Manufacturing slowed more than anticipated. Lowest inields are more than a year. That boosts the case of the ecb to simulate the economy. The huge deal, the press conference history making. And potentially taking rates effectively into negative territory. It is real simple. When mario draghi stared down german bund to spec Economic Data in the u. S. , this is what we have. Pmi,arketing manufacturing we found a little bit of acceleration in china. Slowing in europe. We will find out what we did. At 10 00, ims construction spending. President note the , his european trip will culminate friday at the 70th dday anniversary in normandy. Commodities once again slipping higher on friday. S p500 continues on track, 2. 50. On to our next screen, the volume really shows at all. 11. 40. There is the dow. Michael holland will join us. Shows stronger on the yen. Adam. S not the vix, up we go crisis. This is the quiet in the Foreign Exchange market. Volatilitynk, fx index. Absolutely stunning chart. I never thought i would see that. You understand why so many banks are saying the earnings this year are going to be bad fixed income, commodities, volume way down. That sets us up for the week ahead in economics, finance, and investment. All fixatings and on reports of an Insider Trading investigation involving carl icahn, Phil Mickelson, and Billy Walters. This was reported before and during the weekend. Investigators are looking into whether carl icahn told walters about an investment he was going to make in his fund and that walters may have told Phil Mickelson. Investigators are looking specifically into clorox trades because carl icahn tried to take over, which temporarily boosted the price of the stock but he did not go through with it. This was back in 2011. Yes. Phil mickelson said he has done nothing wrong. Carl icahn told trish regan he does not know of any investigation. He also said that he does know of Phil Mickelson but does not actually know him. I am stunned that Bloomberg News has nothing on this today. This is discrete to the New York Times. This is a very different way this has rolled out in many of these stories. And it seems kind of messy, doesnt it . What else do we have . President plans to propose cuts in Greenhouse Gas emissions. Some u. S. Power plants, the cut would be 30 from 2005 levels. The epa will announce the plan in washington today. You have the left and the right arguing about what it means. Republicans say it will hurt the economy and drive up the price of electricity. Democrats say it will be minimal Cost Increases for consumers in couldreas, and families save money due to efficiency gains. I remember when you could not see in los angeles. Within the frame of my lifetime. Any time somebody says they want clear skies and people go yeah, yeah, i am like, i remember when you could not breathe in l. A. How about the hudson river . Did you swim the goal on us can now once . You could now. There is a salmon run that goes through there. Keep going, i have to look at the map. Are frontpage story, apples conference the gains in San Francisco, speculation about what apple is showing off. This sets the tone for the second half of the year when they are expected to announce the next big thing. We know tim cook, eddy cue, upior management have hyped this event. Not just a Software Update but a Health Tracking app. Ticket item, and tickets cost 16 hundred dollars. You have to pay to get in . Oh, yeah. Really . My gosh, it is difficult to get it. They live cast it, right . They live cast it, but people want to be there. It is like going to the super bowl. I love the samsung conference as well. Lets get started on the week. Is simply,y week, it a weak case, that from our guest host, douglas burns, a former federal prosecutor. Egregious then Phil Mickelson and carl icahn being investigated, it was leaked. You are more upset about the leak than the allegations . I really am. A lot of us had relationships with the media in the u. S. Attorneys office, and a heads up would be given and we charged, arrested, and that was in the normal bounds. There leak the fact that is an investigation just is not right. When you have a formal injury and i will not going to every aspect grand jury monday. Anyone whosays that discloses any information about an ongoing grand jury investigation, that is a felony offense. The reality is you have people like they cannot disclose it. Theres always wiggle room on that. Say, wait a, you minute, and fbi approached Phil Mickelson on the green. Guess what, somebody saw that, so maybe they leak it. We will show this a couple of times. Then we will come back to it tomorrow and the next day. Instituteom the cfa full disclosure, i am a member of the institute this is their boring 220page standards of practice. Adam reads this when he is out skeet shooting. Just read,dea what i but that describes Insider Trading, right . It is a double whammy because when you get past the fact it was a leak, the reality is any professor or Securities Law expert will tell you the following. Material nonPublic Information is Important Information earnings, activation statistics and it is not available to the average investor. A ninerl icahn took percent stake in clorox and may have told this guy walters about that. It is not clear at all that that is a breach of a fiduciary duty, which would lead to Insider Trading liability. If i walked down the street and the memorandum blows out of a law Office Window about a secret hell, about a secret deal, that is not Insider Trading. However, the company from which the memo came would be guilty because it had a fire name it had a fiduciary us possibility . Gov know, because it blew out the window. It hurt or help the governments case to put in effort together . That is a great question. I think somebody in the government got angry and did this as a payback retribution. To see Phil Mickelsons demeanor, he he did nothing wrong, he made 60 million last year. He is not a wall street person, he is an athlete. Take us back to another famous case like this. Is there a parallel between what Martha Stewart went through and what you are observing now . No, and i will tell you why. Because Martha Stewart, and then head of the fbi, went through and said we never would have charged her with the securities climb a securities crime, but she lied. That team is correct, and the fact is that somebody is lying about it . Possibly, but the point is, carl icahn did not go through with the clorox deal. They have a problematic legal theory to start with. Second of all, the investigation has been going on for two years, which is interesting, so why leak it now . I dont have a crystal ball, but but i amtesting good at guessing the past 23 years. He did not look like a deer in the headlights am a Phil Mickelson, so i dont think the case is there. What happens next . It becomes somewhat of a nineday media wonder, but then it dies down. Nothing will happen. As we raced through the informationitems of that may be construed as material. This is not like three or four things. Law. Is incredibly complex they had an article in the New York Times. Unbelievable. You are taking a tennis lesson, a procomes up to you at the net and says my cousin works at a company. Is not thatthe law clear. That is a surveillance exclusive. Insider trading . He has got his priorities. Thank you, greatly appreciated. That was great. Here is our twitter question for the day. Do the rich guys like carl icahn and Phil Mickelson have an unfair advantage over the average investor . That is a fair question. Mr. Mickelson, and mr. Walters . Monday morning. We are starting with walmart. It is a winner in the fight between amazon and a publisher. Online book sales for walmart are online book sales for amazon are in a fight for book prices. Of the biopioneers business is one step closer to winning down. The price tag about 1. 9 billion. Employees have been holding off on Holding Since the founder died two years ago. The condolences going after your lunch money. They will start selling a grilled chicken flatbread today. Testing sevented new sandwiches. Glazed chicken flatbread. With the pink sprinkles. Are you kidding me . They are selling chicken at Dunkin Donuts . That is unamerican. But is healthy. We will take a very quick break. When we come back, investors searching for growth. Our guest host says they should looking at sustainable, not speculative growth. We will be right back on , onberg surveillance television, streaming on your tablet, your phone, and bloomberg. Com. A welltimes discussion, thanks to your comments on our clyde cook interview last week. Of the controversial and acclaimed capital will be on street smart at 4 00 p. M. Fox eu with a terrific response piketty to the allegations. This is bloomberg surveillance. Tom keene with scarlet fu and adam johnson. Scarlet go up and up. Whatever the case is, investigators enriches our speaking unsustainable are speaking on sustainable, not speculative. Grobart of Bloomberg Businessweek joins us. Sarah is laser focused. Ecb is already discounting what they will do in terms of rates. The markets have a kneejerk reaction defending on what they think the rates will be. But if you look at where we are in the u. S. , we definitely have less volatility, gross. Companies that have really Sustainable Growth not just momentum growth, i think the opportunity to invest in the next few weeks will be much better down the road. Is this like the fiveyear average growth rate versus one year growth. That dont know, more on the price of sales where youre not paying 30 times sales, companies that are deploying capital that might potentially pay a dividend and have grown over the last three to five years, so you are trying to separate tesla and versusof that world google and ebay. A quick followup are you , and so it is top down and you find individual names . A fundamental screen, so it is something that you want to hear you want to hold five years, but i actually think they have a business where the barriers are a little higher and the opportunity for capital to tow in this company and reward shareholders is better as opposed to if the market goes up 10, the stock will go up 20. We look for the alpha plays. The single greatness here for the crew has been use of cash. Do you just presume he continues . Yes. You have got to look at where companies are looking to deploy companieshether it is deploying capital back into the business or returning to shareholders. , when youbart interviewed the three leaders of apple, did they even once cash . N finance and use of they would never talk about that with me because my eyes would glaze over. But with a talk about that with carl icahn . Yes. This era of use of cash is profound. It is interesting because there are a couple of Different Things. First of all, theres so much cash overseas. All these companies do not know what to do with it because they bring it back, they get taxed. Now you have this period where the cache is not earning anything, so it is accretive to do something with the cash you but though you may not be making a lot of money, but it is making more money than. 01 . You tell them, i am going to split my shares, well, guess what, the Retail Investor loves that. That is certainly the cfos dilemma. We are in the Second Quarter and we will see what happens. Up in the next hour, former sec chairman harvey pitt in on theus to weigh possible Insider Trading investigation of carl icahn and Phil Mickelson. This is bloomberg surveillance. Good morning, everyone. This is bloomberg surveillance. Investigators are trying to figure out what caused the plane crash that killed the new owner of the philadelphia inquirer. He and six others were killed in a plane crash in bedford, massachusetts. Of thehe former owner New Jersey Nets and the new jersey devils. Juan carlos is advocating in favor of his son. Oversaw spains transition from dictatorship to democracy. He is 70 years old 78 years old and has Health Problems. He will be succeeded by crown prince felipe. In hockey, it will be new york versus los angeles finals in the stanley cup. They la kings defeated the Chicago Blackhawks 54 in overtime. First nhl teamhe to win three Decisive Game sevens on the road. Games, gameto seven one and game seven will both be played in l. A. . That is what i am holding onto. Let hope it does not go to game seven. I am sure the network wanted. Juan carlos never got enough credit for staring down franco in 1975. He stared him down, 24 months, at great risk to his physical presence. Must get to our morning reads from scarlet fu. This is from the New York Times, and they talk about you know you are lucky if you have a job, but the way they work is not working. Work, by tony schwartz. Needement knows employees to feel more energized, valued, focus, and purposeful, but they do not do anything about it. You said seats behind the rangers then she echoed that would help. Is one of thelogy stresses we cannot get away from. Thats right. If you think about the offices we work in, whether it is ourselves or our colleagues, there is stress to keep up with andthe different stresses technologies that are throw a bash that are flowing in, and you see people get left behind, and that can contribute to ones dissatisfaction on the job, which is as opposed to people who are more conservative more converses. Coming up, apples worldwide helpers conference will kick off today. Will we see any new product kickoff . Is the land of the new york rangers. It is in there somewhere. Very exciting. What is it, 20 years . For those of you worldwide who do not follow ice hockey, it is a huge deal. Dream come true in new yorklos angeles. Seven games, it will be crazy. Make a go ofngers it. I think the kings favorite and i hope you rangers make a go of it. I am tom keene. Here with me scarlet lundquist. E go into a busy week up, up we go. Up 2. 5 on the 10 year. Gold gets my attention. Ounce. R when theyre down one third of a percent . They finish up. We have sorted out and then it is like this. It does, indeed. It is just amazing. Fitness, home improvement, i should say home automation. Those are the big themes. Sam grobart is a writer at bloomberg business. What is the new here . The big rumor surrounding wwdc is health book, which is isilar to past book, which already on ios 7. The idea is that this would tight together different devices and accessories that would be capturing data about your body, health, movement, and pull it together in an organized sense seat can quickly and easily see what you are up to. I understand that conceptually, but why do i care what my pulse is on a given moment or my Blood Pressure is as i walked on the street, etc. . This is about creating a new market. Tot as when people used think, why do i need a camera in my phone, i am not a photographer, i am not taking pictures, all the sudden we all of aotographers sudden we became photographers. The same here. You become more health conscious. Is apple the first to break open this market . Set theook for apple to tone for the year at the Developers Conference. Apple is staking a claim in the ground, planting a flag and saying, we see opportunities here. Apple fans anded writers of code for apps that work on their ecosystem. Theyre going to want to follow the lodestar. Who is in the audience . Who are these people . Lets understand something. This is not a press event. This is not a media only event. This is the diehard Apple Developers who write apps for ios, they write code for the mac. Everything that is on your phone right now, people from those companies will be at this conference. We will be seeing a keynote later today, but the bulk of the conference continues for days after and consists of many Breakout Sessions breakup sections. Learning more about the operating system and the new changes. Other looking for any more partners in this . So much of apple is building the ecosystem. This makes the ecosystem Even Stronger and the barriers to entry are even harder. To the one more partners . They certainly did when they bought beets. They are looking at that and other things. Apple is very intent on the apple experience. This is one way, whether it is health book or whatever else they will announce to keep that going. Sam, there a theory here, that because we are getting an iphone six according to people like or genius at boy genius. Com , there is going to be some sort of preface to what is coming next on the hardware side . This is primarily a software event. Expecting, im not any big hardware announcement until later today. Well see things like updates to. Os, the mac os the second half of this year will be the big hardware moment for apple. Ne and dr. Dre are now part of management. Are you expecting something on stage echo at the conference . Is west coast, so dray will be very comfortable there. So dr. Dre will be very comfortable there. If you back to the old west coast east coast hiphop battle, dr. Dre would not feel as comfortable doing something in