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tv   Bloomberg Markets  Bloomberg  June 11, 2015 1:00pm-2:01pm EDT

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21st century fox and handing the title over to his son james. we will talk about what it means for the future of his media empire. matt: fiat chrysler is looking at other potential merger candidates, not just general motors. mark: what can be done to reinvigorate of the middle class -- middle class. hello, i am matt miller. mark: stocks rising today. bolsterings confidence. all of the major averages are in the green. the s&p 500 up a quarter of 1%.
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the dow industrials rising a third of 1%. the nasdaq composite is up fractionally. let's take a look at gold on this thursday. gold is on the decline. gold futures are falling sharply at this hour. look at nymex crude, crude dropping. the international energy agency says that this year's rally is under threat. nymex crude is down one and a half percent at this hour. matt: take a quick look at the bond market and you will see prices up, yields down. the two-year is unchanged. the 10 year trading at 2.42%. taking a look at currencies, little movement. you can see that the u.s. is up.yen trade
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mark: the head of the year p.m. union has a warning for greece, quit playing games in your future with the euro zone. greece is being told to cut a deal with creditors at a meeting next week. >> the day is coming when i'm isaid that someone, the game over. eurogroupcoming, meeting is really crucial. and it should be decisive. we have no issues. mark: the greek prime minister is meeting with officials. officials met through the night with the leaders of germany and france.
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the mayor of paris is watching the talks is great interest. she spoke in this collusive interview with matt winkler in paris about greece possibly leaving the eurozone. to staylly want greece in the eurozone. there is no short-term escalation that would lead us to think they have made competitive devaluations or they would be better off of. i think that from a political and economic point of view, the instability that this would generate in the european area would be extremely negative for everyone. mark: paris is using public investment to create incubators inspired by the united states and silicon valley. you can watch the full interview on matt: banks are lining up for a shot at commercial lending businesses. , capital one, and
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toronto dominion are just a few among the many interested. the businesses have about $40 billion in loans outstanding. they have been selling off the assets of their unit. demand for new airlines keeps airline sales soaring. airlines around the world needs 38,000 new planes in the next 20 years. that is at three and a half percent increase from last year's forecast. two out of every five planes will go to asian airlines. mark: shoppers were back in force in may. retail sales rose 2.4 percent, matching estimates. the big winners included car dealers, clothing, and building materials stores. april sales were revised upward. they only rose 2/10 of 1%. the way has been cleared for chip wilson to sell his stake in the yoga maker. 14% of theughly
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company. wilson claimed that the lululemon had lost its way. they finally agreed that he would not pursue a buyout of the company for at least a year. this enables wilson to sell its stake if he wants. one of the world's best-known media moguls is stepping back. rupert murdoch will give up his position as the ceo of when he first murdoch is 84 years old. a new chief executive will be rupert murdoch's son, james. no word on when this might happen. theolder brother would take role of co-executive chairman. the matter of succession is on the agenda at an upcoming board meeting. that is a look at the top stories we are following at this hour. matt: a changing of the guard at fox. james murdoch replacing his father at a time to be determined. we are joined now.
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let me ask worst, when do you think this will happen? sometime in expect the next year because chase carey who has been running a business and for investors, is a really important character. very important person within the business, he is due to stay on until 2016. it is not clear exactly when this might happen. mark: talk to me about the timing of this, does this come as a surprise? anusha: i think the timing could be surprising, that it has been long flagged. they did elevate the tucson slashed year. the succession has been out there, it has been a succession of one. timing.teresting the results in august, this comes ahead of that. ,nalysts are suggesting maybe they might be downgraded to give
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james the time to get into the role. a lot on the balance sheet. so, that is good. at the conference in july, you all -- you often see them there. matt: it is interesting that chase carey when a longer be in the suite. do you think that is because the murdoch children have historically rebelled against mentors that rupert it's in place for them and chase was essentially his right hand man and james will get his own? what we understand is rupert is trying to re-create a partnership. james, is the ceo, in the same kind of workmanship role that chase had for many years driving this company. matt: he was angry that rupert was meddling too much and wanted
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a break. anousha: chase will be around for a little bit. it is very much went to be a driving strategy. he is not going anywhere. laughlin has spent a lot of time in l.a. and new york. he is very much going to be an active member. run, rupert long murdoch will no longer be running foxnews. tell you how a rally in the pharmaceutical stocks has made top managers at biotech companies some of the highest paid executives in the u.s.. getting readye is to vote on a controversial trade bill. we will have the latest on the chances of success. mark: what can be done to reinvigorate america's middle class? i will be speaking to the author of "america's mojo, lost and found."
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not neednow, mary does an acquisition given everything she has in the table. she said the other day, they have got their own and and a. otherwhich of the automakers look at as they seek a union that will cut costs and not stray too far from their own product line. inh us are david welch detroit who wrote the story and jeff mccracken with us here in .ew york they are not done looking for a merger, they are just moving down from the board level. david: he is trying to get shareholders, particularly low largest editions on every major company shareholder list. if they can't pressure
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mary barra and the board to consider talking with him about some kind of merger. that is going to be a tough one to pull off. that, pretty well on that, kind of going down his list of what other carmakers might be willing to do a deal. there insults flagon, japanese carmakers. it is not a long list and there is no one on that list to jumps out and said, yes, they're going to do this, but that is where he is casting his eyes. mark: they have not given up on the idea of trying to lord g.m. to the table. jeff: i would love to see a provisional investor back at this bill or his plan or maybe someone like an acumen or dan loeb. generally speaking, those guys like to move in and move out quickly. kman, cumen's -- bill that the not work out furry
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well. matt: have you ever seen dish energy work out well, where a smaller company that wants to essentially merge or get taken over puts pressure on shareholders of the rigor boy that is an interested? jeff: no, no, this would be the minnow trying to swallow the whale. moves on to few show, volts wagon, may be onto renault, nissan. matt: volts wagon is a massive company. -- volkswagen is a major company. about -- show makes got makes about four and half million dollars a year. not the kind of gm or vo lkswagen.
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that is why they are kind of further down the list. wagen has them a lot and acquisition work. brands.e bought many they can make these deals work. volkswagen, run audi, as a confederation. they can make these things were pretty well. right now, they have said they're not really interested. why would i buy at the top of the market? why wouldn't i wait until sergio is in deeper trouble and when his company is worthless. matt: mr. murky owning was speaking -- to investors,g they need to spread out the cost. is the entire industry with him? jeff: they came really
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close to putting gm and chrysler together. they saw the fundamental logic five years ago, six years ago before the market came back. withins able headed miss the auto industry, especially when they are at the top of the cycle, when no one wants to admit that they would be better off if they merged with someone else. sergio is trying to make their way past the bull headedness and find a partner who is willing to partner up now. may be done -- maybe they don't need as many cuts. matt: the most recent mergers did not turn out so well. you, i tweetedsk this at you earlier, why a goodt to yoda be candidate for partnership with sergio? they don't have a lot of inspirations -- a lot of operations in europe, he doesn't have a lot in asia. does not like to go out and acquire. they do do partnerships very
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well. they have partnered up with mazda. they have had a partnership with gm. they are not a big acquirer. go into a market and do everything that toyota would and organically. that way that toyota way of manufacturing and engineering and that culture just kind of propagates on his own. it used't might to take cars and put them in the shop and fix them, they want to fix them themselves. so much.nk you stay with us. market day on bloomberg television continues in just a moment.
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mark: thank you for staying with us. us go to olivia sterns with some of the bigger movers on this thursday. olivia: i have three stocks in the green for you. i will start with toll brothers. they were upgraded at credit squeeze. they think the street might be underestimating just how well toll brothers could be doing. they say toll brothers has particular strengths in california where they tend to be a little bit more affluent. they say, more resistant to rising rates. though shares up right up one of the half percent. also what is happening at this hour. they might eat estimates. they have a distribution deal. say drug price is
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moderating. krispy kreme shares are up by the most in two years. krispy kreme results beat analyst estimates. it seems people are in fact eating doughnuts despite the broader trend towards eating more healthfully. they also improving sales because they are adding espresso and smoothie drinks and they are opening a lot more stores. the store count up like 17%. there are now more than 1000 krispy kreme stores worldwide. matt: not close enough to bloomberg news. only at penn station do you get crispy cream. mark: try a vegetable. business is booming for biotech. the biotechnology index has skyrocketed more than fivefold in the past six years compared
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to a doubling in the s&p 500. ceo's are seen their paychecks match or exceeded what -- gets. guys or gals these are getting a huge paycheck but it is kind of a flash in the pan thing because they have to hit the lottery for their values to shoot up and they might come back instantly. >> these are mainly research-driven companies. the values can be rather fleeting. matt: whenever i hear someone getting paid a lot, i like to hear how much. what we talking about? hans bishop, his pay was worth 70 million. he went to about 88 by the end of the year. pharma, ais at cai cancer research company. his pay was worth about 16 when
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it was granted, it is worth 95. mark: this is not an overnight thing. it can take years for them to get to these numbers, right? >> that is right. it depends on how their clinical trials come out of fda approval. matt: go back to that chart. it is a fantastic chart. the oranges what they were granted and the blue is what it was worth after the jump. if something bad happens, that can shrink right down. >> correct. matt: here you see, the huge difference jumps. 2015 fiscal year could and. mark: how long can this continue? >> a couple of factors echoing into this, plenty of look what he the into the market. there is for these companies. the fda has been approving more
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drugs than it has in the past. because of that, a lot of the bigger players have gone up to acquire their technologies. they usually pay a pretty hefty premium. mark: thank you so much. coming up on the bloomberg market day, the battle over trade. the house is getting ready to take a key vote on the trade bill. will it pass? we will head to capitol hill next.
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welcome back to the bloomberg market day. i am mark crumpton here with matt miller. on friday, the house will vote on whether to give the president fast-track trade authority seen as crucial to completing trade deals. matt: many houston regrets are opposed. peter cook is on the hill with the latest.
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the president still looking for votes there. peter: still calling lawmakers. some of the fence sitting democrats are out there. the big problem for the president are members of his own party. expect a majority of house republicans to support this fast-track trade authority when the bill comes to the floor tomorrow. the question is, how made him a join? that could be as many as 20 publicly committed to support the president. he might need more to get to the magic number of 218. there are some fence-sitters web decided not to vote. -- web not decided how they will vote. >> i am leaning against it. on the one hand, i definitely want to lower the tariffs and i want to see us build partnerships and relationships in part of asia but will this do enough to help working people in the united states? fact he's leaning no
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is a one inside to the white house. the president has reason to be encouraged. the speaker of the house, john boehner himself, is encouraged by helping stand. aboutr boehner: this is china out there writing the rules and we stand on the sidelines. our allies will gravitate back towards china, away from us, and away from our workers. peter: one of those rare moments here on the hill, matt and mark, where the speaker and the president are working side by side and at some point, taking aim at democrats. matt: who could decide the outcome? who is the key vote? peter: the key person has got to be nancy pelosi. she spoke to reporters. still would not say how she is going to vote on this. she said you will have to watch her on the floor. if she votes in favor of this, this is a done deal.
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if she votes no, you have to watch the floor. the president, his biggest economic issue of his final time in office. mark: peter, thanks. do you know the last time we co-anchored? matt: january 15, 2009. sully sullenberger. matt: always was a pleasure serving with you, my friend. mark: back at you. have the american consumer taken some time off. after the break, we will discuss how this pickup and purchases plays into middle-class op and now mix. the market day continues in a moment.
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♪ [laughter] mark: welcome back to the bloomberg market day. thank you for staying with us. the greek prime minister alexis
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sippers just spoke to reporters in belgium after a bilateral meeting with the european commission president. here's what he had to say. >> we will keep working in order to come to an agreement. reach working in order to our main differences, especially the differences in our fiscal and financing issue. we are working in order to get an agreement to get an agreement that we will show that greece will recover with social cohesion and viable public debts. mark: the comment comes after the european union president told cyprus to stop maneuvering and decide to -- the european to stopt told tsipras maneuvering and decide to deal.
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the buyer is the private equity firm global infrastructure partners. the price tag, close to 2.7 billion dollars in cash. the companies will form a midstream joint venture called k hess infrastructure partners. new york state has banned fracking outright but texas has prevented it cities from tanning fracking. if ecology that has the saudi's scared but here at home, it is a county by county fight. porter spoke earlier on bloomberg television. michael: this is the biggest economic opportunity that america has for the foreseeable future. this is what is driving whatever little economic growth we have right now. we've got to work through a win-win pathway where we can get this economic benefit while dealing with these legitimate environment will issues. mark: a natural gas extraction project controlled by exxon
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mobil says it is not to blame for a recent rash of small earthquakes. officials told the state agency they believe this occurred naturally. hour, up in the next half the bank of korea policy makers cut interest rates to an unprecedented low as the spread of middle east respiratory syndrome threatens the economic recovery. a massive manhunt is underway in northern new york state for two convicted killers that escape from the maximum security prison. the number of escapees has fallen dramatically since 1983. the new issue of "bloomberg businessweek" is devoted to the issue of what is code. the american consumer missing in action for much of 2015 showed up in force in may. retail sales jumped with broad-based gains in 11 of 13 major categories. in consumers are
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those looking to buy autos as the job markets improve. the enemy is a former partner at goldman sachs and author of the : lostok, "american mojo and found." looking underneath it, there are some real issues. i look at relevant inflation. we have been having moderate inflation for the past few years ,ut the relevant inflation college, health care, those are going up at very spiky rates in the face of flatlining wages. that pressure is something we have to wind a recent excitement, the may performance, consumer, great news. i think that there is still plenty of cause for concern.
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mark: is it because of stagnant wages? raise ourcannot pay way out of this one. we have 4 million high skill jobs that are available and open and ready to be filled in this country and we cannot fill them because we have the skills gap. we will have to create better jobs. the jobs report comes out with such frequency but it leaves that the most important characteristic which is the market value of that job. that would be like the stock exchange day. they did not say whether it would go up or down. they are though wage in tree level jobs. those lack a multiplier affect that you love to see in a new job. suddenly, you need to hire another couple of people to support me. also have anat increase in the living wage? we have the city of los angeles
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taking steps towards that end. would that help solve the problem? peter: we have raised the minimum wage seven time since ronald reagan. about 145 million people working in america today. about 3145 million, million are working at or below the minimum wage. is this something that is helpful, yes. is it necessary, yes, it is necessary? is it sufficient? nowhere near sufficient. mark: what about those who say it is a job killer? peter: it is starting to one particular group that we should be concerned about. imagine everyone in the city of los angeles and then pile on it, everyone in the city of philadelphia. that is how many young people -- 25. the ages of 16-24
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not educated and are not getting training. mark: i'm reminded about what president obama set about opening up relations with cuba. we have been trying it up with 50 years. is that what you are seeing here? why is that old paradigm still being used today? peter: i will give you an example. one area that we have been slow to go on is international trade. outside our borders is 80% of the world's purchasing power, 90% of the world's economic 95 percent of the world's consumers. our market is not enough to sustain the needs of our middle class. serving this
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growing class outside of the united states. mark: how troubling do you find conversation steers towards the middle class, we tend to make it a domestic issue. what would a resurgent global middle class mean? peter: if you look out in the next 10 years, the cdc says that -- the oecd says there will be a billion more members of the world's middle class. who better than america knows how to serve the wants and needs with products and services than the usa? our future, the strength of our middle class is inextricably that globaleding middle class. that is a solution for us. there is a gender issue at play. we are seeing lots of women graduate from college. they are going out with degrees, they are venture capitalist, they are entrepreneurs, they are starting their own businesses. how will a resurgent
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middle-class that is being lifted by females, how will that help change the dynamic? peter: if you look at the way women are behaving. every minute of every day, a woman starts a business. much faster rate than men. most venture capital goes to men and their companies but if you look at how women are preparing themselves, you are right. there are millions more women in college than men today. about half of all graduate programs, women. i think if you're going to look for one of the real factors in rebuilding the middle class, women will be the point of the spear. author ofr kiernan "american mojo: lost and found : restoring our middle class before the world blows by." for joining us. still ahead, the global easing waves continue. the central bank lowers rates as a deadly virus emergence. cutnew zealand central bank
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rates for more conventional reasons. he will get reaction when we return.
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mark: welcome back to the bloomberg market day. the bloomberg senior markets correspondent is standing by. better thane have estimated retail says that could be fueling some of the gains. and we continue to see that. let's take a look at the major averages. we are seen s&p, the dow, and the nasdaq all rally.
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what is leading them higher, we have got telecom, health, utilities. some of the groups that tend to be interest rate sensitive's. down underds come the big winning streak. one of the losing streak for treasury prices. utilities up a little bit more. we do have an interesting call out, oil services. oil prices are lower today. they all had record productions in the month of may. even if prices go higher.
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there is still an oversupply of race. we have seen a collapse of the number of rigs. the pullback in prices over the past year. there is still an oversupply of rigs. that hee concerned would not continue to draw down. pricing will be negatively affected. they are overweighting several stocks. stocks are higher, we want to point out this kind of counterweight. mark: a lot of red hot the screen. let's take a look at the market close in asia and europe. let's begin with my colleague, mark barton. mark: the stock 600 lost more than half its gains after comments from the imf. dampened enthusiasm about an impending deal between greece
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and its creditors. up by look at that come 8%. the biggest gainer in the world. the biggest rise since february as well. the banks.bout look at those games for the three big banks in greece. themove came before comments from the imf. still, massive gains. don't forget, these have fallen 95% since the height of the financial crisis. i wanted to show you the impact of the imf comments on the european stock market. they came in our before the close. toy vowed to step up efforts find a package of reforms and budget fixes to relieve financial aid. the imf says there are major differences. that is exactly when the dax heard the news.
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still up by half of 1%. gainax had its best today in three years, not such a good day for the dax. twol, finished up by consecutive gains after falling by 11 is sent in the proceeding two months. mark: the bank of korea cut rates to a record low as the spread of the middle east respiratory syndrome threatens to dampen their economic recovery. we report on a wave of easing in asia. >> the bank of korea lowered its key interest rate. moreentral bank took in preemptive moves. they warned the virus poses an imminent threat to consumption. decline in exports is exhilarated thanks to a weakening yen. a wave of easing in asia continues. cut interestve,
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rates for the first time in four years. slow growth and low inflation. mark: let's take a look at the top stories crossing the terminal. nba has its issues are most players. now, their uniforms will have the famous solution. they have one and eight year deal to make uniforms for the company. adidas decided not to her new its a grim and with the leak. -- ree-person crew at the adidas has decided not to renew its contract with the league. a three-person crew has reached the space station. there was a failed launch of a russian cargo ship in april. this is nowadays six. this is it a rest, investigators believe a prison employee had agreed to be the getaway driver.
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a main road near the lock disclosed. this is extending into neighboring vermont. scarlet fu joins me now with more on this massive manhunt. scarlett: prison escapes are following. we have the escapes. there it is, attempted escapes. completed escapes is a blue line. they got off the premises. they actually got out of prison. they started going pretty high.
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trending it has been lower. since 2000, there were two or fewer escapes. this pair is to find history. mark: you have another chart which shows that most of the escapees, they were captured within 24 hours. so, this is unusual. scarlet: 60% were back within custody within six hours. almost everyone else's in their cell. one person was on the lamp for all of three days. 2002,pleted escapes since they were all back in their cells. the: this is where you have governors of new york and firman holding a joint press conference and just telling people, this is no joke. i believe that these are not people to be trifled with. scarlet: you cannot track them down.
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they cannot rely on that data. mark: a lot of people have made the shawshank redemption. use power tools. a big week in sports. the blackhawks, tampa bay lightning, nha finals tied at two games apiece. to only give up two goals to the chicago black hawks? scarlet: that is impressive. last five minutes, the sustained fury of tampa bay trying to score. scarlet: they are all about offense. i would argue that their defense is not that strong or as i strong as their offense. whom i to say? mark: game four of the nba finals.
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scarlet: steph needs to step up. mark: the democrats be the republicans for the six straight year. scarlet: i did not realize everyone was keeping score. ark: was talk about something little bit more net be less. scarlet: i don't want to see those guys in baseball uniforms. mark: you like to see them working? scarlet: i think that would be a good thing. betty liu spoke with the ceo of dish tv and we got some excessive comments on him. we will air those in the next hour. mark: that murdoch story will have some legs. thanks a much. stay with us. market day continues in just a moment. much.nks so
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coding, we hear about it all of the time. it runs everything from our cable blocks to atm machines. "bloomberg businessweek" devotes its entire issue to coding. the author of this week's business week article reports. paul: what is code? before we can answer that, we should answer an easier question, what is a computer? a computer is a clock with benefits. same, second the grade math one step at a time. take a signal inputted the did inbox one. take another signal, put it inbox too. combine the signals inbox one and maybe add them together. you, using a pen and paper can
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do anything a computer can do. that speed makes it possible to pull multiple sleights of hand. card tricks on top of card tricks. code is a means of harnessing the computer's power. all of those card tricks. it all starts with words and characters injured into a computer by human using a keyboard. they are riding in a programming language. this is really just a set of rules. it tells you which word you can use to tell the computer what you need it to do. take a look at this code. it is an javascript, a very common language that turns a webpage into software. many webpages are packed.
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what is it matter which you choose? some light which is just match up better with certain problems. -- what does it matter which you choose? some languages just match up better with certain problems. sickl is a great a language. the computer is a clock with benefits. we know you can use a programming lang was to make software. how does that happen question might the computer takes the programming code and read through it, character by character. it leaves behind what the computer scientist might call tokens. once it has tokens, the computer does the digital equivalent of pharaoh in its browse and we are bringing -- and reorganizes things as necessary.
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it is translated into a set of digital grunts call to machine language. become just part of the furniture of your life a. it is software that is which is 10 was on your tv. how do you get money out of an atm? you write code and the computer turns it into software and that can run as many times as you need stop that is the story of code. mark: that is fascinating. check out more on this week's special issue. about why article everyone needs to learn the basics of computer programming.
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. . .
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mark: it is 11:00 a.m. in san francisco, 2:00 p.m. in new york. scarlet: this is "bloomberg market day." we've got reaction from
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dish network ceo charlie ergen on murdoch stepping down. scarlet: and keeping it in the family. will have a view of chevron you won't see anywhere else. ♪ mark: good afternoon from bloomberg world headquarters in new york, this is "bloomberg market day. " i'm mark crumpton. scarlet: and i am scarlet fu. day for the s&p 500, but there are still making questions over the greek debt talk. but there is a big catalyst and a


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