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tv   In the Loop With Betty Liu  Bloomberg  January 30, 2014 8:00am-10:01am EST

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to lenovo.orola -- selling motorola to love a enovo. >> amazon set to report record sales and probably puny profits after the bell. see what jeff bezos is after. the ceo of used-car chain automation has a verse that have a surprising answer for us. >> two sets of earnings in the last two minutes including visa and time warner cable. interesting results from both companies, particularly where the economy is right now, both companies telling us quite a bit about that. why don't we start with scarlet fu, our chief market correspondent, about what is going on with visa. moving rights are now, and eps for visa, to dollar $.20 -- $2.20.
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we know a lot more people are purchasing their items with plastic. that helps greg -- that helps the south. they get paid a little bit every time, so when they get back plastic swipe. the forward-looking encouraging for investors. that is interesting was time warner cable because on the metrics, everything looks great. earnings per share beating analysts' estimates. plenty of cash being generated by time warner cable, people like their dividend stocks right now. the question here is -- why did the company's subscriber base start falling? this is something we're seeing quite a bit from time warner cable. it is not the most loves company. a lot of customers complaining about the service, yet these eddie cash flow has attracted the catch -- the interest of charter communications. >> we talk about things that might be happening with netflix and so on and people not really
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using stable -- cable services for all the channels that they can see. i wonder if we are starting to see this with time warner cable? >> yes, you certainly are and this is a big that will play out. time warner cable already got a bit from charter communications and they turned it down because the price was not right. i know cristina alesci has been looking at this for a while and she pointed out that it is a matter of pricing, not a matter but certainly win because pricing is the only obstacle that remains. >> that is right. i want to bring in our in-house guru alex sherman who has been leading all reporting on comcast and charter, coming closer to a deal, potential takeover, potential hostile for time warner cable. how did earnings this morning change the dynamics of that deal? >> they don't really at this moment. time under cable pre-announced that their subscribers so it is not a surprise that we know they lost a 214,000 tv subscribers. that is where the big losses come -- the video side. on the broadband side, they rise.
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time warner cable have a loss last quarter, that had to do with the cbs dispute, which was in the third quarter, i should say, of 2013. broadband rises, video false. another quarter of video losses in the fourth quarter for time warner cable, so the numbers not really matter anyway because we already know that charter has per share. $132.50 charter may raise that bid. totamara cable wanted closer $140, potentially nrth of that -- time warner cable wanted closer to $140, potentially north of that. >> time warner cable extended their conference call, they have added a half-hour to because they're going to make their case today it's a, this is why we are worth $160 a share, which is what management has said. >> what opportunity do they have to defend themselves in this hostile bill situation, which is
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what comcast and charter are saying they will do? point ofarner cable's view is saying the only difference between our company running the show and charter running the show is charter's management, and we can do a better job -- >> really? with the worst customer service representatives, they say they can do a better job than charter can. >> the coo has not been involved in the company but he will say that i am new in charge, i have brought in a new team, a new hiredrtie manson, who was 8, 10 months ago, and our new team can run the ship better than the old team can. will investors believe that? i don't know. that will be the problem here as they try to defend this hostile takeover. >> alex, we know you will have more breaking news for us. carol, over to you. >> cristina, thank you. it is our dollar but your
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problem. old saying particularly true these days as the fed continues to taper, cutting back on bond buying having a big effect on emerging markets. that is raising a flag for investors and policymakers around the world. economics editor michael mckee joins us now. selloff last year as a result of this, so why is this happening? >> the countries that are being affected have problems in their own economies and it is not a question of what the investors are doing because you knew that this would happen -- it is why those countries did not fix their economies ahead of time. it is the old warren buffett thing -- when the tide goes out, we see who is swimming naked. you can see who is swimming naked. not all emerging markets are down, but those that are down or down big right now. you can see india being one of those. india has fallen quite a bit over the last couple of weeks, governor central bank is a well-respected economist, and he said this morning that it is the fault of the big central
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banks. they're not coordinating with the emerging markets. they cannot wash their hands and say we are going to do it, and you have to make the adjustment, denvert is exactly what nagy has that. you have to make the adjustments. hasks -- what ben bernanke said. >> they're moving this point. to change their actual not be a good thing. >> no, that is the darned if you do, darned if you don't sort of thing. they are worried about emerging markets would've everybody will say what they think is wrong with the u.s. economy and how did they get that started again. there is out a path, no economic reason in the u.s. to deviate from a path, so it would have cost them more. >> it is interesting to talk about the global banks and they are doing things to shore up their koran sees -- their currencies, but they chose the criminal problem in the emerging market. >> the interesting thing is that some countries have sought or
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worked on their fundamental problems, and those countries are not separated -- indonesia really suffered in the asian financial crisis. they are up for the year. look at the vietnamese talk. is there a country that has had more political turmoil than egypt? and look what is happening there. >> should we be concerned, mike, about some kind of trickle effect on emerging countries? do we need to worry this will spread, a contagion if you will? investors himnt, to be differentiating. you have three problems. one is political turmoil, and that is what we're are seeing in turkey with the lira going down. if they're going to pull out of emerging markets, leave one where you have problems. you t -- the same thing is true when you get to thailand. the big overhang is china. as china slows and we get more disappointing economic data, that affects the countries which trade with china. that is not just emerging markets but countries like australia as well.
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>> economics editor michael mckee, thank you. coming up, everybody, ups cycles through 60 million packages a day. how do they keep track and keep safe while at data? we go inside ups. stick around everybody. just getting started on "in the loop." ♪
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>> we have breaking news on the takeover battle in the men's apparel space. men's wearhouse says it may boost its bid for joseph a bank if there is additional value found after due diligence, basically being that financial deep dive into their numbers. again, men's wearhouse may boost its bid for joseph a bank. a share byred $57.50 joseph a bank turned it down. the company urging joseph a bank to look into negotiations and their offer. ask on the announced earnings as well. $1.91.
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revenue missed the mark. carol? -- all right, scarlet, thank you so much, you are watching "in the loop," on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. i am carol mosso. google selling motorola mobility -- i am carol massar. google selling motorola to lenovo. why are they doing this? >> the business was a dog. >> why today by it in the first place? >> i think it is fair to ask that. a lot of the wall street community is looking forward say hey come it is a drag on earnings, it will make things less confusing, google made phones, motorola made phones. they bought a steaming pile of junk and paid $12.5 billion for it. like that is a little harsh. standpoint, they
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are out there with a great spin this morning that look, yes, we tried to do phones but it did not work out because as you said, the phones actually declined in sales. but at the end of the day -- >> this is not right, this is why we are getting rid of it. >> eating given credit by saying look, they bought this two years ago, they are cutting their losses. if you look at the space that has gone from motorola, they sold these set-top boxes, that is another $2 billion that they have on that. toh this deal you were up point,but to your though, if the patent. >> the bottom line if they spent $12.5 billion, they're selling it for $5 billion and $3 billion in cash. so the takeaway if they spend four going -- 4.5 billion dollars for patents. the way patents used to work his companies would invent stuff,
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they would build a pile of patents, and then they would use those to protect the things that they made. >> or they could, that is how they were built. >> at is how a lot of great american companies were built in the olden days. but then we moved to a new world where people would invent something, realize they did not have the patents and try to buy them. that may be the case with android. google developed android, they find out some of the key patents might be at risk, a lawsuit with motorola, so they go and by motorola to get the pile of patents. the old motorola, that would've meant protection, but there is an emerging patent community. when the deal is done, by having a bigger pile of patents, all that means they have a bull's- eye on their back. i will have more losses, not more patent protection but more patent litigation and that is exactly what happened with these guys may continue to happen. like if i am a global shareholder, should i be happy or pissed off? >> you should be of set close-up cori has an excellent point in the sense that they have wasted shareholder money.
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they wasted on an experiment to prove that they're not going to be in the hardware business. they're solidly a software company and they should stay .hat way did you need to do this expensive experiment to figure that out? >> they will still be in the hardware industry. what does this mean with competition with samsung? here they are making software for the best-selling phones in the world, which is the samsung phone, and samsung saying hey, are you are partner or are we competing with you? going toxt samsung not have google maps, maybe have yahoo! search? thehen it originally did motorola deal, they were thinking it would not be a big deal and then realized oh, this is a big deal after all. >> bottom line, we have to wait and see what the value of the patents are. >> it is important to watch the loss of the go on between google and apple, between google and perhaps nokia, microsoft.
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notion that the they have a lot of patents does not mean they are good patents. >> also, let's not forget lenovo -- >> that is the story i like. >> exactly, you have done a lot of work on lenovo. >> they are the sleeping giant at this point. remember when they bought ibm -- >> server business. >> bp citizens. everybody thought it was a joke. it was a money-losing unit four years. a chinese of company buying a well-known american brand. >> the way lenovo has turned around is that they cut markets to lower than anything could handle, less than .5%, and then they undercut on price across the entire pc industry. at the same time, they have had a very strong and growing business in the smartphone business in china, and so what is interesting to me about the acquisition of the ibm server business, which is not a great business, and now this motorola handset business by lenovo, is at the chinese market, the
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chinese i.t. market has changed in the last five years, and it is big enough that it can start to support growth and to be one of the most important end markets for any computer manufacturer, but lenovo by being chinese don't can have access to the market in the way that ibm could not anyway that motorola could not. iceland avoids concentrated in its acquisition and growing here and in europe and others -- lenovo is concentrated in its acquisition and growing here and in europe and others. you're going to go head to head with samsung and apple where motorola has already failed. it is kind of a risky bet they are making. they are more diversified as a result of this deal, way ahead of competitors like hp and dell, but let's not forget -- that this deal is not without risk for lenovo. >> it also buys them another brand name that is well known. let's move onto another topic we were following. we have got ubs out with earnings. you you think of ups,
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probably think of brown delivery trucks and packages. >> i appreciate carol massar in a brown outfit. >> that has got to be the most successful brown campaign that has ever -- i mean, the color brown -- who would pick the color brown? >> ups juggling an awful lot of data. to track that data, ups relies issues come we get to go where very few outsiders get to go. >> it is an extremely controlled environment. >> not everybody can get in here? >> very few. less than 100. we're going to go to the next level of security. we're going to take you deeper inside the data center. >> we're going down, aren't we? >> that they are even less people that have access to this b, probably 15, 20. >> it is the biggest data center
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for i.t. at the world's biggest package delivery company. what really runs is layer upon layer of security. there is a secure for building, the highest category to protect i.t. >> this is pretty solid. >> very solid. >> why is there some of security here? >> we have all the customer data here for rally packages that are moving not only here in the u.s. but around the world. >> housing all the data, 18,000 servers at ups, holding 15 kilobytes of information. so when i order a package, and i get information that my packages coming through ups, it is all being processed here. >> exactly right. i company calculations every second? >> 15 trillion calculations. it all happens here. >> also happening in these data centers -- another concept that gives the ebs machine humming. >> redundancy is the key word
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here. >> that means if one system fails, others kick in. it is all battery went like it is all battery. >> the 3000 industrial grade batteries take over if ups' two public power sources go down and seven generators will take over for the batteries if they fail. all of this came in handy during hurricane sandy, which took out the power in this part of new jersey but not at ups. >> as long as you have fuel feeding the generators you are ok. >> that is correct. we can run for weeks. earningsmpany's came out. lee tracks ups for us. anything new in particular that you think is worth noting? >> yeah, carol, thank you for having me. i think what we'll hear more about what went wrong and why the preannouncement happened. we know because it was a surge of bias, which at the end of the day is a high cost -- high-class problem to have. the company mentioned is going
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to be investing heavily into its network. i think investors should be happy that a, the e-commerce is growing faster than people expected, and b, the company is doing the right things in terms of investing in its business to make sure they can handle that surge and capacity, search and demand i should say. >> lee, it is cory johnson, i spent some time at some amazon for the listeners, it is interesting that they have lots of companies taking packages out that are not just ups. how important are the negotiations in particular with amazon with the earnings for tonight? >> listen, e-commerce as opposed to grow to times, three terms more than the overall u.s. economy in the coming years. the pie is getting much bigger. there are some new entrants, smaller players that are going to compete with fedex and ups, but at the end of the day, the pie is increasing. ups and fedex should probably bode extremely well. not only that, the air might be some abuse smaller guys' last
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mile delivery like they did with the u.s. postal service. >> on that note, ebay has the service they just launched that is basically delivering same- day, and that is sort of the holy grail and e-commerce these days. is it possible that we will see a swarm of brown bikes hitting the streets at some point? >> honestly i do not know the answer to that, and i do not know if we will be seeing a brown bikes anytime soon or anything of the like. want their products immediately. instant gratification as we all search for. at the end of the day, ups will try to provide that. there are certain markets that will really work like a dense population in new york, san francisco, but it does not work for all areas of the country. we're going to see experiment in the same-day delivery, you will continue to see retailers play with this concept. klaskow, thank you so much.
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we will look at more next. ♪
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>> you are watching "in the loop " live on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. i am carol massar. it is 26 minutes after the hour and bloomberg television is on the markets. open after theer three points on the s&p 500, dow up .2%. after aerformers selloff in yesterday. we are on the markets again in 30 minutes. >> one company where watching this morning --intrawest, the ski resort operator, struggled on the private equity ownership. ipo later tonight. a great ticker -- snow.
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it is all about skiing. cristina alesci has more on this name. >> at least they have the cool ticker, right. they have been kind of sour on this. >> the company ticker having a target price. this is an interesting deal. private equity stood this thing out, gussied it up, what do you make of it? >> they are going out there, pitching to investors, we have geographic diversification, which as you know in the ski business is key. they have got resorts in colorado, québec, vermont, so on that note, they are really hedged. if one property is crucial to their earnings does not get the snow that they really want, right? at the end of the day, this company have a lot of debt on it. this committee was taken private fortress is a private equity owner. they put a lot of debt on it thinking the real estate play, the second-home market was going
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to anything that was going to drive earnings, and it turns out they bought it at the peak of the second-home market -- >> if you read through the perspective -- if you read through the prospectus, 100 and all of dollar right down to the real estate value, -- $150 million right to the real estate value, and there are real issues. >> if you combine that with a highly cyclical business that is volatile, why would you have that kind of a cash flow situation that you cannot with the added unknown about making those debt payments? it really makes for a difficult situation to get investors, you know, to get their heads around it. >> i'm in california, so i am in tahoe more than anywhere, but maybe more popular with the southern california plays, but california is a place with the issues with no snow. >> which is why he went to utah. >> because there is no snow in tahoe at all.
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snow qualityorst since 1972 in terms of number of inches. we have had two years of drought in california, and you know i think about the way warren buffett is changing his air insurance underwriting with an understanding of climate change, and i wonder if climate change is now another risk layered onto a business. >> it absolutely is. at the end of the day, headlines are rolling at the same exact time the company is out to change investors. could vermont be the next california next year? possible big risk there. >> if you have ever ski or snowboard and reminds -- iesco's, here we go, west coast. you can have that win. >> carol most all about the pow pow. >> i will let you guys battle that out. fourth quarter growth economic growth in weekly jobless claims. we are looking for a slowing in growth, but it will be a good
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six months. >> especially when you consider people thought we had 1.5% growth into the quarter and the forecast is for 3.2%. >> consumer spending is why we see growth. >> for whatever reason, all that christmas shopping you did is helping. >> do not tell my husband. scarlet, let's toss over to you. >> 3.2% for the fourth quarter which is in line with what economists were looking for after a 4.1% increase in the fourth quarter. -- in the third quarter. so fourth-quarter gdp is in line with what economists were looking for. the estimates have gone up. personal conception, household purchases is the biggest part of the u.s. economy. of the u.s.0% economy. becoming an slower than anticipated. the reply three percent versus what economists were looking for, which was 3.7%. moving onto jobless claims, the state of the labor market, it looks like we did not get low numbers that we were looking for.
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348,000 was the read for last week. the excavation was 330,000. -- the expectation from economists was 330,000. once again, fourth-quarter gdp number coming in at 3.2%, loweral conception 3.3%, than anticipated, and jobless claims slightly worse than anticipated as well at 340,000. mike and carol. for theet, thank you breakdown. so that is coming in spot on. >> when you look at the breakdown of the numbers, they are not all that bad. worst of consumption -- pretty good considering where we had been in the fourth quarter a year ago. it was up 1.7%. so to be of 3.3%, a nice advance for americans and this could be revised higher as we go along. the other numbers are really good. equipment investments by business is up 6.9%. it was only up .2% in the third quarter. software spending a little
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weaker, 3.2%, but overall, businesses seem to be getting with the program. you are starting to spend some money where you really see some weakness as residential investment. a number of people buying houses, the contribution from home sales down 9.8%. so we did see a slowing in december in housing, and that seems to have held us back full sub government invention off 4.9%. that may be a lingering effect of the sequester and the government shutdown. the big inventory bill in the third quarter was a story, we have another 1, 100 72 billion billion.- 172 the real final sales, takeout inventories and take out thaneas, 2.8%, stronger the third quarter's 2.5%. claimsly jobless came in higher. >> holiday week, martin luther king, holidays in there, so maybe it did not give you a true
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rating. we may have to wait another week for plans to meet a whole lot. not a huge increase in the grand scheme of things. >> all right, mike mckee joining us for the economic numbers. coming up, what are you going to get what it is to resell value? your bentley or your benz. the ceo of automation gives us answers coming up on "in the loop." ♪
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>> sebago voices on -- big voices on bloomberg today. robert marcus coming up. autonation's profit topped analysts. mike jackson is the chairman and ceo of autonation and joins us from his home in fort lauderdale. micah, on this quarter, really interesting to me. we've seen strong results were a lot of the auto companies, but
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on inventories, it looks like the lots are really big. you pulled out a great quarter none the less. >> well, actually we had a fantastic year, one year anniversary of rebranding our company under the flag of tion from coast to coast will suck we put up four consecutive all-time records. as you said, earnings per share in the fourth quarter of by 24% with particularly strong performance and luxury vehicles represent a 46% of our profitability in the fourth quarter. i am pretty optimistic for the auto industry in 2014. sales will increase another three percent to five percent, breakthrough 60 million -- 16 million units was of great new product the great financing. the only concern i have is that inventories for the detroit three are a bit high, pushing 100 days, and that is not necessary. they should balance that out
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somewhere. >> m, the inventories in detroit are a concern but so is the fact that you have got german luxury carmaker's really trying to gain market share here in the u.s. by aggressively lowering their prices. how does that impact to resell value, let's say, for use cars and even the new ones you have on your lot? big think -- we have a position in german luxury represent all the major german brands, it represents almost a third of our portfolio. 6% of our profit in the third quarter. germans have a very unique proposition. i think they have a very clever strategy and compelling strategy where not only are they bringing products at the $30,000 price point, but they are also continuing to launch and innovate products on the high end. at the look at -- if you look at
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mercedes-benz, it revealed an all new s class. as well as the cla. so it is not a "downmarket movement," i think it will work in the marketplace. i see bring up a good poin -- >> you bring up a good point. all the automakers them to be upbeat. use cars and new cars you sell -- what do you sell more of? used? >> we retail just under 500,000 which aboutar, of 300,000 were new and 200,000 were used. so we are very active in both market segments and have a strong position with both. and pink both will grow in 2014. >> we were thinking about -- it is so good for all the new car sales that are out there at this point, mike. does it start to her your used car business at this point?
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>> if i look at the total marketplace, i think this year, as i said, we are looking at 16 million new vehicles. you move to used vehicles, the so on as a 46 million much broader range of price points, starting out a couple thousand dollars with certified $30,000, so it is a very big market. the average age of cars in america is pushed out to 11.3 years, due to the great recession, the american people really need to do something, so cars are going to distract you. a lot of people need to get something newer than what they have. >> let me ask you -- i drive a fancy 2008 honda accord. what do you drive? >> well, i drive a lot of everything. i love all the cars we sell. but at the end of the day, most cars are german
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products. 911 ine my portiosche this morning and i made all the lights because it was so early. i may have run a red light import old -- in fort lauderdale, i will admit that. to what degree do you rely on the length of the duration people own their cars, the repair business has been in a tailspin. how is that changing your business? >> well, it has not been in a tailspin at autonation. we grew our customer care business last year by a phenomenal 8%. we have a very compelling proposition for our consumers where we offer great convenience as well as a very attractive price with the highest level of technical skill, and we see a huge market share opportunity in the customer care business. and we expect to continue to
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grow that in the middle, single digits this year. -- the point is correct car population with the breakdown -- with the great downturn if they had went. -- is a headwind. it is pretty much neutral with the newer vehicles growing rapidly. we will continue to grow our customer care business. and ceokson, chairman of autonation, thank you very much. coming up, amazon delivering earnings after the bell. we will talk about what amazon is going to do for us and what that means for the broader economy. ♪
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>> i am cristina alesci. amazon has become a defining force of the holiday season, but how can the online retailer sell $26 billion over christmas and adjust break even? even? just break
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you are here with us, you do not like amazon. >> are you getting me? probably 90% of people who amazon -- income goes to amazon. --you do not like the >> do not put words in my mouth. by the way they grow their business with the bra thing -- with the blessing and support of wall street. >> fine. >> so these guys grow this business with virtually no profit, driving people out of any competitive business that they go near with great focus and intentions, build a sense -- billed as an incredible distribution, i have visited fulfillment centers, incredible thing to see. these outages are showing up at my house today, -- these packages are showing up at my house today and it really grown an amazing business but at the expense of profit. >> how do they do it?
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were the analysts looking at the balance sheets? tells "everything store" a tale of how these guys have gone from one industry to the next, books was just the thing they start with, but jeff bezos -- sam walton is something he has been inspired by. if you look at the margins of this business, they would keep the margins and so tight because they operate on a cash flow. they grow eight cash flow with such thin margins was at the amount of time they get the payment from a customer, slow to pay their merchant, give them a lot of cash flow to grow the business. they invest like crazy to grow both his business and their -- itwall street lets them do because where else are you going to get 20% to 40% growth on the top line? and wall street's defense, they would say the minute they turn it off and decide they want to make a profit, they can stop -- amazonstors know that
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may drop by 90% before the future happens. >> stay tuned. knows a lot about companies who go from not being online to being online, bricks and mortar two clicks and mortar, mark, tell us about amazon. how important is that company as a whole architecture of other companies that want to be online? >> thank you so much. one of the unique things about amazon if they have one of the top engineering teams in the world. be inlmost happen to retail to the dismay of almost anyone else, but i think what other retailer seed to do it they need to catch up. they need to invest in technology, they need to wring some of that measurement and personalization that amazon is so good at into the physical world, and that is what we are working to help them do at index. amazon smart -- model, you think everyone will jump on board here, mark? investing in
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understanding every customer. every customer is logged into a browser, so start, click, they understand your preferences. we have for that amazon generates 35% of their revenue from product recommendations, the sidebar, bottom bar, e-mails they send you. really are where you are as a customer. big about walking into a store. it is pretty lonely, pretty anonymous, but i think it is -- i think if brick-and-mortar retailers can personalize in the same way there is a really exciting future for them. >> the problem with the brick- and-mortar retail, mark, is is reset to be voluntarily given their information whereas on amazon, that process is bury frictionless. you do not even think about the fact that you were giving amazon all of this information. when you go into a store, they have to ask you for your e-mail address and you have to agree to get perhaps maybe in exchange for a discount but you are giving up information. >> absolutely. i think customers are willing to
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share their data and their preferences in exchange for good service. i think amazon is a great model -- >> way, with all the data, don't you think we're all going to get away point where i do not want to share anything? i don't share anything i do not have to. i have a problem with your model and thesis here. bei think the data breaches too bad technology. we have retailers running windows xp, using outdated technology, so customers they do have trust cultivated to opt in, but when they share their preferences, if retailers remember the preferences, there is something great to really help everyone remember how much fun it is to shop. feel that there is a fundamental change going on with the giants of e-commerce right now. both amazon and ebay moving ,istribution and warehouse is amazon with newer warehouses and places they did not used to go for fear of taxes. they could really disrupt the ability of small businesses to
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succeed online because amazon is going to be there quickly. how are you guys dealing with that at index? >> we're focused on helping the largest retailers to compete with someone like amazon by having the same kind of techno oh -- of technical advantages. someone like amazon may be the company that come to the rescue of smaller retailers. they are already helping them with e-commerce commerce. there are certainly a lot of discussion about what they might do in the physical world. could kindle become another point-of-sale in-store? are they going to be able to help smaller stores with distribution? i think it is unlikely that large resellers are going to rely on or trust amazon for those kind of services, but small retailers may become another part of amazon. >> martin, thank you so much. mark freed-finnegan, cofounder and ceo of index. coming up, why does caesars one another money-losing casino in atlantic city? ♪
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>> counting down to the super bowl all week long. tomorrow, ravens coaches joining us. you have heard a lot of things here on "in the loop." corey, you said you heard something interesting from automation. -- from autonation. >> it was up year-over-year. i think it thing no one is talking about is a chart that i want to show you that might really surprise you. the thing that i think is driving auto sales in the u.s. is a subprime lending. remember that? 27% ofgone from 18% to u.s. auto sales last year. >> that is like at the beginning of the crisis. >> right. people can barely afford their vehicles. not only are really crummy buyers getting loans for cars, they are also buying more expensive cars with those loans. >> so this is a big risk for the
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auto industry. maybe not potentially the inventory in detroit, but the fact that with that tapering, you might -- >> what did subprime due to the economy last time? one of the biggest supporters of the economy, inventories rise, subprime lending -- >> i want to know who is doing that lending because that is another one. >> we will talk about it later. maybe tomorrow, these markets -- 30 minutes -- 50 minutes after the hour, futures up and little bit. kind of falling from what we saw yesterday. not a lot of movement in the premarket. the postmark it happened than about half an hour. >> and a senator from texas, ted cruz, coming up at 10:00 a.m. eastern both of you are watching bloomberg television. ♪
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>> this is "in the loop" with betty liu. the countdown begins right now. >> here is what we are working on. u.s. economy grew by 3.2% in the fourth quarter, matching economists forecast. initial jobless lanes rose last week. equity futures pointing to a higher open. tech shares leading the way after stocks sold off yesterday on the news that the fed will continue it -- to taper its bond buying program by 10 billion more dollars. time warner cable posting better than estimated earnings this
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morning but they keep losing subscribers. while the cable operator fends off a 37 billion dollar hostile takeover bid by charter communications. coming up at 11:00 a.m. eastern time, i am going to be talking with the company's ceo rob marcus. but there is a lot to break down and this morning's news with economic growth coming in at 3.2%. saw holidayime, ups profit slumps. no surprise, they were having a hard time getting gifts to people touring the holiday season. with a read on what it all means of economics editor mike mckee, chief national correspondent carol massar as well as inside ups. let's start with you on the numbers. some of the numbers came in not so great at all. >> overall the number is really good. residential construction, the first negative contribution in gdp for three years, so that is a bit of a disappointment. people spending not quite as high as people thought. inventories built again and the worth quarter. it was considered a problem in
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the third quarter and then we work them off quickly. real final sales, you take out inventories, 2.8%, another quarter of strength shows the economy has improved, things are better. of course, the question now is, what is going to happen in the first quarter with everything happening overseas? like barring what is going on now, the fed seems to be accurate in its economic assessment. >> they said they would be data-driven, with taper because the economy was getting better. the economy seems to be getting better. we will want to see what happens with the jobs report next week and see of january hiring was any stronger, if there was some weather related -- weather related effect in december. if not, the fed is right on with the schedule. >> carol, what about ups? >> if you want a great economic indicator, it ups, right? their volumes during the peak was almost twice of what they predicted. this is what got them a little
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bit into trouble. a lot of people ordering late, expecting those deliveries before christmas, and it was a lot more than they anticipated. i find interesting in their release that they are going to do things to expand capacity. i spent some time at their big hub in louisville, where other packages come in and go out around the globe. they do have the capacity to expand their. >> that is good economic news, if they put more investment in. but like fourth-quarter gdp, their earnings are backwards. what are they saying about the future? that is what is really critical. 2014,ir forecast for $5.05 to $5.30, looks like they could be reducing the capacity a little bit. i will talk to their chief financial officer at around 10:00 a.m. to get concert -- confirmation. this clarification. they are also doing buybacks to shore up prices, $2.7 billion a share. >> it is only one quarter.
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it feels a little jarring that things could change so much within a matter of a week. had a lot of psychological impact. it is very important in terms of the consumer whether or not they feel things are getting better. we had strong jobs report in the fall. people felt things were getting better and felt ok but bennett. now will they pull back because they get nervous again? that is the big question. or is this a temporary blip? people follow the stock market a lot and if the stock market is going down they tend to think the economy is going down, even though it may not be true. >> thank you, economics editor mike mckee and chief national correspondent carol massar. top company news. men's wearhouse makes the latest move in its takeover dance of joseph a bank. the company urged the smaller rival to form a special committee to reconsider the all caps offer. men's wearhouse says it is prepared to increase the offer added value is found.
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exxon mobil's fourth-quarter profit fell 16%. the world's most valuable publicly traded oil company in line with estimates but down significantly from the $2.20 it aren't in the same period last year. total oil and natural gas production fell 1.8% from a year ago. a lot of numbers. citigroup joined other banks in trying to improve working conditions. citigroup is requiring junior bankers to take saturdays off and they must use all of their vacation time each year. they got to stop working so hauler -- hard. goldman sachs and bank of america have also come up with similar policies to try to improve productivity and the work-life balance all are trying to strive for. in the span of a week, lenovo ceo cut the two biggest deals in his company's history. spending a combined $5 billion for google's motorola and vodafone business and ibm's low end server business as well. two big acquisitions. joining us for more, anarag.
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let's take the lenovo site before we get to google and motorola. why now? why are they making these big acquisitions now? >> ibm has been trying to get rid of this business for a while. ibm got rid of its pc business 10 years ago, 2005. it really good for them. they want to be a services company largely in software. this was an area that has been holding their growth down for several quarters now. the hardware numbers, the server numbers are really bad, especially china. so, they wanted to get rid of this business. lenovo is the right fit. lenovo cannot only take this and sell it on the chinese market because they are a local vendor, but after the nsa stuff, it became a bigger headache for the u.s. hardware companies to sell their hardware. >> some people might say why are we talking about lenovo. i don't know the company very well. we have been talking about
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google and microsoft and facebook and all the other tech companies, but perhaps we have been ignoring this chinese company out there in the east that has actually been doing some pretty interesting things that we have not really been noticing. >> the pc world, they are doing really well. gaining market share. reckone the folks to with largely because of ibm's legacy business. with the server business, they also get a lot of relationship, contract that they have. it is a good deal for, i think, both of them in this situation. gogoogle, why would they let of motorola only two years after buying it? >> the first question would have been when they bought it, why would you want to get into the hardware business to begin with? >> we all thought they had something up their sleeves. >> of this is what they had up their sleeves, they wanted to keep the -- and this is what they had up their sleeves. they wanted to keep the portfolio. they have that. and the rest of the hardware stock, they got rid of it. >> is there a lesson for
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microsoft here? they bought nokia. >> that is a very good question. it will be very interesting -- >> they are trying to merge software and hardware as well. >> but they are now creating surface, hardware, so it will be interesting whenever the new ceo comes, what the mindset is. are two elements for microsoft. one side is saying that you want to get both the consumer and the enterprise side to be able to succeed, and the other side is saying just the enterprise. steve ballmer obviously said he wants both sides and it will be interesting if the new seat -- when the new ceo comes, what direction. >> what the new ceo will want and not the ball mark. you so much. who knew there would be so much fighting before the super bowl? yogurt wars and cola battles, behind-the-scenes on how companies are duking it out. hard to believe facebook turns 10 years old next week. and it is still going through some growing pains.
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we will hear from the company's executives about its plans to stay relevant. eight "in the loop." ♪
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i need better vision, but i think that is metlife stadium that i am seeing across the river in east rutherford, new jersey, where on sunday more than 80,000 fans will be gathered to watch the big game. the super bowl three days away. advertisers just can't wait until sunday to start showing off than the commercials. companies have been leaking full-length add-in teasers. part of an attempt to maximize the 30-60 second spot they paid upwards of $4 million for. joining us is claudine, chief strategy officer for the ad agency behind brands like tide and cheerios running their first ever super bowl and this year. great to have you back with us. what i find interesting are these teasers that come out. to generate social
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media buzz and get people interested in these companies in these products. goes intohinking these teasers? >> a lot of thinking. what everyone is looking at is getting their total views for that $4 million a more, and if you play your game right it could actually be a really good spend. if the return on investment can be fantastic but you have to think through what is the strategy. you want to release the ad, do a teaser for the ad, so now you are making two pieces of communication -- >> is it really that much harder to do? >> and no, it is not that much harder. it really depends. there are others that had the surprise factor. because of the end of the day, the super bowl is a live event and you want to experience some surprise. is $4 million for a 32nd spot, but the actual cost of all of that is much more than 4 million -- 30-second spot. >> you don't have to fund a lot of production. for me the story of the super
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bowl is it is about super stories pretty tell a great story. it is about great writing, great insight. it is really not necessarily about big reduction values. adding more and more you are going to see really heart warming stories, funnies stories, and that is what people tend to share and when things go viral. viral are also some of the fights going on between companies. off the field and onto social media. let's say the yogurt war. who would have thought people would start being passionate about yogurt. >> you'v you've gotchob -- you've got , andni at war with oikos their leaking out these teasers. >> it shows on many women are watching the games. now 46% of women watching -- it is that high. >> how many are forced to watch it? let's i think women -- ani think that is
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interesting spot because they are very different and this is the first time chobani is with the ad but oikos has already been out of the campaign -- >> john's they most -- >> kind of racy and edgy, all the women watching the game has seen bridesmaids and can push the envelope. but they don't seem to be going head to head. they are telling very different stories. very different position for their brands. versus some of the other competitors you see where they try to go more head to head. beingastream, they manage -- to pull of being banned. >> a really? they don't know the rules. >> because of the foreword to -- sorry, and pepsi. remember they have a exploding cans of coca-cola and pepsi. this time around, because of those words, they will not be shown on fox. is this kind of like a marketers
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dream? what are them, the planned stunt. all the hand wringing around, we got the end. you knew the rules. this year i don't like the spot as much. i don't think it is telling a great story. she said she wanted to go viral -- 26,000 views is not viral. it is not take very much. at least the link i saw. >> do you roll your eyes or something like that? >> tell a great story and people will share it and if you don't tell a great story it will not get shared as much. side, couldn't you say, it just shows you how powerful corporate-wise coca-cola and pepsi are and it is unfair you can do certain things just because pepsi owns the halftime show? isabsolutely, sodastream using it to their advantage. deliberately being naughty. it is an effective stunt for them and we will see how it does. they must know their business. they are stealing share from those brands and people are switching over to their in home
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and -- device but good for them. they are not going to have to pay for the spot now. they saved $4 million. halftimeke the pepsi show and you like what pepsi does during the super bowl. why? >> i like this year because instead of buying a bunch of spots they are really investing in raising the context of what halftime is. doing a half-time spot during the grammys -- everybody is talking more about half times of a brand that. it is not only the halftime brought to you by a brand, it is the pepsi halftime. it has become synonymous and i think they did a good job. last year with beyoncé, they attached themselves to her before she performed. i think they are being smart making the spend -- owning a piece of the game. you will see more and more as people understand what piece of the game they want to own and what people are doing moving forward. >> does bruno mars have the same star factor? >> i don't think he does. >> we will see. claudine, great to see you.
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chief strategy officer at saatchi and saatchi, new york. we will see millions of viewers tuning in but there is a side of football people don't see, the struggle afterwards when the players retire. i will talk to hall of famer business,noz, his helping former athletes get a job when they get off the field. ♪
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>> and look at the top tech stories. google selling into motorola mobility unit to lenovo, bailing out of the highly competitive hardware side of the smartphone business, just two years after he paid 12 point $4 billion for the phone maker and its patents. you know the competitive -- who knows the competitive cell phone
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market in san song, sanctioned after a u.s. judge after violating a confidentiality order of apple's patten report. the disclosure, that samsung accidental, the first federal patent dispute with iphone maker. ceo announced he plans to remain in his job after reports he was a candidate to succeed steve ballmer. he is not the only one to have turned down microsoft's interest. alan mulally wings -- recently fromrew himself consideration. cats of the latest on tech and media every weekday only on "bloomberg west." just a few minutes away from the opening bell. the top 10 traits you do not want to miss after the break. keep it right here on "in the loop." ♪
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>> welcome back. you are "in the loop." i'm betty liu. 26 past the hour, meaning bloomberg is on the markets. alix steel has the latest right before the open. >> it looks like u.s. futures are trying to shake off any emerging market jitters. not only the killer earnings from facebook but also chiptle group and consumer spending picking up and fourth quarter in line with estimates at 3.2%. overall, an analyst at grey wolf says the short-term trend is still bearish. he says buying dips at the end of the week before short-term balance but overall it is still relatively negative market. of course, rounding out the first month of the year and
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stocks are poised for the worst monthly decline since may 2012. back on the market in 30 minutes. >> not a good tone to start the year off with. thank you, alix steel. let's count down to the top 10, the only trait you need to know about today. number 10, visa. shares of the world largest credit card company rising in the premarket following a beat on fiscal first-quarter earnings. net income rose nearly nine percent from a year ago as people used their cards more. the ceo said he is looking for ways to increase business outside the u.s. where visa gets more than half of its revenue. >> number nine, potash. fertilizer producer reporting fourth-quarter earnings that trailed estimates. also missed forecast for the full year after the price of its namesake fell 24%. >> eli lilly, the drugmaker reporting fourth-quarter profit slightly below analyst estimates but was heard by overall calling revenues in some of the generic drugs and competition for the malta -- zymbalta.
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citrix systems, fourth-quarter earnings beat analysts estimates but issued a disappointing full-year forecast. it also announced that ceo is going to be retiring within the next well month. at least two analysts have downgraded the stock this morning. >> pandora. shares surging in the premarket. goldman sachs saying the stock could hit 60 bucks at the company doubles the ad load. i recently found pandora and now i love it. >> way behind. number five, las vegas sands, the world largest casino company reporting fourth-quarter earnings that trailed analyst estimates and sales in singapore fell. they did reported double-digit jump, though, a revenue and las vegas operations. number four, time warner cable, fending off a $37 billion
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buyout did by charter communications, the fourth quarter estimates, higher fees made up for it. another 200 that -- higher fees made up for another 200,000 subscribers leading. i will be speaking to ceo later this morning, be sure to tune in. >> weatherford international, oilfield services company and out ways to cut 10% of its work -- work force in the first half of the year part of an effort to cut overall cost. it also issued a disappointing profit forecast for the fourth quarter. >> number two, ubs, the shipping giant says fourth-quarter profit fell 815% as higher than predicted and inclement weather we remember so well negatively eighted -- robert fell .5%. it expects much better result in 2014. >> at number one, facebook. the social networking giant reporting a 61% jump in and sales and a 16% increase and uses for the fourth quarter.
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facebook also reached a key mileste, generating more than half of its advertising revenue rum mobile be vices. shares have more than double last year. they are still surging on that news. and facebook has a lot to celebrate. on february 4, the social networking giant this, arcsiversary of zuckerberg is making the cover of the newest bloomberg businessweek. company -- sam grobart with us. how do we document this projector he -- trajectory here? thatven the competition facebook has already vanquished, 10 years is an extraordinary accomplishment. when you think about the predecessors that have risen and fallen in that. of time, to be able to maintain
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that growth, to give it to mobile, it is a tremendous competent. >> the fact that they are now making more than half of their advertising revenue on mobile when they started this ipo, they had almost zero. is that all zuckerberg? >> it seems to be. when you look at the article that they root for the magazine, they talk about how a couple years back, zuckerberg >> there are a couple of quotes from zuckerberg. let me read the third one. he says, "there are all these different ways that people want to share. compressing them all into a single app is not the right
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format for the future. what is he talking about here? specific thing. starting on february 3, one day before the ten-year anniversary, there's going to be a new facebook app for ios users in the united states. that is called "paper." it is taking your newsfeed and re-creating it in a much more attractive visual form similar to companies like clipboard, which have been doing this for a wild. it is going to allow you to spend more time on the stories that you are getting to discover new information as well. it is hoping that it might reinvent the mobile experience for facebook users. ora new app that comes out any new way that people are using their devices -- facebook wants to be there. they don't want the competitors. they want to be the creators. >> they want to create their own competition. if there's going to be a new idea that challenges what facebook has been, they would like that to come within facebook itself. the problem of course is how
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many other competitors out there. they're coming in from lots of different places. it is not a straight ahead strategy. it is snap chat, line, foursquare, twitter. all of these new apps are being used by people in many different ways. all as a means of communication. facebook has to fight against all of them. >> as they get older, is it harder for them to be the most innovative developer? >> facebook? that is the challenge, obviously. the growth numbers are going to slow down now. given that they already have about half of the people who are on the internet, if not more, it is not going to be like the first 10 years. adding the next group is going to be harder. that is why zuckerberg is trying to increase the pie with things g.ke internet.or they have to maintain the
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single-minded culture, which they have managed to do quite well. >> they have managed that. you think of it as a new company even notice 10 years old. i want to read another quote from zuckerberg. he says, "we really at this point -- we are at this point where we can step back and take a look at the next thing we want to do." what are the next big things? >> they have to remain on mobile. it has to be that kind of idea of being able to carry any sort of attack from a competing service. that might mean messaging, photography, location. that means search. facebook launched graph search on the desktop about a year ago. it has not worked out as well as they would like. they think that they have the key to providing more information to their users by finding out what your friends know. of contrary approach to what google is doing. if they can unlock the value of all the information that is
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being passed around on facebook, that could provide a whole new opportunity for the company. >> in your view, has anybody come close to being a competitor to facebook? >> not yet. that being said, they're all these -- there are all these operations. twitter, maybe something new in the coming year. something in the next 10. >> thank you so much. for more on facebook's 10th anniversary, check out bloomberg businessweek which hits the stands mara. coming up, former cincinnati bengal on a mission to land a hand to all our veterans by helping them with future careers. ♪
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>> we have been counting down. have you question mark to the super bowl. former ravens coach is in the loop for the whole hour leading up to the big weekend.
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we are approaching the biggest weekend of the year for football fans. what fans may not know is how tough life is for many pro football players after their last season. most careers only last 4.5 years. after which, most layer struggle to find a new career. often they face financial hardship. their former colleagues are trying to change all that. former cincinnati bengal and hall of famer anthony munoz will be joining us in a moment. they started this company called team services, which only hires pro football players after they have retired. great to have you here. >> i will be here all week. i got here monday. eventually i have a flight at 1:00 on sunday to get home and watch the game. there will be plenty of people in the stadium. >> what made you decide to join up with your business partner to do this? i got approached
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with this business opportunity. what an appropriate name. team. i have been involved with teams my whole life. do have the opportunity to come together with a company that is going to be across the country and to use the team concept and to bring in former athletes -- >> not just pro football layers? >> former law enforcement and military also. we will have all three groups. military comeback and there are problems finding jobs. what we want to do is bring them on the team. you look at pro athletes, military, or a police officer and you look at the discipline and the strive to be excellent. we want them to be part of our team. it is hopefully a way to offer the former athletes a transition to the business community. >> why do they have so much of a
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hard time adjusting question mark within a year after retiring, more than half of them don't have a job. within two years after retiring, almost 80% of them are in financial hardship. what is going on there? >> it is the training. we are so focused on getting ready and physically training and mentally training with strategy. while we are doing that and focusing on that the entire time, we can look at those out in the business community. let's say you play one year, 10 years, 13. all of a sudden you lack experience. it is not a matter of intellectual knowledge. experience. >> you look like you play football, too. >> i used to. >> the cofounder along with you. i was asking him about why it is so hard for football layers to launch a second career.
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should the nfl be more proactive in trying to help this along? >> i think the nfl can do more. they have been doing more. we are looking to partner with them. the nfl is a great institution. but with all great institutions it is not perfect. there are a lot of things we can improve upon. team hopes to be one of the entities that helps them do that. >> what jobs are you providing with football players -- to put all players question mark >> , our management, security mentor protége company in this business over 45 years. their number one in their field. we look to go into that business and expand beyond that. government contracting -- we have management opportunities. we have in-line opportunities. we have marketing opportunities. some and opportunities to get our guys back in the game that they helped create and make big. >> what about you question mark you are a hall of famer. you may have had an easier time
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transitioning. give me a sense of how difficult it was for you. >> i think the hall of fame helps a little bit. we all struggle. i played football for over 20 years. 13 years in the nfl. >> that is unusual itself. >> the averages about one third of that. i knew what i wanted to do. i did some broadcasting when i was playing. i transitioned into broadcasting. i did seven years of broadcasting. it is still the vocal. my first game i did as a broadcaster, the teams are running out and i'm saying, i should be in uniform. it is still a tough transition. it is all about planning. yet the start thinking, yeah, i am playing in my first or second year. at the look beyond. i was 35 years old, still young. >> we have had former nfl quarterback dan reno on our network last night. he has beenout what
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doing with aarp. this is what he said about how he thought when he got off the field. >> for me it was about relationships. holding relationships outside the sport. kind of finding what your passions are. so either when you're done playing or being more prepared -- i had an idea. i wanted to do tv or get in some businesses. i did not know for sure. >> he also went into broadcasting. most of the time, these players go into what kind of careers? >> it varies. my younger brother went into broadcasting. he played for the st. louis rams. a supertunately won bowl. many of my players played in the nfl. -- they go to different areas. what team does is give them a stepping stone, transitional platform.
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a vehicle for these guys to use to get into business, find out about management, use those leadership skills that they found in sports and use them effectively to make a better life and a better business life for them in the future. >> does your life change after you win the super bowl? >> i would not know. [laughter] it changes after the hall of fame. >> thank you so much. former hall famer. coming up, the owner of the next is making a $100 million bet on the west coast with the renovation of the form. we will bring you a rare interview with the entertainment mogul. that is next.
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>> time now for the global outlook.
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for the first time in six months , china lost jobs. u.s. delivered its own rating on the economy this morning. coming in line with estimates that americans spent more in the fourth quarter. came in.here gdp the l.a. form is a legendary concert venue having hosted acts like elvis and the eagles. it has been in need of major renovations. the company that has provided a $100 million makeover to help the form compete with downtown rival the staples center. jon erlichman took a tour and caught up with msg executive coleman.jim >> the form has hosted every big musical act you can think up. in its older years, it has had the battle for attention but that's younger rival, the staples center. this place just got a massive makeover. let's check it out.
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over here you have some of the eagles equipment. the first performers in the new form. form a proper facelift, they spent $100 million on renovations. it is the most important music venue in the world. nobody does it better than msg. he saw the opportunity to return it to its original splendor. >> we came in and rip everything out. took the seat out. gutted the building. >> if there is one thing that really makes this the premier concert venue, maybe not just the u.s. -- and the u.s., maybe in the world -- >> is the best sounding building in the world. that is coming from a guy who knows. >> it is no accident.
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>> it was already a great sounding building. for the rock stars, they are stylish hangout rooms. there is a fitness room. way at the top of the form. if you are a writing expert, somebody u.s. to get harnessed up here come you can just walk along star wars-like. i also noticed you guys have your own mood lighting here at the form. 6000 lede over lights. >> very cool. jon erlichman joining us now. what was the coolest thing you saw there at the form? >> i tried to steal some of the eagles'equipment. they said no. --is hardly shown a package
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they have curtains that you can basically make a more intimate place if they don't sell out. the us is all about music. the kings and the lakers used to play there. now they play the staples center. the idea is let's make this a place where rock bands will come and play 5-6 gigs in a row. you don't have to worry about sports teams coming in and out. is what it's all about. >> thanks for bringing that for us. that is jon erlichman, our senior west coast correspondent. staying in media, don't miss my interview with the time warner ceo, rob. he is going to sound off on that bid by charter communications for his company. on the markets is next. ♪
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>> it is 56 past the hour, which means bloomberg television is on the markets. what stocksok at are doing 30 minutes into the trading day. they are taking off on the emerging market worries that we have seen in the last few days. nasdaq held by the positive earnings of facebook, up by over one percent. growth in the fourth quarter coming in with estimates at 3.2%. we are minutes away from the pending home sales numbers. markets have been hit this week. throughout the last week and a half. the manufacturing reads and china have been confirmed today. that sector is showing the first
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contraction in six months. argentina's company falling off a cliff. the political crisis is continuing. a lot of news here. mike mckee is trying to siphon through the noise. sort of thecause is fed in terms of tapering because money that went into those markets looking for higher yields now coming out that yields are going to rise in the united states. the companies that are being affected most are the ones who had their individual problem's. in turkey, where the prime minister is involved in the corruption scandal, investors say if we have to be in the emerging markets it should not be one that we do not know what the future is. thailand, a lot of political problems. it goes back to what you said -- china is slowing. there were disappointing numbers out of there. a lot of these emerging markets trade with china. it is the biggest trading partner. if their business is going down, then their economies are going to slow. cash flowing out on top of everything else -- >> it puts the u.s. between a
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rock and a hard place. is better growth in the u.s. but at some point those higher interest rates combat the weaker currency should trickle to our export markets. >> it should benefit us and help us in terms of our exports. we did see a big build in the fourth quarter when gdp came in much higher than it had initially been thought to at the beginning of the quarter at 3.2%. that is one factor to watch. the question is, does this continue question how long does the flight and the adjustment to the new prices of the fed -- >> there is not a surprise. it is a $10 billion taper. wind is a normalized? >> i asked the people about that this morning and they said one everybodye heard is wants to get out. i could stop fairly quickly. then we normalized. the problem you have is last four years and we have had unpleasant surprises.
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if there is going to be something here that we don't know about, we don't understand where we are going it. the sellout people were expecting for quite some time, earnings, we have not had a correction in three or four years. people are saying it is about time for that. that is not necessarily related. >> do we then cvs and p continued to be dragged down by emerging markets? or might we -- >> you should see them decouple. separating that out, how do you doinghy people are what they're doing question market is pushing up european markets. once we get a headline out of an emerging market, could go the other way. how long does that continue? >> what is the first thing in your lookout? >> you look at the 10-year note deal in determine whether somebody -- something happened
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overnight. we have had the safe haven flow. as long as it keeps going down come you keep checking the other headlines. if it stabilizes -- >> i checked the oil. thank you so much. we are on the markets again in 30 minutes. market makers is up next. live from bloomberg headquarters in new york, this makers" with erik schatzker and stephanie ruhle. >> one-on-one with senator ted cruz. the tea party favorite tells us what republicans will do to counter president obama's executive action. it is a bloomberg exclusive. >> facebook is flying. shares are up after the social network showed third-quarter earnings. tomay have found the secrets making money with mobile ads. >> living it up with the super bowl. is an apartment or electricity more your style? you will wish that you had a sweet

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