altice into the u.s. market with the acquisition while liberty global boss talks up the benefits of a tie up with vodafone. >> tonight expect a fed rate hike until 2016. charles evans says inflation is still too low to tighten. this as investors countdown to the fomc meeting minutes. >> keep calm. that's yahoo!'s message to investors after fears send the stock lower but any change will not effect it's alibaba spin off. >> sap's ceo rules out a bid for sales force and doesn't think anyone else will make an approach. this ahead of the companies earnings. >> good morning, everyone if you're just tuning in. thank you for joining us here on the show. let's have a look at u.s. futures. they turned around in the last half hour. the s&p 500 now just seen off fractionally taking fair value into account. the dow jones higher by 7 points and nasdaq up by 7 points less than 0.1% with yet another record close. housing starts the highest in 7.5 years in the month of april. that did help sentiment some what some of the

the possibility we are not -- altice is not interested. the ability of a french company nobody ever heard of a weak ago to borrow countless billions at incredibly low rates from u.s. banks. this is showing itself. you do start to wonder whether we get to a point where it gets scary again. i'm hearing bridge equity. i thought i would never hear those again. they're bank. the banks will give you more money, we'll bridge to you selling equity. that can get a little scary. >> cablevision, which was the best performing s&p stock last week up 22%, up another 3% today. questions further consolidation. >> the expectation altice -- you're not just buying sudden link. cablevision has moved up an enormous amount. it would be quite an expensive deal. of course they face the fios overbuilt. there is competition william cablevision because fios competes in a lot of their market. >> i'm sorry if i interrupted you. i'm reading on twitter -- now i feel bad. excuse me. >> it's never a bother to me. we tend to get very excited. >> i'm not interrupting you. i

altice brought up the number seven player.sions with time warner cable, too. suddenly, charter communications has to get its act together and show scale and strength and that is why they are putting up the premium to be able to blow altice out of the water. they are coming up with their second bid. they tried to buy time warner cable in 2014, but the deal was not good enough and suddenly comcast and time warner cable, that merger was on the card. that unraveled due to regulatory concerns. charter communication is not only looking to team with time warner cable, they are looking to do a deal with brighthouse. so much activity going on in this space. if we look at what the deal does offer up in terms of a price point, we can look at the numbers in terms of premium and of what john malone can bring to the equation. if we move things on, we can see that liberty broadband, who john malone owns and holds a stake in turn to communications via -- charter communications via could help. altice has less flexibility. there is a big breaku

altice entered the u.s. market with its agreement to buy 70%.e french telecom is also looking to buy time warner cable. caroline hyde is here. and matt campbell is also with us as well. let's talk about the frefrpbl entrepreneur who is pushing his way firmly into the united states. kind of fits the profile with him, doesn't it? >> it is quite a remarkable story. patrick came from not exactly nowhere but relative obscurity. he has parlayed that into turning into a global telecommunications empire. that the u.s. was missing so far. this that smallish -- about a $9 billion deal in terms of enterprise value. this deal gives him a foothold in the u.s. guy: there has been talk about time warner cable as well. that is not small and you can't make it into something big. because it is already big in certain respects. >> yeah. it is worth $44 billion. suddenly you a much chunkier market capitalization. you look at a $9 billion price tag, actually patrick draghi is known for getting out on his bicycle. he is only using $1 billion worth of cash. the rest ha

we're looking at altice's trade today in amsterdam. it's off by 4 and a half%. >>> and gm could pay a fine of $1 billion. this after the department found criminal wrongdoing in gm's recall of ignition switches. it affected 2.6 million vehicles world wide and causing deaths. >>> "the new york times" story says gm rebuffed the approach of a mernler. >>> greece once against says it could default on its debts. athens does not have enough money to pay loans due to the imf in june unless a deal is made with its creditors on funding. >>> and yanis varoufakis said it would be a ka tascatastrophe. >> it is up to the institutions to do their bit. we have thet them 3/4 of the way. they need to meet us 1/4 of the way. >> on set with me now is julia to give us an update on the situation. mr. varoufakis not changing his tune very much. >> we've got 11 days between then and the current terms and obviously the brussels group are meeting to thrash out some kind of deal. they need to negotiate further as far as pension reforms are concerned even if they

-- altice or charter?he fcc or ftc is concerned about the control over content of larger cable operations -- even the time warner comcast deal did not have a geographic overlap but it would have given one company a big say in what kind of content gets out there to most cable subscribers in the world released in this country. altice does not have that problem exactly in the u.s. u.s. regulators are having a hard time making the case that this one company would have too much control over content in the u.s. it is also unclear what the new limits are to these rules. i thinkelieved, and comcast and time warner believed, because there was not a lot of geographic overlap, the ftc and fcc would not oppose their deal. it became known over time that the problem wasn't just a geographic control over market, the was below the national market of what the content was contentthe bidders of would be. now we don't really know what the threshold is from the ftc in particular and the department of justice, so what would be

and altice is interesting in buying time warner. time warner was more than 5% higher to close at $166.55. >>> after the bell sales force announce quarterlies better than expected and hiked the full year revenue guidance and shares popped in after hours trading, during the regular session the stock was off 2% to $70.16. >>> williamson omma tops the consensus in the late report today. the same-store sales came in strong but the second quarter guidance was weak when this blames on the west coast port slowdown. shares were up but in regular session it was off at $77.89. >> the s.e.c. is suggesting reporting requirement, increasing the amount of data information from asset managements like fidelity and glam rock to get information about the assets in their funds, including derivative products and it would cover mutual funds and etfs. >> and a new report by the oversight counsel identified certain etfs and bond funds to be risky during times of stress the dodd frank law looks for productivities that could threaten the u.s. financial syste

sending altice lower in holland. >>> a very good morning to you. let's get straight to markets after a holiday for a lot of markets yesterday. including the u.k. germany and the u.s. we opened up this tuesday morning in the red. we open slightly in the green but you can see it's just sold off over the last hour or so. we're down 0.34%. last week was a positive week for european equities. we just corrected as the weeks kicked off. yesterday the markets were meaningfully down. let's look as you can see pretty much the same. ftse 100 down 0.7. germany down more than that and france down less than that and italy down 0.2%. italy was off sharply yesterday. down a little bit less than that today. let's look at the biggest individual movers. altice in the red as it looks like the company missed out on the deal to buy time warner cable. it's down 1.4%. a source told cnbc that john malone backed the takeover of wtc by charter communications and that's been signed. europe's largest budget airline flying to the top of a stoxx 600 after a 66% increase in it's

altice, $33 million market value. their stock went up so much yesterday that it basically paid for the sudden link deal a $9 billion deal. they are willing to lever up their balance sheets that very few cable companies seem to be willing to do. they are talking a big game about what they might do for time warner cable. and how they are going to get the margins up for sudden link to as much as 50%. i'll tell you something, i'll believe it when i see it. you put a synergy-adjusted ebitda multiple saying what synergy? it's the altice way. we'll save cost. they are going to out-aticify. i remember another frenchman jean-marie messier, vivendi. the swedish king i don't know. >> he did not look good last night. six goals. it's interesting altice. if you're time warner cable, thank you. as we potentially get a deal done with charter. you'll keep them honest. >> you have chronicled these. i cannot believe the worth of these companies. you'll see cable -- the valuations ultimately, what is the endgame? you pay anything for a s

altice is expanding to the u.s. market area it is agreed to by 70% of southern linc communication. southern linc has about 1.5 million customers in more than a dozen states. altice has approached time warner cable about a possible takeover. talks are still in the early stages. would you like to buy gasoline for under three dollars a gallon? go alley when he -- go anywhere but california. drivers in los angeles are paying more than four dollars a gallon. because of an explosion at one of california' ease and repairs at two other refineries. california has a strictest clean air policies in the country which makes gasoline more expensive. , find out what avenue capital management chief executive and hillary clinton backer marcus last 30 -- mark -- mark lasry. more on the usga's partnership with fox sports. in the next hour, much more on those ilya and dollar fines in criminal charges against some the world's a gift banks. are now these just the cost of doing business in the financial industry? target posted first-quart

altice is controlled by a french billionaire. erik: united technology is looking at potential buyers for their helicopter unit. among those interested according to the wall street journal boeing and airbus. no surprises there. sikorsky makes the black hawk millet -- helicopters and marine one. we are about to reach the age where they are investing and help support u.s. stock rises. citigroup's equidistant -- strategy equities has because people move into saving years between 35 and 39. the millenials are most of their. they will surpass baby boomers at the largest u.s. population group. there is no bigger story than the settlements coming hours been out and currency and interest rate manipulation. ubs is playing more than $.5 billion. what we don't know is how much u.s. regulators will extract from four other banks. it is possible quadruple plead guilty to criminal charges that they rate affects wrench marks. lehmann is the bloomberg reporter who broke this story wide open two years ago. he is with us from london. leon let's talk

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holding company, -- sold to them, and in 2002, created altice, which became a holding company.e company is armed for battle. he has proven to be extremist shrewd dealmaker. erik: until now he was a mystery man. rob, you cleared it up. stephanie: i think he is still pretty mysterious, but a little less than he was a few days ago. our own rob lafranco the bill bloomberg billionaires -- bloomberg billionaires team join us from l.a.. julie hyman is taken a close look at some of the companies to us this morning. we have been focused on the euro-dollar move. let's talk individual names. julie: yesterday we saw movement in u.s. futures at the same time. let's look at what is moving. hewlett-packard -- we have been talking about it this morning and last night. second go to profit exceeding analyst estimate of the give more details on its split. you also talked about that weird dis-synergy word. the number is smaller than what the covenant had guided for according to analysts. that is helping the stock as well. deere surprised this morning given the struggles we have seen in the u.s. fa

cable market, they have agreed to purchase cable ismunications, altice androlled by patrick drawdy thishis first venture into the u.s. cable market. those are your top stories. to the closing bell, cory johnson is here with me on set with bloomberg intelligence joy.st, david you have put some numbers into your model. what stood out to you? cory: so many things were interesting. deposit in sann francisco on fremont street. from operations was strong, they said that in the press release, but they recognize a lot more deferred revenue than they have in the past, which was a big boost their. the thing that really gets me with this release here is that it starts to answer may be most important question about salesforce, which is -- why do they have to spend so much money on marketing? one year ago in this fiscal first-quarter they spent 52% of revenue on marketing. think of it as the gas pedal to drive revenues. if they jam the pedal to the metal at 52%, they can get boosted revenues and the machine goes fast forward. of the equity holders or anyone who wants to buy the company is that -- ma

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they also say altice and executives met on wednesday.cking shares of charter and time warner cable in europe both are trading lower today. reports say the fcc chairman reached out to the ceos of time warner cable and charter to convey they aren't against any or all table deals. wheeler told them any merger would be assessed on its own merits. the calls were in response recently expressing concern about the regulatory climate. wheeler seized those statements as a significant overreading of the fcc stance on the comcast time warner cable deal. guys back over to you. >> landon thank you so much. now from telecom to retail gap's first quarter profit fell 8% hurt by the strong dollar. shipping delays related to the west coast sport shutdown and slow down and lower demand from its name sake brand. second quarter results will be hit by late shipments and expects to have to offer diskounlts on delayed merchandise. >> hewitt packards first forecast hurt by the strong dollar. hp will formally divide into two separate companies on november 1st. tha

there was a belief altice might be in the running for time warner cable. as i reported it was working on a bid that included $160 a share in cash. that still wouldn't have been enough to satisfy time warner cable's board who are petrified taking altice paper. banks are willing to step up with huge checks. another theme we've seen these roll-ups. this is the smaller roll-up vehicle endo. it paid 16.5 times for par? for a business that didn't seem inline with what it had been doing previously. it wants to get big. how do you get big? you buy whatever is available. even if it means paying a year's worth of ebitda for it. they did that. they did do a lot of debt. they had to take on a lot of debt to do it. that's where we are right now in terms of the willingness of companies to do that. telecom. we talked about $5 billion m&a deals announced this year. we've got the highest volume we've seen since 2006. you can take a look at global telecom m&a volume as well. it is quite something. it's not just telecom. 22 times ebitda is what danaher paid for paul as you l

. >> yeah, look, this is getting hotly pursued, time warner, altice has come in, had negotiations, alticepany. this stock has been a media shot because of the consolidation. they want to come to the u.s. and spread. why can't it consolidate globally? if content is going to rule, you need to have the eyeballs to afford the content. so look, i think something clearly is going to happen here. the government came out, the fcc came out and said we're not against it. >> maybe it's charter bidding for it. >>> the stock hewlett-packard is having a favorable reaction. people are looking more toward the not a spinoff split up. they're going to separate software from computers. investors are eyeing the fact that expenses could go down. a reverse synergy. once the two companies are split up. that's what it trades on these days, i'm not a fan. >> shares of deere are up after beating estimates. the stock is still underperforming over the past year. josh owns it in his real portfolio, makes the bull case for it weiss is the bear. josh, kick it off, why should people own deere? >> the stock is going abov

time warner cable stock up about 4.5% on its acquisition talks with french company altice and sharesn, which put itself up for sale also skyrocketing higher. now up about 13% on merger speculation. the cable company getting a boost after pursuing rival verizon vios. carl, back over to you. >> thanks a lot. >>> when we come back you heard the news from jon fortt a moment ago -- spotify launching video streaming content. top spotify executive will join us a little bit later on this hour. >>> first, rick santelli, what are you watching this morning? >> well we're going to have some fun today. not many traders that i deal with on a day-to-day basis believe there's a june tightening. but ira harris, my buddy. might be changing my mind on this. why? you'll have to tune in after the break. you're going to like this one. fe financial noise financial noise financial noise [ male announcer ] your love for trading never stops. so if you get a trade idea about, say, organic food stocks, schwab can help. with a trading specialist just a tap away. what's on your mind, lisa? i'd like to talk about

altice is already in the game looking at a u.s. asset -- they are looking at suddenlink.ven more exciting because there is a third deal. charter communications could also be looking at time warner. they could be thinking this is a nice asset. charter communications owned 25% by john malone. charter communications is looking at bright house. together, we can see an absolute cable consolidation. this is all about reinventing themselves in the new world of amazon making content, netflix using films and tv shows. what do cable companies do defend this off? they can probably become more important. manus: talk to me about john malone. he had not made an offer. caroline: a big banana in a jar. mark: i don't keep my bananas in a jar. caroline: the trick is getting your banana. liberty global sees it as a great asset. he called it a great fixed to tie up with his western european assets of liberty global. the question is he has his hand in a jar, how does he get that hand out? what is really fascinating is there is very substantial synergies if these companies got together. he has

--altice is laden with debt. they're offering a breakup fee of $2 billion. they are also trying to fend off concerns of antitrust. we've seen analysts to coming out this morning saying actually from a regulatory perspective, laltice might fit better with regulators than time warner. we understand that the deal will become formal and next day or two. jonathan: i said airline analysts were on alert, telecom analyst very busy. up next, it was a very -- it was the great bond selloff of 2015 the bond bears are retreating. we will talk about that after the break. a >> check on the bond market, yields lower in germany. the german 10 year up by six basis points. the 10 year italian bonds up by 1.93%. the spanish up by four basis points. why is the swiss tenure on the board? because crazy town is back. for the first time in april, down two basis points. coming back with those headlines . join us after the break, we will talk six income in 2. ♪ jonathan: good morning and welcome back to "on the move." let's get to some of the top stories here on bloomberg. singapore i

tom: altice, the french/israeli backed method.etimes people do mergers for reasons that are not visible. why did john malone five -- find $5 billion of cheap money for this transaction? chris: overblown fears about regulation and secular change. these are the hedge funds, and john committed. they put their money where their mouth is. i have not run all the terms. tom: i think it is just fascinating, the gain -- the game theory involved. brendan: we have john nash to thank, in a way, for the way we think about game theory. it was a mathematical way of looking at things in the 1950's. it was john nash who made it more acceptable to economists more as a principal easier to grasp there it tom: he wrote a 32 page paper at age 21. there is a huge controversy at princeton. as you say, it is a part of everything we do now. i look at it as, what is behind the curtain. what is behind the curtain of this transaction? chris: if charter had not done this deal, they would be middling scale. it is all about scale in this industry. you need subsc

. -- from altice. the french company coming into the u.s.uddenly, you have a little bit of a heat going on. charter communications making their second bit for time warner cable -- bid for time warner cable and offering a big premium to fend off the competition. it is not just time warner cable that they are going for. they are also in the midst of buying bright house. that was announced early in the year. they are trying to work out how much that cost them at the moment. we understand it was about $10 billion. that is actually charter, the number four player, trying to buy time warner, the number two but also the number six player brighthouse. a bit of a tussle going on for time warner cable in general. look at what they have done to try to fend off patrick druggie -- draghi coming back for a second bite of the cherry. john malone is the man for charter communications it he owns liberty broadband and will help to fund this deal. that makes it a very difficult price point and structure for altice to be able to top. they are taking into consid

>> the notion of altice coming into the united states with an individual that worked and understood, scale and structure that was a surprise coming into the united states. because buying sudden link up for $6.5 billion, $9 billion deal, is kind of like, what are you doing. you're get to get scale. graham ghc is spinning off capital one. they're located in louisiana and oklahoma, they're going to have cable subscribers and john malone talking about hey, why don't we put our arms around vodafone and he's spinning off a company called lilac, the latin american cable operations into a new company and you have in addition to that, millicom, a yummy for these guys. and cable an wireless is a yummy for these guys and dolan talking in chicago two weeks ago, saying time warner cable, why don't you guys do something with me in new york. so everybody is talking and obviously it's jump ball and unintended, unintended consequence of somebody saying the word "broadband." and that is the word today that replaces "plastics" for the young generation. younger generation. >> what's your call then. you

often these has -- altice. at the same time, bloomberg is reporting that alteice has made a takeover approach to time warner cable. talks are said to be an early stage. it is the end of an era in late-night television. david letterman closed out his career after 33 years hosting. that is more than 6000 episodes. no word on who will be letterman's final guest. all that cbs says is that tonight's show will be full of surprises. i'm thinking brad pitt and jennifer aniston? brendan: i am thinking he might make up with john mccain. at 8:00 we get results from target. at 2:00 p.m., we get the fed's latest minutes. at 4:00 p.m. eastern, l brands reports earnings. tom: here is a quick data check. i will make it very quick this morning. the euro 1.1117. crude off .60. there is the dow record i s&p surging forward. this is the cleveland fed series. 4% long-ago than we had years, a good 10 years plus of 2.7% roughly of inflation. this is a concern, brendan. taking out their core definition, not just energy and food, down

people feel this which you basically introduce altice. >> this thing is causing people to turn heads. people say why couldn't they buy t-mobile. >> the germans invest t-mobile. the question becomes at what point do they want out and who would they sell to we will see. dish and t-mobile, there's a romance there both sides seem to keep going. comcast a parent accompany, this is back. interest in that who knows? >> when i interview john ledger it is clear he has a great accompany. he has turned that accompany around. i've not seen sprint turn around. t-mobile is up. deserves to be around here simply because it's done better. >> yeah sprint listen i think they have done a very good job trying to get things moving in the right direction there. they're settled by an enormous amount of debt. by the ability to complete the t-mobile deal. they have the control soft bank which controls 80% of sprint's strategy in the u.s. he seems to have gone back to focussing on other things and saying hey, it's your issue. we'll deal with it. >> it's a spectrum position. >> sprint has incredible spectrum. >>

i don't think altice is much of a factor. could they do it? how about more deals in the pharmacy managers. do not sell these stocks. >> bankers seem to be busy getting giddy, which worries me. you saw the endo deal. there are some things starting to get, seem a little topee. >> interest rates remain low. they are not going to do it forever. these inversions promote deals. the hospitals don't want to deal with all these different providers. cvs stock, fact it went up big yesterday on the $12 billion. merlot turned out to be once again, what? a fine merlot. >> it is very important your point. cvs stock went up. if you are in that environment, you are a ceo considering it, there are so many of these businesses not seeing topline growth. we know all the factors that have been in place for years. that confidence continues to grow. you see competitors doing other things. you finally get to that point where you are willing to consider doing something that you might not have in the past. that's the m&a market. they spill over to get stupid. >> i talke

they're in talks and better than expected numbers from altice but that's not helping the european markets today. >> let's see how investors are positioning themselves. a premarket trade in the u.s. indicating a lower market open. 140 point move to the downside in premarket trade. we'll see how that changes as we head to the open on wall street. the nasdaq down about 38. >> what is driving this negativity in equity markets? we all know it's been the bond market sell off we've seen in recent weeks and that continues today. yields hitting 10.32% on the ten year in the u.s. and germany we're at .68 and on the 10-year-old in the u.k. 2%. quick look as well. euro at 11254, and aussie dollar .795 against the u.s. dollar. >> is secrecy the key to another market tantrum? that's coming up after this break. >>> welcome everyone. you're watching worldwide exchange. >> here are your headlines from around the world. >> u.s. futures pointing lower after a choppy day on wall street after the u.s. yield curves steepeningss significantly. >> kerry meets with vladimir putin for the first time since the cris