good to see you. .etty: thank you so much that was goldman sachs chief economist jan hatzius and alexx steel reporting all day. an interview with the global head of m&a at 12:15 p.m. eastern time. are you sad you will not be doing battle of the charts? matt: i was not invited to battle of the charts. i feel like some people are intimidated by my charting prowess. betty: we will have some more coming up. ♪ matt: live from berlin and new york city, i am matt miller. this is the european close. time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. of generaln union motors rejecting allegations that its diesel engines can turn off emissions controls. the head of the opel division says german media and an environmental group reach conclusions that were plain wrong. the credibility of automakers has been under attack. volkswagen and mitsubishi admit rigging emissions tests. to analues increased annual rate of 9%, more evidence investors rushed to buy homes before a tax hike on second homes and investment properties took effect in april.

joining us is jan hatzius. from dpogoldman sachs. what went wrong? >> it's hard to know. i think, on a individual number. it was a little waerk all around. wasn't just the publishment survey. house hold survey also softer. with souse hold employment down a fair bit. the signal from the data is that things are a little weaker than we thought. i don't thing it's dramatic. i think we're still improving. just at a slower pace. this report is consistent with that. >> we had the secretary on the last hour. one of the things he said is it's harder to go from 5 to 4. it will take longer than it took to go from 605. should we expect more modest monthly numbers for the rest of the year? >> i think that's right. you're not going to expect a slowdown in employment growth. going to 4 would be a low number. wow you would be worried about the labor market overheating. the foreign rate is 4.7. there's a range around that. but 4 would be a really low number. i think few people have such an optimistic view. >> i don't think the secretary was suggesting we were heading that way. >> how do y

joe: we have a lot of respect for the work that jan hatzius and his team do.y, one way or another. i don't think the fed will move. the question for me is september and december. lisa: why are hearing a crescendo of noise coming out from fed officials, trying to warn the market? joe: there has been a level of market complacency over the last number of months. i think the fed should be sensitive to surprising the market. so there is some chance, that if you have a live meeting in june youuly of an increase, don't want to surprise the market. when markets gets a prize, everything sells off. if they raised in june, it shouldn't be a surprise. they keep saying they could do it that given the numbers, the markets would be shocked. all they talk about is data-driven and data-driven. that doesn't suggest june is likely. coming off the first quarter with a .5% gdp growth. lisa: it depends what the data is. if you look at core inflation, you start to see a real pickup. signs that inflation has not died. so for the fed, what data are they looking at? going to show a wil