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tv   Bloomberg Markets  Bloomberg  March 21, 2016 10:00am-12:01pm EDT

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this is labor markets on bloomberg television. ♪ vonnie: we will take you from new york to london to silicon valley. here is a we're watching. stepping down, the news coming this week after he returns from medical leave. bill ackerman, will join the board. the market is loving what it sees. a half-hour hour into the trading day in the united dates, fluctuating after five the -- five weeks of gains. european shares were trading today. energy stock slides. vonnie: apple getting ready to
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announce its new smaller iphone. the move comes one day before the apple and the sei meet in court. let's head straight to the market desk where julie hyman has been keeping and i. julie: breaking economic data. an annual pace of 5.0 8 million. it had the sales of previously down homes in 2007, coming at a three-month low. sales lower than the most pessimistic forecast in the survey of economists. it probably will not affect the large portion of trading. the company is coming out in
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making a number of announcements , saying ceo mike pearson will be stepping down today until his placement is found killed -- found. be ono of valeant will board. to tender been asked his resignation and it sounds that he has not yet done so. valeant said the company's placed onptroller administrative leave. all of that said, shares right , aroundhigher by 13% quite a bit this morning, mostly rising after the opening bell. we had in tracking the story over the past year, a number of different challenges accounting statements and questions about the relationship with the former its jugs.r of
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questions from congress about pricing as well. vonnie: it is fascinating. in the market, -- >> as we just looked out at, not much movement at all but there is a lot going on. major averages are little changed. taking the bid over the one from , total value now, cash and stock deal. that topped the 78 dollar bid. you can see the shares rising above the price. quickly, a paint deal as well. $9.3 billion. the world press's largest maker when the deal is done. a lot is going on on the individual company level. mark: the spread -- prospect of
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, most of the industry groups on the stoxx 600 today up as much as 10%. gas,ll see oil and tracking the price of oil. up by 3% today. -- as it seeks to bolster its position amid a wave of consolidation in the industry. this is according to people familiar with the matter. it approached its partner. assetompany are about purchases or joint ventures after monsanto and china joined together. it is left to flurry a potential
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takeover between the likes of these three companies. insurer,biggest leaving earlier than expected. his role will be split and thomas will become the chief executive. longestickly, the winning stretch since october is falling today. that is after a member of the government resigned on friday all ahead of the important referendum on june 1, 23rd. pushing sterling lower, still three months ago before the referendum. the decision to leave was not about the referendum. it was about last week's budget. thanks so much. let's check in with the news
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now. matt miller has more from the news desk. matt: he is the first american president in 88 years to visit cuba. president obama meets with raul castro. he plans to push castro to improve human rights and economic access. he's ok exclusively with abc news. president obama: the time is right. obviously, the intention has always been to get the ball rolling, knowing that change was not going to happen overnight. reopening.n the though we have significant differences around human rights and individual liberties inside of cuba, we felt that coming now would maximize the ability to prompt more change.
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matt: for the second time since friday, north korea has filed ballistic missiles into the sea and south korea says kim jong-un's regime launched missiles today. united nations security council passed sanctions to punish north korea for another missile launch and a nuclear test. russian investigators say they cannot read data from the flight recorder. were killed.people the black boxes have been severely damaged according to officials. and explodededived and of our ball after trying to land for a second time and strong wind. more drama is expected this week in brazil -- in brazil. trying to come up with a way through brazil's political crisis. a poll shows two thirds of brazil want the president ousted over allegations of corruption.
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global news 24 hours a day powered by more than 150 news bureaus around the world. i'm matt miller. i want to get straight back to the big story, valeant. ceo mike pearson is stepping down after a series a call made in company shares. we're joined now by two of our in-house experts. let me turn to you and give us the very basics of what exactly transpired this morning. has two seats but we do not know who is ceo yet. >> that is right. we do not have a new ceo yet here pearson will be staying in until they found -- until they find one. they asked the former cfo, howard schiller, who is still on the board to design because they accused him of financial impropriety. this is a 24-year-old
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goldman sachs veteran who had just been accused of financial impropriety. because heis this did not get it filed quickly enough? i think there is more to the story. he indicated there is a lot of digging to do. there is certainly more at stake here. afterwas it inevitable last week's massive selloff, was it only a matter of time before fall on histo sword? today, stock reaction says everything. the stock has been surging on the news. it is not clear if there is a fell on the sword here. i do not know what is inevitable with the company here. never ceases to surprise us with twists and turns. it is hard to say.
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it was not clear he was going to come back or how well he was or even is. he recently told his staff he was still learning to walk as of a couple of weeks ago. i would say nothing is inevitable when it comes to valeant. mark: do you think elizabeth pierson'legacy has been stained by coming back after the medical leave? liz: i think so. this has been a lack of direction and a lack of response to everything that has been going on. quite irresponsible to shareholders. i think it is absence without much discussion of what is actually going on. that was an issue. when he came back even still, there was not all that much really said. he was of indicated going to take charge and turn around the ship and he admitted to some wrongdoing. that was really it. there was not a ton of direction
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you would have hoped for. vonnie: no regulatory body has accused howard of any wrongdoing. the company itself, accused its own ceo of wrongdoing at the moment. it might turn out to be a storm in a teacup for him. also, relatively small amounts when it comes to changing the statements or misstatements. he wants to get on the board, run it his way, and perhaps bring some life into the stock race? collects the size of the misstatements may not be huge in terms of earnings per share, but one of the main questions investors have over and over again had about the company is a lack of transparency. this gets at the crux of that. this company was requiring many company after company, and i think there was shareholder concern about what was really going on when you kind of tour the paper there and looked
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at what was going on underneath. the fact that there are these misstatements going on really calls into question how much faith investors should have in the old statements. committeehe ad hoc that was called to investigate this is not done yet and the statement from the company makes it quite clear they may not be finished with all the misstatements, all of the restatements that need to be going on while they look back at their books and wonder what was really happening. usk: thank you for joining today. vonnie: thank you so much and mark, thank you as well. talkingp, we will be about apple. can it grow bigger by making its iphone smaller? we will get a preview of today's event. speakinglary clinton right now at the american israel
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public affairs committee conference in washington. will speak later today and layout his middle east plan. you can watch the full event there on the terminal. ♪
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mark: live from london and new york, i am mark barton. a look at some of the biggest business stories in the news right now. chief executive marco has resigned. this comes after he failed to return the telephone monopoly fast enough to satisfy his biggest investor.
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two people of knowledge of the situations say the top candidate replace the chief executive -- high-speed train operator. the billionaire investor is buying control of the capital distribution business solution holdings. the price tag is 1.6 really in. holding time the company from global asset manager tpg, which will retain a 35% stake. the deal is expected to close in the second quarter. let's focus on negative interest rates. it is having a big impact on japan and europe. the next guest says the policy is also showing its affect where central banks are steadily a rate slide. we will discuss next. stay with us. ♪
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watchingou are
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bloomberg markets. i am vonnie quinn. apple is set to unveil several product updates today putting a smaller iphone and upgraded ipad p or what impact will this have on lagging sales? we head to california now where cory johnson is standing by. are going to see new products today, but you're not at a big event center. you're at the regular auditorium. the new apple? will we just see regular upgrades but nothing major anymore? cory: i do not know if it is the future for apple but a minor product announcement for apple to be sure, despite the fact it is treated like a moon landing and i would suggest it is not bad but it is an interesting time to look at apple. whenyear in particular, they are predicting revenues will actually fall for the first
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time in 15 years, these announcements, whether it is something as inconsequential as a wasp -- watchband or as interesting as a new and smaller phone with enhanced features, they are important for apple. phil, when you establish a big territory and then you start to phase in and get more to fill in the territory or that is what apple is doing, making sure there is no part of the market they have that they will lose, and no part of the market that is still big and so available to them they cannot actually leave the stones unturned. vonnie: the upgrade cycle has phoneo 27 months for a now, well over two years. is it just that the phones are too good? so you do not need to upgrade is often? i did not the last time and i might wait a little more. cory: apple is doing things to
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combat that, not least of all a program that allows users to subscribe to a program where they essentially get the new phone whenever it comes out. apple certainly has it in mind that they want to shrink that cycle. of biggerntroduction phones, ipads, and tablets, and laptops, all products are seeing a replacement cycle actually extended maybe because consumers action might want to have all the devices but do not you but with the latest and greatest of all them. it is something apple is trying to combat. vonnie: thank you very much. be sure to join corian emily chang for a special 1:00 p.m. eastern and 10:00 a.m. pacific time. u.s. stocks staging a
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recovery pushing levels into positive territory for 2016. how are investors assessing the comeback? chairman of cio at cumberland advisors joins us now. david, we have got the u.s. industries clawing back their losses for the year. global volatility across all asset classes, and a two-month low. are the wobbles we witnessed over or will they come back to hunt us? have more clarity about the electoral process, the history, since 1900, says in the beginning of a presidential you haveyear, when uncertainty, a lot of candidates, turmoil, stock markets go down. the more turmoil, the more things go down. when things get clear, they turn and become more robust and they very often and at new highs at the end of the presidential election year when it is all decided. the good news is we have a
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calendar. we are adhering to the calendar. the bad news is we still have turmoil in one party. it is not clear who the candidate will be an on the other party, there is already discrepancy in arguments. who knows, sanders trump makes it clearer. somebody else, we will have an election and when it is over, markets will be higher. up what ayou weighing clinton trump campaign means for the equity market or it simply does not matter, as you said, until there is certainty, essentially until there is a result, we will not get clarity and markets will not start rising? so basically put your seatbelts on, we're in for a volatile year. >> i think that is right. volatility is up for two reasons. the interest rate policies in the world are fought -- driving volatility and we have a political entertainment in the united states. it is our system, that is what we do.
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we change governments in the country and we do not need tanks to do it and we do it with fisticuffs and we are doing at this time around. i would say once we have two candidates and then we have a genuine debate for the presidency, the primaries do not count. what they said to each other's history. then we get the policy issues. vonnie: there is an extent you have confidence in equity markets to what about the federal reserve an emergency central banks and so forth? do you continue to have with that backdrop a lot of emerging markets? >> therein lies the real question. the fed wants to raise interest rates and tried to find a way to do it let's call it -- call it positive interest-rate policy. one fourth of the world, negative entry straight policy, and that is now large, one fourth of the outset of the entire planet. you get a diversion tug-of-war between the two philosophies and
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central banking. is altering things in altering interest rates suppressing interest rates in the united states. we are studying that in the firm and this is the first attempt to try to measure it somewhere between 30 basis points on the 10 year yield on the u.s., doomed to the suppressing force outside the u.s. vonnie: do you stay with u.s. equities since they are somewhat immune? you have to own some u.s. equities and you also have to look at mature economies where they are subject to nerp and where it is running, japan and europe and may be more depending on where it goes. you say here is massive stimulus in a monetary form. two years ago, it did not exist. and it is spreading. and if you like those stock markets and the content of them, they are now very attractive. our biggest overweight
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internationally is japan. we think japan is very attractive here. vonnie: you think there would be more stimulus in japan? think theo it i japanese policies will have to be more stimulative. much,: thank you so chairman and chief investment officer at cumberland advisors. with u.s. stocks near the highest level of the year, we look ahead to the markets. at is next on bloomberg markets. -- and that is next on bloomberg markets. ♪
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>> breaking news now, volume of. accused howard schiller
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of wrongdoing today by the company has the client volume request to resign from the board. on the board along with other appointees to the board. schiller saying he did not engage in any improper conduct. then he never provided in proper information. the veteran who works at valiant obviously and still does says the accounting decision was not my decision, and that is a direct quote. >> checking in with the bloomberg first word. matt miller has more on the news desk. bolton officials have identified another terror suspect. dna was found in the house that was used by the terrorist group.
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iny say he left for syria february 2013. sele all dos along was arrested friday after a four-month manhunt. salum was arrested. today president obama meets with the cuban leader. he plans to push castro to improve economic access. mr. obama spoke exclusively with abc news. president obama: one thing we will be announcing his google wi-fideal to set up more access and more broadband access. go from 5% internet access in people's homes to suddenly having access to the world wide web. president obama: changes like to happen here, and i think he understands that. next that does not stop
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that the from saying president's meeting with the man who puts americans in prison. >> this is according to a new cbs and new york times poll. more than 50% approve the way that he is handling ties with the nation. about 40 rabbis plan to take on donald trump each before the american israel public affairs committee public policy committee and washington. previous comments at creating anxiety among many who will attend the conference. this will also visit this week's events. bernie sanders is skipping it. >> thank you.
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getting back to global markets and volatility. this is according to the bank of america merrill lynch market risk index. earlier we asked axel weber about the earlier decision. >> the ecb has extended purchases. it has already a program in place of six the. the main focus of what they are doing and continue to do well we purchase of assets. this is taking risk to the current economy. they claim it is not their main objective but an important variable that can help bring growth back to europe. that is a bigger part of the package and fills a more important one. >> we are joined by the wells strategists. we heard about the consequences of the ecb action.
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the consequences of negative interest rates. have the imf talking negative interest rates. what about the unintended consequences? have you been the biginto that? >> one, what is the impact on banks? what is the behavior consumers indicate? these are all things that will out.time to really fleshed >> we heard there from weber -- faber, saying how he hopes this will weaken the euro. the opposite happens. the opposite happened when it introduced negative interest rates. what is going on in the currency markets when intended currency weakening strategies are not having the intended effect?
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>> there is a lot of crosswind. when you look at the fed meeting last week, they went from possible for rate hikes now down to two. the express caution around the global economy. what you see is on a relative basis, although the ecb and doj have done their part, you see the fed soften their town. all of the crosswinds are trying to digest and find a new path forward. we think the dollar will >> there is a lot of crosswind. when you look at the fedstrengta few months or people to think through what the doj will do. the dollar trend looks to still be higher. obviously you have all sorts of ways of looking at the market . what strategies are you advocating at the moment? the things a lot of people really need to think about, you mentioned volatility at a two-month low. we think volatility will be a theme.
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really get ready for the next months where you have these corporate bonds, treasury bonds, traditional types. you say we should be
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moving to treasury bonds. which portion of the u.s. treasury market? >> we feel like the intermediate array -- intermediate rate part of the curve. on the 10 year. we are getting up close to the bottom end of the range. there is probably a pretty thist risk reward at point. what are the thing that may offend your evaluations -- u pend? revolved around what the central bank may do. the bank of japan. they may choose to do the negative rates and what they will lead to. they may not do anything in april. expectations are high, volatility is low.
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it is a great opportunity for folks to tighten up portfolios. very much.nk you coming up on bloomberg markets, twitter turns 10 years old today. we spoke exclusively with ♪ jack dorsey. those and highlights ahead. ♪
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vonnie: this is bloomberg markets. i am vonnie quinn in new york with mark barton and new -- england. the starwood hotel bedding has escalated. expecting in and around take over from marriott valued at 30 point billion dollars.
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that beats an offer made last week. we will speak with the marriott ceo arnie's works in. that is coming up at the top of the hour. three american companies have cuba just asls in president obama was arriving on the island. airbnb says the u.s. government has approved the u.s. government has approved application to do business there. earlier starwood said it would convert three hotels to properties. the supreme court has sacked electronic arts in a lawsuit pro football players. justices turned down an appeal. that means they face claims that they own money to former football players who use their
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images and the popular madden football game. mark: a quick peek of what is happening to the european equity market. we have been up and down, we are lower now. the euro stoxx 600 or stoxx 600 down pro football players. justices turned down an appeal. that means they face claims that they own money by .4. decline in london and frankfurt. and paris company prospects upset by declines in basic resorts. have a look at the currency and space today. interesting move for the euro. by .10. the euro up. political risk in the u.k. today. sterling falling after the u.k. government resigned friday, deepening the risk in the conservative by .10. the euro up. political risk in the u.k. today. sterling falling after the u.k. government resigned friday, deepening the risk in the conservative party. a young duncan smith, criticized the government undercuts to welfare benefits while tasker -- taxes for higher earners were being decreased. that is the situation in europe. how is it looking in the u.s.? >> going to abigail doolittle
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with the latest live from the nasdaq. >> amazon down 2% down for days in a row. the catalyst for>> amazon down s in a row. the catalyst for the move down today is a price target cuts at oppenheimer. the analyst also took down the amazon web service revenue for 2016. he thinks amazon will be worse to reduce pricing for the cloud 10% halloween the platform event later this week. amazon at this point is the worst drawing not just today but the worst on the year down about 20%. notable?one >> tesla shares are higher. in a row.p seven days
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the longest winning streak since march 2013. the catalyst here is analyst action. analysts at argus updating the software by. he asked asked the company to positive cash flow in the first quarter of this year. many analysts have been waiting for. this could cause many investors and the high berridge -- hi bearish risk to cover. abigail doolittle at the nasdaq. twitter turns 10 years old today. has been a wild ride since the company went public. shares plummeting since reaching $3.71. today investors want to see jack dorsey will be able to increase the number of monthly active is 320 million. an exclusive interview with dorsey who will be on the cover
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of the magazine this weekend. felix joins me now. you are right about the struggles. what does dorsey say about this? >> we have a quote from dorsey talking about twitter identity. in the past when people heard about twitter, they assume the way to use this was you had to tweet about something. more and more people are seeing it as you can see what is happening around the world. >> the whole concept now is live. >> also getting the sense that you do not divide anything 2% -- participate in twitter. has decidedat he 140 characters has been the limit. in yourems optimistic story. you say that is genuine? >>
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definitely. he said i am confident we have your place in the world. we have a lot to do to refine what we have. that what that says that people who really use twitter love it. meantime, a lot of media companies have hopped in there is note said twitter going to organize twitter for an average reader, we will go in there and mine twitter and turn it into something very easily consuming. place to find out on twitter wason not often twitter. they have to change the perception and do that are providing more control, more editorial guidance and more to presentration
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twitter in a way that is easily to follow for people that have not put a lot of time into it. >> what is the tangible difference of having dorsey back so how does that play out to how the company will look in the ? >> i think20 years he has a lot of credibility with the workforce. for a long time part of the problem was the confusion about the identity that trickle down into the bloodstream of the have thehere you product chasing these different directions simultaneously that resulted in a lot of mess. there was a lot of turnover. i think having dorsey back, he credibility to say we will focus on this one thing. we're going to get a right, and let's get products out. focus on our story to the world. i think he can do that in a way that would be harder for
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outsiders to do. vonnie: it is a storytelling problem not a product problem. they are making money. revenue 2.2 billion. now they have hired the former head of apple. >> yes. the advertisers like the product. if they want a bigger user base. with of the problem greater right now is a perception problem. so many people have tried twitter and have said this is not for me. close to a billion people have given it a try and south walked away. you are not even introducing yourself, you are really reintroducing yourself. saying in the past maybe it was overwhelming, we have simplified it, give us a try. competing oney not
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a different level? why are they not saying our users are more valuable? >> i think they want to say we're not facebook. the value is not bringing your social network to the site for coming to a place and finding new people and topics that you are interested in. i think in some ways i see themselves more competing with what cnn does been what facebook does. >> all right. thank you so much. an exclusive interview with jack dorsey. still ahead, the world's largest story and watchmakers are gathering in switzerland this week. we will take you there next. ♪ \ vonnie: in today's persons, the
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largest jewelry and watchmakers gathering in switzerland. bloomberg pursuits luxury editor 's bogard is at the show. take a look at what he says are the top five watches on display. world.e here at basel hauer.tutddor, tag the black badger. this is a watch that they came out with last year. this year they partnered with the artist and designer james thompson to come up with a super look that is .righter and powerful new loom there are three colors and only 18 of each color will be made. this is the regatta 02 usa watch.
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this comes down. this looks very nice. piece ofly will have a the top winning sailboat on top of this here. a little bit of the boat. only 235 will be made. this is a completely new watch. a combination role time and chronograph. it was inspired by a watch from the 1940's. also the smallest world time, graph on the market. a brand-new calendar watch this year. the first they have made. a big base indicator.
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you can see the rotor is integrated into the movement. all around the edges. every year they take a vintage watch from the museum and the contemporary watch inspired by it. this is named after the racetrack in italy. a looks like the watch he wore in 1975.on a little bigger than that watch was. it carries a lot of the same elements and has the great vintage look.
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vonnie: the luxury editor. more free -- read more about this, more on the finer things in life including travel and property, just go to java pursuits on the bloomberg. mark: coming up, starwood hotels has accepted a revised 30.6 billion takeover offer from marriott. we will talk with the chief executive live in havana. these are live pictures of president obama's visit to cuba taking place. he sat for a photo off with castro. speaking with the marriott chief executive who he himself is in cuba as well.
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vonnie: from bloomberg
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headquarters in new york, i mark: am vonnie quinn in for betty liu mark:. you are watching bloomberg markets bloomberg television. from new york to london in boston. star except a takeover bid from marriott. president obama on a historic bit to cuba. georgia versa also agreed to
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merge. the chief executive of the high frequency trading firm virtue financials. 20 minutes into the trading day and the united -- in the united states. going to the markets desk. julie hyman with the latest. stop down but not by much. buts&p 500 trading the work not by much. the dell off 5.2%. big one.k, but not a
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stocks more mixed. if you take a look at the bloomberg, the grooves on the move, energy shares are down. telecom andsure on big defensive groups that are doing in today'st other session. looking for the source and commodities as well. gold and oil doing well. crude has now turned around. mark: the last time i checked it was lower. gold futures it looks like still in the red at this point. on august trade we are seeing in oil prices as they bounce around in today's session. our today's big movers mostly individual stocks? .> it does seem that way a lot of big company news. agreeing to the higher bid from marriott.
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matt: by am would insurance. offer itved marriott is actually 84.36 because you to offer -- add in the consideration. thank goodness matt is here. d -- a deal in sherwin-williams. the price of $113 per share. sure when williams down a little bit. feldspar surging on that. the price $113 per share. ihs agreeing to acquire market. the dear here valuing the london-based company $5.5 billion. we have a consolidation here and the market information industry.
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a couple of companies moving on an analyst call. adding nike to miss on the average analyst estimate. bump.we need a bit of a that is what i decided. after the first weekly drop in five, after the longest winning we sort of a year, started out and then drifted lower. the commodities and the energy space taking over headlines. this is big news. finallyitalia has redesigned. he failed to satisfy the biggest shareholder and the chairman.
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that puts the french billionaire , unknown activist at the center of telecom italia. next ceo know who the will be. big news for another european company. the french supermarket group being cut to junk by standard & poor's. shares little changed. it has been increasing the debt cost. it has been attacking this firm. that is about to mismanagement. they are using financial engineering to mark the deteriorating core business .asino it so
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sharply denying the accusations. this is the shot i absolutely love. three-month volatility versus one month. we have seen a rebound in ftse 100 shares the past six weeks or so. this is at the highest level in three years. that is interesting ahead of the upcoming referendum on june 23. ramifications of volatility. >> a historic meeting between president obama and cuba president is happening now. we are looking at live pictures and cuba. opening ceremony and cuba. mr. obama has become the first president and 88 years to visit cuba. the last one calvin coolidge to arrive on a battleship. he is expected to improve relations by expanding human access for people. >> the majority of americans support restoring diplomatic ties between the u.s. and cuba according to a new new york times poll. more than 50% approve of the way president obama is handling the communist
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nation. most disagree with the president's plan to close the prison in guantanamo bay. trump's presidential campaign add security to the larger event. recent rallies have been marred by violence. republican front runner does not condone the scuffles. she says the front runners have used profanity to invoke responses. turkey says police are searching for three suspected islamic state militants. allegedly planning to carry out a countryttack and already rocked by six suicide bombings since the summer. two days ago a suicide bomber killed four people in in stumbles busiest shopping street. numbers are germany says it took in 2 million refugees last year, 49% increase over 2014. of those 2 million, 850,000 have moved on. on july merkel has resisted measures to control migration such as putting a cap on the
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number of for free jews germany receives. bloomberg news power 24 hours a day five for more than 2400 around the world. i am matt miller. vonnie: world leaders are getting settled with treasuries they cannot seem to get rid of. data shows the 22 primary dealers held more treasuries last month that it anytime the last two years. beginning with the obvious, how did the primary dealers get saddled with treasuries? >> the primary dealers that stuck with treasuries the kiss they were selling data security days into the rally. youas interesting, because saw prices rallying the whole time. foreign treasury accounts that an unprecedented amount of selling in december and january. and yet the treasury market rally. of anestion is, what sort
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effect this actually has. this going through the gear. the way the market functions day today. >> there were buyers, to. >> there were definitely buyers. a 10 of them. people will always want treasuries. you can look in overnight funding markets. debtwere looking for newer to go short in the overnight markets. of news a big shortage debt to go short four. that makes it confusing. that makes it confusing. >> basically liquidity providers getting the short end of the stick? >> they would say so. it is an interesting question. that is the role that they play. intermediary part of the
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markets. that is their view. they are doing their job by .tanding in the middle of these >> what about the attempt to stand in the middle of the futures market. >> the futures market is picking up a lot in value. they try to manage exposure to the duration, the value of futures contracts ready high compared to the contrast market. >> $9 billion they would have had in july of last year. late of last month that was $121 billion worth. is this federal reserve related? >> it is interesting because the interest rate risk is introduced by the federal reserve. if they introduce risk quicker, that will hurt most in terms of price because of basic fonts market map.
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so they are holding a lot. the federal reserve has not slowed reinvestment. it has been reinvesting. that is less of an issue on the mechanical side. i think what they are doing is managing the exposure while they can and trying to offer the the debt whenever possible. vonnie: a worthy read. thank you so much. you would think yields would be higher than they are. starwood hotels set to arrive on the $30 billion takeover for marriott. we will week with the marriott live. that is coming up at the top of the hour.
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vonnie: live from london and new york. i am vonnie quinn in new york. mark: mark barton in new york. a look at the biggest business stories in the news right now. of valeant arising after a big shakeup. the chief executive. down. billionaire investor mark ackerman will join the board after the pershing square is one of the biggest shareholders. howard schiller has been asked to resign for impropervaleant calls conduct. he denies the accusation. has stoppedworth electronic arts in the lawsuit
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involving thousands of former pro football players. must faceame maker claims it owns money to thousands of former players for using their image likeness and madden. the move comes after he failed the company. two people familiar say the ceo of ae chief executive high-speed train operation. that is your bloomberg vagueness this hour. flash for vonnie: a big day for deals. the latest on the starwood's deal for marriott. that is next on bloomberg markets.
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mark: you are watching bloomberg markets. i am mark barton. shares at starwood soaring after an improved takeover offer valued at $30.6 billion. following has been this story. are we in the middle of a takeover battle? >> very much so. takeover. we saw them come in with an improved offer last week. marriott had the chance to come back and matches and have gone slightly over it. leftoor has clearly been over for the chinese to come back. i think it is very likely we will see them come back to the this one.
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is there a game changing price? what is the feeling? how high >> veryth companies go? good question. we think marriott would have puts more money on the table if they wanted to put a knockout bid on the table. clearly by bumping this a small amount, it suggests they have more room to go. that said, i think they have shown themselves to be incredibly ambitious buyers in the space. they have come into breast this one up as well. i think this will run for a while yet and i think we will see another run for sure. change fornot chump sure. it looks to me like star wars then maybeterested the implications are right now. marriott also says they were sorry they have not increased the cash portion earlier on.
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there sure there is more they could do? >> out -- i am not sure how much further they could stretch. they could change the share higher value put a with that. with cash, it is certainly more complicated. the chinese bid is all caps. if they could step that up, that may be more attractive. , a thing worth mentioning lots of these guys may destroy. one thing they do not want at the moment is more stop. they want cash because they have a lot to cover. vonnie: will this be considered by the board? >> and it's hard to say how much they will take that into account. it may affect any boat that comes down on this. i think at the moment, they have the great be. the $6 million. i think they have left the door
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open and have artie said they think the chinese it would be all right and the financing is legitimate. mark: the other big mma -- m&a .otential is taking place we're hearing, bloomberg, that santos has been talking with the german players. >>this out of desperation? they would say not. they would say they have been on the fence for a while. they tried to bison junto three times. did not have the cash flow or ability to compete on that so they lost out. there is not an element of desperation. they have told shareholders they need to do a deal and a stand-alone plan may be not as great as they would like to think it is because they have been so keen to get an m&a
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situation going. buyingve talked about the agreed chemical businesses, which would be a substantial deal in any case. think -- thank you for joining us. ian bremmer appeared earlier and talked about this with the boat just a couple of months away. he said not sure that britain will stay in the eu. >> as soon as you decided to host the referendum, it made it more likely they will vote to leave. you have political incentives for people on the other side. they see being able to defeat cameron as useful for their own careers -- careers. we see that with some can smith we will see it with others. part of this is what does he look like on june 23 and what
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does europe look at june 23? the answer to both of those things probably will be considerably than it looks presently. hope thee have to rational concerns, the economic concerns and the uncertainty around what will happen is british industries and jobs will be sufficient to not just persuading the hearts and minds but getting people passionate to getting people out to vote. the one thing we know is the opposition to europe and britain , the emotional opposition is very strong. you will get the high turnout there. i still think on balance they will vote to stay in. that is not a safe bet. they have to be doing what am i 23?g to do to stay out june >> the problem is when you follow the debate here in the u.k. come the facts, figures and emotional concerns get blended
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into one. how should people view concerted -- security concerns? the tablet concerns, you say what it is because we have a refugee crisis in the u k. simply not true. >> the french president has said , the french are no load -- no longer going to a poll keeping their refugees on their side of the border. in other words, really trying to show there is going to be a lot of pain, not just economically directly on the refugee front. i am not sure that plays very well for britain staying in because they do not want to feel threatened. i think what you will see over the course of the next three months is very strong focus on the facts, but also an enormous amount of uncertainty. i think they will get them to vote in favor is less the economic realities and the fact
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that there is a decent chance britain itself will vote to split up. that the stocks are gone from the u.k. if the brits are gone from the eu. i think that is a significant argument that you will see her so much more of from stock learned -- from scotland itself. >> how much to the ghosts and 19 shadows of the 1950's and it's deep, how much do they pervade over people thinking jacob >> less than you would like. one of the reasons that economist asked to do an interview with me on this. >> you mean that we are behind the economist? this is all they are focused on right now. they asked, and i said britain is becoming a second rate power. i said there is not a single this debate talking
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about why europe needs britain. that is not relevant at all. not to the britt. if you have had a debate here, you would say it is needed. the idea british leadership is important does not play for either cameron or anyone else in this debate. mark: ian bremmer there. exactly. still ahead, not to the britt. if you have had a debate here, you would say it is needed. the following m&a action in other industries including the financial infrastructure industry. on theh in on unprecedented move after this. ♪
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oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cruise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals,
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micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well. the flower power cruise, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. mark: live from london and new york, i am mark barton. vonnie: you're watching bloomberg markets.
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matt miller has more from the president obama meeting with raul castro. they shook hands at the revolutionary palace. they exchanged words briefly before. they have met before in 2013. they shook hands it nelson mandela's funeral pocket an american president has visited cuba in almost nine decades. 40 rabbis will like i donald trump's speech. -- comments about israel have created anxiety. his rival ted cruz and john kasich will be there and so will hillary clinton. bernie sanders is skipping it. inders surpassed clinton fundraising for the second straight month he raised $43 million and clinton 23 million. clinton has more cash on hand.
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says it will start responding to cease-fire violations in syria unilaterally starting tomorrow. act if the u.s. refuses to coordinate rules of the age meant against the violators. vladimir putin recalled some of the war planes from syria. more drama is expected in brazil. the supreme court and congress are trying to come up with a way through the political crisis. two thirds of brazil once the president ousted over allegations of corruption. global news 24 hours a day powered by 2400 journalists. vonnie: virtu financial has been
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writing the wave. a two-month low. how will they bolster their position? that is across 35 countries. they are looking to expand further. we are joined by the ceo. thanks for joining us. congratulations. you're coming up on one year. doug: it was a year ago. were some negative statements about what the first quarter was like in terms of trading. what do you see? doug: the first couple of months of the first quarter were very active. equitieslume in u.s. and other market segments where we make markets for pretty active in the first couple of months of the quarter. vonnie: there was lots of revenue? doug: we are a public company so
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we don't put up forecast. we are making markets around the world every day. we saw some good action in japan in the first quarter. that leads to the bottom line. me if iu will excuse get to m&a among the big exchanges. i am sitting in london. what is your take on this? is this now a done deal? will there be regulatory programs? fascinating.ry it's part of the trend of globalization and firms trying to find efficiency in the capital market. the markets are interconnected 24 hours a day. that's what my firm does. it makes strategic sense for those two firms to be joined. they have been active in m&a in the past. there are rumors that they might be interested in this. -- we will have to see how active they will be.
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it comes down to creating more efficiency and picking up synergy in the workplace. mark: we will have to see how active they will be. how active will you be when it comes to deals in the next year or two? doug: we are one of the larger firms. it's all about efficiency. there are a lot of shared costs that we share. we are always in conversation and actively looking. we have not made an acquisition as a public company. we hadwe were public, three acquisitions. that's why we wanted to go public. the are patient and we are proud of the record we have built. vonnie: some of your competitors , will anybody go public in the space? doug: one group and europe did. they went public in europe. trail blazer and the
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pioneer. we took the bruises on the punches from some critics. i think we will be taking firms public. it's a big system out there. thatnt to have competitors are healthy and access the public markets. we think it's good for us as well. vonnie: we can see trading under fire. what about regulatory environments? whether it be european? you operate in so many markets around the world. doug: that's a great question. we are regulated all over the world. we are in 35 different countries. my background as a lawyer helps. it varies. there is a lot of misconception out there. we're very proud that we are transparent to regulators. we try to regulate them on the benefits of electronic trading. it's made the presidential cycle.
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bernie sanders is talking about putting in transaction taxes. i believe in free markets. when government gets involved in taxing markets, that's a bad thing for the investors in -- investors. .e're trying to educate people when you have market participants determine what the best prices, that's what we're about. that's the right solution. mark: if you are obliged to share your algorithms, how will you react? doug: that's a great question. we have done that. we get invested by everybody. you have to do that. we have shared our code with governments. we want to make sure that there is a good reason for it. it's not just a fishing expedition or politically motivated. there are safeguards put in
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place. we talked about that last week. letter thatmmon says if you want access to source code and there is a proper purpose for it, make sure there are safeguards put in place. i wouldn't want to just hand my code to the government. that was the international futures conference. mark: there is a lot of pouha about this. new are trying to become a equity exchange. how will that affect you? doug: that's an understatement. there has been a lot of back and forth on it. participantsa since they launched. their speed bump has no effect on the way that we trade. critics are angry about a couple of things. there is all of the hysteria that came out of the book.
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there are rules in place that govern whether you can have an artificial speedbump in the marketplace and still have the benefit of being a national securities exchange. there are legitimate concerns. i put the letter in early on supported it. let's silence the critics. they are all about competition. mark: it's good to see you and thank you for joining us. he is the ceo of virtu financial . it's history in the making. president obama visits cuba. it's the first visit in almost 90 years. we are breaking down the historical context. ♪
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mark: you are watching bloomberg. i am mark barton. vonnie: this is your business report. this is what we're watching. two titans are merging. billions and they are moving to london. there is a sweetened offer for starwood hotels. is this the end of the fight? sherwin-williams looks to be the world's largest paint company. will regulators approve the deal? majorlet's begin with a verger in the data industry. ihs is buying markets. it will be based in london. it will have more than 50,000 companies with the corporate
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headquarters in the u.k. they will reduce their tax rates. the improved offer for starwood comes in at nearly $80 a share. bid tops the $13 billion made last week. no word if they plan to make another offer. we've got a deal that creates the world's biggest paint company. the deal will be for $13 billion in cash. sherwin-williams wants to expand overseas. they do not expect problems with antitrust regulators. they have complementary operations. interest tocharging encourage lending to companies and's consumers. why hasn't it worked?
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the euro bloc in has barely budged. banks are paying to keep money i will. there is a lack of demand for loans as the economy recovers. regulations are another reason. axel: the overall impact will still be muted by the new regulations. at the banks, we are not much more concerned in general about the leveraging rather than adding new exposures on ledger sheets. this might help to soften and provide a more orderly deleveraging. it will not break the trend. there are new deals with basf. that is people familiar the matter. they have agreed to be lot by china. for ourit's time now
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quick take where we provide context and background. president obama is in cuba. it's the first step in more than 50 years. u.s. and cuba have had a strange relationship. a caribbean island nation of just 11 million people a locked in a superpower. with the reestablishment of ties in the easing of a trade embargo, can they become good neighbors? this is how we got to the current situation. the u.s. severed relations in 1961 after castro allied with the soviet union. when they did not remove castro they imprinted -- had a trade embargo and that's how things stayed for half a chantry. relations resumed in 2015. >> we have reestablished
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diplomatic relations with the republic of cuba. made possible by a swap of spies and contractors. the government promised to expand freedoms. they agreed to free political prisoners. obama made itide, easier for u.s. citizens to travel to cuba. was removed from the list of state sponsors of terror. base gitmo isary not part of the deal. this is the argument. trade embargo lifted, that will require an act of congress. >> the policy was long past its expiration date. marginalize to allies.
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unhappy?se is >> more republicans. >> without support from congress, the changes could be undone by the next president. vonnie: that is your quick take and global business report. visit for more stories. mark: let's get up at trade. abigail doolittle has more from the nasdaq. how is it looking? abigail: it's looking more positive than the open. the nasdaq is turning higher, holding the index back. atel shares are lower on downgrade from bernstein. he thinks the first quarter resorts could be at risk. the second consensus appears to be high. this could pressure the stock. the sentiment is stick -- shared by deutsche bank. the company is likely to get the
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lower end of the first quarter guidance that was lowered in january on concerns around china. this causes intel to trade into a parish cross. suggested theyve could see some downside head. mark: the nasdaq is trying to turn green for the year. what is continuing to weigh on it? abigail: one stock. amazon. this is the worst performer year to date. from, it's jason oppenheimer. he has taken his price target down. he's taken a cloud revenues by 4%. he believes amazon will reduce in the face of competitive pressures from google. this is the reason the stock is the worst point greg and the nasdaq this year.
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it's down 20%. is atabigail doolittle the nasdaq. we are an hour away from the apple event. willie the smaller iphone have a smaller price tag? we will have a preview.
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vonnie: live from new york and london, i am vonnie quinn. we are more than an hour away from the big apple event in cupertino. they will unveil a smaller version of the iphone and an upgraded ipad. the big question remains will a smaller phone mean greater growth? let's ask the program director for idt. he joins us from boston. a smaller event, does apple
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anticipate great success? ryan: i think it's interesting. they are starting to look at other opportunities of growth. they have done this in the past. some of starting to see the mature markets like north america and pockets of western europe see strong growth. these are some $400. it's the low end. this is not where they have traditionally positioned their product. they are catering to a broader audience, but not going down to low-cost devices. vonnie: they are changing strategy. we would not have known what was going to come out today. it would not have been at the headquarters. leaked,hing had gotten that person would have been fired most likely. ryan: it's tough. they went from a one phone company at 1.2 multiple excuse
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of phones and ipads. it gets tough. i don't think that their efforts are best used to keep everything completely secret. they are focused on delivering key products for the right market segment. mark: what's the technology going to be like for this new smaller phone? ryan: you will see a lot of the same components that are in some of the bigger iphones. that's my expectation. nothing has been announced. i would expect the latest processors from them. some of the same memory configurations. by getting down in the screen size, smaller batteries and so forth, they get the price points down. this it's a new audience. vonnie: people haven't upgraded in -- 30% did not upgrade last time around.
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brian: the see some trends. a lot of people that are users and not,e are moving to larger screens. that's the trend. this product would not fit that audience. the second thing we see is there are people who have found their sweet spot with a smaller screen device. at the priceing sensitivity and catering toward those people who don't want a five inch screen. mark: the ipad sales of been slowing over recent quarters. what are we going to hear on that front? is it going to extend the sales : if you asked me this year ago, i looked at the ipad pro as a stopgap solution until they could get their mac os touch friendly so they could get
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a detachable version. the more i look at this, they are possibly leading into the world of touch for their entire portfolio. productsure that this which we are expecting to be the normal sized ipad with pro features. there will be new software and an optional keyboard and pencil. alonet sure this product changes the object tree. it's a step in that direction to bridge their ipad line and their mac line eventually. mark: is the purpose to warm us up for the big win later this year when we would get a better iphone? ryan: i don't know about bigger. there's no question about the better. apple is always done this to announcement cadence. don't overlook.
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the tech geeks in all of us look for that new product. what i would say is look for some stuff they talk about around battery life and so forth. also software. i expect some pretty big updates around ios and capabilities and so forth. those are critical not only for new features, but how well they can optimize their current cpu and components as well. mark: it's good to see you. thank you for joining us today. to -- tunedu stay to bloomberg. we will have a one-hour special around the apple product watch. we're looking at european equities. it's been a topsy-turvy day. the equities, the principal ones, could finish the day lower after a four-week winning run. it came to an end credit. there you go.
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they are down by about a third of percent. m na is supposed today. the climbing commodities is weighing on losses. haven't you get what's going on in the currency and in the bond space. vonnie, how is it looking over there? vonnie: it's been an interesting day so far. the dow is up about a 10th of a percent. the nasdaq is up about 2/10 of 1%. aboveoil is up about -- $40 violent -- a gallon. the european closes next. ♪
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>> it is been here in new york. i'm scarlet fu. >> i am alix steel. mark: this is the european close.
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mark: we are going to take you between london and new york. banks willingan to pay their money to the ecb instead of lend it. what is holding them back? what theybs tells us think of the latest european measures. alix: gold is down but having one of its best years in a while. can it keep shining for investors? is it time to sell? through we are midway the u.s. trading day. we need to check in at the market desk. julie has been tracking it.


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