tv Bloomberg Markets Bloomberg May 29, 2015 12:00pm-1:01pm EDT
ifachief election -- f election. out: and time is running for greece to make its latest payment. scarlet: facing a shareholder lawsuit. we will go over that story in a moment. pimm: good afternoon. betty: let's begin with a look at how markets are trading in the midday. equities are lower. today we had a mixed bag of economic numbers.
chicago pmi coming in low were en estimated -- lower than estimated. the dow list down by half a percent rat. in the oil market, a seeing quite a remount -- we are seeing quite a rebound. trading well above the $60 barrel level. check on the bond market. a little bit of buying. the yield on the 30 year down to 2.8%. the dollar shows more strength .0990.t the euro, 1090
the pound sterling giving up some of its gains from earlier in the week. let's go to the top stories crossing the terminal. the voting is underway insert as congress decides whether the president will be elected to a fifth term. we will bring the results to you when we get them. also a few days ago, he was in overwhelming favorite, but that was before nine officials were charged in the corruption scandal. andunited states, canada, much of europe will vote for one of his rivals. he pleaded for unity before the voting began. >> it may not always be easy, but it is for this reason that we are gathered here today to problems that have been created and the need to resolve them. pimm: he would need two thirds of votes to win on the first
ballot in his strongest support comes from africa and asia. department istes reliving cuba from its terror watch list. it was designated a state sponsor of terrorism in 1982. countries such as syria, iraq, and sudan remain on the list. cuban officials are preparing to reopen embassies in havana and once they have resolved several points of contention. federal government now says the u.s. economy actually shrank in the first three months of the year. the gdp fell at an annual rate of 7/10 of a percent. the initial estimate said that it had grown slightly. bad winter weather, and a strong u.s. dollar have hurt exports. and that means americans
are feeling less as domestic about the economy -- optimistic about the economy. it was the biggest drop since the end of 2012. 60% said the economy was proving, and that is down from 68% at the beginning of the year. blackstone and city view our property company started by the clinton administration housing official, who bought the land in january. they hope to start construction by the end of the year. they call for as many as 435 new rental apartments. terror are rising today. the new york post reporting that intel posted a deal to buy the chipmaker. last month bloomberg reported that they had rejected an altar
offer from intel. that's the biggest technology deal of all time. aboutplenty of questions dennis hastert being charged in a hush money scheme. he agreed to pay the 13 $.5 million to cover up past misconduct. they say he broke banking rules to do it. it does not say who the other party was, or the alleged misconduct. it has been driven more than one million miles and gone through three engines. it transported celebrities such as jackie onassis and muhammadan ali, and countless new yorkers. last checkered cap in new york city is up for auction. it was officially decommissioned in 1999, later sold for $134,000 but the auction company does not expect that kind of price this time around.
they expect between 10 thousand dollars and $15,000. betty: much more ahead in the next half hour. samsung,apple, and the aomi is coming to the u.s.. pimm: we will also look at sliding afor well-paying job right after graduation. that: top leaders say talks are moving ahead, but at a gradual pace. pimm: back to the breaking news of the day. fifa went ahead with its andtion despite arrests
reports of corruption that stop short of the president. reporter on the ground. give us a sense of the play right now. mark: we don't need revolution, neede always evolution at imd held accountable for the current storms, i just want to continue with you. if you want me, i thank euphoric. the words of the current president before the election started. this was the biggest weekends he fifa history. -- tell us how it
could all play out. how much supporting he was going if he, and what happens does not win the two thirds majority. that would be a shot in itself, if he did not win the two thirds majority. it went to a second round, that would be a shock. it is so unlikely here. let's be simple. it all comes down to the math. one nation, one vote. every nation has a legal vote. likes of thee caerleon islands, with a population of almost 5000 has an equal weighting to the likes of result with a population of 200 million, or germany. that means he does not have to worry about the big issues committee can focus on the small countries. they get grants from fifa to
offices, ands, those grants win votes. it is that simple, and it is always benefiting the incumbent. but the question that you asked is very valid. will his support stand firm? traditionally asia, south america, africa, the caribbean, they all vote for him. some of those nations, specifically the caribbean, seem to be wavering. it would still be a huge sock if there was a second vote, but there have been some big sharks here in the recent days, and everything is possible. any of the people that you interview keep a straight face if he is a was to be the president of the organization and they have nine people indicted for this? either he knew about it and is responsible, or did not know, but is still responsible. how do they keep a straight face? mark: accountability.
that is what the ruling soccer body has been saying here. they were going to boycott the vote. i think the most interesting thing i have done in the last two days, is talk to a former advisor. he was an executive for the best part of 20 years. i pointed to him, a man who knows the president, is he rupt? he said no he is not. i asked him if the institution was corrupt, and he said at the institution is not, but many of the people inside it are. the u.s. investigation is talking about soccer officials in the united states. he thinks that corruption could spread much further.
other talking about the five confederations here. is goinghere the story to run after the closure of this election. this is just begun by the way. the election, if he does win, is just the beginning. betty: much more to come. thank you. h fifa we know that further arrests on the way. what we could learn, and the connections between international soccer in media. in thegoing to bring clinical associate professor of sports management o. i will throw this out to you, which was a great point that have made, that is what happens if he is reelected to serve
another term? fifadoes that say about and what has happened this week with these indictments? to the factt speaks that it is business as usual for a very narrowly focused organization. eight organization whose job is to grow the game of soccer around the world. those of the smaller countries would argue that he is done the great successfully. perspective,er there are a lot of issues that may not get addressed, but from the smaller perspective, particularly third world countries who need these revenues, it has been a success under him. pimm: can you tell us a little bit about what is traffics boards command who is aaron davidson? davidson is the president of traffic usa which is an organization that got itself started as a bus signage company back in 1980 in brazil.
they recognize the early leads that televising soccer might be to growing sector. traffic usa has become really the largest broker of multimedia rights or north american and south american soccer. we have a lot of a base of traffic in the united states. hence the interest from the eastern court of the united states. staying with us for a moment. we will stay on this story. we're going to take a short commercial break. ♪
pimm: welcome back to the bloomberg market day. thes take a look at some of top stories crossing the term of right now. pimco looking for a new chief --cutive in 2013, they could they turned to goldman sachs. the former home of the late pop music star is up for sale. it could be yours for $100 million. the estate once known as neverland ranch is located at 130 miles northwest of los
angeles. jackson bought the property in 1988 and turned it into a combination using dark ends of -- amusement park and zoo. stopped visiting neverland after it was urged like police after allegations of child molestation. he died at the age of 50. that is a look at the top stories of this hour. betty: $100 million. we have been talking about the rising price of real estate. bring karen from drexler university. the reporter before you made a great point about how this is not just about fever, but -- g i other sports, other sports leagues. when you have this much concentrated power in the hands of the few, does that then
encourage malpractice like this? beginning of a corruption probe into other sports and other leauges? >> we know there has been corruption for a long time. it is a high-stakes game, it is all about a country self-esteem about how they perform on the highest stage. we are interested in that, and that is something that politicians play close attention to. -- pay close attention to. history anden any pattern of corruption in a variety of sports? absolutely. people are always looking for an -- an advantage. this is longer and larger than that. some other organizations that have been associated with these
marketing companies. itm: can you describe what must be like to be an advertiser or sponsor of world cup sponsor. what does that mean? some whonow there are are projecting as much as a $1 billion loss in brand equity and brand value across the platform is in fact these sponsors stay with fufifa. we know that they lost two major sponsors last summer, and those companies made a decision that they did not want to be associated with this kind of behavior. a lot of other sponsors are taking a hard look, even more deeply, then possibly some of these sponsors indicated in the ray rice scandal last year. betty: if this does not keep fans though -- does not keep fans away though.
football fever continues to grow around the world. those sponsors will come back. right? that is the age-old issue. you want to be where the fans are, but at what point you say this is our value structure, and our value structure does not match up with their value structure. sponsors make those calculations all the time when there are sponsoring an athlete, a team, or a world events like the world cup. betty: thank you. we await the results of the vote. pimm: we will bring those to you when we receive them. still ahead, why the class of , exceptgetting lucky when it comes to the graduates of harvard. ♪
betty: this is the bloomberg market day. pimm: this year's college graduates have a lot more to celebrate than an expensive piece of sheepskin. they are entering one of the best job markets in recent years. in fact, the jobless rate is below the average of the past 40 years. 5.4 percent. that is key because research show that graduates of the job market in prosperous times have better career prospects and higher salaries than those graduates who enter a tighter or worse job market. was reallyhis interesting. this comes courtesy of the journal, which puts out these charts. this is very fascinating. 2000-2004,uated in your wages in the beginning for years rose almost 1%.
but if you graduated in the depth of the recession, your wages fall. pimm: it is very difficult to recover those beginning years of earnings potential. betty: i graduated in the mid-90's, i will not say exactly what here. -- year. the company was just turning at that point. bust.was the.com boom and i was lucky in that sense. pimm: those obviously become the people in the job market, and their needs and experiences are different, and employers once then, not those who are already out of college for four
or five years. --ty: when did you get right graduate? pimm: before the computer. betty: harvard also. did you read this? these are real numbers. and: they put out a survey, just over 50% of the graduating and natalie portman gave the commencement speech, but here are some of the results. one in four seniors were virgins, 60% reported drinking once a week, 1% tried marijuana at least once -- 40% have tried smoking marijuana at least once. hours,eep about seven they are not worried about grade-point inflation, they all they get the minuses or
a story that we are watching closely in zurich, a total of 209 delegates at the fifa conference deciding it sepp blatter will be elected to a fifth term as president. we expect to have the results soon. we will bring those results to you. a few days ago, blatter was an overwhelming favorite, and that was before nine officials were charged in an international scandal. another major story that we are wing in themore tha relations between the u.s. and cuba. cuba was designated a state sponsor of terrorism by washington in 1982. they have since been taken up the list. officials are prepared to reopen embassies in havana and washington once officials results several points of contention. theepa's proposing cutting
corners of the use of renewable fuels and gasoline. the agency want to lower the mandate for corn ethanol this year and next, from the 15 billion gallons required by law. agency officials says it will still provide incentives for more investment in biofuels while acknowledging real-world impediment in the marketplace. the epa will issue a final standard in november after receiving public comment. spectacular new views from manhattan. at one world trade center is now open to the public. the observatory occupies the top three floors. visitors travel 1250 feet above the city and can see for 50 miles on a clear day. some ear-popping on the way up. the elevators will is if you up to the observatory in 60 seconds.
that is a look at our top stories this hour. we are still awaiting the results of the fifa presidential vote. voting has now concluded and we are all over this. mark barton is outside headquarters. julie hyman is at the breaking news desk. she will tell us the results as soon as we get them. and our in-house soccer expert brendan greeley is with me. mark, you are on the ground outside where the voting has just taken place. what are you hearing? we are waiting, like you. i have butterflies. after the week we just had, this is almost the most exciting few moments. seppl accept -- expect blatter to win, but will he win two thirds of the majority? if not, there will be another vote, and then we will have to wait for another 90 minutes. associations will
have to revoke, starting with algeria. the voting is over, the counting is now taking place. we will know any minute now whether the biggest scandal in fifa history will have any bearing on the boat. betty: you have a question for mark? >> i was wondering if your account is different than mine. i can come up -- the most 60erous effort i have now is votes against sepp blatter. 72 keep him from getting that two thirds. any indication that they can get to 70? >> not at all. but, i'm from the u.k., we just had a general election. no one expected the conservative party to win an outright majority. said thatolls netanyahu would not win. he won.
we have had some surprises the -- lately. numbersou say, the simply do not add up as of now, but anything can happen. there is a real buzz of expectation in the air right now. question theou count that i put on the back of a three by five card? we just heard that they are dumping the ballots out and are counting them by hand. we have seen this amazing venue they have. they cannot just push a button indicating who they voted for? why is technology so far behind, and is that in part -- on purpose, and can we get a conspiracy theory out of it? >> is part of another great .uestion why has every country got an equal vote? the likes of the cayman islands has an equal vote with brazil. form of the perfect
democracy, isn't that what democracy is about? why should brazil, england, germany, be worth more than the cayman islands? has givenat fifa cayman islands $2 million since 2002, we know that they don't lovely soccer stadiums -- built lovely soccer stadiums. we know that sepp blatter "facilities with a ceremony in 2009. these are the questions. why not just do it on an ipad, do it digitally? questions i'm not able to answer. it is almost archaic, but it makes it more fun. betty: it does. it is brandon here with me now. that is ok. brendan.about that,
--ty: what if the voting even if sepp blatter wins closetion -- is extremely . what if it goes into a runoff election? he will likely win. he just needs 50% in the runoff. the vote, and then his mandate. how big is his mandate? the europeanuefa, football association, feels the need to do something dramatic like maybe walking out of the next world cup. i watched the speeches that he and prince ali gave, and based on the speeches alone, i would vote for sepp blatter. it was an amazing speech. you begin to understand why people have a personal relationship with him.
he understands his allies and his audience. you, i would with like to stay with you. the audience broke out in spontaneous applause. i don't think we can assume that this is just bribery alone that keeps everyone together. this is something from the head of the football association, from the democratic republic of congo. voice tohe gives a those that have none. in other parts of the world, like england, who invented soccer, and germany, that they really look down on them. by the way, he knows by heart all the presidents of every football association. he gives them money and he says you matter just as much as france and germany. betty: that is what the professor from drexel was saying earlier. , heall intents and purposes has done a good job developing the smaller market. >> he has done a good job
holding onto the allegiance of the smaller markets. when he offers money to the heads of those soccer associations, some of that goes to building new football clubs, some of it goes to building new tools. betty: what will the fans think about this, will this me lower viewership? >> no, this tale is as old as time. we have always known fifa was like this. betty: but not to this extent. it is almost like the most surprising unsurprising story of the year. would say the developing world does not care at all. the developed world, i called my friends in germany and they said, duh. cupybody watches the world with a little bit of embarrassment. we know it is awkward and terrible but it is still amazing. i don't see fans walking out on this at all. barton will stay on
some of this has to do with u.s. stockpiles, speculation that we will be running down our inventories pretty quickly. currency markets, the dollar is also strengthening. week --e week to back-to-back gains. that is what i'm trying to say. stronger against the yen despite that next economic data we got this morning. now a look at the european markets. ryan chilcote has more from london. >> let me give you the lay of the land. as you can see, a sea of red. cac down by 2.4%. continued weakness in greece. take a look at the corporate movers today. interesting stuff in the retail sector. retailer whoritish
also sells clothes. the stock is up. the banks gave it a double upgrade. really good for them. mediaset, and italian media company, shareholders continuing to punish them. finally, national bank of greece. of course, greece's largest bank. we learned depositors contained to pull money out of the bank. 1/5 of all the money in greek banks has in taken out of the banks since the government in power right now took office. take a look at the british pound. down over 30 days. this right here is when we had the election, all of this euphoria. then we have the certainty of the election, and now it is all gone. a quick update on the euro.
continued weakness in the long run. that is the story here in europe. betty: thank you. in asia, new numbers in japan show an economy stuck in neutral, raising concerns about whether the country can meet its growth targets. the central bank also had to delay its target of 2%. rosere prices in april point 75% since april. better than forecast but excluding the effects of last year's tax hike, things remain flat. expectonomists surveyed core inflation to decline this year. policymakers raised their assessment of spending but the latest data shows a surprising downturn. household spending fell for the 13th month, declining 1.3%. industrial output gained 1% from the previous month, but fell in the red year on year. looking at the u.s.
markets, julie hyman has some of the big stories of the day. let's start with the red we see in equities. it's been an unusual day, relatively volatile. stocks took a leg down around 10:30 a.m. take a look at the intraday of the s&p 500. clowning back from those levels but still down about half a percent. mostly negative economic data today from the contraction to first quarter gdp, chicago pmi estimates coming out weaker than expected. all of that providing a weight on the market. xls, alook at the financial sector spdr. down by over half a percent. we are also watching alterra. talk about that big chip
deal yesterday, it looks like they could be the next target. there have been talks about intel making a bid for the company. be $15 million. also want to look at a few other asset classes. if you look at the 10 year yield, we are seeing it fall today. at its lowest in about a month time. we have been looking at the currencies. i wanted to highlight the move in the yen in particular. we are seeing the biggest back-to-back, week to week, again in the dollar in the yen since november. the dollar trading at a multi-your height. of all the currencies, that is the one that is most notable. betty: thank you. julie will also stay on top of the news coming out from fifa.
now let's get a look at the top stories in the bloomberg terminal. that goal in india's heat wave is now more than 1800 people. temperatures in the last month have reached 116 degrees. water shortages are widespread. one third of the population lacks air-conditioning and refrigeration because they don't have electricity. even some of the roads are melting. the senate is back for a rare sunday session. they are looking at the patriot act. thenents want to stop collection of american phone records. program in a that clause under the law. jpmorgan cutting thousands of jobs in the next year. the bank is cutting mortgage workers as home loan volumes shrink. tellers will also be fired as more customers are using atms. has more than 240,000
employees. about 5000 people will be let go. that is a look at your top stories. mark crumpton is joining me to talk about the next hour. these numbers from jpmorgan, you how big theymesimes are. 240,000 employees across the world. 5000 is less than 2% of its workers. you are pulling back some of these workers, and a lot of it is a legal cost. they need the money for other areas of the bank. filing,g to an april the 12 months ended march 31, they eliminated about 6000 jobs, so they are letting people go. betty: but they are also hiring as well. they are letting people go in certain areas, in the bank branches. but they are hiring 40,000
people, so they are adding on to their payroll, but in different functions. mark: it looks like they are heading to mobile. people do not want to go into the branch. they are on their phone when they are commuting to work. i do it, too. you take care of your business there and people are not rushed. a lot of folks, corporations, mobile is the way they want to go. talked quite ae bit about the jobs market. how about in the next hour? mark: we will concentrate on the fifa story but we will also be mckee, weith michael will be talking about the economy, the fed, and young guns. there are some people on wall street about 30 years old who do not know what it is like to work in an environment where the fed has raised interest rates. we are talking about going back
to 2009. zero to fives with years of experience. basically, the question is, how will they react when the fed finally decides to move on interest rates? betty: never been in that world before. mark: i guess they will have to talk to the old-timers. betty: so we pulled out mike mckee for that? [laughter] mark: mr. mckie is one of the most respected economists in broadcast journalism, so we had to pick him out. we will take a look at that. you just called mike old. betty: you pull them out. mark: i did call him experience. i will be getting great about that in the next hour. betty: much more on the bloomberg market day. lost.oyd blankfein almost
betty: welcome back to the bloomberg market day. i'm betty liu. imagine, goldman's gary cohn a differenteld job. according to a report, pimco considered him to succeed mohamed el-erian. the company was said to be working on a succession plan. working with me now is mary childs, who wrote the story. how close were they to this? >> this was an idea, not formal
discussions. they did not make it a formal overture to gary. it was one of those, who is the next person to lead the firm forward. betty: did they talk to him about it? >> i think there were informal conversations, but nothing formal. did gary use this at all to his advantage at goldman? >> i don't know that, but it would not hurt his standing. you have this guy that is so qualified, a star player. when you look at the pay differential between goldman and pimco, that becomes a compelling argument for someone who may want a new job, especially if your ceo has no signs of stopping down. inamed el-erian, we reported november, made a bonus in 2013 of about $230 million from a profit sharing pool. gary made about $27 million, so
that is a bit of a delta. betty: that is a huge one. bill gross, did he support this? >> he was open to the idea. that is the impression i got. often times, when they are building these lists and spit bawling ideas, they throw names out. this was one of the names they throughout, and i think there was more traction than others, but definitely would have been an interesting call. through this time, pimco was going through turmoil, particularly after mohamed el-erian left, questions about bill gross. some of that money went over to black rock, and they benefited from it, but they are having trouble with their active equity fund. a great jobk did turnaround their bond performance. they missed the boat after pimco brought in so much money. they had turned things around but the equity -- active equity
is lacking. they had fired people, shuffled offices trying to address that, but the flows have been pretty consistent over the past 20 one quarters. betty: so what is the plan then? >> largely, you put a fire under people and you hire the best talent you can find. you get the people in there that you need to do a good job and be strategic about who is where. they have gotten some big names in there. i think they are making a lot of moves in the right direction. it takes a while for these things to get traction. betty: thank you, mary. much more ahead, including staying all over the voting for the new fifa president. ♪
has gone to a second round. nobody got a two thirds majority. betty: what lessons do wall street veterans have four young guns facing their first rate hike? and the convicted mastermind of the silk road website learns how long he will he going to prison today. we will have the latest on the sentencing. betty: welcome to the bloomberg market day. i'm betty liu. it is official, we are going into the second round of voting 's new president. sepp blatter did not get a two thirds majority. julie has more from the breaking news desk. julie: this is