i'm ugly day for stocks. i doubt closing around the lows of the session, suffering the worst drop in three weeks, down 174 points. materials, health care, the aggers today. those positive housing signals were there as well. joe with me to discuss is wiesenthal. we get some good housing signals, but what is the catalyst to take in one direction or another? >> you call this a selloff?

.7%.arket is down when are we going to get a real selloff? talk about what led the markets lower. it continue to grind lower because there was rollover in the s&p. cahn.ave to look at carl ico investors hadted warned about the market in 2007, we might have avoided the crisis .n 2008 t the other part was greece. inanother interesting day greece. there was hope we could get a deal today, but they don't have

a deal. the senior people will talk is to the eurogroup. they will reconvene tomorrow. the major players will talk late into the night. alix: the meeting starts at 11:00 p.m. finance minister said that we are showing the world we are serious about a deal. the messages, hard work. they are out working hard on this. alix: we heard a lot from tsipras as well. odd stancet this seems to indicate that there is in an no interest agreement or the special interests are being back. i found that fascinating. o?at is he alluding t >> he was insinuating that when they dealt with ireland,

portugal, spain, they got a lot .ore flexibility t this set the tone for the day. there was immediate action across the board when that went out. , peoplee in stocks piled into safe havens. we always talk about greece today, but what about greece tomorrow? , whatstantaneous reaction happens tomorrow when they need more money? they are going to need a third bailout, 20.7 billion yea euros. they will get the profits from the ecb on this bond buying program. >> they are working late into

the night. it's only a temporary thing, and then another bailout discussion down the road. this joining us to discuss , a third debt deal? >> this is can kicking. >> i want to talk about greece tomorrow. i want to talk about it in six months. >> i hope this never ins. >> it never will. >> it's looking that way. ends.ope this never > this is just a fantastic story i can talk about. this is just a fantastic story we can talk about. >> people are saying, really guys?

the same rhetoric again and again? that justminute deal kicks the can down the road. third,, first quarter gdp numbers, a big standout was a fixed investment number significantly better. we saw a broad-based upward revision. all major categories showed improvement. this gives us a hint of what we should be looking for in the coming quarter. is a preview of what we will see over the course of 2015, stronger consumer spending, weak export figures. today's report shows consumer spending and housing carrying the first quarter, and that

trend will persist later into this year as well. it is a year for domestic led of thoseousing, both are dominated by job gains, so if you want to know how the economy is doing, keep an i on the employment reports next thursday. jobs i'm going to say friday on that day to get that is why you're seeing treasury yields rising. people are preparing for the fed to lift up. better. is in a respected revision for gdp in the first quarter. builds on good data out of europe. this is adding to a picture that inflation will start ticking up a little bit. more news that another retailer is hiking its wages. eike a is increasing its minimum wage to employees. i think this is great. is increasing its

minimum wage to employees. it's great for the economy. >> the savings rate is virtually zero. any booster income in that demographic group gets recirculated back into the broader economy. boost in income in that demographic group gets recirculated back into the broader economy. the slack in the labor market is being absorbed, not fully absorbed yet, but at the point where we are fully employed in the economy. that is good news. too much is bad news. alix: are these the wages you want to see grow, nine dollars an hour to $11 an hour. is that is what will drive wage growth? when that turns into

consumption, that has an impact on moving the needle. alix: are they looking to see some trickle-down so that it is not just -- although stimulus has not been only a game for the top earners who can earn money on assets, but the bottom and middle classes as well. heard him point, we speaking to how wages have helped. remainedand has constrained, buyers have continued a steady return to household formation and ownership as the market opens up , driven by consistently low interest rates and now higher wages and lower unemployment. to your point, trickle-down. is that meaning money is only going to housing? >> tomorrow morning we get the personal income spending reports with greater detail breakdowns, but we do see a lot of the

energy savings and income gains turning up in higher health care costs, a giant sucking sound that is impacting. improving, housing and home purchases as opposed to rent's also benefiting. it is a rising tide of sorts. >> i want to turn to a market that we don't talk about enough. the nikkei hitting a high today. benefited by the aggressive monetary stimulus. how much more room do they have to run in terms of stimulus? >> looking at the japanese stock market over the last 2-3 decades , there economy has been so weak that the stock market has reflected that as well. this as further evidence that quantitative easing works.

it has followed these rounds of boj, reflectedthe in a stronger export sector and lower imports. >> lisa is going to disagree with you. boost --se it works to of course it works to boost stock prices. look at global stocks on a macro level, you see stocks around the world hitting record highs. yes, it is a stimulus working. one big concern is that it is not boosting the economy and up to legitimize it. a big concern for japan because they have had these false starts in the past. problem, a big budget very high debt levels. if you hike taxes too soon, you will slow your economy down and

the japanese economy will bellyflop. >> we will get the jobless rates from japan as well. >> can't wait. i'm very excited. >> me too. thank you so much. so good to see you. we did that on air. yes, we did. >> much more coming up on bloomberg market day. weak demand and what it means for the countries reform timeline, coming up next. ♪

alix: welcome back to the bloomberg market day. i am alex steele. china's rally not at the top of the agenda.

market story has a lot to do with big issues at the talk. this rally has been opening up the chinese financial marketplace and institutions. the degree that the shanghai-hong kong connect and the liberalization and other aspects of financial reform spur a theme that picks up momentum that their retail investors go crazy about, that is part and parcel of what we are seeing here. >> it forms a backdrop of their discussions. speaking of this tear, 41 percent gain, but it did in their correction last week. give us a perspective on the stock market rallies. it doesn't tend to end very well. >> true.

--have seen experts of episodes of spikes going back to early 2000's, and everyone has ended poorly. span has been a prolonged of time where we had multiple years of malaise. goes back to the fleeting nature of the chinese retail investor. been a fad and theme with retail investors. that has been part and parcel of this. tracking got a chart market gdp, if we can call that up. , china ratio has doubled being the purple line. it is well below the united states in red.

this is music to the bulls ars. >> this is the one measure where there is value. it's a warren buffett metric. >> if you have better profitability over time with , then theirns earnings would improve relative to the base of gdp and you have lower multiples as opposed to what we currently see. aspect,l see some value maybe, of the chinese market. bed, bath, and beyond earnings are out. it looks like they are coming in below what analysts anticipated. little change year-over-year. $.93, twonchanged at

cents below the average analyst estimates. they had been predicting a 2.4% gain. most $1.18 per share gain. analysts had anticipated $1.23. looks to be sending the shares lower in the after hours. i'm seeing a decline of 1.6%. some of the housing has been pretty positive when you're looking at existing or new home sales, strong numbers. the orders coming in stronger. they interesting here that are not seeing the same sort of gain for the year today. the shares are down, falling

more than 7%. alix: a one off housing indicator. they are talking about the factors that one that looking at. is the general economic conditions like the housing market. the overall macro economic environment and the changes in the retail environment. it goes to these macro issues we deal with. >> a bigger trend in retail more broadly doesn't necessarily affect the home depots and l oews of the world. retailers, it has been a victim to discounting, so that is something that could be crimping the numbers. maybe it is getting the traffic and a lift from people wanting to spend on their homes, but they are not necessarily spending as much because they

are getting stuff on sale. alix: they have been a big part of their story, and it goes to show that it is a fundamental driver in investing. investing online has been a big issue for them. ceoill hear from foursquare about his first line of code. ♪

alix: welcome back to the bloomberg market day. i am alix steel. straight to the top stories.

jokers are not have has been sentenced to death. peppered with religious references and praises of all our, he gave a speech. he said he was sorry for the lives he has taken and the suffering he has caused and the damage i have done, in irreparable damage. after he listened impassively for three hours after a procession of victims and loved ones last out of him. the backlash against the confederate flag has reached alabama. governor bentley is ordering the flags removed from the state capital. becalled for the flag to taken from her state capital earlier this week. the mississippi state house once it removed. warner bros. says it will end of the 1980's tv show the dukes of hazard. there is another entry in the

2016 race for the white house. bobby jindal is joining the crowd for the republican nomination. he announced his plans online and will make it official less than one hour from now in new orleans. he was the first indian-american governor in the u.s.. he will be the 13th republican candidate to enter the race. those are your top stories. foursquare founder ceo dennis crowley was in a matching his or her computer wizard when he began coding foursquare. line of's my first code, he explains how it can be a tool for anyone to turn their idea into reality. first line of code i ever wrote was making the turtle go around. it was a turtle in the middle of the screen. you had commands that could make ae turtle move around, go in line, take a left, take a right, but it was typing commands to

move around and change colors. it was pretty advanced. crowley, i amnis the cofounder and ceo of foursquare. everyone has ideas for things that should exist in the world. usually been a steep learning curve and a high bar to go and build those things. you would assemble bits of code like lego blocks and make complicated things quickly. i wrote the early prototypes with friends. is not verywrite elegant, but it was enough to get the point of across and put a prototype together and show real engineers that i have this idea, can you help me make something awesome. this is the first piece of code for foursquare. i wrote this in late 2008.

the big idea being that if you had all this information about where people had been because they checked in, could you use that to make a list of all the places that are popular with my friends that i have never been to before. the stuff i wrote here is not , but the stuff i wrote early on could only support 5000 people. it just gets the point across. i'm looking at it, this is more complicated than i thought. this is awful. would crash. this probably took a really long time to write. there is a stereotype about writing programs are doing any type of engineering being extremely difficult. i think there are a lot of people who are afraid of it. they see green text on a black and peter screen and they think they can't code that, but people

should think it's a powerful way reallyotype ideas and take ideas that are in your head and make them into something that other people can experience. alix: that was dennis crowley. we want to update you on bed, bath, and beyond. this stock is tumbling in after hours. comp sales going forward. 118 on the low in. that is below evidence. you have vivax not helping -- buy backs not helping them. have a wonderful day. ♪

emily: the laws is user base. competitors closing in. i will talk about the company's strategy with the ceo. ♪ i am emily chang. this is bloomberg west. box teams up with ibm. the corporate race for customers. john scully has a plan to disrupt ibm, salesforce, and oracle. he is here to tell us