cristina alesci is with us.est is adam johnson. >> microsoft says it -- says it is not clear if the crisis with amazon is going to be done anytime soon, amazon has cut off pre-orders from the new release. and an early investor in twitter, oculus, wants to invest in later stage startups. they invested 19 million in oculus, a maker of virtual reality goggles and this stake became $800 million. the company is trying to buy them earlier this year. and automatic translation service that would occur almost in real time, users would be able to use a beta version for skype. that is today's company news. >> i am sick of lagarde making fun of my lack of french. i have tried rosetta stone about eight times and failed nine of those eight times. >> this is kind of cool. it is cool that you can talk in real time. and then it comes together. stephanie ruhle has just joined us to talk about valeant, upping allergan up to $50 billion, that is real money. is this going to work? >> what it appears they are doing here is backing al

i am matt miller. >> i am cristina alesci.digging your jacket. >> i have gotten slack for not wearing a tie. >> i like the jacket. it is tie, jacket, or both. >> i will do my own thing -- my legere thing today. pink shirt. serious business to discuss. plans to overhaul government-backed mortgage giants fannie mae and freddie mac hitting a bump. a bipartisan reform measure up in the air after the senate put off a vote because it may be losing support among democrats. even though the obama administration supports it. we bring in ceo of the mortgage bankers association, an advocate for this reform. what are the shots this gets passed? i were to have a vote in the senate banking committee, if they had the violin markups again, it would have past 12-10. the delay is trying to get even more votes on board. these senators just came back from a two-week recess. they are just digging into this important legislation. we will see what happens and whether a few more votes, board. -- come on board. >> that is the chances on the committee p

cristina alesci, what is in this new system?because a lot of people have paper towels and diapers delivered, and for the most part, that has been cost-effective because shippers have been pricing those items by weight, not by how big the package is. for example, a >> paper towels right now and weighs in at -- a box of paper towels that weighs in at three pounds is priced accordingly. the sandbox might be priced at 30 pounds because they are -- theng in the price size. when you think about the fedex truck, you would think that a big box will take up a lot of room, and fedex is not getting paid fairly. >> it is surprising they did not figure that out before. >> which raises the question of why now. the industry has been talking about this for years. the about the products we -- problems we had during peak season. fedex, ups, on the delivery companies, they are looking at building up their systems to handle the peak times. they are looking at different levers they can pull to increase revenue to build out their system so that they

i am cristina alesci. adding you caught up on where stocks are trading.like stocks are swinging between gains and losses today. we want to highlight a couple of those stocks for you. first, weight watchers. shares of the weight-loss shares provider surging by the most in more than three years. the company is endorsed by celebrities, including jessica simpson, reported better than anticipated first-quarter earnings. also watching yelps. upgraded the online review sites, saying it is a logical for for half a dozen large companies. the recent 40% stock dropped as well as a young, special appeal attractive for suitors. also watching sprint as the telecom giant pursues a bid for smaller rival, t-mobile. joining me with a look at what this can mean for the company and telecom industry is john butler. >> hi, christina. >> what do you think this could mean for the industry? >> head of softbank, which owns is absolutely bent on buying t-mobile, and the reason is, he needs that scale to compete with at&t and verizon. t-mobile and sprint on their own, they are barel

i'm cristina alesci. let's get you caught up on where stocks traded today.e change but in the red for the week after selling off yesterday, investors handed a mixed bag of data and an unexpected drop in consumer confidence offset by a jump in april housing starts. the russell 2000 index erasing earlier losses after falling for three straight days. for "on the market," i'm cristina alesci." ♪ >> you are watching "bloomberg west" where we cover innovation and business. he have long been a leader when it comes to the software behind 3-d printing that now they are getting into 3-d printing hardware as well. my partner and editor-at-large courtney johnson -- cory johnson is back with more. >> an impressive quarter and they unveiled a new open source software platform, spark in autodesk the first 3-d printer for them. really interesting but you're not just getting into the making of printers for a software company, which is weird, but also redefining the way the architecture works in 3-d printing. why did that redefinition need to happen? >> for a long time, i had

cristina alesci was just here talking about bank of america.ing about dairy queen. >> it will take not too much. it is an iconic american brand. not many new yorkers are familiar with it. in there only 36 stores entire state of new york. if you go to minnesota, there are 200 and 50 dairy queen's. -- 250 dairy queen's. this will resonate a lot with tourists. it is a big market for the company itself. they have not had a lot of domestic expansion. it is not exactly going up against frozen yogurt chains. it is a fast food restaurant. it has burgers and hotdogs. handles came of 16 in and said this is a little bit of a competitor. going to have to post what goes into the food. some of you might be shocked. a large oreo blizzard, has more in it, calories, saturated fat, sugar, then two big macs. >> this could hinder the popularity of dairy queen in new york. people are oh so conscientious. desert places have come under pressure. there is competition from the green juice place. they are not going to go out and get a 1200 calorie blizzard. although i t

cristina alesci, our deals reporter.king this guy -- hip-hop star 50 cent , who should probably stick to his day job, because watch this made atpening pitch 50 the new york mets. he could laugh about it. number 50ring the jersey with the last name jackson because his real name is curtis jackson. he was born not far from the mets citi field. no word if he will take another stab at the patch. that was not a strike. likely not itching again. loudmouth ceo a -- nightclub culture -- we are talking about abercrombie & fitch, but the retailer wants to change the page and get wholesome teenagers back into the store. lindsay andd by senior market correspondent julie hyman. set the stage about what is going on here? >> well, richard jeffries, an analyst at people nicholas summed it up. he says we question whether the, crombie brand remains relevant -- the, crombie dashti in the immaturity and fitch brand he iss relevant -- and questioning if the abercrombie & fitch brand remains relevant. has it lost the customers that have gotten

cristina alesci interviewed one of the biggest artists to see just how big he can get.et. >> sin city? spin city. djs fly to las vegas for one night of work. steve is taking it one step further. ship over to las vegas, that is when i am spending time. i am djing they're the most. it makes more sense to be producing and living there. ki spent years on the road touring for weeks at a time. g tethers him to mgm's night club. he has an agreement to pay exclusively -- to play exclusively in that market. >> you do not have to worry, now i live in vegas and i can drive to work. you know what you are expecting. residence in ibiza this summer. staying put is more cost-effective than a tour. making djs rich. avicii calvin harris or that brings in big customers that spend enormous amounts of money, it is only fair that those djs are getting a piece of the pie. not just a flat fee. >> the biggest spenders are willing to drop a quarter of 2 million dollars on one night. the top two clubs generated about $200 million in sales last year. >> you are not worried about this is a peak tim

portion of the sales cristina alesci spoke to one of the biggest names in the business.sten. >> sin city? more like spin city. dj's from around the world are willing to fly to vegas for one night of work. he is taking it one step further. >> i have moved my entire shift over to vegas. djing there the most. it makes sense to be producing and living there. >> he spent years on the road touring for weeks at a time. but his vegas gig tethers him to a five-story nightclub where he has an agreement to play exclusively in that market. >> the residency is simple. you don't have to worry about traveling as much. now i live in vegas and drive to work. you know what you are expecting. you know your environment. >> that is why he has a residency for the summer. it gives him more control over his show and is more cost-effective than a tour. musicodel is making dance dj's rich. >> if there is someone that does bring in big spenders, it is only fair that dj's are getting a piece of the pie and not just a flat fee. >> the biggest spenders are willing to drop $250,000 on just one night.

in more on this, let's bring cristina alesci. it seems like bill ackman and valiant are pumped with new botox, breast implants, and prettying themselves up. >> it comes down to $10 more in cash. talking about a bid that is valued at 166 dollars a share. they are talking about the value in some experimental drug and they're telling allergan shareholders you can have value and then drug these value rights are really tricky. you have to get to the fine print and understand what the contingencies are. it makes it tricky to value and determine how the shareholders and when the shareholders get them. >> i have one problem with this. cash is king. there is still stock and valiant stock is down 10%. if they chart the more leverage on, equity holders will be nervous. if they put more stock in, equity holders will be unhappy. >> they need to back allergan into a corner. >> it will be up to the allergan shareholders. they will not back allergan into a corner. shareholders want to see more on the table. they will possibly see more on the tab

cristina alesci, our own deals reporter and beats queen giving us the latest. >> when we come back, we'reut the mother's day rush. the ceo of 1-800flowers.com. >> it is friday, so time to play the year but game. check them out. look what a cutie pie will stop his a film maker, graduated from a california high school in 1962. that is all our producers are telling us. it looks like a little lamb or just a cutie. we will be back. guesses.yolur stay with us. ♪ friday,ig number this $3 billion. we're talking about the amount of money that people will spend on flowers collectively for our mothers this mother's day. looking deeper into the business of flowers and mother's day and, put it into context for us. $3 billion is related to what? >> it is up almost 16%. steadily increasing the past few years. we are more disposable income, so we are willing to spend that kind of cash on flowers. it is not just flowers. and you get your gift, by the way, for your wife? >> not yet. i have branch reservations. >> over $3 billion will be spent on jewelry. who knew it was a big day for that? >> it is never b

place.sche bank's cristina alesci has been looking into this.ve las vegas, are they leaving with any winnings? >> no. they are leaving with the sense that they finally managed to sell the property. >> get out. >> at a good price. it seems like a good deal for blackstone because if you look at where other hotel/casino stocks are trading on a backward-looking basis, it is a little bit more expensive, but cosmopolitan has actually been growing the top line, and last year was a record year in terms of revenue, and also, as far as go, go, you could -- comps you could argue that casinos like mgm have a lower mix while the cosmopolitan is a pure, in him play on the strip. >> we had the ceo of penn gaming earlier this week said they looked at the property and it is icy, but they would love to be on the strip. >> everybody wants to be on the strip because you have seen attendance to las vegas go up and up, and that is a long-term trend, since 1995 we have seen attendance go up, and on the strip it has been outstanding for the premium players, and not bec

they do not want to shoot yourself in the foot. >> thank you so much, deals reporter cristina alesci, really killing it for this quarter. highflyers -- a megamerger in the commercial jet leasing business. we talked to the ceo of air castle. -- plus, athat might wine that might shake you up -- a vineyard tilt on top of the san andreas fault. ♪ >> here is a look at our top bloomberg headlines. reporting af -- higher than expected loss. the company that owns the lucky brands reaffirmed its adjusted fiscal year guidance. won a big contract in china. chinese regulators said in february they will loosen the rules to encourage budget airlines. there'll be a big gap in wall street bonuses this year. bonuses paid for asset managers is expected to rise by 10% while fixed income traders could see a 15% cut according to johnson associates. johnson says this represents a sea change, noticing that the largest pay check will no longer come from wall street's big banks. is filled with consolidation. everyone wants to win with original content, and even radio is saying a renaissance. for analysis, we

cristina alesci and i'm talking about all of the deal activity we are saying.e are not seeing in terms of mergers because nobody wants to be too big. what is the problem with the one-stop shopping right now? that credit has become a commodity. if you want to borrow money, you can do it from a lot of places. a bank no longer can say higher mean is your divisor. --is a conflict of their advisor.me as your >> is there a conflict there? >> it is not always getting a dvice is a conflict of interest, but it can become one. when the downturn began, there were a lot of pending loans on deals and suddenly the bank did not want the deal to go through because they were going to have to put out the loan. >> let's take a look at green hill, over 10 years, said she impressive -- since you went public. pretty impressive. you compare that with some of the bigger banks, deutsche bank is down 30%. obviously down, 100%. what do you think has been the key to your success, your performance? of things, first of all there has been a big trend toward independent advisors like us. over

i'm cristina alesci. let's get you caught up on where markets are trading.markets are fluctuating after the dow hit a record high yesterday and the s&p closed out april with a .6% gain over the month. eric consecutive monthly rise. it showed an unexpected rise in the amount americans who file for unemployment last week. a stronger than estimated growth in the industry over the last month yard a couple of individual stocks we are keeping an eye on. first, the pharma company planning to sleep ms. $100 billion bid according to people familiar with the matter. the deal would be more than $84 a share and would come as early as next week. ♪ >> we are fully digital, online and apple tv. i am adam johnson. rain soaked u.s. east coast from maryland to florida. hundreds of flights canceled. the 10th radius they in history. instead of trying to put out the fire, officials decided to let dash on.e on my there were no reported injuries. investigators are being sent on the scene. the first day of the month is hastraditional holiday but -- thousands of protesters marched i

cristina alesci has been looking a little deeper into blackstone's deals.a little about what these wind up meaning for blackstone's bottom line? >> investors are getting a tremendous amount of cash back. million -- was $38 38 billion dollars last year. who is buying these exits? those are public investors out there and they are getting pretty rewarded for buying into blackstone's is ipo. when you look at the real estate portfolio. on a private equity side of the house, if you look at the corporate performance and what that has been, it has been pretty good. pinnacle, that stock has rallied about 50% is blackstone to the public. when a deal was announced for stock popped the two more. now it is a return of 70%. are alsorket investors being rewarded a bit on blackstone's investment. >> i'm curious what blackstone does with his investment, how it winds down. >> a very good point. a lot of times, when companies go public, blackstone still owns a big stake in the company. hilton, it still owns 70% of hilton. when you look over the long term, blackstone has to be

bayerh more on this merc acquisition of bayemerck's consr unit, cristina alesci. being aggressive, trying to reshape the industry. or reacting to everything going on. >> here's the thing, you start with merck. what pharma companies in the u.s. are dealing with is the fact that they have to reconfigure their whole model. they have to survive in a post-blockbuster world with a long horizon on the development front. s standpoint, you can do a big transformative deal we sell pfizer do or dump what you are not good at, focus what you are good at, that is what i was geared up for the beginning of the year. these kinds of deals. companies are shedding non core assets and doubling down on what they think is a promising way to go. >> like what we saw a couple weeks ago with glaxo at novartis. >> exactly. to $10ill get $8 billion billion of proceeds, some of it &d, it will mostly be used to buy promising medications and hepatitis b or cancer. they can charge an extreme amount of money for specialized products, that will be the future of the company. >> do you get a sense th

our deal supported cristina alesci has been looking into the latest deal.ne pretty shrewd investors. they see something here. if you value this deal on a backward looking basis, looking , ithe trailing 12 months looks a little expensive compared to the other casino stocks, especially mgm. i use that as a comp. thisooking forward, company is generating good growth at the top line revenue. last year was a record year for the cosmopolitan, generating about $630 million in revenue. will go higher. if you look on a forward basis, it is actually cheaper. if you compare it to mgm, they have some lower quality hotels in the mix. this is a pure play premium asset. and let's not forget, the cosmopolitan also has a revenue stream that is very diversified. you will not see a ton of growth in terms of gambling because that is a very mature market in the u.s., but you will see growth in the clubs, restaurants. they have a club, marquee, the franchise opened here in new york, but they have it there. that is tied with the wynn's c lubs as the top grossing club in the u.s.

. >> with more on this story, we are now joined by cristina alesci.es this say about the people in the industry now? >> all of these countries are trying to find a way to survive in a world where they are not selling the one block after drug, like viagra or lipitor. -- one blockbuster drug, like viagra or lipitor. focus on what it is really good at and sell the assets it e, for,rs non-cor example, this unit that we have seen them sell to bayer. also, they have announced they are going to cut about 1800 people to save $1 billion, and this deal will give more about eight dollars billion, $9 billion in proceeds. what are they going to do with all of that money? they are going to focus on higher margin drugs. the head of r&d says they are going to go into biotechnology drugs. they are investigating -- investing in a hepatitis c medication. they are investing in cancer medications, and this is what we will see merck focus on. >> are they acting on desperation? >> there could be an element of that. desperation, i think, how much money did bayer surrendered

cristina alesci's explains why. everythings survived .o far, and onslaught of streaming music startup spare 90% of americans tune in at least once a week, unchanged since 1970. klesko morning. >> good morning. >> creating radio stations is not so easy. do you think we are so dumb that we would pay hundreds of millions of dollars a year to program radio stations versus playing the music without work? why pay an announcer $20 million a year? >>y are worth it there it nationally recognized personalities are not the only part of radio's plan to stay relevant. >> what is moving past is a 32nd marshall. you see the discharge he as a sponsor of a major event, you see them integrated into that major event. it is a very different way of selling and a different revenue stream for us and a new marketing opportunity for the advertisers. >> these efforts might help radio hold onto listeners, but ad revenue has yet to recover since the financial crisis. they have to almost abandon some of the national advertisers and focus on local markets, local progr

cristina alesci, it is a big price tag. >> it is a huge price tag, but at the end of the day, apple anda long time.

. >> cristina alesci, what do you think? 10 days from now? -- 10 years from now? i'm thinking is 10 days from now and who is going to buy pandora and spotify. but thank you very much. -- >> thank you very much. >> wouldn't it be great to have a week like dr. dre is having? he may have found a place that could celebrate a deal that will make him one of the richest man in hip-hop. according to the "new york -- close to most to closing on a mansion formerly owned by tom brady and his wife gisele. in, he will also have a state-of-the-art sound system. >> playing beats. >> of course. >> coming up, you will see how furniture is going to be turned into a tablet computer. no joke. ♪ >> imagine turning your couch or coffee table, any piece of furniture in your living room into a tablet computer. one company has found a way to do it. here is elliott. >> in the futuristic film open up -- futuristic film "minority report," they track down kernels before they commit a crime. this is more modest. our householdrn into more interactive ones. his first target, overhead projectors.

cristina alesci has been following the story. could pandora be next? apple announced music,nd of news around pandora stock fell in the last couple of years. last year, when apple announced -- pandora stock rose. this will spark pandora to do something to become a protected player. -- there are no talks that we know about, but just speculation at this point. pandora claims it has 9.3% of the overall listening audience. that is growing. last year around this time, it was seven point three percent. users.78 million a big player. spotify wants to go public. there could be something to do there. we are talking about a massive valuation. forget google had also pushed aggressively. it has a product that cuts across so there could be some competitive pressure there allows these players to feel itselfed and then apple with its m&a strategy. some people talking about maybe apple buying twitter. >> investors have had a chance to invest this. does the price tag makes sense for apple? >> it seems like such a big out they mustound have on their headsets a ridiculous

cristina alesci, our deals reporter.shaking at this hour, jeffrey done lock has been 90% -- has spent 97% of his years at bloomberg yesterday and he addicted that the fed would be stuck in a stimulus program known as quantitative easing for some time. he said that that would have an interest rate impact. >> as long as there is one dollar of quantify -- quantitative bond buying easing, sayingill be sequencing that the policy tool on interest rates has gone down to four or zero. you are not going to do that. still,ertainly true, that we are perhaps a couple of years away from the potential for these interest rates to rise. didom keene is with me, who the interview. is that true? as long as there is one dollar and bond buying, you cannot raise rates? >> it is prodigious, spilling out of government. whenever you start talking about greek letters and all of that, the idea is is wait. there are many others out there, it was a fascinating conversation and i urge anyone to see the entire 20 minute interview. it centers back to t

cristina alesci has been all over this story. is being presented that this is shareholder value?t gave for a puny evaluation. the way they get there is they --, ok you sold his chain sold his chain for $2.1 million or that private equity chain turned around and sold the real estate for one point billion dollars. that means you sold this business, the operating the andness, for $600 million he did it so tax inefficiently that you actually build it for $100 million over the value of the real estate. it is pretty damning the way they get to the math. it is hard to argue against a map. then there is the atmospheric around the deal. starport and other investors that's a word it feel like management investors have legally ignore shareholder demand and shareholder input, which by the way, flies in the of what we have seen over the course of the last year and a half with activist shareholders, where management is the morris and you and taking meetings and listening to these guys are sometimes, they have pretty mark ideas. just pretty smart ideas. -- they have pretty smart ideas. we have

thanks to cristina alesci.lng up, sergei says war is what is taking place in the ukraine right now. ♪ >> now to the ukraine. sergei said russia has no plans to put troops in eastern ukraine. have a listen and a look at what sergei told us. qwest the ukrainians kill ukrainians. war as as close to civil you can get. >> i sent the messenger asking to respond to these in the german media. >> [indiscernible] >> these were spread even before and they were rejected. now they are out again. we would like to see whether this is true or not. we also asked about the united conversation. indicates he might have been involved in the life of the governor, he might have been involved in inciting foreign fighters to the ukraine and so on. we are waiting for answers. have a view yet. qwest we have strong suspicions. this might be true. americans, they say, well, you should not pretend you're not there. reports of 10 to 12 russian engines. reaction was, please present them to the world. show thedocuments, interviews with them. t

cristina alesci has been looking into this. >> such a hard job.us, the ceo of a chain.your bircgurt dqot of people want to see in the new york city market. they have finally done this. why at this timing? >> maybe because warren buffett could not in a blizzard -- get a blizzard. margins on this business, when it first started heating up in the city were excellent when there wasn't too much pricing competition. now a lot of the competition as knocked down margin for all of these layers, so the question is, to your point, why do we need another one? of a a little bit different model, because it does offer things outside of ice cream. it is softserve ice cream, not frozen yogurt. this is a marker for dairy queen. anna has not had that much domestically, the growth has been internationally. dairys just to say that queen is still around, healthy, and we are creating a flagship location in the city. >> there is more of a focus on the fast food chain, but are you all thatd of all -- at they are here? anytime there is a competitor, we have to see what the

cristina alesci has more. been -- i haveas been paying attention to the nasdaq a lot.ermine the fate of the stocks that are planning to go public. we have seen so much volatility. we were looking at how offerings were pulled. the market is an important indicator for a lot of angst. it had been on fire. were talking about this today. it is very unusual when the buyers and the sellers increase. that is what we have been seeing. >> everything through the prism of them and a. >> there's a lot of activity happening. you will be busy. >> i want to bring in the managing director at morgan stanley. we are looking at a market, new all-time high on the dow, three straight days of gains, and we have seen a little bit of recovery after a recent selloff. what is your prediction? >> i am bullish. i continue to be bullish. the economy will slowly improve. will continueet to make new highs. >> 5%? 10%? in 2014.rget was set you and i can remember that. 8%. is between 7 and remembering the anemic growth that we saw -- >> the economy has to do better. a lot of people say that a strong ec

let's bring in cristina alesci who is all over the story. she loves red lobster. >> absolutely. i am there every week. night --one very late >> who eats lobster late at night? >> i don't think so. >> high school? accusing the is management of basically giving away red lobster. they lay out all of the map in a letter to shareholders. they're saying that darden sold its business for $2.1 billion. once you back out taxes, you are looking at proceeds of $1.6 billion. guys, listen to this. the private equity firm that bottle of red lobster -- bought red lobster, sold as real estate for $1.5 billion. you have a value of the operating business that amounts to $100 million. they're saying that if you had taken our advice and on a tax-free spinoff of the real estate, you could have realized more value by telling the real estate an operating business separately. ion, star board is saying why would you sell your company now when you're having such a problem with shrimp costs rising? you said this was a terrible impact on your operating business. it is a short-term thing that could resolve

cristina alesci, thank you so much. they had two options for customers, you could pay $10 per month for a limited content, or get the service for free and see advertisements pop up. spotify will announce that they have signed the 10th million and you canber, read that article online, right now. john.re i'm joined by 10 million subscribers is a lot. but they don't benefit in the way that we think that they will. people are paying and they are making more money. >> they are sort of on the hamster wheel where you think that you are company and the more subscribers that you had that are paying to watch that content, the bigger your margins will get. but the way that royalties work is the more subscribers they get the more they actually have to pay in content costs, about 70% in royalties. and the contract is structured so that this doubles -- they double as well to keep that 70%. >> because of that they have about 200 million songs since they were founded, you could see apple coming by down the road and they have a lot of d

cristina alesci h

cristina alesci is here to tell us what it means. explain why this makes sense. when this was talked about a few weeks ago, it was a head scratcher. >> all of these major players are trying to get their heads around how to survive in an environment where demand for their basic services has been on a decline. that is voice and pay television. we have seen a consolidation. analysts are saying this doesn't amount to that much innovation for consumers at the end of the day. biggerlayers are getting so they can negotiate better programming costs for their customers at the end of the day. both stocks are down. that is unlike every other deal we have seen this year. a little bit of negativity is around the steel. that can be and to regulatory concerns whether or not it will be approved. at&t is some overlap with universe and directv's product in some markets. have 6 billion subscribers. they could not possibly compete when it came to programming time warneromcast deal. i will create a mega-giant with 30 million subscribers. there is no way that you first can compete wit