Guilty of plotting to hack phones while he was editing the paper. Head of the u. K. Publishing arm was the public face. Found not guilty of bribery and justice. Y courts of she has been cleared of all charges. So has her former assistant. All of them all clear. Rupert murdoch behind this and the days following three years ago. The News Reporter had hacked the phone. A british teenager was murdered. Actually one of the first casualties of the phone hacking scandal. He resigned as editor in 2007 after a reporter there was sentenced to prison for listening to messages on the phones of employees of the royal family. He was hired by David Cameron to be a media adviser for the conservative party. Cameron is the Prime Minister. He followed cameron but then he in 2011 after Pressure Group after an outcry from celebrities. You remember their phones had been hacked. Brooks cleared of all charges, as was her firm or just former assistant and has been. The former editor of news of the world found guilty in one charge of phone hacking. Thank you. Olivia sterns in london. The da William Dollar takeover of directv is under scrutiny on the hill today. Randall stephenson willis they will say the deal will mean more savings for people like us. Megan has more. Wantdo members of congress to know . What is their warning sign . Of the big questions, you just hit on it. We will hear those sorts of questions over again. We will hear from the at ts eeo. They will testify in the house and then really lay out their cases. This is a good thing for consumers. We have early testimony. By integrating directvs capability with our strength in broadband delivery, we will create a new competitor with unprecedented capabilities. Content costs by subscribers will be 26 lien dollars in savings three years after closing and it will enable at t to offer highest the broadband 250 million more customer locations, which a lot of members of congress have been pushing work. Neutrality is also a sweetener to the administration. We will hear a lot of talk about synergy and how it will put bundled pressure on packages for consumers. Ultimately, he says, drive cable. I have to wonder what the opposition says. 25 million subscribers here in the u. S. Alone. That is right. Consumer groups are focused on the paytv aspect. We will hear from witnesses represent that. There is overlap. 21 markets were at t offers tv services. Direct tv is offered in every state. There would be direct competition. At t vowed prices will not go up but consumers say that is not enough of a he. Lavette concern be addressed directly . Absolutely. They really focus in on the numbers. Directv and at t compete in some places but not in the vast majority of market. Play servicepure Service Still is not profitable because they have a lack of scale. . 60 of every dollar goes to the programmers. Their bottom line is that customers right now really one on the services and that is where their needs to be more. What does congress do from here . What is their role and after the hearing, what happens . Right. Pop in circumstance and a lot of arguments . The ultimate decision will be made with regulators. Doj will havee more say. There is a lot of oversight with regulators. There is power there. T t laid out its case the doj will look at whether there are antitrust implications. That is the stage where this will play out. You have got the time Warner Comcast merger, a lot more scrutiny will be given then you would see otherwise. Absolutely. Thank you so much. Moving and shaking this hour, tim cook. When it comes to iphones, go big or go home, according to people familiar with the matter. Apple riders will begin production next month. A 5. 5 inch screen, all the better to play candy crash. Cook is making big screen iphones. Also, going forward, the ceo announced he would step down in an exclusive interview, he spoke about every thing from a turnaround to the General Motors recall deal. What he did and what he might do after leaving his post. Confident he is leaving the company in great hands. s team created not only the products strategy but the production plant. They have had wonderful success and it has served everybody well. Mark will continue major processes going forward. Do you think mark will do Something Different than what you did . You came here and it was a revolution. The best thing to do in the eyes of the board would weaken to administration. Does he have his own changes . Createde entire team the process and the strategy. We are just Getting Started and serving all of markets around the world. We are restructuring europe and will be profitable. The u. S. Is doing well. There is a lot of opportunity for us. You say we are just getting darted. Days to be few more part of the week. The we. The assume you will be coming back . I will maintain many of the great relationships. Have fallen in love with ford i will stay close to them going forward. Mark is able to call you . I said absolutely, any time. A lot of times, i tower over people. I will miss the guy. He has been there for as long as i have been covering word. Employees gave him a standing ovation that went so long, it almost got awkward. They loved the guy. Why would they not . A lost 17 billion. Where will he go . Not been a lotas of time thinking about that. He is focused on ford and i believe him to an extent. He still schedules in 10 minutes a day to look at his options. There are so Many Organizations or corporations that could use a guy like this. A lot are talking about the veterans administration. They have such problems and it would be a real benefit to the country if somebody with turnaround talent could come in. Im wondering what words he had to say about General Motors. Him to sayever known a disparaging word about a competitor ever and he was not going to start yesterday or give direct advice. What he does day is, this is how ford does it. Asked managers and employees and guys on the plant floor to bring forward any problems they had in a quick and tiny manner timely manner. If gm had the same culture in the asked you years, they would probably not be in this same position area have had their mileage, and problems. It is an open culture. I take my road test in a few weeks. What will make me want to in the future . About nobummed out flying car in the future. The first was this guy for ford. Even self driving cars, alan did not seem excited. Cars are driving themselves already. He said it would be alternative and electric for now. Hydrogen cars will be the way of the interim. Thank you. We appreciate that. Turnaround, plenty of Companies Need one eerily will talk to the top turnaround x is coming up next. Traders a cookie . Traders play cookie . Hookie . For some, turnaround strategies have been put in place. Or others, working on controversy and industry challenges. I want to bring in my guest host or the hour who is also the managing partner who has guided several Major Companies through tough times, including hostess. A few companies i wanted your take on. First, american apparel. You have a founder booted out as withhow do you turn around that elephant on your back . Click that is difficult. The circumstances are probably different him up but he would not be the under the first founder who would come back in and take over after being ousted. It is hard on the company. Distraction at the ceo level makes it hard on your culture and you will have division that get created because of that. I do not necessarily know why he is waiting this because i do not know he would have much of a shot to win. I do not know what a winwin the in this situation. Another example of a tuou perhaps push for a sale of this company. Disrupting the day to day management for the bigger picture. In that circumstance, it is interesting. I know he is working with goldman and they are looking at all options. The obvious options to me would private and put a bid in, stock rises, so you could put a bit in. The other would be a private sale of interest. A sale that goldman would help them do. It seems his concerns are that they are not doing enough longterm men and that they are more focused on quarterly. When you are a public opportunity, that is that the right. The price as a founder going islic and aching that cash that you will be under the which one ofar. The companies has a better chance . Theululemon because i think rotted category they were the flagship and that category. American apparel is not a very take company. A lot of markets and a lot of these. Lightning inught the bottle in the fashion side very diffuse the right now in the land gate, it is death right now especially in terms of apparel and the younger market for this. They are all struggling. I want to turn to tax. Tech. Goldman sachs recently updated the stock based on the success of the turnaround strategy. Do you believe it . A great ceoan is and the question for comp knees like that, when you do a foraround, i am looking what market the business should be in to be success longterm. More that market is somewhat cohesive to where you have been, the easier that is to do. When you go further from that to what you want to be, and where you have been, you make it harder. Ibm is looking at cloud and the struggles they have had as and if neville. I do not know that the stock is reflecting right now that vision is perfect or that it makes a lot of sense. Seems like making decisions more important. Quest that is right. Reductionabout cost as a sole reason to do that. It is also noise reduction and vocus there it i tell people all the time that usually in the middle of a turnaround tom a your most limited resources your time and energy and focus of your management team. To the extent you are overly focused on business is that are part of that core. That will make it take much longer to get there very the fact she is doing that is a good thing. Quest who do you want to work for . I would love to fix the veterans administration. It is such a shameful situation for the country. To me, that is a blight and there is no excuse. Quest love would you do . Process,ly the same where you have to go in and figure out, what should you be doing. There should not be these wait times. Look at the end goal and once you figure that out, you step that is day, here are the incentives that need to be in lace. In some cases, literally, you just need to knock heads together. Quest veterans administration. Thank you or sticking with me for the hour. We will be right back. You are watching in the loop live on bloomberg television. Here are top headlines. General electric won the bid and also secured an order for the oil and gas industrys first 20 house and pressure for square inch. The equipment will help High Pressure and temperature reservoirs. Walgreens is reporting mixed quarter earnings this morning. Earnings fell short and the company said it is eerie and they increased pressure on its pharmacy business and will take company wise. R a top lot in london last night. The painting sold for 54 million to an anonymous buyer. It was not meet. The second highest rice paid at an auction. Bloomberg television is on the market. A mixed tag for futures. Action. T of market yesterday, a halted if they winning streak. We are still relatively onboard for a dallas 17,000 watts. Coming up this morning, a home price index at 9 00 a. M. This morning, more read on housing sales and consumer confidence. We will be back, mark again in 30 minutes. Midterm primary elections continued this week with voting today in six states. I want to focus on which results matter most and what each party has to today. Business,ans for big i want to bring in my manager managing editor. Restructuring x arts, mark laid out for us what is most important you could be watching . He is facing a state senator that is tea party backed. Big for the Republican Party. One is, what does it mean to be an appropriate or. He is running in part saying i could ring back federal money to mississippi. He is running against a Tea Party Guy who is saying, business as usual does not work. Nd we need to change things three weeks ago, he fell at little behind running against a state senator. Could lose the general election if he is the state nominee. Lose to theld democrats. They have a strong candidate. For people who care about control of the senate, this is a story about the math of the senate coming in december. They will lose around the country. I am curious as to will we he evenr voters, democrats . This time of year, it will favor the insurgent candidate. He has got his supporters riled up, Tea Party Activists nationally and locally. He has to look for new voters. His supporters are making deals thels favorite as fired up voters turn out and three weeks later, not much else is on the ballot. Christ they will not do this, we of the Republican Party, so i wonder what the congress is doing now. I think it is very scary. Business should be concerned. Is Obama Administration doing everything they can. Republicans are doing everything they can to not take it because of the infighting. Week agor issue from a is still probably reverberating. My question today, tea party stood for test enough already. Extremist stand for knuckleheads. What this tea party mean anymore . It has evolved into some that does not work within the party and it makes it very hard for john boehner and the party there now to get anything done. You have got to go race by race in politics and governance, you are right, you simply cannot be a part of solutions. Eric and are lost and cochran may lose. The reality is, taxes left the message of lower tax antiobamacare. To harness that energy. Deal with obamacare. However the Party Decides to do with it. Then in 2016, the party will have to decide. Are they a Governance Party that wants to build the majority . It has stillses, been a good year for the chamber of commerce and republicans taking the right nominees. Chrysler part of the ties to the does play a part . People do not like wall street or a lot of big is this. This is part of not only a Republican Party but a democratic arty. Has to figurean thisow you talk about big is as part of america, but also deal with middleclass voters. We are dealing because of unemployment and low growth in the economy. It is not just a problem for republicans. It is a problem for Hillary Clinton and president obama. Day, the end of the whatever party is in control and whoever is running, they talk about it and say they are focused on it. The arguments about wall street and big business, the only things that matter is jobs. You will not get housing recovery without jobs. You have to do something that fosters the environment, as opposed to regulating and dragging your feet on pipelining. I am not just picking on the Obama Administration. Republicans are guilty of the same things. Bringing back to my state. To be a broader jobs focus in this country from the top down. Not just the top. Thereir things needs to be three percent growth or higher. Until we get more like three percent growth, it will have to be a stalemate. We need longterm solutions. We leave it there. Thank you so much. Coming up, japans Prime Minister rolls the dice and is putting his prestige behind the bill to legalize casinos. The world cup eater has helped the financial market. That story is coming up next. Often tuning out of the stock market. Trading volumes are particularly announced when the traders own country is on the field. It makes sense. Powerhouses italy and england playing this afternoon, we can see how big their traders actually are. Has been breaking down the numbers. Has been breaking down the numbers. Are certain fans bigger fans . We deftly see that across the globe. Latin america stands out as being the place where the games are on, they are totally shutting down. We see the middle, a little surprising. Then the bottom. The graphic shows europe does. Ot just assess so much totally surprising. I would have thought for sure they would check on occasions. Christ you look at the data and sometimes what about england in particular . They have Something Different. England, regardless of what happens, they are the only country where the traders there will end up dropping trading volumes more for the other games than four games of england. In every other country, you will see the droughts are more when it is your own countrys game here it in the london markets, a lot of traders come from other places, they care more about the other countries. It will be interesting to see if people themselves are just not that interested. Time, so play the same maybe they will watch the italy game or so italy has a chance to advance. Why latin america . It is interesting. Chile is a great example. They dropped 9. 5 . An expert says because they were under dictatorship for so long, they did not have the ability to express their emotions. It is one place they could really let free. The present the president says, just worry about the game and nothing else. Really fast rate really fascinating. And greg, your joining us. Are you a fan . I do. I am just sitting here listening to eric and you gave the most rational explanation ive heard so far for the alltime lows. The news is, do not buy them until after the game. The point is that people are not paying attention to the news. It is how news is propagated across the markets. If people are slow to react and volumes are not up, that is all you can take advantage and get good trades in. There is advantage. I really want to get your opinion on fisa and perhaps even match rigging. How do you change an institution like that . Top. U have to start at the those are extreme issues to deal with. Anytime you have an institution, whether it is the ncaa or fisa, that has issues that go directly to the integrity of the organization, you cannot do it with the same team in control. You have to make a change at the top. Are we talking structural . You may need structural change at the end of the day, but to get there, you have got to start at the top and work down. Trying to say, we are aware and we will fix this and instituted new policies, it is ridiculous. Your integrity is what is at stake. Those types of approaches will not work. Do you find the organizations , do they tendsed to have more corruption than companies with investors . They tend to have more dysfunction. I do not know if corruption goes handinhand there it i used the ncaa as an in so many ways, it is a dysfunctional organization in part because of the way it is instructed in part because they report athletic erectors. They have a convoluted model that is not a business model. The same sort of accountability. Fans do not care. They sold all the tickets, so they are good to go. We have got to leave it and we know it you will do in the afternoon. Greg, youre sticking with me before you play hooky. News, had totest bloomberg. Com. Jam, thereit traffic may not be enough money to build the roads and bridges we need. Two new studies about sharks may keep you on the beat. This is why i do not swim in the ocean. Stay in the loop. Now Scientists Say conservation efforts will have an impact on the number of great right, which are on the rise. I am happy but i cannot tell you how terrified it makes me to go into the ocean. Another warning that is on dry land. Road00 a year for construction but the fund could run dry this summer. Officials are calling the transportation to school with the fiscal cliff. All of which have varying degrees of damage. Month, shall they move fast. The bottom line is known was injured and now we have got it open. Emergence the emergency repairs cost 80,000. We have projects all over the stay that depend on federal funding. If the federal funding dries up, have to bethose dried up. The Nations Capital resource for public road progress has been drained it could be drained by late august. Stuff that 18 per gallon of regular full regular fuel since 1993. Anthony foxx says unless Congress Acts quickly to fix the fund, states will suspend construction plants. Late june or middle of july. Some states already start to pull back objects projects. Most is get a majority of funds from a high of 98 in rhode island. Washington. Ock in 600 andridges is one of 7000 bridges in the u. S. Six and 7000 are rated structurally insist asian by the American Society of engineers. It has been estimated under trillions of dollars. Up album is even one we are at our most aggressive, were about getting the funding levels back to where they were last year. For more, i am joined by Phil Mattingly here and also with us, our guest host for the hour. This, is the to biggest problem policy or politics as usual creating so much tension in washington . It is tough to separate, but on the policy side, if your fix is raising the gas tax, a bipartisan bill which has been introduced, the senator of connecticut, a democrat, that is a large origin of republican commerce in both changes. Then you have to start throwing different ideas here. On the political side, if youre in texas, that is a major him. Different proposals but nobody has figured out how to coalesce and time is really short. What about phasing the government and bringing in companies to fill the gap . The conversation is headed towards giving the states more power. There is a proposal in the house leaving it up to the states on whether or not they want more say on where the money will go there it you will see their rule probably the something put in they will move on to get a longerterm fix. You will see the conservative lock on this is creating a lot of difficulties on republican leadership. The abilitystates to decide on taxes here, montana, wyoming, they may not ble to the it strikes me it is not similar from minimum wage. Every state is different. The majority of the usage of roads will be local and not driven. It will be more reasonable a solution to push back at the states and get more control. This is an argument that has not gained a lot of traction in the past years. It will steps that in on issues that private sector wants to work on. Lot arepeople a trying to figure out, if you give the majority of response will be to state, will states fill the gap or will we have something that will not be the federalut government . The big question is whether or not they can figure out a that. Al to solidify in the debates and months ahead, they will have to bring that to the table. Is not goinge anywhere, especially headed into the midterms. Thank you so much, and also to my cohost. Good to see you. Thank you for being here. Mashup. , a burger get hungry because the new master is ready to take on your classic egg mac. It looks good. They tuned for details. A whopper of a fight. The battle to decide the real burger king. The big mac, mcdonalds classic, has everything a fast junkie could want, including 29 grams of fat and 500 rookie 550 calories. The burger is being tested in southern california. Thick burger, two burgers in the title, weighs in at 790 calories and 42 grams of fat. The chief marketing officer admits it is an indulgence. If the taste if the test is successful, you can see Party Restaurants across the country. It does look good even at 9 00 in the morning. The hour. Inutes past we are looking at a mixed day for futures. The s p and the dow is off by a bit. European stocks at a oneweek low contributing to the sentiment we are seeing in the market area market. As the Supreme Court gets ready to rule on the legality of aereo, we will look at the possible outcomes and what they could mean for the way you watch tv. To thearable Technology Android tv, anyones guess what google will unveil tomorrow. We will have your preview. We are 30 minutes from the opening bell. Futures are little changed. The s p 500 coming off its first losing session in seven days. Executive rebekah has been found not guilty of all charges in that phone hacking trial. The former editor was found guilty of one count of phone hacking. Breaking news on the Real Estate Market coming out now. Home prices index is up 10. 8 year on year. Lower estimate lower than estimates and slower than the increases we saw in march. On a month on month basis up 2 10 of one percent, seeing a slowing down of home prices appreciation. Mike mckee has a read on those numbers. Is exactly what we affected that a little bit more click than people had forecast. The fannie mae for s four home price increases is six percent. We are still way above that. It comes in lower than people had forecast. If you look monthtomonth, not seasonably adjusted, there is an increase for the month. It is not too bad but you want to you and i on the trend. Home prices are not rising very this is a remember is three month rolling average that ends in april. You have march and have your ehouse rices in the number. Is asnot clear how are it far as what is happening now. We look at cities that have seen the most price appreciation last year. It is still the same city we have talked about. It is the cities that suffered the most that have seen increases. That is starting to level off. Thank you. David about the day after here. The dow and s p are those reaching more miles down. You have 2000 for the s p. Julie hyman has been talking to investors. Traders tend to care about the numbers. For big investors, do they mean any and . Mean something in that they have a big and momentous implication. In other words, there is a psychological effect. My colleague in bloomberg news, michael reagan, talked to a number of invest his compared it to turning 40, 50, 6 c, but it has a psychological importance of reaching big round numbers. You look at how much the s p and the dow climbed from their lows, you can see how him orton it is to get to that close to the milestones. 190 . P 500 is up the dow is up about 100 and 39 kerry for the dow, the amount of time between the big triple between 50,000, 60,000, and 70,000, they have in compressed to sonics and. In some cases, it goes up and then below the milestone again. What is interesting is we take a look back and the s p had a hard time going to the 1000 level there and i wonder if we will see that resistance this time . We could. A pullback in the next few. Take a look at what we saw going back to 1997 when the essence he rose to mind 50 and it took another eight months or so to get back. It rose decisively above that and then the financial crisis hit. It did not go back above it more permanently until 2009. If you look at it at a more addedtion perspective, he the s p 500 and if you compare it to the 1990s oh market, we are only in september of 1996 and the bull market went on for some time. If you compare it to that, we can see an upside deal even with the pullback. Thank you. Takeoverllion proposed is under scrutiny today. As one of the deals in the overhaul of the paytv industry. We are joined now with more. What are the chances the deal does not go through for at t . . Is it will go through. It is the most likely to go through. We have parties in the time Warner Comcast. Are looking at that. We macys rent and tmobile this year. That is the hardest sell because these Companies Directly compete in the sameher industry. On five percent of the country together. There are there is overlap. Directv is largely a a tv company so you are for the most are putting two companies together a do not compete with each other. What kinds of concessions might we see . One thing we have not been in any of the initial comment that have come out, or even in the that is comeent out, what will they do in the regions of the country where we have and could have directv . Chances are, regulators will not look kindly on this company owning two forms of a tv in the same market area they could price things theoretically. , will regulators take a stand and day, were ok with the deal but we have got to something about the heart of the country. Maybe, you even need to pull television and make it a broadband for that region of the country. It will be good for us and lower our those. That is contingent on whether at t will get competing deals. Is that realistic . At t, and said they will get better deals. Even 20 cost energies involved in doing the deal. At t was linked to the deal. If you are like the cable tv guys who have an around for decades, you have gotten good deals. Then directv and dish came around but they had been around for 20 years. At t universe has only been around for 10 years. This deal will allow at t to pay lower rates and theoretically could pass around those cost savings to subscribers and that will be the case they make. I will believe it when i see it. I appreciate your up date. Staying in media, the Supreme Court may rule this week on the legality, a decision which could me now with aning look at the possible outcomes of this historic decision. I want a broad take on what happens if area actually loses their the company says, i have got no plan b. Five at is true. That to us and what i find fascinating, it is not a surprise. The upstart taking on these rate broadcasters, they have got nothing else. What is interesting to me is that the broadcasters collectively not that they have not thought about the issue. Theuse you have got so many ayres collectively going after aereo, we forget we each have their own businesses and strategies. Were in a position to listen to a soup in court ruling and find out all of a sudden ariel is ok and can see with the business, which is a sickly on hold, that would in interesting especially with consolidation and paytv players and better leverage with deals with broadcasters. They will perhaps transform into cable tv channels. They may launch their own streaming service. This is the idea we have heard of. They cannot do this overnight. This would be a strategy change. That is true. They have much of ours they could play. To battle thisue on the regulatory front, stay with the the follow the rules that other multichannel video distributors have to follow and acs. They could fight this in congress and to your point, on the business that, they could say, if area will do this, cbs will not be broadcast anymore. It will be a cable channel. There is a clash says there will still be millions of evil watching through an oldfashioned antenna. I think you are right, it does not change overnight. The Supreme Court has been under pressure to come forward with something. Possibley cost bull for both sides, and in that case, maybe this core battle does continue. After what we hear from the Supreme Court initially. West not to mention, if anything comes up for aereo. Jon erlichman is watching area for us. Coming up, waiting to see what is next, we will get a big clue at the Big Developers conference that starts tomorrow. Stay in the loop as we head toward the opening bell. Googleds annual developer conference kicks off tomorrow in San Francisco and many wonder what the giant has up its sleeve for the event. Are even talks of an android tv being in the works. Joining me now on what you can ask that, gregg harper, a major tech elector. If say tech geek is that is ok. Is the wearable holy grail tomorrow for google . The big problem is that all of these as some on the phone and manufacturers. Thatt wearing samsung gear it needs the samsung watch. The new android wearable software, will allow it to work with any android device. That opens the market. We will see new watches. Motorola has a beautiful round one and there are now tiles them in. We will get more functionality. Is there a risk for google as they make their own breath hardware system . Their hardware games are to try to push the market forward. They will try to make deals with other people like that. No one is really talking about the google watch. , thatre is one, google is not their game. They want to build their game. That is what the android where is all about, tightened immigration between your phone and tablet and device. Apple has a tendency to look at what the market is doing, work on it and come out with a reasonably good product based on that. They want to get ahead on that curve and not follow. Pressure from of apple. It will probably be a curved screen but we do not know. What are you running on your is google glass, the latest version with designer frames. Piece. It used to be two pieces. I have been wearing these for over a year, last year in april. This is the latest version. His for both men and women. You can buy glass. Will it enough for someone mike me, not a total tech geek, to buy it . If you want to be cool. Aside from wearables, it seems android tv will also be a big thing here they already have comcast so you have to break it down for me. Google tv did not work out well at first. They tried to get into the ecosystem but had a problem with the rights for the companies that own the product, the content. Ist they are trying to do bring it more into the apple tv type environment or what amazon now has, fire tv. Product, 35. Great. It is somewhat limited. Make a distinction of what google wants versus what amazon wants versus what apple wants. Amazon is all about getting you into prime, getting you to so you can9 a year become a member forever and remove the friction buying anything. Google is all about the search and tying it in and making revenue. They want a better experience on the tv. Apple is looking for a total ecosystem and things tightly integrated together that keep you into the apple ecosystem. They have different gains they are going after but remember where they make the money. Google makes money from advertising. Fascinating. We will have to check in with you in a couple days. Thank you, yellow card prevision associates. Ramping up the battle with sams son, get ready for the biggest iphone ever. Looking forward to that. Moving and shaking this hour, japans Prime Minister taking a big that on casino gambling. The ruling party wants to pass with legalized casinos before the gains in tokyo in 2020. The integrated resource though was submitted to parliament as a lawmaker sponsored one and deliberations have already begun. , hope in my capacity as leader we can aim to pass it in the next extraordinary session. When i visited singapore on may 30, i found how the integrated resource were making resorts were making success there. They are expected to provide great contribution to tourism and reasonable regional economies and industry. It can be one of the key elements of the growth strategy. We are a few minutes from the opening bell. The top trades you do not want to miss after this break. Welcome back. It is 26 minutes past the hour. Bloomberg television is on the market. Starlet has more. We have a mix to read right now on this. Steam after ast sixday rally that pushed us to record highs. The consolidation will extend into a second gain now. Home prices in the u. S. Rose at a slower pace than forecast. Another read on new home sales coming up at 10 00 a. M. Eastern time. Well prices are weaker this morning. Trading at 10603. Iraqi forces regained control of the refinery. Leading to speculation that violence in iraq will not be as disruptive as initially field. Gold futures up. The british pound below 1. 70. Which is not rising as asked as and since they did. The bank of england raising Interest Rates coming back a little bit. Thank you. Lets count down to the open with the top 10 here the only trade we need to know about. Julia joins in as well. The retailer pledged in february to increase hourly wages at 10 in 2015. Getting a lot of attention from god job seekers. Old navy chains at least 10 from a year earlier. Number nine is dean foods. The company in connection with Insider Trading with our icon. The u. S. Authorities are reportedly investigating the case which involves phil mickelson. Number eight, the doortodoor cosmetics plans to eliminate 600 jobs in an effort to restore profitability. The latest round of job cuts would save the the company 6. 6 million a year before taxes. He operator of the 1950s style car hop restaurant reporting a 50 jump for share with a better than estimated rise per share. It plans to add 1 thousand drivethrough restaurants within the next 10 years. Magenta. The company had a 14 billion takeover bid. This is according to people familiar with the matter. A Quarterly Health who preliminary toss in the last few months before they decided against the deal. Allergan, the botox maker with a house bill takeover bid from valley and pharmaceuticals. A report of secondquarter results in late july or early august. An interesting development. Micron technology, number four. Reporting fiscal thirdquarter profit sales that defeated analyst estimates. It seems it has seen strengths in all products. Number three is elizabeth arden, the Cosmetics Company announcing a restructuring land including cutting jobs including down a regional affiliate. It will return businesses and grants for margins and profitability. Pharmaceuticals, the combination of the drugs significantly improved lung function on patients with cystic fibrosis. They will seek approval of the treatment in the u. S. And eu based on the results of these late date trials. A number once. Is walgreens. Been hitting has its goals for 2015 saying his decisions will be made with a partnership for a booze. Its earnings did fall is call, where does the secular bull market. The rally has lasted a long time. The s p hit record highs. There is more to come. It is good to see you. Good to talk you. I like to take a look at history and get a backdrop as to where i think things could be going. I like to see if history will repeat or forget the words. It is saying that he still have the potential of recording even greater numbers of new highs. 1940s,ck to the late we have seen an average of trading days in new high territory. Near, but that is not actually true in secular bull markets. The average is been 9 . We still have new high days to be seen. One of the things that is different is midterm elections very in i know star what has been looking at what stocks might be doing. The stress is historically the worst. Of the president ial cycle. The s p 500 has lost 2. 5 . Stocks have recovered from those stumbles here in there is still time. Predicts a five to 10 correction. 16 010, the s p tumbled from april until july. Is this going to be a trigger for the big correction . That is a possibility. The me add to what was just said. We have gone 32 months without a decline of 10 or more. The average is 18. The median is 12. On the perspective of going a long time without a decline, we are there. Good years sent to follow great years. Those years after gains of 20 have stumbled. We have posted a 10 gain for the whole year. It is not inconsistent to have the stumble in the third quarter, which is the worst quarter of all. We can still recover by yearend. What is interesting is the correlation between Consumer Discretionary and Consumer Staples. You are looking at what that tells us. This year, both of them have underperformed the market. We are seeing some defensive groups to better. Utilities, because of the high dividend. If you look at the Consumer Staples group, and has it is up 4 . Discretionary stocks are the only group that is actually lower on the year. There have been a lot of retail problems. Results inll four the First Quarter due to the weather. Discretionarys are expected to handle he outpaced staples. They will double in terms of earning growth. If stocks are discounting, one would expect these discretionarys would be performing that her. What do you make of that . Is this ratio something that we need to ignore now . We need to look at it with a grain of salt grade julie is absolutely right about the staples in discretionarys underperforming. A lot of people look to discretionary versus staples as a rising trend. It is a risk on a trade if the reverse is true. That sph be isr, a better risk. Has made the industry is less than one. A lot of them are more Consumer Staples in nature like restaurants. But to other areas of the market and they will continue to show that that the trend is your friend. When youre looking at this data, what tends to do better at this stage of a bull market . Middle to thehe latter part of an economic expansion. Industrials and energy tend to start to improve. Inflation becomes a bit more of a concern. To what you are finding is financials and Consumer Discretionary, which had been the leaders over the last five years, are the ones that are starting to take a backseat. When the rally runs out of steam and we make a shift, how brutal is it . How far do we go . Take the stairs, bear markets take the elevator. The market can decline it. We are trading at fair value. We are not overvalued. These are not compelling either. To use the rule of 20 which , if we do get a decline it will be a correction and not a new bear market. You are like the guru of all statistics. Thank you so much. It was good to see you. Get ready for the biggest iphone ever. Details on what the tech giant is trying to keep up with the smartphone cup edition. If youre looking for a job or a house, go west. That is where the growth is. Ergo n the loop these are the top tech stories on our radar. Get ready for bigger iphones. Building phones with larger screens. That change will be noticeable. One model will have a 4. 5 inch screen. Preordersxpecting for one are brothers tvs. Pricinge involved in a dispute with the studio. Ff. Y are still in the stando twitter is denying that they have decided to block extremist accounts in russia. Twitter said it has been showing russian officials how to report illegal content so that it could be withheld. You can catch all of the latest in tech and media only on bloomberg west. Of the frontier and to stake a claim and make your fortune, all of that is gone now. Michael mckee says there are still laces out there with opportunity. He found the fastestgrowing cities in the city have that go west song in my head. Buy a lottery ticket. He did say, go west, young man. That is where we find the fastest growth. All of the Fastest Growing cities, are on the other side of the mississippi river, including four of the top five. Led by midland, texas. H w bushhere george made his fortune. It will grow 8. 4 next year. That is kind of unbelievable. Also on the list, naples, florida. Then st. George and provo, utah. All of these numbers come from a new study by ihs. Iny just put it out connection with their latest meeting. Among the big cities, texas leads the way. Austin tops a top 10 that includes three cities in the native states. None of them are in the north or the northeast. Driving the growth is construction, mining and fracking. The report does warned that lowpaying administrative and support Services Jobs are expected to be the fastestgrowing. You may go west but not make a fortune. It does quantify what the people in texas have been arguing. Low a right regulation state, you get growth. Tech is moving to austin as well. That is why the california cities have the same thing going on. Who are the slowest moving cities . Probably dont want to be east of the mississippi and you dont want to be in upstate new york. Five of the 10 worst are in upstate new york. It is something of an irony. The biggest and most important city in the country is new york city. It has a gross metropolitan product that is double the size of the next largest city, los angeles. Country, itwere a would be the 13th largest economy in the world. We are dealing with for savage changes and the law of large numbers, it is large for things to grow the bigger they get. If you take the 2. 4 increase for new york for the rest of the decade, that is 29 billion. Midland may have a faster growth 1e, but that is just billion. You can understand why new york is growing. Mckee, thank you so much. The gasext front on war. Details are coming up on a new pipeline. Stay in the loop. This video of polar bears swimming in the arctic is one more example of how the camera has changed our perspective. It is kind of amazing. Look at the stunning picture taken with a gopro camera. The camera was trapped to a polar bears neck. It would catch some of the rarest footage of wall versus and polar bears in the wild. Prorussian rebels are calling a ceasefire in a fight against government forces. A truce was announced for days ago. Visit putin will Vladimir Putin will visit. Agenda will be talks over the gas pipe on the contacts connects russia to new york. Russia supplies the eu to heat 80 million homes and it uses three main routes to get it. One of those as a lot of people worried. But they have a dispute with russia over the price they pay for gas. After an accident this month, the reliability of that supply is a concern. What if the accident wasnt an accident . What if russia wanted the dispute . It is a russian ploy to convince the eu that it needs other solution. Russia is planning a new pipeline to europe. It would travel under the black sea directly to bulgaria, serbia, and beyond. It is much more reliable than countries. The eu hasnt leapt downstream yet. With supply uncertain, that may be about to change. We have more on this story. Are they having any luck in getting this pipeline approved . I can assume it would take a long time to build. The answer is yes and no. They signed a deal for their part of the pipeline. As far as the austrians are concerned, it will go forward. No, because the eu you as a whole has not blessed the deal. The eu doesnt like the idea of individual countries agreeing with the russians. They feel the russians are playing the countries off one another. At the end of the day, the European Union is not to diversify the supply of russian energy. It is more about diversifying away from russian fuel. It is not approved yet. That is a great point. Out, putin iss asking for resending the use of force. Is he angling for Something Else . I think so. Interesting that he made that comment just before he left for vienna. Calling onbeen russia to resend that authorization. Saying is doing is dont need that authorization to use force in ukraine itself. I have no intention of using troops in ukraine. That is something that the European Union wants to hear. We dont know if the parliament will agree to resend the authorization. This is something that may save his bacon, if you will, in the week. Merkel, shed from thinks there should be more sanctions against russia at that meeting. She says putin is not doing his part and is destabilizing the crisis. How divided is the eu over that . They are very divided. Putin is going to a nonnato country. That is what austria is. They are the kind of country that would argue against war sanctions. Look like they are ready to argue for more sanctions. Policy, whatrgy the russians are trying to do is play the countries off one other. In the eu, they have to do it by consensus. This is why they dont do an awful lot. Thank you so much. We appreciate it. That does it for today on in the loop. Betty liu will be back tomorrow. They are in detroit today. That he is talking to them. It will be a jampacked show tomorrow. Stay in the loop. It is 56 minutes past the hour. We are on the markets. We are 30 minutes into the start of trading. We are two minutes away from the new home sales report. We have a mixed day for stocks. A record high. This consolidation has moved into a second day. Home prices rose at a slower rate area we will get the housing data in five minutes. We will get more later this week. Oil,u take a look at crude it is down just a hair. A very little change. Bit more little the conflict in iraq wont disrupt Oil Production as much. Mark carney is a saying that wages are not rising as fast as expected. It is more than five years old. Many are wondered how much longer the bull market can last. The legsn says it has to keep running. He believes that it is possible that the bull market could last another 10 years. Another decade with average yearly return of about 10. 5 . For the next 10 years . It is possible. It is not nostradamus. One of the big linchpins in his. This bubble during the turnofthecentury. He looked back at other lost decades. In 1982 and one and in the 1940s. Following the lost decades, there have been strong, sustainable rallies in stocks. That is how he came up with the 10. 5 return. Its interesting that he would include the rebound after 2009 as the last decade. You also mentioned demographic trends. The aging of our population has led a lot of people to think about the continuing bond rally. Ishe thinks dividends competitive with bond yields for the baby boomer generation. Theyre looking to build up the nest egg. The children of the baby boomers will start to come into stock soon. That part ofhing the aging spectrum. Is he the only one out there making this kind of call . I havent seen anybody make a longterm tenure call. Laster was a hard year for all strategists. The market rallied so much last year. It was about 17 away. He was almost right on the money. He was only about 2 away. We are looking for another 10 years of this bull market. Dwyer is the most bullish analyst on wall street. He has a 25 target for the s p. It was pretty low coming into the year. The theme there is dont fight the fed. We will be back on the markets in 25 minutes. Market makers is next. This is a bloomberg exclusive. A Bipartisan Group warned that the u. S. Is in for deadly flooding and dangerous heat if something is not done about global warming. We will talk to one of those behind a startling new report. Polaroid wants you to get the picture. The companis