this is the bloomberg market day. charter communications agrees to buy time warner cable or 55 ilion dollars in cash and stock $55 billion in cash and stock. ives promoted to chief design officer. >> this week marks the one-month anniversary of that devastating earthquake that killed more than 8000 people in the paul. .- nepal the challenges of getting life back to normal. betty: good afternoon. i'm betty liu, here with mark crumpton. mark: let's start with a look at what is moving the markets on this tuesday after that long memorial day holiday weekend. stocks dropping the most in three weeks, trading returning

from a long holiday, the s&p 500 sing its biggest slide since may 12. the market down 1%. down 18 points. the nasdaq composite down as well. gold and oil both retreating. gold is at a two week low on speculation that federal reserve will raise interest rates this year. gold futures falling about 1.5%. sharply downalling over 3% at 5783. treasuries pretty much unchanged here with the two-year and 10 your notes. the bond investors are still not trusting the forecast.

the currency markets as well, you are seeing the dollar strengthen quite considerably particularly against the euro. euro,wait against the also stronger against the end. -- 108 against the euro come also stronger against the yen. john malone is finally getting time warner cable. the price tag come if $55 billion in cash and stock. alone is charter's biggest shareholder. last year, they rejected the takeover bid and later accepted an offer from comcast. the bid fell apart in april and that open the door for charter to try again. tom rutledge says he does not mind paying the higher price. >> time warner is more valuable today because they have been successful during this process. rob and his team have continued to keep their eye on the

baltimore. we have grown our business. we are comfortable with where we are. keep their eye on the ball. comcast's deal fell apart over regulatory issues. charter not expect to have the same sort of trouble. sales of more than expected -- new home sales of more than expected home prices in 20 big cities grew faster than expected in the last year. the housing index jumped 5%. that reflects a limited number of properties on the market. in texas, 11 inches of rain have turned the city of houston into a giant lake. three people were killed, 700 homes damaged. authorities shut down freeways and public transportation. 12 people are missing after

floodwaters swept away their vacation home. ministereks finance may be a short timer. peter says he may not have long to make those kinds of declarations. he spoke on bloomberg's are balance this morning -- bloomberg surveillance this morning. willther the government fail or it will find a new coalition. either way, there will be a new finance minister within two months. the single best bet to make on greece. mark: european lenders one greece to come up with more reforms on budget targets, pensions and sales tax rates. the two sides meet again today in brussels. china wants its navy to have a bigger presence are from its coastline. to --all for the nabel maybe two and open seas navy to end-

open seas protection -- he has come up with a new page two whew advertisers. snapshot claims it has 100 million users. , youngernce is bigger and more obsessive than any advertisers can get with television. thanhot is valued at more $15 billion. coming up in the next half hour, johnny ives is promoted to the newly created position of chief design officer. we will look at what the move could mean for the future of apple's products. betty: we will look at the recovery efforts in nepal one month after that devastating earthquake killed more than 8000 people. mark: more insight on the latest comments from janet yellen on when policymakers might start to raise interest rates.

betty: charter communications making some bold moves. reaching a deal to buy time warner cable for $55 billion. mark: this comes weeks after comcast failed in its bid. tomter communications's rutledge addressed those issues earlier today. >> we are a different transaction from what -- we're not vertically integrated. we bring an alternative sor urce of development to this space. if the deal is successful, it would make charter the second-largest cable behind comcast. here to discuss whether this proposed deal could help the company fend off challenges is amy young, an analyst at macquarie group. tell us about this deal. tell us the nuts and bolts of this.

charter finally got what they wanted, which is time warner cable. they didn't have to pay up for it, but they are happy to pay for the scale. this makes them the second-largest cable company in the u.s. and probably the third-largest video provider if you stream directv. betty: what happens to the other cable operators? amy: it is game on with consolidation. we are still early on in terms of consolidation in the industry. there are other companies like cox and cablevision. the market is wondering what happens to the family and how they think about cablevision. betty: maybe they might be interested. mark: with a french cable , that changes in

everything. mark: if i may time warner shareholder today, how do i feel? up 5%.stock is initially, people were assuming the deal would come in at 180. 195 is 10% higher than what a lot of people expected. mark: talk to me about john malone. do you see him doing a lot of stuff? persons ago, he was the people were talking to about cable in this country. 15 years later come he doubles back. amy: he is the vision behind the steel. he is the cable cowboy. he founded the u.s. cable industry. for him to make this return is a big deal. do you think he is going to have to lend some money to the steel? -- to this deal? >> this morning, he did. he paid a pretty big paycheck. betty: did he pay too much?

my: he takes a long-term view. i think it is rare that he pays to much for anything. this is one of those things -- the reason the other deal blew up with comcast was because there were regulatory concerns. should that be taken for granted in this deal as well? >> you cannot take regulatory approval for granted anymore. broadband is so important to the u.s. consumer. this is a very different deal. there are no hard taps -- comcast and time warner cable hit 57% of broadband share. this is somewhere shy of 30%. a very different deal. betty: will charter have to give up any assets? >> it would be surprising. we don't know what kind of conditions there could be on this regulatory approval process. mark: what will this mean for

consumers? >> consumers have a negative view on their cable company. this will be a positive for consumers. charter has done a good job at turning around the video business and providing faster speeds. they will have a similar playbook when they get time warner cable. give me the history of how charter has been able to integrate companies into its fold. are we going to see a pretty seamless transition here? or will there be some hiccups? >> integration is the second biggest risk for these m&a deals. over the last 12-14 months, because of comcast, charter has been very vocal in working together with time warner cable and that management team to tee

up great land communications. i just wanted to ask you about liberty's involvement. john malone has a strategic vision for the industry. he also owns media assets like discovery and lions gate. 12 months and we are back here again with charter buying time warner cable. if you are a shareholder, you are happy today. you went through 12 months of huge uncertainty and a bit of stomach aches, i think. >> definitely. you got a knockout bid from charter. betty: a good pay off. inc. you so much. -- thank you so much. he helped design everything from the ipod to the iphone to the apple watch. ♪

betty: welcome back to the bloomberg market day. i am betty liu, here with mark crumpton. mark: let's go to julie hyman with a look at how the markets are reacting right now. julie: we have clients across the board -- declines across the board. since its worst day november -- the stock is trading

off most of the s&p 500. it's cost advantages against its peers is diminishing. their earnings estimates are too high. the stock is off by almost 7% right now. they're in the information technology index within the s&p 500. downgrade fora some of the oil drillers in particular. shalealysts saying u.s. will continue to erode the scarcity value of oil in the near term. --was rig count recovery that could be bad news for these guys. when of the other groups we're looking at within that is coal. stocks pulling back in a big way because we had a downgrade from credit squeeze think the outlook for that industry is dire. suisse saying these

companies need to see a big change in the industry. mark: julie hyman, thank you so much. betty: let's get a look at the top stories crossing the terminal at this hour. there has been a surprise increase in consumer confidence this month. sentiment rose from a four-month low. bolstered by higher home values and stronger labor market. this may be a sign that business investment could pick up in the second half of the year. for equipment up in april for a second straight month. the total demand for durable a 5% jump in after march, the biggest since last summer. an up or is demanding

down vote on government collection of american phone records. bowing to block reauthorization of surveillance programs unless he gets one -- renewal of the patriot act is stalled in the senate. program stopped. for rightm looking now is to see if the other side will negotiate. i asked for was to amendments and a simple majority vote. i'm just asking for two amendments. i would like to have a vote on ending the bulk collection. i think we can win that vote. betty: some lawmakers worked during the holiday weekend. the program will expire on june 1 unless congress renews it. who worked closely with steve jobs for years gets a promotion. he is apple's chief design officer.

mark: he will lead design efforts but then -- spend more time on future projects. corey joins us from san francisco. what is he going to be doing? >> it's more important what he's not going to be doing. not managing people, not running of the-to-day details design department that is given us everything from the ipod to the ipad to the macbook air. on aunning that program hands-on basis will be a big change for apple. betty: what he's not going to be doing sounds pretty important as well. the impact on apple's products -- what is the impact going to be? y: it will be adjusting to see if the design decisions he made will be different. at of the things about his work

-- it's what steve jobs always said he wanted. the macintosh and the apple computers, they wanted and ease-of-use. the design and the functionality of the computers would be one in the same. the user would not have to think about what they are doing or have to operate the devices -- steve jobs found someone who share those same sensibilities. surely, that is written into the dna of what is apple right now. design guys running the department at apple that have been so core will be challenged to do that same thing. the complexity of the iphone, the ipad and the apple watch is enormous. to make that simple is a great design challenge. been one of the

masters. it will be up to the new guys to manage that process. steve jobs called him his spiritual partner. he has been at the company since 1992 and led the team since 1996. will there be a clash of wills between mr. ive and tim cook? he would tell tim cook, steve would want it this way. cori: make it so. a whole new set of people for tim cook to deal with. they are newer to the operation and did not have the blessing of the spiritual partnership of steve jobs. there is a new era at apple starting july 1. , nepal oneng up month after the devastating earthquake.

special report on how the country is trying to rebuild and recover. ♪

betty: this week marks the one-month anniversary of the devastating earthquake in nepal. the 7.8 magnitude quake killed more than 8000 people and left houses more injured. for many, life is not getting back to normal anytime soon. -- left thousands more injured.

>> [speaking foreign language] >> [speaking foreign language] >> [speaking foreign language]

>> [speaking foreign language] betty: clearly, there is a desperate need for more aid. the u.n. just earlier today saying there needs to be quicker , faster and more aid to nepal and to the victims. mark: talk about grace under

pressure. it seems some help is coming, but as many people around the world have suggested, help is not coming fast enough. there is still an urgent need to help people in nepal. betty: on that note, i will leave you be for the next half hour. mark: coming up, is the u.s. federal reserve doing enough to grease the economy? we will have in-depth analysis when we return. ♪ is there such a thing as a sure thing in business?

some say buy gold. others say buy soybeans. i say, buy comcast business internet. unlike internet providers that slow down when traffic picks up, you get speed you can rely on.

it's a safe bet. like a gold-plated soybean. reliably fast internet starts at $69.95 a month. comcast business. built for business. comcast business. [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 mark: welcome back to the bloomberg market day. let's get you straight to the top stories we are following at this hour.

it is the deal that charter communications had hoped for 15 months ago. charter has agreed to buy time warner cable for $55 billion. last year, time warner cable rejected charters offer and went with comcast. that deal fellpart last month. bloomberg,view with charters ceo called the acquisition a great fit. company a pure play cable company that is committed to the development of the cable business to matter where it goes. expansivecient and and customer facing and customer oriented. fell apa over regulatory issues. charter is not expected to have that kind of trouble. houston, fire crews have conducted hundreds of rescues it since last night. 11 inches of rain has fallen

since yesterday. three people were killed. houston has shut down major freeways and all public transit. 12 people are still missing after their vacation home was swept away by floodwaters. amtrak is taking more safety steps in the wake of that fatal crash near philadelphia. the railroad will install video cameras to record the actions of train engineers. the engineer separate a head injury. he has told investigators he cannot remember what happened. stopkers in oregon want to nestle from opening a water bottling plant there. nestle wants to bottled water along the columbia river. the town would need oregon's department of fish and wildlife to sign up. toy say giving water rights a for-profit company is not in the public interest. , stocks soar in china

with the shanghai composite index making its biggest extent advance since november of 2008. founder of area gives us his insight on the deal between charter and time warner cable and how it could change the cable industry. kkr is bringing out its big guns to attract new clients. taking aimay us is at family offices which manage an estimated $4 trillion in assets. of the u.s.he chair federal reserve blamed we cannot make growth on temporary disruptions. at her speech, she left open the door for a rate hike this year. >> if the economy continues to improve as i expect come i think it will be appropriate at some point this year to take the initial step to raise the andral funds rate target begin the process of normalizing monetary policy. mark: the fed has held rates

near zero since 2008. our next guest says it's time to pull the trigger. the president of the american action forum is here with us in studio. good to see you again. the vice chair said today that policymakers will consider global growth as they begin to raise interest rates and he added, they could increase the more gradually should the world economy falter. what they are saying is we will look at the data and we are not just going to look at some narrow indicators. we know how closely we are intertwined with the rest of the world and people are concerned about the pace of growth in china. there are open questions about wher with the europe is catching up. i think they will watch that because those are important markets for u.s. exporters and we have seen a big hit in the export market. they have consistently overestimated the growth effects, keeping rates near

zero. it has attracted enormous amounts of liquidity into the u.s. benefitst the growth have been relatively small, a --est rise in interest rates it will be beneficial in the long run. mark: let's talk about shakeup. does make a move sooner rather than later, how will the markets react? doug: i think the markets have been overly obsessed. if you look at where the fed is going to be december 31, 2015, the federal funds rate will have a real rate that is negative. i don't think that timing is the issue. it's the long-run prospects for sustainable growth. mark: how do you define sustainable growth? doug: our current trend is estimating 2.1%. that is terrible. we are having a fight about whether this will be 2.5% or 3%.

those are all better in the long run. that is the real focus we have to do better in the long run and get better product to be growth -- productivity growth. mark: how do you filter through all of the data? it seems one month it is positive, one month it is negative. chair yellin and the fed happened next was at in that they will look at the data before they start to make any move. -- have been explicit. doug: you don't want to overreact to any one month's data. if you decide i will run it on the most recent month, you will have a big problem. and seeit cumulatively what is out there. on the inflation front, services inflation is above 2%. -- if worldn low is conditions pick up, we will

start to see the inflation targets the fed wants. we have seen the household sector maintained pc spending up 2.2%. inflation is still below the fed's target of 2%. unemployment is getting near , 5.5% or fed had said so. is that enough to move the fed office mark -- off its mark? doug: absolutely. it would really crossed the markets if they did not move around 2015. most of the chatter is about when. where do you come down on the dual mandate? no other central bank has a dual mandate? they stay focused on inflation and that the policymakers worry about the job side of it.

doug: there is a lot to be said for an inflation mandate. same thing.ing the looking at inflation below their target, keeping monetary policy roughly where -- mark: define the federal reserve where it stands right now. doug: doves. the more hawkish fed would have started moving already. there is nothing about a target funds rate of 75 basis points that would change was going on right now. mark: how is this economy going to regroup? getis this economy going to the sustained momentum that it needs to get off that meager growth rate? doug: it's not going to do it on monetary policy. monetary policy is phenomenal for stopping the fall. we've been doing that for over half a decade. when you to pull some of the other levers. we have $100 billion a year in

new regulatory costs. get serious about that. get serious about the tax code. take on the education problem in a real way. all of those things will produce a better longer growth rate. mark: as ben bernanke used to say, the fed needs a dance partner. the fed these lawmakers to act so that the policies can join in tandem and we can see that sustain momentum. absent any movement by lawmakers on capitol hill, what is the fed to do? doug: the fed has been in that position for years. unemployment rate has come down. the pressure on them to do more when the numbers are improving has come down some. they are doing the right thing

for the economy as a whole. doug, good to see you again. think you so much. still ahead, when it comes to predicting the world's biggest rally, there is only wrong and very wrong. ♪

mark: welcome back to the bloomberg market day. let's get straight to a check of the markets. julie hyman. julie: we had the big selloff going on today. the most we have since the beginning of may. better than estimated economic data. they think the fed will be more aggressive on rates. we have a lot of dealmaking.

one that succeeded was charter communications bid for time warner cable. sending shares of both companies hire. the acquirer also rises. look at the fallout within the cable industry. you take a look here, we are seeing shares of directv off a little bit. we are also watching shares of cablevision, comcast little changed. speculation it might be involved in some sort of deal. today evens to grow though the big deal has not been announced. yannintly sergio mark approached general motors in march about some kind of takeover talks. fiate seeing shares of chrysler pulled back by 1.5% today.

selloff.r on the we have the imap. the big red-p eye chart gives you an indication of which groups are selling off the most in the s&p 500. every single group is down. the larger the slice, the larger the weight in the s&p 500. we have energy, tech, materials come industrials which are down the most today. all of those 10 industry groups are down. it shows you not only the depth of the selloff, but the breath of the selloffs we're seeing today. mark: thank you so much. david reports on the world's biggest rally. first, let's go to francine lacqua in london. francine: european indices are selling for a third day.

it's all about greece. talkshave been little between greece and its creditors. that has spooked investors. with the biggest losers. london down some 1.3%. greek officials plan to hold a conference call today. maybe that will be some soothing words. ais was initially meant to be meeting face-to-face. we've had comments from the federal reserve -- fueling concerns that rates will rise this year. that's having an impact on all of these european markets. doing betterhat is is the low-cost

carrier adding some 5% in today's trading session after reporting an annual earnings jump. it has a bright outlook for the rest of the year. one company we are watching out for -- the rest is gaining. the stock market rally in china has been so good that even -- the estimate back then was about a 28% rally. the index is pushing towards 120%. analysts have been scrambling to catch up. the market is really moving based on the chart. if you dare put out a call right now, over the past 12 months, there was only wrong and very wrong. mark: to the top stories crossing the terminal. waiting for time warner cable's to $85he could get up million if he is terminated

within two years of charter overtimetions taking work able to last year, he was paid more than $20 million. saysiased -- vice-chairman policymakers will consider global growth as they get ready to raise interest rates. stanley fischer said the fed could increase rates more gradually if the world economy falters. raising rates could lead to volatility. he says the fed has done everything it can to prepare markets for what lies ahead. call this a case of california dreaming. a dream house that will cost you a record $500 million. the developer's building the 74,000 square foot home in the bel air neighborhood of los angeles. it will have every eminent you could want, including an imax style theater, a master bedroom and a casino. growth of billionaire wealth

could be tapering off over the next 20 years. a new report from ubs has forecasted that economic growth and tax reforms could slow the pace of wealth creation by engineers. -- entrepreneurs. the survey also found that fortunes were made most in finance and technology. scarlet fu will be joining me in the next hour. you are not surprised by these numbers. scarlet: i'm not. that 70% of the billing errors billionaires are self-made -- they grew this wealth by themselves. the punchline here, that rate of growth mayhap he and is now going downhill. a lot of it is also demographics. the thing will be that puts the break on wealth creation because they will transfer that into the next

generation. >> if it goes the next generation or if it gets just repeated to some of the billionaire's causes. where is this money coming from? >> technology, financial -- look of thesteve schwarzman's world, they're putting their money into programs that carry their names and create scholarships and spread their influence around the world. look at the gates foundation. hour, the founder and ceo of area will share their on the consolidation in the cable tv industry. he has a long list of college men's that he has gone through -- accomplishments that he has gone through.

i talked with him -- i'm hosting a panel he was on. do very wellns in the professional world, but -- fewerthis survey than 19% of asians are managers. fewer than 14% make it to executive. violations are well represented in the professional working world, they're not necessarily making the step up. mark: it will be interesting to hear his comments. thank you so much. see you in a few minutes. coming up, power play. kkr enlisting david patriots in the hunt -- ♪

bringing out its secret weapon to attract new clients. irm isivate equity f courting family offices with a little help from david petraeus. jason kelly joins me now in studio. kkr -- we are talking about aiming at a new pool. jason: this is an area that private equity has long courted but never so seriously. $4 trillion of wealth around the globe, but it's different from where private equity has been a lot of their time before. traditionally, the biggest source is big pension funds, especially here in the u.s., looking for those returns so they can pay their pensioners

the pension that they've earned, they've gone through endowments and they have gone to wealthy families in the past. what we have seen in the past three years, as those other sources get a little tougher, they're aiming squarely at these wealthy families around the world. mark: you just give us a number in the trillions -- these are concentric circles. how big is the pool? jason: $4 trillion is the big number. you are talking about hundreds of billions of dollars throughout the world. sometimes in really not easy to find places. one of the consistent themes we heard from the folks we talked to about this is how different each of these family offices is. if you've met one family office, you've met one family office. the all come at it from a very different perspective. you were talking about the people on both sides of these transactions, steve schwarzman and tech entrepreneurs.

they are investing and they want to be really active investors. mark: what can we glean about the pe industry at large? scarlet: it's in a time of transition as it has been for quite some time. mark: transition doesn't necessarily mean a people? -- upheaval? jason: this is an industry that has only been around for 30 or 40 years. which is not that long in the history of investing. they are looking for these new sources of funds. one of the inches to things, it is relatively new for the big names we've been talking about. we talked to a couple of firms. they just raised a billion-dollar real estate fund -- half of that came from family offices. they've been doing this for a long time, according these guys individually overtime. mark: what does this say about the current state of corporate

pension funds? jason: they are lessening their reliance to some extent. they're asking a lot more questions. one of the big macro themes, a lot of pensions are growing from desk going from defined benefit to defined contributions. the needs and wants of the west pensions are not the same as they were. mark: we will see other firms using this star power to attract families? jason: we have heard that to be the case to what we've heard from blackstone and others, they are courting them similarly. have aing them in and nice dinner and then gather them together and it's not a hard pitch. in tore bringing them their impressive offices, hearing from economists, hearing from dealmakers around the world. that's often how they convince

these guys to become partners with them. there is a level of trust. out: the story is kkr rolls petraeus. it is on bloomberg.com. jason, thank you so much. we appreciate it. coming up, more on charters deal uy time warner cable. ♪

mark: it is 11:00 a.m. in san francisco, 2:00 p.m. in new york. scarlet: this is the bloomberg market day. mark: charter communications hopes its $55 billion bid for

time warner cable will finally seal the deal on a merger that has been years in the making. charter's ceo spoke to bloomberg. scarlet: that doesn't mean motorists -- how the state wants to try out a new safer mile tax. greece'sghing in on never-ending debt negotiations. his take on situational surprising. -- the situation will surprise you. good afternoon from bloomberg world headquarters in new york. i'm mark crumpton with scarlet fu. right now, u.s. stock indexes are at their session lows. the s&p 500 losing 1.2%. the dow industrials off by 231 points.