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 interest rates will rise this

year. oil futures rising for a second day. a government report may show that u.s. inventories fell for the eighth straight week. that was true, it would be the longest stretch of decline in seven weeks. just above $61 a barrel in new york. pimm: and the bond market, a little bit of a selloff. prices lower. many bond traders are all watching what is happening in greece. thes see the currencies, dollar is strengthening, 1.1183 on your trip. the yen losing strength against the dollar, pound a little bit lower versus the dollar. let's take a look at some of the top stories. begin with a victory for president obama and his trade

agenda. moments ago, the u.s. senate voted to advance the legislation. the final vote is set for tomorrow at the latest. last month, the senate approved a similar measure. republicans restructure the package so is would -- so it approval in the house. walmart is ticking down the confederate flag. it will no longer sell confederate flag products in its stores or online. last week's massacre renewed debate over the banner. talked about it with the chief executive. : we don't want to sell anything that offends people. we have over 7 million items. we decided to discontinue it. pimm: walmart is not the only institution taking action. south carolina's governor is

calling for the legislature to remove the one flying on the statehouse grounds. since that these governor wants removed from the state flag and the governor of virginia once wants it vanished from license plate tags. sales up 2.2%, able gain was revised upwards of more than a percent. buyers taking advantage of mortgage rates and better still near record lows. meanwhile, the fastest rising home rental prices in the united states are in jackson, mississippi. that is according to zwillow. year.23% more than last rising in larger cities like san francisco and denver.

ranch rose more than 4% nationwide last year. olivia: it took four weeks for verizon to complete its takeover of aol. it will turbocharged aol content is missed. -- business. walden spoke with betty liu and said content was king. content is a huge part of making that happen. all the best content, whether it is live, on the demand, emerging content, and all the content aol brings will be part of that. meanwhile, arianna huffington has signed a contract to remain president and editor in chief of the huffington post. the announcement ends the uncertainty surrounding her future after the website was

acquired by verizon. continueis poised to all the way through 2017 according to blackstone director, john susa-- studinszki. the: we're looking at expansion that could be longer than nine years. you're going to see a record amount of activity this year and next year and potentially the year after. he named telecommunications, health care, and energy sectors most likely to see even more deals. there is a sign that demands for american-made goods is rising. nonmilitary goods were up by

4/10 of 1%. orders for all durable goods a drop in theng volatile aircraft quality. pizza kitchen is a eliminating artificial isitives -- papa john's eliminating artificial additives. those are your top stories. i have never been to papa john's. pimm: i'm not going to save you there. this is a trend, chipotle, ra, california pizza kitchen. restaurants are responding. olivia: how do you make trix without artificial coloring?

in the next half hour, we talk with the ceo of library. -- blackberry. there are signs of life in the company. smart sales continue to tumble. pimm: and a recipe for success. after changing the olive garden menu, they are now spinning darden restaurants into a real estate trust. olivia: it looks like alexis tsipras is getting serious with you creditors. it can he get a potential bailout agreement in the left-leaning greek parliament? pimm: the world's largest retailer is in the midst of a turnaround as currency swings each into profits. walmart has been a bellwether for the u.s. economy. what does it have to say about the pulse of the u.s. consumer? olivia: we asked the ceo.

it is encouraging to see auto sales improving. post crisis, people got conservative. debt levels have come down, debt levels for customers and consumers are down dickstein percent since the peak. the fact that they feel confident enough to go out and a new vehicle is encouraging to us and it is helpful that fuel prices is low. betty: what of you noticed the areges on what americans buying? non-foodis good to see sales get stronger. that is amazing. this brings me to the tpp. it is not with china, but it is on the table right now.

the president is pushing to get fast-track authority. what would approval mean for walmart? it is good for the country. we are supportive to the tpp. we already export american goods into china and there is a great demand in china for products. this particular set of agreements does not include opportunity ines japan. they are really responding positively to usd approved beef. olivia: asked me about e-commerce. that is what everybody seems most excited about. they say that if anyone can take on amazon.com, it will be walmart. doug: we have to use the assets we had today, and build new capabilities. the way we think about is that the competitive dimensions have been redefined. lu and price are redefined relative to how they are

communicated to customers in the past. take deliveryyou of a product has changed and the expanse has changed. it is not a how you are treated in a store but thanks. -- ine on our mobile apps a store, but also how you are treated on our mobile app. and it is early days but it looks like a product that can compete with amazon prime's subscription service. prime heavilyzes with fees from third-party merchants. the air willing to keep the cost. how do you think about the cost of subsidized shipping? doug: we have been investing in infrastructure. as those capabilities come online, we can provide customers with more alternatives as it

relates to shipping. we don't want customers -- to think about where they have to shop. we want to have all the services available including shipping or picking up in the store. around the world for a second. how is lamar doing internationally. -- walmart doing internationally? tell me what markets are thriving and where would you think you might need to reconsider strategy? doug: canada and mexico, they are bigger businesses, and they are doing great. our team in the u.k. is innovating. china is imparted for the longer term. we have a little over 400 doors there and an interest in an e-commerce company in shanghai and are learning how to bring digital and physical together in china just as we do in the united states. that is going to be really important for us in the long term. he also have several markets in latin america. we are in 28 countries. we also opened our first

store in kenya. olivia: talk to me about china. the store traffic numbers for china were disappointing. doug: it relates to hypermarkets, we are growing our market share. not only does traffic matter but also the ticket. e-commerce is the big story in china. i am really glad that we have an acid there to learn more about that business. that was walmart's president and ceo doug macmillan. it was so much fun to have him here. i learned a lot about the company and it is an interesting time for the company. they have telegraphed the problems they have in the u.s. stores well. service,investing in e-commerce.

you are already perhaps starting to see progress because they have had three straight quarters growth. pimm: they have the online component they have to somehow revamp. they are offering daily specials now. olivia: their specials on everything, all the time. wasconfederate flag, it particularly interesting to me that walmart decided to publicly do it. nobody was calling on them to do it. it is fitting into a trend that we have been seeing from walmart. earlier this you they came out very publicly, doug macmillan campaigned against the new religious freedom law in arkansas. againstiscriminatory same-sex marriage and they got an amended. they did a similar thing in indiana. walmart is taking on social issues. thank you.

much appreciated. still ahead on bloomberg market day, it may be a turning point in blackberry's rebirth after years of crumbling smartphone sales. it appears to be finding a second life as a software giant. chen joins us live next. ♪\

welcome back to bloomberg market day. olivia: let's go straight to julie hyman for a look at stock hitting all-time record highs today. julie: talk about facebook. the stock has been climbing.

i'm looking at it versus walmart. with facebook up 30%, its market cap is actually larger than that of walmart, which is pretty incredible, given the relative sizes of the sales of the companies. take a look my bloomberg terminal. i have the market cap for your to date of these two companies. of5 billion, the market cap walmart at $233 billion. and is now in yellow surpassing walmart. the sales of the two companies for 2015, facebook's estimated sales at $70 billion, walmart at fort hundred 88 billion -- 488 billion. take a look at the charts for the last two years for these companies. this that has gone up and up after its initial rocky period. -- facebook has gone up after its initial rocky period.

you see what is going on. facebook is now bigger. olivia: i think that is bananas. you see the optimism of technology over economic reality. ofhad a recorded revenue $12.5 billion, walmart had trillion and they are worth the same. pimm: and walmart sells bananas. olivia: that is the number one thing they sell. pimm: talking about bananas, let's talk about blackberry now. but sales fell 32% in the first quarter. it posted an income of $68 million. chen, trying to turn blackberry to a software company. hundred 53% --

153%. hi, emily. emily: john thain is joining us from waterloo. inky for joining us. you hate your software numbers are on track for hitting the $500 million target you set for yourself. what are the chances that you that?exceed john chen: i'm just happy by making it. there was a lot of skepticism about us being able to make that $500 million mark. i think we have a good shot at it. related out in my press conference this morning. you have a lot of cash on

the balance sheet and you have how difficult is it to find the perfect fit for blackberry? perfect fit will be a little bit more narrow. we are investing primarily for two majorat least, in areas. mobile security and privacy and market.ot in tracking and so forth. it is a little narrower. because of that, it makes it more difficult. emily: you did reiterate your commitment to devices today. that said, another drop in

device sales. is it clear to you, the divided -- the devices are not going to be profitable? john chen: it is not clear to me that devices are not going to be possible. in the last quarter we have done a couple of things. we reduced our investment in the device. in doing so, we have boosted our investment in software and in the iot area and sales area. we've also gotten better function with the carriers. we have done to very good contracts and addition to the one we have with foxconn. manufacturingo contracts and they allow us to more efficiently not only build and design devices, but also the logistic side takes away a lot of the liability.

there are multiple things one has to do. it is not one thing that you can just have, a magic thing. over time, with a good set of designs, which we said we are going to do and release of the end of the year, i think all of those things will add up and keep relatively we will get our -- and keep relatively -- we will get our device sales up. emily: i'm reading a analyst report that says that we still think blackberry would be better off not selling devices and the business would be less volatile. guess -- i'm not going to debate that point. am i disappointed? it is steady.

they have been very loyal and have been buying our device. highack from them has been , it has been very good, meeting people like the phone. whoone-two bot -- ones bought it. i'm satisfied. with growing, i am not satisfied. our phone is capable of growing more. think new design comes out, we will have a shot of building the business backup. the most important thing right now is to make it profitable. about the's talk potential for blackberry to make an android phone. you said you would make one that only if it is secure. what sorts of steps have you taken towards it to? kind of conversations are you having internally about whether this is the right step for blackberry?

so, by the way, you are very fast. i hardly set it and you have already tweeted it. twitter now, ion have to take advantage of it. john chen: when i first started -- at the company, it was important that we build across. we study a lot about our competitors. footprint. a big they have 83% of the handset market or something of that sort. we put our software to make sure manage android devices. through that process, we learned quite a bit.

is,nswer to the question prepping on this together rumor, i don't want to speculate on rumors, people ask me will you ever build one, and i said, if i could make it to cure, i will. it is an honest statement. i can't say it is conclusive that all right now. today, thatlso said you would consider company only if it is doing well. what kind of authors are you getting at the current price -- offers are you getting at the current price? with all the cyber attacks and hacking that is going on, we'll kind of consideration would you give to buying a security company or bolstering the security presence? john chen: thank you for that

question. that is a very major focus of hours. we just bought a company called watchdogs. we are very pleased with that. it is already yielding a lot of conversation from our customer base that is very good. anded a catalyst to go back have an exciting and positive conversation. these are all happening, which is good. prior to that, we bought a company the german government uses. emily: we have to leave it there. thank you for joining us. ♪

olivia: welcome back. a german parliament official says lawmakers could vote next week on greece's rescue

agreement if greek lawmakers pave the way by approving bailout measures over the weekend. leaders say greece's proposal says -- shows the country is getting serious about a deal. alexis suppressed -- alexis -- the plan calls for higher taxes. party says they will not back new austerity measures. dozens of striking port workers swarmed the tracks and set fire to tires. a day of chaos in the city of calais that began with a predawn ferry strike. england hoping to reach swarmed the vehicles trying to sneak on board. the union is protesting potential job cuts. at least seven people are hurt after severe thunderstorms hit the midwest. homes were damaged and power was

knocked out in northern illinois. a 20 oh touchdown south of chicago -- a tornado touched down south of chicago. brands of bottled water are being recalled because of e. coli fears. niagara bottling learned one of its sources was contaminated. the recall is for all spring water product produced at it as a facilities. no illnesses -- produced at its pennsylvania facilities. no injured -- no illnesses have been reported. planet fitness has filed for an ipo. the company says it is the largest operator of fitness centers in the u.s. with more than 1000 locations and more than that in million members. that is look at top stories. still to come, a check up on the chinese economy. manufacturing continues to be sluggish but there are signs a pick is becoming. airline fees are skyhigh but help for travelers may be on the way. government efforts to ground some of those fees.

a new day for aol. the sale to verizon is complete. we will talk with tim armstrong about what is next. the latest on greece. alexis tsipras is trying to get theort for his plan to end debt crisis. eliminating early retirement increasing taxes on middle and high income earners. we spoke with a former greek prime minister who says tsipras can be successful. >> a widespread consensus beyond the confines of the government's party. prime minister tsipras will have to put his full weight behind the agreement in his own party where there is opposition. i think he can do that. olivia: let's get the latest on the negotiations. i want to bring in hans nichols joins us from brussels, covering the story extensively. the head of gg in

10 currency strategy at merrill lynch international. right now, technical teams are working diligently, making sure the math adds up. that is where we have been for the last six or seven hours. tomorrow the finance ministers are going to arrive here and if they have a deal that everyone signs off, including the imf and the ecb and the european union, it looks like those finance ministers could codify that proposal. the leaders would have to also formally accept it. then it would go to the parliaments. potentially in the bundestag. the bundestag will not vote until there is an affirmative vote from athens. olivia: i think someone switched the light off you -- like off on you. hans: we are working that hard,

burning the midnight oil. what is your reaction to development in the past couple of days? how much closer have greece and creditors gotten? thanos: the greek proposal was a positive surprise. until recently the two sides were far apart. closehis packet is very to the european proposal, lyrically it is difficult for the government because it is another package of austerity. assuming the deal in the eurogroup tomorrow, the parliamentary voting greece. olivia: alexis tsipras was elected because he promised not to do anything to pensions and that is precisely what he is offered to do.

is he in danger of losing his coalition and his job? athanasios: there are risks, however, the packet focuses more on taxes. the packet does not include any measures that would cut pensions or wages but it does increase a retirement age. the government can argue they are focusing on taxing the rich which is not exactly true. is the packetng is conditional on getting something on debt relief. that is important cousin the government can argue that this time is different because they are addressing debt. however, we do not expect a specific commitment from the rest of europe. at most, they can promise to open the discussion once this deal is approved. olivia: hans, i want to get back

to you. now that alexis tsipras has appeased creditors, finally putting pensions in sales tax on the table, what are the chances he will get more debt relief? what is the appetite from leaders you have been speaking to in brussels to actually cut greece more slack? hans: sequentially, it is quite high but it has to be absolutely a distinct process. if part of this overall package, the extension or whatever -- whenever we get an agreement now includes debt relief come of that will multiply the degree of difficulty for angela merkel to get this through. no one disputes that somewhere down the line after you get through this period, the second bailout package, there will be a third package that is going to include some sort of debt relief. the challenge is that mr. tsipras needs that in whatever document that will be produced

on thursday. the question is, can you satisfy both domestic constituencies. merkel says this is the best tsipras separate -- and is able to say to his parliament , pass this down but i am assured that relief down the line. , you gete was always additional money if you fill the program. the additional money is the money that is left over for a whole new debt restructuring. that would open up negotiations again. i think it will happen. he will be talking in august, september, october. this is not going away. debt to gdp ratio. olivia: it does look more likely there will be a deal for greece.

people saying this is not a bank run a perhaps a bank jog. how worried are you about liquidity with greek banks? athanasios: clearly, this points to the agency of getting a deal done as soon as possible. we believe that once a deal is approved by the parliament, the -- the sector will banking sector has gone through a shock. deposits will not come back anytime soon. the states have to discuss a new package or something different. how to fund greece for the next two to three years. it is likely that the nonperforming loans will increase. duration --stop the

challenges in the sector will remain and any new deal will need to address them down the road. olivia: thank you. also, thanks to hans nichols in brussels. .till ahead, much more the latest on the market rally in europe. we may in fact get this greek deal. ♪

olivia: good afternoon from a

sweltering hot day in new york city. you're lucky to be inside in the air-conditioning if you are. a look at the european market close. i want to head over to mark barton from london. mark: gains were not as big as they were on monday on tuesday. eu area -- the biggest to gain in germany's dax and july. j.p. morgan chase says it is time to start buying german stocks again, predicting a 13% jump through the end of the year. the asc, 9% rise on monday, 6% rise on tuesday. 16% increase over the two date.

.eriod up by 33% in two days, the most for two years. if you bought the stock on the close on friday, you would be sitting on gains of 48% on monday and tuesday. that is astonishing as is the fact that every single index within the stock 600 rows for the second -- rose for the second consecutive day. it is in final negotiations with this company which owns food lion stores. a merger would create the fifth biggest supermarket retailer in the u.s. a u.k. oil company says it has a backlog of record levels. air france klm up by 2%. a dutch company says it could buy shares of it if necessary to

combat competition from low-cost and middle east airlines. back to you in new york. olivia: today, we saw more evidence the sluggish economy in .china may be stabilizing stephen engle has that report from hong kong. stephen: sentiment at chinese factories is improving as the hsbc/tmi came in above estimates -- 49.6% in june. this will be the third month in a row that pmi has improved. if this number holds true for the final reading out july 1. production in china, critic growth and property sales have shown signs of stabilizing as rate cuts and targeted measures to combat the downward pressures in the economy take hold. yet, the survey also showed job cuts were the sharpest in more than six years and many economists expect that pboc to

continue their easing cycle. olivia: for a look at what is happening in the u.s., i want to get to matt miller for the big stories of the market day. matt: not a lot of movement if you look at the major averages. the has not been all day. the s&p pretty much unchanged at 21.21. 121. take a look at my screen. you can see my imap. it breaks down the s&p into different industrial sectors and shows you a deeper red for bigger losers at a brighter green for bigger winners. this bright green pie slice here , i will click into that and you will see this is diversified telecoms. not a lot of companies on the s&p 500. only four and two of them have huge weightings. it is cool.

you can get a breakdown. at&t is one of them, verizon is the other big one. the other are so small that they do not have an effect on the move. at&t is having a great day today. the best price we've seen in seven because if has got two analyst upgrades. ubs and barclays say it will close its directv purchase for $48 billion and change with not a lot of regulatory issues. it is going to substantially improve earnings per share. about $2.90 from what would've been to allow a $.64 in 2016. $2.54 intove been them 16. take a look at the 10 year yield . it has gone up and down but at one point it hit a two week high around 2.4. we're looking at 2.38 on the 10 year yield.

this is something that olivia was talking about earlier with ava kelly. -- with david kelly. she pointed out that traders like where interest rates are rising and not falling. in europe, you still have the ecb printing money. is trying., the head to be as data dependent as is trying tohe fed be as dated and as possible. was i looking at the wrong camera the whole time? olivia.oking at i was giving you my explainer. this is why we see dollar strength and euro weakness. even though, we may have come to a solution for greece for the short-term. olivia: thank you for the shout out and the information. it is a gift. olivia: let's look at top stories at this hour.

searchers are scouring a patch of wilderness in northern new york or those two escaped inmates. police are focusing on an area 20 miles west of the prison where richard matt and david sweat escaped. they are looking for evidence found in a hunting cabin and asking people in the area to support any suspicious activity. tom brady is appealing his four game suspension. the quarterback arrived at nfl headquarters today. now making a case before commissioner roger goodell. brady's lawyers are expected to refute a deport on deflated footballs used during the afc championship game. google is adding a tear to its streaming music service, hoping to capture millions of people who click on the google play music app but go elsewhere once there asked to pay. google's music service costs $10 a month, putting it in competition with spotify. sean combs has been arrested on

the campus of ucla for allegedly trying to attack a football coach. bond.is free now on ateavy metal weight swung the assistant coach for yelling at his son during practice. ucla police say no one was seriously injured. those are your top stories at this hour. another hip-hop mogul, jay-z. his music service set out to save from the economics. the wall street journal is reporting that its interim ceo has been let go less than three months into the job. tidal's backlash was immediate with critics calling the service as little more than a vehicle for jay-z to make a fortune. mark crumpton is here with me now.

mark: an unbroken record of success. you mention mr. tom set was only on the job for three months on interim basis. tidal is up against less than one million subs divers -- subscribers. spotify has about 20 million paying customers. it's not the time when you want merry-go-round in the executive suite. olivia: a lot of competition from powerful companies. a lot of people say he sort of bungled the pr launch. he had the most successful, most well-off artists on stage with him. everybody from kanye west, up there with his wife. beyonce, madonna. there campaigning for artists make more money. mark: it seemed when you see that wide shot and when you see alicia keys, some of these

wealthy, well-known artists and the criticism was it seems like they had their hand back in the till. it did not seem there was anybody looking out for the little guy. they got criticized roundly about that. they are going to feel a petition coming from apple, as you mentioned, getting ready to launch -- competition coming from apple, as you mentioned, getting ready to launch a new streaming service. olivia: what else is coming up? mark: cumberland advisors. we will talk about the fed and greece. lots to talk about, coming up. olivia: i had no idea you knew so much about jay-z. mark: i did not until about two hours ago. [laughter] olivia: mark crumpton, looking forward to joining me. still to come, more on mark crumpton's knowledge about jay-z

. why the department of transportation is setting its sights on airline change fees. ♪

olivia: welcome back to the bloomberg market day. the department of transportation will be looking at whether to put the brakes on airline change fees with price tags hitting $200 just to check the bag of luggage. the number of passenger complaints have skyrocketed. ramy: u.s. airlines and change fees. are in focus as the u.s. department of transportation meets this week to address the issue. nearly $3 billion. this is how much the u.s. airline industry rakes in from you in change fees in 2014. that is a record and more than

triple the 950 million they made in 2007. take a look at who made the most. delta, united, american, us airways and jetblue. these made 80% of all change the revenue that year. delta top at 875 million. united with -- american, more than 500 million. this is what consumers pay now to change a domestic ticket. jetblue came in at $100. it can be higher for international flights. as change fees have risen, so have consumers complaint. flyers rights.org is the biggest nonprofit airline consumer organization. it petitioned the dot to clamp down. it says change fees no longer resemble a reasonable approximation incurred by the airline. merely a tool to get out

ougeumers -- to ga consumers. on the flipside, there is one major u.s. airline that does not charge a change fee, southwest airlines. olivia: i will try to book southwest tickets. still to come, you don't want to miss this. jordan spieth is going to be joining us. can he complete one of the rarest feats in sports? golf's grand slam. he will join us, next. ♪

. .

a it ladainian hong kong. mark: this is the "bloomberg market day."

lipids as it's 50-50. that story, coming up. a golfer has a chance to win the modern grand slam. we speak with the 21-year-old jordan spieth, masters and u.s. open winner, coming up. mark: aol is officially part of verizon. how will it change the company known for websites like the huffington post? ♪ olivia: good afternoon. i'm olivia sterns. mark: and i'm mark crumpton. let's begin with the markets on this tuesday. investors are waiting to see if greece and its creditors can avoid default. all the major indices are in the red. let lower now by