investors like the move sendif both ryland and standard pacific up 5%. bob pisani has more on what is driving the deal and why mergers in this sectorrare. >> reporter: home building mergers are fairly rare events. why? builders don't like to buy each other because what they really want is land. that's what is scarce. so why pay a premium for operations when all you want is land? you buy the land. still, some very good reasons why this deal makes sense for both sides. first, both co specifically the combined company would have a strong presence in california. for ryland sales go from 9% to revenues to 27% today with lower exposure to the midwest and mid-atlantic regions. second the combined company would have more land to develop and as i said that is the end game for all builders. the combined company would have a good mix of first time and move up buyee thing the deal doesn't have is a big premium. it is being billed as a merger of equals standard pacific is offering to merge with ryeland at the market price. that suggests neither side thinks housing wi

buying ryland is group. nonetheless, both of those companies are up.aking a $4 billion offer for deal track. that is boosting their stock price -- up 57%. that is about the premium, so that is a $4 billion offer. they own companies like auto trader and kelley blue book. they own the big auction house that sells all the used cars around the world and they are building up their inventory of car sales related businesses. finally, i want to look at cvs -- a $1.9 billion deal today, buying target's pharmacies. this is actually the second in a month of egg deals for cbs because they ought the on the $12.7harmacies for billion. they are doing a lot of deals and shareholders don't seem to mind it even though it's going to eat into their profit and mean they are going to buy back fewer shares. are going to lower their profit outlook for next year by six cents, though that should come back in 2017. so hold onto those shares long enough and you'll get a 10 to 12 sent news. and it gives money to target to buy back more shares and streamline their business. they wa

matt: standard pacific has bought ryland group.he homebuilders, the combined company will have $5.1 billion in market cap and about 12,600 homes delivered last year. they tell you this in the guise of a merger when standard charter is going to own about 59% of the company. there will be a one for five split in shares. you will get one for every five and they will give them to ryland group to buy their shares because it is an acquisition. here you see both companies moving up about percent. decent moves in this morning's trade. cots automotive is going to buy dealer track for about $4 billion. cox also a lot of big companies in the car industry, selling and buying cars. auto trader is one. mannheim, the options group. -- the auctions group. it has risen to 50 7% premium -- 57% premium. cvs will pay for all of the pharmacies inside target stores. target wants to focus on delivering fashion goods and go back to the days when it was called target. it is buying this for -- both chairs are moving up. a lot of m&a action. the most excitin

standards pacific and the ryland group are merging.s on upscale homes has a large presence in california. while ryland with first-time buyers is stronger in the u.s. in the midwest. while new home sales have risen this spring the national sales base in april amounted to just 71% of the annual average over the past 15 years. >>> in europe standard pacific subpoena about 2% while ryland is up more than 1%. wilf, back to you. >> landon thank you very much. >>> i want to bring you up to date with the latest on greece. some comments here. not ground breaking but quite interesting nonetheless. a german government spokesman said that the german governments wants greece to stay in the eurozone. and the german finance minister spokesman said the ball is back in greece's court. we've heard that so many times before. meantime the portuguese president said that an agreement should be reached as fast as possible this week if possible that's what the markets are hoping for. >>> here are your headlines. saudi arabia airlines become the launch custome

deals -- but when i have been thinking about the standard persisted buying -- standard pacific buying ryland rate u.s. treasury volatility has been elevated for some time. you can look at the index that shows that. typically that is well correlated with the reit etf and homebuilder etf. matt: in what way are they correlated? jim: implied volatility. pretty much it moves in unison with the move index. we have had a significant diversions. x hb volatility is sitting on it all time lows. we think even with this deal today, we could see higher implied volatility in xhb that suggest downside. matt: how do you do that, do you sell? xhb one would be to buy volatility, buying 31 and a half put off right -- right so you are short and long volatility. another way would be a volatility pair, by a straddle put andyou are buying a buying a call. you sell the straddle there. a little more complicated. matt: jim, thank you very much. do not go anywhere. we will be right back with more bloomberg market day. ♪ ♪ pimm: good day. it is noon in new york and midnight in hong kong. betty: welcome to the bloomberg

standard pacific and ryland are merging. that's moving some others like hovnanian and tri pointe as well. we had quite a move up in cigna corp. on reports that anthem has made a takeover offer to them. according to reports they've been in discussions for months. in the past ten days anthem has made two bids for cigna, including one at $175 a share. these are not confirmed reports but these are reports out earlier. you see that vertical move around noon eastern time for cigna. if you look at some of the other hmos, even anthem is trading to the up side along with some other ones including aetna and healthnet. last month human thata entered takeover talks with rivals. names included cigna and aetna. humana moved up here. the whole group is in a bit of a frenzy with takeover speculation. >>> let's head up town to the nasdaq. bertha coombs following the big movers there. >> some of the biggest losers today are sandisk and micron. morgan stanley is cutting ratings today from overweight to underweight. some of the others though ar

when you look at ryland, they have gotten closer to a third of sales. that's absolutely why that stock is popping today. i don't think you chase these builders. they are a very difficult trade. we were just talking about financials. you think financials are difficult to trade, these are almost impossible. >> and no damages awarded in the aig bailouts. >> because there are no damages, there's no money coming out. the judge did, however, say that the government is wrong in doing this. no damages is huge to the stock. >> huge opening weekend for "jurassic world" for universal and comcast, our parent company. >> the stock breaks out above the march high above 57. it's able to deliver high single digit growth both buybacks and dividends. onto the movies, in terms of ticket sales, this takes them above a billion dollars. they followed up with "ted" later on in the month. the only question i have is, how young is it for you to take the kids to see the movie? what's the age? >> i don't know. >> are you taking the kids? >> i don't know. we haven't figured it out

why deals in the home building sector like today's merger of ryland and standard pacific don't happen. >> consolidation waves from cigna to anthem and united health and aetna. is merger maenaa catching on in the health care industry? all that and more on "nightly busi re and we bid you good evening, everybody. i'm bill griffith in for tyler mathisen. >> great to have you with us. i'm sue herrera. it's a new week, of cour

why deals in the home building sector like today's merger of ryland and standard pacific don't happen often. >> consolidation waves from cigna to anthem and united health and aetna. is merger maenaa catching on in the health care industry? all that and more on "nightly busi re and we bid you good evening, everybody. i'm bill griffith in for tyler mathisen. >> great to have you with us. i'm sue herrera. it's a new week, of

basically standard pacific is offering to move with ryland at the current price. that's why i think they feel the industry while it's growing, it's not growing robustly. >> kind like buying a house, it's a buyer's market there and not a lot of negotiating for the sellers. >> watch out netflix. in two months alibaba plans to launch a streaming service in china. >> this is after netflix revealed they want to enter the chinese market. netflix stocks getting hit on the news. joining us with his insights is edmond lee. you think this is an opportunity for netflix are don't you? >> it definitely is. it was always going to be hard for netflix to jump into china by itself. it would always have to find some kind of a partner. you have to have a license by the government to do so. it's easiest to do that with a company that already has it. alibaba could be a partner for netflix. but that's the opportunity for netflix there. >> he was asked about ebay in a particular case but his response was revealing. >> doing business is not that simple on buy. you have to create somethin

hard to draw conclusions but you can see standard pacific merged with ryland because it's not that great a business. in general the housing business is not doing what it's supposed to do. is it credit? we don't know. the banks will tell you it's still hard to get a mortgage. the regulators want them to lend more. the only way to have no increased nonperformers is to lend less. >> speaking of m&a, in the health insurance space united health has approached aetna about a take over deal valued at $40 billion. cigna buffed a $45 billion deal from anthem. >> we say 5 to go to 3. in other words there will be three of these players. they think the government would still let that pass. it's just going to happen. what's interesting is humana wasn't rumored yesterday so it went down. it's all five and there's going to be three and they're trying to figure out what the three are going to look like. >> do you have favorites? >> i think signal is inexpensive. you can buy et ma. >> these reports, anyway for cigna, the range they're giving around 175. the premium would not be insane. >> these stocks hav

ryland and standard pacific is up. you f you do the math there's not much of a premium in the deal. it pretty much at the cost of the companies themselves. the bottom line is good deal but no premium. finally want to mention united technologies. i hope you saw the helicopter will be made. it's lower here and that's because their guidance is about 10 to $0.20 lower than expectations. they're saying this is partly on what they would need to do to complete the deal. >> thank, bob. your thoughts here? >> in the end you have a story the commissioner said on monday it's time to prepare faror a state of emergency. you can't come in and say, look this is the day to put a lot of money to work. i think there are things that are down too much. highest growth comes right back. ambarella ambarella, but state of emergency doesn't make me feel like what an opportunity. let's see it play out a little. i don't want to hurt people here. >> when we come back brent saunders is going to join us when we come back. the dow down a quick 176 points. ♪ [music] ♪ jackie's heart attack didn't come with a warni

and an upscale builder and lower priced tier is ryland and could result in 50 to 70 million in annualyou have cvs. buying the pharmacy business and clinic business and this is a 1.9 billion dollar deal and looking at pharmacies and clinics in seattle and portland. we'll see it. and home building deal we've seen mergers and acquisitions, tepid job growth and mortgage not so easy to qualify for a mortgage as well and a lot of students have debt. maria: thanks so much. nicole is on the floor. when it comes to financial literacy, women are falling behind, far behind men and the worst part, men don't know that much about money to begin with. dagen: that's distressing in two ways, that women are worse at financials and men stink at it, too. maria: horrible. dagen: there was a survey that asked three multiple choice questions about finance, 38% of men got the three questions right. american women, only 22% scored three out of three and when you focus on groups of women you think would be more literate in terms of finances, they still didn't do that well, younger women who are single in the w