rare visit, house democrats should done a bill that would have helped him back track negotiating power. we will have more of our exclusive interview. scarlet: jack dorsey is getting his steve jobs moment. how they are taking to the twitter management shakeup. good afternoon. alix: we want to get straight to a look at the markets. we are seeing is still up -- a selloff. it appears like we're looking at a risk off day. and thehe price index

expectation for wages also increasing the most in seven years. that is the inflation chatter coming back into the market. -- weighing on all risky assets. scarlet: we are very little changed. the dow is up when one of 1%. the s&p down. we have not done -- gone anywhere for the week. alix: the worst performing sector is grinding lower. scarlet: we need to keep an eye on the dollar. what is interesting here is that the euro was weaker earlier on. after the german chancellor said the euro's strength is making policy changes difficult for him dated countries.

-- and dated countries. i think she means greece. the euro started to rally. more dollarme weakness because there is so much uncertainty with greece and the supposedly does now sunday. they have to pass some kind of deal to give the parliament of euro area countries time to pass the bailout approval before the end of june. we are 48 hours away. we are seeing yields push their way higher. they are flat. 2.3% on the tenure. if you look at expectations for the market you see a big jump in where the feds rates will be in the next six months. you have seen that continually move higher since the beginning of jan. -- june. scarlet: let's go on and take a look at the stories making headlines at this hour.

handing president obama a humiliating loss. 302-126 was the vote. president obama made a rare trip to capitol hill to make a personal appeal. displacedrejected a workers paid program. to send the able bill to president obama. nancy pelosi: i will be voting to slow down the fast track to get a better deal for the american people. paychecks, better infrastructure, help the american people fulfill the american dream area -- dream. the house will vote by tuesday on the trade adjusted provision and if that prevails

the fast-track trade vote would not be symbolic brady would be binding. still a chance this could go through. mitt romney is still a big draw for republican hopefuls. five prospects are in park city, utah for romney's annual retreat. invited but is finishing up a european tour. and a private gathering with private donors. watch bloomberg television for mr. romney. jamie dimonpeech also often -- offered to meet with warren. i understand how they

make their money and that is what they don't like about me. the massachusetts democrat has a prominence as one of wall street's fiercest critics. this may be a steve jobs moment for jack dorsey. twitter announced dick costolo is leaving and will be replaced by dorsey. dorsey was one of the company's cofounders and he is returning to a job he was put out of in 2008. just as jobs was returning to apple after he was forced out. we spoke with the saudi prince in the ipo.sted he said the copy would be a force to a record -- reckoned with. have a billionto dollars of ebitda. we have [indiscernible] doubleclick.

are integrated well they are forced to reckon with. scarlet: he says he believes twitter should remain a public company. consumer half finance risen more than forecast. get it to the stronger job market. scarlet: prices at the wholesale level rows of the fastest pace in the most three years. they were pushed higher by a sharp jump in the cost of gasoline. , coree of increases inflation remained moderate. the index was up by .1 of 1%. that is a look at the top stories. coming up,. alix: weighing in on the 2016 presidential race. when he has to say about scott walker and jeb bush. scarlet: people have been binge

watching the new season of "orange is the new black." what is the cost of keeping an inmate? we crunch the numbers. the stories and much more coming up in this hour of "bloomberg market day." dish sitting down with us. asking him what is going on about this talk of a possible merger with t-mobile? >> i think there are a lot of positives to that. if there is willing participants. they certainly have done a fantastic job in being the start company. jon leger and his team have captured the imagination of the theic in terms of attacking pain points we have in the wireless industry.

it fits in that sense. obviously their growth rate, they will need more spectrum. those things make some sense. scarlet: betty joins us with more. what is the case for t-mobile to get together with dish? words,there are two wireless spectrum. t-mobile is the fourth largest wireless carrier in the united states and there's almost a love affair going on between john ledger and charlie ergen. they have nothing but nice things to say to each other. on 50 billionng dollars ofon wireless spectrum that he is not using. it is a golden egg right now. how is he going to be able to put that to use? it is very difficult as a satellite company to turn into a wireless company unless you join forces with t-mobile or others

have speculated google may be an option. they want to get into wireless as well. maybe amazon. let's show the shares of t-mobile. they have been trading up and they have been giving this speculation but today they also take tire. ergen said.at alix: how would that be? do they like each other? that is his persona.etty: ergen is like the renegade. he is not confirming any details

are commenting about it. the reports are that he would become chairman of the merged company and john ledger would ru n it. charlie ergen is known for a unique management style. there has been a lot written about the best company. he is micromanaging, signing every a check. -- paycheck. some might say he is tough and kind of a mean boss. there are reports about how tough it is to work for charlie ergen. multibillion dollar company. he is one of the richest men in the united states. he has done many things right. he says that in the early days, he used to sign every single check out of dish. now he only signs the major

ones. i asked him what check did he just recently sign? i think it was to bloomberg for hundreds and hundreds of thousands of dollars. i do not know what it was for. i am sure it was to disney. the reason he signs they: checks is it gets him a handle of what is happening. it used to take him a couple hours but he learned more about the company and those two hours than he would have been several days. that is the streaming service of dish that they launched in figure eight. he would not confirm any numbers. sometime in the summer we might start hearing this report these numbers. channels, $20 for 20

him a they have something like 250,000 subscribers now. there have been some growing pains. he admitted that. certainould not stream programs. confusion about the product area the channels they are getting. he said we are in the early days of this. there are so many competitors. apple tv, amazon. there are so many of them. here is what he said about apple tv. are still in the first inning. i do not think the second inning is until next year. there has been room for multiple entrance and we will see multiple entrance including the cable industry at some point in time. he is hoping that sling tv becomes one of the winners. thank you.

you can watch more of the exclusive video with charlie ergen. coming up, we hear from ohio governor john kasich on who he thinks the front runner is. of all the presidential candidates. ♪

scarlet: welcome back. are you watching today? a couple different stories come i i create -- caught my eye. take a look at the xhb.

it is up .2 of 1%. what is notable is what has happened to the 30 year mortgage rate as measured by the bank rate. not really a surprise that it is taking up. when we talk about 30 year rates and rates that have been moving higher recently. it means something very different when you're talking about a mortgage rate that hit main street. here is the past year for the bank year and your -- you are seeing an uptick. above 4% for the first time this year. notable that we are seeing that movement. it goes back a few years but nonetheless, that puts it in perspective and reminds us that rates are still relatively low. there is something else that is concerning to some housing economists in the market and that has to do with so-called underwater mortgages. people who own more than their homes are worth. that number has been trending

lower since the housing crisis. he is concerned about this number which stands at 15.4%. the healthier market looks like 1% or 2%. janet yellen is not concerned, saying the number will go down. this is something some housing economists are watching and they are concerned. i wanted to bring up a couple of movers. --toration hardware's hardware and williams-sonoma. oppenheimer said it will benefit from a positive housing backdrop. there are some divergent opinions. i went to bring -- wanted to lumber liquidators.

some speculation about a potential takeover. it was one of these things that came up on twitter. shares did react. it is interesting on housing here. you do have a stronger economy and wages going up and there are still questions about the recovery that we are or maybe not seeing and housing. a residential investment gdp becauseor 2% to it is bumpy and will continue to be. are strong create we are not seeing single-family. thank you so much. looking at housing. president obama was not able to convince his fellow democrats to s.ss trade adjustment

the house will vote again by tuesday saying that the president has all we can to focus on democrats. joining us now is john heilemann. a votent obama has said against trade is a vote against me. has his party left him? we had a little commotion in the studio. the president said a vote against trade is a vote against me. does that mean his party left him? john: it does. scarlet: he has until tuesday and he could not get it done in the last few days. john: he does not. scarlet: what do you anticipate? john: the democratic party does not want it. this was a dramatic show of no confidence in the president's trade agenda generally and more specifically for this trade deal. there is going to be a lot of moving pieces and attempts to

put humpty dumpty back together again over the course of the coming days and weeks. i do not see any way to do it. scarlet: you have some vague interviews. romneyark is at the policy conference. he has interviews with and another interview with mitt romney himself. the 2012 republican nominee. he will talk about presidential policy -- politics in 2016 with a guy who still matters a lot in terms oflican world in the backing of his donors and supporters. scarlet: how much weight does he have when the core is different than when he can offer? about -- whatsay you want about his campaign. he raised a ton of money. is connected to that

donor base still. his finance director who has been on this show before is still up for grabs. allowed of candidates would like to have him and his rolodex. there are still a lot to play for and that is why a lot of republican hope goals are there -- hopefuls are there in deer valley this weekend. ahead, it cost the u.s. $81 billion to look after prisoners. forreak down the numbers people involved in the u.s. prison system. ♪

has releasedlix season three of "orange is the

new black." cost $4 million to make in that barely makes a dent in their content budget. it did get us thinking about the cost of keeping criminals behind bars. nearly $81 billion. this was the amazing cost to keep this many people, six .9 in jail, onrison, parole, and on probation. taxpayers foot the bill. on average, that is $257 from each person each year based on a population of 315 million people. if you pay taxes for the next 50 years that is more than $12,000. not yet accounting for inflation. here is another big number. $31,286. this is the average cost to keep

one person in prison each year according to the independent nonprofit vera institute for justice. break it down by state and we find a wide range. the cheapest was in kentucky at $14,600. texas was not that far behind at 21,000 per inmate but on the west coast the california inmate costs $47,000 in the most expensive right here in new york. at $60,000. some of the reasons for lower state costs include overcrowding. and higher prison rates for minor offenders. they do not need as many staff to watch them. all that relates to the biggest case of the cost high. health care, pensions, and insurance. more than $4.2 billion according to vera. the u.s. puts more people in prison than any other country in the developed world. for 100,000 according

to the national research council. followed by russia, ukraine, poland, and turkey. america and incarceration nation? that raises the question for next time. the price of fictional prison is a dollars $.99 a month. that is my netflix subscription. alix: you love it. scarlet: it gets better. season 2 is good. alix: i am saying goodbye to you. scarlet: have a great weekend. much more coming up on "bloomberg market day." we will talk with congressman sandy levin. ♪ . . . .

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let's get right to the stories on the number of terminal. south korea confirms its 13th mers death. there is widespread fears and rumors. more than 2500 schools remain closed. honda motors is setting aside to cover theillion million to cover the cost of the airbag recall. and now to a bloomberg exclusive. ford is announcing today that it will return to le monde, one of the most prestigious air races with an all-new super that goes on sale next year. matt miller spoke with ill ford about the correlation of racing and the product line. noticed werobably

are doing a ego boost and their aerodynamics that went into this vehicle. what we do with racing is developmental for the rest of our product line. alix: ford said his company is quote happy -- is "happy where we are." and youtube gaming will act as a video hub that will interact with live people as they try to battle aliens or try to score on a virtual soccer field. channels from publishers and other content creators. that is a look at some of the stories making news this friday. coming up in the "bloomberg market day," fast casual chain stop istock is -- wing

soaring and twitter is in shakeup mode with the departure of ceo dick costolo. viewing --s trouble brewing in the junk-bond paradise. all of that and more coming up on "bloomberg market day." house democrats delivered a stinging blow to their own president today, and blocking today, blocking president obama's trade deal. hill.cook is on capitol peter? and i amat's right, joined by an individual who spoke against the president today. tell me what your message sent to today?

-- sent to? day? partnership major that involves 40% of the gdp and we need to get it right. is not on the right track we don't wantso to fast track it. this is basically an issue about policy issues in this major negotiation. we presented lots of ideas and lots of different issues, and so far, like currency, it is kind of taken off of the table entirely. there were many kinds of issues where we were not satisfied where they were. your president came and met with house democrats this morning and said, trust me on this. this deal is that her then sandy levin and others have been

suggesting. the vote on the floor was overwhelming. so many democrats opposed their own president. rep. levin: we looked at the labor rights issue, worker rights. at this point, if people try to form an independent woman get thrown in jail. a woman was thrown in jail for trying to form an independent organization. vast majority of workers in the private sector are under what is called protection agreements, which they have no part of, and it affects their wages, 1/5 of their wage on average compared to the u.s., and they compete with us. so they want a traded treatment -- want a trade agreement as is -- that is good for this country. peter: the president said we will have a higher labor standards and environmental

standards, and if democrats stand with me and get this over the finish line, you will see something good for the u.s. economy. rep. levin: the author of the may 10 proposal was charlie , and there was important language, but we worked to have peru's laws changed before we voted on them. we made sure the language was real. peter: are you asking the white house for the same now? do you think there is a way to sit down and bolster what is in the transpacific partnership to your subsection? rep. levin: i have to be careful with what i say, because some of the discussions have been classified. but right now, vietnam and mexico, in terms of worker rights, there is no plan.

we worked endlessly to get some kind of a currency provision. how many americans have lost their middle-class jobs because japan's currency manipulation in the 90's and china in the last 50 years? million or even 4 million middle-class jobs have disappeared because of this. until it is not on the right track, we don't want to fast track it. we lose our leverage here in the congress. just look outside, you see the capital. to losewant the capital its important role in these important trade negotiations. this has to be the right one. peter: so republicans who are with the president on this, the speaker, made a procedural move that will allow effectively the house to reconsider this trade adjustment measure as soon as tuesday and perhaps we are right back at this again.

how confident are you that the democrats will remain unified again? rep. levin: the main issue remains related to this process. is used as a bargaining chip to try to pass the fast-track. that is what the administration of the republicans were up to. peter: are you going to try again? rep. levin: i know, but i want to retain our role in this negotiation with these policies and trade agreements that affect middle-class jobs throw this country. i hope what happened today will spark even more focus on the substance of this, because fasttrack is fasttrack of a major negotiation product.

so why should we fasttrack and loser leverage? -- lose our leverage? peter: are you ok with the notion that today, you challenge your own president and you won. you may have turned him into a lame-duck? rep. levin: no way. tradediscussions on issues and tbt specifically, these discussions have been going on for a long time, both rightly and personally, if i might say. we are not satisfied with the way that tpt is going, and sometimes we have classified refuse, so we can't even tell you when you ask me what is being negotiated. sometimes i will say there is a plan but i can't tell us what is in it. sometimes i say we are talking. right now, if we asked anybody around here, where do you think the negotiations will end up on the key issues, medicines,

currency, i'm afraid is out, environment issues, worker the investment state issued that allows investors not to go through the courts but through an arbitration panel, if i were to ask any member where this is going to end up, no one could tell because we don't know. this: so it sounds like at point, you and the president still are some distant apart -- distance apart. do you think you will reconcile it by this time next week? rep. levin: i think the word was that we want to keep working to get a trade agreement that has broad bipartisan support. that is what i have been working for, and often we achieved it. that today you saw the vote. it was 28 democrats out of 180. my aim was always to get at least close to a majority of

democrats to support a bipartisan bill. this falls terribly short. much better not for us as democrats or republicans, that for the american people who are concerned about trade policy for good reason. jobs, not a lot of only because of trade, globalization, but trade is one of the sources of the loss of jobs in this country. we need to get this right. congressmanight, sandy levin, making a vote on the hill. much more to come from here on capitol hill, even a possible vote on next tuesday. alix: coming up on the "bloomberg market day," we are going to hear about how major investors are dealing with the twitter management shakeup. stay with us. ♪

alix: welcome back to the "bloomberg market day." i'm alix steel. we want to take a quick look at the markets, and we are only 15 minutes from the closing bell. it's hard over -- let's head over to julie hyman. it is yes folks, officially a summer friday. the volume on the major averages is down significantly compared with the 10 day average of the s&p 500, so if it deals like there is not that much trading today, it is because there isn't. so yes, even though we are seeing that selloff today, it is something we need to keep in mind. i want to look at energy and one

segment in energy in particular. the s&p energy index is the worst performer today. it is not just the normal oil and gas stocks we are seeing a fall today, it is cold as well -- it is coal as well. companies like peabody energy and arch coal, all of them are falling today. arch were actually at record lows, and we are actually seeing them at a six year low. reviewing, they are whether these companies will have to take out additional insurance. self bonding, are so-called, which essentially means that they can insure themselves, which is a less expensive option in the event of losses or eventual bankruptcy. that is something that investors weighingng today -- today when looking at coal stocks.

you are looking at here a couple of different pricing models for met coal, that is metallurgical coal, it is coal used to make steel. this is from a bloomberg intelligence, and they are looking at two different measures of met coal. basically you can see it has gone down and down and down. natural gassee prices going down, and you can compare that with coal, so that has hurt the industry as well. this does not provide a very good outlook for coal, and then you put this regulatory risk for insurance on top of it, and that created big drawdown. norway, they say they are not going to be investing in coal stocks as well. so there is that angle. thank you, good stuff. that was julie hyman. stories and top

headlines from the top -- here are the top headlines from this hour. his blatter announced resignation from thief last week -- from fifa last week. polar bears have a new addition to their diet. dolphins. for the first time, scientists have seen polar bears in the norwegian arctic eat dolphins who were forced north by changing waters. global warming is changing the relationship between species. dinosaurs were warmed back to life today, but only in theaters. it is the opening of "jurassic world." topet sales are expected to $125 million. that is a look at some of your top stories this friday. coming up in the next half hour,

bloomberg west and the anchor emily chang, taking a look at what we are going to be talking andt, which is twitter, emily, thank you for joining me. shares of four twitter rise, and then what happened today was sort of, oh maybe he is not going to be doing anything different. said the vision and the product strategy is not going to change, and so a lot of people thought, why get a new ceo? the news on twitter is still very much in question. andt down with john doerr we talked about the state of a venture capital industry and in an exclusive interview that is going to air next week, we covered a lot of ground. we are going to have a clip of that coming up on "bloomberg west." named someactually

names of people who currently have jobs, so it is really interesting to hear his bots there. we are also going to be joined by former square ceo keith rabbi , so he knows how jack dorsey thanks and if jack is considering to return to the helm of twitter and how this would work. it will be interesting to hear others lots, as well as information. so it is very interesting to have conversations with those guys and hear about what john doerr had to say. a lot of names were thrown out there, alix, so we are going to #out. -- have to hash that out. the: and this raises question, what are the qualities of the new ceo that he would have to have to address issues like this? emily: on the call last night,

jack dorsey did talk a little bit about a new ceo, and there is a search for people on the search committee, peter curry, and board members are going to be looking inside and outside the company. but take a look at what jackson is he wants in the new ceo. huges is going to be a contribution to the committee, somebody who is looking forward to the future. jack dorsey will probably qualify for somebody who loves the product every day, and a lot of evil out there as well as a potentially, so we are going to talk about who that potential person could be. alix: tuning in, i definitely will. that is emily chang joining us from san francisco. we are still looking at triple

digit selloff coming off the market today, and we will also look at the high-yield market, coming back after this. ♪

alix: we are going to turn out to global markets. saudi arabia is not just flexing its might in the region, but saudi arabia boosted oil production to the highest in three decades last march. earlier today, billionaire saudi lawaleed talks about how this is working. alawaleed: they are accepting the fact that they are fracking in northern production

states, it is so high, and the united states last month took over saudi arabia by producing more than 10.3 billion barrels -- million barrels a day. that came to the surprise of all. saudi arabia will continue and it is just one part of that equation. we decided to keep production the amount of oil used by people in countries on a daily basis. >> is saudi arabia comfortable with that? is that the right price? alawaleed: it has to be based on supply and demand.

i think that price at $60 a it'sl, maybe [indiscernible] whereby the united states will become economical. supplyiets, [indiscernible] otherver from any political factor that may be involved in the project. >> you are not concerned about shale oil coming out of the u.s.? waleed: shale oil , so like -- is like coal you have to add it into the system of the oil industry. we have to keep our eyes open to the oil production because after

seeing thenow we are barrel at $60 and the market is not happy between the consumers and the buyers. highness, isyal there any concern in the royal family the impact that this environment is having on the country's finances? aleed: one of the previous governments in saudi arabia were concerned about the opening of the valve of expenses, but right now with the new administration under the leadership of king salon -- king bring russianwill expenses to saudi arabia and lowering equalization. and said, it is a time bomb

we have reserves of $800 billion , and they may be exhausted within just a decade or so. aleed.that was prince alaw we are minutes away from the closing bell. coming up on "bloomberg market day," we are going to look at greece. the clock is ticking for the country to reach a deal or go to default. stay with us. ♪

alix: we are just moments away from the closing bell. this is the "bloomberg market day." i'm alix steel. ♪

[closing bell] alix: you are looking at an smp at its biggest weekly loss since the end of may. youks relatively weak, but are looking at a triple digit loss for the dow. the s&p looking at its biggest weekly loss since the end of may. two words for you: inflation and that expectations. -- bad expectations. that was three words for you, i am not going to live for you. basically a risk off day because of problems across the board. treasury prices were down, the dollar was selling off, it was all across the board. >>