Skip to main content

tv   Market Makers  Bloomberg  June 22, 2015 8:00am-10:01am EDT

8:00 am
8:01 am
8:02 am
8:03 am
8:04 am
especially it is so young because his gain is so gold matt: you dare to say that. you cannot forget about jack. but you are right. it is energizing and exciting to see a kid this young and
8:05 am
hopefully gives more young people into the game. i personally like to watch the older guys win. it is a game you need to practice. stephanie: this is a huge win for under armour. remember last week, nba finals golden state warriors, he is their guy. tom brady. matt: it is awesome. now world leaders are sounding cautious ahead of today's summit meeting on greece. investors are decidedly optimistic today. great to your notes are moving the most in two months. for more, guy johnson is live in athens with the latest. guy: this morning, everyone was optimistic. they thought everything would work out fine in the market. finance ministers have given the ice bucket treatment.
8:06 am
pouring a lot of cold water and ice over the optimism. they got it too late and therefore cannot do the procedural work they need. where are we? we have to wait and see. a meeting now and later on. we do not know which side to believe. there is a lot of confusion on who is right. are the optimists or pessimist right? we will find out. matt: we talk about deadlines all the time. viewers and of those of us here in the office gets sick of. about it. -- sick of hearing about it. we have reached a moment here with something has to happen. i know that greece got another boost in the emergency liquidity assistance over the weekend and early this morning. the guess we will talk to helped bring greece into the eurozone and said he would take his money out of the bank if he were in
8:07 am
greece. are things really coming to a head here? guy: i think they probably are. at present there is another one next tuesday, so i think we will see more of these over the next few days. whole bunch of these things are scheduled for the next few weeks. another leaders summit. i think today is just the start of what is likely to be week long. the ecb is dishing out money on a daily basis to make sure they take their money out of the greek bank. then we have got the imf deadline coming up. apple bunch of things are still to happen. today's may be just the start of what will be a few days of ups and downs. i think we have got a long way to go. whether or not there is a deal tonight what will the ecb do, we do not know the answer to any of the questions.
8:08 am
we have got to wait and see. after five years, we can be pretty used to that. matt: absolutely. at least he went to athens for this. a tweet out this morning, the picture of someone who parks his for ari in front of greek parliament. probably not a wise decision. stephanie: moving on the five things you need to know this morning, i have got to make us stay on greece. it is the theme of the morning. americans are the biggest foreign holders of great stocks. it does not represent a critical exposure. u.s. traders hold about $5.7 billion worth, basically around the size of dunkin' brands or one u.s. mid-cap the irony of dunkin' brands, investors could end up with donuts. here's the big difference in what we saw a few years ago. i spent the end of last week out in utah.
8:09 am
investors today may be heavily invested in greece but it is not your everyday investor. high yields specifically and they knew what they were getting into. it was buyer beware. these guys may be entering a situation out of a dollar price of 30 and eventually get out 50. we're not talking about, i bought a 96 and want to get out of 98. the people who get in that game know how to. matt: right. neither greek drama nor a potential rise in rates can derail u.s. optimism among stock strategists. they're sticking to the most bullish car -- call on the s&p 500 since 2011. the average is looking for a 5.8% rise by year-end. i found it surprising that with all this drama, the unrest in
8:10 am
russia, the drama in greece, all of the problems with the volatility of oil we are still looking for, we have the most bullish since 2011 p or do take this with a grain of salt. these guys want to bring people into the markets. it is still a 6% gain. stephanie: the geopolitical risks we are facing right now are only getting greater. many investors still say america is still the best of the worst. the pretty girl contest. if you look at what economic growth looks like here, it looks pretty good if you are ignoring the meteors. matt: going up 6% here would still be like going up six to -- 6%. stephanie: correct. julie hyman has number three. julie: focus on one stock that is big in the premarket.
8:11 am
it is up 28% after rejecting a $48 billion stock-based takeover offer from kelsey warren and his energy transfer partner. they hired banks to explore alternatives that undervalued the group. also contingent from the offer from the company is that williams abandonment offer to buy one of its units, which would consolidate and save at costs, and in related news these have battled it out for another acquisition a few years ago, southern union. there is a long history between these companies. matt: i have sick may hear rejecting $47 billion takeover bid over the weekend. the company saying that is inadequate. really looking for a target. we will see if they can get the deal done. stephanie: number five, hedge
8:12 am
funds. new data shows slows to hedge fund -- the category previously attracted almost one third of the money going into actively managed funds. setback counted on the strategy to win that clients. people are getting concerned. we're talking about the geo political risk. it sounds a overall, investors are and should be. matt: that is a high dollar game. you have to be a sophisticated investor. stephanie: when ream -- when we return, we will talk to the man who established the euro in greece. what will happen if greece decides to go? francesco will be joining us next.
8:13 am
8:14 am
8:15 am
8:16 am
stephanie: coming up later today on bloomberg television, you do not realize how important this one is to make. the president and ceo will discuss the company passes 75th anniversary and new expanded menu -- company's 75th anniversary and new expanded member -- menu. there were times -- classic vanilla, maybe a swirl. i grew up in northern new jersey. let me tell you, that very clean on chestnut in new jersey. matt: i grew up in ohio and hit it when ever my parents would allow. time for the top story of the day. momentous rulings are due soon. we may hear some of them in the next couple of hours.
8:17 am
milestone cases involving obamacare, same-sex marriage, lethal injections and justices could also announce whether they leave their cases on abortion. a lot of drama there. the european union made it official it is extending the economic sanctions on russia for another six months. the sessions were imposed over russia's support for rebels in ukraine. they include limit to assess and a ban on certain technologies. the eu is launching a naval operation to stop human traffickers from bringing migrants across the mediterranean to europe on seaworthy boats. more than 100,000 migrants have entered europe by see so far. 2000 died on the journey or are missing. dozens of oats are launched from libya each week. those are your top headlines monday here at the main story continues. stephanie: greece.
8:18 am
europe leaders meet this morning in brussels to try to hammer out . our next guest surely has an inside track aired a man who actually established the euro in greece and defended it during the last crisis back in 2007. joining us from brussels francesco papadia. let's go back in time. when you're were the person who orchestrated bringing greece in, why did it make sense, and did the ecb and you have a full understanding of what financials really work? francesco: with hindsight getting greece in the euro was wrong. it was just wrong. the main responsibility for that is for greece, that cheated on its numbers. to some extent, we are suffering the long-term consequences of that cheating. stephanie: is it not the ecb's's
8:19 am
responsibility to check? francesco: no, surely not. that time, it was the responsibility of euro stocks because euro stuff or deny the power to go and look at the book. they look very deep into the book. in hindsight, it was a mistake. but it was a mistake i would say was entirely greece. matt: will he keep them in the eurozone? a 66% chance if they stay in the euro, now you are saying 50%. has that changed over the weekend? francesco: over the weekend, the climate has improved for a proposal by greece. a relatively favorable welcome by creditors. yes. we are used to the ups and
8:20 am
downs. it is a bit better than 50%. matt: the last time i was watching an interview he couple of months ago, you were saying you do not want to think about what would happen if greece leaves the eu and now we have to think about that what would it be like for greece to step out of the euro? francesco: greece lost about a quarter of its gdp so far. i would not be surprised if it was another 15 or 20% because of from the euro. they are telling me the banks would be bankrupt and further disturbed from what it is now. stephanie: if greece were to leave, what would this mean for other peripheral countries? francesco: that is difficult to
8:21 am
say. it is clear the situation is better than two years ago. national governments are doing things. the euro area is doing things. the vulnerability is much less but of course we do not want to find out whether indeed it will be and you nice. i think it will definitely -- stephanie: we have to leave it there. before we go give us a percentage of what percentage chance to you think it is that greece will leave the euro? francesco: again, i would go back to 35% maybe 45% as of now. stephanie: thank you so much for joining us this morning, francesco papadia former
8:22 am
director general for market operations at the ecb. stay with us. we have more to cover. ♪
8:23 am
8:24 am
8:25 am
stephanie: -- julie: welcome back. it is time now for futures and focus. traded at the most narrow range this month versus the dollar after initial investor optimism. a more subdued wait and see attitude. an emergency summit of european leaders is underway and has yet to produce a solution. joining me now to discuss the next move, the founder of we have seen all of this action in response to greece.
8:26 am
what you think the outcome will be and what do you think the euro will do? >> good morning to first of all from a technical standpoint, you look up here it is significantly higher back into a channel. what happens with greece here greece will probably bail. the only thing holding them in right now is merkel and the rest that is what is holding the whole thing up. the market is priced in the worst-case scenario. if they let the mount, that would put heavy pressure on the euro and push it much lower. i think because of the current ceo words and what mario draghi wants. i think they are very unhappy it is a great spot to sell this to the downside.
8:27 am
i'm looking at 110 and possibly 104. stephanie: it seems as though there would be an 11th hour solution as there has been before in similar situations. what is the upside risk that you get at least a temporary pop in the euro? >> even if it gets done, i do not see a pop. but i am saying, maybe 116 is your risk the upside, and you want to make sure you are protected. you get a little carried away. a little too far one way and then too far the other. we already seen the agreement that greece will come to an agreement, though a lot of parties involved would not like to see it happen. we have artie priced in that happening. everything points to it. we'll working our way down.
8:28 am
stephanie: thank you so much. we will -- we appreciated and will be watching the euro. stephanie: what else are we looking at? the top stories of the hour. it has made four proposals this month to buy favor apparently will now see if there will be a fifth one. cigna has officially rejected $47 billion takeover offer a prayer the company calls it inadequate and not in the best interest of shareholders. it would have been the biggest takeover ever in the u.s. health insurance industry. meanwhile, the williams company also rejected a takeover bid, this one a $48 billion offer from pipeline billionaire kelsey one. the offer from energy transfer equity undervalued the company. analysts have said there is
8:29 am
likely to be consolidation in the pipeline business. apple learned not to mess with the one and only taylor swift. that is right. apple has her first and earlier decision to not pay royalties during a free trial for its numerous -- new music service. earlier, swift said she would withhold her new album from apple music. swift wrote in a letter, we do not ask you for free iphones. please do not ask us to provide you with our music for no compensation. do not mess with taylor swift. those are the top headlines of the hour. matt: she still will not put her album on their streaming service, even though they said ok, listen, we hear you. we will continue to pay you during the free trial. stephanie: she is also saying you ate pay me enough. i'm taylor swift. matt: for many, it was a tossup
8:30 am
at the box office this weekend. did you see "jurassic world"? stephanie: my children tried to it it was sold out. i have not. matt: we have updates on the big money pulled in next. ♪
8:31 am
8:32 am
8:33 am
stephanie: look at the beautiful washington, d.c. a hazing monday -- a hazy monday morning. i am guessing it is shockingly humid. matt: i wonder how much the scaffolding will stay up. stephanie: when you build the nation's capital on a swamp things are sticky, especially in the summer. the tiger dog is from d.c., my husband, aren't always wanted to move there. he has never taken me there
8:34 am
between the month of may and september. he one-timed did and i got out of the plane and it like i was in an armpit. matt: i still love it. stephanie: i love it too. he's like, yes, finally. moving on, i will give you things to watch this monday morning. the supreme court, right there in the district may release its decisions on momentous rulings in the next two hours. same-sex marriage and the affordable care act. matt: we will get existing home sales numbers from may. the numbers will rebound after april's is declined. stephanie: tonight, the u.s. women's team will face columbia and around 16 of the fifa world cup. matt: i will watch that. i care about it more than she does. i do not care very much.
8:35 am
she is from spain. they won the world cup. the battle at the box office is heating up with competition between universal and disney as exciting as any hollywood drama could get from universal jurassic world, again taking in $120 million in the second week more than $100 million in its second week. we are talking about the u.s. take care. inside out is also taking competition. its latest film, paul sweeney of bloomberg intelligence is all over this story and joins us now. last week, dress world made like half $1 billion. but we're only talking about the u.s. here >> we see a lot more sequels coming back from "jurassic world are come -- world."
8:36 am
stephanie: these are kids movies. my children do not walk out of a movie ever and say that its stock. it is the fact that they went to the movies, they love going. my question to you, paul, is, is that what this is all about? is the fact that movies are moneymakers and it does not matter if julia roberts, denzel washington, george clooney tried for -- trifecta is about eight-year-olds? >> they tend to target the kids. year to date up about 6%, it has been a big franchise spirit we will have another avengers coming out. star wars is coming. get ready for that.
8:37 am
think about that franchises these things they can bring back year after year that drives the box office because they play not only in the u.s., but all over the world. so movies have to play globally, not just in the u.s. matt: by the way "avengers" is marvel owned by disney? and star wars is owned by disney? and "inside out" is owned by disney? wow. >> they went out and bought big franchises, they bought the marvel studios, they bought george lucas's company for star wars. stephanie: we will look back and say bob still star wars? coffee's are multibillion-dollar acquisitions. nobody does it better than disney. they make big movies. they tied in with merchandise.
8:38 am
stephanie: know what else has the theme park in the capability. >> number one is universal studios owned by comcast. what has been the surprise for them has been universal studios and universal parts down in orlando have been huge growers of cash flow. every quarter, comcast says, we have got a great impart this this. is not just disney. stephanie: who is the loser here? collect some of the adult driven movies have a hard time getting made these days. if you are just looking -- they are hard to get made and green let her when they do get may, they are not shown the summer they're not shown the holiday season one people really go to movies. they tend to be other times of the year. stephanie: if i'm kevin costner,
8:39 am
an actor who wants to go the independent route, it works for me, if i'm kevin costner who loves a waterworld, a big-budget studio phone, i am out of luck? >> it is hard to the tom hanks of the rokita tom cruise is coming back with another mission impossible. that is a franchise. but if you have just got a great story, is a little harder to get done today. matt: good movies to see, like in the summertime. stephanie: "whiplash," "birdman?" matt: they are ok. they're just oscar movies. mostly just a u.s. movie. not playing particularly well outside the u.s. a little expectation, but it had an a-list star and a great story.
8:40 am
they are not making those kinds of films anymore. other big studios are not as well. instead of having four or five opportunities across a studio you may have one or two. outside of a proven franchise. stephanie: is ted cruz -- is tom cruise as sellable as he was? matt: he is cool. thanks so much. we will leave it there. stephanie: you think tom cruise is cool? >> i do. i am still in "top gun" mode. stephanie: i do not think he is as cool as he once was. a picture this morning. 21-year-old bambino.
8:41 am
spieth is celebrating. we will have more on that and his u.s. open when. -- win. ♪
8:42 am
8:43 am
8:44 am
stephanie: coming up the next hour, we will be talking about the trend and healthy food labels as a marketing tool. the former vice president and general manager of pepsi-cola. there is optimism that a last-minute solution to the greek drama will be found in analysts are philly the street with calls to the street with calls to euro. julie hyman joins us now with details. what is the street telling us? julie: they have had a lot of time to think about it. it has been going on for so long.
8:45 am
look at the implications for the euro or the lack of implications for the euro, he actually says that, more important than the greece situation now is what the fed is doing. he is not the only one to say that this morning. i have seen other commentary from analyst so on the same lines. whatever asset classier talking about. they say the trajectory of race increases in the united states will have bigger implications for major averages as well as the euro for that matter on what happens with the spirit we he right now, the euro is quite little changed. it is still uncertainty about the outcome of what will be happening in greece. on the other hand, an interesting survey out from barclays saying there is complacency about a potential greek exit. more than half of respondents believe it would only be a small negative for the global markets because greece is small and there are buffers in place. this is also reflected in something we looked at last week. despite what we have seen in
8:46 am
yields in peripheral countries in europe, it has not really happened this time around. there has been a small increase. they also say close the -- close to 30% see the risk of contagion as limited less than 20% believe it will be a big risk for global markets, as opposed to just in europe. interesting commentary. i also wanted to talk about greek banks. a call from goldman sachs this morning highlighting the slight we have seen from the greek banks and the idea that the only thing supporting has been the european lending facility. you can see the national bank of greece rally today on the hopes there will be a last-minute solution. something else analysts have been talking about is that even if there is a last-minute solution and even if you see and even if you see an eventual greek exit, at least we will know what is happening.
8:47 am
at least there will be certainty and at least the situation will be resolved one way or the other and investors can sort of move on and deal with that knowledge. stephanie: is it really a resolution or more that investors will have some sort of information and they can manage? matt: yes. i would say hope for a resolution is in itself optimistic. they still have to make the imf payment in eight days. stephanie: the most we will get is a short-term resolution and all the market wants is to know that greece is not completely exploding summative particles to fly over here that we are forced to face it. they want to know it is good enough so they can continue to invest where everyone is excited about the economy. they just want to know the problem is not mounting and two adjusted today. matt: the run of banks is a pretty positive outcome today. >> there appears to be a runoff
8:48 am
on banks in greece itself matt:. -- itself. matt: thank you very much for that. coming up it might come at a cost to entrepreneurs. ♪
8:49 am
8:50 am
8:51 am
matt: what a nice day to be at work here the u.s. may be a safe haven if you want to keep your job, compared globally, the u.s. ranks the highest on full-time employment. does this, at the detriment of creativity and onto been ownership. for more, we're joined by justin fox, who wrote a couple times last week a couple of interesting pieces. most interesting we think of ourselves as the land of hodgman your ship and innovation and ideas. and yet, we do not have as many
8:52 am
on the noor self-employed workers in these countries. >> there is a difference between self-employed and onto the nor growing a business. but it is dramatic how low the u.s. is worldwide if you compare with other wealthy nations on the percentage of people self-employed. i do not have a great answer. it seems to be a mix of just more advanced economies generally had fewer self-employed people. stephanie: is it also because mom and pop businesses have been squeezed out by big box stores? i take you to one of my favorite films, you've got mail, or meg ryan just round the corner bookstore i mean, hello? >> most dramatic decline is there are not as many independent farmers as years ago. but yes, when you look at self-employment staff come it can be a little bit -- it is the
8:53 am
farmer in a more advanced economy. compared with advanced economies. matt: i noticed a lot the women and men who worked with me would be self-employed but then contract. they were working full-time. they just declare themselves -- in that particular country. it is easier or they get health insurance from the government and they do not need the benefits that come with full-time employment in the u.s. justin: from the company's perspective, if the company is a full-time employee, it is impossible to get rid of them. so what they do is structure these other arrangements. stephanie: did any of the governments, we're talking about
8:54 am
france or the united states, realized the unintended consequences restructuring the way they employ people to protect themselves? they cannot be what the government ever intended? justin: the most dramatic case is the netherlands. matt: it is off the charts basically. just in: it is initially that thing, the traditional full-time job companies did not want to create any more of those. for everybody who is about 50 and younger in the netherlands most people were part of this totally different sort of job market. a lot of part-time jobs staffing firms, stephanie: but it is -- it is important to point that out. many times you point to the netherlands as sort of this fantastic example in terms of family leave benefits, sabbatical that people are offered.
8:55 am
and americans say look, those people are getting a chance to take two months off. except it is a minority of people. no one realizes that. matt: one of the most interesting factoids in your most recent piece is that part-time jobs in the u.s. is anything less than 35 hours, part-time jobs in europe is anything less than 30. they need to continue to move the bar down because they know people are trying to game the system by hiring part-time employees. just in: the flipside is if we were all in france, we would be on vacation now. for the people on vacation. stephanie: if you speak to corporations located -- matt: i feel less sorry for them
8:56 am
than i do for the people on vacation. justin: it is partly maybe that they are too far that everybody has to work 40 hours a week or whatever the norm is. it is a little crazy. france is an example of how to do it wrong. it is also possible to get rid of people. stephanie: what is your biggest surprise? all this research we said what? justin: i can rationalize and come up with reasons for it but it seems weird the u.s. is this place with much less self-employment than other countries. one thing is we have a >> incorporated self-employed professional hiring people. there is still only a couple percentages. matt: interesting stuff to you
8:57 am
can find it on our website to we will take a quick break. ♪
8:58 am
8:59 am
9:00 am
>> live from bloomberg headquarters in new york, this is "market makers." stephanie: welcome back. matt: i am matt miller. erik schatzker is off today. stephanie: he is on vacation in europe and we will talk about your because european finance ministers are meeting right now in brussels. we could hear from them any moment. matt: also, m&a activity in the health care sector. is organic really healthier or just good marketing. we'll talk about that. stephanie: here is a look at the
9:01 am
top stories of the hour. european finance ministers say people are being far too optimistic about expectations of a breakthrough in greece. a greek prime minister came out with a plan just hours before the summit and an end to early retirement. it is impossible to have a final assessment of a greek plan because it arrives so late. russia says the european union is only hurting itself. eu foreign ministers have extended actions against russia for six months because of russia's support for rebels in the ukraine. the russian foreign ministry says the move could cost europe millions of jobs. the sanctions include limits on trade and investment. matt: the next move, we have got breaking news vonnie quinn has it out in the newsroom.
9:02 am
anthem looks to be not changing his offer, but reiterating. >> you said it. rising in the premarket, cigna rejected the proposal saying it was not worthy. a management issue. they could not agree on who was taking over who, and how it would be managed once it is a final deal. reiterating its commitment saying it is generating at least $17 -- by 2018 on top of credence to what they already would make. cigna will have to respond to this. matt: the word reiterate does not work so well in a breaking news cents, but it is a significant development. sigma says no and what they bet, i am sure, it is for them to come back and say, ok, we will give you 204.
9:03 am
we are saying, we will stick with this deal and the board should sit back down and let shareholders decide. >> exactly. there are not too many other players in this space. we should remember they offer this four times. it will be up to them to come up with some kind of response. stephanie: part of the standoff is who gets to run the company after the fact could you have two different ceo boris who do not want to give and that is an issue. matt: we should point out a week ago, it was a smaller bit. they came out with an offer for $175. stephanie: at some point, it becomes so much money that you might say, guess what you can have my business and run this company. so we will see. matt: i am right there with you. i will be there with you.
9:04 am
i am sorry, tiger dog. stephanie: vonnie quinn is like, enough. to europe, where the euro area finance chief still working on a deal in brussels at this hour. there were earlier report and accord was near. it now seems that optimism was overblown. we are waiting for a news conference starting in just a few minutes. that is where hans nichols finds himself right now. what do we expect to hear? it sounds like a tune is chaining over the next -- changing over the next half hour. hans: we expect to get some sort of sense of what the details are in the greek puzzles. it seems the euro finance ministry did not given adequate level of specificity for them to weigh in on it. it was a short meeting the finest -- the prime minister
9:05 am
had. they pledged that they will continue appeared in a way, the fact that this has not ended in name-calling could be a little bit of optimism. heading into it, there is quite a bit of pessimism saying it was not likely to get a deal today there are there simply was not enough detail and what greases posing. now everyone will be waiting for the next meeting in brussels here that will start later and the ash leaders will get together and try to hash out some sort of political deal. we will see how far apart they are. what a lot of finance ministers are saying is a code or is not progress, it will technically be difficult to disperse the funds by june 30. stephanie: i want to take you to the press conference right now where they are taking questions from the audience. take a look. >> first, a general opinion was that it was broad and comprehensive but they really need to look at specific to see
9:06 am
whether it adds up in fiscal terms, whether reforms are comprehensive enough for the recovery to take off again. so you will have to have patience to hear more. in general terms it is a basis to restore the talks now in the next couple of days to get the results. the gentleman over there. >> good afternoon. two questions. the fact that you just mentioned talks about a list of prior action, you normally will do that if you have a real idea there will be an agreement on the ultimate part of an agreement. am i correct in concluding it looks quite promising? secondly could you explain to
9:07 am
me the reactions of the different ministers on the fact that the proposals came late? we were also told they first sent the wrong version of proposals. thanks a lot. >> yes, there were two versions but that is no big problem. one was simply less night and one early this morning. minor changes. they looked very similar to me. the second point, ministers would have liked to have had them earlier so they could also have a personal understanding of what is in them. we always say institutions must look at them first, go through them, try to reach agreements. so this is the next step we will go into very rapidly. all of prior actions, i think it is very important that prior actions tell us exactly what needs to be done. very precisely. it gives the list for greek
9:08 am
governments, of all the measures they have to implement enthronement. you are jumping at the fact that we talked prior actions meeting there is already an agreement. that is not the case. you're going little too fast to we will work very hard in the next couple of days with a few reaching agreements later this week. right there in the middle. stephanie: we are going to take a break. the message is, we will get to that, we have worked to do. from my seat, you knew this was the situation you are in. we have soared to do? come on now. why hasn't this done? matt: they have a hard deadline on june 30. christine lagarde said there would be no grace period. they will be considered in default. i guess they have eight days left here we were all hoping for
9:09 am
a more substantial outcome today. i am not sure we will that what we wanted. stephanie: i do not know. matt: health insurers are riding a wave of consolidation. we have got the latest on deals the efforts between cigna and asked him and whoever wants to buy for billions of dollars. speaking of waves, check this out. 66 surfers rode the world pauses largest surfboard to break the guinness book of world records are the largest numbers to ever write a single board. they waxed it before hand and enjoyed a solid 12 seconds. stephanie: i think it is extraordinary but it is so big. it is sort of like a boat going across. matt: yes there are more of a bull riding. stephanie: we will be back with more. stick with us. ♪
9:10 am
9:11 am
9:12 am
9:13 am
matt: anthem reiterating its $180 share postal sticking to its guns despite satan are rejecting its proposal over the weekend. cigna said the deal is at it and not in the best for shareholders. interesting they come back with the same offer instead of going for a higher bid. >> we have an exchange of letters over the weekend. and the monster by buy cigna. around $47 billion, the second-biggest health insurer in the u.s. they have been talking since last year. not getting anywhere. they took it public saturday afternoon and said hey, let's start doing this. it seems like an effort to pressure cigna's or. cigna rise back and says, no
9:14 am
way. the companies will not get along . you have your own problems. the ceo's's are fighting over who would read this today. it seems like there are a lot of sticking points still to go. anthem is trying to take this thing a little more public and maybe things will turn nasty. stephanie: how much money do they have that they could theoretically spend here? >> they started at 174 per share. the sense we are getting is that this is not over and i'm sure there is room to go higher. right now, we do not have another offer. we are reiterating hey, we are still interested. let's see we could work this out here. matt: it is already a massive immune. the first deal became public a week ago today. before that shares were trading for 140 dollars, basically. they are now willing to offer 284?
9:15 am
>> 184. one of the arguments you have if you are an insurer and someone is trying to talk to you about taking over, the stocks were at a low point around the passage of obamacare 2000 10. they have done nothing but go up here to obamacare has been great business for insurers. if you are a ceo, you get the last five years of performance. you say to yourself, why will i get taken out? this is on the rise for the last years. we are getting competitive, we can buy up small rivals. why do we need to get eaten up by something like anthem? stephanie: is this a ceo who does not want to lose his power? >> we have a little bit of that in this case. i like to compare this to the joint industry. we have big pharmaceutical companies that kabul of smaller by -- smaller companies. these insurers are big companies
9:16 am
that have been around for a long time. it is not like there are new companies now worth $10 million ready to eat not -- these have been around for a long time and they have their own strategy. they are very comfortable saying, we are cigna and we want to try to nail this on our own comic band and grow. it is much more of that going on. stephanie: johnny bush could be an independent advisor. matt: drew armstrong, thank you so much. the shares have more than doubled in a year. if they were to take the offer, 98.". stephanie: we will be back with more in just a few. we're talking gluten-free. no sugar, healthy eating all-natural. they with us. ♪ -- stay with us. ♪
9:17 am
9:18 am
9:19 am
9:20 am
stephanie: food labels are meant to tell us exactly what the food is that we buy. what is inside of it? organic, made with whole grains a good source of fiber and even some of the labels we see in the grocery store. are they truly healthier, or is this just language martyrs thought of to sell more products? michelle greenwald joins us now. during the break, matt was saying, he is a sucker for these kinds of labels. i'm a mother of three kids. assume is that -- as soon as i hear it is grass fed and organic , i assume it is better for my children. without digging into the label, i buy it. michelle: i agree. i would as well. years and years before it was fashionable, why not air on the side of safety. you're never totally sure.
9:21 am
pesticides and hormones additives, preservatives, how can they be great for you? matt: is it all really true? we hear examples of the labeling foods free that, is it just a ploy? some foods are naturally we repair they never had good in them. they throw the label on them and tells rise. michelle: it is true. people who have a severe gluten intolerant, only one out of 133 americans have a severe gluten intolerant spirit for some categories, gluten-free can be 20 or 30% of the sales. for people who are severely allergic and have it worse reactions, they need to know it is gluten-free. legislation has been put into effect to ensure products that saying they are gluten-free really are. stephanie: it doesn't feel like this is a fad? it seems like every third person i dined with today's food and free. four years ago, they were
9:22 am
throwing down pizza with me. michelle: true. if they think they feel better i do not know if it will stay for sure, but some people claim they feel better. why not do it? i do not know if it will stay but on the margin, if you could choose between gluten-free or not, why not pick free? stephanie: they are more expensive. how much healthier are they really? michelle: you will never know unless there are tons of scientific experiments and there are different degrees. the next thing we will talk a lot about, there are a tremendous amount of praise and decide on great. and yet it is just great juice so we think it is natural. more and more, we will find out what is behind a claim. matt: we see the term organic on everything. what does that actually mean? michelle: it means the soil is organic. it is not sprayed with pesticides.
9:23 am
there is a certification process for organic that is meaning all. it is very much less clear for all natural. all natural definition is more fuzzy and less regulated or monitored. stephanie: kraft recently announced it would be moving the orange and yellow dye from macaroni and cheese. will that actually have an impact on how much macaroni and cheese they so? one would argue that tumor who cares about something like that was not buying half macaroni and cheese to begin with. michelle: versus the organic versions, i do think people look at artificial flavors and colors, there is now less of a difference between kraft macaroni and cheese and others. matt: you are a sucker like me. i figured you would come on here and tell us it is always am and we are waste precious pennies at the grocery store at the labels that are so easy to buy or print on food that has not really changed. michelle: i do not think it is a scam depending on what the
9:24 am
certification is. there are different degrees of how regulated they are. i think on the margin, i would rather be safe than sorry, and who knows? stephanie: why are these gml companies fighting more labeling? michelle: because the more stringent you get, the more bad things can come out. it is more expensive for them to produce and they have to raise their prices and then they may lose sales. some are fighting them. others want you there and see because they feel they are really doing the right thing and they will have a competitive advantage. stephanie: there you go. thank you so much. michelle is an advocate associate professor at nyu school of business. we have breaking news. matt: vonnie with the latest. it is a good thing? vonnie: sequential as but the
9:25 am
company. we have seen martha stewart -- thursday, 26% just because there were rumors it was interested. it is not finalized. they signed a definitive merger pact. martha stewart herself has committed long-term to be creative chief. sequential has secured financing from blackstone affiliates. they will pay six dollars -- 6.5 -- $6.15. also, jessica simpson and the modus operandi is to come from -- to create these deals and get partnerships with retailers. they say their portfolio generates $3 billion in sales and they have also risen their shares up.
9:26 am
matt: jessica simpson and martha stewart will be on the same label now. stephanie: the label is so massive that this point, that woman never has to sing another note or sell another son. what don't they sell? vonnie: clothing, plus size assessors, she has set the model all of the other celebrities are going after in those deals. her brand is massive. vonnie: project runway as well. matt: but she does not sell tunafish. the chicken of the sea. i love that show. all right, thank you for the breaking news spirit we continue to follow the deals on m&a monday. stephanie: i think it was fashion stars, and i destined is actually were her label got so big. matt: interesting. a few minutes away from the opening bell, it is 9:27.
9:27 am
bloomberg markets executive editor is here now and what is moving market this morning? >> first thing, i want you to take a look at this chart. this shards shows greek bank deposits versus greek cash. it looks like it is just deposits. greek and deposits have been plunging. last week in particular was a terrible week for the greek banking system. we had all this talk about capital or the first rule is you are not supposed to talk about capital controls. much like fight club. everyone rushes out to the atm and we have another big drop last week. about 6 billion euros worth according to jpmorgan. matt: he said if you are in trees, you'd be taking his money out of the bank. stephanie: if you were in everyday greek citizen, would it make a lot of sense to take your money out? met: what they're
9:28 am
doing is taking money out of greek banks and putting them in the hsbc brands across the street. >> in some cases they're putting it in offshore funds. some are buying luxury cars. the problem is the greek banking system is in a terrible place right now, completely dependent on emergent defunding of the east to be. that will be a big stick the europe will be able to wave at greece. stephanie: i am not willing to start my week on pessimism. what is number two? >> you will not like this. in case you missed it, on friday, we had a black friday situation in china. chinese dots welker the shanghai composite though more than 10% from the p gurley this year. chinese markets are closed today on the mainland's. we are whether they will ever this week. the hong kong index is open and up slightly. we make it a little bit of recovery. that is some optimism.
9:29 am
matt: there is more optimism in number three. stephanie: something in the green. matt: if you want to kick it off a little bit coming few want to start this week on a positive note. if you want to list your spirits, it will be a little cheaper in colorado. classes of has and how you look at it. a survey is out this morning surveying married -- marijuana prices in colorado where it is now legal to buy pot recreationally. business owners in colorado, more than they had expected and friends is, priced at eight, it is now 30 to $45 or 250 $20 last year. matt: i am 41 years old. stephanie: how do we compare that to states where it is not legal? matt: it is probably .5 grams
9:30 am
short. stephanie: it is so much better. i would not know. prices going down. what will that really do for dispensaries? >> a lot of people are still coming to the door spare they are spending $50 now as opposed to a hundred dollars last year. numbers are up. this is a gross industry, no doubt about it. matt: by the way, there is a dual problem for prop prices. the legality of it has prices going in little bit low after the initial search. the strains are so much stronger that most people probably don't need as much because it is so ridiculously strong.
9:31 am
are you finding that in your research? julie: the other industry -- interesting thing is this whole industry built around pot in colorado. there is a great mentioned in the survey about a camp for cannabis where you can go off to cap for a golf and basically go get high. there is blood and breakfast. even if people aren't making money on absolute sales of pot they can make money from rings built around the sales. matt: it is not all about money, isn't it? thank you so much, tracy alloway. stephanie: we have to move on. it is 9:31 and that means the bell has just rung. i want to bring back our senior markets correspondent julie hyman. talk about a different kind of drink green -- green. julie: they are higher which is
9:32 am
a unit of williams which is trading lower. this is all about a joliet rejection. energy transfer made it an offer for williams company. williams companies rejected it. it has been a big consolidator already. the industry has argued in acquisitive. this is one of the lay just -- latest and largest deals. william says that deal is not high enough. at the same time, it is in the process of buying the shares of williams partners that it does not already own. energy transfer wants to stop that process. it is consultative here. speaking a couple katy, what is going on in the health industry is what anthem reiterating its offer of $180 a share for cigna d and that is a deal that cigna was already rejecting.
9:33 am
they said it was too low. it is unclear whether anthem will come back with a higher offer price or if someone else. and because there are a a lot of conversations that are being talked about in the health insurance industry and consolidation in pharma. speaking of deals, the deal that we just learned about the past few moments has been confirmed. martha stewart living being acquired good the servers have fallen because they have risen above the offer price of $6.16 when this deal is for speculating upon. it was a 21% premium. that was the prior close before we learn this deal might be happening. now we are seeing the shares fall back at little bit. you talked that sequential also owned jessica simpson's brand and linens and things in the sneaker-she ran. -- and the sneaker-shoe brand.
9:34 am
matt: a lot of deals going on. julie hyman thank you for that. back to the big story -- greece. guy johnson is in athens. what is the reaction to what we have heard so far? guy: we have heard the head of the eurogroup talk about them floating towards a deal this week. and does not look like we will get a deal overnight, but remember that the leaders still have to meet at 7:00 p.m. brussels time. the banks are now closed. expectations are that they will and the ecb -- will continue to pop out money and the greeks will take it out. this man has they currently join me up on the roof. do you think we get a deal this week? >> we remain confident that we will possibly not have a deal,
9:35 am
but we need a political framework agreement. this is what the meetings of the euro sum it all about this evening. then, we have to work out the details for the eurogroup a finance ministers. guy: what are the details we need to look out for? others want to see greece changed the pension system and the taxes appeared what should we look out for? >> pension as one. we also need an agreement on finances and how long the agreement is going to last and what will be the role of the imf in the future. guy: will greece makes his payments -- it's payments on the 30th? >> it's not going to possible. they do not have the money. guy: what happens when it doesn't make its payment? >> that depends on what happens this evening. if you have a framework agreement and you can work on what you would call a deal in the next couple days, you may
9:36 am
have interim finance that is being released by international creditors. guy: the banks shut down this afternoon. the ecb is not going to manage this by a day by day basis. is that the number taking out by the greek people and can they carry that number out of the greek bank everyday? >> as long as we have that level of uncertainty going forward yes, people will continue. the ecb -- now that is the stage that we have reached. guy: at many of the points were greek has more yeley money -- at many of the points were greek has more yeley money than liquidity, can we chose the system for quite some time? >> this is emergency lending. it has to stop.
9:37 am
people put it under their mattresses. they don't spend it. they may bring it back to the banks, but they need certainly. guy: thank you for stopping by. we're going to wait. there is plenty more still to go this evening. we have another yeley call from the ecb tomorrow. looks like we will be here for a while. the story will run all week. back to you. matt: i heard you got in last night and you spent time in athens previously. has it changed? is it different? bloomberg has a great story of people taking money out of banks and trying to do anything to preserve it. guy: people have been buying cars, high assets. people have been taking it home and stuffing it behind radiators. businesses have been buying all kinds of strange assets around europe. we did a nice piece on one business that is why bonds in
9:38 am
luxembourg -- buying bonds in luxembourg. people are doing all kinds of things. they are trying to find a way to preserve the value of their money. that is what the critical thing is here at the moment. it is carrying on on a daily basis. the amount of money being taken out has to be matched by the ecb. the ecb is almost having to monitor this on an hour by hour basis. matt: thank you so much, guy johnson, a report on the ground in athens. we will look at how looking that airbnb apartment in miami can change how economist measure how the economy is growing. has it screwed everything up? ♪
9:39 am
9:40 am
9:41 am
matt: the rise of the sharing economy is disrupting not only
9:42 am
the way hotels and car companies conduct their business, but it is also disrupting how economist measure u.s. data. josh wright joins us now more and away that disrupts is a bad thing and not a good thing. josh: it could be a good thing in the long run. in the short run, it changes the way we measure economic activity. they could be new forms of economic activity that current statistics are missing. you think about what is going on with airbnb you are sharing your home and car, but you're taking assets that were formerly purely possessions and now putting them to commercial use. in theory, we should see as much investment in building new hotel rooms and taxicabs. that is the first order effect. in the longer run, that should free up capacity to invest in other acid -- assets. matt: i wonder this -- if this changes the way we measure gdp. are we under or overestimating gdp?
9:43 am
josh: we are missing some of the capital expenditures and ways that might grow over time. right now, the sharing economy is estimated at less than .1% of the u.s. economy. that is a very small amount of this point. this activity will only grow over time. one of the things that is interesting as an economist is how this is not just a challenge for one industry, but this model is broadly applicable. we have ridesharing and hotels. now neustar after looking at white-collar jobs. if you are a barbara, you're safe from being outsourced. but now -- stephanie: now remains who are sharing an apartment are going to cut each other save? 's hair? if the sharing economy good for the average consumer because they have more spending money in their pocket? josh: it's a good question on
9:44 am
how it will affect economic inequality. supplemental income make a big difference in the lives. on the other hand, you're taking some -- you can raise rental rates because you're taking some housing stock off the market. there are people who we know you're using properties purely through airbnb. these could otherwise be rented out on a permanent basis to families and communities that need this for the everyday life and not just for tourism. matt: you're not supposed to use your property strictly for airbnb. isn't that a no-no here in new york? josh: it is raising all these questions about what constitutes a rental property and what constitutes an ownership property. what constitutes a contractor? what kind of rights to their hive -- do they have? we had a case from california saying contractors for bloomberg can be considered full employees in the have to have all these methods and rights associated with employee status. we put out a whole brief last
9:45 am
week with a special supplement on the sharing economy. one of the questions we explore their is the fact that we will need new types of hybrid categories. you're not just a contractor or employee. you're going to need a different bundle of rights. there is a new union set up by freelancers working for gawker and they explore these questions. they said we don't necessarily need pension benefits or retirement benefits. what we really need is health care. they are focusing on what they need in the 21st century. stephanie: are these young people who are not thinking about the long-term future when they should be and as saying that they don't need to weigh about it, but actually do. matt: they don't know how much they need to worry about it. josh: you have to have financial education out there. we're looking at questions of what people really need and what kinds of arrangements they really want to have. matt: how can i get the bloomberg brief? do i have to subscribe to the
9:46 am
terminal? josh: we made it public because there was so much thought provoking stuff. stephanie: now let us take you to the headlines of the hour. the talent and taking responsibility for an attack today on afghanistan's parliament. lawmakers were meeting at the time. the moment the attack started was actually caught on video. the gunmen exploded a car brought -- bomb at the entrance and raced inside. they killed all six attackers and 40 people were wounded. patrick drawghi is making an $11 billion bid for a french wireless provider. he wants to buy the third biggest wireless provider in france. the bid comes from a unit of drahi's holding company.
9:47 am
they say the bid is unsolicited and that have absolutely been no talks. they have over 30 million global subscriber. the young superstar jordan spieth does it again. the 21-year-old won the u.s. open this weekend. put him halfway to a grand slam. what you really need to see if this. father's day -- jordan spieth hugging his proud father. i had a chance to put with the one and only 21-year-old superstar. and our company founder, mike bloomberg, after he won the masters in his green jacket. mayor bloomberg, an avid and talented golfer. matt: jordan says he had some talent. stephanie: i actually got on the
9:48 am
first. what is so funny is that is really what won it this weekend for jordan. dustin johnson took three on his last putt. the british open is just three weeks from now. we have not seen anyone win two since 1920 something. matt: 1922. stephanie: you know who has never done anything like this? the one and only tiger woods. matt: he has his own tiger slam. if you do not win them consecutively -- stephanie: you know who is getting slammed here? nike. stephanie: under armour prominently displayed on jordan spieth all. 'ws collar. stephanie: he was always able to maintain the clubs he wanted he
9:49 am
is. that is one of the reasons that he went with ua. matt: when we come back, we will talk about taylor swift and apple. stay with us. ♪
9:50 am
9:51 am
9:52 am
matt: seems taylor swift can even make apple bow down. the pop singer came out over the weekend in a letter to the company saying, she would not allow her new album on its streaming business because apple do not plan on paying artists royalties during a free trial. apple quickly reversed course saying it will now compensate musicians during that three months. the apple senior vp wrote on twitter, "we hear you taylor swift and 80 artists. love, apple." apple music will debut costing users $9.99 a month. stephanie: that is not apple's
9:53 am
only headache. 10 cook and company have retained counsel as litigation involving the recently acquired beats electronics threatens to develop. in a legal filing, founders dr. dre and jimmy eileen have been accused of wrongly pushing out a partner, knowing a deal with apple was bring. -- brewing. paul joins us now with the details. i do not know this guy. anyone who knows beats by draye thinks dr. dre or jimmy iovine. is he the winkle boss brothers of eats?beats?
9:54 am
paul: this guy says he actually built the headphones. dr. dre didn't sit down. he arranged the design and arrange the manufacturers and the distribution. he is the one who got into the stores. and now he wants his share now that turns out the company is worth $3 billion. matt: it is a great story. i believe that dr. dre did not put the headphones to. but the way that dr. dre and jimmy said, they were looking for a contractor to do it for them. paul: this is also a dispute in business. you have someone with valuable is like a property in the form of their connections and you have someone who can actually build something. contracts get drafted and then there is dispute over what the contract mean. iovine and dre say certain
9:55 am
events took place that triggered the change of control clause. matt: and lee signed it. stephanie: a deal like this being successful, of course, lawsuits will ensue. how real is this? how scared should apple be. ? paul: they don't see it as a threat at all. they feel like they can toss the suit out before trial. the real danger is that the fight gets in front of a jury. if a judge decides it in the matter of parts and contract liquids, apple might be at an advantage. if it's gets in front of a jury, is a david versus goliath out of. this guy says i toiled for all the these years and i put all my money and this in these big guys are trying to write me off, injury might go for them. -- a jury might go for them. matt: i have monster headphones. those monster not make beats --
9:56 am
does monster not make beats headphones anymore? paul: yes. beats is making is headphones in china like most people. feeds is now much more than headphones. it is now streaming music and folded into apple music which is a much bigger operation. matt: but mainly the headphones because no one uses that streaming service yet. stephanie: no one should bet against the apple ecosystem. you should read his whole piece. that was paul barrett. ♪
9:57 am
9:58 am
9:59 am
>> good morning. welcome to bloomberg "market day. " >> another emergency meeting is
10:00 am
set to get underway. we will be live in both brussels and at this. -- athens. matt: thanks, but no thanks. the $47 billion bid deeply inadequate and disappointed -- disappointed. olivia: who rules the world? apparently tailless whip. after riding apple, they will pay artist for the new service. ♪ olivia: good morning. i'm olivia sterns. matt: i'm matt miller. lots to cover today, obviously what is going on in greece. the latest existing home sales figures are coming out. let's go to julie hyman for those. julie: also known as sales of


info Stream Only

Uploaded by TV Archive on