immovable object. well theth the demand greek prime minister says the art of command or the art of chaos. scarlet: the real threat to twitter's future. pimm: the connection between fracking and earthquakes. offers details, details that you only see here on bloomberg. scarlet: good morning. i'm scarlet fu. i almost couldn't say that right. what is wrong with me? pimm: i'm pimm fox. let us begin with a look at the markets and see how stocks affected dow jones industrial average trades lower

by 38 points. people spending more time looking at what is happening with greece the necessarily worrying about what is happening in u.s. stocks. having said that, we are seeing stocks fluctuate near record levels. scarlet: they're following the lead of european equities, which are following -- falling right now. the stoxx 600 down overall. there is the stoxx 50 which is a narrow gauge. the dax is now off by two thirds of 1%. and had already entered a correction. athens ase index of 1.8% right now. pimm: let us look at the top headlines crossing the terminal at this hour. the economy shrank in the first three months of the year, but it was not as bad as previously thought. the government resides the first quarter gdp, saying it fell 2/10 of 1% previously. previously, they said it was 7/10 of 1%. it turned out to be better than

previously reported. the summit is prepared to give president obama a big victory entree. he's expected to win fast-track authority to negotiate an asian trade deal. a procedural vote passed yesterday and a simple majority is now required for final passage. earlier this month, house democrats almost killed the trade measure. scarlet: and france, the french president will speak to president obama about fine resolutions that have rocked its government can wikileaks says the national security agency has spied on hollande and his two predecessors. he is went to make the case of u.s. should not spy on from the government. >> the top intelligence coordinator will go back to united states in a few days so that things that have been put down on paper with some commitments made are at the same time checked, respected, and applied for as the line we will follow. we will remind them that between our countries, this is something that is unacceptable.

scarlet: according to wikileaks, ped ona eavesdrop complaints about u.s. spying. carl icone investor has gotten out of netflix. he sold the last of his netflix state today and he believes that apple represents the same opportunity that netflix offered several years ago. shares of netflix rising today a day after the company declared a seven to one stock split. they are trading at a record high right after netflix has more than doubled in 2015. pimm: you can call this an extreme makeover royal style. ii may need to move out of buckingham palace for much-needed recommendations. the palace has not been redecorated since she took the throne in 1952. the queen, currently in germany today, spent a third of her time in buckingham house. it was first occupied by queen victoria in 1837. those are your top stories of the morning.

scarlet: coming up, is instagram out to take over twitter followers? the new functions and looks might make you think so. cory johnson will explain. pimm: lego announces big plans to make more sustainable toys. it makes 60 billion pieces a year. scarlet: there is a definitive a link between fracking and earthquakes. details on what it means to the energy industry. those stories and more coming up on "bloomberg market day." --m: the latest on greece surprise, surprise, there is no agreement between borrowers and lenders to unlock bailout monday. an important meeting in brussels begins in just a few hours. hans nichols is in brussels. any sense of optimism? good about five hours ago, that is when we first said that hisras

proposal to creditors was not accepted. there's a difference between not being accepted and being rejected, but after that, we know that the creditors extended the greeks a second proposal. the greeks then rejected that counter offer. there's a lot of back and forth in the last hours. leaders in the imf have been in the meeting just a few steps away from where i was. everyone is waiting outside and waiting for them to come out with either a progress report or a report on what more steps you need to do to narrow differences. the finance minister from the netherlands said a lot more has to be done. and the germans are being rather insistent that we are quite far away from an agreement. an agreement in the next 24 or 48 hours, the germans are insistent it gets past in athens in a tangible incredible way. then, it will have to pass the talk in berlin. pimm: can you outline for us what is at stake here?

hans: that is the big question. say whatome that is at stake is the future of the euro. others say that it is the greece hay the imfo and not have a technical default to the imf. most are centered around german chancellor angela merkel. there's a view that there would not be much. another of you says this could be like lehman brothers and this , notave a domino effect just in the eurozone but in the economy as well. those are broad stakes. every time we get close to the deadline, someone pulled a rabbit out of the hat and says it is not the real deadline. the most recent deadline they were operating on its june 30. that is when the current bailout program ends. if you want to extend that bailout program and have a technical extension, you need to have the past some parliament. the most important parliament is germany.

not that germany is more important than any other countries involved, but that would be the hardest. scarlet: hans, we know that the debate sparring between the creditors and the debtors here is on the greek pension system and taxes, like sales tax and corporate taxes. do we know any of the details? how apart are we? hans: they seem pretty close. thereis a document out that it seems like on corporate taxes we are one percentage away. , the creditors want to try to buy 1%. the greek proposal is 1.7 percent. overall, it seems that the imf does not like the focus on because itenues could restrict them on growth. and having proposals to raise revenues is entirely definite -- different than the revenue actually raise.

there is a huge problem with tax collection inside greece. the size of the package that greece is proposing. 98% of it comes from revenue increases. there's not a lot of cutting on the spending side and the imf would like to see more. pimm: i would like to thank hans nichols as we await that meeting of creditors and lenders. chaos or kudos? many talk about the negotiating style of prime minister tsipras. he has been a harsh critic of creditors and makes european officials angry at his delaying tactics. scarlet: he's getting ready for those meetings in brussels with the imf and the european union. cited absurd proposals of greece's lenders and th in a newspaper. three months later, he accused the imf of criminal responsibility and was responsible for financial association. they call the latest rejection of his offer weird and wondered

if they want an agreement after all. pimm: this is negotiating style working for him? in athens right now. what is your take on the negotiating style of the prime minister and whether it is effective? >> judging from the results, we can certainly say that it has not been very effective. disconnect the between a very aggressive style of speaking and accusing the other side and various public forums. , you have anyand go shooting style that ended up with very important concessions. that suggest is that he has to satisfy two very different audiences, a domestic audience that is very unlikely to be pleased with the kind of deal that he ends up with and then he handreditors on the other that he needs to satisfy.

in a sense, he is cornered and he is trying to put the best face he can on that very difficult situation. scarlet: at the same time, it is an impossible situation. it sounds like one. you say he had a window of opportunity and march and he missed it. why was march the best time to press? stathis: even before march, i think there was a lot of sympathy for the cause he represented. there was a sense that the austerity measures that reese had to enact were not really working they successfully. there was a popular discontent that was expressed in the elections. it was quite a lot of sympathy across various european audiences. there was a lot of concern and germany and other places. he had an opportunity there and there were signs that he to a lower primary

target and proceeded with reforms. a lot of people's adjusted that he would target various cartels and really position himself as the kind of reform prime minister that would be affected. but he did not do that. there are many theories for why he didn't do that. either, he was calculated and thought he could get much more, or he was very inexperience. aswas not winning as fast a situation required for him to learn to now, i am afraid that he is going to end up with a deal that is not very good for the country or for his own political future. completed deal is that includes increases in taxes and increases in garnishment of wages, will the greek population actually pay these taxes and will businesses go along and pay increased taxes? stathis: i think it is going to be a very difficult situation.

in fact, the revenue has pretty much collapsed in the last four months. been payingnot taxes very enthusiastically to say the least because of the uncertainty and the promises that they were given. there is an aspect that has to do with people's will, but there is also a set of objective constraints, especially the new taxes that are proposed and businesses are very much going to risk paying whatever is left of the private sector in the greek economy. there's a lot of risk that you may not be able to generate the kind of revenue that you are projecting. of reforms onea the one hand and cuts in spending as opposed to frontload everything on the physical side on taxes, i think it is a good idea. i think that is going to hurt him politically because his domestic support comes from mainly the public sector and

that is what he needs to satisfy. the yale thanks to professor of political science joining us from athens. scarlet: still ahead, will instagram be the twitter killer? instagram is coming out with a new photo option that certainly does not help twitter as it tries to reframe itself. ♪

scarlet: welcome back to "bloomberg market day." i'm scarlet fu. pimm: i'm pimm fox. let us look at the top stories crossing the terminal right now. scarlet: the biggest deal in the grocery store and more than a decade. the companies own the food lion and stop & shop chains here

in the u.s.. they operate 360 grocery stores that the world did the backlash against the confederate flag has now reached alabama. governor robert bentley ordered the rebel flag be taken down from the state capital. south carolina's governor says the flag should be removed from that state capital as well the speaker of mississippi state house has called for the removal of the symbol from a state frag. -- fly. controversy around it after the suspect from the south carolina church massacre was shown posing with it. fox news did not renew its contract with sarah palin. they say they have admitte amicably parted. she still spend intimate guest -- to make guest appearance on fox. those are top stories. pimm: let's go straight to julie hyman with a look at what is moving in today's session. we will get to netflix and a second, but tell us what is happening. julie: netflix is what is happening. we had news come out that carl

icahn says he was exiting his take entirely from the company. this coming after netflix says it was splitting its stock 7-1. it asked shareholders to expand its share authorizations expensive note -- financially fit shares took a bit of . shares took a bit of a hit when the headline happen. the history of carl icahn's dealing with netflix is interesting. he had about within sun on whether the stock would keep on going. he lightened his state back in october 2014, booking and $800 million profit, but he also issed on some of the rally. on whether the stock will continue to go higher. at the peak of his holding, he had five point 5 million shares bit -- 5.5 million shares. you can look at the historical

sharines and analysis. the green line is filings by shares. the peak 5.5 million. he took the stick back in september 20 well. if you judge by the filings and look at the average price, according to bloomberg analysis, his cost basis per share average $72.83. .89sidering shares are at $6 that is a better pay. apple is a better bet and he has a 3 million shares state and apple. scarlet: what is the function for that chart? who owns what. i want to bring in bloomberg editor at large cory johnson who joins us from new york. we want to find out more from this exit of carl icahn. cory: the time he got involved with netflix was a different business.

it was mailing dvds. scarlet: read endless. cory: it was going to that transition. he held the stock at a time when a lot of the big cost of netflix had yet to hit the income statement there. their commitments and contingencies where they promised to buy a lot of content -- they do not put a lot of cost of obligation on their balance sheet. those costs have yet to the company and we do not know how quite big they're going to be the cause we have to see how much of this stuff is a wash. scarlet: was carl icahn a very active shareholder or did he stay in the back ground? cory: this is not the carl icahn of getting very involved. this indeed may have been much more of his sons investment in karcarl's. pimm: instagram versus twitter versus facebook. tell us what instagram is. an app.stagram is

pimm: posting pictures on that people can be. co: you can follow things that people look at and exported they will discover things that people can find. they are doing different things with their explore button. it will change things to find what is happening around them more certain places. it is really a shot at twitter. they really think that they can take this business and have people use instagram to follow what is happening in things that are happening as they happen. it is more of a broadcasting medium and the way that twitter is used. scarlet: instagram is kind of for the masses. it has made its way to the consumer mindset well twitter does not have that same entree. now, instagram is going for a niche audience. is that right? cory: instagram will be the place that you follow what is happening in the world.

as the same way people go look at where for news, instagram thinks they can be the same thing. pimm: alibaba update. yahoo!,re invested in you want the tax-free distribution of your alibaba shares. scarlet: there are concerns about the irs in these tax-free spinoffs. pimm: shareholder meeting today. today,f we get any news you will look for the exactly which they use. talked atrissa mayer our tech conference in san francisco and she was very careful to talk about the alibaba spinoff, saying that the eye rested not start to look at these things just to look at ali baba. it did not exclude the possibility that they would not make changes. pimm: and a lot of lawyers and audience. she did want to say anything. ify: we will wait to see there is any news about ali baba as it relates to the taxes in particulaar. pimm: legal stuff.

scarlet: cory johnson, thank you so much. , the maker ofo popular mini figures, going green. the price tag -- $1 billion. details ahead. my foot still aches from stepping on these figures all day long. ♪

scarlet: lego is going green. not literally, because they already have green blocks, but the maker of the popular blocks and many figures is spending over $1 billion over the next 15 years to replace its iconic holding blocks with materials that are for the environment. it will also make its packaging more sustainable.

does your daughter play with legos? pimm: she has in the past. the big issue -- do you get parents to buy legos for your children? he spent many hours at home stepping the latest. scarlet: you know where we got our legos from? ebay where you buy them by the pound. wait to get rid of that stuff when their kids go off to school. pimm: this is a $1 billion effort over 15 years. they are not going to use the same kind of plastic. scarlet: they have to look for other materials. pimm: is this recyclable? scarlet: the main thing with lego is that the stuff does not go away. it is permanent and there for the rest of your life. this is fromt and a physics graduate in virginia that extrapolated lego population in the world. willumber of lego people surpass the number of actual people in the world by 2019. pimm: i do not know what is more

fascinated -- the chart of lego people in the world versus real people in the world or that somebody bothered to count the number of people? scarlet: more adult lego fans than kid lego fans. pimm: the thing about this chart is that lego people never die. scarlet: there with us forever. i still have the original . he has the cracked helmet and everything. pimm: please tell us more. scarlet: the jet pack is pretty awesome. i'm going to take off now. more "bloomberg markets a." we will talk about fracking and earthquakes next. ♪

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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. pimm: welcome back to "bloomberg market day." i'm pimm fox. let us look at the top stories of the hour. germany is downplaying the chances of an imminent eel with

greece. prime minister tsipras has rejected the latest proposal to accept bailout money could the german finance minister says it is a long way to get a deal and it is up to greece to show conciliation. billionaire investor carl icahn national -- high full the last of his shares in netflix. netflix has announced a seven for one stocks put. he says that apple represents the same opportunity that netflix did several years ago. he thinks that apple is undervalued. times are changing at four. the automaker is getting deeper into the car sharing business. rent now helping owners out their vehicles when they are not driving the. the chief executive says it is one of the ways that ford is evolving. >> are going to offer on a test basis to 14,000 customers here in the u.s. and 12,000 customers in london. for those customers that finance their vehicle through for credit

, working through a company called get around here in the u.s. and easy car club in london, customers will be able to rent their vehicles out to earn money to do things like pay their car payment or just view it -- earn a few extra dollars. pimm: four sees a future with more shared vehicles because cities will try to avoid her lot. there is something to see from the show about nothing. it is a re-creation of jerry seinfeld apartment and his long-running sitcoms. fans can visit it now in new york city. by hulu, which just bought the rights to "seinfeld" reruns. those are your top stories of the morning. the markets are closing in europe. but the very latest, i want to go to caroline hyde in london. caroline: optimism filled out the market for the are closing down on the stock 600. some of the biggest news is

unsurprisingly greece. you were just talking about it. germany and greece still fall apart when it comes to a deal. stocks are being dragged lower could euro trading off by almost 7%. saw the last four days, we money flowing into europe on optimism that a deal would be done. we saw 400 billion euros, to the market. now, back to reality with a bump. clearly no deal is going to be easily affordable. when the creditors are yet again meeting, it looks like it is going to be a struggle to get that june 30of deadline for some of the biggest . some of the biggest dollars today is technology fit we have been looking particular at the telephone space. it has been the french players who happened draghi dragging this particular industry lower it has been the french

players who have then dragging this particular industry lower . mma playing much with the telephone space tracking the stoxx 600 lower. we are getting plenty of risk aversion when it comes to bthe bund market. we are seeing borrowing costs come down by three basis points. ney is getting out of greece. creep seeing money cost higher with 10.18% when you're looking at the theoretical 10 year borrowing cost of greece. pimm: thank you very much. caroline hyde in london. "bloomberg market day," one of france's contenders for the 2016 election is a frexit, the economic term disordered formulu jour.

formula one may be coming to the united states thanks to the owner of the miami dolphins. starting a box on cloud services. we will talk with a fox chief executive later. there is mounting evidence that hydraulic fracking has led to more earthquakes in the central part of the country. that is the subject of a new friends at our bloomberg intelligence. rob barnett is one of the partners and he joins me now from washington. can you describe a little bit what was the intent of the report? rob: you look at oil and gas industry practices and fracking itself is really not the issue. it is a related practice of injecting wastewater deep underground. gas,you produce oil and whether you're talking about a

conventional well play well that has been frack, you happen to produce a lot of water in addition to the oil and gas. we are talking about large volumes. you get 10 times more water than you do oil and gas in a particular well. the question is what do you do with all that water? the practice in the industry has been to drill a separate well and pop that water underground. wastewateron of that is what seems to be related to the earthquakes. pimm: tell us the geographic areas covered in the report. certainly, oklahoma, texas -- those are hotspots right now. wherereally in areas you're looking at oil and gas activity generally. in oklahoma specifically, the regulators are looking at this industry practice. they are also doing that in texas. new sort of

activity that is coming under the potential scope of regulators. in oklahoma and texas, you can technically start withdrawing permits for wastewater injection is the regulators ultimately decide that there is an issue here. there is mounting evidence. there is new academic studies. there is studies from scientist at the u.s. geological survey that really make this connection. just showing fracking and earthquakes in oklahoma, water injections and number of three plus magnitude earthquakes , do these earthquakes pose any danger to inhabitants? certainly, there is potential for damage. when you look at oklahoma, they have had 250 earthquakes in q1 of this year. they had almost 500 earthquakes last year. they were greater than a 3.0 scale. that is enough to potentially cause some harm.

theou go back over time, role almost no earthquakes in area. they relate is a -- there really you seek between where these wastewater injection wells and where you are experiencing some of the earthquakes. in a lot of cases, we are discovering false that we do not know existed in the past. pimm: what about wastewater and contamination? rob: yes, that is why the wastewater is being injected underground. the alternative is that you can ultimately move towards more wastewater recycling, but cleaning up the water is an expensive practice. in most parts of the country, that is simply not the path that we are taking right now. that is one potential regulatory solution. pimm: lawsuits, rob? rob: lawsuits are out there. we have seen those heat up. none of those lawsuits have been

successful yet. there have been some that have settled out of court, but this is a potential liability for some of the producers and some of the folks who operate these wastewater disposal wells. we are certainly seeing folks lawyer up. this is a great story of our time. we have had the shale energy revolution occur here in the u.s.. far, it is really not falling under any significant regulatory callback, but this is an issue that we are seeing heat up and that is why we are following it from it industry company perspective. pimm: increased seismic activity -- is that necessarily a bad thing? rob: energy is always about trade off. i do not think you are going to find anyone who is certainly going to be pro-earthquake, but

we have a lot of resource in the ground. maybe small tremors might be acceptable. that might be the trade-off we are willing to make as a society. again, it is ultimately not going to be my call. be the folks who are regulating the industry in oklahoma and texas who would make that calculus. i would not be surprised if we see increased interest in the issue here in washington as well. this is a big industry issue that we will see playing out in the policy space over the next few years. pimm: rob, how can people get a hold of this new report? rob: it is available on the terminal for bloomberg intelligence customers. pimm: i want to thank you very much. rob barnett, thank you for joining us from washington dc. , we can hear from the one who could be france's next president and she says that she wants a frexit.

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pimm: welcome back to "bloomberg market day." i'm pimm fox. let us look at the top stories crossing the terminal. this afternoon, the senate is expected to make it easier for president obama to negotiate the asian trade bill. legislation needs to pass a physical civil majority. it has pitted the president against fellow democrats, you can organizers -- union organizers, and fire mentalist. -- environmentalist. the president's changing a long standing policy on held

hostages. run the risk of families paying ransom to members held hostage without prosecution. the field of republican hopefuls will now get laundered -- larger. bobby jindal will announce he is running for president. he is 44 years old and will be the first indian-american governor in the united states. he will be the 13th republican running for president. those are your top stories. we have spent months talking about a greek exit from the euro. then, there is a possibility of exit fromheereron talks about it all. now there are talks of a frexit. french partythe and she has been calling for the ordinary breakup of the common courtesy. thespoke to caroline about state of negotiations between

greece and its creditors. >> the greek government has conceded ludicrous reforms. by theay of allowed european union shows that the eu has zero good solutions. it could've managed to either give way to greece, which is highly unlikely, or observed a greek exit from the euro, which could have created a domino affect from other countries with a risk of demonstrating that outside the euro, greece was doing much that are, just like nobel prize winner paul krugman says. it could've renegotiated the debt and a please them to see a series of countries knocking on the door saying, i would like to renegotiate my debt, too. we are at the end of the logic. the problem will come back at the end of a few months. >> bespoke this weekend about the social nightmare that the greeks have lived for the past five years. do you think the french are actually ready to live the

same nightmare? it cannot happen overnight. >> what is horrible today is that we are threatening to throw grease out of the euro hoping it would be chaos and catastrophe. if we organize greece going out of the euro, and cooley, it will not be a problem. the grexit, and then other exits. they want to battle with the european commission. that is what mr. cameron is doing. predicting a referendum in the -- puttingmoting pressure on the union to cede to the demands from the u.k.. it is a battle between the eu and the people who do not want to lose sovereignty. be madame frexit if

the european union does not give back our sovereignty. i believe that sovereignty is the twin sister of democracy. if there is no sovereignty, there is no democracy. i'm a democrat. i will fight until the end to defend democracy at the will of the people. negotiatet managed to with the european union, something i wish, then i will ask the french to leave the european union. then, you will be able to call me madam frexit. pimm: that was marine le pen. still ahead, steve ross, the billionaire real estate osborne were an owner of the miami dolphins, is looking to get into formula one racing, but not as a driver. we will give you the details ahead. ♪

ross, thehen

developer of such real estate projects at the time warner center and owner of miami dolphins, is now interested in formula one racing. it is teaming with qatar sport investments to acquire a stake in formula one from the current owner. the price for about 35% could be between $7 billion and $8 billion. betty liu is joining me now. what with this purchase mean for formula one? betty: we could see a big presence in the u.s. market. you know this man. this guy goes big or he goes home. the time warner center, the hudson yards he is developing here in new york city, the miami dolphins, he is going to get this guys name pronounced ndamakong and o suh.

he wants to ensure that the season that they may get that ring. i have heard rumbling as well that we knew it was up for bid. pimm: they wanted out. betty: the ipo got scrapped and we knew that the only person who was in the way of f1 being sold was bernie ecclestone himself. this seems like the most serious contender we have to buy this $8 billion state from cbc. some are speculating that what steve ross would like to do is to bring f1 here to the u.s. market. he is renovating sun life stadium in miami. $350 million. might he bring the race over to miami? put the two together and say, hey, let us bring f1 here. pimm: we will have to see if he can get bernie ecclestone on board, even though he would have to sell his stake along with the cbc stake. there has been a confrontation between the guys who run cbc and

bernie ecclestone. they want to bring someone from the outside. apparently, they did. i had a dinner meeting with bernie ecclestone and he said to take a hike. betty: i have heard several stories. we may be hearing the same story. ecclestone is formula one. betty: he is a very unique character. pimm: to say the least. betty: someone said that they had gotten so close to this firm handshake. they were going to buy it and then suddenly burnley medical bernie- disappeared pimm:. pimm:would you go to formula one? betty: i've never beenbetty:, but i could. want to take me to race? , i am up for good -- i am up for it. pimm: thank you very much, betty liu. it is now time for today's option and sites.

let us go to julie hyman. take a look at how the major averages are performing at. we have had not much change here during the session, but a little more deeply throughout the snp and the dow. each trading by 2/10 and 3/10 of a percent prospectively -- respectively. joining me today is chaired ared talking about what is going on with the overall looked today. we are seeing something may be happening on greece, but that is dragging out. we are not seeing much of a be through to the u.s. today. implying anyt increase in volatility right. what are people looking for? >> a lot of managers are positioned for a quiet summer. tosonally, this is the time be quiet if you are positioned that way. we put a note out this morning looking at the state of the

volatility margaret. someugh the vix is low, other options are quite high. the spread between variance swaps and also the skew in index options are all higher than the summers of 2013 and 2014. bid sense of a persistent for a premium up with a floor of volatility markets. it could make the texan a little bit cheaper because of that persistent bid under the floor. julie: i want to look at something that is intending pending event, which is the supreme court ruling on the affordable health care act. that has implications obviously the industry. you are looking at the etf. coincidentally, we also talked yesterday with kevin kelly. what do you think is going to happen here? as an options trader, do you try to handicap the outcome of the

ruling? jared: i am biased like anybody else. if the court strikes down tax subsidies, it would seem to be a victory of liberalism over prudence and intent. everything is a policy. if the court does move against the administration, that could inject massive uncertainty to the markets. if they really favor and keep the aca as is, it removes a a lot of confusion and gives equity a higher confidence in multiples and clears the way to move higher. i think there's room to position for a big move either way. if you want to do that, i took a look at the options this morning. slc premium was priced pretty expensively. it make some sense here if you want to trade ahead of potential movement. the july options were buying at 70 at call. they cost about $.46 this wanted it seemed like a -- this

morning. it seemed like a good reaction to the market whatever the ruling. essentiallyre moving that it is going to move big one way or the other and not going to stay little change. you do not have to take a position necessarily, although your bias is little more to the upside. take a firmave to position on which way it is going to go. jared: precisely. in some case, i would not recommend this is the options were priced and extensively. it is a happens that people are pressing markets a bit quiet so it opens the opportunity. julie: you have been watching the homebuilders as have we. higher.oing what are you seeing options wise with the builders? jared: the option market just got crushed. this is what you expect when theks shoot higher have to fundamental outlook for housing is fantastic. it is not a case of continued recovery but of expansion and growth.

want to live in houses and not just went forever. lending standards are improving. all signs point to continued expansion. the only potential dark cloud is that there is arguably lesser room for price appreciation here as these are marginally younger buyers. it means that pricing could move too fast and too far and could take people out of the market. otherwise, builders look great. julie: you would take a bullish stance? jared: i think so. julie: thank you so much. do not go anywhere. much more after the break. ♪

pimm: good day. it is 9:00 a.m. in san francisco and noon in new york and midnight in hong kong. betty: welcome to "bloomberg market day." president obama is on the verge of a big victory thanks to republicans.

the senate is poised to give final approval to a trade bill today. pimm: ibm looks outside the box as it tries to reverse 12 quarters of sales declines. we going to tell you about big blue's new partnership. betty: as a price here. millenial's want to work at google. some of their other choices are in finance and accounting. he will tell you all about that. -- we will tell you all about that. ♪ pimm: good afternoon. i am pimm fox. betty: i'm betty lee. let us look at how the markets are trading at this moment at midday. we are down slightly. the greek that talks appear to be stalling and that has some investors taking off some of the profits thhe