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.

almost nine stocks are lower. this is a broad retreat. if you follow through and look at how the dollar is doing, a stronger dollar is what we have today on the back of some surprising economic data. all of that means if you look at treasuries, prices are higher. that means a lower yield. that is what you are getting if you look at the tenure and 30 year. -- 10 year and 30 year. it is at 2.14%. red on the screen on this tuesday after traders had that long memorial day holiday weekend to think about what they were going to do when they came back. scarlet: they had some time to digest what janet yellen said and what stanley fischer said as well as money. mark: from the global resources of bloomberg news, it is a deal that cable's john malone had

hoped for months ago. his company has agreed to buy time warner cable for $55 billion. time warner cable rejected charters offer last year and bid.with comcast's that deal fell apart last month. coming up, bloomberg's in-depth interview with thomas rutledge. the other ceo in this proposed merger might be getting a golden parachute from time warner cable's ceo. million ift up to 55 you is terminated within two years. -- he is terminated within two years. stanley fischer says the central bank is playing a waiting game when it comes to interest rates. ratesd if the fed raises to quickly, it would be harder to cut them if the economy slows down. phrase.ve another

our processes are not date determined. they are data determined. wait and see what happens. we don't have to announce we're going to do it in september. if the economy is growing slowly, we'll wait. scarlet: he says putting too much importance on the fed's move is misleading. the central bank will be going the extension or stance to an extremely extension or a stance. s&p housing in the increased 5% in the year in march. will place ay that limited number of properties on the market. san francisco in denver posted the biggest price gains. taking morerak safety steps in the wake of that fatal crash in philadelphia. the railroad will told video cameras to record the actions of train engineers.

massive flooding in houston, texas has shut down all public transit and closed major freeways. more than 10 inches of rain fell this morning in the houston area. into the roads downtown section were closed by raising waters. were closedschools for the day and power outages affected almost 60,000 customers in the area. in texas andan oklahoma killed 11 people during the weekend. nestle wants to bottled water in the small town of cascade along the club you river. -- town would need signoff nine lawmakers asking state officials to scuttle the deal saying it transfers water rights to a for-profit company. mark: taco bell is going natural to appeal to millennials.

by the end of the year, they will remove artificial flavors and colors, trans-fats and high fructose corn syrup from almost all of its menu. there will be some exceptions. beverages and cobranded items. to will not see any changes the readers -- thdoritos locos tacos. coming up in the next half hour, the bloomberg market day. finding -- the cartoons themselves might not be all that funny. had entered the city streets for a sneak peek. scarlet: the rapid rate of wealth creation by billionaire on jupiter's will level off. -- entrepreneurs will level off. mark: charter communications aims to succeed where comcast failed.

shares of time warner cable and charter are both up after today's announcement. tom rutledge spoke with alex sherman regarding what benefits will come from this major merger. itt: it offers -- tom: offers a company. play cable company that is committed to the development of the cable business the matter where it goes -- no matter where it goes. it is efficient and expansive and customer facing and customer oriented. we think that we can hire a lot of people because of our operating model. we think we can provide excellent customer service. as a result of that come actually generate greater customer satisfaction which turns into positive margins because our customers stay with and aser and are happier

a result of that, the actually cost less to serve. , growth quality based oriented company that is investing in new technologies. we have developed an open platform downloadable security system. we have opened user interfaces to integrate traditional cable-tv with over-the-top providers in a seamless presentation. we are in sourcing jobs from overseas and we are investing in plant expansion both in the wi-fi area and in commercial been in a way that has beneficial to not only our employees and customers, but also the country in a sense that it will have a better telecommunications infrastructure as a result of this transaction. >> he spoke with the fcc chairman. did he give you any guidance on what you would need to offer so

that the steel passes through regulatory approval -- this deal passes the regulatory approval? guidancechairman's that comments -- the chairman's comments have been guidance. arepublic conversations consistent with everything i know about him. you should take those and look at us -- we are a very different transaction. we are not vertically integrated. we have a different history. we bring an alternative source of development to this space that might not have existed in the comcast transaction. >> should we expect future asset sales from this deal? tom: we are content with this entire asset. we have no plans to sell any of it. >> how big of a piece is wi-fi

development with this deal? it seems like a concrete public benefit. the combination of wireless and wi-fi. in the long run when you look at who our competitors are and whatever scale is, we are a much smaller company, even today, with this transaction being completed then comcast or verizon or at&t directv. even the two big other cellular companies have as many customers as this company will have. when you look at where competition is moving going forward, the wi-fi we are putting out, the ability to use high-capacity wi-fi and have roaming capabilities across the cable industry on those platforms and ultimately integrating those into cellular

businesses is in our destiny. we don't have a current business plan to get all of that done, but our initial plan is to build out wi-fi not only in the home, but in the public spaces where people work and play and to make our service available in a lot more places. of 2014, time warner cable throughout a price of $160 a share. in hindsight, do you wish you had just bought time warner cable for $160 a share in january of 2014? tom: we did not have the ability than to do the cash component of that request. , time warner has realized that our business plan actually works and we have to timed that plan warner in this process and they have seen how we'd succeeded. time warner is more valuable today because they have been

successful during this process. rod and his team have continued to keep their eye on the ball. we have grown our business. -- it's atoday different circumstance today. their behavior and our behavior is different and i'm really pleased with how it came out . scarlet: we have a lot more coming up on the bloomberg market day. are you a fan of the new yorker cartoons? mark: by and large, yes. you do chuckle when you read them. ♪

mark: welcome back to the bloomberg market day. scarlet: let's go straight to julie hyman with a look at the markets right now. we are down, down, down. julie: we are. we are not that much off the highs. biggest selloff in about five weeks. all of this sparked by the commentary from fed officials in addition to better than estimated data this morning. that may be means the fed will raise rates sometime this year. i wanted to take a look at the breath we are seeing in the dow right now. it, at the components of all 30 of the dow stocks are lower at this hour. an enormous amount of bread on your screen. apple is the worst performer. -- amount of red on your screen.

i want to look at a longer-term chart of the doubt. dow. the look at what we have seen -- even though it is a big drop today, we are less than 2% off the record high for the dow jones industrial average. take a look at the vicks today, the volatility index coming measure of volatility we are saying during this session. it gives you an idea of unease that traders are feeling. the biggest gain of 2015 at this point. outside of the stock market today, notable movement in the currency market. the dollar trading at the highest versus the yen since 2007. the dx why having its a guest day since july of 2013 -- a

guest day since july of 2013. scarlet: we have some breaking news. the bid for deferred action on immigration. the president's plan to make overhauling immigration policy a second term victory was told a serious blow today. federal judges ruled the effort must remain on hold while 26 states sued to overturn that. setback definitely a for the present following his failure to get the fast-track authority on the first go. he has put a lot of eggs in this one basket. publicans have pushed back saying the unilateral language was not productive. the executive order would have allowed 5 million

undocumented immigrants to remain in the country. according to the u.s. court of appeals, that executive order will have to be delayed until that lawsuit is resolved. contentious.been this will be something the republican presidential nominees will be discussing and it will give them an extra kick on the campaign trail. hillary clinton and bernie sanders will also be discussing it as well. not sure where she stands on that. mark: we will continue to follow that story. stay with bloomberg television and on bloomberg.com. let's take a look at the other top stories crossing the terminal. there has been a surprise increase in consumer confidence this month. the index of sentiment rose from

a four-month low. confidence has been increased by higher home values and stronger labor market and near record stock practice -- record stock prices. chat says he has come up with a new pitch to woo advertisers. they claim to have 100 million users. bigger, younger and more obsessive than anything advertisers could get with television. mr. spiegel is just 24. for a new page -- twitter has been in talks to buy the company for more than a billion dollars. they say the talks are currently stalled. flip board is more than 300 million users and a ceo who was a possible replacement for twitter's dick costolo.

americans worst are flocking to cuba. visitors up 36% since january. -- american tourists are flocking to cuba. those are the top stories we are following from bloomberg news at this hour. scarlet: we have some new findings on the beloved new yorker cartoons. the characters are overwhelmingly white men. the survey found out that more -- 71% werearacters male, 95% were white. female cartoonists are more likely to draw female characters. the fact that women and minorities are underrepresented here is pretty adjusting given

that the new yorker is a fairly well-known liberal magazine in the third most diverse city in the united states. mark: were u.s. shocked as i was? scarlet: i was surprised. this is a semi-satirical journal. the study is a bit tongue-in-cheek, but it is depressing. women filled the role of parent or spouse or assistant when they can up in these parties. they were not portrayed as scientists or police officers or coaches. you could say, what is the big deal here? -- the adultsews are just as impressionable as kids or anyone else. mark: there is a subtlety in it that is somewhat alarming. semi-satirical, but if you look at the characters, it's not something that ever crossed my

mind. when you see these stats and step back and take a look -- i don't know. scarlet: we did find today's cartoon. it doesn't feature any man or anyone white. it features three fish. very appropriate given today's news. ,ark: they may not be haunted but they're still ghosts of london's underground. the stations could soon be getting a new lease on life. ♪

scarlet: beneath the streets of

london, there are dozens of underground stations that are no longer in use. these stations may have found a new lease on life. transport from london is looking at repurposing these ghost stations bloomberg went underground to find out more. >> we are underneath the streets of -- a station that has not been used by any passengers since 1932. up in 1907. opened it was never particularly popular as a station. it was closed in 1932. during the war, this is where the executive committee was based. where in thetion ,arly days before the war rooms churchill and the cabinet met.

this is a unique space in london. great location, great history. we need to bring this space back into use. competitionout the for people to come to us with ideas. we have six or seven stations we could bring back into use in some form. we want to apply those learnings to some of the rest. this is not about making money. we have many more valuable assets. the greatout bringing history, great location back into use. much more focused on the quality of bids and the value that we expect from them. we expect to make some money, but probably five or 10 years, it's long-term payback.

>> you could have retail. you can have an art gallery. or a concert venue. if it could work anywhere, it could work here. scarlet: the used them as sets for movies. mark: too much history not to rehab that. scarlet: you are off now. you will go home and watch the rangers game. fingers crossed. we will have much more. ♪

scarlet: take a look at how the markets are trading right now. after a three day weekend in

which investors had a chance to digest janet yellen's comments, you have good news being taken and bad news. stanley fisher indicated the central bank will be data dependent and stocks are now selling off. the s&p 500 posting its biggest decline in three weeks, off by 1.2%. in the meantime, let's get straight to the stories making news at this hour. the vice-chairman of the fed's has policymakers will consider global growth as they get ready to raise interest rates. says the fed could increase rates more gradually if the world economy falters. he acknowledged that raising rates could lead to volatility. he says the fed has done everything they can to prepare markets. willal motors said it spend $1.2 billion to upgrade the indiana factory. an investment will go toward

expanded bodyshop. workerst employs 3100 last month, the automaker plans to invest $5.4 billion. charterhat communications had hoped for 15 months ago. charter has agreed to buy time warner cable for $55 billion. last year, they rejected the offer and instead went with comcast for $45 billion. that deal fell apart last month. , the founder of aereo said this deal is sure to get scrutiny from regulators. i don't think it will be a clean regulatory process. there will be concessions. there is a move toward wireless and wi-fi. we are headed back towards a duopoly.

scarlet: comcast deal fell apart over regulatory issues. -- denverirst for beat maryland 10-5. the first lacrosse title for the school. those are your top stories. coming up, the former cbo greece'ss take on how finance handling that country's situation. taco bell and pizza hut are getting healthier. how this plan will improve business and attract new customers. we also hear from chet kanojia on his newest tech endeavor. would you rather pay for the miles you drive or the gas that you buy? organ is the first estate in the country to test a paper mile

system to replace the gas tax. able to sign-up for the program which will track the miles you drive on organ rose and then charge them accordingly. -- oregon roads. tax is not keeping up with highly fuel-efficient cars and electric vehicles. we are looking at different ways to try and keep up with the maintenance. force over the past 10 years look at 28 of the options and came up with the idea, why not paid fairly for all the miles you drive rather than paying for the amount of gas that you buy? why not just raise the gasoline tax and actually penalize those people who have not yet switched over to more fuel-efficient cars? >> that actually exacerbates this idea of unfairness. that everybody who was driving

on to share in the cost of maintaining the roads. standardse federal are rising. those models will disappear off the roads. is a teste looking at drive. we want 5000 oregonians to test out this concept and tell us what they think. does this feel fair, feel easy? is it even fun? we have private sector partners -- we wante devices this to be an adventure for people. and also help us to find out if this is the right system. all of this information will be put together and given to the oregon legislature and they will ultimately make the decision. for those longer trips, you may want to stick with traveling by air. one airline has been focusing on

broadening its customer appeal. it is paying off. they just reported a 56% jump in full-year earnings, sending its shares higher today. we were always nice by offering the low fares. our focus on improving the service, moving to primary airports is paying off in droves. >> it seems like if somebody wants a cheap ticket, do they really care? >> increasingly, they do. the last 12 months, we've moved the business plus service, family extras.

the move into primary airports means more and more people are abandoning the high fair carriers. >> why hasn't the model worked here in america? what haven't we seen a carrier duplicate the success you've had in europe? >> southwest has been around for 40 years. they are a higher fair experience. we carried 90 million passengers last year and the average fare was $45. we stayed true to the southwest low-fare, but increasingly being much better customer experience. >> under what circumstances do you come to america? >> when we run out of growth in europe. this year, we've announced orders for 400 new boeing aircraft. europe,ook around

there's lots of activities to grow. we would not be adjusted in coming to the states until we've topped out in europe. a sluggish european economy doesn't mean -- >> it's fantastic for our business. more business people want to go down to lower fares. >> legacy carriers have more delays than you do? why? theyey are inefficient, don't turn around the planes quickly and they are operating at the end couple kidded airports. -- complicated airports. 90% of our flights last year arrived on time. we are the best in terms of punctuality in europe as well as being the lowest fare. >> you've talked about getting into the long-haul business. what will it take? >> a big break in the long haul order cycle. boeing and airbus historically

come every five years would have -- you have the three gulf carriers. boeing and airbus havelong-haul aircraft deliveries for the next four or five years. -- have no long-haul aircraft deliveries. >> what do you make of the dispute between the gulf carriers and u.s. carriers? >> i'm on the side of the consumer. you support both carriers. they are the same as the european legacy -- we don't want to compete with the gulf carriers as they are subsidized by the government. the american carriers have been predicted by their government years. we should encourage more expansion and more competition. so that american consumers and international carriers get better deals. ahead, antill

in-depth look at wealth. how billionaires are making their money and why their incredible run may soon be out of steam. ♪

scarlet: welcome back to the bloomberg market day. we have namin 90 minutes left. as mentioned, we are looking at selloffs in all 10 industry

groups. we have energy and technology pacing the decline, each off by 1.7%. telecom is one of the better performing in that it's only off by .75%. texas revisiting a one-month low, getting pressured by the stronger u.s. dollar today. oil has made a fairly big recovery from its six-year low. it has since stalled on speculation that rising prices will lead to more output from shale. we have an opec meeting at the end of next week. no change is expected from saudi arabia making clear that they are interested in preserving market share. now to a look at the top stories

crossing the terminal at this hour. a setback for the obama administration on immigration. makedent obama's bid to overhauling immigration policy a second term victory dealt a serious blow today. federal judges ruled that the effort must remain on hold while 26 states sued to overturn it. must beutive order delayed until the lawsuit is results. will not reopen this summer according to the property's new owner who also says it is doubtful any of the non-gambling attractions can reopen my labor day. the venue's owner stuck in a literal power struggle. company,n a utility acr energy. the equipment will be damaged. -- trial will go forward behind closed doors.

he has been imprisoned for 10 months. requested aon post be set to send an editor to -- a visa torial send an editor to monitor the trial. on brother is going to be bloomberg television tonight. be sure to tune into that. this may be a sign that business investment might pick up in the second half of the year. the total demand for durable goods fell after a 5% jump in march, the biggest since last summer. this is in a tory asleep i'll tell number as well. one of the biggest homes ever built in the u.s. could be years for $500 million. amenity you every could want, including an imax

style theater, 5000 square-foot master bedroom and a casino. the most ever paid for a home, $220 million. minister wrotece an op-ed called austerity is the only deal breaker. he says greece is willing to embrace reforms but the government cannot and will not accept a cure worse than the disease. it's not just the debt he should worry about. you should also be concerned over the fate of his own job. is most clearhat about greece, either the government will fail or it will find a new coalition. your way, there will be new finance minister within two months. the single best bet to make on greece. it is hard to translate from academia to government. some people do it well and other people don't.

he's in a very trying situation. bloomberg surveillance a piece about rising wage inequality. >> three decades of rising inequality. the question is why and what we can do about it. most of the rhetoric is about ceo versus average pay. evidence suggests most of the rising inequality is because pay on apple's divergent from pay at mcdonald's. scarlet: you can hear more of the conversation at bloomberg.com. billionaires may soon be jumping the shark. concluded the rapid rate of wealth will level off over the next two decades. slower economic growth in emerging markets and the growing

sheriff billionaires heading to retirement. -- share of billionaires heading to retirement. 70% ourselves made. are self-made. there is a lot of good insight in this report that we did not know about before. some billionaires like to to their own horn, but many like to keep a low profile. billionaires have family-owned companies that have not gone public yet or they own real estate under llcs. we don't know who they are all or how much they have. self-made.aires were these are the people who made their own wealth as opportunities -- entrepreneurs. scarlet: we hear about these

guys who drop out of school and start their own company. the report debunked that myth. 80% of self-made billionaires do have a college degree. what is the source of wealth? we talked about how finance and technology tends to have the highest profile billionaires. >> in the u.s., finance is still driving the most self-made billionaires with technology entrepreneurs rising up the ranks behind in second place. if you shift over to asia, it's consumer products and real estate. , therego back to europe is more old money come also in consumer product companies. luxury goods, beverage companies , the old names we have heard for many generations. scarlet: a lot of the billionaires we fixate on our young ones, mark zuckerberg and

jack markell. .- jack ma the baby boomer generation is so well represented. that was a surprise to me. thirds are over age 60 we are about to see one of the biggest transfers of wealth that the world has ever seen. dollars as these billionaires decide to sell their company or transfer some of it to their kids. we are expecting a huge philanthropic boom as well. scarlet: people like warren buffett have sworn that they will give away their money. i would imagine that universities will be looking for a big payday. peggy: absolutely. the banks themselves are angling to try to hold onto these family customers so that the young millennials don't go other places when they want advice.

scarlet: the banks are angling for this business, which is why ubs would undertake this survey to begin with. what do you think they came out with in terms of actual ideas? peggy: they are keyed into the fact that a lot of millennial investors want to have some type of social cause connected to their investment. has been a rise of attention at the banks in terms of impact investing and impact products to take hold of the millennials and make sure they don't walk somewhere else. scarlet: they also have data at their disposal to measure the progress. peggy: exactly. that is a shift in philanthropy overall. coming up, talk about getting healthier. they are taking out all artificial ingredients from the menu. aco bell getting healthier.

♪

scarlet: yum! brands's taco bell and pizza hut announced they will remove artificial greens from their menus. -- artificial ingredient. betty liu sat down with craig who spoke with the taco bell ceo about these changes. there's a lot of artificial ingredients. they are looking at the items, totally reformulating recipes. >> what is going to have to happen to do this? >> they would not say if they didn't think they could do it. a lot of the work has gone in over the last year. they're looking at the different

ingredients -- it still has to taste good. it still has to be affordable. they say this will not leads to a price hike. >> can they promised that? they said there is inflation, prices go up from time to time, but because of these steps, prices will not go up because we are taking these steps. >> what about the taste? >> they say it will be the same. the same lovable, credible taco bell food. accessible, credible -- they have done pretty well. they say they can do it and keep the taste the same. >> what is going to stay the same? >> they are not touching beverages. they are not touching cobranded products. we said what about the doritos taco? >> that is controlled by pepsi. >> exactly.

it is just the taco bell food, the tacos, the burritos. >> pizza hut is going to do the same thing. what about the other brands? >> they have not said anything about kfc. they are looking at kfc now. the kernel is back. el's back. that would be the next shoe to drop. >> the secret recipe. it is fairly old. >> does yum! brands have a millennial problem? you hear about mcdonald's with the millennial problem. >> not nearly as much. pp.o bell has a great a they have been a leader on that. the brand appeals to millennials . when kids get their first car,

they go to taco bell. it doesn't seem like they have had a millennial problem but they must feel as though this is keeping pace with the rest of the industry. >> what about the cost to taco bell? did they say how much this conversion was going to cost? >> they did not give a specific number. there were very emphatic that this would not lead to a hike in prices. they must feel like the supply is there. ahead -- the fight among broadcasters to keep up with the competition. you will hear what the founder of aereo has to say about charter's bid for time warner cable. ♪

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betty: it is 3:00 p.m. in new york.

anchor: this is the bloomberg market day. traders save the federal reserve is being too optimistic when it comes to the u.s. economy. we will talk to one portfolio manager. anchor: a washington post reporter on trial in iran for espionage. we hear from his brother. scarlet: good afternoon. i'm scarlet fu here with joe weisenthal. we are pretty much at our session lows. joe: it is a fairly ugly day. no bounce at all and if you a