This is a major escalation by the Justice Department. Without question. It is something officials have been hinting at for the last couple of months, maybe even as much as a year. The head of the division has said there are a number of prosecutors dedicated to looking at economic espionage. Everyone tiptoes around, whether or not it is china, everyone has assumed that is the case. This is a big deal. It covers as many as five individuals with connections to the Chinese Military. The first of its kind against a Foreign Government. These are for economic espionage and an official i spoke with is saying it is Household Companies you and i would be very aware of. You will see the attorney general, out as well as officials from the Justice Department. In terms of the relationship between china and the u. S. , the treasury secretary is just over in china last week area and you have a Strategic Dialogue going on between the countries. Ciber is one of the issues where the governments have major differences. Help relationst at all. We will see more on the reaction after the 10 00 a. M. Press conference. Storyg to our other top this hour, at t 48 billion takeover of directv. Alesci has been digging into the nuts and bolts of the transaction. Tell us what this means for the industry. They are trying to get their head around how to survive in a world where you have declining demand for voice and paid tv services. It is tough to see how that addresses that over the long term, because, fundamentally, people want to watch more and more video mobile he. It does allow mobily. To bundlelow them services and match it with a paytv product. From that standpoint, it helps them with the bundling. Maybe they really need to be in the game. Is that what some people are saying . Some analysts are saying they have run out of ideas. Lets put this into context. At t needs the cash flow. They have to support the . 40 dividend per quarter. This allows them about two point 6 billion of cash flow, at least that is what direct is throwing off right now. Plus, you have leverage with the content providers. You have another 28 million subscribers combined. That is going to give you a lot of leverage to bring down some of the content costs, which by the way, for directv, are pretty high. If you look at both satellite providers both erect and dish, they have both direct tv and , the deal will be to get the programming costs down. Down. Y are both this sets the deal part. You have seen both of the inquirer and target price go up. Investors are not crazy about this. Maybe there is some concern being crazytors not about this. At t tryrs ago, when to buy tmobile, they had to pay 3 billion breakup fee because regulators were saying they would not approve the deal. There is no reverse breakup fee. Off onans they will sign the deal or directv was too desperate to get the deal done. That is entirely possible. Thank you so much. 15 unless she our deals reporter. She raises a question. Alesci, she is our deals reporter. She raises a good question. Question, are there enough people in the sec and Justice Department to review these two deals. It complicates the comcast time warner deal. At the end of the day, despite the cry, the bid is getting air. The lobbyists i talked to expect this deal will win approval. Probably with some tough conditions. You have to look at the footprint for these two companies. They compete in one particular area. There is overlap. They have a 5. 7 million customers. They compete directly. At t has anticipated some of this and is making an offer to the government in this deal with directv, three separate items in the deal that are noteworthy. At t is committing to abide by the current Net Neutrality world rules that have been in place. Theres no obligation for them to do that. Comcast is the only one obligated to meet those requirements. They are also offering to expand Broadband Access to 15 million customer locations, particularly rural locations. That will be pleasing to folks in congress. There also offering to bid in a spectrum auction. It is a big number. There are some conditions to that. The government wants big bidding in that auction. That is another move at t is taking to try to sweeten the deal. To have anyoing effect on the comcast Time Warner Cable merger . Youll have a lot of public advocacy groups saying the bigger getting bigger. At the end of the day, it may help the chances for the comcast time warner deal. Someone else is getting bigger, but we need to be able to compete. It could be justification for comcast time warner. In pault to bring sweeney. I saw you nod your head when peter said it might help the merger. Is going to say, our central argument here is the broadband business, the paytv business, the telephone telecommunication business, theyre all consolidating and will look like each other. We need scale because of the innovation. The Capital Spending continues to go up. Are fighting in trying to compete against the overthetop, internet enabled broadband. We need the capital and the scale. We need to get bigger in the face of this new technology, i. E. , the internet. Does at t buying directv makes sense to you . It does. Many of its investors would have preferred of buying dish. They would have gone a lot of the valueless wireless spectrum that dish has amassed. That may be more valuable for at t, but the rationale for buying directv today is you get a tremendous amount of cash flow from their domestic paytv fund the which can dividend. You get the latin american business, which is a great growth story. Be one ofgen seems to the last people standing at the dance. Verizon may have to think about some type of transaction. Mentioned they would be interested in talking to sprint. Was adamant on the n attractivee are a company. We have paytv in the u. S. Will they be putting up a for sale sign . He said we are in a great position. Some point, somebody is going to have to go to them. Thank you. Moving and shaking this hour, Jill Abramson. We will hear from her for the First Time Since she was very publicly hired last week. She is giving the commencement address at wake forest university. Her supporters say she was fired for being aggressive and tough. Those are traits often upraised le workers. Abramsons speech begins at 9 20 a. M. Eastern time. You can watch it on our live tv td. Nel, bloomberg. Com v. Ryanair sought first profit decline in five years. Fares keep falling below single digits, which means the carriers putting more into making the Customer Experience better. Great to see you in the studio. What happened . Great news for customers. Fares fell in the second half of the year. Are up, forward bookings are soccer. I think we will grow more strongly coming forward. We started taking delivery of our new 180 boeing 737. I thought demand was coming back. Demand will always come back if your prices are falling. It is probably a reflection of the european economy. As we moveain signs through summer. I think it is looking good. Pricing for the first half looks reasonably strong. Our guidance is for a significant rise in profits this year. Based on fair increases . Quick some more services to , for bookingsts are so strong. How much can you raise prices . We do not want to raise prices. Our load factors have picked up by 2 percentage points. We expect that to go through the summer. We are already at 83 load factor. That will be a strong performance. Havent you been moving from smaller airports . Closing down some 200 plus routes in smaller airports . Of we are moving in some of the more primary airports. The primary airports are coming to us. You look at the ones in portugal, greece, italy, they are saying, come here, were worried about our flag curious. They will go bust our flag carriers. They will either go bust what do you offer . Whenwer fares and growth their flag carriers will have to restructure and cut routes and traffic. Switch. Lf was a they closed one airport in warsaw for runway repairs. Were moving back again. Does that mean you will be getting into more Business Class, the higherpaying passengers . Moving me product of market. We are europes number one airline. Like a lot of retailers, we want to move midmarket. Were are going after families, we are rolling out a family plan at the end of june. Will you do a Business Class . Not a Business Class, but fast track to board the plane first and off the plane first. They dont want Business Class, they dont want to be stuck on airports use. Queues. You said you would never be at heathrow or Charles De Gaulle in paris. How can you service the Business Class . To go to chooses heathrow. It is a nightmare. You have to. Not really. In progress airport husband. We will serve a lot of the main city airports, but we will avoid hubs, you losest so many flights per day per aircraft. The ones who are not connecting on to want to avoid Charles De Gaulle and heathrow and they are switching to ryanair. You will never be at those airports . Never. Michael oleary, the ceo of ryanair. Where target shopper will target shoppers stay loyal . Plus, we will take you inside the room where starbucks determines whether coffee is good enough to drink. It is like tasting the best wine. It is a lot of fun. We will be back. Achieves 60bank million shares sold, raising 11 billion. Hans nichols spoke with Deutsche Bank about the sale. To get one step ahead and preposition ourselves with a buffer. That would put us in a strong position. Was why 8d question billion . There is no science to that. We started with a ratio of 9. 5. Hans joins us now. I must be talking about banks. When you look at Deutsche Banks argument, it is essentially one of timing. There will be new changes in europe later this summer. That could be litigation costs. He doesnt quite know what those litigation costs are going to be, how big they are going to be, or the impact it will have on the bank. Listen to what he had to say about it. Bank continuehe to do business with banks that face a criminal play . That is a hypothetical question. We expect theme, to plead guilty in the coming days. Will Deutsche Bank do work with Credit Suisse if it pleads guilty . A hypothetical question, hard for me to answer without knowing all the facts. Got my sound bite scramble. That was the one i wanted to end with. There are so many unknowns out there about what could happen in terms of systemic risk. Basic takeaway, they think they can be a global player, they have a once in a generation operation, fewer competitors, but they want to be an investment bank. You have seen that entire section be hammered. They are regrouping and will have more capital. The question is, can they weather the storm. One knows with the litigation costs are going to be. What did he say about a potential criminal indictment for Credit Suisse . This is the question i was trying to get out and i try to force him to answer the question. Would they continue to do business if Credit Suisse gets a guilty plea. He hid behind me i will not answer any hypotheticals. Onsaid it depends a lot circumstance. The context behind this is important. Hans nichols in frankfurt. Coming up, we will see if target shoppers are happy with the store after a big date of reach. Lust, it was a monster weekend for plus, it was a monster weekend for godzilla. You are watching in the loop. I am betty liu. Ge is seeking partners on its 70 billion bid for alstom. 17 billion bid for alstom. Campbell soup reported better than estimated thirdquarter earnings. It now expects sales to grow above three percent, down from a previous range of four percent to five percent. Godzilla towered over the competition. The remake took in 93 million in north america. Warners produced by bros. Bloomberg television is on the markets. Scarlet fu has more. It is time for futures and focus. Copper futures rallied more than two percent last week. That is the most since march. Joining me with a look at where copper prices are heading and how you can make money off the. Etal, greg binder greg, lets start with you. What is likely to move the price of copper. Correlation with other commodities, part of the risk on, risk off with other Asset Classes . The theme seems to be housing. If you look in the u. S. , last week we had better than expected Housing Starts in april. Lower yields for more affordable mortgages. 40 of the demand comes from china. China isng market in anything but stable. The central bank is rushed requesting lenders restrict on mortgage lending. The, combined with technical picture, which is still bearish, we have had a 10 but until in march, you get over 320 a pound, i do not think there will be any significant momentum buying coming its coming into this market. How are you trading copper . I think some of the weaker numbers we saw in prior months were due to supply concerns. It was not supply coming to the market. There was demand with a low interest rate. There are lower Interest Rates now. The numbers will be surprising to the upside. The weather has broken, but it takes time to get them to break a grounding get contracts in place. I think demand will rise. China has been stockpiling copper. I think they will continue to do that. Think you will see stimulus measures that will help that. Production has been increasing and copper. We want to be low on copper here. What is your specific trade . We want to buy copper, look forward to get to three dollars 89 cents, possibly four dollars. You are only looking at a risk and you are pretty much a 31 on reward to risk. I am comfortable taking that trade. The risk sidem first. We will want to buy copper, looking for 3. 89. If you buy copper at around 3. 18 per pound, it goes up to 3. 89, you have made it profit of . 71 per pound. The profit for the entire tree is really 17,500. When i look at where copper has been trading, it has not hit the 389 price since december 2012. You have a weak momentum picture. On what i said and maybe argue for his position, price in copper is weak and repricing gold is coming off of a relative low compared to gold. That could be an interesting. We want to get to our word of everyone knows what volatility means, but what does that mean in the world of commodities . Commodities are highly leveraged. Higher volatility, higher risk. Theres also high reward. A major theme in the markets is low volatility. Buys,es, currencies, everything is trading at a very low volatility level. In thecould be a canary coal mine. We are seeing an uptick in volatility. With the n breaking. Going look poised as under percent. Thank you. We are on the markets in 30 minutes. You, scarlet. Target reports earnings this wednesday. A big question looms should they recover from last Holiday Season toss a massive data breach . A new poll gives the retailer a little bit of good news. Just seven percent of people said they would reduce theres ending at the store they are their spending. Does this surprise you . No. Most people know the company will take care of it. Victim ofl been a credit fraud at one point. When that happens, the Company Takes care of it. You say, i did not have that charge and they say ok. You really do not see it directly hitting your pocketbook. Overall, it does. There were other surprising findings in this poll. How confident are you in target keeping your credit and debit safe. 15 or somewhat confident. It is fairly evenly split between the different measures. They were asked if it mattered that target got rid of the ceo. 84 said it made no difference. A difference to the company. They got rid of the ceo and the cfo moved up. They have were members taking over the chairman responsibilities. Cio Technology Person who came in from out time. The only person that is really there is the ceo, who has a new job. Aboutjust got headlines steinhoff. He is staying on as advisor to target through the end of august. He gave some of his pay details out. 13 million. Earn that is half of what he earned the prior year, but he does not have to get back and hands retirement benefits. Back. Ought to give more it cost hundred Million Dollars for this mistake. Is a problem with a lot of these companies. They need to get down on the floor. And articlethrough that came from an employee on gawker. Fire this employee wrote in to gawker and said the entire team except the cmo needs to go. Everyone was homegrown and targetized. The response of jeff jones, cmo of target. A said i have gone through range of emotions. Difficult, the speaking with honesty is a gift. He is one of the best cmos. He is a good guy. Sometimes you need outside eyes looking in. Especially when you have been a homegrown business. A good move. Tell you when you have rogue employees sending out emails to a log . The culture isnt respected, or it has gone on for too long. This will force them to change. It is a big breach with a big cost. Leading cash. T be this came at the worst time. The breach is a big problem, but that is not the only reason steinhoff will win. Keeping up,t been they have been choppy, online needs to get better. Freshness, they said they have lost that cachet. You can get a lot of things at target. Coming up, money is not everything. When it might be the right time to say goodbye to your highpaying job. We will be back in a moment. It is time for a look at the top articles trending on linkedin. Here is john abel. A lot of Great Stories this week. Including one from one of your engineers. He was a google guy and google people kind of do not leave google a lot. A few years ago, he was making a ton of money, have a lot of unvested stock, unhappy. No one was paying attention to him. He was saying this was the future and they were saying whatever. What does an engineer do . He made a spreadsheet and realize what his income would be in the following year and he looked at it and said that is not enough for me to stay. On