leaders are meeting at this minute. we will review the latest. scarlet: municipalities on the west coast looking to take a page out of new york. dairy queen is looking beyond ice cream to siu and sales. they are heating up to attract a.m. rid -- younger audience. mark: welcome from bloomberg world headquarters in new york this is marketing, i am mark crumpton here with scarlet fu. you mentioned earlier, stocks are well off their highs, but we're still holding onto gains right now. he s&p 500 did get within one point of making a new high. he did not get there quite yet.

but there's still a lot of optimism with the markets risk on. bonds are falling prices and rising yield. the 30 year now at 3.15%. of these on tomorrow -- at the center of all of this is the euro. unchanged right now as the negotiations continue in brussels. let's take a look at the top stories we're heading this hour. mark: a step forward in that greek debt saga. meeting inency brussels, he is offering a new plan that would raise taxes and and early retirement options. earlier the european commission vice president it is -- is that it is a step in the right direction. >> we are not there yet, there is still plenty of work to be done before we can reach an agreement. but we need to work very intensely.

in order to reach a deal this week. trying tok banks are slow down the pace of withdrawals. the financial times said walk-in customers are being unofficially limited to taking out about $3400. scarlet: anthem is not budg ing. they are offering $184 a share in cash and stock for cigna. cigna has already rejected that bed, calling it inadequate. they may for offers to cigna this month. the ceo says he does not see any regulatory issues hindering the deal. >> we believe there is a consensus of where there is overlap between our companies, and no substantive antitrust or insurance regulatory issues are present that would prevent completion of the transaction. scarlet: a major sticking point between the two would be who

would lead the combined company. the ceo cigna say they have not seen and the work out there sales strategy. mark: a share of first-time buyers match the highest level 2000 12. the prospect of higher rates may be driving sales. scarlet: a man who flew a gyro cap turkey restricted airspace is relenting a plea offer. the deal would have meant prison time. intendedhe flight was to call attention to the big influence of big quality and politics -- money in politics. america's halting europe strengthen its defenses against russia and other adversaries. defense secretary ashton carter says the u.s. will contribute an array of weapons, aircraft and commandos for nato's rapid reaction horse to help euro protect itself against russia

from the east and extremist from the south. secretary carter announced the u.s. contribution after meetings with defense ministers from their germany, norway and the netherlands. he says the u.s. is to be deeply committed to the defense of europe. scarlet: the supreme court will trusteesan appeal from of over the appeal form bernie madoff ponzi scheme. more supreme court news coming up later this hour. jesse jackson junior has been released from halfway house in baltimore. the son of the reverend jesse jackson has lived there since his release from an alabama federal prison in march. he was serving a 30 month sentence for spending 700 $50,000 in campaign money on

personal items. scarlet: for better or for worse, but does that include gunfire? weddingle's justut short when a discharged his weapon, grazing a woman in the head and the reception was canceled for safety reasons. greece, some lawmakers are optimistic a deal could be reached this week. we are seeing that in the markets now. hans nichols joins us now. what is the latest? >> the latest, leaders are in their meeting this evening. no one expects a long or substantive meeting because we still need to have these documents that were submitted, this proposal have a cost figure put to them. there is a great deal of

optimism. one question looming over this entire summit is can today's overshadow what has been five months of sort of sore feelings, missed deadlines, misplaced that. can tonight's optimism to the proposal they submitted overcome that? that is something we do not know the answer to. we will see if any specifics came out after this meeting tonight, and if we know what greece plans to do on the level of pension cuts, on the level of increases. what their specific lands are. leaders want to know and they also want to make sure the numbers add up/ . mark: is there any sense of urgency we are hearing following these reports of control at the banks for fear that people will make a run on the banks? general view on capital

controls and as well as the political process goes on here you are unlikely to have the need for capital controls because what we have seen is outflows of the greek bank basically mirror the likelihood that people think they are going to have capital controls. as long as the political conversation continues to marinate and take place, it is unlikely you will see capital controls. that being said, we need to be specific and creditors, especially germans, want to make sure the numbers add up. if they do not add up we could he talking about capital controls. quickly. scarlet: we are dealing with we have been down this road before. we know it will not be resolved tonight. having said that, we are in an emergency summit today. what is the next item on the agenda? >> if there is something substantive him and may have an and thathese proposals they are mathematically workable, will+++

will have a meeting. thursday and friday there is a regularly scheduled meeting leaders summit here in brussels, and that could bring together whatever sort of agreement you have on thursday. there still could be some hiccups, and there is an open question on how you actually disperse the money degrees so that it can pay the 1.5 million, one .6 million that is owned to the imf at the end of the month. scarlet: the devil is always in the details. we will speak with you again very soon. mark: earlier today hans spoke with the president of the european commission asked him what is now different in brussels but over the weekend? >> and certainly a positive move, this proposal. we are not at the agreement yet. there is more work to be done, but now we have confidence that a proposal is open. >> how specific was the proposal? specific fore

example, on the surplus targets it is in line with institutions proposing before. >> 1% primary surplus for 2015? >> exactly. >> what do they say with 2016 and 2017? >> it is in line with the next four years. 3.5% of gdp respectively. onre is some discussions whether the measures proposed up.ral parties adult -- add they are in line with situations, but the greek government made this proposal does last night, institutions still need more time to assess all look at -- all of the technical work before presenting a cover has an assessment.

>> did they submit anything on pension reform? >> there are proposals on pension reform, on a number of on someements month but of those elements we still believe that there are better solutions possible. now we have a proposal to work on. >> did you like what you saw on pensions? >> certainly, this proposal is going in the right direction. we are not there yet. there is still further work to be done before we can reach an agreement. but we need to work very intensely. from the commission side we need to work very intensely to reach a deal this week. >> what is your expectation for what will happen at the leader summit? case, one could say

there is a cautious welcome to the proposal. there was the understanding that institutions did not have enough time to properly assessed the proposals. >> was their disappointment? in ais was called shortvely sort notice -- notice, and all sorts of proposal came just during this night. as the european leaders have indicated, they are ready to reconvene this week, and also to work in order to reach the agreement. terms of the math adding up, and there is an agreement later in the week, how quickly can you get the money to greece so it is not the fault of the imf? thatere are ways to ensure greece can meet its liquidity

problems this month. europeanle, the financial fund, it is likely that there will be a need or expansion of the program to allow for results. >> how long of an extension? that is up for the eurogroup to decide. discussions. that was hans nichols, in brussels. ahead, from the theoretical to the practical. how does this impact the struggling business owners? ♪

mark: welcome back to bloomberg market day i am mark crumpton here with scarlet fu. scarlet: let's look at the markets right now. it is definitely risk on. bonds are lower, old prices are lower. stocks are up around the world. bit ofre seeing a little a pair of american some of those games, taking the look at the major indices. the dow is up about 6% -- 6/10 of a percent. the nasdaq hit a record high, and there is speculation that the greek crisis might get a resolution soon. it is always a wait and see. airline industry are working to

push markets higher. nearlyp nearly 2% with .0 look at some of the individual movers. american, united, as well as jet blue are all in the green. american the biggest gainer, up nearly 3%. united airlines group up about 1.6%. that is the longest winning streak for united and about half a year. one area that is not doing so great is cyber security. check out fire in semantics. fire i is down by about 2.8%. i toowngraded fire neutral. semantic was downgraded to sell. all of the easy money has been made.

tough times will narrow the margin error. scarlet: thank you. the latest on the market. mark: here are the top stories crossing the bloomberg terminal at this hour. sequential brands as agreed to by martha stewart living omnimedia for $6.15 a share. that is below the price were closed on friday. the lifestyle company's founder will serve as chief creative officer. they have line such as jessica simpson. general mills is dropping artificial colors and flavors from material. it is the latest company to respond to a growing desire for food made with ingredients people see as natural. general mills said tricks and reese's pulse will be the first to be changed and a 90% of the euros will have no artificial ingredients wide the end of 2016. subway, pizza, panera and other companies have recently said

they were removed being artificial ingredients from some or all products. doubling the size of its loan program for coffee farmers. it is aimed at helping starbucks maintain a supply and sourced coffee. they will keep this supply of $30 million to the program. those of the top stories of this hour. increasing tax rate has been a redline by the greek government the negotiations with creditors. mark: bloomberg spent an afternoon of a route neighborhood restaurant in athens to find out how it is impacting businesses. >> it was raised, reduced, raised again. business, it is 7%. the taxes, and the social security money that i have to give every month. of $5,500 aerage

month. the taxes make it look expensive. everything else went up the last years, from vegetables, meat, milk, everything. about half of his salary is taken away for social security. 30 euros a day, you must make 45. the employee does not have any social security, they do not have any security, social or not social. you can see what happens in the last five years. people are going to think that you report from iraq. greece, the politics and be aels, there's going to business like mine in paying

i am scared because they do not understand what is happening. i am scared because i have no idea. you know what i like the best, is that he is a former tv anchor. mark: there is hope for us yet. scarlet: when are you going to open your restaurant? mark: i don't know. we will be discussing this. scarlet: coming up, it is west coast versus east coast, real estate and vision. the surgeon rent in both places. ♪

scarlet: move over new york city, san francisco in gaining ground in the apartment rental market. senior analyst has been tracking these markets and he joins us now from our princeton office with more. what is going on in the city by the bay? >> thanks for having me. you basically have a perfect storm going on out there with the amount of jobs being created mostly driven by the technology industry. at the same time there's not a lot of housing being built, and the single-family stock that exists is extremely expensive. the renter population is not in a position where rents are being increase i high single digits on average, and many cases double-digit year-over-year. scarlet: there is a distinction to be made for the level of rent

in our city still higher than that of san francisco. it is the rate of change and was san francisco is pulling al head. >> new york city is still more expensive if you look at an average rent per month per family. san francisco rents are growing faster, and we're getting to a position where landlords are actually struggling to grow rent as fast as they need to do keep up. mark: speaking of keep up, aren't we talking about millenial's who do like they do here in new york city, you have of 25 remains at a time because the rent is so high? to have an extremely limited amount of rentals talk where the millenials went to live. they will find but of a they can in terms of what housing is available. you start to hear rumors and stories about these micro units

being built where as long as they have room for a bed and thereby, as long as they are close to work it is good enough. scarlet: talk about solutions, rent control. is that a viable solution? any form of rent stabilization going on in san francisco? >> rent control is being talked about in certain difficulties, in the bay area. what you have is existing landlords who do not want that. they do not want a cap on what they can do in terms of the rent growth. thatave certain landlords basically are coming to agreements where they will guarantee to offer a rent increase of less than 10% in order to avoid a cap being placed on what rent growth can be. back in seems we're this non-virtuous cycle. you have friends that is too high, so people who want to buy a home find themselves priced out of the market because they have to spend most of their income paying the rent. >> frankly rent control would be

a disincentive to that. if you lock in rent at a certain existing level, people will not want to leave the rent to buy a house. the next generation of renters will be priced out even more. ourlet: our thanks to analyst from bloomberg intelligence joining us from princeton this afternoon. mark: the greek story keeps going and going. scarlet: it will be here tomorrow, do not worry. and so will we. have a great afternoon. we have much more coming up on bloomberg market day. dq is heating things up for this summer. we will hear from the ceo, next.

. .

scarlet: welcome back to the bloomberg market day. let's can you some top stories

crossing the bloomberg terminal at this hour. the supreme court rejecting an appeal by google involving their mapping system. google has been accused of infringing patents from a california company. the court's opinion would allow it to go ahead. a united nations report on the 2014 gaza war has found israel and the palestinians may have committed war crimes. israel launched its offensive last july in response to heavy rocket fire. than 2000 palestinians, cling hundreds of civilians were killed in the fighting while 73 people died on the israeli side. israel has slammed the report as highest. the eu is launching an initiative to stop human traffickers from bringing migrants across the mediterranean in unseaworthy boats. 2000 people died on the journey or have missing -- or are

missing. dozens of both our loss -- are launched from libya each week. independent says he has been diagnosed with cancer. king says he plans to make a full recovery. jack dorsey will apparently have to give up his post at square if he lands to become the twitter ceo. twitter says it is only considering candidates who can make a full-time commitment to twitter. he leads the company on an interim basis following the resignation of dick costolo. twitter has still not turned a profit. coming up in the next half hour of the bloomberg market day, prices of marijuana dropping in colorado. competition and production helping to push prices down. is that a good thing or bad thing for the industry? and before they were beats by dre, they were just an idea.

.ow someone is suing deal or no deal -- obamacare is causing dramatic consolidation health care business but that's not taking the deals easy to get done. we've got that and much more coming up on the bloomberg market a. terryg to other news -- queen turned 75 years old today. to celebrate, they are making their biggest menu change ever. they are adding hot sandwiches and desserts. they say it is spurred by changes in consumer tastes. the president spoke with eddie lou about the menu shakeup. the 75-year-old brand we are always changing and we are responding to the needs and wants of our consumers. healthiersumers want options and more made for you options. so we have artisan sandwiches, snack melts, and our dq tweets

-- dq treats. dqn you put these famous softserve that was invented 75 years ago today on top of those treats, they are wonderful. betty: i'm looking at some of these options -- have you tried all of these items? guest: i absolutely have. this has been underway for about three years. it is an initiative that was discovered in china. we were working on a project for our almost 700 stores in china and we said we think we can offer something other quick serve hamburger chains do not have. therefore, dq bakes. who are you targeting? who is your consumer for this? obviously, millenial customers are looking for more options. but at terry queen, we span all generations. a recent survey came out and dairy queen fared as well as

anyone from rumors all the way down to millenials. when you look at our menu today, we have a combination of almost any product from our great soft serve, our number one selling selling- number one blizzard. we have green tea for our asian markets as well. but we want to have food, treat ourbeverages to satisfy fans. betty: you hear a lot about mcdonald's and the menu items over the year and how it has created a complicated kitchen. too many items in the inventory. they might say i don't know how to handle all of this. storeswe have over 6600 in 27 countries. the key is working with our franchisees. in toput the dq bakes

test markets. our franchisees were then saying we really want to launch this and it did require an investment in ovens. working closely with our franchisees, they have embraced the concept. but we constantly look at our menu and we remove products from time to time. betty: what about taking out artificial ingredients and things of that sort? are you moving in that direction? look back, about four years ago, we started removing trans fats from our products. at the time, .5 grams per serving was the target. now there are new rulings that came out and we will work over the next three years to remove trans fats. equally as important, about a month ago, we removed or will remove carbonated soft drinks from our kids menu.

mothers like you say we don't want to walk into the store and see our children. they see they can get a soft drink with our kids meal. milk and water will be the only options available and advertised on the kids menu. betty: what about warren buffett? warren buffett is our number one fan and he has tried about every item on our menu. i know there has been a lot of press about his eating habits, but it's about eating and moderation. we all know we are going to buy and consume food that we enjoy, but it is really about eating in moderation. that was the president and ceo of international dairy queen. we have more coming up on the bloomberg market day. it took taylor swift less than 24 hours to make apple back down. how the tech giant backed down

to the music sensation. ♪

scarlet: this is the bloomberg market day. i'm scarlet fu. colorado's recreational marijuana industry is growing like a weed. the numbers were crunched and sales of recreational cannabis in april jumped to almost $44 million. as sales increased, prices are falling. according to the marijuana store survey, the average price has dropped from as much as $70 last year to as low as $30 today. a full ounce has drum just has aspped from a $400 to as low

$30. alix steel joins me now. it's subject to the same forces of supply and demand as the commodities you cover. caught my's why this eye. it purely has to do with supply and demand. you think there is more demand, there has been lots of production. everyone wants to get in to produce and take advantage of these booming sales. part of that is increased competition. we've seen companies buying warehouse space, expanding their facilities and the type seven bierman where you can smoke marijuana has changed. have four/20 happy hour. scarlet: i can't believe you are saying this with a straight face. alix: it's because it is a commodities story. i have a camp for adults where pot --'t bring your own

you can bring your own pot -- they don't supply it but these kinds of ideas wind up increasing how they are sold. scarlet: the other thing i learned from this report is sales are expected to pick up because there's a tax free day for recreational pot in september. alix: not only they lowered that an in 2017, so there will be overall reduction in how much you will have to pay. it's an effort to squeeze out the black market and make it more legit. what was interesting in the report is more people are buying , they are actually spending less money when they do. the novelty has worn off? alix: there are just more people doing it. it's a full on commodity, supply and demand story. scarlet: everyone is going to

make a jeff spoke only -- jeff spicoli reference. thee is nymex crude over course of today's session. we are marginally higher but stuck in that if you nine dollar-$60 range. alix: there are two things going on. june 30 is the big headline for the iran nuclear talks. if there is some kind of an agreement, what supply will we see come out right away question is a lot of oil floating in storage that could be sold right away, but how much will production be able to ramp up is the wildcard. on the flipside, you're dealing with the question of what does the demand picture actually look like? none of the analysts have a clear-cut picture. you see increased demand from south korea. they are increasing market share in asia, so that's a big

wildcard for a lot of analysts. to changet seems every day depending on who you are asking. what about ironwork? alix: we got some downgrades from goldman sachs, calling for price to go below $50. the reason this is crazy is it had a really intense ride. you cite decade low price just in april and then stockpiles fell. that boosted supplies and now the -- boosted prices, i should say, and now expectation is the price will fall off again. their margins are not so awesome right now, so they won't want to produce until margins get better. how much is iron ore tied to the commercial real estate market? alix: that's a good question. scarlet: we talk about demand

from emerging markets in places like china, but as we look at the u.s. property market -- alix: i tend to think about copper, but in terms of steel use, i don't know the answer, but i'm going to find it out. scarlet: alix steel will be back to take us through the market close, but we want to get through some top stories in the meantime. tesla says it's model three is on schedule. aares of tesla falling after trade magazine reported the model three would be delayed. a spokesperson for the company begin inuction will 2017. it's expected to cost you $5,000. fifth third bancorp is planning to get smaller. they will sell 100 branches and of 185 million dollars. the tank says they have made

significant improvements to its mobile banking options. turnedmer fed chief blogger, ben bernanke, is weighing in on plans to drop andrew hamilton from his future spot on the $10 bill. dump andrew says jackson from the $20 bill. in a post titled "say it ain't so, jack" -- he writes it should not come at hamilton's expense. he says given his views on central banking, jackson would be fine with having his image dropped from a federal reserve note. treasuries as hamilton won't disappear from the $10 bill and it might print two bills -- one with hamilton and one with the woman, to be determined. and taylor swift took on apple and one. the pop singer came out over the weekend in a letter to the company saying she would not allow her new album on its streaming business because apple did not plan on paying artists

royalties during a free trial. apple quickly reversed course, saying they will compensate musicians. tailwrote -- we hear you -- we hear you, taylor smith. -- taylor swift. and the founder of monster headphones is suing dr. dre for wrongfully pushing him out, saying they stole his design and money when they sold beats by dre dr. dre to apple last year. paul barrett spoke on "market makers" to explain who lee is and why he is selling out. this guy made a small fortune with high-end stereo cables in late 1970's says he is the guy who built the headphones. he said dr. dre did not sit down and put the electronics together . he is the guy who did it. he arranged for the design and manufacture, distribution.

he's the one who got it into the stores and now he wants his share now that it turns out the company is worth $3 billion. matt: i believe that he did not but the headphones together, but they have this idea to make speakers that morph into headphones and then looked for a contractor to do that to them. guest: this is often a dispute in business. you have someone with valuable intellectual property in terms of their reputation and connections. the new got someone who can actually build something. contracts get drafted and there are disputes over what the contracts mean. tooksay certain events lace that trigger a change of control clause and that meant -- matt: and lee signed it. stephanie: a deal this

successful, of course lost seats ensue. people will claim they are more involved than they were. how scared should apple be? guest: apple does not see this as a threat at all. they think they can talk this out before trial. real dangers whether he gets in front of a jury. of a judge decides and it's a matter of parsing contract language, apple may have an advantage. but if this gets in front of a jury, you have this sympathetic guy who said i toiled for all of these years and invested my whole small company in this and always been guys are trying to rip me off, a jury might go for that. matt: i recently bought a pair of monster dna headphones and they are fantastic. guest: monster is out of the beats is this and they are trying to get back in under their own scene. matt: and beats is using its own subcontractor. are making their

headphones in china, the way people make their headphones now. it has been full didn't to apple music, which is a much bigger operation. paul barrett was on market makers earlier today. insurers, health riding a wave of consolidation. we have the latest on dealmaking efforts, next. ♪

scarlet: we have been following anthem's $47 billion offer to acquire cigna. this morning, they reiterated their head and hosted a conference call to stress it is willing to suspend current share buyback plans as well as re-think a bigger role for the

cigna ceo to get the deal done. mark crumpton spoke with drew armstrong and jason gorman. mark started by asking why is it so important for the company and health insurance sector overall? the major importance to anthem is they could explant -- they could expand health care members and gain scale by doing this. they would become the largest health insurer in the country, having it to 3 million members across the entire united states. what are the major sticking point in getting a deal done? guest: one of the biggest sticking point is what will management be doing after the conclusion of a deal. anthem has offered a pretty high premium. there are a lot of synergies that could happen. a gets them into a number of states they are not in. but the big issue seems to be these are two established companies. they have been around for a long

time. cignahey are saying is says we have our way of doing things and we don't think you are doing a great job in anthem and unless you are going to guarantee a serious role for our ceo and some of our senior people, there may not be a deal to be had. about the cigna executives. what role will they play? guest: that is what is up for discussion. the ceo of cigna, there has in discussion that he would stay as ceo of a combined company and they have offered him a role of coo. he says he wants more than that, but when it comes down to it, you're talking about two prominent companies combining and there are probably some egos at play as well as a lot of money. we're talking about $47 billion. talk about the

consolidation in the health care sector. why are we seeing this now? guest: we haven't seen major deals in this space since 2012, after the supreme court upheld the affordable care act. we saw anthem and aetna were the two major companies that did about $4 billion and $5 million each. then, it has been pretty quiet. now that we are two years into the affordable care act and the companies have a lot of cash on their balance sheets and they've got more in terms of freedom ,rom a strategic perspective the cost of the affordable care act is waning and they have the ability now to go and do some big deals. mark: what about regulatory issues? there will be antitrust considerations, but one of the things that's important to know about how insurers operate, this is not like a retailer where you

have stores and 50's aids. a lot of these big five insurers are only in a handful of states. anthem operates private insurance plans they sell to businesses and individuals in 13 states. adding cigna would let them be in arizona, oklahoma and other places. these are regional businesses, so there is expansion to be had here. mark: and has made multiple approaches since last year. you're still no guarantee a deal was going to get done. guest: that's right. one of the reasons cigna has pushed back is they say they have 10% accretion in the first year that could double to 20% in the second year. there's probably some wiggle room with cigna saying you could probably up the amount of stock allocation. proportion ofthe board membership that can be in play as well. scarlet: that was drew armstrong

and jason gorman on a potential anthem-cigna merger. we have much more coming up on the bloomberg market day -- simulating the battlefield from florida. we will show you some of the most advanced training simulators coming up next. ♪

it is noon and hong kong. eu ministers are trying to hammer out a deal with greece.

market turned optimistic, but is it too early to tell us a deal will be reached in time? the: it would be one of biggest deals and pipeline history. the takeover offer shows low oil prices don't mean deals get cheaper. scarlet: before getting into the cockpit of the new f-35, pilots will step into a simulator. sneak peek get lockheed martin's virtual warfare training program. scarlet: good afternoon, everyone. alix: let's get straight to a look at the markets that are continuing this rally that has been under the way for most of the day. the p kind of around a resistance level and many traders are watching that. all in