Then Merrick Garland, very secondspected, on the circuit. And paul watford, on the ninth california. Of so you have an Indian American an africanamerican, and a white guy. Stephanie the republican pushback has been we do not even want to hear it. The fact that president obama is putting forth three candidates t should be acceptable there is so much strife in d. C. David he wants to say this is a respected person. All these people have been confirmed with bipartisan support. So he will say, i dont understand, you voted for them, and now you are against them. The number two part of the dynamic is saying you do not want to confirm at this time. What if someone like Hillary Clinton is named president . They will not appoint somebody who is nearly as centrist as these people are. Do you want to take number two or take someone that you know right now . Stephanie david, this is your house. You used to be part of the Supreme Court establishment. Obamahows if president gets this through, he is representing progress. One of the reasons we have seen if president obama can demonstrate that come it is a big problem. What is behindt door one or door two . Clearly, the Republican Party will try to spin this against him. How do they do that . David we should put up the pictures of the three we talked about so that you can see what they look like. Weekend with some fairly senior republican strategists who said the republican position may change, depending on who he nominates. They may have to recalibrate and say wait a second, this person is a reasonable pick and we can live with this person. Republicans. Jon i just wonder what that means for donald trump and he is not what many people consider to be the face of the Republican Party, so how does he respond. What does he tell his supporters . Has got a message for his supporters to how does he spin it . David it will be a fascinating question. Donald trump has been nothing if not unpredictable. I would not put it past them, depending on the nominee, on saying i think that is a good nominee. Stephanie if theres a question who is a candidate, who sits in the middle people have wondered if it is a clintontrump race, he you may see people gravitate toward clinton. If donald trump can say i am the guy in the middle who votes on issues and not with a party, it would be a positive for him. David it also could potentially put him on the side of saying i am fed up with washington gridlock. Part of the job in the constitution is for the president to nominate and the senate to confirm. Put them on the side of lets move forward. Stephanie think about all those people who support donald trump. They sit far, far to the right. What will they think . Matt miller, what do you think . Matt i do not have an opinion, i just want to show you market reaction. There is not much in futures, but here you see the 10 year yield has come down a little bit, so investors are selling are buying a little bit into the fixed income side of things. I also want to help explain to viewers you mentioned part of the Supreme Court establishment. To tellit is important people your experience there. David Merrick Garland i clicked with him on the Second Circuit and at the Supreme Court. Guy, a very smart and able guy, as i am sure all three of these are. These are very serious candidates. It is a reset for a moment. His pick for Supreme Court nominee, at the rose garden today, president obama will undoubtedly come out with an individual. Now i believe we are joined by greg store, our Supreme Court reporter from washington on the phone. Greg, we have been talking about these three likely candidates. Why dont you give us a sense of what this means for the court. Greg any of the three would shift the court significantly. You can see them as being close nominees froms president obama, kagan and sotomayor. At least for now, they are to the left. Srinivasan Sri Srinivasan spent time at the attorney generals office. That represents the government in front of the Supreme Court. Do you know who picked him, who hired him . It was ken olson it was ted olson. Who represents apple now and also represented president george w. Bush in the fight against al gore. Srihinks the world of srinivasan. Greg he is very highly thought of among republicans and democrats. To make clear, while ted olson was the solicitor general and hired him then, that was not a political position. The political position that he was in was in the obama administration, where he was the deputy solicitor general, and then he was arguing the more politically sensitive cases, including he argued a portion of the case challenging the federal defense of marriage act. Earlier tothan asked take us through the process. The president announces the nominee in the rose garden. The next step is trying to get hearings. I expect that the white house will orchestrate congressional summit demonstrate Congressional Senate democrats will orchestrate, at least by i think the white house will do everything they , and Congressional Democrats will do everything they can to make this person seem like a nominee that actually should be considered for the Supreme Court. , our that is greg stohr Supreme Court reporter, from washington. We are waiting to hear from the fed, by the way. Stephanie people are working overtime in d. C. Today. Matt we do not see a lot of movement in the futures market here, so s p futures are almost unchanged, as are the dow and nasdaq futures. Very Little Movement there. That is appropriate considering what we see the market due in the last couple of days and weeks. Take a look at the bloomberg. I have a chart appear, number 592. What you can see here is nyse volume drops to yesterday, the lowest volume day of the year, and volatility also drops to the lowest level of the year. So very calm market ahead of the fed decision, and do not expect a lot of action during the day either, until the decision comes out. Traders turnuter off their algorithms. What the fed usually puts out is too complex for Computer Trading programs to digest, and act on. So a lot of the big funds that are using these algorithms turn them off to stop trading. Stephanie it would be great to look at oil because oil was something that we did see up 2 yesterday. Surprised we will see this opec meeting happening. We are seeing some level of progress there. That is a positive announcement. Matt lets take a look at oil right now. It looks like we have a gain of 2 . We had backtoback drops for the first time this year, so the concern about iran has played into the price of the beginning of this week. E now see a rebound from oil we also see a announcements from clutter that they would have matt that is why we have a little bit of a rebound here. We also see a gain in the european market. You could connect them to the oil prices because markets have been so correlated. The cac has turned down, but little changed there. The dax is up. 3 of 1 . European markets have come down throughout the morning. Jon you could pull up Deutsche Bank very quickly. John cryan speaking in london at the moment. He says this year will not be profitable. This year will not be profitable. I think for many people that confirms what they expected for 2016, but a big headline nevertheless. Down 3. 9 as i see things right now. For those who said we are seeing stabilization, a turnaround, when you look at voices like that, the ceo of Deutsche Bank and ubs saying hold your horses, that is definitely a sober moment. Pull bloomberg up behind me and you can see what happened to the stock after john cryan made that statement. This isy a big drop or a live cash trade. Frankfurt is open. So Deutsche Bank is falling this morning, and the bank stocks are such heavyweight that they really pull up, they really pull down the indexes. Take a look at some of the stocks that we are watching today. Oracle came out with a profit that beat analyst estimates. Sales were roughly in line, but the component of sales that come from Cloud Computing was a strong gain. Stephanie that was always a question. Can you see oracle shift to the cloud . They have such a Massive Customer base. The question was, were they sitting in ancient times oracle makes that shift, that is a big positive. Matt and then you see Peabody Energy down 33 down a mere 3 . Raising doubts about going concern there, so possible bankruptcy. My producer said there are doubts about it. David the market cap is 74 billion. Couldthe equity holders lose out, and they have already lost almost all of their money. If you invested in this company at a thai, you have lost more than 95 of the value. Stephanie i like to end on a high note. Coming up, as matt just mentioned, a merger of exchanges being announced today. Boerse be the winner . We will be speaking with the ceo. Hanie julie this is the boomer business flash. It is a merger that will create a trading tighten. The german companys stockholders will own the majority stake. It may not be a done deal. Regulator still have to give their blessing. Charter to medications plan by e warner cable is about to commissions chairman tom wheeler is expected to circulate a draft order this week approving the deal to that is according to the wall street journal. The sec shares of sony climbed the most in a week after the company priced its Virtual Reality headset lower than rivals. It will cost 399. Its virtuals priced atlity has site headset 599. China has finished up with a premier outlining plans to cut back over Growth Industries in china, sticking to the target of six point 5 . You know they love those targets. His optimistic speeches left some wondering how substantive these plans really are. Here to break it down is Morgan Stanleys hagan of economic equities. What do these remarks set . I think they reveal what really has been the problem in china. There is a contradicted this has contradicted their growth target. Why does china have a growth target of 6. 5 . In 2010 they randomly decided they needed to double the gdp by the end of the decade. That has no basis in economic reality. The chinese economy is too large. For it to grow at 6. 5 , they have been tacking on far too much debt to make any path sustainable. Problems really been a with china, and why the last three to four years i have been relatively bearish about chinas Growth Prospects. David there is a lot of debt being carried on Balance Sheets that is not worth it. What do you think of his emphasis on reform . He says he will do reforms without laying off a lot of people. Is that doable . We were very optimistic on china in the 1990s or 2000 because they were doing the right thing. The 1990s. T china laid off millions of workers to try and clean up its bloated state enterprises. They have the capacity. They have shown in the past they can carry out major reforms, but you also had the tolerance of having a lower growth target in the mid1990s. And you 93, 1994. China grew at a slow pace because they wanted to achieve the objective. Today what is going on is, doubling the gdp by the end of the decade, having a growth target. They would not tolerate anything lower. It is like in every quarter you have to get we know that the economy is not even growing at that pace, but even just the effort to maintain this optical illusion, they are banking on record amounts of debt. No emerging market in history has taken on as much debt as china has taken on in the last two units. That is what concerns us. Jon lets get Deutsche Banks stock up on the screen. Deutsche bank now down 5 in german trading. Itn you have the ceo saying may not be profitable, let me read you the exact quote. We just dont know. Theres a lot of stuff we have to get done this year, but we are not going to be profitable. The stock down for 4. 9 . Talking about investment banks. A tough revenue environment, not just in europe, but globally. How is that going to improve this year . Are in a much weaker growth environment. Across the world, this has been the weakest economic recovery in history. It is not just a u. S. Issue, it is a global issue. This is the pressure that will keep a cap on equities in the coming quarter, given the fact that weve just had very little revenue growth. Stephanie we are watching the default probability yet again jumping. It was just a few weeks ago we were sitting at ecb and Deutsche Bank was getting hammered. We saw better numbers from other banks. Its not like theyve had a good year to start. Matt the shares down 5 behind me. David they lost the e off of the name. they cannot afford another vowel. , you can seen drsk the default risk here. It is minute. 5 . You can see it has come down a little bit here at the end as the share price comes down. Stephanie it is in the default space that you can trade such massive you can see this blowout today. Matt an interesting screen to watch, drsk. Jonathan whats really fascinating about this, we look through 22016, the ecb will come in and buy nonbank corporate debt. 2016. Ough to they could get paid if they lend a lot of money as well. It may not be profitable this year because they got so much stuff to do. Would it lookt like had mario druggie not stepped in last week and helped these banks . Sayingber sitting here this is a good morning and here we are five days later, ouch. David thank you very much for being with us. We will have the feds latest decision in a News Conference beginning at 1 00 p. M. Eastern time. They have agreed to merge this third time. A deal has been attempted. The merger would create one of the largest exchanges in the world. The ceo joins us now from frankfurt with more. Great to have you with us this morning. A lot of people turned around and said merger of equals. What does that look like . For those who say that does not exist, what do you say to them this morning . Thank you for having me. It is truly a merger of equals. We both recognize and appreciate each others strengths. The management team, the boards have come together through executive developers saying this is what weve done, reaching an intermediate result. Jonathan we looked at how Deutsche Boerse shareholders, what do you say to them . Setsthink the business between the companies are kopelman three and the growth that has been driven is deeply impressive and that has resulted in expansion. The business sets between the companies are complementary. Is extremelyon productive into the future and we both know that we must gain scale in order to be globally because we are roughly half the size compared to other houses in the rest of the world. Jonathan you will be a whole lot bigger after this. If youve managed to convince shareholders, how do you convince the regulator this is a good deal . What is the conversation you are having with them as we speak . Have there have been approaches made to a number of regulators already. Others will be approached in equal. We seek Regulatory Approval from many different authorities in the world who all have to contribute to this transaction to become successful. I believe, overall, it adds to price formation, price transparency, systemic stability. Many of the really important issues in the postcrisis and financiald architecture, so overall, we are very well set up to have those conversations in a constructive manner. This is a ringing endorsement of the city of london. If we wake up june 24 and the u. K. Has voted to exit the you, does this change the calculation of this deal in any shape or form . Carsten it does not. The transaction is valued creative and constructive and yourll the objectives met respective of the outcome of the referendum in the united kingdom. Irrespective of the outcome of the referendum in united kingdom. It will not matter to the transaction objective. Most people expect another player to come into the field. Are you willing to involve cash in the steel to make it happen should another player come in cash in this deal . Ten there is a player who has announced they might consider. They are looking at it. We are currently just occupied enough with spending our time on , whichrticular proposal is an all share agree to transaction by the boards of the respective companies. This is what we are considering right now. We will go stepbystep should anything else transpire. Jonathan i just wonder if you can improve that deal, would you have to sell assets to do that . How constrained are you buy the leverage ratio in the Credit Rating . Rsten really, we are not considering that at this very moment. I apologize because we believe the transaction we have tabled is extremely valuable for customers, shareholders, and manys, employees of our other stakeholders within of necessity to gain value the transaction in the terms of runup formation in the that comes as the vision of the Capital Market union within the Financial Markets. We are focused on what weve tabled right now and we will look at other things later. Jonathan lets talk about the regulators. If they get together and they are not convinced and believe you need to dispose of more assets, which assets would you dispose of . the group is stable and indeed has been stable in its form and shape for some time. The entity you are referring to has been on the Stock Exchange group for a number of years. And is working extremely well. Int gives me great comfort the contributions that this part of the group makes to the overall. In terms of any Regulatory Approval, i dont want to prejudge them. Arguments reasonable for this to be actually enhancing and increasing competition on a global scale. Finall