mark: from bloomberg world headquarters in your, i am mark crumpton. this is "bottom line," the intersection of business and economics with a main street perspective. to our viewers here in the united states and to those of you joining us from around the world, welcome your it we have full coverage of the stocks and stories making headlines on this monday. we begin with greece racing against the clock again three days before the european central bank's next decision on emergency aid. greece and its creditors concluded four days of talks.

people familiar with discussions tell bloomberg that although some progress has it made, both sides are still far from an agreement. the greek government is still opposed to cutting pensions or raising the sales tax. still, officials they greece should have enough cash to make a $223 million payment this week to the international monetary fund. john glover joins me now on the phone from london. thanks for your time. how we view described the atmosphere of the talks? john: i was not present at the meeting, but it has been ascribed as tens although more constructive than it was with the finance minister -- but it has been described as tense. the finance minister is controlling things from afar. mark: is greece in a position to be drawing lines in the sand at

this point? john: well, that is the question everybody is asking themselves. the answer is not really, but -- the trouble is everybody's options are quite limited. greece is going to run out of money. the eu will have a major issue if it forces a default and greece has to take the next step, whatever that happens to be. difficult. tense negotiations, yes. mark: how much will signs of dissent within the prime minister's government complicate a final agreement? john: that is a good question, too. there is a faction prepared to use what might be called the nuclear option of basically

quitting the eu. away for greece to exit the euro. it would be like leaving the european union. it seems there are some factions on the left of tsipras'party who want to do that. most people say that is unlikely because the damage would be enormous. it would not be welcomed by the other europeans. everything is going to go down to the line. it always does with greece. most reports say a compromise will be found. mark: if an agreement is reached, it will be an interim one so greece kenexa's emergency funds. after that, what will it take for greece to meet its obligations? john: lots of money.

greece -- it is really hard to see what greece can do effectively. they are scraping the barrel, and you can do that pretty hard, but sooner than later, you come to the end. they're living on drips. their banking system is kept alive on drips from the european central bank. it is generally not a position you want to be in. the aim of the program is to get the economy humming so it can at least come off emergency funding. that has not happened with the previous austerity. nobody is going to claim it has worked. it has made things worse. nobody wants to reword the greeks -- reward the greeks.

there has to be a compromise. mark: there have been concerns expressed about possible greek contagion should the talks fall through. how have investors been dealing with the roller coaster nature of these talks? john: people are waiting until the last minute. at the last minute, the have gone oh and then they sell. compromise is reached and they go, oh ok. that is happening this time. people are largely -- there has been some widening in some of the bonds. people seem to think that contagion can be contained. at the last minute, they will panic. mark: bloomberg news reporter john glover joining us on the phone from london with an update on the greek debt talks. thank you. the 20th annual sohn investment conference is underway in new

york. it brings together the savviest investors to share insights and strategies. stephanie ruhle is standing by with jay walker, chairman of lockard digital, best known as the founder of priceline.com -- she is with the chairman of w alker digital. stephanie: jay you finished your remarks. people poured out of the auditorium saying your speech was scarier than hell. what does that mean? jay: it turns up that these lightweight drones, when you combine them with new bio weapons, make it possible for private individuals to learn how to attack and terry economies. the world has changed, stephanie. it is changing so fast that we're stuck in our line thinking that we have all this big powerful infrastructure, but we lost control of 3-d airspace and we lost control of bio weapons.

that is at the problem in the united states, and we need to talk about it. stephanie: how realistic are these threats though? it sounds like it comes from the movies? jjyay: in 1993, called in japan center anthrax scores, which they do not realize with a vaccine square is printed at 500,000 people in tokyo vaccinated for anthrax. all of them would have been dead. the world has changed. we talk about innovation, and we spend our days talking to chief innovation officer's. here is what i am here to tell you -- the world is innovating so fast that so much of this if that is really good is good, but so much of it has a dual use, which means we need to talk about the negatives and the positive spirit 70 cups how can this be responded to and managed? jay: civil society needs to come together. stephanie: your depending on government question -- your

depending on government? jay: you need to talk about these things. at ted matt, we are willing to bring those things together. -- at ted med we're willing to bring these things together. stephanie: are these individuals willing to do that? jay: the good news is that social media cuts two ways. when we have these attacks, they will break out. we need to get social media to make weekly with good and accurate information. we will have to use tools like twitter and facebook and youtube and wikipedia. we need to get organized in a civil society so that when the bag actors act badly, we have a way to counter. there is no other way to play this game stephanie: if the genie cannot go back into the bottle, are we better off being a connected world? jay: because it is the only

world we have got, yesterday it when you can fly a drone over stadium and kill thousands of people, we have to change the world on where you can fly drones -- we had to change the rules on reagan fly drones. we have to catch up so we're looking at the site -- the kind of threats in the civil side he, and the business world. not just governments. it is you and me in the business community coming together to work on this. stephanie: i love this idea, but you're talking about the business community. they're not thinking about things like this. jay: they are actually thinking about cyber weapons. stephanie: but they are thinking about it from a defensive perspective, not proactive. jay: you rip are we have to use te -- you are right. we have to use tedmed and things like youtube and twitter to combat this. we hear all the time that if 70 with step up and ask us to help we would figure it out.

-- if we would step up and as to help, we would figure it out. it will be the backbone of a civil society response. that is what we are going to do. stephanie: for people looking at the global economy, looking for investment ideas, what do you want them to take away? jay: we need to recognize the fragility of the modern civilization is very high. this notion that the world is going to be the same integer years, three years, five years, not such a safe notion. you have to look longer-term. if one in a million shots are really one in 100 shots, it changes your investment philosophy. i am not seeing the sky is falling. i am saying the world has changed. most people do not figure that out until they fly airplanes into the world trade center. guess what it should not take airplanes into the world trade center to say small portable drones, while evans, changes the game. you may want to think about airline investments and the city investments. it changes the nature of real

estate. i am not saying it is tomorrow. it is an understanding of how the world is changing. stephanie: should there not be use of commercial drones? jay: it is hard to say. i think no. they are too dangerous. it is like saying to mercer use of m-16 rifles. if you take a commercial drawn with gps programming, you can fly it over a school. that is not going to work for america. there are too many people who would kill everybody if they could. we are going to need to change the rules. whether we change it before the first attacker after, we are going to change the rules, just like we did before every passenger had to get on an airplane and go through screening. are the longest time every but he said there is no way they would screen every passenger. stephanie: scare us more. be honest. you know who our regulators are and who we elect to run this country. are these people and the budget equipped to understand and manage any of this information you are sharing?

jay: governments are good at certain things and not good at others. they are not good at communicating and not good at being trusted. if we want to communicate and be trusted, use governments. we will need private organizations like the red cross, like youtube, like twitter. people will say hey, i would be willing to trust that if it were truly a global organization that people knew. stephanie: i am so glad you did not say trust hedge funds. jay, good to see you always. mark back to you. j walker just scared the life out of me, so i need to get a drink. mark: thank you both to our next, a general motors milestone. we will look at gm mary barras' plan to drive growth, next. ♪

mark: welcome back. general motors reached a milestone today. matt miller was at the plant in kansas city, kansas, for the announcement.

matt: i am at the gm plant in fairfax, kansas where the ceo, mary barra, and of a company sold its 500th million car. she also announced the company will invest another $174 million into this plant as part of the bigger $5.4 billion u.s. plant investment that gm announced earlier last week. she also gave us stunning sales numbers peerless intuit mary barra has planned for gm sales. mary: during 2015, we expect to sell more than 1000 vehicles per hour five hours a day. that adds up to nearly 10 million units, the most in our history. matt: that is part of a plant for 10 million dollars in total annual sales for general motors alone. in a closed meeting for journalists after the ceremony today, mary shared her optimism that the entire industry could get close to 17 million units for the year.

as part of that, gm has announced its new chevy malibu the 2016 model. the announced at the earlier in new york but here in fairfax, it was also big as she gave one away to a veteran and said she will give more away to loyal general motors customers. gm is focusing its efforts, first and foremost, on customers since the ignition switch fiasco last year. however, customers seem to prefer a larger truck. as gas prices stay low, gm is selling a lot more of its high-margin big suv's and big pickup trucks. last month, the cadillac escalade increased sales by 100%. it doubled or they also boosted sales of their other big suv's. a lot more than analysts anticipated. this is helping general motors right now. no one knows though if they are here to stay.

mark: matt miller joining us from kansas. jessica caldwell's chief analyst for edmunds.com and joins ray from santa monica, california. welcome back to "bottom line." thanks for your time. gm ceo mary barra was excited about what was going on today, but there were other elements to the gm story today as well. she said the company does not need to get involved in sergio marchionne's call for consolidation amongst carmakers. is that idea too radical? is that why the automotive ceo's have not spoken about this publicly? jessica: definitely. it would require a lot of cooperation between many automotive companies, his idea to consolidate these large multinational companies together for the purposes of r&d. i think that mary barra and others have their only five to 10-year plans and that was not

part of it. many are not commenting because they're staying the focus of what they had planned. mark: mr. marchionne said gm would be a feasible merger partner. but isn't that any idea that could be said of other industries, as well? jessica: that is definitely the case. seems like his point was that a lot of money is wasted by all of the r&d and even the production the cars are basically the same. and the end customer does not really know the difference between engines. enthusiasts would say the opposite. a lot is to be said for the same of other industries. a lot of r&d of articles similar, but what makes them unique are the things companies were caught to differentiate products. you would lose that with a consolidation of the major automotive companies. mark: how has mary barra done post-recall crisis, and how has gm dealt with the changing market? jessica: it has been tough for mary barra, but it looks like

she is at the point where she is focusing on other things beyond the recall. that has pretty much been all-consuming since she has taken over as ceo. gm is dealing with this market. a are selling a lot of suv's and trucks and that is where the whole market is. it seems like there is a big focus on suv's and trucks. it has been 20 months at light trucks have outsold cars. a lot of people are opting for these kind of vehicles. a lot of suv's are fuel-efficient, but that is were the market is right now. it can change of gas prices dropped. that is something that is happening and that automakers are dealing with. mark: you mentioned 20 straight months of americans shifting away from cars towards suv's. how do you explain that? jessica: i mean, you have a few things. you have suv's getting better fuel efficiency. many that are sold today are smaller compact crossovers.

they are basically tall cars with more utility. they are not really the suv positivist we have in our mind from the early 2000's. a lot of consumers see them as more utility. they are not necessarily super pricey, especially the smaller ones. people are making that choice. with gas prices being low, it has made it that much easier for consumers. mark: will this be a good summer for consumers looking to buy a new car because of improved sales of suvs? will the smaller cars be moving up -- moving off of lots at a faster pace? jessica: we're seeing small cars move pretty small -- pretty slowly. the suv's has swept the nation. i would imagine that as the current model year winds down, especially toward the end of the summer we will see better deals on small vehicles. mark: you mentioned about falling gas prices. how long might that continue and what will that mean for

consumers and might be in the market for a car? jessica: who knows where gas prices will go. that is a tough question. but they have been lower. they have craft up recently. but i think that for consumers, it seems like they're making really good choices. i think, for people, you have to decide what car you want regardless of gas prices. three dollars or five dollars. it seems as if people are making that decision now and not necessarily just buying smaller cars because they think gas prices will go up. people are buying suv's because that is what they need. fuel efficiency is better, so it does not necessarily not make sense for a lot of consumers. mark: jessica caldwell joining us from santa monica california, from edmunds.com. thank you for your time. next, more from the 20th annual sohn investment conference in new york. we will speak to the ceo of service a capital management

about his investments and outlook on health care consolidation. stay with us. ♪

mark: welcome back. this is "bottom line" on bloomberg television and streaming on your tablet phone and bloomberg.com. coming up, another report from the sohn conference. stephanie ruhle interviews dr. alexander denner of sarissa capital management. later the ceo of dirt candy talks about the minimum wage in the future of tipping. later scarlet fu is on the markets with a look at who owns send night tv. stay with us. ♪

mark: welcome back to the second half-hour of "bottom line" on bloomberg television. i am mark crumpton. we continue our coverage of the 20th annual sohn investment conference good stephanie ruhle is standing by with dr. alexander denner, ceo and chief investment officer at sarissa capital management. stephanie: alex, welcome. you are a health care investor, but unlike most to focus on health care, you say you think the whole sector is a little expensive. alex: that is right. we are very value-oriented

investors, sort of a boring investor. we think there's still opportunity out there in the health care market, but the median stock is on the it's big since side of what is written -- is kind of on the expensive side of what is reasonable. we are not predicting that the market will go up or down in any kind of timeframe. it is just that most stocks out there are at the high end of the reasonable valuation range. we look for things where there has been some change in valuation that is not recognized right the market are some disruption, that kind of thing. we will typically involved when people are unhappy with management or with capital allocation. that causes the stock to be a little bit of lower. stephanie: where you unhappy with arias? alex: we took a position more than a year ago initially. the stock cap fallinglen down to

about three dollars on some safety data. at three dollars, we bought about as much as we could. we have a board seat. at that time we wanted to get a board seat. we took a board seat and most recently, the last proxy season we executed a second settlement. as part of that settlement, we have an additional seat we're taking as well as the ceo will be retiring at we think this is a reinvigoration of the company. stephanie: what he do you think this company needs to do, and where could their stocking get to? alex: it is hard to put numbers on things like that. we're very optimistic. the company sells two drugs. sells one drug and has a late

stage drug for line cancer. two cancer drugs. very interesting early-stage pipeline. we think both of these drugs have had very interesting opportunities. there are clinical trials being run. they could be run in the future and could produce a lot of value for shareholders. stephanie: what is your thought on the stake to challenge patents on pharmaceutical companies? alex: the patent office has introduced -- the government has introduced a new way to challenge a patent, the ipr process. it was largely pushed by the tech industry, the idea being sort of to try to get around what was thought of as frivolous patents. i do nothing people had first

seen that it would be used for purposes of, ok, we will short a stock and then blow up the patent on a company. there is already a mechanism in place, the generic drug act, that allows for so-called first to file status good a new generic company's interest to find weaknesses in pharmaceutical patents. this is sort of an additional mechanism, although it is not thumping we're too involved with. it does have the potential for sort of increasing the cost of innovation, sort of irr requirement to come up with an innovative drug. i would not be surprised to see some -- i do not know what will happen but i would not be surprised to see some changes around the world over time to make it a little bit difficult to introduce ipr's on pharmaceutical patents. stephanie: how about rules changing following the way bill ackman played valiant?

we saw is set up that bill was going to win no matter what it when you watch, did you think, damn this is our play to be made, or this was unethical and maybe should be illegal? alex: i do not think it was illegal. i think a lot of people -- is automate a lot of people kind of wonder. stephanie: did it make you wonder? alex: look, we're in this area so we saw it. i do not think he did anything illegal. if you and i got together to buy a house, we can share the information on what we will be doing on the house together. there is nothing wrong with that. that said, there is a group of people that do not receive it positively, and it was a very special type of opportunity. i wouldn't doubt that kind of opportunity will come up that much in the future. stephanie: now that you have seen it done, i am guessing you must have known that better than build it. do you wish you would have done

that? alex: in that particular case, i think which we had owned one of those stocks, so we did kind of make some money on that. so we did ok there. in that case, that was a special opportunity. stephanie: do you think we're going to see more health care consolidation? alex: i think so, yesterday cause valuations are high and it is fully recognized, it is not like they are living these prices, but the pharmaceutical industry is a big industry with huge fixed costs. they sort of need to -- at the pharmaceutical industry needs to kind of consolidate. they need to cut of byuy in products to sell drugs. you will see that happening more and more. sometimes it will even happen at prices that you may not even think are great prices just because they need to justify, ok we need the sales force out

there. stephanie: we need to leave it there. if a kid -- if i could buy one, ariad or agerean, what would i buy? alex: ariad. mark: we're going to sign off. thank you. off to mexico city in the monday edition of the latin america report. that and more when "bottom line" returns. ♪

"bottom line mark: welcome back to"bottom line." -- mark: welcome back to "bottom line." time for our latin america report. jose: good afternoon. let's kick off the latin report

with a story on our economy in mexico. the california money-management company says mexican debt is a good investment for the chief investment officer outlined his optimism for mexico today. this continues positive outlook on latin america's economy. bill gross has been to mexico as an investment opportunity as far back as 2001. mexico sent 80% of its exports to the u.s. and is set to benefit from faster growth in the world's biggest economy. he says reforms in the energy group is here and will make mexico an attractive investment. now to puerto rico, which is struggling with one of the worst fiscal crises in its history. the governor says he will study -- [indiscernible]

which are junk rated her he has rejected the idea of the faulting on bonds. he said that will hurt residents. the governor made his comments in his annual state of the commonwealth speech to the legislature last week. puerto rico and its agencies owe $73 billion. the island must repay its obligations, but they say they are working with credit to restructure the debt. these are the top stories making headlines in the region. back to you in new york. mark: live from mexico city with the monday edition of the latin america report. thank you. still ahead, should restaurants do away with tipping? i will speak to the owner of a restaurant with a zero tipping policy. that story is next. ♪

mark: welcome back. let's get some of the top stories. two more republicans are joining

the race for the white house. former hewlett-packard ceo carly fiorina said this morning that she is running. on "good morning america," she said her business experience would give her an advantage. carly fiorina: yes i am running for president. i think i am the best prison for the job because i anderson how the economy works. i understand how the world works. i understand bureaucracies. that is what our federal government has become him a corrupt urography. mark: meantime, retired neurosurgeon ben carson made his announcement in his hometown of detroit. ben carson: i am probably never going to be politically correct because i am not a politician. i do not want to be a politician. [applause] because politicians do what is politically expedient, and i want to do what is right. mark: carson has become a

favorite of grassroots conservatives. he is a fierce opponent of president obama and of obamacare. surveymonkey ceo david goldberg died after collapsing while exercising, according to people briefed on the matter. he is married to the facebook coo and was vacationing in mexico at the time. efforts to revive them after the collapse were unsuccessful. goldberg died friday night. his funeral is scheduled for tuesday. david goldberg was 47. that is a look at the top stories we are following. coming up scarlet fu takes us off the charts. later on "street smart," the ceo of global citizen will talk about his live below the line challenge it one restaurant in downtown new york city, service go home with zero dollars in tips. the restaurant, dirt candy, has done away with tipping, and workers are ok with that.

dirt candy's chef and owner amanda cohen joins me in the studios. welcome you at this is one of those things that is gaining traction. talk about why you decided to do away with tipping. amanda: if you are a server and you work eight hours, you should get paid for those eight hours and should be able to depend on that money and you should not depend on whether there is a blizzard outside and you get sent home, and then you do not make your money for the week at you are a worker and deserve to get paid. mark: talk about your own experiences and how that shaped your decision. amanda: i was a cook and do not get paid anything. i was going home with maybe $100 at the end of the night, $80, and the servers were going home with $200 or $300. that is a huge discrepancy. everybody is working for the restaurant. there should be a more equal sense of pay. mark: you spoke to labor lawyers before you instituted the spirit

what did they tell you? amanda: they said this would be difficult to there are a lot of laws surrounding a you do it. there is very specific wording you have to put on the menu. you have to make sure that part of a ghost of paying the bills and people have to know there is no tipping allowed. it is part of the policy. it is on the checks and credit card receipts. mark: you know what this is like for people at you hear hollywood stars that used to be waiters or waitresses or bartenders, and they say they work on tip speared without the gratuity, they cannot make money and cannot make ends meet. what do you say? amanda: i say to try it again. my servers make $25 an hour. we gave them a very high living wage. so they are making a very fair living. i take in the money myself. i am able to tame my cooks a higher living wage. there is a smaller discrepancy

between the front of house and back of house. mark: sounds like a good idea, in theory, and perhaps even in practice. what does that mean for me as a customer? do i pay more? amanda no: no it is the same. the fee comes before the cell stacks, so i can take in all the money to most people in new york cap to tip 20% anyway. so the difference in your bill is minimal. it just means that i get to keep the money and dispense of it. mark: and you decide how the money is distributed amongst the entire staff. amanda: the entire staff to but the money is not necessarily going to pay their salaries. it is also paying for the toilet paper. it is the cost of running a restaurant. mark: what was the initial reaction of the staff? were some of them skeptical? did it motivate them? amanda: back of house staff was very excited. the front of house staff agreed

it could work. they are happy because they know exactly what they will make. there is no thought that there might be a really good night and i will take home $1000 this week or i might have a couple of bad nights because of a blizzard and i will only take him $400. mark: what about the diners and customers come a what was their reaction? amanda: so far so good. we have had very few complaints. a couple people have said, well, what if i don't like my service and i do not want to tip the 20%, and my response is to say something to management. if they are not happy with the dinner or the service, of course we will take care of you. we will take the 20% administration fee off. mark: so correct me if i am wrong, but we're talking about a redistribution of money. amanda: corrected mark: after that, people say it sounds like a socialist policy, taking money and dispensing among everybody as opposed to letting individuals deal with their own service.

amanda: a customer should not be the one who pays the servers' salaries. we have this sort of false system in the restaurants. instead of saying listen, this is what it is going to cost, we pretend, and they get to tip and we do not. mark: are other restaurants in other cities contacting you and asking about the model? amanda: i have gotten a lot of questions. i have had a lot of restauranteurs in the city asked me how it is working. i think everybody is waiting to see whether or not i continue on with it. mark: why "dirt candy"? because vegetables are from the ground? amanda cohen exactly. which doubles are the candy of the ground. mark: then no tipping allowed policy amanda cohen. stay with us. scarlet fu will have it another edition of "off the charts"

after the break. ♪

sion with all these addictive tv dramas on on sunday nights, which show comes out on top? scarlet fu, who is a fan of sunday night programs, breaks it

down. how many? scarlet: at least four. far too many. i'm kind of tired this morning. let's just look at the cable prestige dramas, things like "madman." a chart shows how some of them stack versus average viewers. before we show the numbers compiled by the "why she and post and, what do you think ranks the highest? mark: i would have immediately said "game of thrones." scarlet: it is high up there but not number one to the chart shows is a prize. "walking dead" surpasses 20 million viewers. this includes live viewing, time shifted programming, online streaming, and on demand. mark: were you surprised at that? scarlet: i was, because i do not watch the show. what is interesting is how young the audience skews.

one of our producers watches the show, a did did to it. what is fascinating is that it goes head-to-head it against sunday night football. mark: you have that during the fall, and i happened to watch sunday night baseball. i do not skew towards that. scarlet: you are not the demographic they want they want like a 33 43-year-old male. 18 to 49, yes, that a spread that the demographic or that they look at 18 to 49. the average age is about 50, the oldest it has ever been to afford the "walking dead" it is about 34 to 45, which is incredible considering that "mad men" put amc on the map, but "walking dead" closed the gap between broadcast and cable television. show the ratings over the past five seasons. 6.5 million viewers in season

one, on average be at season 2, 9 .5 million. $14.4 million in season three. it slowed down a little bit. mark: it is incredible. scarlett: it is be a 20.1 million for cable broadcast to me you compare that to an original telegraphs of "ncis" on cbs, thickets about 22 million. the average age is 60 years old, almost double what you get for "walking dead." mark: what about the hype? scarlet: live sports is the most popular genre for live tweeting it you are probably live tweeting the baseball game yesterday. mark: i was not to its: the nfl draft ranked the highest on its twitter tv rating. twitter is trying to differentiate itself. it has become the modern water

cooler for tv audiences. let's look at the twitter tv ratings. "the walking dead," in terms of viewers on the premiere of the last season yes, 20 million dead that there is room to make up when it comes to the twitter tv audience. mark: scarlet fu, off the charts. i got a message saying that i am old. scarlet: thank you. as break, everyone. mark: the latest headlines at the top of the hour from bloomberg radio and streaming on your tablet in bloomberg.com. ♪thanks for joining us. ♪

alix: 60 minutes left to the closing bell. stocks are rising, advancing to all-time highs, investors betting on the strength of u.s. factories. berkshire hathaway beating estimates. we are counting down to earnings from anadarko. much coming up. "street smart" starts now. alix: less than an hour