record year of m&a. company netjets is replacing its chief executive after a tumultuous period, including a dispute over compensation. hillary clinton is the overwhelming favorite among iowa democrats and it shows bernie sanders is making a quick rise. good afternoon. betty: let's begin with a look at how the markets are trading. equity markets are barely changed. some disappointing economic numbers this morning. we had personal income and spending below estimates and

that has people worried about the momentum in the economy, the economic recovery. markets, it is down considerably. brent is that 6463. we have the opec meeting this week where they will decide on production targets. pimm: the bond market, a little bit of a selloff. early year and finally a look at how the dollar is performing against the euro. 1.09. itsus the pounds sterling, gained. the dollar continues to strengthen against the major currencies. let's go to some of the top stories, the semi conductor deal that has been rumored for months and now intel has finally agreed to buy altera.

16.7 billion dollars in stock and cash, representing a premium over the closing price on march 26 when the deal was first reported. coming up we will talk with the intel in chief executive, coming and some0 p.m. eastern surprising data coming out this morning, the factory index rose to a three-month high and orders increased at the fastest pace in five months. those gains will support economic growth after gdp contracted. still the stronger u.s. dollar making exports more expensive. americans were into saving money rather than spending it in april. consumer purchases unexpectedly stalled. the savings rate increased as well. household spending accounts for 70% of economic activity. in new york city, a terrifying

accident could have been worse. a giant air-conditioning unit lifted to the top of a toscraper fell 20 stories the street below. 10 people were injured and officials say it was fortunate the accident happened on a weekend when the street was not filled with people. betty: scary. they are the five programs approved not long after the 9/11 attacks and they have been suspended. the senate has failed to extend the because of obstacles raised by rand paul. the most controversial allows the nsa to collect and store the liens of americans' phone records. we spoke to correct -- glenn greenwald earlier. mass surveillance is wrong. why should the government collect data about what we as law-abiding citizens do and say and the people with whom we are

speaking? it is corrosive to basic liberties. betty: the senate is expected to extend the spying program. the measure would also place some limits on government spying. they are playing the blame game in europe. greece and its creditors are blaming each other for lack of progress. the prime minister said the problem is not the fault of his government. germany has said greece has to reforms.e greece has to pay the imf a total of $1.8 billion. both sides have said degrees plans to stay in the euro. told bloomberg it might be best for greece to leave. >> we need greece to leave so the rest of the country say we had a failure, we need to fix it and people inside the euro will see what it means to live

outside the euro. betty: the greek talks are in their fifth months. they want changes to their labor lots and say they won't give greece more bailout money until concrete reform. and restaurant operator kfc is suing three companies in china. the reason? claims about kfc's food including that it's chickens have 8 legs. kfc is demanding cash settlements and an apology from each of those companies. trash is another one's treasure, in april a woman who cleaned her house dropped off a computer at a recycling center. she had no idea what she had. it was one of the original apple computers built by steve jobs himself. the recycling center ended up selling it for $200,000 and are trying to find the woman because they want to give her back half of it.

that is the least they could do. pimm: she did toss it out, but one of these computers sold at auction in october for over $900,000. betty: wow. maybe they did not realize the value. $mm: the original price tag, 666.66. repeating numbers. ofty: maybe a dark sense humor's. we will have the results of an exclusive bloomberg paul on how i would democrats -- iowa democrats. faces another deadline. make au.s. startups comeback. is it enough to reverse the long-term decline we have seen in this country in entrepreneurship? pimm: and the consolidation continues in the chip business.

this comes days after broadcom was bought in the largest semi conductor deal ever. why does intel want altera and will it help intel? jeff mccrackenis and also chris rollin. thanks so much for joining us. jeff, did they pay too much? jeff: $54 is what intel offered weeks ago. one of the most important developments was when we reported it was $54 a share, shareholders started calling us and said why did you pass up on this? this is a great price. premium.57% jeff: exactly.

the community that jumped in after the story, they are the reason the deal came back in part. it was not surprising the deal got done. it got done fast once the sides got back together. pimm: chris, why does intel need to buy altera? chris: the first is financial. this is going to be that for them. pimm: they lay off a bunch of people? chris: yeah, redundancies in management, sales. pimm: ok. they save money. chris: they have a product tie up. what is interesting is intel is a monopoly in server chips. it there is a duopoly in programmable chips. you are now going to be able to combine those products, the programmable side and the

server-side, and this will be a very hot product for these large data center guys like google and facebook. they are going to use these products. pimm: you've got the proper combination, the savings from money. chris: one more thing. very important. --ir foundry sandy's strategy. alterity is their biggest partner right now in foundry. as we get smaller and smaller chips, it becomes capital-intensive to build out these new things so you need to justifyre volumes the cost. strategy is becoming more important and they need to make sure all tara becomes that poster child to the future customers. betty: you mention this has been going on since march. getany of these talks

accelerated because we saw the deal last week? jeff: i don't want to call it relevant. one question was if intel would get in middle of that deal. this answers the question and now we know they are not going to. that deal will go ahead unless qualcomm gotten the middle of that. i don't think broadcom had an impact on the intel talks. those were going on months ago before broadcom was ever in the public consciousness. betty: you said you think intel and broadcom should have gotten together. chris: yes. i thought it would have been better than altera for many reasons, including the foundry strategy. they would have had more through broadcom as opposed to all tara -- . altera. of intelay the chances coming over the top are low. pimm: if you put together

has this chip combination concept and now you've got intel and altera, the same thing, what other companies are out there that could be added to the mix if you are we've got to combine our chipmaking? integration takes place in the industry almost every day. some combinations i can think of in the future, microcontrollers, these are a must like tiny cpus. they would be useful in the iot space. the internet of everything. pimm: who is the leader there? chris: quite a few. microchip is one. texas instrument. a company that should be ripe

for a takeover. you might see some consolidations take place. betty: where does this leave qualcomm? would they come over the top on either one of these deals. it is already the biggest year semi chip conductor. lead you to believe there are more coming. you are going to see more deals for sure. pimm: thank you very jeff mccracken and chris offbr. coming up later today, we will be speaking with the intel chief executive. and still ahead, a new contender enters the 2016 democratic parade. betty: martin o'malley, does he have a shot at beating hillary clinton? we will survey the presidential field after the break.

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welcome back. i'm pimm fox. betty: here with betty liu. let's get to the breaking news desk. julie hyman taking a look at some of the movers, starting off with gambling. julie: shares are going higher after an upgrade by credit suisse to outperform. shares are trading up on that optimism is las vegas,

that there will be a better recovery, and stability in atlantic city. call.eresting the shares are up by 4%. another call, juniper downgraded to a sell. by 3%.shares were up last week we saw shares climb on speculation it could be a takeout target for erickson. analysts do not think that is likely. they say that the business could deteriorate in the second half of the year and we won't see a the horizonery on to benefit somebody like juniper and finally we've got citigroup upgraded to a by over at goldman sachs. shares are up by one and a quarter of 1% and the analysts are saying the streak is -- the street is underestimating and

the recently citigroup has had a good track record growing earnings. what you are looking at is the price to earnings ratio. while it has climbed, it is at a low level, around 10 times this with 18arnings compared for the full s&p 500 and 14.5 for the financials. these are one of the measures they are looking at, saying if you are looking at this low valuation, it is not justified given the outlook for this company's earnings. we will see if they are right. pimm: thanks for a much. now some of the top stories crossing the bloomberg terminal, celebratingsidering a debut bond in the near future. that is according to goldman sachs which says they will offer the the security subject to market conditions.

they could sell the securities as soon as thursday. call them medicare millionaires. once again a small group of doctors accounts for a large portion of payments. we found medicare paid 3900 million in 20 13. five of the doctors received more than $10 million. medicare is the largest portion of government spending after defense and social security. and levers in paris beware. authorities are taking down tousands of padlocks affixed the famed bridge. the city says the locks are .ausing some long-term damage last summer a chunk of fencing fell off under their weight. that is a look at the top stories of this hour. betty: love hurts.

ha, ha. all right. ok. over the weekend, martin o'malley ended the -- entered the democratic race for president. he called for a wall street crackdown. governor o'malley: i've got to news for the bullies of wall street. the presidency is not a crown to be passed back and worth by you between the royal families. it is a sacred trust to be earned from the american people and exercised on behalf of the people of these united states. betty: o'malley faces a battle against hillary clinton. bernie sanders as well. likely democratic caucus goer say clinton would be their first choice for president. sanders is that 16%. margaret. now is

in fact, yes, the leader, and she does not look vulnerable get. she doesn't. we were looking to see if these controversies, the benghazi, whether these would have an impact on her. it shows they have not. not with likely democratic caucus-goers. the opposite, really. she is up one point in terms of being fifth -- first choice. on the other measure, she picked up two points. she is very favorable. pimm: what about elizabeth born were bernie sanders? -- warren or bernie sanders? margaret: she has not decided -- she has decided not to go into

the ring. you can call it the anti-hillary caucus-goers and these are folks that are looking for an alternative to hillary clinton. has herh warren loyalty, but we asked a question, which was who represents your views? warren or hillary clinton? elizabeth warren has 37%. bernie sanders, 26% of those sayingcaucus-goers sanders represents them better. he has moved in to fill the spot. margaret, thank you so much. we've got some breaking news right now on disney. i want to get to julie hyman on the news desk. at disneyop executive

is going to be stepping down. he has been with the company since 1986 in a variety of different positions. he will be stepping down effective june 30. this coming from bob iger. , toill continue, mr. rasulo serve in an advisory capacity. saying he has been a contributor to disney's success. this might recalibrate sort of the betting on who will be the iger.sor to something that has been talked about quite a bit. there was a story in april that out tosulo had been beat be the favored contender to succeed iger. not clear if that is what led to his departure. betty: thank you so much.

this departure on disney. go ahead on the market day. competitiveits streak to a new level after a friendly meeting with carnegie mellon. not just any workers. we will explain what they are up to in a moment. ♪

needed help with driver this card technology, they ended up hiring a wave far -- 40 scientists and researchers from carnegie mellon. some saw their salaries double. betty: no surprise. they are in huge demand. pimm: they've got this new tech center in pittsburgh. it is a question of whether the university understood the meaning of the joint venture. betty: i love this angle, uber

putting taxi drivers out of business and now it might also be putting the drivers out of business, if they go on, driverless automobiles. bem: in the sensitive might driver assisted. you never know with these 40 hires. maybe they will make it work. betty: brave new world. that does it for me. over that does it for you. much more ahead in the next half hour. a pick up a new startups. celebrate. we are still at historic lows. ♪

welcome back to the bloomberg "market day."

i am betty lou. another republican announces white house aspirations. the latest, lindsey graham. launched his bid for the presidency making his announcement in the small town where he grew up. i want to bem: president to meet our problems head on honestly and realistically for the purpose of solving them. not hiding them or taking advantage of them. i want to make government work for you, not the other way around. he is a prominent voice in once 10,000 more u.s. troops in iraq to stabilize the world he has characterized as falling apart. bostonrry is flying to after staying overnight in a swiss hospital to receive treatment for a broken leg. it happened in a cycling accident in france. travel.l limit his

the u.s. and other powers want to curb iran's nuclear program. they would agree to ease economic sanctions. a burger chain founded by a brooklyn car dealer is growing. hass called berger fie, and revenue that doubled. they were the fastest growing chain last year in the so-called better berger field. that is a look at your top stories at this hour. coming up in the next half hour, why a private equity fund backed pouring a billion dollars into a hong kong investment bank. jet isren buffett's net replacing its ceo after a tumultuous period. -- we will look at star wars

so do the number of new inventors. a study just released shows the level of startups rose last year for the first time in five years. there was particular strength among male and immigrants. however, kaufman warns not to get excited. despite advances in artificial intelligence, virtual reality, overall startup creation in this country is very weak. james is the vice president of research at the kauffman foundation, which author does that report and also with us is jason of storm ventures. on thetart with you research side. tell us, when you are looking at ventures, you are looking at every angle.

not just tech startups. you are talking about small businesses opened up by immigrants, you are looking at other types of manufacturing businesses. right? s: that is correct. this is a big tent that includes the types of businesses you mentioned and also those with several people in any sector. as you mentioned, we saw the biggest increase in that index in five years and the largest annual increase in two decades. betty: why are we at historic lows? entrepreneurship took a plunge in the recession. we are still climbing to historic levels. this positive movement is in line with other indicators where we have seen positive indicators. there is increasing confidence and availability of finance. as you suggest, there are

concerns we should take care to address and find ways to renew entrepreneurial growth. betty: one stat from this that was interesting was that among thems, only 0.3% of actually start a business. it is hard to, you hear about uber, every 24-year-old starting snapchat, it is 0.3% of all adults who started company. hard, having had some success, it is hard. obviously we need to be the center of the world. even expecting a couple of percent of adults with start businesses is expecting too much. we want to see the trend growth and we want to see the best entrepreneurs come to the u.s. to start their companies. betty: indeed.

that is a matter of debate in washington. jason, what do you see through your lens? while the kauffman foundation here, do you see it as the highest ever incomplete creation? jason: ia am. you have to contrast the overall u.s. economy. growing 2% year over year. compare that with nasdaq. nasdaq had an incredible run. up see the nasdaq shoot basically 3x from it. startup activity has gone up 10x. it is very strange being in san francisco where every single bright kid is rushing to do a startup and the rest of the country is struggling and i

think that is why we see the split between the types of startups. betty: it does seem like a tale of two cities when you talk about start of nations. technology,ch does how much do they skew the numbers in your study? you and jason suggest, there is massive variation. even rolling them into an index is useful and to try to sort out different types of companies. tech startups, while they are only a sliver of all companies started each year, because they will be driving the front end of technology and they will have a multiplier effect on other businesses and that may be something that is at work, we have seen this growth that is starting to filter and have an impact on the economy. stat fromon, another

this index, this study, the rate of new ventures by women is that a two decade low. despite all of the progress you here, it is still a long way. what about in silicon valley? numbers, i feel like we have made no progress. was a female in 2002. it was diverse. board meetings are less diverse. i don't think it is actually getting better in the short term but hopefully attitudes are changing. betty: jason, thank you so much. dane as well. still ahead on the bloomberg "market day," greece is scheduled to pay $1.7 billion to the international. we will have the latest on the negotiations. ♪

welcome back to the bloomberg "market day." here is a look at the european markets. here is hans nichols from london. a mixed picture today. where ite a look at was positive and negative. some green for france and germany.

the ftse down about a half of percent. italy down about a quarter of percent. don't be distracted by the red. we did not have open trading because of the pentecostal holiday. take a look at bonds, see where -- seeon we have and what action we have, we have a risk up situation. italy and spain, yields up slightly and in negative and finallyermany, a quick look at the euro dollar. see what the story is. you can see a bumpy rise today and ending down about three quarters of a percent. quite a bit of moves. that looks like it is creeping up just a little bit and with that, we will send it back to new york. betty: hans nichols in london. of reorients group soared over 100% on news that jack ma's company is taking a stake in the

firm. david ingles has the details. david: a private equity fund will be taking a stake and marking an entry in hong kong. about a $350 million investment. to put some scope into that, we have 70 employees and about $100 million in income. the fund is seeking exemption from a rule requiring it to make a mandatory buyout offer. betty: julie hyman has all of the big stories on the market day so far. it looks like we're coming back a little bit. gain: a little bit of a whereas earlier we were mixed. we had mixed and not -- economic data today. personal income is going down. manufacturing stronger than estimated. a bit of a mixed bag. a little bit of a decision in the stock market as well.

i also want to talk about what we have seen in the currency market. today we see the dollar rise to some extent. leg up afterg a that manufactured report came out at 10:00 a.m. new york time. this year we have seen traders be hit by the volatility and caught off guard by the various commentary out of the fed. what you're looking at is an index at some of the fund performance, funds that track currency. we have seen it down month over month for the first time in years. the declines you see over the past couple of months on the far end of your screen. it has been difficult for these various traders to come out and try to track the moves in what the fed and the economy is doing. onther way is the long bets the u.s. dollar. they reach a record year, nearly

450,000. climb here and then we saw it dipped to where we are at this current level. we are seeing oil trade lower. and that's the long anticipated opec meeting. the saudi's are pumping out a record level and if you look at prospects from various oil analysts, they are not thinking that quotas are going to change significantly. that is one of the reasons oil is under pressure and finally a look at the u.s. treasury market. not much change in the 10-year, but yields are pumping up a little bit higher so it looks like sort of on balance, if you look at the economic that -- data it is being read positively for the economy. a little bit of disappointment. overall positive. betty: thank you so much, julie hyman.

looking at the top stories, mater hastor's alma dropped his name and accepted his resignation from its board of advisor. he graduated from the small christian liberal arts school outside of chicago in 1964 and last week he was indicted accused of lying to the fbi and making withdrawals to conceal past behavior. microsoft will come out with the latest version of the windows operating system. windows 10 will be released in time for back-to-school season and will be available for pcs and tablets as a free upgrade for people with windows 7 and 8.1. a bay area real estate broker is now a billionaire. someirm currently has 2800 commercial properties for sale.

million,hem below $10 which make up the bloke of real estate sales. the firm has more listings than any of its competitors and closed 7600 deals worth $33 billion. those sales are adding up in a big way. he has a fortune worth 1.9 billion dollars and that is a look at the top stories this hour. another piece we want to flag for you was written by greg. the supreme court has thrown out the conviction of a pennsylvania man accused of making threats on facebook. lyrics.uoting rap the justices ruled it was not enough for prosecutors to show the comments would make a reasonable person feel threatened. anthony was prosecutors for making a legal threats after he posted rants about killing his wife, harming law enforcement officials, and shooting a school.

mark crumpton is here to talk about that. this was seen as a first amendment case. skirted that issue and said there is not enough here to say this man intentionally threatened his wife simply by quoting the lyrics. : they say your first amendment right and's when you yell fire in a crowded movie theater. i would assume if you threaten another persons life, and you also threaten to go into an elementary school and shoot up a kindergarten class, that would make some people wary they might take that action. the tentaclesurt, include his mental state, as you lyrics fromilfering a rap song. i believe it was the first time the justices had to take a look at social media and the

implications of that because -- betty: to read eminem lyrics. not like the 1960's where somebody would write a letter to the police department and take pieces of a newspaper and say i'm threatening so-and-so. social media, facebook, the broadness of this, the ability to reach several million people, i would say -- betty: nobody had had that power before. mark: we would think they might be serious. the justices apparently disagreed and i should mention, you mentioned the story, greg is the best of supreme court reporter in america. you might want to take a look at this. this is a fascinating legal argument. it is pretty disturbing. betty: all right, mark. what is not disturbing is going to be our next hour together. we are going to be talking cuba. mark: cuba was removed from the

list of state sponsors of terror on friday. what does this mean for businesses and for relations between the united states and cuba? the embargo is in place. this has nothing to do with the embargo. off is about taking cuba the list, something they had demanded because when you are on a state-sponsored list of terrorism, you are an international pariah. that is what cuba has been since the 1980's when it was put on the list. we will have a roundtable discussion on that and see the economic impact of cuba coming off the list. betty: i'm going to see you in a little bit. much more ahead. berkshire hathaway replaces the ceo of net jet again. souring relationships with their pilots. what made him move locations again? ♪

betty: welcome back to the bloomberg "market day." has replaced the ceo at the private jet services company. he is replaced by adam johnson. it is the force time buffett has replaced the ceo of the jet ownership company since 2009 when he replaced richard. what does this tell us? lawrence is here. four ceo's in six years. it makes you wonder whether this

is a mistake. lawrence: a lot of people make it -- say it is a mistake. i'm not show sure. i think the business model has succeeded, but they've got to figure out whether they want to be a commodity type business, or a luxury business, offering the full napoli of services. betty: you think this is what is going on, the debate here. lawrence: that is my understanding of it. it was built as a luxury brand. betty: he looked like a slick guy. i great spokesperson and salesmen. that is right. it was very prosperous. it's got into trouble when all asset classes got into trouble. and so david got warren , and so they made a switch in ceo and the business

model. what you are seeing, the pilots have been outspoken about cost maintenance. read, in jordan did a think it is i don't personal. the thought is the pilots might be right. that is the better way to run the business. i think they are changing the business model as much as -- the company was bought by buffett, and then he left. sokol took over. he left. jordan took over. and now adam johnson, who was hired by santulli. lawrence: that is right. jordan is a terrific guy. he came from mid-american energy. guy johnson is a netjets

from 20 years ago. he will have that old-fashioned -- i think that is what is happening. betty: is this a black mark on buffett? shownce: no, but it does some difficulties. david persuaded it should be run a different way. now we are switching back. that is a small cost, a small price to pay. outy: it has always stuck among the company's buffett invests in. thes glamorous, it is for rich, this is nothing like dairy queen. lawrence: some of their insurance products are high and. ford and sony. to take that point further, this is warren's kind of company. he was a very satisfied company. a more democratic way

for him to fly. a lot of people think it is a personal thing. critique the business model. i'm not sure. i understand the critique, but i think the economics are here. ran a profitable business. it is not an easy model. betty: unions to deal with. be sticky.hey can and they draw competitors. it is a difficult business, but it is not a loser by any means. cunningham,nce thanks so much. much more ahead including our of aview with the ceo restaurant group. ♪

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good luck in san francisco, at 1:00 a.m. hong kong. mark: "bloomberg market day." this is "bloomberg market day.".

a crucial week for greece as the prime minister faces a deadline to make a payment to the imf. mark: we tell you why the bosses at the hedge fund waited tables as they develop a turnaround plan. betty: good afternoon, i'm betty liu. mark: i'm mark crumpton. intel agreed to acquire to designer all terror nearly $17 billion in cash. a check of the board shows the s&p 500 is higher today, up nearly half a percent at 2116.