market makers panko at our new time. i am erik schatzker. olivia: i'm olivia sterns. stephanie is off today. shrugged at nearly $6 billion in fines against some of the world's biggest banks. erik: right now it is time for some top stories this morning. we begin with a big takeover in the pharmacy business. cbs, the largest retailer of prescription drugs in america has agreed to buy nursing home pharmacy on the care -- omnicare. the debt is $12.7 billion in omnicare is a geriatric business delivery drugs to manage resident prescriptions. greece will try to break the scale in bailout talks at the summit. greek prime minister tsipras will submit a plan to fix the country debt and he will also unveil a new proposal on sales taxes. the number of tsipras' party says unless europe unlocks a

bailout money, greece will not be able to retain an imf loan for the next month. olivia: richard shelby wants to make the most extensive changes to the dodd frank financial reform law. one of his proposals could free up $66 billion in capital for 11 lenders including american express. shelby's committee vote debate the bill today and he wants to raise the point at which banks are considered systemically important and that was that some small lenders reduce capital levers and return some of it to shareholders. mcdonald's is bracing for more protest today when shareholders meet at headquarters in chicago, illinois. demonstrators marched on the mcdonnell conflict yesterday and they want workers to be paid a minimum of $15 an hour and have the right to unionize. about 100 protesters were arrested and today's meetings the ceo told stockholders since the first time before coming ceo. erik: after more than 6000 shows, david letterman said goodbye last night. he signed up cbs's "late show"

for the last time. stars ranging from tina fey to jerry seinfeld participated and so did president obama and the last three presidents all on tape. letterman did not let it all go to his head. letterman: in light of all of this praise merited or not, do me a favor. save a little for my funeral, all right? i would appreciate it. erik: starting this september, stephen colbert will be replacing letterman and letterman said i think you will do a wonderful job. and those, folks, are your top headlines at this hour. olivia: let's look at the five things you need to watch this morning. the cbs deal, they have agreed to by nursing home pharmacy omnicare 498 that -- $98 per share in cash. it is interesting because cbs has rebranded themselves and they want to be cbs how to not just a pharmacy. they want to manage prescription for seniors. erik: it's a better business. becoming part of a sort of

health care plan economy is a better business and just running retail into which you walk and decreasingly by drugs and olivia: more increasingly by things like soda pop. you saw that in olivia: -- you saw that in cvs retail. erik: let's move on to number two, a shakeup at deutsche bank late last night hours before today's annual meeting. the bank had ceo with more power, giving him direct oversight of strategy at this partner appeared to lose a little bit of power in this shuffle and three key executives are leaving the company. olivia, deutsche bank had better get its act together because over the past five years, this stock has produced and negative totaled overtime of 23% and here is a point i will be hammering all day long. over the same period of time

jpmorgan, a similar institution in terms of what business it does, is up 85%. 85% and of course that includes dividends. olivia: that is pretty damming. how about since the new strategy announced over one month ago they are 6.5%. i wonder if they will talk to a lot of institutional advisors and later on, i wonder this is just confession that co-ceo structure does not even work. erik: that is a good question. some might say it is rearranging deck chairs on the titanic. olivia: your words and not mine. vonnie quinn joins us now and she is in for julie. bonnie: it costs about 30 minutes. one of the numbers gives an indication on the tightening of that. they reveal the data as they look for 270,000. >> 270,000 jobless initial claims. it's an important number, a read

effectively on the economy. pimm: one of those numbers -- vonnie: one of those numbers holding a pretty good even with the first quarter data being quite weak, so we have been looking to see if this continues in order to know if the labor market is still in a healthy spot and the fed is watching this. olivia: interesting to see. it's so funny, really strong numbers out of the labor market. jobless claims at a 15 year low, headline unemployment, 5.4%. erik: that does not give you the whole picture. people just don't have more money to spend and in real terms, incomes continue to decline. olivia: under employment and labor participation. erik: number four, trading remains suspended for had adjacent tower group yesterday. 47% in 24 minutes and raising $19 billion in market value. carson block, olivia, is saying i told you so, i told you so, i told you so. olivia: that's what he always does. erik: you have to be skeptical

about the accounting by these chinese companies. no one is sure what the drop is in hanner g but there are questions about the sudden disappearance of the chairman who was supposed to participate in a conference did not show up. olivia: he went to some green tech -- erik: that's a we are told, who knows where he was. i put it this way earlier, the white knuckle ride for those investors and chinese stocks. stocks were 300% are down 60% in the today. olivia: maybe that is proportional. this stock was up 625% over the past 12 months. that is nuts. he lost $50 million in 24 hours. that would make me pretty nervous. number five, sales core up almost 6% in premarket trading and this after the company raised sales forecast for fiscal 2016 in yesterday's earning report. it looks like salesforce is going a little bit more slowly

but a lot of investors are happy the company at this size is still growing. erik: not only just growing but the bullishness. the ceo is a larger-than-life character in so many respects. olivia: he is a force of sales. erik: he is talking about taking i guess, growing at a pace that will make salesforce.com larger than sap in a short space of time, so he has put a marker out there, if you will. he is also talking about going into the wealth management business and the details were a bit sketchy and i'm trying to catch up on what happened on the salesforce.com conference call last night. just too much happening in the world, but this is all you really need to know. don't doubt the sales growth when it responded the way it did last night, it is at $74 this morning and a close that -- whether it is a takeover candidate or not, -- olivia: i doubt those rumors will die down. erik: he is doing something right. let's go back to deutsche bank because -- i would say this there are many doubts remaining

about the company, its strategy, and its leadership. and shareholder is questioned whether deutsche bank needs to raise more capital and if it's provisions for legal risks are adequate as a senior portfolio manager at union investment is on the phone from the annual meeting in frankfurt. ingo, if you can boil it down for me, what is the problem with deutsche bank? why have the shares performed so poorly against of the global investment banks? what is it that they are not doing right? ingo: there are couple of reasons. first of all, we see litigation risk and we are not sure if the money that is put aside is enough, possibly we see litigation in a huge amount of money. in addition, we have to admit that it is not clear what the strategy of deutsche bank will be for the next idf.

-- idf. it was disappointing a couple weeks ago and -- erik: why disappointing? why's it a bad idea to get rid of postbank and why is it a bad idea to turn deutsche bank into a company like goldman sachs? ingo: the idea behind it is correct to position the bank more and more in the global capital market but we have to question the way houser bank once to proceed and we have no indication in detail about the next steps. we have very disappointing returns on tangible equity targets and overall, the management lost confidence of investors. the main topic at the agm today in frankfurt. olivia: initially, they were

certain pitching equals ceos but after today's reshuffle it clearly looks like the ceo has carried control of deutsche bank. why is on to gain -- why are they assuming the strategy in the right move, in your opinion? ingo: the power increased last night -- jain's power increased last night and they will be a new management or new man in the lead as division department of the company for private line. in addition, mr. jain is clearly a change compared to past years where you have two ceos and co-ceos. mr. fitchen did not get new ambitious task for the future. on one hand, more tasks to mr.

jain and also more pressure on mr. jain to deliver because the time is over now. erik: your company has funds amount dutch of bank -- amounts of -- and deutsche bank. do they have you support? ingo: our approach is to say to the board members who knows all the details. it is not the question of the system from a shareholder point of view to dismiss management. erik: i understand that from a practical point of view, but do you think he is the right man to be running this bank? as you just explain, jain has more power and effectively in control of the bank's strategy is that the right move? ingo: we took a vote today

against management because we have no trust in the management. nevertheless, it is a last chance for mr. jain to prove the strategy is right and he has to deliver late and we will see what happens. erik: he has one year to prove himself or else? ingo: correct. erik: thank you very much. olivia: breaking news coming out from hewlett-packard. vonnie quinn has more. vonnie: we are getting headlines out of hewlett-packard and a new partner for hewlett-packard. they will partner to create a chinese technology powerhouse. we are seeing very little trade in hewlett-packard but it is up slightly. they will buy 51% of the stake in the new business. that will cost about $2.3 billion. that is the figure we are getting. hp says they will buy 51% in this new powerhouse joint partnership. olivia: thank you so much.

still to come, much more on "market makers." i love doing this show with you. and other potential republican candidate for president. we will be joined by george pataki and he will be talking to us about his vision on trade immigration and a whole lot more. ♪

olivia: good morning from a brisk spring morning this thursday in new york city. it is a seven degrees, erik schatzker and i are warm on the "market makers" set. it is time for headlines. they captured the ancient syrian city, it contains ruins of a 2000-year-old city that was one of the most important cultural centers of the ancient world. meanwhile, the pentagon is extending 1000 antitank rockets to our iraqi forces for use against islamic states. they will be used against suicide car and truck bombs like the one that used to capture the city of ramadi in iraq.

they are planning to counter attack in iraq. the nation's biggest consumer electronics chain is selling more big-screen tvs that mobile phones than expected. best buy posting first-quarter profit that beat analysts estimates. even though they fell almost 1%. and for the first time since 2012 trends are increasing faster than home values. zillow brands in the u.s. to 4% in the year ending in april and home values were up 3%. zillow's chief economist call it a rental crisis where higher rents make it hard -- harder for people to save money for new home. erik: george pataki threw his hat into the ring former new york governor is considering a run for the republican nomination and may announce his candidacy as early as next week. he is a socially liberal fiscally conservative but what about the nation? george pataki is here, welcome, governor. great to have you.

would you, governor, describe yourself as a moderate? george pataki: no. iran as a conservative every time in new york and i was the only person ever elected on the conservative party line in the state of new york as governor. on social issues, i do believe we should leave those to the people and states and politicians should not be telling people how to live their lives. erik: you are not the conservative against some of the potential candidates for the republican nomination. george pataki: yeah, there are a lot of good candidates, ranging the spectrum. i do my best to have ideas that work with the people. how is that for a good answer? olivia: you are cap dancing but you have not really answer the question. a lot of republican presidential contenders say that social issues have to be on the federal campaign. you are pro-choice that is in opposition to everybody else. george pataki: take marriage. it has always been a state issue and i don't know why all of a sudden it is conservative islam politicians in washington

telling every state and every elected official and family how they are going to decide their law for their state. there is no reason why new york and texas have to have the same laws. there is a 10th amendment to the constitution that says, leave the power to the people and the states. i think that is the conservative approach. erik: just a moment ago, you said you were try to come up with the right ideas and the right issues. what are the bright ideas? george pataki: two things, we have to provide for the security of the american people and we are not doing up your you just had a report about sending 1000 rockets over to iraq. in the past, we send over material and equipment and it ends up in isis's hands. we had to do far more to prevent them from having training centers, planning centers where they are planning to attack us here. olivia: what do we need? erik: i have to interrupt. what evidence is there that they plan to attack the united states? george pataki: you see it all the time, in rhetoric, for cooking westerners, thousands of people establish -- erik: an islamic state?

george pataki: but also to attack us here and there constantly making that known through social media. you don't hack into the u.s. government central command and take over the social network site because you are worried about creating a state over there. they just moved to libya, they are affiliated with boko haram. we know there are people being radicalized here. look at garland, texas. almost tragic attack. isis claims credit. olivia: they were inspired. george pataki: isis claims credit for inspiring or radicalizing americans to murder other americans. that is a threat to us and if you are not see that as a threat to us, and we are in dire straits. olivia: if you were elected, what do you think is the appropriate response? do you want to see american boots on the ground? george pataki: i think we have to do a number of things. we have to provide arms to

tribes that are willing to fight on our side but not willing to wait for the central government of baghdad to arm them. we also have to carry out strikes to destroy those sites. we just carried out a limited strike in syria and got their top accountant and hopefully, from some great information. we should send in forces to destroy those training centers and caps, kill as many of them as possible. don't try to build a nation for 10 years and leave a little note . we are going to see an attack in america, whether it is in garland, texas, or an attack like september 11 if we do not get out this cancer now. erik: we need to take a short commercial break. governor george pataki, the term governor of the state of new york. we will be right back talking about minimum wage. ♪

[baseball crowd noise] ♪ ♪ [x1 chime] ♪ ♪ [crowd cheers] oh! i can't believe it! [cheering] hi, grandma! ♪

erik: thousands of protesters and labor activists march on mcdonald's headquarters in illinois, marking the second straight year of protests to hit fast food chain annual meetings each is being held today. protesters are calling for a $15 minimum wage and the right to form a union. we're going to talk about this right now with formerly new york governor george pataki. governor, the call for a higher minimum wage has echoed from the white house about the country. we see many municipalities and states for that matter raising the minimum wage. is that fine to the point you are making earlier, leave it in the state's, they can take care of it? george pataki: first of all,

it's an easy way to show compassion. we understand the plight of the poor worker just raise the minimum wage from eight dollars to $15 to $20 or $25. what people don't understand and what isn't being said is the other side of the equation that there is not one economist who does not realize that when you raise the minimum age, you increase in unemployment rate. take a look back at baltimore where we had this horrible tragedy and riots one week or so ago. in baltimore, 37% of young adults 20 to 24 are unemployed. it is the unemployed who most need for compassion and help to create opportunity. what we raise the minimum wage we do nothing for them. and i was governor, we understood the nature of this problem but we also understood we do not have enough jobs we had one in 11 of every man woman, and child in the state of new york on welfare. what we did is not raise the minimum wage, we created a better economic climate and

lower the taxes, got rid of regulations, and we did things like expand the earned income tax credit which is a way to directly provide assistance to people in low income jobs without eliminating those jobs. there are solutions and it depends on the circumstance, but a simple solution sounds good and gets you a headline, get to political cover, but it does not solve the problem. erik: olivia wants to jump in but i have to dispute the point that no economist -- olivia: i was going to say. erik: does not increase unemployment he would disagree with you. george pataki: why do we not have a $20 an hour minimum wage? olivia: it has gone up. he voted -- you voted against the increase, it's above that an unemployment rate is lower than it was when you were governor. george pataki: it's been a while. it's not lowered them when i was governor, what has happened is we went to the 2008 crisis where the unemployment rate skyrocketed. we still have far too many unemployed. he still have millions of people unemployed, underemployed,

looking for better work and this is not going to help them. this is going to expand -- erik: what's the ideal unemployment rate? george pataki: zero. as a practical matter -- erik: what would economist argued? george pataki: somewhere between 4% and 4.4%, something like that where you have a little and price stability. what you have price stability in the lowest possible rate of unemployment, but obviously, if you're one of the 4%, an economist saying this is a good thing does not help you. i want people to have jobs. olivia: true. when you talk about the labor market, you quickly move on to immigration because the men in your party who feel immigrants are taking jobs from americans. what is your stance on immigration? george pataki: there's the question in my mind we have to know who is coming here and know they're coming here legally. we are a nation that depends on the boulevard to allow millions of people to come here illegally is wrong. we also know that drug cartels

control large parts of the borders and they want to use them for their purposes and that radical islamic groups and terrorist groups want to use the border to bring people here. i think we have to control the border, we have to make sure we have better control over our visa process where people overstay and provide a system where those who have been here illegally have a pathway to legalized status. erik: governor, we are about one minute away from our latest read on the economy and the labor market with jobless claims. before we get the, about 45 seconds, what's your position on energy question mark particularly fracking question mark george pataki: i am very pro-fracking. we can create a domestic source, strengthen our economy, reduce our lines on faces like to swim and the middle east and do it in a way -- places like venezuela and the middle east especially when natural gas is a physical it's all good for the american people. erik: he wanted to be regulated? george pataki: of course. it depends on where it is being regulated. erik: our states like texas

right to prohibit bans on fracking? george pataki: yes. i think it should be a statewide decision. erik: we thank you so very much for being here. olivia: thank you. george pataki: thank you. erik: seconds away to the initial jobless claims number. vonnie quinn has them and they have broken. vonnie: we have a little bit -- 274,000 people filed claims for jobless benefits last week so the worst number because we are looking for just 270,000. don't to overstretch and they are still hovering over 15 year low for jobless claims, last week it was 264,000. it has been on the 270000 and we are seeing not much reaction in the markets. the futures are down about 10% before they are still one basis point before the 10 year yields and looking at 2.22%. for the euro, we are trading as the dollar .40 -- at that $1.40.

erik: no big surprise in the number itself. consequently, as you pointed out, no great surprise that now -- neither the fixed income are equity market is moving much. vonnie: continuing claims have become more important to people and they are lower now to 2.2 one million rate as opposed to 2.23 which was forecasted, so that's a good time there. erik: thank you very much. let's move on to our top stories. we will begin with the most expensive rewrite thus far. the dodd frank financial reform law, the chairman of the senate banking committee richard shelby once the change in the level at which eggs are considered systemically important and that could free up as $66 billion in capital with 11 lenders including american express. it would make it easier for banks to return money to shareholders. shelby's committee has a hearing today on the bill. the biggest drugstore chain in america is getting bigger. cvs has agreed to by omnicare

total enterprise value is $12.7 billion and includes more than $2 billion of debt. cbs is the nation's biggest retailer of prescription drugs but it's fastest-growing business is handling drug plans for insurers and employers. olivia: we do have breaking news from lumber liquidators. the ceo of that company is said to resign this morning. let's get out of vonnie quinn. vonnie: yes, we have lumbar liquidators down another couple of dollars in the free market to 23.51. -- 223 51. the ceo will resign, just coming out. management changes. lumber liquidators naming the executive chairman and we also have the facts that the stock is down a couple dollars. the story is that there is a shortselling store we have been following and ideas that the 60 minutes -- "60 minutes" these are the stock same a had selling wood that had some kind of

chemical in it that should not have in it and we will continue some of the story. olivia: thank you. incredible fall for lumbar liquidators. the stock is up 62% to date. erik: have a look at the pre-markers. you might look at the situation in certain circumstances like this where company is under pressure and the ceo has a sort of been -- if you will deny reality. i won't say that's the case here because i don't know all the facts. all we know is that the facts are in dispute. when a ceo at leeds, occasionally, the stock was up. this is being by an alarming sign by investors. under liquidators trading down another $5.5. olivia: in the meantime, the founder of lumber liquidators tom sullivan is going to step into the acting ceo, so not the complete in with the management for just shuttling and the current ceo lynch is out. good move there. erik: up next, the shakeup of germany's largest tank.

we will play the winners and losers in deutsche bank's management shuffle only come back. ♪

olivia: investors are challenging deutsche bank's overall plans of today's annual meeting in frankfurt. bloomberg executive editor for finance is following the story and she joins us now on set. erik: with coverage, in fact. leading the coverage. olivia: yes, what is going wrong and why are investors unhappy with the overhaul? >> the biggest is for the leaders of deutsche bank and the ceos. the really big news is that they have a share price that is terrible compared to competitors. this year, it has gone up 18% and looks good that it is only trading at about 60% to 65% of value. that means essentially the market is telling deutsche bank if they fold all their assets

and liquidated the company it would be worth more than what their value is today. all of the competitors are trading at a better valuation and is sending a message to the leaders, you got to do something. you've got to cut costs, shape of the company, and they came up with a strategy last month. erik: this is perhaps the best illustration of all. christine: exactly. erik: they started off in a better position the jpmorgan, in theory. olivia: if you think about north of $20 billion that jpmorgan has paid out in fines. christine: right. and of course, deutsche bank has its own legal issues but anyway the real issue. you got these ceos on the hot seat trying to do something about it in four months there was this build up with a new strategy and they were tackled this issue. last month, they came out with a strategy that had a lot of targets for not a lot of details on how to get there. shareholders were quite surprised that there was no -- there was not more meat on the bone. part of it is that deutsche bank is in germany and they have

political and labor laws. not easy to do all the things but you might assume investment banks can do other places. olivia: they can't come out and say our headcount will go down by 10%. testing: right. -- christine: right. today they are having a shareholder meeting and i heard there are 5000 people, huge conference in frankfurt. it will be pretty much an all-day affair. we will get a vote on how they feel until later in the day, but so far we are hearing from a consultant that they think at least 20% will vote against them. erik: one of the proxy advisors. christine: right. erik: let's talk about this man, jain. he is like the man -- the catch with nine lives. you think, surely, it is over this time. he survives yet again. explain. listing: everybody on wall street will claim he is one of the smartest guys out there. he is really smart and strategic

guide. he is gotten there for a reason and he knows what he is doing. he knows the markets and business incredibly well. he works every he hard and has a good team. the problems he is facing are not easy to solve and deutsche bank is an -- is on the golden tracks and it has retail business and does not have a big wealth management business and that is what investors like these days. it does not have a lot of options in terms of strategy in the market is punishing them for the set of businesses have. plus, they have legal issues ahead of them and it is politically unpopular in germany. like you say, he has had its two so far persuade people to give him another chance and the management overhaul that was announced last night was essentially saying, now it is make it or break it. you've got a chance and i know -- erik: you have got -- christine: now he has been year or so and he has to show what he can do. it will be great when he can do and how much support you can get from the political establish a

from the biggest shareholder from his employees to achieve what he needs to achieve. erik: i will say as many doubts as people might have, they do approve in broadly speaking of the strategy of the idea that they should get out of consumer banking. olivia: that they should be the goldman sachs of europe and not follow the ubs model. christine: it makes it hard because it is leopard that on trading. -- it is leopard bets -- a leveredbet bet on trading. olivia: thank you so much. still to come, we are following a breaking story with shares of lumber liquidators down almost 70% right now in premarket trading. this after changes announced as the top ceo rob lynch will step down. the founder tom sullivan will step in as acting ceo. ♪

olivia: coming up in the next hour on "market makers," by comes annual meeting in march and he will miss cvs's annual meeting. we will discuss the fate of his empire. plus, henry mcveigh on why investors might want to remain leery when it comes to investing in emerging markets. let's get you caught up on the top stories. the labor market keeps getting stronger. a few moments ago, the government released the initial jobless claims and the latest numbers it looks like the average number of americans filing claims over the last month has fallen to a 15 year low. it is at the lowest level since april 2000. jobless claims typically decrease before job growth picks up. hewlett-packard is selling out the majority stake in the china networking gear subsidiary. they have agreed to pay $2.3

billion for the business called h three c -- h3c. they think it will make it easier to win approval from beijing. if you eat eggs, you will be picking up the tab for the worst outbreak of bird flu ever. lohman sack said u.s. consumers will pay as much a billion dollars more to buy eggs a 75% increase from one year ago and it will last -- for the last two months, bird flu has devastated hands across the midwest and those are your top headlines. erik: all the money you are saving on gasoline you will now spend on eggs. olivia: the incredible edible egg. erik: the best -- the attempt to roll back the frank dodd act faces the big test today. richard shelby still with ease financial roles on many of the nation's banks and impose new limits on the fed. the legislation faces a committee vote today and many democrats are promising to oppose it.

our chief washington correspondent peter cook has more. peter, would you call this a rewrite of dodd-frank? peter: i would call it not the complete rewrite but more than just a tweak and i think that is what senator shelby would call it as well. there are things a dodd-frank he really does not like and did not vote for the bill and he wants to see changes he says are really intended to spirit smaller banks medium-sized banks from having to face the kind of rules that the bigger banks were really intended to face. he said that dodd-frank overshot the mark and trying to bring it back in. for example, he would raise the trigger on what constitutes a systemically important financial institution and he is also exempting small banks of having to face the poker role. he would also make changes to regulators and oversight council and make it harder for them to reach into these non-wall street big banks and impose regulatory changes or bowls on them. he says he is making life easier

for those of smaller institutions. democrats say it goes too far and they are promising to oppose it and offer an alternative today. unless he gets a few democrats onboard, the bill is going nowhere and the big question is can they find common ground in certain areas and pass that later on this year? erik: at least in principle, there is not anything wrong with what shelby is trying to do. we hear all the time particularly as it concerns over the care and also as a concerns of dodd-frank, you pass the bill, see how it works, and then you modify it to address the shortcomings or the unintended consequences. i'm just throwing this out there, maybe the constraints on the nation's smaller banks really are too onerous. they face the same kind of costs , for example, to protect themselves from hacking that larger banks do but with the same regulatory burden and it is harder to run a profitable business. peter: well, i think you articulated the opening argument from mr. shelby when the

committee meets at 10:00 this morning. he says, listen, there are unintended consequences and there are democrats who agree. their argument is that this bill does those -- goes too far. he raised it from $50 billion in assets to 500 billion and they argue that captures too many banks off the hook. maybe you can move it down to do hundred 50 billion or a trigger of 100 billion dollars. that is more likely to win passage on capitol hill. there is support for easing in providing relief to community banks but it was hard to regional banks and you have more of a problem because there are those on capitol hill that they pose systemic olivia: risks to the country. olivia:olivia: what are theseolivia: -- olivia: what are these new proposals for the fed and how likely is it that it will go through? peter: that is another controversial part. he would ring in the fed but not as far as fellow republican colleagues. among other things, more reporting to congress and the

president will be able to appoint the new york fed chief and calling for commission to recommend more structural changes. he is not calling for running the fed through congress. olivia: unfortunately, peter, it is our bad. out of the we have that sound bite bloomberg.com richard shelby but everybody can go to and watch it -- soundbite from richard shelby but everybody can go to bloomberg.com and watch it. erik: we will be back talking about wall street about yesterday's big announcement. ♪

olivia: five of the world's biggest banks a great to plead guilty in the currency breaking probe that there were still some in the industry who were fired up about it. >> this is a bad day for american finance. >> a guilty plea for a financial institution, this is the first

time you had citigroup, jpmorgan or any u.s. bank plead guilty essentially, to criminal conduct. >> that affects your funding rates, your credit spread, your client relationships. there are a lot of the sale guys on the phone trying to explain. >> citigroup's press release says they are embarrassed. they should've been embarrassed back in 2001 and 2002 and throughout the course of the past decade of the actions they had taken. olivia: i wanted to bring in jerry geither who was with us during many of those conversations and throughout our coverage of the fines here at bloomberg tv. clearly, two of the smartest guys we could possibly call on banking, very worked up and concerned. look at the share price reaction, plenty of the banks saw their stocks get pop and looks like no failed blows here. keri: they are making good points and we touched a little bit before. while banks have stacked up on

the compliance, they added tons of compliance, attorneys to basically police like an internal police force to weed out bad behavior. we are still not getting what i think people want to see as a culture change on wall street. we are still having all these cases. is there a disconnect treatment the banks are trying to achieve and the actual outcome? erik: is it the government say we are in a position to force change? yesterday, they said for two years or three is, we can look over these guys because of the nature of the agreements we signed. keri: it was very clear yesterday at the press conference with the five guilty pleas that u.s. attorney loretta lynch is very, very clear about the fact that she can continue to do these cases if they are warranted. erik: we need to give loretta lynch urdu promotion. keri: definitely. what did i say, u.s. attorney

question mark i'm sorry, she replaced eric holder who just a year ago made it very clear that no bank was too big to jail and no bank was too big to prosecute. now we have five banks of guilty pleas, so what? business as usual, they all got waivers to continue doing various businesses like management and capital raising, so what's next and how do you enforce the culture change? i think that's the question because we are not seeing that right now. olivia: i was reading your story about the security and exchange commission was working with the doj to basically assured that there would not be a significant interruption of the business of the banks after they paid up $5.8 billion and pled guilty. keri: right, i don't think they necessarily want a position where they have to enforce actions of the department of justice, so they are in a bit of a weird spot with the waivers and everything. really, i don't know what will happen with the banks and looking forward, there is a lot of investigation. olivia: we will have to have you

back on. carrie geither, thank you so much. much more on "market makers." don't go away, we will be right back. ♪

announcer: live from bloomberg headquarters in new york. this is "market makers," with erik schatzker and stephanie ruhle. erik: good morning once again. it is not a clock in new york city and you are watching market makers at our new time. i've erik schatzker. olivia: i am olivia sterns stephanie ruhle is off. erik: we will start with top stories, the pharmacy business, the biggest retailer of prescription drugs in america, known as cvs has agreed to buy on the care for a total bio 2.12 --. there is a shakeup at deutsche

bank that have been late last night. investors have been underwhelmed by the turnaround plan engineered by the co-ceos. jain was given direct oversight of the banks strategy three key executives are leaving and the co-ceo appears to be something of a loser in the shakeup. deutsche bank has posted the worst performance in the past years and the stock is far more than 6% since the overhaul plan unveiled last month. olivia: investors shrugging off the news of the bank fines and guilty pleas. shares of jpmorgan and citigroup fell slightly well barclays, ubs and world bank of scotland actually also share prices rise. the banks pleading guilty to felony's and agreed to pay collectively $5.8 billion in penalties. felony conviction used to be viewed as a death sentence and clearly no longer. regulators have given the banks waivers to let them keep operating. the labor market looks like it

keeps getting stronger. the average number of americans filing claims over the last month has fallen to a new 15 year low. jobless claims typically decrease just before job growth except more job security could likely fingers crossed, lead to bigger pay hikes. erik: speaking of checkups, lumbar liquidators was rocked by the report on "60 minutes." ceo robert lynch is stepping down and tom sullivan will act as standing ceo until a permanent replacement is found. "60 minutes" in march said lumber liquidators had 40 with excessive levels of them all the hype. shares are down as much as 22% in premarket trading. hewlett-packard is showing up in majority stake in the china subsidiary. they have agreed to pay $2.3 billion for the business called h3c. they believe it will make it easier to have approval from beijing. olivia: best buy says sales of big-screen tvs were strong in

the first quarter. they posted results that top analyst forecasts and it was eight cents better than estimated. revenue was 1% up but better than analysts forecasted. the oil slick along the scene of the california shoreline is now more than nine miles long. more than 100,000 gallons leaked when a pipe broke two days ago. the cleanup has been around-the-clock operations and biologists are checking on endangered wildlife. the chief of the oil company claims all american pipeline visited the scene and apologize. erik: the end of an air after more than 6000 shows, david letterman say goodbye last night. he signed up the late show for the very last time. stars ranging from tina fey to jerry seinfeld took part in the show. president obama did as well as did the past three presidents, all on tape. letterman did not let it go to his head. letterman: in light of all of this praise, merited or not delete a favor, save -- do me a

favor, save a little for my funeral, all right? i would appreciate it. erik: letterman's replacement will be september -- moby colbert and letterman said he thinks he will do a wonderful job. those are your top headlines. olivia: shares of lumbar liquidators are down big-time on news that we just mentioned that ceo robert lynch will step down. bloomberg net townson has been following the story and joins us now on set. matt, what a fall from grace from lumbar liquidators. all bc, the federal government is investigating whether his allegations that lumber -- lumber liquidators holdings toxic point. often, when you see a management shakeup the share price goes up. matt: he unexpectedly resigned so basically it seems like he left in a hurry. it is a lot of speculation out there there is a federal investigation, california is investigating. that is what started the whole ball rolling on this alleged allegation of the california regulation. definitely not good, the stock

has been depressed since that "60 minutes" on the share and it drops today. erik: what do you know about the founder stepping in as the ceo? all i know is that he had a fairly small stake in the company, 2.25% on a stock are you now at about $500 million. matt: he sold out over the years and he founded the company. he kind of comes off as a blue-collar type guy in the eyes of marketing. he was the guy who was on the "60 minute" show defending lumber liquidators product saying that "if the minute -- "if the minutes" did the wrong testing and he muddy the water. it is all funded by short-sellers promoting all this and finally, recently, they said we are going to stop line this point from china. they all -- they are still selling it in their stores. erik: rob lynch, the guy who

unexpectedly resigned how strongly has he been defending lumber liquidators position in the months since this "60 minutes" report? matt: initially his comment was they are 100% safe at the most recent earnings statement they did not actually say our products are 100% safe. they said we are doing as much as we can to satisfy our customers and bring back safe -- save that we are a company and they stopped using the phrasing it is 100% safe. i'm sure that was something to do with liability. hey, you can't go around saying this. olivia: i'm just looking at this history you have been at lumber liquidators holdings 2011. you have been there a few years. two are so much, for joining us on the incredible new news on lumber liquidators. erik: meantime, your neighborhood cvs getting bigger. the pharmacy chain is purchasing

omnicare for $98 a share in cash. the total enterprise value is $.7 billion. most stocks are up, not by much in the premarket. bloomberg's deals report that hammond is here with more. we broke this story. ed: we did. we had the original story six weeks ago saying it was on the talk and we had about three weeks ago. erik: we have had some time to figure out what it is about on the care that interests cvs. explain. ed: to be frank, a lot of people are interested in this process and they get some fantastic access to these enormous assisted living communities which is expected to grow with the aging population. cvs -- erik: lots of drugs. ed: lots of drugs and this is

not a nice way to say it and it sounds trashy, but he wants access to patients transitioning across the care continuum. that means -- olivia: it means older people take a lot of perception medicine and 5000 americans turned 65 every day and guess what? medicare will pay for a lot of that. ed: you know what else? drug prices are going up, so the more you can take scale about distribution costs, you can draw. the reasoning that they want access is basically because it is a predictable and long-term revenue stream that they can say, we have this and we had this aging population. olivia: who loses out from the cvs deal? ed: we had scripts as being interested and walgreens earlier in the process. i think they are just losing traction in this whole pharmacy

benefit management phase where cvs really dominate the market. erik: in fact, it is more than nine years ago now, looking pretty genius. stock has more than tripled. ed: you know what, it goes to show that time can be on your side. olivia: thank you very much. they broke all the parts of that cvs-omnicare deal. olivia: still to come one very important person missing, we try to unravel that mystery, next. ♪

erik: c is holdingvs the annual

meeting today and one very important person sumner redstone is not attending. the ultimate fate over control over cbs and by, hang into balance. analyst at rbc capital markets who joins cbs and viacom and bloomberg contribute editor bill: wrote a piece for "vanity fair" earlier this month detailing some of those trusts. it is a fascinating story played out over sumner redstone, his future and more importantly, the future of cbs and viacom. david, what is it that concerns investors? david: the biggest question at the meeting today will be how it went with -- how they will with colbert and set up schatzker. olivia: what were they thinking? david: there has been controversy around should sumner pass, as we all will at some point, will it trigger some sort of a change in the destiny of it

by, or cbs? will they ultimately go into play? i think the question for shareholders is, does the event create a taxable event such that the trust will be forced to put the company in display? i think what seems to be coming out more and more now is the way the trust is set up, it is a generation-skipping trust funded with a substantial amount of dividends and income. it is a feeling less like there will be an urgency for tax reasons to put the companies into play. the question then becomes, what does the trustees ultimately see as the future of the company? erik: doing we know, bill what they see? bill: let's talk about the trust, who ends up being the beneficiary if and when sumner dies. olivia: we are showing that cbs and by, effectively owns 80% of both of those companies and his daughter owns 20%.

it skips the generation, so the grandson, his daughter's son who is 29 years old, he is sort of the king maker there is a group of lawyers in boston who have a say. bill: guess what? nothing is clear as you think it would good -- it would be in regards to the trust and who the trustees are. cbs has one view of who the trustees are by, has another view of who the trustees are. the answer is, we are not sure. it is not a public document, so we only know what we have been told. cbs had a filing, an sec filing one year or so ago where they actually laid out the names of the seven trustees whose names i included in the article. viacom has a different view of that very document. they don't have such a document. they used to file a document but don't anymore. i agree with david very

completely. let's remember, both cbs and by, have -- are public companies with public boards of directors, serious people on both of these boards, they have serious responsibility to the shareholders. they are not going to do anything precipitous, summit should he ever passed his death will not trigger anything that they don't want to have happen to themselves. david: the board has a duty to shareholders and the trust has no such duty. the trustee the is to sumner's grandkids. the trust has the responsibility to the beneficiaries of the trust, so i don't know that there is a conflict of interest. erik: not necessarily of interest. maybe a conflict of timing. david: at the end of the day, in a sense, they have different responsibilities, trust

responsibility to maximize the value of the trust and the board of each company is responsible for maximizing the value of the company. they are subject to different you know, delaware law versus trust law. i think it is like apples and stones as the short answer. olivia: how likely is it that cbs and by, is sold? bill: my view is it is as likely now as it would be two years after sumner's death. they make an operative the board of the companies and the board goes into revlon note and sells it to the highest bidder because that is what they are required to do. unless somebody is making that offer, sumner is just one shareholder in a very large voting shareholder and his economic state is actually quite low. one interesting thing is that from cbs, it is rumored to

supposedly have been buying sumners stake back of cbs. private equity, obviously and changing the capital structure dynamic of his company but eliminating that shareholder. david: for shareholders of cbs there is an interesting element in that cbs could use something called the catch rich split off to reacquire the stock from the trust with much more favorable tax consequences for the trust. it would be like attacks -- essentially a tax exempt event. it was actually a structure used once before to by john malone out in the prior decade of his stake, so you know it's got great tax consequences. so i think, we thought more about cbs trying to buy back that stake tax efficiently, but there really is -- there's no

immediate trigger, there's nothing that really has happened. the only thing we think about with shareholders is, if for some reason there was another chairman at cbs or viacom besides sumner redcoats, that does give les moonves the option to leave the company with a really rich severance package and i think that's something i think shareholders don't want to see. bill: i don't think he will leave because sherry is the vice chairman of both companies and frankly, likely to be the chairman despite difficulties that have been documented between father and daughter. i think she is likely to be the next chairman. les moonves gets along well with sherry. i would expect there to be a continuity in terms of redstone family authority at cbs and viacom as long as, of course, these trust has the big

buildings. bill: -- david: i think you get to work for you want to work for. olivia: do you think they will get back together? bill: no. olivia: what about the girlfriend? phil: one or two girlfriends, no supplies. sherry does not like the girlfriend and the girlfriends don't like sherry. i hate to say this because i will get in trouble, but it is a bit of a catfight, these three women and it ain't particularly pretty and it won't get any prettier frankly, as time goes on. olivia: you should up with the daughter in the catfight but to make clear, you are not seeing the girlfriends are pulling the strings behind closed doors which some people are saying sumner redstone is 95 years old and a half e-mails that have been leaked and some people are saying she is in charge. bill: i think that is probably not a bad way of describing what is going on. olivia: well.

bill: sydney has a huge influence over sumner at this point and how much string pulling she is doing is a matter of controversy. among executives at cbs and by,. city of says she is not doing any string pulling and other people think she is issuing directives that don't seem sumner-like but have his name on them. erik: same conversation. we thank you very much. gentlemen, lots of fun. i want you people to go to bloomberg.com and check out our latest story on the subject. redstone could leave the conflict in the cbs and by comp. olivia: let's get you caught up on some of the top stories this morning. in syria, islamic state forces have captured the ancient city. the city contains ruins of a 2000-year-old city that was one

of the most important cultural centers of the roman world. syria's government moved artifacts to damascus about 10 days ago. greece will try again to break the scale mate -- the stalemate in those talks. greek prime minister tsipras will submit a plan to restructure the country's debt. is this a plan we have been waiting for? we don't know. tsipras will also unveil a new proposal on sales tax. members of his party says unless you're up a mock's bailout money, greece will not be able to repay an imf loan early next month. hewlett-packard is selling off a majority stake in the china networking. they have agreed to pay $2.3 billion for the business called h3c. hp limited the list to just chinese cut -- companies to win approval from beijing. erik: those are the top headlines. let's talk about david letterman. he is the host of "late night." said goodbye last night and signed up cbs with the help of stars from tina fey to jerry

seinfeld and if that wasn't enough, president barack obama and the last three u.s. presidents also gave letterman their best. >> our national nightmare is over. >> our long national nightmare is over. >> our long national nightmare is over. >> our long national nightmare is over. letterman, is retiring. -- letterman is retiring. >> he is just kidding, right? erik: ok, that even had me laughing. olivia: i love that. i think bill murray did a little bit better than i do for. erik: we will be back after this short break, folks. stick with us. ♪

erik: you are watching "market makers". i've erik schatzker with olivia sterns and we are minutes away from the opening bell.

bloomberg editor at large mike regan is with us. mike, what is moving the markets? mike: the markets are not moving much, there is not much macro discussion. there are some great stories stocks as you call them. we will start with salesforce. obvious the, salesforce has been the focus of takeover speculation. they have hired anchors to evaluate offers and people are thinking microsoft or google might make an offer to them. today, that takeover got more expensive. the stock is up 4% or 5% after the race there for your forecast. the high end of their forecast is now 6.5 5 billion which is about 30 million more than their previous forecast. to me, the real interest in this story is some sort of trash talking going on between the ceo of salesforce and sap. it is good, you don't get a lot of trash talk among ceos so it is kind of fun. olivia: it helps us make news.

mike: he's saying he thinks prices are too high and has zero interest. this is the ceo of sap. salesforce came back and said the only innovation that sap has is in rhetoric and they should try writing software. as far as juicy gossip goes, that is pretty good. the other stock is number -- lumbar liquidators. taking a big hit. you know, coming up to a surprise that robert lynch resigned as ceo. he pretty vigorously try to defend lumbar liquidators after the "six a minute" report -- "60 minutes" report. i mean their flowing from china had too much chemical in it. it is interesting because when an embattled ceo steps down it is good for the stock but not at all today. erik: i don't think they are about to buy lumbar liquidators and if they are, i doubt you

will tell us. >> you do look at things like the chinese supply chain and that is what it was all about. we spent a lot of time as enterprise looking at franchise risk. we have a team dedicated globally to that because of these issues to come up. the differently as you get into the emerging market, things can go the way you don't want them to. you've got to spend a lot of time speaking about company franchise and ultimately, kkr is partnering with the company what does that mean for our brand as we extend into new markets and products? erik: mike, you've got another chinese stock. mike: yeah, exactly. olivia: this guy is the richest man in china, correct? he made $50 billion on wednesday. mike: a minor -- he lost $15 billion on wednesday. mike: a minor setback. they lost about $19 billion in 24 minutes of trading.

the company was up today say they do not sell any states or do derivative trades but not really addressing a lot of the issues surrounding this company, including manipulation of their shareholders. questions about accounting. again, this is familiar territory for anyone who looks at china. henry: right now, they are up dramatically this year. you have a lot of money coming in so any move you have, whether it is related to regulatory issues or erik: hang tight. mike, thank you very much you heard the opening bell. that means the new york stock exchange and the nasdaq are open for business. let's go to the newsroom with some stocks to watch. bonnie: overall, we've seen some modest decline right now for major benchmarks. hp selling a 50% stake of its

holdings -- it's chinese server business. make whitman has been trying to in the company towards more of the software side of things. this is going to help hp move the company into the china i.t. spending area. hp is trading off a portion of margin to increase sales in china. it's down 17% year-to-date. moving on to best buy. there was a big beat there. the stock of sevenup 7% today. large screen tvs were more popular than we thought and mobile phones.

dollar tree is going to complete the merger with family dollar. divesting about 338 stores in the coming days to help with the review which is almost under -- erik: mike reagan just brought up lumber liquidators. the ceo is leaving unexpectedly. tom sullivan, the founder, is stepping in as interim ceo. lumber liquidators has stopped selling the chinese laminate flooring. they stopped selling it as of may 7, the flooring that came into question after that 60 minutes report back in march the. olivia: you are looking at how shares of deutsche bank are trading in europe. they're not happy with the management board and have been expressing concern at the bank's

annual general meeting g. thank you very much for joining us this money. obviously, a big management shuffle overnight at deutsche bank, one month after the strategic overall, the new strategy. -- strategic overhaul the new strategy. do the changes announced at deutsche bank allow your concerns? hans: we were aware of the reshuffle, but we considered it a stopping point. the fact that it was done -- they are reshuffling things. that is not quite the change we would like to see given our

concern of the performance of the management board. erik: what would you like to see? hans-christoph: the implementation of strategy the failure to reach key targets, concerns about dealing with litigation -- there was the recent libel settlement. what people would really like to see is for the chairman to step back and take another hard look at the people on the board and see what they have done over the last three years. then take the consequences and look possibly at new faces. olivia: do you support the broad strokes of the strategy overall? deutsche bank wants to double down on trading and not go the

way of ubs and not focus on wealth management. do you think that is the right strategic direction? hans-christoph: there was the big strategy announcement last month. it's a little unfortunate, they have not been long-term investors -- it's just too early to tell. what they have presented makes sense. erik: why do you want to give the chairman more time? why not demand changes at the board now? if you are not happy with the direction deutsche bank is taking come if you are not delighted by this strategy and you don't approve of the management shuffle last night, why not demand change immediately? hans-christophe: the changes in

the board system -- the ceo is leaving the management board. that's a bit different than the system in the u.s. or u.k. the proper way is to get -- give the chair a strong signal that we as investors are not happy -- it's for him to make these changes. erik: i recognize the difference, but i do wonder whether there is room for shareholders like yourself to become more activist. there used to be a way of doing business here in the united states, it was a very gentlemanly way of doing business. i wonder if it's time to stop the niceties in europe and for shareholders to become a little harsher and more demanding of the company.

hans-christoph: that is already happening. the fact that i am here today representing 40 funds from around the world, giving you an eight minute speech on the discharge of the management board, that's an extremely rare event for any institutional investors. overall, the german system has worked well. the need more investors -- they need more investors to focus on what's best for companies in the long term. i would not say we need to follow the u.s. path but i will say that we need more long-term investors like us coming to meetings like this. and vocal rising, not just exercising voting rights. erik: change is coming.

we thank you very much. olivia: still ahead, much more with henry including what he says to stay away from emerging-market stocks. "market makers" will be back in just a moment. don't go away. ♪

olivia: we are back with the head of global macro an asset allocation -- he tells investors to stay away from emerging-market stocks. why should we stay away? a lot of people say there has been a nice correction valuation, it's the right time to get in. henry: cycles typically last 80 or 90 months. they outperform or underperform. you look at the emerging markets, three things have happened. earnings since 2010 have been flat to down. it's hard to believe for economies -- people don't focus

th on that. currencies have been hit badly. you lost about 70% of your turn in currency devaluation. -- your return in currency val devaluation. you think about our franchises today, we do maybe 70% of our deals outside of the u.s. we are very active from a private equity standpoint. what we have been trying to do is target whether it's a specific issue -- a lot of the big emerging-market indexes are enterprises where the government may have their hand in the cookie jar and it affects your returns. people want to buy gdp per capita increasing -- how do you do it? our message is, there are lots of different ways to do it.

some of those equities work sometimes. we do private equity in india. real estate -- make sure you have a broad suite of products. going in and sang you will buy the korean index or chinese index or brazil -- since the last five years come emerging markets have been one of the worst-performing asset classes. when you pick your spots, you can make some decent money. erik: is the horse not out of the barn? maybe some of the impact is priced into these currencies. there has been some dilution. is it going to get worse? henry: i don't think it's going to get a lot worse. the horse has left the barn. the question is, where do you want to play from here? we have been very active in

china, very active in india. spending a lot of time in looking at mexico. what we've been trying to avoid is firms connected to china growth over the last 10 years, big commodity players in brazil or russia or malaysia. we think that is a structural problem in china -- there is a big service economy growing to try to replace that china game and that's where we've marshaled our resources. olivia: is india playing out as well as you would hope? henry: i just saw their central banker speak this week. the central bank in india gets underplayed. he is a formidable player. the story will take longer than people think.

if you look at it today valuations are down. our biggest practice right now is actually we are doing a lot of non-bank lending. think about where interest rates are in india come you can hurt a 15% interest rate on the credit side -- you can earn a 15% interest rate on the credit side. fast-growing companies have 5% inflation that's a good instrument to have there because they want to pay it down and nominal revenues are growing quickly. emerging markets, we all know it's going to be the growth driver over the next 5-10 years. the question is come are you getting the right vehicle for investing in that? for the individual investors come i think people have been sold the dream and the dream has not manifested and given returns. erik: before you go, mexico.

0henry: mexico is benefiting from what's going on in the u.s. people under appreciate the north american story is a very powerful story. exports and mexico are surging. energy, telik medications -- telecommunications and a fast-growing real estate market. there's some pretty interesting opportunities for institutional investors. i would spend the time focusing their. -- focusing there. erik: let's have a look at the top stories this money. newly released documents show osama bin laden wanted to stage more attacks on the united states. at the same time, he wanted to control followers to form the islamic state.

number of english-language books and magazines were found in that raid. david cameron is calling for tougher restrictions on immigration. the government wants to punish illegal workers and step up deportations. uncontrolled immigration can damage the labor market. olivia: another large protest is expected outside of mcdonald's headquarters today while shareholders meet inside. the demonstrators are calling for wages of $15 an hour and the right to unionize. the complex was closed yesterday because of the marchers. they were address stockholders for the first time -- this is what i was doing last night. jr smith -- cleveland beat atlanta.

missing eight three-pointers. lebron james led the cavs with 31. game two is friday night. you know where i will be friday night. watching that game. maybe lebron is worth the money? erik: when wasn't lebron worth the money? he's a pretty good basketball player. when we come back, hockey is my thing. the toronto maple leafs -- for a coach. enough hockey. mickey gooch wasn't always happy. he had some harsh words for howard let. . ♪

erik: coming up in our next hour

, this week's housing numbers suggest a strong u.s. market some furnishings may not be doing quite as well. the ceo of ethan allen will talk about his industry and the leaders of canada's biggest pension plans are gathering in toronto. it will take you there live. that is all starting at 10:00 this morning. the battle between gfi and -- may be over but the nastiness has entered the permanent record. gooch had some harsh words in the month before bgc won the takeover battle for gfi. for more, zeke is with us. there are some great stories today. this is by far my favorite

story. talk to us about what mickey gooch was saying. zeke: mickey gooch was working -- he has agreed to sell his brokerage to let th -- in december, he was being deposed by lawyers for shareholders who were suing him. they say, why don't you want to sell to bgc? this is what he said -- they have committed to committing crimes, money laundering their relationship with their employees is outrageous, there are in constant litigation with their own employees all of the highest producing brokerage in my company would not work for bgc under any circumstances. now they are. he also used the words "ponzi scheme." erik: let's bring up that direct quote.

it's important that people see the words mickey gooch had publicly spoken on a number of occasions. it's an extremely risky dividend ponzi scheme that could collapse at any time. according to the transcript that's what he said. zeke: when i spotted this in court filings -- which took that back. he said extremely risky dividend policies gamcy scheme. erik: depositions are not given and then just ignored. depositions are taken in the course of a legal conflict. one would have to presume that at the very least --

olivia: he was trying to not sell the firm. erik: mickey gooch's lawyers and howard's lawyers have reviewed these transcripts. nobody withdrew the statement -- z: apparently, they are withdrawing it now. we will have to see. erik: where does this go from here? mickey gooch is wearing for howard lutnick. he is not the kind of guy to just let these things go by. zeke: he has already won the battle after months of trying to hold out and sell to someone else, mickey gooch finally sold to howard. he signed a deal to work for him through 2018. maybe he can let it slide. olivia: that will make for some awkward elevator rides. erik: what does bgc do and what this gfi do?

zeke: these guys are interdealer brokers. they are on the phone handling big traits for banks anonymously. it's an old-school part of wall street where you get to know your clients and say come out for stakes, smoke cigars together. brokerages have always fought, poaching each other's employees. erik: old-school trash talking. that does it for "market makers ." olivia: we will be right back. ♪

olivia: it is 10:00 a.m. in new york. erik: welcome to bloomberg's marketing. olivia: we are waiting for the latest data on existing home sales. we will be speaking about the

trickle-down effect. erik: cbs is betting big on seniors. -- cvs is betting big on seniors. betty: the california drought could take a big bite out of their investment. good morning, i'm scarlet fu. we have breaking news on housing data, existing home sales numbers we will head over to gillet. julie: this in sharp contrast to the housing permits numbers we got recently.