Now saying the country is willing to European Union has given the ecb president other tools to use in case of deeper prices. Druggie in the ecb did not go too far when it unveiled the Bond Buying Program in 2012. That happened right after he declared he would do whatever it would take to save the euro. Stephanie boeing has extended its lead over airbus on the second day of the paris air show. Bowling pulled in its biggest deal yet agreed to sell 100 of its 737 max jets to the dutch leasing firm. It is almost 11 billion. Boeing has a most 30 billion in sales so far which doubles airbus; total. Five people were killed when an Apartment Building balcony collapsed. Eight people were injured, and some are in critical condition. The average government says some of the young people are just some of the victims are young people from ireland. In hockey, the Chicago Blackhawks have won the third stanley cup in six years. Chicago beat tampa bay 20, winning the bestofseven series 42. Duncan keith scored one goal last night. He was named the most valuable player of the postseason. Those are your top headlines. I was not watching headlines. Erik i wasnt. Had too many other things to do. I will say this. The hawks are a dynasty. To have won the cup three years out of six. If you are going to be like edmonton or montreal, you have to win seven in a row. Nevertheless pretty darn impressive. Stephanie when chicago goods to win the stanley cup, i say good for them. It is so cold for them, kids have icy legs to skate on for too many months a year. Erik for our top five things you need to know this morning, m a tops the list. Anthem is exploring a takeover of smaller rival cigna as well as humana. The wall street journal reports United Health has made a parliamentary takeover approach to patinaaetna. When you talk about companies approaching each other sometimes we talk about it being a dance. I am calling this a dance party. Mna dance jam. Stephanie this is a glorious time to be an m a banker. Erik what i want to know and what we are bound to find out is what role obamacare has played in all of this. Obamacare has rewritten the rules of the Health Care Insurance industry. It has been good by a large for Health Insurers. The program despite all the criticism, appears to be working relatively well. It deserves some tweaks for sure. Stephanie any program would. Erik everybody knew it would require some fixes. That is the backdrop to all of this. Stephanie i will give you number two. Under armour plans to create a new class of stock without Voting Rights mimicking a tactic we saw by google. It is all part of a strategy that will preserve the control ceo kevin plank has over the company. Erik i think it is a really interesting story. Stephanie kevin plank much like larry page is more than a ceo and chairman. He is the founder. Erik he is the reason under armour exists and has become a runaway success story. Stephanie under armour stock has doubled in the last 12 months. If 12 months ago someone came in and said i want thats maybe it was a 9 billion will 12 months ago. If someone came in and said i want t be 13 billion, someone would have come diving in to say yes if kevin pointed no. I know you will say it does make sense. Erik i dont think it makes any sense for someone to become an empirical ceo. Stop selling so much stock mr. Plank. If you sell, he has the super voting shares. If you convert the b shares to a shares which is what you have to do to sell them and realize gains, you dilute the ownership stake you have. They can only be diluted so far before he loses control of the company. To bring up that chart again he has sold almost 240 million of stock since 2014. Stephanie have you looked at how kevin plank is compensated every year . Erik 1. 9 million in cash bond and 1. 6 million in stock. Stephanie that is such a small percentage. He works in line with his employees on the same team, but he wants to remain the guy who calls the shots. Erik ownership problem is a problem of his own making. I dont know if shareholders should be the ones to pay for a problem he created. Stephanie or maybe the shareholders will say the stock erik last time, google Stock Performance has been amazing and was nothing short of amazing leading up to 20136. When google tried to do this, it was approved by only 12 of shareholders. When they tried to ram it through, the shareholders sued them and google settled with them out of court. I just want to bring a little transparency and sunlight to the situation sure shareholders can act in an informed situation. Stephanie shareholders might do that or say what an incredible run this is. We want to stay on this train led by the guy that brought us here. Erik they can do that. Stephanie let us talk to someone else in baltimore, maryland. Julie my dad might have bought into the ipo way back when. I will stick with something a little less controversial, economic data. 30 minutes from now we will get the latest read on the economy with Housing Starts and building permits. The latest data it begins its twoday meeting today. They are not expected to be quite as strong as it were the prior month because it were very strong the prior month. We might see a little bit of a lull. This will not affect what the fed will do today, which is absolutely nothing. We might get a little more guidance on when we could see a rate rise. Erik number four, lawmakers are still trying to rescue the fasttrack bill. Many in the Business Community support the passage of this bill. Ges ceo spoke about how vital it is to the u. S. Economy. In two weeks, we will not have any trade bills. We are the only country on earth that would have those two things happen, and it will happen in the next two weeks. I would say to people watching the show we can compete. This is a job creator. People think trade bills are for people like ge. Stephanie we know how jeff feels. Samsung is working with Goldman Sachs as it works to fight off an activist challenge from investor elliott singer paul singer. A little tongue tied to day. 8. 3 million merger to trial industries. We have seen it time and again. Paul singer is a very difficult guy to go up against. Erik the subtext to this is wall street is divided into two camps. The firms that work for the activists and the firms that defend against the activists. Stephanie we will talk about some of the else under pressure, and it is like company. It it is a country. Greek Prime Minister is speaking to his parliament right now. He says his country has made great political choices. And other great official says the government will not submit a revised proposal to avert the fall before a meeting today. The stock fall across fell across the board today. I want to bring in marcus. He lives every take of the clock every tick of the clock. Tell us what this means. Marcus after the breakdown of talks we have a meeting of the euro finance ministers thursday which has been flagged as the next deadline. The latest up until a few moments ago is that the government that everyone is in a waiting stage at the moment. The government said we made our proposals. It is up the creditors to move the ball forward. From the rest of europe, there is a chorus saying it is up to the greeks to make the next. The greek government says they made the talks credible proposals in talks over the weekend. The creditors were not interested in discussing them and they were insisting on pension cuts and riders. Erik i know that Alexis Tsipras and the finance minister want to project solidarity not to mention take a hard line as a negotiating strategy, but what are you hearing on the ground other members people in athens . Do they anticipate is hartline will soften at all . Are they taking it to the limit . Marcus within his party, he would be posed to take it to the limit. In terms of the groundswell of his support, there is widespread revulsion against the terms being offered. Widespread revulsion is probably something that is felt by the whole country at large. Everyone in greece universally with think this is a bad deal for greece. Overall, if you look at opinion polls the latest one says 57 say they should accept it matter how bad to preserve greeces place in the euro. Overwhelmingly, the feeling among greeks is that greece doesnt have any good choices right now. In terms of his core party, he will take it as far as he can. Erik thank you so much. Marcus with us from athens. Stephanie still ahead, yahoo Ceo Marissa Mayer is under pressure. We will look at what she is up against to turn the company around. We know she has in her corner the Stock Performance since she has taken the seat. We will be back with more. Erik coming up later today on bloomberg television, twitters outgoing Ceo Dick Costolo and yahoo president and Ceo Marissa Mayer join us live from the tech conference during the noon hour. Stephanie the day here on bloomberg. I will give you the top stories of the hour. A weather warning is up right now along a 300 mile stretch of texas coastline. Tropical storm bill is heading in from the gulf of mexico. It is expected to bring in eight inches of rain and cause flooding. The ground is already saturated in much of texas. The state still recovering from the wettest month on record in may. More privacy issues for facebook in europe. Regulators and belgium are suing facebook over its privacy practices. They have accused the social network of processing personal data without explaining how it would be used. Facebook says it uses cookies to show users relevant advertising. They can opt out if they want. Private pilots and some democrats are opposed to a plan to privatize the air Traffic Control system. Republican congressman bill shuster says his plan would insulate airTraffic Control from politics and budget uncertainty. Airlines like the idea of private plane owners do not want to pay a user fee. Those are your top headlines. Erik it was only a few years ago a great bond default when it meant disaster for europes banks. What about now . A chance on a bailout appears remote so an exit from the euro could be likely. Welcome back to our guest. Lets talk about greece. We have not connected the dots between a potential exit of the euro and the help of the european banking industry. What do you see . Five years ago europe did not have the ability to deal with the issue. If you go back to the u. S. Crisis, the u. S. Recapitalized banks. That is what european banks did five or six years falling back. The fed acted with a true line. The u. S. Created a shield which basically divided a dollar an economy. Just five years later. We take our time. No stress in europe. Today what you have on top of it is something that back then in america you didnt have because we dont have a fiscal union like in the states. The monetary union. We create a banking union. We created this european stability mechanism which is the firepower of about one trillion euro from a physical perspective. All the governments have jointly put together a trillion euro which is ready to intervene. If they think about it, the exposure today to greece, 90 in the sector. It means that is the exposure of european banks into greece. Erik so if greece defaults or greece leaves the euro, nothing happens . Davide no. Those are two different scenarios. List of faults on public sector, no big deal. It is a washout. Ecb has decided to print 1. 6 trillion. Greece puts out 120 billion. Stephanie what does this mean to you as an investor . Davide in this scenario, the key issue is the imf gets paid which i think it will. What happens then at that point in greece . I expect if there was a default, you will have capital control like in cyprus for a couple of months. At that point it will be a political decision. I imagine every great for us to stay in the euro because they dont feel like a savvy will be much worse. At that point you will have currency for a short period. Erik hold that thought. We will be back after this short break. Erik we had to quickly take a break. Davide invest almost exclusively in financials. Were talking about banks and insurance funds. I want to move away from greece and bring the focus back to what is going on here. There continues to be a battle between wall street and washington. Right now, the easiest way to frame it is jamie dimon versus elizabeth warren. Neither seems to have a kind word for the other. From an investors point of view, what does this mean . Is it noise or is there something with substance here that needs to be worried about . Davide the key debate is today the Financial Institutions have raised the fact of three to five times capital visavis 2007. If you look at the capital they raise and how much risk they shed off their Balance Sheet. The system today is so healthy. If you take the Financial Stability report of the imf or the g20 report, it says the system can take 2. 5 times limit losses event. That is crazy in terms of the capital. The g20 agreed to pop up the buffer. They will add 2. 3 to the existing capital base. Well have a system that is significantly more capitalized after the 129 crisis. The regulatory pendulum should abate but it is not an interest of the economy to keep shrinking banks at the expense of a shadow Banking System. We are transferring credit risk to base with Liquidity Risks. At the time that Interest Rates are so low, the feds hiking the rates could be the big issue. Stephanie given how sophisticated the shadow Banking System has become, is it far more interesting for you to invest in alternative management rather than invest in banks at this point when they are not doing anything sexy . Davide it has been the scene for the last three years. Our Largest Holding in the u. S. Has been blackstone. We invested eight dollars or nine dollars, and now it is 45. The company has quadrupled. It is amazing. The key issue is not so much the alternative. They can be the lender of last resort in a short period of time. What i am more concerned about is the structure eight or nine years ago. Today, banks have shrunk and they hold less than 10 of the inventory. The Market Solution are now 40 to 50 . Have dithered liquidity when you are lending money to someone to buy a house for 10 years . Youre supposed to give liquidity daily. That is a big risk. It only transformed or i would call an unbalanced credit risk. They took it and put on the market which creates Liquidity Risk. Erik how does the regulatory pressure with banks like jimmy jp morgan and jamie dimon compare with what is happening in europe . Davide in europe banks account for 70 of the lending to the economy and market is less than 30. Here, it is the opposite. Markets here are two times bigger than banks. The issue is in europe they need to be slightly softer for the simple reason that you are too harsh on the bank you control the banks and you control the economy. Erik the regulatory pressure is easing in europe . Davide it is. After the full and limitation, is everyone understands it is a matter of execution. When i have the Liquidity Risk like in the u. S. Europe is not going to ride high rates for a long time. The fed will hike rates. Will this Liquidity Risk in the market appear and damage the u. S. Economy . Stephanie i know the topic you want to get to but first we have to take it out to the newsroom. Have the latest numbers. Bonnie has to break that out for us. We have got so much conflicting data over the last few months. Vonnie we would just get the numbers and a few moments. In the meantime, the s p has been involved in the homeowners index and we have seen a 4 gain your today. It about lags the general market. We had a blowout month last month. If there is some strength, it could be good for the second quarter. Housing starts are down 11. 1 in may. That is more than what we were looking for. Were looking for it down 4 . Stephanie there you go. Erik disappointment on the start but a bullish number for permits which is a forwardlooking indicator. Let us say it evens out. Stephanie it evens out. Davide the bank you have spoken with us about and you have warning us about the management at Deutsche Bank. We saw two step down. What do you make of this . Davide thats bank is the bank that has de facto refused to accept the Regulatory Environment had changed. This bank came into the crisis with 50 assets and one in equity. That creates and drop caps and pressure on revenue. As a result there returns have been poor. They have been fined massively. Goldman sachs has been growing substantially by 11 per year. Thats bank less than 1 Deutsche Bank less than 1 . Stephanie can bringing in a new ceo turned the buzz around, especially if they say they want a cultural shift . Davide i am biased because i was the junior for the first two years of my career. I know him super well. He trained me. He is a man of order. He is not flamboyant. I think he is the right person for the right job. Principal, down to earth, ethical, quirky, nerd. He is the opposite of your wall street banker. Erik what does that mean for Deutsche Banks aspiration to become the Goldman Sachs of europe . Davide it should become a popular bank in germany and europe. Erik give up the global ambition . Davide focus on your key german and european clients. No point in competing for a chinese client. Stephanie that is a completely different strategy. The habits to everyone else in super Senior Management at Deutsche Bank over the last 10 years has been sewing a different line . Davide people have to go through returns and results. I imagine most were on a global kind of landscape when in reality most of the revenues with the german clients. Erik they should focus on siemens. Davide thats right. Stephanie why do you think it took so long for this to happen . Davide the division of markets 27 billion generated a property tax page 7 billion in fines, had to resort to one billion in capital. Made pretty much nothing. Basically, there has been a valued destruction between 2030 billion dollars. Stephanie i know we have to go but do you think there is a specific event like a surprise Board Meeting and announcement on a sunday that is puzzling . Davide i do have any particular insight, but i have been told the regulator adding all the fines that Deutsche Bank took wanted these reached to the top. Management capital cannot pay in itself 10 million every year. Eventually being the bank with the highest number of fines and litigation, the regulator said you might be in good faith, but enough is enough. Stephanie when the number got to gazillion they said enough. Always a pleasure. Davide thank you. Erik he is the ceo and Founding Partner of a hedge fund. Stephanie is yahoo still with earning after it spins off its alibaba stakes . Erik yahoo Ceo Marissa Mayer has been under pressure from investors to return cash to sell holders and avoid big acquisitions. Stock is down about 20 this year. s time running out for Marissa Mayer . Paul sweeney is here to help us answer the question. I want to bring up some math. It really explains everything you need to know about yahoo . You subtract the value of alibaba and yahoo japan. You and up with negative residual value. Is that really the report card on mercer mayer . Paul think it is. We have been focusing on the value of alibaba and the way to maximize shares to alibaba, but the fact is the core business is showing no growth. Revenue declined in certain quarters. This is internet advertising is going 13 per year. Yahoo is losing sure to competitors like facebook and google and so on. This is the challenge from orissa to turn this around. Stephanie our analysts and investors taking a look at not only have core business but these new strategies she is building . Are fearful resting on the joy of the alibaba stake . Paul the stock is down 20 because investors are saying i think i have a decent idea what alibabas worked for me in the spinoff and what yahoo japan might be worth to me. What see remaining is the core business. I dont see much growth in the core business and i dont like it. We are very much at the point where marissa has to deliver. Stephanie what do you deem to be yahoo s for business . What would you say . Erik i will go back to my dated language and say it is an internet portal. Paul one of the things they dont have is a very robust mobile strategy. When we listen to the google and facebook of the world, they talk about the growth of their mobile business. For facebook, that is the number one metric investors want to focus on. They get 75 of the revenue from mobile advertising. For yahoo , it is much lower. Theyre playing catchup. That is one of the reasons they have not been able to reignite revenue growth. Stephanie cut alibaba out. Would you rate them as a top five content portal . Erik i will say they have some strong businesses. Yahoo finance is a strong business. The yahoo app is a great app. Paul there is premium content and advertising their. There. Stephanie they brought in marquis people. Paul they have had a love turnover but she has brought the cool back to yahoo what we havent seen is it in the numbers because we have had alibaba creating this aura over the stock that has not been an issue. Cycle through that news over the next couple of quarters, and the pressure and focus stephanie is not going to take time to move the ship around and buildings up . When you think about the massive success of instagram at snapchat and facebook, you have this enthusiasm and momentum. Yahoo has been around for quite a bit longer. Erik how many successful tech turnarounds have the been . Have there been . One. Apple. Paul aol was bought by verizon. Maybe there is a verizon out there for yahoo that will take a look at the core business and the 800 million users that come to yahoo every month and say there is value there. Stephanie Tim Armstrong is really figuring out advertising. Paul thats right. Stephanie youve got mail. One of my favorite movies. Erik the ceo of yahoo will be joining us live at the bloomberg tech conference in the noon hour. Stephanie next, an all out assault in the frequent flyer rewards war. Will find out who will come on top. We would hear from the best. Erik you are watching Market Makers on bloomberg television. It is time for some of our top stories. In athens today, greek Prime Minister is blasting his countrys creditors. If of parliament the imf has criminal responsibility for the greek situation and the ecb insists on tactics that are struggling the country. Greece is making it clear it will not make any new proposals. The battle over open skies has been rejoined at this weeks paris air show. U. S. Carriers the Persian Gulf Airlines should not be given more linning slots in north america because of government subsidies to receive. The gulf carriers reject that. They have trend to retaliate against protectionism. If you want to close these guys or restrict the skies that hear antitrust immunity you cant have at the same time. The competitive power that gives you by eliminating foreign competition would be judged unreasonable by whatever government or entities they empower. Erik doug parker has said he has no complaints with the gulf carriers. He just wants the u. S. Government to enforce fair policies. Stephanie earlier this month, American Express was at risk of losing the rewards war unless it sweetened it benefits. Of all the forgotten flyer cards out there, the one and only brian kelly ranked to offers from mx as his topics. He sees a strategy at play. Brian just in from monaco. That is an expensive destination, a very offensive flight. That you pay for your ticket . Did you pay for your ticket . Brian of course not. I use my miles. Erik lets talk about the credit card industry. Everyone loves talking about points and i love your advice but i am fascinated by what is going on with credit as because American Express seems to be stepping it up most recently with the new card. Brian it has been a bad year. They lost cause go and jetblue they lost costco and jetblue. To increase their earning on their thank you premier and they have 12 new transfer partners. City thank you points i just transferred a singapore airlines. You can do for less than 60,000 points and have your own sweet. Stephanie how do you have this many points . Do you pay your rent or tuition . Brian they are hard because most companies will assign a fee. To get a couple of critical to a year and it is about maximizing every dollar you spend. It does not ruin your credit rating. Paying your bills on time and your debt to credit. For cards you have, the more credit you have available and the lesser use, the score goes up. Erik how valuable are these Loyalty Programs to the credit Car Companies . Why is it amex appears to be using loyalty as a strategy to win back the business it is losing at places like jetblue and costco . Brian for the fire myers are some of the most Effective Marketing tools ever created. Consumers want rewards. Amex bailed delta out of bankruptcy. Chase with united, city with american, it is very lucrative. For go flyer programs are huge profit centers. Stephanie are they taking the opportunity and are they looking for partners to attract a different customer . Brian there is not that many new partners to team up with. What they are doing that is innovative is with their Platinum Card they are creating their own lounges. They opened one in miami a few weeks ago. They have quality food, not just cheese and crackers. Ame loungesx are fantastic. There are six of them. Erik they are doubling down on the high end customer. Brian they will not win on the masses. They are targeting the people that spend a lot. If you are looking for the best offers, open up your snail mail. Some of the very best offers come in the mail. Stephanie what are your topics . Desktop picks top picks. Brian there are two different delta cards. The gold card is 50000 and eight will see is waived the first year. The other car that is really hot is the thank you premier card from citi. Your three three points on travel including gas. Is 95 and waved the first year. Erik if you want a decent program, you have to shell out something. Brian thats right. Especially if you are spending in categories like travel, even mta as subways and tolls all caps travel. These categories are bigger than you think. Stephanie who has an offer that is worst . Brian Spirit Airlines has a pretty bad credit card. That airlines expire after six months. I cant even figure out the program. Stephanie if this guy cannot figure it out, there is no chance for me. Thank you so much for joining us. You know this guy will have unbelievable summer vacations. Brian great content, too. Erik when we come back, under armour ceo kevin plank makes a move to ensure he stays in firm control of the company. Stephanie will come back. Let us turn to some of the most compelling pictures this morning. We are not talking texas, this is chicago. A storm dumped up to two inches of rain per hour in some areas of chicago. Parts of the city were put under a tornado watch. Hundreds of flights were canceled at ohare airport. Erik check this out. Crazy stuff out of hawaii. Stephanie this is amazing. Erik world surfing champions live on a lawfuloahu. Stephanie use a tandem or tantric did you say tandem or tantric . They are on a whole other level. Ket makers, with Erik Schatzker and stephanie ruhle. Erik in good morning. It is not 00 here in new york city. It is Market Makers was quote on bloomberg television. I am chaska. Stephanie im stephanie ruhle. Im glad to the back. Erik i want to give everyone a sense of what is coming this hour. The latest on the greek standoff. Kevin plank tightening his grip on under armour. Any close look at Donald Trumps wealth. What he says and what the data shows. Not always the same thing coul. Stephanie donald trump does like to say a few things. Top stories of the hour it has been a busy couple of months for homebuilders. A new report says that since april, they have started work on the most houses. This is important for you look ahead. The most houses in seven years. Permits for future projects climbed to the highest levels in almost eight years. That is an indication that homebuilding is likely to pick up even more. Over in athens, the great Prime Minister is blasting creditors for his countrys problems. Tsipras says the ecbs tactics strangled greece and accused the imf of criminal responsibility for the economic knocked down. Earlier, greeces finance minister says he will not be making any new proposals to end the bailout impact. Erik Tropical Storm bill is building strength as it approaches the texas gulf coast. The winds are now 60 miles per hour. The storm is expect it to bring as many as eight inches of rain. Taxes is still recovering from the wettest month on record in may. And donald trump has been flirting with a run for the white house for some time. And a couple of hours, he might make it official. The reality star and real estate mogul is making a major announcement this morning. The Washington Post says that trump will declare he is worth 9 billion. Bloomberg data says he is worth something entirely. We will bring that discrepancy in the half hour. Stephanie under armour ceo kevin plank is making a bold move to stay in control of his company. Later, he would announce that the company would create a third class of stock without Voting Rights. It would prevent a potential trigger to end its current dual structure if the state falls below 50 percent. 15 . Camillo, what you make of this . Camil i think thisl is ao the heart and soul of under armour. He has been focusing on longterm goals in the direction of the brand. There is no one that i think that would be better suited for taking under armour to the next stage. The structure ensures that he firmly remains in place. Stephanie is this a move that we should be seeing ceos doing or proving or is this just for under armour given that history of success . Camilo it is unique to founder led companies. Google is mentioned as another company that an act of structure not too long ago. I think this is more unique to those companies that are started by their founders and continue to drive the direction and strategy of the brand. Erik as he mentioned, there is some precedent for this. It wasnt that long ago that the prevailing wisdom on wall street and on main street was that governance was a good thing. And that the ceo of a company should be hired and in theory retained by the board as long as he was doing a good job. Kevin plank has been doing an amazing job. Why does he need to maintain control the company . There is absolutely no reason to assume that an independent board would have anything other than great things to say and do for kevin fight. Kevin plank. Camilo i think they are not too distant past examples of founders who have left the company in seemingly good fitting and the company fell to the wayside and that company that comes to mind is starbucks. If he is able to create a structure where he can continue to drive the strategy of the business, continue to use the currency, which i think is an important topic here, the currency for future Growth Potential without diluting his future interests, it will allow him to focus on the true growth of the business longterm. I think that is a winwin for shareholders. Erik i raise this point was stephanie earlier. Kevin plank wouldnt be confronting this problem if he werent selling so much stock. He addresses this point in his letter to shareholders. He says, dilution from Equity Compensation is fair and other oppositions fair. Such as equity financing, as well as any sales of stocks by me. I went back to the sec filings and since the beginning of 2014, he has sold 240 million of stock. I know he doesnt make a whole lot of money, but there is no obligation for kevin plank to sell 240 million of stock. Stephanie when you say the number 240 million, you have to put into context what he does pay himself. 26,000 and i think he gets a Million Dollars in stock. Marissa mayer gets paid 57 million. Erik that is fine. The point is that kevin plank may be under compensated relative to other ceos and his industry ceos who have performed as well has he has and who have overseen the kind of stock price appreciation that he has delivered. But they do not get paid hundred 20 million a year. Camilo you also have that in the context of his net worth of the company and the overall state. That is about 3 billion worth. In the context of his ownership i think he is entitled to diverse of why some of his holdings. He has Estate Planning that i think he is entitled to do. Erik we know we had two different views about that. Why would somebody who believes im not debating the point of diverse vacation but there are folks who believe that you should put your money where your mouth is. If you believe in your company, you should have all of your equity invested in that company. Im not saying that is necessarily a smart strategy but there is a difference in opinion. Stephanie you have to build a life for yourself. Erik thats quite a life for yourself into under 40 million. Stephanie to put it in perspective, he has earned the right to live large. Erik in nobodys book is this called the corporate governments. That is my point. Stephanie the guy built next order a company. An extraordinary company. Erik the Stock Performance has been out of control. The shareholder needs to know and ultimately needs to make the decision for themselves if this is a ride he wants to be on. Stephanie hold on. This happened with google. Google got sued. So many shareholders push back. Do you believe that theres going to be a big push back from shareholders . Camilo i dont think so. I dont think you can argument the performance he has delivered. Erik would you argue with larry page insert a brand and sir j ergei brin . Camilo he is the heart and soul the company undoubtedly. If you dig underneath the covers, his intensity for the brand and for the company that he has built has arguably rubbed some of his subordinates not that well. I think that is what has been historically what has caused strife between him and his lieutenants. He is the one who has been driving a lot of this growth. Like i said before and i will repeat again, he is the sole Energy Behind this is this best business that is taking the brand to global heights. Stephanie continue. Camilo i feel like he has earned the right to to realize some of those gains. Shareholder certainly have. Stephanie all right. I want to ask another question, but we dont have time. Erik we will have to continue the conversation. Who knows what will happen . Maybe under armour gets sued like google got secret thank you for being on the show. Like google got sued. Inc. You for being on the show. Under armour Amazing Company with amazing stock. Stephanie i wonder if one of the reasons he is doing it is because he has more acquisitions in mind. Look at what he has done in the last year. We will see. Erik we will take a look at which companies are talking about making a deal and the answer many. Stephanie coming up later today on bloomberg tv, it is a biggie. Twitters outgoing Ceo Dick Costolo m Marissa Mayer will join us live from a bloomberg tech conference in San Francisco starting at 12 00 p. M. Eastern and 9 00 pacific. Erik Health Insurers are looking to consolidate. Is a tangled web of potential dale activity. Deal activity. United health care is looking to take over at net or cigna. And they have all expressed interest in humanity bloombergs and hammett is here to explain it all. Ive never seen anything like this before. 8 not ated not at this kind of pace. Erik we are talking about 300 billion in market cap in these companies. Ed i think what is fascinating is that we have gone from a situation where there is nothing going on in health to everything going on. I think from the beginning of 2013 until about three weeks ago, 1 billion worth of announced mna and u. S. Health insurance. And now we have in the space of three weeks, we have apparently everything and play. Erik we were tried to figure out during the commercial break who is likely to be crowned, if you will. It seems on the basis of what the numbers show that United Health, with a market cap of 113 billion and a decent people to p multiple, they are in the best position. Ed they are strongest, but they do have some limitations. They cant by humana because they were be too much overlap and exposure to publicly funded health programs. I think they would also suffer if they tried to buy anthem. I think it will be too much antitrust there. Erik they could by cigna . Ed they could by cigna or at net or one of the smaller guys. United seems to be playing their cards most lowly and waiting to see what everyone else is trying to do and then make a move. Stephanie did the smaller guys need to get bought here . Ed i think if you are the smaller guys and youre looking at what is going on around you you are thinking, i might be acquired in this space. Humana is the only one they are been hitting at best have have been hinting at. Erik these are that small companies. They dont trade at massive sales multiple, but they have huge revenues. Ed with humana, you have this paper to double and very longterm very predictable and very longterm play. Both of those grow and are expected to grow dramatically over the next 20 years. Erik to what degree is this whole situation explained by obamacare . Ed its a big part. Humana and anthem have this big exposure to medicare and medicaid. It makes them more a check of us it has forced the other ones like aetna and cigna to look at it and think, we dont have exposure. Its very limited. Their exposure is more private Health Insurance. If they want to get public, how do we do that to make an acquisition . Erik is is going to play out for months . Ed i think it will play out for months. Someone at some point will reach a deal. Two things will happen one, regulators will look carefully at it. If it looks like it will go through, it is possible that someone will try to jump that deal. I think the other thing that does happen is that whoever does agree, there will be an enormous rake up the. To take them out of the market the risk if the deal were to fall apart, it might be hard. Stephanie who doesnt like a soft cushion . Erik you know who is making out like a bandit here . Wall street law firms. Stephanie win lose or draw lawyers always get paid. Ed wall street mna journalists are being worked. Stephanie and the bankers are working like animals but they arent getting paid. Erik theres going to be a completion fee paid somewhere here. Stephanie without a doubt. Ed you have to hope to bet the horse on that one. Erik thank you. Stephanie when we return donald trump is set to announce his presence implants today along with his network. We are going to find out if mr. Trump is really worth 9 billion. Bloomberg has the numbers. Stay with us. Stephanie welcome back. A great morning in new york city, but a big one for donald trump. He is widely expected to throw his hat into the ring today with a big announcement scheduled for just under two hours time. He is also said to declare a net worth of a whopping 9 billion. We know he is rich, but we want to know is he that rich . K live from the bloomberg billionaires team joins us now. We were looking at a shot of Trump International plaza and columbus circle, one of the many project buildings with the trump name emblazoned on it. One that mr. Trump doesnt actually own. Caleb he is collecting licensing fees from that and any condos units in there, he may have had parts on that early on. She is not collecting revenue from those anymore. Erik what does it all at up to . If trump comes out today and says im worth 9 billion, went to meeting what do we think . Caleb we know that trump has historically created a line item for the trump brand. In an interview a year ago with the real deal, the trump brand itself was added 4 billion evaluation. Stephanie i would agree that the trump brand has a value no doubt, but 4 billion . Caleb its a lot. When he was of the assets that we can account for, we can look at Revenue Streams and operating Profit Margins and cap rates and assess the value of these actual properties. We are not getting anywhere near that. Erik we do this. We have the bloomberg billionaires index. We do this. It is one of our core competencies. Stephanie if you arent tourists if you arent tourists and uc trump tower where gucci is located, it is the sign of american wealth. Caleb absolutely. It is worth a lot. Trump is absolutely a billionaire. The vast majority of that is condo units that he has sold off a long time ago to one other projects. If we tally up trump tower, his partnership with therenado we can get him as high as 2. 4 billion. That is not valuing his licensing deals or his trump brand. Erik he is worth more than 2. 4 billion . Stephanie what is his motivation . Guess what . He is running for president. That is caleb melby. We will be back. Erik you are watching Market Makers. Im Erik Schatzker. We are just a few minutes away from the opening bell. Tracy alloway is here and so is julianna manual. Julian, at this time of day, tracy tells us three things that are moving markets. What is number one . Tracy bond market volatility again. Take a look at this 30 year portuguese government bond. It was sold for the first time in january. The price went up by 40 once europe announced qe and now is down below par. The greece fears and over rising inflation that is the kind of all to leave that we are talking about. If you are an investor, how are you targeting that in your portfolio . Volatility, we have more that today. We has finished bonds down as well. Spreads against the german bonds are the highest since october. Stephanie what you make of all this . Julian the answer is to cut your risk and reduce positions. That is what we have seen in both the currency market and the fixed income markets over these last few weeks. When you think about it, it is a wonder that that has not blood over into the equity markets more considering the uncertainties that we have got over the next month. We think that is because particularly in the u. S. , the Economic Situation is starting to turn for the better. Tracy im so glad you mentioned currency volatility because that is number two on the list of what is moving markets. We have had volatility pick up since the beginning of the year. Your member won the National Bank remove the currency floor in the market went nuts. We got volatility again today especially in japan because the bank of japan governor says he did not need to move with the currency in his remarks last week. The yen is weakening a little bit today. Stephanie what do you think of that . Tracy julian it is risk reduction. When we think of the Central Bank Governors saying, i did not mean what i said, or this confusion about in the u. S. What exactly what the gdp numbers were in the first quarter. Theres lots of debate there. It is not surprising at all that people are reducing risk and waiting to see how things transpire over the next few weeks. Erik im going to use this opportunity to point out what is happening in the euro today. I woke up to see the euro trading north of 1. 13. It has been as low as 1. 1205. Even during the financial crisis, i do not think we saw it data currency volatility. Tracy mario draghi said we should all get used to volatility, so lets try. Stephanie we didnt have to when he said ill do whatever it takes. When he said that, it was like putting us in his bosom and rocking us for two straight years. Julian the market took him at his word of the past few months sending the german yield down towards the euro, but that was a bit too far. When you think about german unemployment thinking about a 25 year low, if we solve greece there is no question that that assault. There are uncertainties out there. Erik as the bell rings, youre going to deliver number three. Tracy how would you like a loan from lloyd bank line . For years and years, Goldman Sachs is the bank for the rich and powerful companies of the world. Today, we have a report saying that they are making a push into consumer lending. The interesting thing is that they want to use new technology and an Online Platform to make small consumer loans. We have seen a bunch of Companies LikeLending Club Prosper trying to do that. Goldman sachs jumping on that bandwagon. Stephanie does it seem i too little, too late, Goldman Sachs . Can they get in the space in a big way . Julian ever since the crisis ended there are new avenues for making loans and moving the economy forward. Erik i do want to point out, giving full credit to our colleague Michael Moore at bloomberg, he flag was moved by goldman in the first week of may. And now, theres absolutely nothing wrong with other people joining the party. But we were on it. Stephanie there we go. Erik i do think it is a fascinating move by Goldman Sachs. Wall street has been if not emasculated defend the strata. It is not the same industry at once was. The are still smart people i Goldman Sachs. It says something about this industry that goldman has decided to go into online lending and match if you will a business for which a trial has been blazed by the shadow banking marketplace. Stephanie it also says something about goldman compared to other Financial Institutions that we have seen them in the past be the most nimble and the most forward thinking, putting themselves out there more than other behemoth institutions. Tracy can i still the pot on this . Goldman was the lead banker on lendmans ipo. I know that their chinese walls that banks, but i would be annoyed if i was lending club and they were working on this ipo and goldman says im going to do online lending. Erik that is an excellent point. Were going to see how much of a direct competitor they are going to be to lending club. Stephanie now they know how to sanchez gets made. The sausage gets made. Erik theres Funding Circle and on that and using the power of technology to originate loans as opposed to making it a high touch. A Human Capital heavy industry. That is Goldman Sachs industry Human Capital. They need Human Capital to be tech savvy. Stephanie marty shabbos may be one of the most senior, crucial members of their executive committee. Name me one other person who has that job in the industry. I cannot think of who they are. Tracy we like to say that goldman is a technology company, so here we go. Stephanie Doug Macmillan lysis a walmart is. Everyone wants to be a tech company. Erik tracy, thank you so much. A great addition of the three things that move the markets. Stephanie i thought you were going to see a great addition to bloomberg, tracy alloway. Now we are going to another fantastic person at bloomberg. Julie hyman is taking a look at what stocks are moving here at the open. We just had the bell ring. We basically ignored it. But what is moving . Julie i want to mention that we are not seeing overall movement in the overall averages, which is notable given the lack of process progress on greece. This perhaps reflects that there is not enough concern now is the was in 2012 when we were sort of in the same boat with europe. It is something worth mentioning as we get underway this morning. I want to look at some movers. The big Cosmetics Company may have one the auction for proctor and gambles hair care unit, including its brands. These shares are surging by 15 . We do not know if this is the case. We do know that the German Company has dropped out of the building. Test fitting. Dropped out of the bidding. It is down a little more than 1 . We are also looking at twitter after was downgraded to a hold. Just consolidating all the research and views that we have heard out of the past several days. It doesnt necessarily solve twitters problem. The folks say that twitters core issue is still a cumbersome user experience. The thing that would change the analyst view is that they saw more significant user growth etc. We will be hearing from dick costolo from the bloomberg tech conference. We are looking forward to that interview to see what he says about all this. A quick check on aig a day after that they court ruling sort of in favor of hank greenberg. We are seeing shares move downward live out 6 10 of 1 . It was downgraded to hold over Deutsche Bank did not a big fundamental call, but rather a valuation one. Shares near 12 . That makes it close to what Deutsche Bank considers fair value for the stock. Erik julie, thank you very much. Julian is still here and he is the executive director of strategy at ubs. Julian, i want to talk to you about what is going on in the Health Insurance environment. Ed hammond was here half hour ago talking about what i call the dance party. Stephanie calls it the dance jim among all these Health Insurers. Is there any precedent for this . Julian there isnt. What it does illustrate is that when you think about the Health Care Sector as a whole, the confluence of demographic changes in the u. S. And the Affordable Care act have Cost Health Care to become less of a defensive sector and more of an offensive sector. That is where the epicenter has been for the last 18 months. Erik pharmaceuticals are now shipping to the insurance. Julian you have a risk at the end of the month with the Supreme Court ruling that could change the Playing Field further. People are tried to position themselves for this uncertain environment. When you look at health care in general, it seems very positive for the next couple of years. Stephanie this jamboree should be happening. Julian yes. Erik what does it say . Can we extrapolate from Health Insurers to the s p 500 or even Corporate America and Say Something about the appetite that ceos have for strategic transactions and their willingness to take risks . Julian theres no question that transforming yourself on a corporate point of view is very important in an environment where growth is this low in general as it is. However, health care is a bit different because that is where we have seen the best earnings trend, the best revenue trends, and the most cash on the Balance Sheet. We think that cash is a very important point. It really is the means by which these transformations can occur and should occur. Stephanie there are some in companies right now with so much cash on their Balance Sheet though. The arguments especially from the activist community, is that they shouldnt be sitting on this cash and should be doing something with it. Julian this is what we are about to see. There is no question that as the Interest Rate environment picks up, this one to be even more pressure to put that cash to work, which is why we think we are really only in the middle innings of the cycle. Erik you brought some charts with you and i do love it when people bring charts. This is what i want to draw attention to. Rising rates anticipating. What does it tell us . Let us bring the chart so everyone can see. What does it tell us . Julian not to have this angst about the fact that 10 year yield has moved from 180 up to 2. 5 now back around 230, 235. What it is saying is that that is normal when the fed is in position to begin hiking on the short end. It is a reflection of the potential for the economy. Erik let us walk everybody through the chart. The red line is right now. We are tracking most closely what happens in 1999. Can you draw many parallels between today and 1999 . Tech valuation is a place i would start. What other parallels . Julian we have just come out of an Oil Price Crash at a time when Consumer Confidence was building and out of very high level. It was a time when we were in the mist of an m a cycle that was essentially year one and a half or two of a threeyear cycle. Stephanie im going to play psychologist for a moment. One of the issues that investors faced was that many became emotional and envious. They looked at tech on. Even the things didnt make sense, there and he took it over. It points to 1999 as one of the biggest mistakes hes made. He let emotion get involved in his investment. As you speak to investors clients everything will day, how do they feel . When tracy was talking about this market volatility, you have to think that they are pulling their hair out. Julian they are. But on the other hand, the emotion has swung in the complete opposite pendulum. If you look at sentiment surveys, they are neutral. Few numbers of bowls in several years. And that point of view, we think this is the perfect recipe for a catalyst, which is potentially the start of the earnings season reports in july to pull the market higher. Stephanie well there you go. Thank you so much for joining us today. Julian emanuel is the director of u. S. Equity and derivative strategy. Such a pleasure having you want today. Erik coming up, we have great guest lineup for you. The outgoing ceo of twitter and the ceo of yahoo joining us live from the bloomberg tech conference out in the west coast starting at 12 00 p. M. Eastern time and id 00 a. M. Pacific. And 9 00 a. M. Pacific. Erik let us have a quick look at some of your top headlines. Get hub is trying to raise 200 million and a new round of funding. Not to push the tech startup value to 2 billion. It helps companies and developers build software. Officials in california say that many of victims in the balcony collapse are going people from ireland. And happened early this morning and berkeley. Five were killed and a were hurt when the balcony fell from a fourth floor of an Apartment Building could some of the injuries are lifethreatening. The cause isnt known. Calling it a threat to public health, the government is cracking down on artificial trans fat. The fda ordered Food Companies to stop using trans fat within three years. The white house says that the move will prevent thousands of fatal heart attacks every year. Stephanie, hooray. That is what i can say. Stephanie thats what you getting out of Erik Schatzker today. Erik i like seeing the Government Take Action on issues like this. Remember this is the era of obamacare. We are no longer living in a time where you can do whatever you want because youre not paying for your problems anymore. We are paying for your problems. Stephanie i agree with you. We have to move on. Stocks that moved and they are no longer in the red. They are in the green not following europes lead and shrugging off the greek deadlock. We want to bring back julie hyman once again with a great chart. That is what we do here at bloomberg. I know this chart is really going to explain why europe is now considering a greek exit and saying that we can survive. Julie i have to give credit to Michael Mckee because he is the one who turned me onto this. He is looking at the spread between german bund in spanish debt. The peak was in 2012. This is what i referred to at the open. At the time in 2012, we saw the spanish yields surge because nobody wanted to accept the risk of holding those countries that. That has come way down in the spread has narrowed between the perceived safety of the bund or spanish debt or tell you that. You can look at it from a number of ways. Erik that is a ride down. I do whatever it takes roller coaster. Julie a do whatever it takes roller coaster and may be more prepared than what were at that point in time. Many people have had several years to wrap their heads around the idea of greece bailing out. Erik you can see the spread is beginning to rise. Julie it is beginning to rise, but considering where it was i mean it is nowhere near where it was in terms of perceived risk of a greek exit. Erik true. But it does Say Something. Things are Getting Better in europe as opposed to perception, we would not see that happen. Julie we would not see the of tech, the uptake, but it is not perhaps as dire as it once was. Stephanie think about the comments that we are hearing leaked out from european officials or alexis of tsipras. Things are not Getting Better anytime soon. Erik that is politics. Talking to the Greek Parliament he is going to say those things. Stephanie my message is the same thing to jamie dimon analyst with war. Did your mom ever tell you that you need to find some sort of middle ground . Erik you know what attracts honey . Bears. Coming up, we are taking you out to the Bloomberg Technology conference on the west count. Stephanie before that, i want to thank julie hyman for joining us. Im so sorry about the canadian. Erik coming out today, what is outgoing ceo twitter is outgoing ceo and Marissa Mayer live from bloombergs Technology Conference starting today at noon. The conference is underway in San Francisco. The theme is the intersection the between ceos and programming. We call it code in the company office. Emily chang is the moderator. He spoke with the cofounder of airbnb. Emily we really focused on cuba and airbnbs efforts. So far, it has been a quickly growing market for them. The fastestgrowing market that he talked about was china. We went in depth about the chinese opportunity. Take a listen to what yet to say. China as a country as a source of travelers, is growing faster than any other country in the entire world. Incredible growth. It is really an amazing thing. There is a growing middle class. Increasingly, the first thing they want to do is experience the world. Many have not left the country before. China now represents it is number one in terms of International Tourism expenditures. It was 100 billion back in 2013. The estimated it would double again over five years. Put that in comparison the next two highest are the u. S. And germany with highs of 80 billion. The future of International Travel is the chinese tourists. Emily we talked about the unicorn that has been coming out of Silicon Valley and whether he feels that airbnb has really made it internally. One of the things he said is that growth has been so unreal. I stopped paying attention to the numbers because they are so out of this world. He and the other two founders still the founder dinners on sunday night to get a line ahead of the week to make decisions and move quickly within the company. As for going public, he says that process has not started yet. The ceo says that will be a twoyear process. Is it going to be happening two years from now . The demure and said he demured and said no plans in that process as of now. Erik what about regulation . In new york city, we are familiar with criticism of airbnb. The attorney general Eric Schneiderman has gone after the company. How do they respond to this cause of question . New york has been a difficult market for airbnb, but this is something that faced all over the world. We are talking about the issue of people buying homes that should be homes and not airbnb villas and places like San Francisco at renting them out longterm and how big of a problem that is. The average rental is about 90 days either. People are doing that on a broad scale. I asked them if they want regulation or do we expect you to believe police yourselves . Tonight, there are over 4000 guests staying. It is a huge volume. I do think they get more attention than they deserve. It is not to say that they arent problems, but i do think they are problems that can be addressed. Emily one of the interesting things that i asked him was, do you think that you could elaborate desk collaborate with uber at all . He said, absolutely not. He said that we are two different company. A lot more stuff coming out of the Bloomberg Technology conference today. Im excited about dick costolo kicking off the day for us. Everyone wants to know who the former twitter ceo think should be the next ceo twitter. Stephanie i just thought travis from uverber and he was getting out and he was saying, here i am going to stay in in and airbnb. You do wonder if airbnb could be an acquisition target for a big Hotel Business was that Hotel Business doesnt compromise them in terms of regulation and what it would do to airbnb . Erik there are precedents for this kind of thing. I think of the car and a this. Zip car was one of the First Companies that created this asset sharing all the that airbnb has taken to a completely new level. But avis bought zip car because they recognized that we need to be in that business. Hotel companies could come to the same conclusion about airbnb. Get in there because it may be too late. Emily i would be skeptical about that happening. When i talk to these guys, they want this to be a big independent company. Marriott has a 21 billion market cap. Airbnb is raising funding added 20 billion valuation. They are already there. They do not need to be bought by a hotel chain. The Growth Numbers as he tells us are unreal. Stephanie they dont need to be bought by anyone but what a pretty girl asks you out with a whole lot of dough, we have seen other ceos say, yes, maam. Erik tons coming from the Bloomberg Technology conference. Dick costolo emerson meyer. That doesnt for Market Makers. That does it for Market Makers. Good morning, it is 10 00 in new york and 11 00 in tokyo. Bloomberg markets day youre watching. The greek Prime Minister accuses the imf of criminal responsibility for his problem. A default is looking more likely by the day. Erik we could be on their merge of serious consolidation. We will sort it out olivia another sign of a collapse. The gap closing a quarter of its stores after more than a year of falling sales. Olivia good morning, i am olivia sterns. Erik im Erik Schatzker. Olivia u. S. Stocks reversing declines. The nasdaq now up to tens of