tv Bloomberg Markets Bloomberg June 8, 2015 12:00pm-1:01pm EDT
since deutsche bank announced its new ceo. pimm: we will have the information from the developers conference in san francisco. olivia: and the nba finals. ♪ pimm: good afternoon, i am pimm fox. olivia: i have olivia sterns. let's look at where markets are trading this hour. the stocks are little bit off, as european leaders are pushing for a resolution to the greek debt crisis.
stocks were lower on friday after that stronger-than-expected jobs report. oil-rich reading a little bit of this morning after speculation that global surplus will boost exports on unyielding oil production. take a check of the bond market and the treasuries. a little bit of a rally and buying activity in the u.s. 30 year very small change. let's think a look at currencies and see how the dollar is moving following those reported treatments that were denied by president obama. dollar 1versus the .1210. look at the top stories crossing the bloomberg terminal this hour. president obama is calling ungreased to make tough political choices.
the president spoke at a political conference -- news conference earlier today. he said greece has to be series of economic reforms because time is running out. partners,y are g-7 but the imf, and other institutions that are represented here feel a sense of urgency in finding a path to resolve the situation there. a greek delegation is in brussels today speaking with creditors about the medium-term financing for the nation. one greek official says that they cannot accept more austerity measures. the new chief executive of deutsche bank is taking over in the middle of a flake of billions of costs. bank oreen on deutsche previously. to -- markrks in and sent and to the code chief executive.
they posted the worst performance among global tears. -- global peers. barclays had approximately 180 financial advisors in the united states and had about $56 million in total assets as of may 31. deal is expected to be completed by mid-november. olivia: apple is trying to be more competitive in cloud computing services. the tech giant will build a high-speed network and upgrade how it puts data centers together. apple wants to take cloud computing is this away from amazon, google, and microsoft . -- the week is considering the first narrowbody jet liner. tellsng executive bloomberg they want airplane that flies farther and longer
than current narrowbody's do. the international airport transfer dissociation predicts -- association predicts profits up from last year. state this isrk wild, two convicted murderers remain on the loose after escaping from a maximum-security risen over the weekend. the men occupied side-by-side cells, cuts through steel wiles and pipe. authorities are investigating how they obtain power tools who in the shawshank redemption style breakout. those are your top stories at noon. out on the eastern end of long island, some of the top minds of technology and media
are gathering. they are holding their annual summit meeting. that is where we find betty liu standing by with the man behind great cost. we are trying not to get blown away by the wind. allen, great to see you today. sat in on a couple of the panel talks today. they ranged everything from e-commerce to sports to media. what are you learning out of your own conference today? allen: you are usually too nervous about the logistics to get as much as you like and what is interesting to me is in the most recent panel, and lot of prominent people in the ad buying world discussing the subject of programmable advertising. programmatic advertising, excuse me. in thebeen the buzz word
industry in the last year. thest heard someone from conference saying that 39% of their advertising was programmatic. that is a bad word for the tech companies. the major indices are creating and it iss forcing the rates way down. comments from the islicists and daily mail that programmatic is not the answer, in the end everyone in agreed that it is about understanding what you're getting and dealing with advertising that you know where it is going to end up in who the audience is. betty:
in this space. this is part of what you invest in here. : we have had some tech investment. some of them have not benefited from programmatic. i do not think there are many advertising tech businesses that have. betty: valuation. we keep hearing that. we keep hearing that they are getting rockier and frothy year. you wrote this piece in business insider a few months ago where you talked about the cascade of miracles. there was one quotes that are really like. you said to be up to resorts are filling the pressure from investors to project unsustainable growth rates and revenue because without these revenue growth rates investors will not keep feeding the beast. everybody is at fault here with these? alan: absolutely. i was specifically rating -- relating to an instant where it
was a board meeting with a company which was doing very well, and was projecting a 50 cent or 60% increase next year in their budget. and the comments on the table from the investors were, if it is not wondered percent you are not going to attract investors who are wanting to put money. , to me, you're asking -- it down not the people was really going back to the money, board, raise more spend more money to achieve a greater growth rate. not totally unreasonable, but it seems to me it was less with the organic nature of a business perhaps good of so. .- could absorb in my business 50% growth rate is more than pretty good. betty: you're in a situation where companies page you, and they are making money by year
two or year three. you do not want to be making money? not a problem we have to deal with. our companies are all growing smaller they are the higher their growth rates are. i am referring to companies that are at a later stage are trying to attract growth capital, which million,y 10, -- $10 $15 million, $20 million a shot. a whirlwind atin the moment. of these things, in my opinion, and badly. betty: and in tears? alan: i don't know. betty: what you excited about now? : i have all of my children in my portfolio companies and most times you're excited by the
most recent investment you make. we are in the process of making an investment in a company on the west coast which is really a aole foods online, and different kind of volume. we have another company called box which is an online version of costco. doing something with different kinds of product, all nonperishable. investment in a company called last night in the cyber security area. betty: i hear a lot of me to companies, but are there any genuinely new companies crossing your desk? an: that is a fair question. there are very few in that category. flash i probably would. creative models, a new concept
of a state -- the state sales. it --k you have seen crown sharing is permeating the entire economy. we will probably have group sharing at funerals pretty soon. [laughter] for trucks, for cars, for eating. it has simply spread widely read i think that concept has penetrated the whole economy. about new asking nanotechnology or some new patented device, i think driverless cars are exciting.
virtual reality is exciting. i actually invested in what is the first virtue already -- virtual reality company. i found him in the 1980's. littlestanding in a corner, and he was very far ahead of his time. we did not make money on that investment. betty: thank you for joining me. back to you. pimm: thank you. betty liu is live at the great craft summit. we will head back to her with a interview with the former nba commissioner. aivia: much more, including closer look at the big shakeup at deutsche bank. what will change when the new ceo takes over. why: we will take a look at
now. not any big catalyst here, just a general uneasiness over the continuing greek situation as well as people trying to figure out where the fed is going to be raising rates. are trendings somewhat lower. technology is leading some of decline. there is an interesting case on bloomberg.com today talking about whether stocks be able to raise -- rise in the face of rising rates. happened before. this is the longest run we have had in stocks without any kind of rates rise. we go back to the bottom line, which is the federal reserve target rate and then you see the s&p 500. it is unusual that we have not at a movement in rates the same time that the stocks have gone up. rates goend to have higher, that usually means that you do not have rights to earnings ratios.
ofe is a longer-term chart the price to earnings ratio. we are far below peaks, but about wheres debate we are in valuations in the s&p, particularly in certain sectors and we are trading a little bit times.verage, 18.6 this is trailing earnings. historically, we have not seen these continue to expand. 12the quarter of the last tightening cycles, we have contracted. we will see if we get around to a similar contraction. olivia: thank you. turning back to one of the top stories of the day. the seventh -- seven replacement of deutsche bank ceo. chief executive who was going to be the sole chief executive after co-ceo juergen steps down next to me is
john cryan. he is just, but he speaks german. he is a takeover specialist, he has served on the supervisory board of deutsche bank, but he has never led a unit of the bank. fromnalyst is with us preferred. good afternoon, thank you for eating with us. what do you expect to happen at deutsche bank now that it has a new chief executive? what details can you describe? aboutdo not know a lot this, but the expectation must now be that he will him and strategy that deutsche bank announced in april. back then, the disappointment was they did not make a lot of changes in the investment bank. the investment bank is seen to and theig, too heavy balance sheet, too much capital consumption. shakeup.d be a major olivia: what does he do to
return the bank to a high level of profitability? give aht help the stock, little bit of a pop? company needs is a new strategy, not just the new ceo. what does he need to do? dirk: the strategy was announced in april. of the things that were announced in april -- olivia: stick with the strategy in april? dirt: for the retail part. this is all very good. banking,l transaction that is also very good. management with deutsche bank managers north of one trillion euros is very good. -- been atly has in fault is that they did not make any big changes with the bank,
and this is what he needs to address now. pimm: in the investment bank, can you detail where are the profitable areas, and those most at risk? dirk: they do have a lot of profitable areas. i would be surprised if they did not make a lot of money in the european part of the business. in equities, fixed income rates, everything. they will probably make a lot of money in the foreign exchange trading. where they probably struggle is top five, in the especially in rates and slow credit. do not make a lot of money in prime brokerage which consumes a lot of resources and balance sheets and is impossible to make a decent return on that. this is a new area where the ceo should focus. the previous management was unable or unwilling to do that. olivia: why did they ever think
having to co-ceos would be a good idea? back then they had to pacify the two camps within deutsche bank. they cannot find a person who the rightably be representative for both camps. i think they have found that person now, and he has said very clearly that he speaks german, he lived a couple of years in germany, he also lived in zürich but which is a germans be part of switzerland. he was 25 same time, years later in the investment banking. theill be able to pacify conflict in the bank and to represent both camps. they did not have that person three years ago, they have it now. for joiningk you us. shares of deutsche bank of about 5.5%, still trading where we will value -- well below value.
olivia: this is bloomberg market day. i am olivia sterns, here with pimm fox. uber has been dealt another regulatory blow. the bright cherry company has been worse to shut down service from east hampton to montauk after the local town board changed it taxi rules. they now require every taxi driver to have a physical office in the town, and uber says that is impossible.
there is no homogeneous rule that would govern this. olivia: it is interesting that the municipal authorities have their own reason for saying that nned fromld be ba their town. can waita metered taxi for you. they have seized on is whether or not the taxi functions as a meter like it cab. in the black pimm: you give me the car, i will drive you around. olivia: that sounds fair. more on the bloomberg market day, including nba commissioner david stern. we will talk to him about the castle versus the warriors.
crossing the bloomberg terminal at this hour. president obama says cyberattacks are only going to get worse. chinese hackers stole data on millions of federal workers. the president said the government has to do more to stop these attacks. >> we're going to have to be much more aggressive, much more attentive than we have. this problem is not going to go away. it is going to accelerate. that means that we have to be as and asand as aggressive well resourced as those who are trying to break into the systems. olivia: president obama says the u.s. is upgrading its old system it uses to a detective cyberattacks. a grand jury has indicted a police officer on murder charges after the video of him shooting a black man. it shows him firing eight times as he was running away. and ma is coming to america
he is looking for more revenue. the alibaba chairman will be in new york this week. he will be pitching china's middle class as a growth market for u.s. business. itsaba only gets 4% of revenue from outside of china currently. he is trying to increase that to 50%. china isame local from learning there really is no such thing as a free lunch. the chairman one-day charity auction to break bil bread buffett.en that is a look at your top stories. count includes much more including going to turkey worthy president loses his majority in parliament. when that could mean for the future of the country's economy. are increasing pressure on greece to revert.
latest on thehe negotiations. plus, apple is expected to announce its new streaming music service today. we will have the latest announcements from the worldwide developer conference with begins at the top of the hour. wherego back to betty liu she is standing by with the former nba commissioner david stern. betty: thank you. thank you for joining me today. , it is gettingnd windier and windy here is the day goes on. did you see the game last night? >> just happened to catch it. betty: incredible, right? >> it is the last great life drama in the world. betty: it really is. lebron, did you think he was going to be able to carry the cavaliers as he has? >> the answer is yes.
he did it very well, he has a fair amount of incentive to go with a lot of determination. betty: as you saw last night. >> i think he is having a lot of fun playing the leadership role now. he is the older father figure on the team. betty: the mentor. yout of people do not know are an advisor. >> when i am there they call me the outside world i'm senior adviser. i carry two different cards. i like the intern card better because it really demonstrates that there is much to learn when you go from one business to picking up on venture capital. i think there is no greater place to learn than at great cost partners. an simple buying
this. but you're going from leaving the commission of the nba for 30 plus years to now many different hats, one of them you are being an investor. fantasy sports. why did you want to get into that? >> there are a number of great companies that invested in. newthe opportunity to watch communities being formed, because forces always about communities, there is a community in transitional sports like draft teams or places where people are not betting the outcome of how players perform - - i don't like to use that word . but this is a new phenomenon asiastarted off shore in where it is usually popular --
hugely popular and washing over to the united states to the point where medicines where garden is going to be an ease sports event with 20,000 people filling the garden. on top of that, you have a plot about which teams are going to do well. i would like to see that because i think in august, two other exploitations of community gather. live: it is going from gamingto almost online to the fantasy teams. our draft is really about fantasy teams. are hundreds of thousands of teams or individuals that compete every day in these large gains. a board,f competing on a typical sport, this is a gaming sport command and the whatmes of those games are
the fantasy sports players are actually betting on the outcomes. it is a new, very large .xploding, particularly in asia we have spent a lot of time at the intersection of media and tech knowledge he. we're looking at huge the stiffer areas where technology is looking to change. technologiese increase the rights of people watching these force prevents us he gets these people even more deeply engaged in the outcomes of different games and get them to engage more deeply around that. the same thing is happening in video gaming. if you ask a young person game they probably played more times been watching the
game. we will have to find an based one.l past we're going to distract them with important facts. you were just saying that you hate the word betting. but out of silver came out in onport of legalized betting sports. how do you feel about that? >> i support that. over the years and things have shifted we have moved the nba away from a whole lower prescription where we could allow casinos. we were not take as from casinos , a lot of things. but really, once fantasy was released into the atmosphere,
and people could in effect aggregate players and have daily fantasy, but not season-long fantasy, i think the distinction between daily fantasy and sports im.sufficiently sl betting will be legalized. and that is a good thing. itis a reality, and i think is a serious question whether it can be done right because it should be done at the federal level. should be regulated at the federal level because the thing that would make it very bad is if you have 50 states trying to have different kinds of betting on sports. that would be a no-no. betty: another area which leads well into what you are doing is advertising. advertising and sports are puttingvery well, but
ads directly on uniforms -- >> everything that is different is the same every decade. there he used to be a big thing of having insertions in programming. there would be a bottle of coke the soap opera table. and sports has been doing that for years. the courtside signage, the steps as then the cap camera picks up on it the clock has advertising, boards has been using advertising in that way for so long. betty: wasn't it a third rail, you did want to touch that? for a long time, the nba was, and still is the only sport that did not happen in a logo of a program manufacturer on the
stadium floor. i think that is about to change. whethertion becomes advertising on uniforms will find their way. in the women's basketball association we have teams answers on the jerseys. can the league be far behind? all one hot, because if you are selling significant sponsorships on your television programming, and we shut off the signage for network games, the question is do you allow the uniforms to be there? be workedissues to out and valuations to be made. betty: we are talking about fantasies lawrence and online sports. at least that might be free of some of the controversy we have seen into it sports links. thinking about fifa in the last
few weeks -- >> just to throw in one that were thinking about. criminals of bribery -- [laughter] what is the question? how much would it cost? betty: why don't you take over fifa? [laughter] >> i will tell you what, i am not admiring of the i amistration, but admiring of what they have done that that's sport over the last 20 or 30 years. theatched everything, even english premier league which is the most successful sports league in the world. shows youorts just the power sports and shows you the opportunity. all of the english soccer teams establishing
beachheads. we, the nba, are trying very , which are our games televised in 200 plus territories and countries. we are competing on a global level. betty: is that fixable? >> absolutely. throw the bums out. betty: that's all it takes? >> it is interesting. 209structure of fifa has countries or thereabouts. each one has the same boat. someone from a country with the 6000 people has the same boat as someone with a billion people are more. democracy is only good up to a point, because you can influence that more easily at 6000 people. i think they're going to have to change the structure. internationale
basketball federation, i think there is a more intelligent structure with a central ward and an executive committee that makes decisions that are not voted on by 200 plus members. betty: centralized. >> democracy is a little overrated we're trying to run any work. that is all i'm going to say on that. of fans ofve a lot the control room. they are asking the right now, if you had your own nba dream team, who would be your first five picks? >> i grew up in the age. , magic, larry, and i cannot even say shock as opposed to kareem and michael. isaiah was one of the great point guards.
i could name them all. betty: steph curry? tough game last night, but he is one of the great shooters lebron is just the greatest. physicallyost impressive athlete that i have ever seen. he is the determination that was all out there last night and was spectacular to watch. betty: they had their hearts out there yesterday. they really did. thank you for joining me. >> you guys in the control room, get a life. [laughter] betty: they are howling in there right now. for joining me, both of you. back to you, olivia. talk about stocks and bonds all day. getting to talk about lebron is the life. still ahead, it is much more,
they denied the ruling party a majority government since 2002. ext interfaces n politics. isthe most likely scenario able get together with the majority party. either way, many analysts reckon that we will be back here before long, fishing -- facing fresh elections. on the plus side, with these elections do show is that turkey democracy is very much alive and kicking. turning to asia now, china's economic slump continues. the latest trade figures worsening greater the domestic economy is in need of policy support. we have the details from hong kong. the growthence that
target may be under threat as ats towards have managed down third one down 2%. imports slumped 18.1%. it is the seventh consecutive month imports were down on thatsiting price weakness commodity price weakness and lower demand. u.s.ents to the contributing the most since august of 2010. u.s. monetary policy will need to continue to ease to support sluggish demand in china. and what isa look happening in the united states let's go to julie hyman for the big stories of the market day in lower,stocks are trading some of the biggest are the casinos. , they are down again revenue is trending lower
than normal. looking at airlines, they have frequently been on our recent days. there are concerns about overcapacity in the industry. the effect that will have on pricing. we have raymond james weighing in on this issue today. assaying the u.s. airline recovery be somewhat muted because of the u.s. economic atlook as well as sort of price final potentially between american and southwest. you can see american airlines, delta, are all lower and even the company that was mentioned as a favorite by raymond james .s lower, talking about spirit bloomberged the airline market because it has entered a bear market. decline,ore than 20% the entrance of a bear market. happenedok at what's
over the last five years. this is after a huge run-up in the airline stock on capacity discipline that we saw the industry. pricing power and also, a lot of hedge fund managers have been investing in those airline stocks. we will see if they stick with it now that they have changed direction. olivia: still to come, much more including greek finance minister speaking right now in berlin. exasperated grows, but they are digging in their heels. every day counts for greece. ♪
and look at athens to make even more concessions. joining me is jacob, senior fellow at the national institute for economics. good to have you on the market day this morning. we just heard president obama speaking in bavaria saying that greece needs to do more, offer even more concessions. he also say that creditors need to meet them more in the middle. greek unemployment is at 25%. they are coming off of six years of recession. what can they do realistically? what can they accomplish? the greek government can do quite a lot. i think it is true that the economy is still in recession, but a lot of that has to do with the specific uncertainty that the unwillingness of the greek anernment to enter into agreement is causing. what they should do is sign up to make the greek pension system
sustainable in the long run. they should sign up for further labor market reform. they should do many of the things that the troika demands, because this is what the greek economy needs in the long run. times, in the financial they said there are two proposals from the table, one from the creditors, one from greece, but neither of them will fix the economy. to do you agree with that? in the short run, the greek economy will continue to perform badly because of the lack of credibility and certainty about the political direction of the economy on the country. if you look at the long-term perspective, what is needed is not more spending by the government, it is not hiring of more civil servants and it is kind of reforms that are included in the troika program. they do offer more to
creditors in terms of the way of concessions, that could do a lot of damage to his party, the radical left coalition. us -- what isisk the risk of political crisis? whether ortion is not we need to have a new referendum or election campaign. i do not think at some point he is going to have to adjust to the fact that he lied to the greek people. he's going to have to adjust his rhetoric to reality. olivia: sorry to cut you off. thank you. ♪
streaming music service. all of the latest announcement from the worldwide developers conference, which is getting underway right now in san francisco. shares of deutsche bank jumped the most in two years following the announcement there will be a new ceo. the maker of guinness and johnny walker higher following a route or a billionaire accor is considering a takeover bid. ♪ olivia: good afternoon. i am olivia sterns. mark: i am mark crumpton. taking a look at the markets on this monday. stocks declining, extending a recent long. investors weighing the timing by the fed. they are also concerned about a possible debt default by grief.