alibaba wasn't so profitable for softbank last quarter.ome in the japanese carrier fell 68%. stake in ali a baba, and the company took a charge on the investment amounting to $620 million. softbank sauce low subscriber growth as rivals lured customers with discounts. the profit slump as it over for say think of india. that income rose for the first time in six quarters. while state bank has the worst ratio among its peers, that ratio is improving. loan growth improved last quarter, and shares have rallied on word that prime minister narendra modi will boost growth. i'm zeb eckert. wasour years ago, tesla elon musk invited another car guy for a ride in his wheels. , theirtoyota relationship has gone sour. -- say weay they are are unlikely to see another toyota-tesla tie up. how did this partnership come about in the first place? >> if we look back to when this all was formed and when accurate toyota and elon musk first met, this was a time when we didn't have the model s just yet. it wasn't clear if pfister was going to end up the way it is

for now, softbank managers only have sprint in the u.s. now the parent company will likely be reviewing its expansion plans there. >>> the world's two largest technology giants have called a truce in their global legal battles. samsung and apple have agreed to drop all patent suits outside the united states. the companies had been accusing each other of violating patents on the technology and designs of smartphones and tablet computers. in a statement wednesday, samsung announced an end to disputes in nine countries, including japan, south korea, and germany. the statement adds the agreement does not involve any licensing agreements, and the two sides are continuing to pursue existing cases in u.s. courts. both companies are remaining quiet on the details, including what prompted them to agree on the deal. but observers believe the costs of the global legal wrangling have taken a heavy toll on the firms. their first court case was launched in the u.s. in 2011. the companies have since sued each other worldwide. in may of this year, a court

softbank bought out bright star last year. it decided to drop a bid for t-mobile as it would face strong opposition from u.s. regulators. softbank's top executive -- said in a statement that he believes that it would benefit customers. he added softbank needs to focus on making sprint a successful carrier. >>> japan based free social messaging service, line, will set up a development fund to help game and content makers expand overseas. line executives announced it will set up the $100 million fund as early as september. line plans to provide funds to game and content developers. they will offer the games on its platform. line executives say they'll also hope the prungt will inease the number of overseas subscribers. line's senior executive officer says that game development costs are rising rapidly. he says he hopes line will grow together as a partner with game and content developers in the global market. >>> the syrian capital of damascus was once considered a cultural hub. but many people have been forced to flee the city

last year, softbank bought out the company. executive in the softbank group had been negotiating a takeover of the fourth largest carrier, t mobile u.s. but feared reg wlirts not allow the deal to go through so they decided to drop the bid. softbank's chief executive said in a statement he believes the consolidation in the industry would enhance competition and benefit customers. he said softbank needs to focus on making sprint a successful carrier. >>> japanese airline passengers are bound to get a bit more freedom in the skies. authorities at the transport ministry will allow them to use electronic devices during takeoffs and landings. current regulations require air travellers to switch off their devices at the beginning and end of their flights. that's because radio waves may affect the airplane's control system. but ministry officials plan to ease some of those restrictions, starting september 1st. passengers will be able to use smartphones if the devices are in airplane mode. they can also use computers and digital cam th

long-standing relationship with softbank's ceo. we will have to hear from him and figure out what they're going to do. they are a money losing wireless company they have said for months and months and months to regulators, even publicly. the government says we need for and not three, the question is will spread to a partnership with another company. are they going to go at this and stand alone? if they are, i would say the cards are stacked against them. beso it looks like it will for carriers, at least for now. .isney earnings failed we will speak to the ceo on contract creation on brand development and a frozen sequel. in takeaways from the first ever u.s.-africa for him. we will hear from some of the participants, coming up. ♪ >> two media giants posted earnings. web service company aol and entertainment giant disney. let's start with disney. >> movie superheroes helped disney with third-quarter estimates that beat estimates. it had to box office hits in the last quarter from marvel studios unit. we are talking about the captain

potential buyers include softbank and at&t.ftbank scrapped plans to buy t-mobile soon after the company sold $4 billion in bonds. the funds could be used for acquisitions. it is now easier for china's local government to borrow money. beijing has relaxed the direct selling of bonds to fund public interest projects. sales to finance day-to-day expenses remain banned. the law earlier prohibited all bond sales, forcing local governments to set up fundraising measures for local funding. weekendworked over the and boy, did they work hard. they say that trades were carried out with no major issues . there is no official start date for the program, which will give foreigners unprecedented access to stocks in china. the link is expected to start sometime next month. after losing out on what is expected to be one of the biggest ipos in history, the hong kong exchanges opening the debate on its future. david is here to explain. from theibaba slip cracks. at least that is what a lot of konge are accusing hong exchange of doing. what is th

i would think it is more likely to be softbank, because softbank has more of a vested interest to get a bigger ownership in yahoo! japan than alibaba has in buying what is left of its shares. that ship has sailed, but it is a possibility. after alibaba goes public, the story will be more interesting. >> as a ceo at chegg, you did an acquisition of an online tutoring business. how do you think about players like alibaba? are they in your mind if you think about the investments you might have to make? >> we are in the education space. we don't even think we are in the major leagues yet. it is getting huge. aliens of dollars invested. i doubt that alibaba will think about the education space in the u.s., given all the regulatory things. but it does change how people think about the valuations. the difficulty has always been when you are public, private valuations are higher. when companies take big investments in high numbers, it makes it difficult for public companies to buy private companies. every one of these things affects the landscape. we think the education market is huge, and bu

last year the people at softbank took over the third biggest firm, sprint. want to use sprint to acquire t-mobile. but regulators are reportedly reluctant to give the deal the green light. worried that the merger could reduce competition. now iliad executives say their offer won't cause the same problem. they don't have any operations in united states. executives at sony say competitors in china are eating into their share of the mobile phone business. they're going to overhaul their smartphone division to stop the slide in sales. the executives brought in higher profits for the april-to-june quarter and credit strong sales for their video games and movie business. but they failed to reach their target for mobile phones. they've struggled to compete against chinese firms that make inexpensive hand sets for emerging economies. now the executives were aiming to sell 50 million phones this year. but they've lowered that estimate. now at 43 million. they say they'll restructure the division to cut their losses. and they may stop selling phones in some markets. m

softbank shares fell becoming the top traded stock of the day. thank you so much for that. thailand is keeping policy rates steady. this comes as policymakers remain concerned about household debt and want to disclose excessive borrowing. some analyst see a chance for rate hikes towards the end of the year due to innationary pressure hikes. now, you don't expect inflationary pressures to rise towards the end of the year. why is that? >> the administration is doing in items of keeping tight control. so we've seen that actually towards those transition period, the management team of this government will try to keep inflation under control. and the other fact is that we are in a special period where we're going to form and it seems that the income growth will be below trend. so the future from the demand side inflation should be very limited. >> but how long can the bot afford to stay on control? do you think we'll see another bout of huge outflows? >> absolutely. i think that is a great point. if we compare inflation flows to other banks within the region, for example, indone

mealss is coming behind of softbank. >> absolutely. softbank fell apart. there is a number out there, as cory said. this is a bit of a stretch. they're looking to do something, they are to do a deal. a marker out there and says come if anyone else is interested, this is kind of where we are headed. i would basically say, they need to do something here. is fantastic. we all love that movie and that playing out. the truth with that with the disruptor model can only go on so long. there has to be a move. this is a situation where, going forward, you have got to believe they're saying, here is the number, you have got to get close to it very >> it was supposed to be $40 per share. does this smack a little bit of desperation? >> putting a price out there suggesting getting a little bit more. this is a money-losing business. a business where they have got enormous amounts of debt. the winner of this thing will have to have a lot of cash behind them to support the business. they need to be bigger to do well. he has done some great things to grow the kind of subsc

we saw softbank plot of a plan to buy t-mobile. good news for deutsche telekom, t-mobile is doing pretty well. it is adding subscribers. this is not a fire sale situation. grilli, they want to get out of theyss soon as they can -- want to get out of the u.s. as soon as they can. know is iliad do and france. it is seen as a bit of a longshot. they are there and they do have a bid on the table. then there are the domestic players. .e have had dish they've expressed an interest in t-mobile in the past. then there are the other domestic player's. comcast. even google has been talked about as a buyer. maybe they want to make a bigger bet on mobile. there is a long list. >> come back to comcast. not something that is common in the united states. it has been shown to work. could the model be you replicated stateside? in the u.s., it it barely exists at all. comcast is a behemoth in every way, but it has no mobile offering. long-term, we think we will go to quadruple play offering. >> matt campbell on the latest from dt. $5.3 million, the

i think i'll get an opportunity to buy things a like a lot better. >> in terms of softbank, does thatfor people still holding on to alibaba that that trade is also over? >> no. listen, first of all, i'm still playing what i think is going to be a great year and has been so far for chinese internet being sos. i'm still playing. i don't need double exposure to the alibaba theme in my portfolio. i'm covercovered. i'm not giving up to that trade. and by the way, i also sold it in my real portfolio in actual life. >> that's a great explanation. i wish you were around to defend me when some criticized me going to 40% cash a while back. listen, the 40% cash for me has not worked. i think the market's going down. it didn't work. >> how long 40% cash at this point? >> i think throughout much of the second quarter. and it's allowed -- it's allowed others to catch up. it's been an incorrect call to go to cash. one move i did make in the po t portfol portfolio, i got out of the tbt. i think that's a stupid move on my part. i got into nimble storage. nimble storage, the emc paul singer conversatio

look who ali baba is modeling themselves after, softbank. when they made all of those investments in the u.s. many years ago in the late 1990's, yahoo!, e*trade, they were the gateway to japan and asia. that is how yahoo! japan got so big. , if alibaba were to make an investment in a media company, which i doubt they would do, that those companies could be successful in china. there are some things that china will not allow to happen. i ensure sure part of their argument with people is we have the connections and distribution, we can ring you into asia. i'm certain that is a large part of the dialogue going on. >> is it crazy to think that alibaba could be in a position, after its ipo, to buy yahoo!? >> it is in that position now. i believe it's -- if it is going to be a transaction, it is more likely to be softbank because they have more of an interest in owning yahoo! to get back a greater percentage of ownership babahoo! japan, van ali does in buying the rest of the shares. i think that ship has sailed. public, theba goes story will be mo

he is close to the founder of softbank. that is going to be sprint's new strategy. changing a management. >> what is the why behind this? why was he shown the door? i think part of the reason was that he had made the decision to leave. we thought the ceo of the merged company would be john leger, t-mobile's ceo. the writing was on the wall that dan hesse he was going to step down. it is not a surprise that regulators did not like this deal. that has not been a surprise since day one. >> did we have any sense of what the plan b was going to be for sprint? drop prices orer invest in new infrastructure to expand the network. do we have any sense of which they are going to choose? >> not yet. sprint is going to have to lay out their plan b at this point. there is a plan c i suppose. they could do some sort of partnership with another company. i know that dish network has that they would love to do some sort of network hosting, sharing, and have them pair up mobile and video, similar to what at&t is trying to do with directv. quickly, we have craig moffett with us in the

softbank one that. it could be interested.end karloff one of the richest man in the world. he is will note in the communications space. american mobile, iliad, and dish network. >> we were just talking to ryan in terms of time warner. do they remain independent? do they do a merger with cbs? do they become a target? are they now more exposed in terms of verizon? is a day for walgreen as well. they will avoid the texan version. as that referring to it from the eu. that is what boris johnson is set to recommend unless russell's reforms. -- brussels reforms. the london mayor will release a report here and he will say the best idea is for the u.k. to stay in a reformed eu but it will be one worse for a person to be remaining in an unreformed one. >> the scenarios are stay in the eu, reform. leave the eu. >> millions of jobs will be created if you continue in a reformed eu. that is option one. this is jared lyons. this is extrapolated over 20 years. this is the chief economist and advisor to boris johnson. >> the uncertainty for wh

softbank is selling almost $4 billion in bonds to help finance future investments.ter the company scrapped a merger of its sprint unit with t-mobile u.s. judge has thrown out a $256 billion lawsuit against bp. the whistleblower who claimed the atlanta's's oil production platform was unsafe. the judge ruled the case was ultimately about paperwork. climbed after a report that the company could spin off paypal. the world's biggest online tellingace has been potential candidates for the top position of paypal that it is considering a spinoff. >> janet yellen will make her first speech at the jackson hole symposium later today. kansas city fed president esther george has been speaking to bloomberg. she said when the time comes to raise rates, communication will be the key. far betweenlike so communication from the committee, the market has responded. the fed has not reacted to some of the data we have seen, but kept a more long-term focus. so far, so good. when we move into the next phase, there could be some volatility. we have been at low for a long time. it will be im

softbank is said to be launching a new phone. it will start in japan and then offer it the u.s. through sprint in september. u.s. regulators say they will low-endm to sell its service to lenovo. the deal will give lenovo a bigger slice of the global computer hardware market. to focus on growing areas, including the cloud. china's biggest banks are facing their weakest profit growth in 10 years. fromhere is more pressure direct share sales. >> the weakest profit and 10 years is the forecast for these banks. they begin reporting tomorrow. icbc, bank of china, adding inc. , more on that in a second. share sales, record will dilute earnings overall. they are to sell more stock than in combination of the u.s. and european banks. it settles banks with the pressure of the expense of dividend payments goo. dragging their profits. they are already constrained by rising bad loans. earnings forecast are a confined 7%. $150 billion, twice of the u.s. banks at $70 billion, and three times the word of the year he and top five banks at $47 million. >> we have to be mindful that many of these s

softbank owns sprint. they planned to bid for t mobile earlier this week.ome of japan's biggest exporter hamstring are in survival mode. ussia has an import ban. dairy produce halted all production lines making products for russia. coming up, what is no burn's secret to international success? a friendly push by robert deniro. manus cranny sits down with the man at the top. don't miss it. that is next. >> welcome back to "on the move." i'm jonathan ferro in london. the japanese have been enjoying sushi for a long time. manus cranny spoke to the mastermind behind a sushi business that spans five continents. >> sushi, a traditional japanese food with an international appeal. in the west, few are as associated with it as this man, nmp obu. -- nobu. going from chef to entrepreneur, he opened his own brand of restaurant in new york 20 years ago. backed by hollywood a-list business partner. >> when was the moment you said robert deniro and you went i trust him. raupt and he my talked about working together with partnerships. the first time he offered to me, i said

are not alarmed by the latest softbank results. merrill lynch's has softbank is taking alibaba.ss carriers also being wheezed by a rival. feed has newfound cash to fuel its expansion plans. it is getting $50 million from a venture capital firm. the parent company has a stake in that firm. they are expected to unveil new content and build a motion picture unit. and new trouble for the site that everybody loves to hate, facebook. there's a furor about the new messenger app. installing it can compromise privacy information. facebook says google is to blame. that is the latest company had eadline. >> but his feet, and might make. zz feed --ran but hi >> that is my perception. >> shouldn't we be -- shouldn't they be making enough money to fund these things? i am fascinated that they needed that money. this is a classic silicon valley problem. we know that they are really doing well in terms of actual numbers. are they making money? >> the article of the week was four or five weeks ago. it was about the telegraph. and the idea that the telegraph says we do not want to be buzz feed. th

sprint was really softbank which owns 80%, the japanese wireless company.lly the engine behind this brent t-mobile deal. if it is not going to go forward , and that is what we heard last night and again this morning with more details, and they need to come up with plan b. ceo? >> ceo ofew a company called bright star, a company that is international wireless company. he is friendly. we do not know what a strategy is going to be yet. they are a money-losing wireless company. they have said for months and months to regulators even publicly we need three competitors in the united states, not for. the government says we need for and not three. now the question will the partnership is some sort of deal or will they stand alone? >> if they are, i would save the cards are stacked against them. who ultimately is calling the shots cap go was at the justice department indicating what we said? we want for and not three, no matter how persuasive of an argument you make? deutsche telekom saying you have not come to us with quite enough yet or sprint saying if this distr

softbank saw its slowest subscriber growth. way down at the start, but we are moving to the upside alongside the rest of the asian-pacific area if you want to sell shanghai shares through hong kong's new exchange, you will need to set your alarm. to be x says shares need transferred before 7:30 a.m.. the boss says that is all to allow the exchanges to settle trains -- trades for mainland rules. they'll start beginning operating on october 13. treasury winds up today, a may ensure that another suitor has emerged. to paul allen in sydney. we were doing about this rival , then the tables? >> well bidders want to remain anonymous. ,he media has decided that tpg quoting my favorite source, those familiar with the matter. the mistry firm, let's call it that, has said there is no certainty that it will result in an offer. its proposal is conditional on a number of matters. they are offering $5.20 a share. ands not the same as kkr ronan offered last week. kkr is doing to children's. the offer at $3.2 billion. that is an improved offer

preparing to raise money for softbank. -- jack ma. yahoo! has a 20% stake. >> who owns the bigger share? >> softbank. transparent? >> she is a font of information. >> i had read up on this. there is the front page. right now have to get smarter on the geopolitics of the moment. i got up the map come a 100 88 miles from board as to beltran and then solved west toward the order.-ukrainian carrying humanitarian aid. the red cross is unsure of that. decidedly kiev unsure of that. ryan chilcote joins us from london this one in. what is on the trucks? >> i don't know what is on the trucks. the russians saved all of sugar, salt, water, power generators, 12,000 sleeping bags. we have heard some ukrainian say maybe could have weapons. i would point out if the russians wanted to sneak weapons into the ukraine mine -- one would have thought, probably not the safest place to do that. plenty of huge holes in the border that the ukrainian government itself says they do not control so i am not sure why he would want to comment on that. putin doing this so

softbank is selling almost $4 billion in bonds to help finance future investment.r they scrapped a merger with sprint and t mobile u.s. less from running a bank in japan than its global salary last year. $12.5 million. they could explain why they are selling the consumer business. a judge has thrown out a $256 b.p.. lawsuit against the judge said it was about paperwork wrippingles rather than engineering shortcuts. now let's talk fashion. luxury good makers have long valued chinese consumers for their appetite and willingness to pay for luxury. their good have become tougher to sell in china. caroline is here with details. how tough to sell are they? >> to the tune geerting discounts 30% to 40% coming from the name that was previously doing so well. opening stores in these glamorous neighborhoods of china and now we're seeing feragamo having to knock off 40% of a certain type of leather shoe. it was off by 40%. if you walked into gucci in downtown shanghai, you could pick up a shoulder bag for 30% off. christian dior is doing it. what is interesting is so. subtle w

three companies for you, start with softbank. billion for investments.comes with the merger of sprint in the u.s.. citigroup earned less than the bank of japan then it's mobile chief executive salary last year. citibank japan has made a profit of 12.9 million dollars. compared with the compensation of $14.5 million. back and explain why they're considering selling the business. $256ge has thrown out a billion lawsuit by a whistleblower, who claims the company's production was unsafe. he says it was ultimately about paperwork wrinkles than engineering shortcuts. mixed to say the least. on the week, what a week. in focus, and janet yellen's speech. or want to talk about that market, i am on twitter. ♪ >> waiting for yellen. markets are set for the fed chair's speech. minister seekign aid from terminally, as angela merkel meets poroshenko tomorrow. ash alert. a volcanic eruption threatens flights. a warm welcome to "the pulse" live from london.

and softbank?> most people would say it is a good and bad thing because it gives them a greater profit sharing within the overall financial services asset. profit sharing directly. profit sharing with all of the financial services have increased, giving it a bigger access to a larger pool of assets. that said, if they were to do an ipo, that would mean a much bigger windfall for alibaba in and of itself, but because of the restrictions on foreign ownership him it would have to do the ipo in china. there has been a big backlog in china. this is not something we would see in the near term necessarily. could be several years away. >> you used to be attacked thinker at morgan stanley. so many interesting and potentially confusing things in it comes to alibaba. it is a chinese company to start and are dealing with the chinese government. how you think investors will think about some of these issues on the roadshow? are there going to be a lot of questions? >> i think the biggest challenge alibaba faces

softbank is trying to cut costs after abandoning its plan to buy -- earlier this month. u.s.horities say they would allow -- to sell its low-end business to lenovo. billion deal will give the chinese company a bigger slice will of the -- slice of the global computing market and allow ibm to focus on areas that include the cloud. those are the top corporate stories and headlines this monday morning. i'm john dawson. maine -- the main chinese stock benchmark rose to an eight-month high last week. week was speculation that economic data would push the central bank to step in. bad news was good news? >> yeah. >> but is it good news? >> you look at different markets around the world. they tend to interpret news from the central bank differently. if you look at the rate cut, ok, good times are coming, there is more money. lookina's case, how they at these rate cuts -- 7 2, 3, 4, 5, 6, and 7 -- rate cuts since 2000 and eight. -- since 2008. it usually was a signal that the economy was not doing well. >> in the u.s. and anywhere else, rate cuts would be -- you see the opposite reacti

it does not appear that softbank had anything official on the table. >> let's back up a little bit.ad is a decent size french telecommunications company. >> but smaller than t-mobile. quick smaller than t-mobile, but offered $32 a share. door to telecom controls t-mobile. we understand they want to get out of their deal. they don't have the money to do it. they may or may not have the borrowing capacity to do it. it depends on the grace of god and a couple of banks as well. t-mobile is about to announce they are not interested. door to telecom -- deutsche telekom has already said they don't want any part of this. that they have some interesting getting money from anyone that has got it, and they knew something was coming from europe, the sort of between the lines in the conversation you had. optionssaid domestically and internationally. it is clear that they are looking for sources. they could be close to $40 per share, but we don't know exactly. >> bankers are presumably working on the structure of an offer as well as the price of an offer. readingrth noting the between the lines o

their owner, deutsche telekom says softbank's offer is better. spoke with the always outspoken c.e.o. john legere minutes before iliad's data was reported about all of the options on the table and their recent subscriber growth. >> as you know, in q 1, we announced contract freedom, it was the launch of paying early termination fees as something we'll do and that caused an aggressive spike. remember that among other things we did today, we raised our guidance for postpaid subscribers for the year now saying we will be between 3 million and 3.5 million. further evidence that we feel confident that our momentum will continue throughout the rest of the year. >> you are enabling more customers do have contracts, does that mean they are buying less expensive phones? the iphones and the samsung galaxies. and are you selling more low and mid tier phones? >> the uncarrier carrier movement is focused on solving pain points for customers. we want 100% no contract. customers love it. anytime upgrades. the whole industry has adapted. international roaming fo

the problem though is when he took over control with softbank he thought he would disrupt the industry, got rid of contracts, got rid of subsidies and now sprint is playing catch-up and will have to, but more creative ideas. they are cutting prices great for consumers but bad for sprint online. >> the only idea is cutting prices. there has been a bit of a price war going on, the only one that is in a strong position right now is verizon because there are measurable differences in quality in the network. melissa: people really hear that and believe that. microsoft trying to sit at the cool kids table yet again. considering changing name of internet explorer to reshape the image. maybe changing it to internet explorer. >> they should change their name to google chrome. melissa: it is amazing. look at the percentages, google chrome is a browser leader at 45% of the market share, internet explorer has dropped to 21%. >> i hope when they read the story or here this, this is a kind of thing not trying to promote. trying to get microsoft back to great products. new brands are not going to get

could hurt momentum on stock and people people may not want to invest it and turn and invest in softbanks alternative. liz: mutual fund out there that mimic the s&p and buy every name in the s&p can not then buy alibaba. >> precisely. that is one of the main problems. the second other problem you have is there needs to be a lot of capital raised and alibaba is still being investigated by lots of potential investors. if they need to raise a certain amount of money beyond what, say, they want to raise 20 billiondollars and they need interest for times than that that means some institutional investors have to put in $1 billion each according to "wall street journal." that is not money people have lying around or institutional investors have lying around. david: what about financial transparency? a lot of people in the chinese government are getting jobs in alibaba and very command positions in alibaba. is there concern that perhaps they may have the same lack of transparency that the chinese government has? >> the biggest risk factor is what the chinese government could do to the e-commerce

softbank. [laughter] they are buying everything else.believe there are other options. >> matt campbell, thank you. other company news. intercontinental hotels saw profits. we caught up with the ceo. we talk to him about the impact of the standoff between the west and russia. >> there are situations around the world, whether political or social. have to protect our guests and employees in those markets. none of them is that significant in the scare of our business. the hotel in businesses take a very long-term view. we see markets like russia, like china, like the middle east, where there are a lot of long-term opportunities. the majorityhat, of our profits come from the u.s. and europe. we take a long-term view. short be buffeted by the term. we are concerned about that. the momentum of the business seems strong over the next few years. >> that was the ceo of intercontinental hotels. his first interview of the day. west africa's fight against ebola is threatening to overshadow a big summit in washington this week. hans nichols joins us l

some would say when you look at the possible tax savings of an alibaba or a softbank were to buy yahoo's worth even far less than zero at the current price. so that reflects on marissa, certainly. >> and eric, this is jon. when you go back in your article this morning and you go through all the stock sales that she's done on the program, on her selling program and you suggest that maybe she should be buying, would that alleviate your concerns? and what level would you like to see her buying stock at in the company now? >> well, listen. you know, she's getting an enormous compensation package. and she's not the first ceo to get one. she won't be the last. if she sticks around for another two years and the stock goes nowhere, she'll pocket $265 million for her five years of work according to my estimates due to her comp plan. so she has money to buy stock. how much should she buy? you know, recently aol stock got hit on the last earnings call, and it dropped from the 40s to the low 30s. and tim armstrong personally went into the market and bought $1 million worth of stock. i think mariss

he did the same thing with softbank in japan.m being a small candidate to vying with the big guys. partnership here as a very clear one, i do not think any decisions are going to be made in a vacuum. >> instead of one or two players in telecoms, you have three and four. are we going to see a switc h? l, theprepaid reatai switch has occurred. as of june, t-mobile has more prepaid retail subscribers than sprint, doing business under boost and virgin mobile. ohn legere made a statement saying he plans on overtaking sprint and postpaid retail as well, that is a bigger challenge. over the past year, t-mobile has a raised 4 million of the gap, the ability to raise another 5 is not as big as you think. >> what is going to be the killer for t-mobile? >> killer? >> in terms of winning, how is legere going to win. t-mobile from a no-name, nothing carrier to a cool carrier. they have gone from nothing to hot pink, which is their corporate color. say killer, doesn't have to be a killer iphone plan? >> it is all about branding. he is brillian

and softbank plans to sell bonds for the first time.after the japanese wireless carrier up and talks to merge sprint with -- abandoned the talks to merge sprint with t-mobile. companythis morning's news from the files of "bloomberg west." >> you remembered nanotechnology. >> small stuff >>. it was all the rage -- 10 to the minus nine a few years back. now it is big data. yes! vivek ranadive, founder and chief executive officer of tibco . he knows that your llb needs saaf. that enough jargon for you? what is needed is fast data, and it is something that bloomberg lives every single day allsop you need those two seconds beforehand versus the big data after the fact. >> many of the 20th century companies would have you believe that big data equals big database. those companies tell you that you have lost the customer or that you have a power outage. with fast data, we prevent the customer from walking out the door. we want to make the customer the offer before he leaves. >> if i am on delta airlines and you represent delta airlines is one

in may said wen cannot compete with softbank on t-mobile. we don't have the money for it.a $32 billion company. compete, but maybe he can and does not want to reveal strategy. >> we have to leave it there. out sherman and cory johnson -- alex sherman and cory johnson. >> when we come back, republican versus republican on capitol hill, fighting about what to do about immigration. ♪ >> we are approaching 26 minutes past the hour. time for "on the markets." you had better have your eye on the broad market. we are down .25% on the s&p. the dow has given up an additional .3%. there is the nasdaq as well. i want to look at go pro. fascinating story. sales are on fire, up 30% year over year, exceeding analyst estimates. here is the problem. it is losing a lot of money. about $20 million in the last quarter. shares are priced high. as a result, they have dropped 12%. to be a mediaying company versus just a sales company. >> a one-day drop. but since the ipo, up 76%. still a rich reward for those who got in at the right time. ames used to go better with coke. what now? ♪ withis is

charlie said we would like to buy t-mobile, but there is no way we can compete with the finance of softbankt going to get into a bidding war with my faÇade. that already happened once when buy it eventually. charlie may be learned his lesson there and said we are not going to do that again there. now with sprint out of the picture, dish is the largest -- is the mostgoal -- logical company to buy it. probably for sense dish to own at least the majority of the control of t-mobile. there is more synergy, both of these countries being in the same country. and dish has a grand plan for mobile. if you look at charlie ergen, he thinks the future of his company is in mobile distribution. chances are he will want a lot of control on how the global network those forward. >> but he seemed to say also that nothing was going to happen until after november, right? >> correct, after the spectrum option. exactly. options off the dish,um, at&t, verizon, sprint -- they are all likely to participate in some fashion because they all need more spectrum going forward. that is how you keep your network fast. the

>> softbank and mobile. is it that hard to make popular items, will we see massive consolidation?ynga has the same issue. >> what they started doing once their farm world started declining, they went out and bought the words with friends game. they will spend hundreds of millions of dollars acquiring a studio. so, i think the problem with these companies is to turn out hits one after another, >> it seems like candy crush is blaming the new kim kardashian game for distracting users. crush, i would never play a kardashian game. >> the problem is that they have talked about a greater competition. that there was the step down in the usage of mobile games. i don't know people are watching a lot more soccer. i think that gaming is fickle. a third of cap usage is games. >> i talked myself back from the wall from candy crush because it addicting. i have to talk myself off of the ledge. >> is the comparison, you drew a comparison to movie studios. the scope back what you're saying about barriers to entry. the bigmore like for established console gamers like takeision, for example, or two.

sprint is controlled by japan's softbank, and they made it clear his job will be to attract subscribersst subscribers every year since 2007. the company is the third largest carrier in the u.s.. big, mcdonald's under fire again, this time for the way it handles its franchisees. the restaurants. a closer look at how they conduct is this. plus, credit default swaps played a huge part in the great recession. so, why are banks bringing them back again? details are next. ♪ ♪ >> well, onto another big story, mcdonald's -- the face of the minimum wage debate is the center of a new debate over its relationship with franchise owners. labour agency recently declared the fast food giant should be considered a joint employer with its franchisees, a ruling that has many franchise groups up in arms, but one franchise group feels the family, speaking out against the donald's, opposing the legislation before the california assembly that would give franchise owners more rights and mcdonald's even less control over how they do their business. a bloomberg view economist, the author of the book "upside is

. >> the question i have for you, if nothing else, does it force sprint's hand perhaps and softbank to act more quickly? >> i think it does in a sense. not that they haven't been focused on getting this done. for six months, you were dealing with a regulatory impediments potentially and they were trying to smooth the runway in washington, perhaps not successfully. you've been dealing with valuation only the last to months. but they have to get there. the more time you go without a deal, you raise the questions, maybe someone is out there to do a deal. >> you alluded to the xavier gentleman of gilead -- >> multibillionaire, the steve jobs of france, who i was not familiar with. >> when was the last time we talked about iliad? >> i know. >>> coming up, jason if you rememberen jason furman is going to join us. but first, procter & gamble bouncing back after a few rough months. but some are still disappointed with the company's performance. all of those details on that story. let's take another look at the futures which have been all over the place this morning. there you go. dow jones wit

this was dumped from the s&p after being acquired by softbank of japan.me removed from the s&p 500 on december 2013, another retail name, jcpenney, it is up. bye-bye to jc there. there you go, kelly, some new kids and some that have been knocked off. >> susan, thank you for now. with these markets with record highs, is it still possible to find value in this market? joining me in an cnbc exclusive with some best stock picks is mario gabelli. welcome. >> great to be here on a particularly important day. >> that's exactly it. what do you make of s&p here, the 2,000 level, closing for the first time? >> well, you know, i've been here since my first visit to the floor is when i started in 1967 across the street, so that was, lucky to be 1,000 on the dow. and it's just a number. but it's supported by fundamentals. earnings, corporations keeping their costs down. the multiple high interest rate psychology, but we will have, kelly, a lot of volatility in the world, and that's a terrific opportunity. >> what about when people say this is all the fed? >> well, the

shareholders, which is to lobby for either ali baba or softbank to buy this company, because one of thegest discounts embedded in yahoo!'s stock price today is an assumption by wall street that when yahoo! sells these stakes in these companies, these asian companies, they're going to have to pay a huge tax bill. there would be tremendous tax savings if one of those two companies bought yahoo and returned a lot of the cash back to shareholders. >> eric, i will say, all your points are very valid, but if you look at the stock price, i mean, it's all about results. i mean, you have to look at the bottom line. that's the report card for a ceo. and you look at the stock chart going back two years, we just showed it's up 200% in the time marissa mayer's been ceo of this company, so what's the complaint here? >> well, to that, i say yahoo's management and board really needs to send a thank-you bouquet to alibaba. two years ago it was valued at a $20 billion company. yahoo! has a 23% stake in a company that most people think will be worth $300 billion. when you subtract out the value of the ali