and there is word of another in a supermarket industry. fightephant and networks for your attention and add dollars that go with it. there were tried to convince companies they are still the best place to reach an audience. the legacy of tom brady, one of the best quarterbacks ever but how much will the clay gate -- how will deflate gate tarnish his erik: we look a little bit different. we think it will help you give us -- help us give you everything you need sharper than before. olivia: all the important stories generate buzz every hour.

erik: stock market has been open for a half hour. the s&p 500 trading to its net -- its record high. the same goes for the dow. you have to call the nasdaq unchanged as well. big news out of china, another bit of stimulus. a rate cut in china. there are concerns about these talks underway between the greeks and euros earned -- euro zone finance ministers. olivia: it evens out to unchanged when you look at equity marketing in europe we are seeing a risk on sentiment coming out of the third interest rate cut in china in six months. european equities trading high on this news. those in europe weaker today as finance ministers meet in brussels over continued concerns about the eurozone's ability to bail out greece. erik: we'll begin with breaking news on citigroup and the libor scandal.

an hour ago.han citigroup says the justice department to clients to prosecute the bank after an investigation into alleged rigging of interest rates. there is the news about .itigroup citigroup is still in talks with prosecutors over that investigation. the bank says a settlement in the case could involve the guilty plea. we know the justice department has been pushing for guilty pleas, ideally on wednesday. olivia: talks between two european grocers could have an impact in the u.s. reportedly in discussions with another grocer from belgium. companies pull about 60% of their sales from the u.s.. shales with best sales with .ompany -- sales takeover will create one of the

world's biggest real estate firms. the deal values the firm at about $2 billion. the majority of cushman is owned ofxor, the holding company italy's ackley yanni family. noble has agreed to acquire rosetta resources. noble assumed about $1.8 billion in debt. the deal will give noble a position into the largest areas of shale production in texas. more on the action in a few minutes as jeff mccracken joins us. erik: surprising report from china. what is causing the slowdown. reporter: china posts -- china's smartphone market.

growth has been slowing for some time now before finally slipping into the negative of the beginning of this year. is the first time in six years we have seen growth in smartphone shipments go into the negative in china. nearly 100 million units were shipped in the first quarter. china has often seen as an emergent market. when it comes to smart phones they're getting effectuated. it seems the key to growth in china, getting people who are still holding on to what is known as old candy bar phones to upgrade to smart phones. olivia: roz chin joining us from hong kong. erik: interest-rate cut in china. chinese stocks rallied after the central bank cut rates for the third time in six months. the people's bank of china dropped one-year lending and deposit rates by a one quarter of a point. olivia: john kerry is heading to russia to meet with vladimir putin.

the u.s. and russia have hatched rain relations in the past few years because of the conflict in ukraine and the annexation of crimea. that will undoubtedly be on the agenda for the meeting as well as the conflict in syria. air forces across europe are grounding and airbus military transport after a fatal crash. spain justseville minutes into a test flight. a german magazine says one of the survivors told investigators the plane had multiple engine failures shortly after takeoff. erik: tornadoes struck northeast texas and southeast arkansas. at least two were killed. there was widespread damage. earlier there were dramatic pictures from north where helicopters had to rescue people trapped i flash flooding. storms have dumped as many as

seven inches of rain. it is the beginning of the end for a television franchise. . am not crying american idol go off the air off the upcoming season. this will be idle's 15th year on fox. -- this will be american idle's 15th year on fox. i think american idol -- no love lost but clearly a sign of times for the network. , california'sp record-setting drought could mean a record-setting wildfire season. olivia: ad buyers have already shifted a lot of their print ads by moving to online video. erik: m&a mania.

he is on the horizon with the ceo of activist. olivia: lots of activity talk this morning. noble buying rosetta resources for more than $2 billion. we are still waiting to see if monsanto decides to raise its bid, it's $45 million bid force and gentile, a swiss tea company. jeff mccracken joins us now on set. great to have you here this morning for the inaugural bloomberg market day. the noble deal seems to be at a discount to what the rest of the sector has been going for. jeff: they're sure -- their shares were trading around $54 a share. it is a relatively cheap acquisition when you look at her they were trading a year ago. this is tied into oil prices which have dropped since last june.

it is the biggest u.s. energy deal of the year but i think we will see more of them because there are other companies like rosetta that are struggling. olivia: the biggest deal at $2 billion. when oil collapsed we were saying, is a going to be 1998 again? that is not what is happening. jeff: it depends. how long does oil stay a $50 a barrel? there are a lot of companies right now, a year ago they were trading 10 million now they are trading half of that. they have been able to get by by cutting back on rnd or borrowing s'more. by the end of the year they will be in a tough straight . that is what everyone is waiting on. the $20 billion deals in the u.s. space. erik: what companies are widely speculated to be among those $20 billion? jeff: i was a anadarko is one that people look at.

occidental. the mini majors were people wonder, on come in. in.ould exxon come that is one people keep their eye out for. olivia: some of those brazilian offshore gas assets. how about the tpg cushman wakefield deal? is this david bondman wanting to get into commercial real estate? jeff: he is there already. olivia: is it a financial play? jeff: accommodation of both. he owns companies. is 2.8 another one that billion dollars in revenue. they will become one of the biggest real estate brokerage firms in the country. the question is, will they ipo it down the road. erik: they should want to.

valuations are pretty healthy. jeff: tpg has a good track record of flipping deals down the road when they can. erik: ppg may slip itself down the road. a lot of speculation of organizing for public offerings. following the likes of blackstone. olivia: what do you think about that price tag for cushman wakefield? everybody is saying commercial real estate might be near the top. jeff: it feels a little frothy. maybe it is on the high end of what real estate companies should go for. i think we just do not know if it is at the top. we will find out later this year if they ipo something at the end of the year. erik: how long before we find out whether monsanto is going to raise? jeff: in the next two weeks. a $45 billion deal. erik: not deal yet.

jeff: i should clarify. the response was pretty friendly. they did not say no in such a way that would push monsanto to just go away completely. run year, monsanto made a at syngenta. the feeling is this time around they are receptive. mccracken.f we call it merger monday for the sake of it. today actually is merger monday. jeff: it seems like we are reporting on mergers -- erik: it seems that we are mergers -- reporting on mergers every day. coming up, what are the financial pros reading this morning? some of the most read stories on bloomberg. ♪

olivia: welcome back to the bloomberg market day. a look at some of the biggest movers of the day. julie: even though the averages aren't little changed we're watching a couple of -- an 212592 -- 21,, 1769. we are very close to a closing record on a closing basis. we touched that level earlier today. we'll see what happens as we model along with this next level. big movers today, look at the minors. -- miners. caterpillar, best in the dow

after stocks were upgraded at baird. investors should be early to a mining bottom. taking a look at hilton, those shares are lower after blackstone said it would be selling 90 million shares of the company. hilton is not offering stock and the sale will not receive proceeds of blackstone is cutting its stake. hilton down about 1%. --etsy is down today. whether bush is cutting its recommendation on the stock and questionable seller practices saying that as many as etsy mayn items on be either cap to tip -- may be counterfeit or copyright infringement. olivia: thank you so much. julie hyman joining us from the newsroom.

top stories. comcast is getting new chief financial officer. the company says michael cavanaugh is leading the carlyle -- leaving the carlyle group to assume the role. he succeeds michael angelica's. .s comcast recently dropped its merger plan with time warner cable. volvo is going to build its first north american plant in south carolina. it is an attempt to revive u.s. sales that have fallen by more than 50% in the past decade. employnt will imply -- 4000 people a set to open in 2018. a plan to allow automakers to hire thousands of lower paid collar workers. according to the wall street journal, these workers would handle low skill jobs that are traditionally done by the automakers suppliers. the jobs would pay $10 to $15 per hour. entry assembly workers make $19

per hour. erik: jimmy carter is back home after getting sick. he was monitoring the election in guyana. carter's organization said he was feeling "under the weather o." andrew cuomo announced emergency steps this morning to protect now salon workers from wage theft. this order came after an investigation of the industry. a new agency will check on salon's statewide. those are your top stories. how about the stories financial pros are interested in? the most read items on the bloomberg terminal. the one that caught our eye was the third one about a mysterious trend in chinese trading. from120 two to 20 p.m. -- collapses.arket

olivia: the shanghai composite index doubled in the last 12 months. seems to be a lot of very eager retail investors who hear the stories about people getting stock tips on the corner. erik: that is one of the theories. institutions faced with the surge in chinese stocks are rebalancing portfolios and for some reason choosing that time of day to do it. the other is overseas investors use that time of the day to reduce positions because the timing. the latter makes a little more sense to me during we call it a mistry because it is a mystery. --via: maybe it is a good erik: california's record drought could mean a record wildfire season. ♪

olivia: let's go straight to julie hyman who is standing by and in the newsroom with a look at the treasury market. julie: taking a look at what is going on with treasuries, they are dropping for the first time in three days. yields going a bit higher.

, the elements of affecting are the same elements affecting the equity markets as well. we have what happened in china in terms of that rate cut as well as a lot of negotiations among european finance ministers and perhaps doubts about the efforts to stave off a default. normally that would call for a haven demand. but does not seem to be happening today. olivia: thank you so much. erik: california is burning through money. the state has spent more than $200 million fighting wildfires this year. the golden state has been forced to raise its firefighting budget which will come in handy when the summer starts. reporter: as you probably heard, the west is suffering one of the worst droughts on record. what you might not know is the cost of the consequences of that drought could touch the pockets

of everyone across the country. noah is predicting the drought in the west will persist or intensified through the end of july. worsening conditions mean vegetation is drier and burns more easily. the parched western u.s. seems to be set up for a record wildfire season. in california, things are already scorching. over 1000 fires this year. almost double the five year average. because of that, the national interagency fire center is estimating the threat of fire will be higher than normal in june across california, arizona and the northwest. , the area inugust danger of wildfires expands even more. all this is bad news for taxpayers. since two thousand five, the federal government has spent more than $1 billion a year fighting fires in the united states. the number was closer to $2 billion in 2012.

anothershaping up to be billion-dollar year. olivia: i know you spent time in california. what was your experience? erik: i did not see evidence of forest fires but it is never able when the state is getting -- it is inevitable when the state is getting so little rain. california is sucking everything out of its reservoir to keep people with enough water. olivia: the statistics are staggering. 12.5 million trees have been killed as of the drought. erik: wildfires are natural. olivia: they're being exacerbated by the drought? erik: part of the reasons we think it is a big deal is people have a bad habit of building homes in the woods. we see these people being evacuated.

we talking about small numbers of people. states spend so much public money fighting forest fires in an effort to save a tiny number of homes. if like people who build houses on the beach and are surprised when a hurricane comes and washes them away. olivia: you're saying huge overreaction? erik: i'm saying we should not allow people to build homes in those areas, and if they do they should not be protected on enormous public cost. wildfires need to happen. erik: should we allow -- olivia: should we allow farmers in california to grow almonds and let tuce? we should not allow people to build these suburban tracts in places like palm desert with lawns and swimming pools that lose tons of water to evaporation everyday. let's take care of that problem first before we go after the

almond farmers. olivia: erik schatzker on wildfires in california. this is fun. erik: i will see you at this time tomorrow. olivia: still ahead, american idol just announced its upcoming season will be its last one. a big part of tv ad dollars. i will find out where the ad money is pouring into. ♪

olivia: good morning and welcome back to the bloomberg market day. i'm olivia sterns. european finance ministers are

hoping to see some sign of progress from greece at today's meeting in brussels. they will not release any more bailout money until the greeks come up with more economic reforms. >> the occasion today for the greek authorities to reassure their partners to show their commitment to find a deal. i can assure you that we have that will. i think today will be an important step. olivia: the government alexis tsipras expects the eurogroup to a knowledge that greece is moving in the right direction. greece is quickly running out of money. tomorrow it has to pay $840 million to the imf. china's central bank is trying to jumpstart the economy. the people's bank of china cut interest rates for the third time in six months overnight. the chinese economy is struggling to meet this year's growth target of 7%. imports and exports fell last month. investors appear to like the

move. equities rose by the most in two weeks. ofger talk is pushing shares grocers in europe. in discussions with the dell hazy group of belgium. -- if you would like to see the fender bender's of the future, head to california. an investigation by the associated press says 10% of driverless cars in the golden state have had accidents in the past year. two accidents happened while the computers were driving and two while human drivers were in control. the computer controlled accidents were both at speeds less than 10 miles per hour. those are your top stories. let's take a quick look at where u.s. markets are trading at this hours. the s&p off by five points.

earlier this morning it hit its record intraday trading level after we saw a huge move in equities higher on friday. equity futures now going lower but really not a lot of action on monday morning. still to come, potential signs of a thaw in u.s. russia relationship. john kerry will fly to russia to meet with president putin. the highest level talks between the countries in two years. website.ons we look at where simmons could land, next. salesty shares jump after and profit. we will talk to the ceo. whether he sees any big drug deals ahead.

the american idol era is coming to an end. the upcoming 15th season will be its last. came toing competition television when it premiered in 2002 but ratings have declined in recent years. the decision announced at the .eginning of the upfront it could be a week at buying season with more dollars shifting away from the networks and into online videos. joining me to discuss the media landscape is paul sweeney. also with us, lucas shaw. let's start with this bombshell from fox. american idol has been such an incredible success for the network. it was averaging 30 million viewers in its peak. that is bananas. how big of a losses is going to be? lucas: it is a sign of a change at fox. dana walden and gary newman are

the heads of the network and they are still in their first year. s, addition to their new show they are trying to find other shows to compliment those that will reboot the network. -- of the reasons is the -- by i'll began the last the end, right now it is getting 8 million viewers. rather than continue to ride that out and hope it can buoy things, they want something fresh and i can try and bring viewers back. empire, 11 million, does not hold a candle to american idol. we know last week was week -- last year was week. in the advertising space we're seeing a shift in ad dollars from traditional broadcasting to digital advertising. we have seen the internet really

take market share away from print media such as newspapers and magazines, maybe even radio and direct response advertising. we have not seen shares shift from television. i think we're starting to see that. add trends since last year have been kind of week and expectations for this upfront are for a down. olivia: what is the strategy for the broadcast networks? what new offerings can they put out? lucas: they talk about ad products that are good at targeting. they talk a lot about big event shows. a show like "empire," they're splitting into two rungs. for the midseason finale, they maximize viewing. for the present -- for the return of the same season, they get a bunch of viewers. every show has to be an event. olivia: what can the networks offer advertisers to convince

them that their dollars are being spent efficiently online? paul: what they are still offering is the biggest audience per se. if you want to reach 30 million people come up cable network television is still the way. for brand advertisers looking to establish the value of a brand, .roadcast in cable television if you want to target your advertising, that is were digital advertising and internet-based advertising can come in. think we're starting to see big advertisers shift some of their bread -- brand building budgets from television to the internet. if you're the big networks, this is a tough model as you are producing more original content, spending more money on programming at a time when the revenue is under pressure. olivia: a network like fox. is still going to

make money off streaming online. they're going to make less money. paul: i think what is happening is a lot of the content companies are creating this wonderful content every year. the question is, how do they monetize that content. historically they would sell a bunch of advertising and that would be it. they have to think about money -- have to think about making money in the digital world. putting it direct to consumers such as cbs and hbo are doing. a lot of models that promise digital advertising revenue in the future. the question is, are those dollars enough to offset what they are losing from traditional platforms? lucas: the ones who suffer are the midsize cable networks or even some of the larger ones. the midsize ones are the ones that are fewer than 70 million owns. espnfor, abc family to -- 4, abc family 2.

the young people who watch that are either watching it online in places where they cannot make money or they are watching other networks. ratings at mtv, bravo, history channel are down 20%. far more than at the main networks. olivia: the challenge for those networks is that it is increasingly lineal -- millennials want to shave their cable bundle. who was go to ask for espn 4? paul: the economic ecosystem of the entertainment business is the bundle. question for investors, is that bundle really at risk? do i really need to pay $150 a month to get 300 channels? the cable companies love that model. i'm not sure consumers love that model. olivia: paul sweeney and lucas shaw. interesting to see what shakes

out in the industry this week ahead of upfront. still ahead, bond yields rise in europe in the regent's currency taking a hit. once again over concerns with greece. ♪

olivia: welcome back. we are about one hour into the trading day in the u.s. time for a check of markets around the world. china is cutting interest rates as leaders try to kickstart a weakening economy. christine hoss filed this report from beijing. reporter: china's central bank has mounted -- they've cut rates

three times. they have been injecting liquidity into banks. they are ready to keep money market rates low. we are likely to see more money moves ahead. goldman sachs is saying we will say -- see a triple are cut followed by a bench mark rate cut. citigroup looking for another 50 basis point cut area bloomberg economists are looking for rates to go down. typically after a rate cut from china you expect to see a bit of a bounce on the european indices. not so much this morning. we had a month to move on friday, the biggest day of gains for european stocks so far this year. we switch up the board and move from equities to bonds. you're seeing the same store you saw last week. gyrations in the bond market. .panish bonds go south

yields go north. no sign of a breakthrough between greece and its creditors. switch up the asset class as well and go to the fx market. euro-dollar, weaker for a third straight day. the euro trading lower. another one of those groundhog day meetings in brussels. >> if you take a look at what is going on in the u.s. you would think that chinese rate cut would be helping matters more but it is not. we are going deeper into the red. we have a push pull. health-care stocks are higher alesshe -- but energy s are lower. s&p index down more than 1.5% area oil prices curving eight weeks of gains. if you take a look at a deal in the oil industry, noble energy agreeing to acquire rosetta for 2.4 billion dollars in stocks.

the stock is not trading that it is worth mentioning american eagle energy, filing for bankruptcy protection in colorado. this is after the slump we've seen in oil prices -- include prices cleans another victim -- in crude prices claims another victim. olivia: a takeover will create one of the world's biggest real estate service firms. tpg capital has agreed to b uy cushman and wakefield. the majority of cushman is currently owned by xor, the holding company of italy's and yeley family. allie baba is boosting its stake in the u.s. online retailer zulily. another $56 million worth of stock. back is ali baba a 9% stake. jack ma once the company to get 50% of its sales outside china.

air force is across europe are grounding in military transport after a fatal crash. the airbus a 400 m crashed minutes into a test flight. the german magazine says one of the survivors told investigators the plane had multiple engine failures shortly after takeoff. dzhokhar tsarnaev is expected to learn his fate this week. the defense ended its case this morning in the penalty phase of the trial. a jury must decide whether the boston marathon bomber is jailed for life or executed. the jury will get the case after rebuttals and closing arguments. bernie made off has died after spending years -- i key aide -- off'saide of bernie made has died. he was waiting to be sentenced for his role. a wild boar finds itself south

in an unfamiliar place. the boar fell through the roof of a children's clothing store and onto a display case. knocking over manikins and signs. wild boars are common in the .ild side but not i john kerry is preparing for a trip to russia to meet with the vladimir putin. the highest level talks between the two countries in two years. great to see you this morning. talk to me about the significance of these talks. particularly after the celebrations in russia over the weekend. john: it is hard to compete with the wild boar story. nevertheless, these are important meetings. i do not think they are likely to change very much.

i think the united states is looking for more from russia then either russia is prepared to deliver or russia is looking to the united states for. olivia: what do you expect john kerry to say to president putin? john: i think he is looking for putin to reduce some of his support for bashar al-assad. i think he is looking for the russians to agree to allow united nations sanctions on iran reimposedck to be if iran this bleak -- if iran misbehaves. i think he is going to ask president putin to cool it in ukraine. i'm not sure how likely any of those things is to happen. olivia: many western european leaders have been asking president putin to cool it in ukraine as you put it. expecting president

putin to say to the u.s.? myn: part of the message is, agreement to meet with you proves that russia is still a major player on the international scene. it is reminiscent of victory day over the 90's and world war ii. azis in worldo war ii. what they do is their own decision. on syria, i think he will agree that some diplomatic process is necessary. russians have agreed to that before but never supported it. on iran, likewise. i think he agrees an agreement would be a good thing. iran's national interests have to be recognized. olivia: can you give us a

general reading of the temperature of the tension between russia and the u.s.? things were bad earlier this spring and spend there seems to be a thawing. the message coming out of the kremlin seems to have softened. very significant that western european leaders did not go to st. petersburg for those world war ii victory celebrations. how deep is the rift? john: the rift is deeper than it appears to be. neither side is trying to make too much of it. the fact is the ukraine poses real problems and rush upon act -- and rush upon activities -- russia's activities pose a threat to europe. the relationship is nothing like 1945 whens in may of most of the western european countries and then soviet union

were allies. john walcott, the head of our diplomacy team joining us from our bureau in washington, d.c. still ahead, what deflate gate and watergate have in common and why could tarnish tom brady's image. ♪

olivia: welcome back to the bloomberg market day. big sports stories as we wait for the nfl to announce a possible suspension of tom brady that could come as early as this week. espn also announcing it is cutting ties with bill simmons.

has beenavidson covering both of these stories and she joins us now on set. obviously not the first time bill simmons has tripped up. what is the most surprising thing about the decision to drop him? >> i think the timing is what is surprising about this. his contract is not up until september. you have several months of not preventing him from -- not only prevented him from finding somewhere else to go but months of awkwardness in public about addressing the situation. olivia: i guess the reason espn has not given up on him is because he is an important brand for the network. how does espn shoot? kavitha: i think this decision shows espn believes he is not too big to fail. john skipper in his statement said grantland will be able to withstand itself without bill

simmons and that is quite a statement to make. olivia: is tom brady too big to fail for the patriots if he gets suspended? kavitha: it is going to be interesting. vegask the over under in is about 3.5 games. if he gets fewer than that some will say it is not enough. if he gets more, people expect an explanation. i don't think he is necessarily too big to fail but it would be an incredible thing. the most high-profile player to be suspended, especially for something like this. given how powerful robert kraft o is in roger goodell's inner circle. olivia: what is this due to tom brady's marketing power? he is star quarterback on a star team. what does it do to his brand? kavitha: i think it will take a hit. it has been several scandals and

several rumors to get to this point. i think we are at a point where it is clear that he either cheated or lied about something. his legacy as a quarterback might not take a huge hit but his marketability outside the boston area probably will. olivia: is brady the only person who will get punished here? kavitha: brady and the two .quipment managers in question i can't see anything actually happening to bill belichick or robert kraft. i still also have to find that hard to believe. i was enjoying one of your stories earlier in which you are explaining it is the cover-up that is worse than the actual crime. this kind of cheating is cheating in itself. if you talk to equipment managers across football, this the kind of thing that happens in every locker room. the actual effect on the game is fairly

minimum but the idea that you can lie about this repeatedly in many press conferences is what is problematic. olivia: the idea that you feel like we have been here before. thank you for joining us. come, an exclusive interview with the ceo of active . -- activa we blasted another megamerger is in the works. ♪

olivia: good morning at 11:00. pimm: there has been a buyout in big pharma and we have the

architect of the biggest drug deal of 2014. olivia: china cousin interest rates for the first time in months and we will get the reaction from the former treasury secretary hank paulson. president obama's meeting at the white house with some of the most successful innovators and the air bmb ceo is among them. he will give us details about the entrepreneurship summit. olivia: we look different and i think it will help you know everything you need to know during market day faster and sharper than before. pimm: we will show you the important stories and the features generating interest every hour and of