They have ended services that toow them to send money their families. It is all linked to a crackdown. We begin with another cross continent deal. Will payaniel medlin 3 billion in cash in their biggest takeover ever to acquire wild flavors. Hans nichols is more on this megadeal. They make capri sun. Wild flavors was started as a German Company and is now headquartered in switzerland. Downstream, some of their products include capri sun. As thethink of capri sun drink other kids got to drink because it has unhealthy artificial coloring and flavor in it. Lo and behold, this is part of a natural food company. This did turn into a bit of a bidding war. You saw a Japanese Company try to get involved. Some swedish private equity, as well. 65 is owned by the son of the founder. He takes a big chair. 35 was kkr. It is part of an overall story of go local, go healthy. Report a drinkt story unless it is vodka or beer. Because concession capri sun is so intertwined in my childhood. How does this position Archer Daniels . Cher it gives them a foothold in europe, or another foothold. We have seen a lot of m a activity in the last six months. Some of it is tax related. U. S. Companies looking for place to park cash to gobble up assets. This is not one of those. Adm were to take over this company and then hoard quarter it headquartered in luxembourg and filter their taxes through it, it would be analogous to pfizer and astrazeneca. This is not that. This is a company that wants more of a toehold in the Natural Market and the foods market. Hans nichols, thank you so much. It is a big week for the market. Watching murders mergers and acquisitions. Futures are poised to open lower. Kicks off the earnings season unofficially. Unemployment drops to the lowest level in six years. This causes speculation that the fed may raise rates earlier than expected. For more, we are joined by joe keeley who covers the markets for us. Last week, we were building up to the jobs report and unemployment numbers. Now we are back looking at earnings. Alcoa is the bellwether for how the economy is doing. Expectations for the second quarter. Theyre very high. Bad First Quarter with the bad weather. People are inspecting big things. We could see a pullback from the record levels we have. Are we at the Tipping Point . If we dont see blowout secondquarter results, does that mean it is time for a correction . Call it a not correction. People are getting back into the market. We have written about people coming back in and putting the market forward. Everything is sensitive to all of the event risk we have and all of the event risk we have right now is about the warnings. What are people looking for as far as warning signs . If we start seeing big bellwether Companies Come in under expectation. Thate fed hints at all they are not looking as much as at the economy as they are asset levels, maybe they can start looking at that as a reason to raise rates sooner than later. Would do you read into the Market Reaction to what was a positive jobs report on thursday. Went straightape down on wednesday and then i went back up. Expectations are so high. In order to move forward, it is going to have to be something. We saw some really good numbers and people got their head together and went into the weekend higher. Thank you so much. Joe ciolli a bloomberg news. Of bloomberg news. This hour. Shaking tennis player Novak Djokovic ended a run of three straight losses in major finals by beating Roger Federer in five sets to win wimbledon. The victory propelled djokovic back to the number one ranking. Earlier, he spoke to tom keene of bloomberg surveillance. This is the best quality tennis grand slam final i have ever been a part of, playing against Roger Federer. The great champion. He showed why he has been so dominant and successful and why he has 117 grand slam titles. Won 17 grand slam titles. I did not do much wrong. He kept it up. He took the match to the fifth set. In the fifth, it could have gone either way. I had many moments in the match when i could drop the concentration and allow him to win. I have a little pep talk with myself and try to encourage myself and find that inner strength and that carried me through to the triumph. To be that inner coach. Also moving and shaking, espn president john skipper. They have seen record viewership during the world cup. I sat down with him for an exclusive interview where he talked about the expectations he had surrounding this years games. We always think it is going to be like this. Of course, it is spectacular when it is like this. When it all works and people are paying attention and watching. Digital has been important for us for a long time. This is a big day off. For watch espn interdigital platforms. Preparation lot of into this, much more than you have in the past, is that right . Is, overall. Ly a lot of these games happened during the day, particularly on the west coast. After the 2010 world cup, we learned that people were watching. They will move their mobile devices use their mobile devices to watch the game. We put a lot of preparation to make sure you could watch the games on whatever device you have, wherever you are, and that it works, and that it looks good, and that the quality of the production is fabulous. Now you can watch a game on a little phone and it looks great. We will have much more from john skipper. We will tell you what espn has learned from its world cup coverage. Displaylockbusters staying power despite a performance at the box office. We are just getting started. Did you watch the games over the weekend . Argentina, brazil, netherlands, and germany are all advancing in the world cup. It meant another wild weekend watching soccer on espn. The espn president john skipper is extremely happy. Thisys that planning for years coverage started years ago, taking lessons from the 2010 world cup games in south africa. We applied a lot of lessons we learned in 2010 and we took it up several notches. The documentaries we did, all of the studio shows we did, the amount of international talent. We just decided everything that worked in 2010 will work better because of the time zone, because of brazil and how special it is for soccer, because more people are coming to soccer in this country. Our average Television Rating is up 39 , despite the fact that that is up that much, the digital viewing is through the roof. This is already the most streamed sporting event of all time. We are now 70 beyond the sochi olympics. We will be more than double the sochi a lump x olympics before this is all over. That was the high water mark. Over 3. 3 million for the u. S. Germany match. 3. 5 million for the u. S. Belgium match. But you capitalize on that . We are capitalizing on that. We are selling ads against those folks. He sold more . This is always the discussion. [laughter] the selling rating should be higher. This very aggressively. This means we are delivering. It did not go off without some glitches. As you know. I have checked out on twitter to see what some people have said well they were Live Streaming. Espn stream bad and getting worse. Can we start a kick start a campaign to buy espn more server time . We dont need more server time. I think it is remarkable that the problems have been tiny given the volumes. Im sure that tweet came from the u. S. Germany game where we had a small number of people have some issues with the technical. 99. 9 of people have had a very good experience. You log on the next game and i promise you it will look great to read great. We can handle an enormous volume of digital users. We have served an enormous number love videos during this. A lot ofurveyed participants during this. We can handle scale. You can say that you were wellprepared . As prepared as you would have ever been . Yes. Your research is correct. There were some tweaets. But it was tiny. Iressa been great on this. Can you keep this enthusiasm translating into other Live Streaming events . I dont think there was any doubt. This record will be broken. People are getting used to the idea that they can watch their live games on whatever device they have, wherever they are, under their control, and that is going to keep going on because the importance of watching sporting events live. The world cup race. You are not going to have them in 2018 or 2022. You will not have the rights. You really are a spoiler. [laughter] concentrating on what we have here. It is going to be a great event. Tocourse there will be some not having it, but that is the capitalist system. We will pertain you continue to participate. Does it make it bittersweet . No. It has been so fun and so great. All of our people are doing such a good job. Im just going to enjoy it right now. I dont think we need to be bittersweet about it. The want to bring in founder of College Sports tv which is now owned by cbssports. Chris, great to see you. Thanks for having me. What do you think has changed with soccer . Why this year . The whole sport has been invested in by mls. U. S. Soccer. They have invested hundreds of millions of dollars over the last generation. Now, with the Way Technology is shaping the world and allowing people to see soccer worldwide, the sport itself is lifted up. It is a growing sport. Just joking with john skipper about the serious fact that they will not have the world cup rights. That speaks to the bigger issue for espn. They have more competition now. Going into this space. They have cbssports. It shows a big the category of sports is. Espn is theif leading brand in sports and i dont think anybody would argue that they are not, the rising tide will lift all boats. The more investment that goes into sports and that is what is driving the paytv ecosystem in the Advertising Industry in the u. S. , the fact that more companies are investing in sports, that only helps espn. Does that mean that these sports rights and we saw the whole saga around the l. A. Dodgers, does that mean that the sports rights will continue to go up or we also at a Tipping Point where there will be more and more pushback . It is a marketbased economy. At some point, the market will sort out what everything should be valued at. I think in general, sports will continue to accelerate in value. Skipper said he was outbid basically. Very robustt is a business for sports rights. They are very unique and they are scarce intellectual property rights. Live. Sports is going to stay right at the center. , the streaming. Streaming is great. They are saying tons of people going online. Doesnt that eventually undermine what they are doing on cable . No. I think it may be the opposite. What john is referencing is just portability. Portability inside of the media ecosystem, especially with a Live Programming like sports, is really what is driving all of this growth. The Big Companies like disney and espn are working with distributors to create the tv everywhere product that you hear him referencing quite a bit, where you have to be an authenticated subscriber to Pay Television and order to get access. Does that mean that you can toll charge 5. 5 per month your cable Tv Subscriber . So far it has meant that and then some. Where do you think espn is going to take this world cup success, the streaming success . I think they have to continue to work with his two beaters. Distributors. About 50 of consumers know what tv everywhere is. Is that good or bad . They will say that that is a win. Not long ago, it was 10 or 15 . That it is know seamless and you can watch on any device what is the biggest obstacle . It is a marketing challenge. There is still friction and how the behind the scenes authentication works. The more the distributors and programmers can simplify it so that consumers know that they can watch what they want to watch when the want to watch it on whatever device, that will take a little bit of friction out of it and it will be much better over time. Thank you so much. Good to see you. Up, bill gross big bet. All in on low Interest Rates. He is betting 200 million of his own money on that call. The bulls are on the loose and pamplona. It is quite a boost for the economy despite the danger. In there watching loop. Live on Bloomberg Television. Good morning. I am betty liu. 600,000. That is how much the population of pamplona, spain can increase during the running of the bulls. Next monday. Until it has gone on for four centuries. 15 people have died in the running of the bulls since 1924. Thousands have been injured. Here is a look at our other top headlines. Archer daniels midland has made its biggest acquisition ever. It has acquired the maker of the capri sun juice string, wild flavors. Japan, they have issued an emergency warning for a typhoon. The storm is expected to come close to okinawa tomorrow. Not many people went to the movies this weekend. Ticket sales were down about 50 on the same time last year. However, the new transformers movie is still the Box Office Champ for the second week in a row. It brought in 36 million over the weekend. In second place, tammy brought in a little more than 21 million. Bloomberg television is on the markets. Matt miller has more. Is very exciting day to be looking at the markets with what happened last week before the holiday. Gold keeping our eyes on as it extends its decline off of the threemonth high after the unemployment rating dropped it. Joining me from princeton is ken hoffman. Strategistief market at the cme, bob iochino. Why are we seeing gold prices decline . Gold has been very interesting. It is stuck at 1300. It might go above 1300 briefly or below briefly. It has a dip and take between asian buyers. It never gets very low. Gold has been stuck here at 1300, waiting for a reason to break out of this range. Breaking out is going to look like down, right . Because the fed may move its Interest Rate increases forward. It is still a year off, but is that the case . I think the u. S. Is out of the game right now. I think you see china is reducing its dependence on financing. A lot of people bought gold to take advantage of high Interest Rates in china. Now the government is ending them. On the other side, you had the Singapore Exchange which is about to introduce gold trading for the first time. They expect that to be a really big deal and that will come out in september. You have a real push and pull. I just returned from asia. Everyone is talking about gold and a lot of traders moving into singapore and hong kong and shanghai. There was a lot of excitement about gold in asia. Is the u. S. Out of the game here, bob . On a couple of levels, i dont think it matters. I dont think it matters to fed policy. I think the economic conversation is going to continue. The fed is going to be behind the curve. I dont think that economic conversation is going to affect the fed. As you see the dollar strengthened, i think you will see gold suffer from that. You will see the breakout to the downside a lot of us are looking for. Having said that, kens range is dead on. As a trader, you can trade that range. You have to be very nimble. You have to sell rallies and be ready to get out. Not reverse that, but get out and look for the new range to be set. Youhat is a big catalysts look for . Any potential developments that could move us out of that range . Aren the upside, you looking at geopolitical risk. People forget the hurricane season. We have weather risk. If the weather continues to be absolutely nuts as it has been over the last couple of years, you just mentioned the typhoon warning in japan, china continues to possibly slow. Other than that, you are looking at a breakout economically. We have to start looking at the u. S. Possibly getting out of recovery mode, potentially moving into expansion mode. If that happens, dollar strengthens, gold falls. I want to get to the word of the week. Open outcry. Tell us what we think about that phrase in this new day and age of trading. Open outcry if you have ever seen the movie trading places is the people sitting on the Trading Floor yelling at the prices. Aree are very few pits that very active anymore. But it is really important. Often tradingare for their own books and theyre keeping the market in line. When this all goes electronic, a lot of people are worried that when these traits go electronic, you could see a lot more volatility in the market and people not stepping up to take his visions in the marketplace and that is the big fear and probably the big reason that open outcry has lasted as long as it has. Thanks to those people keeping that tradition alive. [laughter] thanks for joining us. We are on the markets again in 30 minutes. Matt, thank you so much. Lets stay in the markets. Pimcos bill gross has wagered almost 200 million of his own money on a bet that rates are going to stay low. With fridays surgeon payrolls many banks are going to make the bet that rates will rise. I want to bring in mary childs the covers pimco for us. This is another one of bill grosss wild calls . I think so. He is making this new neutral thesis very public. Other Central Banks will not have the ability to change course. This is a way to express that view. If you think that Interest Rates will stay where they are, that means the value is not going to plummet. Now, there is a discount between the Net Asset Value and where you can buy the shares. He is planning on that narrowing and being rewarded on waiting for that to happen. He is betting his own money. 200 million. Out of a guy who is worth 2 billion. Out of his own pocket . Out of his own pocket. He has had this bet on for a little while. For him,ot a new bat but he really has ramped it up lately. He added about 60 million in the past few months. What has been the reaction among his own investors, but also of Market Investors on this . People look at this pet and they say that this is a very levered bet. The reason it works is because of the leverage inherent. If you believe his theory, you say, yes, we have it. It is a home