the latest on the talks. >> ibm looks outside the box as it tries to reverse 12 quarters of -- they house a lot more than just books. the seeker treasuries rotting in some of our nation passes biggest libraries. ♪ mark: good afternoon from bloomberg world headquarters in new york. i am mark crumpton here with scarlet fu. scarlet: stocks were briefly positive and we quickly went back down and we are now just off of our lows in this session. the s&p 500 losing 12 points. if you look at bonds, 10-year note's over the course of the

last few weeks have been trading in the narrowest range so far this month. the yields on the 10 year, 2.3%. whatare watching to see the fed does next. we have got gdp numbers this muchng that did not give by indication of when the next interest rate move will come. mark: a look at the euro right there. we are seeing movement. it had been changed earlier. is on, is theocus deal imminent or will the stalemate continue? we will have more in a few moments. crossing the bloomberg terminal at this hour. the u.s. senate is preparing to give president obama a big victory on trade. the president is expected to win fast track authority to negotiate the asian trade deal. 60-30 7%passed by a

margin yesterday. earlier this month, house democrats almost killed the measure. french president spoke with president obama today . the two spoke by phone following recipe -- revelations by wikileaks that the security agency even dropped on predecessors. processesama repeated , tactics considered unacceptable by allies. --k: germany downplaying greece. rejected the latest terms set by creditors to unlock bailout money per the german finance ministry said there is a long way to go to get a deal and it is up to greece to show some movement. the bailout expires next week. greece needs to make a $1.7 billion payment to the international monetary fund june 30. icahn is out of netflix. he sold the last of his estate

today and believes apple represents the same opportunity netflix offered years ago. they are at their best levels after the company declared a 7-1 stock split. it has more than doubled and is trading at record highs. against thecklash confederate flag reached alabama. the flags were ordered to be taken down from the state capital. nikki haley said the flag should be moved from the state capital. announced it will end the licensing of toys from the 1980's hit tv show the dukes of hazard that bear the confederate five. scarlet: ford is helping owners -- theyodels rants out following six months of data gathering.

here is exactly how the program will work. basiswill offer on a test to 12,000 customers in london. for the customers that actually finance the vehicles through ford credit, working for a company here in the u.s. and car club in london, customers will be able to rent vehicles out to earn money like pay their car payment, or earn a few extra dollars. scarlet: ford sees a future as increasingly clouded cities gridlock. mark: it will still be a while before self driving cars hit the road. toyota's's biggest supplier. the technology to make automobiles fully autonomous probably will not be established until at least 2030. google and ford predicted self driving cars will be by 2020. but not as much

as previously estimated. according to the commerce department, first quarter gdp fell 2/10 -- .2%. the economy shrank 7/10 of a -- .7%. it was stronger than first reported. see about theg to show about nothing. a recruitment of jerry seinfeld's apartment in his sitcom. hulu just want the rights to seinfeld reruns. those are your top stories at this hour. scarlet: coming up, an idea of how to close a tax loophole by creating innovation boxes. this plan may not be a hit with all businesses. we will show you hidden treasures and what it takes to secure them. are joining and box forces. an exclusive interview later on. mark: greek bailout talks remain

at a sand -- standstill. rejected their latest terms. >> the spine focus on a variety of measures. joins us from brussels. the meeting began around 1:00 p.m. eastern time. crossed.lines what did we learn from the latest comments? >> not enough progress was made. the ecb president mario draghi, christine lagarde, the meeting went on longer than expected. finance ministers are headed into a separate meeting. those finance ministers who have stopped to talk to the camera's moments ago have been uniformly negative about the prospects for a deal tonight.

the german finance minister just said frankly, i don't see how much further we are today than monday night. says no oneminister expects to get a deal done tonight. just in terms of managing expectations and where we were 48 hours ago, everyone said we were in a good place to wrap negotiations up wednesday night at the finance ministers level. then a full agreement to be codified by the leaders on thursday. we are now hearing there simply is not enough time to make progress tonight and are unlikely to get a deal tonight. when you overlay this against the counter and what we are up against, the greek parliament has to vote on this and that has to happen before tuesday at about midnight european time. just to give you a sense of how flexible the targets are, no one knows whether or not midnight european time or 6:00 a.m. july

1, when it is midnight at the imf in washington. that is a huge distinction. we will just muddle our way through if history is any guide there you have then on alert for a couple of weeks now and you mentioned how the meeting went longer than expected. our short meetings necessarily +++ that a time a meeting is

delayed, it is a good sign. this meeting was delayed. that is a little bit of reading into the tea leaves. in general, they have not reached progress if it assured. if it is midnight in new york and 6:00 a.m. here, and they are still in the meeting, it means there is a potential for progress in their hammering out deals. the shorthand on this, the longer the meeting goes, the more likely there is an advantageous, positive outcome. please do not trade on that. mark: hans nichols joining us from brussels. thank you. talking we spent years about this. there is a talk from one of france's front runners. mark: maureen spoke to bloomberg's caroline about the state of negotiations with greece. not regret it. the greece government has exceeded ludicrous reforms. the eu has zero good solutions. it could have managed to either give way to greece, highly unlikely, or observed a greek exit from euro, which would have created a domino effect from other countries with the risk of identifying outside of the euro, greece is doing much better. or it could have accepted to renegotiate the debt.

please allow me to say a series of countries would have come to knock on the door and say, i would like to renegotiate my debt as well. the problem will come back in a few months. >> you talk this weekend about the greece have had for the past five years. french should be ready to leave the same nightmare because those of the eurozone cannot happen overnight? >> what is horrible today as we are threatening to roughly throw grease out of the euro, hoping it will be chaos and catastrophe. if we organize the deconstruction of the eurozone altogether, calmly and coolly, we will solve this problem. at one point or another, every country suffering from this currency will only want one thing. escape from it.

engage a battle with the european commission. predicting a referendum is putting such a pressure on the european union that the eu will succeed to the demands of the u.k.. the sovereignty of the people who do not want to lose. be madame fexist -- madame frexit. i believe the sovereignty is the twin sister of sovereignty. i'm a democrat and i will fight until the end to defend democracy and the will of the people. if i do not managed to negotiate with the european union, i will ask the french to leave the european union. you will then be able to call me madam frexit. scarlet: --

mark: still ahead, lawmakers are exploring a new corporate tax break that would benefit companies already adept at avoiding taxes. we will next explain. ♪

mark: welcome back to it i'm mark crumpton here with scarlet fu. scarlet: netflix announced a share split but the share took a hit midday. julie hyman has a closer look. netflix was trading at a network high.

julie: if it closes at all, it will be up. carl icahn said he was exiting his position in the stock and you can see the shares very little changed. out with a note around midday, saying it was cutting shares. that may have triggered the the stock saw in there looking at the meeting theerse, it seems as though major reason for the downgrade is the evaluation. if you look at what has happened for the price to earnings ratio, it has taken off. on the the ge function bloomberg terminal. the green line is the trailing price-to-earnings ratio. estimated -- estimated earnings. we have seen both members sore. on thelooking here

access over here. 177 on trailing base is. 290 on a forward racist. the valuation here is far and away the highest we see in the media universe. that is behind the downgrade. i also want to take a look at what we have seen from carl icahn in terms of his holdings. it looks like he booked a profit of at least 1.6 and dollars from his holding of the stock. this is the chart of his holdings. you can get there by going to the green lines, the holdings, and he first took this position in september 2012 and it climbed to a high of 12 and 5 million shares. then he stole a significant shake in october of 2014. a booking of profit at that point, it has been winnowing as stocks have gone higher and higher. it worked out pretty well for him.

he says apple is now a better bet. it is around 40% since it announced a stock split last june. his son whowas wanted him to hold on to shares of net for. julie: his son won the bet. $1.6 billion, not so much a loss, really. atk: let's take a look now the top stories we're following at this hour. the judge has formally sentenced the boston marathon bomber to death for the 2013 attack. the formal hearing is being held nearlyston courtroom or three dozen victims spoke and he addressed the court for the first time. he gave a five-minute speech peppered with religious references and praise of allah. he said, i am sorry for the lives i have taken in the suffering i have caused the damage i have done. irreparable damage. paused several

times, looking as if he was trying to remain opposed. he faced the judge while speaking but spoke of the victims. ,hould new twist in the search authorities say the prison -- frozenharged hamburger meat. the district attorney says joyce mitchell -- joyce mitchell put a screwdriver in the meat and then place it in us -- in the refrigerator where she worked as a clinton correctional facility. those are your top stories at this hour. scarlet: lawmakers are exploring a tax break. ultimately, to avoid the tax in version deals. now is the u.s. tax policy reporter for bloomberg news. who are winners and losers of the tax break if it comes to pass? >> there able to shift income

income. anyone who is really any money from pens or any other intellectual property. idea, it seems -- pleasing to both sides of the aisle on capitol hill and you do not find that a lot. right.: the two key senators do not necessarily agree on tax halsey. what is going on is democrats see it as a way to promote innovation to attract and keep jobs in the u.s. and make the u.s. an attractive place to headquarter a company, and republicans see it as a way to do some of the same face. there is a chance. test reform is always just down the road and never quite here. there are any number of details and issues that would have to get work out. scarlet: in theory, a could be pleasing for both sides. for individuals who want to , it is ax allegations

long and winding road. you have got to renounce your citizenship and pay a too hot -- $2050 fee. pay a tax on your homes. it might seem easier for companies to relinquish their tax obligations. richard: these in version deals and other companies, they have spent a lot of money on lawyers and fees and everything trying to get out. even the on that, coming as are trying to move the assets abroad and then earn the income overseas and what a lot of companies have been able to do this take formulas and put them in low tax companies. that is under pressure around the world now. fors definitely incentive

companies to bring them back and develop new ones here. that is the idea. at the same time, the potential problem is for companies that do not have a lot of test the -- tax rates now, they're paying retailers, necessarily, that is who might get hurt from this. they house aup, lot more than just books. a look at secret the treasury is hiring -- hiding. ♪

from theorted missing boston public library, engraving atm the 16th century valued more than $16,000. they turned up after an exhaustive search eight weeks later. scarlet: libraries contain valuable treasures, many of which rarely hit the light of

day. david reports. david: the harvard library keeps one of its ground -- crown worth on display, a bible $7 million. tons of other treasurers are hidden away, as they are in libraries across the country. who knew the university of illinois has lose carol's chest set of lewis carroll. it can be an intimidating place to walk into p her people might not know that they are welcome to come in. anywayto broadcast this i can. >> and all access pass, he has pulled half a dozen objects altogether worth millions. scientific instruments from the renaissance. >> this thing is gorgeous. it is a book published in 1542.

the book is full of these beautiful -- the first washington tell all. he wrote it in 1797. >> this is one of my favorite things in the collection, a book that the want to george washington. it is full of his notes in his own handwriting. >> when two valuable objects went missing from the bostick public library, libraries also had rare art like this drawing. >> this is one of the original drawings made for his birds of america. quite a comparable piece sold for more than 100 thousand dollars. >> what makes an archive in valuable? we think about, if we acquire this book, who could use it and what can be done for it.

>> the library system expects to spend $103 million this year on everything from acquisitions to keeping its collections safe. there is a tension between access and security. >> we are a place that houses many treasures and we have them so people can use them. put a callme in and in and let them get it. >> sure enough, i did. that is fascinating. scarlet: much more is coming up. ibm teaming up for 12 quarters of sales. see later. ♪ -- see you later, mark. ♪

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top stories at this hour. president obama changing a long-standing policy. the president's clearing the way for families and hostages to pay ransom to terrorists put out running the risk of prosecution. true thatobama: it is there are times when our government, regardless of good intentions, has let them down. i promise them that we can do better. policy had been criticized by families of those who had been killed in captivity. another entrance today in the 2016 race for the white house. bobby jindal is joining the crowded field for republican nomination. he will make an announcement outside new orleans he is the first indian-american governor in the u.s. he will be the 13th republican candidate to officially enter the race. not renewing its contract with sarah palin. the network says it amicably parted ways with her.

palin is still expected to remain heavily involved in congressional races next year. those are top stories. coming up in the next half hour on bloomberg market day, ford is joining the economy allowing car owners to rent out vehicles when they are not using them. mark weighs in on just how the program will work. has many families worried. this is about instant formula. a massive computer glitch keeps the state department from issuing visas for two weeks. up.that and more is coming we have an exclusive for you right now. the silicon valley startup boxes teaming up with ibm. this gives them access to the customer database as well as analytics tools. toreturn, ibm gets access

areas where it is trying to grow. emily chang had an ax is of interview with the ceo as well as the ibm senior vice president, on how the deal came together. classic think we had a shared vision on how he could better serve clients. we found ourselves on the same enterprises where ibm was trying that we were identifying vox was really helping people on the edge with cloud and interactivity about how people were sharing data and be more productive in their roles. together our advanced analytics, we bring together ibm'sccessibility using cloud data center strategy, we can make that content more secure using our security intelligence capabilities come and work on transferring work by thinking about applications where people were active with

content, all the way to the back office, or people were used to using more mature business flows. >> you are talking big about other share from ibm and companies? >> we have always seen the market as it not a zero-sum game. there is multiple ways we can interoperate with a lot of different platforms. today orespecially whatever it is that it will be a mix of technologies were vox is bringing content collaboration and ibm is bringing incredibly powerful analytics, security, and insights around content. when you bring the two technologies together, we better deliver value. we see.what

our focus on delivering world-class experiences and health care retail, financial , we thinkgovernments a blueprint for what you will see going forward in terms forow companies will bring customers. classic your technologies are such a good fit, how much did you explore that idea? >> we stayed focus on the partnership angle. we are focused on building out independent company. we saw tremendous opportunities to partner. the point i would add to bob's unparalleled -- you think about vox as a startup in europe and asia, in very regulated industries. capabilities in the platform ibm

has told out. .he relationships we saw an amazing opportunity to partner and we are focused on executing on our core vision as well. larry, he is known for he doessmack, saying not consider ibm serious competition. i know you are a guy who once referred to larry as darth vader. others would say oracle is playing catch-up in the cloud. major catch-up. larry is the right guy to be telling us where the cloud is going. >> you're pulling up way too many quotes from my past. say is i think a bunch of vendors have built up established business in the

enterprise. it happens in every industry and every kind of technology environment in the past. the cloud is disruptive in the economic rents and the way you deliver value to customers. particularly hard to deliver the cloud. i think most of the technology vendors will be able to get to the cloud and do that successfully. it will now be the new opportunity and the new competitive market will be, what you do on top of the computing in the cloud? commodity infrastructure is not very interesting. what is interesting is what you are doing to deliver more value to customers. i think this is a fairly new market that has yet to really play out. scarlet: that was the vox ceo aaron levie speaking with bloomberg west anchor emily chang. we have more coming up.

ford sees a future with self driving cars and that is making it moves. the ford ceo is next. ♪

scarlet: welcome back. this is not your father's ford motor. the automaker is driving deeper into the card sharer business by helping people rent out their cars when they're not using them. the ceo explains how the program

will work. offer to 14,000 customers here in the u.s. and 12,000 customers in london, for those customers that finance their vehicles through ford eight, working through company called get around, and a card club in london, customers will be able to rent vehicles out to earn money to do things pay their car payment or earn a few extra dollars. on the go drive pilot we're launching in london, we're offering that up to 2000 folks and it is unique in the industry around the world. to have aa customer car sharing service, pay-as-you-go, you can go one way if you want. importantly, when you go one way, there will be designated parking spots reserved. if you think about downtown london, it is pretty unique.

we will learn a number of things from that. we had an initial spam and earlier in the year and we learned people love the flexibility to be able to reserve a car up to 15 minute before. they love the idea of a guaranteed parking space. for you to be affordable, they for them tore that use it everyday, it has to be affordable and that the pricing is very easy to understand. scarlet: fortis also introducing an electric bike with information like traffic and weather. the ceo says the company is excited to see its business evolve in the future of ford lies in innovation. mark: we're thinking of ourselves not only as a truck company but a mobility company. as you look at a number of the technologies out there, it is in one of the most transformative and as anur time industry. as a company, we embrace it. we do not do it as a threat.

we embrace it. -- with a whole innovation mindset around rewarding but also appreciating a challenging custom and questioning -- we are doing even more interesting things rarely opened our research innovation center here in silicon valley. we will have one of the largest automotive presence here. part of the ecosystem of ideas that we could potentially use in our business to improve customer satisfaction. 40 looking to release a fully autonomous car in the next five years. we have got breaking news. we want to head out to hans nichols in brussels. there was a meeting between his creditors early on for an hour and 40 minutes ago. that ended fine. this is a separate meeting that you have got details on.

>> is unclear to me how long the meeting will last. between matteting lagarde and mr. druggie pretty looks like the euro finance meeting is supposed to sort of come to a final conclusion and will be suspended or at least will have aand you separate meeting starting at 11:00 p.m. local time. badk it all down just how talks are talking. it has been a remarkable 48 hours. last monday night, everyone was on the same page, saying we're headed in the right direction. there were details to work out but everyone is in the right direction. almost like we are in incrimination mode were both sides are talking past each other and rejecting each other's proposals. the earlier meeting was seven hours. no resolution out of that. will takeike they

another crack at it starting at 11:00. i think i will have a late-night here in brussels. .carlet: it sounds like it we are talking about the pension plan reform on the table here at sales tax. whatever they might agree on monday has now fallen apart? on toplineagreed numbers on what the prime it -- primary budget surplus would be. the disagreement was on the means. what the greeks proposed was a on of actual tax increases corporations and wealthy individuals and you look at the $8 billion in new revenue or the price tag over two years, 93% of that was from additional revenue. the imf in particular said that would choke off -- we had 2 million in tax increases. it has been rejected and the

greeks have been very clear. the entire society. request we will check in with you with other headlines here at hans nichols in brussels. us check out how commodities are in trading. alix steel, less start with crude, off by 1.4% -- 1.25%. falling for the first time in three days. were drawn bys about 4.9 million barrels. you have got refineries working and you have imports that felt it on the negative side, you have an inventory build in the product side, gasoline. we talk about this a lot. it had been building but it is a new thing for gasoline. you are seeing a build in the product market. eventually, the potential is it and refineriesns

will not want to process crude, which means it could lead to something bigger in the crude supply. oil pressure continues to rise. scarlet: the first rise in three -- what is still see the stabilizing oil price mean in terms of amide a in the sector? alix: we have not seen that much. -- the about the potential for m&a in the downstream space, that is the refining taste. they say about 2 million barrels of u.s. refining capacity worth about $12 billion being marketed by integrated oil companies that want to shut the fat and focus on their core business. where they see the potential fail could come from a boost in crude exports, where refiners want to get an exposure to come and perhaps midcontinent. refine in that respect.

those areas they highlighted as having the most potential. scarlet: what kinds of names might be the most obvious targets? deep -- dighave to deeper. i not really sure on that point. what is notable is it will potential toners grow within the s&p. we will see the first refiner ipo since 2012. part of that will grow there are aspects so it will be even bigger in the s&p. this is also about the big guys are trying to trim the fat in order to focus on economic slowing. stay with me because we will look at another story in its infant formula market estimated to be worth $10 billion. tainted chicken

and tainted baby formula. it is unfortunately not exactly new. alix: right. at least six infants. this is the next step. there is excessive nitrate in it. is apparently the thing you need to make good formula. there is so much demand outside. it is fascinating. whole nation full of mothers have a panic. on baby formula. people in hong kong did not -- brought up by mainland mothers. pretty common in china.

my mom reads the newspaper's everyday gets horrified by what -- thats and is always is our bleached white, for instance. i buy as a result is made in taiwan or malaysia or sing of work. they're not sadly but probably have a level of quality standards china does not have yet. you're are telling me anecdotally, people you know go to the store. it was really fascinating. scarlet: they do not trust the food security of food sources there. they contracted face with a small farmer where they go every weekend to buy the vegetables. and that is all the. they do not trust the restaurants. alix: interesting story.

scarlet: you will be back in about 10 minutes to take us through the market we will stick with china. the seventh annual u.s. china economic cost began and we will look at what is in store coming up. ♪

officials from china and the u.s. are gathering in washington today for day two of their annual economic and diplomatic talks. this comes amid heightened tension over cyber security matters. the director of asian research for bloomberg intelligence is in new york. tim, does suspicions that the chinese are hacking into federal

data get in the way of otherwise production discussion on trade? >> personally, i think not. if you -- if you take a step back, the discussion has been going on since the bush administration in 2006. it is a critical talk were multiple different people from both governments, multiple different verticals, get together and have a frank discussion. you would think over that time, every single year there is always something that creates tension. they have gotten through it. this has been a dialogue that is quite instrumental for the relationship. the chinese stock market has people wondering when a bubble will burst.

tim: part of the spurring of the market rally has been the holes of sis -- the whole thesis the marketplace and institutions. to the degree the shanghai and hong kong for matt, and potential liberalization and a lot of other aspects of financial reform spur a theme that picks up momentum that the retail investors go bonkers about, that is what we're seeing here. it forms a backdrop of discussions. a 41% gain year to date for the shanghai composite. perspective on the stock market rallies. they do not tend to end very well.

tim: we have seen six episodes with a 25% spike and every one of them has ended poorly. there have been prolonged times in the early 2000's where we had multiple years of malaise. the spike in this really goes back to what i mentioned before. nation ofng institutional marketplace. it has been a theme with retail investors. we are seeing this again now. you have got a chart tracking china, the u.s., and the world average to it what it shows is china's ratio has more than doubled. there you see it or china being the blueline. it has more than doubled but still in line with the average but below the u.s. in red.

tim: you think about the valuation with the chinese market and it is expensive on a lot of other measures. measure wheree there is value. solve better profitability over time with higher margins through the front, corporate earnings would improve relative to gdp and you would see lower wetiples relative to what currently see. that all feeds into some value aspect. thank you so much for joining us, tim. we will have much more coming up for you. ♪

scarlet: it is noon in san francisco. alix: this is "the bloomberg market day."

sending stocks lower, we count you down to today's is closing bell. bobby jindal becomes the 13th contender for the republican presidential nomination. we will discuss his chances to win the night -- the white house. scarlet: a computer problem is causing a headache especially for the farming industry. ♪ scarlet: good afternoon. alix: a look at the markets for you. it was a really fascinating day. you had carl icahn coming out with a tweet saying there could be some kind of bubble brewing in the bond market.