-- i'm scarlet fu. i'm joined once again by bloomberg markets managing editor joe weisenthal. in the industry groups s&p 500 finishing down. do not the only member of the dow industrials -- dupont the only member of the dow industrials that did not fall. joe: still counts. scarlet: the s&p 500 and the nasdaq seeing their worst day since may 5 and at its session low, the dow lost 242 points. so, that was certainly be slow down leading into the three-day weekend and now that we have come back for memorial day everyone has responded by selling off stocks in a comes on heels of data that was

fairly encouraging. durable goods, consumer confidence -- joe: the story has been dated disappointment. everything with the exception of the labor data was bad. then stocks were raised to record highs. there is solid on may factoring, confidence, capital goods orders. would news ise bad news. maybe this brings us back to the discussion of the fed rate hike and something like that. were still very close to a record high. today is not dramatic. it's not a huge a lot, but it was a different trade-off. scarlet: it was a different conviction. one thing that was notable -- the move in the dollar. of course, that was resuming

that dollar rally. it was suggesting what the federal reserve has done and said. it is likely this year if the --nomy continues to improve she actually said, i think it will be appropriate at some point to take the initial step to raise the federal funds rate target and begin normalizing monetary policy. look at that term "normalizing." and the dollar's strength today combined with the selloff helps overall -- that the market alone with those comments is more concerned about a rate hike than it was before. we should not overstate -- i think the narrative is it will not shift dramatically. scarlet: stanley fischer said revision will be

data dependent. he says of the economy is doing better he will adjust and it it is not, they will adjust. joe: they have been saying that for a while and they want to keep reiterating it. certainly data helps lift the dollar, but there was also concern in europe as well. supposedreditors were to hold talks and what i have seen and trader notes -- they call that off without giving in and a nation and if we visit that idea that greece is coming to some kind of -- joe: it is known there is good to be a big imf payment coming up and it will be very difficult for greece to make that payment, and so something has to give soon. to give something has soon. i want to interrupt because cory johnson has the earnings release. what do you say? just crossedease

with headlines. they are showing fantastic topline growth. $215 million for revenue for the quarter. compare that to a year ago with $160 million for revenue. fantastic growth. earnings per share -- the company lost two cents per share and adjusted. they had something in terms of stock compensation, the adjustment probably matters more than the gap number. that is a lot better than the analyst's on wall street. i know it is a shocker. they lost only two cents a share, that's the adjusted non-cap earnings-per-share number. it's a fair look at how this business works. the business is growing fantastically, getting closer and closer to profitability and marketse, no area in the hotter than sovereign service, and workday is particularly focused on human resource. per share, adjusted at

two cents, compared to the analysts who got it wrong. this company is doing well. you, cory johnson. meanwhile, the m&a barrage continues with today's time warner cable deal with a whopping $55 billion, $199 per share. big share and charter can -- chartered medication. let's take a quick look. scarlet: i know you were going right there. that's interesting, too, because time warner had seen some ball the movements after the comcast deal did not go through. you wonder if this is a burst of activity before the air goes out of the bubble. i always think of 2007. there's all of this dealmaking and investors reaching after high after high after high. joe: i think it's one of these m&a,s where when you see it seems like there are deals all the time and that can signal

the bullishness in the market, reaching higher levels. but i think it is also dangerous to draw lines between this and other historical times. 2007, we saw the deteriorating economy -- scarlet: totally different. joe: insane speculation. it was very different. but you kind of want to look for these things as an analyst, to see when the enthusiasm is getting to euphoric. i think about enthusiasm getting euphoric, i only think of one place now. they are following the money into the stock market. they have nowhere else to go. story ischinese incredible. lester, thee

chinese markets have been on a phenomenal ride. and not only that, it is getting faster and faster. the last to six days. chocolate -- the shins a stock exchange, 20 stocks yesterday were up. scarlet: there's a great story on the bloomberg terminal where if you were trying to make any kind of deal on the chinese stock market you are wrong or more wrong. joe: even the most bullish analysts and china have been massively incorrect on the downside because of how much it has gone up. scarlet: we now have breaking earnings from tivo and cory johnson of those numbers. cory? yes, that is significantly faster, big growth in subsections as well, 27%. but profits went down on a year-over-year basis because of gross costs and worse

margins. higher costs across the board. even.com adjusted $29 million, and again, profit well in line with guidance less than a year ago, profits of a net income of $7.9 million. but again, adding a lot of subscribers for tivo, also seeing 7% year-over-year sales growth, analysts trading up quite a bit. all right, cory johnson. thank you for that first read on tivo. we're looking at the earnings scorecards. how did we do? scarlet: earnings-per-share, barely there. i think we can close the book on this one. joe: it's interesting. there is a talk before this

court about in earnings recession. a lot of people thought that earnings would be negative because of energy -- scarlet: more negative -- joe: on a revenue basis. scarlet: a lot of people see that as a truer reflection of what is going on in the economy. joe: they always find a way to ring more profits out of the revenue. scarlet: and the buyback some companies -- joe: true. scarlet: companies continue to pile money into their own shares. and they continue to borrow money to buy back their own shares. you have to wonder how long that will be sustained, especially as the fed starts to raise rates. scarlet: do you think there will be a huge rush to sell that while they can? they could start selling debt and euros, currencies? joe: it does seem like that and i think we will continue to see bond offerings in europe.

bond offerings in japan, places low, i thinkre companies will be taking advantage of this for a while. do have the you decline in u.s. cut muddies -- muddies. they have recovered from the lows in march, but even then, they have kind of topped out. they are stuck at this $59 a barrel level. oil story this year is a great example of how the story always like the price. crash andthere is the oil, people are rushing to slash their forecast. some people go to $30, maybe even $20, and then oil stabilizes and bounces back and suddenly you saw after the run up all of these upgrades of energy stocks. and now right after oil has bounced back, we are starting to see it fade. it's very amusing to watch the heard follow the price -- watch

the herd follow the price on this one. has madei know opec really clear its position as pressured by saudi arabia, but still the oil markets tracked very carefully. joe: exactly. to will they continue squeeze producers is the question. scarlet: joe weisenthal. think you for keeping me company. we have much more coming up. we will speak with a leading investor. we will be back. ♪

scarlet: welcome back to the

bloomberg market day. here are the top stories. a deal that will reshape the cable television industry. bid to buy time warner cable for $55 billion in cash and stock. it represents a 14% premium. the company made a bid for time warner cable last year. that was rejected and time warner cable accepted a bid from comcast. that deal, as you know, fell apart last month. verizon'ss about purchase of aol. aol held talks with three other parties leading into that deal. aol was also contacted by a private equity firm in march of this year. these new details are according filing out this afternoon. the vice chairman of the federal reserve's is that the policy asers will consider data

they prepare to raise interest rates. stanley fischer acknowledged raising rates could lead to volatility. he says the fed has done everything it can to prepare markets for what lies ahead. home prices in 20 big cities rose faster than it did in the last year. indexse-shiller housing rose 5% faster than in march. that represents a limited number of properties on the market. 30 people are missing in texas after floodwaters raged in most of the state. in houston, authorities recovered three more bodies from the water, bringing the total number of people killed to 11. firefighters carried out more than 500 rescues and 2500 vehicles were abandon on the street. and it is a graduation of a different kind. says reports that universities are shelling out massive amounts to get executive leaders.

that means the president getting $30.6 million to and yale's former president richard levin getting a bonus when he retired. make upy league leaders to $1 million a year. those are our top stories. we have breaking news. i want to bring in julie hyman. what do you have? apparently the irs -- online have used the irs system to steal information about taxpayers. this is according to a commission of official speaking on a conference call with reporters. obviously this encompassed the tax filing season. to 104,000ccess returns from taxpayers. that includes the tax returns and other tax information on file with the irs, and this was

some kind of service called gett ranscript. they had the required information of the taxpayer. it sounds like they may have had information already and used it to gain more access. we will bring you more as we get more headlines from that call. scarlet: thanks so much, julie hyman. and the $55 billion deal for time warner cable, certainly the headline of the day. here to discuss, a partner in -- and senior portfolio manager at skye bridge. i guess it was not that big a surprise charter would make a bid for time warner cable. made anbecause they offer before. guest: the price it sure was nice. they stuck through the tough times in late september and october.

doj and thehen the sec deep-sixed to be comcast acquisition there were fears that time warner would selloff significantly, but it improved its operating performance. and of course, also of interest is what caused the higher bid. if you bet on it, you are very, very happy. if not, you're not us enthusiastic. so, what happens with comcast? they have the firepower in they want to do more. t-mobile, cablevision. you saw there stock rally just on the news that other consolidation was taking place. if you held a gun to most people's heads, they would say sprint, t-mobile. scarlet: wouldn't that bring in problems with the fcc again and regulators? guest: the issue with time

comcast was the massive overlap of the wireless industry. when you look at a matchup of wireless internet and hartline -- hardline cable internet, there's very overlap between t-mobile, say, and comcast. that is why people think it is more logical place to go. you avoid fcc issues and doj issues, but it still makes good business sense. and back to your previous question -- most of these deals are creative, which is a good sign it well. have much morel with troy from sky bridge p keep it right here on the bloomberg market day. ♪

scarlet: we've got breaking news. more m&a. let's go to julie hyman at the breaking news desk. buy applegateto

farms forest 75 million dollars. this will add to shares in 2015 and at eight cents per share to its profit in fiscal 2016. it will be neutral to some extent, it says, this year. it will add to its growth target. they are perhaps it known for spam buying a company best known for organic and natural products. "natural products" in some cases. 100 employees. it is based primarily in bridgewater, new jersey. i did not realize it was a local company. it is known for its lunch meats and it's hot dogs that are either organic or natural. applegate, privately held. hormel shares are trading higher, as you can see from the 5.5%, but scarlet, this is part of a trend we are seeing with

large established food or personal care companies snapping up these smaller, natural, either natural personal care or natural foods companies, because they want that growth. many of these larger food companies, particularly the packaged food companies, their growth is stagnant and they want to acquire where the growth is. scarlet: julie hyman with the very latest on hormel foods buying applegate. thank you very much. and troy gayeski, my guest right the m&a --oking at $97.7 billion of deals in the u.s. are we going to see m&a in europe take off this year? troy: our view is you will see it take off. the u.s. went through a long hated us in deal activity. get a crisis. just as we started to get going, the euro crisis started to flareup.

started to see it come back. that is the point with her mouth. many a creed of transactions building up, building up, building up. -- that is the point with her mel. -- that is the point with hormel. and then you have the tax law advantages as well. so, it made a lot of sense for the u.s. reichel to come back and europe has been lagging. europe typically lags. they have the euro zone crisis, which is far more acute. what you have seen this year is better growthf earningsons, better expectations, qe, and better market performance. we see management teams start to stick their heads out of the hand and say, this is a deal where you are rewarded or punished. it looks like the chinese are ucent, nokia,-- l

and the french finance minister basically blessed that deal. that's an important transformation. scarlet: an important point to make it. what about the euro and the exchange rate? in european m&a, this transnational m&a, we are to see european companies as targets as opposed to acquire or's? troy: both. you will see intro europe consolidation. it makes them a very rich target, again, back to fedex. you can't ignore the regulatory kind of support that is taking place. managers have been focused on a tiny bank consolidation for 10 years. it's a very fragmented banking system. they have recently will asked those roles and allowed for consolidation to spur economic growth through non-fractured banking. so, whether you are looking at

--oss the board acquisitions the trend is for hire deal flow and it will be important for managers to focus on that space to make a 6%, 10% return. right -- scarlet: right, right. troy: not depending on whether greece has a bad day. scarlet: troy gayeski. for me for the bloomberg market day. troy, are you a rangers fan? troy: not a hockey fan. god.et: oh, my good luck to the rangers, everyone. have a good day. ♪

named jony ive its chief design office. but what does that mean? and what you need to know about the two people who will fill his shoes. i'm emily chang in this is bloomberg west. charter makes a big move to become the number two cable provider in the u.s., but is the $55 billion deal really about who controls the internet? to turnpchat's plan itself into a real business. cofounder evan spiegel is telling bloomberg. and go pro gets more competition.