tv Bloomberg Markets Bloomberg June 4, 2015 12:00pm-1:01pm EDT
betty: welcome to the bloomberg market day. the imf puts pressure on the fed, urging to delay interest rates until next year. how unusual is this? pimm: t-mobile may have found a suitor. after a reportng dish network is in talks to acquire the fourth-largest wireless provider. latest tok perry the join the crowded gop race. he will make his announcement and just about 30 minutes. we will bring it to you live. ♪ pimm: good afternoon. i am pimm fox. the markets. at
what a wild ride it has been so far this morning. you can see the s&p pretty volatile. at the beginning at 10:00 when christine lagarde started to make her comments about the fed, you saw the s&p and the dow, all of the equity markets shoot up. the bond market starts to rise as well. all of the volatility creeping into other assets like oil. oil prices moving not just based on what we heard from the imf and others, but also saudi arabia and the possibility that they may not cut back on production. that has accrued a tanking today. taking a look at the bond market here. you can see this is the 10 year yield. this is the price rising. a big rally in the bond market. the 10-year 2.34.
30-year at 3.07. the euro versus the dollar. taking a look at the dollar yen. the pound sterling giving up a little bit. getting right to some of the top stories crossing the bloomberg terminal. the international monetary fund is calling on the federal reserve to hold off from raising interest rates until the first half of 2016. the imf cut the growth forecast or the second time in three months as international monetary fund also said the dollar was moderately overvalued and would gets much if it longer. here is the imf managing director christine lagarde. u.s. policyigher rates could result in financial stability consequences that go well beyond the u.s. orders. in weighing these risks, we think there is a case for
waiting to raise rates until there are more tangible sign of weight or price inflation than are currently evident. words, we believe that a rate hike would be better off in early 2016. just last month janet yellen says she expects to raise interest rate this year. if the united states economy needs are forecast. a couple of key economic reports before we get the may jobs report. the government said last week fewer americans apply for unemployment benefits. the total number of people getting jobless insurance smallest in the more than 14 years. meanwhile, the bloomberg consumer confidence -- comfort index fell to a six-month low. the higher cost of gasoline may be the culprit.
the average price is the average since december 1. also, waiting to see who will make the next move in the greece bailout talks. the greek prime minister plans to huddle with his inner circle after another high-level summit failed to resolve the stalemate. avert needs the money to default. rejecting proposals that would call for higher taxes and cuts and 10 --pension payments. they: regulators doing over fake takeover bid for avon. the sec has filed suit against the firm. avon shares rose as much as 20% right after the fake filing that reported to show a bid for three times a month stock rice and had everybody puzzled as to what happened. the house of representatives unlike the to vote on fast track trade bill until the week after next according to republican eight. let-track authority would president obama is that congress
with the proposed deal that could ratify or reject but not change. house speaker john boehner hopes to get the bill on the floor in the next few weeks. a new bond offering could push above eight -- 45 billion dollars. the company borrowing $1.5 billion more this week. analyst said that apple that at the end of the fourth quarter was nearly $410 billion. sitting on cash and investments worth $194 billion. subway following chipotles lead, going natural. removing artificial flavors and preservatives from the restaurant in north america. it will affect challenge -- salads, soups and cookies even. subway is facing stiffer competition from fast casual chains-era bread and should pull it. the.of them tout he of their menus.
shares of t-mobile and dish rising. a report out the companies are in merger talks. the wall street journal said a number of issues have still to be resolved, but not the price. john ledger would grind the combined company. charlie ergen would become the chairman. he has like an acquisition that would put a $50 billion stockpile of airwaves to work. the sort of eye candy guaranteed to stop pedestrians debt in their tracks. a 1998 mclaren f-1 sports car on display in new york. look at the wings. the auction house estimate when it goes up for sale in august, the mclaren may bring in $12 million. buy it and you will join an exclusive club. laurent, designer ralph owned the same model. if you are a car buff, you are salivating.
coming up in the next half hour, showtime follows hbo's lead launching a standalone stream service. what is the future of tv? we will talk to the showtime ceo. pimm: jeb bush may be on the verge of making his financial -- presidential campaign official. he has been tweeting about a major announcement scheduled for june 15. there is no such mystery with former texas governor rick perry . he will officially announce his candidacy than the hour, hoping for a better outcome than his 2012 it. we will bring you his announcement live. now continuing with our top story, the warning. international monetary chief fund says the economy would be better off with a rate hike in early 2016. christine: we believe the trade-off between starting to disinflationking and having to return to lower
risk ofhigher than the slightly above 2% inflation going forward. betty: in the past hour, bloomberg view columnist mohamed el-erian weighed in on the imf message. >> it is very unusual for the imf to be so specific index listed about a policy action, and it was today. it told the fed it should wait until 26, even though the data remains very fluid. betty: it is unusual. joining us is bloomberg intel is just chief u.s. economist carl riccadonna. whose jaws were dropping? >> it was pretty amazing. since she spoke, if you look at futures contract and what long traders are pricing in, they had since brought up expectations for when the fed will hike, at
least for december. basically the bond market is saying thanks. they do not think the fed will necessarily comply. pimm: is this all about public perception and of publicity move on the part of the international monetary fund? as i think it is a source. for the two metal this directly into the fed affairs is directly is unprecedented. they do provide economic i did to a lot of economies, but never to this amount of specificity for the u.s.. it just complicate the work or janet yellen. she will not be kowtowed to imf breaking -- recommendations. the committee will do what they see best in the interest of the economy. i still think rate hikes in the second half of the year remain a possibility. janet yellen is a very collegial bed chairperson and i think she will handle this the way she handles all sorts of things with the committee.
advice, ixcellent will take it into consideration, and then do her own thing. christine lagarde said the fomc should remain data independent. is greater signs of wage or price inflation currently evident. we just heard from janet yellen a few weeks ago, and she is data dependent. they both look at the same data and say they are fated dependent on the so why does one come to one can vision and the other the other? >> they should have said they are imf dependent. be data dependent, but do what i say. a very absurd situation. followellen is going to the data. zeroed funds rate is at effectively. this is a crisis era we. in an economy very close to full employment, you cannot steer the
.oat looking at only inflation as is the case with the ecb, and a big reason why they were slow to react when the global -- the global financial crisis was starting in the fall back in 2011. highlights incredible paranoia among all policymakers .orldwide for with one central banks makes a move caps off this is plaguing all of them at night. the imf has been particularly vocal about flight of capital. that has been huge. if you think about it, the amount of dollar denominated debt issued by the emerging-market nations has soared to what, $9 trillion since 2007? all of a sudden strengthening dollar, you could see this incredible move to flight. pimm: that is what mohamed el-erian saying about global perspective. well done. betty: you know you want to
not a done deal. a city boat passed overwhelmingly but another is because the first one was not unanimous. endorses the ordinance. hsbc says it is paying $43 million to settle a money laundering investigation. geneva prosecutors have been looking at the swiss subsidiary and the probe unfolded after former employee leak a list of thousands of success that -- suspected attack evaders to french authorities in 2008. it has improved practices to keep the bank from evading taxes or launder money. oracle cofounder larry ellison sense -- that he wants to return 10 is to prominence in the united states and promise to do just that. the open1 billion for and the tennis guard worthy event where it is played.
he ascends invested another $100 million in the southern california facility. more than we -- more than attend this year's open. a number that rivals the draw of wimbledon 10 in london. next up, the co-ceo mark hurd are plotting an all new american tennis tour. those are the top stories at this hour. betty: that is interesting. power houses. americas cup, and america's tennis cup. showtime not going to be outdone by anything, not even tennis. thewill take on hbo in likes of amazon prime and the likes of. selling a standalone subscription that begins in july. betty: the service will cost $10.99 per month. with us to talk about this is chairman cshowtime
-- chairman and ceo. -- matt blanc. how did you come up with a price point? > we started out looking at the current business model, when you adjust for the business models and packages, that is about what businesses were paying on average through the business provider for at&t u-verse or verizon fires. additionally, when you look at the over-the-top video business, and we like the field of that number and from of values and point where we were with the competition. betty: the competition being hbo now which launched a couple weeks ago at $14.99. do you think that was overpriced ? >> we will see. when you look at online video, you do not see a lot of the $13.99 price.
we want to start out with a price we think will attract the most consumers. would you explain how something like this would work. let's say you have an apple tv at home. everything from crunchy roll to crackle. how do you negotiate to get the icon high up in the offering, and also, is this going to be a thing where you have to go to the computer and type in the code? >> you have to log on first. go to the app and follow the directions. then you can start watching. withan start watching iphone, ipad. one thing that distinguishes us in addition to the 16-1800 dollars of on-demand product, to live the available.
we think that is a big benefit, particularly in the sports area. can you give us an idea of setting up the cost of something like this. you have to do all of that. there has to be a backlog. >> the back office payment processing is apple. you are subscribing through apple. we have had a development or print -- for four years now that develops are asked. it develop showtime on demand originally. now showtime anytime, tv several at for the past years. we have had a good deal of experience in developing the apps. each time you have a new provider, you have to integrate. you did not just do that one time. betty: what about the pay-tv subscribers right now who are
subscribing to showtime through verizon fires and cable operators? will you cannibalize those viewers? >> we don't think so. there are 10 million people who have a broadband only subscription. they do not take video services. an important note on the comcast earnings. they now have more broadband videoibers than they do subscribers. that is a growing opportunity. so broadbandion or subscribers who are not taking video. why not go to them with a different video offer at a good pricing where they can buy showtime for $10 99 and? i tend to take a little bit acre view. we have nearly 24 million subscribers. justink of the opportunity generally in the video universe to grow showtime. i do not think it comes through cannibalization.
not through cannibalization, but do you think eventually paid tv, the model will go away? >> i really don't. i am not sure what eventually in ourbut probably not professional lifetime. i think a lot of people are very happy getting all of the channels, sitting down and watching television, and the technology keeps improving. how can it not? how can it not cut into pay-tv model? ? >> is it going away or just fairly stable. thee people who offer you service are also broadband providers. it becomes a very important part of their offering. are you really going to distinguish in the future? do people really care where it is coming from or do they care about the consumer interface? one thing about the apps as they are great consumer interfaces. we think they compete very well
with the way people use the internet in general. that is important. impacthow does this showtime? thinking about dish and the news they might by t-mobile. i know showtime is on link tv. it will be. i suspect it will be at some point. how does this over-the-top offering, how does that impact or is impacted by something like dish acquiring? >> dish, in addition to the very successful backyard dish business now has a gigantic wireless device is less. --hink ultimately what would would we really distinguish between tablets, phones, television screen in some way, shape or form? it makes them a big potential distributor as the
technology continues to evolve. -- y: does organ need this ergen need this? cannot speak to that. he is an aggressive guy. betty: a standalone guy right now. >> he is, and awfully smart. betty: thank you so much. i am a showtime fan, i have to say. homeland. >> it begins in july with the launch of rate don't abandon -- ray donovan and masters of sex. pimm: still ahead, jeb bush inches closer to his presidential run, saying he will make a big announcement june 15. more on the growing gop presidential field next. ♪
betty: this is the bloomberg market day. i am betty liu. straight to the breaking news desk where julie hyman has the latest. the sec and avon products and ptg capital. julie: that is right. filed with the sec and 14. then, it quickly became apparent this was a bogus offer. as a rugged -- resident of bulgaria. this is the stock of the day. this is the latest here. thank you so much, julie. way say goodbye to you, pimm. betty: much more ahead. ♪
betty: welcome back to the bloomberg market day. diameter is urging the fed to keep interest rates on hold for now. the report on the u.s. economy, the imf said the fed should delay raising rates until the first half of next year. ratesine lagarde said should stay where they are until there are more signs of inflation. very unusual to weigh in. marking the fifth anniversary of uber creation, the ceo talking candidly about the company mistakes. they know they have made enemies, but said it is all part of the growing process. can come off of this -- as a fierce advocate for uber, people have said that. i also realize some people have word toifferent a describe me. i will be the first to admit i'm
am not perfect, and neither is this company. like everyone else, we make the stakes, but we are passionate about learning from them. service used in 58 countries. in ukraine the new round of fighting threatening at three year-long cease-fire. assian rebels have attacked town in the eastern part of the country. at least five were killed and two dozen wounded. rebels say they were responding to an assault by ukrainian forces. a new video game hall of fame has first class of conduct these. the table gameg, that introduced millions to electronic games at local bars. five others are being honored, doom, super mario brothers, tetris and world of warcraft. though video game hall of fame in rochester, new york.
coming up in the first half hour, rick carey hold -- will make it official. running for presidential nomination. we will take you live to texas where he will be's leaking. christine lagarde fires out a warning to the fed, don't raise rates until next year. is the fed or janet yellen going to listen? laying down rules for bitcoin. becoming the first to do so. awaiting rick, perry's official entrance into the 2015 -- 2016 presidential race. making that announcement in an airport just outside dallas. the second try for the governor who was an unsuccessful candidate and the longest-serving governor in texas history. jeb bushncement, as announces he is a special announcement june 15. joining us now to talk about the ever growing gop field, now 10
declared candidates, ron ceo of christie strategy, former adviser to president george bush, dick cheney and many other prominent republicans. so with us, peter cook. the obvious question, does the kerry have any chance, and if he does not, why is he doing it again? peter: a much bigger hill for him to climb. he ran in 2012 and did not do all that well. the famous moment on the age and downhill from there. at one point he was the front runner. 28% in the polls. 14 years as texas governor, the story he could tell there. there is still a chance for rick harry to distinguish himself this time around. much more difficult than last time around. an opportunity to question it. can he somehow show he is a more
polished, more ready candidate they wrote atty: story about what does rick harry have and what does he lack? what he is got they noted, among many things, strong job creation in texas, a social conservative, true governing experience, governing texas for so long, but what does he lack? --t is his guest week point is his biggest weak point? weakthink his biggest point, how will he distinguish himself. how does he break through the pack and say notwithstanding the fact that i have been governor for 14 years, how am i different? i think what he will point to is the united states air force. he will be surrounded by a couple of army veterans.
marcus luttrell from famous survivor. i think he will say i am the one not only with a strong governor and strong economic statement strong military background that we will need to move america forward. beat in theould he republican field easily? peter: you have 10 candidates now, you could have 20. the reality is he needs to move up out of the second tier. that is where he is right now. that is sort of an optimistic assessment of where he is. barely registered in new hampshire. focusing a lot of his attention in iowa. i think that is really didn't -- where you really need to watch his campaign. he is made a big investment there. if he can do well in iowa, i think maybe just maybe rick perry can do well in the race. it will be a challenge for him. who gave money to
him last time around have artie given money to other people. it is a challenge for him but a deep field and that gives everyone an opportunity. turn to jebt to bush. showing that tweet he issued today. he said there will be an announced it june 15. another bloomberg politics called i thought was right interesting because the big overhang -- the big overhang will be the legacy. 57% said it would be mostly good for jeb bush to turn to his for advice.rge w compare that to hillary clinton where 83% said it would be mostly good for her to go to bill for advice. what do you make of that? >> i think there are a lot of people still very concerned about why george bush took america to war in the aftermath of iraq and afghanistan, but i think the majority of the
american people think it is a strength that you have a brother or spouse that has been president of the united states. they have the experience of the unique pressure of being president. can jeb bush win the state that romney lost? peter: i think you can. part of it is you will have a whole bunch of money to get his message out there. bush has unique challenges. one of them being a bush name. as we justice test, that could be a positive to some extent. he will have to showcase himself in certain states where right now it will be a challenge. he will have his opportunity more so in iowa early on. on,e does not do well early he is in trouble. he could make the case that order could decide the race for
jeb bush altogether. he could. his home state. how does jeb bush do better than mitt romney? i think you fund-raising juggernaut. given his brother and father he will be able to tap into. he will have the staff, resources and the ability to get on the air and travel around. if the infrastructure is in place and message takes full, i think he has a chance to do better. i think it is critical for governor bush, particularly in iowa and new hampshire, he has to be number one or number two. if he goes down to south carolina wounded, not doing well as expected, i think the candidacy would be in serious trouble. betty: what do you make of the fact that there are 10 candidates? what do the party elders think of how crowded it is already getting.
this is a repeat of 2012 and 2008. >> i think it is a good thing we have a crowded race. what the american people are seeing is a very diverse and white crowd with a great deal of experience. i think the american people will have the ability to hear the candidates, see what the vision is moving forward and make an informed choice. you can just imagine how challenging it will be to stay off of the debate stage. it will be interesting to raise their stature in the national polls, perhaps to the detriment of where they and with individuals dates. may have just sent money nationally to get in the polls that they can be on the debate stage. betty: peter cook, thank you. thank you to ron christie, ceo of ron christie strategies. still ahead, we are waiting rick
day. most of the main european indices down. the ftse down by 1.3%. of 1%. down by only half it did not start off if i am beingell honest. we have been watching what is been happening with the bond markets pretty closely. lower firstthe gap thing this morning. we came into trade on a fairly negative story. we are off the highs. this is around the point of which the imf came up to make the comments. christine lagarde in the press conference. we have faded a little bit since then. greece will remain front and center. everyone watching closely to see whether or not we get the imf on payment. from thehis afternoon great prime minister of stating he will update the greek parliament tomorrow at around 6:00 athens time. around 11:00 in the morning new york time. all i definitely on greece tomorrow.
the bond market continues to be of this.in all stop taking a significant hit and all of this. tomorrow once again all about greece. -- stocks taking a significant hit in all of this. betty: all about greece. a fund-raising frenzy. alibaba raising well over one billion in stock sales. >> alibaba pictures, the film unit controlled by jack ma, announced it would sell up to 4.2 billion new shares. it will deploy this eufinance potential deals. about 400 companies between china and hong kong that have raised $140 billion and find, including ipos just this year. quite something. betty: i want to go to julie hyman for some of the big
stories of the market day. talking about dish and t-mobile, but sprint a big mover. some people called him the last two guys at the bar, t-mobile and dish. i do not know what that makes print. down for .2%. -- i don't know what that makes sprint. of the worst performers is chesapeake energy. saying this stock should be a short, severely distressed over , and call-4 years into question any equity value at all. shares down 3%. not only firm recommending a short. if you look at the short interest, the third highest in the s&p 500. betty: thank you so much. is just taking the podium now to announce his 2016 run.
we go to mark halperin focusing on this. says he a run where he has learned a lot from the first time. i want to bring my colleague in. leave aside rick perry's problems from the first run, which we will talk about, what does he have going for him in this campaigned? >> the best retail politician in the field. he has a record to talk about. a lot of people think he exaggerates it, but is a record. longest-serving record -- longest-serving governor. stand by. we will listen to governor perry and talk about this on the backside. and a bighe line speech for him today. quick thank you very much. thank you very much. i was born five years after the end of a global war that killed more than 60 million people.
i am the son of a veteran of the war. he flew 35 missions over war-torn europe. [applause] dad returned home and married mom, they started a life together. they were farmers. a timere raised during of great hardship and had little expectation beyond living in peace, putting a roof over our s and foods on -- food on the table. center of my universe. for use we had an outhouse. hed us on the back porch in the number two washtub. my closehand sewed
until i went off to college. i attended paint creek school grades 1-12. football. man was a member of the boy scout troop already eight, became an eagle scout [applause] i went off to texas a&m. [applause] i got my degree in animal science. i was proud to wear the uniform of our country as an air force officer and aircraft commander. [applause] serving, i returned home. i returned home to the rolling lanes and that big old sky of tot texas, and i returned farming. you know, there is no person on earth more optimistic than a dry land cotton farmer. [laughter] we always know a good rain is
just around the corner. no matter how long you been learned one values my family's cotton farm are timeless. the dignity of work, the integrity of your word, responsibility to community, the unbreakable bonds of family and duty to country -- these are enduring values. not the product of some ideally , but a touchdown of american life in our small town. in our largest cities, our booming suburbs. i have seen american life. i have seen it from the red dirt of the west texas cotton field, from a campus in college station, texas, from the elevated view of a c-130
cockpits and the governor's office of the text is capital -- texas capital. [applause] i had the great rib which to serve a rural community in the texas legislature, and i let the world's 12 largest economy [applause] . know that america has its. change butced great what it means to be an american has never changed. we are the only nation in the world founded on the idea that all are created equal, that they are endowed by their creator with certain unalienable rights, that among these are life, liberty, and the pursuit of happiness. [applause]
our rights come from god, not from government. [applause] are not the subject of government, but instead government is subject to the people. always been the case that there has been a social compact between one generation of americans and the next. to pass along an inheritance of a stronger country full of greater promise possibility, and that social compact, it has been .rotected at great sacrifice it was never more clear to me then when i took my father to the american cemetery that overlooks the bluffs at omaha beach. on that peaceful windswept
setting their lies 9000 grav pairs ofding 45 brothers, 43 of whom are buried side-by-side. a father and a son, two sons of the president. they all traded their future four hours in a final act of loving sacrifice. [applause] that american cemetery, it is no accident that each hedge of -- headstone faces west. over the atlantic they defended. it struck me as i stood in the midst of the euros. that they look upon us in silent we must askd that
y ofelves, are we worth t their sacrifice? [applause] , we are at the end of an era of failed leadership. we have been led a a divider who has sliced and diced the electorate, hitting american against american political purposes. six years into this so-called recovery, and our economy is barely growing. this winter it actually got smaller. our economic slowdown is not inevitable, it just happens to be the direct result of bad economic policy. [applause] president tax and regulatory
policy have lambs the door shut of opportunity for the average american who is trying to climb the economic ladder, resigning the middle class to stagnant wages, personal debt, deferred dreams. weakness at home has led to week -- wekaness at home has led to weakness abroad. house lawshite construct an alternate universe. where the nature of the enemy cannot be acknowledged or fear of causing offense. for the world's largest state monster of terrorism, the islamic republic of iran can be trusted to lead up to a new year agreement. decision has done more
harm than the president's withdrawal of american troops from iraq. let no one be mistaken, leaders of both parties have made grave mistakes in our life, but in january of 2009 when barack obama became commander in chief, iraq had been largely pacified. america had won the war, but our president failed to secure the peace. [applause] callous it seems now. a city once secured with american blood are now being taken by americans enemy all because of a campaign slogan. warw during vietnam, a where politicians did not keep faith with the sacrifices and courage of america's fighting
men and women. where men went into combat without the full support of their civilian commanders. to see it happen again 40 years because of political gamesmanship and dishonesty is a national disgrace. [applause] [laughter] but my friends, we are a resilient country. you think about who we are. we have been through a civil war. we have been through two more we eveneat depression, made it through jimmy carter, we will make it through the obama years. we will do this. [applause] you know, the fundamental nature of this country is our people down.a knock -- knocked
we dust ourselves off and we move forward. and we will do it again. applause]d i want to share some important truths with my fellow americans starting with this truth, we do not have to settle for a world in chaos and america who shrinks from its responsibility. we do not have to apologize for an american sf socialism -- exceptionalism or values. we do not have to accept the slow growth that leaves behind a middle class. it leaves millions of americans out of work. we do not have to settle for crumbling bureaucracies that target tax ayers and harm our veterans. we do not have to resign ourselves to death, decay and slow growth. we have the power to make things new and again. to project america's strength again, and get our economy going
to restore hope, real hope. real hope to forgotten americans . there are millions of middle-class families who are just given up hope of getting ahead. millions of workers out there who have given up hope of finding a job. and it is time for a reset. time to reset the relationship between government and citizens. [applause] you ink of the arrogance of washington, d.c., representing its wealth as some deacon of wisdom with policies that are smothering this vast land with no regard to what makes each state and community unique. that is just wrong. we need to return power to the -- freedom tog the individual.
today our citizens and entrepreneurs are burdened by overregulation and this unspeakable that, and that is not just as physical might moral failure. i want to speak to the just a moment. , passed one debt from our generation to yours -- this is breaking of the social --pact, and you deserve more you deserve better. i am offering a responsible plan to fix the entitlement system and to stop this theft from your generation. [cheers and applause] who -- those,cans i might add, forgotten americans -- drowning in personal debt, working for harder wages that do not keep up with the rising cost of living, i am here to say i