he owns over 40% of netsuite.nurtured netsuite for over a decade into one of the best companies in the cloud. other bidders have not emerged for netsuite as they have for other cloud companies. maybe because they knew allison was sitting there. -- larry ellison was sitting there. oracle is looking to buy netsuite, i will let the other shareholders decide the terms. that means t. rowe price will be the decider here. priceay not accept the that oracle offers for netsuite. more on that on "bloomberg west." ♪ >> it is 3 p.m. in new york, 12:00 p.m. in san francisco and 8 p.m. in london. i'm julie hyman. welcome to bloomberg markets. ♪ we are live from bloomberg world headquarters in new york for the next hour. covering stories in los angeles, chicago, ukraine, and syria. stocks are surging today, apple among the biggest gainers as it has been, extending the four-day winning streak and hitting the highest level since december. in august posting their first decline in five months. our consumers once again reluctant to o

larry owns half of netsuite and said, i want that.n boost his cloud revenue and try to make his $10 million. he still not be able to make it. scarlet: he's making it sound like this was a vanity purchase. cory: maybe it is, i don't know his motivations. the netsuite product is highly regarded. this interesting from a corporate governance standpoint. so many companies, tesla, where he elon musk is buying a company that he owns, run by his cousin, maybe recusing himself by the board -- but you have other board members that have gone back-and-forth. you have a corporate governance world where people like groupon and zynga with 10 to one voting privileges. you have people like larry backing out, recusing himself completely, even though he has a 47% economic interest. then you have the surprising development. t. rowe price is the second-largest holder, but if you strip out allison, the largest holder. saying they will not support the deal. he saw the stock take up significantly in netsuite chairs. this will certainly be one to watch. this

netsuite is integral to the cloud strategy., david, this deal -- >> yeah. >> i had no idea that this was even in jeopardy. >> so we'll see. thanks. >> last week was twitter. >> yep. let's get to rick santelli. >> but people have to say other news outlets report they won't know what to do. >> take it away, rick. >> all right, david, thank you. a one-week chart of 10s tells you pretty much everything you need to know. we have a downward drift wasn't dramatically effected by today's durable goods preliminary august though many are a bit nervous about the ongoing slump in business, capital spending, what ultimately turns into investment and seed down the road. if you look at a mid july start to 10-year, you see that we have reverted back to very well worn range. you want to watch if we get past the bottom of that, even though there's a 1.40 most looking at 1.50 as somewhat the floor. let's look at one-week of bunds. yesterday they traded very close, three basis points away from their all-time low closing yield of minus 19. open the

and appropriate for us, netsuite's investors, to get something.on. give us a little more given the synergies that will improve. also another favorite a long ler by the way we do not believe there is high information content in the observation that no other bidders have come forward in the week since the offer was announced. they don't see high information content in that. you don't see these kinds of lers from the largest shareholder out there other than ellison himself. that deal most likely going to stay where it is. the board has said it's good. >> lot of people feel that that was oracle having to go reach down in the market, small/medium sized business maybe their product doesn't scale. oracle would disagree with that. remember, marc benioff, salesforce.com that quarter was not that strong versus what is traditionally put up. >> it wasn't. >> there is the love of the cloud, is perhaps -- other than amazon, amazon is making a fortune in cloud. >> they are doing well. that business their most profitable. far better than the retail and growing fa

and netsuite's business has grown fantastically in areas salesforce could master.e spent to billion dollars trying to build something like netsuite and couldn't. emily: you have some analysts out there who says they think oracle will end up paying more for this deal. cory: in an era where we see crummy corporate governance, or elon musk buys his cousins company, where we see groupon and zynga and facebook, where the founders control 10 times the votes of all the others, we see larry not evenaying, i'm going to vote for my shares because i am involved in both companies, and i have an outside part of the board. yes, there's concern, but compared to what's going on out there, the problem is, for him, he's in charge of the minority shareholder, the majority of the outside shareholders, and a look at the price they want because they have so much power, even though it is a small stake. emily: all right. the cloud is always fun to watch. cory johnson, our editor at large, you are sticking with me. coming up, its rooftop solar heating up or fizzling out? we will speak to a

oracle has been making headway here and is a bigger threat after buying microsoft -- after buying netsuite. microsoft be out sales force with the winter the biggest tech deal of the year, $26.2 billion for linkedin. salesforce has been on its own buying spree, spending more on acquisitions in february than it did in all of 2015. here is the ceo talking about that on the earnings call. >> it has been an incredible time to acquire some phenomenal assets and i've never been more excited about salesforce and coming into dream forces just awesome. emily: is the strategy paying off? our analyst joins us in new york. what is your take away? guest: the biggest thing we heard his there was some slippage in the quarter, largely at the end of july, which is why the billings number was below with the street was back -- street was expecting. emily: salesforce has been acquisitive. they've announced 3.5 billion dollars in deals in the last few months. is that asking what margins are actually doing? guest: those numbers are not in the financials of the company. they will add to the revenue base later on.

scarlet fu takes a look at the company's key metrics, starting with a breakdown of the deal to buy netsuites edition of "numbers don't lie." scarlet: oracle is essentially buying market share with one of the first cloud services companies. revenue forecasts reach more than $140 billion in 2019. oracle is competing against the likes of salesforce, microsoft, and sap, and paying a pretty penny for it, too. looking at the deal on a revenue basis, it ranks among the most expensive software takeovers of the past few years. the transaction has a multiple of 11, which is much higher than the industry. this trend is apparent in recent purchases made by salesforce and sap as well. all three companies, including oracle, have valued their deals with revenue multiples near 11. oracle is positioned to capitalize on the growing cloud market. cloud software as a service and platform as a service, the top white line, posted revenue growth of more than 60% in currency terms. by contrast, software licenses updates increased just 4% and new software licenses fell 10%. as oracle continues to shift to the cloud

when it comes to netsuite, oracle was buying market share in the cloud, a market expanding rapidly.enue forecast to reach $140 billion in 2019. it's paying a pretty penny. looking at the net we deal on a revenue basis, it ranks among the most expensive software takeovers of the past two years. this recent quarter, oracle cloud software has a service and a platform as a service. software license updates increased just 3%. chairman larry ellison try to minimize volatile finance results in the past. we will see how the cloud wars play out in the coming quarters. it's time for options insight. fore: joining we -- me today's option inside, scott bauer. he is out in chicago. good to see you. today is a bit of a conundrum because it switching. and typically on a witching day, you would see a bump in volatility and yet that is not really what we're seeing today. what is going on? >> you are right. especially a day like today coming off a volatile week we have had, you really would have got there would be more volatility and more volume today but it's really just kind of business as usual. w

andy owns half of netsuite he basically said i want that and now he will be able to boost his cloud revenuend make is $10 billion goal. brad: you are friends with larry ellison. when you say things like desperation move on live tv -- tbd you get a call or a text later in the day? marc: i do. my relationship with larry ellison is far more eternal and enduring. i view it -- and he does as well because he taught me this. brad: he doesn't pull his punches either. marc: i will tell you how i look at it. business is a lot like tennis. you get on the court with your friends, you play as hard as you can, you get upset, you get off the court and go have lunch and have a glass of wine and remember how much you love them. i love larry ellison. he is a great mentor to me and a great friend and probably there is no one in the industry who has done more for me than larry ellison. i am very grateful to him. brad salesforce has had : tremendous sales trajectory. in the latest quarter results there was some softness. how much of that was seasonal? how much of it do you still see? marc: the last quarter was

taylor: opec probably will not reach a deal netsuite in algiers -- next week in algiers. same internal rivalries from the previous agreement in april. iraq and iran has said that they want to pump more oil. apple's iphone margins have narrowed with the release of its latest model, according to analysis by ihs. iphone seven costs more to make because of its greater storage options, glossy cover, and more advanced displays. iphone sales make up two thirds of apple's revenue. homes -- values of luxury homes will slump this year because of the brexit vote. expensive houses will fall 9%, the most since 2008. a realityg called check for the high value of the market. that is your "bloomberg business flash." collapse in trade growth suggests globalization , affectingalling world economic outlook, according to an analysis from the economic cooperation and development. let's bring in catherine mann, chief economist for the oecd. she is in caret -- she is in paris. great to speak with you. one thing that really struck with your report is that monetary policy is overburdened, and thi