Mortgage applications. Old news. Trade balance is ancient news. It is not employment news. You go. Janet yellen is not paying that much attention. Hey, she is watching everything. [laughter] she has the star trek enterprise of dashboards. We call that the bloomberg terminal. Continue. We have time warner in the next hour. Chesapeake and aol. Cody for century fox. 21st century fox. What a shock that was yesterday. Wow. Topic at be a major bloomberg surveillance. We look at the transactions of media. Lets look at the transaction, which is your data check. Weight to the screen here. We will talk about that. The euro was weaker. On to the next screen. The vix shows some of the tension. The ruble is a big deal this morning. Over 36. L out. 105. Is under brendan, help me here. You spend a lot of time in brussels. What is nato going to do . Something interesting. More and more people pay attention, the foreign minister of poland, he is the one willing say that european leaders things that make european leaders uncomfortable. This shows that his pronouncements carry weight. Has about 20,000 soldiers massed at the ukraine border. Front page this morning. We look at the newspapers, we look at the web. Mna bids are falling through m a bids are falling through. Sprint is giving up talks about tmobile because of regulatory concerns. I never knew what people thought that would work. Exactly. Totally agree. To me, the shock is that wall street and the financial people actually are not listening to washington. Washington says something in there like, yeah, but. Softbank was determined that he would be able to provide an argument to change regulator mines. He backed off that stance. The original starter of the was charter of the sec about ensuring cop fcc was about ensuring competition. It is nice to see that they are willing to do this. They are saying, lets make competition happen and we will let the market figure the rest out. The airlines. Where were they . Thankfully, the fcc is not responsible for the airlines. [laughter] 21st century fox dropped its bid to takeover time warner droppedfoxs stock after word became public. We will follow up on that in a bit. It is interesting how these both can together. We have breaking news. Walgreens is looking to buy the remaining 55 of Alliance Foods that it did not own. This is valued at about 5. 3 billion in cash. This goes right over to our next front page. Walgreens has decided not to use tax address overseas. We are not going to invert. I swear. Are your fingers crossed . This is a Political Climate against inversions right now. If they want to do this, get it done right now. Wait until everything passes. Maybe do it quietly in three years. Dick durbin wrote to the walgreens ceo arching him not to go through with the texan version. Inversion. Version oshaughnessy, a shameless plug kabul walgreens with a 3 billion Share Buyback plug, walgreens with a 3 billion Share Buyback. We cannot forget about geopolitics. Has ordered his government to respond to sanctions. They could limit or ban flights over siberia by european carriers that are bound for asia as retaliation. It seems like he feels confident that in the future, they will not have to rely on International Commerce as a part of the russian economy. It is beginning to some iquique and whether this indefinitely. The correction is coming. This is directly linked with the geopolitical news. Yesterday was the first day where the geopolitics clicked in. The red circle is a correction down 10 . You can see how far we are. We have a ways to go. We have a ways to go. Same time, we have passed key Technical Levels and we are approaching. Once we get past the point, the losses could accelerate. Then we get to talk about the death cross. [laughter] dont make fun of the death cross. You have to take it seriously. Are you kidding me . Accept an will not trpoly or try our fully iopoly. Alec sherman is with bloomberg news. Walknly did we see sprint away, but there are changing so the guard in the c suite. What happened to the management last night . That becauseut sprint is not going to go after tmobile, the new strategy is to replace the ceo. That is a story we broke last night. That sprint isut going to hire the ceo of a ,ompany called bright star which softbank also has a stake in. He is close to the founder of softbank. That is going to be sprints new strategy. Changing a management. What is the why behind this . Why was he shown the door . I think part of the reason was that he had made the decision to leave. We thought the ceo of the merged company would be john leger, tmobiles ceo. The writing was on the wall that dan hesse he was going to step down. It is not a surprise that regulators did not like this deal. That has not been a surprise since day one. Did we have any sense of what the plan b was going to be for sprint . Drop prices orer invest in new infrastructure to expand the network. Do we have any sense of which they are going to choose . Not yet. Sprint is going to have to lay out their plan b at this point. There is a plan c i suppose. They could do some sort of partnership with another company. I know that dish network has that they would love to do some sort of network hosting, sharing, and have them pair up mobile and video, similar to what at t is trying to do with directv. Quickly, we have Craig Moffett with us in the next hour. Is this a massive victory for theington in just saying to entire industry, listen to us carefully, we want competition . Think it probably is, particularly in the backdrop of comcasttime warner cable, and attdirectv. Both of those deals are likely to be passed. At least washington can look and say, this one did not go through. They can say, we are not just patsies for total industry overhaul. Thank you so much. Our guest host for the hour he served as a member of the ipo task force that provided a report to treasury in 2011. As we take stock of the deals that have fallen apart over the last day, fox for time warner, sprint and tmobile, does the unraveling of these deals in this very hot sector, media, telecoms affect the market . I do believe so. I think we are starting to see momentum in the m a market. Both of these deals were not high likelihood to happen. I dont believe there any signal to a trend. Is it something with the players involved are going to come back when things quiet down a little bit . I dont think so. On the 21st century foxtime warner deal, the market reacted very negatively to that deal. The stock was down. I dont think they could pay anywhere close to what time warner was looking for. Is it possible that we are not looking at the financials of these deal, but culture and competencies . Maybe not with sprint and tmobile, but with 21st century fox and time warner, i think the culture clash was pretty big art of that. Was a pretty big part of that. We have seen a huge uptake and large transactions. In large transactions. What will be interesting going theard is the uptick in number of transactions. Our twitter question of the day, the unraveling of to jen or nourmousdeals big, gi m a deals, does that signal the top of the market . Lets get to company news. We start with more media companies. Walt disney pushed analyst estimates. They had to Box Office Hits from the Marvel Studios unit. Malein america and ficent. Frozen continues to deliver. Let it go, let it go all right, tom. Apple has accused samsung of copying iphone designs. Samsung says apple is using pieces of its wireless transition. Zillow reported record sales. It boosted annual sales forecast. Zillow announced it was buying last a last week trulia week. 3 00 p. M. This afternoon. Bloomberg television. Streetsmarts. At 4. Scarlet . Rupert murdoch withdraws his bid for time warner. For thes that mean future of the Media Industry . This is bloomberg surveillance. We are on Bloomberg Television. We will be right back. Good morning, everyone. Bloomberg surveillance. Im tom keene. Scarlet fum keene and Brendan Greeley. Adam johnson is on assignment. Be onmstrong will Bloomberg Television, in the loop with betty liu. Look for mr. Armstrong at 8 00 a. M. Rupert murdoch, 21st century fox withdrawing its offer for time warner. Time warner rejected the attempts to reshape the Media Industry. Matt campbell has been following the deal closely. A rare defeat for murdoch. Selloff and fox shares in fox shares. Implicit for now in the statement . I think he has shown that he is a deal maker, he is someone who has gotten what he wants over time. I dont it we can roll this out forever and ever. Is 83 years old. Presumably, he will not be at this game and definitely. That this deals is back on the shelf for the moment. That maybe thele fundamentals did not look as good as we thought they did . Maybe this idea that we thought this could be 1 billion was not feasible . It sounds again nice thing that is not necessarily rational. There was an enormous amount of scrutiny of all of the numbers and the suggestions that fox made about how this new business would be run. There is also a culture clash, as he were discussing previously. Time warner tends to be a differently run company that fox and news corp. There were financial reasons, regulatory obstacles, there was a cultural issue. This was a very hard deal to pull off an Rupert Murdoch has admitted defeat for now. For now, but you wonder what this does for the rest of the industry. Yesterday, Jon Erlichman spoke with the disney ceo about the failed bid. The offer that was made was not well received. Thatt must have determined unless time warner was willing to engage, he was going to have a hard time accomplishing what he wanted to. It is a tough thing to do under hostile circumstances. That rupertpeculate did not want to pursue it under hostile circumstances. I dont know that for sure. There was a lot we dont know for sure, but time warner remains in place because of what Rupert Murdoch did. As disney, cbs, or google have a play . I think that is a very interesting question. The genesis of all this was a rumor that both google and fox were looking at bids for time warner. Time warner has been very attractive. There was no brand in the American Media like hbo, in terms of turning out hit television over and over again. That is a big part of the story with warner bros. , of course. If we do take the view that content is king, time warner is sitting on some of the best content. You have to assume there could be others out there. We will keep an eye on that and come to you if there are any developments. Thank you so much, matt campbell, our senior deals reporter in london. That brings us to our twitter question of the day. Does the unraveling of two big signal the top of the market . Maybe the top of the market for certain sectors, like media, tech, and telecom . We want to hear from you. We will be right back. Good morning, everyone. Bloomberg surveillance. Markets continue lower after what we saw yesterday afternoon. Lets get right to our top headlines. Here is scarlet fu. New concerns about president s exit strategy in afghanistan. In kansas, senator pat roberts turned back a key party rival in the republican primary. Wolf. T milton hes the fifth republican senator to stave off a tea party backed challenger. The ceasefire in gaza is holding. Cairoators are meeting in to come up with a lasting solution between israel and hamas. Now we get to afghanistan. New concerns about the president s exit strategy. Green iseral harold the highestranking u. S. Officer to die in the war so far. What a loss. An exceptionally distinguished general. They are doing it everyday. They dont make the headlines. He was in charge of a lot of the training of people in afghanistan. Career. Istinguished this and this and this. He started out as a platoon leader. Rotc general. Exactly. A huge loss for the nation. We will have more on that on Bloomberg Television worldwide. The have been watching conversation online that began week inolumn last forbes. Stop calling people names. You will feel better about yourself. Boston university. I think that is a core sample. Horseapple. Oncan we say horseapple bloomberg surveillance . Lets go with hogwash. I think its hogwash. This goes back to Milton Friedman and newsweek. You cant do it by being bland, firing up the public. That is something we will discuss on surveillance. Are we in an ipo frenzy . Good morning, everyone. Bloomberg surveillance. There it is in hd. New york city. It continues. It is by far and away the nicest summer in new york city in ages. Since time began. It is gorgeous. It is gorgeous. Why are they rushing . This is bloomberg surveillance. Brendan greeley is with us. Adam johnson is on assignment. It does feel like backtoschool. I know. I would like to rotate out of my summer suits. Im ready to move. He is ready for the fall. Lets get a data check. We did have a little bit of a bump up on monday. That disappeared yesterday. The s p 500 closed at a twomonth low yesterday. 2. 4366. We have seen that yield come down about 14 basis points since yesterday at this time. Eurodollar. Euro weaker versus the dollar. The ecb is coming up. Nato headlines within the last 20 minutes. Nato says russia might send in troops under peaceful pretexts. Troops are coming in under peaceful pretexts. It is good they are using the word pretexts. That is strong diplomatic language. Dow futures down. Speaking of peaceful pretexts, that would be Investment Bankers within the m a frenzy we have got today. It is led by cheap money. Maybe not the year 2000 standards. Is uniquely qualified to speak to us about this differential between 2014 and another time and place for severn cisco finance. You were at montgomery for years. San francisco for years. Finance. You are at montgomery for years. I dont think we have got close to the ipo and m a activity that we had back when i was at montgomery securities. Focus on in the ipo task force that i was involved in is that we had over 500 ipos for years throughout the 90s. We have got to about 150 ipos through the last decade. What we were trying to do was record rack resurrect the small ipo. We are seeing signs that that is coming back. The ipo market anymore. The real ipo market is in fancy sure structuring share structuring. Maybe they sort of get a little bit give a little bit to the public. Is that like a different ipo market . The ipo market is really not happening with ipos. I dont think it is a different ipo market. We have seen smaller gap ipos comeback. Securities, that is what we do. So far this 28 ipos year. That is the largest we have done in our history. We focus on small cap stocks. That is an indicator they are coming back. It is fascinating, the data you give us. We are looking at average size per ipo. Tois down your today year date. Those are from real numbers that tell us that by focusing on facebook, we are ignoring the real story. The real story is 197 ipos. We had 240 ipos last year. That is getting back to a more reasonable level of ipos. I think the reception to those ipos has been quite good. We have seen very good performance in the ipo market overall. I have to ask you about alibaba. You the big bang corunna . I wish. [laughter] not going tos happen now. In the lead up to alibaba actually listing, is there going to be a dearth of ipos trying to get ahead of it or is it an instance where once the alibaba ipo goes, then everybody comes in . Nowhat were seeing right is the traditional slowdown into august. We usually do not see a lot of activity, especially in the second half of august. Alibaba will probably suck a little bit of the air out of the market as everyone focuses on that deal. It does not feel like it did with facebook and twitter. It does not feel like it have has as much focus. Rip up theg to script. I want to know how on the ground, how stupid it is in San Francisco right now. [laughter] whether it is really safe. How silly has it become . How stupid is that . Based on home prices, it is starting to get pretty silly. We definitely feel like we are in a different economy when we are in the bay area, given the amount of activity in the tech space. Tech firms moving into the city. Commercial rates going up for real estate. Havefinitely feels like we a very booming economy right now in the bay area. 2000ow does it compare to how does it compare to 2000 . I dont think we are there. Everybody was talking about their preipo company. Everyone was taking new companies public. It just is not feel like that. The best criticism i have heard is that you have all of this energy go into one Business Model, which is eyeballs for ad sales. Do you see evidence were moving past that . That there is money going towards companies that have a real plan for a real role in the economy . Of the sectors that has continued to be a good space for is a time others innovation in the software on demand. Look at some of the recent deals we have seen. Give us an example of one of the deals you have done. We have done a lot in the biotech space. Really . Stretch valuations. Yellenyou advise chair on her comments that she made . No comment. [laughter] i think she should stick to being fed chair rather than focusing on different sectors of the stock market. That is the bloomberg breaksclusive. Us. Lease tweet does the unraveling of two big m a deals, fox giving up time warner and 21st century fox signalup time warner, the top of the market . We will be right back. Good morning, everyone. Bloomberg surveillance. Futures, 10. S p futures, 8. Brendan greeley and for adam johnson today. Lets get to our top headlines. Here is scarlet fu. A United Airlines flight making an Emergency Landing in canada after a fire in its galley. It landed in halifax, nova scotia. A gang of hackers in russia may have made the biggest tall yet. Billioners stole 1. 2 sets of usernames and passwords. Thatecurity firm discovered is not saying what websites were hacked. Great. Between gangs and hackers and the kremlin is permeable and hard to define. [laughter] good point, Brendan Greeley. The second aid worker with ebola is admitted to an atlanta hospital. Both patients are being treated with an experimental drug. The high point of bloomberg surveillance. Four hours of broadcast. Single best chart. It is a convoluted single best chart. [laughter] one chart for four hours of bloomberg surveillance. Come on. Lucrativ