scarlet: it is noon in san francisco and 3:00 a.m. and hong kong. , dickng twitter ceo costolo taking the stage at the bloomberg tech conference. he discusses the reasons behind his resignation. in a and fifa is caught up scandal but that's not stopping electronic arts and cashing in. donald hasd the entered the presidential race. he promises to be a great cheerleader for the u.s. good afternoon, everyone. alix: let's go for a look at the op -- at the markets right now. weare reversing the decline saw yesterday, the dow jones up 114 points, pretty much flat on

the year. it's literally like yesterday didn't even happen. all of this pre-fed. scarlet: what is different is housing starts did fall in may but the april increase was revised up. inevitableline was after a big surge in april. alix: it is all about permits, because that is the forward-looking indicator. you saw an increase of about 11.8%. also looking at energy stocks. is thergy component second-best performer, up .8% on the back of rising oil prices. alix: take a look at the treasuries -- talking at the fed , seeing some demand in the fed meeting and the yield declining ever so slightly. a little bit of buying ahead of janet yellen's statement tomorrow. scarlet: let's get a check on

the spanish tenure because --ling of european debt spanish 10 year because the selling of european debt -- there's a little buying, pushing the yield lower, a bit of a reversal from yesterday. alix: the difference between a spanish 10 year and the german 10 year, which is a good measure of risk, you want to go into the german versus the spanish. it expanded earlier and lou out a little bit but has contracted. was anmorning, it anti-risk fear trade in europe. scarlet: let's look at the stories making headlines this hour. alix: u.s. treasury secretary jack lu spoke to the greek prime minister this afternoon and underscored the urgency of greece to make a serious move to reach what treasury called a pragmatic compromise with its

creditors. in athens, he blasted the creditors for its countries problems, saying tactics had strangled greece and accused the imf of criminal responsibility for the economic meltdown. the finance minister indicated he will not be making new proposals to and the impasse. jean-claude tree shea says the best option for greases to remain in the euro area. these is the greek public would have to bear the runt of an it. he said it is up to the greek democracy to decide whether they want to stay in the euro area. euro area finance ministers provided with financial aid. union'se european highest court has given mario draghi another tool to use. the court ruled that court and the ecb did not go too far when it unveiled a bond buying program in 2012 after mario

draghi declared he would do whatever it takes to save the euro. marissa mayer says yahoo! is proceeding with the alibaba spin off as proposed. shares moved on her comments. she spoke at the bloomberg technology conference. marissa: we are proceeding with our plan as proposed. it's based on the contemplated changes being communicated don't apply to previously received requests for ruling and the ruling, we filed for it well in advance of when these changes were communicated. that gives usg confidence is it does not seem these proposed changes are contemplating changing the applicable law, so it's more about the processes around these types of transactions and less about the applicable law. she also said she

wanted to do more with the national football league. twitter pasta parting ceo says while he's confident the current direction of the company, he's willing to let the next ceo make the changes they want to make. dick: everyone realizes the ceo needs to have the leeway to do what they need to do. what i'm trying to articulate and what jack is trying to articulate and what everybody feels this we like the strategy in place and the team in place and until further notice, we are going to continue down that path. leadershipaised the of two people on the team who may be internal candidates for the job. scarlet: house republicans getting more time to rescue president obama's trade agenda. the vote has been delayed until the end of july. bill has to do with compensating tokers who lose their job

jobs going overseas. alix: kirk kerkorian has died. he died last night in beverly hills. he was 98 years old. scarlet: a justice department investigation into money laundering has uncovered potential violations at citigroup. they say the probe is serious enough to merit a fine. prosecutors are looking at e-mails from low-level employees at the unit. the investigation isn't expected to be finished until next year. citibank says it is cooperating fully with the government. breaking news on palestine. let's head over to olivia sterns. olivia: mahmoud abbas, president of the palestinian authority is said to dissolve the government and the next what he four hours. this is all according to an aide.

his is apparently due to saying that he is unable to operate the unity government in the gaza strip. you will recall back in june of 2007, there is a's let in the palestinian authority when the andwas kicked out of gaza then in june of 20 14, there was a reconciliation that created the current unity government, but now, the president of the palestinian authority says he is going to dissolve the unity therement and i am seeing will be a new palestinian premier that will head a new government. we also have breaking news concerning greece. the finance minister is going to meet with the secretary-general on wednesday -- this is as talks sort of deadline -- sort of deadlocked.

the finance minister will meet the oe ecb secretary-general tomorrow. scarlet: one day before the critical meeting in brussels. weeks before billions of euros are due to the imf. time is ticking. we continue our coverage now of the e3 conference with a look at electronic arts. they offered a first look at "star wars battlefront." its setback in the time of the original star wars trilogy and showcases a skirmish between empire in republic forces on the icy planet hoth. the ceo joins us now from the expo. you teased several games coming out this year from star wars. which do you expect to be the biggest hit for the company? thanks for having a.

it's an exciting time for our industry and certainly our showcase moment for the year. we had a great portfolio and we have talked a lot, but it's hard to look past battlefront. when you look at the response from a crowd and the internet overall, it's going to be a big thing for us this year. another big thing has been virtual reality. on the last conference call, you mentioned electronic arts is a focused investment in virtual reality. what does that wind up meaning? we believe our job is to fill the fantasies of game players around the world. the biggest fantasy people have is to put themselves into the experience and not have that disconnect of space between them and the screen virtual --. .irtual reality does that

we're looking at our core franchises in trying to establish what is the dust way to immerse players through virtual reality. this is early days and i don't expect you are going to see something profound, but in the next few years, it's going to be a lot of the way folks play games. alix: i want to ask you about fifa, because the franchise has been important to electronic arts. i wonder what impact you might project from the troubles the organization has on the brand of your product. that's a great question, and for us, we are game makers. our job is to build the best football or soccer game and deliver on that fantasy people have to play as their favorite onyer in their favorite club their favorite league. we see it as a game, the academy of virtual football or soccer on their console or mobile or pc.

i'm not sure they draw direct correlation between what we do and what is going on with the organization. but as a partner, we are they aree of what doing in investigating and evaluating how to best deal with the future. you have been realizing a the virtual from platform. what about streaming and what is your revenue mix going forward? streaming is another thing that we are investing behind and running tests in various markets and platforms around how do we use cloud computing and a local client to deliver more games to more people on more platforms more of the time. talk aboutn we revenue mix, it's less how someone gets to play and more how they play the game and in

what capacity and how they connect with their friends. at a macro level, we are trying and focus onway the player and the game they are playing and how to connect them with the game and the friends they play with. scarlet: you talked a little bit and a connection to gamers. tell us about how the prevailing pop cultural sentiment fuels demand for titles. one of the big hits for your company was dragon age and there are so many people obsessing over dragons because of "game of thrones." to what extent is that fuel demand for a title like "dragon age? guest: i'm sure it does. i started in this industry 15 years ago where gaming was a discrete experience that you did by yourself in your basement. cultureng permeates pop

and is a big part of it, so when you start to see energy build around a particular genre or pop-culture moment, that is going to bridge and i'm sure we have benefited, in addition to building a fantastic game that one game of the year, i'm sure there was great benefit by the fact that there are three thrones"n "game of right now. what is your favorite game question mark you go home and have to play, what do you pick? guest: that's like saying which is your favorite child. i grew up playing fifa for a long time. it was a big part of my life and career, it still has that special place in my heart. while i have to play everything, i love to go back and play fifa. scarlet: thank you very much.

coming up, there's another contender in the crowded republican race. donald trump. how the business tycoon plans to change america, ahead. ♪

scarlet: welcome back to the bloomberg market day. let's go to julie hyman to look at the biggest movers in the tech section. bloomberghave the technology conference going on in san francisco today. take a look at twitter. we heard from the outgoing ceo, deck cost low. shares have been lower for much of the day and then surging recently in the past few moments on a report completely on

substantiated that twitter would be open to some sort of takeover offer. a lot of analysts have discounted that notion, but the shares are up amazon turned positive on the report. they were lower after shares were lowered by an km to a quarter and the company still has the core product problem, no matter whether there's a new ceo or not. snapping a 3-d losing streak after the price target was raised. thatsts say the fact charter and other cable systems have in adding netflix as an offering should drive subscription growth. also, saying international subscribers have three times faster profit project three -- trajectory. shares are up 2%. i also want to look at toby and shutter stock.

the provider of stock photography. adobe is coming out with a competing product. is out with its earnings after the close and if you look in my bloomberg terminal, we can see what has happened to earnings estimates recently. the earnings estimates go after numbersany reported its last time and subscriber growth missed estimates. since then, they have picked up by a little bit going into this order. adobe's trying to migrate customers to the cloud. that has been a sort of uneven. they have had to offer rebates and discounts to convince some of its customers to do so. scarlet: that's a big gap between earnings estimates and the price. julie hyman, thank you very much. alix: there is yet another

contender in the crowded republican race -- donald trump. he announced his campaign this morning under the title "make america great again. here are a few tweets on his fellow running mates -- do we really need another bush in the white house? we've had enough of them. marco rubio is a complete disaster. iraq,interview concerning he says he was as foolish as jeb. scarlet: mark halperin joins us now. trump is brash as he is known to be and was rash during his announcement. what is your report card on how he did? mark: i gave him a e minus across the board. it's hard to grade the nonstandard people, but he has great strengths this famous are rich, confident, speaks in a way that attracts a lot of people -- and he has weaknesses -- rash,

and his thinking and displays both the good and the bad at his announcement. was quite something. in trump tower, on 5th avenue, the building he owns and where he lives and works. it's the first time i have seen an escalator arrival. light if youmaking will, but he's polling better than some of the actual candidates like rick santorum. does he have the ability to come and disrupt the debate? mark: he would qualify for the first bates, but he has some polling which is less good. a lot of people and a lot of republicans say they would never vote for donald trump under any circumstances, but this is a wide-open race with no front runner. ofmay spend millions dollars. he can draw a lot of public

attention. it is a lot of stuff people make light of, but he is a successful business person who has won most of his life. not saying he's going to be the nominee, but if he's is on the he's not just- running a 5th avenue campaign, he's headed to iowa and has hired people in the early states. he's doing things that would suggest he would take this seriously and i think people are underestimating how he could be a factor in this race. you can watch "with all due respect every weeknight here on bloomberg television. you can check out the scouting report on donald trump at bloomberg.com/politics. "game oflert for any fan who have not seen the finale. we were debating whether john snow is that.

we are not clear on this because was all over the internet. chosethis bloomberg chart -- shows how may times john snow turns up -- it jumped almost 200 times yesterday. discharges all the way back to mid april when season five again airing. in 24 a threefold jump hours, so it wasn't just you and me talking about this. i was looking into this because the actor who plays john snow is giving an interview following the seizing finale, and he says he's dead. i read it, i have been told i'm dead and i'm not coming back next season. i was like he is alive. lots more coming up, you can turn up your sound now. it's the battle over open skies. u.s. airlines want to open and

aviation treaty, but gulf carriers like emirates are standing tough. ♪

scarlet: the battle between u.s. airlines under counterparts are heating up. alix: delta and other airlines sayinging for this, other airlines get unfair subsidies. matt miller joins us with more. they it seems like what are asking is for the government to throughout the open skies agreement, which lets them come and compete over here. u.s. airline's say they are getting big subsidies from their government. dobby --i and other they deny this and say u.s. airlines get subsidies also, but the rhetoric has heated up at the paris air show with ahead of

these airlines saying they may and out of their alliances it's all about the alliances. all of the airlines are part of one of these three alliances. one world, sky team and star alliance. one world is the alliance that , that's an alliance with american airlines if they don't get started -- if they don't start get treating better. it is an interesting fight that keeps heating up. it has been a great half hour. coming up, we will be hearing from dick costolo. we will be back. ♪

♪ ♪ ♪ get excited for the 1989 world tour with exclusive behind the scenes footage, all of taylor swift's music videos, interviews, and more. xfinity is the destination for all things taylor swift. alix: welcome back to the bloomberg market day. we want to get straight to a look at top headlines this

afternoon. it has been a busy couple of months for homebuilders. a new report says since april, they started work on the most houses in seven years. permits for future projects have climbed to the highest level in almost eight years, and occasion home-building is likely to pick up more. boeing has extended its lead over airbus in the second day of the paris air show. jets to all 100 737 dutch leasing firm. the list price is almost $11 billion, giving boeing is to $30 billion in sales so far, almost double airbus sales. clark has said the a3 80 is important to his airlines business plan. >> is vital to our plan and business model. it's a hugely successful operation and continues to draw consumers. they go out of their way to get

on the airplane and they absolutely love it. sales grewrope, car at the slowest pace in months. were down 7% in the biggest market in europe, germany. forshire hathaway will pay a stake in australia insurance group limited. it will accelerate sales of commercial coverage and give theer 20% of the ia 8 -- of aig payments. that's a look at the top stories for this tuesday. the bloomberg technology conferences getting underway in san francisco. topevent brings in investors and influencers. one of them is outgoing twitter ceo, dick costolo. redstone spoke with him and asked him when he realized he was done. dick: you make it sound like i'm

dead. i'm not done. brad: when did you realize you wouldn't be with us any longer? dick i started talking about it -- summer will be the end of my six year with a company. i came in as the oh. the board asked me to do this in the fall of 2010 in its time to think about what the succession plan looks like. brad: there's something about the transition that has not tracked with some people. what happens at that twitter board meeting? dick: i think it was a week ago thursday. we talked about it again at the february meeting and i said

let's figure out what the plan really is. i will say a couple of things about it. scribe -- you a can see it in the press, after the star chamber meeting, there were these nefarious things happening. it was a three-hour conversation where we decided that we want to do a full search for the right leader for the company. closedry to do it behind doors, the moment you sir talking to a couple of candidates it's going to be out there and it's going to be a distraction for the company. we decided if we were going to do it out in the open, we should think about bringing jack in as the interim ceo now because if we don't do that, the distraction of what -- when is the person going to be here and he's walking around with a timer on his head, we thought that was

going to be ridiculous. brad: did you go into that meeting inking it was the possible outcome? ick: we did think about how that was going to be. statement --as a they said twitter had not been a great job telling its story. did you take any of that personally? dick: you can't take any of that stuff personally. you better have some balance -- i think great ceos are a balance of resilience come they are gritty and resilient, but they are self-aware. you have to have that combination not take these things personally. blessing of working at a company everyone cares about and thinks about a lot. it has been that way since i got to the company in 2009.

everything we do is in the spotlight and everyone has opinions about it. that's a great thing. i would rather work at a company like that than a place people don't care about. before have heard that but early investors made hundreds of millions of dollars. there has to be something personally galling about the fact -- ick: it's all a rich tapestry. brad: some of the things outlined are some of the things twitter is working on, so when these are unveiled and he gets credit, doesn't that bother you? ick: there's no shortage of great ideas in the company. one thing that has been important to me is foster entrepreneurialism and bring entrepreneurs into the company.

periscope, the moment i met him, there's a combination of delight about the beauty of what they built and the light about bringing an entrepreneur like that to the company. having people like that, these people generate tremendous amounts of ideas. the thing that is important for me as a ceo to do is that the right system of ideas together so that you are developing toward a cohesive whole and then working backwards from that as you release things. released auto play video. that was born on fine and that's part of a system we are trying to build around -- a native mobile video system that , vine andes twitter periscope that all works in a seamless fashion. brad: what is next? ck: i have no plans.

i always encourage people going through a transition like this to take some time off. brad: i have a hard time imagining you reading a novel at home. maybe for a couple of days. dick: i don't either. brad: have you ever thought of returning to stand up comedy? k: i don't think it would be a smart move for me to return to stand up comedy. i get heckled for free now. i'm not going to travel to des moines and go to the left track and get heckled by people there. : no interest in returning to creative pursuits rather than business pursuits?

dick: my inbox, i have a crazy amount of e-mail from all sorts of folks, but i don't have any idea what i'm going to do next. alix: that was outgoing twitter ceo dick costolo and bloomberg atthis week has brad stone the bloomberg technology conference in san francisco. default isa greek still on the table, so how will it impact the banking industry? one top hedge fund manager ways in next. ♪

alix: welcome back to the bloomberg market day. now for a look at the markets, we are 15 minutes for the closing bell and headed over to bloomberg's julie hyman. we do see a rally, but there are

some outliers today. let's start with the overall averages which are higher and have remained prestudy throughout day. points,jones up 120 even other doesn't seem to be that much progress on greece. it looks like investors are weighing the prospects and weighing what we might hear from the federal reserve tomorrow. at the map in a bloomberg terminal. it is green today. we see consumer staples, telik .n and -- telecom the group that is little changed is industrials. united rentals has been a volatile lately, down by 3% and downgraded to an underperform at company issaying the likely to lower its rental rate and utilization forecast for the second or third quarter.

caterpillar falling along with industrials as well and oshkosh, 7.5%ruck maker went down after the company caught it's earnings forecast, saying the demand for some of its equipment has been lagging. those stocks falling today. i want to mention what has been going on with oil today. oil is trading higher and energy shares trading higher today. is on the speculation on the part of traders that we will see a shrinking of inventories. also as you astutely pointed out earlier, there is a tropical storm, bill. doesn't sound very threatening, in the gulf of mexico, so some energy companies are pulling some nonessential personnel. not cutting operations, but the idea is we get half of our refining capacity from the gulf in terms of oil or natural

gas, so if there's a disruption, it has an effect. thank you so much. of the topok at some stories making headlines at this hour. law-enforcement officials say one of baseball's most successful teams hack into another team's computer network to steal player data. the fbi and justice department are investigating the st. louis cardinals. there is reportedly evidence that cardinals officials broke into the houston astros network containing player databases. the baseball commissioner says it's too early to assign blame. the golden state warriors have two shots to win the nba titles, but they want to get it done the first time around. the warriors hold a 3-2 series tonight going to cleveland. sayshile, lebron james they have to do whatever it takes to win tonight and force a seventh and deciding game.

biggest makers of videogame consoles are squaring off in los angeles. microsoft has previewed the next game in its halo franchise and sony showed several new games. that's a look at the top story this hour. the greek rime minister is blasting creditors for his country's problems, addressing lawmakers in athens today, he said the ecb's tactics strangled greece and accused the imf of criminal responsibility for the economic meltdown. down,e no sign of backing so a default or exit from the euro may be likely. it was only a few years ago that a greek bond default would have meant disaster for europe's banks, so what about now? erik schatzker and stephanie ruhle talk to the ceo and cofounder of an investment company with $2.5 billion under management. they asked about the prospects of a greek default and its

affect on european banks. guest: five years ago, they did not have the tools necessary to deal with the issue. if you go back to the crisis, the u.s. recapitalized banks with heart. that is what european banks did. to liquidity with thes which in europe is same. then the u.s. created a shield which basically devalued the dollar and that is what the ecb has started doing. later, we take our time. no stress in europe. what you have on top of it is something back then in america you did not have it. just the monetary unit. andreated a ranking union created this so-called bazooka

which is the firepower of about a trillion euros from a fiscal perspective. that means all the governments have put together a trillion euros. about it, the exposure today to greece, 90% in the official sector is in the bazooka and in the ecb. not datas there is exposure of european banks. that is very important. defaults or leaves of the euro and nothing happens? scenarios.different greece defaults on public sector, no big deal, it is a washout. 1.6ecb has decided to print trillion dollars. governments have already issued those bonds.

it would be a default paid and move on. have a public sector official and at that time, does the imf getand have other europeans that the bill, which i think they will. the second is what happens at that point in greece? i suspect there will be a have capitalou control like you have in cyprus and at that point, there will be a political decision. every greek person wants tuesday in the euro because the life outside euro would be much worse. still ahead, banks on wall earnings asefferies a barometer for the rest of the banking industry. we will tell you why and how jefferies did on the next

bloomberg market day. ♪

alix: this is the bloomberg market day. wall street tracks jefferies results on clues for how larger rivals are faring in the quarter. offeries posted an increase 9.5%. that was led by investment ranking. revenues from equities trading, up 29%. the bad news, bond trading declined 30%. here with me to assess the numbers are lisa abramowicz and mike reagan. why did the bond trading declined to much for jefferies? less they attributed to issuance of high-yield bonds, when you have bond seeing sold a

new mothers more activity in that that for the first 10 to 30 days after it's being sold. without the pipeline being as big, there isn't as much activity to come along with it, so that is one aspect. another aspect is there hasn't been that much conviction in the market, particularly in the lower rated areas, some people are not buying as much as you might think. out julyorgan coming 14 kicking off the big bank earnings. is there a correlation between jefferies and jpmorgan? you cannotld think look for jpmorgan two posts that kind of game because they are so much bigger. with jefferies, you're talking ,bout a huge percentage gain but with jpmorgan, you're talking about numbers much eager than that. there's a natural tail went to equities trading this quarter. average volume per day is about

to explain to billion shares, up 3% from last year. what is interesting with jefferies is they capitalized on some of the problems are clays was haven't -- was having. barclays was having. a lot of them jumped ship, so that investment might be paying some dividends. helped forially m&a their fees as well. alix: we do have some breaking news -- julie hyman is at the desk. discover financials will be closing its home loan business. it's a business that was acquired in 2012 and says it will be focusing on its direct inking product. it looks like america save mortgage will finish processing the remaining applications. they will also establish an office in louisville and at the

same time, they will offer severance packages to about 460 employees, primarily in irvine, california and louisville. discover will take charges of about four cents per share in relation to the closing of this business. alix: thank you so much. back to the jefferies trading unit. a 30% decline in bond trading revenue. part of that is the liquidity fears we keep talking about. but volatility should be good. lisa: it depends. there's good volatility and bad volatility. you see volatility in government bonds, which is not their territory. in credit, you have seen some volatility but it has been pretty stable the sheer and there hasn't been that much movement. there has not been that incredible conviction with people dying all their holdings

were selling all their holdings. i think that is part of the issue. alix: the other issue is what do these banks actually have? do the big bank stocks reflect any kind of risks? mike: not as much as they used to. banks have generally been -- what is interesting with rocher's especially is there has been a consolidation among the top four capturing the biggest market share. there was a report earlier this month saying morgan stanley, jpmorgan, merrill lynch, each account for about 8% of trading in the country and after that, there is a heard of smaller brokerages. they have been spreading out their trade in search of liquidity something like 40 to 60 brokers. but the big for our taking the lead and capturing the most market share.

would say jefferies is different in that they can hold more capital. they are not subject to the same kinds of rules. so last quarter, they did report at the end of the year last year some problems with their distrust positions that caused losses. their earnings are not always a reflection of wall street and citigroup and jpmorgan have said they do not expect that huge decline in there could be positions that caused the decline at jefferies. how are these banks positioned headed into their quarters? lisa: they are trying to bring back their positions overall on the debt tied. you see balance sheets coming down even further from where they were previously in their treasury and credit holdings. be subject want to to incredible volatility should the fed surprises tomorrow. alix: in terms of m&a versus bond trading, what was

interesting is that m and they seem to offset any losses seen in bond trading. is this the theme we are going to hear in the earnings report? mike: absolutely. m&a is up across the board. it's early in the game to get a lot of previews to say what the actual projections are, but i think that's a safe bet. alix: $2.4 trillion, all in a day. thank you very much. coming up, we are moments away from the closing bell. we will wrap up today's session and look forward to tomorrow's big head meeting. stay with us. we will be right back. ♪

fromx: we are moments away the closing bell. .his is "bloomberg market day"

[bell] you are looking at a rally. 113 points, the s&p 500 up as well. it is kind of like yesterday. they are looking at consumer staples, telecom, energy, all of those sectors moving forward. they are trying to snap the two-day losing streak. the best day and almost a week. here is a joe weisenthal. >> hi, an exciting day to day. wasock that was interesting that on this day that they banned trans fat. it was a big-time player and