before then, solarcity might have been able to borrow money. happened, it can't access any kind of funds. joe: what do you make about the governance question? immediately when the deal was announced, people talked about musk's relationship with both companies, from your perspective, does not raise further red flags? -- does that raise further red flags? craig: yes, it does. that is why it has led me to question what the real justification is, whether this is a real business combination, or whether this is essentially in elon musk's self interest. there have been governance questions about tesla and musk and solarcity for a long time. that is one of the reasons why the stock price reactions suggest that the likelihood of a deal going through is relatively small. nonetheless, tesla's stock has stayed down. i think that is because this is raised serious questions about the company. alix: greg pirrong from the university of houston. alixscarlet: coming up, what you need to know to gear up for for tomorrow's trading day. ♪ scarlet: you have japanese

welcome to the "halftime report" i'm scott wapner, and the trade is the solarcity shocker, and what one famed hedge fund manager is saying about it. it is a "halftime" exclusive. with us, e stephanie link, and josh brown, and jon najarian, and it is the talk of the day. elon musk offering to buy solarcity in a deal that is drawing reaction today from the famed short seller jim chanos who told me moments ago in the exclusive statement, and i quote that the brazen tesla bailout of solarcity is a shameful example of the corporate gofr nance at its worst. this is a company headed towards financial distress and burning hundreds of millions of stress every quarter, and now a burden that the tesla shareholders will have to e bear. if you don't believe me, can consider this, the combined market drop in the value of both companies is more than the equity value of the deal itself which means that tesla shareholders believe that the t solarcity shares were worthless. finally, it is hard for me to believe that this deal was not being contemplated when tesla and mr. musk, himself, sold shares just a

tesla is offered to buy solarcity in a deal worth $2.8 billion.arcity is a solar energy system installer. the company works with homes and businesses. gabe slate shows us tesla big plans for the future. and talks to an auto expert who says this move may backfire. >> reporter: tesla and solarcity not just silicon valley neighbors. they might help get the company off the ground and sit on solarcity's board. the ceo and cofounder of solarcity is the cousin. elon says the merger is a no- brainer. it will help tesla deliver full solar power solutions to people. change the power in their house or business to all solar and power the tesla car. >> you walk into the tesla store and you can say, i would like a great solar solution. done. >> reporter: this will usher in a new era for tesla. it will not just be an automotive company, it will be a bigger sustainable energy company. >> sustainable energy problem needs, you have the storage and transport. those are the 3 ingredients. >> it's brilliant and could be a nightmare. >> reporter: one auto expert says i

clearly the cost of capital will be improved for solarcity.tors, jim and carl, wondering what exactly is the real strategy behind this other than bringing in a company that clearly is suffering right now and offering it some sort of a life preserver if you will. >> right. but remember before we get too caught up in the conflicts, i'm sure musk say listen i'm losing a lot more on my tesla than i am solarcity. obviously he's a person who's so rich and he did not buy on that $215 offering where it certainly doesn't seem like a no-brainer to those people. those people if they didn't flip it when it ran up to 2.23 feel very aggrieved. is it a great idea to put this thing together? there are people who think anything elon musk does is brilliant. i come back and say the car's really good. and if you really like tesla, you should buy the car. if you want a solar panel on your house, solarcity gives you a good deal. but what that has to do with buying the stocks, i mean, it's a no-brainer, you don't buy the stocks. >> i know. listen, on the call he wou

let's bring someone who owns solarcity suffering a little bit. ross gerber. 25,000 shares of tesla. how much are you down in the last 24 hours since the news was broken? >> 25,000 shares, times 20 points, right? so it is a lot of money to lose in a day and you know our biggest concern is less about the short-term fluctuation of the stock. more than the long-term correction of our company is changing now, i'm not happy wit. liz: look you had a $5 million stake, 5.5 million. today you're down half a million. i'm assuming you don't like the deal. why? should anybody like it? tesla has been momentum name. looks trying to put a silver lining on this story. >> well you know, i think the deal makes a lot of ends and no-brainer for elon. when you're bailing out your cousin business, that is not what tesla shareholders are in the business of. we're in the business of making cars and batteries. that is what we need to focus. tesla has enough leverage i'm a believer in elon. i think he has gone too far. i don't think he gets the math on solarcity is disasterous. it is a

a lot of it may have to do with the price of solarcity, frankly how solarcity has suffered over the lastouple of years. to me, it's not a no-brainer. >> and i wouldn't question elon musk's thoughts on this, strategies. if you're an investor is this not necessarily a connected business. if you're an investor, a believer in tesla, that doesn't mean you're a believer in solarcity. >> i'd be mad if i were a tesla shareholder. >> yeah, i don't understand that story and i don't understand this. >> are you sure, solar has its own issue. better man it through some stuff. solar's got its own issues, it's not like we've got the whole club business figured out now. that's like adding two pretty tough -- they're going to have to manage through a lot in the future. >> throw that challenge on top of tesla. >>> also, softhanks that named ken miyaichi ahead of the operations company. it became clear that the ceo planned to deep his job for another five to ten years. now, aroara had faced a bit of criticism over what some consider lackluster investments. he did make money. $208 million in the past two ye

solarcity, for nearly $3 billion. the wednesday, jun

and elon musk is offering to buy his own solarcity and is it a buyout? a sell oout? we will discuss what it means for both companies. and you will hear what jim chanos has to say about that deal. remember, he is short both companies, and you will hear from the reaction from mr. chanos exclusively on the "halftime report." and plus, mcdonald's is getting a downgrade today, and as one firm said buy yum instead, because it is the call of the day. a lot is happening at the last minute. kayla, we will see you shortly. >> all right. sounds good, scott. see you then. in the meantime, twitter's allan bain has gotten the chief operating officer title here since we spoke to him here last years, but much of the to-do list is the same, keep creative to grow revenue and help jack dorsey to right the ship. when we sat down this morning in cannes, we talked about that and the company's video initiatives, and what is in the pipeline. take a listen. >> we made a series of announcements this week around video, and we are excited about video, because video is great for people on twitte

they are looking at the debt load of solarcity. and both companies, the biggest shareholder is elon musk and he is chairman of both of these companies. his first cousin is ceo at solarcity. investors are not too pleased about this. take a look at the bloomberg here. we have both of these companies that have relatively high debt loads. tesla is trying to move on to the next phase of production. there have been questions about its ability to meet production targets. tesla's cash flow is the white car and solarcity is the blue bar. and here's the net debt to shareholder equity. for each of these companies it is more than 150%. heavily indebted. some analysts have talked about this acquisition, if it is approved, it's going to push byk tesla's profitability perhaps even as much as a couple of years. mark: we are 90 minutes away from the end of the session. final day of official campaigning before the big one, the u.k. referendum on eu membership tomorrow. the feeling is the markets and the bookmakers think there will be a remain victor

solarcity, for nearly $3 billion. the wednesday, june 22nd, 2016.worldwide exchange" from london begins right now. ♪ baby please don't go if i make up tomorrow ♪ >>> good morning, welcome to a very special presentation of "worldwide exchange" on cnbc, live from london, i'm sara eisen. >> i'm wilfred frost. welcome to london glp your turn. >> we are indeed, just across the river thames from the houses of parliament in less than 24 hours. an historic vote will begin to determine the uk's membership in the european union. we've been seeing swings in sentiment and in the polls. here is the latest "the financial times" poll of polls gives the leave camp 45%. 11% remain undecided. >> we've got this thing covered for you from start to finish. our guests for the hour include financial times economic times martin wolf. and mark astley. jim mellone, and jacob rees-moog. >> let's check in on the globe markets this morning. the u.s. futures right now, they are flat. if we look at the ten-year note, the yield is 1.687%. the euro gaining a little steam but about

but solarcity has been a disaster. just before the announcement goldman said it was the worst solar play in the country. we'll have more for you on this update. solarcity, elon musk buying his cousin's company. donald trump need the christian vote. charles: donald trump meeting privately with evangelical leaders. just a short time ago the trump campaign announced there was a tense moment when evangelical leader debra fykes endorsed hillary clinton. she said trump's proposals are unchristian and un-american. give us an idea what the tone was like. >> i have been doing a lot of religious freedoms work. i have never seen this large of a group of leaders come together. then for a presidential candidate to actually come together to meet with them, i think there is a real conversation. none of these people in the last -- they were supporting different candidate. and they appreciate, there was a certain humility in what he did and how he reacted. people saying here's what's important to us and want to go hear how he reacted.

solarcity shares are up on this news, tesla down about 8%.verall the stock market is moving slightly higher. could see a bit of more caution as we head into thursday's "brexit" vote. it's 50/50 on whether or not the united kingdom will leave the european union at this point. let's go to the big board and see how we're doing so far. we have been working with a two- day winning streak with the dow up by about 40 points. nasdaq up 2. the s&p is up by 3 points. kenny and michelle, back to you. >> thank you, jason brooks from kcbs radio. >>> time now 6:46. let's check traffic and weather. how's the traffic? >> not too bad. we have had a few accidents here and there but most of them got out of lanes quickly. it's just the usual slowing as you have a regular wednesday commute at the bay bridge where you can see the metering lights are on. so if you use the bay bridge on a regular basis, this is nothing new to you. you have a backup to the maze with approaches starting to see slow conditions there off the eastshore freeway. westbound 580. 880 right n

it is too hard. >> and space x, has a lot of the solarcity bonds. i know that there are questions out there from several invest investors -- >> and valid. >> and we had an analyst on yesterday from oppenheimer who said that the activity in the bond market suggests that solarcity has an issue with the debt. >> 100%. >> so if you are looking down the line and you say, who owns the debt, and space x owns a decent size of the debt, and i don't have the number because it is on the top of my head, but it is out there, and public knowledge that they have debt from the company, and it is some -- >> well, i did some work on it before, and it is is stunk. >> i am sorry that we are always cutting you off. sorry. >> it happens. >> it is a tease to keep people coming back to watch. >> we will try to get more on that before we come back, for real. >>> and coming up, john rogers from aerial is going to break down the group and what it could mean for the sector next. >>> the "halftime report" with scott wapner is the place for moving interviews, real money, real de

gains of solarcity up 1.7%.the weekend there was a report that two more solarcity board members would recuse themselves from voting on the deal because of ties to the tesla board, which means majority of the solarcity board will not be voting on that deal. we are seeing gains today despite the market downturn, bri. >> and the market downturn mitigated just a bit. i should note there is one dow stock higher today, guys. apparently the world has woken up with the idea that even if there's a brexit and you skin your knee, you're still going to need a band-aid. johnson and johnson is higher. apparently the brexit will not eliminate the need for pharmacies or bandages. but will the british exit from the eu, if it happens, actually help u.s. real estate? diana olick looking at that angle. diana. >> well, brian, it's the safety play and the yield play, plain and simple. real estate investment trust, offer both dividends and earnings growth so the lower bond yields go the better the buy in for the reits. take a look at

solarcity, and then, by the way, here is our tesla s or our model 3 car, and then go online and not sell store. alix: it was exciting. jamie butters, thank you, and tune into betty:'s new show. she will be joined by angie lau. you can watch on bloomberg wherever you are, mid net in london, 7:00 p.m. in new york. she is everywhere you want to be. scarlet: are market roundup is next. you have got the dow and the s&p lower. trading in a pretty narrow range. this is "bloomberg markets." ♪ ♪ alix: this is "bloomberg markets." i am alix steel. scarlet: and i'm scarlet fu. joining us is joe weisenthal. alix: there is the pound and the s&p mini futures. thisa look at this, and kind of describes what happens today. around 11:30, we got a new poll was shows that one camp getting a little bit of steam, and you saw the pound index fall. that is that white line, and s is the s&p mini other, and then they moved in tandem at the close, and now you are cbs and p --you are seeing the s&p minis. you should not have risk assets move with the pound. t: what we see being picked up, and it is fairly low volum

elon musk owns the largest they can both tesla and solarcity.kswagen's chief executive has apologized again for the emissions scandal. agm.de the comments at the told shareholders the whole company is working together to manage the fallout. is facing the greatest challenge and its history with the diesel scandal. we have disappointed stockholders and lost the trust, lost customers, business partners, and the public. the supervisory board, the management, and staff are all working to overcome this crisis. the first was shareholder meeting since the scandal came to light in september. rishaad: the head of japan stock exchange with a brexit warning as well. we will look at the knock on effect in the asia-pacific. referendum aside, discussing what the other long-term risks are to asia markets. that's right here on "trending business". ♪ lindsay traders in asia will be at their desks well before dawn as the u.k. decides its future. -- currency traders in asia will be at their desk well before dawn is the u.k. decides its future. which way is it going

. >>> tesla is getting burned in the deal for solarcity. many investors view it as a bailout that could distract tesla from making cars. elon musk is both the ceo of tesla and the chairman of solarcity. tesla's stock was down today as much as 12%. >>> new at 6:00 the port of oakland could lose big over a massive expansion to the panama canal. traditionally large ships carrying cargo from asia would have to go to west coast ports. the cargo would then be transported by train across the country. now the supersized ships will be able to travel through the wider panama canal all the way to the east coast bypassing the west coast ports. as kpix 5's cate caugiran reports, this could have a big impact on jobs here in the bay area. cate. >> reporter: veronica, i asked the port of oakland when the panama canal expansion opens in a few days, will this affect container ships like the one behind me from coming in and out of the bay? the port of oakland a gateway to major trade with asia ships thousands of containers to and from the far east every month

. >> cbs is tesla and these guys are solarcity.bs ain't -- cbs ain't going to play solarcity. >> nice analog, jim. >> all starts at 9:00 eastern. >> announcer: lightning round is sponsored by td ameritrade. >> it is time. it is time for the lightning round. i take your calls -- name of the stock ahead of time. i tell you whether to buy or sell. when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? time for the lightning round. luke in georgia, luke. >> caller: hey, jim, this is luke in atlanta, georgia, sweating it out down here. my stock is sky west. skwy. >> one of the few airlines are doing very well. i want you to stay in it. jose in florida. jose. >> caller: jim cramer -- >> jose. what's up? >> caller: i'm calming you from miami. home of the miami dolphins. i was wondering what's your opinion of dave & busters -- >> dave & busters had a remarkable quarter. i'm surprised that the stock isn't up more. thank you very much. going to dave in pennsylvania. dave. dave? >> caller: yes.

-- shares of the electric carmaker fell as much as 14% after musk opposed the tesla takeover of solarcityg business flash. this is the big uproar on social media last night as i is elonsla -- maybe it buys elon. tesla company news -- maybe you 197, 198.ce here of call it almost gossip on tesla. good morning. francine: good morning, tom. it is nice to have you in london. come onant to point to tesla, that you can choose your relatives, and they talk about the awkward family reunion which is solarcity and tesla. do you like this? tom: it is very good. why don't you bring in our next guest? francine: let's talk about brexit. tomorrow is the all-important referendum day. let's talk about death let's talk with the former bp ceo, -- former bp abou with the ceo, lord browne. side, peace in europe? i had a very different family after the war, my mother having survived auschwitz. it is exactly the sort of union we need in europe -- not political totally, but enough to make sure that unnecessary nationalism is dampened. damaging nationalism is dampened throughout europe. tom: has prime minister cam

. >>> electric carmaker tesla wants to buy solarcity. the stock deal would be worth as much as $2.8 billion. elon musk is the chairman and biggest share of holder of both companies and combining them is a no-brainer, he says, since the same people interested in electric autos are interested in solaring energy. >>> if you crave girl scouts cook cookies, you're in luck as long as you don't mind a little baking. >> they're offering baking micks that they say taste like the original cookies. the available flavors include caramel and coconut along with thin mints. >> those mixes cost about $3.30 each which is less expensive than a traditional box of girl scout cookies. >> a bargain, as well. >>> still ahead, that rather distinctive truck and the arsenal of weapons police found inside. >>> and then they did do well but it's back to the beginning for the u.s. men's soccer team after quite a collapse overnight. be the you who doesn't cover your moderate to severe plaque psoriasis. be the you who shows up in that dress. who hugs a friend. who is

emily: tesla offering to buy solarcity through elon musk's company. corey breaking it down.here is always spacex. why not make it three? coming up, a supersized deal, another one. a chinese internet company is shelling out for tencent. building up for the clash of clans. coming up. ♪ ♪ emily: china's largest internet company sets its eyes on the west. tencent is looking at the maker of mobile hits. tencent already dominates the scene in china, but this could give the company serious exposure abroad. the other half of the story is who tencent is buying supercell from. in a surprise move, the japanese internet conglomerate announced that its president would be stepping down. joining me for more context is our editor for asia coverage and the ceo of a mobile game corporation. so, what really happened? is son said he was heir apparent to the company, and he, interestingly, has been cracking a few jokes on twitter. what is the next big investment, are you going to just roam the world? he has to plan, he tweets. >> it certainly was a surprise when he was recruited by google two ye

tesla shares fell sharply after the company offered to buy solarcity.it a no-brainer to create a one-stop shop for clean energy. >>> apple won't do iphone upgrades every two years extending that to about three years. so that means a an iphone 7 will hit the market next year not in the fall. and twitter's latest move to take on facebook and snapchat longer videos. the new twitter video length is 140 seconds an increase of about 30 seconds. kenny? >> all right. so jill, for all those brides to be, if they want to save money on their wedding days, we hear they shouldn't be buying a dress. why not? >> reporter: because a study of thousands of ecommerce sites nordstrom.com and others found that retailers charge about four times as much for dresses that are advertised as wedding dresses compared to dresses in a similar design and fabric that's not called wedding dresses. the so-called "i do" premium, they call it bridesmaids dresses were twice as more expensive. so you have to just ask for a white dress. right? >> good advice. thank you, jill wagner of cbsmon

solarcity having a good day. the stock up about 6% over the past month -- >> couple of days. >> yeah, couple days. tough year for -- >> all the solar stocks. >> yeah, last couple of days may have done okay. third stock, dick's sporting goods. goldman sachs reiterating their buy, but now also adding it to its conviction buy list. got a $53 target, so they see about 20% upside. they see dick's the best position to benefit for the closure of sports authority. that's its biggest competitor. get this, in the analysts note they note that 63% of sports authority stores were within ten miles of a dick's. so they were basically hurting each other. now sports authority is going away and thus goldman sees sharp acceleration in dick's sporting goods earnings growth. >> and a similar analysis out today, survey of 1,200 consumers recently bought sporting goods and they found that the people who used to shop at sports authority and this place called sports shall lay which also is going under, 53% of those consumers said they we

>> oh certainly, but you have to look at companies like solarcity which is renewable energy solar stock're based on, whole theory is based on energy prices going up because of renewable energy. that is what they need to replace with coal. epa regulations that could be bounced would be bad for them. david: tom, great to see you. thank you very much. melissa? melissa: it is the first day of summer around parts of california, nevada and arizona have been feeling the heat. record-breaking temperatures may hit 121 degrees in some spots. at least four people have died in arizona. where temperatures are at or above 115 degrees. the heat making it very difficult for firefighters to battle what are now seven teen fires across 100-acres throughout the southwest, wow. david: costing a lot of money. trump getting criticism for considering profiling but mayor giuliani says there is a right way to do it. >> of course you profile. that is what policing is all about. here is where it is wrong, when you do it based on race, religion, ethnicity, sexual orientation, just for that reason because you don't

. >> the guy owns 22.2 million shares of solarcity. i would say he is little piece after conflict there. i know the company really well. in fact i've been looking at solar on my house. in five states solar makes sense. in the other remaining states, not so much. business model is a little quirky. they're spending a lot of money. david: right. >> i don't think it is good for tesla. there is mix of batteries and energy stores but right now i don't see the answer. david: would tesla exist without federal and state subsidies? >> i don't think so. i know that will be kind of inflammatory but at the end of the day, earlier on they really needed those subsidies bad. david: thanks, guys. melissa: fedex taking a tumble. the stock having its worst day in five months after providing a cautious outlook. meanwhile, this part caught my attention. company ceo warning to both donald trump and hillary clinton are quote, worrisome for business. david: hmmm. melissa: jared, let me start with you on this one. he said, i would say we have a hard time putti

. >> we are short tesla and solarcity. >> and real money. >> is it not business that hurt business, butt is the technology that hurt businesses. >> and this is going down as the most profitable cti. >> i always get to tweet about the show, but now i'm on the show! this is the greatest moment of my life. >> the "halftime report" noon eastern. >>> i'm michelle caruso-cabrera and this is what is coming up op "p "power lunch" in 15 minutes. we have some investment ideas for you out of the world -- literally, he is talking money and mars ahead. >> and brian sullivan is in vienna with the late oefs the fallout of the opec meeting. >>> and why donald trump could have a giant tech problem on his hand. we will kis cuss that and ahead, we will go back to you, scott. >> thank you, michelle. and now, ahead of the jobs report tomorrow, jack ku deangelis is there at the nymex. >> yes, that is right, gold is staying low around the 1214 level, and the traders are cautious, because we are not 100% sure what we will get tomorrow. bill, what is the outlook going to be for gold after the jobs report? >> we

elon musk said a solarcity purchase is a no-brainer. maybe not so much? what do you make of it?eur but i think it needs to be stressed neither solar nor electric cars can stand on their own. there is some degree of creation of government subsidies. i don't want to touch the stock. you don't know what future congress will do or president about these subsidies. connell: fair enough. the second one in our biz blitz is facebook. the story on facebook they have signed a deal or number of deals with 140 media companies or thereabouts and celebrities for their new feature, facebook live. what do you think? does that make facebook a more attractive investment, this idea of facebook live? >>, absolutely to some degree i think it is pricedded. increasing americans and people around the world start with facebook. they're on it all day. they end it with facebook. only makes sense they should come up with ways to keep eyeballs on even more. this is buy to me. connell: negative publicity for facebook live in recent days idea of getting celebrities behind it. maybe that helps out. we call it b

i also think that, you know, solarcity does lead the market share.have just introduced a loan product. it's no the just lease anymore which i think it was one of the biggest staircases going forward is the mix and consumers preference was shifting to loan. >> so it's a finance company. it's a finance company. >> it's an installation company as well. >> yes. >> it's sort of like signet which is a finance company that sells jewelry. same sort of thing. herb and ben, good discussion. we can take this forever. we cannot due to the vagueries of time and the brexit vote in 12 hours. ben and herb, we'll see new bate. thank you. >>> all right. let's switch gears. can you -- if you're on the radio, you have no chance f you're watching the toll vision. can you spot the detail in this photo that proves mark zuckerberg is thinking about his -- leave it back up. >> i'm looking. i couldn't find it. >> is he serious about thinking about his privacy? we gave await answer. the answer for real in two minutes. how will you keep up with the new demands of today's digita

i'm not doing a screen on tesla and solarcity because those are the ones that are going to double down. >> down little less today. >> that's a little bullish for me. that's bullish. being too aggressive on buying tesla given the hoopla about that. don't want to emphasize tesla too much because it's an aberration. but i'm looking at companies that do a lot of business in europe and is this the level i want to commit to granger? >> i don't know how you can commit to anything day one, hour five or whatever it is where we are. >> because we've had some reversals. >> yeah. >> what if it's up today? that would be too much, right? >> s&p began the week we're now down 12 points on the week. >> that's it? people want to be -- money wants to be here so badly. maybe money should take a breather. you know, money does sleep. >> it does? >> it can. >> despite what oliver stone -- session low on the dow down 538. you see we've erased quite a bit of that. let's get to bob pisani on the floor. >> the important thing not a bad day but we are well off of the lows and the open was extremely orderly. this