donald trump is a new york saying he is moving closer to a present to run. olivia: dozens of billion dollar but wills -- startups, janet yellen be the one who turns off this big it in silicon valley? pimm: one instagram is becoming the preferred platform for art collectors. ♪ good morning. i'm olivia sterns. pimm: i'm pimm fox. we are 90 minutes into the trading day. what is look into the markets and where stocks are trading right now. the dow jones industrial average adds 40 points. a game about two and a half points. everyone watching what is meant to happen with greece. we have some disappointing economic news as well as some positive economic news on the housing industry. a little bit of a pickup. olivia: housing permits at an

eight year high. tim mentioned what happened and greece. euros,lso weighing on who have fallen for the past three days. the standoff between the debt talks appears to be worsening and everyone is talking about capital controls. pimm: let us look of the top stories at this hour. it has been a busy couple of months for homeowners. since april, builders have started work on the most homes in seven years. that is despite a bigger than expected drop in housing. permits for future projects climb to the highest level in on the state used it that is an indication that homebuilding activity is likely to pick up. he is talking tough and throwing down the gauntlet. call it whatever you want, but there's no sign of a compromise on greece's prime minister today. in a speech to the greek parliament, he accused the international monetary fund of

criminal responsibility for greece's problems. he says of the european central bank tactics were strangling the country. greece's bailout money expires at the end of the month. greek officials indicated that they will not offer any more concessions in exchange for unlocking additional money. washington, the obama administration and house republicans still trying to salvage an important asia trade deal. d ase democrats torpedoe trade deal last week. john cook has the latest boehner, is he looking to buy ?ome time peter: he is because he knows the votes are not going to be there on time. he is trying to move the legislation's to the end of july. and will give a chance to cut a deal with a reluctant democrats who abandoned the president.

boehner says he is committed to getting the fast-track authority passed as soon as possible. >> trade is very important for a country. it is good for jobs, our economy, and for better wages. getting the trade bill finished is frankly a large priority of mine. the president and i had a conversation yesterday, as a matter of fact, several conversations yesterday, trying to find a way to move ahead. no decision has been made. when we have one, we will let you know. peter: rank-and-file democrats remain divided over trade. many remain opposed to giving the president fast-track trade authority because it not like the pacific trade deal that will follow. the opposition was bolstered when hillary clinton voiced her support to nancy pelosi and not the president. one option being discussed on the table is going to conference with the senate, which passed the fast-track trade authority and the aide to u.s. of workers that would be affected. maybe they can cut a deal

getting in a closed for the senators and working on a final deal there. one of several options on the table. the presence trade agenda effectively in a deep 3 -- the presidents trade agenda effectively in a decreaseep fre. olivia: the cbs is that in the year 2040, the government that will exceed the size of the gdp. airplanes the aging population and rising health care costs. lawmakers need to make major changes to taxes, spending, or both. pimm: donald trump is making what he calls a major announcement about the presidential bid. he is that strong tower in new york. let us listen to what he has to say. we are waiting for donald trump. he is holding a major announcement event in midtown manhattan, talking about a possible joint candidacy. we'll find out what that means

for the republican field. there are 11 official candidates. olivia: everyone is going to happen there. you see his daughter the vulgate truck speaking at the podium. they are at the trump tower. we are all assuming that this is donald trump throwing his hat into the ring for a run for the white house for the republican nomination. he's expected to go to iowa later on this week. we bring in josh green. he is a national correspondent for bloomberg businessweek it josh, donald trump flirts with running for the presidency often. why is he doing it now? josh: we are not sure he is on till he actually announces. he is a famous flirt when it comes to politics and the presidency. it looks like an announcement. we will not know for sure until he goes out and says it. is this a publicity stunt on the part of donald trump or is this something that could really shake up the republican field? the premiseate from

that everything donald trump does is it publicity stunt. up to and including getting into the presidential race. but if he does get into the race, it could absolutely shake up the republican field and a couple of ways. number one, it would add an element, an unwelcome element of spectacle to the republican field. you are at a have 11 and there. be e soon could 15. he projects an image that is different than what some conservatives would like. they are not going to be cut off some republican debates. you're going to have to rise to a certain level of popularity in order to be included. because trump has so much name recognition and is so famous, if you look at polls right now, he would fit in to most of these republican debates. that would mean that somebody else who is possibly a more serious candidate but less popular, someone like a rick

santorum or bobby jindal would be pushed out. that could be a big deal, too. aside from how i trump candidacy might affect the media circus, want to hear if he has any policies that could change the debate. donald trump is taking the podium. let us take a listen. thank you very much. it is great to be at trump tower and great to be in a wonderful city in new york. it is an honor to have everybody here. this is beyond anybody's expectations. there has been no crowd like this. i can tell you that some of the candidates went in and they didn't know the air conditioner didn't work. they sweated like dogs. they didn't know the room was too big because they didn't have anybody there. how are they going to be isis? i don't think it's going to happen. [applause] donald: our country is in serious trouble. we don't have victories anymore. we used to have victories.

but we don't have them. when was the last time anybody saw us beating, let's say, china and a trade deal? they kill us. i beat china all the time. all the time. [applause] japan: when did we beat at anything? they send their cars over by the millions. and what do we do? when was the last time you saw chevrolet in tokyo? folks.n't exist, they beat us all the time. went to we beat mexico at the border? they are laughing at us and our stupidity. ,hey are not our friends believe me, but they are killing us economically. the u.s. has become a dumping

ground for everybody else's problems. cheers] [applause] donald: it's true. these are the best in the finest. when mexico sends its people, they are not sending their best. they are not sending you. they are not sending you. they are sending people that have lots of problems. and they are bringing those problems with us. they are bringing drugs. they are bringing crime. they are rapists. some i assume are good people. but i speak to border guards and they tell us what we are getting. it only makes common sense. it only makes common sense. they are sending is not the right people. it is coming from more than mexico. it is coming from all over south and latin america and it is coming probably, probably from the middle east. but we don't know because we

have no protection and we have no confidence. we don't know what is happening. and it has got to stop. it has got to stop fast. [applause] islamic terrorism is eating up large portions of the middle east. they have become rich. i am in competition with them. they just built a hotel in syria. can you believe this? they built a hotel. when i have to build a hotel, i pay interested they don't have to pay interest because they took the oil. when we left iraq, i said we should of taken it. now isis has the oil. what they don't have, iran has. this, and iell you said it very strongly. years ago, i said, and i love

the military, and i want to have the strongest military that we have ever had and we need it more now than ever, but don't hit iraq because you are going to totally destabilize the middle east. iran is going to take over the middle east. iran and somebody else will get the oil and it turns out that iran is now taking over iraq. think of it. iran is taking over iraq. and they are taking it over big league. we spent $2 trillion in iraq. $2 trillion. we lost thousands of lives, thousands in iraq. we have wounded soldiers, who i love, i love. they are great. all over the place. thousands and thousands of wounded soldiers. and we have nothing. we can't even go there. we have nothing. and every time we give iraq

equipment, the first time a bullet goes off in the air, they leave it. 2300 humveesread -- these are big vehicles -- they were left behind for the enemy. you would say, maybe two, maybe four. vehicles,sticated they ran, and the enemy took them. cheers] [applause] donald: last quarter, it was just announced that are gross domestic product -- our gross domestic product, a sign of strength, but not for us, was below zero. who has ever heard of this? it was below zero. our labor participation rate was

the worst since 1978. think of it, gdp below zero. and a horrible labor participation rate. and our real unemployment is somewhere between 18%. don't believe the 5.6%. a lot of people up there can't get jobs. they can't get jobs because there are no jobs. because china has our jobs and mexico has our jobs. they all have our jobs. numberl number, the real is anywhere from 18% to 19% and maybe even 21% and nobody talks about it because it is a statistic that is full of nonsense. yells]member donald: our enemies are getting stronger and stronger by the day and we as a country are getting weaker. even our nuclear arsenal

doesn't work. haveme out recently, they equipment that is 30 years old and they don't know if it works. i thought it was horrible when it was broadcast on television because boy, does that send signals to putin and all the other people that look at us and they say, that is a group of people and that is a nation that truly has no clue and they don't know what they're doing. they don't know what they're doing. called theisaster big lie. obamacare. obamacare. yesterday, it came out that costs are going for people of 49%, and even 55%. and deductibles are through the

roof. you have to get hit by a tractor , literally a tractor, to use it. deductibles are so high that it is virtually useless. it is a disaster. website?the $5 billion $5 billion we spent on a website. to this day, it doesn't work. -- a $5 billion website. i have so many websites all over the place. i hire people and they do a website. it cost me three dollars. a $5 billion website. chants we want trump] somebodyell, you need because politicians are all talk and no action. nothing is going to get done.

they will not bring us, believe me, to the promised land. they will not. as an example, i have been on the circuit making speeches. and i hear my fellow publicans. and they are wonderful people. i like them. they all want me to support them. they don't know how to bring it about. they come up to my office. i had a meeting with three of them in the next week. they don't know -- are you running? are you not running? could we have your support? what do we do? how we do it? i like them and i hear their speeches. they don't talk jobs or they don't talk china. when was the last time you heard china was killing us? they are devaluing their currency to a level that makes it impossible for our companies to compete. impossible. they are telling us. but you don't hear that from anybody else. you don't hear from anybody else. and i watched the speeches. thank you.

i watch the speeches of these people and they say that the sun will rise. the moon will set. all sorts of wonderful things will happen. and people are saying, what is going on? i just want a job. just get me a job. i don't need the writer. i want a job. and that is what's happening. and it's going to get worse because remember -- obamacare really kicks in in 2016. obama is going to be out playing golf. he might even be on one of my courses. i would actually invite him. i would say that i have the best courses in the world. i have one right next to the white house. right on the potomac. if you would like to play, that's fine. i would love for him to leave early and play. that would be a very good thing. [laughter] inald: but obamacare kicks in 2016. really big league.

it is going to be a amazingly destructive. doctors are quitting. i have a friend who is a doctor. and he sent to me the other day, donald, i never saw anything like it. i had more accountants that i have nurses. it is a disaster. my patients are beside themselves. they had a plan that was good and now they have no plan. we have to repeal obamacare. and it can be replaced as something much better for everybody. let it be for everybody, but much better and much less expensive. for people and for the government. and we can do it. trump]chants donald: so, i watched the politicians. i have dealt with them all my life. if you cannot make a good deal with the politicians, then there's something wrong with

you. you are certainly not very good. and that is what we have representing us. they will never make america great again. they don't even have a chance. they are controlled. fully byeir controlled the lobbyists, by the donors, -- by the special interests fully. hey, i've lobbyist for i have lobbyist that can produce anything for me. they are great. but you know what? it won't happen. it won't happen because we have to stop doing things for some people. for this country, it is destroying our country. we have to stop and it has to stop now. needs -- our country needs a truly great leader. and we need a truly great leader

now. need a leader that wrote the art of the deal. that can bringr back our jobs, can bring back our manufacturing, can bring back our military, can take care of al our vets. our that have been abandoned. vets have been abandoned. we also need a cheerleader. when president obama was elected, i said, the one thing i think he will do well is that i think he will be a great cheerleader for our country. i think he will be a great spirit. he was five rent. he was young. i really thought that he would be a great cheerleader. he is not a leader. that is true. you're right about that. he wasn't a cheerleader.

he is actually negative force. he wasn't a cheerleader. he was the opposite. we need somebody that can take the brand of the united states and make it great again. it is not great again. [applause] somebody thatd literally will take this country and make it great again. we can do that, and i will tell you, i love my life. i have a wonderful family. dad, you'reing, going to do something that is going to be so tough. thatf my life i have heard a truly successful person, a really, really successful person -- and even modestly successful cannot run for public office.

it just can't happen. and yet that is the kind of mindset that you need to make this country great again. , i amies and gentlemen president running for of the united states. and we are going to make our country great again. [applause] ♪ playing]ic olivia: that is donald trump officially announcing that he is running for president of the united states, saying america needs a cheerleader and nominating himself for the job. time talkingt of about foreign policy and criticizing the obama administration's response to the islamic state. he also criticized the economy

and what he perceives as a lack of competitiveness, saying mexico is not our friend and chinese is killing us. earthhat there is a dar of chevrolet in mexico. pimm: let me bring in peter cook. to begin to to begin to analyze some of the, well, multiple references that donald trump made to a variety of topics. it was sometimes a little hard to follow the connections. what do you take away from this announcement? peter: that he is a wildcard in this race. for all the reasons that we saw up on the stage. he is flamboyant and says whatever is on his mind. he talks about a range of different items, whether it is isis, whether it is whether it is the president playing golf on one of his golf courses. he is going to bring a factor to this field that is hard to gauge at this point.

one thing that he brings to the table is name recognition. if you are going to be on the , you're going to have to be in the top 10% of the polling. and donald trump for better or worse has better name recognition than a whole host of republicans running for this office. he is going to be up on the stage simply because of his name recognition, i bet you. and that is something that those other candidates will have to deal with because he is without the push them on issues on things on things like time and perhaps in ways they have not expected. olivia: joss, what do you think of the economic message that he pushed, saying he is the guy who is bringing jobs back to america and ignore the headline of unemployment at 5.4% and that it is unofficially at 18% to 21%? will that resonate? don't think it will. if i'm the chairman of the republican committee that this is my nightmare.

a campaign built around stereotyping and racial consignment. ofs the opposite message uplifting people that we saw from jeb bush yesterday. it is really damage that republicans would like to project. this is the opposite of what they would like to project. pimm: i'm just wondering if you can follow up on the campaign field of the republicans. ted cruz, marco rubio, you mentioned jeb bush. how are some of the specific things that donald trump says going to affect them personally? who: it really depends on donald trump decides to lash out at. you hear him mocking -- he didn't use names. he was mocking three of his competitors who were begging for his support. trump is the ultimate wildcard. a debatet him up on

stage, he can go after any candidate for any number of reasons. i think we really need to figure out what trumps motivation is. he seriously thinks he can be the republican nominee at some point? presumably, he will have to present a credible alternative to a obamacare, a real economic plan that would grow jobs and the economy. i did not hear a lot of indication from what he said just now that that is forthcoming. pimm: i want to thank josh green and peter cook from washington. there it is. donald trump making it official. he is joining the crowded republican field. olivia: he is talking about the u.s. being a dumping ground for global problems. sounds like you might agree with the democrats. pimm: i will see you later. we have more on "bloomberg market day next . ♪

pimm: welcome back. i'm pimm fox. we want to take a look at some of the top stories of the hour. house speaker john boehner says

republican leaders aren't committed to passing the fast-track trade bill. when asidetracked companion measure was defeated. he says he is working closely with president obama to get the bill back on track. >> a trait is very important for our country. it is good for jobs, our economy, and for better wages. getting the trade bill finished is frankly a large priority of mine. the president and i had a conversation yesterday. matter of fact, we had several conversations yesterday trying to find a way to move ahead. have been made. when we have one, we will let you know. tom: he is urging lawmakers pass a procedural vote today to give more time to work on a trade bill. boeing has extended its lead over airbus on the second day of the paris air show. the company pulled in its biggest deal yet. boeing will sell 100 of its 737 max jets to the dutch leasing firm air cap. the list price is almost $11 billion. that is giving the one to $30

billion in sales so far, almost double the total for airbus. of it was a blunt reminder the tensions with the west over ukraine. russian president vladimir putin says that the military will --eive 40 new intercom intercontinental ballistic missiles this year. claims they are capable of penetrating any missile defenses. facebook has more privacy issues. in belgium, they are suing facebook over its privacy practices. the social network is accused of processing personal data without explaining how it would be used. facebook says it uses cookies to show users relevant advertising and they can opt out if they so choose. top stories ofhe the morning. i want to go to narrow say rich in london. let us start with the equity

markets. you are seeing the majority of the markets actually closing up today. that is after we had inclined earlier. is wherend of france we are still seeing shop for clients though -- we're still seeing sharp declines on the stock exchange. greek banks are leading losses, but on europe's equity benchmark, the stoxx 600. the stock exchange with three day drop since the anti-austerity party came to power back in january. it is still concern. also it's a people weighing in on the situation. i will tell you about two. tsipras has thrown down the gulf desktop list saying that the ins has criminal responsible before greece's predicament. it was in front of the greek parliament that he said this. he also said the ecb's tactics are can to financial assistant get -- asphyxiation.

angela merkel says that they will do everything possible to keep greece in the euro zone. that is why we see the stoxx 600 equity benchmark rebound today, closing up. they are halting a today -- a two-day decline. inare still seeing concern the euro. and has been declining against most other major currencies because, of course, the focus is on the eurozone finance minister meeting happening thursday. greece says it is not putting a new proposal forward. will dozone says it talks if there is a new proposal. that is why you are seeing declines in the euro. that keep it -- back to you. pimm: thank you very much. venture capital financing hit a record last year. there are more than 3600 deals worth nearly $50 billion.

huge valuations do not seems to be scaring off investors, at least not yet. but a federal reserve interest rate hike could do the trick. i want to bring in adams such renowned. he is in our san francisco bureau and i want to put together some of the pieces here. the silicon valley based on cheap money -- is silicon valley based on cheap money? wouldis not a place that pay attention to federal reserve policy. this era of low interest rates has contributed to the easy available money that has spawned a lot of these multibillion-dollar evaluations that startups have been getting. a big question out here is that if this is a bubble or it's not a bubble. if it is, what sort of event is it going to take to shake things out? the one thing that keeps coming out is an interest rate increase. what an added cost to the availability of money will do to the broader market, and by

extension, silicon valley. pimm: based on your reporting, what have you found? adam: a few things. the main reason why people are paying attention to the fed policy is the effect it will have on hedge funds and mutual funds, which have uncharacteristically been pouring money into a lot of late stage startups. according to different people i've talked to, if interest rates go up, these are the sorts of groups, hedge funds and mutual funds, could move that money into different asset classes, whether it is fixed income or blue chip stocks. it is another thing that will become more attractive. startups are one of the few areas out there that have a high risk, high reward potential. investors are choosing yields. if rates go up, there are other places to look. pimm: what about the ability of companies such as uber and talent here, companies that have

raised billions of dollars in investment money? what is the possibility that an interest rate increase can make it difficult for them to add more money to their balance sheet? adam: it is an open-ended question. there are a few things that could happen here. one is what it means for some of these later stage companies that need to raise more money. i think there are different tiers of these companies. antir are a bit more established and proven to have a business model that establishes a a lot of revenue. i think some of those companies are in a better position than to some that are in a tier below. you see them getting the dollar valuations where they do not have any revenue yet and it's all based on the price perfection so to speak. if their business models work out perfectly that they will be able to get these. increase inrates

use of the market shakeout, it could be harder to raise more money. if there is volatility in the stock market, it could make it goder for companies to public. it has been the case in the current situation. pimm: if that continues, harder to raise money, hard to go public, would it make it better for investors who want to see some of these stars because fewer investors and hedge funds step aside. you might get a better deal from the company. adam: there are a lot of venture capitalists, who while they are of cheerleading the idea some sort of bubble burst, they do like the idea of some of these valuations coming back to earth a little bit. the introduction of money from hedge funds and mutual funds has really set valuations skyrocketing. venture capitalists who are used to getting a better deal have had to really pay up to get into some of these high-profile companies. there are certainly some

investors who would welcome a certain kind of shakeout. pimm: adam, are there companies in a specific area of technology that are most vulnerable? adam: in my reporting and talking to different investors, one thing that seems to be the most moldable is the consumer facing late stage company. people and investors are afraid to name names, but there are over 100 startups that now have over $1 billion valuations. one voucher -- venture capitalists says they have been given the name unicorns and that name a proof at as unicorns don't really exist. pt that name may prove at as as unicorns don't really exist. moment ine in the silicon valley where money has been easy for startups. this will be a test for others down the line. pimm: i want to thank you very

much for your reporting from san francisco. we want to mention something exclusive interviews, up from the west coast. that will be in the next hour. at 12:00 p.m. eastern, the outgoing chief executive of twitter will be speaking. at 12:30 p.m., yahoo! chief executive marissa mayer. these are interviews that you do not want to miss. they will be coming up in the next hour. still ahead, looking to get your high and artwork sold online? you might want to try instagram. details are next. ♪

pimm: welcome to "bloomberg markets. the one to look at some of the top stories crossing the terminal right now. billionaire investor kirk kerkorian has died at the age of 98. he was the founder and largest shareholder of mgm resorts international. at one point, he owned more than half of the hotel rooms on the list biggest or. -- las vegas strip. he bought stakes in major hollywood studios as well. in 2007, he unsuccessfully tried to buy the automaker chrysler. picking storm bill is up strength as it approaches the texas gulf coast. the storm winds are now clocked at 60 miles per hour. it is expected to come ashore stop at corpus christi and bring up to eight inches of rain. texas is still recovering from the wettest month on record. that was in may.

and the two biggest makers of videogame consoles are squaring off at the e3 convention in los angeles to microsoft has preview the next game and it's halo franchise. and sony showed clips from the new games and final fantasy. as well as several other serious. those are your top stories at the moment. week inl opens this switzerland. it is the biggest contemporary art fair in the world. if you can't get a ticket, you might want to try instagram. yes, the photo sharing site with more than 300 million active users is essential trading -- infiltrating the world of high and art like allowing people to browse their favorite artist online. what kind ofout art we are talking about here. mostly art from young artist. it is some $50,000. it is also very colorful, visual art that sells best on instagram. it is a very small space to look at. best onen you say sells

instagram, are people making art so it looks great on that little screen or on the instagram a pp? >> that's the concern. with dealers i have spoken to, there are worries that as instagram becomes more pervasive in the art world, it will actually affect that people make artwork since they know people are going to be looking at it via their phones. for the time being, there's not too much evidence to support that. pimm: is this an added way for galleries to distribute the work of their artist or for artist to go directly to the public? >> absolutely. it works differently for dealers, artists, and sellers. for dealers, they could take photos of what they're going to bring to our bottle. and collector can see what they're bringing and write to them. for an artist, an artist can actually bypass the dealer themselves and say, this is my personality.

this is who i am. it is a way for collectors to actually see artist and away they wouldn't normally. pimm: what about a collector who has something in the collection they want to exchange, but they won't want to go to a gallery because they don't want to pay the commission? do they put it up on instagram? >> not quite yet. electors are using it to see what other collectors are buying into the artwork that they do not normally have access to. it is a way to derive insight into a world they would actually obviously have access to. pimm: maybe you are not going to go to every art gallery or every booth at the art show. this is an easy and convenient way to go through and check out different kinds of work. but can you harshly do a transaction on instagram? you find something for under $50,000 that you really like. you say, i want to get that. what do you do next? >> it is a way of starting a

conversation in a lot of the time. not too many people are simply buying straight off of instagram. they may have a relationship with the gallery or collect one or two the artist work. i spoke to several collectors who within 30 minutes of seeing something on instagram had agreed to purchase a work of art. pimm: it is being used as a marketing tool. is there an opportunity for instagram? myspace was big in the music industry. is something going to be tailored for the art market? can show it online and get many more responses. instagram artnly projects in various ways. artist are making work specifically for instagram and a variety of ways and they are selling them. ism: and instagram benefiting from this from the increased traffic. they don't get it commission. you can read more about if it

. james, the latest article on bloomberg.com. still the come, trans fat. on friday and bake goods will be getting cut down to size. you will get to the details ahead. ♪

pimm: the fda announced that artificial trans fats will be banned from the u.s. food supply over the next three years. the reason -- artificial trans fats pose health risks that contribute to heart disease, the leading killer of americans. some major food companies will have to tighten their ingredient belts. --ty liu has interviewed has

fast food heavyweights. this also affects the grocery store and the fast food restaurants. betty: there is some mutual fund out there called the good food fun. so many companies are now on this bandwagon of, i'm going to be reducing artificial ingredients in our products. we are going to be using more natural ingredients. trans fats is going to be phased out by the fda over the next three years. -- findwhat you fired and canned frosting, cookie dough, cake mixes. those types of products. pimm: the way it happens is that it turns oil into a solid in a process called hydrogenation. the point is to increase the shelf life of specific foods. betty: shelfstable products. exactly right. that is why these products are the ones that are being targeted. some of the companies that are going to be affected by this -- can aggregate is one of them. also, general mills as well. bettyneral mills makes

crocker, pillsbury cake mixes. makes chef boyardee and swiss miss chocolate. pimm: and microwave popcorn. you do have to check for those that are particularly flavored with butter. a lot of it has to do with it turned from oil to a solid. betty: i'm popcorn, i never understood why people need to do microwave popcorn. it takes the same amount of time to do honest though. best to do on a stove. the point is that they will now go from trans fats to more natural oils. palm oil is one. soybean as well. pimm: companies have been doing this because consumers have o wanted this. it goes back to 2013 where it was an fda directive where they said, yes, this stuff is generally not considered good for you. something that is good for us is coming up. there are two special interviews. it is not going to save

any lives, but it might add value to people's days today. marissa mayer from yahoo! and dick costolo, who is about to step down from twitter, will be in our bloomberg tech conference. they will speak and are our. can you ask about artificially created trans fats? betty: and whether it is trending? pimm: where going to look forward to it. betty liu, we will see you in just a few moments. it is time for today's option insights. let us talk to julie hyman. seen a little bit of game for stocks across the board. the averages are holding onto the game, even extending it. dow up to 84.5 points. joining me for today's insight is kevin kelly did he is the chief investment officer at recon capital partners.

there is a little bit of pessimism because even though stocks arising, people in terms of options that they are making on the s&p futures are not terribly optimistic. kevin: that's correct. you are seeing it in futures and the s&p 500 index options as well as the etf options on sp y, which tracks as px. most notable yesterday was that two times the amount of puts being traded verses calls. the biggest trade was actually someone buying 20,000 contracts of the 1825 put out to july. that would mean that we would down all% correction the way down to july. it is really short term. julie: it's a bold call. kevin: especially since we haven't had a 10% correction a a while. i think they are putting on a cheap that. it won't cost a lot so it will protect the whole portfolio in the normal size is $36.5 million. you will need a big move for

them to get anything. the probability of this is really diminished. julie: is that tied to any particular catalyst? is there anything making people never stop there? kevin: it is definitely a play on the fed because of the tight trading rates on the s&p right now. they are betting for a move one way or another. tradewas a sizable vix yesterday. we will see it move that way. they're playing it in both. julie: up in volume and down in stocks. last talk about another call that you're making on chipotle. it is not a bullish call option for late. kevin: it is not. it is a cheat portfolio insurance, especially on the retail trade right now. 18, that isat relatively cheap, given that it's got a 31 pe. it --only a 2% for the if

for the year. it hasn't performed. aat you can do is have earnings on the 21st. you can go up to the 24th in july. payout cheap insurance -- four to one. it doesn't cost a lot. we know the consumer is on firmer ground. into have only translated autos and other lifestyle like home improvement. it hasn't trickled in to the entire sector. uphave only seen stores go miniscule he. this is a cheap insurance policy. julie: how much is insurance cost you if it doesn't work out? i was looking at the last few earnings reports for to pot late and the stock has risen after it comes out with a number. what does it stand to lose if the stock goes up? kevin: not a whole lot because

it is costing $13 to make $45. it is really protecting yourself because it is a price for protection. are you comfortable with people spending and i should two dollars for guacamole? given that retail sales have not gone gangbusters, given that they've got a bunch of tailwinds with the job market a lot better. it is cheap, especially if you have ridden the rise the past couple of years. to pay two willing dollars extra for guacamole. maybe i'm in the minority. hopefully not everybody could stay tuned. much more "bloomberg market day" after the break. ♪

pimm: good day. 9:00 a.m. and san francisco. noon in new york and midnight in hong kong. betty: welcome to the "bloomberg market day." heading to san francisco for the

bloomberg technology conference. talking about the latest trends you have to know about. pimm: an exclusive interview with outgoing twitter chief executive dick costolo, speaking to us days after announcing he will step down from the company. betty: that is not all. also joining us for an exclusive interview is yahoo! ceo marissa mayer. will her turnaround plan at yahoo! finally stick? pimm: good afternoon. i am pimm fox. pimm: -- betty: i am betty liu. a look at the markets. equities are rebounding. stocks up marginally. quite a bitost yesterday. the s&p higher by .3%. enag