matt: a record-breaking quarter for ford. consumers are in love with the new aluminum-bodied f1 50 pickup. olivia: class, what is donald trump really worth? maybe not as much as he thinks. the business of broadway. do hit shows make up for the big flops? we will show you how it all works. ♪ ♪ olivia: good morning, everybody. welcome back to "bloomberg market day." i am olivia sterns. pimm: i am pimm fox. let's look at how stocks are performing right now. moving higher. dow jones adding 0.5%, the s&p 500 also posting a gain of over 0.5%.

taking a look at stocks today, maybe people are reacting to earnings. olivia: we have seen better-than-expected corporate earnings. a couple of pharma companies, ford, ofrd -- course. a little disappointment on the top line, but financial engineering boosting the bottom line. things have called down a little -- calm to down a little bit. we see some movement in the british pound, gaining against the euro, the biggest move in about two weeks after british gdp gaming out -- came out, showing the economy grew 0.7% in the second quarter. it is the 10th straight quarter of actual growth for the british economy. markets are pricing in a rate hike in england in about may. beat mark carney may have janet yellen to the punch. olivia: they think they want to do it until next may. our funds are pricing them in

for september. but the story was that carney could be the first to raise rates. how times have changed. top headlines -- home prices in 20 big cities rose at a slower pace in may. was upe-shiller index 4.9% from a year ago, less than predicted. the slower rate of appreciation may make it easier for first time home buyers to get into the market. honeywell is spending $5 billion on a british maker of gas, electric, and water meters. the ceo says the deal will create new platforms for more acquisitions. pimm: investors are not discouraged by bp's lowest quarterly earnings in at least a decade. the price of bp shares is up 2.5%. the company made progress on billion --d the $600

$600 million write-down of assets in libya was a one-time event. of congress are questioning secretary of state john kerry about the iran nuclear deal. he's appearing before the house foreign affairs committee. first up was chairman ed royce. mr. royce: we have been surprised by almost every major nuclear development in iran history, and iran has cheated on every agreement they signed. earned theas iran right to be trusted yea? kerry says that if iran cheats on the agreement, the united states will find out and respond. a massive security flaw has been found in google's android operating system, allowing hackers to disable the device simply by sending a text message. google noted hardware and software partners, and provided a patch that can fix the problem. olivia: still to come in the

next hour of the "bloomberg market day," reynolds american is on fire as they improve profit forecasts. for change is in the air laguardia. a big $4 billion change. we will tell you when the overhaul will be over. how many billions of dollars i does donald trump really have? how much does he think he has? we are talking real money. we have crunched the numbers, coming ahead on "bloomberg market day." pimm: a very good day for ford motor. the automator reported record second-quarter profit. in revenue thanks to demand for the aluminum body f15-pickup. we want to bring in matt miller. he is standing by with the chief financial officer.

matt: by satellite link, matt:. -- seven link, bob shanks. i want to ask about the truck. truckonfusing, we see the driving your results, but fewer units then you sold of the old f150. how do you jive those things? bob: great to be with you. f150 did not itself drive results in north america, because we were going through the launch in the second quarter. but we expect in the third and fourth quarters, it will drive positively the bottom line. that's one reason why we expect a stronger half in north america for the company in the second half of this year, versus the first half. but customers love the product, and we are so excited. matt: we hear that 90% of your

profit is driven by the f150. if you are selling fewer of the how do0 than last year, we see 44% growth? where does it come from, if not the truck? bob: this quarter demonstrates there is more to north america than the f150. volume was lower. explorer volume was lower, because we are launching a major change for that product. with a robust business structure and strong portfolio of products, we delivered record profit for the region in the second quarter. it shows how strong we are beyond the f150. matt: how about the pricing power of the truck? bloomberg put out a story saying that you discounted it by up to $10,000, which would kind of run counter to other information i heard, the average selling price

being $44,000 according to eric merkel. where are you as far as incentives go? bob: let me give you the facts for the f150. we have record transaction prices, most driven by the f150. average incentive is $3900 across the country, lower than a year ago, lower than our competitors. one of them just raised incentives to an even higher level. the $10,000 reported by bloomberg happened to be only in selected dealers and models, a derivative vehicle of the f150. have healthye, we transaction prices and the lowest incentives among our competitors. it's a strong story, and the vehicle is churning twice as fast as the overall segment. a positive story. matt: the average vehicle in

that segment sits on the lot for 70 days, and you are turning out in 30? bob: we are doing 32 days. the average for the segment is 77. matt: let's move over to europe. you basically broke even in europe. how do you see that market segment going forward? are we going to see a continued balance along break-even, or a strong recovery? i know you expect a rocket launch in the u.s. after the f150 comes to full inventory. what about europe? bob: we feel positive about europe. we had breakeven results in the quarter. we see the eurozone finally showing relatively decent gdp growth rates. u.k., even stronger. the industry is growing faster overall. we delivered highly volume, positive pricing on the back of new products. so we feel pretty good about

where we are. in the second half of the year, we expect the second half to be worse than the first half, due to normal seasonal factors in europe. we had planned shutdowns in the third quarter, but we believe we -- in ha to profitability on path to profitability. matt: i know currency took about $1.2 billion out of revenue. i know you have factory plants over there. do you have enough of a hedge? bob: we hedge against key operating exposure. not revenue, but operating exposure. if we had not been hedging, we would have had better results, because you have a strong dollar, you hedge, you have an adverse hedge effect that smooths results, works the other way when the dollar weakens. so we do hedge, but more for volatility, not to make any type of profit off of that.

it has some effect in the quarter, but it's just normal part of our business. matt: thanks for joining us. cfo of ford, bob shanks. olivia: matt miller with bob shanks, cfo of ford. smokerse number of u.s. continues to dwindle, a good thing, the cigarette industry shows no sign of slowing down. we will talk to the ceo of reynolds american, and they will explain how they are growing cigarette sales as americans spend less and less -- smoke less and less. ♪

olivia: welcome back. pimm: let's go right to julie hyman with a look at what stocks

are doing today. some winners. julie: earnings-related winners. the first is not up much, but the most actively traded stock in terms of volume here. serious xm up 2% after -- sirius xm up 2% after reporting raise revenue for subscribers and free cash flow. cars, more cars are being sold with sirius xm. impressive numbers here. the company added 692 subscribers on a net basis. a quarterly scriber addition over the last couple years. this 692 thousand is about the highest we have seen in two years, since the second quarter of 2013. subscriber growth appears to have been picking back up. we will see if that's sustainable. the company raised its forecast for the full year for subscribers as well. eastman chemical this morning,

we see that stock rising. earnings beat estimates, even though revenue messed. the company says it sees momentum in the second half and made an improved earnings outlook. that commentary seems to be helping shares. finally, consol energy. really interesting situation. they have been beat up, along with other coal producers. thead a midday reversal in stock. the company is cutting its dividend and postponing plans to spin off its metallurgical coal operation. you would think that would push the stock down. however, the company says it is resetting business operations at this point. it has been expanding into natural gas as the coal business wasn't doing well, but we know that natural gas has not been doing well, so looks like it is battening down the hatches and the market seems to be responding well to what on the

face of it does not look like terribly good news. olivia: i wonder who the buyers are. maybe a management by back. pimm: we spoke to tom price about yesterday, and he said look for beaten up coal companies as an investment. let's look for top stories crossing bloomberg right now. microsoft's latest operating system debuts at midnight. windows 10 won't mean long lines. that is last century. the company says it will be a free download for anyone who has the home or pro versions of say it 7 or 9, and they will look a lot like google's android or apple's ios. same dayilling its delivery in the u.s., admitting they cannot match amazon's delivery services. it had been available in san francisco, new york, dallas, and chicago. general motors is making a $5

billion bet that it can sell more chevy automobiles in emerging markets. they agreed to develop marker -- vehicles with china's faic. forecasts emerging markets will account for 55% of sales growth in the next 15 years. those are your top stories. olivia: reynolds american shares are having a good day, up 4% right now after the cigarette maker boosted earnings forecasts for the year. reynolds is the second-biggest u.s. tobacco company. brands include camel and also newport, the mental cigarette the company picked up a $26 billion acquisition of lorillard that closed a few weeks ago. pimm: reynolds has no international business to speak of. with fewer americans picking up cigarette smoking, how can they

keep growing? chief executive susan cameron joins us. thank you for being with us. can you tell us a little about the acquisition of lorillard, the plans for newport, and how you will make that acquisition growth? susan: thanks for having me. great to be here. it's a great day for rounds shareholders. -- reynolds shareholders. we completed the acquisition of lorillard on june 12. second-quarter results only have two weeks of newport, which did not materially impact the eps that grew 14.6% versus a year ago. and when you look at our portfolio today, 92% of our brands are growing market share, and we saw increases in volume for newport and camel. the industry overall is up 1.9%. as you know, the cigarette industry has been declining for 50 years. this is an anomaly in terms of adjusted inventories versus last

year. on an adjusted basis, inventories were down in the second quarter by 0.8%. olivia: talk to us about your priorities for leveraging the acquisition of lorillard. added 6%in two weeks to sale. any plans to extend the product line or raise prices? susan: there's a couple things to think about. the deal will provide $800 million in synergies, between now and the end of 2016. if you think about the newport brand added to the original reynolds portfolio, newport is very strong on the east and camel is very strong on the west, so the national complementarity of that is strong. we have 2400 trade marketing sales markets on the street, compared to lorillard's 1200.

our ability to reach with consumers and focus on new opportunities is very clear. we will unfold more strategies about exactly how to handle the brand portfolio in four to six weeks. olivia: do you anticipate you will raise prices? susan: the industry pricing has been very strong. we had net price realization of about 6% in the quarter. as i said earlier, volumes have been declining in this history for -- industry for a long time. this year, we are looking at a decline of 2%, often made up by pricing. pimm: are you expect more retailers such as cvs to stop selling cigarettes? susan: cvs made their choice, and i certainly respect that choice. what needs to be recognized is that consumers who choose to smoke, and there are still 42

million of them in the united states, will shop at retail outlets that are convenient to them where they want to purchase their products. ice,s a retailer's cho respecting the u.s. choice as well. olivia: smoking in the u.s. is in a state of structural decline. abroad, cigarette smoking is on the rise. why is reynolds american not looking abroad? susan: certainly on our cigarette portfolio, the old , salem, brands, camel are owned by japan tobacco overseas. the old brown and williams trademarks like pall mall are owned by british american tobacco overseas. own natural american

spirit overseas, but do not have a broad international portfolio. we are not just in cigarettes. we have committed to transforming the tobacco industry by offering a variety of choices with the potential to reduce harm, including moist snuff, our strong grisly brand. we are leading in vapor, in th e-cigarette category. we continue to innovate to give consumers better choices. pimm: talking about choices. have you studied the marijuana business as a commercial enterprise? susan: i have not. it is not legal federally. therefore, we are not investigating. pimm: can you talk more about the e-cigarette market? how are you making sure it's not getting into the hands of people who shouldn't have it? susan: we worked very hard with the states. it was a very fast, quick phenomenon, the vaping

experience. if memory serves me, we worked in 46 states, and there are laws that keep vaping away from minors. that's an important step. we continue to distribute our products through the channel that has a card id across the portfolio. pimm: thank you for spending time with us. reynolds american chief executive, susan cameron. olivia: still to come on "bloomberg market day," la isrdia o airport, getting everything. it's only going to cost $4 billion. but is that really enough, and when is this really coming? we will discuss, nest. -- next. ♪

♪ olivia: changes in the air at

laguardia airport. governor andrew cuomo and vice president joe biden announced a $4 billion overhaul of the airport new yorkers love to hate. the first phase of construction should wrap up around 2019, with the finished product looking something like this. pimm, what are the chances that in less than five years and just $4 billion, which sounds like a lot of money, but isn't for a massive new york city infrastructure project, that this is happening? pimm: let's take on the issue of the cost of this new airport, which is really what we are talking about. they are moving the terminal away from the runways, because they need to add runways to accommodate more traffic. let's take a look at the comparison of the other billion-dollar buildings, if we can. take a look. sports stadiums around the united states. those in the past.

barclays center, $1 billion. denver international. we are in the ballpark of the kind of money we need to spend. byfar as this will happen 2019, as the governor described -- they got approval for all of this. a lot happened because vice president joe biden has been helping to speed this along. olivia: this is state money, not federal money. pimm: correct. private and public money is involved. i look forward to being a beneficiary of the new high-speed ferry to la guardia. that doesn't it for me. see you tomorrow, -- does it for me. see you tomorrow, pimm. ♪

♪

(ee-e-e-oh-mum-oh-weh) (hush my darling...) (don't fear my darling...) (the lion sleeps tonight.) (hush my darling...)

man snoring (don't fear my darling...) (the lion sleeps tonight.) woman snoring take the roar out of snore. yet another innovation only at a sleep number store. ♪ pimm: welcome back to the "bloomberg market day." i am pimm fox. in greece, the athens stock

exchange is one step closer to reopening. it has been closed for over four weeks, and now the ecb has signed off on proposals to set new ground rules for trading. now it is up to the finance minister to decide when the exchange will reopen. president obama is on his way back to the united states after a five-day trip to africa. before leaving ethiopia, the president called on african leaders to end what he called the cancer of corruption. president obama: when someone has to pay an official a bribe to start a business or go to school -- that's not the african way. it undermines the dignity of the people you represent. matt: president obama said that africa's democratic process is at risk when leaders refuse to give up power at the end of their terms. likely going to be a change at the top of procter &

gamble. may announcecutive his retirement this week. that would set the stage for the heir apparent, david taylor, to take over. ,astly -- he has served interrupting his retirement to lead a turnaround. a prison worker pleaded guilty murderous estate last month or joyce mitchell admitted giving inmates tools to break out of jail. mitchell agreed to be their getaway driver, but then changed her mind. the prisoners were shot and killed -- one prisoner was shot and killed three weeks after escape. the other was recaptured. those are your top stories. the markets are closing in europe. let's go to london for the latest. >> after the worst five-they drop this year, we are seeing a bit of relief for european stocks, a rally across the region. leading in italy is

gains after seeing losses yesterday. optimism has been driven by deal activity and corporate earnings. i will show you what i mean, bringing up some stocks we have been watching today, starting with some of the biggest gainers on the stoxx 600. rsa insurance moving higher, after zurich insurance said they would evaluate an offer. melrose gaining after it sold its elfa unit to honeywell, and kering rising. brent crude up now. it was declining earlier, after moving into a bear market yesterday. bp, second quarter profit dropping, lowest quarterly profit in 10 years. analysts say it is doing well on cost-cutting. that's why the stock is up. statoil gaining after earnings were a beat. we know china and commodities

are a concern, but it's not stopping the stoxx 600. it is a cliche, but what a difference a day makes. pretty much every industry group is heading higher today. back to you. thanks very much. coming up on "bloomberg market 's $1.3 billion blockbuster season. we get insight from a producer on how the money machine works on the great white way. and, how goldman sachs is making its mark in the golden state. random house has a winner on its hands. the new dr. seuss book "what pat should i get?" is already amazon's number one bestseller on its first day. from the head of random house's children's division. donald trump is leading in the republican presidential polls. the latest shows him ahead of jeb bush and scott walker.

trump is also leading in new hampshire. trump has built his candidacy around his business acumen and the size of his fortune, which he's not shy about discussing. -- irump: the chinese bank ofg chunk of the america building in san francisco. nobody knows what i own. these guys, maybe he's not worth $10 billion. maybe he's only work $7 billion. i'm exley worth more than that. bloomberg billionaires team crunched the numbers. based on his own statements, we worthe trump is around $3 billion. caleb, let's begin with you. you took a look at the numbers. what did you come up with? caleb: from his financial disclosure, we get great data on liquid assets and debt. for his properties, federal

disclosures only go so far because the highest range you can file to this disclosure is $50 million and more, which describes a lot of his assets. for his buildings and golf courses, we had to dig deeper. you look at prevailing capitalization rates, occupancy, price per square foot. essentially given the data provided, creating market value for these buildings. matt: what's the most valuable portion of his net worth? there is a partnership on 1296 in new york and 555 california in san francisco. he has 35% of that partnership, and those buildings combined are worth more than $600 million. pimm: michael, why is it so important that donald trump convinces people he's worth at least 10 billion dollars? what's the difference on the campaign trail? michael: for donald, it's all

about the confidence, portraying himself as the most successful, the richest candidate in the race. the more billions you can add to that, the better his story sounds. the more practical matter here is how much he's going to have to finance his own race. right now, he's not seeking contributions. he's putting his own money into the race, a that $1.5 million of his own money in so far. it will of thumb is that rich candidates, those who self-finance their campaign, give more than 10%. 10% of $3 billion or 10% of $10 billion, that's real money. pimm: what accounts for the discrepancy between what donald trump says he's worth and what the team has been able to discover? caleb: two big things. first of all, he considers a

line item of $3.3 billion for his brand, branded developments, and licensing deals. we don't create a line item. we gave him a premium for his brand on golf courses and account for cash coming in through licensing deals and other business deals. but there's no straight line item for that. of golfs his selection courses at $2 billion, and we get less than $600 million for those. pimm: michael, as far as the campaign goes, is there a possibility donald trump will be tripped up by his contention he's worth $10 billion? michael: well, probably not. aboutf you are talking how this will impact his standing among voters, this alone probably is not going to move the needle. -- he has built his

campaign on saying outrageous statements, much of his career. as that adds up, it could tip the scales for another candidate. that's what a lot of the republican establishment's thinking. this could be a piece of that. pimm: based on your reporting and the people you spoke with, how do they describe the potential for donald trump's appearance at the republican debates? michael: well, people are concerned about this. they are concerned this is going to turn into the donald trump show, and that's certainly going to drive a lot of viewership for these debates in cleveland on august 6. people are preparing differently for this. i know jeb bush is spending a lot of time going through briefing books. rand paul has a big briefing book he's using to talk to reporters. talks trump, when he

about debates, he seems more nonchalant. what we will see from donald on the stage in cleveland will be what we have seen so far. off-the-cuff and freewheeling. pimm: michael, is there any pressure on the other candidates to disavow many of the statements donald trump has made is representative of the republican party? michael: we have seen that pick up in the last couple of weeks, as trump has solidified his standings at the top of the polls. have seen both sides of this as well. senator ted cruz from texas has refused to distance himself from trump, and he is appealing to a lot of the same voters. it will be interesting to see. said, theig thing he most outrageous one, going after john mccain and sort of dismissing him for being captured as a pow, we have not seen any evidence that has hurt him in the coals. a new call out in new hampshire

has him at the top of the race their best. outpacing jeb bush, scott walker, similar to what national polls showed. pimm: thank you very much, both michael bender from washington and caleb melby from the bloomberg billionaires team. still ahead on the "bloomberg market day," the business of broadway. musicalting in a new any different from the span of a roulette wheel? we will find out. ♪ an ♪

pimm: welcome back to the "bloomberg market day." i am pimm fox. top stories crossing the bloomberg right now -- americans were more pessimistic about the

economy this month. the consumer confidence index fell by the most in almost four years. according to the conference board, the greek debt crisis and weighing on is american attitudes. the share of americans owning their own homes is at the lowest in almost half a century. the homeownership rate in the second quarter fell to just over 63%. would-be homebuyers have been held back by tougher standards for mortgages and wage growth has not kept up with the increase in home prices. volkswagen has pulled out in front in the race to be the world's biggest-selling automaker. toyota in the first six months of the year. both companies sold slightly over 5 million vehicles. vw benefited from stronger demand in europe, offsetting the slowdown in its biggest market, china. sellingd's third-best automaker is general motors.

those are your top stories. broadway is big business. this past season, more than 13 million people attended the theater in new york. the take, $1.3 billion. how can you get a piece of the action? the business of broadway, an insider's guide to producing and in theater. stephanie ruhle took a day with its author, veteran producer mitch weiss. ♪ stephanie: i'm walking in new york city's theater district with mitch weiss, a broadway veteran with 40 years of experience producing and managing shows. who better to talk with about the hottest ticket in town. on" has not even opened yet and has the largest advance in history, $27 million. will the producers make out like bandits? mitch: absolutely. that's part of the excitement. not just the phenomenal show

that will change your life, but walking away with all that money. it cost $15 million to put that show on broadway and you have $27 million in the bank, and you have not even opened yet. stephanie: let's talk about the kind of risk a show like "hamilton" is as an investor. a hip-hop performance about american history that didn't open on broadway. how does a show like that end up dollars?eal this is a not-for-profit production from the public theater. they said, we want to try something new, and we trust the creators to do it. they ended up with hits. captured: "hamilton" the imagination of theatergoers. that's not the case for most productions. mitch: you have some shows where

you lose all your money. stephanie: eight out of 10 shows fail. will beto know "wicked" a home run, you can't be a novice investor. you have to have a deep understanding of the theater business. worst, it is a slot machine. but instead of making a thousand dollars on a nickel, you can make millions. stephanie: the return on a hit can be bigger than the best stock in the market. for example, "wicked." ♪ mitch: let me take you a step further. when you have investors, it's reported they are making 250% on their investment. where do you find that? stephanie: of course, you have to know what you are doing. what is the job of a producer? mitch: two jobs. first, find a project he or she

thinks will be a winner, spend own timeney, all my and energy on one project. stephanie: what is the minimum investment? mitch: typically $10,000. stephanie: mitch weiss tells me it is the same for the people behind the scenes. stephanie: is it a money or a passion business? mitch: both. you are passionate about putting on culture and making money. it's a combination. pimm: our thanks to stephanie ruhle for bringing us that story. ondman sachs has its eye silicon valley. we will tell you how the big bag is acting like a venture capital firm. next on "bloomberg market day." ♪

pimm: goldman sachs made a name

for itself making deals on wall street. now it is venturing into new territory -- silicon valley. it has made 77 deals in private technology in the last 2.5 years. betty liu has been looking at all this. looking at the survey, i was thinking, what do uber and pinterest have in common? betty: airbnb, dropbox. what they all have in common, goldman sachs. privately held companies in which goldman sachs is an investor. betty: as if the private capital world needed another player. goldman sachs, $95 billion market cap company, coming in. it has been there for many years, but recently has ramped up their injections of capital into some of these companies. in fact, they backed what many call the unicorns, $1 billion or above companies, uber being one

of the most famous ones. it's no surprise. we have seen wall street banks go to silicon valley. we have seen wall street talent go to silicon valley, because that's the hot new thing. the former cfo of morgan stanley , morgan stanley being the most well-entrenched bank in silicon valley. ruth pratt went to google to be there cfo. not just goldman sachs, though. jpmorgan has also been ramping it up. last week, i met with german together from jpm, one of the people who went from new york and established a bigger office and presence in silicon valley. m andll the story of jp say, we are also tack investors -- tech investors. that is the new big thing. on the flipside, companies like thatb and uber have all money at hand and don't need to

go to the public market anymore. that's why you haven't seen that many ipo'ss. we got caught off guard with square, but that's a relatively small ipo. we are not seeing the big ones go public, because they have all this money. pimm: do the investors, goldman sachs, jpmorgan, do they benefit when the deals turn out good? betty: they actually do. 20x are talking 10x, returns. the $95 billion firm, it doesn't really, no matter how big their investments in silicon valley, it doesn't really move the needle for a dank like -- bank like goldman sachs. but it's good for them to be there. pimm: now it is time for today's options insight. let's go to julie hyman. julie: let's take a look at how stocks are proposing -- performing. we see them rise to highs of the session.

a mixed picture on earnings seems to have turned around. the s&p is breaking a five-session losing streak. nasdaq has rebounded back. joining me is the chief investment officer for recon capital partners. kevin, people seem to have noticed it's only a couple groups, big cap stocks that are really supporting gains in the market this year. there's concern about that. is that warranted? kevin: no, we actually welcome it. we are out of a quantitative easing environment, and can go back to where sectors diverge. that's normally how the market is carried you can't have sectors that all go up at once, correlations of 90%. this is healthy for the market. it shows we are stabilizing. one way we can look to see there's going to be choppiness and sector divergence is the volatility of the vix, the

v-vix. it's at 100. the average is 85. meanwhile, the vix is below its historical norm of 20. there are no products to manage vix 24 hours a day. you have extended trading hours, weekly vix. this volatility will spike, but we will have sector divergence going forward. julie: does sector divergence support further gains in overall averages? healthy or not healthy, will we keep going up? kevin: absolutely. for the best parts of the economy, health care, tack, the biggest parts of the s&p 500, performing well. they carried this market throughout. you will see divergence come down on consumer staples and utilities, as they have underperformed recently. mentioned technology. your trade is on a technology m, salesforce as it is

also known. coming out with earnings, but not for a while. it's quarter is closing at the end of the week. kevin: the great thing about options is they now have weeklies. this is one where you can get into the weekly option trade and go off of the end of the quarter were they talk about billables but you can miss turning -- earnings. when you look at amazon, it ran up into earnings. netflix ran up into earnings. this name can ramp into earnings, and you can capitalize on it. spent a couple bucks, get the exposure, run up into earnings, get tailwinds from billings. julie: do it before earnings even come out. kevin: people expected they would be a buyout for salesforce. there were rumors microsoft was going to come in, so they are trading above their historical norms. they are the original cloud computing name that's out there, so they are in vogue. ity are best of breed, but

is really run up. do a stock replacement or get extra exposure before earnings. julie: gotcha. in terms of the prospect of microsoft coming in at this point, are you discounting that yet? kevin: it's discounted. there have not been much rumors since the initial talks. it would be too much for somebody to gobble down. the management there really wants to go it alone, and they are strong headed. you can't anticipate it being taken out. julie: don't bet on it. thank you very much. kevin kelly, of recon capital partners. sort of an earnings play. salesforce, billable numbers, not the full earnings report. much more "bloomberg market day" coming your way after this break. stay tuned. ♪

pimm: good day. welcome to the bloomberg market day, a flurry of takeover and earnings report health the

s&p rise for the first time in six days. we will look at the stocks driving that market. pimm: then we will take a look at wall street taking on silicon valley and type of goldman sachs he came a powerhouse and technology investing backing companies like uber, dropbox and more. betty: we have seen killer but no expertss on artificial intelligence say the world needs to take action to make sure these robots do not become a real-life threat. pimm: good afternoon. betty: let's begin with a look at the markets. stocks are rebounding and we are close to our highs of the session. they have had the longest