tv Bloomberg Markets Bloomberg June 22, 2015 12:00pm-1:01pm EDT
welcome to market day. the head of the eurogroup saying there might be a basis for a deal. global stocks verging on the news. taylor swift gets apple to change its tune. not before stirring up a bit of controversy. betty says why is baking food now to draw and the younger crowd? pimm: good afternoon. betty: in has been a rally here in global stocks raced on what looks like progress.
up byn see the s&p is 7/10 of 1%. the dow is trading higher. treasuries were sold off based on the rally. oil prices, let's look at how oil prices are trading. nymex down. pimm: the yield on the yield on a 30 year, 3.13. let's look at the dollar. 11372. the yen losing a little bit. let's take a look at some of the top stories crossing the terminal. a possible step forward in the greek bailout saga.
-- is offering a new plan that will raise taxes. the european commission's vice president tells hans nicole's it is a step in the right direction. >> this is going into the right direction. we are not there yet. there is further work to be done. before we can reach an agreement, we need to work intensively in order to reach a deal this week. greek banks are trying to slow down the pace of withdrawals. walk-in customers are being unofficially limited to taking out about $3400 worth of euros. ashton carter says the united states will contribute an array
of weapons, aircraft, and commandos for the rapid reaction force to help defend itself against russia and the extremist from the south. that was announced after meeting with defense ministers. carter says the united states is committed to the defense of europe. flew a gyro copter through restricted airspace says no to a plea offer. the deal would have meant prison for douglas hughes. the flight was to call attention to the influence of take money and politics. it is more likely his case will go to trial. reached aes of homes five and a half year high. the highesttched level since september 2012. the prospect of higher mortgage rates may be driving these sales. the supreme court will not hear an appeal from a trustee.
last year, a court ruled some customers received more in payouts than original investments. more supreme court news will be later this hour. anthem deals with rejection. is going back with the same offer for cigna. cigna has already rejected the bid, calling it inadequate. before today, and them said it has made four offers. "jurassic world" has posted more than 100 million dollars in its second week.
not far behind, "inside out. code -- inside out." those are your stock -- those are your top stories. we are telling you about a plan to get 20 macro traders a chance to home their craft. cigna rejects a bid from anthem, but anthem is pressing on with the bid. it could be the largest ever in the health insurance industry. betty: dairy queen turning 75 years old. we will tell you how they are expanding with new menu items, including hot sandwiches. watch continues.
a breakthrough in financing talks. the finance ministers, maybe they should curb their enthusiasm. they have not reviewed specifics and it is too soon to expect an accord. >> they need to look and see if it adds up. whether the reforms are comprehensive enough for the economy to take off again. you have to have some patience. betty: traders drum their waiting for the next round of meetings. londonto bring in -- of and hans nichols. finance ministers are going to meet and guide johnson in athens. how do you feel about the debt
talks, given what we have seen so far today? this came in optimistic morning, that something would get cobbled together. used to this game well enough to know it has happened today. whether they can get it ratified home in athens and by the various parliaments who will meet to sign off. we have a long way to go. belief, we are not going to get a fantastic deal that makes the problem go away, but something will be agreed over the course of this week and that is good enough for us to move our attention to other things. it has been good enough for the euro not to fall and for equity markets to rally.
han says what about people in greece? to they believe a deal will help their daily lives? the guy says there are two ways thereking at that -- guy: are two ways of looking at that. most people in greece want to remain in the euro. here is the paradox. they want to remain in the euro. they are desperate to hang on to the euro, they are taking it out of the banks as fast as they can because they worry about what the next few days will bring. the ecb has to put money in. tomorrow, we will have another ecb. they will have to put more in as well. it is a bit of a paradox. the square right now, making their voices heard. they are very nervous about what will happen of the next few days. they continue to take money out.
over the last five years have learned their lesson. isy are skeptical about what happening here and what is happening in brussels. of run on thepe deposit in greek banks is on the and angelaipras merkel. how is this meeting going to play out? tom: -- hans says they are look to make everyone wants sure the math adds up. the greeks have come forward with a credible proposal. what we do not know is whether or not the technical institutions will ratify this and bless it and send it back to the eurogroup when they are likely to meet again next thursday to see if everything makes sense in terms of meeting their primary budget surplus.
to theirs agreed budget surplus. in some ways, it has turned less into a brussels story. see whether or not these parliaments are going to improve these new proposals. what does the proposal due for the greek economy? >> the greek economy has gone and and warmest distance back. from this point in time, keeping liquidity into the banking system and avoiding the collapse , which would kill the economy, i do not think it kills the economy, but there is no way the measuresp
proposed, standard rate of consumption tax up to 23%, raising retirement age is, pushing that up, none of these is painless. the economy, it would be at the point where you hope you have the kind of banter you are seeing in spain. that will not be happening in greece any time soon. kill it, no, but it does not get it running on the streets. is austere,er it somewhat austere, is it going to get sold in parliament? take histsipras partners with him? air have been speculation here. he may struggle to do that. ofave talked to a number people today. they think may they lose a few mps. broadly, it will be backed and they will get a proposal pushed through. of the still has the ear
people. he is popular enough to make this happen. to getasier for tsipras it through there and angela merkel. she is facing difficulties as well. not find it easy, but with so much at stake, the sense is they will get broadly back. if there is an agreement, how to they monitor the greeks actually carry it out? : they want to see the greek parliament passed something. there is it well on all sides here. especially from creditors. they want to see some kind of sign of good faith. they commit to these reforms and making thesens to
pimm: welcome back. let's get a check on the markets. betty: some of the movers. starting with carnival. >> the stock is up nearly 2%. sinces its highest level october 2007. this, after deutsche bank raised it's called to buy. revenue for the quarter is $3.6 billion with an eps of $.16. carnival reports earnings tomorrow. micron shares ticking higher. they had fallen 1.5% in pre-markets. this is after goldman sachs cut its call on the stocks. 40% fall.ts a 20 to
that is bread-and-butter. out of ane initiated outperform over cowen. theirto sell are at highest in the entire past year. look at the red. as of june 21, 11.4% of analyst said they were going to sell. a lot of people saying you can buy the stock. take it as you will. sequential brands will buy martha stewart living. not much moving
today. the stock is at highs not seen since 2006. martha stewart living is down 12 % or so. if you think you might be concerned about martha stewart,
you do not have to. she is sticking around with the company. she will be the chief creative officer. pimm: thank you. let's look at some of the top stories crossing the terminal. has agreed tonds buy martha stewart. .15 a share. martha stewart were serve as the chief creative officer. they have lines -- sequential has lines
such as jessica simpson. off -- dropping artificial food colors from its cereals. tricks and rhesus puffs will be the first to be changed. cereals will have no
artificial ingredients by the end of 2016. other companies have said they are removing artificial ingredients from some or all of their products. starbucks doubling the size of its loan program for coffee farmers. aimed at helping starbucks maintain its supply of ethically sourced coffee. extra $30commit an million to this program. paul tudor jones is giving young traders a launchpad. launchpad trading it's a joint venture that will give 20 young macro traders to -- a chance to hone their craft. tutorl be funded by capital. currencies and stock indexes to get a spot, candidates need two to six years of global macro experience.
while we are on the topic, i want to mention that we paid lee oftoday to jimmy jpmorgan. he died unexpectedly on wednesday. that he, you have returned from his memorial service. betty: right. thousands of people gathered. it was a who's who of wall street. dimonyou said jamie delivered -- betty: the first of three eulogies. he captured who jimmy lee was. someone devoted to family and , jpmorgan, but also his early years. williams college, a huge supporter.
a few times jamie did choke up during his eulogy. jamie dimon had been previously diagnosed with cancer and has undergone treatment. you mentioned an anecdote about jimmy lee coming into office. betty: they were close. they were partners for decades. jamie recounted how during cancer treatment, and jimmy would walk into his office every day and give him a hug because he said -- i know you need one. these are guys who do not show emotion much. they are leaders here. it was a touching moment to see these two were not only strong stalwarts and partners, but very close friends. it was a moving tribute. when we were talking about paul tudor jones, jimmy lee mentor hundreds of people.
we are determined to move quickly to complete this transaction. this: let's get more on with ed hammond. how many times has anthem gone to cigna? we count this as the fifth. possibly, number six. betty: how are they going to get this deal done? , the reason cigna does not want to do this deal is the chief executive wants to be chief executive, president, chairman, and head of the integration committee. how they get it done is a good question.
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hour, the supreme court has rejected an appeal in a case involving the street view mapping system. group -- google has been accused of violating patents. ahead.ts can go it allows users to view and address from different angles. russia says the european union's hurting itself. foreign ministers have extended sanctions for six months because of their support for rebels fighting in eastern ukraine. the russian foreign ministry says it could cost europe millions of jobs. it includes limits on trade and investment. a report on the gaza war has found israel and the palestinians may have committed war crimes. israel launched a defense of july in response to have the rocket fire from hamas. officials say more than 2000 palestinians were killed in the onhting while others died
the israeli side. israel slammed to report as biased. angus king of maine says he has been diagnosed with prostate cancer and will undergo surgery. he says the cancer was discovered early during a annual checkup and has not spread. he expects to make a full recovery. jesse jackson junior has been released from a halfway house in baltimore. there since his release from an alabama federal prison in march. the younger jackson, a democrat, was serving 30 months for $750,000 in campaign money on personal items here in jack dorsey will have to give up his post at square if he plans to become the ceo of twitter. considering candidates who can make a full-time commitment to twitter. twitter had a successful stock
market debut but has not made a profit and that is a look at the top stories at this hour. coming up, for the first time, more adults are taking attention deficit drugs and kids. why the use is on the rise and what is next, what did means for the pharmaceutical business. and then the latest on how taylor swift convinced apple to change its policy. on june 30. and a crucial meeting on greece, inside from nick burns, a former ambassador to greece and a professor. at dairy queen today, customers down some hot new options. dq biggest menu change ever, is introducing heated sandwiches and warm desserts, responding to
change or consumer taste. with me to talk about these changes and their anniversary is the president and ceo, john. great to see you. to see you.at we are not in omaha this time. usually we are at berkshire hathaway meetings. congratulations. 75 years. why introduce hot sandwiches now? a 75-year-old brand, we are constantly changing. we are responding to the needs of our consumers and today consumers want healthier options and they want more made for you options. so our lineup, we have sandwiches, snack melts, and our dq treats. when you put the famous dq softserve on top of those streets, they are wonderful. betty: i am looking at some of
these items. the triple chocolate brownie. turkey blt. chicken bacon. have you tried all of these items? i have. this has been underway about three years. it actually was discovered in china. we are -- we were working on a project and we said we really think we can offer something other hamburger chains do not have. so dq bakes. betty: who are you targeting here? john: well obviously millenial customers today are looking for more options. at dairy queen, we span all generations. a recent survey came out and dairy queen did as well as anyone from boomers all the way down to millenials. when you look at the menu, we have a combination of almost any
product from our great softserve, the number one and we havezard, green tea, for the asian markets. you know, we really want to have food, treat, and beverages. betty: how about your franchisees? mcdonald's and the menu items over the years have created a complicated kitchen. too many items in the inventory. how are you dealing with the franchise? john: that is a great question. in 27e over 6600 stores hundred countries. -- 27 countries. into two tests markets. our franchisees said we want to launch this. it did require an investment.
by working with our franchisees, they have embraced the concept. we do constantly look at our menu and we do remove products from time to time. betty: do you expect you might have to adjust? we actually have. right now we have completed about 70% of our launch in the u.s.. they have the platform. and we did change our menu and remove some slower moving items. that is what franchisees desire to see. betty: there is a healthy food movement, right and you are in the business of selling treats. selling desserts and ice cream and as we showed you, the triple fudge brownie. how do you grow the consumer the of millenials while at same time selling what people see as a high calorie food? john: sure.
about 45% of our sales are actually food. dairy queen, we have become a full-fledged qsr. and treats.ges, it is about a great mixture. several years ago we launched our own buck lunch and -- orange julius product. many of our customers come to dairy queen to have a great smoothie. our salade upgraded program. those items are made in store for customers and we really believe our customers will love those products. taking out about artificial ingredients, the trans-fats and hormones? are you moving in that direction? the whole industry is. when you look back four years
ago, we started removing trans fats from our products and of .5 grams peras serving. now there is new rulings that to completely remove trans fats. equally as important, about a month ago, we removed, or will removed carbonated soft drinks from our kids menu. mothers said we don't want to walk into a store and see our children, they can get a soft drink with their kids know. it is still available, but starting in the fall, milk and water will be the only options available and advertised on the menu. betty: how about warren buffett? how does he feel about this edition? number one fan. he has probably tried every item on our menu. i know there has been a lot of press about his eating habits.
everything, it is about eating in moderation. we know we are going to buy and consume food we enjoy. it really is about eating in moderation. betty: it is amazing. wise ande world's most successful investors and eats like a five-year-old. that is his taste. cherry coke, hamburger. john: see's candy as well. betty: great to see you. president and ceo of international dairy queen and not justad, it is kids, more adults are taking adhd medication. we will tell you what it means for the pharmaceutical business next. ♪
welcome back to the bloomberg market day. take a look at the european markets, rallying on the back of greece. what an even ordinary day. there was definitely something in the air on the day of this emergency summit in brussels. every single western european stock market finish the day higher. some astounding stats. germany, the dax, the biggest gain in three years. the cac 40, the biggest gain in three years. the ibex 35, london, the ftse there is the one that
matters. it is all about greece today. the biggest increase since february. look at some of the moves by the biggest gainers. 23%. it was not all about greece today. the french telecommunications sector was on fire today. , we hadthe big movers to buy the wireless division for a proposal worth 10 billion euros. gilead shares also surging 11%. acquire somes to of its assets. an incredible day for european stock markets. note, to finish on that the euro stoxx 50, the benchmark index of european blue-chip
shares. on this day of this emergency summit in greece where the dutch finance minister there is a chance a deal could be struck this week. we saw the biggest increase for three years. every single stock rose 2% or more. definitely something in the air. i'm not sure i can take it. right, mark. he is excited. the chinese market is going to reopen tomorrow after a three-day holiday. last week the worst selloff since 2008. riveting those has that story from hong kong. david: chinese markets were shot on monday. on monday. 13% drop over five days. the reason i mention that is investors very heavy on the retail side.
comments we are likely to see a bounce back. the question is if that would be a technical balance. this is the biggest test so far. u.s., for the the big stories, and of course the markets taking the lead from europe. >> right now we are seeing a broad best rally. the s&p all reaching for gains of 1% earlier today. they have since pared back those gains, hitting around two thirds right now. the mat -- the nasdaq did hit an all-time high today. two points away from the s&p. in addition, i want to take you to the bloomberg terminal. staying bullish on the s&p through the end of the year. they are sticking to a 5.8 percent rise despite greece and what is happening in europe and also of course a slowing china. thisvember we did see
inflection point. thetayed high ever sense, u.s. economy is too strong for us to see a pullback. oppenheimer says people are turning to equities and away from bonds. $10.3 billion was pulled from global bonds. 10.8 was invested in equities. leading the way, the health care and financial sectors, jumping about 1% on the day. the s&p health care index sector hit an all-time high. it is the best-performing sector this year. up 12%. the s&p financials also hitting a nice milestone, touching a fresh seven-year high as stocks like jpmorgan and goldman lead as well as the dow. one final thing, diving deeper into the health care sector, anthem is not giving up. to company said it is going
reiterate its proposal to buy sigma. cigna says the management is not fit to lead and they both are trying to -- trading at all-time highs. so at least shareholders seem to like this deal. you so much, some of the movers. some of the top stories. apple andft versus the finger came out on top. apple has reversed a decision to not pay royalties during free child's for its music service. swift and said she would withhold her new album from apple music. she wrote we do not ask you for free iphones. please don't ask free music for no compensation. smaller.. plans to get it will consolidate or sell 100 branches and take a charge of $85 million in the second quarter.
also lookys it will to sell 30 other properties. one reason, they have made improvements to its mobile banking option. or people are going to yellowstone national park this year. the park recorded more than 515,000 recreational visits through may. that is an increase of 24% of 2014. the national park service says a is partr-hours counter of this reason and it also credits a mild winter and in early spring and those are your latest top stories. adults have trouble staying focused to according to shire. u.s. adults take more prescription drugs for adhd than children. adults accounted for 53% of the u.s. prescriptions for adhd drugs last year. that is up from 39% in 2007. one reason is the symptoms are often persisting into adulthood
and others are getting tested. this news is that companies like shire, which makes the adh drug. sales have soared as competitors like ritalin lose patent protection. i want to bring in mark crumpton on this. mark: how shocked for you when you saw this? i found it disturbing because it is one of those things where people find out afterwards, your kids have it and you know what, you might want to get tested. it is usually the other way around. the shire ceo was quoted in our call, a recent conference we shifted more effort into the adult hd hd market, which is half of the overall market and has the highest growth. betty: it is disturbing. there may be a couple of reasons. we outlined a few.
diagnosede are being as accurate. you also wonder in this hyper competitive environment, some , you hear about a report of people taking these in order toof become high-performance. to perform better. it is so competitive. mark: we did that story. ,here is no causal link between remember goldman and the interns , them working. you had people burning the midnight oil. that is an understatement. people working longer hours in this job environment. the last thing somebody wants to be is unemployed. you have people working from dawn until dusk and they are trying to get some think to keep them alert. betty: not to make light of this, we all have a little adhd
in the news business. mark: that is an understatement too. betty: a lot of high performers joke, you have to be add to compete. you know what, i don't mean to be funny, you talk about we have that, we have the ego, too. you're saying, look at me if you're up here. , greece. we will discuss that. the former ambassador will be joining us coming up in a few minutes. he will give us some fly on the wall perspective about what is going on. talks about,amy the market seemed to be optimistic there will be a resolution to this. they have until the end of the month. we'll ask ambassador burns about that and i will see you in a few minutes. betty: thank you. coming up, we hear you, taylor.
taylor swift less than 24 hours to make apple back down and agree to pay royalties during the free trial period after swift called it shocking and disappointing. it is a rare public about-face for apple. we senior vp tweeted said hear you, taylor swift. tim cook and company have another headache on their hands and we will tell you about that in a moment. paul barrett is with me. before we get to this headphones war, is taylor swift really this powerful? paul: certainly she is very popular.
this also reflects apple's anxiety about its place in the new music ecosystem. apple is coming to this battlefield a little bit late. there are startup services like spotify that are off the ground and there are some questions whether apple will compete successfully and i think what you see is a lot of uneasiness within apple such that they are willing to back down in 24 hours based on a little social media harassment from one artist area there is a lot of flux betty: in this segment. it is interesting. they've got another headache. related, in a way. who started a company called monster cable. they have made audio accessories going back to the late 1970's.
monster was also the company that manufactured beats headphones, the phenomenally sex-role headphones backed by successful headlines backed by dr. dre. $3ts was sold to apple for billion. beats electronics and said i should have been cut in on that deal because i'm the guy who actually designed and manufactured those headphones. now we've got a classic business fight in court over who deserves credit for these iconic headphones. betty: so interesting. paul, thank you so much. much more ahead on the bloomberg market day. ♪
deal. leaders are meeting for an emergency summit on greece. markets and policy makers are optimistic a deal could finally get done this week. what do the stealth bomber having, or, the training simulators are all made in orlando, florida and they are branching out into commercial flight training. mark: health insurers are about to get bigger thanks to a wave of consolidation by obamacare. who will be left landing -- standing? betty: good afternoon. i'm betty liu. look att's begin with a the markets. wall street is joining global markets in rally mode, stocks rising on speculation greece will reach an agreement with its creditors