alix: the intel deal wasn't the only one of the pipeline. a $2 billion agreement in the most prolific oil field in the u.s.. scarlet: lindsey graham joins a crowded republican presidential field. he has to to take a centrist approach to winning the white house. scarlet: good afternoon. i'm scarlet fu here with alex steele. happy june. you are looking at the dow jones up by 83 point. the s&p up by 10 points. we had the mega intel and altera deal and if you look at the deals -- 1.5 trillion dollars, 25% year on year and $500 billion of deals are still in the works. by some growth is what it comes down to because they are not eating that topline revenue on their own. let's look at treasuries -- prices are lower enemies higher yields. higher-- that means yields. that translates into the dollar, looking at a 12 year a yen, but the dollar index continues to grind higher. you get better economic data -- perhaps when do we see a rate hike? working its way out in the currency and treasury markets. scarlet: a top executive at disney is stepping down.

cory johnson is alive with the intel ceo right now. the ceo of intel joins me now.rian, a huge deal. why do this deal now? why not a year ago or a year from now? what really drove this timing was actually our customers. our customers have been asking for products that combine an cpu in areasth our like the data center driving .ssisted cars our customers really have been driving the need for this and in order to get them to market in a timely way, we needed to do this now. cory: basically the notion of can drive chips fantastic performance. is in power an issue when you are talking about this internet of things? powers may be a bigger deal there than it is in the data center, yes? brian: powers are an issue in almost every product we build now. you have to take a look at the total system power. what happens when you put the size to the workload and the right size of processors -- in iot, you will use an atom processor. is that total system -- if that system power ends up being decreased, then either putting that workload out into the this ornd storage and fpgadisc or

still coming up, the intel ceo fresh off of a merger monday. have him live. ♪ alix: welcome back to the bloomberg market day. of our big stories of the day, intel buying altera for nearly $70 million on the acquisition of broadcom, the largest ever in the semiconductor space. cory johnson is live with intel 's ceo right now. i will send it over to you. brian, huge deal. biggest deal in the history of intel in terms of acquisitions. why do this deal now? why not a year ago or a year from now? brian: what really drove this timing was actually our customers. our customers have been asking for products that combine a programmable device along with our cpu in areas like the data .enter, driving assisted cars so our customers have been driving a need for this. in order to get them to market in a timely way, we needed to do this acquisition. cory: so basically the notion of the altera chips next to an intel chip can drive fantastic performance. isn't power of issue when you are talking about the internet of things uses, or automobile usage? power may

i don't think broadcom had an impact on the intel talks. those were going on months ago before broadcom was ever in the public consciousness. betty: you said you think intel and broadcom should have gotten together. chris: yes. i thought it would have been better than altera for many reasons, including the foundry strategy. they would have had more through broadcom as opposed to all tara -- . altera. of intelay the chances coming over the top are low. pimm: if you put together has this chip combination concept and now you've got intel and altera, the same thing, what other companies are out there that could be added to the mix if you are we've got to combine our chipmaking? integration takes place in the industry almost every day. some combinations i can think of in the future, microcontrollers, these are a must like tiny cpus. they would be useful in the iot space. the internet of everything. pimm: who is the leader there? chris: quite a few. microchip is one. texas instrument. a company that should be ripe for a takeover. you might see som

how alarming is the intel? how much chatter is there? >> it's concerning. there's a great deal of chatter. a high volume, if you will. the joint intelligence bulletin was issued to state and locals. the concern is quite frankly the confluence of these events, isis spokesman calling for jihad during ramadan which is happening right now. you have the one-year anniversary of the caliphate or islamic state and now we have the fourth of july coming up which is one of the holidays we celebrate that they like to target this sort of thing and these anniversaries. i think given the confluence of events, we're being on the cautious side here to warn the public to remain vigilant to enjoy the fourth of july parades, but remain vigilant

are you going to be hiring at the same time? is intel'sce going to be smaller or bigger in the u.s. net altera, a year from now? >> well, let's see, net altera. let's start kind of just to answer the broader question about hiring. so as lisa said, you go into these problems with comments of there's not a pipeline, there's not enough diverse candidates. we've more than doubled the number of diverse candidates we've hired this year. we're at 40% of the new hires at intel in the u.s. have been diversity. women or underrepresented minorities. 40% is not, no pipeline. that's an example of good quality candidates out there you just got to have a diverse team looking at them. and looking in the right places. we've forecasted for this year, that we would be relatively flat. so we're doing head-count moves and all that. in general we run four to 5% attrition, so that's thousands of jobs we're talking about. altera, we do have some synergies, altera's head counts, it will be less over time than what altera is stand-alone. but altera will be a net ad

clearly you are going to have to give us an additional briefing and the intel committee staff exactly how you did this because sigh tech is relating what they did and it's compelling and quite frankly what you say sounds highly suspicious, that you brought them in and tricked them to see if they could discover it, something you already discovered it, and why would you need them

alix: this is the bloomberg market day. inrlet: intel-- the next hour, the ceo will tell us why they are making the move. alix: the intel deal wasn't the only one of the pipeline. a $2 billion agreement in the most prolific oil field in the u.s.. scarlet: lindsey graham joins a crowded republican presidential field. he has to to take a centrist approach to winning the white house. scarlet: good afternoon. i'm scarlet fu here with alex steele. happy june. you are looking at the dow jones up by 83 point. the s&p up by 10 points. we had the mega intel and altera deal and if you look at the deals -- 1.5 trillion dollars, 25% year on year and $500 billion of

urgency of national security going through the fisa court that those records would be available to the intel committee to trace the telephone calls of the terrorist. that would be my recommendation, and i see the chairman nodding in somewhat agreement. so mr. president i hope we'll get on. i hope better hearts and minds will prevail and that we can collapse this period of dark where there is no law governing e-mails, phone calls cell phones, et cetera, as we try to protect ourselves from the terrorists. i would hope that that would be collapsed into a much shorter time instead of having to wait until late tuesday or wednesday or thursday of this week. mr. president, i yield the floor. mr. burr: mr. president? the presiding officer: the senator from -- mr. burr: i ask unanimous consent that all time morning time be yielded back and the senate resume consideration of h.r. h.r. 2048. the presiding officer: is there objection? morning business is closed. under the previous order the senate will resume consideration of h.r. 2048 which the clerk will report. the clerk: calendar number 87, h.r. 204

the tech to table push coming up. >>> a $17 billion deal this morning. intel buying and what it means for the space and first cnbc interview coming up. >>> really looking forward to that one. >>> here is where we stand into the markets of the final hour and the first trading session of the month. the dow is up and the sprks is up and then gains across the board:the nasdaq up to kick off the week there. joining the exchange today, we have sam here from s&p. the index is significantly performing this year. a lot of discussion as to whether or not today's rally sam is a good sign what is the read from this important thing? >> well i think that it's a good sign. i don't think that it's a sign or indicator that can have timing mechanicians behind it. if it's down by a significant amount it's fair to ball out. it is in con junction with the other indicators. right now the yellow light is just flashing. >> transport means a lot of different things. today we're talking of the airlines. this is one of the reason that is we have seen underperformance. comments about kee

the industry. that is what intel is looking for. : after the deal last week i cannot believe all tara -- altera closed at what it did last week. they could not come to terms there was a site even on friday the deal would get done. whoever owns altera is making a boatload of dellough. julie: they may have still been a level of skepticism. stephanie: thank you to julie and joe. joe, we have not seen you in ages. erik: when we come back, olive garden undergoing an historic transformation. they are taking the show on the road. the new journey for the once unlimited that sticks. stephanie: i can't wait! ♪\ stephanie: welcome back to "market makers." i'm stephanie ruhle with erik schatzker. we have breaking news in the semiconductor industry. the largest chipmaker intel has agreed to buy altera for $64 a share in cash. the deal is valued at $16.7 billion. it is the second big deal in the chip industry in the last few days. last week avago agreed to buy another for the biggest acquisition in history. spy programs have officially expired gre

the opportunity we don't agree with intel. the opportunity is as big as intel is talking about. we don't concur with intel on the growth rate for altera, this company hasad negative kegger of 2% for the last three years. in the midst of the biggest capital spending from carriers we've seen, especially in china. third thing is we were disappointed on the details around how intel hopes to generate return on the roughly $17 billion they're putting down for the deal and finally, it also brings up questions on the balance sheet and we don't have the details on how much debt intel will be raising for this. it will be a mix of debt and cash. but part of the debt could be anywhere from $7 billion to $12 billion, could have an impact on the capital return via share buy-backs and in the past we've been very big supporters of intel and we've lauded intel's efforts on the capital return side. >> this is a big deal. you take the company from a buy and you downgrade it simply what it certainly seems to be on this transaction. what i want to

olivia: a deal in the semiconductor industry. intel is buying altera in a deal valued at $16.7 billion. agreement togo brought,. trying to signage will be our guest. it not want to miss that interview. the offer is 28% more than oh m's may 29 sharing price. a merger in the health-insurance industry might be in the works this morning. bloomberg news is reporting humana was approached by cigna. medicare advantage insurer and could be the leading company for medicare part d drug coverage. erik: the senate failed to extend programs for yesterday's deadline that means, for now the national security agency cannot collect phone records in bulk. a bill that would keep spy programs in place. going greenwald -- glenn greenwald gave us his take this morning. >> mass surveillance inherently is wrong. why should the government be in the business of collecting data about what we as law-abiding citizens do and say and the people with whom we are speaking? it is corrosive to basic liberties. erik: senator rand paul's opposition notwithstanding, the se

said, we're going to spend $300 million to balance out intel so it matches. what happened in theulture there that this is now what intel is chasing? i praise it. and every company says they're doing it. you guys are doing it and it's part of the culture. >> you have a female president for starters. >> that helps. we have diverse leadership. i think ultimately the markets we serve are diverse. you know i mentioned half the world's population -- >> so is every other company. >> true. >> and you're -- you're an old-school chip company, too. you're not even -- forgive me -- a cutting edge sort of company. you are an old-school manufacturing company. yet, you have this new culture. >> we're developing technology for -- wearables, right. wearable are largely jewelry. so if we have only men designing products, how are they going to serve -- >> a watch -- >> exactly right. your daughter won't want to buy one. i won't, mikhal won't want to buy one. we need representation that looks like the population buying our product. yeah. did you notice, i didn't mention you. >> lisa lambert, vice pr

president, this is a good example is the chairman of the intel committee, a republican and the senatorrom florida, a democrat a former member of the intel committee agreeing and are so frustrated as just exemplified by the senate that there is just so much misunderstanding of what the legislation does. the fact that the chairman has genocide metadata a fancy term is nothing more than business records of the telephone company. a telephone number is made to another telephone number on such and such a date as such and such a time for such and such a duration. that is all. we don't know who the call was from or two. it is when there is suspicion through other things that are authorized by court order that the analyst can get in and open up as to what the content is in order to protect us and what the senator from north carolina agreed that there is so much being and the price as has been reported about how this is the invasion as if the conversations were the ones that were being held by the national security agency. with the senator agree with that statement? >> i agree with exactly that

the third sentence. not something we typically associate with intel. >> this acquisition, should it go through of course so interesting because of the times. i mean, if you think the brian was the right choice as ceo, this is a big part of the reason why. he's a guy who understands manufacturing of chips possibly better than anybody else on the planet, and he's trying to position intel for the next ten years, which many expect is going to be about chips going into all sorts of locations where they haven't been historically. into sensors, into cars that are trying to view the road and understand what's going on. and this technology of programmable semiconductors is going to be important to systems being able to understand on the fly what's happening, being able to adjust and get smarter over time without having to put a whole different hardware solution into place. and also, this is a team, an executive team, relatively new, that exercised discipline in this case. altera bought at this price, intel backed away. shareholders have their say. this time it's going to work out. >> it's still paying for premiu

about nsa's spying on france, among the leaks, that nicolas sarkozy sought in snow about the financial -- sought intel about the financial crash he considered it his response ability to europe in the world to step up to the plate and resolve the world financial crisis. another one says francois hollande in 2012 believe the german chancellor angela merkel was fixated on the greek crisis. hollande claimed merkel had given up on greece and was unwilling to budge. wikileaks in 2013 alleged merkel herself had no u.s. confirmation of that. there was a similar on france with the white house insisting it is not targeting hollande's communications and will not do

dealmaking in the chip industry is on fire. intel is snapping up altera. for monday.ch fun which company is next? we had to san francisco to find out. ♪ betty: "bloomberg market day." welcome back to the "bloomberg market day." -- welcome back to the "bloomberg market day.". made andollard plane is scheduled landing in japan to wait out bad weather. sunday for what could be the longest leg of the journey. a five day, 5000 mile flight to hawaii. it began in march in on would be the seventh of 12 flight scheduled. the supreme court has bolstered the religious rights of workers. saying a lawsuit abercrombie & fitch illegally denied a job to a girl because she wore a headscarf. businessesigion -- to be more religiously concerned. justices ruled there was not enough for prosecutors to show that the comments were enough to make a reasonable person feel threatened, that's a look at the top stories of this hour. let's go to julie hyman for look at how the markets are reacting. julie: take a look at these. at 5179.ill trading we are seeing a halo effect with the oth

he came from the manufacturing side from the foundry side. intelal chips for altera for quite a while in and out. brian krzanich knows that basis here. think about how intel lost mobile. part of what they didn't do is integrate 9 right sort of things into a chip. intel is great at building the most sophisticated chips on the planet. but they didn't foresee the need for flexibility in mobile for having the right antennas for doing the right kinds of power reduction. here they're trying to get that for the next generation so what does that mean? what are the examples that he gave on the call is things like facial recognition and security. if you can have the right kind of software and settings for that built into the chip that's going to be a lot more effective than having to do it in software. you can switch back and forth and make sure you're seeing the right -- into doing something with security and encryption on the fly. if you have that capability built into a chip. also has the programmable capabilities of altera built into it. that's also goin

so do you think the u.s. intel gets credit for this? >> i think we do. i think the community does because, look we have a variety of sources of intelligence even in these very harsh impermissible spaces like yemen and it's a combination of human intelligence after we had to remove a lot of our people with the civil war going on there, but we have strong signals intelligence. we have strong overhead intelligence and we put that together to identify people that we believe that are in the leadership of aqap and we may not know all of the time precisely which leaders have gathered but you know statistically if you're going after the top leadership ultimately you're going to get them as we did here and this is quite a big successful counterterrorism operation because some of these figures are not easily replaceable. it is disruptive toft organization and this was heir apparent to the al zawahiri someone who led the most dangerous franchise of aqap and it's a significant achievement. >> this isn't the only aqap official taken out in recent months. since the beg

president it is a good example as chairman of the intel committee, a republican and the senator fromlorida a former member of the intel committee that they agreed edward so frustrated as exemplified by the senator that there is so much misunderstanding of why this legislation as fish chairman has said that metadata is nothing more than business records of the telephone company. it is made to another telephone number on a day-to-day at a time for such and such of duration. that is all we do know who it is from zero or two but when there is the suspicion with those other things that are authorized by court order that the analyst can get in to open up the content and it is agreed that there is so much misunderstanding in the press as has ben reported with the invasion of privacy as if the conversation is the one being held. by then national security agency. >> the collection has nothing to do with content of the call. it would take an investigation to an individual with a core process that would be looked at the fbi, not the nsa to look at content. when the american people see this diss

>> it appears to be that way and taken into consideration all of the intel that we are gathering. they need each other at this point. they planned this things for months, perhaps years. they've known each other since 2008, when he was incarcerated. they had cells next to each other, they put together a very elaborate game when -- escape plan. if mitchell was involved, and she did not pick it up, that threw a wrench in their plan. >> hottie you take into account the safety of the public? >> that is a huge factor. they are vicious animals, i like to call them. the underlying charges and the homicides, and especially with madge who tortured a guy, these are violent people. the public needs to be diligent. especially, in the area where the search is going on. leave your lights on and i, make sure your neighbors are ok. who did not pick up their mayor==il? look for possible hostage situations. there are some are homes that have not been opened so they could have gotten into one of them. they are dangerous people. >> thank you for joining us. the prob worker has claimed she's a good but

set-aside these budget cuts for defense and non- defense replenish our military; up our game on the intel side. >> stewart: in the mediterranean, crews have launched a new wave of rescue missions to save hundreds of migrants still stranded at sea. authorities say as many as ten different boats called for help this morning. more than 80,000 people have either been rescued or sailed to safety this year. most are paying smugglers to board wooden or rubber boats in a desperate attempt to flee persecution and violence in libya and sub-saharan africa. while british, swedish, spanish and italian ships are racing to save the stranded migrants, the e.u. is still debating how to handle to influx of refugees once they come ashore. an interesting turn of events in turkey's parliamentary election: the ruling party was favored to win big, but early results show it could end up losing its majority altogether. president recep tayyip erdogan asked the country's 53 million eligible voters to give his party 400 parliamentary seats. that would have created a super majority that could rewrite the constitution

i spoke with her about the record-setting deals we are seeing from broadcom and a votto, to intel buying tara. you mentioned tectonic shifts. do you think we are going to see more consolidation? meg: that is typically what happens when industries get disrupted. i can't tell you how that will play out, but i'm not entirely surprised at some of the m&a that you've seen in recent weeks. emily: any sectors you would point out where you think it might happen? meg: i think there are two kinds of m&a. as you point out, consolidation of big existing players, but there is also all of these new startups that are coming up that are either going to go public and be great independent standalone companies, or are going to become a part of bigger companies. we have to be watching and thinking about what the right thing for us is in both those areas. there's a company like aruba. a very successful company, but in the long run needed to be part of a bigger company to leverage. no one has a better connection to customers globally. we operate in 170 countries. we sell to almost 150,000 value added reseller

after tracking the farmmouse for months president obama ordered the hit when intel show the that mobs was there. a stroke of luck they believe he was hosting a meeting in an effort to broker a cease-fire between the troops. he with pulled together this group, it presented a target that was too good for the u.s. to miss. a truce with al qaeda to give a freer hand to spread terror through outlibya. isis now controls mo gnarl gadhafi's hometown and setting fire to oil fields as it battles libyan force the siirt . >>> the u.s. has since pulled out of the libya. after the attack in be ghazi in 2012 and the takeover of tripoli a year later. militants celebrated their departure with a pool party on embassy groupds. >> it is u.s. is also circumspect about how much it could do in libya, about what the prospects were and there was a sense that we had our hands full and this would be somebody else's responsibility. >> how are you all today? welcome to the orchard. >> this could haunt hillary clinton as she embarks on hurl i wantial campaign. as secretary of state, clinton was a decisive voice in

the invention won the 11th grader $75,000 at the intel international science and engineering fair. >> the issue of pesticide use near the schools is triggering a response from california regulators with the first statewide restriction on using weed killers near schools. california has no comprehensive restraints on pesticide use near schools. growers say the restrictions cost them money and they have to pass that along to consumers. >> the first spacecraft to land on a comet has broken up. it worked for 60 hours before the battery ran out. the comet has moved closer to the sun and contacted theth for 85 seconds yesterday with delays carrying large amounts of data to give scientist as look at how the comet changes moving through the universe. >> the mvp gets job done in oakland with the warriors a win away from the team's first nba championship in 40 years. >> the court ruling expected if hours that could change how california cities create affordable husbanding. >> traffic is moving right you tell us what you want to pay and we help find options to fit your budget. nah, nah, insurance

i'm deeply concerned, while i sit on the intel committee, i'm a former police officer, i understand thefor law enforcement to be empowered and have the resources they need to prevent crimes and terroristic activities. there's a history in his country dating back to j. edgar hoover's program, we saw governmental overreach and we saw civil liberties encroached. i think there has to be a healthy balance. >> there is scary overseas news about isis today. apparently -- i'm sorry, sir. i have to cut you off. thanks for joining us. going to the family of usaamah rahim joining us now. >> let me give in the name of allah most merciful, i'm going to ask for a couple of things here for myself as a -- as a man who believes in god, that god has mercy on the young man. i don't know what his faults are were and i don't think whatever transpired warranted him being - killed and i want to pray for the officers involved. that god would guide them because they have families and i don't know how strongly they take it that they have murdered a young man that they well could have captured. i say that because

we entrust the intel committee to watch over the intelligence community. they are responsible for oversight. they did know these programs were going on and they failed us. the circuit court of appeals said that the nsa was breaking the law, exceeding legal authority with the metadata collection program. the intel committee failed to provide oversight. we cannot know all the secrets. the oversight we have, there is reform to this and the freedom act, the fisa court. the courts balance the executive branch when they do law enforcement duty. the fourth amendment, you have to get a warrant and have probable cause. you cannot issue a warrant that is so broad it does not name a specific person or things to be seized. the fisa court issued a general warrant that would have made king george blush. it says basically all of verizon's records, maybe you are not a verizon customer, you probably called someone that is. they have collective records for every american under one warrant. the fisa court -- one good thing about the freedom act as the data collection and sto

cable, you see a lot more activity there, but this year tech is coming back, especially because of the inteleal. now we are looking at a 600% jump in deals so far this year as of june 1. but what is going on is they have actually started to see some slowness in growth. they are not getting the double-digit returns the they are used to and i think that companies are looking in saying -- you know what? if i buy this other competitor i can do a standard process m&a and take the overlap. take out the things that cost us a lot of money. we take it out and we can grow that way. emily: crawford, where do you think we could and she -- could and should see m&a after the split? crawford: i do think that you will see deals at the two different hp's. it has been really interesting to see hp enterprise they will continue to try to simplify their offerings to really focus on helping people move to the cloud, helping people protect their data as well as getting more insights out of their information. that says acquisitions in the security space, the information space the information management space, as we

from the intel perspective we've missed the boat. >> so what happens with a nuclear iran with two others in the region to? >> if they open themselves up to routes through inspection they said with they will not do, they should not have a choice we deal with a country that is a pariah there at the table with the united states of america we should make the decisions with what they will do then let them know the expectations of international law with the norms and behavior's then say if you are willing to except that you can sit at the table but we did not do that so i say that you call the bluff by allowing others in the region to do this there has been a nuclear energy deals already that have been assigned one is going on with the russians right now this will happen so we have to keep that the level that is a nuclear energy and not nuclear weapons. >> the sanctions regime is already collapsing and other countries are basically saying we are tired of the sanctions the administration has said we cannot keep them much longer so that my fridge will dissipate so there will not be any leverage

most of the stuff they'd still talk about is intel and nuclear. i don't think we will see the nuclear stuff declassified. it depends on the intel. if it reveals methodology -- and some of it has not been declassified because no one asked to open it. it is a case of we don't know we have because no one has looked at it. i looked at some things in guadalcanal there were classified, but i had to break the seal on it. it was deposited there after the invasion. no one had ever opened it. my dad was a marine. i have on my desk a photo of chesty puller on my desk that he has. on it was a thumb print of guadalcanal mud. as a historian, is a moment for you get a chill up your spine. i'm holding history right here. some of it has not been declassified. most of it is in the intel and nuclear range. most of that has been declassified. most are on 25 or 50 year automatic declassification. it is a matter of teasing off. -- teasing them out. anyone familiar with the national archives can no you can spend a few months there and only go through a few boxes. they wa

let me tell you what the ceo of intel is saying. his acquisition we'll harvest power. the other acquisition to make the next generation solutions better, but able to do more. the company saying that the transaction expected to be a creed to intel's nongap eps in the first year after the close. >> after the close. >> after the close. i'm looking here. to fund the acquisition and expected the transaction to close within six to nine months. and they say that's going to happen with a combination of cash from the balance sheet and debt. the company, i think, has something like $12 billion on their balance sheet right now. >> no equal way there is any problems with this. right? >> in terms of anti-trust? >> yes. >> i want to say doubtful. not in a comcast/timewarner cable way. >> take a look at shares of altera. they're halted right now but got to 51.20. that stock closed at $48.85 on friday because expectations that something like this could come as early as today. >> even more meaningful it's up i think about 56%. that price is a 56% pre

the break. and chip wrecked. semiconductor stocks hitting major trouble this year. we hear from intel's ceo about what part of the world is hurting it most right after this break. plus what do hedge fund titans leon cooperman, david einhorn, and david tepper all have in common? they could force gm's hand in a major deal. we'll have a special report explaining when and how later this hour. much more "fast money" straight ahead. hey, can i help you? yeah, we're interested in the iphone. we promised one to beth for her birthday. you know mobile share value plans now include rollover data, so the data you don't use this month rolls over to the next month. wow, even better. so what are you gonna do with your old phone? i'm giving it to my sister emily. she gets all my old hand-me-downs. oh i'm into bedazzling too. and you admit that? yeah...i...i used to be into bedazzling. i'll go get your phone. get the iphone 6 with rollover data to share. only from at&t. >>> chip stocks facing major headwinds and that kicks off our top trades tonight. intel ceo brian kurzani clchlt on the halftime report

the chip giant allows them to defend their presence in data centers. intel pays 54 a share in cash and a $16.7 billion play for altera. they are the maker of semiconductors. stocks shot up 6%. the deal is a premium of 11% over the closing price. if you look back to march 26, it is a 56% jump. happy shareholders there. with going on? 's going on?g >> we have been doing acquisitions over the last two years and i ran intel's acquisitions. we are taking a lot of that learning and carrying it into this acquisition. su: it comes on the heels of the biggest deal ever in the chip business. the deal to buy radcom -- broadcom. business is seeing a little growth going forward. when of the few strategic moves being out there. taking a quick look at the broader markets, we saw a rebound in stocks earlier in the day that were a bit skittish. in the face of these conflicting reports. is the economy recovering or not? it expects consumer spending data for april, what is going on? that when you have this kind of data, which is not but notily negative, necessarily positive, t

. >>> the chip deal that's long been rumored is done. intel said it would buy fellow semiconductor maker altera for $17 billion. the move will allow intel to expand beyond ships for pc's and into smart cars and cloud computing and other applications. the deal is intel's largest shares of ultera were nearly 6% higher. and intel fell 1 inform%. >>> in washington today, a supreme court ruling in favor of the banks. the nation's highest court said struggling homeowners cannot get rid of a second mortgage using bankruptcy protections, even if they owe more on their first mort worth. the case involved second loans held by bank of america. and the ruling was unanimous among the justices. that wasn't the only business related ruling by the supreme court today. one case involved abercrombie and fitch and workplace discrimination. the other, posts on soci >> facebook claims 1.4 billion monthly active users world wide. today in another social media channel, heard the first ruling from the u.s. supreme court about possible boundaries on free speech. the h

i think you can own the company right here. >> intel confirming a nearly $17 billion altera purchase for a huge premium. this as the nasdaq hit a new closing high last week. take a listen to what the ceo of intel said about the deal moments ago on "closing bell." >> we compare it against the advantage of investing in our stock or giving dividends and it has to pass that hurdle. >> so as tech companies continue to shell out massive amounts to buy out others, is it safe to say the tech market is actually undervalued? there is a buyer here. the buyer being the other companies. >> on the altera deal, i think this is kind of a tuck in for intel. i think the deal wasn't terribly accretive. the best thing intel could have done is buy their own shares back which would have been 15% accretive in my view. are they paying with shares or are they paying with cash? that's part of the barometer how you look at a deal. but big cap tech right now is very cheap relative to the market so no. i think a lot of these guys are in a good position to buy stock and doing accretive deals. >> relative to intel'

ceo brian kri some, anich says staying diverse is important to the future o intel. >> we have examplemple that when you have a diverse workforce, and if you think of something like a wearable. you can't go into the wearables industry where you will be on every kind of person that makes up the population and say you'll only have one segment of the population make that product and it's going to fit the needs of all >> the move comes as tech companies face chris sichl for overwhelmingly male and white workforces. a big viktee for governor chris christie today. he can cut more than $1.5 from state pension funding, giving some temporary financial relief. new jersey's tension system faces a funding shortfall of more than $37 billion, and it makes annual contributions to the fund at one of the lowest levels among states. >>> a primary weapon in the war between the states for jobs is incentives tax breaks and subsidies, but do they work? scott cohn has a look at some of the subsidies and the some say the whole thing has gotten out of hand. >> when aluminum giant alcoa was looking to save mone

matt: and a change for the chipmaker intel. they are buying altera for 15 billion euros. the biggest acquisition in that company's history. peter: traditional chipmakers are seeing margins squeezed as prices for personal computer chips dropped. intel was slow to move into the booming smartphone and tablet businesses. it is the third major takeover in the sector this year. matt: let's take a look at equities markets where traders were, surprise surprise, worried about greece. reporter: once again, investors were eyeing the situation in greece. opinions are different about the situation. investors are optimistic that greece and creditors will find a solution this week. many investors are very pessimistic about the situation. they fear aggression this month. they are nervous, a lot of anxiety, and the market reflected this nervousness today. it was somewhat of a roller coaster ride today. in the and, the index closed in positive territory. matt: let's take a closer look at those market numbers starting in frankfurt. a roller coaster ride ended with a climb, finishing up about

pc become a lot more tablet-like with the help of intel working through the supply chain.y worked touch into the pc. they'll take it to a different level, with windows 10. so pcs have become more tablet like in this mobile and touch era. more quickly than the ipad has become pc-like. taking on the productivity characteristics that people expect when they want to get to work and we've seen survey information show that people are immediately intensive, sho ecommerce intensive. they use these things in bed when the day is over. getting their work done. with this multitasking, apple is trying to reverse this. i suspect they'll have to do more. maybe within ipad that comes with a keyboard. maybe some other functions working with developers and maybe their own apps to make sure you can in a way that makes sense move a curer, they showed that yesterday. dig in to select things, get things done in more of a mode that people are used to with a pc. >> interesting to watch. one last left turn, alibaba's chairman jack ma wrote an op-ed in the "journal" this morning. he writes about ho

the server area is critical. this will help out intel in a big way. eek's san jose avago bought broad come for $37 billion and analysts expect consolidation to continue. consumer spending was flat in april according to the commerce department. the weakest showing in three months. we did see a nice rise in incomes, biggest gain since august. people are saving more money. retail sales aren't that great, it's a welcome sign of fiscal responsibility taking place. we would like to see more of that. stock market off to a positive starts after a rough week. let's look at the big board and see how we're doing so far. dow up 14 points, much stronger earlier, and now weakening a little bit. nasdaq hanging onto a 1 point gain and the s&p is down by one. michelle and frank, back to you. >> jason brooks from kcbs news, thank you. >> new this morning, a solar plain attempt to go fly around the world without a drop of fuel is making an unplanned landing in japan right now. the swiss pilot took off from china yesterday for what was supposed to be longest leg of the jo

capacity backbone, but also the intel that gives you the information about how to do it. now, we have intel now that has been demonstrated in the past the intel that we have. and that is not going away. but isn't intel plus the additional information that you get from an aggressive and significant inspections regime better than intel without that? and so wouldn't a deal that gives us significant inspections enhance our intelligence and thus enhance the credibility of our military threat? >> i think that's absolutely the case. being on the ground and being able to go anywhere any time is critically important. we are going to still need the intelligence assets that we have been using. and working with our allies and their intelligence capabilities. but being on the ground makes a huge difference. in iraq -- and i had some experience when i served in the clinton administration on this. when we had inspectors on the ground, even though they were being blocked in various places -- you remember that cat and mouse game. nevertheless, we always had a much better insight into iraq'

we entrust the intel committee to watch over the intelligence community.y are responsible for oversight. they did know these programs were going on and they failed us. the circuit court of appeals said that the nsa was breaking the law, exceeding legal authority with the metadata collection program. the intel committee failed to provide oversight. we cannot know all the secrets. the oversight we have, there is reform to this and the freedom act, the fisa court. the courts balance the executive branch when they do law enforcement duty. the fourth amendment, you have to get a warrant and have probable cause. you cannot issue a warrant that is so broad it does not name a specific person or things to be seized. the fisa court issued a general warrant that would have made king george blush. it says basically all of verizon's records, maybe you are not a verizon customer, you probably called someone that is. they have collective records for every american under one warrant. the fisa court -- one good thing about the freedom act as the data collection and storage