>> from bloomberg world headquarters in new york, good afternoon, i'm scarlet fu. i'm all of photonic. here is what we are watching. adding linked into its network for $22 billion. will the microsoft yield sparked a fire in businesses? we will ask the global cohead of m&a at j.p. morgan chase. the wake of the orlando shootings, the fbi director will be making remarks in 50 minutes. shortly after hillary clinton will be addressing an audience in cleveland, ohio. we will take you live to both events. get over now to

the markets desk, where julie hyman is tracking the moves. the fed, the doj, with big corporate m&a deals. julie: it has become a busier week today with microsoft and linkedin, yet today it seems like faster tracking oil prices, not necessarily those other events. when oil started to make a recovery, we saw stock to the same. now stocks are tracking right along with it. alternate day averages briefly in the red after going briefly positive midmorning. the nasdaq is now down three quarters of 1%. take a look at what's going on within the groups here. overall the s&p 500 is tracking oil prices, trajectory why is it does remain higher. tech shares are weighing the most on the s&p. taking a look at the big cap within the group that's falling, microsoft declining after ring to buy linkedin and apple shares

shareshe report that will fall 8.6% year-over-year. facebook has been lower, missing a price here for some reason. a bit of a glitch going on here. but they did say they were shorting shares of microsoft, revealing the short today. good stuff, thank you, julie. every monday we zero in on m&a deals in the making or breaking the insight and analysis from the players behind the deals. shares of linkedin -- oliver: shares of linkedin soaring after being agreed to be picked up by microsoft. -- scarlet: emily chang joins us from san francisco, along with jeff mccracken. emily, what did you learn?

they want linkedin? and why now? emily: what a deal to talk about a deal to talk about on merger monday. the first huge deal under the o.crosoft io -- e. adding 58% to the addressable market, according to microsoft. we talking about a big potential future business. i think that those stocks dropped after the last few months after that earnings report earlier this year, which had something to do with it. it certainly made the price more attractive. i asked that question, why this price, why now? take a listen to what he had to say. >> it is about bringing together at thefessional cloud core of microsoft and the professional network. the dream we always had was -- how can we connect these worlds so that our mutual users can get

their work done more seamlessly? that's the vision. i spoke with jeff weiner a few months ago on studio 1.0 and we talked about how big he believes the future of linkedin is. i said -- why would you sell it for a price less than what it was trading at six months ago? take a listen to what he had to say. been about the realization of our long-term mission and vision. think about the global footprint of microsoft. one billion plus. seamlessly integrating our network, a social fabric, if you will, throughout their ecosystem. so, what he said was look, the future for us just got bigger. of course microsoft has made whereig deals in the past they haven't executed the integration very well. think about note yet or skype to a certain extent.

integration and execution here will be key. oliver: all right, -- scarlet: all right, emily, thank you for joining us. oliver: something fresh to chew on, considering most of the spotlight has been dominated by the sales saga. a topic our next guest knows quite well. on what and one dollar trillion in transactions. the dollar tree purchase of family dollar combined with immediate merger with continental airlines. welcome to the deals report. still with us, jeff mccracken. what exactly is the catalyst making this happen right now? chris: the price at linkedin has dropped 40%. i also think that microsoft made a pitch that they would be able to run independent.

much the way they been able to integrate into microsoft. it's good that we have chris here, so that we can talk about how these deals impact other companies. viewpoint, you have been around the situation where you have been the one doing the big deal or you have had a client on the other side doing a big deal. how does this impact the board level? the end of the day, you have to remember that this is a cash deal. there must be some decision-making process that says, what's the status quo value proposition for our own shareholders? materiallyropped earlier in the year and is this premium enough to compensate shareholders? at the same time we care about our employees in this business and we wanted to be in good hands, so there had to be a merger partnership as well to make sure it was going to do well under the microsoft umbrella, so it is the.

that's a nice balance for the , also thinkinger about the business longer-term. on the microsoft side, certainly as they look at the puzzle and what they are trying to fill in and social, mobile, they must look at that and see that there are ways to do it externally or internally and the value proposition, paying a price for excess cash or an extremely strong balance sheet to get a business like that, understanding how it is going to fit, it really is a revenue story. perhaps diluted slightly in the next couple of years. you are step back hoping to solve a long-term strategic positioning of the business, really making both sides come together. jeff: the other big deal is yahoo!. been aly activists have

big story behind yahoo!. what are your thoughts on activists this year, tech or other spaces? >> we have gone through a transition where i would describe activist assets under management growing exponentially. last year 120 3 billion. this year it dropped of it for a couple of reasons. money onhave lost specific investments or certain funds, plateauing a bit, but actual activist campaigns are roughly going to be the same that they been. down a little now, an important dialogue today. i do think it's covering two aspects. the new emphasis is less on recapture and more on what the quality of your board is, the right directors with the right skills for the long-term. i have a point of view on that and i may have some suggestions for you. -- i don'tide is figure to can make it as a stand-alone public company.

maybe consider a sale or merger with someone else. yahoo! started with that early on with regards to maybe a partner for yahoo! a while back. i do think that those avenues of activism, major changes, m&a oriented, were more subtle in terms of the skill set of the board, where we are seeing a lot of things happening this year and that should continue through the rest of the calendar year. some would even call this a soap opera. it really all began with star board value earlier this year. what we did see in january was warming up torted the idea of a sale ended february they announced that they were exploring strategic options and shortly after the roque the news the company would start approaching potential bidders, like verizon, at&t, the likes of those. from there on the potential suitors kept rolling in. fast forward to april, yahoo!

began to narrow the field ranging from $4 billion to $8 billion. last month we reported that warren buffett backed group that at&t decided to put both feet .nto the ring oliver: i'm wondering, does the timing of today's deal, the premium involved or the type of deal change anything in terms of what's happening? jeff: i don't think it impacts yahoo! at all. we knew that the second round bids were in. dealprobably will get it done early in july. three weeks, maybe four weeks left in this long national nightmare of what might happen to yahoo!. i don't know if you feel differently, chris. chris: as it has been laid out, the process is underway. on the microsoft board, thinking

about this, star board as a board member. elevating these types of deals valuation.rt of the scarlet: what about when we talk all caps deals? chris: what is puzzling me is how the private equity buyer has been absent for 400 billion in equity capital available by ratio of debt to that equity two to one. over one dollar trillion in buying power, but it has been disciplined. multiple fore the those companies that interest them have been high. how do they get that purchase price? it does dampen the equity returns and put a premium above

the relatively high multiple. what we have seen them do over the last year or two is the net sellers in their portfolio with other private equity companies where they may have a different angle to catapult. i do think that for the end of this year and into next is that earnings slowly continue to grow , equity multiples might dampen a bit with a hungrier private equity universe emerging to compete. jeff: you and i have talked in the past about government scrutiny. they changed the tax code, if you will, by treasury. do you sense that this is something that could be private equity without coming to the table for the regulatory problems?

chris: absolutely. if one has execution risk and one doesn't, they may not have ,he same hurdles in front of it but the board can more comfortably look at that bid with closed -- with more confidence closed or certainly. obviously there has been a trade-off. we are seeing chinese buyers entering the market. between the emerging private equity buyer universe and strategic's, is a great time to consider being a seller. pockets of buyers of different stripes that could be interesting in terms of the competitive dynamic. is it: is it -- scarlet: because there is a lack of regulatory concern? chris: if they look at the price if they themselves -- there is a bit of a risk to get that price. as that narrows and becomes more certain, we talked about this last year. when dollar tree ended its acquisition of family dollar, the board chose to take the

dollar tree bid because they had confidence that they could get that beale eventually -- to get that deal eventually to the finish line. we helped them to pull off that trade, value for certainty. chris, jeff, thank you very much. coming up next, the fbi director is scheduled to address the shooting in orlando. we will be going live to washington when it happens. stay with us. ♪

♪ scarlet: you are watching "bloomberg markets." oliver: let's check in on the first word news. mark crumpton has more from the

newsroom. president obama says there is no clear evidence that the shooter at an orlando nightclub was directed to conduct his attack or part of a larger plot. he made his comments this morning in the oval office. : the one thing that we can say is that this is being treated as a terrorist investigation. it appears that the shooter was extremists various information disseminated over the internet. mark: the fbi says that the interview the suspected killer twice because of possible ties to terrorism. both times the agency closed the .nvestigation

49 people killed, 53 wounded in the attack. the team was killed in a shootout with police. before the shooting he called 911 to proclaim his allegiance to the islamic state. the u.s. supreme court has struck down a law that would have let them restructure their debt over the objection of creditors. the court ruled that it was barred under federal bankruptcy laws. turning to rivals in the labour party to stop them from leaving the european union. willround, cameron needed make the case to stay in the eu. labor support is crucial if cameron's government is to avoid a brexit. >> yes, of course there would be concerns in the financial markets.

yes, there would be uncertainty for a number of years as they work out their new trading relationship. but the real challenge for the country would be this -- britain would be permanently poorer. they would be trading less. they would be less productive. this programming note, we are standing by for the director of the fbi. you are looking at a live shot from fbi headquarters in washington. he will be discussing the mass shooting that took place this weekend. global news, 24 hours per day, powered by 2400 journalists in 150 news bureaus around the world. we continue in just a moment. ♪

scarlet: this is "bloomberg markets." julie hyman has been checking on

some of today's winners. although the big indexes are down, there are a couple of gainers. julie: the only deal announced today was not the microsoft deal. it is symantec, buying a company called blue coat systems. it is a much smaller deal, to be fair. it's not nothing, it's not inconsequential. symantec shares have been surging. the company has been trying to remake itself away from its antivirus roots and follow the evolving needs of cyber security. the company is going to get a new ceo. blue coat moving over to take the helm as well. that is another reason we are seeing the shares gain. although symantec has gone through several different ceos over the past several years. nvidia this morning, raised to a by getting a big boost in price over $35.$55

analysts they're talking about higher average selling prices for the chip, as well as some new videogame titles that could by nvidia. exxon mobil today as well, talking about the rally in energy stocks as oil fluctuated, trading at a 52-week high. shares higher by 1%. finally, one of the sort of fallouts from the mass shooting, like we saw in orlando, the typical pattern, a surge in gun stocks. typical speculation that there could be increased regulation of guns, so we tend to see spending patterns on guns go higher. people buying more guns as they anticipate the regulation. as i noted earlier, that regulation has not emerged, but nonetheless we do tend to see this pattern after these mass shooting events. once again today, smith & wesson and stern ruger seeing increases

in share prices. wever: we should -- scarlet: should mention that we are waiting for the fbi director james comey to make his remarks. this comes after the attacks in orlando, florida. and it looks like they have just entered the room and are taking the stage. washington,r now to where the fbi director there on the left is getting ready to make remarks on the orlando shooting. >> could afternoon, everyone. thank you all for being here today. we are here to discuss the justice department's response to the stunning and unconscionable acts in orlando. our hearts are broken for the unfathomable losses the people there have suffered. our thoughts and prayers continue to be with their family and loved ones. as the attorney general said the full resources of the department of justice,

including the fbi, the atf, the national security division in the middle district of georgia, they are all supporting the ongoing investigation. the agents and investigators have been on the ground since the beginning and have been working around the clock since yesterday and will continue to do so in the days ahead. i want to thank our law enforcement colleagues in florida for their tireless and extraordinary work so far. theve been in contact with attorney general, currently on her way back from china, continuing to monitor developments in the case. words really cannot express the depth of our sorrow or the measure of our grief for the losses that have been suffered by those, lives that have been changed forever. what happened in orlando yesterday was a horrifying act. a horrifying act of evil in terror. for the lg bt community, pulse

was more than just a way to -- more than just a place to go and celebrate and see friends. it was a place that promised inclusion and freedom. to be themselves. the same promise our country holds for everyone. this is -- this was an attack on that promise. and itsk on our country values. an attack on who we are as a nation and as a people. our country as a whole stands united in response to this cowardly and despicable act. with this i will turn things over to the director, who will provide additional details on where we are in the investigation right now. .ir. comey: thank you i want to echo what the deputy attorney general said just now. our hearts are broken in a for those who are lost in orlando, those wounded and their families . we are so sorry for your loss and suffering. thanksto say a word of and express admiration for the

work of local law enforcement in orlando. they showed professionalism and export married bravery. we are lucky that such good people choose lives of service in law enforcement. lastly i want to say a word of thanks to the people that rendered care that saved lives at the scene. the doctors, the emts, the nurses, the victims specialists, the ordinary service -- ordinary citizens, showing us the best part of humanity in the midst of terrible loss. this is a terror investigation led by the fbi, with the assistance as we always have of our state, local, and federal partners. the reason for that is there are strong indications of radicalization by this killer and of potential inspiration by foreign terrorist organizations. we are spending a tremendous amount of time, as you would imagine, trying to understand every moment of the killers path

to that terrible night. you will notice that i'm not using the killers name. i will try not to do that. part of what motivates sick people to do this kind of thing is some twisted notion of fame or lori and i don't want to be part of that, for the sake of the victims and their families. and so that other twisted minds don't think that this is a path to fame and recognition. what i want to do is give you a sense of what we know so far and then tell you as much as we can about past contact with the killer. we are going to his life, especially his electronics, to understand as much as we can about his path and whether there so farone else involved we see no indication that this was a plot directed from outside the united states and no indication that he was part of any kind of network. it is also not entirely clear at this point just what terrorist group he aspired to support.

though he made clear his affinity at the time of the , generallyisil leading up to the attack for radical islamic groups. he made 911 calls from the club during the attack at about 2:30 in the morning, sunday morning. there were three different calls. he called and he hung up. he called again and spoke briefly with the dispatcher. the dispatcher called him back again, and they spoke briefly. three total calls. during the calls he said he was doing this for the leader of named.isil, whom he but he also claimed solidarity for the purpose -- with the perpetrators of the boston marathon bombing in a florida man who died as a syrian -- as a suicide bomber for a group in conflict with the so-called islamic state. bombers at the boston

marathon and the suicide bomber from florida were not inspired by isil, which adds a little bit to the confusion about his motives. we are of course working to understand what role anti-gay bigotry may have played in motivating this attack, an attack that again, it is early. we are working hard to understand the killer, his motives, and sources of inspiration, but we are highly confident that this killer was radicalized and, at least in some part, through the internet. that is what we have been doing. let me tell you what i can about the fbi's prior contact with the killer. we first became aware of him in may 2013. he was working as a contract security guard at a local courthouse. he made some statements that were inflammatory and contradictory that concerned his .oworkers about terrorism

first, he claimed family connections to al qaeda. he also said that he was a hezbollah, which is a bitter enemy of the so-called islamic state, isil. he said he hoped on fourth met would raid his apartment and assault his wife and child so that he could martyr himself. when this was reported to us, the fbi's miami office opened an investigation. we try to determine whether he was possibly a terrorist, hundreds anddo in hundreds of cases across the country. our investigation involved introducing controversial sources to him, recording conversations with him, following him, reviewing transactional records of his communications, and searching all government holdings for any possible information. we then interviewed him twice. he admitted to making the statements that his coworkers

reported, but explained he did it in anger because he thought his coworkers were discriminating against him and teasing him because he was muslim. after 10 months of investigation, we closed the limited investigation. two wants later, in july 2014, the killer's name surfaced again in an indirect way. our miami office was investing in the florida man who blew .imself up in syria we learned from the investigation that the killer casually from attending in that area of florida, but the investigation turned up no positive consequence between them. a witness concluded that he got

married, had a child, and got a job as a security guard, so he concerned about him. our investigation then interviewed the killer to find out if he had contacts with the suicide bomber, and we found out that he did not. we then focused on the suicide bomber, and no longer on the florida killer. we will leave no stone unturned. be will work all day and all toht to understand the past that horrible night. we will also work hard -- look hard at our own work to see of there is something we should have done differently. so far, i don't think so. we will look at it in an open and honest way and be transparent about it. our work is very challenging. in ae looking for needles

nationwide haystack, but also looking at what pieces of pay will one day become needles. that is hard work. if he can do it better, we will. we will also be transparent about what we need to do going forward. we will tell you as much as we possibly can. let me close by say something -- thing something that i have said before. we know this killing is upsetting to all americans. we hope that our fellow americans will not let fear become disabling. that is what the savages want. we hope that instead you will channel this sense of anxiety into something more positive, which is an awareness of your surroundings, and seeking opportunities to help your fellow americans, like we saw with the tremendous lines of people giving blood in orlando. the excitingnge big and to awareness, you can live who aree and let those

investigating do their work. if you see something, tell us, so we can look at it. if every one of our cases, someone always see something that they should report, and didn't. live in anxiety. live your lives. we will keep you posted from our work. thank you very much. director of the fbi speaking and washington, d.c., speaking of the massacre that took place in orlando, florida -- our hearts are broken. there is strong indication of radicalization by the killer, the fbi director also said that he refused to use the killer's name because he added that in their twisted minds, they think that acts like

this leads to fame and glory. in his concluding remarks, he killing isow this upsetting to all americans, we hope americans will not let this fear become disabling because, in his words, that is what the savages want. ". the words of the fbi director, james comey. the present candidates are weighing in. lasted president obama for not describing the attack as radical islamic terrorism. meanwhile, hillary clinton says the u.s. should not fall into the traps of the gun lobby. she is expected to speak in columbus, ohio this hour. you have a great article on bloomberg.com, "orlando massacre

reframes presen presidential race." this is a fine line to toe -- how do you do it without it seeming political? >> it is a fine line. we will hear a speech from which is clinton soon going to include truth. one, she will talk about her isis, andefeat international security plan. she will draw a contrast with donald trump. she will part portray him as reckless and dangerous. is hammering out that he is the tough one and the one who will not back down against the islamic state. that is what we can expect from

these two candidates today. mark c.: we just heard from the director of the fbi, james comey . he encouraged americans to live their lives and channel any apprehension or fear they have into something positive. as you and i both know as journalists, that is easier said than done. what are the two -- messages that these two candidates -- mrs. clinton and mr. trump -- what will they be telling people to day? >> they will peopl tell people t to worry. donald trump, especially, will keep talking about what he has been. he will try to capitalize on the fact that there are polls that show the american public trusts him more than hillary to handle isis or the islamic state. hillary clinton will cap lies on the fact that the american

public strongly prefers her on issues of temperament and knowledge. she vastly outperforms him in those areas. we will expect her to highlight that contrast. tookc.: mr. trump president obama and hillary clinton to task because they should have used the words radical islamic terrorism. will that become a touchstone of the remainder of the campaign? >> i think it will continue to be because donald trump will make sure it is. the reason they do not like to is the words radical islam the same reason that bush did not use it. the reason for that is because you don't want to give the perception that the united states is at war with islam. the argument goes that it weakens united states alliances with muslim nations and muslimslly turns against the united states. it is hard to put that on a

placard or assigned. donald trump can tweet a lot thinkthis, but i do not we should expect president obama and hillary clinton to substantially change course on that. it is not that rhetoric -- does not tend to be the way they like to go with these things. mark c.: we have about one minute left. during the press conference that happened on saturday morning with the officials in orlando were speaking and one of the local american muslim leaders therene of the mosques was behave as well. he was urging people to not rush to judgment on this. is this the sense that it is what the administration is trying to do at this time even though they say there are some links -- director comey identified him as links to the killer. >> the white house right now

does not want to jump to any conclusions. as the president said, they want to let the investigation play out. common for some rumors that come to light early to not be true. the administration is trying to against spreading false information. i think we would expect news to slowly come out. of what went on here, the broader nuts and bolts, i think we have a pretty good sense of it now and will learn more as time goes on. so much.thank you again, his article is on bloomberg.com and the bloomberg terminal. are waiting to hear from the presumptive democratic president nominee, hillary clinton.

she is expected to speak in cleveland, ohio this afternoon. we will have more on that and some of the other top news of the day. bloomberg markets continues in a moment. ♪

oliver: this is bloomberg markets. scarlet: it is time for the bloomberg is the/, a look at the digg's stories in the news right now. ranos.r blow to their walgreen says they have closed their relationship with the company. their reputation was damage when the issue tens of thousands of corrected results to patients. china grewe sales in

at the slowest rate last month. the chinese government is trying to cool off the market over concerns in the bubble. metaet: a company called is raising $50 million. they will have a new augmented reality headset. augmented reality technology imposes digital images atop the physical world. that is the bloomberg business flash. let's get a quick check on the stocks. we are looking at indexes that have come off of their lows now. oliver: absolutely. a little bit of a stronger volume concern. we have another day in the red here. scarlet: let's go on to san

francisco where we have cory johnson. the apple worldwide developers conference is about to get underway there. cory johnson is standing by with a preview. what are we expecting herg to hear from the guys at apple? there are some corollaries. the biget's talk about picture. this is a conference where you have a couple of thousand of developers coming from all over the world to san francisco and they want to hear what the roadmap will be for the future so they can invent the next , angry birds,uber or whatever. but we think they will focus on are two things. a wider expanded siri, of course, already working in the ipad. .erhaps a new and improved siri

the second thing is a different methodology by which apple is paid and developers are getting paid from the app store. likely to be new ways that such christians are dealt with. rather than a one-time payment with 30% off for an app, now, 30% when it was first sold -- with major league baseball, where people pay $30 per year, apple only takes 15% per year. stock downh apple for the year and more investors talking marketing out of the company is there certain degree of import on today's event? cory: i don't know the apple looks at the stock price any day

, month, or year, when trying to make business decisions about what they will do in the future. i think it is much more relevant to look at the stock prices, what is going on in the business, and say, they have expanded so widely, they have platform, but because they have expanded so well, they don't have the growth opportunity that they have had in the past. they are not there yet, and not likely to be there soon. as a result, they have to find ways to change the business model. they are talking about services as a part of that. services has been very important . scarlet: of course, apple was ahead of everyone in disrupting the music industry. it is expected to come out with some sort of revamped apple

music as well, isn't it? cory: perhaps. i think the apple music experience has been disappointing. beats acquisition did not turn into the streaming success like spotify or pandora. they have some catch up still. beenase-of-use has not there with a lot of apple products and i will be curious tothey do anything to try address that. at least always try to make everything look beautiful, but in practice, it is not always turn out that way. oliver: thanks a lot. now to wrigglego doolittle, live from the nasdaq with the latest on the tech stocks. abigail: we do have the nasdaq down half a percent, solve the -- solidly in the red. industrial down.

interestingly, all of the major sectors are trading down at this time. in thethe weakness industrial space, american airlines and jetblue. both down sharply. a few factors are believed to be behind the weakness. first, the broad concern of terrorism in travel, especially after the tragedy in orlando. orlando is a top leisure the destination in the world. andndly, falling fares wages. also dragging on the nasdaq, apple. be on the dell vote for -- developer conference, another bearish report on apple to say will falle sales short for 2016, down as much as 8.6% from last year.

scarlet? scarlet: thank you very much. much more coming up on bloomberg markets. booming --usiness is could it be at the next billion dollars brand? we will discuss. ♪

scarlet: the global market for athletic apparel is booming. morgan stanley predicts the sector may grow by 30% in 2020. smaller competitors are taking advantage of the trend as well. ,liver: one example,rhone based in connecticut. the founder describes the move from smaller to big. >> we thought that activ

ewear in the close that we work out and should not just be for the gym. we are one of the few brands that focuses specifically on men's active weather. .- activewear some people call this athle isure, some call it street to sport. the brown launched as a directed consumer channel. when we decided to launch our wholesale retail business, we knew that we only wanted to work with the best stores. part of that is we really want to protect our brand. it is a challenge when you give someone else the ability to represent the brand for you. we went to retailers that we trusted, we knew, and we shopped at. retailers like bloomingdale and

equinox, and nordstrom. those kinds of stories that we know take good care of their customers and products. by the end of 2015, we had built a great business that, on the contribution basis, could flow money to the bottom line faster than direct to the consumer with. gross marketers and web development. we have been able to build a thaty robust approach encompasses wholesale, direct consumer, and her own retail. we have done really well in the direct business which is growing and still kind of the bread-and-butter of what we do. the wholesale channel is great. we work with the best partners. vr launching a new category of textile technology that will revolutionize the way that active performance performs in the gym and lifestyle.

we are talking about improvement in older and exterior protections. the goal is to build the next billion-dollar brand. oliver: that was the ceo of rhone. coming up, someone who also knows about athletic performance, mark rubin. a decathlon on sunday. oliver: quite a powerhouse. scarlet: he will be with us next hour on bloomberg markets. ♪

>> it is 1:00 p.m. in new york. >> welcome to bloomberg markets. ♪

scarlet: welcome and i am scarlet fu. bloomberg explains to why the software company is making such a big bet on emperor -- enterprise. hosting apple conference and the event has just started. 10 days to go. george osborne speaks to bloomberg about the economic risks. let's head to julie hyman, tracking the moves. theng off the suttles of session.

julie: energy shares are moving of 1%., about half information technology remains the worst performing group if you take a look at the bloomberg . consumer staples also suffering today. green groups here in the s&p 500. tech is tracking things down overall. we have been watching commodities pretty closely. we have got oil prices bouncing around. gold prices have been trading higher. at thosee a look underlying commodities here. have had oil really bouncing around quite a bit it went brief -- briefly positive. of a risk offre sentiment affecting markets across the board and copper has

been bouncing in today's session. >> the commodities space is a place getting a boost finally but still nothing to keep the market overall up. >> definitely not. it is interesting to see the vix has been on a character was stocks were rising. look at it here, we are seeing a gain almost 220. it has been unusual to get up to these levels. another proxy for this sentiment is we have got buying in the 10 year sending the yield down to the lowest back to the end of 2012. stocks now yield more than bonds do. and this is the difference between the bond and dividend yields.

we have seen many times where we have seen the 10 year and it has happened over the decades. that could be one of the things providing a floor for stocks. good stuff. thank you. >> mark crumpton has more from our newsroom. says thesident obama shooter in orlando was likely inspired by terrorists but there is no evidence of a larger plot. the eiffel check our -- eiffel tower will shine to honor the victims of the mass shooting at numeral and him and -- at an orlando nightclub.

the french president francois hollande condemned the killing as an attack on freedom. the presidential candidates are weighing in on the mass shooting in orlando. hillary clinton is set to speak in a few moments. out clinton is tweeting over the weekend saying the hearts and prayers go to the victims and their families. said, terrible intelligence gathering is hampering efforts to protect the united dates. he blasted president obama for not describing the attack as radical islamic terrorism. we are awaiting remarks from hillary clinton set to speak in ohio in a few moments. stay with us for the latest. in south africa, and olympic runner faces up to 15 years in prison for killing his model

girlfriend. the hearing began today. the judge originally convicted him of manslaughter and has been ordered by the south african supplant -- supreme court sentencing him to murder instead. 53% of those surveyed want to leave the european union and 47% want to remain. they knowthe numbers it are excluded. that is according to an up -- to a poll released by the guardian on its website. for june 23.et global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. back to you. scarlet: thank you so much and we are waiting for hillary clinton to begin speaking in ohio at a campaign rally. in the meantime, the tech world today. valued at $26.2 billion.

oliver: emily chang spoke with the microsoft ceo and lincoln chief justice. >> it is really about bringing together the professional cloud, at the core of microsoft and professional network. how can we connect these two worlds so that our mutual users, the professionals of the world, can get their work done more seamlessly. that is the vision. it is very transformative to i have been thinking about this for a while. hadting in february, we serious conversations pair talking about the product and the coming together of the mission. allow usmbination can to accelerate what we both wanted to get done to drive the growth.

emily: it was about the same -- why would you sell linked in for a price less than what it was trading at six months ago. >> that future got bigger and it has always been about this celebration of long-term vision. you think about the footprint microsoft has, anything you think about the ability to seamlessly integrate our ,etwork, the social fabric throughout microsoft's ecosystem. office, windows, skype, active directory, and the possibilities are almost endless. create the social cost for the cloud and it will operate independently like what's at four youtube. is it integrated or independent? >> it is integrated for customers.

two grass, a microsoft graft, which is about people, their calendars and projects. it is all about dynamics. that within the professional graph and then you start completing the scenarios. thedo not need to change social network but you need to bring these things together seamlessly. .mily: linked in could not grow the market expected this to grow. you are saying the deal integrates microsoft by 58%. what is the change in strategy? how does microsoft help linked in grow faster than before? >> part of the beauty of the bring tohe value we individuals and customers within the enterprise. it is so strong that it is about sticking with the half,

massively and find it -- amplifying it. emily: what will the process be like and how do you make sure this does not turn out like nokia or skype? i think about acquisitions and i think about, is this something that will be expanding the market opportunity? scarlet: let's take you to ohio where sherry brown is introducing hillary clinton, speaking at her campaign rally. [applause]

ms. clinton: thank you. thank you all very much. thank you. thank you all. thank you. thank you. i am absolutely delighted to be here at the industrial innovation center. i have had a chance to learn about the great work you do here. applaud team wendy for everything you do to protect our troops, first responders. [applause] fromlinton: and others somatic brain in just -- injury. [crowd chanting]

[indiscernible] [crowd chanting] ms. clinton: thank you, thank you all. it is good to be back in cleveland, i can tell you that. [applause] thankinton: i want to your extraordinary senator brown for his leadership, for that very kind and generous introduction. you are very fortunate to have him representing you.

i want to thank your marcia, who is she isdomitable and -- such a 10 nation's advocate for the people she represents. want to his knowledge mayor jackson, who was here. i particularly want to recognize the passing of george, who --ided his life as mayor of devoted his life as mayor and we send our prayers of simply to his family. i want to thank dan moore, the owner and founder of the company , for his belief -- scarlet: behind her is ohio senator brown.

we want to bring in mark to put context around the rally speech hillary clinton is giving now. everyone is waiting for a comment on what happened in orlando. she is expected to comment shortly. she and her, i do not want to say nemesis again. she and the republican presidential front runner, donald trump, have traded barbs about what happened in orlando. let's continue to listen. ms. clinton: with guns and, just a horrible sense of vengeance and vindictiveness in his heart. against lgbtqge americans and the openness and

diversity that defines our american way of life. more about the killer in the days to come and we know he pledged allegiance to isis, they are now taking credit is topart of the strategy radicalize individuals and with the united states, even if they are not correlated with isis leadership. there are a lot of things we do not know, including what other mix of motives drove him to kill. the more we learn, the better we will be able to protect our people going forward. more abouto learn the many lives he viciously cut short. people,them are young just starting out in their lives. travel agents and pharmacy techs, college students, sons

and daughters, mothers and sisters, and they have one thing in common -- they all have a lot more to give. we should take a moment to think to -- for, pray everyone who was killed, those fighting to regain their lives and their futures, for our first was under scott who walked into danger one more time. as a mother, i cannot imagine what the families are going through. let's remember the other scenes we saw on monday. we saw the faces of first responders who rushed into danger and tried to save as many people as they could. we saw fathers like chris who tried to save others.

people gathered around hospitals to comfort family members, waiting for news of loved ones and waiting to learn more about what they could do to ensure this never happened again. religious leaders condemning hate and appealing for peace. people lining up to donate blood , americans refusing to be intimidated or divided. i called the mayor yesterday and offered my appreciation for the leadership -- that he and other officials had shown. this is a moment when all americans need to stand together. no matter how many times we endorse a tax like this, the horror never fades. the murder of innocent people breaks our hearts. it tears at our sense of security and makes us furious.

now, we have to steal our resolve to respond. that is what i want to talk to you about. how we respond. the orlando terrorist might be dead. the virus that poisoned his mind remains very much alive. with clearack it eyes, steady hands, unwavering determination, and pride in our country and our values. [applause] ms. clinton: i have no doubt we can meet this challenge if we meet it together. whatever we learn about the killer, his motives in the days ahead, we know already the barbarity that we face.

isis has ale east, genocide of religious and ethnic minorities. they are slaughtering muslims who refuse to accept their medieval ways. civilians,heading including executing lgbt people. they are murdering americans and europeans and torturing and rape in -- raping women and girls. like this one, after paris, brussels, and san bernardino, i have laid out a plan to defeat isis and the other radical jihadist groups in the region and beyond. the attack in orlando makes it even more clear we cannot contain this threat. we must defeat it. the coalitionis effort in syria and iraq has

made recent gains in the last month. so we should keep the pressure on ramping up the air campaign, accelerating support for our friends fighting to take and hold ground, and pushing our partners in the region to do even more. also need continued american leadership to help resolve -- as isis loses actual ground in iraq and syria, -- from afghanistan to libya to europe. we saw it in paris and brussels. ideology thatted

inspires the so-called lone walls. radicalize individuals who may or may not have had contact and direction from any formal organization. experts on the battlefield must succeed but it will take more than that. [applause] ms. clinton: we have to be just as adaptable and versatile as our enemies. i will make identifying and stopping lone walls a top priority as president. [applause] i will put a team together from across our government, the entire government, as well as the communities,r, and

to get on top of the urgent challenge. i will make sure our law enforcement and intelligence professionals have all the resources they need to get the job done. are threehis, there areas that demand attention. we and our allies must work hand-in-hand to dismantle the networks that move money and propaganda and arms and fighters around the world. [applause] we have to stem the flow of jihadists, from europe and america to iraq, syria, afghanistan, and back again. the only way to do this is by working closely with partners, strengthening our alliances, not weakening them, or walking away from them.

home, we must harden our defenses. we have to do more to support emergency responders and intelligence officers who do incredible work every day at great personal risk to keep our country safe. [applause] i have seen firsthand how hard the job is and how well they do it. in orlando, it seems one police officer was shot in the head. saved aly, his life was a kevlar helmet, something folks here know a lot about. [applause] ms. clinton: it has often been said that our law enforcement

and intelligence agencies, first responders, have to be right 100% of the time. the terrorists only have to be right once. what a heavy responsibility. these men and women deserve both our respect and gratitude, and they deserve the right tools and resources and training. too often, state and local officials cannot get access to intelligence by the federal government that would help them do their jobs and we need to change that. [applause] ms. clinton: we also need to work with local law enforcement and business owners on ways to protect vulnerable so-called soft targets. like nightclubs and shopping malls, hotels and movie theaters and schools and house of worship. of americans are

asking how it was possible that someone already on the fbi's radar would still have been able to commit an attack like the one in orlando, and what more we can do to stop this kind of thing from happening again. we have to see what the investigation under covers. if there are things that can and should be done to improve our ability to prevent, we must do them. we know we need more resources for the fight. professionals who keep us safe would be the first to say we need better intelligence to disrupt terrorist plot before they can be carried out. i have proposed an intelligence search to bolster our capabilities across the board with appropriate safeguards here at home. even as we make sure security officials get the tools they to prevent attacks, it is

essential we stop terrorists from getting the tools they need to carry out the attacks. [applause] ms. clinton: that is especially true when it comes to assault weapons like those used in orlando and san bernardino. [applause] ms. clinton: now, i believe weapons of war have no place on our street. [applause] have our disagreements about gun safety regulations, but we should all be able to

agree on a few essential things. you for a is watching suspected terrorist link, you should not be able to just go buy a gun with no questions asked. [applause] >> hillary clinton addressing a rally in cleveland, ohio, joined by the state's senior u.s. senator brown. mrs. clinton discussing the weekend massacre that took lace at the pulse nightclub in orlando, florida. she says the killer is consumed by rage, that the lgbt -- that the shooter was -- was consumed by rage at the lgbt community. we know the barbarity faced from radical jihadist is profound. she has laid out a plan to defeat isis and added we cannot contain the threat.

we must defeat it. she said keeping up the pressure via the air campaign. she said american leadership can resolve the conflict that helps isis recruitment efforts, which sees -- she said helped threats to metastasize. she added it would take more than efforts on the battlefield to defeat isis. we have to be just as adaptable and versatile as our enemies. wading into the gun control debate, mrs. clinton said i believe weapons of war have no place on our streets. the authorities in florida, federal, state, and local authorities have said the killer involved in the massacre in ,rlando had an assault weapon one that shot as many as 50 rounds had -- at a time. hillary clinton speaking in cleveland.

too soon to say whether anyone will be in charge with the orlando mass the shooting. the u.s. attorney says other people are being investigated in connection with the massacre. the man identified as the shooter was killed in the exchange of gunfire with police. 49 people died in the attack and 53 others were wounded. bernie sanders will meet with hillary clinton tomorrow night. sanders is opening to get -- hoping to get some of his positions in the platform. prosecutors are calling more witnesses in the murder case and the death of freddie gray. gray was given a rough ride when he was left handcuffed and shackled but undershirt -- unrestrained by a seatbelt. they also said he was negligent when he failed to call for medical aid. the attorney said the cop drove

carefully and followed orders. is able tosays it get 83% of flights in the air despite a strike by pilots. about one fourth of the airline's pilots have lucked out because they have to work longer hours without more pay. railroad -- railroad workers and energy -- have also walked out because of water disputes including new labor reforms. power news 24 hours a day by 2400 journalists in more than 150 news bureaus around the world. oliver and scholar, back to you. -- scarlet, back to you. scarlet: thanks. the u.k. chancellor, george osborne, has stepped up his grexit stand. trade agreements need to be renegotiated. and --

>> i am confident they will remain in the eu. i think the u.k. has a huge amount to offer going forward. there will be investor concern if the country votes to quit the eu it is very important that people understand that britain is part of a big, international market. despite those declines and the polls we have seen, there is some uncertainty regarding city firms, it is unlikely that britain votes out there it is there still a sense of complacency in the city? >> this is an important referendum where every vote counts. be theend, it will decision of the british people. i would say that people who are concerned for businesses and investors who are concerned about the prospect of britain quitting the eu should speak up.

many other businesses like airbus have done so in recent days. it is not a moment for businesses to sit it out. people should speak out about what they see as the risk of speaking and the huge opportunities. >> lowest in 40 years in terms of the grexit. is that something that concerns you or would that be good? >> the treasury analysis showed there would be a depreciation if they were to quit the eu. that would have an impact on inflation. the important point here is yes, of course there would be concerns in financial markets and yes, there would be uncertainty for a number of years as written sought to work out its new trading relationship with the european union and other countries around the world. the real challenge would be that britain would be permanently poorer and trade less and be less productive. that would be reflected in the

value of assets and the like here i am confident the british aware of the economic risk and can see the economic opportunity that britain remains in. talk a lot about a downside. let's remember the upside. we will have removed an enormous uncertainty of the british economy and it will be the undoubtedly case that it is the most productive place to come and do business than any other place in the advanced world. yes of course, we will focus on the risks. there are massive opportunities at stake. some of the businesses welcome that decline. >> i do not talk about the precise value, but, it is never a good thing for businesses to have an economy that is weaker, and economy attracting less investment. it is never a good thing for any business, whoever you are. in a sporting business, the last

thing you want is uncertainty about the trading relationship the country has with your key export markets. the president of the european council today was saying it would take two years to exit the eu. potentially at least five years to negotiate new relationships with key european markets and the u.k.. anyn think there are businesses that should be thinking this is a good thing for them. >> morgan stanley and citigroup have all talked about and staff abroad and what would you tell them on june 24 to stop them from doing that? >> i am concentrating on making sure the country remains on the 23rd. one thing at risk is a single market in financial services which britain benefits from. it means the u.k. is a headquarters for a lot of companies in the european confident. had big investors like thisgan making precisely

point. one of the great benefit our fraternity's in the eu, and look at the upside. we have got a british commissioner's the capital markets union. britain's businesses and london as a financial center and other financial centers in the u.k. are benefiting on that in the market as it deepens. that is the big upside for financial services in the u.k. >> do you also want to stay chancellor regardless of next week? >> i serve at the request of the prime minister. ais is a job where i have huge amount to do and to give. i want to make sure i'm using the time and energy to be building up the british economy and not dealing with fallout of a grexit. that is why i am focusing hard on making sure the country remains. it is not about my job in the end.

it is about the country's long-term economic future. that was george osborne care with us now is joe weisenthal. joe: seems like we are catching steam. and is the status here things about to break one way or another? joe: this morning was more interesting because everybody was waiting for the results of one poll. when will it come out, and the town was going all kinds of ways. it did show a further drift toward the main camp. if you look at the odds on the betting market, i think you have the chart. odds of a grexit basically at the highest level yet, close to 40% to we are closing in on 40%. is a dramatic move everyone is paying attention to just in june alone. >> you get the impression that even with the polls, more and

more are showing that they might be in the loop right now. people do not believe it. if you look at any volatility measure, three-month or one right now.bsolutely >> i have got a chart here looking at the euro stocks index volatility versus the cboe index volatility. the bottom one shows that right now, right here, we are at a spread, the largest since 2008. european stocks going forward, it is very high. what is set to break here? >> the thing that struck me in the conversation that i have been thinking a lot about is if they vote to leave after, the pound will fall and everybody expects that. it is the time afterward that is a huge uncertainty. two years to negotiate the exit and another five years perhaps to negotiate what the traitor

relationship is between the u.k. and the rest of the single market. that is an extraordinarily long time for any modern economy to have no idea of what the status will be with the countries that it has been connected with for so long. i do not think anybody knows how this will play out. a lot of dependency and uncertainty. it will be very interesting. >> it does not seem like it will pass as easily as the situation did. and then they won a referendum as well. joe: this will be quite a story. oliver: thanks. ed, the global head of commodities research at citigroup with joe. scarlet: let's switch from europe to canada. walmart canada announced it will no longer accept credit cards because of high fees imposed on the retailer. oliver: the change will start taking place next month and

rollout in paces across the country. here more -- here with more is emily. bigla, is this a inconvenience for customers? why does walmart want to do this now? >> it seems like a huge inconvenience. a couple of things. walmart, a growth for as is mexico. a lot of people are very loyal. it is ar piece of long-standing battle. i will go into more detail in a second. in terms of the hit to volume and walmart sales because these of theen taken out picture in this country, it may not be as impactful as one might think. generally, more likely to put things on debit cards that americans are.

we pull that straight out of the bank accounts rather than on credit cards. the hit itself, the proportion of sales fed through visa, may not be like other places. for sure, there will be an inconvenience. i guess it is one with growing sales and walmart that they can actually take. putting out a comment from their spokes person, visa saying, walmart -- even though visa -- we're disappointed that walmart chose their own financial -- financial interests ahead of the country interest. if anyone complains about the high fees, it tends to be american express. scarlet: all right. thank you so much.

some headlines from apple. the developer conference is taking place in san francisco. eddie cue is taking the stage. he was introducing the tv remote app to the iphone for gaming and feeling and announcing the move to integrate youtube. steady inlding pretty the event around there. it looks like we will talk about the tv. scarlet: we will continue to march with the headlines for you. this is bloomberg markets. ♪

scarlet: the u.k. chancellor is wrapping up his grexit stats. he says the u.k. would be permanently poor. india passes renewable energy sector, buying renewable energy for about $1.4 billion. it is the biggest corporate deal in the energy sector. of solar panels has plunged was an 80% in the past five years and it is expected to keep falling. do not look at solar as the answer to the world's energy needs. chancellor george osborne called for pro-european e-business is to speak up about their concerns. this is as polls suggest momentum is building to leave. he spoke to bloomberg tv earlier.

>> businesses or investors who are concerned about the prospect of quitting the eu should speak up. many other businesses like airbus and bmw have done so in recent days. it is not a moment for businesses to sit it out. out aboutuld speak what they believe are opportunities remaining in the eu emerging market etf's more than doubled. that is all according to data compiled by bloomberg. the latest results left up for the year. the chinese smartphone company has sold an unimpressed -- unprecedented number of devices since its launch. sales hit 7 million in three months. the company targets younger buyers. apple now ranks fourth in global market share. a surprise move by walmart, the

leader of the china unit to the u.k.. sean clark will take over next month. a price war has squeezed profits in the business. all four of the country's's biggest chains have replaced ceo's. a company buying a 1.1 gigawatts store and portfolio from wells fund energy. according to exchange filing, it is india's is clean energy deal. the acquisition enterprise value is $1.4 billion. 820 million of that in debt. the deal is expected to close in september. now time for eight to take, where we provide context and background to an issue of interest. solar has grown leaps and bounds in the last decade but still makes up a small fraction of the world energy supply. by solar powerd grew by one third in 2015 since

the falling prices in tax taking and investors are notice, pouring billions of dollars in the industry. congress released a deal that increase tax credits in solar power for another five years. elsewhere, a number of nations led by germany and spain and the u.k. have scaled back incentives. here is background. solar sails were fst made in 1953 and for decades, it was mostly just in satellites. producing the majority of the first cells. expanded system of terrorists, also known as fixed price for renewable power. the model was copied in other countries and other solar panels sprouted up that a price war ensued. source still has a long way to go.

the agency says it might generate 15% of electricity by 2050 if policy encourages technology. proponents of fossil fuel say it will never be a practical source because of the weather and it is too expensive. the cost is falling as the price of coal goes up. the biggest question is ultimately political. power will undoubtedly the crater in the long run and may be cheaper, but is it enough to compel world leaders now? visit bloomberg.com. on bloombergng up markets, wall street's's annual fund took lace in new york, raising $1.5 million for pediatric cancer research. one of the big winners is up next. also, the stock of the day. best day in four months without doing a thing. our characterge,

may be next on the buyout feet. ♪

scarlet: let's head down to the markets desk were julie hyman has news on the stock. best day in four months without doing a thing. a rival's's big takeover 78 direct message that this may be next on the buyout feet. any guesses? oliver: i could recognize that dip from a mile away. twitter is the company we talking about. the stock has not done well but is getting caught up in the speculation updraft. you have a year to date chart down 36%. a lot of questions about twitter's growth prospect that has driven the chart down.

you have had speculation creep up that it may be a target of act edition. today,look at the stock because of the microsoft acquisition of linkedin, there is a lot of talk about, this sort of opens it up. twitter may be an acquisition because linkedin was thought of as somewhat unlikely a target. this may open new horizons for twitter. that is the thinking. shares are up by 6% today. linked in shares are seeing a from $196 pering share. we have seen no up as well. yelp had been up to now turn lower as investors are trying to assess the real process for each of these companies and whether twitter's are real or not, the stock is getting a bit today. >> thank you, julie hyman. bench pressed, those are

some of the events making up wall street's's annual decathlon which happened sunday. scarlet: supporting pediatric cancer research. anticipated.irms let's congratulate one of the big winners, mark rubin, a former nfl player. he joins us now. congratulations? how are you feeling? i understand this was a close one for the second year in a row where you did not find out you would win until the final event. >> yes, it came down to the it was a run and i was able to win by a couple tenths of one second. >> that is a brutal race. last one, it was a was a long day. it ends around 2:00 or three clock. it is not an easy race when you are fresh, let alone the other

ones. it was exhausting. how has the competition changed? >> we get more exposure and more participants and our fundraising goes as well. last year, we raised $1 million and a goal is to raise $1.5 million to fund clinical jobs. 20% did not respond to the additional cancer therapies. we were able to achieve our goal of $1.5 million and we will shoot for more next year. >> is there anything else you have been doing? you have been involved for so long now. core network of guys who have been doing this for several years. good come robbery around them. you spread the word, coworkers and friends and people you meet. we will able to partner with sports, airing a one-hour segment on june 25. great and hopefully we can get

more people involved next year. scarlet: fundraising counts as part of the score. >> the competition is a two day event. saturday, it was a team competition. fundraising is part of your total score. sunday, it was an individual event. the top fundraiser for the individual was michael, who raised over $35,000, an incredible number. oliver: we have got a lot of events and a lot of different training type to do. you work on wall street. tell us about what you do on a daily basis and how your training regiment fits into that. part is an honor to be a of it. at the start of the event, one of the oncologist spoke to us for a little bit, telling us firsthand what she experienced and the difference the fundraising makes. when you have that in the back of your mind, you will be worth the a 10 way 12 hour day, you do

not always want to go for a run or go to the gym. it motivates you to keep on going. scarlet: you will be back to defend your title next year. >> we will see. it is tough but it is a great event. people i wonder will jump in if they know. class of long as the fundraiser keeps going up, it will be great to see. scarlet: this year, it is going to different cities as well. >> yes. new york city was the first of a five city tour. boston will be next and i believe that is july 23 and 24th. chicago, san francisco, and houston. one and done. i am inclined to sit back and watch the other guys go. oliver: are you hitting the gym every day? is training for next year? >> athletes who like to live the active lifestyle. you are always working out in

tailor your workouts accordingly. >> congratulations. one --aight time he has won. there was a quarterback who did it who beat me and had a much farther throw. scarlet: thank you for joining us. congratulations once again for a great event. this is bloomberg markets. as we had to break, take a look at how the markets are trading. u.s. stocks are down. actually try to make a comeback. that at lowe's. ♪ -- lows. ♪

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david: it 2 p.m. in new york, 7:00 p.m. and london and 2 a.m. in hong kong. scarlet: welcome to bloomberg markets.

-- vonnie: welcome to bloomberg markets. here is what we are watching this hour. microsoft buys linkedin for $26 billion. vonnie: stocks headed south for a third straight day. what would he the bigger catalyst for a move, the fed or the bank of japan? hillary clinton says today is not a day for politics. donald trump is due to speak on the topic at the bottom of the hour. : we are getting headlines from apple and we will be checking in with cory johnson at the worldwide developers conference. down aboutle stocks 1.4%. david: a lot of reports about