a sale for two years for the -- in the private equity firm has found a way to catch them out. >> is the art market in a bubble? $2.7 billion sold at auction just last week and there is concern the bubble might be about to bust. -- ill talk to the head can they revitalize the sport of golf? we are talking to that of the u.s. golf association. ♪ olivia: good morning. erik: let's get you right to the markets and give you a look at what is happening in the market. the dow industrial briefly hitting a record high. overall, quiet day. equities are kind of unchanged.

deal activity offset the strong dollar this morning. the euro is a little weaker against the dollar and after david cameron'sleeping return to westminster. time sincehe first the crash six days ago, amtrak trains are rolling again between philadelphia and new york 80. the fbi is entering investigations. the federal railroad administration ordered amtrak to stand these of technology to control train speeds. crashpeople died in the and more than 200 were injured. captures thevideo terrifying bonus for -- moments

before it freight train goes into it. a portion of the bus had been stuck on the railroad crossing. the only ones still on the bus at the moment of impact. he got up and walked away. is under investigation. in texas, police crashing down after the shootout between rival motorcycle gains -- gangs. almost 200 suspects will now be charged. they could potentially be looking at capital charges. it is up to the detectives to determine that. booking 192 of them for

engaging in organized criminal activity. closed.peaks will be police said they have unsuccessfully tried to work with the restaurant when biker gangs showed up. day thet obama is government from giving military style equipment from local police department. it is a push to ease tensions between law enforcement and minority communities and other cities across the country. said there istudy a risk police might use weapons and armor powered vehicles. 21 people were hurt in the hard landing. it happened yesterday. vessel in thehe aircraft was nearly scrapped because of mechanical failures and crashes that killed nearly two dozen marines.

eric: the islamic state has taken control of the capital of iraq's's largest providence. militants raised their black flag in triumph. thousands of people fled the city and there have been reports of massacres, 68 miles from baghdad. in yemen, the saudi led coalition resumed across the country. a temporary cease-fire expired yesterday. the campaign targeted airports before the cease-fire. asking that the truce be extended to be delivered to the moratorium nation. diedthan 1600 people have since the conflict began in march. despiterom yemen warnings. mademajor clothing dealer a deal today to expand its reach. -- payg to buy the owner

$47 per share, a 21% premium over the closing price friday. a major deal today in the drug sector. the transaction is valued at just over $8 billion. taking over as a way to strengthen business engineering. the role's's richest person is weighing in on a -- the world's richest person is weighing in on any quality. inventions like the internet, for example, have improved the quality of life. overall, it understates how much things have improved feared it does not mean we should not worry about middle-class incomes. comparisons overstate the lack of progress. erik: bill gates also said it is

nonsense to sustain growth by discouraging innovation. on the way to western conference finals. houston overcame a 3-1 deficit to win the series. those are your top stories this morning. coming up, it has been 2.5 years since the promised to sell off the gun maker that made the weapon used in the master. it is giving up but it has a plan for investigators to -- investors to cash out anyway. record 2.7 billion dollars sold at auction last week. we will hear from the head of impressionist artists. women's retailer says it will buy the company that owns and taylor. it struggled last year. sales rose in the fourth quarter

to you can see those numbers in the first three quarters of the year. erik: where is the attention? on the homegain leveraged retailers at home depot, for example, or lows? >> i think it brings them a new customer to the brand. they struggled with justice, -- >> house thinking about the big week in retail. >> urban outfitters as well. we will get a look as far as the end deal. it is about bringing a new customer to the brand. average sized come a little different than who they are serving at this point. the chart convincingly shows and taylor is in a state of structural decline. former --is is

formalwear is popular care addressing mark ashley the office. millennials are not setting foot at and taylor. >> you have got to think about outside of new york and sent to scope. think about the average american can emerge. they still want a 40 or $50 dress here maybe they are not wearing a business suit to work every day. --y are still wearing looking for business casual dresses. they shifted to the -- to that. or $60. affordable and that customer is not there -- plus sizes or team. we know the bottom end of the market, the discount retailers. -- norstromlso nor

is doing well. but this seems like it is the middle of the market were nobody's actually buying it. >> it is the middle of the market but it is a brand. what can it do with a stores like this with that it was not able to do on its own? >> talk about transportation costs and which is fixed, that is where the savings comes in. $150 over the next three years. erik: over what you can deliver from shareholders. >> you right they have been under pressure. that will be the question. >> is stressed bar in a hot brand? no. you can find 516 or 520.

it is very different. >> than we actually know there is growth. >> you know this. do you know the average dress size is in america? >> not off the top of my head. >> 14. >> 14. 16 is not too far off. >> there is a market for someone there. >> indeed. and taylor has been making nice casual short -- sweaters. >> we have to get a sense of whether the customer is really feeling better. sometimes it seems like they are. sense the consumer does not feel great, the economy is schizophrenic there is warmer doing well, urban outfitters give us a perspective. like consumerta confidence. retail sales data is also not so great.

>> i think it is too early to tell. i would not read too much into it. i feel like it is a consumer role. home sales were up quite nicely in april. they expected it because of the shift. >> or maybe finally spending the gas money we think they are saving. >> gas prices are rising. remembers last week, last month. >> all right. thank you so much for joining us this morning. up, a promise to sell off the gun making company after pressure from investors. now they have had to admit it. ♪

olivia: welcome back. erik: let's take you to julie, looking at where markets are trading. in stocks.llback very little. it is after the dow test its into the day record and the s&p touched a closing record, but they could not quite hold onto it. you see a today chart of the s&p 500, where we were friday and where we those with the record, and then came right back down again. it looks like we will not hit it again today. best ands doing the

energies doing the worse. the tenure having its worst day in a week. the dollar having its best day in more than a month. i mentioned energy stocks are lower today. we see oil on the decline a little bit. when we getight that news in iraq. its ninth coming off consecutive weekly gain. taking a pause now. olivia: a look at top stories this morning. expanding they fastest pace in a year. grewentral bank says gdp

from a euro a are borrowing costs were kept unchanged for a seven straight month. investments fell in the first quarter after gaining the previous three months. gas prices are surging just in time for the driving season your the national average jumped by $.22 in the last three weeks to two dollars and $.80. prices are still $.93 lower than a year ago. airlines expect a record number of passengers. the reason is the improving economy. elaborate -- lobbying group says carriers -- 200 million passengers from june to august, more than a year ago and it would be the record 2007. those were your top stories. >> he will recall in newtown, connecticut, a pledge to sell off one of its portfolio companies.

the firm told investors last week they could cash out their stake. essentially they will buy them into a put ownership special financial vehicle. the new tycoons inside the equity industry that owns everything. they did what a lot of people would consider the right thing. it was fairly apparent no one was going to buy. why has it taken them two years to come to an inevitable conclusion? >> a couple of interesting things. they came to the conclusion under pressure from their own investors. investorsething including the big pension fund, investing on behalf of california teachers, came to them and said, we do not want

you to be in the business and other investors came and they agreed. had the deal.hey >> and chris, the chief investment officer, who really raised a stink over this, at least as of yesterday was not sure every meets their satisfaction. >> it is a tough situation for them to bnp are not only did it turn out to be a bad deal from the perspective of the headlines and the broader social outications, but it turned to be not a great deal financially. the value of the company winds down. sales were down 28% last year. a surge in 2013 in sales and that came down in 2014.

click the search was in response to the shooting. >> and the prospect of the obama administration trying to enact gun laws. of this is much actually just a knee-jerk reaction to sandy hook and how much is them putting pressure on private equity firms and being responsible? >> it is clearly both in this particular case. was investorseen really feeling like they need to -- lookingltimate them in the eye and saying, we need to make investments that we can be proud of. it manifests itself not only in situations like this, but in many other ways as you go through the portfolio. ,hen endowments and other folks

they're asking a lot of questions around what pacific companies you are investigating and that filters into what are you doing in terms of jobs and being responsible investors. erik: thank you for joining us. still ahead, why more americans are working into retirement and why it might not be the best idea. ♪

olivia: the time it is not what it used to be as many people work well into golding years. what is pushing them to keep going. americans want to work

well beyond age 65 if employers allow. the bank of america survey showed baby boomers expecting -- it retirement funding jumped 26% for millenials. counting on that is risky. those who end up working find their compensation significantly is cut. plans many workers to work into retirement. 80% of all workers retire for reasons out of their control. 40% end up retiring for health reasons. they like the work. money is nice but so is staying active and having a purpose. it makes sense. of becoming far

more enjoyable when you do it by choice and not out of need. dovia: the good news is you not have to get kicked out of the office at 65. what happens see when i'm 65. in the meantime, the sole question when you retire and what kind of support you could -- you can count on it is a hot topic of debate. the billionaire who worked for said just last week that aging will set a massive problem for america years from now because there will be no room to cut spending in order to pay for the elderly. baby boomers are getting into retirement years. >> it is scary. a thousands american -- it thousand americans every day are , going on social

security. it is pretty scary. the numbers make you think it is a massive crisis. >> the white house is aware of this. here is jason furman, effectively the present passes chief economist on the subject of retirement. >> everyone in the country should have access to a -- to a saving planet work. ofshould take advantage behavioral economics automatically in those plans, and i give it would only cost money if it works. we estimate tens of millions of households would save as a of automatic ira's. >> the average american spends $45,000 a year in retirement. >> that is about the average household -- household income is $40,000. pretty much zero. camp, are in the miller the view is that you must reform

the entitlement programs like social security. raise the retirement age of eligibility for social security so you can allow those programs well, so they can be funded for longer. as people believe they will run out of cash and a study would suggest that yes, they will. >> yes, they are on the trajectory. like immigration or something, just making the problem go away. >> an important point we do not have time to discuss. you cannot look at everything in isolation. there are other factors like immigration. >> i wish we could talk about retirement forever. it has been real. see you tomorrow. stay tuned. more next. ♪

olivia: welcome back. let's get straight to this morning's top headlines. there is a limit to how far he

will go to strike a deal. running out of options. greek banks are running short on collateral they need to stay alive. after weeks of brinksmanship with creditors. it plans to force a discussion of finances at the eu summit later this week. child has his presidency is both the u.s. and china can eat specific powers. john kerry kerry was told they should manage and control the speech so the overall relationship is not affected. secretary kerry is also threatening tougher sanctions on what he calls the regime. he said north korea's kim jong-un has said no to every effort to hold talks on the nuclear weapons program. also referring to reports that kim may have executed his defense minister with an antiaircraft gun.

the pitch perfect sequel hitting all the right notes at the box office this weekend, opening with $70 million this week in north america, the follow-up to the 2012 hit about an allgeier -- all girl archipelago. rebootplace, mad max, a to the 1980's film that brought mel gibson to start them. top stories this hour. still to come, much more including one of the top read stories this morning. apple ceo tim cook is calling on new college graduates to fight injustice. then, what is happening in golf. the new young faces of the sport , but can they bring millenial's back to the golf course? plus, baidu teams up with cibola, the company that shows you content you may like. we will to the ceo next. more thanree days,

$1.5 billion worth of art. highlights of the sales included work by picasso, and to name a few. is this aon now is .olid investment thank you so much for joining us this morning. great to see you. congratulations. incredible sales. he really knocked it out of the park. classic feel sick we have the best works of art. it is incredible. it is not a supply chain industry. we cannot replicate what is available each season. if we could, we would have another one next season even better. but it will not ever happen. these are once-in-a-lifetime opportunity. competitiondictates

and desire and high-priced. i see you do not think we will necessarily have another $1.5 million sale next week. >> no p are we wish we could guarantee that but we cannot. diverse.nomenally it is truly global. it really varies from artist to artist. last week, he saw tremendous bidding and very interesting russian bidding. it really varies but what is best is that it is diverse all the time. >> for me, what is incredible is it feels like he left him in the dust, something not theit realls best is that it is diverse all the case years ago. in particular, it is because of the success of the departments he runs. strategy?een the have you been going after new clients or supply? >> we needed to change the game.

i think it always goes after the quality of the art. we had our eye on the planning man for some years. we knew this was record-breaking work and we finally made it happen this season. we had been focused on that for a long time. we were able to bring together an assortment of work this season that we knew buyers were looking for. to me you guys took some risks, having that sale, mixing modern art, it was very interesting and unusual. it was suddenly not very convenient people, but i think it has paid off in a way. because you are lacking a little bit, but the total from that week, because the first sale was so successful, it is like a

locomotive. ,t came out with a huge number $1.7 billion. it seems like a lot of people not able to get things in that first sale, continued competing. it was interesting. what a beautiful piece. probably unexpectedly. exciting.y >> to what extent do you think your clients are motivated by the desire to make a sound investment? they are obviously the casa fans but in the era of ultralow yields, are you finding more more people are coming to you and saying, i want to put my money into the cost because i cannot get those returns in the bond market? >> it is many of the same traditional clusters interested in our all along and are passionate about it have discovered over time that there

are investment is one of the highest yield assets in the entire tour folio. people i for number of work with, high-profile american clusters in particular are very are isf the act there yielding great returns and they are turning more and more to this investment >>. so absolutely that is a motivating factor, but it is hand-in-hand with loving the art. classes that what you are hearing from dealers in galleries? how many are is returning so quickly. >> why is that? because they have been successfully recruiting these pieces or hey, i can get a huge amount of money now. >> they are seeing the market is very strong and some pieces were ago.to or three years they are back in the market,

wereyou know, returns significant and that inspires more trading. >> he definitely see that and that he also see the collection characterized by the market, an interesting collection assembled by a particular collection and being able to see his vantage point. that drove prices in the area where people were excited to see the works they could not get in 30 years. classic it would have been a tough choice. >> i think prices early in the week were encouraging. seminal week.as a it is contextualizing it with contemporary art. it definitely helps because that was a big part of the audience.

>> congratulations to a huge success. it is not spirit i hope you get another vacation. thank you so much. and brooke, the head of impressionist. great to have you on. still ahead, tim cook makes an impassioned it lead to college grads. more is next. ♪

olivia: welcome back. time to get you caught up in all the market action around the world. i want to head out to my friend john in london. john: you are about an hour into trading. about an hour away from the end

of trading. is how it isere shaking up going into the close. up about 1/10 of one. gains almost of 1% just off the session high. the euro is getting beaten up today down against the dollar. here is the reason why. it is the opposite story from the story at the end of last week are the strongest dollar up against every single currency this morning and through the trading day. a fifth week of losses for the u.s. currency are you guys know that. the longest streak since 2013. here is another on the losing streak. the 10 year, getting sold off for a fourth straight week. the longest since 2012 in kicking the week off on a low. 0.65%. the back end of last week, we and in euro.about

bond yields surging by 12 basis points to 1.9%. you have all heard concerns about greece and the finance of -- the finance sector. a lot of people will say, no liquidity here. 80% of greece's that is in the sector, but this one is a way of gauging sentiment on greece. yields are surging 360 basis points to 24.53%. it tells you a lot about greece's access to market. there is not any. back to you. watching a lot of deals and potential deals potential deals happening today in a first of all, yet another one in the pharmaceutical business. not a publicly traded company. the deal is valued at $8.05 billion. we are seeing those shares on the move downward as a result of

that acquisition. in addition to that, there is speculation about a pickup in talks over to those parties that had previously been in talks. the new york posted reporting the two parties have resumed talks. and offer originally rejected, 54 dollars per share from intel last month according to people familiar with negotiations. after thet going up talks broke off, which seemed to signal optimism they would resume. it looks like perhaps they have. and then the deal in the retail industry, agreeing to buy the operator of and tell her -- and .ell her -- and taylor 21% premiums closed. this brings together them on the one hand among other brands. bloombergu spoke with

intelligence earlier, who told you this sort of loved a whole for athena in terms of market offerings. >> yes, though i am not convinced. thank you so much. we will show you what is happening in asia. asian stocks, lower trading volume. the hang seng index in the shanghai composite and in the day in the red. a big story out of the region was the trading debut. estimatessing analyst of its market value. there was also concern about growth potential. >> much talk about what is on the agenda. cost-cutting very much in the works. the ceo might be drawn still on how many and when that will happen. over whether 32 will look to climb new assets or become an acquisition itself.

plenty of rumors are floating around that glencore might be interested. you can see the logo coming up behind me on the board just now. all that talk as well that 32 may itself be on the acquisition trail. julie: that was paul allen reporting there from australia. here are top stories crossing the bloomberg terminal this morning. a mixed result for apple in its appeal of its first patent mobile phone infringement case. a federal appeals court ruled samsung infringed on apple's patent. the court said samsung did not violate apple's traded just. it did not copy the physical appearance. and i'm hundred $30 million award to apple will have to be adjusted. today, j.p. morgan chase will reveal its new investment into trite, the second stage of the bank's five your plan to help the struggling city p are j.p. morgan has already put $34 million to work there for job creation and neighborhood renovation. detroit emerged five months ago

from the nation's biggest municipal bankruptcy ever. a new sign the residential real estate market needs more time to gain momentum. u.s.dence amongst homebuilders fell in the month of may. the national association of home builders dropped to 54 this month from 56 in april or the decline reflects cooling sales and slower buying traffic. the median forecast and increase, and readings greater than 50 mean more respondents and report good market conditions. world's top-ranked making it look easy. rory mcilroy won the championship in charlotte, north carolina yesterday. he had fired a course record 51 on saturday to take the lead. he won the title two weeks ago and now has six top 10 finishes in his last eight starts. that is incredible. those are the top stories this hour. pimm fox will be here as my coanchor next half hour and is here now to look at what the

finance pros are interested in today. we look at the most read stories on the terminal this morning or you can see a few of them right here. the one taught us was apple ceo's speech at george washington university calling for new college graduates to fight for what they believe in. tim cook: the sidelines are not where you want to live your life. the world needs you in the arena. there are problems that need to be solved. justices need to be ended. people that are still being , diseases still in need of cure. julie: i am joined by pimm fox. it seems we're hearing an increasingly assertive tim cook here. pimm: he also spoke about his up breaking and how he was part of

a >> coming from alabama. they won a high school essay contest and as part of the contest, he met the then governor of alabama, george wallace, and then came to washington and met jimmy carter. he spoke about the difference between the two things he believes politicians stood for and also how coming to washington made him feel differently about what was possible not only in his life but in the life of the country. he was able to combine his personal experience and the idea of, do not sit on the sidelines. make your life part of the effort to change things for the better. he was able to put those things together. obviously he got a huge amount of attention the press. it is rare to hear the ceo of a huge company talking about that. pimm: he did mention at the , theying of the speeches

ask people to turn off their phones. he said to everybody in the audience, if you have an iphone, please put it on silent and if you have an android phone, please pass it to the middle aisle. we have a great replacement plan for you. every moment is a sales opportunity could we will talk more in the next hour here looking forward to a human 11 minutes from now. thank you. golf looking to get back into the swing of things. i will ask the president of the u.s. golf association how he is trying to get millennials on the golf course. ♪

>> money of the sport has declined by a third in the past decade. matt miller is a member of the united states golf association. great to have you here this morning. among -- real pro here let us start with jordan and her emac avoid. 20 under for the round. amazing. are these guys going to save golf? >> we are targeting others than just millennials p are you know and ricky rory mcavoy a week ago at the players championship, it is the real

youth bringing them back into the game. saw tiger woods a year ago. we have got interest from youth all around the world. >> i love watching the young .uys when unbelievable it almost as young as tiger. just watching them play does not really bring people out to the golf course as much or what can you do to get more people actually playing and enjoying a golf game, a very difficult game to learn? classic does not necessarily bring everybody back, but it is inspirational. we have got evidence because they are inspired by what great players do. here is the focus. the captive opportunity here in our country, we feel, is with youth. we have got to get young boys and girls in the game.

an initiative we started a year club,th the national golf look at the activity and interest that has wrought. golf, a program we started about six years ago, started with 1000 participants. 41,000 young girls in that program in 2014. there is evidence of the fact that we are attracting youth to the game. the national golf foundation came out with their report recently p are the 2014 numbers are absolutely constant from the last three years. that is positive. we know the game cycles with the economy. we will be fine. the game is in good shape. let's get excited about it. maybe because of the interest we seerought to others, the most recent numbers stabilize were golf is and where it is going. >> people going out and playing golf have little to do with

tiger passes fall from grace and a lot more to do with the fact that all the courses built in the last 10 years were very expensive and tied to big housing developments. big surge ofirst golf courses built in the 60's, those were municipal courses were kids who did not have the $50,000 per year to join the club could go out and play on the range. >> we will see that and we are taking the united states open championship in a month from today in a public you miss a plea owned golf course in the pacific northwest for the first time ever. we bring those other courses into the mix of our championship proper. but our game is in good shape and we need to continue to focus and join for -- join forces with all the organizations. >> or maybe double down on three. >> the initiative we joined forces, because you are busy.

>> quickly, tell us about the new broadcast partnership p are you are teaming up with fox after 20 years. why the change? tom: and bcp are we had a great run. we do have a new broadcast partner with fox sports. we are excited about it and energize. we know what they have done with other sports and innovative capabilities. we are excited about the first united states open a fox here in just a month here and we expect them to push the envelope and that will helpip fox and the usga. >> all right. thank you so much and also thank you for matt miller to -- for showing up. much more on the bloomberg market day coming up. ♪

olivia: good morning. it is 11:00 in new york. 4:00 in london. pimm: welcome to the "bloomberg markets."

-- stocks flirting with new record high. why are investors finding riskier debt to be a safe haven? olivia: general motors unveiled the 2016 chevy camaro. millerrra spoke to matt in an exclusive interview about how the latest model will when the car work. pimm: they tell you what you want to read. it figures out what you are interest in before you even know it. we have their chief executive. ♪ olivia: good morning. welcome to the bloomberg market day. i am olivia sterns. i am pimm fox. let's begin with a look at the markets right now. a look at how u.s. stocks are performing. the s&p 500 down less