[bell ringing] we'd did it. you are looking at a record day for the nasdaq, setting an all-time high, settling out at 5132, of i 67 points. really, you could blame this on the fed. yes, things are getting better, but they could be better. that fueled pessimism that ironically field stocks. a three-day rally, the s&p and the dow having their days in months. all of those sectors finishing in the green. here is joe weisenthal. joe: really driving home that points -- you look at the classics, animal spirits,

leading the way. a great indication the bull is back for now. was ironic, we had a lower dollar despite all of the andeek, that came out that did well for the multinational companies like gm, like dow. you had kroger beating estimates as well enough you'll be general optimism in the market. joe: green across the board. alix: and greases the word today. let's talk about the crazy rhetoric. christine lagarde saying we need adults in the room. there is an emergency deal with the big guys in brussels. joe: it was not good. a lot of negative rhetoric. the eurogroup.om >> we are very committed to a different sensual scenario, which is getting a credible solution for a future for greece

inside the euro. they are one of our partners and it is our deepest wish to keep them in the eurozone. alix: he was saying that greece is moving the direction of an exit. this is no holds bars. joe: it feels like it is getting real. alix: but the irony though, the er it gets, the less stocks care. we had chatter from big-name investors who seem to take it in stride. earlier, in a shareholders note, an analyst at j.p. morgan said a must be prepared for potential exit. we can look at possible repercussions from an event. it is possible that a greek exit could prompt greater structural reforms by countries that remain.

nevertheless -- discuss allth us to of these things -- greece, the market, the fed, we have paul holloway.r and tracy thanks for coming on. what do you make of greece? i am tired of greece. it has been too many years i am covering this. i think it is a mix of complacency and the anticipation that the europeans have this one covered. i do not think that is very accurate. we all need to stress test our portfolios. we need to think about how this can impact. we think the international markets will be more adversely affected than the u.s.. this is part of the theme for this year. tracy, does that mean the fed is moving the u.s. market and not the euro area at all?

fair to think that is say. i kind of on your side. i think the markets are underpricing the risk. at think the markets are so tired of this story they are not paying attention. i am sure i will get in trouble with saying this, but i think it is finally coming to a head. be time to start get interested in greece again, yeah -- if you take a look at the forecasters tracked by bloomberg, 15 have seen gains by european stocks this year. citigroup is the most bullish. that index is jumping 17% through the end of the year. is that a economy growing. are things getting better. mostly theink it is economies are getting better and mr. draghi is buying the bonds

for france, germany, italy and spain for the sheer promise to qe in europe, but at the end of the day there is still the it will go somewhere other than the bond market. it could be we see pricing uncertainty around which country is the next to have a banking crisis. what if there is a liquidity event in the bond market due to contagion? there is mass redemption. that has to trickle over. absolutely. we just think that probability is lower than it was in 2012 -- -- 2012.0 golf and think we the ecb is buying a bonds, acting like a central bank of last resort. joe: something fascinating happen, where you had goldman that forecast the first rate hike in september moving to december and you had citi who

had forecast the first rate hike in december moving to september. and you have so much communication, the idea of transparency, communication, two different banks take the exact opposite takeaways from the decision. ofst: there is still a lot data to parse. everyone, i think, would agree .he fed is data dependent as long as the economy continues to improve we could see the stock move toward a rate hike. day, is the end of the this a credibility issue with janet yellen? as in the banks in the market do not necessarily believe what they are telegraphing? i do not think it is credibility. she is having to walk a tight line to give herself wiggle room

. the things she is trying to avoid is an unexpected rate rise where the market should panic. and obviously a point where she reverses course. guest: right. joe: you wrote a story about a bond backed by 30 laundry. .his is esoteric debt in this case, it was laundry. what is going on? alix: what does that mean. how do you have a bond backed by laundry? physicallys not backed by library. it is backed by equipment for a washing machine. typically it is backed by people watching their laundry, demand for washing machines. theare talking about central banks earlier. all of the stimulus has sparked return byrch for

investors. everyone is looking for yields. they are going into these weird part of the market. ande are basically sliced diced loans that might be more unusual than home loans, commercial mortgages. they get package into bonds, sold to investors, you get a better return than buying a treasury or a more normal kind of that. alix: how are they rated? this was given a rating by standard & poor's. an a. joe: what are examples of esoteric asset-backed securities? tracy: third is all sorts of stuff. typical things are shipping container leases, plan share loans, franchise rights to restaurants, music portfolios. we had a david bowie bond ages ago. sometimes you get really weird

stuff. right before the financial crisis there were stud rights for resources. alix: huh. weird bondsthese issuance taking out in 2014 -- why would this make you concerned? guest: if we saw that is not just broadly esoterically, but in the housing market, more conventional markets, and i think this is real if the hawks on the fomc saying we at least have to philosophically put a stake in the ground, line in the sand that rates have to avoid from zero. alix: but if you are putting it in really risky assets, isn't that a danger? guest: absolutely. the idea is the money is being pushed into laundry bonds by the fed and that is when you start to fear the bubble you are referring to. story of therite day is a might be getting a $10

bill with a woman space on it. there will be a woman by 2020. i want your take on who it should be. with rosa parks. i have not heard that out there yet. i think that would be an awesome $10 bill. joe? joe: i'm going to say barbara jordan. i am biased because she is a texan, and i lived there for a while. home state bias. alix: guys? reallyi would you be boring and say eleanor roosevelt. played a big role in the depression, crucial role in the formation of the united nations, even a background rolled that she is my nomination. there is an amazing documentary on her. it was awesome. check it out. paul? to go withgoing clara barton, blast from the past, someone who was instrumental in improving wartime sanitary conditions, save the lives of thousands of

soldiers, but my number two would be my mom. alix: aww. joe: if we could personalize bills. alix: i was trying to find out what was the $10 bill and the room or was because of counterfeiting, but there is 1.9 billion dollars of notes in circulation. not that much. us.ks for joining paul, you're sticking with me. there will be much more on the fit it ipo after the break. ♪

to theelcome back bloomberg market day. i am alix steel. itsnasdaq edging above

march peak really boosted by the biotech sector. fitbit did not hurt much either. this was after heavy demand for the ipl led the company to boost the size of the deal. also the home rental site airbnb is in talks to raise funds, as much as a $24 billion valuation. we take a look at the animal spirits, all things tech, all things innovative, what does that tell you about the market? the market is starting to pay attention to the economy. the market is starting to pay attention to what the fed is saying that there might be prevarication among the officials about when to make the first rate hike. alix: when you see these companies go public, airbnb, 24 billion dollars valuation, is there concern there will be a private bubble in the public sector? paul: that is always a concern,

but i think the fed is really committed to raising rates at some point. it will not be possible for those deals to get a lot of traction. of itdoes that part first? to we not see a $24 billion valuation if the fed raises rates? paul: i think it is probable that fitbit and other companies that do ipo's in this space have to rely on their own fundamentals. there are tech ipo's that have not done as well. i would not be inclined to take too much away from that. alix: i want to talk about bubbles. was on bloomberg television earlier. let me play for you what he had to say. power, they came into they said basically we need to keep this bubble under control, because otherwise this is going to end badly. guess what? 18 months later, the housing

bubble. i think it is very badly position. alix: he went on to talk about a potential 30% collapse in chinese stocks. what do you think? think chinese stocks have gone too far, too fast. it really has been a lot of speculation about what the chinese government and the peoples bank do to improve liquidity conditions. we would not be investors in china right now. alix: it is significantly different than other countries pumping money into the system. gold has not been holding up for the chinese. does that give you pause? paul: yes in that china is not really an investment culture. when they need liquidity, they might just let the stock market run for a while.

but that is a poor substitute reallyy are not controlling or managing it very well. catalyst for the the bursting? 20 stocks are headed for the loss since 2009. what is the catalyst? paul: it is hard to say. it could be one of those large state owned enterprises, maybe a copper producer that cannot pay its bills, cannot make a payment. alix: isn't that a good thing? if the government does not go in and save it, doesn't that mean they are focused on reform? paul: for the long run, you are right. for the short run, it creates all of these fears that there are other companies waiting in the wings, yet to declare the rum bankruptcies and defaults. mccoury pointed out in an investor note that investors are fleeing at the first sign of

trouble, but a lot of that is foreign money, not domestic. paul: that is right, and that is domestic company switching into dollars. alix: tell me about that. paul: there's not a lot of capital mobility in china. they will bring it back in exchange for rmb. but if you are worried that the depreciate, what might you do? some of that outflow being registered is really just local firms. alix: what is the contagion fear here? if there is a bubble bursting for chinese stocks, how does it radiate? paul: you'll see a lot more chinese money trying to leave the country. there are ways to manipulate the rules for that to happen. the second thing, chinese

economic activity would slow. we would see more bankruptcies in china. more concern about the local have seriousat debt problems and that will trickle into south asia and china's trade partners, and from there into the rest of the world. right, thank you so much, paul. great to have you. paul christopher, wells fargo, chief international strategist. coming up on the bloomberg programmingcode and may seem like a foreign language, but hollywood has been mastering it for years. we will be right back. ♪

-- alix: breaking news for you.

we are tracking smith and wesson. first-quarter estimates, but revenue coming in light at the high-end of $45 million. a share. we see the stock lower as a result. for more, we want to get our top stories at this hour read in ages he that tracks extremists says the suspect in the shooting of nine people was not known to the organization. an official of the southern poverty law center's has they were unaware of suspect dylann roof. the shooting is being called a hate crime. an emotional president obama spoke about the violence earlier today. president obama: i have had to make statements like this too many times. communities like this have had to into her tragedies like this too many times.

we don't have all of the facts, but we do know that once again , incent people were killed part because someone who wanted to inflict harm had no trouble getting their hands on a gun. alix: a librarian, a recent college graduate, and 87-year-old woman are among the dead. among the dead, the pastor, who was a south carolina state senator. earlier, the house passed his fast-track trade measure. the president won with mostly republican votes. the senate may take up the measure next week, but they would still need support by democrats. open source software company red hat is reporting first-quarter profit estimates that beat analysts estimates. also talked estimates. growth trailed

estimates. the company shares have gained about 14% since the beginning of the year, down about 2% in after-hours. fitbit ended up in its trading debut. the maker of the wearable fitness tracking devices raised $732 million. isthe ipo price, fitbit valued at $4.1 billion. those are your top headlines. computer code is not sexy, exciting, or visually appealing. nevertheless it has made numerous appearances in movies and tv in scenes that run from realistic too fantastical. here's a look at how code has been portrayed on film over the years. ♪ >> code.

>> code. >> code? >> quite the little coder. who canu know anyone beat 2 million lines of code? simple i do not even see the code. all i see is blonde, brunette, redhead. give me a systems display. >> wait a second. >> i think you better come over here. >> i have never seen code like this. >> wow. >> [indiscernible] >> i think we've got a hacker. >> i am getting hacked! huis that all you've got, h? come at me!

>> this is not good. >> 15 seconds. >> go, go, go! >> aah! [fiendish laughter] >> turn them off. >> shut them all down. alix: that wraps it up for today. thank you for watching the bloomberg market day. i am alix steel. have a wonderful afternoon. we will see you back here tomorrow.

tells me whyends he feels betrayed by ellen pao's tales of gender discrimination at kleiner perkins. ♪ i'm emily chang. this is "bloomberg west." jumping in itsit public trading debut. what it could mean for the world market. a $10chipmaker with million bet on china. all of that ahead on "bloomberg st