tv Bloomberg Markets Bloomberg July 1, 2015 3:00pm-4:01pm EDT
referendum will go through today. hillary clinton's presidential campaign raises a record $45 million in his first quarter. -- in its first quarter. later this hour, you will be hearing from arianna huffington. she tells us why she decided to stay in the wake of aol being acquired by verizon. scarlet: good afternoon, everyone. alix: let's get straight to the markets. you are seeing a slight rally. steam when lose some the euro group chief came out
and said that there was no ground for further talks. financials are really leading the way. we are seeing a higher yield. aspect to a risk on stocks, even though we are not up that much. scarlet: things have really stabilized over the last few days. alix: goldman sachs came out and -- graded stocks arerline tumbling because of a report that the department is looking into airfares and whether they colluded on keeping prices high. alix: you've got an american, delta, southwest, and united control most of u.s. skies. andlet: did into the doj the government allow that to happen by allowing the different commendations and fewer players? alix: oh, yeah. we are seeing quite a rally
underway when it comes to 10-year yields. it is a risk on day. scarlet: lower prices, higher yields. let's look at the stories making headlines. in greece, prime minister alexis tsipras. he is hoping that a note vote well and the standoff. they call hardens the standoff with creditors hours after making a renewed bid. mr. tsipras: greek women and men, we are at a creek sunday's referendum is not whether the country will remain in the eurozone or not. that is a given and no one can doubt that. on sunday, we choose whether we will accept this specific agreement or seek a more viable solution with the public's approval. i want to reassure the greek people that the government's unwavering intention is to reach
an agreement with its creditors, but with terms that are viable and have potential. alix: meanwhile, angela merkel and wolfgang cho fliss says there will not be more talks on greece after the referendum on sunday. scarlet: saudi arabia's praise says he is giving away $32 billion in the coming year. he said there is no timetable for this donation and his get well benefit muslim and non-muslim countries. he is the world's 20th richest person with $30.5 billion. alix: it is one of the biggest deals of the year. ace limited has agreed to by chubb, which is known for ensuring mansions and guts for $28 billion in cash and stock. evan greenberg will run the combined company. scarlet: the u.s. and cuba have agreed to open embassies in each other's capital.
in the last half-year, the u.s. has removed cuba from its list of state sponsors of terrorism and made it easier for americans to travel to the communist country. president obama making the announcement at the white house. president obama: this is not merely symbolic. we will be able to substantially increase our contacts with the people. we will have more personnel at our embassy and diplomats will have the ability to engage more broadly across the island. that will include the cuban government, civil society, and ordinary cubans who are reaching for a better life. scarlet: the embassies are expected to open on july 20. secretary of state john kerry will go to the embassy to raise the mac and flag. hillary clinton's campaign raised at least $45 million in the first, breaking president obama's old mark. more than 90% of the donations were $100 or less. meanwhile, the government has
released a 3000 pages of mrs. clinton's e-mails from when she was secretary of state. they are the first to be released under the terms of the federal court ruling. apartment prices in manhattan record.a the average sale price of all co-ops and condominiums almost $1.9 million. ago.is up 11% from a year prices are driven by a limited number of properties and strengthen the luxury market. on facebook, it looks like something out of science fiction. when mark zuckerberg was asked where he thought the social network was headed, he said telepathy might be in the cards. at some point in the future, he believes people will be able to think of something and share that with their friends, calling it the oh include ultimate communications technology." scarlet: that is when idea to meet my account. alix: i don't want to think something and then modify it.
those are the top stories at this hour. scarlet: the grateful dead playing in chicago this weekend will wear general admission tickets are listed for at least $11,000 on stubhub. dan matt miller just go to the concert? alix: he did. today is dick costolo's last day at twitter. puerto rico's utility of arts default. details on the deal it made with its creditors. greece is looking on jealously. all that and much more coming up. alix: greek minister alexis sippers called on -- alexis tsipras called on rejecting the deal.
he thinks he is in a negotiation. the partyculation on is, if the great people vote as can go backr and say i've got the people behind me. you need to reschedule our debt. and that strategy in my view is not going to work again as the europeans have already decided what the game is. the economy has contracted by 50%. the people want and to this -- want an end to this and they want relief. i think you it is and you and he felt in this diplomatic a game of chicken he could outfox the europeans. leftheld firm and he is with this about and trying to
get back to the negotiating table next week in a stronger position. reporter: likelihood, this will and in a what about? >> looks like the polls are trending towards a yes vote, grace understand that, if they vote no, they will be out of the eurozone. with thee are unhappy european union, with the creditors. but they don't want to leave the union. greece is one of the poorest countries in the eu. reporter: they want to be a part of something and not be left out on their own, which is what would happen. which begs the question. no, than the chance of them leaving the eurozone is what? rises.probability reporter: to what? r 50%.l ove
the greek government will then have to decide, do we leave the eurozone because they cannot pay their creditors or do we go back on our knees and accept this deal? partyot see the tsipras doing that. it is a hard left party. reporter: if they report yes, is angela merkel much happier? >> i think she is happier and i think it frankly boxes in the greek government. if they vote yes, they are voting yes to should accept the european plan. reporter: we want to stay in the euro. how do you think angela merkel has put her hand? >> i think she has been consistent. have beene greece given chance after chance to get out of the hole that they have done for themselves. she is clearly saying she wants greece to stay in the eurozone.
she has been a good leader in bringing the european central bank, the imf,. and others. reporter: is the damage done already? >> i think this is a catastrophe for greece. what has happened to them in the last five years is what happened to the united states and the great depression. young people are leaving because they don't see a future. the great greek businesses are going offshore. it is very tragic. it did not have to happen. i think part of the problem is this is a young government. most of them have never been in power before. it's hard left. i think they felt they could leverage and intimidate the european union and it didn't work. scarlet: that was betty liu speaking with nicholas burns. up, more e-mails from hillary clinton's term as secretary of state were quietly released last night, revealing just how she handled several
scarlet: welcome back. go straight too bloomberg a sense you. remy, you are starting with a couple of food stocks. remy: that's right. they are causing waves in the restaurant industry. want to take you to bloom and brands. 33%.is an upside of about it is up by 1.4%. --o, buffalo wild wings first of all, outback steakhouse. in they improvement
value proposition, more traffic as well as growing residents with millenial's. buffalo wild wings is initiating a new goldman sachs. it is $195. right now, it is trading at only $160. it is also up nearly 2%. they are talking about favorable wing price and reward. , tempered seeley is getting a better nicely. up nearly 2.5%. web bush added the mattress maker to its best ideas list for casting higher sales after 2015. these now outperform. mccormick & company, the spice maker, is down the most in more than a year. it is down nearly 2%. its tax rate is going to get bumped up from 21% to 29%.
they are saying that cost savings and a plan to sell off assets will be key drivers of conagra's comeback. alix: breaking news for you. , court concerning greece thate dijsselbleom saying it is too soon to consider a new bailout ask. tsipras. letter to mr. scarlet: if you look at how the euro is trading, no real impact. it was lower than the dollar all day long. -- 1.1050.10 alix: now putting the ball back
ras'sppers's -- in tsipa court. scarlet: they're wealthy any negotiations until after the referendum takes this on sunday. we will keep you up-to-date on any headlines that come from greece. some surprising sales figures from the big automakers is morning. toyota saying it's june auto sales up 1.4%. sales down 3% in june, surprising analysts who had predicted a rise. gm cut its rental fleet by 45%. ford coming out worse than expected as well, rising just 1.5% in its sales. sales for the f series pickup truck actually dropped the most 9%. 13%.n sales up
alix: macy's is the latest to cut ties with donald trump. the department store chain is trump brands. of hisut out a statement own saying it was his decision and he has never been happy about macy's making it ties in china. airnbc says it will not miss universe and will find a new host for "the up this." -- "the apprentice." alix: a drug scandal prompted a top female executive to step down in toyota. she was the first foreign executive to move to japan. she was arrested two weeks ago. a package addressed to her and
labeled necklaces actually contained oxycodone. those are your top stories this hour. you can't do that. scarlet: that is why she got the heave ho. this is a blow to corporate japan at toyota and to empower more women in management ranks. alix: this is so unfortunate that it happened to be a woman in that role. you do not want it to be any executive, but because we are struggling to see so many women in the driver seat, that is just another black eye. scarlet: we hope that toyota will replace her with another capable woman. 3000 pages of hillary clinton e-mails for you to thumb through. alix: tuesday, the state department released e-mails that she wrote during obama's first term. the mills give us a small glimpse into her professional life.
john, you read them are part of them. what was the one thing that you walk away with? john: first of all, i want to say that i have all my oxycodone shipped to me in boxes labeled teddy bears. [laughter] alix: if only she had called you. john: the clinton e-mails thus far are fascinating and hilarious reading in some ways. hillary clinton asking at one point, when she heard on the radio, that there was a cabinet meeting at the white house whether she could come. she did not know anything about it. there wasn't a cabinet meeting that they. she is very image-conscious and there is a lot of lovely workaday things. wearing warm socks to bed. there is not a lot of news in these e-mails. there is a lot of workplace color. if you want to see what she communicates with her colleagues
and employs about, this is a window into that. some of this is funny and some of it is humdrum. nothing scandalous and nothing super newsworthy. "veep": is it more like or more like "west wing"? "veep." is more like alix: she raise almost $45 million in the first quarter. john: a lot of hard dollars. you've got jeb bush who will raise a lot more than that in the first half of the year for his super pac where donations are unrestricted. so they are apples and oranges when you compare them. it is a big hall. not unexpended -- not unexpected.
she will probably exceed barack obama in this campaign. she set a record but everyone expected her to set a record, especially when she first came out of the gate. she was going to go and tap all of her friends on wall street and hollywood and silicon valley. we will see how she does in the second and third quarters. i don't think anybody expects hillary clinton to be short of funds if she is the democratic nominee. scarlet: thank you so much. 5:00 p.m. eastern, "with all the respect." still ahead -- the grateful dead drew about 80,000 dead last weekend at the california show.
alix: you just went to a concert. how much did you spend? matt: all told, probably about a grand on tickets and rental car, merchandise. that is not so bad for two days of shows, including everything you need to make their show work. scarlet: how long was the show? matt: some of the longer shows you will see a live music.
it is for five hours. alix: and there is no opening act or anything? matt: no. i have seen steve miller open for the dead. i have seen staying open for the dead. this time, they did it with all the surviving members. you can see train zero behind bell. bill was kind of doing this the whole time, blocking out tray. "unfortunately" a lot. they were finally letting tray rake out on sunday. this week in a chicago, these are the shows they announced initially. i hope that they let tray -- that they open up his amp a little bit and really let him go. by the way, all of the hotel
rooms around santa clara were sold out. everything in chicago have been sold out since they announced. all the tickets in chicago will go for grand a ticket to start for a good seat. alix: do they sound good? matt: phil has never been a good singer. without exception, they sound amazing. these guys are in their 70's. the whole audience has grown older. the shakedown street, the parking lot did not have mushrooms and brownies for sale. scarlet: thank you so much. alix: we will be right back.
the head of un's atomic agency will travel to iran tomorrow to meet the nation's president and top security official. this is as diplomats tried to finalize a deal. john kerry says the tops are on track. iranwill lift sanctions if agrees not to build an atomic weapon. at&t has cleared a major hurdle. federal antitrust realtors have cleared the deal without any conditions. the $48 million transaction still needs approval from the fcc. if approved, it will create the company.est pay-tv and questions about the makers of drugs and who prescribed them. andgovernment says drug medical device companies paid out $6.5 billion last year. the money went to doctors and teaching hospitals. much of it was used to entertain doctors are pay them for non-research consulting. one of newficial --
york city's most iconic landmarks, nbc 30 rockefeller center, is now the comcast building. the new sign adds the company's logo and nbc peacock symbol to the city sideline -- the city skyline. and the u.s. women's soccer team has made it to the world cup. the u.s. faces either england or japan in sunday's final. the u.s. lost to japan in the final four years ago. those are your top stories at this hour. coming up, puerto rico --ngraded power you table power utility has made a payment. but it still has to restructure its debt load. arianna huffington joins betty liu. we will get her insight on the media landscape, politics, and
much more. plus, we will look ahead at tomorrow's jobs report. all that and more coming up on the bloomberg market day. jack is back. today is jack dorsey's day -- first day at twitter. what can we expect to see with the company back in its cofounders hands? cory johnson from san francisco, how different is the company now than when dorsey left? how might he change at this time? corey: jack dorsey taking the helm from dick costolo. it gives us a chance to really look at the business. what is working, what isn't working, and the way they can squeeze more out of the business. at the end of the day, the most important number might not be the number of users or the
different ways people can access twitter or the different things they do on twitter. but how they are able to squeeze more juice out of the lemon, how they can get more dollars out of the customer for this business. this is the number i will be looking at here, the percentage of increase we have seen from their business in terms of seeing the rise in the customer value. yes, it has been improving. year-over-year last quarter, i think it was 43% growth. i believe that's less than 70. they want to grow that faster. it want to grow the value customers faster, especially because of the growth of customers. alix: what do they need to do to actually tackle that? i was looking at twitter stock and it is off the lows of the session, but still a rough day. cory: i don't think twitter is
training based on the leadership changes in the last seven hours. but i think more importantly, what twitter has to do is have some efficacy so that advertisers say, hey, my add-on twitter are working better. so i will pull money from other media. they want to see more efficacy were they can use the data they were long promised and so they can understand who they are and use the data to better target advertisers so that advertisers can get to they want. alix: it's also a new day in chicago. the city is implementing a cloud tax. what is that? long had this lease law, non-owned property lease law. the stuff that you didn't own, you would still have to pay taxes on as you pay your lease on a regular basis. the chicago courts have decided to add things like netflix and spotify to users who are leasing
music. so that is going into effect as of today. also businesses that are using cloud-based services, like amazon services or even lexis-nexis, or businesses that don't own a product but are leasing their product will have to pay a tax on those things. so they have figured out that they wanted to apply that to cloud-based services. alix: fascinating. i love it when you tell me something that i don't know. our editor at large cory johnson in san francisco. you can watch more of cory johnson on bloomberg west. rated utilityjunk is making a full $415 million bond payment. but the island is still under pressure to restructure its debt. jim reynolds, founder and ceo of
loop capital markets is why puerto rico can't pay its debts. jim: puerto rico has significant structural problems. one, they have a declining population. they are leaving. the skilled folks are leaving. the middle class folks are leaving. there's no jobs. they have a shrinking economy. it will probably be negative. there is no commerce. it is to america -- it is -- it is tourists and almost nothing else. no matter what they did, like agrees, they cannot pay. earlier, laura keller spoke with stephanie ruhle and mark crumpton about how puerto rico got into this situation to begin with. laura: they over borrowed. it is a lot about inefficiencies as well. you do not have a lot of great efficiency in the government and you had a lot of people leaving the island for the mainland.
stephanie: if you were one of the investors, was this a positive or negative? don't you want to keep pushing them that they are so desperate so they have to take whatever terms you offer? laura: right. but if you push them too hard, even a court cannot get you money if there is no money left. and get thex things economy going again, the people can get their money back. mark: what about the muni market? some people have said that puerto rico is quite isolated. we have no this is a problem for a while. but i think you will see other municipalities, have similar issues. they will say we want to do this different here. mark: there has been a lot of talk. why not just declare bankruptcy? stephanie: they can't, can they? laura: they are not allowed to
axis chapter nine. chuck schumer support behind a new bill yesterday. the white house has mentioned it. we might get to see where some people on capitol hill are going to start talking about this bill and actually allow puerto rico public corporations to file for bankruptcy. but that wouldn't include [indiscernible] kellerhat was laura speaking with stephanie ruhle and mark crumpton. coming up, what is in store for the huffington post under its new parent company verizon? we will ask arianna huffington.
alix: welcome back to the bloomberg market day. we are 15 minutes before the closing bell. ramy, you look at the s&p. too soon to us for another bailout. ramy: it looks like investors do not really care what is happening over there. let's put the numbers of the major markets. the s&p is up half a percent. the dow is up 6/10 of 1%. the nasdaq is the lowest of them but still eking out gains, 4/10 of 1%. greece,on for this is but also some good data coming out of the u.s. the iso manufacturing index as well as some better employment number's. i want to take you into the imap function. i basically want to show you that come out of all of the sectors, nine of 10 sectors are in the green led by financials. that is one .2% higher.
-- 1.2% higher. but energy is lower by 1.5%. we have also been following the bloomberg airline index this afternoon. 2.3 is down by about percent. it had been down by as much as 4.7% after being up by 1.7%. a lot of volatility today. this is the fallout from opening an antitrust investigation. they are looking into whether airlines colluded on the price of tickets. oil is also down today. 4.3%, now down about trading at about 56.68. a report shows that crude stockpiles climbed to 2.4 million barrels. bloomberg analysts did project that. finally a look at the treasuries, they are dropping for the second day in a row. the 10-year yield is up to a
2.42%. after the greek prime minister saying he is willing to accept bailout talks. alix: definitely more of a risk on field with the exception of oil. thank you so much. now a look at some of our top stories making headlines. the u.s. is suing to block electrolux's takeover of ge's appliance business. it would eliminate come position between companies in the market for cooking appliances. so far, no word from ge on the lawsuit. u.s. construction gained in may. a big jump in nonresidential way.cts led the the commerce department says total construction spending increased 8/10 of 1% in may. that follows in advance of 2.1% in april. the affordable care act or obamacare is attracting younger
and healthier people. a study from express scripts says people signed up this year running for years younger than those enrolled enjoying 14. -- drug costs were 36% lower than those enrolled in 2014. and drug costs were 36% lower. betty liu is joined by ariana huffington. betty: thank you so much. be here witht to arianna huffington, the founder of "huffington post." you just finished this panel where you talked about unplugging, unplugging all your devices and thriving in this hectic world. before we get to all of that, arianna, let's talk about your greek heritage and what is going on in greece. how do you feel about it? arianna: it is really a terrible moment for greece.
troika hasel the made it really difficult to find a solution. i think their reluctance to toegotiate the terms, recognize the incredible amount of suffering inflicted on the greek people, 25% of the gdp has been lost over the last few years. it's not as if greece has not done what the troika has asked. there is no economic recovery. without economic recovery, it is nearly impossible to achieve what the troika wants. betty: that the troika says it is not enough and there has to be more pain. they also feel like they are dealing with a government that is run by -- for lack of a better word -- amateurs and politics. arianna: they government is in place because of the amount of pain and suffering inflicted on the greek people. 50% youth unemployment. there is a huge brain drain.
the smartest young people have. left degrees which will have long-term consequences. greece is a democracy. if you impose that amount of suffering, there will be democratic consequences. and they will go to their feet. you see it in france where you have a right wing party gaining power. you see what is happening in greece. , the truth is that is facing tooeece bad solutions. but one has more hope. business, areour you happy with this aol-verizon deal? arianna: yes. i took some time to talk with the verizon leadership. i am really happy. before i read up for another four years, we will enjoy --
p for another four years, we will enjoy independence. we are going to go 50/50 video. i am excited that they are very committed to our growth. betty: how much is verizon going to commit financially? toanna: i'm not going disclose the exact amount, but they are very committed, both in financially but also in offering their platforms, which is significant. betty: i know you signed on for form our years. but in four years, does that necessarily mean huffington post stays in the aol-verizon world? arianna: at the moment, there is absolutely no indication that verizon wants to sell huffington post. it has just been finalized. we are all very excited about what we can build together.
post-post-24 -- hu ff-post 24. there is a lot of top leadership, not just in the public and news, but also in the hole area of lifestyle and how to live our lives with less stress. the more fulfillment, the more creativity, the whole area i have written about. betty: what would you call that vertical? arianna: you have very small nichols like that. ceos have seen the connection between those programs and the bottom line. we have an entire dedication section on sleep. we have seen the impact that
sleep deprivation is having on people's health. betty: i know that firsthand, by the way. [laughter] arianna: i should talk with you. i am a very good sleep coach. reimaginingn of our our relationship with technology. obvious like him a technology is very important, but we have to learn how to disconnect. how do you manage not to have your hair in your face? [laughter] betty: it has been bolted on by hairspray. there is lots of content. you guys are a content hub. but everybody is getting into the videogame. everybody is looking for cpm. eventually, those rates -- and they are -- are coming down. arianna: it is not a zero sum game. there will be many existing players entering more seriously in the video game. there will be new players, many
people that you and i have never heard of who know you're an aspen we will be talking about. this world is changing so fast. that is not a problem at all. for me, this is not a zero-some game. when you talk about cpm, i think the biggest success for us is that we made the advertising and an entire sections sponsored by brands. goldman sachs sponsored a section for the third year now on -- we are calling it "what's working." it is all about what they are doing for their 10,000 female entrepreneurs. that is a significant investment. betty: do you have figures? arianna: definitely. and we have a lot of brands investing like that. johnson & johnson has a dedicated section on maternal health.
of our spot leadership in the area, brands want to be on the huffington post, around things that basically connect them with the public in a deeper way. betty: we are going to leave it there. we will try to save our hairstyles for the rest of the afternoon and back to you. alix: betty liu live with arianna huffington. much more ahead in the windy aspen ideas festival, including a sitdown interview with tom fanning. that is coming up in the next hour. still ahead on the bloomberg market today, a job reports preview. the labor department will release its report a day early.
u.s. companies hired more workers in june, the most in six months. 237,000 jobs were added last month. we have that all-important jobs report coming out tomorrow morning. joining me with a look ahead is michael mckee. it's always a good day for me with mike onset. we had the better i us and. mike: people are talking about the fact that we could see a better than forecast result. 230,000 was the forecast last month. now revising the forecast after today's numbers. the feeling on wall street is that the whisper will be higher than that. no interruption in the progress that the labor market has made in the last month. alix: the big issue will be wage inflation. you have the eci rising faster than average hourly earnings. how does it make sense and what are you looking for tomorrow?
mike: it is different measures for different things. the eci also measures bonuses, versus hourly wages. there is a new indicator that tries to combine all that. it says the median increase has been 3.3%, which is stronger than either one. we're looking for more evidence that would support the idea that wages are going up. two janet yellen, that means that labor markets are getting tighter, closer to needing to raise rates. -- : mike: we did see the big slowdown in gdp in the first quarter but not as big and jobs. eventually, we will see gdp revised higher, closer to the jobs numbers. an particular if we get a stronger jobs report tomorrow, people will buy into that theory in the bit more. alix: what is the risk that the fed will have to raise rates at a faster pace than we expect if good numbers keep coming?
mike: then it's going to happen. the fed has told us, phil dudley ,"lking "the financial times we will have to go. but based on this forecast, they will not have to go very far. a lot of water will cross under the bridge before they have to do anything. alix: coming up next, joe weisenthal joins me for "what you missed." talk with a chief international economist at deutsche bank. ♪
alix: u.s. stocks ended slightly higher as optimism of the end of the greek debt crisis faded and they look ahead to tomorrow's jobs report and oil is down in more than three months. joe: the question is, what did you miss? the clock is ticking. we have the key deadlines that you may have missed. alix: and trying to predict tomorrow's big jobs number. it's joe's favorite day of the month. joe: and we'll talk to southern company and how they're transitioning to renewable energy. alix: first, we again, of course, with the markets. stocks are finishing higher in two days. recovering from the terrible slide that we saw earlier in the week as well. and this all after you had the debt financial minister saying there's no ground for further