good afternoon. i'm mark crumpton, here with scarlet fu. scarlet: we have some headlines from the new york stock exchange. close to reopening two halted exchanges. we'll bring you the details when it happens. they have been halted from trading since 2:00. mattingly is standing by in washington. good afternoon. phil: we are talking the fed minutes just released from the meeting. while members to express caution about the economics, both domestically and internationally, they still made clear in those minutes that they are on track for a rate hike at some point this year. that is the big question

everybody has. are these minutes actually outdated? mention risk coming from china and the negotiations --ween creditors and greece those situations have changed significantly in the three weeks since these minutes came through. riskcipants pointed to the and some concerning caution about first-quarter growth in the united states. every single participant said they believe that growth would pick up in the second quarter and was overstated. numbers that have come out since then seem to have backed that up. havee the risks we seen in china and greece, fed officials making it known that they are on track for a rate increase in 2015. a lot to be explained going forward. another fed official speaking today. janet yellen speaks on friday.

-- might get more clarity on with those speeches given how much has changed in the economic atmosphere over the last three weeks. scarlet: thank you so much for giving us those latest headlines. this has been one of those days where you had the release of the fed minutes, you have what's going on -- scarlet: that was scheduled. mark: everything else was unscheduled. julie hyman is standing by now. good afternoon. julie: i wanted to see if there was any reaction to those fed minutes. it doesn't seem there is much. for therolling study three major averages. if these minutes did anything, maybe they just signaled or emphasized that the fed is watching events around the globe. so much has changed since then, maybe the minutes are old news

at this point because events have been missing -- moving so quickly. you can look at the s&p 500 behind me, not seeing much movement there. trading has continued. as i look at volume in the s&p, about 4% above the 10 day average. not see any kind of drop off in volume in terms of how it is versus the hundred day average. the s&p is about 4% below that level. -- in terms of any reaction we are seeing in the yeare at this point -- 10 at this point come looking at the yield which is about 2.2%. not seeing a lot of reaction on the minutes, either. not specifically. we have seen some buying of treasuries as we sell -- see selling in stocks today.

let's get a trade on what's going on in the dollar today. the dollar index trading lower by about a third of 1% -- .3%. largely -- remains even as the drama has been unfolding, stocks have remained lower by around 1%. we have seen buying, little bit of selling in the dollar today. i want to get a quick check on shares of ice. we saw a leg downward and ice just after the news came out that the nyse had suspended trading and it's remained all 1.5%. it is down by the new york stock exchange, according to people familiar with the situation, is preparing to reopen. we will keep on this developing

story and keep you updated as to what's going on. scarlet: thank you so much, julie hyman. for more reaction to those fed minutes, we are joined by eric green, global head of research at td securities and lisa abramowitz. economic conditions as continuing to approach those consistent with warranting a start to interest rate increases at some point. when is it some point? eric only i wish i knew the actual answer to that. the june minutes are still. september is when i'm ready to go because there's more confidence. everything is moving their way. they had a lot of concern about consumer spending.

that's a lot better. the economic data is moving their way. the intro risks are not. -- international risks are not. we want to see how these things pulled over the coming weeks. no one really knows how they will unfold. the level of uncertainty will keep the fed extremely vigilant. i don't think they are prepared to sign off that september move up. scarlet: bond prices are getting bid up and yields are coming down and futures trading our push -- future traders are pushing -- >> this is a little bit concerning. this will make it more complicated for the fed to hike in september. they're are pushing back expectations -- it's less likely now that the fed will move then. if they do move, that will cost them. traders are betting that the events in the macroeconomic picture have actually dented the economic outlook for the u.s. it's not clear.

the fed has a small window to hike rates. they might go for it anyway. mark: that includes what fed officials have been saying -- maybe twice this year. eric: i have an expectation of two rate hike increases -- i say don't focus on the second one. we have to get the timing of the first one right. if it goes well, that increases the odds in december. in terms of setting up the markets, it's an extra challenge. if you read the minutes, they say the high level of resource and low inflation means we can be patient and moving our accommodation. that was in 2004. three months before the fed raised rates 17 straight times. one of the things we have to remind ourselves is not to underestimate the capacity for things to turn for the better or for the fed to move when it

feels right. it'se not certain if moving right. the dollar has strengthened due to what's going on in greece. the dollar was a considerable headwind for the u.s. economy, potentially hampering growth here. if they do surprise the market and hike sooner than expected, that will lead to a surge for the dollar. scarlet: that has been the case over the last happier. speaking of markets overall, which asset class is the federal reserve paying the most attention to? you can't help but take that into consideration. >> i would look at commodities -- if you look at oil and other commodities, we are feeling differently about inflation, we know we are going over 2% in six months. inflation expectations are much higher as well.

when i look at the inflation front right now, it's a much better picture. the fed looks at a lot of things. no sign of contagion -- the dollar is about 2% higher. fedwhole thesis that the can withstand a stronger dollar, we don't need the weak dollar. we can prosper with a strong -- you see more confidence now that that is the case. the question is whether or not uncertainty is going to tilt it. onk: janet yellen will speak friday. what does the bond market want to hear from her? scarlet: that's a great question. people are piled back into bearish trades. if she says we have confidence the economy is doing really well , we are ready to move away from

our crisis era monetary policy, that could cause a big problem in the market. she continues with this muted language -- expect no action. given everything going on, even if she were inclined for september, she will probably tread softly. scarlet: what is your view on the u.s. economy? -- wefficials saw a risk have seen the data show that we are coming back in the second quarter. do we presume it looks like what we saw last year? >> i don't think so. a week first half sets up a stronger second half. the big drop in energy prices usually operates with a lag of 12-18 months. we expect to get more follow-through.

when i look at wages rising and personal income savings -- net worth and jobs good, it's tough situationfind a -- mark: i have to ask you about what's been going on at the exchange. >> i am as bubbled that's baffled as you are. -- i am as baffled as you are. it is not something you want to see, especially given the restrictions in china. you cannot sell. i were a comic, i would make a joke that we cannot sell here, either. talking fed minutes, talking about what's going on at the nyse today. thank you both so much. scarlet: we have much more coming up. the new york stock exchange

still halted. the big board is set to be close to reopening soon. we will be back with more details. ♪

mark: welcome back to bloomberg market day p i'm mark crumpton, here with scarlet fu. scarlet: julie hyman has a look at the markets right now. we seem to be coming back from the selloff. julie: not quite as dire as it was earlier. take a look at the major averages. still down around 1% across the board. the fed minutes did not make a dent in the selling, which was

parked overnight by the big decline we saw in the shanghai composite. we will get more on that in just a second. i want to talk about the selloff we are seeing in semiconductors. spark after invest microdevices cut it sales forecast saying sales were going to decline more than estimated this quarter. it brought down the semiconductors yesterday and again today, seeing broad selling in this group. a broad-based selloff overall. all the industry groups are down. -- we've performers also seen the selloff in the automakers and auto-parts makers. in addition to everything going on with china, china reported that auto sales were down for the first time in two years. falling and general motors has fallen.

they get a quarter of their sales from china. there's another company that is fairly reliant on china. -- anything commodity related is going to be hit by china concerns since china is such a big consumer of commodities. we are seeing alcoa down 4%. sign asssarily a good analysts anticipate flat revenue for the company. this is a chart from bloomberg intelligence, looking at the price of aluminum. --s the midwest premium here that tends to be used for contract pricing. you can see the decline we've seen -- it's about a 13% decline quarter over quarter. not only do you have the declining aluminum prices, you have the premium going down. not great news for alcoa. air: people have been on

and with piggybacking on what you've said because you pointed out nyse small percentage of the overall trading volume. that's why the outage -- you did not see a lot of panic because there's a lot of redundancy. saying weders were are trading as usual today. where you can see the structural move would be the close of trading. they are determined to get things up and running by the close of trading because that will be the most important moment for them. the last half hour or so when the new york stock exchange -- you see the closing auction. mark: julie hyman, thank you so much. scarlet: we are getting reports that the n.y.c. may be looking to reopen trading around 2:30 come in time for the close. we will keep you posted of any development on that as well.

mark: let's look at the top stories at this hour. microsoft is wiping out the entire value of a business it bought just 14 months ago. the company's limited examinee and hundred employees and will take a $7.6 billion charge on its new kia mobile phone -- nokia mobile phone unit. microsoft announced plans for a 2000 job cuts year ago. -- 18,000 job cuts a year ago. scarlet: greece formally asking for a three-year bailout. promising to implement reforms to taxes and pension starting next week. that comes a day after european deadline.mposed a greece's prime minister promised to deliver. >> in the next two or three days, we want to spring forward and complete proposals in detail.

we will be able to meet the obligations of the crucial time -- scarlet: greece is extending its bank holiday through friday to -- mark: china is taking more steps to stop the stock market melt. regulators are banning major shareholders from selling for six months. the benchmark shanghai composite index fell almost 6% today. it's down more than 30% since june 12. a drop of more than $3 trillion in market value and much of that money is borrowed. south carolina come of the state house is deciding whether to remove the confederate flag from the capitol grounds. the senate approved the measure yesterday. it house members back the senate bill, the governor could sign it into law before the end of the week. there's related action at the federal level as well. the u.s. house has voted to display --

mark: from one controversial symbol to another, the nfl's washington redskins have lost a battle off the field. federal judges ordering the cancellation of the teams trademark registrations. many native americans are opposed to the franchise's name and logo. the cancellation will not go into effect unless the team exhausts the appeals process. scarlet: he was the captain of the millennium falcon a long time ago. who is this? what is your operating number? scarlet: han solo is getting his own film. disney is working with the directors of lego movie to make a star wars spinoff set for release on memorial day weekend in 2018. fans of the franchise will pay close attention to the upcoming casting decisions after harrison ford is reprising his role in

the force awakens. dowould be hard for him to all this action scenes. those are your top stories at this hour. mark: stay with us. more on the nyse outage. toy are set to be close reopening to halted exchanges. -- two halted exchanges. ♪

scarlet: let's go back to what's happening at the nyse. matt miller is here with an update. we're hearing that they are working to get trading restarted once again in time for the close. matt: about 2:45, they want to reopen.

the question is how long is that going to take? specialists say there are two ways they could do it. they could go through and manually reopen every stock so blurb of 25has a stocks to work with. they can manually open each one. or they would have to formally indicate to all the other exchanges their prices and take a longer process to reopen the we willn which case both be at work late today. out: julie hyman pointed this technical issue did not put a big crimp in volume today. matt: it did not. when you pull up the screen of all the different indices, you can compare the average volume the certain time versus

hundred day average, the biggest range you can choose. we are still trading more volume on the dow jones and s&p 500 right now than we have over the last 100 days on average. -- nasdaq is a little less it has some of the typeface docs. big blue, ibm is lower than it would be. at volumef you look on the new york stock exchange, you will see where the volume drops off heard we have a chart of it on the bloomberg terminal. this is for the last three days. today's volume flatlining after 11:30. matt: you can count as many as 16 under this other exchanges on the website -- a lot of people say there are 60 venues in the u.s. where you can trade equities.

total volume is going to be much more, 12-13% of total volume. mark: are you surprised it's taken so long to find a solution? >> i am very surprised on one hand. i know a lot of the guys who run the new york stock exchange technology information systems. they were top-notch when i was working on the floor couple years ago. on the other hand, they are very public and systems. it's difficult to go through and reorganize everything. -- very, located systems. -- very complicated systems. ♪

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the federal reserve releasing the minutes from its june meeting a short time ago. saw the economy moving towards conditions that would support a rate interest increase. last month, janet yellen forecast the fed would raise rates two times this year by lowering its outlook for subsequent increases. global markets have been shaken up by the rising risk of a greek exit from the euro and the route in chinese stocks. jpmorgan is settling state and federal investigations into credit card and debit card collection abuses. the bank has agreed to pay $136 million and will change its collection tactics. they pursued the wrong borrowers, seeking incorrect amounts. united airlines u.s. place back in business at this hour. the flights were grounded this morning. this is the second setback for united in less than six weeks.

a similar incident occurred on june 2. barclays chairman shaking up the bank after just three months on the job. the chief executive officer is out. he cut thousands of jobs and sold off assets. barclays says new leadership is needed to speed up the overhaul. eggs -- hee over looks for a permanent ceo. promising more cost-cutting. getting your taco bell fix may get a lot easier. they are starting delivery service today with store --. h. door das plans to bring delivery nationwide but no word on when that will happen. russia's real-life action hero come a man who excels at eyes hockey, judo and mountain skiing, president

vladimir putin. he told the indian prime minister that he may start practicing yoga if his health allows for it. they met at a brick summit in russia. those are your top stories. we will head back to the nyse outage story and get reaction out of washington, d c. we know the president has been briefed. do we expect law enforcement to get involved at any point? >> they were involved early. , there has been a sigh of relief in washington as it got the facts and got their arms around what's been going on up in new york. it took only about 30 minutes. to put out a statement saying they did not believe nor had they seen any evidence that this was a malicious attack or any type of hack on the new york stock exchange.

the fbi reached out to the new york stock exchange asking if they needed to get involved. they were told, no. it,'s happening right now the securities and exchange commission has taken the lead here. ony're keeping a close eye the new york stock exchange and markets in general, making sure everything is going on. i was talking to some administration officials. the president has asked to continue to be briefed on this. there is a recognition inside the white house of the importance of the new york stock exchange. it's important to note, when you talk to law-enforcement -- thels come up couple new york stock exchange is one of the best when it comes to relationships with law enforcement related to cyberattacks. like all financial institutions and exchanges, they are a natural target. the information flow is pretty

good. something in the and ministration officials have been speaking to as a positive thing throughout this entire process. law-enforcement did feel comfort will with the fact that the information flow going back and forth between them was not only anduate, it was very good help them get out the information quickly that this was not a cyber attack, something that would have a positive impact on the markets that were very confused about what's going on. scarlet: it was surprising how quickly the established early on that this was not a hack. you have to wonder if there's a coincidence here with some other computer outages, whether it's united airlines or the wall street journal website. we've determined so far that there is no link there. >> that is correct. united, what with happened with the new york stock exchange were two very separate issues. onon't have any information

the wall street journal website, but they made clear that what's going on with united and the new york stock exchange were very different. -- freakhe people get out is a strong term here. just because of everything that surrounds cyber issues, you saw the reaction and how quickly people got nervous. conspiracy theories were thrown around, allegations of what could and could not be happening. how quickly law enforcement was able to get out in front of this and publicly talk about this. they recognize that people are very nervous about cyberattacks are particularly when it comes to a key component of financial systems. it was incumbent on them to make clear what they knew as quickly as possible. that's what they did. it looks like it was an effective response. thank you for that update. scarlet: this story is still developing.

we are joined on the phone by capital.f cu bridge here with me on set is matt miller. thank you so much for speaking with us today. you own a stock in the hong kong exchanges. do you hold shares in -- what was your take on the halting of trading? this has nothing to do with cyber hacking, but more of a technical glitch. >> the main issue to me is a cyber attack threat. as long as we've established this is not an issue, we are spending an awful lot of time on something that doesn't more and it. the new york stock exchanges 20% of the daily volume. you spoke to any of the large institutions execute trades, i think they're putting it somewhere else.

matt: buzzy is legendary on wall street. insold to merrill lynch 2000. legendary in the world of donuts and the world of stocks. to your point, i heard this news -- i ran out to get a salad. i almost had a heart attack on the street. i came in and realized we were still down just about 200 on the dow. it seems like the market is taking a completely and that's completely in stride and chose the new york stock exchange is not indispensable. buzzy: 30 years ago, the firm i worked for took over a smaller firm. my biggest concern was that they

, thereeat -- in a year won't even be an exchange. there is no need for it. there is no need for it. they are doing putting percent of the volume. -- 20% of the volume. any major institution or small hedge fund, large or small, you find out that it was a chick -- seamless changed today. i don't to get makes a difference to anyone. the only real danger here was a cyber attack part. if that is not an issue, everybody can take a deep breath of relief. for the new york stock exchange, for their sake, i hope they get the glitch fixed quickly. from the markets point of view come i don't think anybody has to be concerned. matt: for the i.t. -- whether

you are trading donuts or stock, this cannot be at all good for the international exchange. for their reputation. do they lose business because of this? >> what happens in a case like realize thatpeople we can do our business comfortably without it, that will help with competition. -- help the competition. there are traders with nothing to do right now. you see reporters -- the floor has become more of a museum. met: they still have some serious functionality. at the open and close, they run those auctions pretty flawlessly.

the specialists down there of the few people who know how to do what they do and they do it very well. during this time of day, traditionally, there would not be a heck of a lot for them to do as far as hands-on training because everything is going through computers now. i've heard that you've never been on the floor of the nyse. how different is it from when you started in the business compared to what we see there now? buzzy: 40 years ago, it was the main place for securities. that was the only place. by and has gone electronics have come into the marketplace and competition has come in, the new york stock exchange has become less of a factor. concerned, it is

seamless whether they are there or not there. at -- i were looking know you are friends with tommy night and champion of had to step down after they had their own glitch and had to sell. is this the glitch that can provoke a sale? something that could be catastrophic for the nyse? buzzy: i don't know about a is surprising that you don't have backup systems -- any new program you would be with that you tested and retested. that has been a surprise to me. scarlet: thank you so much. matt: the owner of the doughnut shop. matt miller, the doughnut aficionado.

he has been keeping us up-to-date. there's a lot of machinations that need to happen in order for them to restart training. matt: i don't think there are going to be. when they restart, are they going to go through and this traders manually open each of the stocks that he or she makes the market in? or will they have to formally declare -- give an indication. -- i've't look like been talking to brokers. they will have to formally indicate all this stocks. it would take three minutes per name. if you are running 50 names, that will take you long past the closing bell. scarlet: thank you so much. we will be right back. we will be covering the nyse outage and let you know when and if the nyc begins resuming trading. trading has been suspended since 11:32 a.m. and volume has not

taken a hit at all. volume on the s&p 500 up 5%. 21% versus the 10 day average. ♪

scarlet: welcome back to the bloomberg market day. we are keeping an eye on the new york stock exchange. a.m.t in trading at 11:32 we are waiting for them to reopen trading. we heard it would be sometime around 2:30. they will try to get it done before the market closes at four clock. we have no word on when trading will resume.

-- at four clock. -- 4:00. stocks continued to trade as if nothing skipped a beat because you have the s&p 500 lower by 1.6%. we have been meandering a little bit and are now at session lows with all 10 industry groups lower. industrials losing 240 points. dowou look at volume in the come up 21% versus the 10 day average. you don't see any damage from the fact that the nyse has halted trading. we will continue to keep an eye on that and bring you any headlines. we want to move on to commodities. one question someone people are asking, what's going to break the cycle of overinvestment in global commodities? goldman sachs as an answer. a prolonged slump should do it.

jeff curry spoke on bloomberg television earlier this morning. macro teams.ajor the deflationary impact of lower commodity prices and the excess production. the second one is divergence. stronger u.s. growth against the rest of the world. create a stronger dollar, weaker commodity currency. the third is deleveraging. that's what's going on in china. nats of -- massive debt buildup. all point to lower commodity prices. scarlet: i need to bring in alix steel. you've been following jeff curry's research for a while now. what does he mean by new world order? ix: what he was saying was we have a stronger dollar and lower local currencies. the input cost in those countries actually falls and

becomes a lot cheaper to produce commodities. a copper mine in chile are more productive so there is more supply on the market. adding to the glut. you have the deleveraging when it comes to china when they are taking the man off the table. force is what he winds up talking about. scarlet: when he talks about new oil order, the shell revolution shalell revolution -- revolution? alix: it is still oversupplied. you are looking at a five-day slide, the worst we have seen in almost four years. take a look at the inventory data. we saw an inventory build, looking at 384,000 barrels. we saw a buildup gasoline, 1.2 million barrels. refinery utilization moving down

.2%. they are working less, we are building more products, not using as much crude. that's why you are seeing well, the mid. bid.ming off the electing crude production, not shale. oil did not get hit as hard. this chart comes from bloomberg intelligence. they look at 80 wealth in north dakota. they look at 80 wells -- they were already fracked. production rate when they started was 30% in the first month. re-frack, you and can get that much more oil out of one well. that's a whole new situation that we have never tested in this world oil market.

scarlet: we have to reassess all the numbers. i want to bring in copper as well. copper is making a bit of a recovery here after getting hit hard by concerns about china. even as it was hit hard, he did not tumbled away crude oil did. alix: it was at a six-year low yesterday. it did wind up coming back a little bit. goldman sachs said copper was the most exposed to that deleveraging divergence cycle. there is no real correlation except between chinese stocks in -- unwinding positions because of weaker china demand. scarlet: the china macro story is driving copper. alix: according to goldman sachs, that is not the reason for it. scarlet: they are selling copper futures.

alix: goldman sachs is like, i like nickel and zinc. think has exposure to china infrastructure and the car sector. -- zinc has exposure to china. there are mine closures. you have supply coming off, the same thing that happened with nickel. scarlet: i learn something new every single time. alix steel will be back in 10 minutes. we have much more coming up. united airlines u.s. flights back in business after they were grounded earlier today. this is not the first time it has happened to the carrier. more on that, next. ♪

scarlet: want to bring you some headlines here. trading will resume without a reopening option and they will resume trading at 3:05 p.m. --

3:10 p.m.00 p.m. -- we are anticipating that the new york stock exchange will once again reopen trading, resume p.m., 16 minutes from now. you are looking at a live shot of the floor of the new york stock exchange were there has not been any action because of a technical glitch in their system. equities have continued trading on other platforms. equities are lower on the day. heavier than average volume. lows with theion dow off by 1.4%. if you are headed to the airport , you better be prepared for some delays. u.s. flights were grounded for two hours because of a computer glitch planes have resumed.

this is not the first glitch for united airlines. joining me is george ferguson. is this a united specific problem? what is it about their computer systems that make it so vulnerable to these glitches? too longappened not ago. george: i don't think it's a united specific problem. the ceo focused a lot of things on this computer systems working well together. --be it's a united problem they have not gotten these systems to talk together as well as they should be. scarlet: i like the fact that you bring that up. united bought continental in that massive deal. and a lot big holdups of the 70 deals was the fact that they had to get the computer systems in sync. there's lot of these m&a deals

-- --i'm surprised to have them see them having problems this late in the process. these are very complex systems. scarlet: shares of airlines lower today in line with the overall market. there are a lot of discussions here about the department of justice accusing them of fixing prices. george: shares are lower right now. investors are trying to figure out where they go from here. the biggest input, the biggest cost input is fuel prices. we have to leave it there. thank you so much. ♪

ehrlich: it is new -- scarlet: san francisco.

is the bloomberg market day. scarlet: good afternoon, everyone. i'm scarlet fu here with alix steel. we just got word that the new york stock exchange will be reopening around 3:10 p.m. today. in the meantime, you can see the s&p the load of the session. and we are seeing a selloff, but it feels very orderly. scarlet: and there are plenty of reasons to be bearish. if you look at what happened overseas in china, the document it meltdown continued there. mention, everyone is keeping an eye on what is happening in greece. no new progress, and the dead