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 all, you could call it a

strong merger monday. not only do you have lone star properties looking at a potential deal and of course, anthem with cigna and martha stewart -- scarlet: the headline is still greece. high likelihood of greece getting money is a lack of a negative rather than an actual positive. you see that highlighted how the euro is trading, which is to say little changed. stuck in neutral. analyst pointed out that the euro has a lot of shorts audit and the dollar run-up has been strong. he thinks the fed funds rate will dig tate where it goes. -- will take tate where it goes. you have to look at the bond market. the long-term yield, you've got the 10 year of and the two-year rising as well. it -- let's's take

take a look at the sectors within the market. here are the best performers -- the health care index, the financials up by .9%. alix: it moves with those rates. scarlet: and energy prices gaining. now to a look at the stories making headlines this hour. inx: a possible step forward greek aid. the greek prime minister is in talks in brussels and has offered a new plan that would raise taxes and and early retirement options. the head of the european finance ministers group says the plan is an opportunity to get the deal done this week. scarlet: it is broad and comprehensive, but they need to look at the specifics to see if it adds up and fiscal terms, whether the reforms are comprehensive enough to take off again.

hans nichols spoke with the vice president of the european commission about the timetable. next we are not there yet. done is still work to be before we can reach an agreement, but we need to work and on the commission side, we are going to work intentionally. greek banks are trying to slow down the strain on markets. customers will be limited to taking out $3400. scarlet: sales of existing homes rose last month to the highest level in five and a half years. the share of first-time buyers matched the highest level since 2012. the prospect of higher interest rates could be driving the sales. ,lix: anthem is not budging reiterating its $47 billion deal for cigna.

cigna has already rejected that did, calling it an adequate. said itoday, and them had made for offers to cigna this month and on a conference call, the anthem chief executive said he doesn't see any regulatory issues hindering the deal. there is ave consensus where there is overlap between our companies and no substantive regulatory issues are present that would prevent completion of the transaction. alix: a major sticking point is who would lead the combined company? the cigna ceo says anthem has not sorted out its growth strategy. talks hit a snag over who would run the company. sequential brands has agreed to buy martha stewart on the media. it is at a discount to friday's close.

martha stewart has made a long-term commitment to be the creative chief. sequential is a branding company that owns the jessica simpson line. alix: when is the best time to go to business school? one bloomberg analysis says getting a masters increases the older the graduate is until they hit 30. the cut off compensation for those who had jobs lined up when a graduate, it showed that paychecks above every year of age. surprisingly, it gives them an advantage pretty quickly. they begin to drop off steadily, falling to $110,000 at ages 36 and 37. i never went to business school. isrlet: i guess the thinking if you are too old and did not get your mba, you are floundering and just tumbled on

this as an option at the very end. -- somebody asked me how to be a financial journalists, i told them to go to an acting class. is that bad? coming up, lawmakers and ron are threatening the nuclear deal. the obama's ration says they will not agree to a deal unless inspectors can inspect the program. raciallyafter the motivated shooting in south carolina, many are asking why confederate flag is still flying at the state capital. rejected what a pipeline deal means for consolidation in the industry. we did hear promising news on the trees front, but still needs to be done before a deal is reached. and as ian bremmer said, greece is like the nba. you only need to watch the last five minutes. he joins us now. also with us is the co--cio of

greylock capital partners. so are we in the last five minutes now or are we in overtime? guest: the last five minutes takes a lot longer than five hits, just like the nba, with all of the missed cues and timeouts. deal that is sent over by the greek government and it turns out they sent the wrong paper. that's actually not the first time they've than that. from ally think patriotic perspective in terms of working as hard as humanly possible to get a better deal for the greek people, i give them good marks. -- in terms of their breathtaking incompetence, that is the challenge year. they don't want a greek exit. but the ability to make mistakes right up until the end to the point where anyone in europe, even that really doesn't want this to fall apart, might just say that's why the markets -- scarlet: good intentions are not

enough. think it has been so liquid and subject to last-minute news that you are either in or you are out. for the last two or three months, you get the sense that the people who wanted to position themselves got the position, even though it's late got worse, news prices drifted. today, all of that drift came back and they are reacting to prices we have not seen since early may. alix: how are you positioned in the market? prefer greece. there are two types of trades. the absolutely bowl trading downe -- the stocks are

like 70% this year. we see a better risk reward because we don't think greece is likely even if they leave the euro. 50% stock of the greek debt, so they could service that even if they leave the euro. all -- we are already seeing soft capital with banks limiting what they are allowed to just come in and take out. the potential for that to become harder is growing. i think we are moving toward a deal this week, but no guarantees. it's a very far move on that too falling apart. one of the big games being played here, even bigger than the game between greece and germany is a game being played between the prime minister and his own people. the need to have a sense -- there's enough urgency so that

when he finally cuts that deal his entire government doesn't walk out on him. the danger is he cuts a deal in the government falls apart. he has to be balancing between both of these sides and that does lead him to want to create enough urgency that this crisis gets worse and the greek economy ends up feeling more pain and the capital flight ends up growing. that is the danger here, not that anyone is trying to engineer the way forward to leave europe. scarlet: the biggest risk we hear is liquidity. the problems arising when everyone tried to rush for the exit at the same time. how does it complicate going longer buying into a position? just the expectation that something happens to move prices up and down. the question is unless you are committed or wanted to have any , it's one ofition

those trades in which either you believe there is going to be a solution, but you cannot find to -- you might be able to do it with the euro, but look at the flow of news every day and pretending to switch positions doesn't make any sense. what fascinates me is who actually has the upper hand in these negotiations. thatould make the argument european taxpayers are on the hook for a lot of money -- 300 billion euros is not chump change. does greece have the upperhand? guest: at the end of the day, greece thinks they have the upper hand because merkel does not want to see this fall apart on her watch. if anyone leaving, merkel is the institutionalist and a multilateralist. blame will be allocated, so in

that regard, the greeks feel like they have the leverage. merkel.s not just about as you see with the minister of finance in germany, there are plenty of cops to go around who are prepared to give the what for to the greeks when angela merkel herself is trying to be constructive. if you are the greek government in this environment and you felt like you have had a bit of the upperhand in a difficult economic position over the last few months, the closer you get to the edge, the more you recognize we are near the edge. you don't really have the upperhand when you are teetering on the edge. thank you so much for joining us. more coming up on bloomberg market day. we will be right back. ♪

scarlet: welcome back. alix: let's get a look at some of the deist movers in today's session. guest: starting with facebook. 2.9%, its highest level in three months because piper jaffray raised their price target to $120. that's currently the highest price target on the street. based it on the ownership of the oculus rift. he says he expects a shift toward virtual reality in the next 10 years. -- ifn the move, netflix we can bring that up, up 2.9%,

above its record closing after a massive adjustment to its price target, raising it from $600 to $950. the firm's analysts believe they can go beyond 50 million domestic subscriptions. and it is monday and that means some m&a action. today is no exception. sequential brands says it will buy martha stewart living. not much movement today, but the stock is at highs not seen since 2006. it looks like investors are locking in gains from last week. the stock popped 38% after the merger news hit. m&a, a home properties deal worth $7.6 billion -- lone for the deal,

giving it an equity value of point -- of $4.36 billion. scarlet: thank you so much. june 30 isn't just an important deadline for greece. it's also the deadline for iran and world powers to make a nuclear deal. officials are hinting the talks may go longer than expected. ian bremmer is still with us. we forget this negotiation is still having -- is still going. what kind of effect is it having? the deadline was set by people who want to get the deal done. if we can get it done by june 30, it will take a little longer. one of the key architects has been in the hospital and sidelined a couple of weeks and that has slowed it down. there's also some posturing and substantive disagreements over

how quickly they can ramp down in terms of enriched uranium. until you get those agreements -- both sides wants to get this done. no one wants to leave this negotiation and say we failed, certainly not because of an arbitrary deadline. optimistic this is going to happen, but i'm very optimistic it happens after june 30. scarlet: it's a suggested deadline. the iranian parliament passed a law banning access to security sites for scientists. it is a draft law and the united states president has moved hard to get the deal done. the u.s. congress has said we are going to be much tougher than the president. this is the iranian parliament saying if you have a democracy where the congress is going to be difficult, we can do that. there is a lot of face being shown here.

there's a lot of relevance, but at the end, the countries negotiating here are not going to accept there will be inspections on military sites. that is ludicrous on its face. there still a lot of discussions, but we are not going to see this bill as it drafted be codified into law. already exporting 1.4 million barrels a day. what happens if there is a deal? one of the reasons it's a good deal for the united states is by the end of 2016, we will a million additional barrels a day coming online from iran. that's why the saudi's don't want a deal. i don't blame them, but the americans in the saudi's have very different interests on this and many other things. so the united states is pushing for something that is good for the american economy. happens, opec is effectively destroyed.

it has already been marginalized. scarlet: they are not cutting production. ian: everyone trying to maintain their market share and influence. the saudi's have the ability to do the most. for anothers on million, the iraqis are probably producing another 700,000 barrels -- despite the fact isis controls about 22% of the territory, they don't control where the oil lives. terroristrly a dynamic and i don't think enron deal is priced into the market yet. president obama wants to get the deal done, but he's also a lame-duck president. sense -- it's not like he was having an easier time getting anything through. you could say he's been a lame-duck for five years or he's still in orton. congress has basically given him a free hand. they have postured a lot but at

the end of the day, have a couple of months to review. it's more like eight he'll get stunned by july 7 or later. if it goes later that in congress gets a longer term to review the iranians are looking to get sanctions off do not want. there's a somewhat hard deadline coming up. don't think obama's status in terms of he's not going to be in office a year and a half, i don't think that has any play on the iran deal. scarlet: thank you so much. ahead, after the racially motivated shooting in south carolina, many are asking why the government still flies the flag. or on that, next. -- more on that, next. ♪

scarlet: the racially motivated shooting at a lack church has run the debate of the

confederate flag front and center of the presidential campaign. the flag is hoisted next to a civil war monument. some say take it down and others say it belongs there. joining us now is john heilemann. when jeb bush was the florida governor, he said the flag ought to go to a museum where it belongs. his stance has evolved a bit here. actually --sh did he was responsible for getting the flag off the florida n into a museum. a lot of presidential candidates want to have this both ways and say they states rights issue. they understand both sides, but it should be up to the state and that is basically where jeb bush is now. says he's not going to tell south carolina what to do. the bigger news is it looks like south carolina, we're going to have a call from the governor and it looks like the governor is going to come down in favor

of taking the flag down from the capitol grounds. the ap isooks like confirming lindsey graham is also seeking the removal of the flag from the ground. how do you see this snowballing? john: we saw george attack he come out of a full throated way and say he thought the flag should come down. it seems to me if the south carolina state legislature decides to go along with the governor, assuming the governor is calling for that, if the legislature goes along with it, that could this issue to rest and allow a lot of republicans to applaud what happening and move on and not have to talk about it anymore. you so much.k make sure you tune in tonight because congressman jim clyburn will be journey -- will be joining john and mark on "with all due respect."

i'm sad to say i must say goodbye to you. we are looking here at mario draghi and the greek prime minister -- that meeting lasted about half an hour. we don't really have any headlines yet on what they talked about. the greek government says the issue of debt and financing must be addressed. the rhetoric continues. but we have not seen any results about yet. i'm going to take off and say goodbye. alix: a lot more coming up. it is m&a monday. we're talking about williams and energy transfer partners. ♪

alix:

president saying the ecb will help secure the country babies is as long as greece is in an aid program. a greek government official on a condition of anonymity. the government said it is ready to legislate minimum-wage increases and says the proposal for corporate tax rate is at 29%. we also have a greek government --icials say that saying saying that the eurozone will be buying ecb bond. there are more support networks for greece.

we want to get straight to the top stories making headlines this afternoon. new york state police say a search for to prison escapees is being focused on an area west of the prison. about 300 officers searched a world area of allegheny county in new york where two men who resemble the inmates were spotted near a rail line. meanwhile, the items recovered from a remote hunting cabin might be linked to the two men. they were sent to the last for dna testing and other testing. justices ruled 6-3 on monday against stephen campbell. shooting toy,web but sold it to a company in 2001.

the justices declined to rules, saying it would best to roll in his favor saying it would be up to congress to change cap laws. -- patent laws. andctory for farmers marvin laura harm, who claimed they were losing money they claimed was outdated and ineffective. for were fined $65,000 trying to get around the program. has a program for coffee farmers and will commit a next her $30 million to the program. twitter is saying it will only consider candidates who can make a full-time commitment to twitter. twitter had a successful stock market debut in 2013 but still

has yet to make a profit. $48 billion is not enough. energy company williams is rejecting the energy transfer $64 million share takeover offer. for energy transfer, it would be ceo and deal junkie kelsie warren's latest acquisition. and it would be the largest the pipeline industry. joining me is michael kay, bloomberg intelligence analyst. michael, good to see you. michael: thanks for having me. wire we seeing a deal in the transportation sector, which is one area that has held up well with lower oil prices? michael: the answer is growth. partnershipsonal have grown, it has been hard to grow the distribution because of the incentive that they have

with their general partners that have spurred a lot of m&a. alix: meaning they want to kick it back to the general partners. uphael: yes, and sometimes to 40% of what the payout is. sometimes that is impeding growth. that is what happened to williams when we insist that it to acquire the mlp. has goneerage ratio down, and that was part of the inference for the acquisition. alix: as they roll up their mlp, they will have better costs and more money due to their own and a day. why would they want to be pot -- to be bought? michael: that is why you saw been rejected. alix: but everyone has a price. michael: and williamson have to prove they can grow on a standalone basis better than with the equity transfer to energy. they will have to prove that they will be able to do what they would have done with energy

transfer. shareholders will wonder why they did not accept some sort of offer. almost $400seen billion worth of deals this year in the natural resource space. deutsche bank estimates it could be as much as $800 billion once the year is out. what will be the catalyst? will it be in the transport somewhere else -- in the transport space or somewhere else? michael: what we are seeing now is 2006 and 2007 is more of an issue than 2015 because that is when you will see a lot of the drillers budgets take place and affect infrastructure. slower goings go forward, that is why they are looking to m&a to grow. the possibility of slower capex.g is slowing

alix: really fascinating. thank you so much, michael kay. simulating the battlefield from sunny florida? we will show you the defense industry's most advanced training simulators. ♪

alix: geomet. i'm alix steel. -- welcome back. i'm alix steel. obtained it [indiscernible] ine agreed to a lifetime ban 1989 from baseball after

investigation concluded he that on the to win during his time as manager. he denied the allegation before admitting in 2004 that he bet on natty to win while he managed the team. he is on the permanently suspended list and is ineligible for the hall of fame. is close toomaker the sponsorship deal with the national football league. bloomberg news is reporting that hyundai would replace general motors. the company was paying $25 million per year, not including advertising time bites. and the knockout round of the women's world cup is tonight. they have already had an upset in ther columbia tournament. the host country is still in it at canada beat switzerland 1-0. up next for the canadiens, a meeting with either norway or

england on saturday in vancouver. that's a look at the top stories at this hour. time now for a look at the markets. just 15 minutes before the closing bell. the dow is still holding on to its triple digit rally. >> the nasdaq did hit a record high early today on hopes for a greek resolution. right now, the nasdaq is coming in at the strongest, and the s&p is slightly higher, and the dow is about a. let me take you to my bloomberg terminal to go deeper into this rally. nine of the 10 sectors here are higher today, led by energy, financials, and health care. the health-care sector is jumping to on all-time high today as speculation continues to the delay. utilities continue to struggle

is down about zero point 4% right now, going back and forth into the red. that is despite bernstein recommending the sector. let's look at the 10 year yield. they are also trading near the highs of the day. the treasury is off with the 10 year yield, on pace for it best gains may 11. best gains since may 11. the fix is going the other way, down for the fourth time in the past five sessions. now, about 12.5 or so. thebiggest decline since may 13 level and falling to a new monthly low. told is down by about 1.5%, headed -- gold is down by one 1.5 percentby

headed for its biggest low of late. no fear and no love for gold. good to see you. alibaba's run at amazon is ending, at least for now. the chinese e-commerce giant said it is ending its us-based competitor with amazon. what does this mean? emily chang joins us in san francisco. does this mean that alibaba is giving up on 11 main altogether? emily: they are folding it into a social commerce site called open sky. it is not necessarily good news. basically a part amazon ynd park at the -- part ets commerce site in the u.s.

it is not anything i've ever used and it was not a great sign that just after a year after opening the storefront it does not want to continue investing accept after open sky. 11 main also being folded into open sky. the way they are spinning it is that open sky and 11 main will be joining forces and that they alieve together they will be combined stronger company. policy has been today before you marry. they sort of float with the a little bit before making an investment down the line. -- flirt with each other a little bit before making an investment down the line. but it is not happening here. alix: what are the broader problems alibaba faces as it tries to expand its 50% outside

of china? emily: number one, he does not have the brand name that consumer facing brands have in the u.s. it has that in china, but not in the u.s. and our e-commerce landscape is changing dramatically. on the one hand, amazon is entirely dominant. and then you have companies like pinterest lunching by buttons, facebook and twitter as well. what we buy on the internet is changing dramatically and alibaba doesn't want to be behind. they want to be at the forefront. an e-commerce site like 11 main certainly seemed like an old way of doing things. cap.com is an example of how quickly things can go wrong -- fab.com is an example of how quickly things can go wrong. if they do things like other companies like that -- like snapchat, like list.

--lyft. alix: thank you so much. you can watch bloomberg eastern -- bloomberg west at 4:30 p.m. eastern today. cory johnson traveled to the heart of the simulation industry, orlando, florida. before troops are deployed to the latest technology is the floyd. combat -- is deployed. all of itf combat and emanates from florida. >> there is not a single soldier or airman or rena has the floyd into afghanistan or iraq that has not trained in some way on a device that was received and delivered here to central florida. hundreds of simulation

companies are all located here in central florida. retired air force general tom baptiste heads up the national center for simulation. -- has beentin is building simulators here for the past 40 years. $45.6 lockheed martin's in sales was generated by training. help pilotsulators get combat ready at a fraction of the cost. real f-16 can cost $10,000 per hour. a simulator is just $1000 per hour. the pilot can actually train the full spectrum of admissions they -- of the missions they want to fly. and this simulated humvee with a 53 caliber gun and a 300

60 degree environment can give them a sense of what it's like to be in this -- in the field. more than i $.5 billion in simulation contracts sold to the dod. and now simulator designers are starting to work with virtual reality. another tech tool to make simulation seem like the real thing stop -- the real thing. emily: tory johnson joins us now -- alix: cory johnson joins us now in studio. cory: you relaxing when you saw me should the machine gun. alix: jester outfit and the shooting. -- just your outfit and the shooting. cory: it was not exactly the right uniform. and it's not just that heavy gear, like the cool room i was in.

like a 3-d jungle or 3-d falluja or something. what is interesting is a step up the training from the simplest stuff, from just looking at a computer manual on a regular toeen to using a joystick change something that would appear on a computer screen. people spend less time in the air and more time in a simulator so that the time it been in the air is that are spent. -- the time they spend in the air is that are spent. spent.tter oculus half-dozen times and i got to use the thing that lockheed martin is using, which is similar. but the opportunity to simulate the experience of flying or a jet in particular is something they want to get people at much time with as possible, but in a virtual reality setting.

why is it all in orlando? cory: great question. it is there because it has always been there to some degree. all the way back to the 1950's they combine resources and training and there was an exist maybe training facility -- an existing navy training facility nearby. the decisions about how to double the money out are made in orlando. right around the place for all the government offices are our simulationndreds of companies that have different aspects of this business. alix: fascinating. not just known for mickey mouse. as always, good to have you here. still ahead, forget about greece. forget about the fed. strategists are staying bullish on the market. ♪

all the recent headlines on greece and the fed, u.s. strategists are remaining bullish. forecasting a 4.5% rise by year it'snd optimistic -- and the most optimistic all since 2011. michael purvis joins me. he's calling for an 11% gain in the s&p 22350. good to see you. to 2350. s&p up good to see you. my claim ist of predicated on expansion. about half and half. when you asked the question about what is great about u.s. stocks, fundamentally that we put in the context of what is happening with the central banks

and the d -- alix: the answer is both. michael: the fundamentals market are not great, but on the other hand we have seen the pe expand to a level they are not now. from 18 -- we have gone from 18 to 21, 22. against the backdrop of very little inflation. i'm bullish. alix: some of the chatter that makes investors nervous is the lack of volume we have seen for years. it is not a new phenomenon. and that concern is that if second continues, that leads to lack of liquidity and at least two major volatility squeezes if people want to get out of positions. what do you make of that? asset classes do

strange things. in the middle of october we saw go to theolatility level that treasury traders had never seen it. alix: it is not supposed to be like that. michael: and the causes are often discussed. it is big banks stepping away. it is algorithmic training -- trading. a lack oflso, maybe big ideas for hedge funds. the oilook at positioning and so forth, you see a lot of extreme positioning and that helps to magnify this volatility issue. alix: it sort of eggs the question of who wind up leaving the volatility -- the rally -- it's sort of banks the question ng dryly.nds up leadi

-- the rally. isn't that a concern? s&p -- i have a chart that shows every time the s&p makes a new high, the percentage of 200 day stocks have been falling. caps, look at the smaller whether it is the russell 2000 or others, you can see them improve in the net -- in the same metrics. one of the reasons for the rally today, most of the major indices are up year over day. the s&p is probably not far and -- far behind as well as the doubt. alix: what about transportation, though? michael: that has been a troubled child, but if you put it in these terms, it's bullish.

it's not a glaringly strong signal their, but if you put them in context, these things have outperformed the s&p and the broader indices for so long that some sort of meaner version on those ratios is to be asked acted. -- to be expected. alix: good stuff. thank you so much. you are staying with me through the close. stocks are headed into the green into the close. and if you are wondering what will cause the market correction , two things. find out what they are. ♪

alix: we are moments away from the closing bell. this is the bloomberg market day . i'm alix steel. ♪

[closing bell] alix: you are looking at stocks holding onto a rally off the highs of it the day. is off by 105 points and the dow is not alone. the nasdaq closing at another record high. you've got the russell 2000 closing at another record high. and the s&p, nine of the 10 withrs finishing higher growth in the cyclical names like energy, health care, financials leading the way. and of course, you've got a crazy m&a action. they don't call it an end a a monday for nothing. joining me now is joe weisenthal, the bloomberg markets managing editor. nonetheless, the yields move