all involved are speaking optimistically about the negotiations. ofty: teaming up with one the largest ad agencies to start a new division focused on brand sponsored video content. matt: changing pace in the healthy food revolution. the chief executive of california pizza kitchen on if they will eliminate artificial ,ngredients from their food following the lead of papa john's. good morning. i am betty liu. pimm: i am pimm fox. let's look at the u.s. stocks. a mixed trading in equity. 21-22.

basically unchanged. a lot of people were concerned about what was happening in greece and if they will be a deal to unlock more money. let's look at the top headlines. in the real estate industry, homebuyers were out in force. home sales rose to the highest level in seven years, up two point 2%, beating estimates. the game in april was up more than eight percent with buyers taking advantage of record low mortgage rates. the prime minister greece has a little bit more than a day to get a deal done. eurozone leaders say greece is getting serious about reforming the economy, and they want to break through by tomorrow. they want to play in addressing pension and tax reform. chancellor merkel calls it a step forward. thell participants of

discussion, including myself, say we would like greece to stay in the eurozone. with greece put forward was progress. we noticed that there is a lot of work to be done, and we are running out of time. therefore, we have to concentrate. pimm: a battle in athens or . -- four tsipras a new poll says the majority of u.s.cans want to send troops to iraq to fight the islamic state. according to the wall street journal nbc news survey, 60% favor u.s. troops fighting the islamic state forces. have say that the troops should stay as long as it takes to ission.e the m counting on a shaky

coalition to pass the president's trade agenda. he made 60 votes to pass fast-track legislation. republicans restructured the package to win approval in the house. walmart is taking down the confederate flag. the world's largest retailer will not sell the confederate flag products in its stores or online. last week's church massacre in south carolina renewed debate over the banner. doug mcmillon: we do not want to sell anything that offends people. i was surprised we carry some of the items in our marketplace, which is third-party sellers online. we decided to discontinue it. betty: walmart is not the only one taking action. calledrolina's governor remove the oneo

flying over the capital. the governor virginia once it vanish from state license plates. papa john will spend $100 million at year to clean up its menu, eliminating artificial ingredients and additives. most of those are in the dipping sauces. the industry has been shifting to more natural foods. those are your top stories. in the next hour, it is official, aol is a division of verizon. i spoke with ceo tim armstrong about how it will change a well's business. the ceo of california pizza kitchen sits down with us. the is he doing with california feature kitchen menu, and is it resonating with consumers. and we have an exclusive interview with former greece prime minister george papandreou

. we will talk about lessons learned and the challenges facing the current prime minister. those stories, and more, ahead. pimm: if athens avoids default this month, will a short-term solution help to fix a long-term solution? it is good to have you with us. is this a solution or something to temporarily take greece and from the headlines? it takes them away, at least temporarily. nothing sets the stage for long-term improvement. it is hard to see how we will not have further growth -- further debt restructuring in he said that greece will default again, the question is will they default sooner or later? i don't think there's anything here other than temporary measures.

they will reassess in another three months. betty: you are mentioning how george papandreou signed this bailout agreement three years ago. said thate, everyone they are just kicking the can. here is the can. we will take it down the road again? yes, just not for three years. they learn the lesson that they cannot rely on the implementation of these programs .oing forward we talked about implementation in greece is prime minister s -- prime minister tsipras can get this through to his own party. i think that there are huge implementation risks. this is a program that will only go for a few months before there is a reassessment, i think. what would you be telling

them now? take their profit? greek: if you thought stocks at the bottom, that would've been a day ago. one thing we have learned is that the political leadership in europe once to keep the group together. that is a political decision, and it looks like they will go to great links to maintain that. supposing greece was not in the in the euro, which are many and france be arguing they should he admitted as a member? not a chance. the politics. we are seeing an effort to keep the program together as a sign of political success as much as anything else. my guess is that they come to an agreement late this week at the summit. betty: are you surprised we are here? robert: no. and i will not be surprised in the year or two years when we

are talking about it again. it is not a sustainable situation. that if we are back in three months, six months, one year, two years, this will continue until we get major reforms. whether or not greece is in the euro in five years is still a big question mark. pimm: if you have risk capital and you want to deploy it, do you buy your own or -- do you buy euro or greek stocks? abert: greek stocks have had nice bounce, but i'm not sure if that would continue. i'm not sure i would want to own the debt for anything more than a short-term trade. in the background is that the european economy is growing. it is only a three-year series, but it has been a record composite.

add liquidityto through september of 2016, so that looks like an attractive place for risk assets. isty: should we ignore what going on? we are still fine? robert: the dollar is stronger today, especially against the euro. a lot of people thought the fed had greece as a concern. if greece is not a concern, the fed can move forward on their policy adjustment. eggs are looking better in the u.s. and european economies. pimm: thank you very much. robert sinche a global strategist. on greece when we hear from the former greece prime minister george papandreou . a deal withes verizon. we will hear from aol's ceo, tim

armstrong. that is next. ♪

pimm: welcome back. . am pimm fox with betty liu let's go to julie hyman with a look at what is moving in the markets. stocks giveve seen up their overall gains. western digital is the worst performer in the s&p 500. downgraded to neutral from over at jpmorgan. the analysts are looking at a pessimistic outlook. year they will be down, and in 2016.her 2.3%

that is in part of weakening demand for personal computers. shares are down 2.5%. the worst-performing group is utilities, and that has been the worst group all year. you can see the stocks trading lower. one of the reasons, the biggest reason that utilities have underperformed, is that when rates rise come utilities fall. some investors and they like -- they look less attractive. yesterday they raise the recommendation on utilities because they think the valuations look attractive right now. looking at my terminal, you can use the ge function to map historic ratios. this is the s&p, the blue line, and the philadelphia utilities index is the gold color. it comes down as the stock comes

.own the s&p is trading closer to 18 .imes this year's earning the bernstein analysts say that they tend to outperform in the summer, interestingly enough. from an issuer of reloadable prepaid debit cards. you can see shares surging 35% newr the company reached a deal with walmart and authorized a 150 million dollar stock buyback. his deal with walmart was effective as of may 1. one analyst commented that there was a lot of question about renewal. in some traders minds, there was, because we are seeing an outside reaction to the walmart deal. pimm: of 35%. well done, julie hyman.

darden restaurants will split and transferrties them into a real estate investment trust. the real estate will be publicly traded. they will sell 75 restaurants and use the money to retire $1 billion worth of debt. at $2.5 billion for kkr. they spend a little more than $1 billion to buy capital safety in 2012. they make our nurses and lifelines for construction workers. a fitness chain that charges $10 a month is going public. planet fitness says that they are the largest operator of fitness centers in the united states with 1000 locations and 7 million members. those are your top stories. shares arell off-line. verizon closed on its deal to

buy the tech company. tim armstrong will still run a well as they owned unit of verizon. he will report to the verizon president of innovation. i asked him why he is reporting to marni, and not the verizon ceo. tim: i was excited about the deal. after being in the leadership , thatgs, i told marni i'm open to one plus one equals 10. i'm excited to be in her group. our job is to make the whole team as successful as we can. betty: in the press release i noticed that a digital media service as part of verizon will report directly to 10. will there be overlap? formed a newn

organization to drive revenue diversity in the future, transforming what verizon would look like in 5-10 years. we have made a number of digital media service acquisitions. that is part of a bigger vision of how we could be a global media tech knowledge he company connecting creators, , withisers, publishers premium content and digital experiences for consumers. that led us to a well. togetherhose assets under 10 makes sense if we are driving toward this vision of having a number one global media technology company. betty: over the years i watched you will this added tech that form for aol. that is one of the reasons verizon's excited to merge with the company. this says that the share of the

online advertisement business is 7%.l zero google at 31%. .hey spoke at 7.9% how do you differentiate yourself when you have google at such a big lead? that is why this deal is so powerful. our assets, platforms, and content are more powerful than our market share. connected with verizon will turbocharge us. i would not he surprised if we do not end up in the top three market share holders in this basin three years. with all of the added assets that are coming, this will be a much expanded business over time . i spent 10 years at google and have a lot of respect for them. they have been great partners for us, but no one owns the future. we are about the future.

mobile is a platform shift like the internet was. you'll add 2 billion more people and hundreds of billions of dollars in revenue. this is the best set asset combo to go after that. marni and the team has a big vision, and so do we, and that is why people are excited about the deal. betty: how is aol turbocharging verizon's advertisement offerings? oili: we say we have the in the ground, but we need the rig to bring it up. the talent in this organization is unbelievable. to know time getting the talent and making sure we had a cold roof it. -- making sure we had a cultural fit. us, becausese for it gives us a way to monetize

above the access network, which is what we are striving to do. we have the vision, and think we can make it happen. betty: that was the interview tim armstrongo and the verizon president of innovation and new businesses. when people first what tim armstrong was doing thought that he was creating a content company. pimm: because of the huffington post. for $350 bought that million, and he bought other properties. well's --ls -- what a what aol's strength is is advertisement delivery. for is the big moneymaker aol and verizon. mentioned, it will be interesting to see it and well, under verizon, will be

able to compete with facebook and google. appealing,are less and the sponsored native advertising, like video and actual articles posing as news articles, that is what is grabbing advertiser and user attention. betty: that generates a lot of profit, but a well -- but aol has found their growth was 21% in the last quarter, but they are still losing money to his of how great the technology is. pimm: at least they have egg pockets with verizon. ockets with big p verizon. up next, emily chang has an interview with the ceo of blackberry. sniffing out money with a new ad company.

details, next. ♪

native advertising. some may collect infomercials. it will be a billion-dollar business next year, up near 19% according to the marketer. ig wants its share. they will create sponsored video content for advertisers. betty: an interesting name. what else is interesting, why is infomercial such a hated word, yet we all except native advertising. in infomercials, people are clear that the information is being paid for by the company

offering the product. with native advertising, when you do a little bit of digging you know, but it is not immediately apparent. anday not be more likable, moret -- it may be likable, and advertisers are counting on it being just as likable as normal news content. it has to do with someone telling you that they use a product but they may not have to tell you they are being compensated. i read the daily mail website because it is a tick is. .- it is addictive when i see sponsored content i do get turned off. even if the headline is fine, i don't want to click on it goes i know that i am being -- because

i know i'm being sold some thing. pimm: the amount of money that is being spent on native advertising, content that is paid for or being coming out of the market budgeting for company, $4.4 billion. tim armstrong is happy about that. betty: he is very happy about that. go to any movie, "drastic brand" world", i lost track of how many brands were embedded in that movie. pimm: coming up, we will show you eagles destroying the timber industry. ♪

♪ pim: welcome back to the bloomberg market day. the fed governor says the chances are about 50-50 that the

federal reserve will raise interest rates in september. his forecast assumes more growth than in the first half of the year, higher inflation, and a stronger labor market. the federal reserve has and raised interest rate since 2006. new home sales rose last month to an annual rate of 546,000. sales were up 2.4% beating estimates and aprils gained was revised upward. buyers are taking advantage of the rate that is still near record lows, german lawmakers have booked next week on the next step increases rescue agreement, that is only if the parliament approves any proposal. the prime ministers having to lobby his own government to sign off on a new plant. the problem is that it calls for a pension plan reform and higher taxes. the party without they would not

back more austerity measures. at seven bees, they will have more than a billion dollars it can borrow to make loans to their clients. by's will have more than a billion dollars to borrow. those are your top stories. the markets are closing out in europe, so for the very latest we go to mark barton in london. were not as big as they were on monday. still the best today law since january. leaders did agree that greece's government was getting serious about reaching a deal. the biggest tuesday gain for the dax in july 2012, over 50 billion euros of value had been added to the german benchmark. jpmorgan says it is time to start buying german stocks again, predicting a 13% jump through the and of the year.

monday, a 9% rise on 6% rise on tuesday, 16% increase over the two day. greek banks as measured by the in twodex up by 33% days. the most in two years. close, you at this would be sitting on the gains of 48%. on monday and tuesday, that is astonishing, as is the fact that every single index within the stoxx 600 rose for the second consecutive day. these are the big stock movers. the owner of stop and shop is in final negotiations with the company that owns food lion stores. this would create the sixth biggest retailer in the u.s.. this is the u.k. oil company. by 6%.are up

air france, klm is up by 2%. the dutch government said they could buy shares of it is competition combat from low-cost and middle east airlines. that is the latest, back to you. pim: coming up here on the bloomberg market day, an exclusive interview with the former greek prime minister, hear what he has to say about potential deal, the prime minister, and of course the greek parliament. fresh, california pizza kitchen's chief executive joins me to talk about enhance efforts for russian greetings in its menus, we have got interview with the blackberry chief executive on the company's latest earnings report and how they plan to strive and survive in these tough times, though stories and more ahead in the bloomberg market day. a bite outtle taking

of the timber industry. demand for housing translate into greater timber demand. while the forests of western canada contains a large amount of high-quality lumber, a small part eating beetle is threatening the supply. eating beetle. they are preparing for battle, they work as a health officer. recently, he is been finding more and more unhealthy trees. >> is it fair to call this a war? what some days, the planning going into it looks a lot like battlefield planning. >>'s enemy is tiny. a mountain pine beetle that burrows into the trees. >> in large numbers, the beetle is able to kill a mountainside of pine within several years. dyingm the air, dead and

pines appear as red and orange flecks. timber means big business in alberta but in neighboring british columbia, is the major industry, and the beatles rapid spread encouraged by several unusually warm winters and so far it is killed 60% of the harvestable pine trees. >> it is one of the greatest natural disasters that has ever been seen, certainly has ever been seen in british columbia. >> roger hutchison's head of investor relations, one of three giant canadian timber firms rooted in british columbia where it lumber is the biggest a single export product. >> there has been more trees through the last 10 years then there otherwise would have been, it has been a race to try to get the economic benefits for the trees. >> in the timber town,, that rate, of harvest helps the company's sawmill expand into one of the world's largest. , but local lumber production has fallen more than a quarter

in the past decade as a supply of mature trees has run out. >> it takes 60-80 years in british colombia for a treat to grow to become large enough to go on the saw. a tiny will not wait for beetle, and so the saw mills close, the big canadian companies have been heading south of the border to buy dozens of u.s. operations. >> our dependencies very high. workingon spent years in timber and is now mayor. >> they pay about 95% of our industrial tax rate, they are the largest employer in town, by far, and if they start to shut their mills down, it would send a shiver through our community. >> is there any unhappiness when people hear about companies like west fraser moving down? >> absolutely, there are people in the committee that feel like the money that has been made in

british columbia, the money that has been made off of a public resource all ended up being invested in the united states. alberta, forster officials hope their efforts will stop the beatles march and spare their industry from a we are joined>> is theeight report, but beetle really responsible for pushing the canadian timber firms to the u.s.? >> it is been a big fact are. they're the ones, when you talk about this, they said that it really accelerated their moving to the u.s.. do it faster. one other infected had was to make the operations a lot more efficient, back in the day, they would throw away all of the old part. now, they are using them for things like biomass. in the u.s., you have a huge demand in housing which fell off a late to thousands, 2008, 2009.

they want to be near the market. >> obviously beatles, in this case, the mountain pine beetle doesn't recognize national borders, so what does this mean for the timber industry in the u.s.? >> we have seen outbreaks in colorado, in parts of the u.s., big lumber operations and the canadians are really concerned that this is across the rockies, successfully into alberta and could go as far as the atlantic coast,? what does this mean that they are beefing up the operations in order to take advantage of the fact that they can get the lumber out now? >> where is the replacement going to come for the trees? >> it is a 60, 70, 80 timeline. the government might say, cut as much as you can right now so we can get the economic part of these trees, otherwise they will be killed by the beatles. thereerm effect is that will not be that supply down the road and they will have to look at different species in different locations which is why the reasons why they are down in the u.s.? >> well done, you can check out

this report on the web, thank you very much? still ahead. he helped navigate the greek crisis when it first bubbled up five years ago, the former prime minister joins us in his lucid .nterview, that is next

tim: let's look at some of the top stories crossing the bloomberg terminal. it is a victory for president obama and his trade agenda. the senate voted 60-37 to advance the president's fast-track legislation. the final vote is that for tomorrow at the latest and that would send the bill to the president's desk for his signature. it would make it easier for the

president to finalize a major trade deal with asia. line operator carnival reported second-quarter profit that beat analyst estimates. carnival says looking for the next three quarters are running well ahead of last year and carnival and other cruise lines have shifted friendships to the caribbean from the mediterranean in recent years to counter their weakness in european markets. and, tom brady, here in new york, killing his four-game suspension for the deflate gate scandal. the new england patriots quarterback is making his case in front of the nfl commissioner. his lawyers are expecting to refute the report on the flighted footballs used during the afc championship game. and those are your top stories. and restaurant spending, brands such as chipotle, panera, and a papa john's working to banish artificial ingredients from the menu in order to satisfy the diner. well, the california pizza kitchen uses farm fresh and

regionally sourced foods and is in the process of revamping many of their locations. the chief executive of california pizza kitchen joins us now all stop thank you for being here. >> tell me a little bit about this trend in which we have heard over the last couple of weeks many major changes come out and say, by a certain future date, no more artificial ingredients. >> well, what is next? there are gm is, there is hormone free, there was nor preservatives, this goes on and on and on. it is really about having an overall strategy. it is about giving guests highest-quality food that they can. as customers come out and say, we want you to make a statement that says no more artificial ingredients in any of the food you serve. is that the way that you would gain even more support, let's say from your restaurant group? >> we have had very good ingredients. it is not just taking one piece of the puzzle. it is accomplished competent strategy that you need to develop. right now, is providing the best

quality of food that you can, that is what we are trying to do, rather than thinking, it is artificial ingredients here or coloring here, it is an overall holistic approach. tim: tell us about -- : tell us about the business, what have you been doing? >> what we have tried to do is take a look at the history of the california pizza kitchen and bring it forward relevant to today, two 2015 and beyond and looking at what that history of innovation, creativity and daring to be different first to market approach back in 80's and 90's, and really bring it forward to today, stretching our boundaries a little bit, not just about pizza. it is adding thing like this either like salmon or the halibut that we do in the pizza oven, we have added a ribeye steak, items that can stretch our menu with unique flavor profiles is what we are known for, not just about pizza. have 400 locations.

you would like to at anywhere from 15, 18 new locations the year? >> right, we are transforming our restaurants, much more california like. that is going very well, we are adding some new units in the u.s., we are growing significantly internationally. : are those franchise agreements? >> they are, we have partners from over the world. pimm: tell us about the costs involved. what is happening? >> we are fortunate because we have such a diverse menu. food inflation is alive, it is fairly nominal for us and we try to keep our pricing as conservative as we can so we give the guests a great experience. >> any idea when it becomes incredibly -- publicly traded company? >> right now, it is all about

trans forming the brand, getting guests to come in and see what we are doing which is pretty unique. you, i want to thank california pizza kitchen's chief executive. still ahead, he helped navigate the greek crisis when it first came to attention five years ago, the former prime minister george papandreou joins us in an exclusive interview next.

this is the bloomberg market day. now to the latest on greece where, as you all know, a last-minute deal is in the works. my next guest is familiar with the challenges that the greek nation faces as well as what goes on to these kind of negotiations. george papandreou was prime minister of greece from 2009, 2011, he joins us from switzerland. thank you for being with us. asl us about what you know far as the negotiations and what we can expect in the next 36-48

hours. prime minister papandreou: obviously there was a breakthrough yesterday. the basis of the greek proposal from the government was accepted as a good one. now, there are a lot of technical discussions and heightss the technical some basic differences in policies, so, we still have a lot of work to be done, but it does give a positive sign that there is a narrowing of differences and i do believe that if one has to wager on this, that we will reach an theement, i think that from basic thing that the greek government is looking for now is a strong commitment on some form of taking the burden of this huge step we have off the shoulders of the greek people even that we did have a major haircut in 2011, the debt is still quite heavy and that also ways on the confidence in the

markets, that would also allow for greece to start investing in growth, on the other hand, continued fiscal conservation and making sure that our pension system is sustainable, even though we did make major reforms, still, there are certain issues pending, these are the issues which we think will be permanent in the discussions over the next few days. you give us details about the political situation and the various forces that would have to come together if a deal is included? prime minister papandreou: when i had to ask for bailout, there was widespread opposition from the other parties in the opposition and, i had to move things along, today, there is a huge spectrum from right to left, which has basically's separated this doers of this adjustment program and when this government decides if they do on an adjustment

program, whether is an extension or new one, we will have basically seen the whole of the greek political spectrum, having dealt with this crisis in a similar matter, so i think there will be a very widespread consensus beyond the confines of the government's party. >> well, the prime minister will have to put his full weight ownnd the agreement in his party where there is opposition, but i think he can do that. >> what can you tell us about the political follow-up from leaders such as angela merkel of germany? >> well, angela merkel has verywed a policy of very reluctant acquiescence to the bailout. i think that germany has to follow policies much wider growth policy in europe. we have had quite a few years of recession.

the idea that austerity after recession will be enough has been a drag on the economy. i think we need investment in public infrastructure and energy , to medications and transportation throughout europe to unify the single market. investment in high-quality education and research and development. this is where europe is competitive and where we need to go. secondly, we need to further integrate into the strong banking unions and fiscal coordination. and things like eurobonds. i think that that would be very important. not putting the burden only on the periphery. germany has a high current account surplus. more spending would be better. to the should compare it united states, we did things the other way around. the united states had tarp and it seems to be getting out of

the conundrums of a recession quite well. we did not. constricting not sturdy policies. the men states began qe in 2009. it is a slow process in europe. europe, it does have the potential to move forward if we work together and we move away from what we have seen over the past years and months is the blame claims of who is at fault. we have systemic problems, we have to work together. that is the spirit of europe, that is the spirit of the european union. if we do so, we can overcome these problems. pimm: i want to thank you for joining us, the former prime minister of greece, george papandreou, joining us by telephone from switzerland. check on u.s.to

stocks. we are seeing very little change. over is indeed an optimism a potential outcome in greece. there is economic data. new home sales on the flipside, the yields are moving higher. that might be suppressing any games. options anding in bring in kellen kelly. he is a chief investment capital at recon capital partners. let's get straight to your trade since we have limited time. health care is the group you are looking at. we have seen it is very busy out of late because of the sort of speculative consolidation. it has done quite well. date, the sector is up 11 and a half percent and it incorporates some biotech, pharma, as well as health care insurers that we are talking about. yesterday, a person went in and bought 5000 contracts, 75,000 in january, actually they bought

them. this is at an all-time high. it is pretty interesting, they paid about four dollars and $.10. the best way to play it is to do a risk reversal so you can go $69 put,nuary, sell a take in that premium and then by the $75 call that they bought as well and it cost you about two dollars and $.60 as opposed to four dollars and $.10 that they paid. is already call trading about that level. it is not as though you are a raging bull and this run is going to continue, it is just that it is going to maintain the game. >> at artie had a dollar 60 in premiums built in. the trader had no choice but to do 75. julie: unless you really were you were thinking there would be significant upside. >> yes, exactly.

they are going into january. it is one sector that we know, all season government regulation is on the forefront of everybody's mind. this is a trade-off. nobody knows what is going to happen. it was a 3% 2011, year for the s&p 500. that is where they are going. julie: the potential for consolidation doesn't hurt. >> moneys cheap. julie: don't go anywhere, everyone. more bloomberg marketing is coming right up.

it is noon here in new york at midnight in hong kong. doug macmillan says the company will no longer sell

confederate flag merchandise. pimm: another disappointing quarter for blackberry. we will ask john thain how you plans to turn around the company. have overd airlines baggage fees. is it fair to consumers? ♪ pimm: good afternoon. olivia: let's begin with a look at the markets. u.s. equities fluctuating near record highs. let's call this unchanged. federal reserve officials, comments, speculation that interestat