care. why should i watch? brendan: because the u.s. players go to sweden all the time, so this is a personal and competitive match. we are going to get out of the round in germany is going to win anyway. vonnie: can i just say that we are going to fill a stadium? tom: let's