training. betty: new york city schools are lower interest rates. scarlet: and the summer movie season is upon us. it is all about summer sequels. scarlet: good friday afternoon, i am scarlet fu along with betty liu. betty: let's see how markets are trading right now, stocks are mixed. they started to retreat a little bit and started to make up for the losses after janet yellen spoke. it does not look like we are going to hit that record high again, the dow is off by 24 points.

nice way ofed is a putting it, it is just sort of deathly right now. betty: bonds are mostly lower, so lower prices means a higher in yield, so that could change it to .90%. to 2.98%.hange treasuries were on .02, so that's the treasuries. betty: and you can see the greenback is up, and new can see can seeumbers -- you the numbers shot up and even during a yellen's speech even held onto those gains. scarlet: let's take a look at the top stories across the bloomberg terminal at this hour. share said there is the

possibility every zine interest rate before 2016. she made her speech today in providence, rhode island. she said the gradual pace of tightening will follow. we are already trying to get back to our objectives, and we would risk overheating the economy. the economyson, if continues to improve as i expect, i think it will be appropriate at some point this initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. scarlet: that was funny how she turned the page. she echoed the fed's april statement and expects the economy to return to a moderate pace of growth after a disappointing first-quarter. there she thinks that

were many things that hurt the first quarter, but she reiterated her belief that the data will ultimately get stronger. janet yellen: my guess is that the apparent slowdown was due to a variety of transitory factors that occurred at the same time, anduding the unusual cold snowy winter and the labor disputes on the west coast, both of which likely disrupted some economic activity. some of this apparent weakness may just be due to statistical noise. i therefore expect the economic data to strengthen. yellen set the policy is not on a preset course and may improve quickly if it does a better or raises rates at a slower rate, and we will have her thoughts on the future of europe at the bottom of this hour. scarlet: almost 300 related

benghazi e-mails from hillary clinton's private server have been released to the state department -- from the state department. they have now been classified. the state department released a total of 296 e-mails belonging to the former secretary of state. elijah cummings said this is proof that clinton did not order a stand down or approve a listed weapons program. betty: nevermind all the brutal winter weather, eating town is getting bigger -- beantown is getting bigger. nearly 6000f gained suburbs ofin cambridge in watertown, and the reason for the growth is immigration at an influx of young people drawn by the area's many colleges. scarlet: and a basketball icon

could have just one season left in a very storied career. , kobe bryantespn told his season manager that the next -- told his manager that his next season could be his last. he was voted the most valuable player in 2008, but the 36-year-old kobe bryant has been struggling with injuries in the last season. those are your latest top headlines. betty: coming up in the next half hour of "bloomberg market kong a campaign in hong hopes to put a new face to littering. invertibleyou why an group think that science could be the solution to trash. the ipo market is actually cooler than last year, we will explain. betty: and we will tell you about what the stumbling at real estate market tells you about the financial health of silicon valley. scarlet: it has been a big year for pharmaceuticals, and there

ans no bigger sale th .aliant >> i think the emerging markets, there has been a great devaluation in terms of the strong dollar, so i think that many, many companies are reluctant to go there and we would like to go where people are reluctant, that is their strategy, it is a one of a contrarian strategy. >> so i should look at markets like brazil for example and say, that is the kind of ant likes to go shopping? >> we like to do deals that great long-term benefits for shareholders. we are also looking for markets that have great long-term growth prospects, and that comes down to demographics, it comes down

to whether we believe income will rise over the next decade or two. so we look at the fundamentals. -- iere are the economic was just great essay, by the economic -- i was just going to say, are the economic animals good insert -- economic indicators good in some places? >> we like asia and russia and we like mexico and colombia, chile, and peru, we like those fundamentals. those are just a few examples. >> doesn't the speed with which you reach for salix, even though it was a competitive situation, say something about which the way that valeant will bid in the future? >> we always tend to move pretty quickly. greatf it is that we have interaction with our board, they

are willing to meet a thickly any time, anywhere -- meet anytime, anywhere. got a lot of deals, and i think one of our core capabilities is both due diligence and making sure that we can do that and that we are ready to do that, and also, integration very quickly. speed is one of our competitive advantages. >> how are you going to change or evil once access to capital once access toe capital dries up as it inevitably will? >> there is always times in a is moreere capital expensive, but part of our --ategy is to make sure that to make sure that we always have access to capital, and that is why we want to keep our ratios at reasonable levels, so part of

our strategy is to make sure that we always have access to the capital markets. >> as you put it out -- thatwould disagree inevitably, it will dry up. >> well, to europe that, there is a cycle, there is a time when credit is readily available and a time when credit is much, much more expensive. there are times when prices determine whether a deal is feasible or not. >> that is very fair, so if interest rates are much, much higher, it makes the hurdle are doing that deal much greater, but we are fine if we go through iseriod like that, say it two years or six months, our base is doing extremely well, and we are more than happy to continue our base his this, and we will continue to use our capital to buy back shares. again, we believe we are worth more -- and there are. periods of time where we have

done that aggressively. >> you walked away from allergan because that deal had an partneringproach with bill ackman in a pershing square. whether the know success with that approach, in that both of you made money even though it you did not make allergan would become a tablet for the future -- template for the future? >> not necessarily, we talk about hostile takeovers with thats, and we have targets we are interested in when we evaluate our business, it is not like we will never say no to anything, but we are not likely to approach -- take that same approach again. nt ceot: that was valea mike pearson speaking with erik

schatzker. betty: will science help with littering? we will talk about dna helping with hong kong's littering. ♪

scarlet: welcome back to the bloomberg -- the "bloomberg market day." let's go to julie. is one ofpbell soup the best performers in the s&p 500 today. the earnings did beat estimates in its forecast, but those campbell's sales were hit by

currency, as we have seen happen at so many companies during this season. hewlett-packard is also doing estimatesnd quarter are doing well, and of course, hp is going to be separating as well, we will have more details with that separation. and they also introduce the word ynergy. this,aid that based on that cost will be $450 million, but analysts say that will be lower than they had anticipated. and gap also taking a look at that, the stock is at the lowest in the last three months time, they were back to what they had butunced three months ago, investors are somewhat disappointed that the stocks are down 1.2% and it also did not raise its forecast for a full year's earnings.

all of this as competence of fell by 4% last summer, and old navy is the stand out there, but get was the name brand and banana republic is not doing so hot, but old navy -- so hot. betty: old navy has a surprising turn around their. -- around there. scarlet: by the way, i got to ynergy into my vocabulary. and now for a work at the top stories crossing the terminal. course ebi rose 3/10 of 1% last month, and that is the inflation level minus the expenses of food and fuel. america's largest food retailer wants to limit the use of antibiotics in farm animals

and to treat them better. walmart is telling its suppliers to cease using antibiotics in the meat and bigs that it sells -- eggs that it sells. the only retailer of its eyes to make such a stance. re rises ond dee forecasts, but this is a growing demand for dump trucks and other construction vehicles. those are your latest top stories. moving on it now, hong kong is putting the face -- a face on the litter bugs. they are shaming people who carelessly toss their garbage onto the streets. how? collecting dna samples from coffee cups, chewing gum, and cigarette butts, and then they use the dna to create these faces and plaster it on bus

stops. betty: you lived in hong kong and i lived in hong kong as well, i was born there, and i think this is genius. scarlet: it is. betty: to use science to get people -- because, nobody wants to see their face, even if it is a composite up on a billboard, and one of the things about hong kong, i think the litter would be even worse that all about hong kong, you know this sc arlet, there are people constantly picking up garbage and wiping down elevators. scarlet: i lived there for eight years and when i moved back, i was surprised at how much cleaner the streets are than they are here. the subway stations are filthy and there are rats scurrying around everywhere, but the streets of hong kong are crowded and it is very humid, and that engenders a lot of feelings that it is not clean, but people are

picking up litter as soon as it hits the ground. changears, things really and the city made a conscious effort to clean up after itself. betty: it did, and what you said about the crowded miss of the ty, that is key here, because it is even more concentrated. if you go at 5:00 p.m. to times square here in new york and you feel cost of over -- feel koster phobic -- he'll claustrophobic, it is five times that amount over there. this is genius, i wonder if we are going to do something similar to that, putting a face to a faceless prime. where else can you apply -- crime. where else can you apply this kind of technology?

don draper, where are you? scarlet: coming up on "bloomberg market day," we are losing our originality, does this trailer look familiar? ♪ scarlet: i am guessing that is jurassic park -- "jurassic park" which was over 20 years ago. is that ron howard's daughter? more on the summer of sequels, coming up next. ♪

scarlet: summer movie season is underway for a big budget films bigneered to be blockbusters, films include "poltergeist" and "tomorrowland" with george clooney. betty: this summer you won't see a lot of original movies, it is all about remakes and sequels just like last summer. ♪ , studiosmer' are investing in remakes and sequels. the summer movie season kicked " andith "pitch perfect 2 it made more money in its opening weekend than the previous film made in its entire movie theater run. this summer, their worldly more comedy sequels.

>> if we want to have a baby, you are going to have to prove that you are a person in a court of law! >> what we are seeing is really a sequel from last summer's summer of sequels. if you look at movies from 2014, there was a fourth transformers s," thereformer was "planet of the apes" as a "22el, and a jumpstreet." there is a "terminator" sequel, the first "terminator" movie came out over 30 years ago. "mad max: fury road" is the fourth installment of a decade.

all of this seems to be working out for the studios. they are on track to make $5 billion in the next few months. box officebe an bo record. betty: you could be in the theater all summer long, and david joins us now, so what does this mean, fewer movies? david: the way they break this down is that there are indie movies on one side and in fact, the number of movies stayed roughly the same, about 40-50 per summer, but there is a movement to franchises and a lot of money has been pumped into these things. scarlet: i feel like this shows how conservative movie executives are, you can take a leap on something that you think might take off or not. you are in the arts industry, right? david: you look at these movies based on comic books, people are

really attached to them, and action movies as well, if you go to the theater, you know what you are going to get into. betty: i am not the target market for some of these action movies, but i have to say, i have to confess, i took my boys to go see "the avengers: age of i just could not wait to see this and, but my kids were there. [laughter] sequels all of these that you just highlighted, all of these movies from all of our r'sldhoods, maybe the gen xe will take their kids. david: i remember seeing "jurassic park" and thinking it was great, and so i thought the sequel was something i would want to see. i have a two year old, so i have not seen any kind of that these

-- any kind of these movies. i would like to see "mission impossible," the fifth iteration. scarlet: who is going to be the costar with tom cruise? david: i don't know. harrisond i hear that ford is going to sign onto the next "indiana jones." how old is this guy? how long is he going to stick around? scarlet: our thanks to bloomberg's david gora. and i am going to stick with you till the close. betty: much more on "bloomberg market day," and we will talk about ipos and pipelines, coming up. ♪

[beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place ♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and singing ♪baby come on over tonight anchor: welcome back to the "bloomberg market day." some of the top stories crossing our bloomberg terminal.

fenchurch and a yellen said earlier today a rate hike is likely in 2015. yellenchairwoman janet said earlier today a rate hike is likely in 2015. in addition to endorsing what she sees as a strengthening u.s. economy, she said there are positive signs overseas. the eurolen: initially had crisis was the biggest headwind coming from the rest of the world. supported by monetary stimulus, andced fiscal drag, significant institutional reforms, the recovery in the euro area now appears to be on a firmer footing. betty: yellen also said other markets like china have seen slowdowns. she said those struggles have reduced u.s. exports and wait on the economy here. nearly 300 benghazi related e-mails from hillary clinton's private server have been released by the state department. at least one message related to the attack on u.s. facility has

been classified. it is related to possible arrests in connection with the violence. the state did department released 296 emails, including nearly 900 pages in all. elijah cummings said the release proves clinton did not order a stand down or approve an illicit weapons program. coming soon, from phillip morris, [indiscernible] quote,cigarettes are intentionally designed by their manufacturers to ensure addiction. that is the position of an appeals court that has been hearing a racketeering case. the same court said the companies don't have to say they lied about the dangers of smoking. those are your latest top stories. coming up in the next half hour of the "bloomberg market day," san francisco's subleasing, what the market means for the financial health of silicon valley. new york city private schools

are diving into debt to beat the competition, and while rates are low, we will explain what is going on. we are 30 minutes away from the closing bell. we will have a look at what is moving on this friday before your memorial day weekend. at this time last year we saw nearly $22 billion in proceeds, this year we have only seen about $13 billion. technology is all about private versus public, and much of the growth investment is happening in the private market. uber, airbnb, and snapchat raises billions of dollars. its debutain after yesterday -- will that convince other private companies to go public? a discussion on why we are seeing fewer ipos. >> it is a confluence of a few factors. one thing in particular is the s&p 500 has risen.

he overall benchmarks have risen so much over the last couple of years. investors have wanted to toticipate in ipo's, outperform the markets. this year the benchmarks have not been that stellar. same is true on the supply side with companies going public. over theent public last two years. there is a smaller pipeline this year. issuesu factor in the surrounding energy, the uncertainty surrounding energy and a few other factors, it just isn't that right time to go public right now. this i will come back to idea of benchmarks. and when you to comment on the technology business and this idea that people are piling billions of dollars into private companies. is that different than it was in the past? >> definitely different. if you look at shopify yesterday, it was a great deal and well executed. that to last week, carl icahn put $100 million into lyft, the number two player in

the ride sharing space, which should give you a sense of one man doing an ipo, how much money is going into the private market. if you look at year to date in 2015, the amount of capital flowing into tech companies in the private landscape is eight times that of the public side. it gives you a sense of the scale of what is happening. pimm: one to bring up airbnb and uber as examples of what you are saying. if someone like carl icahn is putting the same amount of money raises -- an individual is a public market. second, if you are a private company, do you want to stay private as long as possible because you pump up that valuation so when and if you go public, the payday is even bigger? >> that is part of it. when you look at what happened with etsy -- pimm: explain what happened. >> the first day the cup and he went public based on an 88% jump in their share price because there was so much fervor

surrounding the company at the ipo. once theyh later, have posted their first earnings report, they are trading very close to that ipo price. when you look at this as a private company and you say, if i stay private and the capital is cheaper in the private markets because there is so much cash in there, why don't i stay private and i don't have to deal with any of this public outrage from public investors watching my stock chart every day, my employees getting that sense of anxiety as they watch it crumble -- staying private is easier for a lot of these companies. hopify you say, that is a success, it has emboldened other tech companies? >> i think it could. you saw who to suite media and another canadian company say, we might contemplate an ipo sooner. a lot of these companies will stay private. it used to be go public to grow, where you had yahoo! going public in 1996 on $3 million and trailing revenue. nowadays the company's girl

private, and you have facebook going with $4 billion in revenue or alibaba with $9 billion. nowadays the companies that seem to be going public are going public to get liquid, whereas they are growing in the private side. pimm: what about the pipeline that exists right now? probablyl see fitbit next month. you are starting to see it pick up a bit. pimm: vizio, fitbit, wingstop. >> there are a number. at triton we have a watch list of 100 companies likely to go public. a number of these are the so-called unicorns. there are 70 or 80. i do think it will be a slower trickle than you have seen. pimm: i want to bring back that chart and get your thoughts on a couple of these if we can. which one of these stands out to you? >> i think univision is one of

the key companies that most people who are watching the ipo markets are focused on your univision is one of a slew of these private equity backed companies that were bought during the buyout boom that will come out. this one will be bigger in size than a lot of the tech ones. it could be $1 billion. that is what we reported. that joins other companies such as first data and sungard that are all speculated to be doing pio's -- ipo's this year. , that may belibaba sponsor backed deals could fill the void. betty: hard to beat alibaba. walmart is upping its guidelines for wholesome meat. the nation's largest food retailer urging thousands of its suppliers to curb the use of antibiotics in farm animals and improve the treatment of the animals. president andhe ceo of the human society of the u.s., who worked for years with walmart to get these guidelines

in place. ago, mcdonald's, and a cascade of other big food buyers announced policies to forbid buying animal products, in this case, pork, from operations that can find the sows in small crates. betty: they were the holdout? >> walmart behold out and the big player. they have such an enormous supply. we have had a great dialogue with the company for a number of years. outy the announcement came with this framework as you indicated in your setup, the five freedoms. animals have to have space. crates for cakes. feinman battery cages for laying hens. confinement battery cages for laying hens. quote, theret says is growing public interest in how food is produced and consumers have questions about whether current practices match

their values and expectations. everyone wants to eat better these days i know where their meat is coming from. but these are just guidelines. how do you know walmart is really going to make sure their suppliers stick to these? >> we will hold them to it. consumers are going to hold them to it as well. the public does not want to see animals tormented and tortured and immobilized to produce meat. what we have had, which is animals living so crowded that they can't turn around, that six or eight birds are jammed together like six or eight of us in a small elevator, you never get out, that is not acceptable, just like we don't tolerate slavery for agricultural production like the immokalee tomato workers, we have got values. animals matter and should be treated humanely. walmart and sam's club stores will demand that farmers tolerate no animal abuse and

uphold the quote five freedoms for animals, including a fresh diet, shelter and rest areas, prevention of illness and suffering, and even the good company of similar animals. much more ahead on "bloomberg market day too." the san francisco real estate market might tell you something about the financial health of silicon valley. ♪

betty: welcome back to "bloomberg market day." 15 minutes before the closing bell. you've got the major averages at this moment, in the equity market. just down slightly for the s&p.

it does not look like we will hit that record. the dow is off by 23 points, the nasdaq is higher by 1/10 of 1%. julie hyman has more on what is trading in the markets. julie: if there is any gain in the s&p 500 it would be a record. we have been bouncing above and below that zero line throughout the session. get it potentially still there. volume compared to the 100 day average is 28% below that level. a lot of people have gotten out of town for the holiday weekend. let's look at the week as well. if we do see gains for the s&p for the week, we will still see gains even with things little changed. it looks like it will be the third straight weekly gain for the s&p 500. if we can look at the s&p on the week, that would be great. there it is. take a look at -- 3/10 of 1%, and up to make it the third straight week of weekly gain. has hadhe nasdaq, it

the best week of the three major averages. the best and worst performers of the week -- it's been all about cable this week, it seems straight a lot of speculation about deals in that industry, will it be time warner cable and charter, will cablevision finally link up with somebody -- cablevision on the week has seen the best performance in the s&p 500 is up at 22%. the worst performer in the s&p airlines,en american and that is reflective of the performance we have seen from the airlines generally as capacity concerns as well as are we going to see a price soar, that concern cropping up in the markets this week. betty: thank you so much. desk hyman at the news there. now i look at some top stories at this hour, another chapter coming to a close. today the dutch government said it will sell off abn amro bank. seven years ago the state took over the ailing bank.

the plan is to sell off the bank in phases beginning later this year. the spp says it is ok to merge. therman tom wheeler called ceo's to say there is no blanket ban on corporate deals. both companies are reportedly exploring a combination. executives expressed concern after the fcc discovered the merger of time warner cable and comcast. a study suggests men have an advantage over women when looking for that first job out of college. men are more confident they will be successful and earned a good salary. the study comes from job search engine monster. 16% of college women were absolutely confident they would find a job compared with 27% of college men who said that they would be able to find their first job. those are your latest top stories. there is a land grab in san francisco, but how much is too

much? the "bloomberg west" team crunched the numbers and found a growing number of tech companies are subleasing existing office space ahead of future expansion. is this perhaps a sign of a bubble? "bloomberg west" anchor emily chang joins us from san francisco on that story. emily, you mentioned in your story about a square and how they are subleasing space. how much are they putting on the market? emily: the lord square is putting two floors of its prime san francisco headquarters on the market to sublet. they have six floors and a building down the street from us. they are putting two of those floors on the market, about 50,000 square feet. this is part of a growing trend we have been seeing here. tech companies, maybe they bought too much. either way, they can't fill the space right now so they are getting other companies to move in. it is not just square. look out down the street also

subletting 10,000 square feet. salesforce, zillow, a company alled crunchy roll, sega, these companies subletting space right here in san francisco. its fancy headquarters, so it is not technically a sublease, but they have been leasing out more and more of that space to other companies like practice fusion. zynga just laid off about 300 people. things that can be a sign of is that big bad word, bubble. the space they are seeing is going up and up. schwab put square feet on the market. the way they look at it is sublet space as a percentage of vacancies, that number is at its highest point since the financial crisis. betty: are you seeing anybody by

new space? of these newying properties is not slowing down. buildings through 2016 through 2018, all the new space being constructed is being bought by tech companies. optimistic about their growth prospect. one of the things is they can actually make a lot of money on sublets because they can rent out the space at a profit. two to three years down the line, they may not be able to fill that space, and that is when things could get a little dangerous. we will be speaking about this on "bloomberg west." betty: very interesting. emily, thank you for bringing up that story. she will be talking more about this topic. ♪

betty: ivy league colleges are

not the only ones selling debt to pay for expansions. new york city's elite private schools are ramping up their sales attack exempt debt as well. they could exceed the record of almost $280 million issued in 2002. joining us to discuss what is driving this binge on debt is bloomberg's news reporter, martin braun, and an education analyst at standard & poor's. martin, give me the size and scope of the borrowing we are seeing now among manhattan schools. >> right now we are seeing $70 million of darling and we are online for another 150 million dollars in the next couple of months. riverdale has a tuition of $45,000. collegiate, saint and stash these are schools -- saint anne's, these are schools --

betty: is part of the reason because they are worried about rising? rates guest: that is part of it. there are a number of dynamics. endowments have gone up as martin has gone up. these are colleges and universities, in a way. in the marketet before interest rates go up, and they also have projects they need to do because their facilities are not up to snuff. ok.y: needed upgrade, how strong are these independent schools to borrow in the bond markets at reasonable rates? guest: the schools that are borrowing in new york tend to be some of the stronger independent schools we rate. they tend to be in the "a" category or above, schools that have really strong selectivity and matriculation numbers, so very strong demand, despite the

large number of schools in manhattan and brooklyn in the bronx -- and the bronx, they attract quite a number of students. betty: you noted that they have been upgraded more than they have been downgraded in the past year? guest: the universe we track of independent schools, it is national and includes boarding schools an independent day schools. we have seen there is stability somee sector, and resiliency to what is happening in the rest of the economy. the track record in the last year is more upgrades and downgrades. betty: is there a resiliency here in new york among the schools? demands, they turn away -- some of them turn away 90% of their applicants. they are very selective. there is no price pressure on them. tuition has gone up to the percent in the last decade. you are seeing people pay $40,000 a year to go to school.

betty: even they need to keep those costs in check. there is so much right now about how high tuition is at colleges and universities. they are battling the same thing? guest: yes and no. that --e certain people they don't have to worry about it. about a veryg small portion of the new york city population. you mentioned the endowments. talk a little bit about how they have managed their endowments across the country. guest: it tends to be governed by an independent body of the board. independent schools will have a consultant they will work with as well. they tend to be pretty sophisticated, given the boards ofcy of the these independent schools. you have a lot of financially savvy people. they tend to be less aggressive than most institutions, and to be more conservative.

they are really looking to preserve the value of the endowments overtime. they take a 5% draw for operating support throughout the year. betty: what is a big difference between rating these independent schools versus universities and colleges? guest: they are very similar, actually. when you look at the small, private, independent schools versus private colleges, one big difference is you look at schools in new york, they have a local draw. they are not recruiting students from california to attend a school in brooklyn heights. whereas you do see that at the small, independent private schools. in many other respects they are similar, and some of the pressures on demand are similar too, in that they need to maintain facilities that are not only up to standard, but also that will be nice enough to attract students who have lots of other options. betty: how much are those amenities, the nice pool and the good rec room?

guest: i think it's very important. they are catching in that they have to upgrade their facilities. but they really need the best facilities. have the best pools, the best and they are hiring well-known architects and building environmentally sound buildings. they are paying a lot of money. betty: martin braun of "bloomberg news," thank you. much more ahead on the bloomberg market day. ♪

betty: we are moments away from the closing bell. this is the bloomberg market day. i'm betty liu.

♪ there we go, a close to another trading week and another trading day. i want to bring in scarlet fu. also, our bloomberg stocks editor, michael reagan. let's look at where we are about to close here. just as we have got into the takenew moments, we have a turn down here. the s&p off now by 2/10 of 1%. the dow is lower as well. maybe everyone is closing their books out. scarlet: something might happen out of greece this weekend. >> that makes sense. volume is 20% less than average for the day. the big mover of the day was