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