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tv   Bloomberg Markets  Bloomberg  May 29, 2015 3:00pm-4:01pm EDT

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after it was approached by sigma. alix: an face of scandal. tterbladder wins -- sepp bla wins the election as head of fifa. scarlet: former house speaker dennis hester indicted. the targets he dodged in banking law. hastert indicted. i am scarlet fu, here with alix steel. we want to start with humana, because that is what is moving. there was speculation that cigna might be a potential to acquire, and humana was exploring its sale after it was approached by cigna. this comes as overall we are looking at these kinds of stocks
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, insurance companies, wanting to look for scale, cost-cutting. we have not seen this in the drug space, like with cvs. is this potentially the beginning? scarlet: when you look at how the overall health care sector is doing, it is the best performing in the s&p 500. the move is similar to what we saw in humana, except the game -- games and not held overall. it is back down to losing 0.3%. alix: a negative gdp revision. we did see the dow jones industrial average below it 60 day moving average. we are seeing it downhill triple digits. mike mckee sent this to us in terms of looking at the gdp. barclays sending out a note saying it may not be as bad as you think. we are taking in seasonal revisions, looking at first quarter gdp up 1.7%. analysts not taking the negative
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gdp seriously. scarlet: you wonder if that is being priced them or not. there is so much confusion about what the federal reserve does anyway. as results at this hour -- we mentioned, sepp blatter has won a fifth term as president of the fire. his reelection comes two days after u.s. criminal charges targeted members of his inner circle. prince ali of jordan withdrew. in the first round, blatter app ointed ali. alix: the near -- scarlet: the new york post and financial times reported in dell -- intel is close to a deal to buy a semiconductor maker. rejected an offer from intel, but another chipmaker a deep -- agreed to by million -- $377 billion. that has speculation going. alix: it turns out the first quarter was worse than estimated.
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it actually shrank in the first three months of the year, gdp falling and an annual rate of 0.7%. analysts said the economy had grown slightly. reasons for the slump -- bad winter weather and a strong dollar hurting exports. scarlet: sewing relations between the u.s. and cuba. the state department is officially removing the island from its terrorist watchlist. cuba was designated a state sponsor of terrorism in 1982. countries including syria, iran, and saddam when -- sudan remain on the list. embassies will reopen once officials resolve several remaining points of contention. alix: questions about former house speaker jenness hester -- dennis hastert and a hush money scheme. he agreed to pay $3.5 million to cover up past misconduct, and broke banking rules to do it. nature of the
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alleged misconduct or who the other party was. times" alleges the conduct dates back to his time as a teacher and wrestling coach in illinois. when pimco was looking for a new ceo in 2013, it turned to goldman sachs. a report that gary cohen was on the short list to succeed mohamed el-erian. it never progressed beyond informal conversation. cohn a possible successor to lloyd blankfein. alix: the former home of pop star michael jackson is on sale for to $5 million. the estate once known -- $425 million. jackson bought the property in 1998 and turned it into a combination amusement park and zoo. he stopped visiting after it was searched by police investigating allegations of child molestation. jackson died at the age of 50.
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kind of a creep factor there. scarlet: that might be why they are having trouble selling it. alix: bingo. the biggest outbreak in u.s. history for the bird flu. piper jaffray says 30% of the egg product supply will be wiped out. how that will impact the bottom line of restaurants. scarlet: tesla shut out of the lone star state. alix: an inside jaffrey's global expansion plans. scale backlooking to annual requirements for ethanol in gasoline. it has a few in the ethanol industry up in arms as the obama administration pledges to invest up to $100 million to help expand the use of ethanol in wes, in essence saying, still back the ethanol industry. joining us is longtime ethanol industry veteran randall doyle, ceo of alcorn clean fuel and chairman of the renewable fuels
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association. also with us, alan bjerga and analyst withlicy bloomberg intelligence. thank you for joining us on this very hot topic. randall, you have feet on the ground. you have run an ethanol company. what do you make of the epa proposing a lower ethanol mandate? randall: frankly, i am a little bit upset with the epa. it has taken them 18 months to try to correct the mistake they made in the first place. after 18 months, they really did not get anything done. kind of normal for them, but sad for a lot of us in the industry. rob, you look at energy policy. is there a link to the drop in oil prices? everything we talk about when it comes to energy, fuel, gas seems to be tied in some way to oil prices at the end of last year.
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rob: there is a link between food and fuel prices. really, you are pitting big oil versus big agriculture, and the ethanol industry with this very topic. i would interpret that what you saw today from epa gave a little bit to the oil industry, gave a little bit to the ethanol industry. nobody got everything they wanted. everybody got a little bit of what they wanted. in some way, the epa hit the policy right up the middle of the road. the big question for me, what does it mean for the farmers? allen, wait in on this. i will say 40% of the corn we produce in the u.s. goes to ethanol. what are the farmers going to think about this? this year's crop is expected to go into gas tanks. this is an emotional issue for the agriculture community. corn growers, wheat, soybeans -- they all benefited. you saw corn demand go up and
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prices for other commodities go up as well. it has been a big driver for the past decade. whether corn growers still need this mandate is debatable. there is still export sources. the usda's announcement today help soften the blow a little bit. this is a policy people have been pushing for literally for decades. to see it go back the other direction is a strong political statement that has groups like the corn growers thinking lawsuit. scarlet: lawsuits? alix: you do not want that coming into a 2016 presidential election. scarlet: i want to bring randall into this conversation. annual requirements for ethanol contentious been a regulatory step that the obama administration has had difficulty enforcing. why is that? randall: it is because epa has stepped back from what their standard was in the legislation. if they had followed the standard, i think we would have been fine. i frankly cannot understand how they have taken this step.
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it is clear in the law that if the supply does not exist, epa has the ability to step that requirement down. but the supply for conventional ethanol is definitely here, and greater supply then epa is noting. alix: randall, did this actually affect your business? you can produce whatever you want. margins are pretty good because corn prices are down so much. mandate,, there is a so ethanol will be used. does it really affect you? frankly, the biggest reason ethanol is used as it is the cheapest source of octane available. it is cheaper than making it inside the refinery. that is a big part of what drives the demand. sourcesdeveloping new for advanced biofuels, cellulosic biofuel, to have a program that wavers like this drives investors away. it drives out the dollars that
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are available to develop those new industries. that is probably one of the biggest takeaways. scarlet: how does this play out in presidential elections? alix: you heard potential losses from farmers from alan. rob: every politician has to go through iowa these days and bless the ethanol industry. it is an important part of the presidential election process. in general, you have seen politicians on both sides of the aisle sing praises for the fuel. but it is collocated. you see some changes now. my career be a, ted cruz are actually not out there in front rfs singing its praise like republicans have in the past. you are not going to see action in the current congress. but as you looked for the next presidential election, you could see some support for reform of the program. thank you so much for
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joining us. i should point out we do have ethanol stocks rising today. analysts comment that this is a good thing for ethanol producers. thank you, everyone. we have randall doyle of alcorn clean fuel. also thanks to alan bjerga and rob burnett. outbreakthe bird flu is the biggest in u.s. history, which could mean a big impact on the bottom line. the winners and losers potentially, next. ♪
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alix: welcome back to "the bloomberg market day." scarlet: 45 minutes left to go
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in trading. julie: overall averages have seen volatility. we have seen that in recent days. however, stocks have remained in the red through the day. they were more deeply in the red earlier. they have been bouncing around a little bit. now down zero point 5% across-the-board. i want to look at the best and worst performer as we head toward the close of regular trading this friday. the best performer in the s&p has been gamestop. shares surging after company earnings rose. sales rose. the company upped its forecast. there has been a changing dynamic in the videogame industry between digital and physical games. for now at least, gamestop seems to be straddling it. it sells a lot of used games. that market seems to be holding up. it also is selling some software for the new games. shares are up 7%, big gains. the consider the short interest in gamestop. for that, come to my terminal. the short interest is below peak.
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still, 45 million company shares sold short. that is about 43% of floats. this is the most shorted stock in the s&p 500. that means when the shares are up, you might see the upward move exacerbated by short covering. that could be some of what we are seeing today. on the other end is united rentals, as it was yesterday. this is one of the worst performing stocks, down 7%, falling yesterday after commentary by management that business trends in may were not fantastic. or was analyst commentary on the back of that today that is sending shares lower. if you look at a longer-term -- it a five term chart has done quite well over the past few years. it looks like the two day drop we are seeing could be the worst since 2011 or 2012, depending on where it closes out the session. scarlet: julie hyman with the latest. the short interest -- i love that.
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alix: of course you do. scarlet: the bird flu potentially -- alix: the bird flu potentially could be raising the price of your eggs. we are looking at the worst ever u.s. outbreak. for the 2 million birds have been lost. 10% -- 42 million birds have been lost, and 10% have an egg laying flocks. what industry is going to be affected the most? joining us to discuss is nicole miller reagan, managing director at piper jaffray. thanks for joining us. what food group is going to be impacted the most? is it me going to the grocery store or me going to a restaurant? nicole: there is always impact versus perception. the stocks might not turn the right way. before you and i as consumers, it is going to be at the grocery store, with eggs, not chicken. scarlet: why aren't chicken breasts and chicken thighs being affected the way eggs are?
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nicole: it looks like the flu has been in the egg laying hens. weis twice the last outbreak can measure here, in the 1983-1984 period. it is not in the broiler hands or broiling chickens. that is what goes through the food supply chain. scarlet: how long do something like this last? in the 1980's, prices increased almost 150% for the liquid eggs used as input for consumer products. it took a long time for those prices to regulate. nicole: it took as long as 24 months to get to equilibrium. the initial spike did not last that entire time, but it did take quite a while to get back to a steady-state. scarlet: let's talk about what companies are affected directly. what stands to lose out?
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nicole: from a restaurant perspective, anybody that over indexes to eggs, and mcdonald's, a sonic. but that is immaterial when you consider if it were to get into the chicken population, which again we do not, which is a protein that is much more substantial for restaurant operators. alix: in your recent note, you made the distinction between franchise operated and franchisee operated. why is this relevant when you are dealing with a potential supply crunch? nicole: for investors, if you are concerned about this, stick with the highly franchised models. it could impact their franchisees in the short term. it would have literally zero impact potentially on a consolidated p&l. some of these brands, like usr, dunkin, are 90%
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franchise operated. scarlet: do you see this priced into the shares? the call: we see volatility. look at fiesta, for example. there were concerns with oil in texas. they over indexed there. there are concerns, topical concerns by investors, about chicken. this is not in the broiler population. thathat is a stock continually [indiscernible] scarlet: you mentioned chipotle being potentially at risk. they are planning to open 205 new stores this year. does this have significant impact on their potential to grow? nicole: if it were to happen and we think the probability is very , it is a company owned model, and it is above the 15% threshold in terms of chicken -- in terms of the costs of what is sold basket. these would be short-term in nature and would have no impact
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on their balance sheet, which would therefore have no impact on new unit development. scarlet: thank you so much. the managing director at piper jaffray, giving her take on the bird flu. 42 million birds killed. alix: i am hungry. that is a little wrong. elon musk has struck out in texas for the second time in two years. was unable why tesla to convince lawmakers to allow sales directly to consumers. ♪
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alix: a roadblock for tesla in texas, the company aiming to convince lawmakers it should be allowed to sell its electric cars. this has been an ongoing battle for tesla and its fight to repeal laws. joining us, bloomberg editor at large cory johnson.
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how big a deal is this? the river this was a story when tesla was tussling in germany as well. -- i remember this was a story in germany as well. this is the second biggest car market in america. shut off to tesla -- not insignificant. if you look at all the places where teslas are unable to be sold to people that want to buy a tesla car, not only is it not a few places, but they are populous states like michigan, connecticut, arizona. ,hese are significant places places failing to lift the sales bans. that is limiting the ability to sell tesla. messing with texas? the existing dealers in texas have a lot of power in that state. the bill has failed to get any sort of traction. not only are they going to be unable to sell them, they could not even get the bill introduced
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in both houses in texas, and now they are done for the year. it is the second the auto market, behind california. they spent a lot of money on lobbyists. in the fourth quarter alone, they spent over 150,000 million -- they spent over $150,000 on lobbyists in texas alone. we cannot assume there is no tesla in texas. cory: bears look at this and say, why isn't tesla stock down when they are losing out on the second-biggest market in america, their most important country historically? say,ulls look at this and when the doors finally open in texas, it will be great for them. the problem is that tesla themselves say there are 20 500 people in texas who bought tesla in other states and had them -- 2500 people in texas who bought tesla in other states and had them imported. it is not a virgin market. but it is harder to reach inside
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as the model s gets longer in the tooth. scarlet: how much do they need to change, given that so much of its growth is overseas? cory: overseas has been important to tesla, particularly norway. there have been incentives to buy in norway -- better parking places, fast lanes. but those incentives look like they are going to evaporate. they may have already done so in april. a certain number of electric vehicles were going to get these benefits, and it looks like norway has already imported that many cars. the growth rate for tesla which was boosted by these things has been growing at only 2% sequentially. more cars sold than ever before, but only 2% more. the inability to break into new markets, the disappearing of subsidies in foreign markets -- it have serious impact. thank you so much. cory johnson, "bloomberg west"
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editor at large. scarlet: have you ever seen a tesla? alix: i saw one in park slope. scarlet: you do not see them in new york. i saw one in california and my friend was like, they are dime a dozen here. alix: i have to say goodbye to you now. scarlet: have a great weekend. and let's go rangers. alix: we have a lot coming up. formerert is in -- speaker dennis hastert is in hot water as an alleged lawbreaker. ♪
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alix: let's look at some of the top headlines crossing the bloomberg terminal this afternoon. blatter won -- sepp
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feefth term as president of for. his opponent withdrew before a second-round vote. attere first round, bl 3.pointed him 133-7 the state department is officially removing cuba from its terror watchlist. cuba was designated a state sponsor of terrorism in 1982. u.s. and cuban officials are preparing to reopen embassies in havana and washington once officials result several remaining points of contention. bank of america will pay $30 million to settle claims it failed to comply with laws that protect military members from legal action over unpaid loans. bank of america must pay back 73,000 affected customers. jpmorgan also faces a similar order to clean up its debt collection practices in 2013. the founder of the silk road online drug peddling site is
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facing a long prison sentence. he is appearing before a u.s. judge in new york at this hour. he was convicted of masterminding the cyber-bazaar where anonymous users could buy , computer hacking tools, and false edification. prosecutors say he deserves more than the 20-year minimum sentence. they accuse him of collecting $18 million in bitcoin while running the website. gone through three engines and driven over one million miles. it transported celebrities from jackie onassis to muhammad ali, not to mention countless new yorkers. now janie, the last checker cab in active service in new york city, is up for auction. the 1965 model was officially decommissioned in 1999 and later sold for more than $100,000. they do not expect that price this time around. they estimate a hammer price of
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$10,000 to $50,000, no tip included. those are your latest top stories. coming up in the next half-hour, xiamoi recently unveiled a multilanguage smartphone for india. you will hear from one executive on how they will expand globally. humana shares are spiking on reports they are exploring a sale. we talk about who the potential suitors could be. u.s. gdp shrinking 0.7% in the first quarter. we discuss what this means going forward for the federal reserve. now we turn to greece. the country's government says it can survive another week without defaulting on the international monetary fund. the economic minister says they will be able to put together enough cash to make a payment of $329 million due to the imf on june 5. today major political figures meeting ing-7 germany and sounded off to.
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time is running short. we need to get to this agreement we all want. the process must accelerate. >> it is the right direction, but time is running out. >> it is in everyone's interest for this to be resolved as quickly as possible. there is the possibility june 5 is not the real deadline. but what we know for sure is that if you keep raising the risk of an accident, if you put off the action until whenever the next deadline is. progressing are faster, but not yet fast enough to conclude. everyone needs to be in a -- wants to be in a discussion mode that is sufficiently hurried, concrete, technical, but also political to reach a coming agreement. every day that passes makes the issue more urgent. >> there has been target. there has been progress. it has not been sufficient yet. >> there is still a way to go. there is more progress to be
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done, and some substantial reforms that need to be delivered. a comprehensive set of reforms is absolutely necessary for a good agreement. alix: the clock keeps ticking. finance leaders at the g-7 meeting talking about greece. much more coming up. after the break. ♪
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alix: welcome back to the "bloomberg market day." former maryland governor martin o'malley is comparing for a very busy weekend. the democrat from baltimore is expected to kick off his campaign for the nomination for president. but this presidential cycle -- features a us steamroller. hillary clinton continues to dominate, and some say there is no realistic scenario in which o'malley beats her.
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joining us now is john heilemann. what is the point of o'malley getting in, if hillary clinton is still steamrolling ahead? john: alix, i think there is, you cannot win if you don't run. there is no doubt that in the democratic party there is support for hillary clinton. but there's no doubt a lot of democrats would like to see a competitive contest, and some are democrats further to her left who would be open to a challenger. so you see bernie sanders come into the race, a very unlikely guy in some respects who suddenly has gotten some momentum and is rising in the polls. martin o'malley has a lot of ambition and a pretty impressive track record, especially from the liberal point of view as being governor of maryland and mayor of baltimore. he has wanted to be president for a long time, and i think he feels as though he may be a longshot shot, but it can't hurt him to get into the race and get national experience. if things break the right way,
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maybe he could give her a run for her money. alix: he was an early supporter of hillary clinton in 2008, so what about this is maybe vying vp slot? john: not a lot of people get into the race just for a vp slot. it is a role of the dice. but there is no doubt you improve your profile in the party by running, in some ways. martin o'malley is very good friends with both clintons, so one of the big questions about his race, how tough is he going to be with secretary clinton? how hard is he going to go after her? how negative will he go? so far, he has been pretty gentle. but that might change. alix: another big story is dennis has to, -- hastert, -- this is aing really big deal. what is it doing to the
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republican party? john: i don't want to contradict the premise of the question. is prettynny hastert far out of the past in the republic and party for her not embarrassing and something that is known in the timeframe i he was speaker. it would have been an enormous story. causesmes a story that us to look back on that period during which republicans were trying to impeach president clinton, and they had a lot of personal issues, whether it was speaker gingrich, denny hastert had those issues, it helps recast that era in the way we look back on it historically more than it has relevance for modern-day republican party almost 20 years later. from is this a vendetta what you are talking about? what kind of case is there? apparently, we
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don't know the facts, but apparently there was an attempt to extort money from speaker hastert, and he then took action that may have violated the law. there are deep personal feelings thelved in the case, but question is whether laws were broken or not. we will find out. these are not unserious allegations. all i mean is that the political ramifications are not that great. i don't think a lot of republican candidates for president will have to defend or not defend denny hastert. alix: always great to get your perspective, john heilemann. respect" "with all due tonight. former rnc chair at gillespie will join the politics team tonight. on saturday, the bloomberg des moines register poll will be out tonight. you can check that out at bloomberg.com/politics. now to tech. emily chang sat down with xia vp of the global
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operations. the chinese smartphone maker is getting ready to launch online stores in the u.s. and europe, and they discuss global expansion plans and the future of android. xiamoi, he was vp of android at google. the uis going on live in k, u.s., france, and germany. our was simple. we want to be in these markets. we know we have to start smaller. there is so much work to do. we want people to get acquainted with our brand, to start to feel inspired by the products we are bringing to we picked our best-selling accessories, five of them to start with, and we are bringing them to these markets. many others will follow over time. one of them is mi band, this fitness tracker and sleep monitor device i am wearing. a very simple product, but it
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gets some very important for you. it helps you track your life. it has a battery that can last up to two months. emily: when will you start selling phones in the united states? hugo: i would tell you if i knew. but i don't. don't have a project we are targeting for the u.s. yet. selling phones is a big step up, talking about a very large device which people would buy under place whatever they already have. a huge undertaking, building a smartphone brand. operationally, it is very, gated. you have to have after-sales service, customer support, a huge amount of work. plus, localizing the hardware. antenna design, rf optimization, certification. it is a lot of work. we will work our way to that, but we are not ready yet. emily: are you saying you will someday? hugo: of course. it will take a lot of work,
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probably having a team here to, a sizable team here to manage legal process operationally, certification, ongoing engineering help. it takes some time, but we will work our way. emily: months away, years away? hugo: no less than a year away. alix: that was xiamoi's vice president of global operations with emily chang. you will see the future -- the full interview on "studio 1.0" right here on bloomberg television. some of the top stories crossing the blender terminal at this hour. american express president ed gilligan has died. he became ill on a flight to new york. he began working at the company 35 years ago and was named president in 2013. ed gilligan was 55 years old. the senate will be back in a rare session on sunday. lawmakers face a deadlock in the patriot act controversy. the law will expire monday if
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congress does not renew it. opponents want to stop bulk collection of american phone records. the national security agency bases its program on a clause in the law. chevrolet will build cameros in the usa. they are moving production models from canada to michigan. the plant will add 500 jobs. game seven in the tampa bay-new at madisonis tonight square garden, where scarlet fu will be. they forced a game seven this week with a win over the lightning. the winner will advance to the finals. chicago plays a game seven tomorrow night. hockey bonanza. those are your latest top stories. we have more from "bloomberg market day" coming up right after the break. stay with us. ♪
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♪ alix: time for a look at the markets, 15 minutes before the closing beltre julie hyman joins us with more. we saw ine from what may. the annoying thing, sell in may, go away. julie: it is not just the closing bell on the friday, it is the closing bell for the week and the month. let us start with the week. a down week for the major averages. worst week for the s&p and dow and's mid-april, worse for nasdaq since the first of may. looking at one-week movements in stocks, because we had some volatility today and throughout the week. these numbers have been changing quite a bit. i want to focus on the month for the s&p 500. there, we have seen a gain for of may.h the gain at 1.25%. why is it important? there is the famous saying, "sell in may and go away," and we got good stats from stan
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stovall earlier today. from 1946 to 2014, from may to s&p rose 64% of the time. when there is a gain in may, the index was up 70% of the time. so in may and go away, you might want to buy in may and hold on for this six-month period. something to consider as we look at this period of time. best in with performers for the s&p for the month -- not sure how well you can read it, but i will read them for you. these are the sectors. health care and financials, the best performing sectors. energy and telecom the worst-performing sectors. broadcom and avago are on top of the list, not just for the week, but for the month as well with
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the commendation of those two companies. at the bottom, michael kors and frontier to indications doing the worst we have seen out of all of the s&p stocks for the month. alix: thank you for the lovely wrap up. one particular stock moving is humana, up new 18% per the company is said to be exploited sale. -- exploring a sale. joining us is at hand. what happened? ed: this has been speculated about for a long time in the industry. generally in managed health care services, there have been rumors some thing will happen. toe companies, it will go three. they have been approached. we think they have been approached by cigna, one of the larger rivals. aetna has been mentioned as well. they did what any good company does. they got goldman sachs, and they put themselves on the market solicitting interest.
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alix: talk about the difference between this group and others that have had tremendous m&a. ed: the reason this is attractive, particularly for the buyers i mentioned, is because they have a big exposure to medicare and medicaid. if you are anthem or aetna looking at this, at the moment you have a big exposure to private insurers. you do not have is the huge over5 publishing on medicare or the low-income families and medicaid. veryu get that access quickly. the shares have gone up 20% today. alix: over the last year, up 42%. why now is this a deal, when you see stocks at record highs? ed: good question. we see it in the healthy sector, everything is at record highs, yet everything is being sold. part of it is the m&a premium. everything else
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healtholidating, so the to come please are getting bigger, meaning the insurers have to get bigger to match. the other thing is the formal care act. companies and insurers wanted time to see how that would play out for their business model, how they could price it in accordingly. they let that happen, and now seems to be the moment to strike. you arere humana, if going to sell, what better time to do it? your valuation is sky high. you have a competitive field of buyers. alix: you mentioned five big names in the group. what kind of antitrust issues might you see with a deal, and what potential mergers might we see on this deal? ed: i will answer the second part first. if this goes through with any of the names i mentioned, inevitably we would see a follow-up deal ordeals. there are smaller playoffs -- players that could have a role,
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but between the big guys, if you take united out of it, which at this point is too big to realistically do it, you have one more deal that could take the market down a bit. otherk the sort of follow-on piece is the regulators. people will wait to see what happens with this one, whether it goes through. because of the difference i described, some having very long in the private sector and others with very long public sector exposure, at this time it might not be too tough. alix: what is the market for m&a this year? ed: we are at a record already, early. we had the steel and the huge tech deal yesterday. t $60 billion this year. alix: unreal. good perspective. card sharks are
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descending on las vegas for the world series of poker. what is inside the engine that drives the world's biggest poker tournament? the 46th world series of poker at the rio las vegas hotel and casino. the tournament caught fire in 2003, and espn signed a multimillion -- multi-year deal to broadcast the event with commentart and -- commentary and the hole card camera. suddenly, poker was popular. >> martin jacobson has his breakthrough! esars sold the rights to the world series of poker in a $1 billion deal. since then, the prize pool has gotten bigger, from $21.8
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million in 2003 to $227.7 million last year. but television viewership has pace with that growth. ratings peaked at 3.4 million in s -- a 3.4t year's million in 2004 p last year's peak was a third of that. to keep viewers watching, espn plans more live coverage. there are 11 new events and a three-month break before the finals. the world series of poker says that gives players extra time to line up sponsorships. for caesars, the longer the event lasts, the better. it draws in crowds during the slow summer season, and the world series of poker accounts for 35% of its annual revenue. joins me now. do you play poker? david: i know how to play. i don't play regularly. alix: i play texas hold 'em.
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i kind of laid off, because now i have a baby. online gambling -- david: from 2003 when this took $39 ine guy who won paid an online poker game and made his way through. that made people think, if he can do it, i can do it. that's where you see the real growth, in online poker. we watched people playing sitting down at a table, but millions play the game online. alix: who is sponsoring these players? how big a deal as it for a sponsor? that --these can be david: these can be six-figure deals. casinos have people who want to come to them to play the game for it you are watching them, but on their shirts and hats you see sites advertised that have online poker. alix: is it a great equalizer, because it doesn't matter how is,t you are or your name
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anyone can get in? david: that is what they would like you to think. that is true in certain cases per in many people come in through online poker, and what the world series of poker made people do is think there is possibility, you can learn the game watching it on tv, watch people play it online, then you can become a millionaire. alix: who knows? thanks so much. we have breaking news right now. julie hyman -- julie: this has to do with the trial and sentencing of ross ulbrecht, facing at least 20 years for his involvement over online drug marketplace so crowed. forfeite says he must almost $184 million. more on the sentencing after the headlines. ♪
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alix: we are moments away from the closing bell. this is the "bloomberg market day." i am alix steel.
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you are looking at stocks falling for a second day. the dow finishes in the red. point, below the 50-day moving average, but able to close above that level that a lot of traders pay attention to. health care is the top performing sector in may, that eight out of 10 sectors finished higher in the month of may. finishing not so great, but overall stocks holding up around record highs. we have breaking news we are following for you right now. julie hyman is at the breaking news desk with more. byie: ross ulbricht was told a judge he would have to forfeit $184 million. this was the mastermind behind the silk road online marketplace, which allegedly

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