markets day. mark: janet yellen returns to the senate for questioning. matt: mario draghi sounds off. the ecb president grants more assistance to greek banks. have we hit a turning point in the greek crisis? mark: jpmorgan in hot water -- we will tell you about a secret the bank cap from investors in one --kept from investors in one troubled health-care company. mark: good afternoon. welcome to bloomberg love headquarters in new york. i am mark crumpton with matt miller. matt: i would like to get straight to markets. we see reaction to mario draghi's statements. he did not touch interest rates, told us nothing new there, but made comments about greece. you see the s&p 500 gaining

almost two thirds of a percent, the nasdaq gaining almost 1%. take a look at treasuries. we can see there was a little bit of buying in the 30-year bond. the yield down to 3.11%. at 10-year note unchanged 2.35%. the euro was the index -- most interesting of the big assets we looked at today -- coming down for the first time since, i believe, may 27. it has been showing resilience, and now coming down now that mario draghi is showing a willingness to throw another 330 billion dollars. we begin with breaking news out of chattanooga, tennessee.

officials say at least two military facilities were attacked in shooting instances, including one at a navy recruiting building. police say the active shooting situation is over but there is no word on what happened to the suspect or suspects. the mayor calls it a horrific situation. at ays an officer was down reserve center, but did not release details. the community college campus is locked down. the white house says president obama has been briefed on the situation. police are expected to hold a news conference in this hour to possibly release more details. matt: greece finally got much-needed good news, with creditors agreeing to open talks on a third bailout package that would provide more support to shuttered banks an and income loan to cover debts. mr. druggie: it is not controversial that debt relief

is necessary. the issue is what is the best form of debt relief within our framework, within our legal institutional framework? i think we should focus on this point in the coming weeks. also also today, --matt: today, greece's fellow states in the 19 currency countries say they are willing to open talks after athens approved a series of tax hikes and economic reforms. the interesting thing is they will have to let in the other countries in the eurozone, there are 28, but of course not all of them use the currency. they will need the votes. let's turn to puerto rico, the situation there -- they are trying to deal with a major debt crisis. a puerto rican agency has failed to send funds needed for bond payments. the island's legislature has not

appropriate the money. chuck schumer and richard blumenthal propose that puerto rican agencies be allowed to file for chapter nine bankruptcy protection like u.s. cities. puerto rico is a whopping $72 billion in the red. goldman sachs posted profit that fell 49% from a year ago. the firm has much higher legal costs tied to a potential settlement of mortgage-related investigations. revenue at citibank fell, but so did operating expenses. ceo michael corbat has been selling businesses and getting out of consumer banking in more than one dozen markets shares are up 3.5%. mark: ebay is selling its with a price tag $925 million. the online auctioneer reported second-quarter sales that be analyst estimates on the of its

breakup from transaction business paypal. investors are eager for indications on how ebay list of on his own after paypal starts trading as a separate company monday. ebay has suffered with user growth after a major debt of the last year. -- data breach last year. matt: walmart says the counterattack to the amazon prime day promotion paid off, putting thousands of items on sale online and yesterday was the biggest ever day for same day pickup. amazon has not released figures. one analyst says sales were up around 80%. mark: president obama is continuing his push for a more fair justice system as he becomes the first sitting president to see the inside of a federal prison. he visited a medium security facility for male offenders near oklahoma city, oklahoma, and he also met separately with law enforcement officials and nonviolent drug offenders.

matt: lance armstrong is back at the tour de france. this time he is on french roads to raise money to care leukemia. he is -- cure leukemia. he was stripped of seven consecutive titles for building, and now persona non grata, but says he remains committed to the work he was doing. lance: my fight with cancer was not a made up thing and starting livestrong and building something for 15 years was not a made up thing, and it is important to me. those are things that regardless of what people think i am going to do. armstrong is writing again tomorrow. he dismissed questions about building on the tour. certainly he is not doing that this time. mark: those of the stories we're following this hour. matt: coming up in the next half hour, fed chair janet yellen is set to testify before the senate banking committee. we tell you what to expect. mark: dunkin' donuts is taking a

shot at starbucks with premium tea. we will tell you about it. matt: google earnings are out. betterrs want to see revenue growth, especially in mobile. can the search giant deliver. european central bank has granted more money for greek banks. mario draghi affirmed greece's place in the euro and emphasize the need for a stronger, fiscal union. : this union is vulnerable, and at the very least does not deliver all the benefits it could if it were to be completed. so, the future now should see further steps on integration. matt: joining us from

washington, the former u.s. executive director of the imf and now public policy fellow at the willow center. you about one thing mario draghi said, it is uncontroversial that brees will need a haircut. it is, kind of, the 900-pound elephant in the room. they cannot afford to pay this debt. schaeuble says they should leave the eurozone, to erase it. what you think the solution is? meg: i think the solution is they will do something much more generous in terms of debt relief. i do not think it will be an outright haircut, because it is not permitted under the treaty, but the europeans can agree to s,ch longer repayment period so effectively greece pays no

debt service to the europeans for a couple of decades and that would give them time and ofxibility to implement all these challenging structural reforms they have agreed to over the weekend and now the parliament has approved early this morning. so, that would be helpful. the imf has signaled that would be acceptable, but it does need to be a significantly longer grace period and much longer maturities. mark: ms. meg lundsager, we still do not know when the greek banks will reopen, if they will ease limits on catholics -- cash withdrawals. could that not throw a wrench into the whole situation? meg: it could. what president mario draghi signaled is the ecb is providing la, as you mentioned, but also as the negotiations get

started, and you see several loading in approval of starting -- voting in approval of theting negotiations, that ecb could go on, and there was a signal that greece could participate in normal quantitative easing if it adheres to a program, and that would be awful as well. you aboutme ask something else mario draghi said that is more controversial -- he said the package that the eu put together in parliament voted through is meant to spur growth, healthy economic situation. i do not think many americans would think that a huge tax hike would be a good idea when you want to spur growth. you think that is really what is behind this austerity policy? meg: i think what has been behind the austerity policy has been how difficult the financing is for the greeks and the reason tax increasethis is because the greeks have not

been effective on promoting tax collection on income tax. what mario draghi was referring to was structural matters that would make it easier for -- to shotto shot, -- shut. i think it would be a challenge for the coming years for the green economy to grow and they will need continuing support from european partners. i would to see the europeans investmentignificant in greece, find some projects that have high visibility and create some jobs. mark: ms. meg lundsager, this whole scenario that has been going on for years now, it has crippled the greek economy to the point where we have teenager when and hard-breaking -- we have seen a dramatic and heart-breaking declined for the citizens. is any of this, with the ecb announced, what the parliament voted on -- is any of this going

to be enough to dramatically improve the living standards of the average person in greece, and how long might that take? meg: i think you are right that it is going to be tough for greek citizens, especially the lower-income ones, and it will take time before they see improvement in living standards. i think the europeans will have to continue to support greece in one form or another, not just through this debt relief, but also through, possibly, some kind of transfers that will help support the lowest-income citizens in the country. this will be a real challenge and, i'm sorry to say, i think it will be very tough for a long period to come. i do hope the rest of the greece -- greek citizens that are better off step forward, pay their taxes, and health to be part of the solution, and -- help be part of the solution. matt: appreciate your time. meg lundsager. mark: still ahead, said chair

fed chairen is -- janet yellen is back on capitol hill for a second day of questioning. we will tell you what to expect next. ♪

bloombergome back to market day. i am mark crumpton with matt miller. matt: let's go to julie hyman with a look at the biggest movers of the session. julie: we have been talking about netflix, but i want to talk about another stock at a record -- starbucks, with an outperform at eei g, they were initiated with an out-perform, and it is up almost 1%, not a the gain, but he says

company will be a pioneer on digital ordering and delivering. we're also looking at lending club today. , despitek is higher the fact the treasury department has been asking for information from online lenders looking into --peer- of here to-peer lending. pacific crest has a note saying concerns might be overdone. the stock is done, for context, 43% year to date. phillips morris was out with earnings and beat estimates because of growth in europe. philip morris up 4%. ria and reynolds american also gaining steam. i wanted to look at cigarette volume versus cigarette pricing.

this chart comes from bloomberg intelligence. you can find it on the tobacco dashboard. we have seen declining volumes quarter,percent last however on the flipside, look at pricing, at least here in the united states. this is average price per pack going back to 2004. jump, itafter this big has trended slightly higher. this is just in the united states. a company like philip morris is seeing growth in europe, and it looks like it is offsetting currency downsides in the numbers. they have actually been able to raise prices. some of the economies were things are improving, people are willing to pay up for cigarettes. matt: the beauty of a -- selling an incredibly addictive drug is you have great pricing power. julie: yes, that would be one of the advantages. matt: thank you very much. mark: julie hyman.

another big name is leaving espn. colintest departure is coward, who has anchored the espn radio morning show for 15 years and he has also anchored tv programs. withearlier parted ways bill olbermann and simmons. ."tt: "the herd i will follow him wherever he goes. thoseight, espn honored in sports, and caitlyn jenner stole the show. she received the arthur and courage -- ashe award. in thee jenner, she won electric, and as caitlyn jenner, she will push for tolerance. the u.s. women's soccer team was named best team. steph curry, and ultimate

fighter ronda rousey took top individual espys. mark: no more "rocking in the free world" -- say it ain't so. neil young says streaming is the worst audio in history. cassettes,hat analog a.m. radio sound better than streaming. using big proponent of quality audio. qualitytly launched a audio service. matt: it is easy to be a component of quality audio when you are a super millionaire. angela merkel met with three dozen students. a girl said her parents came to germany for a refugee camp in lebanon four years ago and were still waiting a decision on their asylum application. angela merkel initially responded with talking point but

was taken aback when the girl began to cry, and told the girl that thousands of people in refugee camp in lebanon cannot all come to germany, but i thought it was a moment you rarely see -- a human moment from angela merkel. she is, is very stoic, east-german woman, and at a time when she is also saving another country -- it is difficult for germany to save the whole world, you know? they are doing as much as they can for greece. is a humanaid it moment. she is the daughter of a minister, a preacher's kid. matt: yes, she is. well, hopefully, she will help that girl's family out. i'm guessing when she gets back to the office, she will make a call. mark: she has been getting beat up on social media. matt: she has some clout. mark: and for other reasons. she made some other non-pc comments that will get you killed on social media. mark: we are 15 minutes away from janet yellen's second day

of monetary policy testimony before the u.s. congress. matt: phil matt in the joins us. the chad -- the fed chair will be testifying before the senate, and she had to face house lawmakers yesterday. ?ow did she do it will always be raucous, but her message was cautious about the u.s. economy. take a listen to what she had to say. economyllen: the u.s. also might snap back more quickly as a transitory influences holding down first-half growth stayed and the booth to consume -- boost to consumer spending because of lower oil prices shows through. phil: more of the same today. question and answers, and things

tend to get exciting for but not as exciting as in the house. 60 lawmakers who have strong opinions. some do not have the best grasp on the subject matter as well. always entertaining on the house side of things. mark: [laughter] that is an understatement if i ever heard one. speaking of which, does the testimony, the back-and-forth, -- meaninged meeting because it is a presidential election season? phil: i think it does, but in the house there always of war reelection. they are always looking for the soundbite they can send home. in the wake of the financial crisis, the fed has been a punching bag and if you can get a one-minute long youtube clip of yourself banging the fist yelling at the fed chairman, it looks good, no matter what party you are from. i think there are legitimate issues congress has, not just with monetary policy, but on the

regulatory side of things and the transparency side of the federal reserve. that is what you see them dig into most and when you get to the senate, wonders more focused and -- when it is focused and more directed, that is what you will hear. matt: do you think we will hear a push to audit the fed? phil: there is more of a nuanced legislative push. there is a bill out not entirely focused on the head, but pieces that go to the fed trying to bolster transparency, trying to make the new york fed president from new york a senate confirmation. that will be testing to watch -- not so much the ron paul side of things, but an iteration of it. mark: phil mattingly from capitol hill. thank you. do not forget to tune into the testimony, 2:30 p.m. new york time. -- we will00 p.m. take it when the q&a session. mark: you are confusing people.

matt: i'm trying to give people a decent calendar. coming up, dunkin' donuts is taking shots at starbucks with a premium te. a we will tell you all about it. ♪

dunkin' donuts wants to take on the premium t market, testing new varieties in hundreds of locations in chicago. matt: customers will be treated to blends of black, biscuits, chamomile, mint, and one called harmony week to -- how many week. mark: starbucks says it is worth $100 million globally. matt: they want a piece of that. mark, it has been a pleasure. ♪

matt: welcome back to the bloomberg market day. i am matt miller. storiesve you top follow -- crossing the bloomberg

terminal at this hour, starting with a new poll that indicates hillary clinton's standing is falling among democrats. according to a new associated view her asvoters less decisive and inspiring that when she launched a campaign three months ago. a special programming note, " with all due respect" will broadcast live from hillary clinton's headquarters in brooklyn tonight and go behind the scenes with a special guest at 5 p.m. eastern. the wisconsin supreme court has handed republican presidential candidate governor scott walker a victory, and in its investigations into whether the recall campaign coordinator illegally with conservative groups. it is now over. from one republican hopeful to another, many of jeb bush's biggest backers work at goldman sachs. filings show that more than 50 goldman executives and employees gave the former florida governor

more than $144,000 in the second quarter. the next best storm was investment firm newberger bergman, who -- which is run by his second cousin, george walker. jeb bush, former president, george herbert walker bush, is hospitalized today in fair condition with a broken bone in his neck. he fell in his home in kennebunkport. he is 91 years old, a spokesman said the president is fine and will be wearing a neck brace. those are your top stories for now. coming up in the next half hour of the bloomberg market day, mining giant bhp billiton wrote down shell assets, but it has enough, and is that there was never a question greece would remain in the eurozone, at least according to ecb president mario draghi, as he released further aid to greek banks. he said he operated on that thought. and just about anything goes in the $800 billion leveraged loan market.

we will tell you about a secret jpmorgan cap from investors. all that and much more coming up. google reports second-quarter earnings after the close today. the search giant is expected to $6.73 a share on revenue of $14.2 billion. earlier today, betty liu and mark crumpton spoke with morningstar senior equity analyst rick sommer and editor at large cory johnson. rick talked about what to expect. rick: quarterly results for google are a mixed that because we do not get a lot of information, nowhere looking primarily at three things. first of all, we have a new cfo we can listen to talk about revenue growth. certainly, revenue growth has decelerated and understanding the deceleration is important. there is hope and promise of operating margin expansion. we have seen operating margins decline over the last couple of

years by 500 basis points and understanding the two victory of how that can expand -- the trajectory of how that can expand is critically important for shareholders. overhanghe regulatory going on with respect to europe. betty: those will be key issues, rick, but what gets attention, many times, is the moonshot projects -- the driverless car, -- is it fairhers to devote some time to looking at those projects, or are they just too small to really impact google? rick: no, it is absolutely fair, and one of the things we are araing for is the patrick and's and we have a new era beginning. there are different milestones. internal estimates look at to and a half million dollars of annualized rnd put into these

discretionary projects. normalizing that means we could threen extra 2.5 to dollars of eps. understanding how they are measuring, managing those projects absolutely is key. history has shown they do not like to get a lot of attention to those details. thinkit is amazing -- you -- you wonder if a new cfo will bring wall street spending, or will be a numbers cruncher and rain those things in. the new cfo -- this will be her first conference call -- but i was there, the bigger issue for google, at least in my opinion, is the cost per like collapse -- click collapse. they have had more clicks, but lower value per ad. there has always been the hope that the value would stop falling, yet every quarter the cost per click continues to fall. everu see an end in sight

to this? rick: there are a couple of things we are encouraging clients to look at. let's not get overly focused on the cost per click number. the way google has presented it has been over-aggregated. there is insight that some of the cost was being drugged down by youtube, for example. these are different avenues per dissipating at different parts of the marketing funnel. to thisin the internet magazine with unlimited amounts of inventory. we look at it from the demand side for advertisers. as advertisers continue to increase budgets toward gluck, that is by a margin fantastic thing for google as a platform. getting lost in the new wants of the cost per click is troubling. about $69 on hand, billion. is the company spending it wisely? rick: our view is yes. i would say at some point we

need to ask that question, looking at the large cash award -- when will we see some return to shareholders? in 2015-2016, the question of dividend should be on the top of investor minds and something management should address explicitly. sommer andwas rick cory johnson. the biggest seller of smartphones in china -- the vice president of operations set down with emily chang. one question he addressed, when will they start selling phones here in the united states? >> i would tell you if i knew, but i do not. we do not have a set date. selling phones is a huge step up. it is a big undertaking. operationally it is complicated because you have to have after -sales service, customer support. it takes a huge amount of work,

plus localizing the hardware. we will work our way to that, but we are not quite ready yet. emily: are you saying you will someday? we will someday. emily: what will it take? months, years? it is no less than one year and potentially much more. emily: on a more serious note, it has been said one of the reasons you are not ruling out the phone is because of intellectual property issues. how protected are you if you start selling phones in the u.s. -- are you worried about patent law and getting sued? hugo: we are always worried about patent licensing, intellectual property, and so on. every company has had to deal with that. there are two things we are doing that take time. one is systematically taking patent licenses around the world. if it is a patent, and essential

patent, of course it needs to be licensed, and that is what we are doing. it takes time. we are meticulously talking to everyone we need to talk to. secondly, we are building our own portfolio patents for defensive purchase -- purposes. you have to have that. think of it as a war chest. 2000 patents.over it is a lot. we are acquiring patents. that is one of many factors that determines when we are able to enter certain markets. matt: you can watch the full interview tonight on "studio 1.0 " at 7:30 p.m. eastern and 7:30 p.m. pacific right here on bloomberg tv. coming up on the bloomberg market day, greece family got so much-needed good news today. we will take you live to athens when we come back. ♪

matt: welcome back to the bloomberg market day. i am matt miller. let's see how commodities prices settled in new york trade, and for that, we will bring in alix steel. thanks for joining us. and iranian crude tanker leaving the gulf, does that mean we will see oil prices tank as well? alix: this is interesting. it could be the first sale that is the complacency iranian deal took place. they could hold as much as 2 million euros of crude. it is headed to singapore. this should not be happening until the agreement is implement

it is a staggering headline that caught my eye and oil is down, mostly because we see the big rally. maybe they expect the agreement to be finalized by the time the tanker gets there. alix: possibly, if it takes a long time, and also, certain companies, if they do not important to a lot of iranian oil, could am adhering to the sink is, be able to import even more. it was striking to see the storage of oil leave iran, the persian gulf, and what will it be as the market comes online and how much will be released and how quickly? storythe more interesting in oil since you pointed out yesterday -- pointed it out yesterday to me, new mexico is opening up -- mexico is opening up its oil,. alix: we saw an auction yesterday that i could say it was a failed auction, only two blocks sold out of 14.

big oil companies like chevron, work but dide prep not end up bidding for the actual project. this was a relative setback. a huge deal for mexico. they are hoping to raise over $60 billion over the next five years by doing this. it is a big deal. matt: so, why didn't people go in there and did? -- date -- bid. i didn't know that they pay half of their revenue in texas. alix: that is part of the reason you want to see mexico diversify away from pemex. they did not participate in the auction. uncertain --ittle uncertainty. 30%e was only a 20% to

possibility of commercial success, not that great. we had low prices --low oil prices in general uncertainty. matt: in a climate of low prices, they are offering their worst assets for an auction, but they were completely kill you when it is time to get the tax bill. alix: it could be worse. 30% -- a lot of tables in vegas give you a better chance of making money. i want to talk about bhp billiton. they are writing down a lot of assets. banks are saying they did not write down enough. alix: they wrote down shell assets by $2.8 billion. they are valued at 24 billion, more than 40% of what jpmorgan thinks these assets are valued at. it is a huge discrepancy. it is not the first time bhp has had to write down their assets. they already wrote down there permian and other places as well. watch this. it will get interesting as we

continue to see oil prices not rebound to the $100-level. 40% higher. huge difference. matt: we will watch it i am sure. you will definitely be watching and then i will ask you about it. janet yellen is going to be speaking. she is just giving prepared remarks. you can read those anywhere, even on the internet. we will take you live to janet yellen's testimony as soon as the senate starts peppering her with questions. stay with us here on bloomberg market day. now i want to give you a look at some of your top stories -- an update on a breaking news story out of chattanooga, tennessee. there is a report that four u.s. marines and a gunman are dead following shooting incidents. the mayor calls it a horrific situation. lee university and state community college campuses are locked down.

the white house says president obama has been briefed on the situation. police are planning a news conference minutes from now. volkswagen says it is taking steps to return to iran after the historic nuclear accord with the west. economic sanctions have long prevented carmakers from doing too much business in the islamic republic. german firms are now eager to return full force. deutsche bank analyst say german companies could reap an additional $5 billion in revenue -- just the carmakers -- if exports returned to the pre-sanction levels of a decade ago. unitedhealth group is raising its full-year forecast after reporting for your profit. it was helped by its booming technology and services unit. share.e in at $1.62 a up from $1.42 one year ago. thatare predicting revenue is up from $143 billion in earlier forecast. brad pitt is urging cosco to

s from caged egg hens. he says they are contribute to animal cruelty. birdser says "caged suffer atrophy of muscles and bones, adding that cages have been banned in california and much of europe." cheerleading is not just fun in california, it is now a job. approvedwn has legislation recognizing professional cheerleaders as employees. they are entitled to minimum wage and overtime pay. they will also get sick leave and other labor protections available to team and staff members. those are just some of the top stories we're following for you at this hour. after greek parliament voted late last night to accept fiscal reforms, eu leaders have soften their tom -- tone, green to lend a bridge loan to pay back the

european central bank and the imf. after the loan was announced, the ecb agreed to help greek banks which remain closed with strict withdrawal limits, further denting the greek economy. draghi: the idea is to move as fast as we can come but also with a due degree of caution. matt: let's head to athens where david gora is standing by. david, yesterday we saw you there -- protesters, mostly peaceful, but definitely in large numbers and making a lot of noise on the ground. what is it like one day after the parliamentary vote? upid: things hasn't cleaned entirely -- no evidence of the protests, except for a few broken windows here and there. the focus was on mario draghi's press conference, the announcement that cap on liquidity had been lifted,

something people here had been hoping for, needing. as you mentioned, the banks could reopen soon. bloomberg reporting that the banking holiday -- they will be closed through sunday. knows how much longer he can be extended through that. no mention of when capital controls will end. mario draghi was asked about that and said it is a decision the greek government will have to make -- when to raise capital restrictions. people going to the atm, the bank, restricted to 60 euros or less every day. still a big problem here in greece. matt: what about the greek political situation -- you had more than 30 therese members voting against the bailout package. six sustained. ylearly, alexis tsipras' part has kind of fallen apart, at least not voting for the legislation he wants to push through. is there going to be rearrangement in the parliament? will we see someone new leading greece next week?

david: we are hearing the elderly will lead. that is not going to happen today, as we get later into the evening here, but you are right, 1/5 of the members of parliament did not vote for legislation or abstained from voting for this legislation. as we now prime minister alexis tsipras has to -- obviously, now prime minister alexis tsipras has to see who will remain in his party, who will not. we heard from members say that if the prime minister asked him to resign, he would. more important, how will the prime minister govern going forward -- there has been talk of a minority government. that would be less effective than a national union government. again, something he will have to hammer out over the next few days. matt: is anyone there happy about this agreement? mario draghi said the goal was to promote growth. does it feel like that in athens? david: no, i think it feels like

we're making incremental steps towards something. people i have talked to have expressed frustration. i want to circle back to something mario draghi said, finally revealing with the european central bank's exposure to greece is, 130 billion euros. the ecb is not the biggest depositor in greece. if you were to look at the rest of the deposits -- i was talking to an independent economist, investment analyst here, he said there is $124 billion -- 154 billion euros left in deposits. how long that is sustainable is something to be debated. matt: think so much, david burrow -- david garrow. in hot watermorgan -- we will tell you about a secret the bank kept from investors and one troubled health-care company. and, of course, janet yellen is testifying in front of the senate. we will take you there live as

soon as she starts answering questions from the senator. chair yellen: likely follow a higher in deeper trajectory. ♪

matt: you see a live shot their own janet yellen still giving her written testimony. we will take you live to the senate as soon as she starts answering questions. turning now to the most read story on the bloomberg terminal -- "jpmorgan dirty little secret -- the bank knew they were -- federal authorities were investigating the millennium health, but kept it from investors because millennium said information was not material. what are the ethical and legal implications question must let's bring in laura keller, who wrote the story. investigators are investigating, it is material. laura: i think it is something lenders are without argument,

would have wanted to know. matt: what will happen -- will they get taken to court? maybe the lenders can work it out, but otherwise that is the remedy they have. matt: will we see heads roll -- if i were a lender and my banker did not tell me the borrower was being investigated by the u.s. government, i would certainly not trust him enough to work with him again, probably want him fired. --ra: these are big firms oppenheimer, fidelity -- these are large loan investors, bond investors. i'm sure they have had these conversations already. we have seen for the last couple of weeks, past april, that this loan kept dropping and dropping, as more information came out. matt: actually lost a lot of money. laura: they lost a ton of money, almost 62% of their investment. the loan is in the 40's. matt: i would want that paid back if i were the lender. laura: you would hope so.

this is a company that took $1.3 billion as a dividend that went to the shareholders, the private equity firm that holds -- owns some of it. exactly, are you going to be trying to get that back --i would think so. matt: great story. congratulations. number one on the terminal. big deal. laura: thank you. matt: laura keller. we'll take a break on bloomberg market day. stay with us for more on janet yellen. we'll go back to the senate panel and hear her getting grilled. chair yellen: we have seen despite the soft patch of economic activity in the first quarter, that the labor market has continued to show progress toward our objective, maximum employment. ♪

matt: it is noon and san francisco, 3:00 p.m. in new york, 3:00 a.m. and hong kong. >> we have breaking news for you. julie: this has to do with the

telecom industry. the dish network talks required t-mobile u.s. -- they have stalled over concerns related to the valuation and structure. this story coming from bloomberg news. this calls into question whether any transaction could get done this year or at all. they will soon be turning their attention to a spectrum auction for next year, in which they would either be bidding on wireless airwaves as one company or competing within that auction. that big headline is that dish etwork talks require t-mobile from deutsche telekom have stalled. alix: thank you so much. matt: you are alix steel. alix: and you are matt miller. matt: we did not introduce ourselves. let's go live to janet yellen. shis