janet yellen has to testify not too long from now. she will have to articulate that two members of congress. scarlet: as investors tried to extract the thinking, where is the best place to look? the fomc statement just came out. not a lot of change from the previous statement. we have the new gdp forecast. 's addition to janet yellen answers to whatever questions arrived today. where would you look for insight? tim: i will be interested to see what her comments are. there are not a lot of secrets here. they are looking at the data, taking a dovish interpretation of it. i don't think there will be a lot more news. coming inncreases september and maybe two after that. i don't think there is a lot more to be revealed. they have taken a dovish stance and it's hard to conclude otherwise looking at the data. lisa, let's let you get the last word in. lisa: i'm interested to hear what she has to say about foreign governments and economies. whether she has an eye towards greece. scarlet: thank you so much for joining us today. lisa will be sta

yellen just wrapped up her news conference.we also have breaking news, jimmy lee died unexpectedly this afternoon. we will have coverage of this in a few minutes. first we want to get reaction to janet yellen's news conference. carl, from the press release, what was your biggest take away? >> i think the most important point is the fed is linking to to rate increases. that could change, depending on market reaction, but i think it was an important single -- single task signal, that they are not backing off on that front, given the twists and turns in the economic data from beginning of this year. the sensitivity to the dollar, which janet yellen has increasingly highlighted in comments. evidenced that we had this week first quarter performance, the rebound is much more limited than what we saw last year at this time. that tells you it was not just a transitory story. wase was some weather, that transitory, but there are sustained factors like the collapse in energy prices and the blowback from the strong dollar. alix: you also

janet yellen speaks at 2:30 washington time. bring it to you live right here on bloomberg television. ♪ mark: welcome back to bloomberg market day. today's fed decision is a watershed moment. we will be trying to figure out what janet yellen and fed policymakers will be doing. will they move on interest rates? it seems the markets say they won't. it is not sure whether that is being priced in. the global markets are also taking a closer look at this as well. scarlett: every one is waiting for the statement. joining us from stanford is tim kaine, a research fellow at the hoover institution. let me start with you. is there any chance at all that we may get a rate increase today? this is the first meeting in which it's theoretically possible. 50-50.d say the odds are i say that because three months ago, janet yellen was hinting that june might be the time. it is june. i start to look at the data that janet yellen and her team are looking at and they are all green. green lights, green to go. the only blitz is the gdp number was a bi

janet yellen will wait until she sees inflation. fedex reports a first indicator of the summer american economy. this is "bloomberg surveillance ," live from our world headquarters in new york. i'm tom keene joining me, vonnie quinn and brendan greeley. greece is sort of quiet today. brendan: except for the words being thrown back and forth. this debate has always been so politic. it has become personal recently in an entertaining way but possibly destructive. tom: let's get to top headlines to catch up on greece. he was vonnie quinn. vonnie: u.s. treasury secretary jack lew had a message for the prime minister of greece -- it is time to get serious. he told alexis tsipras he needs to find a compromise to unlock bailout funds. that was after tsipras went on a tirade against greece's creditors. angela merkel says she will do whatever it takes to keep greece in the euro. now she says greece and its creditors have another chance at cutting a deal at a meeting tomorrow. angela merkel: that is why we have to focus on the finance minister

janet yellen says progress has been made.hey are confident that inflation is moving back to its 2% target. >> no decision has been made by the committee about what the right timing is of an increase. it will depend on unfolding data in the months ahead. certainly an increase this year is possible. we could certainly see data that could justify that. peter: the economic projections reveal that policymakers anticipate an increase this year. yellen stressed that the for -- focus on the first move is misplaced, what matters is that the fed plans to raise rates gradually. she also said that fed tightening would threaten finance shall stability. yelling: we cannot -- >> we cannot promise there will not be volatility, we can do our very best to communicate clearly about our policy and expectations to avoid needless misunderstanding of our policy that this could create volatility in the market. it avoid on other issues, yellen said a greek exit could have issues -- effects on the markets. even in the united states has had limited exp

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and then a press conference by a chair or janet yellen.y when rates will go up, but by how much. in march the fed said they wanted to rise 2.65%. that would mean to rate hikes this year. not only when the first one will be, which is likely september but how many after that. press to set the tone for future increases. watch for the word gradual. they do not want to shock the economy. they have been warned by the imf and the world bank that they should not hike rates this year because those institutions don't think the u.s. economy can handle it. we will look for clues today. sandra: all the barometers this fire is concerned. not where it wants to be in order to have the rate hike. that doesn't mean they are ruling out the hike is coming. september is the likelihood that that could change. talking about september. as they keep noting the more economic data that comes in, those estimates change. nicole: to manufacture a story, on economic data. the grace wild card as well. people are pushing it off. lauren: you heard trump yesterday saying lo

that is in reaction to janet yellen and her team. the fed suggesting we will see to rate hikes in 2015. the fed seems to be pulling away from it a little bit, suggesting things could be slower than expected. we are now at 2.27% on the u.s. 10-year yield. we evaluate just how quickly the fed will move on interest rates, if we look at the stock market we see that the same story gave a bit of a boost to the stock market. we saw trading around 2% higher by the end of the session. it could be slower than expected in the years ahead, seems to be the message coming through from the fed. with that in mind, just to let you know, we will be speaking to randall crozier from the chicago fed, it will be on the "on the move" program. a really influential voice you will want to hear from around this news. meanwhile, let's update you on greece. here is the athens stock exchange, you see the decline in the athens market. in the most recent. , we are down 17% on this market cents thursday. european stocks continue to focus on the tragedy, down 1% in t

torsten: thank you for taking a tour with us of janet yellen s possible fed. -- janet yellen's fed. ♪ everybody. this is >>." -- this is "market makers." janet yellen's signs. we will hear from jack welch. the former ge out vonnie: ceo joins us later. matt: time for the top stories. olivia: police have released pictures of a white man there's a shot and killed nine people at a historically black church last night. he's described as being between 21 and 25 years old. the police chief kills the killings a hate crime has asked for the public's help in washington. >> we are bringing in resources from washington to help us. we set up a hotline. we have agents and police officers manning that phone.

i think that yellen listens.o not think she has acknowledged that, but i think she listens, and good for i am all foruse lagarde in terms of her lower gdp estimates. bill gross's former colleague mohamed el-erian was surprised by the move. he explained to pimm fox. : it is unusualn for the imf to be so specific about a policy action and it was today. it told the fed they should wait until 2016 even though the data remains very fluid. that is the first way i was surprised. the second that people have not focused on yet -- which i think is important because it speaks to market volatility -- said of officials are going out of their way to tell the market to stop obsessing about the date of the first rate hike because this is going to be what i call the history.ightening in now suddenly with the imf comment, the question of the date is back front and center and that in itself imparts additional volatility to financial markets. what do you believe the effect would have been if christine lagarde had not come out with t

peter cook has the key take away from janet yellen's address.est today policy meeting in washington, the federal reserve moved a big step closer to the interest rate increase since 2006. the timing remains in play. fed chair janet yellen says further has been made, improvement on the labor market and more confidence in inflation is moving back to the 2% target. but not enough progress to pull the trigger on a rate increase right now. byno decision has been made the committee about what the right timing is of an increase. it will depend on unfolding data in the months ahead. certainly, an increase this year is possible. we could certainly see data that would justify that. latest projections reveal 15 out of 17 policy makers anticipate increases. the funds for christ implies to rate increases by the end of 2015. yellen strip -- stresses a focus is not good, he wants to raise them gradually. promise there will not be volatility when we make a decision to raise rates. what we can do is to do our very best to communicate clearly about our policy, and

then you have her message to yellen. traders sitting in london and i have got to stay late i just spoke to one of my friends who has to stay late. he has to watch two screens. anna: i am sure we will provide some functionality. we have had lots of fascinating conversations about tsipras and the latest on greece for all kinds of asset classes. really fascinating comments about the euro and whether the crisis really means a weaker euro. if it means people take less risky bets, perhaps it means a stronger euro. jonathan: the action you see hasn't been in the spot price but in the volatility space. as we move forward, what stuck out for me was the same thing that stuck out for you. analysts are 100% bullish. the likes of citigroup 17%. what they all have in common is they all think the stoxx 600 is going to rise from here. not a single analyst picks it will fall. >> it's amazing. the athens stock market stands out as an outlier. they are trading weaker compared to others. we just spoke to schroders. rory bateman was saying t

paul volcker mimics what janet yellen said.iz: talking specifically in the sound bite whether we should see a rate tightening. >> is he? he should be talking about -- he addressed the bailouts, what he said was this, at the spur of the moment, he believes they did everything accurate. in the best interest of the american people and the taxpayer. that's a different argument, and that's essentially what janet yellen says, then it's illegal. and what the regulators have to realize is the courting are saying their immense powers that they flex during these times. liz: it's eclipseed. >> that doesn't mean they don't do it again, it's different to say we took the protections because we're worried about the taxpayer and the way we handled it comported with the u.s. constitutional and the u.s. law. the judge said it did not. liz: michael cox, here's why paul volcker's voice matters, when we had stagflation, he fixed it by tightening interest rates. let's listen to what paul volcker told neil cavuto. he is a giant. let's listen and then

yellen isthink janet going to consider what christine lagarde said at all. i do not think it will have any impact on policy. but i did not find it to be that ridiculous. alix: we did see reaction in the bond market. -- we had the 10 -- year yield at its highest level since october. the yield continuing to grind lower. joe: we had this crazy three-day move and then it faded. imf -r point about the -when i first saw the news, i was really stunned, but i switched over to the other side. the argument from a pure data perspective. it would be risky for the fed to tighten too soon and if they will be data dependent, wait a few more months. they are kind of right. the fed has missed its inflation target for a long time. no indication that inflation is about to overshoot. i kind of think they are right. what is the rush? why hike in september? alix: we have some breaking news. gap same-store sales. julie: sales up about 5%. the company's earnings per share ahead of analysts estimates. the ceo saying the second quarter was important, they rolled out some new products

ten year once we get yellen's statements. gives investors more clarity as to when the rate hike is coming. >> particularly if we look at it today, 2.33%. over the last week or so we probably had more reason to continue to expect hawkishness today and yet that's come away from 2.49% and that's around greece and safe haven trades but it's been such an extraordinary period with so many other factors moving u.s. bonds led by europe and maybe today the focus can come back to the u.s. the fed leading it's on bond market. >> as it should be. >> we also want to bring you news on uber. just learning that an indian court left a ban on uber in place in new delhi. indian transport officials must respond to the challenge to the ban. the next hearing in uber will be held in july of 2015. this after an uber driver raped a passenger in month of december. that's the latest on uber and the progress in india. coming up later today we'll be speaking more about india and the opportunity in the indian market with arun jaitley. he'll be joining kel

yellen signals a rate rise will come this year.shington for analysis next on "the pulse." ♪ guy: good morning. welcome back. you are watching "the pulse" here in london. now the federal reserve has signaled that a pickup in the u.s. economy is keeping it on track to raise interest rates later this year, but janet yellen said subsequent increases may be more gradual than anticipated. peter cook has details. peter: after its latest meeting in washington, the federal reserve moved a step closer to its first interest rate increase since 2006, but the timing remains in play. janet yellen says progress has and made in meeting the fed's test for raising rates. further improvements in the labor market and more confident inflation is moving back to its target. but not enough progress. janet yellen: no decision has been made by the committee about what the right timing is of an increase. it will depend on unfolding data in the months ahead, but certainly an increase this year is possible with -- we can certainly see data that would justify t

minutes until janet yellen's conference. erik: been lost key one billions of dollars from the world's biggest firms. hampton home sales are on the rise. some of theabout most expensive properties in one of the most expensive places in the world. good morning. erik: it is time to have a look at what is going on in financial markets. that is where we begin this hour. at 2 p.m. we hear from the fed. at 2:30 p.m. we hear from janet yellen. investors are positioning themselves ahead of this announcement. the gaming, if you will, goes on always in the hours before the fed announces. we not expect a policy change, but we ge do expect to get the feds read on the economy. tovia: the expecting the fed downgrade its forecast for u.s. growth. and for the dots to move on the chart. we start in greece. prime minister says you can blame him if there is no deal to unlock bailout funds. the government will say the big no if the demands are unacceptable. negotiations are close to breaking down once again. officials have build tomorrow's meeti

i think the fed and janet yellen will be sympathetic to that.appy with an overshoot. tom: the first two pages of the rogoff paper, he mentions stanley fischer, who i believe is standing next to janet yellen. brendan: stanley fischer is also earning -- is also urging the fed. i'm curious about something that mohamed el-erian wrote this morning. the fed has been working to try and tell everybody we are going to raise rates, maybe a little bit, but do not worry about it do not freak out and all of a sudden we have christine lagarde saying, no, the rate rise is important. i'm asking you to hold off. these are different communications strategies. richard: they are completely different. they want the prospect that in a couple of years inflation will be rising, continued progress in the labor market. by that standard, they will not wait until 2016. tom: drew, i have to come to you. i thought of your ex colleague, george magnus, sitting and london at ubs. do you anticipate that christine lagarde will be lecturing kearny, draghi? is this a more assertive

and fed chair yellen's news conference.l investors get new clues about future rate hikes, an all-star line jup. pimco's ceo scott mather. and bill gross of janus. just to name a few, a lot more you can't afford to miss, join us two hours on "power lunch." all here for fed day. >> we'll be there, thanks so much. >>> shares of david's tea and starbucks on the move. dom chu at the market flash desk with that. >> shares of david's tea, very much in hot water, please forgive the pun. the stock down about 20%, the canadian specialty tea retailer reported a loss in its first quarterly report as a public company. high-profile ipo this month. the company blames costs related to the poir aipo and a stronger dollar. we will say it's tough, no analyst coverage, no comparable estimates, they do say though, current quarter they're going to post a loss, that's why the shares are down. starbucks in the news, closing its 23 existing la boulange pastry shops, starbucks will continue to sell the la boulange products in its stores, but says th

the janet yellen have to listen? >> i don't think she has to listen.n opinion and well-founded, but they have been in many ways announcing that the rate hike will come before the end of 2015. -- the our documents arguments coming and that it is going to be late in 2015. >> janet yellen has stressed that she will move cautiously, so she will stress that subsequent rate hikes will depend on how the data unfolds. if things don't go as well as planned, subsequent rate hikes would be delayed. erik: for we have seen transpire over the last six weeks in europe x me wonder what is the chance the fed loses control over market interest rates? if the market is right conclusions about the data that leave traders and investors to believe there is inflationary pressure building in the system so we begin to see rates back up on the long end or short and as well, what does that mean? >> presumably, we start to see this inflationary pressure in the u.s. because the u.s. economy is doing well and getting healthy. in that respect, the rate hike will be justified. i agree

even janet yellen cited this today.r relief in the quarter. >> maybe not long-term. >> right. >> if we're talking about raising rates. >> let me jump in quick. i'm going to respectfully -- when anyone says this time is different, i'm running for the hill. i'm going to disagree that technology is different. but to bring it full circle about the fed, if we see the dollar significantly strengthen on the back of greece headlines, what have you. that may circle back to the fed if the market starts gapping away. it's a bit of a boilerplate statements what they've made. but if we see significant degrees. see the dollar really start to rock this summer the fed is going to pay attention. >> and bk a word to you before we let you go sir, is just to buy a bit coin kind of signal? >> bitcoin did move higher. >> yeah it's up 10%. look at what happened when cypress had capital control, bitcoin up about 10% in the last couple of days. yeah absolutely. you know i'm a big fan. >> next currency of greece right? >> well. >> where they thi

janet yellen cited that strength of the dollar. do you think she is trying to talk down the strength of the currency? is that why we saw her not as upbeat as some expected? josh: i don't think she was overly focused on the dollar. she said the dollar is one of many factors we look at. she stuck to her script, focusing on the fact that passed rate moves is more important than the initial data liftoff. she did not vary too much from that. i think she got what she wanted. there are number of economists changing their views or considering changing their views. that's what the fed wants because they are data dependent. different people are looking at the same data and will come to different conclusions. the fed has to be concerned about one-sided markets. that's what led to the temper tantrum. -- paper tantrum -- taper tantrum. the data will lead to a healthy two-sided market and you are less likely to have extreme reaction. matt: thank you very much for joining us. olivia: up next, we will remember jimmy lee with jack welch, who was a

yellen faces the media wednesday.f four in a press conference is when we can go in our q&a. she loves talking to journalists. sandra: shape enough to be a busy week. look at global markets. we are seeing fell off across the board asian markets and weakness there, particularly the hang seng down a full%. european stock markets reacting to everything nicole talked about. the ftse, cac, dax fell down. stock index futures seeing weakness here as they prepare to open up for trading for the week. for more florida governor jeb bush entering the presidential race. he will make the announcement made today in miami. in an interview with cnn, governor bush saying he will differentiate himself from his brother. >> jeb is different from george and jeb is three years. my life story is different. i don't have to disassociate myself from a family. i love them. or for me to be successful all have to show my heart and tell my story. sandra: meanwhile presidential candidate hillary clinton held a big rally on roosevelt island in new yor

the s&p clawing its way higher after the fed announcement, after fed chair janet yellen was speaking. i should point out at one point the dow jones industrial average rose as much as 93 points off that high, but still finishing about 30 points higher for the day. we have oracle earnings crossing right now. julie hyman has those numbers. julie: it looks like the earnings-per-share coming in well below analysts estimate. $.87 is what analysts had been anticipating. at $10.7revenue billion is a decline year-over-year. that was expected. the decline looks to be larger than analysts were anticipating. they were looking for $10.9 billion. it looks like $10.7 billion. the key thing for oracle is going to be how many customers are migrating to the cloud or platform as a service, services for the company. it says the total cloud revenues rose 28%, but that increase would have been up 34% in currency. it would have been up 3% in constant currency. over half the company's revenue comes from outside the united states. analysts and estimates were looking for a decrease based on currencies. $460 mi

we hear from janet yellen.

. >> janet yellen is saying the u.s. economy is strong enough to pull the trigger on a rate hike in 2015 but investors are are still split. >> chinese stocks sell off into the close after a wave of ipos raises concerns over liquidity. >> a new beginning. hong kong lawmakers vote down the proposal as protestors vow not to give up on democracy. >> so we are getting breaking news. the central bank cut key rates to 1% from 1.25% so a 25 basis point cut. we also saw the flashes out of the central bank. this comes in line with expectations to deliver 25 basis point cuts to 1%. >> they say they're looking at house prices and they have risen at a lower space than expected. lower wage growth and fading effects also of a weak norwegian corner having an impact as well. now wage growth is said to be lower than what was projected in march. 2016 unemployment at 4.25% versus a march forecast of 4%. that's quite a big hike in unemployment. wage unemployment. >> indeed so 1% the new level there. also forecasting the 2016 level at 0.75%.

yellen says no promises. ms. uncertainty about long-term rates doesn't appear to be unusually high. we can only do what is in our power to attempt to minimize needless volatility that could have her percussions for other countries or five front -- for financial stability more generally. and that is to attempt to communicate as clearly as we can about our policy decisions, what they will depend on and what we are looking at. : the fitted -- the fed still cautious at this point. some say that a economy's across the globe have not picked up enough steam. anchor: what does this say about the u.s. economy? they talked about jobs growth. there has been a rebound. inflation still below target, about 2%. she also talked about consent -- concerns about a strong dollar. it has appreciated significantly in the last couple of months. the worry that this rate hike could ping the dollar up even more which could be a concern for many members and could drag the economy for quite some time. but she said it is also data dependent.

janet yellen will wait until she sees inflation. indicator of the summer american economy. this is "bloomberg surveillance ," live from our world headquarters in new york. i'm tom keene joining me, vonnie quinn and brendan greeley. greece is sort of quiet today. brendan: except for the words being thrown back and forth. this debate has always been so politic. it has become personal recently in an entertaining way but possibly destructive. tom: let's get to top headlines to catch up on greece. he was vonnie quinn. vonnie: u.s. treasury secretary jack lew had a message for the prime minister of greece -- it is time to get serious. he told alexis tsipras he needs to find a compromise to unlock bailout funds. that was after tsipras went on a

bernanke or yellen?it's hard for me to say who is right on stock valuations, because these guys here know more about whether or not stocks are highly valued. i look back at what's happened in this recession versus other recessions, have is the metric that bernanke used. >> he says he's got the math to back it up. >> i made the zero month, the last month of each recession. and the green line is our current expansion. and the red line is the one he compared us to and the blue line is the '91 expansion, you can see we've had more points in the current expansion than either of the two expansions. >> what you're telling me -- >> your math tells a different story. >> it's another way of looking at it, whether or not it's over-valuation, especially as yellen suggested relative to the underlying risk-free bond rate return, that's another question. it has been a very stellar expansion for the stock market. >> so doc, who's right? bernanke or yellen? are u.s. stocks too pricey or not? >> well, both are right of co

janet yellen has not seen a true market tantrum. it is usually the market that teaches these central bankers to be more cautious. what is going to happen is if a time comes for them to raise rates. we will see aet selloff and they will scramble to backpedal. and say, try to ignore we do not care what the financial markets do. when they see the markets spill over effects into the real economy they will have to backpedal. it will be a dialogue between the markets and the central bank. matt: let's listen to what chair yellen had to say about the crisis in greece. >> the united states has limited direct exposure to greece either through trade or financial channels. to the extent that there are economyon the euro area or global financial markets, there would undoubtedly be spillovers to the united states that would affect our outlook. we willwonder how much see spill over to the u.s. but how much of an effect on the eu. it seems everyone is confident they have ring fenced this issue. i think we are in a better position than three or four

janet yellen provided feint clues. didn't say when or by how much. but the central bank did upgrade its view of the economy. everything from housing to consumer spending. stocks rose e at the news conference this afternoon. the dow jones average rose 31 points. the nasdaq 9 points higher and the s&p 500 rose 4 points. yeeltds or interest rates meantime turned lower with the 10-year noth at 2.3%. more on what ms. yellen said about the first potential rate hike in nearly a decade. >> federal reserve monetary po makers see an economy that has recovered since the beginning of the year but wants to see stronger gains in the job markets and higher inflation before raising interest rates for the first time in nine years. the com continues to judge that the first increase in the federal funds rate will be appropriate when it has seen further improvement in the labor market is is reasonably confident that inflation will move back to its 2% objective term. at our meeting that ended today, the committe concluded that these conditions have not yet been achieved.

janet yellen approved the meeting today.etting the central bank will keep the key rate near zero here the speculation is that the federal reserve will raise rates in september. jenny yellen will hold a news conference today at 2:30 p.m. and we will have a live coverage. greece's prime minister says you is noblame him if there additional bailout money. he says his government will say that they can know if his creditor -- creditors demands are unacceptable. tootiations are close breaking down. the former goldman sachs chief benomist thinks a deal can reached. he talked about it on charlie rose. >> there is a lot going on. along thatmed all there will be some kind of deal. obviously right now, that seems to the outrageous to say. paymentsece could miss on its debt if there is no deal by the end of the month. you can watch all of the interview tonight on charlie rose right here on bloomberg tv. microsoft is shuffling its management team and several big names are leaving the company. president is vice one of them, the former chie

janet yellen does not speak until tomorrow at this time as a matter of fact. we'll break down what's behind this news. >> today looks like the mirror image of what we saw in markets yesterday. we are also watching matchmaking in the managed care space. takeover talks causing volatility in shares of big health insurers. could one be left without a suitor? >> it's like musical chairs. four chairs, five players, one will be left out unless you get a three-way deal. i don't know. >> can't rule anything out in these markets. >> goldman sachs looking to enter the consumer loan business. is this the beginning of a strategic shift for that long-time financial giant? we've got a top wall street analyst to give us his take. >> look out ups and fedex. amazon is working on a new way to deliver packages. i love what is unique about this. >> they are becoming nuanced in the packaging part of the delivery system for online shopping. it's fascinating to watch that. i've said fascinating twice in this program and it's only a minute and a half old. we have peter anderson chief

what is the market saying about janet yellen?ation in there are some that would suggest that central bankers are deliberately stoking the bond market to raise the rates, perhaps for the insurers or pension funds and obviously there may be some comment about volatility from janet yellen specifically on the bond market today. >> well what's interesting is the future's market is really priced 50/50 for a move in september. i think that would be unusual to see the long end of the curve, the yields prompted higher at the back end because of the fed or because of any central bank. i think it's a lot simpler than that. when people look at the move in yields off the lows. those lows at the beginning of the year were pricing in a global deflation nar backdrop that has materialized. we just got the numbers out of the euro zone and inflation is low but it's bottomed and ticking higher. i think to some extent you've taken deflation fear out of the marketplace, and the bond market responded to that. you're going to find my opinion. the fed ha

janet yellen mentioned we had a rebound.he call from earlier this we're thehis year was that transitory was pretty indicated. where do you see growth moving? 2.5% inher: it -- carl: the current quarter. to hit the fed target we have to be about 3% growth in the next two quarters, q3 and q4. i'm not sure we can get all the way to 3%. it's a tall order. alix: i will have to leave it there. we will be right back. ♪ alix: welcome back. i'm alix steel. we want to get back to some big news today for wall street. jpmorgan vice chairman jimmy lee has unexpectedly died. morning at 62 years old. reportedly he had some shortness of breath while exercising and died later at the hospital. toning us now over the phone discuss is roger altman, evercore partners chairman and founder. user, thank you for joining on this very sad day. tell me about your relationship with jimmy. roger: i had the privilege of knowing jimmy for a long time. when we founded this for me 1995, the first deal we ever ,orked on was for westinghouse which involved the

it just complicate the work or janet yellen.he will not be kowtowed to imf breaking -- recommendations. the committee will do what they see best in the interest of the economy. i still think rate hikes in the second half of the year remain a possibility. janet yellen is a very collegial bed chairperson and i think she will handle this the way she handles all sorts of things with the committee. advice, ixcellent will take it into consideration, and then do her own thing. christine lagarde said the fomc should remain data independent. is greater signs of wage or price inflation currently evident. we just heard from janet yellen a few weeks ago, and she is data dependent. they both look at the same data and say they are fated dependent on the so why does one come to one can vision and the other the other? >> they should have said they are imf dependent. be data dependent, but do what i say. a very absurd situation. followellen is going to the data. zeroed funds rate is at effectively. this is a crisis era we. in an economy very clo

tom: are you suggesting that the yellen dollar is not about what the u.s.out other currencies do? >> is about global rebalancing. this is what ben bernanke was talking about years ago when pondering the conundrum. it is easy to forget about that when you focus on the negotiation's with greece. the factor is the rebalancing within the u.s. economy and the chinese economy and then a rebalancing among the three major players. tom: i will feature this out with joe weisenthal and our market coverage later today. let us get to our top headlines with vonnie quinn. vonnie: that is the message about the debt crisis. a u.s. spokesman says that greece may develop a plan -- must develop a plan to unlock bailout funds now. the eu says the plan must satisfy three international organizations. the commission, the european central bank, and the imf. the greek government says that it could finish, but they continue on a political level and greece is negotiating just on lower primary services is and nothing to do with wages pensions, or restructuring the public debt. hackers

we should be improving right now according to janet yellen. there is anecdotal evidence that we're seeing that, but in beginning of the years, for last few years, we've seen a lot of head fakes, if you will, your thoughts on janet yellen, the rates and market. >> i think that janet yellen is brilliant but unfortunately i think she is on the strong track, i think we need to normalize rates. the global economy cannot handle a dramatic change but -- charles: to gain credibility? >> i think the fed has lost all credibility. charles: showing you she is in tune can dangers they are creating. >> on track to normalize rates, i don't think there should be a time frame, they have to look at numbers, see how the economy is growing, they have t to be cog - >> a common wall street expression don't fight the fed, it works don't fight the fed, i think she is signaling, focus less on timing, they will know adopaccommodating. they are going to make a move this year raise a little bit, not normalize rates. rates will be stock friendly. charles: she said a lot o

markets and janet yellen's decision-making process. bloomberg intelligence and chief economist carl riccadonna is here with us. let's go through it. let's start with janet yellen. what does the great crisis due to any decision? carl: the u.s. is fairly insulated and this is assuming there was some kind of compromise. something that leads to destabilization, obviously, the risk of trans atlantic contagion is higher and could the fed to pause but as olivia highlighted coming u.s. economy is doing pretty decent. labor market looks good and consumers are spending. to ask,was just going if the u.s. in the form of janet yellen and the fed raise rates, what does that do to the dollar and everybody in europe? do they say, oh, no, that leaves rates going higher? carl: i don't think they will lead to that in europe, but this is something janet yellen is focused on. watchingpart i will be is the dollar and euro exchange rate. pimm: is the euro as strong against the dollar? carl: there's confidence it will be resolved. pimm: it is really the deuts

we also hear from janet yellen tomorrow.or more, i want to bring in kelly boss and carl riccadonna. carl, i think we have to start with you. housing numbers. u.s. permits at an eight year high. the chart goes like this. >> it is part of the mix of economic cycle we are in where all the fires -- all germans are firing out of sequence. is only nowengine in gauging six years into the recovery. up sharply.are we have to look a little through the smoke to get the true underlying story. stocks were due to pull back given the whopping increase we saw in prior months. i am inclined to dismiss the drop in that series. but building permits were distorted by expiring tax credits in new york, which led to a flurry of building permits issued last month. we have to temper the gain and the building -- in the building permit series. if we look at the year and chain of a moving average and it goes up 6%. permits up about 10%. housing looking good, not as good as hermits headlining would suggest. erik: you are way too micro for me. ishousing

janet yellen wants to raise -- >> okay -- zero. >> i think markets care do markets care?cause i think the markets right now are -- markets are addicted to zero interest rates right now, there is -- >> might -- >> you have -- >> help me out. >> everybody. >> -- are doing business in connecticut got expensive corporate heavyweights ge aetna thinking about pulling out of connecticut davgen is on it back in a minute. . maria: welcome back here is a look at connecting the dots taxes and jobs, ge ceo imel.t. telling employees he put in has put together a team to evaluate a headquarters move to a state that is quote more pro business environment, dagen mcdowell on this for us dagen this is a big story. dagen: big story e-mails out yesterday 5700 employees in the state of connecticut alone, why? taxes, because they keep going up, jeff ipli. ml.t. said corporate taksdz on ge raised five times since 2011 in the latest budget tax there are tax increases, there are additional taxes, and it is -- can we say connecticut turning into antibusiness state some democrats in the state saying

chair yellen: i was asked -- what exactly is the problem? i -- we place high priority on being an accountable and transparent central-bank, and i think that if you compare the transparency of monetary policy decisions in the federal reserve with other central banks we are one of the most transparent central-bank than terms of the information that we provide to the public in a whole variety of ways. to my mind, the fed is accountable, and we work well as an institution. i am not sure what the problem is that needs to be addressed. host: and that was federal reserve chair janet yellen speaking about the central-bank's response to lawmakers' efforts to increase oversight at the federal reserve. we're talking with howard schneider of reuters. what are they trying to do? guest: let's go from the sort of general to the specific here. some lawmakers have had a drive for lack of a better word to audit the fed. the notion is that we do not know how these guys and gals are making their decisions. we want them to be more formulaic and basically publish

janet yellen has to be watching this tick by tic. she has the advantage of stanley fischer, doesn't she? gina: she has the advantage of stable markets this time as well. we are just having this conversation about greece, which strikes me. in former episodes of greek potential contagion, we would have seen the benefit. we have not seen that this time around. markets have been extremely stable, so we have to go through a hotel of disabling market performance -- through a disabling market performance. tom: our twitter question. i was going to put it on the new york mets p pitcher. but who is to blame for the greek crisis? stay with us. "bloomberg surveillance." ♪ tom: good morning, everyone. greece in crisis. the markets are fairly stable but political economics are genuine. let's get to top headlines with vonnie quinn. vonnie: the financial system has another crisis to deal with. this one in her to rico. -- in puerto rico. puerto rico hopes to defer a debt payment while negotiating with creditors. hedge fund buyers have been accumulati

janet yellen is far too busy to have heard them at this point.he might get a chuckle when she reads the news. my role is not to establish what the federal reserve should do but what they are most likely to do. i think the one thing we centered on is that regardless of whether the first hike date the path istember, going to be extremely gradual. i'm talking an average of five to 10 basis point. as a dovish statement that i think should be supported of the things that christine lagarde was talking about. matt: i was thinking about this when christine lagarde was speaking. rights right -- if guy is , even if their whole quarter-point, what kind of effect would that have on global economy. ? carl: the risk is some sort of outside market reaction. we have seen these kinds of episodes of the past. if the fed can sell the market on the notion we are not going to go fast, one and done and a slow pace going forward, i think they are being successful. matt: sold. carl: they have to have it cemented in. if they do that, there are minor implications. the eco

nicole, you are looking at how janet yellen views this turmoil. nicole: i'll tell you what everybody is betting on. sandra: lauren, not just increased their investing on today. tremper report on the market, consumer confidence in what comes out on thursday. trenches something tells me to set the listen to all that is though. the country's bailout program and today the countdown continues and it's unlikely greece will make a loan payment to the imf that is due at 6:00 a.m. eastern time today. ashley webster joins us with the latest developments including a last-ditch plan from the european commission. good morning to you, ashley. >> good morning, sandra appeared as you point out ,-com,-com ma the payment in june to the international monetary fund, $1.8 billion pretty unlikely

just last month janet yellen said she still expects to raise rates this year.embers have raised -- open the door to a rate hike. going to be really interesting how the imf advice plays at the fed. the central bank does not take too kindly to outside pressure. we will see if this has a difference. pimm: thank you, peter cook, our chief washington correspondent. i sawi was shocked when the headline roll across. a massive surprise. pimm: more on what treasuries are doing, rising for the first time in four days investors may be reevaluating whether. it has gone too far. -- thepoint the yields yield on the 10 year german almost half a percentage point to the highest level since october. pimco's chief investment officer for global fixed income explained what is driving the market earlier on "market makers." >> you have the ecb and qe, which tends to push yields down, and then you have fundamentals and value. value the fundamentals have been reasserting themselves. yesterday ecb president, mario draghi, warned that market should be prepared for higher volatility. figu

all of this after we heard from fed chair janet yellen.ax brier, and we are seeing the big picture coming in. you and i were just talking during the break that we have not seen on the option side of things any big shift. max: that's true, the statement was very much in line with expectations. the market hasn't changed that much other than there is a little bit more certainty because the fed wants to raise rates very gradually. some have fallen because the market -- because the insurgency has been removed from the market. julie: one of the groups that have been very foldable or sensitive to the increase in rates and sometimes benefiting from it has been financial. you were talking to be about the trade that you noticed which is xlf. i thinkt's right, and that the dots coming in and the more gradual pace of rate increases means that the financials may not benefit as much as before from the rising it yield curve. julie: now all everybody is talking about the fed, you are still looking at greece, of course. it has not gone away. optimist on gr

fed chair janet yellen -- will she heed the warning?ba is hoping to capitalize on the surging chinese stock market. it is planning to share new sales in its movie company, alibaba pictures. save lives, drugs but they can also cause big bucks. we will get the numbers on this critical issue. bit going businesses in new york are getting a new set of rules to play by. yesterday the state's top financial regulator unveiled the bit license. these are regulations designed to protect consumers and improve cyber security practices for the digital currency. new york is the first state to lay down a framework, but will these moves legitimized the crypto currency or hamper a nascent technology? erik schatzker joins me now with the man behind the measures, ky.jamin laws tok: it is clear you tried strike a balance with the bit license, so why does it seem like nobody is happy? >> being a financial regulator is not a popularity contest, but likenk it is a little bit the three bears. you want to get the porridge, the regulatory porridge just right -- n