-- 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 what might happen with siri, the

ai apple has moving to the desktop. let's bring in cory johnson who joins us from the apple worldwide developers conference in san francisco. take us through the announcements we have had thus the makeoverabout series was due to get. what have we learned? the biggest news is probably siri moving from the ils, which is the operating system that runs the phone and ipad and expanding to the macintosh operating system and allowing developers to think about ways to write programs to use siri in ils and when they are writing for the macintosh itself. this opens it up to more integration. it was thought to be a competitive advantage because it only works on apple stuff. it a been thinking about ways companies can regulate that and

think siri has gotten to a place where they could do that. i think siri is a very hit or miss product for a lot of people and apple is hoping maybe more users would mean more success for that roddick. vonnie: tell us about the name change -- are there changes to the operating system yet? cory: that remains to be seen. they're promising better speed and better ease-of-use. i think the stuff to look for is os and the ils start to intertwine. ,f those apps get more complex to see them start to show up makes the mac operating system more interesting. successhad a lot of growing market share while the pc industry has been shrinking. they will be looking for what they want to do and how they can keep growing.

success in pcs when the pc market is in contraction has enabled powerful thing for apple. our colleague here has talked a lot about apple's transition to a service-based company. about applelearning music, apple tv and apple pay at this conference today? i think one of the most important things going on here is the thing that would excite the developing community and not excite the average consumer out there, but since we have a bloomberg is this audience, i think we can talk about this, which is the way apple has collected money. the way it has collected money is to take a 30% cut of every single app that is sold. but that's a one time thing. little apps that run little

businesses that can survive a small payment upfront because there's no money from the backend. then apple gets 30% of all in app purchases. you look at the kim kardashian game and the purchases that inform that, it was 30% with every purchase. apple was expecting to announce a change in the way that works. there's 30% upfront but in subsequent reorders every year, apple would only get 15%. that might not inclined developers to think about if i develop a subscription app instead of one-time pay app, i payment from more and companies that could grow over time as companies use and keep those apps in more sustainable business models because they know there's more money on the backend with a long

tail than at the front. vonnie: the numbers are boggling. apple says they've sold 200 million apps. time, microsoft is holding its event. it has just talked about its new console and various other announcements, but the big thing today is the $26.2 billion deal for linkedin. i think the important thing is not so much the financial numbers, because it is probably less than 30 times if you assume they are bought with wall street figures, which is a big assumption. but what can they do with this company? there are great challenges. is focused on a

very different business model than the microsoft salesforce. yes, they are calling on businesses, but what linkedin is selling is very different. principally, it's focused on bringingd focused on this cloud-based product with a different kind of model than its cloud-based and pay by use. selling it for a different angle. do you get rid of all of those people? do you look the microsoft sales people one more arrow in their quiver? it is a great challenge that they are going to have. what are they going to do and how are they going to make it global and specific to microsoft? that, theseght of

companies had a conference this morning. what have you heard to give you any encouragement that that integration is going to work going forward? like jeff weiner personally quite a bit and i wish him to do well. yearmade a move last toward customer relationship management. it was an effort to have a product so that salespeople could find prospects and monitor the prospect all within linkedin. if you are selling something and want to find out who the purchaser is, i don't care if you selling ball bearings or semi conductors, the place to do that is linkedin. was not the process something linkedin had before.

you wouldomething turn to salesforce or oracle for. now linkedin could develop something because they have the sales lead and a huge audience that looks to them for the sales s.ad microsoft and linkedin could write that software and have the development to do it and they have the -- they hinted at it during a conference call and that could be really interesting. david: cory johnson outside the worldwide developers conference. think you very much. the markets close in less than two hours and stocks are near session lows. ramy inocencio has a look at the latest. ramy: we are seeing this downward trajectory throughout the course of the day. this is a snapshot with the dow and s&p off on the order of

about .5%. ofare looking at a lot headwinds this week and next week with the fed. the june meeting and the bank of japan also meeting to talk about rates and the brexit is definitely on the mind of traders. let's look at my bloomberg and i want to show you what's happening on the s&p. creep up across the board. utilities are only marginally up higher. information technology continues to be the biggest laggard, down about .8%. energy had been higher but losing ground, down by .1%. to stick with energy because in terms of morgan stanley, upgrading u.s. toloration and production

attractive and boosting brent oil to $80 a barrel from $60 and barrel, so people going long on oil should be interested in that news. looking at nymex crude, it is lower by .9%. stocks thatt energy are seeing the biggest point ayers and these are where they stand. stanley'se of morgan top picks. exxon mobil, you see at a 52 week high. on the flipside, i want to look at what is happening in terms of the tech sphere and tech is going the other way. with facebook, the interesting thing is the short seller has said face book is losing an extensive amount of relevancy and that it will not be a $330 billion company one year from today.

falling on capital expenditure, announcing it will by linkedin and apple down 1.3%. iphone shipments will fall for the first time 2007 on lukewarm demand for the new model when it comes out this year. david: what is happening in the safe havens? ramy: look at what is happening now, basically the dollar index is flat after two days of gains and the dollar spot flat after two days of gains, gold futures, a risk off environment. this had been higher in the past hour on the order of about 1% and the 10 year yield is down. david: thank you very much. let's get a check on bloomberg

first word news with mark crumpton rum the newsroom. presidential candidates weighed in again on the tragedy in orlando. donald trump says terrible intelligence gathering is hampering efforts to protect the united states. obama for president not describing the attack as radical islamic terrorism. trump is expected to speak in new hampshire in a this hour. hillary clinton was in cleveland, ohio for a rally and told orders today is not a day for politics. ms. clinton: this is a moment when all americans need to stand together. no money how may times we indoor attacks like this, the horror never phase. .- the horror never fades the murder of innocent people breaks our hearts, tears at arson's of security, and makes us furious. now, we have to steal our resolve to respond. referring to so-called

lone wolf attacks, mrs. clinton said the country is facing a twisted ideology and poisoned psychology. house speaker paul ryan says he does not agree with ultram task call to deport millions of undocumented immigrants but is standing behind his endorsement and dismissed a chance of anyone mounting a challenge to trumpet at the convention. there's even more pressure on congress to do something about puerto rico's that crisis. the ruling leaves it up to congress to fix the problem. the house passed a bill that would allow restructuring of puerto rico's $70 billion debt. twentysomething in london, rent is eating up your paycheck. oft now costs an average 57% post-tax income for people under 30. in 2007.p from 31%

the average cost, $1600 a month. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i mark crumpton. back to you. david: up next, a surprise coming from the bank of japan when it meets on thursday? a shock from the boj could do thatdamage than anything comes out of the fed meeting later this week. ♪

david: breaking news here -- it looks like microsoft's credit rating may be cut here. it looks like movies is reaffirming the short term rating. vonnie: it is a aaa and this is

obvious the on the back of the deal to buy linkedin because that will be an all cash deal and microsoft is paying nearly $200 a share for linkedin. the stock has been down for most of the day. microsoft is presenting some new products right now in los angeles. the senior rating may be cut by movies. the fate of the fomc meeting was sealed by the week jobs report last month. vonnie: our next guest says he is more worried about the bank of japan for pointing than the fed moving too quickly. thank you for joining us. not really looking for a move from the federal reserve to are about we may get some kind of change in language. what does the fed want to telegraph to market right now? i think the fed wants to

reiterate the message janet yellen shared in philadelphia, which is to continue to be cautiously optimistic about the outlook. crying is going to be more important what happens during the press conference opposed to what actually goes in the policy statement. tweaks insee if you the language but i'm not expecting any substantive changes. i don't want to hear her change her tune to be harping on the negative or accentuating the positive. when she has tried that in the past, the market has murder -- has moved adversely against her. i think if she threads the needle like she did in philadelphia, the markets will receive that in stride. what -- i imagine the jobs report a weak and a half ago is something they will chew over how much will that way on policymakers? in a way, it might tuck

the tales of those who have been more hawkish. seen georgeady dissent from the majority opinion and we could see jim .ullard dissent before the jobs report came out, i was expecting we might see to but now it might only be the one because of the negative news on the employment situation. need to figure out if that was an aberration or a change in the trend. it might quiet down some of the hawks a little bit. vonnie: the bank of japan may be a bigger announcement for the markets. any people on the show in recent days have said the bank of japan is not going to do anything because it needs to have some dry powder. what could the bank of japan surprise the market with?

i don't buy the argument that any central bank is out of dry powder. there's never a shortage of things to buy. they can do what the ecb has done, which is announced a program in which they bribe banks to lend to customers. i think that would be constructive and could weaken the yen and send japanese shares higher. or they could go negative with rates. right now, their negative policy is weak compared to what they have in europe. don't dot is if they anything, that could be a negative and we could see strengthening of the yen and the japanese market selloff. the bank of japan decision is pivotal to the markets in the near term than the that and could either mean it's a tipping point where we could see a

further move down or where we move higher. hinges on what the bank of japan does going into thursday morning. i want to get the view from your vantage on how important that is to investors. youru put together portfolio and move things around, how is it affecting that it is certainly one of the risks we look at. we are anticipating if they do vote to leave, that it is creating more volatility and we could see further rallying in safe haven yields, whether that's in treasuries or u.k. treasuries -- i don't think we would see yields go up if they voted to leave. i'm hoping they will decide to stay within the union and i

think the fallout would be rather short-lived. it should the concentrated on affecting u.k. markets over the course of a few months. anyou think about it from economic perspective, the united kingdom only represents about 3% of trade, so it is relatively small potatoes, but i think it's going to create some volatility going in and it gets more exposure as things have begun to selloff as the polls have shown brexit taking the lead. vonnie: thank you. ahead, wall street gets new competition from silicon valley. exchange could disrupt the nyse and nasdaq. ♪

vonnie: you are watching bloomberg markets. i'm vonnie quinn. what some are calling a radical idea, tracking investors to entice more private companies to go public by building a long-term stock exchange. what: who is eric ries and is he proposing to do? name: he's a household among silicon valley entrepreneurs. he wrote a book called the lien startup which details a way to build with a minimum viable product. it has been adopted widely by silicon valley entrepreneurs and this is his next act. he wants to build a brand-new stock exchange that can build an incentive structure to focus on long-term goals rather than quarterly metrics and others.

david: it seems like he's trying to make a point about the way we start companies these days. guest: it started as an idea and now he's building a team to make it happen. i think a lot of smart people know it's a long road and is a multi-year process to even get approval. once they are up and running, they will be getting companies to list on a brand-new exchange. this would be totally new. you can read all about it in the latest version of bloomberg is this week. -- bloomberg businessweek. ♪

david: from bloomberg world headquarters in your this is bloomberg markets. let's start with first word news

with mark crumpton with more in the newsroom. mark: thank you very much. the presumptive republican presidential candidate, donald trump, speaking at this hour in new hampshire. let's listen in life. trump: secret service agents have seen her under pressure and in times of stress have stated she lacks the temperament and integrity to be our president. there will be plenty of opportunity to discuss these important issues at a later time and i will deliver that speech very, very soon. but today, there is only one thing to discuss, the growing threat of terrorism inside of our borders. the attack on the pulse nightclub in orlando, florida, was the worst terror strike on andsoil since september 11 the worst mass shooting in our country's history. so many people -- just hard to

dead,e -- so many people so many people gravely injured, so much carnage, such a disgrace. the horror is beyond description. the families of these wonderful people are totally devastated and they will be forever. nation andur whole indeed the whole world is devastated. we express our deepest sympathies to the victims, the wounded, and their families. one people for our nation's loss and pledge our support to any and all who need it. i would like to ask now that we all observe a moment of silence for the victims of this attack.

thank you. our nation stands together in solidarity with the members of orlando's lgbt community. they have been through something that nobody could ever experience. this is a very dark moment in america's history. a radical islamic terrorist targeted nightclub, not only because he wanted to kill americans, but in order to execute gay and lesbian citizens because of their sexual orientation. it is a strike at the heart and soul of who we are as a nation. ability assault on the of free people to live their lives, love who they want, and express their identity. ofis an attack on the right every single american to live in peace and safety in their own

country. we need to respond to this attack as one united people with force, purpose, and determination. but the current clinically correct response cripples our ability to talk and to think and act clearly. we are not acting clearly, we are not talking clearly. we've got problems. if we don't get tough and if we we areet smart and fast, not going to have our country anymore. there will be nothing, absolutely nothing left. whose name i will not use or ever say was born and afghan of afghan parents who emigrated to the united states. forfather published support the afghan taliban and, a regime

that murders those that do not share it radical views and they have murdered plenty. his father even said he was running for president of afghanistan. the bottom line was even that's the only reason the killer was in america was in the first place was because we allowed his family to come here. that is a fact and it is a fact we need to talk about. we have a dysfunctional immigration citizens -- immigration system that does not allow us to know who we let into our country and is not permit us protect our citizens properly. we have incompetent administration and if i elected president, that will not change. change over the next four years. we have an administration that will not change. it is goingthere, to change and it is going to change weekly. we are going from totally incompetent to just the opposite, leave me.

[applause] thank you. dead and perhaps more, ultimately, and dozens more wounded, we cannot afford to talk around issues anymore. we have to address these issues had on. and after san bernardino and was met with great scorn and anger. but now, many years, many are saying that i was right to do so . is temporary,ause we must find out what is going on. it will be lifted, this band, when and if we are in a position as a nation to properly and perfectly screen these people coming into our country. in and we don't know what we are doing. the immigration laws of the united states give the president

powers to suspend entry into the country of any class of persons. to be determined by the president. for the interest of the united states and it is as he or she deems appropriate. hopefully it is he in this case. [applause] thank you. power to protect the american people. when i'm elected, i will suspend immigration from areas of the is a proventhere history of terrorism against the united states europe, or our allies until we fully understand how to in these threats. end these threats. [applause] thank you. and by the way, we have no choice. long overdued

security assessment, we will develop a responsible immigration policy that serves the interest and values of america. [applause] allownot continue to thousands upon thousands of people to pour into our country, many of whom have the same not process as this savage killer. many of the principles of radical islam are incompatible with western values and institutions. [applause] remember this -- radical islam is anti-woman, anti-gay and anti-american. [applause] america to allow become a place where gay people,

christian people, jewish people are targets of persecution and intimidation by radical islamic preachers of hate and violence. [applause] this is not just a national security issue, it is a quality of life issue. to protect the quality of life for all americans, women and children, gay and straight, jews and christians, and all people, we need to tell the truth about radical islam and we need to do it now. [applause] the likely republican presidential nominee speaking in manchester, new hampshire. mr. trump making comments about the weekend massacre of 49 people at a gay nightclub in orlando, florida. esther trump saying so much

carnage, such a disgrace, the horror is beyond description. he said the only reason the killer was in america in the first place was because his family was allowed to come here. he said we have a dysfunctional immigration system and incompetent administration. he said we cannot afford to talk around the issues anymore. he talked about his proposal to ban muslims from entering the united states. he said it would be lifted when we can properly screen who is coming in and said i will use this power to protect the american people. let's bring in our bloomberg politics reporter joining us from washington. he wrote a piece about how this shooting has changed the presidential race. some of what mr. trump had to say. what are your thoughts? guest: donald trump is using

words like smart and tough to paint a picture that he's going to be the sort of president two can protect people. it reminds me of the way george w. bush one reelection as for training himself as a tough candidate and you saw donald trump congratulating himself or proposing a blanket dan on muslim immigration and travel to the united states. he says this tap -- this attack than the cases proposal which by been widely criticized hillary clinton and democrats as well as congressional leaders. trumpk we are looking at paint a narrative that he's going to be the toughest candidate for president to deal with terrorism. tok: did mr. trump attempt move toward the political center? he included gay people in his remarks. he said gay, straight, christian, jew, all types of americans. he said his job is to protect

the american people -- he widened the tent. guest: i would not interpret that as a shift to the center. he is just saying any attack on we shouldis something take seriously regardless of sexual orientation, so there is no change in policy there. "we cannotid continue to allow thousands of people to come into this country you have the same mindset as the orlando killer. mrs. clinton tried to make a been i.s.n and has she says on the campaign trail, building bridges and not wall but mr. trump still suggesting he wants to hold a wall between united states and mexico and that he wants to institute immigration policies that would not let certain people from areas that are anti-american come in unless they are properly vetted. what is the upshot of all of this? is an extremely

important distinction and a massive one between donald trump and hillary clinton. you heard hillary clinton talking about building a bridge to bring in muslims who she believes will be able to be brought into attack and root out not only the people who are of these ideologies -- donald trump articulated a very different idea, which is to and muslims from entering the country and close the borders for an indefinite time until the united states can properly and perfectly screen them. it is hard to imagine how anyone can be perfectly screen, but he also said interestingly that he would suspend all immigration from parts of the world with a proven history of terrorism against the united states. to know -- there will be questions asked about whether a president has unilateral authority to do that because immigration laws don't

make those kinds of distinctions. i think he moved a little bit and shifted on his immigration policy. thank you very much. the likely republican presidential nominee, donald trump, speaking in manchester, new hampshire, calling the nightclub ingay strike atlorida, a the heart and soul of who we are as a nation and said if we do fast, inough and smart his words, we are not going to have our country anymore. the words of donald trump today in new hampshire. to keepf you want watching that speech, it is terminal.on the has apple made any groundbreaking remarks at their conference? we will talk to cory johnson who

brings us the latest. ♪

david: this is bloomberg markets. time for the bloomberg business flash. some of the biggest business stories in the news right now. morgan stanley won the role on microsoft's advisor for microsoft to buy linkedin. the advisor says morgan stanley may reason between $10 million and $20 million on the transaction. goldman sachs had worked on $25 million worth of deals for microsoft. aviation regulators are seeking a fine against amazon.com, accusing them of improperly sending a chemical that made contact with nine workers at a ups ability. companies hit by the fines can negotiate with the agency and

sometimes have their penalties reduce. -- reduced. david: nokia has signed a deal with china mobile to provide infrastructure on the cloud network and will give china mobile a type of 5g ready base station. is the bloomberg business flash. vonnie: coming up, private equity tightened again. we will discuss with the more tech companies will be taken private. we also have a lens into the future of digital finance. ♪

vonnie: you are watching bloomberg markets. i'm vonnie quinn along with david gura. microsoft buying linkedin for $26.2 billion, one of the largest tech deals on record.

david: joining us now at the conference in montreal is the man who knows a thing or two about big deals in the tech sector, glenn hutchins. good to have you with us. amiga your reaction to this deal. i wonder from all of your experience -- let me get your reaction to this deal. what could make these two companies work together? i don't know anything about the economics of the deal. strategically, because i'm not involved with it, it looks like linkedin fits nicely. think of them as the social platform for business. it is what facebook is to consumer activity. this looks like a strategically smart thing to do. vonnie: you are at a conference called shaping a new era of prosperity and i wonder what

advice you gave to the mexican finance minister on how to achieve returns in a world where the new york state retirement system just reported at a less than .2% return? : the mexicans are doing some very smart things, and i think we could all learn from them to make structural adjustments to make reforms and create conditions for growth. we are in a situation where we should be learning from them. look atmber two, people overall economic growth and what i think they are missing is there's one part of our economy that is growing rapidly, which is the technology and telecom related heart of the economy. the average is relatively modest growth. the obvious solution to investing successfully is expose

investments to a growing part of the economy. you sit on the board of the endowment at harvard management company. there has been some turbulence there and we see the ceo go on medical leave. how happy is the board with the way the endowment is being run right now? glenn: i just had my last board meeting, so you'll have to let the board speak for themselves. i'm not going to talk about that. vonnie: you are no longer part of the board? glenn: i just had my last meeting, my last board meeting after 10 years. did it seem like your tenure had come to an end or was there another reason? glenn: any good board has term

limits and my time was up. is theyon these matters have people who speak for the organization and i'm neither of those, so i'm not going to make comments on that. vonnie: you say the growth parts of the economy are in technology and people should invest in those areas and not declining areas like energy. you are speaking to ceos and corporate managers. america is not spending enough on investments. how do you get that to happen in an era where we are gridlocked? : one of the things i said to the group today is mobile internet is one of the biggest investment trends i've seen in my lifetime. building companies that build on the mobile internet is dependent on deploying broadband technologies, 4g today and 5g in

the future. mexico is in the process of deploying a world-class 4g network. and europe are arguably still running on 3g and a lot of that has to do with governments not moving fast enough to create the conditions under which private business can deploy those investments. i think if governments would get out of the way and let private business work, you could see a lot more investment in that part of the economy which is growing rapidly and can grow a huge amount. david: there is a lot of excitements rounding financial technology and i wonder as you look at that sector, what transformations you might see on the near-term horizon going forward? glenn: there is a lot of thin tech investing going on right around a lot of it is

the containment space which i find very interesting. a lot of good companies being formed and going public. but an area that is in its very .arly days i find bitcoin technology interesting. not bitcoin as a currency unit. it's not simply the block chain, but the use of bitcoin around thes to move world at the speed of electrons and that very low cost. vonnie: you say mexico is doing much better than us when it comes to progress. is in a different part of a cycle in terms of development. to dooes america need next short of more investment in technology? : i was comparing mexico to what is happening in europe and i think japan is a good example. my point is we have been relying

on what we discussed today in this conference. we've been relying for years now on monetary policies simulation represented by quantitative easing and low interest rates around the world and the implementation in some parts of the world of negative interest rates. when fiscal authorities are not prepared to spend that kind of money to create economic growth or a propellant to economic growth, particularly in european and japanese countries where they have not been willing to make structural changes, most notably in the labor markets to create the conditions were growth. fiscal policies and structural policies -- vonnie: thank you.

3:00 p.m. in new york. welcome to bloomberg markets. ♪

from bloomberg world headquarters in new york, good afternoon. here is what we are watching. the weeke kicking off in the red. investors are wavering ahead of the decision on interest rates wednesday. microsoft is buying linkedin. one of the richest tech deals on record. is microsoft overpaying? we have an interview with honeywell ceo. technologies recently fell through. can talks be revised. of hour from the close trading. >> we are down at session lows. a snapshot of where we stand.