ever. broadcom agreed to buy $437 billion. we will look at what is driving that big deal. pimm: dick fuld has been rarely seen for seven years. the former lehman brothers chief executive has been blamed for the investment bank's collapse. fuld is speaking today and we have details. stephanie: what is behind the glut of new tv shows this year? there are hundreds of them and not enough time or viewers to watch. pimm: good afternoon. i am pimm fox. stephanie: i am stephanie ruhle. we're going to get you started on a look at the markets.

stocks are falling from your records after greece said it was nearing a deal with creditors. oil and gold. oil is officially feeling losses after a government report showing u.s. crude stockpile decline for a fourth straight week. pimm: let's take a look at the fixed income market. the 10 year at 214. 2.89%.ld at the 30 year, prices being bid higher. a look at the currencies and see how the dollar is showing strength against the euro. 1.09. bit strength -- big strength against the japanese yen. some of the top stories crossing the terminal at this hour. there has never been a bigger deal in the technology industry.

avago technologies will brought -- will by broadcom for cash and stock. the takeover continues the industry trend of consolidation because the price of increasing production. avago is based in singapore and was once part of hewlett-packard. broadcom is the biggest maker of wi-fi chips. it appears that the head of soccer's governing body will survive his organization's corruption scandal. fifa president sepp blatter is foror reinvention -- reelection. the executive spoke moments ago in zurich switzerland and said the latest events bring humiliation on the game of soccer. influence. ringing shame and tribulation on

football and demand action and change from us all. we cannot allow the reputation befoot all and fifa to dragged through the mud any longer. pimm: the head of the european soccer organization is calling on blatter to quit, so is prime minister david cameron. there was a big jump in american signing contracts to buy previously owned homes. the index of pending home sales rose 3.4% in april, the highest level in nine years. the increase was almost four times the median forecast of economists surveyed by bloomberg. a stronger employment picture is helping to support the housing market. stephanie: in new york city, yft are pushing back against regulators. the changes would address

dress the what a availability of wheelchair accessible cars and restrictions on picking up passengers at airports. the companies contend the regulations would discourage innovation. i'm going to agree with the companies. technologykes the out of the technology. stephanie: it takes what is hasial, the reason why uber the valuation it does because it has been a game changer. we are talking about this kind of business and seeing a secular change. people are not keeping cars in new york city anymore. pimm: because you can hire a car. stephanie: if they take a long trip, they are taking it hurts. rtz. this makes no sense to me. a top apple executive appears to saidst cars, just as tim -- just as pimm said, as the

next frontier. jeff williams said "the car is the opel -- the ultimate mobile device, isn't it? google has been pushing its team to produce the car by 2020 although the program could still be halted. latestpataki is the republican to enter the race for the white house. in a video on youtube, he said he will try for the nomination. he formally announced his candidacy and exeter, new hampshire about an hour ago. he follows rick santorum into the race. santorum announced his candidacy yesterday. coming up in the next half hour, more to cover. we are going to be looking at the controversy over the expected reelection of fifa president sepp blatter in the wake of the corruption scandal. pimm: we'll find out why jay-z's

purchase of a streaming service, tidal, is not going as planned. stephanie: dick fuld is making a rare public speech today, seven years after many blamed him for the collapse of the investment bank. we will have the latest on dick fuld's comeback. pimm: we will just call it a speech and see what happens. stephanie: just because he shows a space in public does not make a comeback. pimm: let's talk about the big headline of the morning. a record in the industry. avago technologies will acquire broadcom. stephanie: that price breaks down to $17 billion in cash, $20 billion in stock and that is a 16% increase -- premium on broadcom shares. proof of the pressure avago feels to manage production and design costs. and on him real

anam join us now. >> two high company -- high-quality companies together. it is much needed. the companies gain scale as a result of the merger. they have a better consolidated customer base to go after supplies and reduced cost. products.aligning from a synergy perspective and a customer base predict -- perspective, it makes a lot of sense. they have some money on hand and they will borrow $9 billion more. a lot of companies that are doing these big deals now, it is not that they see the end of easy money coming soon but they know that you cannot always borrow at this low of a rate. it makes sense to do the deal now. we know one of the concerns

avago has is if intel will come along and top this bid. our thought is intel is more focused on all terra. the question is, do you focus on altera or try to top this bid? stephanie: do you think they would top this? anand: they have a lot of parallel products. intel supposedly has made an opera -- made an offer that was turned down. they get into the broadcom, they will be fording -- thwarting avago's bid. avago, broadcom makes more sense. pimm: what is broadcom produce other than those wi-fi chips? anand: they make a lot of stuff.

controllerslot of for servers and storage equipment that goes in the data center. pimm: telling the server where to put certain bit because you want to be able to call them at a different speed or case. some things to be recalled instantly. anand: they also make chips for .able modems, chip what they don't make anymore is cellular modem chips, which they divested. if you look at the smart phone, avago produces radiofrequency chips. broadcom produces wi-fi chips. together, you have more content per phone from the combined entity. you go to the data center. they produced some networking chips. together, the two combination has a better presence in the data center.

stephanie: what could stand in the way of this deal? jeff: intel coming along as possible. we have to figure up the regulatory issues. it does not seem like there are -- there is anything that is going to force them to divest assets. they are not becoming the number one or number two player. i think they are number six. stephanie: a deal that big and they are still number six. this produces a company bigger than texas in -- bigger than texas instruments. one thing that might come up is china, the chinese regulatory authority, our analyst has done some work. the chant -- the antitrust regulators and authorities have been looking at such deals more closely.

the u.s. may not be a big issue that china might be a sticky wicket. pimm: if you were not in investor in broadcom yesterday, you're crying in your beer. what are other companies? stephanie: i have not heard that saying a long time. jeff: there are a lot between one billion and 10 billion smaller companies that will either merge together or be snapped up. company.rbella is a another company is sky works. the newly formed combination of mb which is called corbel now. stephanie: is it too late to get into semiconductors? anand: dm and a wave we are seeing has been long-awaited -- &a field -- way we are

seeing is not -- is long-awaited . this is one space with a strong are getting stronger and the top heaviness of the market among the top markets. pimm: this is the biggest deal in the tech space. we've seen bigger deals in health care. jeff: the tech space is not growing as fast. it is not double digit growth year after year. people are starting to buy the growth and cut out costs. that is starting to play in tech space. anand: $750 million is the expected synergies cost. that is substantial. relative to the print number, it is substantial. pimm: thank you gentlemen. ahead, fifatill president sepp blatter is poised

to win another term. despite calls for him to design following those corruption arrest. -- to resign following those corruption arrests. ♪

pimm: welcome back. i'm pimm fox here with stephanie ruhle. pardon -- beg your pardon. stephanie: bloomberg's own julie

hyman. what are you looking at? julie: china. we have a drop. i'm picking about china. i've had my head -- we have a big drop overnight. the biggest drop we have seen since the end of january. if we have brokers tighten their margin lending requirements for people to make investments in that market. he saw the shanghai composite down 6.5%. take a look inside my terminal for the longer-term chart of the cheyenne composite because it has been up and up, nearly parabolic before this latest decline we have seen. at high that we saw for the shanghai composite was the highest we've seen in years. up 125%. including the drop. there is debate over the .timulus we have in china if you look at the implications

for the u.s. markets, we are seeingverall markets fall. we are seeing some of the etf that trade, these are the hong kong listed trades. the etf's that tracked them respectively. they are trading lower. the chart of the day we had today on the bloomberg terminal. if you look at it, it is the turnover on china's stock exchanges that is now surging past the u.s.. consider the size of the u.s. market. chinese shares valued at about $9.3 trillion on wednesday. in the u.s. you are talking about 25 trillion. that is the value of all shares. $380 billion on thursday. $132 billion in the u.s.. this is the red line you're seeing at the end of the screen. all of the turnover, all of the

treating you are seeing -- trading you are seeing. certainly a lot of concern with that 6.5% drop. pimm: let's take a look at some of the top stories crossing the bloomberg terminal at this hour. officials in india are warning people to stay indoors to survive a heat wave. many impoverished workers must do jobs outside. more than 1400 people have died in the past month. temperatures have topped 116 degrees. scorching crops. the internal revenue service ieves that stole tax information from americans are from russia. looks used the irs website to steal the data and claimed the $50 million in fraudulent refunds. yet, no reaction on the

soccer corruption crackdown from qatar, where the world cup is scheduled for 2022. construction of facilities is well underway and the committee leading the project has denied requests for comment on the fifa arrests. prosecutors say graft may have led to qatar's selection. stephanie: how about the fact that it is 100 degree weather, hard to get to and they don't have a great soccer history? amazing they got the world cup. pimm: you move it to a different season. stephanie: to accommodate them even though there are other countries where you could have played in that season. the pressure is building on sepp blatter. he is the president of fifa. he's been running the organization for over a decade. the head of europe's soccer organization is calling on blatter to quit in the rake of this -- in the wake of this scandal.

what you need to know about tomorrow's reelection. >> sepp blatter has ruled football for 17 years or you he has overseen five world cups. -- fifa is a not-for-profit organization. report,g to its annual fifa made more than $5.5 billion between 2010 and 2014. the majority comes through broadcast deals but also sponsorship. around $350 million of rise money goes to participants in a world cup which is held every four years. another $2.2 billion goes on expenses. dollars, building pitches and facilities in tiny nations with tiny football infrastructures. the cayman islands, with a population of less than 60,000 people, has received $2 million since 2002. vote on theies all

president of th fifa. stephanie: he is likely to get enough support to extend his 17 year reign. he's not been charged with bribery. this is this man's house. he has been leading for 17 years . if you speak to any hard-core soccer fan, they are somewhat rolling their eyes saying, we always knew it was a corrupt organization. now something was done about it. maybe they could hold off on the election until the air clears. pimm: there may not be that many let people -- there may not be that many people left to vote. there was a poor report today that some of the alleged money -- there was a report today that some of the alleged money moved went through u.s. banks. those banks are going to be asked to turn over those records to investigators. stephanie: i am most interested to see what sponsors do. reputation is more important

than ever. pimm: coca-cola, adidas and the people that advertise. stephanie: too early to make a call but that is a lot of dough. somebody else who lets a lot of dough, jay-z. set out to save the music industry from the economics of streaming and makes himself -- and make himself a fortune in the process. so far, he is coming up short. we will be discussing, after the break. ♪

stephanie: this is bloomberg market day. i'm stephanie ruhle. pimm: i'm pimm fox. stephanie: i don't like it when someone says, and this is stephanie ruhle. say your own name. make usingop artists

streaming service tidal its own. it is hovering at number nine on the itunes list of top apps. long before many of these brands, there was pandora, the radio pioneer turns 10 years old this year. tim westergren sat down with emily chang on studio 1.0. tim: i think there will always be people who want to buy music. want to listen to music without advertising and are willing to subsidize that. i think there will be a larger audience that will pay to transact with an artist to whom they feel connected. stephanie: you can see at more of -- you can see more bloomberg's interview tonight at 7:30 eastern. people are hemming and hauling saying this service is number nine. there are something like 100 services. we are just focused on these big ones. one of the reasons we should take pause and say maybe the

service makes sense, they are trying to represent the artist. at this point, young people are not used to pay for music. we used to go to record stores, maybe not record stores. pimm: there was a sale -- a record sale of vinyl records. their opening a new vinyl record pressing plant in tennessee this year. stephanie: these artists need to get paid more money. what is happening with spotify, many say is going to break. tell us what did not like it. pimm fox might like it. yesterday at head out to the record store and pick up vintage vinyl. coming up, i will be here. ♪

. . .

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he's more hardcore. so your sleep goes from good to great to wow! now we can all choose amazing sleep, only at a sleep number store. save $500 on the memorial day special edition mattress with sleepiq. ends sunday! know better sleep with sleep number. stephanie: welcome back to "bloomberg market day." now on my own, i am stephanie

ruhle. let's look at the top stories crossing the bloomberg terminal at this hour. fifa president set latter is in the news -- sepp blatter is in the news. he spoke today in zurich one day after the arrest regarding fraud in fifa. it looks like blatter will survive the scandal, at least for now, he has not been charged -- scandal, at least for now. aide speaks out. if you give away the tv rights for one dollar to one company, maybe it is not corruption, but it is serious mismanagement. stephanie: mismanagement. the head of the european soccer organization is calling on blatter to quit, so is british

prime minister david cameron. and an sec case on pharmaceutical drugs. tina -- teva settles a suit for $1.2 billion. and the justice department says it has busted a ring of chinese citizens who took college entrance exams for other people. 15 people have officially been charged. prosecutors say they have passports so they can pose as a real applicants. wrongful death lawsuit filed by the family of michael brown is now moving through a federal courts. african-american was shot by a white police officer last year in ferguson, missouri. it was filed last month in a state court. it is now moving to the federal

level on grounds that it deals with constitutional issues. and billionaire steve schwarzman says if he were 30 years younger, he would the an entrepreneur -- be an entrepreneur in silicon valley. he is the head of the blackstone group, and he has said that the tech sector has "so much amazing value." that is a look at the top stories in this hour. coming up in the next 30 minutes, we will have the latest in the greek bailout talks, and then the japanese yen falls to a 12 year low against the u.s. dollar. we will take a close look at how this affects some of japan's biggest companies. and more than 400 new tv shows debut this year. we are going to tell you why the market is getting flooded with so many shows with viewers who do not have enough time to watch

them. and this one is my all time fave, call it the second coming dick fuld, this is his first speech since lehman brothers lehmanollapse -- brothers's collapse. o your company? ask our friend from washington, a former member of the financial crisis inquiry commission, who on many occasions, interviewed mr. fuld. firms indicates why some thrive while others fail. i am not saying that dick fuld is making a comeback, but what do you make of it?

guest: if i were an investor, at least i would ask some questions. itselfbrothers destroyed in a fairly spectacular way, and made mistakes that a lot of other firms didn't make, so i think there is a lot to learn from the way that lehman went down. the thing that investors need to es is, what did dick fuld learn this time around? couple of give you a lessons, i would say to listen to your risk manager. there were serious problems in the market, the risk officer was regularly sending signals, we've got a problem here. she was simply disregarded, and and somebody else unqualified as a risk officer was put in her place. the question for an investor is, uld listen to a

risk officer this time around? is theput in my book difference between companies that survive turbulent times and the companies that don't is the quality of their decision-making. do they take risk reward trade-offs? do they look at the downside risks? do they take pedal to the floor, we are going full speed ahead? that clearly didn't happen at lehman. stephanie: all right, tom, i want you to stay with us, and i want to bring in my partner, erik schatzker. he should be listening to those risk managers, especially the in 2008, that was ghetto of the security industry. running risk any longer. my question is this, how

toxic should people like eric fuldbe viewed -- -- dick be viewed as? joet is not just him, it is gregory, also from lehman brothers, or other members of the executive committee or could be stan o'neal board someone from merrill lynch or a tom harris from citigroup. to your point, they weren't listening, they -- stephanie: hold on a second, told on the second, i am reading the headlines right now that are crossing from dick fuld's comments. "we are all risk managers, i am managers," i'm sorry, we are all risk managers? there is not someone who worked in the banking industry in 2007 who thought of themselves as this has they had been given

stock as part of their compensation reward. eric: tom, should these people be forgiven effectively or given another chance? or is the calamity that they brought up bout in 2008 so great -- brought about in 2008 so great that you can't forgive? investor, the question is, has mr. fuld learned anything? he had been very successful in 1998 and thought he could do just about anything as we went 7-'08.he crisis in '0 lehman wasn't making proper disclosures. not running ais public company any longer, he is running a private business. and all has to disclose anything to anybody. stephanie: there are more headlines crossing from his comment, and to me, this is

somewhat tone deaf he says "lehman was one of the greatest investment banks on the street," and he also goes on to say "it was a perfect storm leading to the 2008 financial crisis." you can't say that that was a perfect storm, very bad, very irresponsible decisions were made. why? because they were living it up? because they were wheeling and dealing during the go -go days? loste lost their jobs and everything and haven't been able to spend the last eight years sitting pretty and being really rich. eric: tom, jump in anytime you want. before firms like lehman brothers and merrill lynch started to chafe the return on equity that goldman sachs was estimating, they were great firms, right? they it raises lots of money for young companies to go public, they arranged many mergers that turned out, you know, to be a

valuable shareholder. stephanie: may be a firm that did not crave such value could be considered a premier bank valuee -- create such could be considered a premier bank because it did not create such risk? tom: goldman didn't go under, jp morgan chase didn't go under, ,ells fargo didn't go under toronto dominion bank didn't go under. there were ceos who understood how to make the risk-reward trade-offs, and they understood they were simply going for the gold, they were going to be careful, they were going to be measured, and mr. fuld, unfortunately, was not one of those people. on, i don'tst goes think we can pin the blame on fuld alone. but maybe we need to draw a distinction between great firms

and bad managers? right? tom: absolutely. eric: those guys, and they were , except the ceo of lehman brothers, they made bad decisions that ultimately cause their firms to fail. stephanie: but eric, hold on, eric -- an investment bank is nothing if it is not its people. it is not like they make a product, right? it is not like they are panasonic and we love their tvs, it is lehman brothers and it is individuals who work there and it is capital. so if you don't like the players, then you don't like the company. tom: he essentially dominated recordsd, according to that we have, he essentially dominated his risk function, he dominated the people below him, and that is a real problem. you need a ceo who is going to

listen, who was going to take feedback, who is going to act responsibly and cautiously, even when it looks as if they will go for the gold, as it did to mr. fuld apparently in 2008. eric: let's look who will share the blame, ceos are incentivized to make decisions on the basis of the feedbacks of the investors. are pushing them to attain unattainable goals, they will continue to do that. if they keep getting elected at the end -- if the board members keep getting elected at the end of the year, then they are not motivated or incentivized to change the way they govern or manage. stephanie: so wait, if you are saying that if i keep winning at the casino, i should just double down? eric: unfortunately, that is how people behave. much like there are very many reasons for the financial crisis, there is more than one reason for the lehman brothers failure then dick fuld alone.

absolutely, absolutely, but in the end, you have to look at the calculus that the government talked about. can we let lehman go down? can the shareholders take a hold of that the way the shareholders do? eric: if you could replay that movie today, would you have ridden lehman brothers out? yes, butrtunately, unfortunate, the market was spooked and it did not handle it very well. moral hazard,s a then the government would have committed itself to saving everybody. tom: while the government is pretty committed to saving a large complex financial institutions, and lehman was one -- well, the government is pretty committed to saving large, complex financial

institutions, and lehman was one of those. his kind like mr. fuld listens to those reactions. eric: how can the government play that role? quite honestly, i don't trust the government to play that role. to decide when a ceo isn't making the right decisions. time and: and tom, again, we have seen that the government does not have those act as regulators, and as those who had time who acted as regulators, they were not taken seriously. you remember the people going in with their clipboards and their brown polyester suits going in? that is not going to get solved. tom: well, it is going to get salt, and one of the critical issues is, does the ceo take feedback -- solved, and one of the critical issues is, does the

ceo take feedback? when a ceo makes an awful lot of money, which mr. fuld did, when someone is making a lot of money, it is really hard for a regulator to tell that person to stop take risks. but -- taking risks. but that is what we have to do. is human: but tom, it nature, if you are the master of the universe and takes the amtrak up to d.c. and talks to you about your risks, you will not give them the time of day, and those regulators don't necessarily want to be in that seat. there is someone who is making five, 10, 20 times what they are making. tom: you are absolutely right, that is the core problem. look at the bank in new york where the banks themselves govern that organization which supervises the banks that it governs. we've got serious problems with

our regulation. we've got to solve it. we can't solve it on the cheap. we've got to make regulation work. if we don't, we are going to be back in the same problem again. and inie: why, inc. you, am absolutely familiar with the why, thankistory -- you, and i am absolutely familiar with the idea that history repeats itself. and i amthomas staton, joined by my partner, erik schatzker. we will be back with "bloomberg market day," we have a lot more to cover. stick around. ♪

thehanie: welcome back to "bloomberg market day," i am

stephanie ruhle. we're looking at the u.s. markets right now and julie hyman has the big stories on "bloomberg market day" right now. julie: we should point this out right off the bat, we have some volatility here, some take gains yesterday, although the her,tude -- big gains in although the magnitude is gainsr from yesterday -- yesterday, although the magnitude is smaller from yesterday. we have equipment stocks that are doing quite poorly today, united rentals is one of them. they spoke at a conference last night and said that revenue in may is coming in a little softer than we had in mind. that is according to the ceo, and shares plunged by more than 9.2%. is the name that

indicates here, and we heard from officials in other tereznies as well, and erex sees at challenging environment and other equipment makers are being pulled down as well, that includes joy global and caterpillar. these companies equipment for a lot of other industries, and as a result of all of this, people have been talking about the dow jones average as of late. to see the stocks affirm what we see in the industrials, and we are not seeing that right now. here is a chart from the last year, and industrials trail, particularly when you get to more recent trading. even as the dow jones industrial

goes higher, it goes lower, so that causes some concern. stephanie, i don't know if you follow this dow theory camp. stephanie: please, there are more than 400 tv shows out there. of theake a look at some top stories that are crossing the bloomberg terminal this afternoon. vehiclesadding 350,000 of its recall of takata airbags in the united states. partvehicles were already of the voluntary action from the automaker, and investigators are still searching for a root cause of the defect that has killed at least six people. the job market remains strong. janet yellen likes that. applications for unemployment benefits stayed below 3000 for the -- 300,000 for the third week in a row.

jobless rate is approaching the fed's definition of employment. and the president and cdo of -- i love this -- resident and coo and coo oft goldman sachs released his photo of his very first day 25 years ago. he worked with the mercantile exchange before joining the firm in the 1990's. this american university alumni reigns from cleveland, ohio, and gary has made it to the top. congratulations, gary, happy anniversary. that is a look at the top stories of the hour. when we return, right here on "bloomberg market day," "mad thrones," "sons

of ar anarchy," may have a run for their money. can't believe we didn't mention "honey boo-boo." ♪

stephanie: welcome back to "bloomberg market day," i'm stephanie ruhle. now we are talking tv, a segment that my kids might actually watch. there is too much tv and too little time, filmmakers are popping out so many shows in exotic locations in hopes of creating the next big megahit. here to talk about the golden month tv glut is jerry's

smunt.y right now, we are spending loads of money on big actors and exotic locations, and before a used to cost nothing. these companies -- these companies are trying to outdo themselves, and they are hiring big names like martin scorsese and woody allen, and these could cost as much as $3 million per episode. stephanie: but why did this change? just two years ago, if you were a television reporter, you were in the unemployment line. why did this switch? happened in about 2007 when amc created "mad men." all of the other cable networks and the broadcast networks and

the netflixes and the amazon primes are trying to create that same kind of success. stephanie: there are 400 new shows out there. what is the one to watch? jerry: there are so many good shows, i am actually a fan of -- fan of "ricans" the americans." viewership is not necessarily as high as something like "the walking dead." go, jerry there you smith, he recommends you watch "the americans." more "bloomberg market day" when we return. ♪.

stephanie: it is 10:00 a.m. in the city of san francisco, 1:00 p.m. here in new york and 1:00 a.m. in hong kong. mark: this is the bloomberg

market day p or two will have the latest on the google conference in san francisco where the company is talking the latest in android software, virtual reality and global payments. stephanie: jawbone-fitbit rivalry. erik: after years of setbacks and cost overrun, the military is in the final testing stages for the f 35 fighter jet. stephanie: good afternoon. i'm stephanie ruhle. mark: and i'm mark crumpton. let's start with a look at the markets this thursday. the markets have been down for the most part. down about 8.5 points right now,