softbank and sprint think they can jam this through. there is a regulatory environment somehow different from 2011 when at&t's attempts u.s., when ite fell through. i would be curious on that and whether he thinks this is caution, confidence or a mix of both. >> i see this as almost a regulatory story. secondarily, a business story. obviously, muska gushy -- masayoshi son wants to do this. he is an aggressive guy. whether there is willingness in washington is really the $40 billion or $50 billion question. at&t found this out the hard way. i don't think sprint wants to see that. we have seen in europe a couple attempts to go from four mobile players to three. that is still tied up in the regulatory weeds. i don't think this is a slamdunk at all. >> how much of the story is the fact that masayoshi son is involved? he is the chief executive officer of softbank which owns 80% of sprint. we understand he is trying to build an argument to convince regulators. can he do it? like he doesn't give up. -- >> he doesn't give up. this guy is a jour

before the softbank investment.u have an 80% shareholder it is difficult for an activist, you can never get the majority. it was an issue for us. we did focus on that issue. timet through one tough when i decided to carry the andne, our stock went down i took a lot of criticism for the activist community. short-term, we talked about subsidies earlier, you pay a lot of subsidy. back then, it was also supplies phones. -- it was also supplies -- it was also sub sidized. it would have a long-term impact, the brand was better and customers would stay. we had activist activity. >> is there any way activists could help hasten consolidation in the wireless business? >> i would not want to speculate on that. i think basically the speculation is you have a number, at&t and verizon that are going to control. you have other companies like sprint with an 80% shareholder. is unlikely to have an impact on consolidation in the u.s.. >> how much is softbank involved in your day-to-day business? >> we meet for 1.5 days every month. a

will have a stake of 22.6% and softbank with 34.4%. joining me is cory johnson and our ipo reporter. you have gone through the f1. what stands out to you? >> with standout is the operating profitability of the company. the word of warning for those number crunching, it is a fiscal year that ends in march so we do not have full-year numbers because they did not report the number for the full fiscal year. for 2013, we see operating profitability up 25 cents which is spectacular but the numbers are better than that because of a one-time payment to yahoo!. strip that out there and you are looking at a 35% operating margin around about and that's just spectacular. >> how much is coming from the core business? >> most of it. we don't know the breakdown and i will have to crunch numbers to get to that number. this just dropped about an hour a half ago. i'm sure we will be pulling lots of nuggets of information out of this. >> it is comprised of alibaba.com, amazon, ebay, google, paypal. leslie, what stood out to you? you have been working on

>> softbank owns 80% of sprint. looks to be the leading candidate. we want to put screens up with him because he always wears a pink shirt. the question really is if he can own tomacklemore on his not crash the at&t party in las vegas. everything was trading up after hours when bloomberg broke it. nothing will be trading because everything is closed due to the holiday making me the least important person in germany because i'm working. >> i do feel sorry for him. >> you are definitely important to us. thanks for showing up. >> don't miss a conversation with t-mobile president, john legere on "bloomberg west." >> underscoring weakness. we are bringing in mia saini from hong kong. china has passed the biggest changes in pollution regulation and now we see this manufacturing member coming in lower than estimated. those are to some extent linked. >> that's a very good point. like hans, i'm working on my holiday and the chinese markets are closed for labor day, including hong kong. we have the april pmi figures coming in at 50.4, lower than the median est

softbank, a huge stake in this business as well. all kinds of questions. >> we talk about the has to puts, jack ma down the microphone. the singing is just terrible. we are talking about amazon versus alibaba. whether that is the correct comparison is a debate. i want to talk about the margins. you can talk about transaction volume. revenue at alibaba is much lower than amazon. much amazon makes. this is jeff bezos sacrificing short-term gains for long-term gains. he makes less than one cent per dollar. ali baba is making $.43 per dollar. these companies they might look similar, but are very different. that means something going forward. >> for me, it shows a strong personality who fears nothing. you. will find it for >> karaoke. >> fran loves it. what i find amazing is the sheer footprint this company has in china. it is colossal. it is a huge chunk of gdp. >> two percent of gdp in 2012. it is 70% of package deliveries in china. that china is something we all want a slice of, but not many people understand. how do you evolve outsid

this is sprint executives backed by softbank.print.s owns 80% of they want to make sure they have the financing lined up so if they get regulatory approval than they can do the deal rather quickly. these are sprint executives, they met with six banks. remember all of the subject to huge regulatory hurdles. at&t tried to by the u.s. arm of t-mobile. t-mobile is the fourth-largest carrier in the state. it is owned by deutsche telekom in germany. it is a separate company in the states. when at&t try to buy it. wall street thought it would go through. it was price in. and the regulator said no. softbank need to get regulatory approval. the need to make the case this will not harm consumers. it will give consumers more options. >> so hans, who might run the company? >> john leger. the leading candidate. he is the current ceo and president of t-mobile usa. he is the leading candidate. deutsche telekom and softbank are talking about potential names. this is not a done deal. john leger a colorful figure. we have colors of him -- p icture

individual movers we are watching the measures of softbank and sprint. ceo of softbank is seeking the u.s., for telecommunications company, and consolidating with sprint for access to about 50 million subscribers in the u.s. the company plans to upgrade its u.s. networks. the ceo has made no secret in his interest in acquiring t-mobile to challenge market leaders verizon and at&t. t-mobile is owned by deutsche telekom. rumors have been going on for about 15 years. on the markets again in 30 minutes. ♪ >> welcome back to the second half-hour of "bottom-line line" on bloomberg television. i'm mark lambton in new york. thanks for staying with us. -- i'm mark crompton in new york. thanks for staying with us. sign the residential market in the u.s. is stabilizing after a weak start to the year. the national association of real tells -- of realtors says depending on sales rose 0.4%. another sign the labor market is getting stronger, there were fewer first-time claims for jobless benefits than forecast. the four-week average fell to its lowest level in 6.5 year

we do not know how much softbank is selling. they will maintain more than a 30% stake which is where they are at right now. >> john, i wonder if you have seen a reaction to the valuation in silicon valley in terms of other investments areas if people are thinking they want to buy the kind of thing that alibaba will use the cash to acquire, or comparisons along those lines. besides mobile, the next growth area is definitely the u.s.. the word is they will be expanding very substantially in this market, particularly in silicon valley. there's no question from an entrepreneurial standpoint, it is an exciting ipo. i wouldn't put it on par with facebook, but it has that field. this is the emergence of another tech titan who is going to be moving aggressively. more about thelk role of yahoo! in this filing. tale of two a companies. you follow yahoo! very closely. this he filing shows that alibaba likes yahoos head of resources. yahoo! is supposedly going to sell as much as half of its stake in ali baba. what does all this mean? >> it

inwas before softbank came and goldman came in.it was like, why are these people so interested in the company? talk is a vision he would and make it very comfortable but also feel he is something special. >> what is the fascination with the u.s.? is not true for a lot of the tech entrepreneurs in china. .e travels here early on he has early experiences opened to him. here and was determined to do something about that here at >> i want to talk about the ali pay incident when he spun off this art of the company without talking to yahoo!. he compared it where he needed to make a decision but he understood it was cruel. what do you make of why he did that. almost like buying a car where china is a rocky road. you need good shock absorbers. there will be often in contradiction -- contradicting things happening with systems emerging. his ability, the company posses promises that they will try to insulate you as much as possible from that. what is inow exactly his mind, but they had to do something to take ownership into private hands, aw

sprint, the big japanese company controlled by softbank division calling forward to push for a bid for t-mobile after meeting with banks to secure financing. that's according to people with knowledge of the situation. that's the big elephant in the room. the earnings in the room tell us that earnings are just narrowly missing estimates for the first quarter. like strategy day for barclays. pressure has been mounting for targets over job cuts, and what the business was to focus on. manus cranny joins us now. you've been following this for a long time. focus will be on the jobs story. >> whether jenkins in his second review, been there nearly two years, but it is just aggressive or substantial. will it be within the investment bank? it's hard to talk about the consequences but that's the reality. that's one of the biggest costs speculating now that the bank would drop 20,000 jobs between now and 2016. originally, they had said it would be around 15,000 jobs by 2015. i think the most critical piece be what's strategy will and how many changes within the investment bank you will do. throws

sprint is 80% owned by softbank. t mobile is 67% owned by germany's deutsche telekom.hat's why it is so confusing. >> is the government involved? >> absolutely, you have to get this passed the fcc and the department of justice. is the fourth-largest carrier in the u.s. only block the at&t deal with everyone thought would go through. >> $23 billion is the valuation? julian emmanuelle is with us from ubs. the fed has expressed confidence that we can grow going forward given the fact that we are continuing to taper. now we are seeing corporate executives express the same confidence in m&a. a month ago, we predicted it could grow by 17% this year. now, the numbers look like it's closer to 40%. >> will we see nominal gdp? you guys say the word confidence too much. that's what this is about. >> we were just talking about capex. m&a is just buying someone else's capital stock. you will get rewarded for that in the future. i bring it back to getting off the zero rate environment. i think zero rate of the most corrosive thing that anyone has ever seen and if you want proof look

softbanking yahoo! and who are shareholders. let's get to leslie packer.icker.r -- most of the stuff we know about alibaba is based on reporting like the $20 billion offering. there is a 168 dollar market value. what did we learn from the filing about their operation? >> one thing that was interesting about the operation as we learned a lot about the risk factors and things they are focused on in terms of what could be materially adverse to their business. we learned about china's influence on the company. we learned how big of a hand they have in their operations and what that means as a u.s. investor if you are investing in them, how the chinese government can impact those investments. registration?the chinaany does business in which is registered in the cayman islands and this listing in new york but hong kong would not list them because there were too many confusing parts and the dual share structure. why are u.s. regulators allowing this? >> a lot of people call this regulatory arbitrage in terms of filing in different places. they filed in the u.s. p

japan dropping a $3.2 billion deal to buy a company called e-access from softbank.later yesterday, but is worth noting. yahoo! japan may be buying back more stock, that perhaps seen as a bit of a positive for yahoo!. given the significant ownership state there. softbank which controls yahoo! japan opening 42.6% will now move in a different direction. that was going to take cash for softbank will help them when they try to buy t-mobile. >> no one is left alone. every company will get purchased. [ inaudible ] times weighed in with an editorial. >> a wave of consolidation occurring here. no doubt about it. we know that amongst the distributors, given comcast, time warner cable and yesterday's huge deal with at&t and directv. the question is what more will come, if anything, and then another key question is also, well, do the content providers themselves start to feel pressure. because you do have 30 million homes, 30 plus million homes both of these, does that -- certainly at&t and direct talking about synergies and savings that will come in part at least from being ab

the want to talk about incident where he spun off this part of the company without talking to softbankyahoo! he has said that he has been compared to [indiscernible] from tiananmen sqaure. what do you make of why he did that and what it means about him as a leader? at theinvestors looking company, it is almost like buying a car. china is a rocky road. you need some good shock absorbers. there are lot of things happening in the chinese government. company is is the able to insulate you as much as possible from that. they had to do something to take ownership into private hands away from foreign leadership to protect the company. people have questioned whether that is actually the case. it seems the company will buy back in the future. but you seem to be something odd with that. they had to do this to continue the business, the ecosystem. what hiser responsibility is to investors. it is unusual where they have bought back the shares and to admit to take the company private again. >> yes. the second offering a few well is very different -- if you will tom is very different to the first ro

>> head of softbank, which owns is absolutely bent on buying t-mobile, and the reason is, he needs thatcompete with at&t and verizon. t-mobile and sprint on their own, they are barely hanging on right now. the combination makes good sense. >> right. the question is whether or not regulators will sign off on it. the other news is at&t mame make a bid for direct tv. what is the rationale given that directv does not have spectrum? dish does. is this a ploy to get dish moving on a potential deal with at&t? think so.ot as you look at telecom and how it is playing out, it is all about video. i think at&t oaks at directv and says the combination of their 5.7 million video with direct to ectv's 20 million gives them instant scale in the video business and great skill of leverage with content providers as they try to get video onto the wireless network. they still need to negotiate those deals tom and if you have almost 30 million you have leverage. >> what do you think verizon will do when they see at&t do something, it kind of grabs their attention as well? >> it does. verizon has been working

public,baba goes softbank could be the biggest winner. bet $20 million in unknown company and they think it might be worth $58 billion. a shakeup at samsung because of falling phone sales. they have replaced the leader of their mobile device design team. they have been heard by cheaper chinese made models. nintendo has been struggling to win over consumers with this latest game consoles. a 13 yearntly lifted ban on selling videogame consoles. on your 201k that has been improving, risk on them at off and risk on again. there are pesky momentum stocks that are getting crushed. kate moorre is with jpmorgan. she suggests courage is in order. there is the idea of use of cash as religion. >> we have rewarded companies to build up their cash surplus over the last few years and everybody wanted to see more buybacks and dividends and this is the first year where you get investors talking about capex and m&a. we are not talking about taking down the cash levels that exist on balance sheets. i think that will continue to exist. it's more about the i

it's an intriguing time in the wireless industry with softbank said to be preparing to make a bid for nation's number four carrier-t-mobile. weise ok exclusively about the possibility of a deal. >> i think the industry would be healthier. you have a stronger number three and i can't comment specifically on anything with respect to an mende, but it would you good for consumers. >> here's what he had to say about his own future and whether he would be running the combined company. lex one of the things about sprint is they talk about the ideal time as seven years. i still have fire in the belly, so i could -- it might be a good opportunity to do something else. >> jon leger is said to be the leading candidate to run t-mobile should sprint come through. now to another major deal we're following today -- the ali baba ipo filing expected to come any moment now as the chinese e-commerce giant prepares, it's been making huge investments in u.s. companies angst to a former liberty media who has been leading the charge. cory johnson is here with me in the studio as well as jon erlichman in l.a

softbank sales doubled to nearly $66 million and operating profit reached a record high at $18 billionjor stakeholders of alibaba, the chinese e-commerce giant that announced plans to invest in the u.s. stock market. they hold about 40% of the firm's shares. the ceo says he has no intention of selling alibaba stocks at the time of the ipo. that's all from the nikkei business report. back to you, ross. >> thank you for that. >>> chinese trade figures tomorrow and australian employment numbers. watch the aussie dollar to react on the back of both of those numbers. on the earnings front we hear from national australia's bank. and out of japan, expect results from toshida as well. it will be a busy thursday. >>> yes, after weeks of anticipation, the chinese e-commerce giant alibaba has finally filed for its ipo. it looks at a business that controls around 80% of china's online commerce market. eunice yoon has been taking a look at the buyers and sellers driving alibaba's success. >> reporter: joe lee is a self-described addict of china's online shopping site tao bow. he's purchasing furnit

the original investor is softbank. in 2000, plugging an initial $20 million into the company.the first couple of years and now its stake stands at 37% of the company. yahoo! famously paid a billion dollars for a 40% stake in 2005. sold a portion of that in 2012. its ownership is 24% of the company. and i'm told from sources it will be selling roughly 208 million shares in a deal, sources talking about a windfall in the range of $13 billion for yahoo! if the company is valued at $150 billion. now in 2009 private equity firm general atlantic partners bought an undisclosed amount. the valuation around that time about $10 billion. two with years later, more swarmed to buy shares. silver lake led investors that bought about a 5% stake of the company valued around $32 billion. sovereign wealth funds from china, dubai, alongside hedge fund like the u.s. viking global and silver lake and temasek were in that deal they helped alibaba finance yahoo! stake in 2012 when they bought it back. that valued the company at roughly $43 billion. now the ipo will have both newly issued shares by t

and softbank -- melissa: no longer ceo, right? >> no longer ceo.ounder and he is also, someone that makes a lot of the decisions though. and what a lot of investors might be worried about is some of the board governance that came with the alipay spin-off that resulted in some questions where the board was in terms of making decisions. also the communist party. we can get into that later. melissa: spencer what do you think is their biggest challenge going forward? >> i think growth is their biggest challenge going forward like most internet companies. the valuation is supposedly around 150, maybe high as $200 billion. that is probably one of the highest valuations we've ever seen for a eye poe. the is if you're going to value it that highly will they continue to grow? in recent quarter, yahoo! grew 66% in the first quarter. that is extraordinary growth. investors will look to see if they continue that rate. melissa: thank you, very much, guys. airlines making less and less with baggage fees but what about all the tactics using to get charges out of

>> some of the owners right now, the larger owners would be a japanese company called softbank, and alsoahoo, a well-known u.s. company, owns about 24% of the company right now. they'll sell about half their holdings in this i.p.o. and then the other owners are some of the founders, jack ma is the founder of the company. he founded it in his apartment about 15 years ago. he's a former school teacher and he's built this company out of scratch. they're coming to the u.s. market for two reasons, actually. number one, it's for control. jack ma and his partners, while they're only minority shareholders, they want to maintain control of the company, and in the hong kong exchange where they thought about going public, they were not able to come up with a structure where the regulators would allow them to control the company. however, in the u.s. it is more common for different structures to be created to allow minority shareholders to be control shareholders and that's the primary reason they're coming to the u.s. secondarily, i think they're coming to the u.s. markets because they want to grow

softbank with 3%. jack ma the cofounder has about 7%.es stand for major upside once the stock starts to trade. a lot of analysts say yahoo! is undervalued given the sum of its parts including that 24% stake in alibaba. they will sell off some of that, cheryl as the company ipos. cheryl: you know this company so well. so the 2013 net income, coming in $1.39 billion. i don't know if that number surprises you or not, jo ling. we're so curious about the company, what the breakdown of it is. do you think that will be important as we move forward and talk about this company? >> yeah. every single piece of information we're getting out of that file something really critical to analyzing the company because we haven't really had that much financial information on it. there was a filing in hong kong a while ago when they listed there for a short while. that information is very much out of date. we know revenue is up 66% year-over-year, according to yahoo! earnings. we're also seeing now that there are 20,000 full-time employees. this, company fou

i mentioned, and in the case of alibaba, have exposure to that from a fairly sizable position in softbank, which owns about 34% of that company. >> your other picks before we run, baido, red hat, so that's the basket you're focusing on? >> i like all of those, and it's being selective, not just buying the bucket but finding the ones we think are best positioned over the next five years. >> ken, thank you so much for coming on. >> thanks, scott. >> ken allen, t. rowe price. pretty compelling thesis for guys like you, pete, who are looking at some of the weakness and buying on it. >> i think there are opportunities out there. i've still stayed away from the various names. whole foods is one of the view. there's a name i'd throw out, like a splunk. this was over $100 a share, now underneath $50 a share. when you look at this company, with 50% growth rate over the last multiple quarters, and yet the stock continues to drive itself down. it's because of the high multiple. it's why i'm still staying away from it. i see options start to flow into this name in a big way, i'm going to jump on. >>

the ceo of softbank and sprint, chairmen, say the u.s. internet speed stinks. 15 out of a possible 16. who's going to fix it and how can you profit? >>> now go over here, right? here i go. we're exactly two weeks from the start of the world cup in brazil. and it is a very scary picture apparently down in that country. gang violence spiraling out of control. brazilians staging massive protests. we're going to talk to a big voice in brazil who says the country will not -- repeat -- not be ready to host this tournament. >>> first to sue at the nyse. >> hi, ty. and right now we're focusing in on interest rates, as you mentioned, but also on the markets with the dow jones industrial average right now up 17 points on the trading session. s&p at a new record high earlier today, up about 4.5 points. nasdaq composite is up 14 points, one-third of a percent to the upside. the russell 2000 almost up 3%. gold down. there are many story lines for this hour. we're beginning in times square with the nasdaq and seema mody. hi, seema. >> reporter: good af

on the flip side, he still likes softbank corporation even though it was one of his worst performersrst quarter. finally, they look to be adding to their portfolio in commercial mortgage-backed securities as well as in europe generally. they're looking to seek assets from european banks, sue. so those are a couple of areas where he sees i had ydiosyncrat opportunity. he says you're going to have to do your research, though. >> as always, kate, thank you very much. >> thank you. >>> let's see what's coming up at 2:00 p.m. eastern time on "street signs." >> hey there, sue. really eyebrow-raising report saying one-third of people signed up for obamacare have not paid their first month's premium. just how true are the figures? we'll find out. are you a millennial? will the housing boom and bust make you less likely to want to buy a house? all the stats on how changing demographics are changing the landscape for the housing market. also herb's found a company that really can blame the weather for its earnings. "power" is back in two. see you at the top of the hour. ♪ [ banker ] sydney nee

and softbank on a substantial portion of alibaba group. that is going to be a problem going forward. >> are you calling him a control freak? >> investors need to look at this carefully. we have seen were the chinese government has forced investment a foreign investors from sector in which they had no right to be. we are talking about investment risks. we may compensate you, we may not. that is going to be a big issue. i would like to see more of that. >> that is speculation. foreign investors, if they are going to buy into alibaba, they will buy into the growth story. it is a growth story in china, is it not? >> it has 80% of the mobile market, where the growth is. there is another company out there which is a very good story . it will probably not carry the same valuation that alibaba will get. it is the social media player and china and it is easier for them to monetize and going to e-commerce than it is for alibaba. right now, you have two internet giants invading the other's turf. it is an easier path for $.10 than it is for alibaba. >

softbank planning to move forward with a bid for t-mobile.he company met with them this month to make that arrangement for the t-mobile offer and could be a pretty big win or sprint. the acquisition target added more subscribers in the first quarter than at&t and verizon combined, adding 1.3 million new monthly subscribers. joining me to discuss, jeff mccracken, bloomberg news managing editor and tina moby. also, emily chang. i know you just sat down with the t-mobile ceo. what did he have to say about potentially running the t-mobile merger? kudos to the team for breaking the story and also breaking the scoop john leger is a leading cavender asked canada to run up potential merger. i love interviewing john because he never minces words. always provocative. any other ceo might not have done the interview at all after we broke the story but he came out swinging, not just on television. run theing candidate to combined company. i?tweeted back at me, "am :)? >> consolidation is one path forward or this company. i will not comment on any individu

was so much speculation whether at&t would come over from the atlantic and snap them up or whether softbank come over the atlantic as well. companies based in the u.s.. usa ank is buying t-mobile so m&a off the agenda and we are million -- the 400 million customer provider. this is a decent bed. it will take a long time. gradual recovery and this is what we are expecting today. we get for your numbers coming from vodafone. europe is exposed to 77 -- 70% sales. >> they have big exposure in europe. price wars are taking lace and the sluggish economy. >> some of the markets are looking to offset some of that and they have not had the best agent, similar themes as well. they are doing well in south africa but this is the new normal for vodafone. how when you and i are calling us on our mobile phones because we do not need to. we can do direct messaging and skype. these free services we can use, we are using data far less. how do they get up to use vodafone, that is why they have project spring, 19 billion dollars. they are throwing money at this at the moment. >> let's talk about the other u.k.

chunkse also owns a big is the founder of softbank. they're looking at a deal with t-mobile. alibaba has been allowing others to look at deals. >> i don't want to get you in trouble with citigroup. i assume you're part of the deal. in your securities analysis history, the heritage, does alibaba pass the smell test? >> he is not trying to get you in trouble. >> i will duck this one big time. i have no idea if we are part of the deal. i'm concerned that you think i remember the 1920's. >> i wonder about - is that just a stupid chauvinistic american bias? actually, in your defense, you're saying that in the past we have seen massive ipos. united was like ringing a bell. when you see a company this big go public -- >> jeff talked about the internet stocks --cloud computing and the like, getting hammered. part of what you have been showing is that the initial spike was this grand enthusiasm. there is a concept of tam. it was about the size and potential. do valuations get ahead of that? that is the correction you see. >> all right. thank you so much. ♪ >> they play again tonight.

there is friend, softbank, t-mobile, catherine zeta jones -- >> that was like 10 years ago. >> theres hope they will bring it back. >> good morning, mrs. zeta jones, if you are watching. scarlet, you get us started. the headline story of the moment. >> struggling ford direction, the yield on the 10-year note, about a six-year low -- six-month low. yields are under pressure. we have the escalating tension from ukraine and russia. some people say uneven economic data. some parts raise concerns. now, i read jersey. he is the director of -- a credit suisse. the bull case for stocks remains emphatic. in good company in thinking that bond yield will rise. indicators suggest a bond yields are ahead of themselves. >> he has been wrong for 90 days. >> we have been wrong from the beginning of the year. we think yields will rise. we have been in a range of 25 258. points from that is almost exactly where we got yesterday. we have done that for four years and bounced around. the market is leaning short. like yields. economic growth in new york is getting better and no one wants to be long. a lot

some of the big names reporting include softbank, news corp., and new skin, the utah-based company thattion will supplement and its 40% of its revenue from china. the company just resumed china operations in may after coming under fire from regulators and paying a half million dollar fine. we will also be getting a fresh round of economic data. economists expect reports to show that service industries expanded in april and the trade era -- a deficit narrowed in march. we will be hearing from the fed chair janet yellen as she testifies before the joint economic committee of congress on monetary policy and the u.s. economic outlook. in new york, su keenan, bloomberg. >> for more on the week ahead, let's talk to tom murphy, managing partner at family office research and management. tom joins us from sin me. a good morning. how are you -- how are you? >> very good. serious start off on a topic. the escalating violence in ukraine. there is a lot of uncertainty as to how this plays out and bloodshed over the weekend -- how does this impact investor sentiment in global markets? >> investor sen

comde in las vegas is what -- which was one of the first technology shows before he sells it to softbankds tosed the start las vegas sands. >> you know these billionaires very well. throughout the interview, he was very -- he was emphasizing he is the guy and these other guys are following me and i'm the guy who created this industry, convention-based marketing and las vegas. i'm the one that wins to themacau casino. he's >> got a bit of a chip on his shoulder. >>most of them do because most self-made millionaires are the ones trailblazing who create new things. he said steve wynn reinvented the clock. he said you can have people sunday-thursday in las vegas. we should not just be focused on the weekend which is what other people were focused on. steve wynn brought entertainment and restaurants like non-gambling revenue to las vegas and sheldon adelson broaden the customer sunday-thursday and charged them for everything. make sure you pay for your room. gets one of the first licenses and steve wynn built a huge can see no -- casino. sheldon adelson builds the biggest one and pays it off

others thinking sprint and softbank should be coming together with t-mobile. >> you and i have talked long about this. all of this and then they activity happening all at once activity happening all at once. it is not just in tech or pharmaceuticals. it is in media as well. other companies will say, hey, if you let that you look through, mr. again later, then you probably need to let my deal look through. , thend -- mr. regulator you probably need to let my deal go through. >> everything we've been talking about in the past 10 or 15 years about the convergence between technology and media, it's actually happening and here's your great example. >> thank you so much for your perspectives. selloff in tech continues. how low will chairs go? plus, victoria's secret supermodel amber is here. she is working behind the camera to try to help save the country's most honorable waterways. that is ahead. ♪ . >> one term lies at the center of the debate over how the internet should be regulated. net neutrality. what is it? the term sounds intimidating. down andson broke it explains with a little he

and we also have earnings from nintendo and softbank. eu japan summit taking place in brussels wednesday. indonesia, we finally get the parliamentary election results. shares of twitter slipped a touch. employees will be getting their first chance to cash out with concerns rising about slowing user growth. is it a good time to hold or fold? morgan brennan has this report. >> on tuesday in some 480 million more twitter shares are becoming eligible for sale. that is over four times the number currently trading on the nyse. but twitter has been vocal about its biggest shareholders have no plans to sell, holding at least 50% of outstanding shares. among them, the ceo and co-founders, bench mark capital, skrchlt p morgan asset management. so we looked at 1 # 1 other social stocks big lockup expirations since 2011. on. >> prices have finished up 2% the day before an expiration, down just under 2% the day of. down again just under a percent the day after. take facebook's first big lockup expiration august 2012, the stock jumped over 6% the day

for some time, it is -- >> what's going to happen -- >> it is the single focus of massa son and softbankthis done. we need scale. >> we wake up on monday and a lead story in the journal say sprint and t-mobile might merge. won't mention any of the month work you did and i will come in and say they broke the story, david. >> well -- >> jc penney up 16%. we've been through the numbers. gross margins up, comps up 6. they only forecast 3 to 5 back in february. >> look, liquidity off the table, first thing you do when they do a turnaround. well done. secondly you clear the merchandise out that was bad. third you try to bring back st. john's bay, worthington and pvh they have izod which a lot of us felt was a tired brand but he said this was an important initiative for jc penney, close to mike ullman and pvh travel trust should go higher. >> highest of the year for jc penney. >> unp the two for one raising their capex a touch for 2014. >> people are going to say let's buy trinity the railcar company. the stock is up big. not surprising that it's not giving -- that it's giving up a little. >> a

sprint which is majority owned by japan's softbank is hoping to fund the bulk of t-mobile's estimatedillion price tag with corporate bonds and the rest with convertible bonds and syndicated loans. sprint is facing some push back from u.s. regulators who oppose consolidation in the wireless industry and reports say the company is aware it may have to give up some spectrum in order to appease critics. >>> and merck is reportedly considering the sale of a big portfolio of mature drugs that could fetch upwards of $15 billion. earlier this week, reports say sanofi was pursuing a similar sale that could bring an $8 billion price tag. merck's off-patent drugs are known as, quote, diversified brand and are mostly sold in emerging markets. it was said it was no longer in the running to buy the consumer health care business of merck. lots of deals. you know what that means, ross, lots of work for the investment bankers. >> they'll be happy, won't they? good for them. >> they could use a lift. >> we like them to be happy. thanks for that, bertha. good to see you as always. bertha mentioned that

sprint, 80% owned by japan's softbank planning to move forward for a bid for t-mobile usa and met withbanks this month to make that arrangements for the office -- offer. bloomberg news's managing editor of mna joins us with more on the possible deal. jeff, let's talk about the timing. when the spring 20 to make a possible bid? >> this is the oddest situation. it has been well telegraphed. late last year he met with banks and wanted to see if the financing was there, which it was. then he met with regulators and got a thumbs down. he has taken that into account and then i guess he will move forward just at -- anyway. he is confident the financing is there a what he is looking for is a june-july time frame to get a deal done with t-mobile. it's got to negotiate with budget telecom back in germany, t-mobile.of >> u.s. regulators seem to be the hurdle. i think back to the at&t deal in 2011, everyone thought it will pass but u.s. regulators stopped it. what is he thinking? at&t buying t-mobile is different from sprint brine t-mobile. at&t is one of the big dominant ones up there with verizo

and sprint parent company softbank has been expressing its interest in ceiling a deal with t-mobile. the inevitable concern, the new internet and video powerhouses could take more control over your screens, all of them. >> with that consolidation and that reduction of competition, we see fewer things happening and prices mostly going up for consumers and subscribers. >> reporter: potentially good for consumers, at&t and directv say the acquisition could mean new bundles that would bring tv and internet options across all of your screens, even those in cars and airplanes. the fate of this new alliance rests in the hands of the fcc. >> there is a proper role for the department of justice to look at this as an antitrust matter and for the fcc to look at this as is this in the public interest? i say no, this isn't in the public interest and, yes, this is a violation of antitrust. >> christine romans is here right now along with matt wood. i want to start with you, christine. you know my prediction, soon there will only be four big companies in all of the united states. that can't be a go

and sprint parent company softbank has been expressing its interest in ceiling a deal with t.hese new internet and video powerhouses could take more control over your screens, all of them. >> with that consolidation and that reduction of competition, we see fewer things happening and prices mostly going up for consumers and subscribers. >> potentially good for consumers, at&t and directv say the acquisition could mean new bundles that would bring tv and internet options across all of your screens, even those in cars and airplanes. the fate of the new alliance rests in the hands of the fcc. >> the federal communications commission has a role to look at all these mergers, both individually and against the landscape and say are these mergers in the public interest. >> if both deals pass, regulators at&t and comcast would control two-thirds of the business. >>> craig moffett senior research analyst, you are widely renowned with how you understand this space. let's start with the up and down for at&t. why is this good? why is there risk? >> well, i think the good is this is a compa

stake in alibaba worth about $26 billion according to the chinese company's ipo filing, although softbankas even more than that. what a wealth of information was in this filing last night. >> yeah. this is bad for the market. >> why? >> why? because when you read this, they've got a better commerce than ebay, they're much cheaper than google, they've got a better deal than facebook, they are going to if you own amazon you must sell amazon to buy this. a huge deal. not enough money around. all those things are what i said or what portfolio managers will have to think. plenty of people -- sell in alibaba and go away. i am telling you this deal, i'm going to give you -- >> why wouldn't this give you exposure to klein which by the way is a much more protected market, hence almost 50% margins but very little -- they have competition domestically there. >> this is a communist party. you're buying shares in the communist party. i'm sorry to be so -- >> jack -- >> is not part of the communist party -- >> you're saying high barriers to entry. >> i'm just saying, i've never made a lot of money or t

billion which is still awaiting regulatory approval sprint controlled by the japanese telecom company softbank is trying to merge with t. mobile creating a serious rival to rise and. while all this is happening the federal communications commission has just made public its plans to move forward with new rules governing the internet which could provide big companies. with better access consumer advocates are already putting pressure on regulators to reject the eighteen t. direct t.v. deal over worries of serious media monopolies i was joined earlier by christopher chambers a journalism professor at georgetown university i first asked him how real is the threat of media monopolies to consumers. well already you have the slowest the most expensive broadband in the industrialized world here ironically the united states because that's part one we but it's a complex question that you know that as they say you know the barn door is already closed on this i mean you have the media consolidation in the eighty's with the deregulation of media deregulation of financial markets that allowed you to have th