tv Bloomberg Markets Bloomberg May 18, 2015 12:00pm-1:01pm EDT
exclusive video -- exclusive interview with mary barra and she talks about the new camaro. >> greek banks are running short of the collateral they need to stay alive. the premise are urged to reach a deal. emergency liquidity could run out in three weeks. >> a rare public speech by apple ceo tim cook. he urged graduating seniors at george washington university to fight injustice and that they must use their values to change the world. ♪ pimm: good afternoon, i am pimm fox with betty liu. we begin with equities. is moving higher by three points. 2127 for the s&p.
more than 19g points. we go to the commodities market and look at how oil is doing. nymex crude down for tents. -- 4/10. gold going up a dollar. as you are seeing the dow hit another record high -- you can see that now -- yields are rising in treasuries market. there is a little selling. despite concerns about the mixed economic numbers. -- the 10 year yield has had 2.22%. the dollar rebound causing the drop in oil prices. at dollar is a bit stronger 1.13 against the euro and against the yen at 119. pimm: greece is running out of
time and money. it remains defiant. the prime minister says it will not back down on pledges to and austerity but is still trying to reach a deal with creditors so it can convert a default. discussion force a of the greek crisis at the european union summit in latvia. we have takeovers. endo international is buying par pharmaceutical. about $8 billion. par pharmaceutical is owned by tcd capital. -- tpg capital. taylor, a --ng ann percent premium over friday's closing price. evans is in no rush to raise interest rates. he spoke in stockholm. he said inflation is still way below the fed target so rates should stay near zero for the time being.
>> based on this forecast and the risk in the outlook, i inc. the market committee should raising our traditional short-term interest rate until there is greater confidence that inflation one or two years ahead will be at our 2% inflation target. i see no compelling reason for us to tighten financial conditions until then. raisethe fed said it will benchmark interest rates when it sees an improvement in the labor market and is confident inflation will rise to 2%. betty: another sign the housing market needs more time to gain momentum them -- men's him. the national vote the -- the national association of home builders/wells fargo index says -- home of the confidence declined. lawmakers in new jersey will
consider a bill that will give drivers the option of self-serve or full-service at gas stations. again passed a law to allow self-serve in rural areas. self-serve was banned five decades ago due to safety concerns. surging just in time for the peak driving season. the national average has jumped $.22. the lundberg survey points out that is still $.93 lower than one year ago. police in waco, texas are pressing charges against nearly 200 suspects following this shootout between rival motorcycle gangs. at least nine people died and another 18 wounded at the twin peaks restaurant sunday. >> they could be looking at capital murder charges. that is up to the attempt is in the clown you dust in the
county. we are beginning 192 and them -- charging 192 of them. pimm: amtrak is rolling again between philadelphia and new york, the first time since the fatal crash in philadelphia. the fbi is entering the investigation. agents will look into reports that something hit the windshield moments before the derailment. betty: i will be worn one of those amtrak slater. i will be on one of those amtraks later. -- urt ruled that the $93 million lawsuit that apple long -- apple want against samsung must be reduced. up, shares of apple are
on the rise after carl icahn 240,the stock is worth double what it is now. exclusive interview with gm chief executive mary barra. she talks the new camaro and gm's push for new technology. betty: we will hear what apple ceo tim cook told graduating seniors at george washington university in their commencement address. cook is hearing again, as we mentioned, from carl icahn. he wrote an open letter urging him to expand apple by box further. that applen says shares are worth 86% higher than friday's closing price. joining us from washington is tim higgins. is this realistic that a letter from a large shareholder will change the way that something
does its buyback program? >> this is not the first time carl icahn has pushed apple to increase its buyback and it has been successful in the past. increaseounced it will by --pital return program it has been successful. we will see what will happen here. betty: we will see what happens, in his letter, which was generally complementary, writes that "it is our believe that large institutional investors, wall street analysts, and news media like, continued apple --d misunderstand apple." i cannot tell you another company that would have a larger love affair with the company --
with the media that apple. there seems to be a general debate is apple has peaked with its iphone. the larger screens and the iphone 6 and six plus have led to larger profits. increased 70%. the debate is whether they have reached the top. can the magic continue. ccl's letters to just potential in you ways for apple, whether in tv sets are in the autostart -- or in the auto sector. betty: apple shares are up over 1% on this news. tim hickman -- tim higgins there. general motors is putting his foot on the gas pedal and's race against the mustang. the 2016 camaro. our car dude, matt miller, got a
chance to take a spin. new sixis the all generation chevy camaro. this car is far superior to any car in the sports car arena. >> to the camaro faithful, only one other car matters. they want to the -- beat the mustang. we will beat them and that is our goal. >> the mustang has gotten a big head start since launching its six generation more than one year ago. the top-of-the-line camaro now horsepower, 20 more than the mustang gt and dangerously close to the corvette stingray. >> we are going to do the best camaro we possibly can. when we do the next corvette, we will do the best corvette we can possibly do. >> gm makes a car in that
segment, which is why it is winning with 20% shares and that market -- 28 percent shares and that market. an important part of our dna. >> whatever the reason, gearheads like me rejoice. >> oh my god. that definitely leaves you wanting more. mary barra makes her case for the 2016 camaro against other automobiles. betty: i was thousand and by the design on the camaro. markt to bring in hardigree and matt miller. i know you spoke with mary barra -- >> those curly cues are the camouflage carmakers typically use when they bring out a new
vehicle but they do not want the press to see it. betty: i had no idea. this is a typical thing car companies do. thanks. so how did you like it? matt: i had a lot of experience and the current camaro because my brother owns a manual the six convertible. i thought this new one had better handling, much tighter, better breaks. to be fair, maybe my brother's breaks are one out. it has -- definitely, if you have the jan five, you need to trade in. betty: will this take market share away from the mustang? i think so. the mustang had a year, so they have gotten all the buyers they will get. you will see a lot of camaro buyers saying that they will --
the one i think they will be in love with it. i think we see it pick up from nissan vehicles and other sports cars. now it muscle car, but is a sports car and can compete with those. pimm: where are people supposed to drive these. i know they are testing it on a closed track, but in most places, there is this thing called traffic. two liter offer a four-cylinder version. so if you just go to pick up the kids -- pimm: what is the point? >> the point is that you can. we are from america -- pimm: you get the v.a., isn't that the whole point? >> a lot of buyers to have money for the camaro, say it says for it -- there used to the engines from
driving previous cars and they did not have as much money -- pimm: so they will not buy a chevy cruz but will buy a camaro -- car, youou see this want it. you're ready to pay for it. betty: you do not want to buy it? >> you want any car that is lovely and shiny. >> that is true. i would take the 455 horsepower version. 120, no, buto do what i do it anyway, probably yes. >> i would try the two liter version. a twod the sweet spot was liter with the manual. it is dos style around town. get tofreeway, once you 120 miles per hour, it does not there inw you got terms of horsepower, you still got there. betty: we saw the video mary barra getting in and out of it. you spoke with her. what does she say? >> mary always had a soft spot
for the camaro, the first -- for the camaro. the first car she fell in love with was a pontiac firebird, which is basically a camaro. andwanted to buy a firebird left with a chevy chevette in college. betty: ishii there is a woman who loves -- >> that is why i thought. i thought the mustang is easier to sell to my mom. the camaro looks dangerous. it is the bad board. listen to what she told me when i asked. >> i think there are a lot of women that liked this video -- this vehicle. i met five customers that know every inch of it and know the details just as well. it attacks a fair number of men and women. in theseerested performance cars. >> it is a different -- betty: how does he tried to a chart women? >> since she loves it, she must have better marketing figures on it, but there are women buying
these cars. >> it is actually a great option. where i come from in houston, there are hot models who by this car. it is a sexy looking car. you can get it at a reasonable price. this generation is a little more sports car, so if you're put off by the overt masculinity of the last one, the danger and softer edge -- >> it is more refined. she said a lot of people are saying that. betty: is is a car people can hold on for a while? this is a five to seven year development. 2009,st car came out in 2010. so people wait and then by the new one. >> is at the same as trucks where brand loyalty is strong? >> you will see a lot of people
in bell island with camaro tattoos. you, great to see you. matt hardigree. fun conversation. >> i wonder what matt's tattoo is. >> i have a tattoo of the new -- betty: never mind. pimm: still ahead on "bloomberg markets day," crude oil prices are falling. betty: we get a closer check of the markets right after this. ♪
pimm: welcome back to "bloomberg markets day we get." betty: straight to a check of the markets with julie hyman. the s&p 500 hitting an intraday high and a closing high , and even though the gains are not that substantial, we see enough of a game to push them to record levels. your three major averages and what we are seeing at this point -- there you go -- the s&p trading above the intraday high and on a closing basis. the dow, little change, but enough to push it to a record. the nasdaq gaining one/three of 1%. it has been in -- an interesting day. earlier, it looked like maybe stocks would reach the records and then there was a tech line
and then there was a reversal. that result coincided with apple reversing through the day. we had that open letter from carl icahn, where he is encouraging the company to raise its buybacks. also saying the stock is worth $240 a share. we also see a car and tv coming from apple. helping is the banking stock. rateve seen some increases wise. yields up in the treasuries market. that seems to help thanks, particularly those who are consumer focused. you are seeing those three banking stocks rise. just out, raising its euro forecast for the second quarter of 2015. the current euro-dollar forecast, now it is looking at $1.12. it was looking at $1.07
previously. the euro trending lower today. pimm: thank you. julie hyman in the newsroom. now for top stories at this hour. another republican candidate is seeking the presidential nomination. lindsey graham says he will officially announced june 1. the south carolina senator is a major critic of obama's foreign policy. he says he is born -- been more right than wrong on foreign policy and he believes the world is falling apart. altera rising today. talks of it possible -- talks of a possible buyer by intel have resumed. all tara low-power, programmable semiconductors. airline is expecting a record number of passengers because of the improving u.s. economy. airlines for america says
vladimir putin showed off his hockey skills during an exhibition match with former nhl players. he scored eight goals in the 18-6 victory. during his years in power, he has cultivated quite the image of toughness. he has been seeing fishing shirtless,-- horseback riding through the mountains. he also knows how to shoot a bow and arrow. pimm: maybe has picture of people to do archery practice on. the interesting thing about the hockey event, the canadians beat the russians to take the title of the world hockey federation. you do not want to be there goalie defending against vladimir putin. i wonder if you do not let the goals in, what happens. almostthis is why
entirely the west despises him. but he is immensely popular -- pimm: very high approval ratings -- betty: at home. it may be because he is such an unusual leader. i would like to see him and president obama have a basketball shootout. i think that will work on that now -- betty: i would bet on obama. pimm: i think so too. betty: a lot ahead. , a busy week for retailers. to thelmart to target gap report their earnings. we break down what you should be watching. ♪
the bloomberg terminal. greece remains defiant though it is running out of time and money. the prime minister says he will not back down on pledges to and austerity but still wants to reach a deal as soon as possible to over a default. it at theto discuss european union summit in latvia. a federal appeals court says samsung did infringe on apple's copyright but did not infringe on the trade address. the $93 million settlement that apple one must be reduced. buying parational is pharmaceutical for about eight and dollars -- $8 billion. group buying the fornt company of ann taylor
$2 billion, a 21% premium over friday's closing. police in waco, texas are pressing charges against nearly two hundred suspects after a deadly shootout between rival motorcycle gangs. at least nine died and another 18 injured. the violence happened at the twin peaks restaurant, a popular biker hangout. >> they could be looking at capital murder charges. that is up to the detectives in the county to determine. getting 190 two of them for engaging in organized criminal activity. betty: the restaurant will be closed at least a week. amtrak is restoring service between philadelphia and new york. the routeled along for the first time since the fatal crash last week. the fbi is entering the investigation. agents will look into reports something hit the train windshield moments before it derailed.
coming up in the next half hour, retailerse weakest reporting their earnings, including walmart and home depot. toget a preview of what expect. we look at why more americans are working into their retirement years. it is not always about the money. ceosar what advice apple tim cook gave to graduating george washington university and what advice he got from carl icahn. it is a packed week for retailers. we get a earnings reports from urban outfitters, home depot, walmart, target. retail numbers put a denver on the idea that consumers were spending. -- and alsosight is olivia sterns who has been on this story all morning long. spring-y.
>> we coordinate. >> so consumers are not shopping, what is going on? >> it depends on what consumer you're looking at. apparels, they're probably not shopping as much. but walmart consumers are probably shopping. -- prices are down and >> their spending at home and on tech area it appears they are not spending on clothing. ift we want to figure out is they are actually spending the money we think they are saving on gas -- >> poonam says yes. >> i think they're driving more to the stores. they started to consolidate trips, so now that the prices are down, and allows them to go back. they could be spending more in total. betty: why are people not spending in retail? why not clothing, what is wrong with this? >> there is nothing new in
clothing. what will drive spending? weather was not cooperative at the start of the first quarter and then you had an early easter, that port delays, so there was no new fashion in stores for a long time. that meant it was not worth it to go to retail. >> plus people are saying retail is oversaturated. too many stores. lookingwhat i am forward to in the urban outfitters earnings. that is a prime example where people expects 30% off. to what extent has discounting them into the bottom line. if you're in the apparel category -- depot comes out on tuesday, low was on wednesday. that is with something called the housing derivatives. this is separate from apparel.
what will we hear from them? >> i expect good numbers. the housing sector has seen a boom. depreciating interest late -- rates are still low. >> there's both excited to post sales growth of 6%. there is stocks have been on a tear since 2009. that is a strong point. betty: best buy is reporting friday, i believe. will they benefit from what olivia was mentioning -- the tech spending? >> i think best buy is a different story because it is mostly brick and mortar have amazon and electronic retailers competing. -- >> that is what i want to see out of walmart. how well is walmart.com doing? everyone says if there is anyone able to take on amazon, it will
be walmart. of storesbe the year for walmart, but they had a disappointing online strategy. they are trying hard to invest in boost the supply chain. i have this stat that is keeping doug miller up at night. -- in themart in u.s. u.s. also shop at amazon.com. 56 percent of walmart shoppers shop on amazon.com. that is more than three times the percentage of those who shop on walmart.com. walmart cannot even get its own customers to shop at. its own website. speaking of disappointing sherry g is, what about ann taylor and how they have lost market share through the years and are being bought by a scene of -- ascena? >> ascena did not target women that were a regular sizes, if you want to call it. it was
mostly plus sizes or teens. this allows him to go up the supply chain through scale or just merging the corporate offices. betty: what about the minimum wage issue for mark -- for walmart. you are big on them, but what about that issue? pay increases will be filtered into the end of next year. target, mcdonald's on board with raising the minimum wage. we should see a very minimal impact. i have seen plenty of analysts say they are skeptical. nine dollars an hour it will not employees on the faces and it will not be enough to keep them from quitting and going somewhere else. betty: thank you so much. poonam goyal and olivia sterns here.
the department of transportation says there are concerns about 20 set a recalls and has public hearing july second. there will be a price briefing 1:00 p.m. at the agency has concerns about the recall performance. if you look at the shares, they remain higher on the day but have, off of their highs after these headlines. we will update you once that presss -- once that briefing habits about 20 minutes from now. a lot of deals are potential deals today. endo international the latest to make a deal in pharmaceuticals, agreeing to buy par billioneutical for$8.05 dollars. there is a potential acquisition
that could happen in the chip industry. altera is in talks with intel acquisition.le altera initially rejected a 54 dollar a share offer from intel last month. of them are moving higher, especially altera, one of the as performers in the s&p 500. then there was essay not agreeing to buy -- ascena retail agreeing to buy ann taylor. it is fired at $47 a share. the ann taylor shares are moving higher today. ascena retail shares have also been on the rise -- actually, they are declining. betty: ann inc. is on the rise. mna monday. julie hyman. now i look at how all the markets are trading at the moment. in europe, jonathan ferro has
what is going on and some of the reaction to the m&a. wrap up this trade-in day in london. finishingion those flat. -- the big gains right here on the dax by over 1%. the shape of the session through the trading day. tradingbacks off of the session, accelerating into the close. down 1% friday, up 1% today. part of this because of a weaker euro. theeuro pulling back from three month high. we are lower by 8/10 of 1%. next stop for this one, as far as the basis concern is tomorrow. key for the currency and the bond market. after a couple days of calm, the
route is back. italian bond yields pushing higher by over 10 basis points towards 2%. ten-year german bonds, yields higher by a couple of basis points. 0.65%. greece is in trouble. the greek financial sector and the likelihood that funding for banks could be cut off -- greek bond yields surging this morning. up 75 basis points on the greek 10 year. analysts say it is a crucial week for week. one is it not? a great question. when is it not a critical week for greece. some of thee other top stories. european regulators come planning and -- preparing and antitrust complaint versus mastercard. eu regulators have warned the way credit card companies agree on the charges is anti-competitive.
alibaba rejecting claims it makes it easy to sell counterfeit luxury goods, despite a lawsuit by the parent company of gucci. complaint was pulled last year after alibaba agreed to fight sales of freight brandon luxury goods. you agree to sell his company after a few months of -- as ceo. -- kraft agreed to be bought by another food company. heinz. heill will get the payout if is fired without cause in two years or if you least because of a salary cut or reduction and his duties. many people plan on supplementing their retirement funds by working way past the age of 65. this plan may not be as sound as it seems. we break down the expectations and the unfortunate truth of
working through retirement. americans want to work well beyond the age of 65 if their bodies and employers allow. a survey shows a be boomer is expecting 17% of their retirement funding to calm from postretirement income. that number jumps to 26% for millenial's. those that end up working find their compensation takes a cut. 75 percent says their early compensation is much less than before. it is health issues that quash the plans of many workers to work into retirement. about 80% of workers retire for reasons out of their control. 40% of those because of health reasons. work into retirement say they like to work. money is nice but so is staying active and having a sense of
purpose. it makes sense. work has a way of becoming more enjoyable when you do it out of choice rather than need. betty: mark crumpton joining me now. we will be together in the next hour. this is fascinating. on health issues, that was surprising. i did not think that would be that high. betty: 80% say it is out of their control. mark: we're talking about people holding on to their jobs because they need health insurance. betty: they need health insurance -- absolutely. the ideal scenario and something wet we encounter one day, is want to work pass retirement because we like to, right? we like the work, the job, being active. mark: we like the company. speaking of retirement, this is great. "mad men" fans bid goodbye to
don draper. yearsries ended its five run. ♪ world toto teach the sing ♪ i love this song. this is my childhood. mark: it really is not. it is my childhood, not yours. but it was one of those things that suck into your head. they had the helicopter pullback shot and everyone is on the hill. it is an iconic piece of advertising. betty: huge. correct me if i am wrong -- i think coke try to re-create this for the modern day but it did
not work. someone tried to. mark: at some point you leave well enough alone. it was iconic and brilliant and should have been left alone. we continue with the advertising team. i will peak with paul sweeney, , we discuss the changing face of advertising and the seismic shift that got caused by social media. advertising is -- betty: can we replicate this again. mark: absolutely. betty: we have 1000 points of light, as they say. mark: singing and clapping. betty: coming up, the ceo of the most valuable company has a message for grads.
betty: tim cook is getting shot advice from carl icahn on what to do with his mound of cash at the company. for himself had advice graduating seniors at george washington university. he challenges them to make a difference and get involved. >> the sidelines are not where you want to live your life. the world needs you in the arena. there are problems that need to be solved. injustices that need to be ended. people that are still being persecuted. diseases still in need of cure. betty: tim higgins was at the speech and joins us from washington. cook drew heavily on history. to be trying
inspirational, motivating the students. how did he do? >> the students seem to be excited. this was the tim cook who has emerged in the last eight months or so, being more socially active, more of a voice for e quality and against injustice. -- ins magazine proud business magazine, he said he was proud to be gay. taking a stand against the indiana law that critics said was against homosexuality. it is a more open apple. and a newis more open tim cook as well. he is always going to become paired, of course, to steve jobs. i cannot tell you how many ceos, business leaders, continue to refer to that stanford speech that jobs said. i want to play part of that.
is limited, so do not waste it living someone else's life. do not be trapped by dogma, which is living by how other people think. do not let the noise of other opinions drown out your inner voice. have the courage to follow your heart and intuition. they somehow already know what you truly want to become. everything else is secondary. betty: is that the speech by which tim cook will always be measured by? is oftenk tim cook times only measured by his predecessor. that is the curse of being tim cook. if you look at the speech yesterday, there were echoes of the jobs -- of steve jobs'believe what can change the world. tim cook was urging these new
grads to find jobs that would allow them to do well. betty: did he say anything worthy of you writing about in terms of apple products? >> he's suggested that if students did not have apple iphones with them that they pass items down theors' aisles so he could recycle that, but other than that -- an interesting side note, he talks how apple products have helped people from the blind to those more access having to technology. also, these iphones now have and now they can take pictures of injustice. we cannot ignore the other news around tim cook, which is carl icahn making some comments to tim cook, writing a letter saying you should buy back more shares. a price target of $240. he also says cc a skinny bundle
markets desk. greek banks are running short on collateral they need to stay alive. how this could force prime minister alexis tsipras to reach a deal with creditors. mark: and the final episode of classic" features a coke ad. we talk about whether that coke ad would still work right now. good afternoon. i'm betty liu, here with mark crumpton. let's talk about what is moving the markets, starting with u.s. equities. yes, another record for the dow and the s&p. the s&p higher by point 2%. commodities --