[closing bell] alix: u.s. stocks falling the most since april. european shares have their worst day this year. moves are due to concern greece will exit the euro. joe: the question is, "what'd you miss?" alix: what a day to be starting something new on bloomberg television. there's a global stock selloff on the same date we have a new daily program that asks "what'd you miss?" joe: we want to show you what we thought was most interesting. alix: we begin with this rough day in stocks. triple digits selloffs in the dow across the board embassies offer to present -- embassies -- indices off 2%. take a look at the s&p. above theing barely

200-day moving average which is 2053. traders like to trade around those levels. a close below could incentivize more selling. all with the countdown clock we have been watching. it has been 1364 days since our last direction. joe: last week we were talking about what happened to volatility. it has been so long since we have had a 1% plus move. we are getting that. it has been longer since we have had a 2% move. it looks like we are having that. this morning it looked like it would be mild. in the final hour, started selling off. alix: we heard the greek prime minister talking putting the onus back on greek creditors because it all lines up having to do with greece. s&p,u dig deeper in the you had financials hit hard. perhaps the yield curve is

flattening. cyclical rotation, it was an ugly day across the board. joe: basically, nothing was spared. day.ese yen had a great you can't talk about today without talking about greece. joe: that is the big story. we just had a speech by alexis tsipras sounding defiant as ever saying you better stick it to the creditors and vote yes on the referendum. there have been questions about whether it will happen. there's no sign of something less coming together for now. can find how many times a word was mentioned on articles in the terminal. we take a look at grexit on a monthly basis going back to 2010. it is right around a record.

forget 2012. take a look at now. grexit400 times the word is mentioned in bloomberg stories. it gives you a sense of what everyone is talking about. joe: i love anything that gives a sense of what people are talking about. alix: i am taking a look at the euro versus the dollar and the wild day we saw. look at this monster reversal. i came in today and said we will have a weaker euro. that did not happen. crater andtotally pop up by the end of the day. part of me was thinking that is just a euro situation. but you could see it in terms of the dollar-yen as well. the yen was stronger against the dollar. what is that about? joe: last monday it looked like greece would get the euro was weekend.

today felt like the opposite. you had everything falling apart, and the euro showing strength. the dollar weakening against the yen, greece and puerto rico, maybe people are skeptical about the fed hike. alix: joining us from london is paul mcnamara. the chief u.s. economist for bloomberg. thank you so much for joining us. european leaders say it is down to the greek government to step back from the greek -- brink and stay in the euro. big banks are increasing the probability of a grexit. this is a fascinating chart. r.b.s. doubled its chance of a grexit. morgan stanley up to 60%. what is your call? >> i think the majority likelihood is that they stay within the eurozone.

however, public polling has taken an interesting twist. if you ask greeks if they want to stay in the eurozone, about 80% say yes. if that is the only question. if you say do you want to stay in the eurozone with these conditions of austerity, support drops significantly into the 50% range. this tells us it will be a close call when the referendum is held sunday, and it is largely going to depend on the wording of the ballot. >> how do you think things play out? do you think there will be a referendum? have you think they will vote? -- how do you think they will vote? >> i think there will be a referendum. even though it is a short time to organize a big vote like this across the islands, i think it is so important. we are working with a situation where the banks are shot. it is a terrible mess. that makes things terribly

uncertain. when people are being treated the way the greeks are and when the e.u. is scaring the greek it is, i think it gets -- going to be very hard to call something that happens as far away as five or six days. we have already seen runs on the banks. it is hard to say where this before we get to sunday. alix: the dow and s&p negative on the year, off by 2%. this is finally baked into stocks, this uncertainty? >> i don't think it is especially a u.s. issue. it is desperately uncertain like everything else. when you have italian bonds only trading off a point today on the

back of the news, the same with the rest of the european periphery, is a long way from being priced in yet. ofi want to bring in a chart greek outflows, money rushing out of the economy. what does this do to a country when you seem money racing for the door? >> what you see is pulling the plug on an economy. greece has gone from mild recession to something becoming more severe, potentially on the cusp of depression. the old average of nothing to fear but fear itself applies to international finance with the banks shutting down. all of the numbers are going to get worse. we have retail sales data out of greece tomorrow. that is april data. will be more interesting is the pmi surgery -- what will be more interesting is the pmi survey

which will be nothing compared to what we see in the latest data when it is reported. alix: i want to bring in the c.e.o. from greylock partners in iran. thank you for joining us. you run a hedge fund that is one of the few that owns greek debt. what are you thinking today? >> i kind of thought there was going to be a deal. you thinki can tell, some people negotiating for greece in brussels were thinking they were on their way to a deal. there was a lot of frustration on both sides. i think tsipras going back to athens caught some of his people by surprise. it has not been a pleasant day to own any greek assets. from what i am hearing on the ground, the economic problems, the inability to get cash, there

are rumors they will drop the maximum amount you can withdraw to 20 euros, my sense is it will drive the yes vote up. if that happens, let's see where it goes from there. do you think there is a good chance they will come up with a deal that keeps greece in the eurozone? alix: does that mean you will hold your position through the negotiations? >> i don't see any reason i would sell my gtb's. is very unlikely they get restructured. everything they are talking about with greek debt, there's a lot of price movement. but our sense is they continue servicing them. i don't see why you would want to sell them at this point. we are obviously going to the monitoring situation. it is going to be chaotic.

if there is a yes vote, we are hearing the eurozone is arming up to move more quickly. what happens politically on the ground in greece? we saw what happened when he moved for a referendum. a no-confidence vote on the heels of it. there could be a lot of volatility down the road. we are concerned about the markets as well. alix: i believe we have a live shot of the greek prime minister in an interview where he puts the ball back in creditors' court. paul, do you agree with hans? is this a time you want to be buying on this kind of dip? paul: we are not that brave. this has all been political. for people driving the debt now, they are the voters or political face of the rest of europe. if there's going to be a haircut to the official sector, at the

even though bondholders have taken a haircut, i think there is a high probability europe would want the private creditors dinged again. we are not as brave as greylock with a slightly different investor base. alix: thank you very much for us.ing up so late with thanks for being here. joe: coming up, we asked jerry siegel what keeps him up at night. ♪

>> alix: "what'd you miss?" i'm alix steel. joe: i'm joe weisenthal. alix: today was a very rough day for the markets. the s&p finished down two points. greece is stumbling toward a potential default. how much worse is it going to get? jeremy siegel is not worried. bysees the dow at 20,000 2016. thank you for joining us on our launch show. are the markets pricing in a greek exit at this point? jeremy siegel: greece does not keep me up at night. i heard your previous interview with hans saying this will increase the yes vote.

this is devastating for the greek people, closing the banks, restricting the market. my sense is now they would vote yes rather than accept these rules of the european union, rather than have a free for all for the markets and economy. result outt a good of this crisis we see increased today. joe: jeremy, does it pay for investors to care about greece? should these geopolitical issues -- should people just ignore them? jeremy siegel: it's not going to affect the long run for the united states. even for europe. it's 1.6% of the e.u. economy. it's not going to be essential for a long run situation unless you thought it was going to be the beginning of the general breakup of a major currency, which the euro is.

but i don't think it is going to happen. because went up today many investors think the euro will be stronger without greece. i don't see any threat to the for the main continent of europe. i think it will be as viable as it has ever been. alix: part of the issue with the potential grexit is that the e.c.b. is going to have to go more all in. they will have to prevent peripheral contagion. we did have the annual review over the weekend that warned of creating morenks risk in the market. what do you say to that? they're going to do qe, announced six months ago.

draghi is going to say we will loan to any spanish, italian bank in trouble. liquidity is open. they have abided by the rules. greece has not. we are not going to pride -- provide them with liquidity. that is going to stabilize the euro but also peripheral countries and keep the financial markets in fairly decent state. draghi is going to step up to the rest of the euro. he is going to wait for the greek people to say whether they want to live by the rules or not. it will be fascinating to see what happens because tsipras tells the people to vote no. if they vote yes, he will have to resign. it's going to be fascinating the next 10 days. joe: he started off saying

greece is not something that would keep you up at night. what would be something? you have a reputation for being bullish. what would get you to change her mind? alwayssiegel: there are unpredictable events like terrorism, maybe even worse than 9/11, maybe involving nuclear materials. there's always pandemic possibilities. we saw what happened with ebola last october. these are perennial features. what worries me now in the general economy is not so much greece. it is the extraordinary poor productivity growth the united states and western world is going through the last few years. i don't completely understand it. i don't know if we are measuring g.d.p. right. i think we've got to accelerate g.d.p. growth in the second half of this year to 3.5%.

i'm not saying this keeps me up at night saying it will crush the market, but i certainly cannot see the 20,000 you noted a 3% orunless we do get 3.5% acceleration for the next half of this year. alix: you brought it productivity -- you brought up productivity but they cited central-bank action as hurting productivity growth. he said yourself mario draghi was going to implement more qe. our central banks creating a hidden risk for the market -- are the central banks creating a hidden risk for the market? jeremy siegel: i reject the hypothesis central banks are hurting productivity. idc regulations hurting productivity -- i do see regulations hurting productivity growth. but certainly not lower interest rates which encourage

investment, lower the bar for profitable capital adventures -- ventures. i don't know any economist that would say realistically that hurts productivity growth, so i have to reject that hypothesis. joe: thank you very much, jeremy siegel. are going toup, we talk about puerto rico and other stories you may have missed. ♪

joe: "what'd you miss?" i'm joe weisenthal. alix: i'm alix steel. we have breaking news concerning

microsoft. julie hyman is monitoring. microsoft is getting out of the web display advertising business handing it over to a.o.l. according to a person with knowledge of the matter. about 1200 jobs at microsoft will be affected. some will be moved to the other companies. all of this part of the restructuring they have been doing at microsoft the past several years. microsoft has over 100,000 employees. i also want to draw attention to the shares of juneau. they have been surging. they will pay about $1 billion and form a collaboration as the companies are studying cures for cancer. celgene will pay the company and get the right to commercialize the therapies. you, julie.

joe: greece dominated headlines today during the stock selloff. what else did you miss? we begin with puerto rico's debt debacle. laura keller joins us now. at 9:30 last night, i got an alert that says the governor or puerto rico since the debt is not sustainable. how much of a surprise is this? laura: what we have known about puerto rico, it is not a surprise. the way it was announced in a media article was certainly not the normal way this happens. normally, this happens in private conversations. this is a little different. joe: puerto rico has seen its debt climb massively over the years. you can see on the chart it has climbed every year. what is the state of affairs that has caused puerto rico to

pile on so much debt? laura: every year, they have overextended in terms of budget. they projected how much revenue they will raise, but collected much less. every year, they needed to paper over the shortfalls. alix: puerto rico needs to be able to declare bankruptcy and can't. laura: some people would argue with the word need. alix: it would seem like bankruptcy could be a window out in some aspects. but they can't do it. laura: they can't do it. we would understand the possibilities better because we could follow the precedents set in other cases. because we don't have that, it comes down to negotiations. it would be helpful in that regard. joe: who is most exposed?

in terms of investors, the types of companies this likely to feel the fallout. laura: you have a lot of pharmaceuticals in puerto rico. for creditors, tons of mutual funds still own puerto rico debt. our mutual funds are still down there. joe: laura keller, thank you very much. alix: we are also looking at china after stocks are in a bear market potentially. will there be restrictions on ipo's to keep money in the stock market? iran deadline -- the iran deadline is tomorrow. monitoring what would happen with sanctions. joe: very impressive globetrotting. up, we are going live to athens to make sure there is nothing else we have missed. ♪

alix: thanks so much for watching our first show of "what'd you miss?" joe: next time, much more data, greece, stocks, currency, bonds. alix: we will see you tomorrow. ♪

cory: chaos in the skies, 136 -- 139 seconds after takeoff, spacex reels from an expensive incident. ♪ i'm cory johnson in for emily chang. this is "bloomberg west." coming up, iphones that feel like the apple watch. plus, google adding fuel to the fire in a heated antitrust case. and meet the company betting you will use virtual reality to plan your