erik: the president of ukraine on whether the west is doing enough to contain vladimir putin and what the prices -- the price has done to the u.s. -- to the economy. scarlet: good morning, i'm scarlet fu. erik: i'm erik schatzker. treasuries in the dollar are gaining, stocks are falling. a lot of this has to do with what is happening in greece. 45 minutes of talks and they broke down over the weekend. scarlet: this was supposed to be

the day of talks where everything got resolved and instead we pushed it off to thursday where we see whether greece can avoid default. this explains why u.s. stocks are tumbling. euro starts off by 1.7%. the dax in correction mode. index, losing ground for the second straight day. erik: other things playing a ,ole, empire manufacturing thanks index of manufacturing activity in the state of new york came in underneath economist expectations. industrial production, the same thing. a negative rating on industrial production when economists weren't looking for a slight positive. scarlet: we have the fomc meeting as well. much of the focus is on europe. i'll to take a look at bond yields, shooting up. a selloff in spanish italian, portuguese debt. there is buying in german

boones. unds. erik: the selloff on the euro continues just in time for my trip to italy. with of this has to do what is going on in greece. if greeceation that and european creditors cannot reach some kind of resolution is onit from the euro its way to greece. greece: we begin with and its creditors still arguing over who was to blame for the latest breakdown of talks. alexis tsipras says lenders are making unrealistic demands. the european parliament president says it is up to greece now. yes, there is still a chance that they will remain but it depends on the government in athens. they have been offered generous deals. not all of what the greek

government says is coherent with facts. scarlet: the european commission said a lot talk down after 45 minutes because of a gap between the two sides. the current bailout deal expires and two weeks. the president of ukraine says russia's accident -- actions have destroyed the postwar security system. the president says russia post goal is to destabilize the ukraine. disasters risk. -- disastrous risk. 18 hours together with chancellor matt kemp trying to reach -- chancellor metcalf to reach a cease-fire. scarlet: the cease-fire there has not been a single day in ukraine without artillery fire. more of our interview in this hour.

erik: one of the nation possible biggest drugstore chains is for 1600 is paying target pharmacies which it will operate as a store within a store as cvs. cox automotive agreed to buy dealer track for about $4 billion -. dealer track provides software marketing and e-commerce services for car dealers. two homebuilders have agreed to merge. standard pacific and ryland group. it will establish corporate presence of the east coast. standard pacific stockholders will own about 59% of the company after a share swap which means that they are pretty much the acquirers. scarlet: the dog fight between boeing and airbus picks up. the companies are prepared to

announce at least $23 billion in orders for narrowbody jets. boeing's ceo isn't as yesterday about the 787. -- is enthusiastic about the 787. worths plane was everything that we went through to get it done. we do have a challenge to get down the learning curve and to ring efficiencies out of the volume side. we are going to go up to 14 a month and no wide-body has ever gone that far. scarlet: he also told the french newspaper that the 787 program will break even the rest of the year. erik: coming up in the next hour, we are expecting fit bit to hit the public markets this week. battling a lawsuit from jawbone. why orlando has turned into the silicon valley of gaining. -- of gaming.

poroshenko, he spoke exclusively with ryan chilcote. all of that, coming up. it is down to the wire for alexis tsipras. this time, we really mean that. before talks broke down greece is scheduled to run out of money. both sides are accusing the other of living in a fantasy land. scarlet: the country could lead the eurozone. let's bring in denny blanche bauer. reagan.ke danny, why exactly is this crunch time? greece's they'll out does not expire until june 30. -- greece's they'll out does not expire until -- bail out does not expire until june 30. danny: we have some time to go.

this is political postern on both sides. -- fostering on both sides. the reality is greece is in a situation of can't pay won't pay. what has been imposed on them the last five years has .enerated a terrible recession output is down 25% start of 2010. it is hard to see how this actually gets resolved without a major give on the part of creditors which does nothing to be coming. or exit. for the stock market, it is difficult to make a one-to-one connection between a greek exit and u.s. stocks. while gisele apple because greece is going to exit the euro? -- why would you sell apple because greece is going to exit the euro? forecastt seen a good of what would be a fair exchange rate for the euro if greece

leaves. i cannot think anyone can say what that is. the effect of that as far as s&p 500 earnings -- erik: the euro would trade higher in theory if greece leaves. danny: the euro would trade higher. there is an issue of short run chaos. maybe for greece after that chaos and capital flows come, they actually have a rescue package, a depreciated drachma. is there an advantage in the medium to long-term of putting up with short-term chaos? they have a hand. the problem for the ecb and creditors is, what if greece leave and does well? it gives incentives for other people to leave. greece can use this as a trump and say, suppose we do well, that puts you in trouble?

that is part of their bargaining. scarlet: we might get ahead of ourselves in projecting that greece will be ok. mario draghi said investors need to get used to volatility. he will be testifying before the european parliament today. has the ecb provided enough cover for the european economy grexit has an effect people are pricing in? the arguments are that it is better than it was in the past. i think we have always underestimated the risk of this kind of action. a lot of unknowns so my view would be the risk after the downside, let's hope they have done that. -- it is the potential hard to quite understand why apple stocks on the basis of what happens in greece. this is about uncertainty and volatility.

we do not know whether there is enough backstop. the suspicion is that there is not. scarlet: there is more vulnerability for the german stock market. we have been writing how german stocks are in correction mode and could fall into a bear market. mike: an interesting note this morning looking at the contagion aspects. especially credit default swaps. they really have not shown much contagion. this morning, that is looking differently. they are starting to blow out. the ecb has said they will dialback their bond purchases in the months. -- in the summer months. you wonder if it will force their hand to add to those bond purchases in the summer. could we see another contagion effect what we saw two years ago with spiking bond yields outside a greece? erik: is this game theory in action? minsterhe greek finance is an expert in game theory and

i think he has been trying to play those cards. your action depends on my action, the thing continues. this is going down to the wire. i don't think people should underestimate the fact that greece has cards to play. 100 safety billion euros of losses to france and germany -- 160 billion euros of losses to france and germany. not over until it's over. scarlet: danny blanchflower, thank you very much. mike reagan, thank you. wearables hitting wall street. will fit bit's tackles with jawbone scare off investors? ♪

scarlet: good morning and welcome back to the bloomberg market day. erik: let's take you to matt miller, taking a look at mergers and acquisitions. matt: typically there are no such things as mergers, only acquisitions. in this case -- erik: in re cases there are true rare.mergers, but it is not one i can pick of off the top of my head. matt: standard pacific has bought ryland group. the homebuilders, the combined company will have $5.1 billion in market cap and about 12,600 homes delivered last year.

they tell you this in the guise of a merger when standard charter is going to own about 59% of the company. there will be a one for five split in shares. you will get one for every five and they will give them to ryland group to buy their shares because it is an acquisition. here you see both companies moving up about percent. decent moves in this morning's trade. cots automotive is going to buy dealer track for about $4 billion. cox also a lot of big companies in the car industry, selling and buying cars. auto trader is one. mannheim, the options group. -- the auctions group. it has risen to 50 7% premium -- 57% premium. cvs will pay for all of the pharmacies inside target stores.

target wants to focus on delivering fashion goods and go back to the days when it was called target. it is buying this for -- both chairs are moving up. a lot of m&a action. the most exciting part today that will the grexit happen in 10 minutes or two hours. the deadline that is coming up. scarlet: thank you for building up the drama. the latest in the markets. top stories this morning. the new york prison worker accused of helping prisoners escape is due in court today. prosecutors say joyce miller -- joyce mitchell aided the inmates. governor andrew cuomo has asked the state's inspector general to investigate the breakout. rescue workers in georgia searching for more than 20 people and a number of attentional he dangerous animals

missing after severe flooding ravaged the area around the zoo. at least 12 people are dead. enters thermally race for the republican presidential nomination today. the former governor will hold a rally. bush has likely raised a record amount of money before me his candidacy official. we will have live coverage of the announcement set for 3:00 p.m. eastern time. those were your top stories. erik: the wearables revolution hits wall street this week. fifth it seeking evaluation best -- bit seeking evaluation seeking evaluation. leslie picker is here. wearables are already on wall street in the form of garman. a bigger company that makes navigation devices. fitness is a bigger part of their business the people realize. leslie: this company is coming in more expensively than garman

is currently rating. proposition due to that place a hold in the market right now. it has gotten widespread adoption among users. there are risks we can discuss. scarlet: always the best part of ipo filing, looking at the risks. , theeric has on his wrist patent infringement lawsuit against for it -- against i fit bit. leslie: a time when company will be cash rich. they are more likely to settle. it is no surprise that job own bone times that. it could be an expensive settlement and one that could be a setback. a side from the legal issues they are facing competition from apple.

watch. i it provides on a price standpoint a better value to consumers. is most expensive fit bit $250, where is the cheapest apple watch is $350. it is a cheaper proposition and that could attract more from the corporate side. erik: talk about the valuation. leslie: as high as $3.3 billion. that is about 4.4 times. this is a company that is profitable and it is a tech company going public. this company is looking at 25 times. on an adjusted basis, 17 times. right now it is looking at a decent valuation. a price per sale basis. it is more expensive than garman

and apple but cheaper then go pro. picker on fit bit going public this week. how electronic arts turned orlando into the biggest town in gaming. ♪

scarlet: a new hope for the gaming industry has popped up in orlando, best known as a teen park destination. cory johnson have the tough assignment to go find out why. is home of one of the biggest videogame's ever created. football.

100 million sold, $4 billion in sales. here inoped that orlando, florida. ea acquired tiburon entertainment and now some 800 employees churn out madden and a slew of sports blockbusters like ncaa football and nba live. eaer 15 years, a sizable diaspora has created a pile of second-generation orlando game companies. >> the industry has grown up around us. cory: to fuel that growth, ea help the university of central florida launch a graduate game program. things we have here is a motion capture studio. cory: it is these kinds of studios that let students get

real-world experience. >> this is a videogame school. cory: tom carbone helped launch the program. >> retaken programmers, artists and producers and give them experience. cory: that partnership to academia and dozens of startups and the kind of housing you cannot find in silicon valley has created a vibrant gaming community in orlando. cory joins us now, back home in san francisco. what did you learn from the videogame school in central florida that you did not know? cory: they developed this focus on video games in orlando. there seems to be a lot more cooperation. companies are poaching each other's employees and sometimes they work together against each other. there's a sense that they have a community of companies in

orlando because games themselves do not really lend themselves to outsourcing bits and pieces like other parts of silicon valley might. you have a lot of people who look at the people who left ea. a look at their alumni with admiration and look at the companies started up and they have this partnership with the university of central florida. i think it will develop into a bigger thing going forward. erik: can you think of a good analogy? a community that has grown up around a company and a university like that in an isolated running? -- an isolated setting? cory: i do not think there is anything quite like it in such a big industry. whether it is development of the new thing they are doing or tax breaks that i felt this all happened, there is a sense of the government and academia and singleme focused industry focus in technology happening in orlando. i do not think there is anything

like it anywhere in the country. scarlet: cory johnson, thank you. erik: you're going to be the wide receiver in madden 2016? cory: i was hoping there was a future baseball game for me. erik: there is a precedent in baseball for tall goofy looking guys. johnson, joining us from san francisco. erik: at this point, i will say goodbye. scarlet: we have more coming up on the bloomberg market day. our interview with petro poroshenko, coming up. ♪

just because i'm away from my desk doesn't mean i'm not working. comcast business understands that. their wifi isn't just fast near the router. it's fast in the break room. fast in the conference room. fast in tom's office. fast in other tom's office. fast in the foyer [pronounced foy-yer] 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. scarlet: welcome back to the bloomberg market day. let's get straight to this morning cost top headlines --

this morning's top headlines. industrial output falling 2/10 of 1% in may. production of consumer energy products declined for the third month in a row. the drop in fuel prices are holding back u.s. factories. we saw and on invested decrease the empire state made venturing index falling. -- manufacturing index falling. oil and gas drillers are still cutting back on investments. president obama trying to persuade almost 100 fellow democrats to reconsider opposition to the asian trade bill. the president used his weekend radio address to make a new appeal. opposed to the deal say it would hurt american jobs and wages.

another shakeup at american apparel. the retail chain. david danziger has resigned from the board. the company will seek another independent record -- independent director. jeffrey cold is believed to be an ally of dove charney. the company that owns saks fifth avenue has agreed to buy one of germany's oldest department store chains. hudson pay -- hudson bay will kauhof. galleria cal let's get you a check on how the markets are trading about an hour after the start of u.s. trading day. we have a selloff. within the s&p 500, all 10 industry groups are down across the new york stock exchange, more than five decliners for every of answer on the big board.

concern over greece. the data we just told you about, not helping. a lot of focus this week on the fomc. the news announcement by janet yellen, the forecast from the central bank on where they see inflation and economic growth. you can see there is buying of treasuries with the yield coming down 2.3% for the 10 year. currency is in focus with the euro weakening versus the dollar. euro-dollar volatility climbing to a 3.5 year high after talks between greece and creditors fell apart on sunday after 45 minutes. the next big day to focus on is thursday. one of the nation's oldest gunmakers declaring bankruptcy. colt defense.- we are looking at jeb bush, he

announces his candidacy. we will be speaking with mark halperin, live in miami am awaiting that announcement. the conflict in ukraine has contributed to the crumbling of u.k.'s aching a system -- u.k.'s banking system. the worst crisis between russia and the west's the cold war. ryan chilcote spoke with petro poroshenko in an interview this morning. he started by asking for his take on the u.s.'s plan for moving weaponry into the former soviet state. crimea, itannex of is not existent anymore that global security system based on the euro security council. of the members is an

aggressor. that is what everybody should understand. ukrainians fighting for independence and integrity. they are fighting for freedom, democracy. they are fighting trying to stop aggressors who violated international law. approach to keep the global security. president -- how to keep the security. we should find a diplomatic solution for that. including possibly, a forming of the un security council. possibly, including the european security system. means how we can keep the russians out of

european countries. ryan: when president obama said at the g7 meeting president clinton's ambition -- president putin's ambition is to restore -- mr. poroshenko: i know better than anybody that this is true. ryan: you think that estonia is under threat? mr. poroshenko: beforehand, it was in georgia. conflicts can bring an improving of the situation creating all the conflict which makes hundreds of thousands of people in a ous way. disaster jeb bush is officially announcing he is going to run for presidency. he think the u.s. should give ukraine with the weapons. that is something that the obama administration has not prepared to do yet.

jeb bush was in estonia last week, before the state announcement. have you had a chance to speak with him about ukraine? how do you think having a new person in the white house might change the dynamic? mr. poroshenko: i have experienced speaking with george bush, younger. a lot of time talking about ukraine. mr. poroshenko: i have a lot of communication with the members of the congress, both parties. ukraine is united. we have a strong bipartisan support. is not the approach because he is not -- because

-- thist obama is not is the attempt to keep european solidarity with the u.s. and ukraine. ryan: your allies in western europe do not support the idea. mr. poroshenko: from my point of view, the effective mechanism of the sanction, demonstrated by the european union, by the whole world, is also effective method to make -- to create motivation for putin to keep the promises we signed. ryan: let me ask you about those actions. we knew european union is certain to expand sanctions against russia when they meet at the end of next week. we know that the euros -- with the -- that the u.s. and european union are discussing new sanctions. what can we expect in terms of

new sanctions if we cnx collation -- if we see an escalation? mr. poroshenko: the coordinated the u.s., canada come australia, european union. one of the most effective sanctions, financial want. -- financial ones. the purpose of the sanction is not to be the most harmful for the russian. we just want to create motivation, please stop the aggression. please stop the fire. stimulate the settlement security. we have obligations. scarlet: ukraine's president

speaking with ryan chilcote in an exclusive interview. we have more coming up. can the gun that one the west make it out of chapter 11? ♪

scarlet: welcome back. we are an hour into the market day. we are going to look at a lot of .ed hours for equities mark barton is standing by to give us a snapshot of the european selloff. mark: every western european stock market is trading lower.

stock 600 is falling for the 10th straight day. 575 stocks on the index are trading lower today. greece and its creditors, talks between the two broke down on sunday after 35 minutes. this means this finance ministers meeting taking place on thursday takes on extra poignancy as if we needed to use the word. greece is running out of road. market, what ak wild ride in the last three days. on friday, it fell 6%. today it fell by another 5%. the bond markets are feeling today's angst. the yield on the athens 10 year rose the most since january. spanish and italian yields rose. the yield on the german 10 year

actually declining a few basis points today. you're in dubai today covering the saudi stock market to foreigners. mark: there was no fairytale endings. i would love to tell you it finished higher. ask it fell by 9/10 of 1%. this is a stock market that has risen by 15% this year. a stock market that has outperformed the likes of the , which it hopefully will join a couple of years time. the backdrop is an economy suffering from the declining oil price. a new king that has been changing his governmental team. the backdrop is wars in yemen and syria as well. this was and is a pivotal day for saudi arabia.

the dow jones industrial average doing much worse than .he total wal 163 points. the worst back to backdrop we have seen since march because it was down big on friday. 1% can see three quarters of . 2078 for the dow and the nasdaq down at 5028. we see bonds rallying and yields falling. this concern of what is going on in greece and europe. in reaction to stocks they often move in reverse tandem. 2.35. year yield at volatility is moving up. it is moving up two days in a

row. we saw stocks drop two days in a row. you see vick's moving up 10%. it is the biggest gain since may 26. a lot of red arrows here as well. volatility, very green. scarlet: empire manufacturing and production index does not help as well. top stories crossing the bloomberg terminal this morning. western indonesia where hundreds of visitors this of villagers are being evacuated. at least 20 hot ash avalanches on sumatra island. there are indicators the crater's lava dome is growing inside. and irruption last year killed at least 17 people. the first wrote to land on a comment has woken up. the european space agency probe

has begun sending back data. the batteries died last november but when the comment made a close pass with the sun the batteries were recharged by sunlight. half $1 has taken in billion worldwide in its opening weekend until now. jurassic world set the record, taking in more than $200 million in north america. those are your top stories at this hour. you look at companies, how iconic they are. colt.t more iconic been .iling bankruptcy the gun industry has had a rough couple of years. my coanchor pimm fox is here with us. tell us more about the company's problems. it is not just the overall sales declining to government agencies. pimm: it has to do with a couple different things.

a change in the sport rifle business. a lot of discounted weapons have come onto the market which has displaced the weapons made by colt. a contract to supply the m4 carbine to the united states military. that was a big hit. they took out a $70 million loan from morgan stanley. he missed an interest payment. this is an internal issue, hence the filing for bankruptcy. they tried to do a preferred conversion. that the not meet the kind of reception there were looking for. to give you the contrast with business, those gun maker's stocks have done well. what you see gun sales have declined per person, meaning

they are not new people coming in and buying weapons, more people are buying a second or third gun. it typically coincides with some kind of news item, for example ferguson and shootings that you hear about. also, this is a residue of what happened because of the obama administration's early efforts to introduce national background checks. scarlet: part of this is tough comparisons. sales really took off in 2013. pimm: to make a note in terms of , about 7% of the business is tied to the u.s. military. that was in the last reported quarter. you take a look at the competition, discounted material coming onto the market. someone has been dumping a lot of discounted product and that has hurt sales. scarlet: good old-fashioned supply and demand at this point. --will continue

says they say -- colt are still in business. they will match assets to death as part of the restructuring. -- assets to debt as part of the restructuring. scarlet: pimm fox will be with us for the next hour of bloomberg market day. our next segment, antoine walker lost it all and now is looking to help other athletes avoid that same fate. ♪

scarlet: welcome back to the bloomberg market day. tied antoiney has walker to financial practice.

sternshatzker and olivia spoke to antoine walker as well as drew hawkins, the head of morgan stanley global sports and entertainment about why players go bankrupt and the need to educate them about finances. >> i think it is a combination of things. coming in the league at 19 years old, making a ton of money and not having knowledge of what to do with your money i think is the main reason why it happens. not understanding the basic things, taxes, that is only half of what you really make. small things like that. think a lot of athletes invest -- do not think about our futures like we need to. we try to spend the money to fast. olivia: you had a $71 million contract and spent the bulk of it.

you were 19 years old. if you pass a 19 year old -- you said you were an arrogant young kid. drew, have you change that? >> we are teaming up to change the narrative early. we talk about the statistics. we have had an opportunity to create a financial education program where we go on and work with student athletes and entertainers as well as at the professional level, teaming up to give real-life examples and tying that in as to how they can make smart decisions by being better educated and what they need to do with finances. erik:: if you think back to your personal experience, do you blame yourself or is there an industry of people who are out there, trying to pray on young athletes the moment they become wealthy? antoine: i blame myself. you have to take full responsibility. i try not to put anyone else in that position. what morgan stanley is doing,

the educational part can be brought up on the nba to make us more aware. have a program like this will be the first time buyers get to hear from a person like myself and get to hear a real person tell their story. olivia: what would you tell the 19-year-old version of yourself? antoine: get ready to say no. that comes for family and friends. it is difficult thing to do. to be able to tell your family and friends you're trying to leave for your future -- you are trying to save for your future. erik: how does that happen in practice? drew is the angel and on this shoulder, the car dealer, the mercedes dealer, the jewelry salesman. your friends, your family, they want a cut of your action. how does your voice drowned out these voices? drew: creating global sports in

entertainment, having individuals we can give proactive scenarios to and give them fundamentals. when you think about athletes, entertainers, they make money in choppy spots and their careers are short-lived so having well-trained advisors that have experience, being able to educate them, even taking the and puttingtoine's them in real life scenarios. an opportunity to make informed decisions. scarlet: antoine walker's story is not unusual. players file for bankers -- file for bankruptcy within five years of retiring. more than 78% of nfl players file within five years of their retiring. expected to throw his hat into the ring for the 2016 race today. he has not been able to separate himself from the rest of the

pack. we will discuss the challenges facing the former florida governor. ♪

♪ scarlett: it is 11:00 a.m. in new york and 4:00 p.m. in london. pimm: welcome to the bloomberg market day.

talks between greece and its creditors have fallen apart. home, the 2016at campaign shifts into high gear with hillary clinton holding her first rally. jeb bush finally make his candidacy official. or avoidingllenials formal wear. -- our avoiding formalwear. scarlett: good morning, everyone. i am scarlet fu. pimm: i am pimm fox. we are 90 minute into the trading day. let's look at how markets are performing. down a little more than a half a percent. the dow jones falls three quarters of