this is "nightly business with tyler mathisen and sue herera. stocks tumble. investors on edge one day before the key employment report on a lack of a resolution in greece and the recent route in the bond market. >> game of chicken. opec meets tomorrow and even with the world awash in oil, many expect thf with the west to continue. >> bottoms up. why the bourbon industry is quickly becoming an economic force in the state of kentucky. all of that and ton for "nightly busines" on thursday june 4th. >> good evening and welcome. than us. a big selloff on wall street. and it wasn't one thing that caused investors to dish stocks but a little bit of everything. lack of a resolution in greece. what will the country pay and when will they pay it. concerns over the recent move

higher in intere and its been a big one and a drop today in oil prices. by the close the dow jones indu was off 170 points to t 17905, nasdaq fell 40 ps and the s&p 500 was 18 points lower. as for interest rates, they took a bit of a breather with yields falling slightly after they hit a seven month high. >> what the investors care about is the fed and when the central bank may move on rates. today the head of the monetary fund said not so fast. lagarde said she wants to delay raising the rates until next year. and she's not alone. others express concerns about moving too soon. steve liesman has more. >> the i monetar fund not mincing words asking the hold of raising interest rate

rates until 2016. saying they should raise until rates and inflation starts to rise. >> a suggestion that a interest raten wait a little and such interest rate hike can wait until 2016. forward governor hail brainerd said the economic weakness may not be all temporary. and issued caution in rate hikes. he is uncertain about whether the we tempora but there are more questions about the economy now than this time ted is looking at two criteria. first whether the job market is improving and er moving back toward the 2% target. but recent economic suggests there is a third criteria. officials are waiting to see if the economy can handle what they

call rate normalization, or consistent march hire rating toward a 3% to 4% rate. in a recent speech janet yellen didn't call it raising rates, she called it normalizing policy as in more than one hike. >> i think it would be appropriate at some point this year to take the initial step to raise the federa rate target and begin the process of normalizing monetary policy. to support taking this step though, i will n continued improvement in labor market conditions and need to le reasonably confident that inflation will move back to 2% over the medium term. >> that explains why the fed doesn't just do a quarter point hike in rate. it is like who doesn't just ser the plane can fly at 5,000 feet, they want to know it can handle the cruising altitude of 30,000 feet. likewise the fed is not just judging if the economy can

handle liftoff, it is trying to figure out if it can hafrndle rate normalization before change. and the foed staying too low for too long which some believe it already has. for "nightly business rep the fed also of course paying very close attention to the labor market and today we learned that jobless claims fell by 8,000 to a seasonally adjusted 276,000 last week know a 15 year low a sign the job market remains firm. tomorrow the gov for may will be released an economists look for 225,000 jobst month with the unemployment rate at 5.4%. and let's attorney to mohammedal arian to talk about the report and what the move higher in the bond market may mean for fed. he is from alliance.

good to see you. good to have you back. >> thank you, sue. >> let's start with the jobs report and i want to talk about the unusual move by the imf but as we are awaiting the jobs report but ideally what would you setomorrow ideally i would like to see three things. one is job creation in excess of 200,000 for the month. two, is higher wage growth above 2% annualized. and the third is some pickup in labor participation without a sharp increase in the unemployment rate. that is the green team if you like out of the report tomorrow because that would point to a broadening economic recovery. >> let's talk a little bit about the imf statement today, lagarde. there is tut tutting about this who are they to tell us what to do with our interest rates. what do you make of it was it all that for the fif to speak out this way? what do we think?

>> yes, tyler, it was unusual. and it was unusual because the fif was extremely specific and explicit about a very delicate policy issue which is when should the fed rate interest rates. it i very unusual for them to be that specific. it is also unusual for them to say this when everybody acknowledges that there is tremendous fluidity in the economic data. that different series are getting different signals about what lies ahead. and finally the fed has worked really hard to reduce the market obsession about the timing of the first rate hike. what they want us to focus on is a very shallow path that is conditional, so they could stop they could continue and importantly, a terminal point that is lower than historical averages. so for the fif to put back something significant to market

volatility today. >> does it also indicate that perhaps miss la guard has concerned about whether the global economy can with stand the rate hike by the fed? >> so i suspect three motivations. one is exactly what you just said sue. which is they want to bring in the international context. and it is not a very solid one. they are worried about europe they are worried about the emerging world and they don't want a u.s. interest rate shock to derail the rest of the economy. so they want to bring in the international perspective. and they have been assertive in greece taking a pretty tough position. and thirdly the only signal to the rest of the world that they are even-handed. that they are willing to speak to the larger shareholder, the same way that they ar speaking to smaller ones so so i think it is a come beenation for all three, sue. >> and what is the best rate for interest rates, best guess. >> what is next is volatility. more volatility.

u.s. rates are unusually driven by what is happening in europe. europe is being subjected to the impact of very large ecb large scale purchases versus a change in paradigm with inflation. so the german interest rates is volatile and that will translate across the atlantic to us and the one thing for sure is interest rate volatility which will mean foreign exchange volatility and commodity and interest rate volatility. and what the fed is about to do it is not just about employment and inflation, but it is also what i want to talk about is how do you balance the risk of policy mistake versus the risk of a market accident. >> right. >> and that concern -- they are concerned about risk taking. they are concerned that artifici rs that no longer consistent with fundamentals so i think they want to normalize. i still expect them to raise

rate this is year. >> on that note mohammedalery an with alliance. >> more issues in greece rattling markets. it won't make the payment due to fif tomorrow. they plan to bundle four payments. 1.6, a lump sum due on june 30th. s allowed under fif rules but rarely used. >> west texas intermedial fell to $58 a barrel and despite concerns of a global supply glut many investors expect opec to maintain current production levels. jackie deangelis has more. >> the oil market awaiting tomorrow's opec meeting to see if it will cut production to stem the oil in the market. according to a survey a prom innocent oil analyst, a majority believe there will be no production cut at this time but

nearly half think supply and demand are the key factor driving oil prices right now. >> we still have a lot of production in this country, we still don't have a lot of use for it yet. although global demand looks like it is picking up a little bit. i think we come off after the meeting. opec as a whole is producing over 30 million barrel per day quota and here in the united states another production bump last week moves the needle closer to 9.6 million barrels per day. opec's goal in enduring low pric to squeeze out u.s. shale producers and it hasn't been working and as we know production is rising. survey respondents had no consensus on what they think about u.s. production. a third said it would rise a third said it would flat line and a third said it will fall. >> i think we'll see lower levels in crude oil. and another thing coming into the market and that is iran and so we'll have another supplier

with opec producing and the u.s. producing. t cut or not to cut. that is the question for opec if the cartel doesn't act now. about a quarter of those surveyed believe they will have to act next year and that is the game of chicken continues. for "nightly business report," i'm jackie deangelis. >> still ahead, the federal government suffers a massive security breach. details next. the fbi is investigating what some are calling one of the largest thefts of government data ever. a vast amount of information about federal employees held by the office of personnel management was accessed. the government agency says 4 million people by

the breach including current and former employees. according to the associated press, exciting a -- citing a u.s. official it could affect every u.s. agency. they suspect hackers based in china are behind the attack but it is still being investigated. an update on a story from last month. securities regulators have sued a firm that called itself ptg capital, and several others for allegedly making bogus takeover offers for avon products and two other kpz. the fake regulatory filings were attempted to fraudulently drive up the share price. dish network is in margin talks with -- merger talks with t-mobile. th discussions are in the preliminary stages. still shares of both dish and t-mobile rose in trading today. a potential deal would be the latest in a string of consolidations hap in the industry. julia boorstin takes a look at the changing telecom landscape.

>> if dish network and t-mobile n agree to a deal the combination of the fourth largest wireled tv company would create a giant in tv communication and better positions to face rivals. this comes as t-mobile's rival at&t gets bigger closing in on the $49 billion acquisition of dish rival direct tv. and it sets the stage for more consolidation for other telecom giants. >> we think the market is becoming more is becoming more competitive with direct tv. t-mobileould become competitive with dish and a lot of fire power and potential partnership with cable and google down the road and that leaves verizon in a vulnerable position. distribut giants are working to grow their subscriber y adapt to the spike in mobile usage and

digital content consumption. analysts say it would speak to the two country's strength. dish brings wire spe crumb and t-mobile. >> t-mobile with dish will have the opportunity to target the suburban and rural customer bases today it doesn't address and we think that is where the retch synergies could come in a transaction. the question for all of the mergers in the works, regulatory approval. though nonshould face as much as comcast and time warner cable did. i'm julia boorstin in los angeles. >> continue to slide at lands end. the retail reporter had a 10% decline in fir revenue as the company continues to strug well a weak retail environment and foreign currency impacts. shares off 4.5% to $27.39. jm smuck out with mixed

results today. the food company behind folgers coffee and pillsbury reports weak quarterlies and disappointing fu higher costs weigh on performance there. shares off 4% to $113.75. now a decline in revenue as cost cutting helped to narrow the loss. the commercial vehicle company has been struggling to gain market share despite red hot demand. shares tumbling to $24.82. rite aid saw same stores grow led by growth in the pharmacy section but shares fell nearly 4% to $8.34. the fortune 500. it is the annual list of the 500 largest companies in america and this year their combined annual revenue hit a record. in the top spot is wal-mart

exxon-mobil number two and chevron at number three. joining us from washington is a familiar face to us susie garib, at fortune and an nbr contributor. go to see you. what is the significance of the for the ube 500 and why do investors care. >> first of all, these are iconic companies. it is tyler, like the oscars the academy awards for corporate america and everyone is looking for who is number one and as you saidyot is wal-mart. and the 500 companies not only are they iconic they are the powerful engine of the u.s. economy and the global economy. and you just mentioned that their comb revenues hit a record. as a percentage of gdp it is something like 72%. so they have huge economic clout and that is significant at a time when we are talking about start-ups and the jazzy companies and entrepreneurial companies out of silicon valley. >> where there any surprises this time on the list.

>> always. it is interesting if you look at the top ten. first of all, with the plunging oil prices that we've seen recently fascinating that exxon held on to number two spot. and you mentioned chevron and phillips also in the top ten. but the other one that is surprising is cvs, now in the top ten. go figure. here this company has become a powerful player in health care. it stepped over at&t and another energy company to get into the top ten. >> and you spent a lot of your time these days talking to the ceos of fortune 500 kitchens and s a survey that went along with this. the 60th iteration and what did the survey find. >> the top question to the big kwps what is the biggest threat that you're facing and it is fascinating wasn't cyber security it. was technology change. a rapid technology change is a big issue for big companies and they say they will change more in the next fi five years. separately in terms of the

questions that i've been asking ceos we're fixated in the media about what the fed is going to do next and most ceos are chill about it. they feel as if interest rates go up it means the u.s. economy is no longner a crisis and that things are doing better and over all they are positive about the economy even though it is struggling a bit. >> susie, great to see you. >> great to see both of you. >> susie g in d.c. for us tonight. >> and the bourbon boom. the best time to be in the business since prohibition. it is the worst outbreak of bird flu this country has ever seen. and now its impact is being feld

beyond the farm and all the way to your local grocer. morgan brennan has more on the nation's egg shortage. >> consumers are starting to feel the pinch from this year's record outbreak of bird flu. >> well the shopping is nor expensive. i'm probably going to a couple of stores before i make a decision and buy certain product. i will change what i have to eat. >> grocery stores across the u.s. are beginning to notify cuomers that a egg shortage is cutting into inventory and pushing prices higher. the u.s. dav has confirmed cases of bird flu and the vast majority are egg-laying hens. 12% of the country's population is being put down. commodity research firmerner berry has said it pushed to levels. >> we're looking at 12% of egg product prices in terms of the

breaking cost e looking to compare shell eggs. the wholesale price of a dozen shell eggs have prison 120%. supermarkets are beginning to push the cost out to the customers. in new jersey one wegman's grocery store has posted notices about the situation in the dairy departments. some stores are limited due to slortages in the twin cities market and some stores are feeling the pain. what a burger has had to curb the breakfast hours after the primary supplier became infects. mcdonald's confirms that one of its suppliers impacted as well but contingency plans are preventing disruptions. dunkin' donuts and ihop said they haven't been affected but watching the situation closely which experts warn may still get worse. >> we certainly anticipate an

outbreak so we're going through unchartered waters now. >> but there have been winners if it could be called that. no top egg producer cow main whose is in the southwest may benefit from increased demand sending the stock soaring. archer daniels midland is filling more increase for the egg substitute as a start-up hampton creek and the usda green lights companies from the netherlands to make up for products. morgan brennan. from eggs to bur bans. kentucky bur ban. the industry growing fast and adding jobs and generating revenue for the stake and leaving a economic mark on the economy. and the lucky assignment in kentucky. the commonwealth of kipt home to the native spirit. we're talking about bourbon

whiskey. it is not a requirement for bourbon to be from kentucky but for all intents and purposes it is. 90% of the bourbon supply is made right here and for good reason. >> the limestone water we get from the ground is iron free and clean. great water for making whiskey. >> we have about as many hot days as cold days during the course of the year which is good for the aging process of the barrels. >> for it to be considering bourbon a number of requirements need to be satisfied. it needs to be a ghraib of 51% corn and be aged in new charred american white oak barrels. and of course be made in the usa. some industry insiders call this the best time to be the bourbon business since prohibition. thanks to booming demand both domestically and abroad production is ramping up and that is giving a boost to the local economy. according to the kentucky distiller association, the

number of distiller in the state tripled over the last two years and 7,00 new jobs were created. >> we're drawing well over 100,000 visito a year here to claremont to come visit our distillery and take a tour and see where jim bean is being made. >> it may continue to have legs as some point to growing popularity among millenials where bourbon sales growth as beer sales have stalled. >> 95% of the bourbon is made here in kentucky i think all of the good is made here and i don't know where the other 5% is made but i wouldn't drink it. >> and there are currently one million aging in the state of kentucky than there are people in the state. dominic chu, in the state of kentucky. the need to get busy on the barrels. to read more about the impact it is having on the state of kentucky head to our website,

nbr.com. he go a good assignment. >> i hope he brings some back. >> we'll that does it for "nightly busine i'm sue herera. time of year your public television stati seeks your support. >> i'm tyler mathisen. have a great evening, everybody. and we hope to find you right back here tomorrow night.

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♪ >> must have soup. >> the pancake is to die for! [ laughter ] >> it was a gut bomb, but i likedt. in private moments about the food i had. >> i didn't like it. >> you didn't like it? oh, okay. >> dining here makes me feel rich. >> and what about dessert? pecan pie? sweet-potato pie?