You are watching Market Makers they let everyone in boston today. The worlds two Biggest Gold Mining Companies have hit a snag. According to people with knowledge, they had agreed to an old sock merger. What would be included in ace been off of australian and new zealand assets. There is the possibility it could be revived. Collections rising the fastest rate since the housing crash. They have set set records. Rose 3 tax revenue last year. Folks like and is signaling that it will once again in china. This for they beat out the very first time. To easeweeks agreement the crisis may be unraveling. More sanctions on russia could be coming. Want to bring in peter cook. He has the latest. Resident biden accomplish. Many say it is just for show. It is to a certain extent. It is a show of unity. But to thewo that neighboring countries who worry that they could be next on russias looks tear. That is one of the primary reasons he is going on this trip. He is the highest official to head to the ukraine during this crisis. They have not made enough progress on implementing the. Ill the deal over the weekend we had deadly violence as a check point. Three people killed. Both the russians and ukrainians blaming each other for a few is responsible. It is a dangerous situation that he is going into. Ukrainians are faring the attack over the weekend could be a pretext on the part of the russians to move even further into eastern ukraine, maybe bring the troops into ukraine. It has not happened yet. You better start implementing this deal. Perhaps more could be coming. Are these accusations that are being slung, is a growing more hollow enough that there is growing evidence that the s mighted activist actually be Russian Military operatives . It may be hollow but the reality is the prorussian in easternsupporters ukraine have not given up their positions as they were supposed to as part of the geneva deal. Will hold,if it there has to be some effort on part of the russians to will back. We have not seen that so far. It will be a major point on the part of joe biden. You have pressure from republicans in congress and some democrats calling on the administration to do more in terms of sanctions. Here is bob corker speaking sunday on meet the press your in unless they immediately began moving troops away we should be sanctioning some of the companies. I think we should hit some of the large banks. Certainly we should beat up our security relationships with ukraine. On theof those ideas are table for the administration in terms of options. If theow it is not clear administration is clear to take that kind of aggressive steps. Thank you. Were going to send you back to the cherry blossoms. Ukraine remains a volatile situation. Rather as volatility theres always the opportunity to make honey for vides you can get in and get out at the same time. But 850 million. Now he was in moscow just last month. To bob corkern saying not to react to the russians, what goes through your mind . Does ukraine become a more attractive opportunity or less . Right now it is pretty up in the air. We got invested in the worst of the crisis. Actually, we have taken some profits. The markets have been reacting with a lot of enthusiasm. There seems to be good news. When things come apart it all is. We have not hit the low prices we did before you ninkovich fled the country. You have the parameters. They are not that unattractive. Bgp is not too high yet. Things get a lot worse. In terms of buying in, i do not think this is the right moment to do it. We expected a bit more enthusiasm from the geneva court on friday. Given the fact that things have unraveled as quickly, this was built around what the russians wanted. To some extent there was hardly any requirement for them to do anything. Why was it unraveled . It looks like the russians are not negotiating in good faith. Hold on a second. They are not negotiating in good faith. Does not give you any positive he want to be invested in this region . I would not be in a hurry to put money to work in russia. That is where the impact is going to be felt. What we generally do, that might work out. The western countries are probably going to be coming back up ukraine to a large extent. Russia is a risk. Sanctions have been well thought out. There has been a lot of dialogue over the last couple of weeks. I would be very cautious if i were a holder of russia ethiopian attractive investment. What card could russian powers play . Optionnonnuclear nuclear is you should rush out of the payment system. You block their ability to transact in the international market. Transfer money in and out of russia . That is the ultimate card we have to influence, russia. What do you think the path the probability is . The probability is relatively low. The state treasury is pretty conscious of what might come as part of the sanctions. He had to make sure you do not put the whole system at risk. Would this not destabilize all of europe . I think there will be unintended onto quinces that would hurt a lot of people. In the worstcase scenario, you will damage russia by a lot venue with the system. Said, it is a nonnuclear nuclear option. You are avoiding russia for that reason among others. Youre not paying for the risk at this point. Lets say that western powers exercised this nonnuclear nuclear option. What impact would that have on ukraine . Lets see what the conditions on the ground in the east are like, how cohesive the government is. One of the problem in ukraine is there is not a lot of accord internally. A lot of people were trying to negotiating are talking to oligarchs. Walk in russia due to retaliate . Just jack up the energy prices, shut down the pipelines. That will kill there a company as well. They are absolutely reliant on energy. They do not actually have any leverage . That is one of the reasons Vladimir Putin is moving so hard. He has a losing hand. In two or three years you can start working on energy substitutions for western europe. There is no productive capacity in russia. They do not manufacture anything. They are not competitive in any way. He has a losing hand but he has brass balls. We have a winning hand it do not want to do anything. Who is weak . The americans . Europeans . S. American we do not have that. What was our real interest in libya . Saudi arabia . I could go one. I could probably sit there and talk there it. There are political reasons. I think ukraine is important. U. S. Does have some sense of maintaining the global cohesion. Understand isot why keep money at risk in ukrainian debt now . You bought in at the low. It sounds as though the scenario as paint makes it sound though the situation could easily deteriorate further. Why not just go back in at the lows . From a trading perspective, it is always good to have a little bit in the game. Even if there is some Downside Risk or it you want to make sure you are risk. You want to make sure youre paying attention. If you see real attractive opportunities, i think if there is sovereign integrity in ukraine and you start going to work political solutions, there is upside. Erm i think you will see downside. I would rather be in ukraine right now. Great to see. Thank you so much. The chairman and ceo of greylock hartness. Now we know what is thinking or doing. Deal or no deal. Acquisition talks fell apart. Whether they might be revived. The speakers that were once so controversial, the nba bans them. The story of three decades of air jordans. Ons is Market Makers bloomberg. Com. Stay with us. It could have been a blockbuster. Pfizer and astrid seneca. Held talks that for the moment are discontinued. If each deal gets revived in acquisition of ashes and that there would be among the largest ever. Lets begin with this. How serious were these talks . Isn we say in formal, it often hard to know how informal is informal . Lets look at what we know. In formal is the word that is use. They are not going on anymore. We have heard this number tossed around. It happened a couple old of months ago. I think we can characterize this as the type of talks companies do have all the time and we see bubble of now and then in our reporting and other peoples reporting. Sometimes they come back. Sometimes we never hear about it again. Why the big headline here . It is 100 billion. It could be one of the biggest deals in all a pharma history. Pfizer has been involved in these previously. Why a pharmacy. They do have a history of going for the megamerger even though they seem to have leaned away from that strategy recently. Why does pfizer want it . You look at what is going on and they have a couple of drugs that were expected to be blockbusters. They have not been. It has been kind of slow. Other companies are having this real success in a new type of cancer therapy, immunotherapy. Astrazeneca has a strong pipeline there that asked that pfizer does not necessarily. It is not just all financial engineering. What else . Not a nascentis business. It is still small. Pipeline that a on the future. What they also have is three that are all going to be losing patent protection or slicing off. Businesss a part of it that is the biggest signal revenue injured richard to pfizer. They sell in the developing world and middle income countries. It is a huge cash generator. They have a lot of power to leverage that. They could take all of these products and put them in the bucket. If we know that pfizer and werazeneca were talking, can make the inference at the very least that pfizer is looking at other potential targets . What they told us is that they are looking at everything all the time. Of course theyre going to say that. We are always in the market for interesting opportunities. Every time we see a possible candidate come up for sale we are always able to report out. Pfizer is looking reasonably serious. A lot of their money has gone to were buybacks. What we think is about 70 billion that overseas cash they cannot bring back. That needs to find a home somewhere. It is hard to know exactly where that money goes. That is interesting. To say theyre always in the market. I john have any hot dates coming up but i always want a new dress. The jet industry for bloomberg. Recurrenceudy raises concerned that the labor market is worse than the numbers suggest. Bite making will join us to give us the real deal. Mckee will join us to give us the real deal. Onthis is Market Makers bloomberg television. Hiring is picking up here at unemployment is coming down. We have seen jobless claims plunge. Why isnt anybody making more money . There is an intriguing new theory about why youre not getting much of a raise these days. What is this. . Asit has been slow as far paychecks. Lets go back 40 years and take a look at what has been happening. The yellow line is what average Hourly Earnings have been. The white line is the Participation Rate. As it rose in the early 80s, wages went down. We did not get as much of a pop. It was a slap supply demand western. Then we start to see the Participation Rate go down a lot. They are not holding there. Why is that . There are three popular explanations. The baby boomers are retiring. Two prominent economist gave inexcusable that their paper that suggested all of that is long. Finding that when you look at the graph of what happens in the various categories to the Participation Rate, they are not really declining. People are still in the labor force. What is happening is there are a lot of people who are unemployed waiting to come back in the labor force. That should be happening. Employers know that. That is what has always happened in the past. They know there is a large pool of available labor out there. Uscan you break down for whose tea leaves and should we read . I feel like you can look at the same data and depending on which economist everybody spins it to their own liking. What does it mean . We should see wages start to rise. That is what janet yellen told us last week. It gets a little more nuanced. When do we see that happen . The former treasury chief economist said it may take over then you aint because what were seeing in this recovery is people who love been out of work were a very short time, up to 26 weeks, are finding jobs much more quickly. There is the large pool out there for a very long time. Can i go back to a point you were making earlier . Disprove the theory that baby boomers are retiring and that women are not staying at home . They are not disproving those. They are major contributors. Do come down. Is not that when he saw the recession the only see people staying away from the labor market. These have been longer trends for they will not get in a magnitude to explain it. It discourage the workers. How about lets just have these fortune 500 companies with all this cash. Why dont they offer jobs and we will see where people take them . That is an interesting theory. We will put stuff in charge of economic policy. That would be exciting. Thank you so much for breaking this down for us. Courting up, the supreme make or break for the Online Streaming Service verio. Michael jordan has two share vp title on this team. This is Market Makers on bloomberg tv. Live from bloomberg headquarters in new york this is Market Makers with Erik Schatzker and stephanie ruhle. Welcome back. You are watching market maker. Pretty busy week ahead. We do. Dominated mainly by tech news. Tomorrow they will be defending the very existence before the supreme court. If a role in the favorite there is no doubt it would reshape the entire television industry. We could see the first step in the biggest ipo in years. Alibaba may go public in the next few days. Home Sales Numbers will be out there out the week. I want to break it all down. We are bringing on an expert panelist. He is a former board member at yahoo and ceo of the huffington post. He is a think tank for digital innovation. A senior economist at banc of america, merrill lynch. I want to break down across the board. What is your take . It goes out of business. I do not think you fight the 60 billion broadcast industry. I think it will get slapped out of business. The fact is the airways were granted to the Broadcasting Networks in exchange for Free Television for everybody. What they are doing at ariel is just capturing the Free Televisions and bundling it for you. I hope it does not go out of business. I think people want to be free of their cable boxes. Courttt think the supreme will shut it down. You make it sound as if you think they have a fighting chance. I do think. A lot of it is political. There was an act of congress that said if you want to use public airwaves to have to give it away for free. It comes down to this. The legal term is public performance. Have privacye it rights that go beyond the individual family. You might be right. They may get their day in court. Even if they say it is illegal, the broadcast guys are going to shut them down and find a way to basically stop their ability to stop sucking it down. Think theres too much at stake. Ask you tog to comment on the legal merits of aeros case. Standingustices in the way of innovation and is that bad for the economy . Innovation is a good thing for the economy. It makes it more productive and efficient. I am not a tech whiz. I would imagine there are new ways. You cannot stop innovation. We will try to improve whole technology. I ensure there will be something else. Even if they are the master napstert could you of today, how about the fact it is the innovator that is shaping the system. Guys that areny disrupting. It is being disrupted whether it is netflix or amazon. In this instance when disney you has found a suit against aereo and can figure out a technology, either they will find out a legal way to shut them down our technological way. Transmission rebroadcast, i think they have a lots of lobbyist. They are very powerful. Youre speaking rationally about the benefits of innovation. Im not arguing about what is right. At the end of the day, this company longer no longer exists. The attitude is anticonsumer. Areou are proconsumer, you going to allow people through whatever means it to just buy the channels they want to buy. Furthermore, people want to be able to see Live Television on any device anywhere, not tied to their homes. That is what people want. It is going to happen one day or another. People sayreo barry can give money to anything. Almost like a free option. It will deftly not hurt his finances. I think he is taking a stake in the ground. He is saying this will change. , i like toont mind move onto alibaba. The alibaba s1 is expected out this week. How exciting could this be . We think of alibaba as a combination of ebay and amazon . Yes. This is really tru exciting. One in three packages shipped within china. They originate from a transaction on alibaba. To give you a sense of the scale. I forgot you were on the board. It is going to say a lot about yahoo if you take the relative valuations, yahoo is the valued right now somewhere between zero and 10 billion. This filing is going to have a lot of ramifications through the digital echo systems. For the first time it looks like we have some of the engines in the same breath as amazon. It is the first truly multinational Chinese Internet Company to go public. Listed in others are the u. S. They are all local to china. Started out as a multinational by definition. There is the site that you could source. Project and equipment. Has global ambitions. It will have a fantastic public valuation, between 100 million and 150 billion. Maybe you have some comments on that. It will be a real power in our world. What does this say about the u. S. Economy that such a Massive Company will want an ipo now in the u. S. Market . I think it is a positive sign about the global economy. The hope is that Global Growth will accelerate and get past some of the weakness we have seen. Call. Is a sector that is what we have seen. This has been a slow recession. You have still seen opportunities for certain sectors to do craig well. What is it going to say about yahoo . Effectively, yahoo has in a tracking stock. If you look at the core business, it is not strong. Google andcebook and everybody else. It seems to be in some form of decline. When you look at adbased impressions, it is not a great business. The stock keeps skyrocketing. You still own yahoo shares. I do. Therefore i am a little suspect when i talk about that. This is a much bigger story about stopping than it is about softbank