the u.s. house of representatives will be voting in about one hour on whether or not they give the president more authority on trade deals. scarlet: we have an exclusive interview with bill ford, explaining why the company is getting back into one of the biggest car basis. it is the mysterious virus that has south korea on guard. we will talk about the mers outbreak with one of the top immunologists. scarlet: good morning, everyone. i am scarlet fu. pimm: i'm pimm fox. let's take a look at the markets. , the dow jonesks lowered by 1%. the s&p 500 down more than 17.5

points. scarlet: we are at session both, as european stocks falter too. a lot of concern on what happens with the weekend discussions with greece. you can see there, the dramatic nelloff when trading bega today. certainly, a lot of optimism that we saw yesterday has evaporated. let's get right to the trade fight on capitol hill. obama's meeting with house democrats has ended. the question is has he want any of them over? peter cook is standing by with one democrat. peter: that's right, i'm joined with john delaney. he just heard what the president had to say to his colleagues. how effective was the president today? did he's way anyone? of said delaney --

representative delaney: i think he did. i thought he did a very good job. i thought it was balance. he talked about like trade is good for the american people, and i thought he made his case very well. he also played his credibility on the line. he said, why would anyone think that he would hurt workers, hurt our efforts to fight climate change. those points were very important. i think he also called at the misrepresentations that was said about these things come about what is in the deal. he challenged people on that, which i think is important. he concluded by telling the cop is to play it straight. this has always been a caucus that has worked well with the administration. they had to take the hard road that they did. defines us as the caucus. i thought it was in a plus speech.

peter: the fact that the president had to come on the hill the same day as the vote tells you how close it is. did he do enough to win it this day? how big of a setback will it be if he does not win one or two of these worlds today? it is atative delaney: big setback. this has been a top priority for the president, for all the right reasons. i think it is a setback for the democrats. i would rather have president obama than some future president, for my opinion has a chance of being a republican. that is something that my colleagues have not focused on. we have the opportunity for president obama to negotiate this historic trade deal with asia. i think most people think one day we will do a trade deal with asia. why would we not want the sitting president cut the deal? i think it is a big setback for the present.

i think it is a big setback for democrats. peter: how much is riding on this for the president for the remainder of his turn. if he does not win this, does he effectively become a lame-duck? delaney: no.e the president has others. specifically, infrastructure. the president is on board with a program, and a lot of key republicans are as well. i think there is a long checklist of things that this president can get done and his remaining 18 months in office. make no mistake about it. this was a top parity. not getting this would be a setback for the president, the country, and the democrats. peter: final question for you -- you come from a business background, how can you convince the business community and others that there is something in it for them? representative delaney: i do on, from a business back

but my father was in a union, the unions that me to college. i think i understand both sides. i think it is an easy way for workers, and fermented in particular, if you represent maryland and are against this trade agreement, i don't understand that. we have one of the best sports in the country. trade is good for marilyn, protecting intellectual property is good for marilyn. from ehrlich, it is a very easy case to make. i talk about the facts. export jobs, what they mean, what they pay. i think there is a bit of a manufacturing renaissance going on in this country based on the fact that energy cost is low. labor makes us more competitive. going places with cheaper labor

does not save you that much money. i think we can play up manufacturing. the missing piece is not having enough markets open. president?the representative delaney: he nailed it. peter: house democrats are still beating about the next move here. scarlet: thank you so much, peter cook. of course, the vrable on the first part of that bill will take lace sometime in the next hour. we will wait for that. pimm: let's go now to our bloomberg exclusive on auto .ills -- automobiles ford announcing that it will return to a market with its all-new supercar that goes on sale next year. matt miller is standing by. matt: thank you very much, thank you for joining us. good to see you there in front .f that gorgeous gte racecar

let me ask you what got you back in? why the gt class? people were speculating that you would go for more of an experimental class. : first of all, you should be here. you of all people would appreciate this. it has been a great day. we decided to come back because we finally had the car to do it and compete. make no mistake, we want to win. what we set about developing this car a couple of years ago, raising was very much a part of the discussion. in terms of the class we are in, of our racing,ip and he thought that was the place to start. matt: any idea on who will drive his car? i are out of the equation, i guess that means we

will have to find someone else. it is too early, but you would obviously expect us to be talking to drivers. there's no shortage of drivers lining up. we see american drivers here? you were the first to win the american championship at lemans back in 1966, and it would be great to see that happen again. bill: it would. in fact in 1966, we won, and we want for the next two years in a row. it was a great run. we are running two circuits. one in america and one over here. racing is exciting, and obviously, everybody is pumped up about it, but it is a very endeavor.tensive why, from the business angle, do you pursue that sort of thing? what we're doing and his vehicle, we can translate into other vehicles. you have probably noticed that

we are doing an ego boost -- e thisost engine in vehicle. all of the aerodynamics that went into this vehicle will make its way into mainstream projects. really everything that we do with raising is developmental. matt: i wonder how much it works as a marketing tool. racing viewership, i think it in a lot ofn leagues. is it still a good marketing tool for four? -- for fod? bill it is. it is good for the brand: image. people who like raising pay attention to the manufacturer. yes, it is important, but it is also important for our own employees. our dealers love to see if the beating. matt: you started this because our on goal, henry ford

ii, was very close to a merger that went sour. i wonder if you have talked to any members of the agnelli family about a merger lately. l: john elkin and i are friends. i have known john for years. i like him very much. we are very happy where we are. there is a very capital cars.ive issue developing don't you think consolidation needs to happen in the auto industry? : people have been talking about this since i joined the industry back in the late 1970's. people predicted that within 10 years, there would be to european, two american, and to .sian car manufacturers not only did that not happen, we

have many more manufacturers than we did 10 years ago. logically, yes, but frankly, even if you merge, that does not guarantee anything. you still have to take action to take capacity out. matt: let me ask you about building vehicles with aluminum. from 2005-2006, was your first experience putting aluminum bodies on performance cars. now you are putting them on all f1 50's. now, they are selling like hotcakes, but you cannot make enough of them. have you gone back to maximum production? news it is a good news-bad problem. the bad news is that we cannot fill inventory because we are selling them all. we're now at full production at assembly plants.

we do have great demand which is fantastic, but we are racing to keep up with them. matt: speaking of racing, i wish you the best of luck. i will send you my application for one of the driver spots in the 2016 lemans. take you very much. thanks very much. still ahead on "bloomberg market day" and executive shakeup at twitter.

scarlet: welcome back.

i'm scarlet fu. pimm: im pimm fox. let's go right to julie hyman with a look at what is going on in the markets right now. housing. julie: there are a lot of housing things simmering today that i want to talk about. one of the things we can talk about is the 30 year rate, the mortgage rate. take a look at my bloomberg terminal. here it is. reaching 4% for the first time since mid-december. not surprising, given the move we have seen and 30 year treasuries. still, notable, given that the housing recovery has seen some dips recently. for historical standards, but if you want to buy a house now, and you did not

one month ago, you will see a different mortgage rate. something else we have been watching is the underwater mortgages. this is something that stan watching has been closely. this is something that he says he is still quite concerned about. i get, even though it is lower than it was, it is still 15.4% of homeowners that owed more than what they owned. those are couple things we are watching and housing. related to housing, take a look at restoration hardware. today -- onoma restoration hardware reporting that comparable sales raise 50% and williams-sonoma getting an upgrade over at oppenheimer. scarlet: thank you so much. the topu will look at stories crossing the terminal

right now. investigators -- investors not rising investments. costolo, stepping down, he will be replaced by jeff dorsey. and, he lost the presidential election, but mitt romney is still a big republican draw for hopefuls. candidates will be a part city, utah for romney's third annual retreat, bi bringing together politicians and leaders in business. be sure to watch bloomberg television at 5:00 eastern time. shares of twitter are higher this morning after ceo dick costolo's resignation.

the company struggling to live up to its hype. costolo will remain on the board of the company and for now will be replaced by twitter cofounder, jack dorsey. let's look at the challenges ahead with david kirkpatrick. david, always a pleasure. what could jack dorsey bring that mr. costolo does not have? david: it is a company that is a little bit directionless at this moment. jack brings the founder vision. at least temporarily. there is a lot of con fusion and myths ofonfusion and the origins of twitter. jack is really be most definitive creator of the product. he may be able to figure out where goes better than others. pimm: what is wrong with twitter now? burdeneditter has been

with false expectations since the beginning. facebook-scale business. that is an accurate discussion. force, it is vastly more important than as a business. the challenge that a leader house, whether jack or someone else, is to somehow make the withess opportunity lineup its cultural influence. i don't think it is impossible. on the other hand, it will never towards a system like facebook. scarlet: that makes the delicate remaining of the stock will be inevitable. always thought it was overvalued from the beginning. 's first task is to reset expectations, and tell wall street that their

are high.n david: you cannot talk down your investors. scarlet: that is a dilemma. it is so pricey that i can't see why anybody would pay that kind of money for it. pimm: explain why you said that twitter would never reach that 1.5 billion users -- users. socialtwitter is not a network. it is a broadcast service. pimm: similar to whatsapp? similar tos more instagram than facebook. instagram was a photo version of twitter. i do not think -- i do think twitter is a wonderful service that people like us use with great passion and tremendous

affect and valuable, but on the other hand, it is not a mass user service. the changes that will be necessary to attracted to ordinary users on the skill of billions is vast. scarlet: jack dorsey is coming on on an interim basis. rapper -- former current rapper, really -- tweeted out yesterday that he is itter.to lead tw that generated a lot of replies. that heon replying should at least be the head of the audit committee. who is most qualified, or what kind of ceo would be qualified to lead tweeter? david: like i suggested before, i am a big fan of jack dorsey. i think one of the big advantages that facebook has

always had is that it was led by a founder whose vision was paramount and clear. even when it was wrong, the personality made a big difference. it allowed for correction to happen quickly. twitter has had leadership chaos almost since the beginning. it needs continuity. jack may be able to bring some of that, but besides that, there may be others who could beat it, i am not sure who. "bloombergg up on market day" deep space warning us about the sun's ross.

scarlet: they are called solar explosions. we are talking about ejection from the sun that head out into the solar system, that one day earth's electrical grid. pimm: now, and satellite is

headed towards the sun to serve as an early detection system. one thing that attracted me to the story is that we have become so dependent on satellites that anything that could disrupt the grid -- scarlet: modern life essentially. pimm: could be affected by the of options from the sun. we have known about them for some time. to identify always them with an early warning system. severen out that neil has decided that maybe you need to take various points on the sun, collect information, and present the picture that could be an early warning system, as much as 24 hours in advance. you can prepare the grade, the system -- grid, the system.

scarlet: how precise of a warning system can this be? say, or the americas. pimm: it can be precise. if you are going south to north with the magnetic material, no problem. if you're going north to south, big problem. it is not just the size of the magnetic abruption, but also the direction. scarlet: fascinating stuff. i will be back at 2:00. and any case, have a great day. pimm: still ahead, an expert on mers.

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or is it foyer [pronounced foy-yay]? fast in the hallway. i feel like i've been here before. switch now and get the fastest wifi everywhere. comcast business. built for business. pimm: welcome back to the "bloomberg market day." i'm pimm fox.

obama made a rare trip to capitol hill this morning to lobby for democratic votes. they were reluctant to vote for the trade reservation -- legislation. they say it will be a job killer. he is taking the and usual task of siding with republicans. >> the question today is really pretty simple. is america going to shape the global economy? or is it going to shape us? give the bill would president fast-track authority to negotiate a trade deal. notther words, covers could make an amendment to the agreement. there could only be an up or down vote. the news today from the consumer confidence report shows that there is a stronger job market.

the saudi royal family downplays reports of strange relations between the united states and saudi arabia. there are reports that the government of saudi arabia is unhappy with the obama administration. d says the king and obama have a strong relationship. waleed: he is mature, and very businesslike. the relationship is very good. salamonst month, king stayed away from a meeting in the united states, sending instead a prince. and europe's highest court ruled that people have the right to

decide-- the right to when their name will appear online in a search. criminal convictions can remain in place. those are your top stories from the morning. the markets are closing right now in europe, so for the very latest, let's go to mark orton in london. mark: european stock markets finished the european week higher. where is the green on your screen? greets --n is that greece will not be able to reach a deal. look at this on friday. down by almost 6%. these were the three big gainers across europe on thursday. look at what they did on friday. the national greece bank is down. the breadth and depth of the decline is currently evident in

this chart right here. all of the industry groups on the stocks 600 -- on the stoxx down. isnwhile, the german public turning against supporting a greece. the advisors report already discussing how to deal with a greek default. this all amounts to a recipe for absurdity in european asset markets. there is the stoxx 600. it is on stage and was on track for its third consecutive weekly to sign. this is the longest track down since october. it is all about greece. back to you. pimm: thank you so much, that orton and london -- in

london. we are still waiting for the house to vote on the trade deal and president obama has put all of his credibility online for the vote. and the ceo of the wholesale start up box is providing fee tuition to children of his employees. how is he going to pay for it? we will explain, coming up. now it is a mystery violence -- virus that has south korea on edge. peopleinfected 126,000 in south korea and at least 11 people have died. let's look at the threat with dr. anthony found she, he is the director of the national and to -- director at the national

faucci.e -- anthony he is the director of the national institutes of health. uci: occasionally, a infected and get go someplace else like to the u.k. or someplace and spread the outbreak. generally, the outbreak is very, very restricted. what we are seeing in south korea is very unusual. this is the largest number of any cases outside of any middle eastern countries. there are over 126 cases and 11 deaths. it is a very serious respiratory illness. that is the bad news. mortalityigh case of

rate at between 30%-40%. is somewhatg that encouraging is that it is not readily spread from one person to another. essentially, all of the cases in south korea were directly related to exposure within a health care setting, either within a hospital or a clinic. it is not something that spreads readily within a community. we have to make sure that it stays that way. , explain whati you mean by a health care system. there was one particular infected patient, and i wonder if you could describe what happened? dr. fauci: the original outbreak in south korea occurred from a 68-year-old man who had traveled to a few countries in the middle east, came to south korea, did not realize nor did his physicians realize that he had mers. he went from one doctor to another and one hospital and one clinic to another and

unfortunately, they were not prepared for the isolation while he was in the health facilities. he spread the infections to other people who then spread it to other patients and even health care providers. i'm -- what i mean that that is what amy when i say that it was in the health care providers. he did not go out into the community and spread it within the community, what it was within a health care setting. so far, which is a very large amount, considering. pimm: dr. fauci, is this at all similar to the sars outbreak? same broadit is the category of viruses, it is called the coronavirus. as you may recall several years ago, when sars emanated from china to hong kong and then went out to other countries and the intoof the world and canada, what you saw was an

explosion of cases that was at much may greater magnitude than we saw here. their words -- there was about 700-800 deaths. reason why i keep saying that when we have to keep an eye on it, we have to make sure that it does not all of a sudden develop the capability of easily spreading within the community, which thus far, it has not. pimm: are there more people who are at risk for contracting mers? indeed, people who have underlined conditions, such as diabetes, underlying heart disease, and other kinds of conditions. this is a highly lethal infection when you compare it to other respiratory infections. the case fatality is around 36%-37%, which is quite considerable. ,imm: which is a super spreader

what kind of person would qualify and what kind of restrictions would need to be placed on their travel or their movement? superuci: when we say a spreader, that is someone who could get into a hospital and spread it very quickly, within a hospital room or within a ward or within the health care providers. so that is a terminology that describes someone who could easily catch the virus from them. have mers, youou should be under an isolated condition. and people who have come in contact with mers should also be under an isolated condition. you don't want them to go out and come in contact with other people and infected him. in korea, the koreans are doing a good job at isolating the contact of people who having clinical -- who have clinical mers. pimm: is there medication, is there an antidote?

is there anything that the medical community can do? is just care,re you can provide oxygen, but there is no specific medication that is directed against the mers virus. unfortunately, there is no vaccine. we are working on both. we are working on antivirals that one can counter mers, as well as a vaccine, but that is not something that is going to be available tomorrow or next week. pimm: i want to thank you so much for joining us, that is dr. ci, a director at the national institutes of health. a big splasho make with a lot of money in regards to rose a and sparkling wine. ♪ -- rose and sparkling wine. ♪

the: welcome back to "bloomberg market day." i am pimm fox. let's take a look at some of the top stories crossing the bloomberg terminal right now. a federal appeals court denied a request by the telecom industry to put the net neutrality rules on horde. -- on hold. the means it would regulate internet in the same way that it would regulate the telephone company. and a new report from zillow shows there is still somewhat weak areas in the housing market. areof u.s. homeowners underwater, that means they own more on their mortgages than

their homes are actually worth. that is less than half than what it was three years ago. still, zillow says that a healthy housing market would have no more than 2% under that rate. and today is the dbu -- today is the debut of "jurassic world." ticket sales for the opening weekend are expected to top $125 million. those are your top stories at the moment. now last year, exports of rows wine increased 29% as americans fell in love with the dry, pink colored wine. much to the disappointment of some consumers, there was a rose shortage last summer. that means that media stars are looking to make money on a solution. >> first of all, pimm, do you know the fat jew?

pimm: i have heard of him. >> he is behind another social media sensation called white girl problems. anyway, it is a really interesting story about these two guys who have a viral following doing a and media stunts and it is called white girl rose. i was not sure if it was a joke or not, and that led to this conversation. have a look. hamptons,mmer, in the there was a rose shortage. people were running into the streets and screaming, there is not enough rose. people were in hordes and screaming about it. we sat back and watched as it all unfolded. we said never again. >> so you wanted to make sure that this would end? josh: we just decided, why don't we make it? >> we just decided, with why

don't we do this? the thing is, we had never done it before. josh: 100%. >> so you guys are serious about this, how much have you actually made? david: our first order is 130,000 bottles. >> wow. by next year we want to have 100,000 bottles sold. suggested retail is $40.99 at the store -- $14.99 at the store. you want to make sure that it is midrange, you are not lowballing, it is not a dollars $8.99 like you would find at trader joe's. >> tell us about the name, white

girl rose? we are talking about something where the shortage was a white girl probably, and we want to talk about how people can make fun of themselves. >> and you are also trying to market to man because there is -sae" movement?ro josh: it is a state of mind. david: it is pansexual. exactly, and it is all about embracing this movement. "o we embrace the "brose movement. >> so we are talking about drinking this drink. have you tried it? pimm: do you have it? >> i have some under my desk. pimm: who grows it?

i would imagine that they put it on the label on the bottle. >> yes, it is white girl rose, but it is on the bottle. pimm: is it based in france? >> no, it is based in the u.s. pimm: in the u.s.? ok, i just wanted to make sure, i just wanted to check. >> we will have to try it. pimm: ok, we will, i will have to go and get some ice. you can days come exchange five u.s. dollars for 175 quadrillion zimbabwean dollars, but not for much longer. details ahead. ♪

the african nation of

zimbabwe is looking to stabilize the economy and curb inflation. the solution? just take the zimbabwean dollar out of inflation. the currency has surged 500 alien percent -- 500 billion billion yes, 500 percent. betty liu joins us with more. betty: incredible, right? if you look at those numbers, you can understand why the zimbabwe economy was under a recession. it is a multicurrency system that they have there, so they actually use the u.s. dollars and the south african currency as the currencies of commerce, but at the same time, they kind of phased out the zimbabwean dollar. pimm: this just kind of makes it official? betty: yes, this just kind of makes it official. since then, there inflation rate

has fell, and since they have allowed the race to circulate the dollar of the south african currency, it seems more under control. as you say, this is a way that they kind of say, we are at this point, we can now make this official and take this out. but as you mentioned, five dollars for 175 quadrillion zimbabwean dollars. i couldn't even put that many digits in my calculator. the peopleis to get to actually exchange their zimbabwean money for u.s. dollars and they can settle more on what you can exchange? betty: right, and i believe that they automatically do this, i believe they automatically get five dollars for that. so like you said, it encourages people to turn that currency in and we did it out of ed itystem -- and we

out of the system. pimm: something similar happened in panama? betty: yes, usually a smaller country with a very small economy and the company -- a country that has experienced some kind of turmoil. pimm: and now let's go to julie hyman with a look at the markets. we have been seen it declines across the board. it seems as though there are concerns in europe about the greek negotiations and it has affected u.s. stocks as well. the dow is now down about 120 points. insight experts join me now, -- our options insight expert joins me now. when something is so underwhelming lee believed in the market, how do you get an edge in terms of trading that view the volatility is it going to pick up? volatility, we believe,

is going to be short-lived. yes, we did see some volatility in these big options. yeah, there was a big buyout in july. and interestingly. there was also this [indiscernible] there was an upside and others taking the day, and we're going to go back to this once this whole thing is over, which looks like it might be very close to some point. as a result, if you are putting on some big hedges or buying options, i think our view is that you have to be very quick to monitor that. otherwise, you are going to see big stuff back right now. julie: just very quickly, why do you think any volatility will be short-lived? will bebecause it moving and a narrow range, and the tips are not sustained, so if you see, the volatility will

last short amount of time. julie: the fed will come out with its next results next week, and what is your production? anshul: [indiscernible] but the reason i am bullish on all, theirst of technical chart. if you look at the chart, it started to take off from the narrow range over the last six --ths between a 65 and 180, $155 and $180. we are talking about [indiscernible] it is very topical in that sense. it will have some kind of lowered effect on international data, and of course, number three is that the company is

30 yeartrong, they sold and 50 your bonds at 4% and 4.5%, so this could fuel further upset to the stock if they start buying back stuff. julie: i should start mentioning that the company will have a non-pretax charge this year related to pension accounting at the last quarter. is that related? anshul: initially you saw some sort of reaction to the downside of the stocks when the stocks started to recover, but also, the stock exchange is trading overall. julie: stay with us, more bloomberg -- more "bloomberg market day" is next. ♪

it is 9:00 a.m. in san francisco, it is 12:00 p.m. here in new york, and at night in hong kong. betty: and we will look at what

is behind the move for twitter and the shakeup as the ceo stepped down. move and obama prepares to forward on the trade agenda, and the house will move forward on a vote in the sour. betty: -- this hour. goldman dives into high-speed trading. ♪ pimm: good afternoon, i am pimm fox. betty: and i am betty liu. let's take a look at how the markets are trading here at midday. equity is taking quite a dive. the dow jones average is off and there is some pessimism about ge