in germany as well. this is the second biggest car market in america. shut off to tesla -- not insignificant. if you look at all the places where teslas are unable to be sold to people that want to buy a tesla car, not only is it not a few places, but they are populous states like michigan, connecticut, arizona. ,hese are significant places places failing to lift the sales bans. that is limiting the ability to sell tesla. messing with texas? the existing dealers in texas have a lot of power in that state. the bill has failed to get any sort of traction. not only are they going to be unable to sell them, they could not even get the bill introduced in both houses in texas, and now they are done for the year. it is the second the auto market, behind california. they spent a lot of money on lobbyists. in the fourth quarter alone, they spent over 150,000 million -- they spent over $150,000 on lobbyists in texas alone. we cannot assume there is no tesla in texas. cory: bears look at this and say, why isn't tes

he has built up an amazingly compelling narrative that england, germany look down on all of you, the cook islands, various african countries, but i'm here or you. mark: let's take a look at this more harshly. he has come under a lot of criticism because some say he has too much power. a lot of people say he has not done much on the issue of racism in football. can he then continued to consolidate power in the face of such negative publicity? brendan: because it is not an absolute democracy. he is appealing to the heads of these football associations. the cook islands, 5500 people. the football association president gets to apply to serve twice a year first class, stays in five-star hotels, lives an amazing life. these are the people that are part of the voting bloc. when he was asked why women's soccer was not more prominent, he said maybe they should wear tighter shorts. he is not -- he does not exactly have a sterling record on some of these things. get that he has this clear passion, and as you say, it seemed like a rousing speech right before the voting. but aren't these guys jus

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 with us as we await the results. julie hyman is at the breaking news desk. still ahead, we will bring you the latest on his presidential elections happening today. ♪ betty: welcome back to the bloomberg market day. i'm betty liu. let's get a check on how the markets are trading. oil markets are higher. over 3%, almost 4%. 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%. continue

hans nichols reporting from dresden, germany. scarlet: i like how he tried to has become the institution. it sounds friendlier, like they are not so unreasonable. pimm: is also a differently which. go-pro: still ahead, jumping into virtual reality and drones. why investors are loving the company moving to the skies. pimm: card sharks heading to las vegas this weekend. a look at wall streeters playing in the world series of poker. ♪ scarlet: welcome back to "bloomberg market day." i am scarlet fu. pimm: i am pimm fox. breaking news on cuba. we want to go to peter cook for the latest. .eter: it is official cuba is being removed from the united states, the state department's list of countries that sponsor terrorism. this is not unexpected. a 45-day window from when the president first informed congress he planned to remove cuba from the watchlist. congress had 45 days in which to cast a vote in opposition. there was no vote in congress. this not totally unexpected. this is just the latest death in the effort for the u.s. and cuba

finance ministers and central bankers from the g7 are meeting in germany. what makes this g7 different is the participation of superstar the chairman of ruby global economics spoke with erik schatzker. >> the two sides are moving in the right direction. there is a proposal on both sides, still differences, but those can be narrowed. the misss realize payment -- there will be significant damage for greece and also contagion for the rest of the world. i see a sense of something more contract but moving in the right direction. the 1.6 billion will be paid by june 5 and hopefully by the end of june, there can be an agreement on --uctural reform foreclosing fou erik: why should increase just put capital controls in place right now -- why shouldn't greece just put capital controls in place right now? it is financing deposits and other investments. put the controls in place now, stop that from happening and then you can take them off at some point. for now, there has been some stabilization of the -- as the negotiations are going in the right direction. -- if ther

germany and france delivered a message to greece, it's time to get serious. a group of finance ministers have lined up to reject greek claims that a deal is near on freeing up bailout money. once again today, the greek government says there will be an agreement soon. greece needs the money to back a loan to the imf that is due next week. yeley connoisseur robert schiller warns the greek crisis must be solved. >> it could lead to a story that is very destabilizing. the original greek story should not have involved italy and portugal and spain. the ecb agrees with mr. schiller. it says euro area oh bond yields could rise. the top u.s. and iranian diplomats plan to meet this weekend in switzerland. in an effort to reach a nuclear and the iranian foreign minister will hold talks saturday in geneva. european and iranian officials that's adjusted -- the u.s. is not considering an extension. it's been cold of the worst coastal oil spill in california and a quarter of a century. -- in a quarter of a century. this spill blackened beaches and created a 10 mile oil slic

pimm: hans nichols in dresden, germany. now we want to look at what life is like on the streets of greece these days. unemployment is around 25%. our bloomberg reporter joins us from athens. what is it like to be a greek in greece right now? >> there is discontent and there is fear for what the next day holds. it really depends on what you are looking at because pensioners and civil service -- civil servants have seen their income go down, but if you work in the private sector, things are really hard. we have 1.5 million people unemployed during the last few years. the greek government is in arrears for about 5.5 will euros to its suppliers. if you work in the private sector, you might not get paid at all or not the full amount at the end of the month. the latest research shows some people, around 50%, get paid with a five or six month delay on their wages. describe what it's like for the basic services of the country like garbage collection, water, sewage, things like hospitals and universities. that mucht have trouble in

i think this is headed to the middle east and build in germany. betty: or china, let's say. coming up in the next hour, google's i/o conference kicks off in san francisco. we will be headed there. ♪ . . betty: it is 11:00 in new york. pimm: welcome to the bloomberg market day. we will be deciphering fed speak -- more signals a rate hike will come later this year despite a less than impressive run of economic data. betty: the fit bit is moving from your wrist to the court -- they are revealing their trade secrets. pimm: and what is life really like in greece these days? a country that is bankrupt in everything but name. betty: we start this hour with breaking news in the oil markets -- crude inventories are out a day late because of the holiday this week. julie hyman is in the newsroom with the headlines. julie: we are seeing a bigger than estimated drawdown and inventory, down 2.8 million barrels according to the energy information administration.

offense, i think germany and the u.k. are very attractive stock markets relative to those future policy rates. i think in the united states, u know, bonds are very attractive relative to that 2.5% rate. and in mexico, their forward policy rate is 6% or so, and that is going to be difficult to achieve. i think this type of framework can lead you subjectively of course, to an assessment of value not only in bond markets, well. stock markets as alix: that was bill gross of january us capital. thanks everyone for watching "bloomberg markets." i am alix steel. have a wonderful rest of the day, and we will see you back here tomorrow. ♪ . . announcer: from our studios in new york city, this is charlie rose. charlie: tonight, we continue our exploration of the magnificent human brain with the look of the neurobiology of parenting. neurobiologists are increasingly beginning to understand the brain's influence on rental behavior. we understand now that the active caring for children can activate special narrow circuitry that form

is policy rate in germany .5%. normalize, they will have to be the same. between 2.5% is significant from the standpoint of a historical spread. it should not exist. erik: what other relative value type trades appeal to you right now? bill: as one observes and one expect in developed countries and emerging countries for nominal growth rates to come closer together, several observations come out of this. you can observe overvalued stock markets and undervalued stock markets, for instance, germany and the u.k. are very attractive stock markets relative to future policy rates. bonds are very attractive relative to that rate and in mexico, their foreign-policy rate is 6% or so. it's going to be difficult to achieve. framework can lead you subjectively to an assessment of value not only in bond markets that stock markets as well. gross.hat was bill thank you everyone for watching bloomberg market day. i'm alix steel. we will see you back here tomorrow. ♪ emily: local video. --ording to scylla von silicon valley. ♪ i am emily chang, and this is "bloomberg we

i think germany and the u.k. are very attractive stock markets relative to those future policy rates. states, the bonds are very attractive and in their foreign-policy rate is 6% or so and that's going to be difficult to achieve. this type of framework can lead you subjectively to an assessment of value not only in bond markets, but stock markets as well. that?how do you express when i came out to see you in newport beach month ago, you talked about taking the global unconstrained bond fund and putting it into equities -- i took it to mean you were thinking perhaps of m&a arbitrage opportunities. not that you are arbitrage and the u.s. stock market. bill: i think that you can do both. prices are nearing and ending ifterms of the bull market, i told you we were going to have a crash, it does mean to me that we are going to end with a whimper as well as a bang. canhe united states, you sell strangles or sell call against a strong move in the united states. markets that are expected to be stronger, you can follow a

finance ministers from the group of seven industrial nations are in dresden, germany. talks start today through friday. are thehe major topics greek bailout, oil prices, and getting the economy going again. hans nichols has a special guest for us. former treasury secretary larry summers. i am joined by dr. larry summers, former treasury secretary. knows his way around an economic crisis. a lot of talk about greece. does this feel different from any crises that you are at the helm for? different.isis is this one will be much better if they can work it out in some way. move.ides will have to greece has to get more serious and determined and clear on what the reforms it will take. that will not be politically easy for its leadership. recognizeans need to that there are limits to the degree of austerity that can be imposed. ultimately, debt problems get growth.hrough they did get solved through posterity. they will need to work with the greeks on a strategy for growth. i expect, but it is far from certain, that something will be worked out. >> at this summit? >> know, the

this is the confederation in france, germany, holland, and england, real heavyweights. if they put their foot down, who knows what will happen on friday? there are two investigations going on in parallel. we just learned -- brendan: there are two investigations going on in parallel. we just learned a little more about the one from the fbi from the press conference loretta lynch gave a half an hour ago. what do we know about the swiss investigation question mark what are they going after and what do they have? to identify trying the people they are talking about. because as you said, the american investigation is looking at past allegations of corruption involving the world cup in 2010. the swiss investigation is looking forward. what we are trying to establish that they people are have not named, but just cited and are looking into. and what roles do they play at fifa up to the level just below where sepp blatter sits? because he has not been called in for questioning and fifa has been using that as an expiration or justification to say why sepp blatter is clear and cle

much of that money is distributed in an unequal level to countries as disparate as guam, guadeloupe, germany and china. if you are a football official in some backwater getting more than $1 million to run a football federation, you have nothing to be upset about as far as the way they are concerned and that is the dynamic at play when we look at their direction. how do you explain to people how sepp blatter has managed to be teflon? this organization has been at the center of global scandals, outrageous accusations of bribery and even this morning he is not indicted. as they set earlier this morning, if you did not know if heit, he should go, did know about it, he should go. how is he teflon? tariq: it has to do with how fifa is structured and how sepp operates. he is one of the best political operators i've ever seen. geopolitically he knows the way the wind is blowing. he knows where to build alliances and cut people loose. he has honed those skills for 40 .ears at fifa when it comes to the organization it is one that everybody knows. everyone is aware of the world cup, but it's also very

downou have a lot of these -- germany throwbacks and of the biggest losers, but also the ftse. down some 1.2, 1.3%. we do realize that the greek officials plan to hold a conference call today. this was initially meant to be a meeting between the finance ministers and the creditors face-to-face. we will see if anything comes back. we also had comments from the federal reserve. i know julie hyman has been talking about that all day. that is having an impact on the european markets. the ftse here in the u k, also .k., also, ahe u low-cost carrier adding 5% after reporting an annual earnings jumped and it has a very bright outlook for the rest of the year. the rest is leak. ryanair is gaining. thank you very much, francine joining us from london. speaking of london, there are dozens of underground stations no longer being used. life.ay see a new lee sun transports london is looking to repurpose these ghost stations with transport mayfair. bloomberg went to find out more. in a station under the streets of mayfair that has not been used since 1932. opened up in 1907. it was never par

germany is worse off, down 1.5%. the euro is weaker against the dollar. the german 10-year bond years are falling. it is all about greece. it is worrying investors. comments by federal reserve officials that you just mentioned. also fueling concern that rates will rise this year. that is having an impact on european indices. in terms of yields in greece, the 10-year borrowing costs jumping 50 basis points on worries that athens will not reach an agreement with its creditors. investors are trying to wait for these developments, but as every day goes by, they know they have this imf repayment coming up in a few weeks. greeceance minister in blaming creditors, insisting on more austerity. let's go over to julie hyman in new york for when u.s. markets are doing. julie: thank you. let's take a look at what is going on in the treasury markets. yields go higher today, and that has been something that has been a reaction to the better than expected economic data. we have a look at the various yield curves here. we have seen the move higher to some extent. not the

the comments suggest some in germany are preparing for a worst-case scenario in the ongoing greek financial crisis. in eu summit in latvia failed to produce a deal today. german chancellor angela merkel says greece needs to do more to get the next round of bailout funds. sounds like the same old story. fed as well. it's a most like we are reading a recap. says it's ok to merge according to tom wheeler. executives had expressed concern after the ftc scuttled the 45 million dollar merger of time warner cable and comcast. scarlet: regulators on the verge of okaying a big takeover in the cigarette industry. bloomberg news reports reynolds american is about to win 20 $5ust approval for billion takeover. reynolds is best known for its camel brand. to win approval, reynolds has cigarettes sell its e- and cool brand. boston and four of its immediate suburbs added the most residents run july 2013 to july 2014. boston itself gained nearly 6000 residents. the suburbs of cambridge, everett, watertown and chelsea closing out. the reasons for the growth were immigration, an influx of young people drawn b

betty: germany may be prepared for the worst when it comes to greece, the finance minister raised the possibility of a federal currency for greece if fail.to creditors as germans brace for a worst-case scenario any greece financial crisis. a summit failed to produce the deal today andy german chancellor said greece must do more to get the next round of bailout funds. >> i will have some bilateral talks and have already spoken last night with the french president and greek prime minister. it was a friendly, constructive exchange, but further work is necessary. to theshe was referring imf, the ecb, and the european commissioner. pimm: those are our top stories. betty: let's talk about this idea of a parallel currency. who thanks that is a good idea -- who thinks that is a good idea? pimm: i wonder if the finance minister clear that with angela merkel? it leaves a lot of uncertainty for all those negotiators. betty: it signals there is this entertainment of greece leaving. pimm: going over the cliff. betty: in greece, they have to pay their people. do they pay event with this new currenc

germany may be preparing for the worst when it comes to greece. ministern finance raise the possibility of a parallel currency for greece if talks with creditors fail. the comments come as some in germany suggest germans are getting ready for a worst-case scenario. an eu summit in latvia failed to produce a deal today. angela merkel said greece needs to do more to get to the next round of bailout funds. i will have some bilateral talks and have already spoken last night with the french president and greek prime minister. friendly, constructive exchange, but it is clear that further work with the institutions is necessary. olivia: merkel was referring to the imf, ecb, and the so-called troika behind the greek a lot. -- bailout. reynolds is best known for its camel brand of cigarettes. to win approval, reynolds had to offer to sell its loop -- blue e-cigarettes and cool brands. risingof dear -- deer this morning, forecasting better-than-expected profits for the year. sales of the signature green tractors have been falling, but deere is offset that w

they suggest that some in germany are preparing for a worst-case scenario in the ongoing greek financial crisis. german chancellor angela merkel says greece needs to do more to get the next round of bailout funds. to clean up the oil spill on california's coast, it is becoming diluted. less than half of the 21,000 gallons that reached the water have been cleared up. sushi is being blamed for sickening 53 people in nine states. they may have eaten raw tuna tainted with salmonella and most of these cases are coming out of california. 10 people have been hospitalized. regulators on the verge of getting antitrust approval for an overtake. to win approval, reynolds has its blue e-cigarette business and it's cool brands. the clinton foundation is releasing a comprehensive risk -- list of the family's speech fees. at least $130 million for giving speeches. the foundation received $26 million. jersey,ve from new chris christie goes off on the media. of the garden state rarely sensors himself in his public appearances so watch out when he is behind closed doors. he had plenty of off-color things

[laughter] germany: that's not an experience? anyway, what i mean by that is it goes into what is an immediate purchase for the consumer. the technology transitions, and as we have these additional opportunities, people are buying more with netflix rather than going to a retailer. really, part of that is it is wage pressures. for six years, we've had this interest rate policy. eventually we will have wage pressures, and consumers will benefit more now than ever. he just really want to get out there. autodesk earnings. jules? julie: autodesk really the most important thing. they came out with earnings that beat estimates. they are also cutting their forecast for the full year, seeing second quarter earnings that are sharply below what analysts had been anticipating. the forecast had been a gain of 3% to 5%. sharejusted earnings per are at most $1.10. analysts had been looking at one dollar $.17. they are cutting their forecast in the shares are falling as a result of that. keep hearing about how companies are doing better, but the

and germany, saying that he sees discovery teaming up for more takeovers with deal potential in mexico, colombia, and brazil and that he is interested in buying some sort of mobile network in the netherlands. looks like they are looking both to europe and to latin america to seek deals. malone has of course been a dealmaker and if you look at how the shares are reacting we have seen a spike in shares trading higher right now by 8/10 of 1% as he makes these comments, apparently in a telephone interview it looks like with a bloomberg news reporter. we will keep you posted on any more headlines that come from the call. m&a of course continues in the media industry. caught a, reaching an agreement with u.s. regulators, the japanese company was use the failing to cooperate with an investigation into faulty airbags. the department of transportation will announce a fine and reveal possible causes of defects, at least 28 million cars have been recalled as of may 28 of this year, they have lost millions because of these airbags that have been linked to at least six debts. the debt crisis is pro

the president of france and germany met in berlin today. the chancellor says it's a deal on bail on money that must be reached with greece by the end of the month. they say faster talks are needed to end the form of stalemate. last night, the greek finance minister said the two sides are almost there. closehink we are very your of course, until the deal is done, no one ever knows when the deal will be done. of 24ld be a matter hours? >> let's say it's in a matter of about a week. creditors want to see more concrete action from greece, including a pension system overhaul. if they will release anymore bailout funds until that happens. scarlet: the world is spending more than $5 trillion a year to -- the international monetary fund says 80% of subsidies are the result of environment damage from burning fossil fuels. coal accounts for the biggest subsidies because no country imposes meaning for taxes on its consumption. mark: hillary clinton is going big on small business. the democratic president says she will fight for small business owners.

we got germany coming down, even coming down for greece. after that the $400 billion selloff in the bond markets over the past few weeks, suddenly the appetite is coming back because the ecb saying we going to up our purchases of bonds up until the low in the summer holidays when we see many in the continent and europe go on holiday. maybe make him a maybe june you will see more than 60 billion euros being snapped up everything all month. suddenly we see appetites back in the bond market. also appetite seemingly being dwindled in the british pound and the euro. less checking in on the euro. we did see big news against the dollar currently off by 1.5%. things,lip side of there was appetite because of the construction and your housing starts. lower, as mostd of the british pound did. inflation at the going negative for the first time since 1960. maybe we can't see any interest rate hikes that much. speaking of the pound, down goes the pound. nearly every tradable counterpart. on the upside, we have the dax rallied up more than 2%, and even gr

you mentioned subsidies and places like germany, spain, and italy. what about the united states? what role do they play? click subsidies are pretty stable and that is making this great right now for the entire industry. you have a fairly good outlook and it comes to policy is diversified, not just in one big market in china and japan. the u.s. would have a 30% tax credit for the next two years. that is pretty good. alix: what happens as the company's wrap up supply? does that cut it off? >> that is the fear and that is what a lot of these companies went through years ago. they're adding another surge of capacity in the next year or so. are a little more confident this time around. solar city and elon musk, a big deal? questing field. they are doing well. walmart,companies like retailers, warehouses. they are all putting solar on the warehouses. much thank you very telling us all about the solar industry. alix: i am sorry to say goodbye to you. see you later. coming up, our own betty liu at the peter ship foundation. about thisk president's attention trade bill, and does it have a

the leaders of germany and france say it is time to pick up the pace on grace. a meetup in berlin today. merkel says a deal on bail at money must be reached by the end of the month of may and they say faster talks are needed to end the four-month stair mate. last night, the greek finance minister said the two sides are almost there. close.ink we are very until the deal is done, no one ever knows when the deal will be done. >> could it be a matter of 24 hours? >> i would say it is a matter of about a week. creditors want to see concrete action including a pension overhaul. they say they will not release any more bailout money until then. with george lucas. fortunately, so our disney's shares. lucas has made a $2.2 billion the disney stock he received in exchange for the rights to the star wars franchise. close toares are up 70% in the last two years. the first star wars sequel comes out in december. those are your top stories this morning. coming up on the bloomberg market day, how to make progress in a polarized washington, d.c. former white house chief of staff

you have germany coming down. still long way off of those lows they hit back in april. money pouring back into spain. -- he was here in london giving a speech. the ecb may start sucking a bonds faster than expected. low.head of that summer that has people reengaged in the bond market. it has moved to the euro. currently have the euro moving the first and two months. down 1% against the dollar. the dollar is rallying on potential thoughts of when that rate hike will be. grace, also -- greece also adding to concerns. still no deal when it comes to the greek debt debacle that continues. we are seeing money flowing into greek stocks. currently up 2.5%. you're seeing big moves up 30% in terms of attica bank. there does seem to behold that the assets in greece will be interesting but do keep an eye on some of the car companies. interesting moves we're seeing in the consumer index. strong car numbers. automobiles overall are currently up some 3.36%. not one single auto is falling in europe. if you take a look at what is going on in the u.s., we are struggling to make new recor

that the average yield for five years in germany is not reflecting the kind of growth that he expected. the mostthis is one of divisive issues in the market. where are the markets going? what does it mean for everything else? alix: and how does that affect reflation, inflation, deflation, growth? scarlet: look at that, a stronger dollar, once again, rallying by the most in five, lots of data this week, we have got housing starts and existing home sales, fomc minutes. that jp morgan saying second quarter of the euro dollar will be 112 versus the previous forecast 147, forecasting a stronger euro. scarlet: maybe it is not time to go to europe. it was at 1.45. get you a check on the top stories russ and the terminal right now. turning up the heat on the fiat chrysler u.s. unit. requesting more documents on how the automakers handling the recall of millions of vehicles. there will be a rare public hearing on the 22nd. they have been frustrated by the pace of the recall, as well as the efforts to reach affected consumers. the latest action covers 20 repairs including the of fuel tanks on 1.

david, where is germany and all of this. chancellor angela merkel says that greece needs to take or at least stick to the austerity of it made in the prior governments before alexis tsipras took power and that greece could not continue to rely on international creditors, including germany, to keep pumping money into it if it was not going to make the needed structural reforms. what has germany been saying about this as of late? extent, when he speaks with two voices. there's the finance minister, who has been the hardline voice. merkel has ala shehtly softer stance and is really committed to keeping the euro together. -- concessions from greece, but she's probably a bit more willing to compromise than before -- than the finance minister. at the end of the day, she will be calling the shots. mark: our investors seeing chances for resolution, or do they think greece night -- might in fact default? david: if you look at bond yields or the media, clearly people are worrying about increasing possibility of a great default. realit

go to germany. guess what? i didn't set the stage. they did. he did. al rix: watch that complete, firely interview with ken langeno at bloomberg.com. catch up d, will they to wall street? that conversation next. ♪? here is a look at the top stories -- a federal jury says convicted boston marathon bomber dzhokhar tsarnaev will face the death penalty. they deliberated a total of 14 hours before making the decision. the defense attorney try to get an sentenced to life in prison, arguing he was under the sway of his older brother. the 2013 attacks left three people dead and more than 260 wounded. the fao schwarz toy store in manhattan is closing its doors in july. the reason -- rising rent. the store's current location is the high rent district in fifth avenue across the plaza hotel. the closure will leave the 150-year-old brand without a retail outlet. toys "r" us owns the store and says it is looking for another manhattan location. wow, that's like a staple gone from new york! chinese hackers have forced penn state to unplug their computers in their en

go to germany. this what? i did not set the stage. they did. he did. erik: he said the stage for negative interest rates? stephanie: he has a great point. who created qa? -- qe? erik: the federal reserve. stephanie: washington. he is trying to say, the system was-- qe? created after valuations went up. how is that their fault? fault? erik: i'm not suggesting it is necessarily their fault. come on, please. i'm suggesting we look back at the historical record. [indiscernible] who was in office during the credit bubble? it wasn't president obama. stephanie: george bush heard -- bush. guest: who on the floor of the house said, every american has a right to own a house? barney frank. said they scolded the banks, how dare you. you know what redlining is? it is not done by race. it is done by economics. if you have an area where there is nothing but abject poverty, how can you loan people money and poor people can't even buy food? but barney frank said sorry, you are an american. erik: hang on. we are blaming the credit bubble on barney frank? stephanie: ther

i go to germany and guess what? i didn't set the stage, they did, he did. eric: wait a minute, he set the stage for negative interest rates? now eric, wait a minute, he has a good point, but i think when he is trying to say is that these rich people will didn't -- rich people do and say they are going to screw these people, how is that their fault? eric: i am not suggesting it is necessarily their fault. come on, please, i think we should look back at the historical record. let's look at the historical record. who was in the office in the credit bubble? it wasn't president obama. ken langone: when did the credit bubble start? stephanie: george bush. ken langone: when did the credit bubble start? frank scolded the banks, he said, how dare you, do you know what the red light is? race, it done by is done by economics. if you live in an area with abject poverty, how can you loan anyone money in an area were no engine by food? barney frank said -- eric: hold on a second, you are blaming the bubble on barney frank? stephanie: the banks are culpable, but they are

olivia: germany has this law that protects beer purity limiting the depreents breweries can use. do we have a law in the u.s. that we can thank for u.s. dominance of craft beer? >> we can thank no law inhibiting creativity in the u.s. so that's why we saw the same thing happening with the cheeses and coffees and chocolates they said we are going to be innovative and amp these beer styles up. olivia: thank you. julia herz for joining us. still more to come after this break. olivia: good morning. welcome to the bloomberg market day. raising the stakes in this rivalry with industry leader, uber. olivia: he has been one of chris christie's big backers, but has he given up on the new jersey governor? pimm: russia has hired some of the city's top lobbyist to take on capitol hill and the white house. ♪ olivia: good morning. i'm olivia sterns. welcome to the bloomberg market day. pimm: we are 90 minutes into the trading day, let's get a look at the markets right now. , stocksok at the us not moving very much. nasdaq down.

germany missed estimates but the headline number for the eurozone came in line. the market shrugged that off for most of the day. then, they lit a fuse under the euro dollar. the euro goes higher against the dollar, the score on the board, that is a february high for the euro. it cascades through the asset >>. the stronger euro, just look at the rollover through this session. higher and higher and we go lower and lower. in the equityape market and we close the dirt -- close the day and mainland europe painted red once again for a second straight day. the dax off 1.2%. stocks lower. check out the bond market as well. the euro gets stronger as the stocks go lower. up by four basis points with a 10 year of 0.71%. back to you. >> japanese carmakers announced -- the headline number 6.5 million. 5 million from toyota. we are talking vehicles between march 2000 3, 2007. 40,000 in the u.s. 1.4 million in japan. not a lot of breakdown but 1.5 million cars mostly in japan, all on top of the 17 million we already recalled over the airbags. mark: thanks. a big game tonight a

gdp numbers coming in, germany missed estimates but the headline number for the eurozone came in line. the market just wrote that offer most of the day. u.s. retail cells happen, and ugly miss that lit a fuse under the euro dollar. the euro goes higher against the dollar. that is a february-bureau. what does this mean? it cascades through the as a classes. rollover higher, higher, lower, lower, lower. the dax down by 1.2%. we closed the day with european equity markets and mainland europe painted red once again for a second straight day. the cap 40 down to step the dax off by 1.2%. stronger euro, stocks lower. the euro gets stronger, stocks rollover, it is the burn market that is a racing the gains. yields higher by four basis points. yield on the 10 year of 0.71%. betty: the safety crisis involving faulty airbags that issue shrapnel is deepening after nissan and toyota announced even more recalls. david ingles has that story from hong kong. >> japanese carmakers have announced what looks to be another round of massive vehicle recalls which have to do with his faulty toccata airbags.

when you see deals below 1% on the 10 year in germany, you get exaggerated moves through a normal move for a bond is one basis point. what you see is on any sign of trouble, all of the casual investors get out of the way, up, and we see volatility from all that. julie: will we see volatility continue to take up? >> yeah. because the yields are so low, that is a natural catalyst. maybe right now, for lack of anything else, what the market is following. it is current volatility. having said that, 13.5 on the vix, it is what all the traders are talking about. julie: you are looking specifically at the xls -- what is the strategy there? >> yesterday i saw a lot of of activity in coal buying, the xls . certainly this investor is betting that as u.s. interest rates rise, it will be a better environment for u.s. banks to do business, more positive deals, more cash flow going in. they are betting on a rally in banks for the summer. -- i think that is a little too speculative. a lot people use options as protection. xlftrategy is to overrate stock by buying it. ♪ pimm: good afternoon. it is 9

than expected, in particular thanks to performance in france and italy, offsetting weaker momentum in germany. and is helping inserted lower oil prices and a weaker euro. the greek economy fell back into recession in the first quarter according to a report out today and sources say europe's negotiators are about to demand another 3 billion euros in budget cuts. the cuts would get greece into a surplus of 2015. it is a target of the greek interior minister endorsed as acceptable. recently emerged from its worst economic slump since 2002. bill clinton is a lot can happen between now and november 2016 but he is ready nonetheless to move back into the white house if things break right for mrs. clinton. he talked about it with david letterman. mr. clinton: hillary has to win the nomination and win the election and if she wins their chance is 100% i will move back. [laughter] [applause] mr. clinton: if i am asked. president saysr he thinks it is a good thing for america, libya, his wife wins. that shouldn't surprise you. come, the u.s.o may rip up its settlement with ubs for interest rates. the ban

the idea that germany is coming out of its inflationary period, but it does seem like it is something more, because it is so intense, and it is not just been the fixed income. it has been the reversal of energy. thing that has not had a germanic reversal so far has been the stock market. we had the new york fed president william deadly talking about the increase ushering in a regime shift that will stir financial markets, and it occurs, you do not want a fed official saying that -- new york fed president william dudley. it sort of feels that the fed is not signaling an imminent rate hike or anything like that, but it is trying to use some language that will make markets a little bit cautious. the samenically, at time we have seen this path, we have seen tremendous volatility, really to the highest level since the last crash, and you have to wonder how that end up affecting other assets when you have a jumble of money and you have liquidity concerns. was an interesting report out today about the bond market starting to affect the currency market, people trading to currency market as a

>> this started in germany. that is it. the bond tantrum spread worldwide. and talkingn it about it, it is a worldwide phenomenon. pointsu move 60 basis to 60e 10 year treasury basis points. any economics that made a decision two weeks ago that made it difficult. alix: u.s. treasury yields are 2.3%. the 10 year0.7% on in germany, even after the catch him, as david called it. yield,till a high especially if the dollar will not lose much failure. a lot of central banks are coming in, flooding the option that just took place. could see had a second piece. you look at the american market. at fourgraded are tax-free. the 30 year treasury is at three. the last i checked, you pay taxes on the income in the forsury, and did not pay 100 basis higher. valuationabout metrics we're used to. it is volatility. what does that do for risky assets? >> if you are in singapore and you have to deploy sovereign fund -- plunges around the world, the united states of america is a great choice at the highest relative yields. you have got to own some of them. if you're in america an

there isn't a european balance sheet except in germany that is at all like ours. they are really expensive. interest rate are negative. , higher yields. betty: the fact that we are seeing this selloff, does this competition the situation for central banks? harder for the fed to raise interest rates, for the ecb to exit qe? byron: what makes it hard for the federal reserve is the economy is doing better. then, it is easy. right now, you're wondering whether it will be september, december, because they're worried the economy will not be able to be strong enough to sustain it. betty: when do you think that the fed will raise rates? byron: september. think they are justified to do that? byron: it is not september yet. i think second curve in the third and fourth quarters. the illiquidity, we have heard lots of bond traders complain. if say some of it has to do with regulation. the dodd-frank rules that have made banks hold onto their cash positions even more and that is creating this huge dislocation, they say, that is a coming crisis. do you share that view? byron: i

. ♪ alix: bonds in germany and the rest selling off again today, sending yields higher, but here's one place where they are headed lower, the one place for the trillion dollar marketing you bills, yields at the negative for the first time since 2008, demand outstripping supply, and it could get worse. her morgan expects a next $900 billion in demand for government securities over the next 18 months, putting pressure on a big chunk of the market. what does this mean for stocks, bonds, currencies, you name it? joining us to discuss is lisa hour bloomberg stock editor, michael reagan. good to have you here. talk to us about the j.p. morgan call, $900 billion in demand coming from the treasury market and why there is not enough supply. >> short-term rates are kind of moving away from the fed mandate. regardless of what the fed does. all of those people were putting their money into money market funds and potentially losing money if the rates get negative, with new regulations coming together and the search for safety around the world. there is just as good luck of cash being piled into the